Indian equity benchmarks ended higher for the fifth straight week despite a sharp fall in today’s trade. The benchmark indices clocked this year’s longest stretch of weekly gains.
The S&P BSE Sensex closed nearly 0.4 percent higher this week at 38,164.61 and the NSE Nifty 50 ended the week at 11,456.90 after gaining nearly 0.3 percent. The broader market index represented by the NSE Nifty 500 Index ended a little changed this week.
The 31-share index fell 0.58 percent or 222.14 points in today’s trade, while the 50-stock index ended 0.56 percent lower. The 500-share gauge ended 0.55 percent lower today.
The market breadth was tilted in favour of sellers. About 1,132 shares fell and 625 stocks advanced on National Stock Exchange.
Ten out of 11 sectoral gauges compiled by NSE ended lower today, led by the NSE Nifty PSU Bank Index’s 2.15 percent fall. On the flipside, the NSE Nifty Realty Index was the only sectoral gainer, up 0.47 percent.
Ratnamani Metals & Tubes
- Stock fell as much as 2.6 percent to Rs 886.10.
- Trading volume was almost 40 times its 20-day average.
Securities & Intelligence Services
- Stock fell as much as 6.8 percent to Rs 880.05.
- Trading volume was almost 18 times its 20-day average.
SpiceJet
- Stock rose as much as 14.2 percent to Rs 104.70.
- Trading volume was more than 13 times its 20-day average.
Godrej Properties
- Stock rose as much as 5.1 percent to Rs 853.
- Trading volume was almost five times its 20-day average.
NTPC
- Stock rose as much as 3.8 percent to Rs 134.15.
- Trading volume as more than triple its 20-day average.
About 16.7 lakh shares of HFCL changed hands in a block deal on Bombay Stock Exchange, Bloomberg data showed. Buyers and sellers were not known immediately.
- Alembic Pharma: Shares of the drugmaker fell as much as 1 percent to Rs 535.70. The company received U.S. FDA approval for Azelastine Hydrochloride Ophthalmic Solution, used for conjunctivitis treatment.
- Kansai Nerolac: Shares of the paintmaker fell as much as 4.9 percent to Rs 436.30. Brokerage and research firm CLSA Downgraded the stock rating to ‘Sell’ from ‘Underperform’ and cut price target to Rs 385 from Rs 450.
- Tata Power: Shares of the electricity supplier rose as much as 2.4 percent to Rs 73.80. The company signed a deal with the Ministry of Defence, Government of India, to supply 23 ship-borne 3D Air Surveillance Radars to the Indian Navy over the next 10 years, according to its stock exchange filing. The contract is estimated at about Rs 1,200 crore.
Shares of Federal-Mogul Goetze fell as much as 3.8 percent to Rs 553.10.
The U.S.-based Tenneco Inc. announced an open offer for acquisition of up to 25.02 percent of the total shares in the company at a price set by SEBI—Rs 608.46 apiece, according to its stock exchange filing. The price is nearly 6 percent above the last regular trade.
Trading volume was almost 10 times its 20-day average, Bloomberg data showed. The stock advanced 30 percent in the past 12 months outperforming Sensex, which rose 16 percent during the period.
Shares of the drugmaker rose for the fifth-day in a row, their longest gaining streak in nearly two months. The stock rose as much as 1 percent to Rs 2,779.
Dr. Reddy’s received U.S. FDA’s tentative approval for its pain killer drug pregabalin, according to the drug regulator’s website.
The shares gained 31 percent in the past 12 months compared to an 17 percent advance in the Sensex.
Nifty’s 11,500 put option contract was among the most active Nifty option contracts on National Stock Exchange.
Premium on the contract rose 12.77 percent to Rs 63.60. Over 8.16 lakh shares were added to the open interest which stood at over 34.49 lakh shares.
L&T To Mindtree – Your Move Next
Indian equity benchmarks opened higher and are set for their longest stretch of weekly gains in over six months.
The S&P BSE Sensex rose as much as 0.36 percent to 38,524.09 and the NSE Nifty 50 rose as much as 0.39 percent to 11,566.10.
The market breadth was tilted in favour of buyers. About 913 stocks advanced and 533 shares declined on National Stock Exchange.
Nine out of 11 sectoral gauges compiled by NSE advanced, led by the NSE Nifty Pharma Index’s 0.72 percent gain. On the flipside, the NSE Nifty Metal Index was the top sectoral loser, down 0.17 percent.
Here is a lineup of all the major corporate meetings over the next few days.
— BloombergQuint (@BloombergQuint) March 22, 2019
Read: https://t.co/URvv8jZHkO pic.twitter.com/RlvGCIOtBD
Stocks In F&O Ban- In ban: Adani Enterprises, Adani Power, IDBI, Jet Airways, Reliance Power
- New in ban: Adani Power
- Out of ban: BEML, Just Dial, Reliance Capital
On Vodafone Idea
Citi
- Maintained ‘Neutral’ with a price target of Rs 39.
- Attractive rights issue pricing to ensure successful capital raise.
- Steep discount to drive healthy minority participation.
- Continue to have neutral rating as uncertainties still remain.
CLSA
- Maintained ‘Sell’ with a price target of Rs 27.
- Rights issue at steep discount resulting into huge dilution.
- Rights issue to help fund interest and capex spend in near term.
- Further capital infusion will likely be needed beyond 2020-21.
On Maruti Suzuki
Nomura
- Global collaboration between Toyota and Suzuki deeper and wider than expected.
- Key benefit is availability of hybrid technology in India without making much investment.
- Will become more relevant in India as emission norms tighten to BS-6 in 2020.
- Agreement should be win-win for both Maruti Suzuki and Toyota in India.
Jefferies
- Maintained ‘Buy’ with a price target of Rs 7,600.
- Suzuki & Toyota expanded partnership to new areas including supply of Ciaz & Ertiga to Toyota India.
- Access to Toyota's technology will be key to Maruti's long-term prospects, particularly in EVs.
- This means concessions by Maruti’s crown jewel in various forms which investors need to factor.
More Calls
CLSA on Kansai Nerolac
- Downgraded to ‘Sell’ from ‘Underperform’; cut price target to Rs 385 from Rs 450.
- Demand headwinds as auto sector reels under pressure.
- Weak macroeconomic environment raises concern over decorative demand.
- Concern over margin with rise in crude, though strong rupee and price hikes are positive.
CLSA on ICICI Prudential
- Maintained ‘Buy’; hiked price target to Rs 450 from Rs 430.
- Protection to be largest contributor to VNB by 2020-21.
- VNB volatility will be significantly lower than premium volatility.
- Lift VNB estimates for FY20-21 based on higher premiums and wider margins.
Jefferies on Finolex Cables
- Downgraded to ‘Hold’ from ‘Buy’; maintained price target at Rs 525.
- Positives seems priced in, post sharp rally.
- Cautious on tepid ramp-up in 'New Products.
- Expect revenue and net profit to grow at a compounded annual growth rate of 14 percent and 12 percent respectively over FY18-21.
HSBC on Indian Aviation
- Domestic traffic growth slowest as fares seem to have moved north, denting demand.
- Load factor down despite capacity (seats) growth.
- SpiceJet leasing Jet’s plane means capacity would remain which could accelerate competition and bring yield under pressure.
Jefferies on Consumer
- Channel checks suggest some moderation in demand.
- High base post GST rate cuts coupled with near term disruption in trade impacting demand.
- Continue to expect underlying demand to be stable but do not expect significant pick up.
- No further increase in competitive intensity and benign RMs are breathers.
- Nandan Denim: Polus Global Fund sold 12.65 lakh shares or 2.63 percent equity at Rs 55.03 each.
- Jubilant Life Science: Jubilant Employees Welfare Trust sold 34.74 lakh shares or 2.18 percent equity at Rs 784.17 each.
- Carborundum Universal: Sundaram Mutual Fund acquired 13.04 lakh shares or 0.69 percent equity at Rs 357.55 each.
Aviation Data- Domestic air passenger traffic grew 5.6 percent to 113.49 lakh – growth slowest in last 59 months.
- IndiGo’s passenger traffic grew 15 percent to 49.31 lakh.
- Jet Group’s passenger traffic fell 28 percent to 12.92 lakh.
- SpiceJet’s passenger traffic grew 17 percent to 15.58 lakh.
Telecom Data
- Telecom industry lost 38.9 lakh active subscribers in January 2019.
- Reliance Jio added 63.2 lakh active subscribers.
- Bharti Airtel and Vodafone Idea lost 45.6 lakh and 62.1 lakh active subscribers.
London Metal Exchange- Aluminium extended decline for the second day, ended nearly 2 percent lower.
- Nickel snapped its four-day gaining streak and ended 1.68 percent lower.
- Lead ended 0.17 percent lower.
- Tin ended flat Tin ended flat.
- Copper fell for the second-straight session.. ending to 0.56 percent lower.
- Zinc halted a two-day gain, ending close to a 1 percent higher.
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