Financial Traders Monitor Data on Computer Screens (Photographer: Krisztian Bocsi/Bloomberg)

All You Need To Know Going Into Trade On August 4

Asian equity markets nudged lower Friday as bonds climbed with the yen following a Wall Street Journal report that U.S. Special Counsel Robert Mueller was said to have impaneled a grand jury in the ongoing Russia probe.

Here’s a quick look at all that could influence equities on Friday.

Global Cues

  • U.S. stocks fell, the dollar weakened versus the yen and Treasuries rose after the Wall Street Journal reported Special Counsel Robert Mueller was said to have impanelled a grand jury in the ongoing Russia probe.
  • The S&P 500 and the Nasdaq composite fell to session lows on the report, but managed to cut some of those losses before the close.
  • The Dow climbed less than 10 points to notch a fresh record.
  • The U.S. jobs report for July may show the economy is on a steady trajectory and the labor market is staying tight, according to Bloomberg Intelligence.

Europe

  • Europe shares ended higher as Bank of England holds rates; Nestle down nearly 6 percent.
  • FTSE ended higher 0.85 percent at 7,474.77; CAC up around 0.46 percent at 5130.49, while DAX lost over 0.22 percent to close at 12,154.72.

Asian Cues

  • Asian stocks decline in early trade as investors await U.S. jobs data
  • Japan’s Topix index slid 0.3 percent and Australia’s S&P/ASX 200 Index lost 0.2 percent. South Korea’s Kospi recovered some of Thursday slide, rising 0.5 percent. Futures on Hong Kong’s Hang Seng Index added 0.2 percent.
  • The SGX Nifty, an early indicator for Nifty 50’s performance in India, declined 0.67 percent to 10,013.

Commodity Cues

  • Brent crude trades at $52.02 a barrel
  • WTI crude trades flat to positive at $49.04 a barrel
  • Crude futures settled flat as investors looked ahead to an OPEC meeting next week for fresh insight into the oil cartel's commitment to improve compliance with the deal to curb production
  • Spot Gold little changed at $1269.42 an ounce
  • ICE Sugar ended lower for a third straight session at 14.31 U.S. cents a pound, down 3.25 percent

Indian ADRs

Nifty Results Today

  • Mahindra and Mahindra

Other Results Today

  • HPCL
  • Apollo Tyres
  • Arvind
  • Berger Paints
  • Chennai Petroleum
  • Dabur
  • Fortis Healthcare
  • Indian Hotels
  • MRF
  • Repco Home Finance
  • Sobha
  • VRL Logistics
  • Aban Offshore
  • Alphageo
  • Andhra Bank
  • Atlas Cycles (Haryana)
  • Deep Industries
  • Eid Parry India
  • Graphite India
  • GNFC
  • GSFC
  • Kirloskar Oil Engines
  • Monsanto India
  • Rossell India
  • RPG Life Sciences
  • Saregama India
  • Shriram Pistons & Rings
  • Sundaram Brake Linings
  • Trigyn Technologies
  • TTK Healthcare

Results Announced

Majesco (Q1FY18, YoY)

  • Net loss of Rs 5 crore
  • Revenue down 17.2 percent at Rs 183 crore

Ujjivan (Q1FY18, YoY)

  • Revenue down 2.7 percent at Rs 323 crore
  • Net loss of Rs 75 crore
  • NII at Rs 138.22 crore, a decrease of 19.66 percent

Bombay Burmah (Q1FY18, YoY)

  • Revenue down 20 percent at Rs 54 crore
  • EBITDA up 161 percent at Rs 3.65 crore
  • EBITDA margin expanded to 7 percent from 2.1 percent
  • Net loss of Rs 1.7 crore

CEAT (Q1FY18 YoY)

  • Revenue down 1 percent at Rs 1,629 crore
  • EBITDA down 70 percent at Rs 56 crore
  • EBITDA margin contracted to 3.8 percent from 12.6 percent
  • Profit down 99 percent at Rs 1.4 crore

PNB Housing Finance (Q1FY18, YoY)

  • Revenue up 38 percent at Rs 1,192 crore
  • Profit up 93 percent at Rs 185 crore
  • Provisions down 28.4 percent at Rs 48 crore (QoQ)
  • Gross NPA at 0.43 percent
  • Net NPA at 0.33 percent

Enkei Wheels (Q1FY18, YoY)

  • Net profit down 37.8 percent at Rs 2.3 crore
  • Revenue up 12.8 percent at Rs 125 crore
  • EBITDA up 75.8 percent at Rs 11 crore
  • Margin at 9.8 percent

JK Lakshmi Cement (Q1FY18, YoY)

  • Net profit down 1 percent at Rs 28.3 crore
  • Revenue up 15 percent at Rs 1,003 crore
  • EBITDA up 2.4 percent at Rs 115 crore
  • Margin at 12.7 percent

Kokuyo Camlin (Q1FY18, YoY)

  • Revenue down 13 percent at Rs 170.5 crore
  • EBITDA down 86 percent at Rs 1.5 crore
  • EBITDA margin contracted to 1 percent
  • Net loss of Rs 1.25 crore

Ramco Systems (Q1FY18, YoY)

  • Revenue up 0.3 percent at Rs 110 crore
  • EBITDA down 34.5 percent at Rs 9.1 crore
  • EBITDA margin contracted to 8.3 percent from 12.7 percent
  • Net loss of Rs 3 crore

Stocks To Watch

  • Biocon gets Form 483 with 10 observations from U.S. FDA for Bangalore plant
  • Infosys to acquire London based Brilliant Basics
  • Tata Global to sell Russian business to Skodnya Grand
  • JBF Industries Board to discuss the sale or restructuring of its overseas subsidiaries on August 10
  • Mercator Ltd. in talks to acquire Dredging Corp (Mint)
  • M&M to sell 96.6 lakh shares in Mahindra Logistics via IPO
  • Tata Chemicals cancels deal to acquire Unnati Inorganics operations for Rs 34 crore
  • NCLT to pronounce order on Reliance Communication case on August 10
  • BPCL increases commission offered to dealers up to 50 percent
  • Will take appropriate steps in insider trading case, says 63 Moons (Financial Technologies)

Bulk Deals

  • Goodyear: Goldman Sachs India Fund bought 2.41 lakh shares (1 percent) at Rs 907.49 each
  • Infibeam: LTS Investment Fund sold 3.63 lakh shares (0.7 percent) at Rs 1412.93 each. According to June 2017 filing, LTS Investment Fund’s holding in the company stood at 1.42 percent
  • Genesys International: Oikos India sold its entire holding of 7 lakh shares (2.28 percent) at Rs 231 per share

Primary Market Action

Top Performers This Month

  • Rashtriya Chemicals and Fertiliser: +11.8%
  • Edelweiss Financial Services: 10.4%
  • Avanti Feeds: +9%
  • VIP Industries: +7.8%
  • Caplin Point Laboratories: +7.5%

Worst Performers This Month

  • Jaiprakash Associates: -15%
  • Unitech: -13.8%
  • Reliance Communications: -12%
  • Hindustan Copper: -10.5%
  • DB Realty: -9.2%

Index Play

F&O Cues

  • Nifty futures premium moves to 29 points from 19 points earlier
  • Bank Nifty sheds 2.4 lakh shares, open interest down 9 percent
  • Nifty range for August series in terms of open interest concentration between 10,000 to 10.500
  • Maximum open interest on Put side at 10,000 strike, open interest at 46.2 lakh shares
  • Maximum open interest on Call side at 10,500 strike; open interest at 41 lakh shares
  • Call strikes 10,100, 10,200, 10,300 and 10,500 see open interest addition
  • 10,000 Put open interest falls 4 percent

F&O Ban

  • In ban: India Cements, JPA, JSW Energy, Kaveri Seed, Wockhardt
  • New in ban: India Cements, Kaveri Seed,
  • Out of ban: Indiabulls Real Estate
  • Alert: No fresh positions can be taken stocks under F&O ban

PCR

  • Nifty PCR moves to 1.21 from 1.26
  • Nifty Bank PCR moves to 0.96 from 0.84
  • Alert: A higher PCR indicates a bullish trend

Stocks Seeing High Open Interest Change

  • Infibeam sees open interest addition of 31 percent on long side
  • Infratel sees open interest addition of 23 percent on long side
  • Fortis sees open interest addition of 21 percent on long side
  • Cummins sees open interest addition of 13 percent on short side
  • JSPL sees open interest addition of 11 percent on short side
  • Lupin sees open interest addition of 11 percent on short side

Fund Flows

  • FIIs in cash market: Bought Rs 24 crore (NSE provisional data)
  • DIIs in cash market: Sold Rs 389 crore (NSE Actual)
  • FIIs in cash market: Bought Rs 568 crore (Wednesday; data from NSDL)
  • FIIs in the F&O market: Bought Rs 163 crore (NSE Actual)
  • FIIs in the cash market: Sold 328 crore so far this month
  • DIIs in the cash market: Bought Rs 769 crore so far this month

Brokerage Radar

IDFC On Colgate

  • GST transition better managed but market share loss continues
  • Factoring a strong volume recovery in the remainder of FY18
  • Maintain Underperformer rating as valuations at 40 times FY19e seem stretched

JPMorgan On Colgate

  • Trade incentives being given pre-GST aided faring better than peers
  • Expect volume growth to revive in subsequent quarters

Morgan Stanley On Colgate

  • Concerns about competition from ayurvedic/herbal/natural category
  • Peak gross margin is another concern
  • Least-preferred stocks in coverage universe

UBS On Colgate

  • Reiterate Buy rating on the stock with a price target of Rs 1250
  • Innovation pipeline continues to look promising

Edelweiss On Titan

  • Management raises FY18, FY19 growth guidance to 25 percent from 18 percent
  • Stock can re-rate further fuelled by GST-led share gains

Goldman Sachs On Titan

  • Raise target price to Rs 600 from Rs 552 earlier; maintain Buy rating
  • Expect the company to deliver a 29 percent EBITDA CAGR between FY17-20
  • Increase FY18-20e earnings per share by 2-5 percent to reflect higher sales, margins

IDFC On Titan

  • Upgrade to Neutral, target price at Rs 559
  • Akshay Tritiya and GST-led sales advancements drives strong growth in jewellery
  • Rescheduling of brand activation impacts revenue growth for watches
  • Weakness in sunglasses business continues to impact eyewear revenue

JPMorgan On Titan

  • Raise target price to Rs 620 from Rs 540; maintain Overweight rating
  • Expect gradual recovery in watches and sunglasses division

Credit Suisse On Cummins

  • Weak results with substantial decline in profits; margins affected
  • Weak FY18 outlook on exports; guides for flat to 5 percent decline
  • 10 percent growth guidance for domestic driven by a positive outlook on power-gen
  • Competitive pressure from Perkins/Kirloskar affecting margins

Citi On IOC

  • Headline beat, operationally in line; QTD trends stronger
  • Maintain Buy on all three oil marketing companies

Credit Suisse On IOC

  • Paradip stabilisation promising while diesel market share loss accelerated in first quarter

Deutsche Bank On IOC

  • Inventory loss offsets benefits from refining capacity expansion
  • Maintain Buy on increase in refining segment contribution and improvement in marketing segment contribution

HSBC On IOC

  • Results in line but upside remains limited
  • See earnings from the marketing business as a steady and structural growth story

IDFC On IOC

  • Key positive: Robust growth in refining throughput and core GRMs
  • Key negative: Decline in marketing margins, high inventory losses

Morgan Stanley On IOC

  • Top refinery pick in Asia
  • Earnings should raise investor confidence for retail fuel margins

Deutsche Bank On Ramco Cement

  • Maintain Buy rating, Target price at Rs 790
  • Improving demand and cost-saving measures to drive earnings
  • South India market expected to improve, new split grinding units to aid margin

Brokerages On Lupin Post Earnings Call

  • Centrum: Cut target price to Rs 1,035 from Rs 1,300
  • Citi: Cut target price to Rs 1,170 from Rs 1,350
  • Deutsche Bank: Cut target price to Rs 945 from Rs 1,268
  • Goldman Sachs: Cut target price to Rs 1,120 from Rs 1,225
  • HSBC: Cut target price to Rs 1,205 from Rs 1,395
  • IDBI Capital: Downgrade to Reduce, Cut target price to Rs 881 from Rs 1,272
  • JPMorgan: Cut target price to Rs 1,025 from Rs 1,275
  • Morgan Stanley: Cut target price to Rs 1,224 from Rs 1,472
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