All You Need To Know Going Into Trade On April 4

Asian stocks were mixed at the open as traders awaited China's response to the latest step in an escalation of trade tensions between the world's top two economies.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, traded flat at 10,284 as of 7:05 a.m.

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BQ Live

Here's a quick look at all that could influence equities on Wednesday.

Global Cues

• A risk-on tone gripped U.S. markets, with equities pushing to session highs and bond yields climbing on speculation that President Donald Trump's policies won't disrupt global trade and economic growth.

#BQMarketsNow | U.S. stocks surge, bonds retreat as risk-on resumes.https://t.co/D3vFEq9XgF pic.twitter.com/fBl5jMcEfb

April 4, 2018

Europe Check

• European stocks ended down but off the day's lows as U.S. shares recovered some of the ground lost on Monday while trading remained volatile amid renewed criticism of Amazon.com from President Donald Trump.

• The euro decreased 0.3 percent to $1.2262, the weakest in two weeks.
• The British pound gained 0.1 percent to $1.4053.
• Germany's 10-year yield was unchanged at 0.50 percent, the lowest in 12 weeks.

Asian Cues

• The Topix index was little changed.
• Australia's S&P/ASX 200 Index fell 0.2 percent.
• South Korea's Kospi index lost 0.2 percent.
• Contracts on the S&P 500 fell 0.2 percent.

Here are some key events coming up this week:

• Australian building approvals and retail sales are due Wednesday.
• The Caixin services PMI for China probably gained to 54.5 in March from 54.2 in February.
• The composite index is also due on Wednesday.
• U.S. employment data are due Friday; the jobless rate probably fell in March after holding at 4.1 percent for five straight months.
• The Reserve Bank of India decides on policy Thursday.

Bad year for the FAANGs? In Asia tech, it's just a little worse.https://t.co/DxAHy8AB0c pic.twitter.com/iIJbET5i0r

April 3, 2018

Commodity Cues

• West Texas Intermediate crude fell 0.1 percent to $63.42 a barrel after gaining 0.8 percent.
• Brent ended 0.7 percent higher at $68.1 per barrel.
• Gold was at $1,332.23 an ounce after falling 0.6 percent.
• Sugar snapped two-day winning streak; ended lower at 12.5 cents per pound.

Shanghai Exchange

• Steel traded lower for second day; down 0.3 percent.
• Aluminium snapped two-day winning streak; down 0.3 percent.
• Zinc traded lower for second day; down 0.7 percent.
• Copper traded higher for sixth day; up 0.1 percent.
• Rubber traded lower for second day; down 0.5 percent.

ArcelorMittal will challenge Numetal Mauritius' bid for Essar Steel at the NCLT.https://t.co/11mxJWqPJH pic.twitter.com/w84oSLtPBR

April 3, 2018

Stories You Might Have Missed

• Spotify climbs after going public in unusual direct listing
• Disney has offered buying Sky News to aid Rupert Murdoch's Fox acquisition
• Star, Reliance Jio and Sony are battling it out to bag BCCI's media rights
• Tesla's battered shares and bonds got a temporary reprieve
• Weakened dollar has investors loading up on emerging market debt
• Ola's latest buy is its entry in bus and train ticketing services
• Wondering what the potential buyer of Air India might have to pay? Click here

Indian ADRs

Stocks To Watch

• Income Tax department issues notice to Deepak Kochhar, husband of ICICI Bank chief Chanda Kochhar, in connection with the Videocon bank loan: PTI
• Reliance Jio Payments Bank commences operations
• JSW Steel buys 26 percent stake in Numetal's India arm to facilitate Essar Steel bid
• Jaguar Land Rover India lines up 10 new products for FY19
• Akzo Nobel to consider share buyback on April 6
• Jubilant Foodworks says that it passed on full benefit of GST rate cut
• Zensar Technologies wins multi-year contract with city of San Diego
• AU Small Finance in pact with Future Generali India to act as corporate agent for life insurance business
• Bigbloc Construction to issue 8 lakh convertible warrants to promoters
• Tayo Rolls to issue 2 lakh preferential shares to promoter Tata Steel
• Ferro Alloys says lenders' panel have rejected the debt resolution plans and decided to liquidate firm
• Infibeam enters into agreement with TV18 for advertising products, services and brands

Mukesh Ambani's Jio Payments Bank has become the fifth operational payments bank in India. https://t.co/q9wdhFUftM pic.twitter.com/Dhsja0zDVU

April 3, 2018

Bulk Deals

• Infibeam: Smaller Cap World Fund bought 1.07 crore shares or 2 percent equity at Rs 152 each.
• WPIL: Promoter V N Enterprises bought 76,884 shares or 0.8 percent equity at Rs 508.02 each.

Indiabulls Housing Finance:

• TreeTop Convertible SICAV - TreeTop Convertible International bought 75.97 lakh shares or 1.8 percent equity at Rs 1292.5 each
• Merrill Lynch Markets Singapore Pte. Ltd sold 75.97 lakh shares or 1.8 percent equity at Rs 1292.5 each

RPG Lifesciences:

• Ektara Enterprises LLP bought 20.76 lakh shares or 12.6 percent equity at Rs 394.1 each.
• Promoter Sudarshan Electronics sold 17.91 lakh shares or 10.8 percent equity at Rs 394.1 each.
• Promoter Instant Holdings sold 2.84 lakh shares or 1.7 percent equity at Rs 394.1 each.

India spends record $18 billion to develop roads.https://t.co/67kMMrwAGH pic.twitter.com/OhAR1Hh5BA

April 4, 2018

Trading Tweaks

• Sandhar Technologies Ltd. added to S&P BSE IPO Index.
• Marathon Nextgen last trading day before stock split from Rs 10 to Rs 5 per share.
• Adani Enterprises last trading day before demerger.

Who's Meeting Whom

• Balrampur Chini to meet Franklin Templeton MF on April 4.
• Precision Camshafts to meet IDFC MF, SBI MF and ICICI Prudential on April 4.
• PSP Projects to meet investors and analyst on April 4 in Mumbai.
• FIEM Industries to meet Indgrowth Capital on April 4.
• Bodal Chemicals to meet Edelweiss on April 5.

Fundamentals might rescue everything but tech stocks right now.https://t.co/2DQy8N4sju pic.twitter.com/P5WGeQtI4N

April 3, 2018

Insider Trades

• PSP Projects promoter Prahladbhai Patel acquired 30,000 shares on April 2.

New Listings

• Mishra Dhatu Nigam Limited to list on exchanges at Rs 90 per share.
• ICICI Securities to list on exchanges at Rs 520 per share.

Rupee

• Rupee closed at 65.01/$ on Tuesday from 65.18/$ on March 28.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty April futures closed trading at 10,285 with a premium of 40 points from 52.2 points.
• April series: Nifty open interest up 2 percent, Bank Nifty open interest up 1 percent.
• India VIX ended at 15.1, down 1 percent.
• Max open interest for April series at 11,000 call strike (open interest at 34.9 lakh).
• Max open interest for April series at 10,000 put (open interest at 44 lakh, up 10 percent).

F&O Ban

No stocks in ban.

Put-Call Ratio

• Nifty PCR at 1.42 from 1.41.
• Nifty Bank PCR at 1.43 from 1.35.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

BofAML on BHEL

• Maintained ‘Underperform'; cut price target to Rs 67 from Rs 80.
• Receivable write-offs remains a possibility.
• Outlook subdued as L1 pipeline is low.
• Aggressive pricing to impact margins.
• Expect 14 percent compounded growth rate in revenue over the fiscal 2018-2020 given higher executable order book.

JPMorgan on Grasim

• Maintained ‘Overweight' with a price target of Rs 1,450.
• Standalone earnings are more resilient now.
• Strong growth outlook for both VSF/Chemical segments.
• Expect capacity addition beyond ongoing projects.
• Capital allocation concerns appear misplaced.
• Backward integration in VSF & better handling of chlorine are key competitive advantages.

Credit Suisse on Voltas

• Maintained ‘Outperform' with a price target of Rs 700.
• AC prices move up 10 percent; Can hold back demand.
• Inverter ACs continue to account for majority share in metros.
• Samsung seem to lose market share, while Blue Star is gaining.
• Positive on Voltas' upcoming durable products launch in festive season.

Jefferies on Eicher

• Maintained ‘Buy' with a price target of Rs 31,880.
• Production guidance for the current fiscal raised to 950k units versus 900k.
• Vallam Phase 2 will take capacity to over 1.2 million units.
• Reiterates strong demand environment.

CLSA on Eicher

• Maintained ‘Buy' with a price target of Rs 39,300.
• Announcement of capacity expansion indicates good growth visibility.
• New capacity to come on-line by H2FY20; Full ramp-up in FY21.
• Expect 15 percent compounded growth rate in volume through the financial years till March 2021.
• Expansion indicate strong demand growth outlook for next 2-3 years.

Macquarie on Info Edge

• Maintained ‘Neutral' with a price target of Rs 1,300
• Zomato reveals surge in food delivery revenues and reduction in cash burn over the financial year-ended March 2017.
• Expect steady increase in shareholder payout.
• Effective utilisation of cash is imperative and remains a key monitorable.
• Any medium-term recovery in both recruitment and real estate appears priced in.

Credit Suisse on Info Edge

• Maintained ‘Neutral' with a price target of Rs 1,310.
• Decent growth in Zomato; Recent momentum has been strong.
• Business mix continues to shift from advertising to food delivery.
• Zomato Gold numbers are attractive.
• Cash burn has increased in the past two months.

Macquarie on Britannia

• Initiated ‘Underperform' with a price target of Rs 4,210.
• Expect higher competition in cookies; GST gains limited.
• Non-biscuits and international business to not impact earnings.
• Expect pressure on gross margin and advertising spend.
• Street ignoring pressure on market share gains and margins due to competition.
• Expect volume, revenue and net profit to compound at 8.5 percent, 12 percent and 12 percent respectively for the next two years.
• Expect further dilution of return ratios on sustained high capex.
• Expect premium valuations to narrow, with a shortfall in earnings delivery.

Jefferies on ICICI Bank

• Maintained ‘Buy'; cut price target to Rs 370 from Rs 410.
• Change estimates to factor in new RBI guidelines on stressed assets.
• ICICI Bank faces allegations of malpractice & conflict of interest.
• Overhang to continue until a speedy investigation & closure is reached.

Citi on Mindtree

• Maintained ‘Neutral'; raised price target to Rs 820 from Rs 660.
• Expect 12 percent compounded growth rate in $ revenues term over the fiscal 2018-2020.
• Mindtree should be one of the beneficiaries as deal sizes scale up.
• Client specific issues seems to be behind, as reflected in December quarter.
• Margins have room to improve.
• Premium valuations price in good outlook.

Motilal Oswal on BSE

• Upgraded to ‘Buy' from ‘Neutral'; raised price target to Rs 1,070 from Rs 950.
• Monetisation of the Star MF platform underway.
• Reduced dependency on lagging area of equities.
• Expect core earnings to grow to Rs 12.3 per share by March 2020.
• Expect excess cash to be prudently disbursed to shareholders.
• Risk reward attractive.
• Potential triggers: Monetisation of INX, Interoperability of clearing corporation and Commodity derivatives.

.@neelkanthmishra is cautious on the outlook for India's P/E and EPS as worsening fundamentals could see EPS cuts resume. pic.twitter.com/pa0cOt3pkL

April 3, 2018

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