MARKET WRAP: Sensex gains 71 pts, Nifty above 11,450; India VIX jumps 7%

Equity benchmark indices ended in the positive territory for the sixth straight session on Monday, amid sustained FII inflows and firm global cues. The S&P BSE Sensex added 71 points or 0.19 per cent to settle at 38,095, before hitting a high and low of 38,370 and 37,952, repectively in the intra-day trade. 

NSE's Nifty50 index ended above 11,400 level at 11,462 with 31 components in the green and 19 in the red. 

The broader market slipped into red with the S&P BSE MidCap index ending down 30 points, or 0.20 per cent at 15,141, while the S&P BSE SmallCap index shed 20 points or 0.13 per cent to settle at 14,818. 

Volatility barometer India VIX climbed over 7 per cent to 17 level. 

In the forex market, the rupee extended its gain to hit a high of 68.44 during the day, its highest level in the past seven months against the greenback. 


Shares of Bajaj Finance ended nearly 3 per cent higher at Rs 2,941 apiece on BSE. 

Maruti Suzuki India (MSIL) dipped 4 per cent to Rs 6,780 on the BSE in the intra-day trade on reports of production cut due to slower demand. The stock, eventually, closed at Rs 6,910 apiece on BSE, down nearly 2.6 per cent. 

Shares of Lupin slipped 6 per cent to Rs 741 on the BSE during the day after the drug maker's Somerset facility was classified as Official Action Indicated (OAI) by the US health regulator. It ended at Rs 754.50 apiece on BSE, down nearly 4 per cent. 


Shares of real estate companies rallied up to 18 per cent in the intra-day trade on Monday, after global investment firm Blackstone and Embassy Office Parks on Friday raised Rs 1,743 crore from anchor investors ahead of the India's first real estate investment trust (REIT) issue that opened today (March 18).

Nifty Bank ended at 29,596, up 0.73 per cent with 10 components advancing and 2 declining. 


Global stocks rose to their highest in five months and the dollar dipped as traders began to price in an accommodative stance from the US Federal Reserve at its policy meeting this week. MSCI’s All-Country World index, which tracks shares in 47 countries, was up 0.3 per cent on the day.

E-mini futures for the S&P 500 were higher by 0.06 per cent, indicating a positive open on Wall Street later in the day.

Oil prices were just off their highest for the year so far. US crude was last down over half a per cent at $58.2 a barrel, while Brent crude futures lost 0.4 per cent to $66.88. 

(with inputs from Reuters)


Market comment by Vinod Nair, Geojit Financial Services

Market failed to hold the opening momentum as profit booking emerged after the recent sharp rally. Liquidity situation in the market is improving and Indian rupee continued to gain strength over dollar while domestic 10-yr yield slid. Auto index dragged the most due to mixed demand and higher inventory levels. On the other hand, investors are awaiting FED policy later in the week to get more cues about global market movement.

Sectoral gainers and losers on NSE

Top gainers and losers on S&P BSE Sensex


The S&P BSE Sensex added 71 points or 0.19 per cent to settle at 38,095 while the NSE's Nifty50 index ended at 11,462, up 35 points or 0.31 per cent. 


NCLAT grants conditional nod to ArcelorMittal's Rs 42,000 cr bid for Essar Steel, directs ArcelorMittal to deposit the amount with the Committee of Creditors (CoC)

Rupee at over seven-month high of 68.65; further gains likely

Investors are bullish on the Indian rupee for the first time in nearly a year, a Reuters poll showed last week, as a recent surge in popularity of the country's ruling party is expected to bode well for its alliance in the upcoming national elections. READ MORE

Top losers on BSE500

REL. COMM. 4.02 -0.39 -8.84 8809691
GAYATRI PROJECTS 151.40 -9.30 -5.79 8928
MANPASAND BEVER. 111.90 -6.65 -5.61 68758
STERLITE TECH. 218.70 -12.55 -5.43 736679
INDIABULLS INTEG 306.45 -16.10 -4.99 9538
» More on Top Losers

Anand Rathi on Star Cement

Its strong, ~22%, market share in its key, high-realisation, north-east region, along withgood demand, would continue to drive Star Cement’s performance, though profitability has suffered due tohigher costs. However, cost-rationalisation measures, receiving subsidies, the de-bottlenecking exercise and coming expansions on the increase in infrastructure spending in the north-east would add to benefits for the company. We are upbeat about its prospects and retain our Buy rating on the stock, with a target of Rs 130.

Godfrey Phillips India gains over 4%

Hedgers line up to gain from crash in forwards after RBI's swap facility

Importers and foreign currency loan borrowers have increased their hedging, taking advantage of the crash in forward premium after the Reserve Bank of India (RBI) offered $5-billion swap facility with banks, according to currency dealers. The one-year forward premium for dollar-rupee was 4.11 per cent a month back, and 4.05 per cent a week back, but is now at 3.57 per cent. READ MORE

Heatmap: S&P BSE Sensex

Reliance Securities bets on Persistent Systems

We believe Persistent’s long-term business direction remains on track, with focus on three key verticals - Healthcare, BFSI and MFG through 4 major services including Data, Artificial Intelligence (AI) & Machine Learning (ML), Cloud, Security and Internet of Things (IoT). We are enthused with renewed focus on specific growth areas and verticals, and upcoming appointment of new MD, which could be a key stock driver.  We have a BUY recommendation on the stock with a Target Price of Rs 745.

Reliance Securities on Gail

The stock trades at 6.0x on FY20E EBITDA, which is discount to its long term average of 8.4x (over last 5 years).We arrived at an SOTP-based Target Price of Rs388. We valued GAIL’s segments using DCF, implied EV/EBITDA multiple to its gas transmission/LPG transmission/gas trading/Petrochemical/LPG & OLHC segments at 6.1x/5.9x/4.7x/7.5x/6.9x.  We expect GAIL to witness a strong FCF generation of Rs80bn over FY19-FY21. Hence, the stock offers high earnings visibility and healthy RoE/RoCE of 13%/9% over the next 3 years.

Nirmal bang on TCS

After meeting the management, we have revised upwards our revenue estimates for FY20/FY21, but would like to highlight the no-growth-year-for-industry-in-FY21 call. We retain our Sell rating on TCS with a March 2020 target price of Rs1,607 (at a target P/E of 16.5x March 2020E EPS, -1SD over the mean P/E multiple for the past five years).

This target P/E multiple (highest in our coverage universe) is reflective of the strong position that TCS holds in the Indian IT service landscape by way of: (1) Its breadth in terms of service lines, geographies and verticals. (2) Ability to stitch together integrated offerings. (3) Significant lead in automation skills which will stand it in good stead in a likely slowdown that we are expecting in 2020. While it is an ‘absolute’ Sell, on a relative basis we prefer TCS (along with HCL Technologies and Infosys) within our coverage universe over the next 24 months as we believe it will be a beneficiary of vendor consolidation.

Phillip Capital on Lupin

Factoring the warning letter in its Goa and Pithampur Units coupled with ongoing intense generic competition in the US market, we estimates muted growth of 3%/8%/9% in LPC’s US sales/consolidated sales/profit over FY18-21E. Our estimates could be at risk given the OAI for two more plants (Somerset and Mandideeep unit-1). We believe gRanexa and Levothyroxine to provide the most needed support to its US generics business temporarily but there are no great visible product opportunities in the near future. 

Given the moderated visible growth in US and regulatory as well profitability challenge, we maintain our concerns over its earnings growth. In addition to growth concerns, rising material costs, increasing R&D spend, building up of specialty sales force, and weak revenue mix will certainly hurt operating efficiency.

MUST READ :: Embassy Office Parks REIT IPO opens today: Should you invest?

Bengaluru-based Embassy Property Developments Pvt Ltd, plans to raise Rs 4,750 crore from initial public offering (IPO) that opens today (March 18). The price band for the Embassy Office Parks REIT IPO is Rs 299-300 apiece.
The interest range for the issue could also widen to 9.5 – 9.75 per cent as the final pricing is yet to be fixed, reports suggest. On Friday, Embassy Office Parks Reit allotted units worth Rs 1,743 crore to anchor investors. The trust’s portfolio comprises about 33 million square feet of office space across four Indian cities, Bengaluru, Pune, Mumbai and Noida. READ MORE HERE

Jefferies maintains BUY rating on L&T

Since January 2019, there have been media reports of a possible MindTree takeover by L&T InfoTech. However, according to recent media reports, L&T has been speculated to be the acquirer. We will be surprised if L&T is the entity involved vs L&T InfoTech, as it is not core for L&T operations. From a consolidated B/S and P&L perspective impact, it is negligible for L&T. It might lead to near-term pressure until core fundamentals become the focus again.

Franklin India Credit Risk Fund: Ahead of peers on the returns front

Launched in December 2011 as Franklin India Corporate Bond Opportunities Fund, the scheme was renamed Franklin India Credit Risk Fund in June 2018 and repositioned as a credit risk fund after the reclassification and rationalisation of mutual fund schemes by the Securities and Exchange Board of India (Sebi). READ MORE

Sectoral trends on NSE

Stocks that hit 52-week high on BSE500

AXIS BANK 744.05 753.90 8.35 1.13
GODFREY PHILLIPS 1118.00 1122.05 38.35 3.55
HDFC BANK 2258.00 2290.90 6.50 0.29
ICICI BANK 396.00 399.80 0.30 0.08
IDFC FIRST BANK 52.25 52.85 0.15 0.29
» More on 52 Week High

Reliance Communications is trading 8% lower

Bharti Infratel trades firm after block deals

Shares of Bharti Infratel were trading firm, up 1 per cent, at Rs 318 in intra-day trade on the BSE after nearly one per cent of the total equity of the company changed hands via block deals. READ MORE

NIIF yet to take a call on investment in cash-strapped Jet Airways

While lenders to Jet Airways are looking for a faster resolution to the crisis, the National Investment and Infrastructure Fund (NIIF) is yet to decide if it will invest in the distressed carrier. Sources said the board of the sovereign fund held two meetings over investment but did not approve any plan. “The board meetings were inconclusive. READ MORE

Telecom's weak performance

REL. COMM. 4.07 -0.34 -7.71 6211434
VODAFONE IDEA 32.85 -1.00 -2.95 1090189
BHARTI AIRTEL 335.25 -1.75 -0.52 98238
TATA COMM 605.40 -3.20 -0.53 11664
TEJAS NETWORKS 174.95 -2.70 -1.52 1080
» More

SPML Infra gains over 16% on bagging orders worth over Rs 883 cr

PVR hits new high of Rs 1,686; stock up 17% in one month

Shares of multiplex chain PVR hit a new high of Rs 1,686, up 3 per cent, on the BSE on the expectation of healthy earnings growth in the March quarter. The stock has outperformed the market by gaining 17 per cent in the past one month, as compared to a 7 per cent rise in the S&P BSE Sensex. READ MORE

Market check

SBI, Bank of Baroda, PNB: Here's how you can make money in PSU bank stocks

The benchmark indices witnessed a sharp rally, rising over 3 per cent in the last week. The S&P BSE Sensex rose 1353 points, or 3.65 per cent, to close at 38,024, hile the Nifty50 rose 391 points, or 3.54 per cent, to end at 11,246. READ MORE

MSTC extends IPO till March 20, price range revised to Rs 120-128 per share

State-run e-commerce firm MSTC Ltd revised the lower end of its price band for the initial public offering (IPO), and extended the subscription till March 20. READ MORE

FII inflow data

JM Financial on industrial sector

Our aggregate analysis of 41 industrial companies highlights that sales growth in 3QFY19 has sustained at the 5%+ level for 11 quarters, led by healthy order book, higher capacity utilisation rates across industries and robust exports. 3QFY19 sales have grew by 12.4% YoY, while TTM rolling growth stood at 13.2%. However, we foresee sales growth moderating over subsequent quarters, led by slower growth in consumer facing industries (automotive, durables), weakening inflows due to a cut in government’s budgeted capex (driving a lion’s share of orders in past 18 quarters) and continued resistance by lenders to fund SME projects. Our top picks are Bharat Electronics, SKF India and Kirloskar Oil Engines.

Rupee at day's high

Rupee gains further, trades at 68.63 against US dollar

Market valuations at current level are not cheap, says Emkay Global MD

The markets have gained ground last week despite the election-related uncertainty. Krishna Kumar Karwa managing director, Emkay Global Financial Services, tells Puneet Wadhwa that a pick-up in the earnings momentum will ensure that anyone investing in the markets from a two-three year perspective will not be disappointed. READ MORE

MUST READ | Should you invest in REITs? Here're the pros and cons

The initial public offer (IPO) of Embassy Office Parks Reit, backed by private equity giant Blackstone Group LP and Bengaluru-based developer Embassy Property Developments, opens for subscription on Monday. This is the country’s first real estate investment trust (Reit) listing, with plans to raise Rs 4,750 crore. About 158.6 million units will be available for subscription at a price of Rs 299-300 per unit. The Reit portfolio consists of 33 million sq ft of office space. READ MORE

Stocks that hit 52-week high on NSE

ALOKTEXT Alok Industries Limited 5.80 5.55 15-Mar-2019 5.80 5.55 0.25 4.50
ARVINDFASN Arvind Fashions Limited 831.35 791.80 15-Mar-2019 831.35 791.80 39.55 4.99
AXISBANK Axis Bank Limited 753.85 751.00 13-Mar-2019 745.90 735.10 10.80 1.47
BANKBEES Reliance ETF Bank BeES 3,051.30 3,002.30 15-Mar-2019 2,993.00 2991.46 1.54 0.05
BILENERGY Bil Energy Systems Limited 2.40 2.30 15-Mar-2019 2.40 2.30 0.10 4.35

(Click here to view full list)

Top gainers and losers on S&P BSE Sensex

DHFL gains 3.4% on Avanse Financial Services stake sale

Vodafone Idea is trading 2.50% lower

Kotak Securities on Telecom

Latest versions of the various network performance tests we track suggest improvement in Bharti’s average speeds, consistent speeds for R-Jio and deterioration for Vodafone Idea. We believe network experience will overtake pricing as the primary driver of incremental LTE subs and usage share and to that extent, we are impressed with the consistent, slow as it may be, improvement for Bharti. VIL’s spectrum consolidation is yet to reflect in improved network performance, even in some of their focus markets.

Maruti Suzuki falls 4% on reports of production cut due to lower demand

Shares of Maruti Suzuki India (MSIL) dipped 4 per cent to Rs 6,780 on the BSE in early morning trade in an otherwise strong market, on reports of production cut due to slower demand. READ MORE

Nifty Auto index down over 1%

Motilal Oswal Financial Services on HUL

We expect its high multiples to sustain 
(a) on combination of continued healthy volume growth v/s peers, 
(b) on better earnings growth v/s its own past earnings, 
(c) because of the company’s bestin-breed return ratios, 
and (d) due to synergies from the GSKCH acquisition from FY21 (we are not building in benefit from the acquisition yet in our numbers). 
We maintain BUY rating on the stock with a target price of INR2,125, target multiple of 52x FY2021 EPS (which is ~15% premium to 3-year average due to significantly improving business fundamentals). 

Momentum Picks by ICICI Securities

Mindtree surges over 2% on share buyback plan announcement

Shares of Mindtree surged as much as 2.38 per cent to Rs 968.55 in the early trade on Monday after the company announced it will consider share buyback plan on March 20 to fend off attempts by engineering major Larsen & Toubro (L&T) from making a hostile takeover bid. READ MORE

Market check

Lupin slips 6% after USFDA classifies Somerset facility as OAI

Shares of Lupin slipped 6 per cent to Rs 741 on the BSE in early morning trade in an otherwise strong market after the drug maker's Somerset facility was classified as Official Action Indicated (OAI) by the US health regulator. It was trading close to its 52-week low price of Rs 724 on May 15, 2018 in intra-day deal. READ MORE

Maruti Suzuki India trading over 3.3% lower over report of production cut

Embassy Office Parks REIT IPO: Should you invest?

Bengaluru-based Embassy Property Developments Pvt Ltd, plans to raise Rs 4,750 crore from initial public offering (IPO) that opens today (March 18). The price band for the Embassy Office Parks REIT IPO is Rs 299-300 apiece. READ MORE

Lupin down over 4% after USFDA classifies Somerset facility as 'Official Action Indicated'

Most active stocks by volume (BSE500)

BHARTI INFRA. 317.55 3.85 1.23 160028357
SUZLON ENERGY 7.17 0.37 5.44 1232196
REL. COMM. 4.22 -0.19 -4.31 961801
RELIANCE POWER 11.19 0.41 3.80 588920
NBCC 67.35 1.95 2.98 389688
» More on Most Active Volume

Grasim Industries slips over 2% after hefty tax demand notice by I-T department

Rupee extends rally, surges 18 paise to gain past 69 mark in early trade

Continuing its upward journery, the rupee gained past 69 level against the US dollar for the first time since August 10, 2018 in the early trade on Monday. The domestic unit opened at 68.91, up 18 paise against Friday's close of 69.09. READ MORE

Mindtree gains 1.41%

Nifty Private Bank index is trading over 1.2% higher

Nifty Bank index is trading over 1% higher led by gains in Kotak Bank and Axis Bank

Sectoral gainers and losers on NSE

Top gainers and losers on S&P BSE Sensex


At 09:20 am, the S&P BSE Sensex was trading 237 points or 0.62 per cent higher at 38,262 while NSE's Nifty50 index reclaimed the crucial 11,500 level to 11,511, up 84 points or 0.74 per cent. 

Market at pre-open

Rupee check

Rupee opens at 68.91/$ vs its previous close of 69.09 against the US dollar, gains past 69 against the USD for first time since August 10, 2018

Mindtree, Grasim Industries and DHFL among top stocks to track today

Jet Airways: The airline has suspended services to Abu Dhabi and slashed the number of flights to Dubai till March-end. According to a notice from Etihad Airport Services, the airline has cancelled all its flights from Monday for operational reasons. It has also stopped Delhi-Dubai flights. READ MORE

Nifty can hit 11,400, but be selective while investing: Angel Broking

The last week started with a bang on Monday as we saw a gap up opening, which was then followed by a massive intraday rally; setting the tone for the rest of the week. Following days did not disappoint at all, in fact there was strong optimism seen throughout to post massive intra-week rally. With this, Nifty managed to clock biggest weekly gains in last four months. READ MORE

Angel Broking stock tips

Karnataka Bank
View: Bullish
Last Close: Rs 127.75
Why buy: The banking has been the flavor in this ongoing rally and before large cap showing their dominance, the entire midcap private baking space started buzzing. Within this pocket, ‘Karnataka Bank’ has always been our preferred pick along with ‘RBL Bank’ and ‘DCB’. In the week gone by, we saw a massive bump up in this counter and thereby confirmed a breakout from multi-month highs. READ MORE

Commodity Picks

Soy bean prices at the benchmark Indore markets are trading at Rs 3,746 per quintal. READ MORE

Short-term outlook for market remains positive: Devang Shah

CLOSE – Rs 815
TARGET – Rs 865/895
Raymond closed weekly in positive territory. It consolidated in thin range during the week. Its daily momentum indicators are in BUY. Risk Reward is favorable to BUY at current levels. One can buy with a stop loss of Rs 765 for the target of 865/895 levels in short term. READ MORE

Nifty outlook and top trading ideas by Prabhudas Lilladher

With market being in overbought zone, it is advisable to book profit and see the next move of the market. Support for the week is seen at 37,370 and 11,220 for Sensex and Nifty, respectively, while resistance is seen at 38,560 and 11,600. READ MORE

Bulk deal on NSE as on Friday

15-Mar-2019 AARTIIND Aarti Industries Ltd. THE VANGUARD GROUP INC A/C VANGUARD EMERG. MKTS STOCK INDE BUY 4,16,418 1425.32 -
15-Mar-2019 AKG AKG Exim Limited ANIL HANDA BUY 1,60,000 31.65 -
15-Mar-2019 AKG AKG Exim Limited PIYUSH CHANDRAKANT RATHI SELL 2,44,000 31.63 -
15-Mar-2019 AKG AKG Exim Limited SATYAM COMEX PRIVATE LIMITED BUY 84,000 31.60 -
15-Mar-2019 CARERATING CARE Ratings Ltd RELIANCE MUTUAL FUND SELL 5,19,000 999.00 -
15-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. BHARTI SBM HOLDINGS PRIVATE LIMITED BUY 75,54,895 44.00 -
15-Mar-2019 CGPOWER CG Power & Ind. Sol. Ltd. BHARTI SBM HOLDINGS PRIVATE LIMITED SELL 2,00,000 44.75 -

For the full list, click here

Oil check

Oil prices dipped on Monday amid concerns that an economic downturn may dent fuel consumption, but crude markets remain broadly supported by supply cuts led by producer group OPEC and US sanctions against Iran and Venezuela. 
Brent crude oil futures were at $67.03 per barrel, down 13 cents, or 0.2 per cent, from their last close, but not far off the $68.14 per barrel 2019-high reached last week. US West Texas Intermediate (WTI) futures were at $58.32 per barrel, down 20 cents, or 0.3 per cent, from their last settlement, and also not far off their 2019-high of $58.95 from the previous week.

SGX Nifty

At 8:20 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,508, up 34 points, indicating a positive start for the domestic market

Asian Markets check

Asian share markets crept ahead on Monday while bonds were in demand globally on speculation the US Federal Reserve will sound decidedly dovish at its policy meeting this week. Japan’s Nikkei led the way with a rise of 0.7 per cent, and MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.1 per cent.

Wall Street check

US stocks rose on Friday, led by technology companies, as a report on progress in U.S.-China trade talks lifted sentiment, pushing the S&P 500 to its best week since November. The Dow Jones Industrial Average rose 138.93 points, or 0.54 per cent, to 25,848.87, the S&P 500 gained 14 points, or 0.50 per cent, to 2,822.48 and the Nasdaq Composite added 57.62 points, or 0.76 per cent, to 7,688.53.
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