Sensex ends 470 pts higher, Nifty settles at 10,131; PSU Bank index up 5%

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The domestic indices trimmed morning lossses to end sharply higher on Monday after reports suggested that the United States and China have quietly started negotiations to improve US access to Chinese markets, thereby easing fears of a trade war between the two economic giants.

The S&P BSE Sensex ended at 33,066, up 470 points while the broader Nifty50 index settled at 10,131, up 133 points.

Among sectoral indices, the Nifty PSU Bank index ended 4.94% higher led by an over 10% rise in the shares of Canara Bank.

In the week ahead, domestic investors will look forward to the fiscal deficit data to be released on Wednesday. Also, the expiry of the current month futures and options contracts are due on Wednesday and positions will be rolled over to next month.

In the global markets, Japan’s Nikkei erased earlier losses of 1.3 per cent to end 0.7 per cent higher, while MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4 per cent, flipping back to positive territory from a 0.5 per cent fall.

According to media reports, US Treasury Secretary Steven Mnuchin and US Trade Representative Robert Lighthizer listed steps that Washington wants China to take in a letter to Liu He, a newly appointed vice premier who oversees China’s economy.

Signs of talk between the two economic giants allayed fear of an escalating trade war, sparked after US President Donald Trump moved to slap tariffs on Chinese goods, on top of import duties on steel and aluminium, prompting a defiant response from Beijing.

(with Reuters inputs)

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Nifty PSU Bank index surges 4.94%. Top gainers:

COMPANY LATEST PREV CLOSE GAIN() GAIN(%) VOLUME
CANARA BANK 270.50 244.75 25.75 10.52 16712500
BANK OF BARODA 141.50 133.20 8.30 6.23 21473264
ST BK OF INDIA 246.50 234.80 11.70 4.98 30362239
UNION BANK (I) 91.10 86.85 4.25 4.89 13150328
BANK OF INDIA 102.05 97.45 4.60 4.72 13297579

Sectoral performers of the day


BSE Sensex top gainers and losers of the day


Market at close
 
The S&P BSE Sensex ended at 33,066, up 470 points while the broader Nifty50 index settled at 10,131, up 133 points.
Titan Company shares hit record high of Rs 950 per share

Shares of Titan Company have moved higher to their record high of Rs 950 per share, up 6% on the National Stock Exchange (NSE) after nearly 1% of total equity of the company changed hands in today’s trade so far.
 
The stock surpassed its previous high of Rs 938 recorded on January 9, 2018 in intra-day trade. READ MORE

Nifty PSU Bank index gains 4%; SBI, BOB, Canara Bank up over 3%
 
Shares of public sector banks were in focus with Nifty PSU Bank index gaining almost 4%.
 
State Bank of India (SBI), Canara Bank, Bank of Baroda, Syndicate Bank, Union Bank of India and Union Bank of India from Nifty PSU Bank index were up more than 3%, while Indian Bank, Punjab National Bank (PNB), Oriental Bank of Commerce and Andhra Bank up in the range of 1% to 3% on the National Stock Exchange (NSE). READ MORE
World stocks bounce back from 6 week low on report of US-China trade talks

World stocks came off six-week lows and US stock futures jumped on Monday on optimism that the United States and China are set to begin negotiations on trade, easing fears about a trade war between the world's two largest economies.
 
MSCI's world equity index, which tracks shares in 47 countries, turned positive on the day, having earlier hit its lowest level since February 9, after a Wall Street Journal report that Treasury Secretary Mnuchin was considering a visit to Beijing to begin negotiations.
 
India bonds lose their charm for foreign investors
 
After betting strongly on Indian bonds last year, foreign investors are cutting their holdings as a tumbling rupee erodes their returns and economic risks cloud the outlook of a once-hot emerging market play.
 
With only three trading sessions left in March, foreign investors have sold a net $1.12 billion in Indian debt, the strongest monthly outflow since December 2016, and are now on the verge of turning net sellers for the year so far.
Buzzing Stock
 
Adani Enterprises rose 2.46% to Rs 156.05 on BSE after the company said its subsidiary signed a coal mining agreement with NLC India.
 
On the BSE, 3.65 lakh shares were traded in the counter so far compared with average daily volumes of 9.35 lakh shares in the past two weeks
Bharat Financial gains after assignment transaction

Bharat Financial Inclusion rose 0.58% to Rs 1,080.95 on BSE after company said that it has completed direct assignment transaction of Rs 1391 crore. The announcement was made after market hours on Friday, 23 March 2018. READ MORE

Market Check

 
S&P BSE Sensex 32,932.82 1.03%
 
Nifty 50 10,062.00 0.64%
 
S&P BSE 200 4,408.43 0.83%
 
Nifty 500 8,851.50 0.58%
 
S&P BSE Mid-Cap 15,760.05 0.42%
 
S&P BSE Small-Cap 16,858.34 0.34%

Sebi plans new buyback rules, maximum limit likely to be capped at 25%

Markets regulator Sebi is considering to come out with new norms on share buyback programme, under which maximum limit for share repurchase will be 25 per cent of the company's paid-up capital and other reserves.
 
The company may buy back its shares and other securities from the existing security holders on a proportionate basis through the tender offer; open market via - book building process and stock exchange - and odd-lot holders, senior officials said. READ MORE

Oil prices fall as U.S. trade dispute with China looms

Brent and WTI crude oil futures dipped on Monday as concerns of a looming trade dispute between the United States and China weighed on global markets. In Asia, Shanghai crude oil futures debuted strongly in terms of volume as investors and commodity merchants bought into the world's newest financial oil trading instrument. READ MORE
From valuations to recos: All you need to know about Lemon Tree Hotel IPO

Lemon Tree Hotels, the last initial public offering of the financial year 2017-18 will open for subscription on March 26, 2018, and will stay open till March 28. The price band of the IPO has been kept at Rs 54-56 per share.
 
Equity shares are proposed to be listed on the BSE and the National Stock Exchage (NSE). The global coordinators and book running lead managers to the issue are Kotak Mahindra Capital Company, CLSA India and JP Morgan India. The book running lead manager is YES Securities (India) Limited. READ MORE

Jubilant FoodWorks shares hit record high; zoom 155% in 9-months

Shares of Jubilant FoodWorks hit a new high of Rs 2,351 per share, up 3% on the BSE in otherwise range-bound market. The stock surpassed its previous high of Rs 2,330 recorded on January 23, 2018 in intra-day trade.
 
In past three weeks, Jubilant FoodWorks has outperformed the market by surging 17% after the company formed a joint venture with Golden Harvest QSR Ltd to launch Domino’s Pizza in Bangladesh. On comparison, the S&P BSE Sensex was down 3.3% during the same period. READ MORE
Interview of the day Foreign investors will continue to sell Indian equities: Geoffrey Dennis

With the markets already correcting nearly 10 per cent from their peak levels seen in January 2018, Geoffrey Dennis, head of global emerging markets equity strategy at UBS, tells Puneet Wadhwa the company downgraded India from overweight to neutral earlier this year. The concern, he says, was very high valuations. READ MORE
Geoffrey Dennis, Head of global emerging markets equity strategy at UBS

Volume growth should hold up FMCG P/E multiples: Analysts at Credit Suisse

The BSE FMCG (fast moving consumer goods) index has outperformed the Sensex in six out of the last 10 financial years, including year-to-date performance in FY18.
 
The strong show of the consumer sector is on the back of multiple re-rating rather than earnings growth. Thus, while earnings growth for the top consumer stocks has been 13 per cent, their returns have been a sharper 24 per cent. READ MORE

Indian companies raise over Rs 580 bn via QIP during Apr-Jan: Sebi

Indian firms mobilised more than Rs 580 billion by issuing shares to institutional investors during April-January of the current fiscal, over 12-fold rise from the year-ago period.
 
In comparison, they had mopped-up Rs 46.64 billion in the corresponding period of 2016-17 fiscal. READ MORE

Markets at noon

 
S&P BSE Sensex 32,602.70 0.02%
 
Nifty 50 9,985.35 -0.13%
 
S&P BSE 200 4,369.84 -0.05%
 
Nifty 500 8,789.70 -0.13%
 
S&P BSE Mid-Cap 15,654.41 -0.25%
 
S&P BSE Small-Cap 16,718.56 -0.49%

Oil & gas shares under pressure
 
Shares of state-owned oil & gas companies including oil marketing companies (OMCs) were under pressure with the S&P BSE Oil & Gas index falling nearly 2% on the BSE.
 
GAIL India, Hindustan Petroleum Corporation (HPCL), Indraprastha Gas, Bharat Petroleum Corporation (BPCL), Oil India and Petronet LNG were down 2% to 5% on the BSE. READ MORE
TOP BSE500 GAINERS

COMPANY PRICE() CHG() CHG(%) VOLUME
MMTC 58.40 3.80 6.96 510449
CADILA HEALTH. 389.00 19.05 5.15 57134
JBF INDS. 98.30 3.35 3.53 20684
FUTURE LIFESTYLE 400.00 12.05 3.11 8591
BATA INDIA 728.35 20.40 2.88 25204

Wipro shares hit 8-month low, slip 4% in intra-day

Shares of Wipro hit an over eight month low of Rs 274 per share, down 4%, extending its 3% decline on the BSE in past two sessions. The stock of information technology (IT) company was trading at its lowest level since July 20, 2017.

In past three months, Wipro has underperformed the market by falling 10% as compared to 4% decline in the S&P BSE Sensex. READ MORE
Corrections and valuations: Scams, banking crisis may keep markets subdued

On March 11, I had speculated that the stock market could be due for a steep correction. Conditions for a big trend reversal are visible, including very high valuations, scams, banking crisis, and political uncertainty. READ MORE
LTCG tax and trade war: Markets head for worst 2-month drop since FY16

Indian equities are headed for the worst two-month drop since March 2016 amid escalating trade tensions globally and domestic concerns, such as political uncertainty, the banking fraud, and the rollout of the long-term capital gains (LTCG) tax. READ MORE
Negative returns on SIPs shouldn't worry retail investors in India

When Sonam Thakral, 25, a Noida-based human resource professional looked up the return from her systematic investment plan (SIP) in an equity fund, which she had started last year, she was dismayed to find that it had turned negative. Like Thakral, retail investors across the country, especially those who entered the markets in the past year through the SIP route, are a worried lot today as their statements turn red.
 
After all, fund managers have been touting this as the best way to invest in the stock markets for a long time. READ MORE

Cadila Healthcare gains 4% on USFDA nod for Metoprolol Succinate tablets

Cadila Healthcare was trading 4.4% higher at Rs 386 on the BSE in otherwise subdued market after the company said that Zydus Cadila has received final approval from the US regulator for Metoprolol Succinate extended-release tablets.

The drug is used to treat chest pain, heart failure and high blood pressure. Lowering high blood pressure helps prevent strokes, heart attacks and kidney problems. READ MORE
Market Check

 
S&P BSE Sensex 32,581.48 -0.05%
 
Nifty 50 9,992.55 -0.06%
 
S&P BSE 200 4,369.06 -0.07%
 
Nifty 500 8,804.70 0.04%
 
S&P BSE Mid-Cap 15,687.55 -0.04%
 
S&P BSE Small-Cap 16,794.71 -0.04%

Sebi board to vet National Stock Exchange colocation probe report

The Securities and Exchange Board of India (Sebi) has completed its investigation of 20 brokers in the National Stock Exchange (NSE) colocation (colo) controversy.
 
The regulator in August last year had ordered a joint forensic audit to probe the brokers, who had allegedly gained unfair access to trading data feed between December 2012 and May 2014. READ MORE

Volume Toppers

COMPANY PRICE() CHG() CHG(%) VOLUME
REL. COMM. 22.90 0.15 0.66 908168
GMR INFRA. 16.85 0.15 0.90 293233
INDBULL.REALEST. 196.35 4.90 2.56 249752
H D I L 39.95 0.30 0.76 244025
IDEA CELLULAR 77.65 0.00 0.00 112734

Sectoral Trend

Top Sensex gainers and losers


Markets at Open

At 9:15 am, the S&P BSE Sensex was trading at 32,536, down 60 points while the broader Nifty50 index was ruling at 9,989 down 8 points
Markets at pre-open

Index Current Pt. Change % Change
 
S&P BSE SENSEX 32,554.16 -42.38 -0.13
 
S&P BSE SENSEX 50 10,443.11 -14.14 -0.14
 
S&P BSE SENSEX Next 50 32,330.04 -34.64 -0.11
 
S&P BSE 100 10,354.76 -13.57 -0.13
 
S&P BSE Bharat 22 Index 3,392.26 -9.97 -0.29

(Source: BSE)
Street signs: FII buying conundrum, SBI slips in global ranking, and more

Market players have been puzzled by the daily buying and selling data of foreign institutional investors (FIIs). Despite stocks sliding, overseas investors have emerged as strong net buyers. On Friday, for instance, benchmark indices fell 1.2 per cent amid escalations of trade tensions between the US and China, yet FIIs were net buyers to the tune of over Rs 16 billion. Typically, FIIs are heavy sellers during such global risk-off events. "FIIs may be pulling out money from index heavyweight banking stocks and deploying them in non-index stocks that are now available at attractive valuations," said a broker when asked why markets are falling despite huge FII buying. READ MORE
Short-term outlook for the market remains negative: Devang Shah

Market extended correction further as expected & closed 4 th consecutive week in negative territory. It has achieved first range of short term targets levels near recent lows as expected last week . It made a low of 9951.90 levels on nifty & 32,483.84 levels on Sensex so far in this correction. It has broken psychological support of 10000 levels on nifty One should expect market to trend towards second short term targets levels as mentioned below till it reverses. READ MORE
Top trading ideas from Prabhudas Lilladher for today

BUY BHUSHAN STEEL
CMP : Rs 41.60
TARGET : Rs 49
STOP LOSS : Rs 36
 
The stock has witnessed a decent correction from the peak of 76 and has now bottomed out 37.50 levels to indicate a positive divergence with the RSI showing a trend reversal has signaled a buy. The chart looks attractive with a positive bias maintained and also with the MACD indicating a trend reversal has improved the sentiment. With good volume participation witnessed, we recommend a buy in this stock for an upside target of 49 keeping a stop loss of 36. READ MORE
 
Nifty outlook for the day
 
Nifty has its daily trend down since 6 days & weekly down since 8 weeks, also RSI on daily chart in Nifty is getting in an oversold zone with Nifty nearing it’s crucial support of 9,800-9,700 levels, whereby it can be quite likely Nifty nearly bottoming out for a bounce back. Support for the week is seen at 9,750 while resistance is seen at 10,220.
Markets on Friday

 
S&P BSE Sensex 32,596.54 -1.24%
 
Nifty 50 9,998.05 -1.15%
 
S&P BSE 200 4,372.03 -1.15%
 
Nifty 500 8,800.80 -1.16%
 
S&P BSE Mid-Cap 15,694.11 -1.36%
 
S&P BSE Small-Cap 16,801.18 -1.54%

SGX Nifty

the SGX Nifty was at 9,984, down 0.08% from the previous close.
Asian Shares

Fears of a full-blown trade war between the United States and China battered Asian shares again on Monday.

Japan's Nikkei stumbled 0.9 per cent to a near six-month trough in early trade, while MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.1 per cent for their fourth consecutive day in the red.
Wall Street

US shares were clobbered last week, with the Dow falling 1.8 per cent on Friday, the S&P 500 declining 2.1 per cent and the Nasdaq off 2.4 per cent.
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