All You Need To Know Going Into Trade On November 2

The dollar headed lower as investors digest news that President Donald Trump will pick Jerome Powell to lead the Federal Reserve. Asian stocks, meanwhile, paused after the rally that drove prices to the highest level in ten years showed signs of tiring as U.S. equity-index futures declined.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.20 percent to 10,465 as of 7:00 a.m.

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

Global Cues

• Most U.S. stocks advanced and the dollar rose after the Federal Reserve acknowledged economic growth is solid.
• Federal Reserve officials voted unanimously to leave interest rates unchanged while signaling they remain on track to hike once more this year.
• Small caps fell as the prospects for tax reform remained uncertain amid political wrangling in Congress.

Asian Cues

• Japan’s Topix was little changed, trading near the highest since July 2007.
• Australia’s S&P/ASX 200 Index was flat and South Korea’s Kospi index slid 0.1 percent.
• Futures contracts on Hong Kong’s Hang Seng Index were little changed.
• Futures on the S&P 500 were down 0.3 percent.

Here are some key upcoming events this week:

• Trump starts an 11-day trip to Asia, his first as president, on Friday. Trade and security issues -- particularly North Korea -- will probably be in focus.
• The slew of earnings releases will culminate with Apple Inc. results.

Commodity Cues

• West Texas Intermediate crude slipped 0.1 percent to $54.25 a barrel.
• Gold was up 0.2 percent to $1,277.46 an ounce.
• The Bloomberg Commodity Index rose to the highest level since March on Wednesday.
• Nickel rose as much as 6 percent to $13,030 a metric ton on the London Metal Exchange, the highest since June 2015. That added to Tuesday’s 5.3 percent gain after Trafigura Group Pte joined Glencore Plc in unveiling bullish usage forecasts. In Shanghai, prices climbed by the daily limit.

Shanghai Exchange

• Steel trades higher for third day; up 1 percent
• Aluminium trades lower; down 0.73 percent
• Zinc snaps two-day winning streak; down 0.6 percent
• Copper trades lower; down 0.04 percent
• Rubber trades higher for second day; up 0.88 percent

Indian ADRs

Nifty Results Today

• Vedanta
• Power Grid Corporation

Other Results Today

• Berger Paints
• Cera Sanitaryware
• Edelweiss
• Ge T&D India
• Glenmark Pharmaceuticals
• HCC
• ICRA
• Natco Pharma
• Shriram City Union Finance
• Ujjivan Financial Services
• Accelya Kale Solutions
• Akzo Nobel India
• Andhra Bank
• Bharat Road Network
• Borosil Glass Works
• CCL Products
• Deepak Fertilizers
• Orient Cement
• Sundram Fasteners
• Ramco Cements
• Transport Corporation Of India

Results Announced

TCI Express (Q2FY18, YoY)

• Revenue up 10.3 percent at Rs 204 crore.
• Profit up 30 percent at Rs 13 crore.
• EBITDA up 19.9 percent at Rs 19.9 crore.
• Margin at 9.75 percent versus 8.97 percent.

Ramco System (Q2FY18, QoQ)

• Revenue up 4.5 percent at Rs 115 crore.
• Profit of Rs 6.5 crore versus Net loss of Rs 3 crore.
• EBIT at Rs 12.3 crore versus EBIT loss of Rs 2.9 crore.
• Margin at 10.69 percent versus -2.6 percent.

GE Power (Q2FY18, YoY)

• Revenue down 45 percent at Rs 262 crore.
• Profit of Rs 6.6 crore versus net loss of Rs 97 crore.
• EBITDA loss at Rs 1.5 crore versus EBITDA loss of Rs 116 crore.
• Margin at -0.57 percent versus -24.19 percent.

Hikal (Q2FY18, YoY)

• Revenue up 25.6 percent at Rs 292 crore.
• Profit down 6 percent at Rs 15.3 crore.
• EBITDA up 13.8 percent at Rs 53.5 crore.
• Margin at 18.3 percent versus 20.2 percent.

ABC Bearings (Q2FY18, YoY)

• Revenue up 20.5 percent at Rs 47 crore.
• Profit up 43 percent at Rs 2 crore.
• EBITDA up 26.7 percent at Rs 7.6 crore.
• Margin at 16.2 percent versus 15.4 percent.

Ador Fontech (Q2FY18, YoY)

• Revenue up 1.01 percent at Rs 39.7 crore.
• Profit up 52.2 percent at Rs 3.5 crore.
• EBITDA up 14 percent at Rs 4.9 crore.
• Margin at 12.3 percent versus 10.9 percent.

Hexaware (Q3CY17, QoQ)

• Revenue up 0.9 percent at Rs 993 crore.
• Profit up 16.4 percent at Rs 142 crore.
• EBIT up 8 percent at Rs 157 crore.
• Margin at 15.8 percent versus 14.74 percent.

Hero MotoCorp (Q2FY18, YoY)

• Revenue up 7 percent at Rs 8362 crore.
• Profit up 0.6 percent at Rs 1010.5 crore.
• EBITDA up 6 percent at Rs 1456 crore.
• Margin at 17.4 percent versus 17.6 percent.

Eclerx Services (Q2FY18, QoQ)

• Revenue down 0.6 percent at Rs 331 crore.
• Profit up 12.65 percent at Rs 89 crore.
• EBIT down 4.5 percent at Rs 84 crore.
• Margin at 25.4 percent versus 26.4 percent.
• Exceptional gain of Rs 20.4 crore.

Apollo Tyres (Q2FY18, YoY)

• Revenue up 12.70 percent at Rs 3477 crore.
• Profit down 46 percent at Rs 140 crore.
• EBITDA up down 17 percent at Rs 364.5 crore.
• Margin at 10.5 percent versus 14 percent.

Max India (Q2FY18, YoY)

• Revenue down 5 percent at Rs 16.84 crore.
• Profit up 6 percent at Rs 2.12 crore versus Rs 2 crore.

Music Broadcast (Q2FY18, YoY)

• Revenue up 10 percent at Rs 76 crore.
• Profit down 7 percent at Rs 13 crore.
• EBITDA down 12 percent at Rs 25 crore.
• Margin at 33 percent versus 41 percent.

Apar Industries (Q2FY18, YoY)

• Revenue down 2.8 percent at Rs 1248 crore.
• Profit down 43.5 percent at Rs 26 crore.
• EBITDA down 11 percent at Rs 89 crore.
• Margin at 7.1 percent versus 7.7 percent.

Mahindra Holidays & Resorts (Q2FY18, YoY)

• Revenue down 5.8 percent at Rs 243 crore.
• Profit down 3.6 percent at Rs 31.7 crore.
• EBITDA down 11.5 percent at Rs 54 crore.
• Margin at 22.2 percent versus 23.6 percent.

Stocks To Watch

• Bharti Airtel to transfer optical fibre business to Telesonic Networks for an overall consideration of not more than Rs 5,650 crore.
• Government approved sale of entire 73 percent stake in Dredging Corporation.
• NBCC bagged reconstruction order worth Rs 400 crore.
• Tata Teleservices says NTT Docomo tendered its entire stake of 21.63 percent to Tata Sons.
• Asian Granito entered into a joint venture with Paramshree Granito Pvt Ltd for setting up a green field facility for Quartz stone.
• TVS Motor’s October sales rose 3 percent year-on-year.
• Shree Cements won a coal linkage auction for Chhattisgarh captive plant.
• Solar Industries bagged order worth Rs 1,143.63 crore from Coal India for supply of bulk explosives.
• JP Associates said RBI approved bond exchange plan and bondholders agreed to further extend the deadline to November 30.
• AU Small Finance Bank entered into an agreement with Cholamandalam MS for General Insurance Business as Corporate Agent.
• GOCL received order worth Rs 322 crore from Coal India for supply of bulk explosives.
• Kolte- Patil in talks with private equity investors to set up Rs 500 crore real estate platform (Mint).

Circuit Revisions

• Circuit filter revised to 10%: Butterfly Gandhimathi Appliances and Kavveri Telecom
• Circuit filter revised to 5%: Indowind Energy

Bulk Deals

Crompton Greaves Consumer

• Franklin Templeton Investment Fund bought 46.36 lakh shares or 0.7 percent equity stake at Rs 217.5 each.
• TIAA CREF Institutional MF International Equity Fund sold 68.13 lakh shares or 1.09 percent equity stake at Rs 217.5 each.

JB Chemicals & Pharmaceuticals

• ICICI Lombard General Insurance bought 20 lakh shares or 2.4 percent equity stake at Rs 288 each.
• Ashish Dhawan sold 19.52 lakh shares or 2.3 percent equity stake at Rs 288.12 each.

Mayur Uniquoters

• Small Cap World Fund bought 2.48 lakh shares or 0.5 percent equity stake at Rs 460.43 each.

A2Z Infra Engineering

• IL&FS Financial Services sold 9.43 lakh shares or 0.65 percent equity stake at Rs 38.05 each.

Bharat Wire Ropes

• Mentor Capital bought 23.36 lakh shares or 5.2 percent equity stake at an average of Rs 94.99 each .
• Aardee Multitrade sold entire stake of 15.53 lakh shares or 3.5 percent equity stake at Rs 95.99 each.
• Cosmos Prime Projects sold entire stake of 7.92 lakh shares or 1.8 percent equity stake at Rs 94 each.

Bhushan Steel

• EARC Trust SC 283 sold 44.36 lakh shares or 1.34 percent equity stake at an average Rs 60.4 each ..

Cholamandalam

• Norwest Ventures Partners X FII Mauritius sold 20.92 lakh shares or 1.3 percent equity stake at an average of Rs 1200.21 each.

Sinclair Hotels

• MCCS Investment Holding sold 3.51 lakh shares or 6.32 percent equity stake at Rs 335.94 each.
• Prabhudas Lilladhar bought 34,969 shares or 0.6 percent equity stake at Rs 332.38 each.

IPO Watch

• Mahindra Logistics Limited IPO day 3. Issue subscribed 1.3 times at end of day 2
• New India Assurance IPO day 2. Issue subscribed 1 times at end of day 1
• Khadim India IPO opens. Issue Price at Rs 745-Rs 750 per share

Who’s Meeting Whom?

• Cochin Shipyard to meet BNP Paribas Mutual Fund and Mirae Asset Management on Nov. 3.
• Shoppers Stop to meet Stewart Investors Asia Pacific fund on Nov. 9.
• Tata Communications to do a roadshow in Europe from Nov. 1 - 9.

Insider Trades

• DCW promoters sold over 3 lakh shares on Oct. 31.
• Zee Entertainment promoter creates pledge of over 58 lakh shares on Oct. 27.
• Adani Power promoter bought 25 lakh shares from open market on Oct. 31.
• Adani Transmission promoter revokes pledge of over 21 lakh shares on Oct. 30.
• Veto Switchgear promoter sold 2.5 lakh shares on Oct. 30-31.

Rupee

• Rupee closed at 64.59/$ on Wednesday from 64.74/$ on Tuesday.

Top Gainers And Losers In Last 3 Months

Index Trends

F&O Cues

• Nifty November futures closed at 10,477, premium of 36.8 points versus 33.5 points.
• November contracts: Nifty open interest up 2 percent; Bank Nifty open interest up 21 percent.
• India VIX closed 2.4 percent lower at 12.13.
• Max open interest for November series shifts at 10,500 Call (open interest at 34.2 lakh, up 12 percent).
• Max open interest for November series at 10,000 Put (open interest at 52.5 lakh, up 4 percent).

F&O Ban

• In ban: HDIL , JSW Energy, Wockhardt
• New in ban: HDIL

Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

Put-Call Ratio

• Nifty PCR at 1.50 versus 1.45.
• Nifty Bank PCR at 1.52 versus 1.16.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Motilal Oswal on Rain Industries

• Initiated ‘Buy’ rating with a price target of Rs 362; implying a potential upside of 33 percent from Wednesday’s close.
• Dual benefit of demand growth and supply shock driving CPC prices.
• Rain investing in high organic growth projects.
• Strong free cash flow generation to help deleverage its balance sheet.
• Expect Volume, Ebitda and net profit to grow at a compound annual growth rate of 4 percent, 24 percent and 50 percent over four year till December 2009.
• Rain has re-rated on visibility of margin expansion and growth.
• Although stock has run up sharply, the valuations are still reasonable.
• Bull Case target of Rs 615.

CLSA on JSW Energy

• Maintained ‘Sell’; hiked price target to Rs 66 from Rs 57.
• Net profit led by one-offs; both M&A deals fell through—a positive.
• Negatives: lower ASPs, expiry of high-priced power purchase agreements and rise in sea-borne coal prices.
• Current rally unsustainable; Return on equity deterioration caps valuation.

CLSA on Hero MotoCorp

• Maintained ‘Sell’; hiked price target to Rs 3,000 from Rs 2,950.
• Operating performance impacted post implementation of GST.
• Expect current financial year to be a decent year for 2W, but growth to moderate in the next two financial years.
• Negatives: slowing industry growth, adverse demand profile shifts and multiple margin headwinds.
• Expect earnings per share to grow at a compound annual growth rate of 6 percent over the three financial years till March 2020.

Credit Suisse on Hero MotoCorp

• Maintains Neutral; hiked price target to Rs 3,560 from Rs 3,230.
• Significant change in accounting of Haridwar revenues and costs impacted line items.
• Reduce estimates for the current financial year to build in state excise incentives not coming through.
• Margins in the second half likely to be softer on higher raw material prices and other expenses.
• Expect traction in two-wheeler volumes in the send half; Product launches should help further.

CLSA on Tech Mahindra

• Maintained ‘Sell’; hiked price target to Rs 450 from Rs 380.
• Strong execution upgrades margin assumptions by 80-90 basis points for the current financial year, driving 8-10 percent upgrades in earnings per share during the period.
• Negatives: uncertain long-term growth prospects, risks from M&A and likely exhaustion of margin momentum.
• TechM needs to institutionalise several processes that appear to be centrally imposed on resource management.

Credit Suisse on Tech Mahindra

• Maintained ‘Outperform’; hiked price target to Rs 550 from Rs 520.
• Margin trajectory shaping up well.
• Telecom still weak, while enterprise remains solid .
• Valuations remain attractive with our estimated compound annual growth rate of 18 percent EBIT over the two financial years till March 2020.

Credit Suisse on TVS

• Maintains Underperform; hiked price target to Rs 490 from Rs 400.
• Delivers margins in the previous quarter, but double-digit margin during the final quarter still unlikely.
• Raised earnings per share estimates for the current financial year till Marc 2020 by 5-10 percent for higher scooter and export volumes, higher margins of 50 basis points and building in the BMW tie-up products in the financials.
• TVS has exhibit faster-than-market growth compared to peers.

CLSA on TVS

• Maintained ‘Sell’; hiked price target to Rs 350 from Rs 315.
• During the previos quarter, margins remain range-bound despite strong volume growth.
• Volume outlook better driven by scooters and exports.
• Don’t see a case for meaningful margin expansion given rising commodity prices and regulatory cost pressures ahead.
• Need to deliver Ebitda margin of 17 percent in the next financial years to justify 10 percent upside.

CLSA on Shriram Transport Finance

• Maintained ‘Sell’; hiked price target to Rs 1,000 from Rs 950.
• Uptick in asset under management growth a positive, but stay cautious.
• Asset under management growth and net interest margin expansion aided topline growth.
• Watch out for moderation in commercial vehicle sales growth in October and weaker pipeline of used .commercial vehicles.
• Earnings forecasts raised to factor better topline and annulling of merger talks.

CLSA on Godrej Consumer

• Maintained ‘Sell’; hiked price target to Rs 1,025 from Rs 940.
• India volume growth strong while Indonesia getting better.
• Cost savings too helped in margin expansion.
• Godrej Consumer expects much better in the second half of this financial year helped by launches and a low base.

Credit Suisse on Godrej Consumer

• Maintained ‘Outperform’; hiked price target to Rs 1,125 from Rs 1,100.
• The previous quarter displayed a strongest domestic volume growth despite a high base, worst is over in Indonesia.
• Expect Indonesia to gradually recover on a low base.
• India innovation pipeline continues to be very strong.
• Godrej Consumer is the top pick in FMCG space.

Credit Suisse on Hexaware

• Maintained ‘Neutral’; hiked price target to Rs 265 from Rs 230.
• Management remains optimistic about sustaining the strong growth momentum.
• The last quarter may be soft due to seasonality and full quarter impact of client headwinds; Medium-term outlook positive.
• Raised earnings estimates by 4-7 percent, accounting for lower tax rate and slightly higher margins.