Sensex Trims Gains At Close After Hitting Record; Nifty Holds 11,700

Indian equity benchmark—S&P BSE Sensex trimmed intraday gains after hitting a record high.

The 31-share index ended at 0.42 percent higher at 38,837.18, after rallying over 400 points to hit an all-time high at 39,115.57.

The NSE Nifty 50 Index ended at 11,669.15, up 0.39 percent. The broader market index represented by the NSE Nifty 500 Index ended 0.4 percent higher.

The market breadth was tilted in favour of buyers. About 1,253 stocks advanced and 536 shares declined on National Stock Exchange.

Six out of 11 sectoral gauges compiled by NSE declined, led by the NSE Nifty realty index’s 0.87 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 1.84 percent.

SML ISUZU Ltd. sold 2,003 vehicles in March, an increase of 14.1 percent from the year ago period, according to its stock exchange filing.

Shares of the company rose 3.8 percent to Rs 864.90. The stock had advanced over 8 percent intraday.

Mahindra & Mahindra Ltd.’s auto sales rose 1 percent on a yearly basis last month while its tractor sales fell 31 percent, according to its stock exchange filing.

Key Sales Highlights (YoY)

• Passenger vehicle sales rose 4 percent to 27,646 units.
• Utility vehicle sales rose 5 percent to 25,801 units.
• Sales of cars and vans including company’s unit Mahindra Electric Mobility Ltd. fell 6 percent to 1,845 units.
• Commercial vehicle sales fell 4 percent to 24,423 units.
• Light commercial vehicle sales up to 3.5T fell 3 percent to 22,471 units.
• Light commercial vehicle sales above 3.5T fell 3 percent to 1,035 units.
• Medium and heavy commercial vehicle sales declined 33 percent to 917 units.
• Three wheeler sales rose 5 percent to 6,943 units.
• Total domestic vehicle sales rose 1 percent to 59,012 units.
• Total exports rose 15 percent to 3,940 units.

Tractor Sales Highlights (YoY)

• Domestic sales declined 32 percent to 18,446 units.
• Exports fell 6 percent to 1,242 units.

Shares of Mahindra & Mahindra Ltd. erased gains to trade little changed at Rs 675.20.

Escorts Ltd. sold 11,905 tractors in March, an increase of 1 percent from the year-ago month, according to its exchange filing. The stock fell as much as 0.84 percent to Rs 789.35 after the announcement.

Key Highlights (YoY)

• Domestic sales fell 1.1 percent to 11,431 units.
• Export sales shot up 103.4 percent to 474 units.

Shares of Ashok Leyland fluctuated between gains and losses to trade little changed at Rs 91.85.

The company sold 21,535 units last month, a fall of 4 percent from the year-ago period, the truck and bus maker said in an exchange filing.

Key Sales Highlights (YoY)

• Domestic medium and heavy commercial truck sales fell 8 percent to 13,134 units.
• Domestic medium and heavy commercial bus sales rose 5 percent to 2,101 units.
• Total domestic medium and heavy commercial vehicle sales declined 7 percent to 15,235 units.
• Domestic light commercial vehicle sales rose 1 percent to 5,286 units.
• Total domestic vehicle sales fell 5 percent to 20,521 units.

Sales Including Exports (YoY)

• Total medium and heavy commercial truck sales fell 8 percent to 13,620 units.
• Total medium and heavy commercial bus sales were rose to 2,414 units.
• Total medium and heavy commercial vehicle sales fell 6 percent to 16,034 units.
• Total light commercial vehicle sales rose 2 percent to 5,501 units.

Nifty’s 11,700 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract fell 44.07 percent to Rs 83.20. Over 3.39 lakh shares were added to the open interest which stood at over 15.51 lakh shares.

• Bharat Electronics: Shares of the electronic communication equipments maker rose as much as 2.4 percent to Rs 95.45. The company achieves Provisional turnover of Rs 11,700 crore for the previous financial year and acquired orders of Rs 23200 crore during the period, according to its stock exchange filing.
• Nitesh Estates: Shares of the real estate company rose as much a 17.6 percent to Rs 7. The company sold its prime parcel in Bengaluru at Rs. 55 crore, out of which Rs. 40 crore was utilised to reduce its debt, according to its stock exchange filing.
• NTPC: Shares of the power supplier rose as much as 1.87 percent to Rs 137.10. The company has commenced its commercial operations at Pakri Barwadih Coal Mine, according to its regulatory filing.

The sales of new WagonR are reported under compact segment and the the sales number of old discontinued WagonR are however, reported in the mini sub-segment effective February 2019, the company said.

Shares of the company rose as much as 2.5 percent to Rs 6,840 after the announcement.

Shares of NALCO rose as much as 4.2 percent to Rs 57.75.

About 13 lakh shares changed hands in a single block, Bloomberg data showed. Buyers and sellers were not known immediately.

The stock traded at 6.1 times its estimated earnings per share for the coming year, according to Bloomberg data.

Embassy Office Parks REIT’s units listed at Rs 300 after the India’s first such initial public offer generated strong demand. The stock rose over as 3 percent thereafter.

The IPO was subscribed 2.6 times, receiving bids for 18.3 crore units against the total issue size of 7.1 crore, according to data available on the website of the National Stock Exchange. The trust sold units at Rs 299-300 apiece in the three-day offer that closed on March 20.

Shares of Intellect Design Arena rose as much as 5.6 percent to Rs 214.80.

The company won a large multi-million deal from one of the top 20 banks in North America, according to its stock exchange filing. This deal is significant to Intellect as this is the highest ever deal won by the company, the statement added.

The stock is testing its 100-day moving average resistance at Rs 209.68, Bloomberg data showed.

Shares of Infosys reversed their opening losses and rose as much as 0.72 percent to Rs 749.20.

About 16 lakh shares of the company changed hands in a block deal during the pre-market trade, Bloomberg data showed. Buyers and sellers were not known immediately.

Trading volume was 700 times its 20-day average, according to Bloomberg data. The stock had advanced 31 percent in the past 12 months compared to a 17 percent gain in the Sensex.

Indian equity benchmarks extended gains for the third consecutive trading session, following the gains in their Asian peers.

The S&P BSE Sensex rose as much as 244 points or 0.63 percent to 38,917.54 and the NSE Nifty 50 rose as much as 0.55 percent to 11,687.80. The broader market index represented by the NSE Nifty 500 Index rose as much as 0.58 percent.

The market breadth was tilted in favour of buyers. About 1,071 stocks advanced and 405 shares declined on National Stock Exchange.

All the sectoral gauges compiled by NSE advanced, led by the NSE Nifty Metal Index’s 1.64 percent rally.

Here's quick look at the corporate insider trades reported last Friday.

Read: https://t.co/K4hNj4wl9k pic.twitter.com/oQmzmDyphO

— BloombergQuint (@BloombergQuint) April 1, 2019

Rail Vikas Nigam IPO: Here’s All You Need To Know

F&O Cues

• Nifty April Futures closed trading at 11680, premium of 56 points.
• Max OI for April series at 12,000 Call, OI at 22.7 lakh shares.
• Max OI for April series at 11,500 Put, OI at 21.3 lakh shares.

Stocks In F&O Ban

• In Ban: Adani Power, IDBI, Reliance Power
• New in Ban: IDBI, Reliance Power

JPMorgan on Jubilant FoodWorks

• Maintained ‘Overweight’; hiked price target to Rs 1,600 from Rs 1,430.
• Encouraged by continued efforts to expand menu.
• Chinese food format appears attractive to us.
• Believe Jubilant to fare better in QSR space owing to high exposure to delivery.

Goldman Sachs on Crompton Greaves

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 260 from Rs 214.
• Crompton offers favourable risk reward in a sector where multiples are elevated.
• Expect sustained growth in rural India where CG has high exposure.
• Margins in lighting business to normalize at higher levels.
• Expect new product innovations to drive growth.

Citi on SRF

• Maintained ‘Buy’ with a price target of Rs 2,508.
• Closure of Dahej is big, but a temporary setback.
• Quantum of impact on earnings is difficult to ascertain.
• Dahej contributes 70 percent of chemical business revenue.

HDFC Sec on Mastek

• Initiated ‘Buy’ with a price target of Rs 660.
• Strengthened its relationship with the U.K. government and improved operational efficiencies.
• Don’t expect further margin expansion due to on-going issues in US business, higher on-site hiring and supply side issues.
• Expect revenue and EPS CAGR of 15 percent and 16 percent respectively over FY19-21; available at attractive valuations.
• Stake in Majesco U.S. and net cash position provides additional comfort.

HSBC on Just Dial

• Maintained ‘Buy’ with a price target of Rs 640.
• Targeted mid-teen revenue growth will be achieved in the current financial year.
• Revenue from ex-search business to take time, working on re-launching JD Omni.
• Expect steady cash generation and 4-5 percent dividend yield.

HSBC on Indian Metals

• Vedanta: Downgraded to ‘Hold’ from ‘Buy’; cut price target to Rs 200 from Rs 290
• Hindustan Zinc: Maintained ‘Hold’; cut price target to Rs 250 from Rs 260.
• Lower commodity prices and appreciating rupee results in a cut in Ebitda estimates by 8-21 percent.
• Deviation from capital allocation strategy is likely to act as an overhang for Vedanta.
• Higher debt at Vedanta to result in sustained high dividend payout from Hindustan Zinc.

Equirus Securities on Zensar Tech

• Initiated ‘Add’ with a price target of Rs 246.
• Healthy order booking and acquisitions to aid growth momentum.
• Platform agnostic Digital bouquet to augment growth.
• Well positioned to drive wallet share in large customers.
• Expect $ revenue to grow at 14.3 percent CAGR over FY18-FY21.

Equirus Securities on Radio Sector

• ENIL: Initiate ‘Reduce’ with a price target of Rs 545.
• Music Broadcast: Downgraded to ‘Reduce’ from ‘Long’; cut price target to Rs 61 from Rs 72.
• Emerging digital trends start weighing on valuations just like in the U.S.
• U.S. radio companies have seen de-rating despite stable/growing earnings.
• Radio continues to be the most efficient medium for advertisers.

CLSA on Axis Bank

• Maintained ‘Buy’; hiked price target to Rs 840 from Rs 800.
• Earnings rebound ahead and steady growth can drive a rerating.
• Slippage a tad higher but recoveries stronger.
• Hike EPS estimates by 6 percent for the current and the next financial year; Expect RoE of 16 percent by the next financial year.

• Tata Motors said it is disappointed by S&P’s decision to downgrade Jaguar Land Rover now. The company stated that it reaffirms, that it expects improved financial results in the current quarter, compared to the first nine months of the financial year, with significant positive cashflow in the fourth quarter. Jaguar Land Rover is continuing to execute its product plans and Project Charge turnaround strategy to deliver £2.5 billion of cashflow improvements by March 2020.
• Dr. Reddy’s Laboratories said that its Vishakapatnam facility has been re-inspected by Regulatory Authority of Germany and considered to be fully compliant. On Nov. 12 the said authority continued the company’s EU-GMP certification with a specific exclusion of one new product for the aforementioned facility.
• Indoco Remedies: U.S. FDA changed the inspection classification status from 'Official Action Initiated' to 'Voluntary Action Initiated' for Goa plant. The company said this move signifies that the site has come out of the warning letter issue to the site in March 2017 and several pending ANDAs from this facility will now be approved.
• Indian Bank: Ministry of Finance issued notification for amalgamation of Pallavan Grama Bank (sponsored by Indian Bank) and Pandyan Grama Bank (sponsored by Indian Overseas Bank) in Tamil Nadu into a single Regional Rural Bank which shall be called as Tamil Nadu Grama Bank under the sponsorship of Indian Bank.
• Jubilant Lifesciences and International Finance Corporation mutually agree for a one time settlement of $135 million of zero coupon convertible loan. The company says the payment has been made from the recent rated unsecured bonds of US$200 million raised by the company.
• SRF said that pollution control board has issued directions to close the operations of its industrial plant in Gujarat due to alleged non-compliance with the provisions of Water (Prevention and Control of Pollution) Act, 1974. The company says it is in the process of filing a detailed appropriate reply clarifying its position with regard to the issues raised.
• Grasim Industries acquired 100 percent stake in Soktas India for Rs 135.12 crore. The target company is in the business of manufacturing and the distribution of premium cotton fabrics.
• JSW Energy said it will not pursue the electric vehicles business due to higher than anticipated uncertainties associated with said business.
• Astec Life Sciences’s board re-appointed Ashok V Hiremath as the Managing Director of the Company for a further period of one year commencing till March, 2020.
• Amber Enterprises extended time line to complete acquisition of balance 51 percent stake by June 30. The existing plan was of buying 70 percent stake in Ever Electronics.
• Havells India started commercial production of air conditioners at its Rajasthan plant.
• TeamLease Services: CRISIL revised rating outlook g outlook on the long-term bank facility of the Company to'Positive' from 'Stable', while reaffirming the rating at CRISIL A-.
• Deepak Fertilizer and Petrochemicals: ICRA revised long term rating from AA- (Negative) to A+(Stable).
• MCX: SEBI approved appointment of PS Reddy as MD and CEO of the exchange for a period of five years from the date of his joining (to be communicated later by the exchange).
• Jindal Steel & Power’s board appoints NA Ansari as Joint Managing Director for a period of three years with effect from March 29.
• J&K Bank said it has transferred by way of sale 4.1 crore shares of PNB MetLife India Insurance Company to Oman India Joint Investment Fund for a total consideration of Rs. 185 crore.
• Rushil Décor received closure notice from Pollution Control Board to stop the manufacturing process of one of the Laminate Sheet manufacturing units in Gujarat.
• Inox said it has commenced commercial operations of one multiplex in Odisha. Besides, it started commercial operations in a multiplex located in Chennai. The said multiplex has eight screens and 1,820 seats. INOX is now present in 67 cities with 139 Multiplexes, 574 screens and a total seating capacity of over 1.35 lakh seats across India.
• Shriram Transport Finance to consider raising funds by issue of debt securities on April 3.
• Tata Communications-HPIL Deal: Boards of both companies approve to extend the effective date of the scheme to March 31, 2020.
• India Cements: N. Srinivasan resigns from the board of the company as a director with effect from April 1, due to retiring by rotations in deference to SEBI Regulations on age limit.
• GMR Infra cancelled 4 series of optionally convertible debentures after SEBI guidance. Each bond had a face value of RS 57.42 crore.
• Dewan Housing Finance cancelled two employee stock option plans; to explore new employee stock option plans.
• Tata Motors sold its entire stake in Aerospace business to TASL for Rs 625 crore. Also, the company acquired non aerospace business from TAL for Rs 10 lakh.
• GAIL and BHEL signed Memorandum of Understanding for development of solar-based power project.
• Jet Airways’s pilots may go on leave on non-payment of wages, reports Economic Times.
• U.S. FDA approved Sun Pharma and Zydus's ANDA for ambrisentan.
• Sunteck Realty to meet Investors in Europe from Apr 1 – 5
• Garden Reach Shipbuilders & Engineers delivered a landing craft utility L -56 to Indian Navy. This is the sixth of an order of eight such vessels from the Indian Navy.
• Welspun Corp plans to sell its plate and coil mill division (PCMD) and 43 MW power division for Rs 940 crore to Laptev Finance Pvt. Ltd. PCMD is expected to fetch a consideration of Rs 873.5 crore, while 43 MW power division is expected to be sold for Rs 66.9 crore. PCMD had contributed 16.9 percent to the consolidated revenue and 15.4 percent to consolidated Ebitda of the company for 2017-18. The sale expected to completed by May 31, 2019.
• Cipla received eight GMP observations and 10 PAI observations. These observations are both product specific and GMP observations related to the manufacturing and quality processes. There are no data integrity (DI) observations. The U.S. FDA conducted a product specific pre-approval (PAI) and good manufacturing practices (GMP) inspection at its Kurkumbh plant from March 11 to March 20. The inspection covered three units at the plant.
• Titan acquired 30.5 lakh equity shares in CaratLane for Rs 100 crore. Stake in CaratLane stands increased to 69.5 percent from 66.4 percent.
• NLC India: TANGEDCO (Tamil Nadu Electricity Board Division) has not agreed to extend power supply agreement with NLCIL’s Thermal Power Station (TPS-1) beyond March 31. So far TANGEDCO was the only beneficiary for the power generated from TPS-l and in the event of TANGEDCO not agreeing for the extension sought as above, company to take appropriate decision on whether the units shall be operated partially/fully/not operated, w.e.f. April 1, 2019.
• ICICI Securities: Vijay Chandok to take charge as MD and CEO of ICICI Securities from May 7, 2019. Shilpa Kumar, current MD and CEO, to take up senior level position at ICICI Bank.

• U.K. Parliament will take up indicative votes on Brexit proposals on Monday as members seek a compromise to break an impasse over Prime Minister Theresa May’s withdrawal agreement.
• The Reserve Bank of Australia decides on monetary policy Tuesday at a time of falling growth forecasts. Then Australia will release its federal budget that evening.
• Chinese Vice Premier Liu He leads a delegation of trade negotiators to Washington on Wednesday, days after U.S. Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer traveled to Beijing.
• The monthly U.S. jobs report on Friday is projected to show nonfarm payrolls up 175,000 in March, similar to the 186,000 average over the prior three months, after recent readings whipsawed analysts. Economists think the jobless rate held at 3.8 percent with hourly earnings growing at a strong clip.