Employees monitor stocks at a brokerage firm in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On August 18

Asian stocks extended a global slide after terrorists struck a crowded tourist street in Barcelona, exacerbating unease triggered by mounting concerns about dysfunction in President Donald Trump’s administration and U.S. policy paralysis.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 index’s performance in India, declined 0.6 percent to 9,849 as of 6:57 a.m.

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

Global Cues

U.S. stocks retreated, with the S&P 500 Index posting its second biggest one-day decline of the year, and a measure of market volatility spiked higher.

  • European stocks broke a three-day winning run, dragged lower by bank shares, while the euro weakened as minutes from the region’s last central bank meeting revealed worries among officials that the currency could overshoot.
  • The Stoxx Europe 600 index fell 0.6 percent to 3,76.87.

Asian Cues

  • Japan’s Topix index fell 0.9 percent, Australia’s S&P/500 Index was down 0.7 percent and the Kospi index declined 0.3 percent. Contracts on Hong Kong’s Hang Seng Index were down 0.3 percent.

Commodity Cues

  • West Texas Intermediate crude fell 0.2 percent on Friday to $46.99 a barrel, heading for a 3.7 percent slump on the week.
  • Spot gold trades lower at $1286.27 an ounce; down 0.15 percent
  • ICE sugar ended higher at 13.29 cents a pound, up 2.7 percent

Shanghai Exchange

  • Steel trades higher for second day; up 0.37 percent
  • Aluminium trades lower; down 1.73 percent
  • Zinc trades higher for four consecutive session; up 0.31 percent
  • Copper trades lower; down 0.57 percent
  • Rubber trades lower after closing higher for three trading session; down 1.08 percent

Indian ADRs

All You Need To Know Going Into Trade On August 18

Results Today

  • Aarti Drugs
  • Automotive Axles
  • Castex Tech
  • IOC Chemicals
  • JMT Auto
  • Modi Rubber
  • Monte Carlo Fashions
  • Premier Explosives
  • RPP Infra
  • V Mart Retail

Results Announced

Dish TV (Q1FY18, YoY)

  • Revenue fell 5.1 percent to Rs 738.9 crore
  • EBITDA declined 23 percent to Rs 201.2 crore
  • EBITDA margin narrowed to 27.2 percent from 33.5 percent
  • Reported a net loss of Rs 11.67 crore compared to a profit of Rs 37.7 crore

Apcotex Industries (Q1FY18, YoY)

  • Revenue fell 12.9 percent to Rs 132 crore
  • EBITDA declined 19.8 percent to Rs 8.5 crore
  • EBITDA margin stood narrowed to 6.4 percent from 9.1 percent
  • Net profit was 37.5 percent lower at Rs 5 crore

Talbros Engineering (Q1FY18, YoY)

  • Revenue grew 20.5 percent to Rs 50 crore
  • EBITDA went up 88.5 percent to Rs 4.9 crore
  • EBITDA margin expanded to 10.7 percent from 8.5 percent
  • Net profit rose 60 percent to Rs 2 crore

Stocks To Watch

  • IndusInd Bank cuts some savings deposit rates by 100 basis points
  • PNB to cut rates for up to Rs 50 lakh saving accounts by 50 basis points
  • Dish TV to transfer of Videocon Infra support undertaking to subsidiary Dish Infra
  • Somany Ceramics to set up a manufacturing facility in Andhra Pradesh
  • Raymond sells its glove business to Pacific Dunlop for Rs 11.3 crore
  • Raymond acquires JK Ansell’s stake in sexual wellness brand Kamasutra for Rs 19.30 crore
  • Manaksia Industries to set up a subsidiary in Bangladesh, Sri Lanka and Georgia
  • Government cuts duty drawback rates for gold, silver jewellery
  • SpiceJet deposits Rs 329 crore in share transfer dispute with Kalanithi Maran
  • ICICI Lombard General expects SEBI nod for IPO in 2-3 weeks
  • Rajasthan government signs joint venture pact with HPCL for Barmer refinery
  • IIFL AMC buys 2.59 percent in Reliance Nippon Life Asset Management
  • Mindtree buy back starts today; to remain open until September 1
  • UFO Moviez meets Centrum, Quantum Securties and Premji Investment
  • BSE, NSE to suspend trading in United Breweries Holding from September 8 on account of “non-compliance with financial results and non- payment of fine for two consecutive quarters".

Bulk Deals

Huhtamaki PPL

  • HDFC Mutual Fund sold 37.8 lakh shares (5 percent) at Rs 230 each
  • NT Asian Discovery Fund bought 34.5 lakh shares (4.6 percent) at Rs 230 each

Standard Chartered

  • Credit Suisse First Boston (Singapore) sold 1.24 lakh shares at Rs 59 each
  • Citigroup Global Markets Mau bought 1.24 lakh shares at Rs 59 each

Aarvee Denim

  • DEG-Deutsche sold 17.62 lakh shares (7.5 percent) at Rs 29.62 each on an average

Top Performers This Month

  • PC Jeweller: Up 39.7 percent
  • Edelweiss Financial: Up 24.4 percent
  • Future Retail: Up 21.1 percent
  • Radico Khaitan: Up 19.2 percent
  • Avanti Feeds: Up 16.5 percent

Worst Performers This Month

  • Religare Enterprises: Down 32.5 percent
  • HDIL: Down 29.2 percent
  • J Kumar Infraprojects: Down 27.1 percent
  • Nitin Fire: Down 23.8 percent
  • JBF Industries: Down 22.3 percent

Index Trends

All You Need To Know Going Into Trade On August 18

F&O Cues

  • Nifty Futures added 13.9 lakh shares in open interest, premium down to 5 points from 8 points earlier.
  • Bank Nifty Futures shed 1 lakh shares in open interest
  • Maximum Call open interest at 10,000 at 53.6 lakh shares
  • Maximum Put open interest at 9800 at 64 lakh shares
  • Call strikes 9800, 10000 see unwinding of open interest
  • Put strikes 9800 & 9900 see open interest addition

F&O Ban

  • In Ban: Fortis, HDIL, IBREL, JP Associates, JSW Energy
  • No changes to F&O Ban list
  • No fresh positions can be taken stocks under F&O ban

Put-Call Ratio

  • Nifty PCR moves to 1.21 from 1.18
  • Nifty Bank PCR moves to 0.87 from 1.5
  • A higher PCR indicates a bullish trend

Stocks Seeing High Open Interest Change

  • Hexaware sees open interest addition of 24 percent on long side
  • BEML sees open interest addition of 22 percent on long side
  • Apollo Hospital sees open interest addition of 13 percent on short side
  • Motherson Sumi sees open interest addition of 12 percent on short side
  • HDFC sees open interest addition of 12 percent on long side
  • Berger Paints sees open interest addition of 11 percent on short side
  • Coal India sees open interest addition of 10 percent on long side

Fund Flows

  • Foreign institutional investors (FIIs) net sold Rs 981 crore in cash market as per NSE provisional data
  • Domestic institutional investors (DIIs) net bought Rs 829 crore in cash market as per NSE data
  • FIIs net bought Rs 264 crore in the F&O segment, as per NSE data
  • FIIs have net sold Rs 5,180 crore in cash market so far this month
  • DIIs have net bought Rs 10,069 crore in cash market so far this month

Brokerage Radar

On Yes Bank

  • Goldman Sachs: 'Buy' with a target of Rs 1,875. Cutting interest rate to improve the retail franchise, which in turn should drive the earnings and valuations of the bank. Estimate 3-9 basis points positive impact on net interest margins.

On AU Small Finance

  • Citi: Initiate coverage with a 'Neutral' rating; target at Rs 600. The stock looks fairly valued; AUM/credit cost at 30 percent/31 percent and 1.65 percent/1.55 percent for FY18/FY19. Valuations to limit upside, given pressure on earnings for the next 4-6 quarters

On KNR Construction

  • Nomura: Retains Buy; target price hiked to Rs 287 from Rs 227 earlier. Hike EPS estimates for FY18/19F by 16 percent/4 percent. High order book opportunities over FY18-20. Says order inflow of Rs 2,500 crore achievable.

On Dish TV

  • Motilal Oswal: Buy with a target of Rs 106. Margin recovery expected in FY18 led by content cost reduction and synergy gains from the merger.
  • IDFC: Retains Neutral but target cut to Rs 92 from Rs 95. FY18E/19E EBITDA cut by 7.3 percent/7.7 percent. ARPU up move started; expect this to sustain for the next three-quarters. Merger to yield both revenue and cost synergies.
  • CLSA: Retains Buy but cuts target price to Rs 97 from Rs 112. EBITDA estimates cut by 10-11 percent led by a 2-4 percent cut in subscriber and ARPU estimates. Expect EBITDA CAGR of 6 percent over FY17-20 (pre-merger).
  • Goldman Sachs: Neutral with a target of Rs 80. FY17-19E EPS cut by 21 percent-2 percent. Long-term outlook to stay challenged given competition from FTA, and easier/cheaper access to online content.
  • Morgan Stanley: Says revenue growth in FY18 will be volume led, while GST will aid margin expansion, albeit lower than earlier expected.

On Infosys

  • CLSA: Buyback to take at least another 4 months to complete. Expect 10 percent-20 percent premium to drive a 4.8 percent-5.3 percent acceptance ratio. ROE to increase by 550 basis points to 24.4 percent in FY19 and its payout ratio in FY18 should be 155 percent.