Sensex, Nifty Close At 1-Month High After Five Straight Days Of Gains

• Tata Sponge Iron: The Kolkata-based sponge iron maker rose as much as 5.9 percent to Rs 1,091.70 after Centrum Capital upgraded the stock to 'buy' from 'hold' for target price of Rs 1,165 per share.
• Associated Alcohols & Breweries: The Indore-based alcoholic beverage maker rose as much as 11.68 percent, the most in two months, to record high of Rs 339.50. Well-known investor Dolly Khanna picked up 1.04 percent stake as per March shareholding pattern.
• HFCL: The Delhi-based telecom equipment maker rose as much as 5.9 percent to Rs 28.65 after it bagged order worth Rs 579 crore from Bharat Sanchar Nigam Limited (BSNL) for building 2G GSM base service set network in Assam.
• Aban Offshore: The Chennai-based oil field service provider rose as much as 7.2 percent to Rs 186 after Brent crude rallied 3.5 percent to its highest level since 2014.

• PTC India has 24.5 lakh shares change hands in a block. Stock down 1.57 percent at Rs 94.10.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Goa-based chemical company fell 0.17 percent to Rs 985.80 after the company reported its March quarter earnings.

Key earnings highlights:

• Net profit at Rs 11.84 crore versus Rs 4.87 crore (YoY)
• Revenue at Rs 160 crore versus Rs 87 crore (YoY)
• EBITDA up 457 percent at Rs 19.5 crore versus Rs 3.5 crore
• Margins at 12.1 percent versus 4.6 percent

Fatih Birol, executive director of International Energy Agency while speaking at International Energy Forum in New Delhi said:

• Global oil demand will continue to grow strongly by about 1.5 million barrels per day
• U.S. will be meeting two-third of global oil demand in the next 5 years
• Since prices have picked up, we will see second wave of shale oil
• Very high prices are also not in the interest of oil producers
• Global oil market dynamics change substantially. If we see another price hike, there will be strong response from U.S. and Russian shale gas production
• Going through difficult times in terms of investments in oil markets

• Asset quality speculation may have prompted the regulator to take the decision on 3-year term of Shikha Sharma
• An independent inquiry should be done by the ICICI Bank
• Regulator will step in only when there are irregularities, not before that
• There seems to be a case for fact finding inquiry
• Conflict of interest doubts should be duly addressed by Chanda Kochhar

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• Bharat Petroleum has 11.9 lakh shares change hands in a single block. Stock down 7 percent at Rs 419.60.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Mumbai-based drugmaker fell as much as 2.78 percent to Rs 1,765 after it received 13 observations from the U.S. FDA.

Five observations are repeat of 2016, from the U.S. drug regulator regarding quality controls and manufacturing practices at its largest facility in Daman that contributes about half of its sales in the U.S.

The observations stem from last month’s surprise inspection conducted from March 19-27. BloombergQuint has obtained a copy of the Form 483 issued by the U.S. Food and Drug Administration to the drugmaker.

Shares of the government-owned oil retailers fell sharply after a report by Bloomberg quoting sources said the government has asked the companies to absorb up to Re 1 per litre rise in fuel prices.

Clarifying on the news AK Sharma of Indian Oil said:

• There have been no instructions from the government for absorbing cost by us
• Government may interfere with prices if retail prices go out of control
• There are various other reasons for changing margins
• Difficult to define an ideal range in gross refining margins
• We have performed well on both refining and marketing side
• Performance in Q4 and FY19 should be good
• Government is sensible enough to take call on taxes when required
• Do not think oil prices will remain high for very long but we expect fluctuations

Also Read: Pradhan Says Oil Prices ‘Too High’ For ‘Price-Sensitive’ India

Shares of the Delhi-based hospitality company rose as much as 2.3 percent to Rs 68.40 after it signed a contract to operate 120-room hotel in Vijaywada which is expected to be operational by March 2021.

Shares of Fortis Healthcare rose 1.9 percent to Rs 149.35.

Malaysia’s IHH Healthcare is preparing to formally approach Fortis Healthcare with an offer for the hospital operator that will put it in competition with a TPG-backed consortium, Bloomberg reported citing people with knowledge of the matter.

IHH, Southeast Asia’s largest hospital operator, aims to send a letter to the Fortis board within the next couple of weeks about its plans to bid for the Indian company, Bloomberg report added citing unidentified people.

• Mahanagar Gas: The Mumbai-based gas distributor fell 3.4 percent to Rs 913. Trading volume was 149.4 times its 20-day average.
• Thyrocare Technologies: The Mumbai-based diagnostic lab operator rose 3.9 percent, the most in over two weeks to Rs 610. Trading volume was 68.4 times its 20-day average.
• Brigade Enterprises: The Bangalore-based real estate developer rose 1.12 percent to Rs 261.55. Trading volume was 12.8 times its 20-day average.
• Symphony: The Ahmedabad-based air cooler maker rose as much as 5 percent to Rs 1,879. Trading volume was 11.1 times its 20-day average.

• Sweetened Fortis offer after feedback from the Investors
• Rival bid fear was not the reason to revise the offer
• Believe minority shareholders will be happy with the revised offer
• Will list SRL after merger

Shares of the Kolkata-based cement maker rose as much as 2.6 percent to Rs 130.65 after the company informed exchanges that it along with its subsidiaries have received Rs 80.26 crore subsidy claim from the central government and the amount will be utilized for pre-payment of loans.

Shares of the Delhi-based government-owned bank fell as much as 3.7 percent, most in two weeks to Rs 101.30 after Fitch Ratings downgraded the viability rating of Punjab National bank to ‘BB-’ from ‘BB’. The rating agency said it expects the losses from the Rs 13,000 crore fraud to affect the bank’s financials.

Shares of the Delhi-based dairy products maker rose as much as 3 percent to Rs 58.40 after 15.2 lakh shares changed hands in a block deal.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Delhi-based telecom equipment maker rose as much as 5.9 percent to Rs 28.65 after it bagged order worth Rs 579 crore from Bharat Sanchar Nigam Limited (BSNL) for building 2G GSM base service set network in Assam.

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Shares of the Mumbai-based real estate developer rose as much as 4 percent to Rs 597.85 after Canada Pension Plan Investment Board (CPPIB) invested Rs 938 crore for acquiring additional 19 percent stake in Island Star Mall Developers Private Limited (ISMDPL).

CPPIB has increased its investment into ISMDPL to a total of Rs 1,662 crore, for 49 percent ownership stake.

Shares of the government-owned oil retailers fell sharply after a report by Bloomberg quoting sources said the government has asked the companies to absorb up to Re 1 per litre rise in fuel prices.

Asian benchmark Brent oil held gains above $70 a barrel as investors weighed easing trade tensions between the world’s two biggest economies against concerns over rising U.S. crude stockpiles.

• Indian Oil plunged 5.6 percent
• Bharat Petroleum sank 5.13 percent
• Hindustan Petroleum tumbled 6.5 percent

Also Read: Fastest Growing Oil Market Laments $70 Crude as Saudis Eye Plant

Shares of the government-owned oil exploration company rose as much as 2.97 percent to Rs 185.55 after Ecuador held talks with ONGC for investment in upstream oil projects, Carlos Garcia, South American nation’s minister of hydrocarbon said in an interview to Bloomberg.

• Ecuador offered two projects -- Intracampos, which has 8 blocks, and Block 20: Garcia
• Intracampos blocks very close to becoming producing assets
• ONGC looking for assets with production of 25k b/d, Garcia says

Shares of the Delhi-based hospital chain operator rose as much as 3.89 percent to Rs 152.30 after Manipal Heath Enterprises revised its offer to buy Fortis Healthcare's hospital business after consulting with shareholders who expressed dissatisfaction with the earlier offer.

What’s Changed?

• “More favourable” swap ratio - Manipal Health revises Fortis Healthcare's hospital business valuation by 21 percent, from Rs 96.5 per share to Rs 116.90 per share
• Manipal Health and TPG will not invest an additional Rs 3,900 crore in the merged entity Manipal Hospitals. Instead the merged company will do a rights issue of up to Rs 4,000 crore in which all shareholders can participate
• SRL Diagnostics to remain a subsidiary of Fortis and may be merged into it on a later date thereby listing the diagnostics business separately

Shares of Hindalco and Vedanta rose as much as 2.8 percent and 2.7 percent each respectively after aluminium prices rose in international markets after buyers stopped buying aluminium from the world's largest manufacturer — Rusal following sanctions imposed by U.S.

The aluminium price on London Metal Exchange rose 3 percent overnight, posting biggest 5-day gain in nine years.

• Mahanagar Gas has 7.6 percent equity change hands on the National Stock Exchange in multiple blocks. Stock down 3.2 percent at Rs 914.85.

Buyers and sellers were not immediately known

Source: Bloomberg

Treasury-bill sale of Rs 15,000 crore by the government today will test investors’ appetite as sovereign bond yields climbed the most in two months. RBI will auction Rs 7,000 crore of 91-day T-bills and Rs 4,000 crore each of 182-day and 364-day notes.

Yield on benchmark 10-year notes climbed 15 basis points in yesterday's session. Edelweiss Securities says the trajectory reversal has been very sharp and has dampened the recent sentiment revival as broad-based buying still seems to be absent

Implied opening from forwards suggests onshore spot will start trading around 64.9049 today.

Here's a lineup of all major corporate meetings over the next few days.https://t.co/P8JBSZdqCj pic.twitter.com/K3HxkzQiqq

— BloombergQuint (@BloombergQuint) April 11, 2018

Macquarie on Indian Aluminium

• Expect Aluminium and Alumina prices to rise on Norsk Hydro shutdown and U.S. sanction on Rusal.
• Continue to assess developments, but a positive impact in short term is apparent.
• Hindalco, NALCO and Vedanta to benefit.
• NALCO is most sensitive to prices; Hindalco is top pick on these events.

Jefferies on NTPC

• Maintained ‘Buy’ with a price target of Rs 205.
• Ended previous fiscal on a strong capacity note.
• Coal availability issues of third quarter are resolving; Expect normalcy by September.
• Regulated ROE during the fiscal 2020-2024 could positively surprise.
• Expect 11 percent compounded growth rate in earnings over the fiscal 2017-2020.
• Capacity driven earnings growth to re-rate stock over next 12 months.

Investec on Finolex Industries

• Maintained ‘Buy’; cut price target to Rs 737 from Rs 763.
• Earnings depends on resin spreads.
• Management pursuing volume growth at cost of margins.
• No price hike unlike peers as focus still on market share gains.
• Finolex trading at a discount to peers.

Macquarie on Eicher Motors

• Maintained ‘Outperform’ with a price target of Rs 37,000.
• Enfield dealer checks confirm strong demand.
• Royal Enfield demand to remain higher than production in the current financial year.
• Waiting period of 15-90 days on key models.
• Expect 25% net profit CAGR over next two years.

UBS on Dr. Reddy’s Labs

• Maintained ‘Neutral’; cut price target to Rs 2,420 from Rs 2,550.
• Expect revenue growth to be subdued in the near term.
• Opportunity size in gSuboxone might be constrained due to introduction of more generics.
• Dr. Reddy’s needs more than one big product approval for stock to move up.
• Increased competition and delays in approvals to weigh on the current fiscal’s earnings.
• Stock already pricing in a recovery in the current financial year.

HSBC on SAIL

• Upgraded to ‘Hold’ from ‘Sell’; hiked price target to Rs 88 from Rs 84.
• Demand recovery and benign pricing environment to result in another strong quarter.
• Completion of modernisation and expansion projects to improve profitability.
• Expect average volume growth of 11 percent and operating income growth of 46 percent over the fiscal 2019-2020.
• Expect SAIL to return to profitability in the current fiscal for the first time in four years.
• Lower margins and inefficient capital allocation remain concerns.

Edelweiss on Future Consumer

• Initiated ‘Buy’ with a price target of Rs 77.
• Future Consumer is a long-term play on India’s evolving consumption segment.
• Future Consumer has efficiently leveraged Future Retail’s retail muscle.
• Tapping emerging categories with innovative offerings.
• Differentiated and prudent pricing strategy ensuring desired traction.
• Expect revenue CAGR of 42.5 percent and operating margin to expand by 379 basis points over the fiscal 2017-2020.
• Expect the company to turn profitable from the current financial year.

HSBC on Future Retail

• Maintained ‘Buy’ with a price target of Rs 730.
• Implemented ‘everyday low price’ strategy emulating its rival Avenue Supermarts.
• Future aims to match or better its prices relative to DMart.
• Future has significantly upped its game in value retailing.
• Expect this move to improve store throughput and augment SSSG growth.

Morgan Stanley on Bharti Airtel

• Maintained ‘Overweight’ with a price target of Rs 535.
• Media reports suggest Airtel to sell Kenya operations.
• Airtel in the past has stated that Kenya operations need to be fixed.
• If news is correct then regulatory approvals would be key.

Credit Suisse on Amber Enterprises

• Amber is room-AC manufacturer for leading brands.
• Company expanding footprint in non-AC and more components.
• 9MFY18 bodes well; Better returns on growth/leverage.
• Chinese imports have lost ground; India exporting now.

Earnings To Watch

• Goa Carbon

• Nifty April futures closed trading at 10,421.5 with a premium increases to 19.3 points from 14.6 points.
• April series: Nifty open interest up 1 percent, Bank Nifty open interest up 14 percent.
• India VIX ended at 14.5, down 2.3 percent.
• Max open interest for April series at 10,500 call strike (open interest at 41.6 lakh, up 5 percent).
• Max open interest for April series at 10,000 Put (open interest at 45.6 lakh, down 1 percent).

APL Apollo Tubes

• WF Asian Reconnaissance Fund bought 5 lakh shares or 2.1 percent equity at Rs 2,140 each.

Supreme Industries

• SmallCap World Fund sold 17.99 lakh shares or 1.4 percent equity at Rs 1,205 each.

VRL Logistics

• Morgan Stanley Mauritius Co sold 5.26 lakh shares or 0.6 percent equity at Rs 389.22 each.

Mark #Zuckerberg says Facebook is cooperating with Mueller's Russia probe.https://t.co/Ai4kagbwya pic.twitter.com/2cddf5SAcE

— BloombergQuint (@BloombergQuint) April 10, 2018

Saudi Arabia is said to signal ambition for $80 oil price.https://t.co/Lc4tdAxHPR pic.twitter.com/kogA04cpBm

— BloombergQuint (@BloombergQuint) April 11, 2018