MARKET WRAP: Sensex ends 216 pts up, Nifty tops 11,340; HDFC Bank adds 2.6%

Equity market ended firm on Wednesday, with the S&P BSE Sensex closing over 200 points higher, powered by financials and energy stocks.

The S&P BSE Sensex remained rangebound for most of the day but witnessed a late surge to end at 37,752, up 217 points or 0.58 per cent. Blue-chips like IndusInd Bank, Yes Bank, Reliance and Axis Bank were among the chief contributors. The 50-share index, Nifty50 on the National Stock Exchange (NSE) had a humbler day, but still added 41 points, or 0.4 per cent, to close at 11,341.70.

In the broader market, the S&P BSE Midcap index ended 64.91 points, or 0.43 per cent lower at 15,127.93, while the S&P BSE SmallCap index ended at 14,874.69, down 45.81, or 0.31 per cent.

BUZZING STOCKS

Among individual stocks, HDFC Bank zoomed over 2.5% to end at 2,226.10 on the back of heavy volumes. On the other hand, SpiceJet slipped more than 2 per cent to Rs 77.15 after the Directorate General of Civil Aviation (DGCA), India’s aviation regulator, grounded Boeing 737 MAX planes following the fatal crash of a plane of the same model in Ethiopia that killed 157 people.

Among sectoral indices, the Nifty Bank index gained 1.64 per cent higher with IndusInd Bank and Yes Bank being the top gainers. The Nifty PSU Bank index also climbed nearly 1.64 per cent led by gains in Canara Bank and J&K Bank.

GLOBAL MARKETS

Asian shares drifted lower on Wednesday as a risk-off mood settled on markets. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.45 per cent in slow trade. Japan's Nikkei led the retreat with a fall of 1.2 per cent as data showed domestic machinery orders fell in January at the fastest pace in four months.

(With inputs from Reuters))


3:54 PM IST Nifty has given a strong breakout and is expected remain strong going ahead. Broad based participation is seen which supportive of the positive outlook. Any meaningful correction should  be used an as opportunity to buy/accumulate. We believe 10,780 a strong trend support with targets seen at 11,800/12,500 going ahead. Banking, Industrials and Metal stocks are expected to outperform

3:41 PM IST

3:39 PM IST

3:37 PM IST The S&P BSE Sensex gained 217 points or 0.58 per cent to settle at 37,752 while NSE's Nifty50 index ended at 11,342, up 40.50 points or 0.36 per cent.

3:25 PM IST COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME JUST DIAL 603.70 48.20 8.68 666567 CAPLIN POINT LAB 433.00 26.10 6.41 17681 MANPASAND BEVER. 127.20 7.00 5.82 301153 CONTAINER CORPN. 525.10 23.40 4.66 70750 BOMBAY DYEING 135.00 5.60 4.33 1030094 » More on Top Gainers

3:04 PM IST Shares of Anil Ambani-owned Reliance Communications (RCom) were trading lower for the sixth straight day, hitting a new low of Rs 4.82, down 6 per cent on the BSE in intra-day trade in otherwise strong market. The fall comes after the lenders claimed to have the first right over income tax (I-T) refunds. In the past six trading days, RCom has dipped 27 per cent from level of Rs 6.64 on the BSE, as compared to 4 per cent rise in the benchmark index, the S&P BSE Sensex. Thus far in the calendar year 2019, it has tanked 67 per cent and plunged 82 per cent from its 52-week high of Rs 26.25 seen on March 22, 2018. READ MORE

2:51 PM IST We expect positive changes in the industry due to its inclination towards recovery - which can be characterized by the operators focus on returns (viz. increasing ARPU) as well as their plans to pare debt (viz. asset monetization, asset sharing, fund raising, etc.). With these strategies, operators would be in a position to strengthen their countrywide 4G networks along with margins expansion. However, profits are contingent to the operators whose focus is on both ARPU expansion and maintaining the market share. On spectrum liabilities, without government support (i.e. lower spectrum prices and other levies). 

2:36 PM IST Embassy Office Parks REIT, backed by Blackstone Group, plans to raise about Rs 4,750 crore ($682 million) in India’s first real estate investment trust listing. The REIT, which includes Embassy Group properties, will offer as many as 158.6 million units at Rs 299 to Rs 300 apiece, according to terms for the deal obtained by Bloomberg. It will start taking orders from anchor investors on Friday before moving on to a public offering March 18 through March 20, the terms show. READ MORE

2:25 PM IST After the near 800-point rally in the S&P BSE Sensex over the past two sessions, there are some stocks that appear over-bought on the technical charts as per two broad indicators - the Stochastic and the Relative Strength Index (RSI). Most traders view such stocks for booking profit or a fresh trade. GET THE FULL LIST HERE

LIVE UPDATES

MARKET COMMENT :: Sahaj Agrawal, Kotak Securities

Nifty has given a strong breakout and is expected remain strong going ahead. Broad based participation is seen which supportive of the positive outlook. Any meaningful correction should  be used an as opportunity to buy/accumulate. We believe 10,780 a strong trend support with targets seen at 11,800/12,500 going ahead. Banking, Industrials and Metal stocks are expected to outperform

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT CLOSE

The S&P BSE Sensex gained 217 points or 0.58 per cent to settle at 37,752 while NSE's Nifty50 index ended at 11,342, up 40.50 points or 0.36 per cent.

Top gainers on BSE500

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
JUST DIAL 603.70 48.20 8.68 666567
CAPLIN POINT LAB 433.00 26.10 6.41 17681
MANPASAND BEVER. 127.20 7.00 5.82 301153
CONTAINER CORPN. 525.10 23.40 4.66 70750
BOMBAY DYEING 135.00 5.60 4.33 1030094
» More on Top Gainers

Reliance Communications dips for the sixth day; hits new low of Rs 4.82

Shares of Anil Ambani-owned Reliance Communications (RCom) were trading lower for the sixth straight day, hitting a new low of Rs 4.82, down 6 per cent on the BSE in intra-day trade in otherwise strong market. The fall comes after the lenders claimed to have the first right over income tax (I-T) refunds. In the past six trading days, RCom has dipped 27 per cent from level of Rs 6.64 on the BSE, as compared to 4 per cent rise in the benchmark index, the S&P BSE Sensex. Thus far in the calendar year 2019, it has tanked 67 per cent and plunged 82 per cent from its 52-week high of Rs 26.25 seen on March 22, 2018. READ MORE

Choice Broking on Telecom industry

We expect positive changes in the industry due to its inclination towards recovery - which can be characterized by the operators focus on returns (viz. increasing ARPU) as well as their plans to pare debt (viz. asset monetization, asset sharing, fund raising, etc.). With these strategies, operators would be in a position to strengthen their countrywide 4G networks along with margins expansion. However, profits are contingent to the operators whose focus is on both ARPU expansion and maintaining the market share. On spectrum liabilities, without government support (i.e. lower spectrum prices and other levies). 

Blackstone Group's REIT seeks to raise $682 million in India listing

Embassy Office Parks REIT, backed by Blackstone Group, plans to raise about Rs 4,750 crore ($682 million) in India’s first real estate investment trust listing. The REIT, which includes Embassy Group properties, will offer as many as 158.6 million units at Rs 299 to Rs 300 apiece, according to terms for the deal obtained by Bloomberg. It will start taking orders from anchor investors on Friday before moving on to a public offering March 18 through March 20, the terms show. READ MORE

ACC, ITC: 14 stocks that look over-bought as per RSI, Stochastic indicators

After the near 800-point rally in the S&P BSE Sensex over the past two sessions, there are some stocks that appear over-bought on the technical charts as per two broad indicators - the Stochastic and the Relative Strength Index (RSI). Most traders view such stocks for booking profit or a fresh trade. GET THE FULL LIST HERE

WEB EXCLUSIVE :: How a gritty Indian market has been rallying ahead of Lok Sabha elections

The benchmark Sensex and Nifty indices touched six months’ highs on Monday, with overseas investors pumping in close to $4 billion ahead of the general elections. Market participants whom Business Standard spoke to expect the rally to continue, as political uncertainty fades away with a recent opinion poll suggesting that the NDA government has an upper hand in government formation at the moment READ MORE HERE


Titan valuations on higher side; investors need to be cautious

The stock of Titan Company hit its all-time high on Tuesday at Rs 1,096 apiece before closing at Rs 1,083; 1.4 per cent higher. While the gains came at a time when the broader indices are on an uptrend, investors are positive on Titan given the healthy earnings visibility. READ MORE

Expansion, several new launches to drive growth for Tata Chemicals

Though the Tata Chemicals stock has corrected by a fourth since September last year and 10 per cent after a disappointing Q3, analysts see some respite from here on. The stock had gained almost three times in five years till September 2018, and the corrections are a good opportunity to take an exposure to the stock, say analysts. READ MORE

Heatmap: S&P BSE Sensex


Overall market valuation is in a comfortable zone: Rajeev Thakkar of PPFAS

Consumption-sector is very robust in terms of underlying growth and attractiveness of the business. However, its valuations have gone haywire. If prices become stagnant or even fall and earnings catch up, that would make the sector attractive, said Rajeev Thakkar, Chief Investment officer (CIO) at PPFAS Mutual Fund, in an exclusive interaction with Puneet Wadhwa and Swati Verma.  READ MORE


VST Tillers hits 3-year low; tanks 48% thus far in FY19

Shares of VST Tillers Tractors continue to be under pressure, hitting three-year low of Rs 1,357, down 3.5 per cent, on the BSE in intra-day trade in an otherwise firm market, amid a fall in sales volumes. The stock was quoting at its lowest level since March 1, 2016 on the BSE. READ MORE

Nifty broader indices


Stocks that hit 52-week high on BSE500

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ASTRAL POLY 1239.35 1291.20 -1.90 -0.15
AXIS BANK 739.90 750.90 -2.35 -0.32
GUJ FLUOROCHEM 1058.00 1063.75 3.70 0.35
HDFC BANK 2226.40 2227.40 55.80 2.57
INDIAN HOTELS 154.25 156.45 3.30 2.19
» More on 52 Week High

HDFC Bank hits all-time high of Rs 2,223 on back of heavy volumes

Shares of HDFC Bank hit an all-time high of Rs 2,223, up 2.4 per cent, to surpass its previous high of Rs 2,220 recorded on July 18, 2018 on the National Stock Exchange (NSE) in intra-day trade, on back of heavy volumes. READ MORE

Nifty Metal Index is trading more than 2% lower


Sectoral trends on NSE


Bajaj Consumer hits 52-week low after promoter stake sale

Shares of Bajaj Consumer Care (formerly Bajaj Corp) hit a 52-week low of Rs 308, down 3 per cent on the BSE in intra-day trade on Wednesday, after the promoter Bajaj Resources sold nearly 7 per cent of its holding via open market on Tuesday. The stock had tanked 9 per cent to Rs 317 yesterday. READ MORE

Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
SUZLON ENERGY 6.98 -0.19 -2.65 3889029
SOUTH IND.BANK 15.14 -0.16 -1.05 3241590
REL. COMM. 4.90 -0.22 -4.30 2995667
SPICEJET 76.50 -2.30 -2.92 2630252
RELIANCE POWER 11.73 -0.19 -1.59 2280592
» More on Most Active Volume

NEWS ALERT | SpiceJet issues statment on Boeing 737 MAX

Consequent to the regulatory directive on the Boeing 737 Max, SpiceJet has already initiated grounding of its Max fleet. In order to cause least inconvenience to its passengers and also bring these aircraft to its maintenance base we expect to complete this exercise on or before 4 pm today. SpiceJet has presently announced cancellation of 14 flights for today and will be operating additional flights from tomorrow. Of the 76 planes in our fleet, 64 aircraft are in operations and we are confident of minimizing the inconvenience to our passengers and attain normalcy in our operations.
 
While a majority of passengers affected as a result of these cancellations have been accommodated by SpiceJet on alternate flights, rest have been offered a full-refund.
 
Safety and security of our passengers, crew and operations are of utmost importance to us and we are closely working with the regulator and manufacturer to resolve the matter.
 
--- Tushar Srivastava, Head of Communications, SpiceJet via Twitter

InterGlobe Aviation hits 10-month high; zooms 90% from 52-week low

Shares of InterGlobe Aviation, parent of IndiGo, hit a 10-month high of Rs 1,325, up 4 per cent on Wednesday, even when other airline stocks slipped up to 8 per cent in the intra-day trade. The stock of InterGlobe Aviation hit its highest level on May 2, 2018. It rallied 90 per cent from its 52-week low level of Rs 697 touched on September 10, 2018, as compared to a 10 per cent rise in the S&P BSE Sensex. It hit an all-time high level of Rs 1,520 on April 20 last year. READ MORE

Market check


There has to be free, fair discussion between govt and RBI: Shaktikanta Das

As Shaktikanta Das, the 25th occupant of the sea-facing room on the 18th floor of the central bank’s headquarters completes three months in office, he’s more than lived up to the promise made on taking charge. “There has to be a free, fair, objective and very frank discussion between the government and the Reserve Bank of India (RBI). I like to believe that all issues, howsoever contentious, can be resolved through discussions.” READ MORE

Emkay Global on L&T

Despite a significant improvement in its balance sheet, execution pick up and robust order inflows, L&T’s P/E multiple has not changed over the last three years. We believe that this is due to persistent concerns on at least one out of the four key parameters on which investors evaluate L&T: 1) execution pick up; 2) balance sheet/ROE; 3) order inflow momentum; and 4) margins. Maintain L&T as our top pick in the Capital Goods space with a target price of Rs 1,606 as well as its overweight stance in our EAP – Engineering & Capital Goods.

Is the worst over on dud loans in state-run banks? Here's what data says

Is the worst over on dud loans in state-run banks? As a result of the asset quality review, standard restructured advances (SRAs) in these banks fell to Rs 0.34 trillion (or 0.5 per cent of gross advances) by Q3 FY19 from a peak of Rs 3.93 trillion (or seven per cent of gross advances) in FY15. READ MORE

Indiabulls Ventures on FII flows

There are lot of positive triggers in the markets like the geo-political issues which have been tactfully resolved, Q3 earnings have reported good set of numbers, interest rates cut followed by dovish stance by the governor which leaves room for further rate cuts, stable inflation data and growing GDP data at the helm, we feel Fiis flows will only rise as they have missed on the opportunity last year when the markets were declining.

Also, with the kind of reforms the BJP government has taken such as introduction of Goods and Service Tax (GST) and Insolvency and Bankruptcy Code (IBC) which cannot be revoked and the approach adopted for tackling heinous  terrorist activity leaves complete room for discounting Modi’s sweeping win in the upcoming elections. Modi’s win will further spur Fiis buying and markets  will henceforth witness FII led rally which will roar the markets to record high levels


Heatmap: S&P BSE Sensex


BofAML on macro data

We continue to expect the RBI MPC to cut rates by 25bp on April 4 and June/August if rains are seen normal. Inflation should average 4.7% in FY20E, well within the RBI's 2-6% mandate, atop 3.4% in FY19E. Fundamentals do not point to generalization of core inflation. Fiscal risks are overdone, in our view, with the Center's FY20e fiscal deficit contained at 3.4% of GDP. High ex-post real policy rates, at 3%, well above the RBI's 1.25-1.75%, show scope to cut. RBI rate cuts should back OMO (open market operations) in reducing lending rates (50bp cut BofAMLe). RBI rate cuts will likely support the INR as FPI equity investment is 7x that of debt.

Indian Hotels nears record high; surges 11% in one week

Shares of Indian Hotels Company hit a 52-week high of Rs 156.45, up 4 per cent on the BSE, in an otherwise subdued market, on expectations of healthy earnings. The stock of Tata Group Company surpassed its previous one-year high of Rs 156 touched on April 24, 2018 in the intra-day trade. It is 3 per cent away from its all-time high of Rs 161 hit on January 23, last year on the BSE. Indian Hotels is the largest playe in the hospitality sector in India, with inventory of over 17,000 rooms. READ MORE

Nomura on inflation numbers

We expect India to remain in a low growth-low inflation scenario. GDP growth is likely to slow further to 6.8% y-o-y in FY20, from 7.0% in FY19, and below the RBI’s projections (7.4%), due to weak global growth and tighter financial conditions. This should lower core inflation further and keep inflation below the RBI’s medium-term target of 4%; we believe inflation may look to undershoot the RBI’s 3.9% projection for Q4 2019.

We expect the RBI to lower both its growth and inflation projections at its 4 April policy meeting. We expect a 25bp rate cut in April and attach a 40% probability of another 25bp cut thereafter (in Q3).

NHB's new rules for HFCs will force many to revisit plot they occupy now

The National Housing Bank’s (NHB) move to tighten capital adequacy ratio norms for housing finance companies (HFCs) will force many to revisit the plot they occupy now. Although the proposed regulatory changes would not adversely impact the stronger among the lot, many HFCs at the capital adequacy ratio threshold of 15 per cent or less will need to infuse more equity to grow at a reasonable rate in the future. READ MORE

Nifty Metal Index is trading 1.75% lower


NMDC gains over 1% after interim dividend announcement


China's night traders are moving US stocks

When a U S activist fund accused 3½-year-old Chinese retailer Pinduoduo PDD 5.17 per cent in November of inflating its sales, shares in the Nasdaq-listed company jumped. One reason: a growing horde of Chinese investors who are contributing to large price moves and unusual trading patterns in some US stocks. Many are young, tech-savvy individuals who stay up late to trade using mobile apps, and who prefer the unfettered nature of US markets to more restrictive conditions in mainland China. READ MORE

Market check


SpiceJet falls 8% after DGCA orders grounding of Boeing 737 MAX aircraft

Shares of SpiceJet slipped as much as 7.99 per cent to Rs 72.50 in the early trade on Wednesday after the Directorate General of Civil Aviation (DGCA), India’s aviation regulator, grounded Boeing 737 MAX planes following the fatal crash of a plane of the same model in Ethiopia that killed 157 people. READ MORE

Opening gainers on BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
MANPASAND BEVER. 128.00 7.80 6.49 101261
NARAYANA HRUDAYA 225.00 8.85 4.09 3
DLF 194.30 7.15 3.82 232061
SUNDARAM CLAYTON 3250.00 108.10 3.44 25
BAJAJ CONSUMER 327.05 10.40 3.28 725796
» More on Top Gainers

MUST READ :: The Brexit pain: Cost of separation and the damage so far

Britain’s vote to leave the European Union has already come at a cost regardless of where Brexit goes from here. Some of the damage is tangible, such as jobs, investment and capital; some of it less so, like international clout and talent. Prime Minister Theresa May’s defeat again in Parliament on Tuesday evening leaves Britain likely to seek a delay to Brexit. The EU needs to agree to it and officials in Brussels have warned there’ll be no further renegotiation. READ MORE HERE

File photo of British Prime Minister Theresa May in the cabinet office . Photo: Reuters

Indian Oil Corporation slips more than 2.50%


Nifty Realty index is trading over 1.50% higher


ICICI Securities on Nifty Bank

The banking index has moved to life-time high levels on the back of buying seen among private sector index heavyweights. Midcap banking stocks saw some profit booking in the last session. On the options front, significant Put writing was seen at ATM and OTM strikes for the weekly contracts indicating limited downsides. However, we expect the Bank Nifty to consolidate around 28500 for a couple of sessions before a further up move.

NEWS IMPACT :: SpiceJet tanks around 5%

The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, has grounded Boeing 737 MAX planes till “appropriate safety measures” are undertaken, joining a wave of suspensions of the aircraft in the wake of a crash in Ethiopia that killed 157 people. There are 18 Boeing 737 Max planes in India — 13 of them with SpiceJet and five with Jet Airways. Jet’s Max planes are grounded because of non-payment of lease rent, while SpiceJet said it had suspended the aircraft’s operations after the DGCA’s decision.  READ MORE HERE

(Image source: BSE)



Banking stocks trade mixed after a stellar rise in the previous session

COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR)
WEIGHT IN
INDEX (%)
INDUSIND BANK 1576.30 7.25 0.46 80746.36 4.20
HDFC BANK 2177.50 6.50 0.30 474163.70 28.39
ST BK OF INDIA 287.35 0.45 0.16 102579.36 10.12
IDFC FIRST BANK 49.80 -0.05 -0.10 14287.66 3.17
AXIS BANK 740.60 -1.95 -0.26 133298.75 8.56
ICICI BANK 386.10 -2.10 -0.54 248800.92 25.81

Realty stocks continue to gain

COMPANY LATEST CHG(RS) CHG(%) FREE FLOAT
MKT CAP
(RS CR)
WEIGHT IN
INDEX (%)
INDBULL.REALEST. 83.20 1.90 2.34 1874.91 8.83
DLF 191.90 4.15 2.21 8561.14 46.67
SUNTECK REALTY 440.05 4.85 1.11 1931.38 3.94
OBEROI REALTY 488.80 5.10 1.05 4443.19 8.89
GODREJ PROPERT. 713.05 3.95 0.56 4905.50 6.98

Rupee appreciates further, gains 6 paise to 69.65 against US dollar

Extending its gains, the rupee on Wednesday appreciated by 6 paise to 69.65 in the early trade, driven by sustained buying by overseas investors. The domestic unit strengthened below the 70-a-dollar mark to end at 69.71 on Tuesday. It is building up a buffer for the central bank to operate in, should there be volatility in the markets in the run-up to the Lok Sabha elections. READ MORE

When should you use EV/EBITDA as an alternative to P/E ratio?

If you try to read the jargon that a lot of analysts write, you get to see the quintessential usage of terms like EV/EBITDA, SOTP etc. There has been a debate as to whether P/E is a good barometer of valuation or whether analysts need to look at other approaches to valuing companies. One such measure is the EV/EBITDA. Let us first break up the formula for simplicity. Enterprise Value (EV) is the amount you will have to pay to acquire the company and can be effectively expressed as (Market cap + market value of debt – cash balances). READ MORE

Centrum's high conviction ideas


Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT OPEN

At 09:19 am, the S&P BSE Sensex was trading 23 points higher at 37,559 while NSE's Nifty50 index was trading at 11,286.35, down 15 points. 

India joins global suspension wave; grounds all 18 Boeing 737 MAX planes

The Directorate General of Civil Aviation (DGCA), India’s aviation regulator, has grounded Boeing 737 MAX planes till “appropriate safety measures” are undertaken, joining a wave of suspensions of the aircraft in the wake of a crash in Ethiopia that killed 157 people. READ THE FULL STORY HERE

Boeing shares fell over 6% intra-day in New York, after logging the biggest drop among S&P 500 index members the previous day

IIFL on Godrej Consumer

GCPL has fallen short of its ambitious sales target over the past decade, but has transformed itself to become a professionally run business across three continents and several product categories. Innovation has been a key growth driver in addition to acquisitions, which have not always yielded the desired result. The next few years for GCPL are likely to be about digesting the acquisitions, plugging portfolio gaps organically, continuing the cost-saving journey and making the organisation future-ready.

IIFL on IT sector

With US & EU expected to slow down in CY19, profit growth of top-250 firms is also expected to moderate. However, most companies have reiterated that the demand outlook remains healthy and unaffected by the so-called macro concerns in developed markets. This is underlined by 11% CQGR in deal-win TCV over the past two quarters by six of our covered companies. ISG data also suggests that digital spends could remain resilient.

Our interactions with IT companies highlighted the dichotomy between demand and macro indicators. We roll forward our target prices to FY21ii and continue to favour TECHM, INFO, HCLT in large caps and MTCL, MPHL in mid-caps on relatively better earnings visibility and valuations.

WEB EXCLUSIVE :: When should you use EV/EBITDA as an alternative to P/E ratio?

If you try to read the jargon that a lot of analysts write, you get to see the quintessential usage of terms like EV/EBITDA, SOTP etc. There has been a debate as to whether P/E is a good barometer of valuation or whether analysts need to look at other approaches to valuing companies. One such measure is the EV/EBITDA. Let us first break up the formula for simplicity. READ THE FULL ARTICLE HERE

INTERVIEW OF THE DAY :: Rajeev Thakkar of PPFAS

'Overall market valuation is in a comfortable zone'

What’s your view on the markets and what has been your investing strategy in the last one year?
 
Since the last 12 - 18 months, equity returns haven't been that great and flows into the equity markets have also slowed down. But, given that our base is low and our flows are not typically representative of the industry and also we have been cautious in small and mid-cap space, NBFCs and some of the overvalued consumption names, we haven’t been impacted significantly. Also, some recognition to the international diversification strategies is coming to fore in people's mind, which in turn, is helping us. READ THE FULL INTERVIEW HERE

Rajeev Thakkar, PPFAS

Market at pre-open


Jefferies on Havells India

Over the past three quarters, Havells India (HAVL) has consistently delivered superior sales growth, broad-based across categories & regions. In 9MFY19, its sales/APAT clocked 30%/25% YoY, notwithstanding headwinds such as escalating competition, volatility in commodity prices & INR and adverse season. HAVL's performance is ahead of peers, driven by a potent mix of diversified product slate, formidable market share, an array of new launches & entrenched distribution. Maintain BUY

Rupee check

Rupee opens at 69.74/$ vs its previous close of 69.71 against the US dollar

Jefferies on Gujarat Gas

Following the ban on coal gasifiers in Morbi by NGT, GPCB has issued a directive asking the ceramic industry to comply with the order and report within 7 days. With ~3 mmscmd of connected capacity using coal gas instead of PNG and ~2 mmscmd of upside based on inspection data, there is strong upside risk to our estimates. Even otherwise, with GGAS trading at 17x FY20E PE, we keep our BUY rating.

MARKET COMMENT :: Jayant Manglik, President - Retail Distribution, Religare Broking

Considering a decent up-move over the last few sessions, some consolidation at higher levels cannot be ruled out in the near term. Domestically, macro data like IIP and CPI inflation will provide further direction to the market. On global front, Investors would actively track the progress on Brexit deal, crude oil price and currency movement. Going forward, indices are likely to exhibit high volatility and so we would advise investors and traders to follow stock specific approach

HSBC on macro data

We believe current core inflation is affected by several shocks (health/education prices, GST, oil), which could abate over the next 12 months (see India's lack of inflation: Exhibiting divergence in the convergence era, 18 February 2019). We expect core inflation to stabilize from c6% now to the 4.5-5% range, and once food inflation also begins to normalize from 0 to 3.5 percent growth by March 2020, headline inflation should converge gradually towards core, resting at the 4% target. Until then, however, headline inflation could remain well under 4%. We expect a 25bp repo rate cut in the April meeting, taking the policy repo rate to 6%. Thereafter, we expect a prolonged pause
 
 

Stocks in focus

Jet Airways: The beleaguered carrier has said that four more aircraft had been grounded due to non-payment to lessors.
 
Axis Bank: The private sector lender has named Rakesh Makhija as non-executive chairman of the bank for a period of three years with effect from July 18. READ MORE

DII trading activity on NSE, BSE and MSEI


FII/FPI trading activity on NSE, BSE and MSEI


Motilal Oswal Financial Services on UPL

We remain positive on UPLL’s holistic growth prospects and maintain our estimates (revenue/PAT CAGR of 32%/19% over FY18-21) and value UPLL at a P/E of 14x (~10% discount to its three-year average trading multiple, primarily due to the highly leveraged balance sheet). Our TP of INR1,035 implies 15% upside. Maintain Buy.

Technical calls from HDFC Securities

BUY Havells India (Rs 765)
Target: Rs 850
Stop loss: Rs 725
 
The stock price has registered new all-time high with higher volumes. It has been trading above all important moving averages. Indicators and Oscillators have been showing strength on the daily and weekly charts. Considering the technical evidences discussed above, we recommend buying the stock at CMP and average it at Rs 745, for the target of Rs 850, keeping a stop loss at Rs 725 on closing basis. READ MORE

Top trading ideas by Prabhudas Lilladher

BUY Torrent Pharma
 
CMP: Rs 1,841.90
TARGET: Rs 1,960
STOP LOSS: Rs 1,760
 
The stock has maintained a strong base around Rs 1,750 levels and has currently indicated a bullish candle to signify strength. It has moved past the significant 50-day moving average (DMA) to improve the bias. The relative strength index (RSI) also has made a steep rise with a trend reversal to signal a buy and with good volume activity witnessed, we recommend a buy in this stock for an upside target of Rs 1,960 keeping a stop loss of Rs 1,760. READ MORE

Rupee check

Rupee has strengthened below the 70-a-dollar mark, and is building up a buffer for the central bank to operate in, should there be volatility in the markets in the run-up to the Lok Sabha elections. At its Tuesday’s closing of 69.71 a dollar, the currency is well buffered from its record low of 74.15. READ MORE

Bulk deals on NSE as on Tuesday

12-Mar-2019 AMJUMBO A and M Jumbo Bags Ltd BHARGAV DEEPAK RAVANI BUY 10,000 44.00 -
12-Mar-2019 AMJUMBO A and M Jumbo Bags Ltd JIGAR PRAMODBHAI SHAH SELL 10,000 44.00 -
12-Mar-2019 BLISSGVS Bliss GVS Pharma Ltd ACHINTYA SECURITIES PRIVATE LIMITED BUY 5,88,693 176.84 -
12-Mar-2019 BLISSGVS Bliss GVS Pharma Ltd ACHINTYA SECURITIES PRIVATE LIMITED SELL 5,87,025 171.55 -
12-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. BHARTI SBM HOLDINGS PRIVATE LIMITED BUY 97,00,000 40.29 -
12-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. CROSSLAND TRADING CO BUY 33,67,437 39.97 -
12-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. CROSSLAND TRADING CO SELL 33,67,437 39.98 -
12-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 45,64,006 40.47 -
12-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 45,64,006 40.46 -
12-Mar-2019 JETAIRWAYS Jet Airways (India) Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 10,42,519 247.78 -

For the full list, click here

Oil check

Oil prices edged higher on Wednesday, supported by planned cuts to Saudi exports and a reduced forecast for US crude output.
 
International Brent crude oil futures were at $66.93 a barrel at 0039 GMT, up 26 cents, or 0.4 per cent, from their last close. Brent touched $67.39 a barrel on Monday, its highest since February 25. US West Texas Intermediate (WTI) crude futures were at $57.17 per barrel, up 30 cents, or 0.5 per cent, from their last settlement.

SGX Nifty

At 8:05 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,320, down 12 points or 0.11 per cent, indicating a subdued start for domestic stocks

Asian Markets check

Asian share markets got off to a subdued start on Wednesday after a mixed finish on Wall Street. MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1 per cent in slow trade. Japan’s Nikkei dipped 0.3 percent and Australia’s main index slipped 0.4 per cent.

Wall Street check

US stocks ended largely higher on tame inflation data. The Dow Jones Industrial Average fell 96.22 points, or 0.38 per cent, to 25,554.66, the S&P 500 gained 8.22 points, or 0.30 per cent, to 2,791.52 and the Nasdaq Composite added 32.97 points, or 0.44 per cent, to 7,591.03.
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