Nifty ends below 10,000, down 1% amid trade war fears, Sensex slips 410 pts

Catch all the market action here.

10:09 AM

TOP CONTRIBUTORS IN SENSEX FALL

 

COMPANY	LATEST	CHG(RS)	CHG(%)	CONTRIBUTION (POINTS)
MARUTI SUZUKI	8612.65	-86.35	-0.99	-14.91
TATA MOTORS	331.95	-6.25	-1.85	-15.71
ST BK OF INDIA	236.05	-5.55	-2.30	-22.39
HIND. UNILEVER	1288.05	-24.20	-1.84	-22.45
RELIANCE INDS.	897.15	-10.15	-1.12	-23.49
LARSEN & TOUBRO	1271.25	-23.25	-1.80	-28.11
H D F C	1794.00	-14.55	-0.80	-29.82
AXIS BANK	502.90	-15.40	-2.97	-33.30
HDFC BANK	1852.00	-16.30	-0.87	-41.59
ICICI BANK	275.85	-7.70	-2.72	-58.09

10:05 AM

IPO: Lemon Tree Hotels

 

Issue Opens: 26-Mar-18, Issue Closes: 28-Mar-18, Price Band: Rs54-56

 

Delhi-based Lemon Tree Hotels, the largest mid-sized domestic hotel chain, is the brainchild of first generation entrepreneur Patanjali Keswani. The room portfolio of ~4,700 rooms is spread across 45 hotels in 28 cities under three distinct brands: upper-midscale Lemon Tree Premiere, mid-scale Lemon Tree and economy Red Fox. Having debuted in 2004 with a modest 49-room Lemon Tree hotel in Gurugram, the company has grown across metros and Tier I and II cities, with NCR, Bengaluru and Hyderabad now contributing ~71% of revenues. Thanks to a judicious blend of improved revenue mix and augmented capacity, the company has achieved a ~18% revenue and a striking 33% EBIDTA CAGR over the FY13-17 span. Since end-to-end hotel development is achieved in-house, the capex per room is lower compared to peers while execution remains robust, reflected by the average 27% margins for the past three years. 

 

Based on industry data and management perspectives, we believe room rates are at an inflection as occupancies continue their upward march and importantly, the supply overhang is on the wane after several years of excess that overwhelmed demand. The Rs10bn issue, an OFS by PE shareholders, seeks a post issue Mcap of Rs44bn which including a Rs9bn debt, translates into over 40x trailing EV/EBIDTA. Even if EBIDTA growth picks up on the back of improved room rates, it would still leave Lemon Tree at a significant premium to other players. Though we like the positioning of leisure industry stocks from a cyclical perspective, the steep Lemon Tree valuations are nowhere near our comfort zone.

(Source: IIFL Report)

10:02 AM

Kotak Institutional Research on S H Kelkar

We upgrade the stock a notch to BUY from ADD noting the increased upside post the recent sharp correction. We believe the impact of the challenging RM situation should be short-lived as BASF resumes Citral production at its damaged facilities in the next few months. We bake in the potential gross margin impact and cut our FY2018-19E EPS forecasts by 2-5%. DCF-based target price remains `325. Upgrade to BUY.

10:00 AM

Market Check

 

S&P BSE Sensex	32,619.09		-1.17%
Nifty 50	9,978.05		-1.35%
S&P BSE 200	4,367.88		-1.24%
Nifty 500	8,771.20		-1.49%
S&P BSE Mid-Cap	15,644.21		-1.67%
S&P BSE Small-Cap	16,747.39		-1.86%

9:50 AM

COMMENT: HUGO ERKEN, Rabobank’s senior economist and country analyst for North America, Mexico and India on trade war fears

President Trump will sign a plan which will probably entail the instalment of tariffs worth as much as $50-60bn on Chinese products. Chinese export volumes could take a hit, ranging between $30bn to 145bn. The tariffs are expected to hurt the US as well, since US high-tech corporates and retailers have their products assembled in China to benefit from cheap Chinese labour.

 

China has little options to retaliate with tariffs without shooting in its own foot. A large share of US goods shipped to Mainland China consists of necessity imports, such as medicine, (medical) instruments and soybeans.

If trade tensions escalate, we currently foresee two outcomes: one where Europe cooperates with the US and one where Europe alienates from the US. These two scenarios could have significant negative implications for world trade and the global economy. We deem cooperation between US-EU towards China currently as more realistic than the other way around.

9:44 AM

Stocks in news

Hero MotoCorp increases stake in its Colombia joint venture to 68% from 51 %.

M&M & Ford sign MoUs to co-develop mid-size and compact SUV, EV and connected car solutions.

Balesh Sharma to be CEO of Idea-Vodafone merged entity.

REC board approved Rs 60000 crore market borrowing plan for FY19.

Vedanta Ltd has proposed to ramp up capacity of its aluminium smelter unit at Jharsuguda (Odisha) from 1.6mtpa to 1.8 mtpa at a cost of Rs 12.4 billion. The company’s proposal came up for scrutiny of the State Level Single Window Clearance Authority (SLSWCA).

Tata Motors and a joint venture between Goldstone Infratech and BYD of China have bagged orders to supply electric buses to nine of the 10 cities that had invited tenders in the past two months as part of a pilot partly funded by the central department of heavy industries

MCX to start brass futures trading next week

JSPL has approved allotment of 5.15Cr shares to different QIP at Rs. 233 per share. CMP 225

United Spirits Ltd has informed BSE that the Board of Directors of the Company, inter-alia, are going to consider ‘Sub-division of the equity shares of the Company of face value of Rs 10 each’ in such manner as may be decided by the Board at their meeting scheduled to be held on April 13, 2018.

JSW Energy Limited has secured a PPA of 200MW with Punjab State Power Corporation Limited to be supplied from the Karcham Wangtoo Hydro Electric Project of Himachal Baspa Power Company Ltd., a 100% subsidiary of the Company. With this, the long term PPA proportion of the Company on a consolidated basis has increased from 69.3% at end of Q3FY18 to 73.8% currently.

Shalimar Paints Limited has approved Rights Issue of 35,52,370 Equity Shares for cash at the price of Rs. 140/- per share including premium aggregating to Rs. 4,973.32 Lakhs by the Company.

German chemical major Covestro awards L&T Technology Services Multi-Million Dollar ER&D project.

Indraprastha Gas has announced a cut of Rs 3.15 a kilogram in the retail price of CNG it supplies to Noida, Greater Noida and Ghaziabad.

Schaeffler India said shareholders and creditors vote for merger of INA India, LuK India with self.

20 Microns subsidiary filed DRHP for IPO.

SQS India said German subsidiary completed winding process; awaits tax refund pending with German authorities.

Dilip Buildcon has received a letter of award from NHAI for a  new EPC project valued at Rs. 677.07 Cr from the state of UP.

(Source: Nirmal bang report)

9:41 AM

CLSA's Chris Wood on trade war fears

The other political news continues to be the renewed focus of the Trump administration on trade matters. The view that America has long been “ripped off” in trade matters, most particular so far as it concerns China, is about the one public policy issue The Donald has always been consistent on since the late 1980s when GREED & fear first became aware of him having any such views.
 

Trump seems totally focused on actually trying to implement the policy agenda he campaigned on and is also having some success in doing so. This suggests he is dead serious on the trade issue, as well as on the infrastructure issue which GREED & fear expects to get renewed momentum next year if the Republicans maintain control of Congress in the mid-term elections in November.

The stance on trade, if pursued by the Trump administration, can clearly make more waves in financial markets. The most likely outcome in GREED & fear’s view is that China will agree to some form of compromise that will stop an escalation into an outright trade war. Indeed there are already signs of this as China has already responded this week to the Trump administration’s threat of a Section 301 investigation targeting the intellectual property rights issue.

CLSA Managing Director & Equity Strategist Christopher Wood

9:36 AM

Nifty PSU Bank index down nearly 3%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
UNION BANK (I)	89.00	94.70	-5.70	-6.02	1861354
SYNDICATE BANK	56.20	58.15	-1.95	-3.35	322494
IDBI BANK	74.30	76.65	-2.35	-3.07	2621473
BANK OF INDIA	99.30	102.35	-3.05	-2.98	424259
INDIAN BANK	281.05	289.20	-8.15	-2.82	77731

9:32 AM

Nifty Metal index falls 3%. Top losers:

COMPANY	LATEST	PREV CLOSE	LOSS()	LOSS(%)	VOLUME
WELSPUN CORP	125.00	130.85	-5.85	-4.47	3930
NATL. ALUMINIUM	66.15	69.20	-3.05	-4.41	169591
JINDAL STAIN .HI	158.15	165.40	-7.25	-4.38	5912
S A I L	70.75	73.70	-2.95	-4.00	232189
HIND.ZINC	300.90	312.75	-11.85	-3.79	71037

9:22 AM

Sectoral Trend

9:21 AM

All Sensex stocks trade in red

9:16 AM

Markets at Open

At 9:15 am, the S&P BSE Sensex was trading at 33,642, down 366 points while the broader Nifty50 was ruling at 9996 down 118 points

9:06 AM

Derivatives strategy on SREI Infra by HDFC Securities

Buy: Srei Infra March 75 Put at Rs 1.50

Stop loss: Rs 0.80

Target: Rs 3
 

Rationale: Short positions being built in Srei Infra futures today where we have seen open interest addition of 2% with price fall of 5%. Stock Price is forming bearish lower top lower bottom formation on the daily chart Since July 2017. Stock price has given break down on the daily chart by closing below the downward sloping trendline support of 78 level. Stock Price is trading below its 5,20,200 dma indicating bearish trend.

9:05 AM

ALERT: 10-year bond yeild at 6-week low, trades at 7.53%

9:03 AM

Markets at pre-open

Index	Current	Pt. Change	% Change
S&P BSE SENSEX	32,803.33	-202.94	-0.61
S&P BSE SENSEX 50	10,521.13	-56.89	-0.54
S&P BSE SENSEX Next 50	32,556.40	-109.07	-0.33
S&P BSE 100	10,431.17	-53.24	-0.51
S&P BSE Bharat 22 Index	3,434.30	-16.39	-0.47

(Source: BSE)