Sensex, Nifty Fall To Five-Month Low Amid Trade War Worries

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Closing Bell

Indian equity benchmarks fell sharply mirroring losses in global equity markets after concerns grew that global growth could get hit amid escalation of ongoing trade war between U.S. and China.

The S&P BSE Sensex fell 1.24 percent or 410 points to 32,596 and the NSE Nifty 50 index slumped 1.15 percent or 117 points to 9,998.

On a weekly basis, Sensex fell 1.75 percent and the Nifty slumped 1.93 percent, posting their longest stretch of weekly losses in 16 months.

Countdown

Block Deal Alert

  • Axis Bank has 1.22 crore shares change hands in a block. Stock down 2.95 percent at Rs 503.

Buyers and sellers were not immediately known

Source: Bloomberg

Fortis Healthcare Slumps 11% On Report Suitors Seeking To Ring Fence Legal Risks

Shares of the Delhi-based hospital chain operator fell as much as 10.6 percent, the most in over a month, to Rs 138.20 after CNBC TV18 reported that potential acquirers TPG and Manipal Hospitals are seeking to change the deal structure to protect against legal liabilities.

Earlier in the day, the Delhi High Court had earlier ordered a valuation of the assets of Fortis’ former controlling shareholders, Malvinder and Shivinder Singh.

Union Bank of India To BloombergQuint

  • Have Rs 4,500 crore of standard assets under SDR and S4A as of 31 Dec 2017.
  • Rs 2,000-2,500 crore of SDR and S4A assets are from thermal power.
  • Q4 NPA pain could be slightly more than that in Q3.
  • Rs 4,000-5,000 crore worth cases under NCLT will get resolved by June quarter.
  • Expecting some forbearance from RBI in thermal power units.
  • If GSec yields end Q4 below 7.60%, then MTM treasury loss will be lower in Q4 than in Q3.

European Shares Decline As Weak Global Cues Weigh

European equities slid to their lowest in more than a year, as the negative news cycle for risk assets continued.

Dilip Buildcon Gains On Emerging As Lowest Bidder For Highway Project

Shares of the Bhopal-based road developer rose as much as 0.6 percent to Rs 988 after it emerged as the lowest bidder for highway project in Telangana.

NHAI awarded Hybrid Annuity Project valued at Rs 936 crore in Telangana, Dilip Buildcon said in an exchange filing.

Bloomberg Exclusive: Tata’s Bid For Bhushan Is Said To Be Around Rs 35,000 Crore In Cash

Tata Steel Ltd. offered about Rs 35,000 crore ($5.3 billion) to lenders to acquire bankrupt Bhushan Steel Ltd., Bloomberg reported, quoting a person with knowledge of the matter.

Power Lunch

MEP Infra Emerges As Lowest Bidder For Three NHAI Projects

Shares of the Mumbai-based road developer were trading 1.9 percent lower at Rs 76.30.

The company has emerged as the lowest bidder (L1 bidder) for three highway projects to be completed on Hybrid Annuity Mode (HAM).

Varun Beverages Acquires PepsiCo India's Franchise In Jharkhand

Shares of the Gurgaon-based beverage maker fell 1 percent to Rs 603.60.

The company has acquired PepsiCo India's previously franchised sub territory in Jharkhand along with one manufacturing unit at Jamshedpur, Varun Beverages said in an exchange filing.

With the current acquisition it is now a franchisee for PepsiCo products across 21 States and two Union Territories of India, the filing added.

#AskBQ

Market Check

  • Indian equity benchmarks continue to reel under selling pressure led by HDFC Bank, HDFC, ICICI Bank and Reliance Industries amid global equity selloff.
  • The S&P BSE Sensex plunged 1.3 percent or 440 points to 32,570 and the NSE Nifty 50 index slumped 1.3 percent or 131 points to 9,983.
  • All sector gauges were trading lower led by the S&P BSE Metal index's 3.4 percent drop.
  • Broader markets were also facing selling pressure as the S&P BSE MidCap index fell 1.9 percent and the S&P BSE SmallCap index tumbled 2.2 percent.
  • The overall breadth on BSE was extremely bearish as 2,178 shares were declining while 308 were advancing.

Top Five Nifty Losers

  • Vedanta down 4.8 percent
  • Hindalco down 4.6 percent
  • Tata Steel down 1.2 percent
  • Yes Bank down 3.7 percent
  • Axis Bank down 3.6 percent

Top Five Nifty Gainers

  • Bharti Infratel up 1.5 percent
  • HCL Technologies up 1.3 percent
  • Zee Entertainment 0.4 percent
  • Coal India up 0.4 percent
  • Asian Paints 0.3 percent

Stocks Moving On Heavy Volumes

  • Magma Fincorp: The Kolkata-based money lender fell 3.75 percent to Rs 139.95. Trading volume was 18.8 times its 20-day average.
  • Supreme Industries: The Mumbai-based plastic products maker fell 1.57 percent to Rs 1,161. Trading volume was 17.2 times its 20-day average.
  • AIA Engineering: The Gujarat-based specialty chemical maker fell 0.25 percent to Rs 1,403. Trading volume was 14.4 times its 20-day average.
  • Somany Ceramics: The Delhi-based ceramic tile maker declined 0.8 percent to Rs 670. Trading volume was 13.1 times its 20-day average.

Hot Money

Support For Nifty At 9,950

Nifty has been in “short” mode since it closed below 200-day simple moving average, Mustafa Nadeem, CEO, Epic Research said in an email.

"Crucial support for Nifty is now between 9,950-9,980. A close below 9,950 will take the Nifty to next meaningful stop at around 9,650." - Mustafa Nadeem, CEO, Epic Research

Wheels India Rises After Report On Filing Patent

Shares of the wheel maker snapped three-day decline and rose as much as 3.5 percent, the most in nearly a month, to Rs 2,200 after it filed a patent application for adjustable lugless wheel for tractors, according to a media report.

The stock has returned 69.6 percent over the past 12 months, compared to 12.6 percent advance in Sensex.

Trend Spotting

Japanese Shares Extend Losses, Nikkei Slips Over 1,000 Points

Japanese shares extended losses after risk of global growth getting hit surfaced amid escalation in ongoing trade war after the U.S. imposed trade tariffs on China.

Japan's Nikkei fell as much as 4.7 percent or 1,018 points to 20,573.

Bhushan Steel Surges After CoC Approves Tata Steel Bid For Acquisition

Shares of the Delhi-based steel maker rose as much as 9.4 percent to Rs 43.20 after its committee of creditors (CoC) approved Tata Steel's bid for acquisition of Bhushan Steel.

The company won bid to acquire Bhushan Steel in the auction process, according to its stock exchange filing. The acquisition is subjected to obtaining necessary regulatory approvals, including approval from the NCLT and the Competition Commission of India, the notification added.

L&T Technology Services Gains On Winning Multi-Million-Dollar Order

Shares of the Vadodara-based engineering services company rose as much as 2.25 percent to Rs 1,209 after it won a multi-million-dollar contract from German plastic maker Covestro, the company said in an exchange filing.

L&T Technologies will implement digitalization-based engineering programs across Covestro’s global locations, the filing added.

Union Bank Slumps On Report Of Loan Fraud

Shares of the Mumbai-based government-owned bank fell as much as 8.76 percent, the most in over a month, to Rs 86.40.

A bank fraud came to light with the CBI filing a case against Hyderabad-based Totem Infrastructure Ltd for allegedly defrauding a consortium of eight banks led by Union Bank of India (UBI) to the tune of Rs 1,394 crore, news agency IANS reported.

Block Deal Alert

Axis Bank has 28 lakh shares change hands in a block. Stock down 2.8 percent at Rs 503.

Source: Bloomberg

F&O Check: Nifty 9,900 Put Option Sees Addition In Open Interest

Nifty 10,000 and 9,900 strike price put options were among the most active options contracts on the National Stock Exchange.

Nifty 10,000 strike price put option saw open interest decrease by 2.36 lakh shares to 56.47 lakh shares. On the other hand, Nifty 9,900 strike price put option saw addition of 15.15 lakh shares to 39.35 lakh shares.

The F&O Show

Bharat Dynamics Lists At Discount On Stock Exchanges

Shares of the Hyderabad-based defence equipment maker made a weak debut on stock exchanges. The stock The stock fell as much as 16 percent to Rs 360 against its issue price of Rs 428.

Bharat Dynamics’ Rs 960-crore initial public offering was subscribed 1.26 times on the last day of bidding.

Market Check

  • Indian equity benchmarks continued to witness selling pressure led by losses in ICICI Bank, HDFC Bank, Reliance Industries and Larsen & Toubro.
  • The S&P BSE Sensex fell 1.19 percent or 392 points to 32,613 and the NSE Nifty 50 index plunged 1.3 percent or 130 points to 9,985.
  • The Sensex has fallen over 10 percent from an all-time high hit on Jan. 29.
  • All Sensex and Nifty 50 stocks were trading with a negative bias.

Metal Stocks Slump Amid Rising Trade War Tensions

NSE Nifty Metal Index fell 3.29 percent in early trade to 3,442.75, its lowest in six months.

China, as a retaliation to U.S. President Donald Trump's tariff plans, announced for reciprocal tariffs on $3 billion of imports from the U.S. Such imports include U.S. pork, recycled aluminium, steel pipes, fruits and wine.

This is a response to Trump's tariffs of at least $50 billion in Chinese imports to compensate for alleged intellectual property abuses by China.

The top loser among Indian scrips include National Aluminium Company Ltd. which fell 5.6 percent while Steel Authority of India Ltd. fell 5.36 percent in intra-day trading today.

Tata Steel Declines; Company Wins Bhushan Steel Bid

Shares of the country's second-largest steelmaker extended decline for the third straight trading session. The stock fell as much as 3.9 percent to hit over a seven-month low of Rs 558.40

The company won bid to acquire Bhushan Steel in the auction process, according to its stock exchange filing. The acquisition is subjected to obtaining necessary regulatory approvals, including approval from the NCLT and the Competition Commission of India, the notification added.

Besides, Tata Steel has accepted the letter of intent for Bhushan Steel under the Insolvency Resolution Process of IBC.

The Relative Strength Index was 29, indicating that the stock may be oversold. The scrip declined 19 percent so far this year, compared to 22 percent gain in the past 12 months.

Opening Bell

Indian equity benchmarks fell sharply tracking selloff in global equity markets after U.S. President Donald Trump imposed trade tariffs on China amid concerns that trade war could hit global growth.

The S&P BSE Sensex fell as much as 1.5 percent or 153 points to 9,961 and the S&P BSE Sensex plunged 1.4 percent or 471 points to 32,534.83.

Sensex and Nifty fell to their lowest level in over five months in today's trade.

All sector gauges compiled by BSE were trading lower led by the S&P BSE Metal index's 2.56 percent drop.

Rupee Opens Lower Against U.S. Dollar

  • Indian rupee opened lower at 65.19 per U.S. dollar against yesterday's close of 65.10.

Tata Steel Identified As Successful Resolution Applicant For Bhushan Steel

Tata Steel has been declared as the successful resolution applicant by the Committee of Creditors (CoC) for acquisition of Bhushan Steel, Tata Steel said in an exchange filing.

Jehangir Aziz Of JPMorgan To BloombergQuint

  • As of now, don't know all the 1,000 Items on which tariffs will be imposed.
  • Actual tariffs could be over $50 billion after the entire list of items are unveiled.

ArcelorMittal Awaiting Notification On Essar Steel Bid Process

IndianOpen

Trump Issues Tariff Exemption For Select Countries

U.S. President Donald Trump issues tariff exemption for

  • European Union
  • Australia
  • Korea
  • Brazil
  • Canada
  • Mexico
  • Argentina

Money Market Heads Up!

Sovereign bond yields may drop at open tracking U.S. Treasuries, while markets await the fiscal first half borrowing calendar as well as the monetary policy meet which is scheduled for early April.

The Indian rupee may drop in line with most Asian peers as the U.S.-China trade war escalated and spurred concern that the region’s economies will become collateral damage.

Implied opening from forwards suggest that spot may start trading around 65.19 today.

Shaktikanta Das, India's Sherpa, G20 To BloombergQuint

  • Government is engaged with the U.S., support measures will be WTO complaint.
  • Trade war is a matter of concern for sustenance of revival of international growth.
  • China, U.S. will have to look at the impact on downstream industries.
  • India's share is too small to impact industry too much.
  • India will have to keep a close watch on the global trade war developments.

Selloff Visible Across The Globe

Equity markets across the world were spooked by the U.S. President Donald Trump's executive order to impose tariffs on China amid concerns that trade war could hit global growth.

BQ Heads Up!

Commodities In China Open Lower As Trade War Intensifies

All You Need To Know

SGX Nifty Falls Over 1%, Trades Below 10,000

Daybreak

IPO Watch

  • Bharat Dynamics to list on exchanges. Base price Rs 428 per share
  • ICICI Securities IPO continues on day 2. Issue subscribed 0.29 times on day 1.
  • Mishra Dhatu Nigam IPO continues on day 3. Issue subscribed 0.64 times on day 2.

Stocks To Watch

  • Anjani Portland Cement to set up an additional clinker producing unit for Rs 400 crore.
  • Future Market sells Ahmedabad City Mall for Rs 16.54 crore.
  • Schaeffler India says shareholders and creditors vote for merger of INA India, LuK India with itself.
  • Hero MotoCorp increased stake in Colombia JV to 68 percent from 51 percent.
  • L&T Technology Services wins multi-million-dollar order from German plastic maker Covestro.
  • JSW Energy secured order from Punjab State Power Corp for supply of 200 megawatt of power.
  • United Spirits to consider stock split on April 13.
  • Infosys invests an additional $1.5 million in Waterline Data Science.
  • SQS India says German subsidiary completes winding process; awaits tax refund pending with German authorities.
  • Shalimar Paints to raise Rs 49.73 crore via rights issue. Board approves issue of 35.52 lakh shares at a price of Rs 140 each.
  • Alankit subsidiary Alankit Life Care receives FFMC (Full Fledged Money Changer) License from RBI.
  • Balesh Sharma to be CEO of Idea-Vodafone merged entity.

F&O Cues

  • Nifty March Futures closed trading at 10,127.8 premium of 13 points versus 24.9 points.
  • March series-Nifty open interest unchanged, Bank Nifty open interest up 7 percent.
  • India VIX ended at 15.2, up 1 percent.
  • Max open interest for March series at 10,500 call strike, open interest at 62.8 lakh, open interest up 3 percent.
  • Max open interest for March series at 10,000 Put, open interest at 58.8 lakh, open interest up 2 percent.

Bulk Deals

Ashapura Intimates

  • Promoter Harshad Thakkar bought 3 lakh shares (1.2 percent equity) at Rs 450 per share.

Jubilant Foodworks

  • William Blair & Co. LLC bought 3.77 lakh shares (0.6 percent equity) at Rs 2,260.5 per share.

Quess Corp

  • MEMG Family Office bought 10 lakh shares (0.7 percent equity) at Rs 1,023 per share.
  • Ramdas Pai sold 10 lakh shares (0.7 percent equity) at Rs 1,023 per share.

Shaily Engineering Plastics

  • HDFC Mutual Fund bought 50,000 shares (0.6 percent) at Rs 1140 per share.

Jindal Drilling

  • Jindal Drilling & Industries Limited Employees Welfare Trust sold 2.20 lakh shares (0.8 percent equity) at Rs 164.43 per share.

Corporate Actions

  • JBF Industries circuit filter revised to 10 percent.

Talking Points

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.9 percent to 10,030 as of 6:18 a.m.

Asian stocks followed their U.S. counterparts lower after President Donald Trump’s decision to slap tariffs on China heightened concern a trade war could hurt global growth. The yen climbed to its strongest in over a year.

Japan’s Topix index slumped 2.5 percent and shares in Australia and South Korea also dropped. U.S. stock futures traded lower after the S&P 500 Index sank 2.5 percent, the biggest drop in six weeks.

The sell-off began after Trump instructed U.S. Trade Representative Robert Lighthizer to levy tariffs on at least $50 billion in Chinese imports. Subsequently, China announced plans for reciprocal tariffs on $3 billion of imports from the U.S., including products from steel to pork.

Here are some key events on the schedule for the remainder of this week:

  • The Bank of Russia’s rate decision is on Friday.
  • U.S. government funding is due to expire at the end of the day on Friday.

Bonds

  • The yield on 10-year Treasuries fell one basis point to 2.81 percent.
  • Japan’s 10-year yield declined one basis point to 0.033 percent.
  • Australia’s 10-year yield fell four basis points to 2.667 percent.

Commodities

  • West Texas Intermediate crude rose 0.5 percent to $64.64 a barrel.
  • Gold rose 0.2 percent to $1,332.33 an ounce.
  • LME copper dipped 1.4 percent to $6,695.00 per metric ton.

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