Sensex ends 284 points down, Nifty at 10,154; PSU bank index crack over 3%

Representational Image
The domestic indices ended nearly 1% lower on Wednesday taking cues from recent developments in the banking sector. That apart, global developments are also kept market sentiment in check.

The S&P BSE Sensex ended the day at 33,033, down 284 points while the broader Nifty50 index settled at 10,154, down 95 points.

Among sectoral indices, the Nifty PSU Bank index declined 3.57% on Wednesday led by a fall in the shares of Andhra Bank, Canara Bank and Allahabad Bank.

Senior officials from Axis Bank on Tuesday appeared before the Serious Fraud Investigation Office (SFIO), which has started seeking details from lenders with exposure to firms promoted by Nirav Modi and Mehul Choksi with regard to the Rs 127-billion Punjab National Bank (PNB) scam.

A team from Axis Bank, led by Deputy Managing Director V Srinivasan and executives from the trade and transactions department, went to the SFIO’s office in Mumbai, after the investigating agency called them to help in the probe, sources said. The SFIO is understood to have also called officials from other banks, including ICICI Bank, they added.

 
GLOBAL MARKETS

Global stocks and the dollar slumped on Wednesday after a strong White House advocate for free trade resigned, fanning fears that US President Donald Trump will proceed with protectionist tariffs and risk a trade war.

White House economic adviser Gary Cohn, seen as a bulwark against protectionist forces within the Trump administration, said on Tuesday he was leaving.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.65 per cent on Wednesday, while Japan’s Nikkei retreated 0.77 per cent. South Korea’s KOSPI surrendered morning gains to slip 0.45 per cent.

(with inputs from Reuters)

3:41 PM IST BSE Smallcap: Teamlease, Sagar Cements top gainers for the day, NECC top loser

3:36 PM IST Nifty PSU Bank index extends losses, ends over 3% lower

3:36 PM IST BSE Midcap: Vakrangee, Central Bank of India among top gainers of the day, Adani Enterprises top loser

3:34 PM IST Sectoral Trend

3:33 PM IST Sensex Heatmap

3:31 PM IST Markets at Close Th S&P BSE Sensex ended the day at 33,033, down 284 points while the broader Nifty50 index settled at 10,154, down 95 points

3:14 PM IST IIFL on Cement sector   Although dealers indicate scepticism on price increases in March, producers have increased prices in March every year following increased availability of labour after Holi since 2003.   While higher input costs, heightened competition, and increased stringency in overloading restrictions are likely to put some pressure on margins, higher-than-expected volume growth is likely to partially offset the same.    We expect utilisation to cross the 70% mark in FY19 after a five-year gap and enhance pricing power of producers over the next two years. However, robust demand growth over the past two quarters has renewed optimism and led to producers considering capacity expansions. Utilisation crossing the 75% mark for the industry remains elusive

3:05 PM IST FDC, V-Mart Retail hit record highs in weak market   FDC and V-Mart Retail have hit their respective record highs by surging up to 11% on the BSE in intra-day trade in otherwise weak market.   FDC has rallied 11% to Rs 319 in early morning trade on back of heavy volumes. The trading volumes on the counter jumped more than 10-fold with a combined 1.05 million shares changed hands on the BSE and NSE.

2:52 PM IST TeamLease Services surges 17% as RBI raises FPI investment limit   TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.   Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.   “The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release.

2:40 PM IST Edelweiss on GMR Infra   We have valued GMR at Rs 29/share, using SOTP approach. While near-term weakness in airport division’s performance is likely due to implementation of tariff order in Delhi airport, steady traffic spurt in airports and improving volumes in power/road assets are envisaged to boost the company’s fortunes. Regulatory upsides in existing airports, new airport wins in India and asset monetisation will be key stock drivers, in our view. We initiate coverage with ‘BUY’ recommendation.

2:27 PM IST BSE 500 index: Top five losers COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME JP ASSOCIATES 14.85 16.15 -1.30 -8.05 12812392 ADVANCE. ENZYME. 215.00 233.75 -18.75 -8.02 50990 VA TECH WABAG 479.90 521.60 -41.70 -7.99 40998 DEEPAK NITRITE 240.35 259.10 -18.75 -7.24 48269 FORTIS HEALTH. 150.00 161.20 -11.20 -6.95 2998008

2:11 PM IST NEWS WATCH Coal India misses production target again; imports likely to increase The import of thermal coal is likely to increase in the coming months, as Coal India is set to miss its production target again – for an 11th straight month – causing a fuel shortage at the country’s thermal power plants. This is particularly worrisome as the demand for coal is likely to increase further as summer approaches. READ MORE  

LIVE UPDATES

BSE Smallcap: Teamlease, Sagar Cements top gainers for the day, NECC top loser


Nifty PSU Bank index extends losses, ends over 3% lower


BSE Midcap: Vakrangee, Central Bank of India among top gainers of the day, Adani Enterprises top loser


Sectoral Trend


Sensex Heatmap



Markets at Close

Th S&P BSE Sensex ended the day at 33,033, down 284 points while the broader Nifty50 index settled at 10,154, down 95 points

IIFL on Cement sector
 
Although dealers indicate scepticism on price increases in March, producers have increased prices in March every year following increased availability of labour after Holi since 2003.
 
While higher input costs, heightened competition, and increased stringency in overloading restrictions are likely to put some pressure on margins, higher-than-expected volume growth is likely to partially offset the same. 
 
We expect utilisation to cross the 70% mark in FY19 after a five-year gap and enhance pricing power of producers over the next two years. However, robust demand growth over the past two quarters has renewed optimism and led to producers considering capacity expansions. Utilisation crossing the 75% mark for the industry remains elusive
FDC, V-Mart Retail hit record highs in weak market
 
FDC and V-Mart Retail have hit their respective record highs by surging up to 11% on the BSE in intra-day trade in otherwise weak market.
 
FDC has rallied 11% to Rs 319 in early morning trade on back of heavy volumes. The trading volumes on the counter jumped more than 10-fold with a combined 1.05 million shares changed hands on the BSE and NSE.
TeamLease Services surges 17% as RBI raises FPI investment limit
 
TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.
 
Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.
 
“The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release.
Edelweiss on GMR Infra
 
We have valued GMR at Rs 29/share, using SOTP approach. While near-term weakness in airport division’s performance is likely due to implementation of tariff order in Delhi airport, steady traffic spurt in airports and improving volumes in power/road assets are envisaged to boost the company’s fortunes. Regulatory upsides in existing airports, new airport wins in India and asset monetisation will be key stock drivers, in our view. We initiate coverage with ‘BUY’ recommendation.

BSE 500 index: Top five losers

COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME
JP ASSOCIATES 14.85 16.15 -1.30 -8.05 12812392
ADVANCE. ENZYME. 215.00 233.75 -18.75 -8.02 50990
VA TECH WABAG 479.90 521.60 -41.70 -7.99 40998
DEEPAK NITRITE 240.35 259.10 -18.75 -7.24 48269
FORTIS HEALTH. 150.00 161.20 -11.20 -6.95 2998008

NEWS WATCH Coal India misses production target again; imports likely to increase

The import of thermal coal is likely to increase in the coming months, as Coal India is set to miss its production target again – for an 11th straight month – causing a fuel shortage at the country’s thermal power plants. This is particularly worrisome as the demand for coal is likely to increase further as summer approaches. READ MORE
 
PFC, REC may be close to bottom: Credit growth, asset quality may improve

Share prices of power sector financiers Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) have hit new lows this week after significantly underperforming on the S&P BSE Sensex for the last one year.
 
The Q3 results were bad, with the companies reporting a yoy decline in net interest income (difference between interest earned and expended) and a double-digit fall in net profit. READ MORE

Market Check

 
S&P BSE Sensex 33,110.92 -0.62%
 
Nifty 50 10,185.95 -0.62%
 
S&P BSE 200 4,446.46 -0.74%
 
Nifty 500 8,964.05 -0.84%
 
S&P BSE Mid-Cap 15,971.73 -1.21%
 
S&P BSE Small-Cap 17,338.50 -1.78%

Sebi's P-note derivative ban fails to dent Indian futures market volumes

It has been six months since market regulator Securities and Exchange Board of India’s (Sebi’s) diktat of not allowing participatory notes (p-notes) to take unhedged positions in Indian derivative markets took effect. Contrary to industry concerns at the time the decision was taken, however, the volumes in Indian futures market have only increased since August 2017. READ MORE
UltraTech takes fight for Binani Cement to NCLT after bid rejection

The Aditya Birla group’s UltraTech Cement moved the National Company Law Tribunal (NCLT) in Kolkata on Tuesday against the resolution professional for Binani Cement after its bid for the cement company undergoing insolvency proceedings was rejected. READ MORE
| Photo: Reuters

Kotak Institutional Equities on Zee Entertainment
 
We interviewed Zee’s MD & CEO on its digital strategy and ZEE5 (new OTT platform). ZEE5 aspires to be a key digital destination for Indian language entertainment, powered with a content library of 100,000 hours and a steady flow of originals (72+ series; 200+ hours/year) and new movies (100+ digital premieres). We believe ZEE5 has what it takes to be a key OTT player and even compete with the leader, Hotstar, on the entertainment side. The extent of success will be determined by its execution and competitive intensity (especially Jio).
Near-term worries for Maruti stock, even as product demand remains strong

The Maruti Suzuki stock has shed about 12 per cent from its all-time intra-day high of Rs 10,000, recorded in mid-December 2017. That is due to the correction in broader markets and softer demand expectation for the industry, especially in the urban segment. READ MORE
BSE Sensex: HDFC, Bajaj Auto among top gainers, SBI top loser


Oracle Financial Services Software
Rating: BUY

 
We upgrade Oracle Financial Services Software (OFSS) to BUY on a 19% upside. The stock’s participation in the broader IT sector rally over the last two months has been restricted by muted 3QFY18 results; it has also under-performed global peers over this period. However, given management’s commentary of a robust deal pipeline + a seasonally stronger period ahead, we find current levels attractive to play to its structural strengths. We also raise our FY19/FY20E EPS by 6.6%/6.8% on superior margin management. Our revised Rs 4,480 target price (Rs 4,020 earlier) is on a 20x implied target PER (unchanged)

(Source: JM Financial Report)
 
Harrisons Malayalam hits the roof after bulk deal

Harrisons Malayalam was locked in 5% upper circuit at Rs 82.40 at 11:31 IST on BSE after a bulk deal of 13.02 lakh shares was executed on the scrip at Rs 81.05 per share at 09:15 IST on BSE. READ MORE
 
Stock-split proposal boosts Lumax Auto Tech

Lumax Auto Technologies rose 1.47% to Rs 886 at 09:28 IST on BSE after the company scheduled a board meeting on 23 March 2018 to consider stock-split of equity shares. READ MORE
Sectoral Trend


Nifty PSU Bank index hits 19-month low, down 7% in two days
 
Shares of public sector undertaking (PSU) banks continued to be under pressure with the Nifty PSU Bank index hitting 19-month low as investigation deepened in the Punjab National Bank (PNB) fraud case.
 
Canara Bank, Andhra Bank, Allahabad Bank, Bank of India, Oriental Bank of Commerce, Bank of Baroda and Union Bank of India from the Nifty PSU Bank index touched their respective fresh 52-week lows on the NSE today. READ MORE
Market Check

S&P BSE Sensex 33,120.82 -0.59%
 
Nifty 50 10,184.30 -0.63%
 
S&P BSE 200 4,445.71 -0.75%
 
Nifty 500 8,960.80 -0.87%
 
S&P BSE Mid-Cap 15,967.13 -1.24%
 
S&P BSE Small-Cap 17,342.19 -1.76%

Sector watch: Hotels
 
Leisure industry, primarily represented by large asset owners, has suffered the wrath of a persistent decline in average room rates (ARRs) post the sharp fall triggered by the 2008 financial crisis. However, things have begun to look up in 2017, with a marginal 3% ARR rise in the premium segments that endured the maximum pain. 
 
All this while, sustained pressure on room rates was a function of snowballing supply offsetting the steady rise in occupancy. However, as per data extrapolation on branded room additions over the next 5 years, supply is likely to be capped at 4% yoy in most cities while demand should grow much faster on back of buoyant business & leisure travel and translating into faster ARR growth. Indian Hotels, the largest listed play on the cyclical upswing underway, could engineer a sharp turnaround in profitability over the next one-two years.
 
(Source: IIFL)
Kotak Institutional Equities on Gail (India)
 
The recent sharp correction in the GAIL stock, 12% over past two months since the news of unbundling, offers an opportunity to BUY as we see limited impact on GAIL’s profitability from separation of gas marketing business from the gas transmission segment. On the contrary, it may lead to value unlocking with the stock trading at a low 11.4X FY2019E business EPS, adjusted for investments—inexpensive in the context of 8-10% sustainable earnings growth and higher adjusted RoEs of 14%.
TeamLease Services surges 17% as RBI raises FPI investment limit
 
TeamLease Services surged 17% to Rs 2,387 on the BSE in intra-day trade on Wednesday, in an otherwise weak market after the Reserve Bank of India (RBI) raised the investment limit for foreign portfolio investors (FPIs) in the company to 75% on Tuesday.
 
Currently, FPIs hold 24.64% stake in TeamLease Services, one of India’s leading human resource service companies in the organized segment.
 
“The Reserve Bank of India has notified that the Foreign Portfolios Investors (FPIs) investment limit under Portfolio Investment Scheme in TeamLease Services has increased from 24% to 75% of its paid up capital,” the RBI said in a press release. READ MORE
MUST READ Fear of foreign capital: Why is India turning away bond buyers?

Hoping to jump-start its "Make in India" manufacturing push, India's government has rolled out the welcome mat for foreign investors. It should consider doing the same for global bond buyers. Indian bonds are, at the moment, suffering a full-scale rout. On Monday, yields on benchmark 10-year government debt -- called the “G-sec” rate in India -- continued their slow creep upwards to 7.78 percent. Many expect them to cross eight percent at some point in the next few months. CLICK HERE FOR MORE
Mega telecom deal between Ambani brothers faces legal hurdle

Billionaire Anil Ambani’s plan to dig his telecom unit out of a debt hole, via an asset sale to his brother’s firm, is facing a fresh hurdle that threatens to delay the deal past a March deadline.
 
A local arbitration tribunal on March 5 barred Reliance Communications, or RCom, from selling assets as the court examines a dispute over unpaid dues with the Indian unit of Ericsson AB. READ MORE

RCom slips nearly 1%


Central bank watch
 
We expect the Bank of Canada to leave rates on hold at 1.25% on Wednesday 7th March. 22 of 22 analysts surveyed by Bloomberg expect no change and the OIS market implies just a 12% chance of a 25bp hike. We expect a 25bp hike to 1.50% at the April 18th meeting but we see this as likely to be final hike of this year. This is on the proviso that our Fed call of two hikes remains unchanged
 
(Source: Rabobank International report)
Reliance Securities on JK Tyre & Industries
 
JKT enjoys a leadership position in the M&HCV TBR tyre segment with over 31% market share, while its market share stands at 12% in PCR tyre segment. Notwithstanding a subdued performance in 9MFY18, we expect JKT’s performance to improve, going forward owing to sustained pick-up in sales volume, reduction in manpower cost and steady input prices.
 
Further, a pick-up in utilisation and low capex requirement are expected to aid JKT to de-leverage its balance-sheet in coming quarters. We reiterate our fundamental BUY rating on the stock with Target Price of Rs 210.
MOIL buyback. Should you tender shares?

Moil Ltd’s buyback of 87.66 lakh shares at a price of Rs.240 per share starts today and ends on March 20th, 2018. Approximately just 3 or 4 shares out of 100 held would be accepted in the buyback, which would give 13% gain from the yesterday’s closing price. Considering the marginal benefit on overall holdings and also the potential of the stock on the basis of fundamentals, we suggest investors to hold on to MOIL and skip the buyback offer

(Source: Equinomics Research)
US Fed assumes significance again. Here's why

All eyes will be on the Fed’s Beige Book report tonight. The market is looking for the Fed, at its FOMC meeting on 21 March, to upgrade its economic assessment and to raise the dots. One of Fed’s dove, Governor Lael Brainard, has turned optimistic that headwinds are turning into economic tailwinds that will support gradual rate hikes, which New York Fed President William Dudley reckoned is consistent with one hike per quarter. Dallas Fed President Robert Kaplan, meanwhile, supports three hikes this year as consistent with a US economy near full employment

(Source: DBS Bank report)
COMMODITY WATCH Godrej International sees palm futures rising to 2,700 ringgit by June

Godrej International's Dorab Mistry is turning slightly bullish on palm oil. Benchmark palm oil futures may gradually rise to 2,700 ringgit ($690) a tonne by June, the highest level since November, Mistry said at an industry conference in Kuala Lumpur on Tuesday. READ MORE
 

Adani Group stocks extend fall; Adani Transmission down 5%

Shares of all the four listed Adani Group companies – Adani Ports and Special Economic Zone (SEZ), Adani Enterprises, Adani Transmission and Adani Power – have fallen by up to 7% in early morning deal on Wednesday, extending its previous day’s fall on the BSE. READ MORE
ICICI Bank hits over four-month low; falls 13% in six trading days

ICICI Bank dipped 3.3% to Rs 285 on the BSE on Wednesday in early morning trade, extending Tuesday’s 2.6% decline after media reports suggested that the bank’s Managing Director and Chief Executive Officer Chanda Kochhar was summoned by the Serious Fraud Investigation Office (SFIO) in Punjab National Bank (PNB) scam. READ MORE
MUST READ US protectionism: There are no winners in Donald Trump's trade war

A “trade war” triggered by the US could be a defining factor that retards growth across the globe. Donald Trump proposes to impose a 25 per cent customs tariff on steel imports and a 10 per cent tariff on aluminium. In retaliation, the European Union (EU), Canada, Brazil, China, etc, have threatened to impose customs duties on US exports CLICK HERE FOR MORE



Nifty PSU Bank index slips over 1%


Sharekhan on PI Industries

We maintain hold with revised target price of Rs 940. In order to accelerate growth momentum the management is focusing on branded products, launching new products and forging tie-ups and partnerships to increase its client base. The company also has healthy cash-flow generation which makes the balance-sheet much stronger.

As the management has not guided any deviation from its earlier guidance provided post the 3QFY18 results, we are not revisiting our numbers currently and continue to maintain our hold rating on the stock with a revised target price of Rs 940.
SECTOR WATCH: Construction

Reports indicate that the National Highway Authority of India (NHAI) has commenced its road monetisation programme by opening the bids for the first lot of projects on the Toll‐operate‐Transfer (ToT) mode. Macquarie has won the rights to collect toll on ~648km of highways for a period of 30 years by quoting ~ Rs 97 billion. This will help NHAI raise upfront capital to fund road projects based on the EPC and hybrid annuity (HAM) modes.

We view this as a seminal event in the Indian infrastructure space since this will start a virtuous cycle of the government funding various infra projects, completing and then eventually monetising them, with the money raised being used to develop new infra assets. This will reduce the burden on the government budget as far as infra development is concerned. Beneficiaries will include Sadbhav Engg (BUY), Ashoka Buildcon (BUY), KNR Constructions (BUY), PNC Infratech (BUY), Dilip Buildcon (NOT RATED), among others.

(Source: Edelweiss Report)
COMMENT: Jefferies on Indian banks
 
We continue to prefer private sector banks, especially corporate oriented ones or those with greater retail presence or moats around retail liability viz. Yes Bank, Axis Bank, ICICI Bank and HDFC Bank. While we are perennially positive on HDFC Bank, Private corporate banks too are available at comparatively inexpensive valuations and the street is not pricing in recovery in earnings or is too narrowly focusing on near term asset-quality issues. 
 
We also believe private sector banks are far better placed in capturing higher market share across both corporate and retail assets, as well as retail liabilities, especially in light of the heightened scrutiny of the SOE banks undertaken by the government/RBI. While the valuation gap has opened up between SOE Banks and Private sector banks, our inability to predict when it narrows is one key reason why we would stay away from owning SOE Banks, on average.
Market Check

 
S&P BSE Sensex 33,256.68 -0.18%
 
Nifty 50 10,213.75 -0.35%
 
S&P BSE 200 4,467.37 -0.27%
 
Nifty 500 8,994.30 -0.50%
 
S&P BSE Mid-Cap 16,081.00 -0.54%
 
S&P BSE Small-Cap 17,503.69 -0.84%

US protectionism: There are no winners in Donald Trump's trade war

A “trade war” triggered by the US could be a defining factor that retards growth across the globe. Donald Trump proposes to impose a 25 per cent customs tariff on steel imports and a 10 per cent tariff on aluminium. In retaliation, the European Union (EU), Canada, Brazil, China, etc, have threatened to impose customs duties on US exports. READ MORE
NEWS IMPACT Sugarcane price arrears to farmers at nearly Rs 140 billion
 
Sugar stocks lost ground in trade on Wednesday. According to news reports, sugar mills owed nearly Rs 140 billion to sugarcane farmers at the end of January in the ongoing marketing season, the government said on Tuesday. Sugar marketing year runs from October to September. READ MORE

COMPANY LATEST PREV CLOSE LOSS() LOSS(%) VOLUME
SIMBHAOLI SUGAR 13.00 13.88 -0.88 -6.34 294
THIRU AROOR. SU. 34.20 36.00 -1.80 -5.00 252
INDIAN SUCROSE 28.95 30.45 -1.50 -4.93 100
DHARANI SUGARS 19.25 20.20 -0.95 -4.70 304
TRIVEN.ENGG.IND. 51.90 54.25 -2.35 -4.33 22821
DWARIKESH SUGAR 30.35 31.65 -1.30 -4.11 79426

Volume Toppers in BSE 500 index

COMPANY NAME LATEST HIGH LOW CHG
()
CHG(%) VALUE
( CR)
VOLUME
IDBI BANK 84.15 84.40 80.15 1.65 2.00 8.57 1028914
SUZLON ENERGY 11.94 12.15 11.93 -0.29 -2.37 1.04 867301
REL. COMM. 26.50 26.60 26.00 0.15 0.57 2.11 801813
JP ASSOCIATES 15.95 16.00 15.75 -0.20 -1.24 1.22 771677
UNITECH 6.66 6.75 6.53 -0.07 -1.04 0.33 496810
PUNJAB NATL.BANK 96.15 96.55 95.05 -1.60 -1.64 4.67 486784

MUST READ: Rupee, rising yields driving foreign portfolio investors away
 
Foreign investors have slowly started liquidating some of their holdings in local debt paper, as rising bond yields and the rupee's weakening bias make their investment not lucrative enough at a time when the US economy shows early signs of recovery.
 
It is not that they are liquidating en masse; utilisation of their permitted limits show there is very little space left to invest. And, this is also a threat for local investors. In February, foreign portfolio investors (FPIs) sold $421 million in debt; in March so far, they have sold $133 mn. However, in January, they had bought $1.5 billion in debt. READ MORE
BSE Smallcap: Finolex Industries, Lumax, Teamlease among top gainers


BSE Midcap: Vakrangee up nearly 5%


Nifty IT: Only sectoral index trading in green


Nifty PSU Bank index extends fall, slips nearly 1%


Sectoral Trend


Sensex Heatmap


Markets at open

At 9:17 am, the S&P BSE Sensex was trading at 33,199, down 111 points while the broader Nifty50 index was ruling at 10,204, down 45 points
Stocks in News

Dilip Buildcon received LoA from NHAI for new Hybrid Annuity Project valued at Rs. 917 Cr. in the State of Jharkhand

Ashoka Buildcon’s subsidiary ACL has emerged as Lowest Bidder for 3 projects aggregating to Rs. 2,991cr

Sadbhav Infra declared L1 for highway project worth Rs 934 crore in Karnataka

TCS has extended its partnership with Virgin Atlantic Airlines for 5 years

Zee Entertainment will make partial redemption (20%) of listed bonus preference shares

JSW Steel - Upgraded bond rating from Ba3 to Ba2 by Moody's investor service

Airtel acquires the India leg of GBI's India-Middle East-Europe submarine cable

UltraTech Cement - Limit increased to 40% of capital for investment by RPFIs (FII)

Teamlease Services - RBI allows raising FPI limit in Teamlease services to 75 percent from 24 percent

AU Small Bank tied up with Aurionpro Solutions to enhance its digital banking offering corporate internet banking and cash anagement platform for SME, MSMEs and Corporate customers

Speciality Restaurants opened two new restaurants in Mumbai i.e. Sweet Bengal and Zoodles

Rural Electrification Corporation approved the sale of WR-NR Power Transmission Limited, wholly owned subsidiary of the company to Power Grid Corporation

Lumax Auto Technologies to consider stock split on Mar 23

Tata Motors - SEBI asks co to strengthen systems and controls; to conduct an inquiry into results’ leakage

Bal Pharma forms joint venture with Australia-based Akaal Pharma for developing veterinary products

Indian Hotels - Tata Sons to buy 6.64 percent stake in co from promoter entities

Axis Bank says exposure to Nirav Modi, Gitanjali Gems at about Rs 200 crore

(Source: Nirmal Bang)
 
NIFTY OPTIONS WATCH
 
Additions in OI were seen in 10400, 10300, 10200 strike Calls and at 10200, 10000 strike Puts indicating market is likely to remain under selling pressure in near term.
 
Highest OI build-up is seen at 10500 strike Calls and 10000 strike Puts, to the tune of 4.59mn and 3.71mn respectively.
 
FII AND VIX
 
FIIs were net buyers in Cash to the tune of Rs 620.1 crore. and were net buyers in Index Futures to the tune of Rs 510.64 crore.
 
India VIX increased by 5.52% to close at 16.24 touching an intraday high of 16.44.
 
(Source: Nirmal Bang report)
MARKET COMMENT: G. Chokkalingam, founder & managing director, Equinomics Research

We believe that the correction in the over-valued mid cap space is not yet over – minimum another Rs.4 lakh crore may be wiped out from the overall market due to further corrections in the over-valued small and mid-cap (SMC) stocks. Unfortunately some of the quality stocks under our coverage are also falling. Global economic cues remain relatively better and the domestic macroeconomic factors are also improving.

For three years in row we had a good time in the markets. Historically, this is a common phenomenon to see correction after such a long bull journey. We visualize two positive developments out of this meltdown and banking scams. The government and the regulator would go a long way in strengthening the banking system going forward. Gullible retail investors would realize the need to focus on value stocks instead of chasing the over-valued and perception driven SMC stocks, and also technology stocks which are engaged in trading of goods & services
Market Comment by Geojit Financial Services
 
Markets are expected to open flat tracking mixed cues from across Asia. Nifty broke below the range support of 10300 and made a new 2018 low of 10215.9 yesterday. 
 
Stocks to watch
 
Railway wagon manufacturers will be in focus as Ministry decides to give wagon contracts in bulk.
 
Dilip Buildcon: Gets letter of award for Jharkhand road project.
 
Tata Consultancy : Says Virgin Atlantic Airlines extends contract with company.
 
Torrent Pharma readies bid for Sanofi’s European unit Government likely to slash BT Cotton seed price
Markets at pre-open

     
Index Current Pt. Change % Change
 
S&P BSE SENSEX  33,273.97 -43.23 -0.13
 
S&P BSE SENSEX 50 10,721.87 +21.61 +0.20
 
S&P BSE SENSEX Next 50 33,042.29 +57.05 +0.17
 
S&P BSE 100 10,623.39 +20.67 +0.19
 
S&P BSE Bharat 22 Index 3,524.42 +17.51 +0.50

Trump economic adviser Cohn quits after dispute over tariffs:
 
Top White House economic adviser Gary Cohn, a Wall Street banker who opposes hefty steel and aluminum tariffs planned by US President Donald Trump, said on Tuesday that he was resigning.
 
“It has been an honor to serve my country and enact pro-growth economic policies to benefit the American people, in particular, the passage of historic tax reform. I am grateful to the President for giving me this opportunity and wish him and the Administration great success in the future,” Cohn said in a statement issued by the White House.
Chart Check (Image source: Geojit Research)


News Watch Sugarcane price arrears to farmers at nearly Rs 140 billion

Sugar stocks can be in focus today. According to news reports, sugar mills owed nearly Rs 140 billion to sugarcane farmers at the end of January in the ongoing marketing season, the government said on Tuesday. Sugar marketing year runs from October to September. READ MORE

Funds bought record Rs 1.3 trillion stocks so far this financial year

Equity fund managers, flush with strong domestic inflows, have invested a record Rs 1.3 trillion in stocks so far this financial year. The tally is more than double that in 2016-17. READ MORE
Today's picks: From Airtel to HUL, hot stocks to watch on Wednesday

Bharti Airtel
Current price: Rs 413
Target price: Rs 402
Keep a stop at Rs 416 and go short. Add to the position between Rs 404 and Rs 405. Book profits at Rs 402. 

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Rich get richer as booming stock markets swell ranks of the ultra-wealthy
 
Stronger global growth and booming stock markets have been great for the super rich. The number of people with more than $50 million of net assets rose 10 percent last year, the fastest pace in at least five years in 2017, according to a report published Wednesday by broker Knight Frank LLP. READ MORE
Top stocks to look out for

BUY BPCL
CMP: Rs 445.20
TARGET: Rs 490
STOP LOSS: Rs 430


The stock has given a decent correction from the peak of Rs 494 and has made a bottom formation pattern at around Rs 424 levels and currently has regained momentum to indicate strength and potential to cruise further in the coming days.
 
The indicators like RSI has been on the rise to confirm a positive bias while the MACD also has indicated a trend reversal to signal a buy. With good volume participation, we recommend a buy in this stock for an upside target of Rs 490 keeping a stop loss of Rs 430.

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Support for Nifty seen at 10,180, resistance at 10,300: Prabhudas Lilladher
 
Technically, now Nifty has broken the major support level of 10,280 in the daily chart and has opened the new support level of 10,100 which is also more or less where the significant moving average of 200 DMA lies. The pessimism has crept in with the Banking counters looking weak and we anticipate further selloff in the coming days. However, the support for the day is seen at 10,180 while the resistance is seen at 10,300.
Asian Markets

The MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.25 per cent, while  Japan’s Nikkei retreated 0.2 per cent. South Korea’s KOSPI bucked the trend and rose 0.3 per cent.
Markets on Tuesday

 
S&P BSE Sensex 33,317.20 -1.27%
 
Nifty 50 10,249.25 -1.06%
 
S&P BSE 200 4,479.46 -1.05%
 
Nifty 500 9,039.80 -1.05%
 
S&P BSE Mid-Cap 16,167.85 -0.84%
 
S&P BSE Small-Cap 17,652.32 -1.32%

Wall Street

The Dow Jones Industrial Average rose 9.36 points, or 0.04 per cent, to close at 24,884.12, the S&P 500 gained 7.18 points, or 0.26 per cent, to 2,728.12 and the Nasdaq Composite added 41.30 points, or 0.56 per cent, to 7,372.01.
SGX Nifty

The SGX Nifty was at 10,224.50, down 0.07% from the previous close.
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