All You Need To Know Going Into Trade On March 19

Stocks in Asia fell led by Japanese shares as the country's ongoing political drama tested investor nerves and Apple Inc.'s move to make its own displays for the first time hit regional producers.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.4 percent to 10,198 as of 7:15 a.m.

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DayBreak

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

Global Cues

• U.S. stocks closed higher for the first time all week as traders digested positive factory output and consumer sentiment reports before next week's Federal Reserve meeting.
• The S&P 500 Index gained 0.1 percent.
• The yield on 10-year Treasuries climbed two basis points to 2.84 percent.
• The Bloomberg Dollar Spot Index climbed 0.1 percent to its highest in almost two weeks.
• Elsewhere, Bitcoin recovered to trade back above $8,000 after tumbling as much as 13 percent.

Why the U.S. treasury likes a weak dollar. (via @BV)https://t.co/JDZAhM0urq pic.twitter.com/ZKEZzLo8lM

Europe Check

• European stocks hold steady as traders round off a week of turmoil within the Trump administration and look to the Federal Reserve meeting next week.

Asian Cues

• Japan's Topix index fell 0.2 percent and the Nikkei 225 Stock Average traded down about 0.3 percent.
• Australia's S&P/ASX 200 Index rose 0.2 percent.
• South Korea's Kospi index lost 0.2 percent.
• Futures on Hong Kong's Hang Seng Index climbed 0.3 percent.
• Futures on the S&P 500 Index were flat.

Here are some of the key things happening this week:

• The FOMC decision and Powell's news conference come on Wednesday.
• The Bank of England is expected to keep interest rates and its asset-purchase program unchanged on Thursday. Attention is on language in the statement, while many forecast the bank could increase its key rate as soon as its next meeting in May.
• Saudi Crown Prince Mohammed bin Salman meets with President Donald Trump at the White House on Tuesday as part of a U.S. visit that includes New York, Boston, San Francisco and Seattle.
• Company earnings scheduled for this week include: Tencent, FedEx, Porsche, Hermes, PetroChina, Nike, Enel and Oracle.

Xi Jinping gets new term as China's President - by a vote of 2,970 to 0.https://t.co/oC8llRMf1H pic.twitter.com/eU9ScmlnCd

Commodity Cues

• West Texas Intermediate crude fell 0.3 percent to $62.15 a barrel. It rallied 1.9 percent Friday.
• Brent snaps three-day winning streak, trades lower at $66.02 per barrel; down 0.3 percent.
• Gold was down 0.1 percent to $1,312.39 an ounce.
• Sugar ended lower for second day at 12.65 cents per pound; down 0.7 percent.

Shanghai Exchange

• Steel traded lower for second day; down 0.6 percent.
• Aluminium traded higher; up 0.3 percent.
• Zinc snapped two-day losing streak; up 0.5 percent.
• Copper traded lower for second day; down 0.4 percent.
• Rubber traded lower for second day; down 0.9 percent.

G-20 sees global tension, end to cheap money as risk to growth.https://t.co/m3qDW2EzzU pic.twitter.com/EcnOtRTLoW

Indian ADRs

Stocks To Watch

• SBI sold, ICICI Bank bought 4.4 percent equity in Clearing Corporation for Rs 143 crore
• Videocon Industries clarified that it is evaluating process to sell stake in Brazil oil block.
• Zee Entertainment calls off deal to acquire 100 percent equity stake in 9X entities.
• Porinju Veliyath Equity Intelligence bought 0.35 percent stake or about 1.9 lakh shares in VA Tech Wabag.
• Grasim Industries increased epoxy resin production capacity at Gujarat plant to 1.23 lakh metric tonnes per annum.
• Max Financial to raise funds for making investment in subsidiary, Max Life Insurance.
• Gujarat Fluorochemicals approves offer for sale for 6.1 percent equity of Inox Wind at price of Rs 115 each.
• Thermax won order worth Rs 503 crore for co-generation plants In Haryana and Punjab.
• UPL's stake in Brazil's Sinagro Group falls to 45 percent from 49 percent.
• TV Today to sell three radio stations with ISHQ 104.8FM to ENIL.
• Orchid Pharma received three bids under insolvency proceedings.
• Sona Koyo Engineering's promoter JTEKT Corporation to sell about 47 lakh shares on March 19,20 via offer for sale route.
• Cadila Health received final approval from the U.S. FDA for omeprazole and sodium bicarbonate capsules.
• PNC Infratech emerged as the lowest bidder for Rs 1,197 crore Aligarh-Kanpur project.
• Indian Oil, BPCL might buy 26 percent stake each in GAIL (PTI).
• Liberty House's bid for ABG Shipyard rejected (Economic Times).

IOC, BPCL may buy government's Rs 41,000-crore stake in GAIL.https://t.co/s9wPy7TvDw pic.twitter.com/uE7YPSp5jJ

Bulk Deals

• Jaypee Infratech: IndusInd Bank Client account sold 85 lakh shares at a price of Rs 10.7 each.
• Mastek: MV SCIF Mauritius bought about 1.19 lakh shares of at a price of Rs 553.41 each.

Gateway Distriparks

• Gateway Distriparks' promoter, Prem Kishan Gupta bought about 10 lakh shares at a price of Rs 201 each.
• Morgan Stanley sold about 10 lakh shares at a price of Rs 201 each.

TeamLease Services

• HDFC Mutual Fund sold 3.8 lakh shares at a price of Rs 2,050 each.
• JF India Fund bought about 4 lakh shares at price of Rs 2,049 each.

Vanguard Group

• Vanguard Group bought about 13.5 lakh shares of Graphite India at a price of Rs 776.06 each.
• Vanguard Group bought about 4.7 lakh shares of HEG at a price of Rs 3,152.52 each.
• Vanguard Group bought about 9.3 lakh shares of Capital First at a price of Rs 648.65 each.
• Vanguard Group bought about 10 lakh shares of Eris Lifesciences at a price of Rs 814.88 each.

Investors must keep expectations tempered this year: @GunwaniManish #BQMutualFundShow @_nirajshah @jayeshkhilnani https://t.co/0LzYXZ8baq pic.twitter.com/WYtpKW7cnz

Who's Meeting Whom?

• Allcargo Logistics to meet several fund houses including Param Capital, Goldman Sachs on March 19.
• Man Industries to meet analysts and investors at Valorem Analyst Conference 2018 on March 19.
• Glaxosmithkline Pharmaceuticals to meet M&G Global Investment Fund on March 22.
• DCM Shriram to meet several funds on March 20-21.

Insider Trades (As reported on March 16)

• Shakti Pumps' Vintex Tools acquired 10,000 shares  on March 15.
• L&T Technology Services' promoter L&T sold 55,000 shares on March 15.
• Sarda Energy & Mineral's promoter Chhatisgarh Investments acquired 1.15 lakh shares on March 15.
• Omax Autos' promoter Warun Mehta sold 20,871 shares on March 12-15.

Trading Tweaks

• Inox Wind and Sona Koya Steering Systems two day offer for sale starts today.
• MMTC circuit filter revised to 10 percent.

New Offerings

• Bandhan Bank IPO IPO day 3. Issue subscribed 0.88 times on day 2.
• Hindustan Aeronautics IPO day 2. Issue subscribed 0.24 times on day 1.
• Karda Construction IPO day 2. Issue subscribed 0.98 times on day 1.
• Sandhar Technologies IPO day 1. Issue price at Rs 327 - Rs 332 per share.

Trading Tweaks

• Inox Wind and Sona Koya Steering Systems two day offer for sale starts today.
• MMTC circuit filter revised to 10 percent.

Rupee

• Rupee ends at 64.94/$ versus 64.93/$ on Thursday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty March Futures closed trading at 10,232.5 premium of 37 points versus 12 points.
• March series-Nifty open interest up 4 percent , Bank Nifty open interest up 12 percent.
• India VIX ended at 15.2, up 6 percent.
• Max open interest for March series at 10,500 call strike , open interest at 58.3 lakh, open interest up 15 percent.
• Max open interest for March series at 10,000 Put, open interest at 46.3 lakh.

F&O Ban

• In Ban: Bank of India, BEML Dewan Housing, HDIL, IDBI Bank, JP Associates, SAIL, TV18 Broadcast.
• New In Ban: HDIL, IDBI Bank, JP Associates, SAIL.
• Out Of Ban: Balrampur Chini.

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.09 versus 1.23.
• Nifty Bank PCR at 1.05 versus 0.92.

Fund Flows

Brokerage Radar

IDBI Capital on GMR Infrastructure

• Initiated ‘Buy' with price target of Rs 32; implying a potential upside of 78 percent from the last regular trade.
• GMR Infra stands as a testament to world-class conglomerate.
• With stake sale in energy, days are brighter ahead.
• Divestment of roads is a matter of time.
• Monetisation of land bank is a sweetener.
• TDSAT ruling to re-rate airport assets.
• Re-rating is around the corner.
• GMR Infra top pick in industrial stocks.

CLSA on Ramco Cements

• Upgraded to ‘Buy' from ‘Sell'; raised price target to Rs 930 from Rs 700.
• Channel checks indicate demand pick-up in Tamil Nadu.
• Costs have also peaked; Ongoing efforts to drive savings.
• Volume growth to improve in next 12-18 months.
• Leverage to fall to sub-0.5 times by March 2020.
• Ramco Cements is top pick in the sector.

Deutsche Bank on India Consumer

• Improving fundamentals outweigh concerns on expensive valuations.
• Broad-based improvement in sales trajectory and rural recovery seen.
• Only select categories witnessing shift to organised from unorganized.
• Soaps, detergents and hair oil segments witnessing the shift.
• Strong pipeline of new product launches.
• Prefer Discretionary over Staples.
• Jubilant Foodworks: Maintained ‘Buy'; raised price target to Rs 2,600 from Rs 2,500.
• Tata Global: Downgrade to ‘Hold' from ‘Buy'; raised price target to Rs 300 from Rs 175.

JPMorgan on Motherson Sumi

• Maintained ‘Neutral'; raised price target to Rs 285 from Rs 250.
• Balance risk reward at current share price levels.
• Operating leverage in European subs to drive earnings growth.
• New acquisitions will remain fairly acquisitive.
• India business remains sweetly positioned.
• EPS CAGR of 31 percent over the fiscal 2018-2020 looks attractive.
• Valuations are demanding, leaving limited room for a miss.

Morgan Stanley on Power Companies

• Like Tata Power for its deleveraging potential.
• Like Power Grid as rising yields imply less risk on regulated returns.
• For NTPC, risks around reduced incentives not priced in.
• Merchant tariffs reached a new high; Likely to normalize.
• Tata Power: Maintained ‘Overweight'; cut price target to Rs 94 from Rs 102.
• Power Grid: Maintained ‘Overweight'; cut price target to Rs 229 from Rs 236.
• NTPC: Maintained ‘Equalweight'; raised price target to Rs 176 from Rs 149.
• JSW Energy: Maintained ‘Underweight'; raised price target to Rs 68 from Rs 50.
• Adani Power: Maintained ‘Underweight'; cut price target to Rs 19 from Rs 21.
• BHEL: Maintained ‘Underweight'; raised price target to Rs 63 from Rs 62.

Jefferies on Telecom

• Bharti Airtel: Downgraded to ‘Underperform' from ‘Hold'; cut price target to Rs 365 from Rs 400.
• Bharti Infratel: Maintained ‘Hold'; cut price target to Rs 300 from Rs 385.
• Idea Cellular: Maintained ‘Underperform'; cut price target to Rs 68 from Rs 70.
• Profitability to remain under pressure for another 12 months.
• Expect ARPU improvement from October 2019.
• Consumer willingness to pay higher for similar service is low.
• Bharti Airtel well placed to face competitive threat to its various businesses.
• Expect Airtel to sustain its overall market share and gain data subscriber share.
• Expect Idea to see substantial market share losses.
• Expect muted near-term growth for Infratel.
• Concerned about the long-term margins and return ratios of Infratel.

Nomura on Infosys Management Meet

• Maintained ‘Reduce' with a price target of Rs 990.
• Sounded positive on BFSI.
• Commentary mixed in other verticals.
• Consulting and system integration has seen a pick up lately.
• Heightened management attrition has not hurt performance.
• Retain cautious stance on IT sector and do not see material acceleration in the next fiscal.

Nomura on Wipro Management Meet

• Maintained ‘Reduce' with price target of Rs 270.
• Expects next fiscal to be better than current fiscal.
• Digital an opportunity, though benefits differ based on stage of a client.
• Expects growth to remain strong in BFSI.
• Retain cautious stance on IT sector and do not see material acceleration in the next fiscal.

Coalition government would not be a determinant of what happens with the stock market, says Shankar Sharma.https://t.co/tniV1eoQGK pic.twitter.com/BCdQU34wwI

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