Monitoring stocks at an Indian brokerage firm (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On September 11

Asian stocks rose with U.S equity-index futures and the dollar rebounded from its lowest in more than two years as hurricane Irma’s force waned and as the United Nations prepared to vote on tougher North Korean sanctions.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.36 percent to 9,982 as of 7:25 a.m.

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

Global Cues

  • U.S. stock futures edged higher as Hurricane Irma came ashore in Florida weaker than anticipated and the perceived threat of a North Korean missile test failed to materialize.

Asian Cues

  • The Topix index advanced 1.3 percent, while South Korea’s Kospi index was up 1 percent. The S&P/ASX 200 Index rose 0.5 percent.
  • Hong Kong Hang Seng Index futures fell 0.1 percent.

Commodity Cues

  • West Texas Intermediate crude added 0.5 percent to $47.73 a barrel in early trading after losing 3.3 percent on Friday.
  • Gold declined 0.7 percent to $1,337.45.

Shanghai Exchange

  • Steel trades lower for fifth consecutive session; down 2.7 percent
  • Aluminium trades lower for fifth day; down 1.61 percent
  • Zinc trades lower; down 2.27 percent
  • Copper trades lower for fourth day; down 2.63 percent
  • Rubber continues its losing streak for second day; down over 3.5 percent

Indian ADRs

Earnings To Watch

  • Advanced Enzymes
  • Andrew Yule
  • Cochin Shipyard
  • Dolphin Offshore
  • Gloster, Indian Toners
  • Mawana Sugars
  • Multibase
  • Neuland Labs
  • Schneider Electric

Earnings Reaction To Watch

Asian Oilfields (Q1FY18 YoY)

  • Revenue up more than 5 times to Rs 51 crore versus Rs 9 crore
  • EBITDA at Rs 12 crore versus Rs 3 crore
  • Margin at 23.5 percent versus -33.3 percent
  • Net profit of Rs 11 crore versus net loss of Rs 6 crore

Federal Mogul (Q1FY18 YoY)

  • Revenue up 0.5 percent at Rs 366 crore versus Rs 364 crore
  • EBITDA up 18.4 percent at Rs 51.5 crore
  • Margin at 15.7 percent versus 13.2 percent
  • PAT up 29.4 percent at Rs 22 crore

Everest Kanto (Q1FY18 YoY)

  • Revenue down 14 percent at Rs 125 crore
  • EBITDA down 50 percent at Rs 5 crore
  • Margin at 4.1 percent versus 7.1 percent
  • Net loss of Rs 15.3 crore versus net loss of Rs 15.8 crore

Kirloskar Electric (Q1FY18 YoY)

  • Revenue down 37 percent at Rs 103 crore
  • EBITDA loss at Rs 18 crore versus EBITDA profit of Rs 3.52 crore
  • Margin at -19.1 percent versus 2.7 percent
  • Net loss of Rs 24 crore versus net profit of Rs 2 crore
  • Other income of Rs 11 crore in base quarter

Linc Pens (Q1FY18 YoY)

  • Revenue down 20.6 percent at Rs 67.5 crore
  • EBITDA down 66.7 percent at Rs 3 crore
  • Margin at 4.4 percent versus 10.6 percent
  • PAT down 87.5 percent at Rs 50 lakh

Omax Auto (Q1FY18 YoY)

  • Revenue down 9.8 percent at Rs 275 crore
  • EBITDA loss at Rs 13.5 crore versus EBITDA profit Rs 10 crore
  • Margin at -5.5 percent versus 3.7 percent
  • Net loss of Rs 22 crore versus net profit of Rs 30 lakh

Poddar Housing (Q1FY18 YoY)

  • Revenue down 64 percent at Rs 4 crore
  • EBITDA loss at Rs 3 crore versus -1 Crore
  • Margins at -75 percent versus -9.1 percent
  • Net loss of Rs 2.3 crore versus net profit of Rs 1.2 crore

Salzer India (Q1FY18 YoY)

  • Revenues up 16 percent at Rs 115 crore
  • EBITDA down 7 percent at Rs 10.5 crore
  • Profit down 6 percent at Rs 4.1 crore
  • Margin 9.1 percent versus 11.4 percent

APL Apollo Tubes (Q1FY18 YoY)

  • Revenue up 19 percent at Rs 1,301 crore
  • Net profit down 11 percent at Rs 38.8 crore
  • EBITDA down 16 percent at Rs 61.2 crore
  • Margin at 5.30 percent versus 7.50 percent

Stocks to Watch

  • Century Textiles may explore merger with Grasim after sale of paper division
  • Auto companies in focus on back of increase in cess for big cars and sport utility vehicles
  • Idea Cellular to seek shareholders' nod on October 12 for merger with Vodafone
  • Mahindra & Mahindra launches three-wheeler e-Alfa mini electric rickshaw at Rs 1.12 lakh (ex-showroom Delhi)
  • IL&FS Engineering gets contract termination letter from Paschimanhal Vidyut Vitran Nigam Ltd. Company initiates legal action against termination.
  • Religare Enterprises to divest its stake in Cerestra Advisors for Rs 5.73 crore
  • Onward Technologies enters into a partnership with Dassault Systemes to expand its offerings from engineering services to industry solutions.
  • Shreyas Shipping & Logistics takes delivery of multipurpose vessel. Fleet size rises to 11.
  • RBL Bank partners with LIC Mutual Fund for the launch of its new digital product – Insta Redemption Solution
  • Andhra Bank, Oriental Bank, Syndicate Bank revise marginal cost of funds based lending rate (MCLR)
  • Monsanto to sell its branded cotton seed business to Tierra Agrotech
  • National Company Law Tribunal (NCLT) approves scheme of merger between Sun Pharma and Sun Pharma Medisales, Ranbaxy Drugs, Gufic Pharma and Vidyut Investments
  • Supreme Court refuses to grant interim bail to Unitech promoter Sanjay Chandra
  • Optic fibre companies will be in focus as government to spend Rs 18,792 crore on Phase II of BharatNet
  • Jenburkt Pharmaceuticals board approves buyback of equity shares worth Rs 12 crore at 576 each
  • Shapoorji Pallonji, SSG Capital plan joint bid for Jyoti Structures (Mint)
  • Bharti Airtel in talks with handset companies for Rs 2,500 4G smartphone (Economic Times)
  • IDBI Bank: Supreme Court to hear bank's plea regarding Jaypee Infratech insolvency proceedings today.
  • Future group stocks: Kishore Biyani sets sights on HyperCity to build bigger bazaar in future (Economic Times)

IPO Watch

  • Dixon Technologies IPO closes. Subscription at 117.8 times
  • Bharat Road Network IPO closes. Subscription at 1.8 times
  • Matrimony.com IPO opens. Issue price Rs 983-985.

Brokerages on Matrimony.com

  • Motilal Oswal: Subscribe for long-term due to leadership positioning, limited competition and expected pick up in earnings. On annualised EPS based on Q1FY18 earnings, issue is available at P/E of 38 times.
  • KRChoksey: Subscribe rating given the nature of an internet company, leading position in the online match-making services industry, presence in a promising industry and higher profitability compared to peers.
  • IIFL: Subscribe for listing gains. IPO proceeds to be utilised for higher revenues and lower operating costs. Focused expansion of marriage services could also help the company move up the value chain.
  • Angel Broking: Subscribe for mid-to-long-term period. Expect the company to perform better considering strong brand value, leadership position, robust technology, strong user data base and expansion into marriage services.

Bulk Deals

63 Moons Technologies

  • Blackstone GPV Capital Partners (Mauritius) VI FII Ltd, sold 9.8 lakh shares (2.1 percent) at Rs 78.14 each

Gulf Oil Lubricants India

  • Promoters Gulf Oil International (Mauritius) Inc. bought 6.91 lakh shares (1.4 percent) at Rs 777 each
  • IAM Ltd sold 6.91 lakh shares (1.4 percent) at Rs 777 each

Who's Meeting Whom?

  • State Bank of India met Premji Invest on Sept 7
  • Cox & Kings met Axis Capital on Sept 7
  • Solar Industries met ASK, Reliance MF, UTI MF, Fidelity, White Oak, Principal MF on Sept 7
  • Solar Industries met Goldman Sachs and ICICI Prudential MF on Sept 8
  • Salasar Tech met Ventura, Nirmal Bang, Principal MF, Lucky Investments, Jefferies on Sept 7-8
  • RBL Bank held telephonic call with Hosking Partners on Sept 8
  • Yes Bank met several FII investors in New York on Sept 8
  • Chartered Logistics spoke at Truck, Trailer and Tyre Expo on Sept 10
  • Zee Entertainment will be making presentation at CLSA IR Conference on Sep 11
  • Kalpataru Power will meet ICICI Securities, Edelweiss Sec and Shubhkam Ventures on Sept 12
  • Eris Life will meet ADIA on Sept 11; Fidelity and Deloitte on Sept 12
  • Ador Welding will be meeting investors on Sept 13
  • Escorts will be meeting analysts in U.S. from Sept 11-15
  • Phillips Carbon Black will be meeting investors in U.S. from Sep 11 - 13
  • Tata Motors will meet Pleiad Advisors, Citibank, Phillip Capital, JPMorgan and Nomura from Sept 11-14
  • Biocon will meet investors in Hong Kong and Singapore from Sept 11-14

Rupee Check

  • Rupee ends at 63.78 per dollar -- highest level since August 9 -- versus 64.05 on Thursday

Top Performers Last Week (NSE 500)

  • Himachal Futuristic Communication: +31.4%
  • Future Consumer: +29.1%
  • Bombay Dyeing: +27.6%
  • Kolte-Patil Developers: +25.9%
  • Jai Corp: +23.9%

Worst Performers Last Week (NSE 500)

  • Kwality: -16.8%
  • Religare Enterprises: -10.5%
  • Vijaya Bank: -10.4%
  • Idea Cellular: -10.3%
  • 8K Miles Software Services: -9.9%

Index Trends

F&O Cues

  • Nifty Sept Futures closed with a premium of 15 points versus 24.7 points
  • Sept Nifty Futures OI up 1 percent
  • India VIX closed marginally lower by 0.35 percent at 12.9
  • Sep series highest Call base at 10000 (OI at 47.3 lakh)
  • Sep series highest Put base at 9700 (OI at 52.9 lakh, OI up 5 percent)
  • Call strikes 9,900, 10,100 see OI addition
  • Put strikes 9,800, 9,900, 10,000 see OI addition

F&O Ban

  • In Ban: DHFL, Indiabulls Real Estate, JSW Energy, Just Dial
  • New In Ban: DHFL
  • Out of Ban: Nil

Alert: Only intraday positions can be taken in stocks which are in F&O ban, incase of rollover there is a penalty

PCR

  • Nifty PCR at 1.37 versus 1.35
  • Nifty Bank PCR at 1.15 versus 0.99

STOCKS SEEING HIGH OI CHANGE

  • Amara Raja sees OI addition of 35 percent on long side
  • Oil India sees OI addition of 35 percent on long side
  • Power Grid Corp. sees OI addition of 15 percent on short side
  • Kajaria Ceramics sees OI addition of 14 percent on long side
  • Repco Home sees OI addition of 13 percent on short side
  • M&M sees OI addition of 12 percent on short side
  • Dish TV sees OI addition of 10 percent on short side
  • PVR sees OI addition of 9 percent on long side
  • Ramco Cement sees OI shedding of 11 percent, long unwinding seen

Fund Flows

Brokerage Radar

Morgan Stanley on CG Power and Industrial Solutions

  • Maintain Equalweight; hiked target price to Rs 94 from Rs 60
  • Target price hiked to factor in higher valuation multiple given expansion
  • Progress on international business restructuring is positive
  • Expect order inflows to improve gradually
  • Expect margins to be at 7.1 percent for remaining FY18
  • EPS estimates cut by 32 percent and 8 percent for FY18 and FY19 respectively

HSBC on Dr. Reddy’s

  • Maintain Hold; hiked target price to Rs 2,430 from Rs 2,286
  • Target price hiked to factor in Suboxone sales from end of FY19
  • U.S. outlook depends on launches in FY19
  • EPS estimates for FY19 and FY20 increased by 6 percent and 8 percent respectively
  • Earlier guidance of 10-12 U.S. launches in FY18 unlikely

Edelweiss on Apar Industries

  • Maintain Buy and target price of Rs 990
  • Revenue, EBITDA and Net Profit to grow at CAGR of 12 percent, 15 percent and 20 percent respectively over FY17-19
  • Structural outlook for FY19 remains strong
  • To gain from government's focus on power transmission and distribution
  • GST implementation to result in savings of Rs 30 crore over longer term in oil and cable segment

IDFC Securities on Suzlon

  • Maintain Outperform and target price of Rs 28
  • Suzlon to have the leading market share in wind auctions
  • Net profit to grow at CAGR of 17 percent over FY17-19
  • Orders from international market to contribute from FY19
  • Estimates 2.5-3/5-6 gigawatt of wind market in FY18/19

HSBC on Phoenix Mills

  • Maintain Buy and target price of Rs 580
  • Acquisition of Mumbai and Pune assets value accretive and gives unrestricted control
  • Company to benefit from boom in India's retail sector
  • Company's mall preferred destinations for new brands entering India
  • Rental income, Net Profit to grow at CAGR of 13 percent and 30 percent respectively over FY17-19

Credit Suisse on HDFC Bank

  • Maintain Outperform with target price of Rs 1,955
  • Gaining market share with zero impact on asset quality
  • Savings rate cut to keep net interest margins stable
  • Digitisation to drive moderation in cost
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