All You Need To Know Going Into Trade On March 7

Asian stocks declined and Treasuries climbed on Wednesday as global trade-war concerns intensified with free-trade advocate Gary Cohn resigning as President Donald Trump's top economic adviser.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, slid 0.1 percent to 10,216 as of 7:10 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

DayBreak

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

Global Cues

• U.S. stocks rose for a third day as signs mounted that President Donald Trump may still be assessing the most severe protectionist policies.
• Treasuries were flat after CVS Health Corp. kicked off the third largest corporate-debt financing ever.

U.S. stocks end slightly higher; Dollar index declines #BQMarketsNowhttps://t.co/SsDDv08HRd pic.twitter.com/yXDwmYVGST

March 7, 2018

Gary Cohn is resigning as President Donald Trump's top economic adviser.https://t.co/7wikcJvb4Y pic.twitter.com/8AzH0CqC5J

March 7, 2018

Europe Check

• European stocks ended the session flat, after rallying 1 percent Monday, as traders weighed the developments in the trade spat over U.S. President Donald Trump's proposed tariffs.

Mario Draghi given triple whammy of reasons to demand ECB patience.https://t.co/ecHDkwoDMZ pic.twitter.com/WHBqKJD8ov

March 6, 2018

Asian Cues

• The Topix index fell 0.5 percent and the Nikkei 225 Stock Average lost 0.7 percent.
• Australia's S&P/ASX 200 Index fell 0.8 percent.
• Kospi index was down 0.3 percent.
• The S&P 500 Index futures dropped 1.3 percent.

Here are some key events coming up this week:

• The Chinese People's Political Consultative Conference runs through March 15 and overlaps with the National People's Congress meetings in Beijing, through March 20.
• Australia GDP data is due Wednesday.
• Fed's Brainard speaks Wednesday
• The ECB isn't expected to change policy on Thursday, but the Governing Council may discuss a change to pave the way for the end of quantitative easing.
• BOJ monetary policy decision and briefing on Friday.
• U.S. monthly payrolls data come Friday.

Asia policy makers rethink inflation amid epic e-commerce boom. https://t.co/jobJLjx4lf pic.twitter.com/4F20vewSXz

March 7, 2018

Commodity Cues

• West Texas Intermediate crude fell 0.9 percent to $62.02 a barrel.
• Brent ended higher for third day at $65.8 per barrel; up 0.4 percent.
• Gold rose 0.3 percent to $1,338.60 an ounce.
• Sugar ends lower at 13.45 cents per pound; down 0.8 percent.

Shanghai Exchange

• Steel snaps three-day losing streak; up 0.7 percent.
• Aluminium trades higher for second day; up 0.3 percent.
• Zinc snaps five-day losing streak; up 0.3 percent.
• Copper trades higher for second day; up 0.8 percent.
• Rubber trades lower for second day; down 0.4 percent.

The billionaires' feud that will affect electric cars.https://t.co/NeRueeqlaf pic.twitter.com/yPZCFrgRlR

March 6, 2018

Indian ADRs

Stocks To Watch

• Lumax Auto Technologies to consider stock split on Mar 23.
• Ashoka Buildcon unit declared L1 for three road contracts worth Rs 2,991.70 crore in Karnataka.
• SEBI asks Tata Motors to strengthen systems and controls; to conduct an inquiry into results' leakage.
• Ortel Communication to consider fundraising plan on March 10.
• TCS says Virgin Atlantic has extended partnership for five years.
• Sharon Bio says operations at Taloja API plant temporarily suspended on the directions of Central Pollution Control Board.
• Bal Pharma forms joint venture with Australia-based Akaal Pharma for developing veterinary products.
• Tata Sons to buy 6.64 percent stake in Indian Hotels from promoter entities.
• RBI allows raising FPI limit in TeamLease Services to 75 percent from 24 percent.
• RBI allows raising FPI limit in Ultratech Cement to 40 percent from 30 percent.
• REC board approves the proposal for sale of subsidiary WE-NR Power Transmission Ltd. to Power Grid.
• Dilip Buildcon wins Rs 917 crore highway project in Jharkhand.
• Sadbhav Infra declared L1 for highway project worth Rs 933.82 crore in Karnataka.
• Axis Bank says exposure to Nirav Modi, Gitanjali Gems at about Rs 200 crore.
• Torrent Pharma readies 2 billion euros binding offer for Sanofi's European unit (Mint)

Novelis CEO says Trump's aluminium tariffs will increase costs for consumers. pic.twitter.com/SCJrWxoiok

March 6, 2018

Bulk Deals

• PG Electroplast: Nomura Singapore sold 1 lakh shares or 0.6 percent equity at Rs 340 each.
• IZMO: LKP Merchant Financing sold 1.50 lakh shares or 1.2 percent equity at Rs 109.12 each.
• Punjab Alkalies & Chemicals: IDBI Bank sold 5.20 lakh shares or 1.9 percent equity at Rs 29.25 each.

Gayatri Projects

• Första AP-fonden bought 11.07 lakh shares or 0.6 percent equity at Rs 208.7 each.
• GMO Completion Fund Master Portfolio bought 11.91 lakh shares or 0.7 percent equity at Rs 208.7 each.
• GMO Emerging Domestic Opportunities Fund bought 11.25 lakh shares or 0.6 percent equity at Rs 208.7 each.
• Stichting Depositary APG Emerging Markets Equity Pool bought 13.43 lakh shares or 0.8 percent equity at Rs 208.7 each.
• Mentor Capital sold 47.67 lakh shares or 2.7 percent equity at Rs 208.7 each.

Here are the biggest laggards of 2018 so far.https://t.co/uWi99WFWeH pic.twitter.com/o7nlyE0PMK

March 6, 2018

Corporate Actions

• MOIL and Unichem Labs buyback period between March 7-20.

Offerings

• Bharat Dynamics IPO price band at Rs 413-428 per share; IPO opens on March 13.
• Devi Sea Foods seeks approval for IPO.

Who's Meeting Whom

• Voltas to meet RWC Partners and Birla Mutual Fund on March 7 and March 12.
• Havells India to attend the conference by Daiwa Capital Markets on March 8 & 9 in Tokyo.
• BSE to meet Sloane Robinson LLP and Chrys Capital on March 7.
• Heidelberg Cement India to meet SBI Mutual Fund and Alquity Investments Fund on March 8.
• Tamil Nadu Newsprint & Papers to meet several fund houses including Sundaram Mutual Fund, Essel Mutual Fund, Avendus Wealth Management etc on March 7.
• Subros to meet investors/analysts in Singapore on March 7.
• M&M to meet Edelweiss Securities and TIAA CREF Investment Management on March 9 and March 12.

SEBI directs Tata Motors to probe Whatsapp earnings leak.https://t.co/QpHi4zJycb pic.twitter.com/SShoyPfJjv

March 7, 2018

Insider Trades

• Apollo Tyres promoters acquired 16.88 lakh shares from Feb. 27 – March 5.
• MM Forgings promoter S Lakshman sold 1,000 shares on March 5.
• Nelcast promoter P Deepak HUF acquired 50,000 shares on March 5.
• Man Infra promoter Vatsal P Shah acquired 50,000 shares on March 5.
• L&T Infotech promoter L&T sold 100,000 shares on March 5.

Rupee

• Rupee closed at 64.96/$ on Tuesday versus 65.11/$ on Monday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty March Futures closed trading at 10,248.5 discount of 0.6 points versus premium of 7.6 points.
• March Series-Nifty open interest up 5 percent , Bank Nifty open interest up 8 percent.
• India VIX ended at 16.2, up 5.5 percent.
• Max open interest for March series at 10,500 call strike , open interest at 45.9 lakh, open interest up 17 percent.
• Max open interest for March series at 10,000 Put, open interest at 37.1 lakh, up 10 percent.

F&O Ban

• In ban: Dewan Housing, Fortis Healthcare, HDIL, IDBI, Oriental Bank
• New in ban: Dewan Housing

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 1.13 versus 1.21.
• Nifty Bank PCR at 0.66 versus 0.85.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Jefferies on Oil & Gas

• A step forward in Mozambique but risks remain.
• Earnings uplift is years away.
• Development spend likely to weigh on cashflow.
• Prefer ONGC and Oil India over BPCL.
• Valuation inexpensive for ONGC and Oil India.

Morgan Stanley on United Spirits

• Maintained ‘equal-weight'; cut price target to Rs 3,250 from Rs 4,000.
• Risk of GST being levied on Extra Neutral Alcohol (ENA) has re-emerged.
• United Spirits may trend lower amid this ongoing debate.
• Imposition of 18 percent GST on ENA, suggest 15 percent impact on earnings.
• United Spirits should be unable to mitigate impact of higher input costs.
• Risk reward is less favorable with low visibility on incremental pricing growth.

BofAML on Titan

• Maintain Buy; Raised target price to Rs 920 from Rs 770
• Banking scam may hasten jewelry industry consolidation
• Tighter credit norms for jewelers to hasten consolidation
• Titan to be key beneficiary of recent events
• Over 14 percent of organised market up for grabs
• Positives: strong brands, national presence, debt-free balance sheet & robust corporate governance.

Morgan Stanley on NBFCs

• Higher market borrowing rates to stay.
• Pricing power has swung in favour of banks.
• Banks have stepped up price competition in retail.
• Like NBFCs in non-bank segments.
• Aditya Birla Capital: Downgrade to ‘Underweight' from ‘equal-weight', cut price target to Rs 163 from Rs 185.
• Indiabulls Housing Finance: Downgrade to ‘Underweight' from ‘equal-weight', maintained price target at Rs 1,250.
• LIC Housing Finance: Maintained ‘Overweight', cut price target to Rs 600 from Rs 675.
• Shriram City Union Finance: Maintain ‘equal-weight', cut price target to Rs 2,200 from Rs 2,300.
• Bajaj Finance: Maintained ‘Overweight'; cut price target to Rs 2,000 from Rs 2,200.
• Mahindra Financial: Maintained ‘Overweight'; cut price target to Rs 575 from Rs 600.
• Edelweiss Financial: Maintained ‘Overweight'; cut price target to Rs 340 from Rs 380.

Kotak Securities on Zee Entertainment

• Maintain Add with target price of Rs 625.
• Believe ZEE5 has what it takes to be key OTT player and even compete with leader.
• Extent of success will be determined by execution and competitive intensity.
• Management confident of operating margins to be above 30 percent in the next fiscal after factoring digital investments.
• Will closely track ZEE5's execution and competitive landscape.
• Expect digital loss to be within Rs 200-250 crore percent year in the next two financial years.

Credit Suisse on India Financials

• Bond hit will add to current quarter woes.
• PSU banks are staring at potential treasury loss of over Rs 20,000 crore in current quarter.
• PSU banks' current 10 percent excess bond holdings - highest in last 12 years.
• Rising bond losses will add to concerns about adequacy of recap plan.
• RBI intervention may be required.
• Continue to prefer private over PSU banks.

March 31 deadline for #Aadhaar linkage may be extended, government tells Supreme Court.https://t.co/FsepEm2qXg pic.twitter.com/LP8SRJ3LGy

March 7, 2018

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