Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities:
For the fifth straight day in a row, the benchmark indices continued the positive momentum as these indices successfully cleared the short term technical resistance on the charts. Banking and financials stock outperformed, rallied over two percent, whereas some profit booking was seen in realty and metal stocks.
Technically, after a long time the Nifty succeed to close above 20- days SMA. It has formed bullish candle on the daily chart.
We are of the view that as long as Nifty trading above 16700 the uptrend will continue in the near future. For the bulls immediate hurdle would be 17000 or 200-Day SMA.
On the downside, below 16700 strong possibility of quick intraday correction on the Nifty is not ruled out. Below 16700 Nifty could retest 16620 and 16550.
Ajit Mishra, VP - Research, Religare Broking:
Markets started the week on a buoyant note and gained over one and a half percent, in continuation of the prevailing rebound. After the flat start, the benchmark inched gradually higher, thanks to healthy buying in banking and IT majors and finally ended around the day’s high. Meanwhile, the broader indices traded mixed and closed with marginal gains.Upbeat global cues combined with bargain hunting in index majors are pushing the markets higher.
Markets will first react to the inflation data in early trade on Tuesday.Besides, updates on prevailing geopolitical tension and the performance of global markets will remain in focus.
Since Nifty has surpassed the critical hurdle at 16,800, it can extend the rebound to a 17,100+ zone. In case of any dip, 16700 would act as immediate support. Meanwhile, participants should maintain their focus on sector/stock selection.
Rupak De, Senior Technical Analyst at LKP Securities:
Nifty has given breakout from a falling channel on the daily timeframe suggesting a rise of bullishness. In addition, the benchmark index has moved above the previous swing high which is again a bullish set-up.
The trend may remain positive as long as it sustains above the said channel. On the lower end, support is visible at 16650 whereas on the higher end resistance is pegged at 17000.
Rahul Sharma- Equity 99:
Markets are expected to remain volatile this week mainly driven by US Federal Reserve's interest rate decision and the release of domestic inflation data. Also despite talks between Russia and Ukraine tensions still persists.
The date of LIC`s IPO will also be key factor in determining the direction of markets in coming days. Investors are advised to take new position only after things get cleared out and keep strict stop losses to positions.
Fir Nifty50 16800 will act as very strong support level, if this level is breached intraday than 16690 will act as next strong support, post which 16600 will be next support level.
On the upper side 17000 will be 1st hurdle, once this level is breached on upper side than next resistance will be at 17100 levels post which 17220 will act as next strong resistance level.
Vinod Nair, Head of Research at Geojit Financial Services:
We are gaining traction as strategy is shifting from tactical sell to tactical buy. Investments are chipping in as commodities prices are reverting.
FIIs selling and crude prices are subsiding, which is expected to continue based on diplomatic developments and provide an edge to the domestic market.
Globally, investors are bracing for rate hikes as expected. Domestic WPI has spiked up however market is ignoring as future prices can get gloomy.
Market Close:
Benchmark indices ended higher for the fifth consecutive session on March 14 led by the IT, auto and banking names.
At close, the Sensex was up 935.72 points or 1.68% at 56,486.02, and the Nifty was up 240.80 points or 1.45% at 16,871.30. About 1684 shares have advanced, 1706 shares declined, and 134 shares are unchanged.
Infosys, SBI, HDFC Bank, Maruti Suzuki and Axis Bank were among the top Nifty gainers, while losers were IOC, ONGC, HUL, Tata Motors and HDFC Life.
On the sectoral front, IT and bank indices rose 2 percent each, while Realty index down nearly 2 percent. The BSE midcap index ended flat, while smallcap index gained 0.3 percent.
JPMorgan view on Jubilant FoodWorks:
JPMorgan has downgraded Jubilant FoodWorks to 'neutral' from 'overweight' on rising demand/margin risks.
It has cut the target price to Rs 3,000 from Rs 4,025 per share and lower FY23/24 EPS estimates by 11 percent/8 percent largely on back of margin cuts.
According to the broking firm, the unexpected CEO resignation adds to the uncertainty.
However, it continue to believe in mid-to long-term story of the company.
Jubilant FoodWorks touched a 52-week low of Rs 2,444 and was quoting at Rs 2,510.80, down Rs 353.30, or 12.34 percent on the BSE.
Govt plans to float EoI for its stake sale in IDBI Bank next month:
The government plans to invite expression of interest to sell its stake in LIC-controlled IDBI Bank by the next month-end, a senior official has said.
As part of the divestment, the government plans to sell its entire 45.48 per cent stake eventually.
The government may look to sell around a 26 per cent stake in the bank, along with management control to attract investors, the official said.
IDBI Bank became a subsidiary of LIC with effect from January 21, 2019, following the acquisition of an additional 8,27,590,885 equity shares.
DLF to invest Rs 550 crore to set up Standard Chartered Global Business Services’ campus in Chennai:
DLF is planning to invest close to Rs 550 crore to set up a one million sq ft office building for Standard Chartered Global Business Services’ campus in Chennai which is expected to be up and running by mid-2024, said Sriram Khattar, managing director, DLF on March 14.
The DLF Downtown-Chennai project, spread over 27 acres and comprising a 6.5 million square feet area, is being developed by DLF Cyber City Developers Ltd (DCCDL) with an investment of Rs 5,000 crore.
BSE Power index shed 0.5 percent dragged by the ABB, Adani Transmission, Adani Green
Bond Yields Updates:
Jefferies view on HDFC Bank:
The broking house Jefferies has kept buy call on HDFC Bank with a target at Rs 2,160 per share.
RBI lifting the ban would push the launch of new platforms, even BAU initiatives would get simpler with this clarity from RBI.
The macro headwinds are at play, but key stock-specific overhang is behind now.
HDFC Bank was quoting at Rs 1,444, up Rs 47, or 3.36 percent on the BSE.
Market at 3 PM
Benchmark indices further extended the intraday gains and trading near the day's high level in the final hour of the trading led by IT and banking names.
The Sensex was up 951.13 points or 1.71% at 56501.43, and the Nifty was up 246.20 points or 1.48% at 16876.70. About 1687 shares have advanced, 1579 shares declined, and 120 shares are unchanged.
ALERT | The US 10-year yield rose to 2.08%, which is the highest level since 2019.
Credit Suisse view on Jubilant FoodWorks:
Research house Credit Suisse has kept the 'neutral' rating on Jubilant FoodWorks and cut the target price to Rs 2,900 from Rs 3,500 per share. It also lowered the target multiple to 55x.
"The CEO resignation is a setback and leadership change during challenging macro environment will be an overhang," it said.
Jubilant FoodWorks touched a 52-week low of Rs 2,444 and was quoting at Rs 2,506.20, down Rs 357.90, or 12.50 percent.
Kabra Extrusion Technik's battery division acquires 100% stake in Varos Technology
Battrixx has acquired 100 percent stake in Pune-based Varos Technology Pvt. Ltd. pioneers in developing and leveraging IOT tools for EV infrastructure and battery management systems.
Battrixx, the battery division of Kabra Extrusion Technik Ltd. which is a part of Kolsite Group.
Kabra Extrusion Technik was quoting at Rs 494.25, up Rs 8.95, or 1.84 percent on the BSE.
BHEL despatches its 42nd Nuclear Steam Generator to NPCIL
Bharat Heavy Electricals Limited (BHEL) has achieved a major milestone with the despatch of its 42nd Nuclear Steam Generator to the Nuclear Power Corporation of India Ltd (NPCIL), company said in its release.
The steam generator, to be installed for a 700 MWe unit at NPCIL’s Rajasthan Atomic Power Project (RAPP), was flagged off from BHEL’s Trichy plant in the presence of senior officials of BHEL and NPCIL, it added.
Bharat Heavy Electricals was quoting at Rs 51.10, down Rs 0.80, or 1.54 percent on the BSE.
DRE Reddy, CEO and Managing Partner, CRCL LLP. on inflation
:
WPI inflation has remained in double digits for the eleventh consecutive month beginning April 2021. As the food prices have hardened, the inflation grew at 13.11 percent in February when compared to the inflation in January 2022 which was 12.96 percent. Due to the latest boost in prices due to the war, we are likely to receive a reverse effect which will bring a rise in the upcoming WPIs. Constant rise in the WPI also indicates that manufacturers have regained their pricing power, which was dropped in the past two years due to the pandemic. The global economy is recovering as we witness increase in demand for metals, oils, crude and fertilizers. Moving forward, as the crude prices soften in the summer season and supply issues getting resolved, it will help ease WPI inflation in the next few months.
European Markets Updates
Vodafone Idea partners with Nazara Technologies to launch gaming service
Telecom operator Vodafone Idea Limited (Vi) has partnered with diversified gaming and sports media company Nazara Technologies to launch a gaming service to its subscribers. Called Vi Games, the service will offer more than 1,400 Android and HTML5-based mobile games across 10 popular genres such as action, adventure, arcade, casual, education, fun, puzzle, racing, sports and strategy. This will comprise a mix of free and paid mobile games. The company said its games offering will initially offer casual games and gradually expand to host social games and esports in the future.
February trade data
Exports up 25.1% at $34.6 billion against $27.6 billion (YoY). Imports up 36.1% at $55.4 billion against $40.7 billion (YoY). Trade deficit up 59.1% at $20.88 billion against $13.1 billion (YoY).
Market Update at 2 PM: Sensex is up 671.94 points or 1.21% at 56222.24, and the Nifty jumped 165.30 points or 0.99% at 16795.80.
Sugar stocks in focus:
Shares of Sugar companies extended their rally on the back of higher volumes. Triveni Engineering & Industries surged 10%, Dhampur Sugar Mills 12%, Uttam Sugar Mills 7%, Dalmia Bharat Sugar and Industries 8%, Avadh Sugar & Energy 7%, Mawana Sugars 7%, Magadh Sugar & Energy 6%, Andhra Sugars 3%, Dwarikesh Sugar Industries 1% and Balrampur Chini Mills 5%
Union minister Nitin Gadkari on Saturday said top officials of automobile companies have promised him that they will start manufacturing vehicles of flex-fuel variants within six months. Flex-fuel, or flexible fuel, is an alternative fuel with a combination of gasoline and methanol or ethanol, according to a Business Standard report.
PNC Infratech emerges as lowest bidder for a project worth Rs 738 crore
PNC Infratech has been declared the L1 (lowest) bidder for a NHAI Project of Four Laning of NH 530B in the state of Uttar Pradesh on Hybrid Annuity Mode, for a bid project cost of Rs 738 crore.
The Project is to be constructed in 24 months and operated for 15 years post construction.
PNC Infratech was quoting at Rs 244.90, up Rs 0.90, or 0.37 percent on the BSE.
Parth Nyati, Founder, Tradingo:
Jubilant FoodWorks tumbled sharply on the back of news that CEO Pratik Pota resigned. We are seeing the knee-jerk reaction and various downgrades on the stock price because the stock sees rerating in the last few years because of Mr. Potra who brought lots of changes in the business model where the stock went to 60PE from 40PE of its one year forward earnings.
However, the stock has already corrected significantly from its 52-week high and the outlook of the company is still very strong whereas IPL is going to start soon therefore we may see buying interest at lower levels. The market will watch for the new name of the CEO before any meaningful recovery.
Technically, it is trading near the critical demand zone of Rs 2500-2400 where we can expect some buying while if it slips below Rs 2400 then 2100 will be the next important support level. On the upside, the Rs 2900-3000 area will act as an immediate resistance zone at any pullback.
RBI issues directions for microfinance loans
Reserve Bank of India (RBI) issued directions for microfinance loans. All entities, banks, 7 NBFC-MFIs has brought under similar rules.
75% of NBFC-MFI entities must qualify as MFI loans against 85% earlier. All Banks, NBFCs must provide reasons for income discrepancy of borrowers if any.
All regulated entities must submit info on household income of borrowers.
To qualify as MFI loan, households’ total income limit raised to Rs 3 lakh.
Buzzing
Shares of Deepak Nitrite rose over 2 percent as investors expect prices of phenol to rise after one of the biggest phenol producing hubs in China went under lockdown on March 14.
China’s Jilin province, which is a major production hub for phenol, went under lockdown after the province reported 895 COVID-19 cases in one of the worst outbreaks since the start of the pandemic in 2020.
With supply of phenol from China likely to be disrupted because of lockdown, analysts global phenol prices to rise that will benefit earnings of Deepak Nitrite, a major producer of the chemical in India.
Zydus receives final approval from USFDA for Colestipol Hydrochloride Tablets
Zydus Lifesciences has received final approval from the USFDA to market Colestipol Hydrochloride Tablets in the strength of 1mg (US RLD: Colestid), company said in its press release.
Colestipol hydrochloride tablets are indicated as adjunctive therapy to diet for the reduction of elevated serum total and LDL-C in patients with primary hypercholesterolemia (elevated LDL-C) who do not respond adequately to diet. Colestipol Hydrochloride is a highly complex macro molecule drug substance with little or no systemic absorption, it added.
Zydus Lifesciences was quoting at Rs 364.35, down Rs 6.60, or 1.78 percent on the BSE.
Market at 1 PM
Benchmark indices were trading near the day's higher level with Nifty above 16700.
The Sensex was up 580.84 points or 1.05% at 56131.14, and the Nifty was up 134 points or 0.81% at 16764.50. About 1608 shares have advanced, 1592 shares declined, and 117 shares are unchanged.
Hong Kong stocks drop more than 4% as tech firms battered
Hong Kong stocks fell more than four percent Monday afternoon as tech firms were hit by concerns over China's crackdown on the sector, and as the country's tech hub Shenzhen was put under lockdown.
The Hang Seng Index shed 4.68 percent, or 960.99 points, to 19,592.80.
Nifty Metal index fell 1 percent dragged by the NACLO, Hindustan Copper, Coal India
Alembic Pharma gets tentative approval from USFDA for Macitentan tablets
Alembic Pharmaceuticals has received tentative approval from the US Food & Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Macitentan Tablets, 10 mg
Alembic Pharmaceuticals was quoting at Rs 726.40, down Rs 6.70, or 0.91 percent on the BSE.
JUST IN | Government seeks parliament nod to spend net extra Rs 1.07 lakh crore in FY22.
Power Mech Projects bagged order worth Rs 2,120 crore in Uttar Pradesh
Power Mech Projects announced winning orders worth Rs 2120 crore under Jal Jeevan Mission (JJM) program. The company has won the new orders under Phase-III projects in 2120 villages of Pratapgarh, Fatehpur and Meerut districts in Uttar Pradesh, company said in its release.
Major components of the project are about 2100 tube wells, 2100 water tanks, and 13,000 km of pipeline network for supply of drinking water to about 50 lakh population, it added.
Power Mech Projects was quoting at Rs 904.95, up Rs 25.65, or 2.92 percent on the BSE.
JUST IN
| February WPI inflation was at 13.11 percent versus 12.96 percent and Food inflation stood at 8.47 percent versus 9.55 percent, MoM.
The Primary Articles inflation was at 13.39 percent versus 13.87 percent and Fuel & Power inflation at 31.50 percent versus 32.27 percent, MoM.
Citigroup India initiates buy on Nykaa with price target of Rs 1,620
Brokerage firm Citigroup India has initiated coverage on shares of FSN E-Commerce Ventures, operator of Nykaa, with a “buy” rating and a price target of Rs 1,620, implying 16 percent upside from the current level.
The brokerage firm believes that the company has strong unit economics in its core beauty and personal care (BPC) segment to create a robust platform to leapfrog into the wider lifestyle retail opportunity.
“We believe brand recognition + business model holistically target Nykaa's core TAM (Beauty & Personal Care), giving it durable competitive advantages,” Citi said in a note. The brokerage firm believes that the total addressable market for Nykaa is “attractive” as it sees the BPC market growing to $5 billion by 2025-26 from $1.2 billion in 2020-21.
FSN E-Commerce Ventures Nykaa was quoting at Rs 1,370.25, down Rs 21.10, or 1.52 percent on the BSE.
Market at 12 PM
Benchmark indices extended the early gains and trading near at day's high level with Nifty above 16700.
The Sensex was up 565.23 points or 1.02% at 56115.53, and the Nifty was up 128.30 points or 0.77% at 16758.80. About 1629 shares have advanced, 1539 shares declined, and 107 shares are unchanged.
BSE Oil & Gas index slipped 1 percent dragged by the HPCL, IOC, Petronet LNG
Bharat Petroleum’s amalgamation of subsidiaries to improve synergies: Fitch Ratings
Bharat Petroleum Corporation Limited’s (BPCL, BBB-/Negative) plan to amalgamate its wholly owned subsidiaries, Bharat Oman Refineries Limited (BORL) and Bharat Gas Resources Limited (BGRL), into the company will result in greater synergies, Fitch Ratings says. However, it will have no rating impact.
Bharat Petroleum Corporation was quoting at Rs 355.30, down Rs 6.75, or 1.86 percent on the BSE.
Sobha appoints Jagadish Nangineni as managing director
Sobha in its board meeting held on March 14, 2022 accepted resignation of Mr. Jagdish Chandra Sharma as director and vice chairman and-managing director and key managerial personnel (KMP) of the company with effect from April 1, 2022. The last working day of Mr. Jagadish Chandra Sharma in the above said position will be 31st March, 2022.
The board appointed Jagadish Nangineni as an additional director in the capacity of whole-time director designated as managing director and key managerial personnel of the company for a term of five years, with effect from 1 April, 2022 subject to the approval of the shareholders of the company.
The board also approved appointment of Mr. Raman Mangalorkar, as an additional director in the capacity of non-executive independent director of the company for a term of five years, with effect from April 1, 2022.
Sobha was quoting at Rs 709.30, down Rs 36.65, or 4.91 percent on the BSE.
BSE Bankex index rose 1 percent led by the HDFC Bank, ICICI Bank, SBI:
Fresh COVID-19 cases over 24 hours touch lowest in 680 days
India has reported 2,503 new COVID-19 cases in a day, the lowest in 680 days while the swift decline in active cases continued with the active caseload at the lowest in 675 days.
The new cases take the total confirmed tally to 4,29,93,494.
A total of 27 COVID-19 deaths were also registered in the period, taking the toll due to the infectious disease to 5,15,877. Kerala continued to report backlog deaths as part of its data reconciliation exercise registering nine fatalities.
It also registered the highest deaths at six in the 24-hour period, followed by Odisha (7). Majority of the states and Union Territories (UTs), however, recorded no deaths during the day.
GAIL declares second interim dividend of Rs 5 for FY 2021-22:
GAIL (India) has declared second interim dividend of 50% on the paid-up equity share capital, which is Rs 5 per equity share for FY 2021-22 (Total Dividend amount: Rs 2,220.19 crore) with a record date of March 22, 2022.
GAIL India was quoting at Rs 151.45, down Re 1, or 0.66 percent on the BSE.
Chinese auto companies starting suspending production
Tata Motors in focus as auto companies in China have started suspending production due to rising COVID cases and government there imposing lockdown
Tata Motors was quoting at Rs 408.50, down Rs 9.65, or 2.31 percent.
L&T bags order worth Rs 1,000-2,500 crore for water & effluent treatment business
The Water & Effluent Treatment Business of L&T Construction has secured various contracts. The Gujarat Water Infrastructure Limited has placed engineering, procurement and construction orders for the design and construction of the Dhanki · Navda Bulk Pipeline project that aims to enhance water supply capacity to meet the future demands of Amreli, Junagadh, Botad and Rajkot districts of Gujarat. The scope includes design & construction of 99 kilometers bulk transmission MS pipeline, 10.5 ML RCC raw water sump & pumphouse and associated electro-mechanical & instrumentation works, the company said in an exchange filing.
L&T stock was trading at Rs 1,740.45, up Rs 12.65, or 0.73 percent. It has touched an intraday high of Rs 1,744.00 and an intraday low of Rs 1,715.70.
Bharat Petroleum’s amalgamation of subsidiaries to improve synergies: Fitch Ratings
Bharat Petroleum Corporation plan to amalgamate its wholly owned subsidiaries, Bharat Oman Refineries Limited (BORL) and Bharat Gas Resources Limited (BGRL), into the company will result in greater synergies, Fitch Ratings says. However, it will have no rating impact. BORL owns and operates the Bina Refinery with annual capacity of 7.8 million metric tons in India’s Madhya Pradesh state. All three of BPCL’s refineries will be under one entity after the amalgamation, which we expect will improve efficiency in terms of crude procurement, inventory management and hedging mechanisms.
We believe that after the amalgamation, BPCL will be able to optimise its business plan for retailing compressed natural gas at its CGD networks further in light of its 24% share of the number of Indian fuel retail outlets and the potential to transform them into holistic energy stations catering to multiple types of fuel needs.
Fitch’s assessment of BPCL’s standalone credit profile fully consolidates BORL and BGRL, with credit metrics that have adequate headroom under the negative sensitivities. BPCL's rating is equalised with that of its largest shareholder, the Indian sovereign (BBB-/Negative), based on Fitch's Government-Related Entities Rating Criteria, due to the strong likelihood of government support. The negative outlook reflects that on the Indian sovereign.
BPCL was trading at Rs 354.85, down Rs 7.20, or 1.99 percent. It has touched an intraday high of Rs 360.45 and an intraday low of Rs 352.40.
Market Update at 11 AM: Sensex is up 364.05 points or 0.66% at 55914.35, and the Nifty added 79.60 points or 0.48% at 16710.10.
HDFC Securities on Jubilant Foodworks
The CEO of Jubilant FoodWorks, Pratik Pota, announced his resignation. After he became the CEO in 2017, he addressed several challenges and boosted confidence in growth longevity. His exit is quite surprising since he was instrumental in turning around Domino’s SSG (9% during FY18-FY22E vs. ~1% during FY14-FY17), improving unit economics, implementing successful strategies from Domino’s US and Australia, expanding multi-year growth drivers by launching various new QSR formats and expanding operating margin (10% when he joined to ~18% pre-IND AS now). His exit (along with past exits of many members of senior management) is certainly adding several risks. Apart from the fact that his execution expertise would be missed (quite essential from long-term growth perspective), the timing of his exit is also quite odd; it comes at a time when Jubilant has been guiding for massive store expansion (across brands/geographies) over the next 3-5 years.
Although we remain positive on the longevity of QSR industry and Jubilant’s superior business model, rich valuation remains a concern for us. We cut our EPS estimate by 6% and 4% for FY23 and FY24, owing to steep RM inflation, and macro headwinds. We also cut our target P/E multiple to 45x (earlier 60x) on FY24 EPS, due to uncertainty around various aspects post the exit. Our revised target price is Rs 2,400, based on 45x P/E on Mar-24E EPS for Domino’s India and Rs 150 per share (earlier Rs 300 per share) for ex-Domino’s India. We maintain reduce rating on the stock. The stock was trading at Rs 2,535.40, down Rs 328.70, or 11.48 percent. It has touched a 52-week low of Rs 2,444. It has touched an intraday high of Rs 2,700 and an intraday low of Rs 2,444.
