Indices end flat, Nifty settles at 10,227 levels; PSU banks, metals lose

All that happened in the markets today.

3:39 PM

Nifty Metal index too slips over 1.5%

3:34 PM

Nifty PSU Bank index slips over 1.5%

3:33 PM

Sectoral trend

3:32 PM

Sensex Heatmap

3:31 PM

Markets at Close

The S&P BSE Sensex ended at 33,307, down 44 points while the broader Nifty50 index settled at 10.227, down 16 points 

3:12 PM

Steel stocks under pressure; Tata Steel, JSPL, SAIL down 4%

 

Shares of steel companies were under pressure with Tata Steel, Jindal Steel & Power (JSPL) and Steel Authority of India (SAIL) down more than 4% on the National Stock Exchange (NSE) after US President Donald Trump imposed tariffs of 10% and 25% on imports of steel and aluminium respectively on March 8th.

 

Meanwhile, Tata Steel slipped nearly six-month low at Rs 607, down 4% on the BSE in intra-day trade, extending its past two days 4% decline after the company on Wednesday said that it has emerged as the top bidder for debt-laden Bhushan Steel.

2:57 PM

Gold stays weak on global cues, tepid demand

Gold prices fell by Rs 100 to Rs 31,350 per 10 grams at the bullion market today in tandem with a weakening global trend amid sluggish demand from local jewellers.
 

Silver also drifted down by Rs 115 to Rs 39,385 per kg due to reduced offtake by industrial units and coin makers. READ MORE

2:45 PM

Oil edges up as US President Trump set to meet North Korea's Kim

Crude oil futures rose on Friday as Asian stock markets gained on news that North Korean leader Kim Jong Un will meet with US President Donald Trump. READ MORE

2:32 PM

Plug loopholes in alternative investment funds regulations: RBI to Sebi

 

The Reserve Bank of India (RBI) wrote to the Securities and Exchange Board of India (Sebi) to plug loopholes in alternative investment funds (AIFs) regulations that are being exploited by the funds to give corporate loans. According to sources, the banking regulator is concerned about the risks posed by such practices and fears the route could also be used for money laundering.

 

It is worthwhile to note that all the lending businesses in India are regulated by the RBI. READ MORE

2:16 PM

National Stock Exchange 'hopeful' of going public in FY19

 

India's National Stock Exchange said on Thursday it was hopeful of going public in the next financial year beginning April and that it was committed to expeditiously resolving regulatory issues that have delayed its initial public offering.

 

NSE, as the bourse is known, had originally planned to go public in 2017 but it has been delayed due to an investigation by the market regulator Securities and Exchange Board of India (Sebi) on whether the exchange's employees had provided unfair trading access to select brokers. READ MORE

1:54 PM

China, Japan, South Korea hit out at Trump's steel, aluminium tariffs

 

Major Asian nations reacted sharply to US President Donald Trump's decision to impose tariffs on steel and aluminium imports on Friday, warning of damage to relations amid industry calls for retaliation.

Japan said the move would have a "big impact" on the countries' close bilateral ties, while China said it was "resolutely opposed" to the decision and South Korea said it may file a complaint to the World Trade Organization. READ MORE

1:41 PM

BHEL bags Rs 117-bn thermal power plant contract in Jharkhand's Ramgarh

State-owned power equipment major Bharat Heavy Electricals Limited (BHEL) on Friday said it has won Rs 117-billion order for setting up a 3x800 Mw thermal power plant in Jharkhand.  Shares of BHEL were trading 1.34 per cent higher at Rs 87.15 on the BSE. READ MORE

1:27 PM

Shell, Blackstone to jointly bid for $10 bn US shale assets of BHP: Report

Royal Dutch Shell Plc and US private equity firm Blackstone Group LP are working on a joint $10 billion bid for BHP Billiton Plc's US shale assets, Sky News said on Thursday. READ MORE

1:16 PM

L&T Finance Holdings up 3% on preferential issue to L&T; QIP opens

L&T Finance Holdings (LTFH) was trading 3% higher at Rs 163 on the BSE after the company said it has raised almost Rs 20 billion from preferential allotment of shares to its promoter Larsen & Toubro (L&T). READ MORE

1:08 PM

Market Check

 

S&P BSE Sensex	33,463.51		0.34%
Nifty 50	10,282.45		0.39%
S&P BSE 200	4,482.49		0.34%
Nifty 500	9,032.45		0.35%
S&P BSE Mid-Cap	16,078.54		0.22%
S&P BSE Small-Cap	17,400.09		0.25%

1:03 PM

Amtek Group extend gains as Liberty House Group emerges preferred bidder

Shares of Amtek Group companies were locked in upper circuit of 5% on the BSE for the second straight day after Liberty House Group was chosen as highest preferred bidder for Amtek Auto's assets.

 

Amtek Auto (Rs 24.95), Metalyst Forgings (Rs 30.50), JMT Auto (Rs 4.96) and Castex Technologies (Rs 4.57) rose 5% on the BSE with only buyers being seen on these counters. READ MORE

12:45 PM

Mayur Uniquoters extends gain on stake buy by Smallcap World Fund

 

Mayur Uniquoters was trading 2% higher at Rs 528, extending its previous day’s 5% gain on the BSE, after the foreign portfolio investor (FPI) bought nearly two percentage point stake in textiles Company through open market.

 

On Thursday, March 8, 2018, Smallcap World Fund Inc, had purchased a combined 875,586 shares representing 1.93% stake in Mayur Uniquoters at price of Rs 509 per share on the BSE and NSE, the bulk deal data shows. READ MORE

12:31 PM

One in three BSE 100 firms falls short in CSR spending

At least 33 companies, or one-third of firms on the S&P BSE 100 list, have fallen short of the required corporate social responsibility (CSR) spending as mandated by the Companies Act. The Ministry of Corporate Affairs (MCA) is sending out notices seeking details of how and on what CSR funds are being disbursed, say people familiar with the issue, adding officials want to check if corporate social work is actually happening. READ MORE

12:18 PM

GTL, GTL Infra tank upto 20% as company cuts outlook on Aircel insolvency

Shares of GTL and GTL Infrastructure have tanked up to 20% on the BSE after the Global Group firms warned that its operations will be hit with the shutdown of multiple telecom players and filing of bankruptcy petition by Aircel early this month. READ MORE

12:12 PM

Bank stocks head south

COMPANY	LATEST( )	CHG( )	CHG(%)	VOLUME
IDBI BANK	73.60	-1.25	-1.67	4245934
PUNJAB NATL.BANK	96.40	-0.30	-0.31	1263621
CENTRAL BANK	68.65	-1.05	-1.51	1091028
ST BK OF INDIA	252.90	-3.85	-1.50	503299
SOUTH IND.BANK	24.65	-0.50	-1.99	454272

12:01 PM

MARKET COMMENT from DBS Bank

Worries about trade protectionism is likely to impact sentiment in the short term. To be sure, the market is probably relieved that the tariffs are not as harsh as initially mooted. Canada and Mexico are exempted and there is room for other economies to negotiate. Equity markets have generally taken a sanguine view, grinding higher over the past week. Yields have also stayed buoyant. However, it is unclear if China or the Eurozone will be satisfied with this arrangement. Retaliatory tariffs leading to another round of trade tensions is a key downside risk. 
 

The upshot is that developed market bonds are still in consolidation mode. However, yields are in an uneasy range with implied volatility in USD rates significantly higher compared to EUR or JPY rates. We reiterate that 10Y UST yields at 3% is just about neutral for current economic conditions. Rangebound trading is likely until a clearer inflation trend is formed or if the Fed changes its guidance.  

12:00 PM

SECTOR RESEARCH - Auto Sector – Commercial Vehicles

M&HCV goods carrier sales in domestic markets have surged 17.3% yoy during April 2017 -January 2018. We expect the momentum to sustain over the next couple of years led by 1) pickup in mining & construction activity, 2) regulatory thrust in the form of overloading norms and GST rollout, 3) BS IV to BS VI emission norm revision, and, 4) scrappage policy implementation. Overall, we expect domestic M&HCV goods carrier demand to grow 8-10% in FY19 and upwards of 15% in FY20. The shift to multi-axle vehicles is already driving realisations for CV manufacturers, and, content per vehicle for auto component manufacturers. In our reckoning, listed players Ashok Leyland, Tata Motors (Standalone), Bharat Forge, MM Forgings, Jamna Auto, Gabriel India, Setco Automotive and Wabco India would be the key beneficiaries of the positive trends.

(Source: IIFL)

11:45 AM

Market Check

 

S&P BSE Sensex	33,405.25		0.16%
Nifty 50	10,264.15		0.21%
S&P BSE 200	4,475.39		0.18%
Nifty 500	9,015.90		0.17%
S&P BSE Mid-Cap	16,041.00		-0.02%
S&P BSE Small-Cap	17,381.29		0.14%

11:40 AM

Govt is expecting additional money from RBI as dividend: Subhash C Garg

The government is expecting additional money from the Reserve Bank of India (RBI) as dividend this month, Subhash C Garg, secretary, Department of Economic Affairs, said on Thursday. In August, the RBI had paid the government a dividend of Rs 306.59 billion for the year ended June 2017. The amount was less than half of Rs 658.76 billion it had paid in 2015-16. The RBI’s financial year runs from July to June. READ MORE

11:27 AM

Volume toppers on BSE500

COMPANY NAME	LATEST	HIGH	LOW	CHG ( )	CHG(%)	VALUE (  CR)	VOLUME
REL. COMM.	23.80	25.00	23.45	-1.35	-5.37	11.15	4595013
IDBI BANK	73.60	76.60	73.20	-1.25	-1.67	30.33	4066046
JP ASSOCIATES	14.35	14.85	14.00	-0.25	-1.71	5.23	3612087
SUZLON ENERGY	11.24	11.50	11.14	-0.26	-2.26	2.59	2290483
SPICEJET	136.85	140.00	133.50	3.80	2.86	21.75	1573910

11:17 AM

How Donald Trump's tariff, trade war fears roiled financial markets

 

US President Donald Trump's plans to impose tariffs on steel and aluminum imports has rippled through financial markets since last week, when his initial announcement set off fears of a global trade war.

 

Trump has stood by the tariffs, despite resistance from his fellow Republicans and other countries, which have vowed to respond with levies of their own, and on Thursday, Trump pressed ahead with the imposition of 25 percent tariffs on steel imports and 10 percent for aluminum. But he exempted Canada and Mexico, backtracking from earlier pledges of tariffs on all countries, while other countries can apply for exemptions. READ MORE

10:46 AM

Equity flows into mutual funds strong in February despite stock decline

 

Investor flows into mutual funds (MFs) remained strong last month, despite the markets suffering their worst monthly setback in two years.

 

Equity schemes have reported net inflow of Rs 163 billion in February, the highest in three months, despite the benchmark indices falling five per cent. More than half of these were on account of Systematic Investment Plans (SIPs), a facility where investors commit to invest a fixed sum every month. READ MORE

10:33 AM

HG Infra makes listless debut; lists at par against issue price of Rs 270

HG Infra Engineering (HGIEL) has made a listless debut on the bourses by listing at Rs 270, at par against its issue price of Rs 270 per share on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The stock fell below its issue price to Rs 265 after hitting high of Rs 275 on few seconds of its listing. READ MORE

10:30 AM

TOP CONTRIBUTORS TO SENSEX'S GAIN (As at 10:30am)

COMPANY	LATEST	CHG(RS)	CHG(%)	FREE FLOAT MKT CAP (RS CR)	CONTRIBUTION (POINTS)
H D F C	1820.85	23.35	1.30	193778.42	37.75
ITC	260.50	2.00	0.77	261575.10	16.45
TCS	3030.20	28.70	0.96	124249.74	14.98
INFOSYS	1161.20	4.50	0.39	218668.11	9.21
LARSEN & TOUBRO	1291.85	8.60	0.67	120446.07	8.20
HERO MOTOCORP	3647.25	61.60	1.72	34787.74	8.19

10:25 AM

CLSA's Chris Wood on inflation

Data over the past week has been sufficient to keep the inflation scare building. The trend in US core PCE inflation is more concerning when measured on a six-month annualised basis than on a YoY basis. But this is what markets, and indeed economists, tend to do when they are looking for inflection points. It is this kind of trending which creates the potential for another violent sell-off this year, most particularly if continuing US dollar weakness is combined with a correcting Treasury bond market. GREED & fear’s base case remains an inflation scare, not a real return of inflation. This is in part because GREED & fear remains fundamentally sceptical of the health of US consumption

CLSA Managing Director & Equity Strategist Christopher Wood