Asian equities were mixed, while U.S. stock futures slid and the yen rose after President Donald Trump ordered his administration to consider tariffs on an additional $100 billion worth of Chinese imports, dashing investor optimism that trade tensions could ease with negotiations on the horizon.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.5 percent at 10,300 as of 6:55 a.m.
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BQ Live
Here's a quick look at all that could influence equities on Friday.
Global Cues
- U.S. stocks rose for a third day as White House officials signaled that the president's tough talk on trade won't lead to growth-sapping tariffs. Treasuries fell and the dollar gained.
#BQMarketsNow | U.S. stocks rally third day as Trump team eases stance.https://t.co/aS9zkAdlHW pic.twitter.com/BOIvCPKp3D
Europe Check
European stocks rallied the most since June 2016 as the White House signaled China and the U.S. would reach a trade agreement at some point, easing concern a trade spat would halt economic growth.
- The euro decreased 0.4 percent to $1.2234, the weakest in more than two weeks.
- The British pound fell 0.6 percent to $1.4000, the biggest fall in more than a week.
- Germany's 10-year yield climbed two basis points to 0.52 percent on the largest surge in more than two weeks.
- Britain's 10-year yield climbed three basis points to 1.401 percent on its fifth straight advance.
Asian Cues
- Japan's Topix index added 0.1 percent.
- South Korea's Kospi fell 0.3 percent.
- Australia's S&P/ASX 200 Index dropped 0.2 percent.
- Futures on the S&P 500 were down 1.2 percent with volume about five times the average for this time of day.
- The yen was at 107.12 per dollar, up 0.2 percent Friday.
Here are some key events for the remainder of this week:
- On Friday, America publishes non-farm payrolls and an employment report; the jobless rate was forecast to have fallen in March after holding at 4.1 percent for five straight months.
Over 80% of respondents in an RBI survey expect prices to surge in next 3 months.https://t.co/Iu4yHENlEC pic.twitter.com/ibVXny6Wu5
Commodity Check
- West Texas Intermediate crude rose 0.4 percent to $63.63 a barrel.
- Brent traded lower at $67.97 per barrel; down 0.5 percent.
- Copper surged 1.8 percent to $306.60 a pound, the biggest jump in almost four weeks.
- Gold dipped 0.5 percent to $1,326.19 an ounce.
- Sugar snapped two-day losing streak; ends higher at 12.4 cents per pound; up 0.7 percent.
Stories You Might've Missed
- Star India now has a complete monopoly over the Indian cricket team's home games
- RBI has put a virtual ban on cryptocurrencies like Bitcoin, Ethereum
- MPC began the new fiscal with a stay on rates
- Not a single house was completed in Maharashtra under PM's 'Housing For All' plan
- JPMorgan chief Jamie Dimon seems set on building the Amazon.com of the financial world
- Facebook's Sandberg says ‘a few' advertisers paused spending
- The harsh reality of golf: Its biggest draw is still the 42 year-old Tiger Woods
CBDT wants to crack down on high networth individuals from fleeing the country.https://t.co/SZJUTW8jva pic.twitter.com/ce8iKA1ZLT
Earnings Reaction To Watch
GM Breweries (Q4, YoY)
- Revenue up 11 percent at Rs 112 crore
- Net profit at Rs 25 crore from Rs 10 crore
- EBITDA at Rs 33 crore versus Rs 16.5 crore
- Margins at 29.5 percent versus 16.3 percent
Earnings To Watch
- S Chand and Co.
Stocks To Watch
- Amtek Auto's lenders panel approved resolution plan by Liberty House.
- Sobha said that the new sales volume in fourth quarter up 40.4 percent at 10.15 lakh square feet from 7.23 lakh square feet earlier. New sales value up 30 percent and price realisations down 7.5 percent.
- InterGlobe Aviation to not bid for Air India under current divestment plan.
- Coal India forecast Rs 9,500 crore capex target for FY19.
- Indian Oil acquired 17 percent stake in Mukhaizna oil field in Oman from Shell for $329 million.
- Sona Koyo said that the promoter JTEKT Corp proposed to sell 35.14 lakh shares (1.8 percent) via an offer for sale at Rs 85 per share.
- Indivior filed patent lawsuits against Dr. Reddy's, Actavis, Par, Alvogen and Teva.
- Sagar Cements acquired two mini hydel power plants in Andhra Pradesh.
- HCL Tech acquired life sciences and consumer services provider C3i solutions.
- Majesco said that Tier one specialty insurer has signed 3-year agreement for application management services with company.
- Kridhan Infra won an order worth Rs 134 crore in Singapore.
- Reliance Communication hopes to cut debt by Rs 25,000 crore after Supreme Court allowed asset sale.
Bulk Deals
- Avadh Sugar: Promoter Ronson Traders bought 54,000 shares or 0.5 percent equity at Rs 433.19 each.
- Reliance Communication: Sistema Shyam Teleservices sold 3.37 crore shares or 1.2 percent equity at Rs 23.24 each.
- Den Networks: Government Pension Fund Global bought 18.34 lakh shares or 0.9 percent equity at Rs 104 each.
Indian ADRs
Trading Tweaks
- Circuit filter revised to 10 percent from 5 percent: Shilpi Cable Technologies, Videocon Industries, McNally Bharat Engineering Company Ltd, GVK Power & Infrastructure Ltd, Parsvnath Developers Ltd, New Delhi Television Ltd, Lasa Supergenerics Ltd, Tata Teleservices (Maharashtra) Ltd, Bhansali Engineering Polymers Ltd, JMT Auto Ltd, Adlabs Entertainment Ltd, Religare Enterprises Ltd, Mold-Tek Technologies Ltd, MT Educare, Tree House, Pincon Spirit Ltd.
- Circuit filter revised to 20 percent from 5 percent: IFB Agro Industries Ltd, STCI, D B Realty Ltd, Graphite India Ltd.
- Circuit filter revised to 20 percent from 5 percent: Rain Industries, Nagarjuna Fertilisers & Chemicals, Waterbase, TTK Healthcare, Venkys,Future Market Networks Ltd, MMTC.
- Sono Koya Steering two-day offer for sale starts today.
- MIDHANI and ICICI Securities added to BSE IPO Index.
- Strides Shasun ex-date for demerger. Shareholders to get 1 share of Solara Active Pharma Sciences for every 6 shares of Strides Shasun.
- Sequent Scientific ex-date for demerger. Shareholders to get 1 share of Solara Active Pharma Sciences for every 25 shares of Sequent Scientific.
Who's Meeting Whom
- Vipul Ltd to meet investors and analysts on April 6.
- PSP Projects to meet HDFC Securities on April 6.
- M&M to meet Ecofin Ltd on April 6 and Impala Asset Mgmt on April 10.
IndiGo says it's not capable of acquiring and turning around all of Air India's operations. https://t.co/ASTQUNQ1bN pic.twitter.com/63afctpfqa
Insider Trades
- Nocil promoter Navin Fluorine sold 4.50 lakh shares from April 2–3.
- Cerebra Integrated promoter V Ranganathan acquired 2 lakh shares on April 3.
- JP Associates promoter Nandita Gaur sold 50,000 shares on March 27.
Rupee
- Rupee closed at 64.96/$ on Thursday from 65.15/$ on Wednesday.
Top Gainers And Losers
Index Trends
F&O Cues
- Nifty April futures closed trading at 10,352 with a premium of 27 points versus 18 points.
- April series: Nifty open interest down 3 percent, Bank Nifty open interest down 12 percent.
- India VIX ended at 14.7, down 9.4 percent.
- Max open interest for April series at 11,000 call strike (open interest at 37.7 lakh, down 2.4 percent).
- Max open interest for April series at 10,000 Put (open interest at 48.5 lakh, up 10 percent).
The revenue multiplexes earn by selling everything from samosas and popcorns to colas and milkshakes faces a potential risk.https://t.co/aOZbnG0Ymc pic.twitter.com/7Pcc32NHLz
F&O Ban
- No stocks in ban list.
Put-Call Ratio
- Nifty PCR at 1.42 versus 1.33.
- Nifty Bank PCR at 1.96 versus 0.99.
Stocks Seeing High Open Interest Change
Fund Flows
Brokerage Radar
Credit Suisse on HCL Technologies
- Maintained ‘Outperform' with a price target of Rs 1,100.
- C3i Solutions acquisition reasonable, but not very significant.
- Acquired C3i at five times its operating income.
- Revenue of $200 million, but 6 percent operating margin.
Morgan Stanley on HCL Technologies
- Maintained ‘Overweight' with a price target of Rs 1,060.
- Acquisition of C3i Solutions to complement BPO services.
- Acquisition to boost revenue growth in in the next financial year.
- Do not expect to have any material impact on earnings or stock price.
- Assuming yield on cash of 7 percent, the acquisition is marginally EPS accretive.
Motilal Oswal on Indigo-Air India Bid
- IndiGo not to bid for Air India.
- Wisest thing to do.
- Believe this is a positive move for Interglobe Aviation.
- Removes the overhang of successful acquisition and post-acquisition integration of Air India.
SBICAP Securities on IndiGo-Air India Bid
- Expanding international operations on its own would have limitations.
- International operations of Air India are a strategic fit for IndiGo.
- Air India acquisition would have added value in long term.
- Stock could give up gains as IndiGo could have bought Air India at lucrative bid price.
- Air India would have been a great value buy for IndiGo.
Morgan Stanley on RBI Policy
- Would focus on inflation forecast for the second half of the current financial year.
- Continue to expect that RBI will move to hike rates by December.
- Don't expect significant overshoot of inflation relative to RBI's target.
- Expect economic recovery to be on a surer footing by December.
- Inflation is expected to rise in June quarter, largely driven by base effects in food prices.
- Expect MPC will have time to pause and assess more incoming data before acting in December.
Macquarie on RBI Policy
- Expect rates to be on hold in 2018.
- Expect bond yields to be range bound; Limited room for further decline.
- Expect activity momentum to sustain in coming months.
- Expect current fiscal's GDP growth to normalise to approx. 7.2 percent.
- Risks to growth outlook would stem from: external demand environment, spike in global commodity prices, capital market risk aversion and changes in government policy.
Geojit on Avenue Supermarts
- Initiated ‘Buy' with a price target of Rs 1,590.
- The most profitable value retailer.
- Mall additions and everyday discount strategy to help deliver strong growth.
- Operating margin higher to peers due to better asset-turnover and lean cost structure.
- Revamp in strategy by including lease stores along with own to accelerate pace of growth.
- Expect revenue and net profit to compound at 34 percent and 43 percent respectively over the financial years till March 2020.
- Expect high premium to be maintained in the medium-term.
Credit Suisse on Jindal Steel & Power
- Maintained ‘Outperform' with a price target of Rs 320.
- New management focused on improving capital discipline.
- Steel is still in shortage; Cycle still on an upturn.
- Some short-term relief on power side with higher spot rates.
CLSA on Shree Cement
- Upgraded to ‘Buy' from ‘Outperform'; cut price target to Rs 20,100 from Rs 22,000.
- Volume growth set to accelerate to 15 percent annually over the next two years.
- Sharp rise in energy costs is a concern; Cement price hikes should help.
- Expect operating income to compound at 25 percent over the fiscal 2018-2020.
- Stock already penalised for the UAE acquisition.
- Further investments in international remain an investor concern.
Here's what experts made of the April monetary policy review.https://t.co/Zei1tZPM2O pic.twitter.com/oqUSUr6AUL
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