Stocks tumbled in Asia early Friday following the worst Wall Street session since 1987, with investors spooked that emergency fiscal and monetary packages won’t be enough to stave off a recession.
Japanese equities plunged 6 percent and Korean stocks sank 7 percent, triggering a trading halt Futures on the S&P 500 dipped. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 6 percent to 8,909.50 after dropping as much as 9.6 percent earlier.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
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Here’s a quick look at all that could influence equities today
- U.S. equities plunged 8 percent, extending losses after a 15-minute NYSE-mandated halt.
- European stocks tumbled 10 percent in the biggest rout since 2008.
- Oil is on track for its biggest weekly decline since 2008 as the coronavirus pandemic wreaks havoc on fuel demand and threatens global economic stability.
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Indian ADRs
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Stocks To Watch
- Sun Pharma to consider share buyback on March 17.
- SBI approved an investment of Rs 7,250 crore in Yes Bank Ltd. as part of the plan to rescue the struggling private sector lender. The executive committee of the central board has approved the purchase of 725 crore equity shares of Yes Bank at a price of Rs 10 per share, SBI informed exchanges. Its stake in Yes Bank will remain under 49 percent of the paid up capital of the bank.
- Yes Bank: Bandhan Bank to replace Yes Bank in the Nifty Bank Index with effect from March 27. The replacement in the index due to the non-availability of F&O contracts.
- Gayatri Projects: Shilpa Medicare to replace the company in the NSE Nifty 500 Index from March 27 on account on non-compliance of SEBI portfolio concentration norms.
- Private Banks: RBI has expressed apprehension against the withdrawal of state government deposits from private banks. NS Vishwanathan, deputy governor, RBI wrote to chief secretaries of all states saying that state governments and related bodies withdrawing their deposits from private banks could have implications on banking and financial sector stability.
- Supreme Petrochem: Board has approved a buyback of up to 41 lakh shares (9.99 percent) at Rs 185 per share, aggregating to Rs 62.67 crore. The buyback price is at a premium of 31 percent to current closing prices on March 12.
- Coal India to pay interim dividend of Rs 12 per share. March 20 is fixed as record date.
- BPCL to pay interim dividend of Rs 16.5 per share. March 24 fixed as record date.
- Wipro to co-develop solutions with SAP for retail and fashion industry.
- Globus Spirits: Board approved amalgamation of the company’s arm Unibev with self.
- IIFL Finance received NBFC license from RBI on March 11. Merger of its NBFC arm India Infoline Finance with the company will be effective by March 31, company said in a press release.
- Lakshmi Vilas Bank clarified that on market rumours stating that articles are misleading and factually incorrect. Bank’s liquidity coverage ratio is at a comparable level more than what is prescribed by RBI and the Bank is in the process of recovering NPAs.
- KPI Global Infrastructure signed a power purchase agreement with Songwon Speciality Chemicals for sale of 1 million-watt solar power for a period of 15 years.
- Allahabad Bank reduced its MCLR by 5 basis points for overnight and one-month tenors, to be made effective from March 14. Overnight MCLR at 7.7 percent and one-month MCLR at 7.8 percent.
- GOCL Corporation said that pursuant to the direction of regulatory authorities the operations at company’s Hyderabad factory have been stopped with effect from March 11. The aforementioned plant contributes a turnover of Rs 7.7 crore per month.
- Astra Zeneca Pharma received import and market permission from Drugs Controller General of India for Calquence drug, used for the treatment of leukaemia.
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Brokerage Radar
Citi on India Auto Parts
- Around 30 percent of total auto component imports in India are from China.
- Coronavirus issue to impact near-term production.
- Some of the BS-VI components have not been localised.
- Localization is the long-term target for OEMs.
Macquarie on Indian Banks
- Yes Bank’s collapse to raise risk aversion further.
- Credit growth to remain very weak.
- Credit spreads are already widening for lower-rated corporates.
- AT1 bond write-off to further affect capital raising and increase nervousness among MF investors.
- Stick to quality names: HDFC Bank and ICICI Bank are our top picks.
Citi on India Oil
- Citi’s commodities team cut Brent forecast for CY20/21 to $43/49 from $54/53 earlier.
- OMCs relatively better placed – factor in lower oil prices and lower GRMs but higher marketing margins.
- Correction in RIL provides buying opportunity.
- ONGC & GAIL most negatively impacted; cut 2020-21 earnings estimate for ONGC and GAIL by 38 percent and 19 pecent respectively.
- IOCL: Upgraded to ‘Buy’ from ‘Neutral’; maintained price target at Rs 130.
- ONGC: Maintained ‘Neutral’; cut price target to Rs 78 from Rs 110.
- RIL: Maintained ‘Buy’; cut price target to Rs 1,580 from Rs 1,760.
- GAIL: Maintained ‘Buy’; cut price target to Rs 120 from Rs 140.
- HPCL: Maintained ‘Buy’; cut price target to Rs 285 from Rs 310.
- BPCL: Maintained ‘Buy’ with a price target of Rs 525.
CLSA on HDFC Bank
- Maintained ‘Buy’; cut price target to Rs 1,380 from Rs 1,560.
- Medium-term strategy in place; focus on semi-urban, rural and digital.
- Digital and payments to aid growth and efficiency gains.
- See 22 percent earnings CAGR over FY19-22; lower valuation multiple led to cut in target price.
BofA Securities on Industrials
- Likely capex curtailment on virus scare.
- Revenue visibility weak and costs are sticky.
- Cut sector order flows to -20 percent in Q4FY20.
- L&T: Middle east exposure a risk; India capex to contract, but valuations near all-time low.
- L&T: Maintained ‘Buy’; cut price target to Rs 1,245 from Rs 1,536.
- Adani Ports: Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 308 from Rs 453.
- Adani Ports: leverage is low, but high leverage of group companies and promoter pledge is concern.
- NBCC: Maintained ‘Underperform’; cut price target to Rs 27 from Rs 32.
- Cummins India: Maintained ‘Underperform’; cut price target to Rs 439 from Rs 495
- ABB India: Maintained ‘Underperform’; cut price target to Rs 962 from Rs 1011
- Siemens India: Maintained ‘Underperform’; cut price target to Rs 1,081 from Rs 1,162
- BHEL: Maintained ‘Neutral’; cut price target to Rs 35.4 from Rs 44
- Gujarat Pipapav: Maintained ‘Buy’; cut price target to Rs 83 from Rs 85
- Container Corp: Maintained ‘Neutral’; cut price target to Rs 499 from Rs 522
- Tata Power: Maintained ‘Underperform’; cut price target to Rs 56 from Rs 64
Bulk Deals
- Cera Sanitaryware: Nalanda India Equity Fund acquired 71,685 shares (0.55 percent) at Rs 2349.92 per share
- Indian Hotels: Promoter Tata Sons acquired 1.66 crore shares (1.39 percent) at Rs 107.4 per share
- Tata Motors DVR: Promoter Tata Sons acquired 1.85 crore shares (3.64 percent) at Rs 43.15 per DVR share
- Tata Power: Promoter Tata Sons acquired 1.39 crore shares (0.51 percent) at Rs 38.72 per share
- Tata Steel: Promoter Tata Sons acquired 77.4 lakh shares (0.69 percent) at Rs 287.44 per share
- GHCL: Bajaj Finance sold 6 lakh shares (0.61 percent) at Rs 109.98 per share
- Dwarikesh Sugar: Bajaj Finance sold 51.09 lakh shares (2.71 percent) at Rs 18.8 per share
- Shaily Engineering Plastics: IDFC Mutual Fund acquired 1 lakh shares (1.2 percent) at Rs 380 each and DSP Emerging Stars Fund sold 1.3 lakh shares (1.56 percent) at Rs 380 each
Pledged Share Details
- Sun Pharma promoter Raksha Valia released pledge of 4.5 lakh shares on March 11
- JSW Steel promoter JSW Techno Projects created pledge of 1 crore shares from March 5-6
- Max Financial Services promoter Max Ventures Investment revoked pledge of 19 lakh shares on March 9
- JSW Energy promoters created pledge of 3.24 crore shares from March 5-11
- Max India promoter Max Ventures Investment revoked pledge of 28.54 lakh shares on March 9
(As Reported On March 12)
Trading Tweaks
- Music Broadcast record date for bonus issue at 1:4
- Sadbhav Engineering, Sical Logistics, Sumeet Industries to move into ASM Framework
- Visagar Polytex, Hindustan Oil Exploration to move into short term ASM Framework
Price Band Revision To 10 Percent
- Prakash Pipes
- Dalmia Bharat Sugar and Industries
- Dhampur Sugar Mills
- Spicejet
- Mukand
- Kesoram Industries
- Zeal Aqua
- CESC Ventures
- Avanti Feeds
- Dredging Corporation of India
- Magma Fincorp
- Shakti Pumps
- Bank of India
- Wockhardt
- Triveni Engineering & Industries
- Allahabad Bank
- Godawari Power and Ispat
- Deep Industries
- Take Solutions
- Aditya Birla Money
- United Bank of India
- Intellect Design Arena
- Adani Transmission
- Kaya
- The Investment Trust Of India
Who’s Meeting Whom
- Prince Pipes and Fitting to meet ICICI Pru MF, Equentis Wealth and JM Financial Services from March 13-16
Insider Trading
- Alembic promoter Nirayu acquired 95,587 shares from March 9-11
- Aarti Industries promoters sold 1 lakh shares on March 11
- PVR promoter and director Ajay Bijli acquired 20,000 shares on March 6
(As Reported On March 12)
Money Market Update
- The rupee ended weaker at Rs 74.21 against the dollar on Thursday versus Rs 73.64 on Wednesday.
F&O Cues
Futures
- Nifty March futures closed at 9546.6, discount of 43.5 points versus 7.6 points
- Nifty March futures open interest down 4 percent, sheds 6.9 lakh shares in open interest
- Nifty Bank March futures closed at 23,845, discount of 126 points versus premium of 2.6 points
- Nifty Bank March futures open interest down 4 percent, sheds 66,700 shares in open interest
Options
- Nifty PCR at 1.16 versus 1.06 (across all series)
Nifty Weekly Expiry: March 19
- Max open interest on call side at 11,000 (7.6 lakh shares)
- Max open interest on put side at 9000 (6.2 lakh shares)
- Open interest addition seen in 9,000P (+5.5 lakh shares), 10,000C (+6.1 lakh shares)
Nifty Monthly Expiry: March 26
- Max open interest on call side at 12,000 (22.9 lakh shares)
- Max open interest on put side at 9,500 (25.4 lakh shares)
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