MARKET WRAP: Sensex closes above 39,000, Nifty ends at 11,713; autos gain

Representative image
The domestic equity market ended in the positive territory on Tuesday amid buying in select blue-chip counters such as Tata Motors, Bharti Airtel, TCS and Bajaj Finance. 

The S&P BSE Sensex closed above the crucial 39,000-mark for the first time at 39,057, up 185 points or 0.48 per cent. 

The NSE's Nifty50 index closed at 11,713, up 44 points or 0.38 per cent, with 23 constituents advancing and 27 declining. 

The broader market, however, underperformed the benchmark indices as the S&P BSE MidCap index fell 6 points or 0.04 per cent to end at 15,554 while the S&P BSE SmallCap dropped 28 points or 0.18 per cent to close at 15,117.

Sectorally, realty stocks advanced the most, followed by PSU banks and auto. The Nifty Realty index settled at 273, up 6 points or 2.32 per cent. 

BUZZING STOCKS

 
Shares of Tata Motors jumped over 8 per cent to Rs 203, gaining over 17 per cent in the past two trading days on the BSE, after the company’s wholly-owned subsidiary Jaguar Land Rover (JLR) said it expects better financial results for the quarter ended March 2019 (Q4FY19).

Shares of power companies such as Adani Power, Tata Power, NTPC and Power Grid surged during the day after the Supreme Court quashed the Reserve Bank of India’s February 12 circular via which the banking sector regulator had asked banks to take defaulting power, sugar, shipping and other sector companies to insolvency

On the contrary, midcap IT company Cyient slipped over 12 per cent to Rs 571.30 on the BSE during the session on concerns over a drop in revenue during March quarter (Q4FY19) due to delay in an order worth around $5 million. The stock, eventually, closed at Rs 579.40 apiece, down 11 per cent on BSE.

GLOBAL CUES

Asian markets continued to rally on the back of the positive US and Chinese manufacturing data.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.2 percent. The broader NSE Nifty was up 0.19 percent at 11,691.55 as of 0623 GMT, while the benchmark BSE Sensex was 0.25 percent higher at 38,968.97.


3:42 PM IST

3:41 PM IST

3:39 PM IST The S&P BSE Sensex gained 185 points or 0.48 per cent to settle at 39,057, while the NSE's Nifty50 index ended above 11,700 level at 11,713, up 44 points or 0.38 per cent. 

3:11 PM IST Those expectations for another rate cut have strengthened over the past month after Shaktikanta Das was appointed as the new RBI Governor in December. Lending rates were lowered and the policy stance shifted at his first meeting in February. READ MORE

2:41 PM IST

2:30 PM IST

2:22 PM IST “The current SC ruling quashing the Feb’12 RBI circular on NPAs may have its own merit. However, with respect to an escalation of default cases, this ruling will raise significant questions around the timely reporting and resolution under IBC - the primary reason behind IBC’s enactment. There are a host of wilful default and fraud cases still under the IBC, and more clarity would be required on how the same would be dealt with by Resolution Professionals/ Committee of Creditors," says Vikram Babbar, Partner and Financial Services Lead, Forensic & Integrity Services, EY.

2:20 PM IST

2:11 PM IST

2:00 PM IST Infosys shares were trading higher for the fifth straight day, up 1.3 per cent, at Rs 765 on Tuesday in intra-day trade, gaining 5 per cent in one week on the BSE. In comparison, the benchmark S&P BSE Sensex was up 2 per cent during the week. READ MORE

LIVE UPDATES

Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


MARKET AT CLOSE

The S&P BSE Sensex gained 185 points or 0.48 per cent to settle at 39,057, while the NSE's Nifty50 index ended above 11,700 level at 11,713, up 44 points or 0.38 per cent. 

RBI to cut rates again before polls; BJP win best for economy: Reuters poll

Those expectations for another rate cut have strengthened over the past month after Shaktikanta Das was appointed as the new RBI Governor in December. Lending rates were lowered and the policy stance shifted at his first meeting in February. READ MORE

Nifty Pharma index is trading 0.86% lower


Market check


Expert comment on SC's verdict on RBI's Feb 12 circular

“The current SC ruling quashing the Feb’12 RBI circular on NPAs may have its own merit. However, with respect to an escalation of default cases, this ruling will raise significant questions around the timely reporting and resolution under IBC - the primary reason behind IBC’s enactment. There are a host of wilful default and fraud cases still under the IBC, and more clarity would be required on how the same would be dealt with by Resolution Professionals/ Committee of Creditors," says Vikram Babbar, Partner and Financial Services Lead, Forensic & Integrity Services, EY.

Bharti Airtel surges 5%


Sectoral trends on NSE


Infosys nears record high; stock up 5% in one week

Infosys shares were trading higher for the fifth straight day, up 1.3 per cent, at Rs 765 on Tuesday in intra-day trade, gaining 5 per cent in one week on the BSE. In comparison, the benchmark S&P BSE Sensex was up 2 per cent during the week. READ MORE



Heatmap: S&P BSE Sensex


Stocks that hit 52-week high on BSE500

COMPANY PRICE(rs) 52 WK HIGH CHG(rs) CHG(%)
ASIAN PAINTS 1509.30 1512.00 18.85 1.26
BAJAJ FINSERV 7226.25 7236.60 85.50 1.20
INDIAN HOTELS 158.50 159.00 4.05 2.62
KARNATAKA BANK 135.15 138.95 0.10 0.07
MERCK 3800.65 3829.95 40.80 1.09
» More on 52 Week High

Metropolis Healthcare IPO to open tomorrow; should you subscribe?

The country’s second largest diagnostics player by profits, Metropolis, will become the third player to be listed post its IPO after Thyrocare and Dr Lal Pathlabs. The company is seeking to expand its presence in a large under-penetrated market which is dominated by smaller, unorganised players. READ MORE


MARKET CHECK: Top gainers on BSE

GODREJPROP 884.85 +71.55 +8.80
 
TATASTEELPP 76.00 +5.45 +7.73
 
LAKSHVILAS 82.80 +5.25 +6.77
 
TATAMOTORS 197.85 +10.70 +5.72
 
TATAMTRDVR 97.30 +4.85 +5.25

Bharti Airtel rises for fourth straight day; gains 10% in 4 sessions

On February 28, Bharti Airtel’s board had approved a Rs 32,000 crore fundraising plan, which includes a rights issue of Rs 25,000 crore and perpetual bonds with equity credit of Rs 7,000 crore (foreign denominated). READ MORE

HDFC Securities on United Spirits

For 9M FY19, Finance costs have further reduced 25% to Rs 153 crore. This directly adds to company’s bottom line, which would boost earnings for USL. For H1 FY19, company reduced ~Rs 650 cr debt and we estimate total debt to get reduced to ~ Rs 1000 cr or net D/E of ~0.2x in FY21. We recommend buy on the stock at cmp of Rs 549 and add on dips to Rs 513 with TP of Rs 619 over the 4 quarters. Our target price is based on a P/E multiple of ~40x FY21E earnings and ~25x EV/EBITDA.

Kotak Securities on Auto sector

Retail demand in auto industry continues to remain under pressure as OEMs corrected dealer inventory levels in March 2019, which led to weakness in volumes across segments. PV industry likely to post single-digit volume decline on yoy basis in March 2019 while two-wheeler industry volumes declined yoy led by Hero Motocorp and Royal Enfield. MHCV volume growth also remained under pressure indicating spillover of the liquidity crisis.

Follow these rules while trading in stocks nearing their lifetime high

The recent robust rally has sent an ‘optimistic message’ to the entire trading community. The recent run has seen a number of large-and mid-cap stocks like Reliance Industries, Axis Bank, HCL Technologies and Bata India hit their respective all-time highs. Though it is difficult to predict which way the markets will turn, there are few rules everyone must follow in for stocks trading in the high-risk, high-reward zone. READ MORE

Premium valuation of Indian markets is a concern: Vinay Paharia, Union AMC

The domestic equity market is trading at a premium to its current fair value. However, even if this premium shrinks materially, returns from equities over the medium term may be modest, due to the growth in fair values, says Vinay Paharia, chief investment officer (CIO) of Union AMC in interaction with Swati Verma. READ MORE



Tata Motors rises over 4.6%


Top 8 most common mutual fund investing mistakes and how to avoid them

Mutual funds, especially equity mutual funds, have played a pivotal role in helping retail investors create wealth over the last 25 years since they actually became a distinct asset class in India. Of course, mutual funds are not just about equity funds. There are debt funds, liquid funds, arbitrage funds, and balanced funds. But what is more important for you is to understand and avoid the mutual fund investing mistakes that new investors tend to make. READ MORE

Market check


Bharti Airtel surges 3%


BofAML on RBI MPC expectation

We continue to expect the RBI MPC to cut policy rates by 25bp each on April 4 and June/August on a benign inflation outlook. After all, the real policy rate, at 3.65%, is almost double of the RBI's 1.25-1.75% desired level.

Power Grid rises 2.3%


Sakthi Sugars up over 2.5%


Power stocks surge as SC quashes RBI's Feb 12 circular; Adani Power up 2%

Shares of power and sugar companies surged in the morning trade on Tuesday after the Supreme Court quashed the Reserve Bank of India’s February 12 circular via which the banking sector regulator had asked banks to take defaulting power, sugar, shipping and other sector companies to insolvency. READ MORE

Power stocks gain after SC quashes RBI's Feb 12 circular

COMPANY NAME LATEST CHG(%)
RELIANCE POWER 11.04 0.45
RATTANINDIA POW. 2.93 8.12
ADANI POWER 50.15 3.30
RELIANCE INFRA. 143.10 3.92
TATA POWER CO. 75.45 1.68
KSK ENERGY VEN. 0.91 4.60
JP POWER VEN. 1.93 3.76
NTPC 136.40 1.04

KSK Energy up almost 6%


Bharat Road Network surges 20% after arm wins arbitration against NHAI

Bharat Road Network shares soared 20 per cent to hit the upper circuit of Rs 115.20 on the BSE after the company said its arm has won an arbitration award of Rs 322.77 crore against the National Highways Authority of India (NHAI) for a project in Odisha. READ MORE



Relief to power companies: SC sets aside RBI circular on stressed assets

In a big relief to power, sugar, shipping and other companies, the Supreme Court on Tuesday set aside the Reserve Bank of India’s February 12 circular via which the banking sector regulator had asked banks to take defaulting power, sugar, shipping and other sector companies to insolvency. A detailed copy of the judgement is awaited. READ MORE



Adani Power rises 3%


RattanIndia Power surges 6.6% after SC declares RBI's Feb 12 circular 'unconstitutional'


TREND WATCH :: Nikkei India Manufacturing PMI


ALERT :: Nikkei India Manufacturing PMI

Registering 52.6 in March, the Nikkei India Manufacturing Purchasing Managers’ Index (PMI) continued to signal improving operating conditions in the sector. However, falling from 54.3 in February to a six-month low, the latest figure highlighted a loss of growth momentum. Consumer goods was the brightest spot in March, followed by the intermediate and then investment goods categories.
 
Despite being solid, the increase in new orders was the slowest in six months. On the one hand, firms indicated that strong underlying demand, successful advertising and the receipt of bulk orders underpinned sales growth. On the other hand, competitive conditions and the upcoming elections reportedly curbed the upturn

Manufacturing

Market check


TOP PICKS :: Emkay Global

High Conviction Ideas
 
■    Large Caps (OW) - ACC, Bajaj Finance, HCL Tech, ICICI Bank, Mahindra & Mahindra, Marico, Reliance Industries, SBI Life, Tata Steel, and United Breweries
 
■    Large Caps (UW) - Ashok Leyland, Bharti Airtel, Eicher Motors, ITC, and United Spirits
 
■    Small & Mid-Cap (Buys) - APL Apollo, Cholamandalam Finance, City Union Bank, Exide Industries, Granules India, Mphasis, Radico Khaitan, Sterlite Technologies, Sunteck Realty, and Varun Beverages

MARKET COMMENT :: Emkay Global

The sudden and swift inversion of the US yield curve and the relapse of negative yields on German bonds sustained a positive outlook on global liquidity. There exists deepening speculation in the bond market of an imminent recession in the US economy, ironically buoyed by the sentiment in the equities markets, including in India.

India benchmark indices, the NIFTY and the Sensex, gained nearly 5% during Mar'19 on the back of significant purchases by FIIs, especially through the ETF route. Domestic funds were sellers, tracking a decline in monthly flows to <Rs 50bn in Feb'19. The outperformance came from Banking, which responded to INR appreciation, softening in G-sec yields, and the RBI rate cut. Other outperforming sectors included Metals, FMCG, Pharmaceuticals, and Cement

SECTOR WATCH :: Jefferies on Retail

Post the e-com rules, competition from online retailers remains soft for the second consecutive month especially in the apparel segment; though we saw some pick up towards the end of the month. Amidst talks of a slowdown, we do not envisage a significant impact on growth for retailers as share gains from unbranded/ unorganised players will continue to support growth. Impact if any, is expected to be temporary. ADITYA BIRLA FASHIONS and TRENT are top picks in the space

Monetary Policy preview :: Edelweiss Research

In its forthcoming policy review on April 4, 2019, we expect the RBI to cut policy rates by 25bps and see a good chance of the policy stance shifting to accommodative/dovish (neutral currently). Since the previous monetary policy meeting, domestic growth momentum has slowed (reflected in high frequency data such as car sales, IIP, etc.) and inflation has remained benign. Further, global growth momentum has also lost substantial momentum and all major global central banks, including the US Fed, have turned decisively dovish in recent months. Thus, a rate cut by the RBI is highly likely

Will another rate cut boost Modi's election campaign?

RBI Governor Shaktikanta Das is set to deliver a second consecutive 25 basis-point interest rate cut this week, according to most economists in a Bloomberg survey, reversing two hikes made by his predecessor Urjit Patel last year. Since taking over at the Reserve Bank of India in December, Das has relaxed restrictions on weak state-run banks to help spur borrowing, and allowed lenders to restructure loans to small and medium-sized businesses that are in default. READ MORE


These stocks from BSE500 index hit 52-wk highs today

COMPANY LATEST 52 WK HIGH PREV HIGH PREV DATE VOLUME
BAJAJ FINSERV 7188.75 7210.40 7200.00 16-AUG-2018 1108
KARNATAKA BANK 136.10 138.95 137.60 01-APR-2019 57704
MERCK 3808.20 3829.95 3800.00 01-APR-2019 1140
ST BK OF INDIA 327.55 328.50 327.50 01-APR-2019 321951
VARUN BEVERAGES 913.05 917.00 913.35 01-APR-2019 1962

Stock alert | Godrej Properties gains 7% on best-ever sales in March quarter

Godrej Properties sold over 2,900 homes with a total area of approximately 3.75 million square feet and a booking value in excess of Rs 2,100 crore during the quarter. Q4FY19 was the company’s best-ever quarter for bookings, eclipsing its previous best ever residential sales quarter, achieved in Q3 FY19, by approximately 50 per cent. READ MORE

Bajaj Auto posts highest ever sales in FY19


Sebi mulls cancelling application process for SRO for MF distributors

The long-pending proposal of a self-regulating organisation (SRO) for mutual fund (MF) distributors got a shot in the arm on Monday as the Securities and Exchange Board of India (Sebi) proposed doing away with the application process and, instead, suggested a nomination process. READ MORE


Opening gainers on BSE Sensex

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
LAK. VILAS BANK 83.20 5.65 7.29 490010
GODREJ PROPERT. 849.30 36.00 4.43 18287
FIRSTSOUR.SOLU. 50.20 1.80 3.72 254125
SCHAEFFLER INDIA 5699.95 193.55 3.52 1
GALAXY SURFACT. 1084.95 34.90 3.32 132
» More on Top Gainers

CURRENCY WATCH | Rupee opens 13 paise lower at 69.27 against US dollar

The rupee opened 13 paise lower at 69.27 against the US dollar on Tuesday. The domestic unit had closed 16 paise higher at 69.14 on Friday on persistent foreign fund inflows and heavy buying in domestic equities.
 
The money market was shut on Monday on account of annual account closing. READ MORE

Momentum picks by ICICI Direct


Most active stocks by volume (BSE500)

COMPANY PRICE(rs) CHG(rs) CHG(%) VOLUME
REL. COMM. 3.77 -0.19 -4.80 1782096
INDIAN ENERGY EX 162.30 0.45 0.28 1507615
RELIANCE POWER 11.20 0.21 1.91 1004944
SUZLON ENERGY 6.18 -0.01 -0.16 658723
LAK. VILAS BANK 82.00 4.45 5.74 580059
» More on Most Active Volume

Godrej Properties gains 5.6% after selling 2,900 flats in Q4


Nifty Realty index is trading 0.77% higher


Bharat Road Network Limited surges 14% after Rs 323 crore arbitration win against NHAI


Eicher Motors gains almost 4%


Zee Entertainment slips over 2% after promoters sell shares worth Rs 332 crore in 2 months


Sectoral gainers and losers on NSE


Top gainers and losers on S&P BSE Sensex


FIRST TRADE

At 9:19 am, the S&P BSE Sensex was trading 70 points or 0.18 per cent higher at 38,942, while the broader Nifty50 index of the National Stock Exchange (NSE) was trading at 11,683, up 13.50 points or 0.12 per cent. 

Market at pre-open


Rupee opening

Rupee opens weaker at 69.27/$ vs Friday's close of 69.15 against the US dollar

Stocks in focus

Godrej Properties: The realty firm Godrej Properties on Monday said it sold 2,900 flats for over Rs 2,100 crore during the fourth quarter of last fiscal. In a statement, the Mumbai-based developer said "it has achieved its highest ever bookings numbers in Q4 FY19."

TVS Motor: Chennai-based TVS Motor Company on Monday reported a marginal decline in total sales at 3,25,345 units in March 2019. The company had sold 3,26,667 units in the same month last year, TVS Motor Co said in a regulatory filing. READ MORE

Top trading calls by Anand Rathi

INFOSYS: BUY
TARGET: Rs 779
STOP LOSS: Rs 735
 
The stock has provided a breakout from the falling channel with a clear buy crossover in its momentum indicator MACD. The stock has started wave V up. Hence, we recommend buying it for the short-term equality target of Rs 779. READ MORE

Today's picks

ZEEL
Current price: Rs 432
Target price: Rs 424
 
Keep a stop at 436 and go short. Add to the position between Rs 425 and Rs 427. Book profits at Rs 424. READ MORE

SGX Nifty

At 8:30 AM (IST), Nifty futures on Singapore Exchange (SGX) were trading at 11,739, up 5 points, or 0.04 per cent, indicating a flat start for the domestic market

Oil check

Oil prices rose to fresh highs for the year on Tuesday, after a US official said Washington is considering more sanctions on Iran and a key Venezuelan export terminal halted operations.
 
Brent crude rose 26 cents, or 0.4 per cent, to $69.27 a barrel, having earlier touched $69.29, a new high for 2019. US West Texas Intermediate (WTI) futures rose 28 cents, or 0.5 per cent to $61.87 a barrel, earlier reaching $61.89, also a new high for 2019. WTI closed up 2.4 per cent on Monday.

FII/FPI & DII trading activity on NSE, BSE and MSEI


Bulk deals on NSE as on Monday

01-Apr-2019 JETAIRWAYS Jet Airways (India) Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED BUY 7,07,064 265.79 -
01-Apr-2019 JETAIRWAYS Jet Airways (India) Ltd. TOWER RESEARCH CAPITAL MARKETS INDIA PRIVATE LIMITED SELL 7,07,064 266.02 -
01-Apr-2019 POKARNA Pokarna Limited KACHOLIA ASHISH SELL 9,40,000 178.00 -
01-Apr-2019 POKARNA Pokarna Limited RELIANCE MUTUAL FUND BUY 7,85,840 178.00 -
01-Apr-2019 RCOM Reliance Comm. Ltd. INDUSIND BANK LTD CLIENT A/C SELL 175,00,000 3.95 -
01-Apr-2019 TGBHOTELS Bhagwati Banquets And Hot JHAVERI TRADING AND INVESTMENT PVT LTD SELL 2,12,609 11.55 -
01-Apr-2019 TGBHOTELS Bhagwati Banquets And Hot SAPAN ANIL SHAH BUY 2,00,000 11.55 -

Asian Markets check

Asia shares extended their rally on Tuesday as factory activity surveys from China and the United States boosted investor confidence, triggering the largest one-day sell-off in the US Treasury market in nearly three months.
 
MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.3 per cent to a seven-month high after rallying more than one percent in the previous session. Australian shares gained 0.8 per cent while Japan’s Nikkei advanced 0.4 per cent, extending its gains for a third session.

Wall Street check

US stocks rallied on Monday, starting off the second quarter on a strong note, as upbeat manufacturing numbers from China and the United States eased worries about slowing global growth.
 
The Dow Jones Industrial Average rose 329.74 points, or 1.27 per cent, to 26,258.42, the S&P 500 gained 32.79 points, or 1.16 per cent, to 2,867.19, and the Nasdaq Composite added 99.59 points, or 1.29 per cent, to 7,828.91.
Good morning
 
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