Sensex ends 284 points down, Nifty at 10,154; PSU bank index crack over 3%

All that happened in the markets today.

11:05 AM

Central bank watch

 

We expect the Bank of Canada to leave rates on hold at 1.25% on Wednesday 7th March. 22 of 22 analysts surveyed by Bloomberg expect no change and the OIS market implies just a 12% chance of a 25bp hike. We expect a 25bp hike to 1.50% at the April 18th meeting but we see this as likely to be final hike of this year. This is on the proviso that our Fed call of two hikes remains unchanged

 

(Source: Rabobank International report)

11:00 AM

Reliance Securities on JK Tyre & Industries

 

JKT enjoys a leadership position in the M&HCV TBR tyre segment with over 31% market share, while its market share stands at 12% in PCR tyre segment. Notwithstanding a subdued performance in 9MFY18, we expect JKT’s performance to improve, going forward owing to sustained pick-up in sales volume, reduction in manpower cost and steady input prices.

 

Further, a pick-up in utilisation and low capex requirement are expected to aid JKT to de-leverage its balance-sheet in coming quarters. We reiterate our fundamental BUY rating on the stock with Target Price of Rs 210.

10:57 AM

MOIL buyback. Should you tender shares?

Moil Ltd’s buyback of 87.66 lakh shares at a price of Rs.240 per share starts today and ends on March 20th, 2018. Approximately just 3 or 4 shares out of 100 held would be accepted in the buyback, which would give 13% gain from the yesterday’s closing price. Considering the marginal benefit on overall holdings and also the potential of the stock on the basis of fundamentals, we suggest investors to hold on to MOIL and skip the buyback offer

(Source: Equinomics Research)

10:56 AM

US Fed assumes significance again. Here's why

All eyes will be on the Fed’s Beige Book report tonight. The market is looking for the Fed, at its FOMC meeting on 21 March, to upgrade its economic assessment and to raise the dots. One of Fed’s dove, Governor Lael Brainard, has turned optimistic that headwinds are turning into economic tailwinds that will support gradual rate hikes, which New York Fed President William Dudley reckoned is consistent with one hike per quarter. Dallas Fed President Robert Kaplan, meanwhile, supports three hikes this year as consistent with a US economy near full employment

(Source: DBS Bank report)

10:56 AM

COMMODITY WATCH Godrej International sees palm futures rising to 2,700 ringgit by June

Godrej International's Dorab Mistry is turning slightly bullish on palm oil. Benchmark palm oil futures may gradually rise to 2,700 ringgit ($690) a tonne by June, the highest level since November, Mistry said at an industry conference in Kuala Lumpur on Tuesday. READ MORE
 

10:41 AM

Adani Group stocks extend fall; Adani Transmission down 5%

Shares of all the four listed Adani Group companies – Adani Ports and Special Economic Zone (SEZ), Adani Enterprises, Adani Transmission and Adani Power – have fallen by up to 7% in early morning deal on Wednesday, extending its previous day’s fall on the BSE. READ MORE

10:29 AM

ICICI Bank hits over four-month low; falls 13% in six trading days

ICICI Bank dipped 3.3% to Rs 285 on the BSE on Wednesday in early morning trade, extending Tuesday’s 2.6% decline after media reports suggested that the bank’s Managing Director and Chief Executive Officer Chanda Kochhar was summoned by the Serious Fraud Investigation Office (SFIO) in Punjab National Bank (PNB) scam. READ MORE

10:21 AM

MUST READ US protectionism: There are no winners in Donald Trump's trade war

A “trade war” triggered by the US could be a defining factor that retards growth across the globe. Donald Trump proposes to impose a 25 per cent customs tariff on steel imports and a 10 per cent tariff on aluminium. In retaliation, the European Union (EU), Canada, Brazil, China, etc, have threatened to impose customs duties on US exports CLICK HERE FOR MORE

10:19 AM

Nifty PSU Bank index slips over 1%

10:18 AM

Sharekhan on PI Industries

We maintain hold with revised target price of Rs 940. In order to accelerate growth momentum the management is focusing on branded products, launching new products and forging tie-ups and partnerships to increase its client base. The company also has healthy cash-flow generation which makes the balance-sheet much stronger.

As the management has not guided any deviation from its earlier guidance provided post the 3QFY18 results, we are not revisiting our numbers currently and continue to maintain our hold rating on the stock with a revised target price of Rs 940.

10:15 AM

SECTOR WATCH: Construction

Reports indicate that the National Highway Authority of India (NHAI) has commenced its road monetisation programme by opening the bids for the first lot of projects on the Toll‐operate‐Transfer (ToT) mode. Macquarie has won the rights to collect toll on ~648km of highways for a period of 30 years by quoting ~ Rs 97 billion. This will help NHAI raise upfront capital to fund road projects based on the EPC and hybrid annuity (HAM) modes.

We view this as a seminal event in the Indian infrastructure space since this will start a virtuous cycle of the government funding various infra projects, completing and then eventually monetising them, with the money raised being used to develop new infra assets. This will reduce the burden on the government budget as far as infra development is concerned. Beneficiaries will include Sadbhav Engg (BUY), Ashoka Buildcon (BUY), KNR Constructions (BUY), PNC Infratech (BUY), Dilip Buildcon (NOT RATED), among others.

(Source: Edelweiss Report)

10:13 AM

COMMENT: Jefferies on Indian banks

 

We continue to prefer private sector banks, especially corporate oriented ones or those with greater retail presence or moats around retail liability viz. Yes Bank, Axis Bank, ICICI Bank and HDFC Bank. While we are perennially positive on HDFC Bank, Private corporate banks too are available at comparatively inexpensive valuations and the street is not pricing in recovery in earnings or is too narrowly focusing on near term asset-quality issues. 

 

We also believe private sector banks are far better placed in capturing higher market share across both corporate and retail assets, as well as retail liabilities, especially in light of the heightened scrutiny of the SOE banks undertaken by the government/RBI. While the valuation gap has opened up between SOE Banks and Private sector banks, our inability to predict when it narrows is one key reason why we would stay away from owning SOE Banks, on average.

10:00 AM

Market Check

 

S&P BSE Sensex	33,256.68		-0.18%
Nifty 50	10,213.75		-0.35%
S&P BSE 200	4,467.37		-0.27%
Nifty 500	8,994.30		-0.50%
S&P BSE Mid-Cap	16,081.00		-0.54%
S&P BSE Small-Cap	17,503.69		-0.84%

9:50 AM

US protectionism: There are no winners in Donald Trump's trade war

A “trade war” triggered by the US could be a defining factor that retards growth across the globe. Donald Trump proposes to impose a 25 per cent customs tariff on steel imports and a 10 per cent tariff on aluminium. In retaliation, the European Union (EU), Canada, Brazil, China, etc, have threatened to impose customs duties on US exports. READ MORE

9:37 AM

NEWS IMPACT Sugarcane price arrears to farmers at nearly Rs 140 billion

 

Sugar stocks lost ground in trade on Wednesday. According to news reports, sugar mills owed nearly Rs 140 billion to sugarcane farmers at the end of January in the ongoing marketing season, the government said on Tuesday. Sugar marketing year runs from October to September. READ MORE

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
SIMBHAOLI SUGAR	13.00	13.88	-0.88	-6.34	294
THIRU AROOR. SU.	34.20	36.00	-1.80	-5.00	252
INDIAN SUCROSE	28.95	30.45	-1.50	-4.93	100
DHARANI SUGARS	19.25	20.20	-0.95	-4.70	304
TRIVEN.ENGG.IND.	51.90	54.25	-2.35	-4.33	22821
DWARIKESH SUGAR	30.35	31.65	-1.30	-4.11	79426