All You Need To Know Going Into Trade On March 12

A global equity rout deepened in Asia on Thursday after a renewed sell-off in U.S. equities, with investors concerned by a lack of clarity from the Trump administration on a coronavirus stimulus package.

Shares in Japan sank and Australian equities extended recent losses, getting little respite from that nation’s stimulus package. Early gains for American equity futures fizzled as investors awaited a press conference from President Donald Trump. Oil edged up after another slide. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell over 4 percent to 9,995.50 as of 7:38 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today

• The latest bout of virus-fomented turmoil tipped Dow Jones Industrial Average into a bear market, ending the longest bull run in the history of American equities. The S&P 500 dipped into bear territory before closing 19 percent below its high.
• Oil resumed its slide alongside equities after Saudi Arabia said it would raise its production capacity and the World Health Organization declared the coronavirus a pandemic.
• The Stoxx Europe 600 Index slipped 0.7 percent at the close, wiping out an earlier jump of 2.3 percent.

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DataWatch

• March 12: India to report CPI inflation data for February and industrial production for January.
• March 12-15: India to report trade deficit data for February.

Indian ADRs

Stocks To Watch

• SBI has waived its minimum average monthly balance for all savings bank account and has also waived off SMS charges which were levied on a quarterly basis. The bank also stated that all its customers can enjoy a zero balance facility in their SBI account. The bank has cut interest on savings bank account to 3 percent from 3.25 percent earlier.
• Biocon, Sanofi India: Biocon has won a U.S. court ruling that invalidated a Sanofi patent for insulin glargine device patent in U.S., company said in its press release that a key legal hurdle to commercialize Semglee (insulin glargine) co-developed by Mylan, has been removed. New drug application for Semglee is under active review by U.S. FDA. with the target action date for the application in June 2020.
• CG Power and Industrial Solutions: SEBI has barred Gautam Thapar from the securities market under further notice and he can liquidate up to 25 percent of securities by value.
• Cyient: Nippon India AMC increased its stake from 4 percent to 5.04 percent in the company, on March 6.
• KPIT Technologies has entered into an agreement with Vayavya Labs to acquire a 100 percent stake in the target company for Rs 41.8 crore. The company said the proposed acquisition of Vayavya Labs will give the company a head-start in the field of simulation and embedded software automation.
• Canara Bank has allotted bonds worth Rs 3,000 crore on March 11.
• Aster DM Healthcare: Government approved the re-appointment of Dr. Azad Moopen as managing director of the company till April 2023, till he attains the age of 70 years.
• SMS Pharmaceuticals received zero observations with the receipt of the establishment inspection report by U.S. FDA. for inspection at the company’s API facility in Andhra Pradesh. This facility predominantly caters regulated markets including the U.S.
• Hikal clarified that the company’s Mahad unit has been operating normally and there is no closure yet. The company’s Mahad unit had received closure notice from the Maharashtra Pollution Control Board.
• United Bank of India: Trading of shares of the Bank to be suspended with effect from March 23, on account of amalgamation of the Bank with Punjab National Bank.
• Syndicate Bank: Trading of shares of the Bank to be suspended with effect from March 20, on account of amalgamation of the Bank with Canara Bank.
• Karur Vyasa Bank: Bank has the capital to risk-weighted assets ratio at 15.87 percent, against the regulatory requirement of 10.875 percent its liquidity coverage ratio is at 306.23 percent against the regulatory requirement of 100 percent.
• Hero MotoCorp: Competition Commission of India approved the acquisition of additional equity shares in the company’s arm Hero Fincorp by Otter Ltd. and Link Investment Trust.

Yes Bank Updates

• Mumbai court has extended Bank’s co-founder Rana Kapoor’s Enforcement Directorate custody till March 16.
• Bank has clarified that it has been made a party to the writ petition filed by Axis Trustee Services in a Bombay Court on its restructuring scheme under which it is proposed to permanently write down, in full, the instruments qualifying as Additional Tier 1 capital, issued by the Bank under Basel III framework.
• Anil Ambani’s ADAG said in a press release that the Group’s exposure to Yes Bank is fully secured and is committed to honouring repayments of all its borrowings from Yes Bank. The Group has no exposure to neither ex-CEO Rana Kapoor nor his family members or entities controlled by Rana Kapoor or his family members.
• Fitch Ratings: India’s non-bank financial institutions will likely face renewed pressure on funding and liquidity following the Reserve Bank of India's takeover of Yes Bank this month. The consequences will compound the credit squeeze across the country's financial system, adding to current economic uncertainty.
• ICAI to review Yes Bank’s financial statements of financial years 2018 and 2019. If any material issues are found in the disclosures, then ICAI to take action against the bank's auditors. In case of material issues, ICAI will also refer to the irregularities to concerned regulators.
• Larsen & Toubro has moved Bombay High Court against Yes Bank and Reserve Bank of India. L&T has filed a writ petition under the Banking Regulation Act, 1949. A division bench of the Bombay High Court will hear the matter on March 12.
• IndusInd Bank: Non-disposal undertaking of pledge shares has now been revoked. Promoters of the bank had pledged 3.43 percent stake in favour of Citibank.

Coronavirus Impact

• SH Kelkar: Currently the company is holding adequate inventories to support uninterrupted production till April 2020. Operations of the company’s Italian arm remains unaffected and China's factory has become operational from the first week of March. The company also stated that it is geared to crease production at its manufacturing facility in Mahad, to meet a possible surge in demand for key special ingredients once market conditions normalizes.
• InterGlobe Aviation: Modest impact was seen in January and February as company cancelled flights to China and Hong Kong and reduced frequency to certain other south-east Asian markets. Over the past few days, on a week-on-week basis there was a decline of 15-20 percent seen in daily bookings.

Offerings

• CCI approved proposed combination involving setting up of Mindspace REIT by K. Raheja Group.

Brokerage Radar

CLSA on Vodafone Idea

• Upgraded to ‘Buy’ from ‘Sell’
• Positives: lower AGR risk, Ebitda tripling and focus on top circles.
• Growth is set to accelerate led by tariff hikes.
• Vodafone Idea may look to give up spectrum in weak circles.

UBS on Eicher Motors

• Maintained ‘Buy’; cut price target to Rs 23,000 from Rs 24,500.
• Outperforming industry sales growth in majority states.
• Uttar Pradesh, Punjab aid growth in North; all states in South decline sharply.
• Studio store roll-out to continue.

HSBC on HCL Technologies

• Maintained ‘Buy’ with a price target of Rs 650.
• Core business should pick-up from Q4; products business unlikely to contribute much in near-term.
• Balance sheet is healthy with industry lowest receivable days.
• COVID-19 impact is a near-term risk but impact unlikely to be material.

HSBC on InterGlobe Aviation

• Maintained ‘Hold’; cut price target to Rs 1,145 from Rs 1,195.
• Profit warning validates our concerns.
• Weak demand in summer could have a significant impact on full-year profitability.
• Cut 2019-20 net profit forecast by 38 percent to factor in MTM forex loss.

Bulk Deals

• Welspun Enterprises: Promoter Welspun Group Master Trust acquired 17.1 lakh shares (1.15 percent) at Rs 73.55 each. Overall, the promoters cumulatively acquired 27.5 lakh shares (1.85) percent.

Pledged Share Details

• LT Foods promoter Raghuvesh Holdings created pledge of 38.91 lakh shares on March 9.
• Adani Ports & SEZ promoter SB Adani Family Trust created pledge of 28.3 lakh shares on March 9.
• Adani Transmission promoter SB Adani Family Trust created a pledge of 16.5 lakh shares on March 9.

(As Reported On March 11)

Trading Tweaks

• NIIT Technologies record date for share-buyback.
• Music Broadcast ex-date for bonus issue at 1:4.
• Future Enterprises, MT Educare, Zeal Aqua to move into short term ASM Framework.
• G G Engineering, Welspun Corp, Hindustan Oil Exploration price band revised to 10 percent.
• Reliance Infrastructure, Sadbhav Infrastructure Project price band revised to 5 percent.

Who’s Meeting Whom

• Pidilite Industries to meet Kotak Mutual Fund on March 18.
• Mahindra & Mahindra to meet RBC Global Asset Management and SMBC Nikko Securities from March 12-13.

Insider Trading

• Godrej Industries promoter Anamudi Real Estates acquired 76,500 shares from March 6-9.
• Future Enterprises promoter Central Departmental Stores acquired 20.6 lakh shares from March 6-9.
• Aarti Industries promoters sold 1.25 lakh shares on March 9.
• PVR promoter and director Ajay Bijli acquired 11,898 shares on March 9.

(As Reported On March 11)

Money Market Update

The rupee ended stronger at Rs 73.64 against the dollar on Wednesday versus Rs 74.09 against the dollar on Monday..

F&O Cues

Futures

• Nifty March futures closed at 10,450.7, a discount of 7.6 points versus a premium of 10.95 points.
• Nifty March futures OI down 2 percent, sheds 3.3 lakh shares in OI.
• Nifty Bank March futures closed at 26,490.4, premium of 2.6 points Vs 63 points.
• Nifty Bank March futures OI up 16.6 percent, adds 2.1 lakh shares in OI.

Options

• Nifty PCR at 1.06 Vs 1.04 (across all series).

Nifty Weekly Expiry: March 12

• Max OI on call side at 11,000 (26.2 lakh shares).
• Max OI on put side at 10,000 (18.3 lakh shares).
• OI addition seen in 10,600C (+6 lakh shares), 10,500C (+5.5 lakh shares), 10,400P (+4.4 lakh shares).

Nifty Monthly Expiry: March 26

• Max OI on call side at 12,000 (26.4 lakh shares).
• Max OI on put side at 10,000 (31.1lakh shares).