Employees pass though a security check at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

All You Need To Know Going Into Trade On November 14

Equity markets in Asia fluctuated at the open ahead of a deluge of economic data due in China. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,254 as of 6:55 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

DayBreak

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

Global Cues

  • U.S. stocks edged up overnight, the dollar was flat and benchmark Treasury yields held recent gains as investors awaited clues on monetary policy and tax reform.
  • The pound remained weak amid renewed political pressure on U.K. Prime Minister Theresa May.
  • Bitcoin clawed back some losses after extending its slump from last week’s record high to as much as 29 percent.

Asian Cues

  • The Topix index was little changed, while the Nikkei 225 Stock Average rose 0.2 percent.
  • Australia’s S&P/ASX 200 index was down 0.8 percent and the Kospi index in Seoul was little changed.
  • Hang Seng Index futures fell 0.1 percent.
  • Contracts on the S&P 500 Index were down less than 0.1 percent. The underlying measure rose 0.1 percent on Monday.
  • The MSCI Asia Pacific Index fell 0.2 percent.

Here are some key events investors are watching this week:

  • This week’s data include GDP reports for Japan, Germany, Italy and the euro area, CPI in the U.S., U.K. and Spain, along with Aussie jobs and wages.
  • BOE officials address the bank’s future on Thursday, while Draghi speaks a second time Friday. A string of Fed appearances may further illuminate the FOMC’s commitment to a December hike.
  • Oil executives gather in Abu Dhabi to jostle for access to the Emirate’s oil riches.

Commodity Cues

  • West Texas Intermediate crude was flat $56.71 a barrel.
  • Gold advanced was at $1,277.57 an ounce, little changed from Monday.

Shanghai Exchange

  • Steel trades higher for second day; up 0.50 percent
  • Aluminium trades marginally higher
  • Zinc trades higher for third day
  • Copper trades higher; up 1.4 percent
  • Rubber trades higher for second day; up 1.64 percent

Indian ADRs

All You Need To Know Going Into Trade On November 14

Nifty Results Today

  • Eicher Motors
  • GAIL
  • Sun Pharma

Other Results Today

  • Bank Of Baroda
  • Bata India
  • Cadila Healthcare
  • Ceat
  • Corporation Bank
  • Godrej Industries
  • Grasim Industries
  • Indiabulls Real Estate
  • Indo Count Industries
  • Infibeam Incorporation
  • Ipca Laboratories
  • JP Associates
  • JK Tyre & Industries
  • Karur Vysya Bank
  • MRPL
  • MOIL
  • NBCC
  • NLC India
  • Reliance Capital
  • Tata Global Beverages

Earnings Reaction To Watch

All You Need To Know Going Into Trade On November 14

Adani Enterprises Q2FY18 (YoY)

  • Revenue up 19.6 percent at Rs 9083 crore
  • Profit down 6.3 percent at Rs 59.1 crore
  • EBITDA up 70 percent at Rs 689 crore
  • Margin at 7.6 percent versus 5.3 percent

NMDC Q2FY18 (YoY)

  • Revenue up 39.2 percent at Rs 2421 crore
  • Net profit up 9.5 percent at Rs 844 crore
  • EBITDA up 46 percent at Rs 1,202.5 crore
  • Margin at 49.7 percent from 47.5 percent

Clariant Chemicals Q2FY18 (YoY)

  • Revenue up 4 percent at Rs 244 crore
  • Net profit up 26 percent at Rs 4.4 crore
  • EBITDA up 4 percent at Rs 13.5 crore
  • Margin flat at 5.5 percent

Future Enterprises Q2FY18 (YoY)

  • Revenue up 19 percent at Rs 1,111 crore
  • Net loss of Rs 2 crore versus a loss of Rs 23.2 crore
  • EBITDA up 16.5 percent at Rs 275 crore
  • Margin at 24.8 percent from 25.2 percent

Repco Home Finance Q2FY18 (YoY)

  • Net interest income rose 21.2 percent to Rs 109.3 crore
  • Profit 22.3 percent higher at Rs 55.87 crore
  • Net interest margin at 4.8 percent from 4.3 percent (QoQ)
  • Gross NPA at 3.4 percent from 3.97 percent (QoQ)
  • Net NPA at 1.9 percent from 2.6 percent (QoQ)

Bajaj Hindusthan Sugar Q2FY18 (YoY)

  • Revenue up 77 percent at Rs 1506.5 crore
  • Net loss of Rs 91.6 crore from a loss of Rs 138 crore
  • EBITDA up 78 percent at Rs 121.1 crore
  • Margin flat at 8 percent

P&G Q2FY18 (YoY)

  • Revenue up 9.6 percent at Rs 658 crore
  • Net profit up 10.7 percent at Rs 115.6 crore
  • EBITDA up 24.4 percent at Rs 188.4 crore
  • Margin at 28.6 percent from 25.2 percent

KEI Industries Q2FY18 (YoY)

  • Revenue up 19.84 percent at Rs 749 crore
  • Net profit up 35.7 percent at Rs 28.5 crore
  • EBITDA up 12.6 percent at Rs 76 crore
  • Margin at 10.1 percent from 10.8 percent

Prabhat Dairy Q2FY18 (YoY)

  • Revenue up 19 percent at Rs 385.6 crore
  • Net profit up 2 percent at Rs 9.1 crore
  • EBITDA up 15 percent at Rs 31.6 crore
  • Margin at 8.2 percent vs 8.5 percent

JK Paper Q2FY18 (YoY)

  • Revenue down 2 percent at Rs 671.5 crore
  • Net profit up 29 percent at Rs 56.6 crore
  • EBITDA up 3 percent at Rs 138.5 crore
  • Margin at 20.6 percent from 18.7 percent

GSPL Q2FY18 (QoQ)

  • Revenue up 13 percent at Rs 335 crore
  • Net profit up 16 percent at Rs 177 crore
  • EBITDA up 4 percent at Rs 286 crore
  • Margin at 85.4 percent from 93.1 percent

Kalpataru Power Transmission Q2FY18 (YoY)

  • Revenue up 9.7 percent at Rs 1223 crore
  • Net profit up 23 percent at Rs 71.5 crore
  • EBITDA up 9 percent at Rs 133 crore
  • Margin flat at 10.9 percent

Man Infraconstruction Q2FY18 (YoY)

  • Revenue down 13.5 percent at Rs 96 crore
  • Net profit down 10 percent at Rs 11 crore
  • EBITDA up 2 percent at Rs 20.4 crore
  • Margin at 21.25 percent from 18 percent

SJVN Q2FY18

  • Revenue down 14 percent at Rs 727 crore
  • Net profit down 17 percent at Rs 435 crore
  • EBITDA down 21 percent at Rs 585 crore
  • Margin at 80.5 percent from 86.9 percent

Marathon NextGen Realty Q2FY18 (YoY)

  • Revenue down 54 percent at Rs 14.75 crore
  • Net profit down 50 percent at Rs 9.5 crore
  • EBITDA down 59 percent at Rs 12.15 crore
  • Margin at 82.4 percent from 91.9 percent

Dhanlaxmi Bank Q2FY18 (YoY)

  • Net Interest Income up 8.2 percent at Rs 91 crore
  • Profit up 0.7 percent at Rs 6.06 crore
  • Provisions up 26 percent at Rs 24 crore (QoQ)
  • GNPA at 6.11 percent from 5.62 percent (QoQ)
  • NNPA at 3.67 percent from 3.15 percent (QoQ)

The Phoenix Mills Q2FY18 (YoY)

  • Revenue down 24.4 percent at Rs 371 crore
  • Profit down 22 percent at Rs 42 crore
  • EBITDA down 23 percent at Rs 179 crore
  • Margin at 48.2 percent from 47.1 percent

S H Kelkar Q2FY18 (YoY)

  • Revenue down 9 percent at Rs 222 crore
  • Profit down 21 percent at Rs 19 crore
  • EBITDA down 13 percent at Rs 36 crore
  • Margin at 16.2 percent from 17 percent

Shalimar Paints Q2FY18 (YoY)

  • Revenue down 27.6 percent at Rs 71 crore
  • Net loss of Rs 9.8 crore from a profit of Rs 2.5 crore
  • EBITDA loss at Rs 9 crore from a profit of Rs 9 crore
  • Margin at -12.7 percent from 9.2 percent

Shree Renuka Q2FY18 (YoY)

  • Revenue down 32.7 percent at Rs 1,365 crore
  • Net loss of Rs 120 crore from a profit of Rs 2.5 crore
  • EBITDA down 95 percent at Rs 6 crore
  • Margin at 0.4 percent from 6 percent

Tamil Nadu Newsprint and Papers Q2FY18 (YoY)

  • Revenue down 21 percent at Rs 536 crore
  • Net loss of Rs 13 crore from a profit of Rs 70.6 crore
  • EBITDA down 62 percent at Rs 67 crore
  • Margin at 12.5 percent from 25.9 percent

Indian Hotels Q2 YoY

  • Revenue down 4 percent at Rs 852 crore
  • Net loss of Rs 58 crore versus net loss of Rs 27 crore
  • EBITDA down 21 percent at Rs 55.5 crore
  • Margin at 6.5 percent versus 7.9 percent

Stocks To Watch

  • Bharti Airtel offered to sell 3.5 percent stake in Bharti Infratel at Rs 400-415.50 per share (Bloomberg)
  • Sun Pharma subsidiary Taro gets USFDA nod for Fexofenadine Hydrochloride oral suspension
  • Tata Teleservices says total mobile subscribers down 7.3 percent to 6,467 lakh in Oct. from 69.8 lakh in Sept.
  • Muthoot Capital to issue 27.27 lakh shares at Rs 605 each via QIP.
  • IOL Chemicals and Pharma to invest Rs 200 crore for expanding manufacturing capacity.
  • Havells India signed a pact with South Korea’s Hyundai Electric for supply of low and medium voltage protection, and switching devices.

Bulk Deals

ADF Foods

  • JSL Enterprises bought 4 lakh shares (1.9 percent) at Rs 232.99 each
  • KL Enterprises LLP bought 1.97 lakh shares (0.9 percent) at Rs 239.15 each

Heads Up

  • Prakash Steelage moved to Graded Surveillance Measure (GSM) stage VI
  • Mahindra Logistics added to S&P BSE IPO Index

MSCI Small Cap Index

30 stocks added and 10 deleted from Small Cap Index

Additions

  • APL Apollo Tubes
  • Apollo Hospitals
  • Bombay Dyeing
  • Caplin Point
  • CDSL
  • Chambal Fertiliser
  • Cochin Shipyard
  • DCM Shriram
  • Deepak Fertiliser
  • Eris Life
  • Fortis Health
  • Gujarat Alkalies
  • Gulf Oil Lubricants
  • Himadri Chemicals
  • IDFC
  • Jindal Saw
  • Jindal Stainless
  • Minda Industries
  • Nesco
  • Quess Corp
  • Radico
  • Rain Industries,
  • Shankara Building
  • Suprajit Engineering
  • Techno Electric
  • Tejas Networks
  • Time Techno
  • Uflex
  • VIP Industries
  • Welspun Corp

Deletions

  • Adani Transmission
  • Future Retail
  • Indo Count
  • JB Chemicals
  • Kansai Nerolac
  • Kushal Tradelink
  • L&T Financial
  • TVS Motor
  • Vakrangee
  • Videocon

Changes effective close of November 30, 2017

New Listing

  • Khadim India to start trading on BSE/NSE with a base price of Rs 750 per share. The IPO was subscribed 1.9 times.

Who’s Meeting Whom?

  • CG Power to meet Reliance Mutual Fund, BOB Capital, Aditya Birla Mutual Fund and others on Nov. 14.
  • Shriram City to meet Investec Capital on Nov. 14.
  • Balkrishna Industries to meet UBS on Nov. 16 and Macquarie Capital on Nov. 17
  • Indraprastha Gas to meet CLSA on Nov. 15, Credit Suisse and IDFC Nov. 16

Insider Trades

  • JSW Steel promoter purchased 7.9 lakh shares from open market between November 8 to November 10.
  • Max Financial services promoter pledged 4.1 lakh shares on November 10.
  • Strides Shasun Promoter purchased 2 lakh shares from open market on November 8.

Rupee

Rupee closed at 65.43 per dollar, its lowest level against the dollar since October 3.

Top Gainers And Losers

All You Need To Know Going Into Trade On November 14

Index Trends

All You Need To Know Going Into Trade On November 14

F&O Cues

  • Nifty November futures closed at 10,269 with a premium of 44 points versus 12points
  • November contracts: Nifty open interest up 1 percent; Bank Nifty open interest unchanged
  • India VIX closed up 4.2 percent at 14
  • Max open interest for November series at 10,500 Call (open interest at 55 lakh, up 21 percent)
  • Max open interest for November series at 10,200 Put (open interest at 49 lakh, down 13 percent)

F&O Ban

  • In ban: DHFL, HDIL, Indiabulls Real Estate, India Cement, Infibeam, Jet Airways, Jain Irrigation, JP Associates, JSW Energy, Just Dial
  • New in ban: JP Associates
  • Out of ban: Reliance Communication

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

Put-Call Ratio

  • Nifty PCR at 1.22 from 1.33
  • Nifty Bank PCR at 1.14 from 1.25

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On November 14

Fund Flows

All You Need To Know Going Into Trade On November 14

Brokerage Radar

CLSA on NTPC

  • Maintain ‘Buy’ with target price of Rs 200
  • NTPC added 1,210 megawatt of capacity in Q2 - highest ever added in any quarter
  • Improved commercialisation of commissioned thermal capacity to boost regulated equity
  • Expect marked pick-up in regulated equity growth to 21.4 percent
  • Expect return on equity to expand by 230 basis points over financial years 2017 - 2019

Morgan Stanley on Adani Ports

  • Maintains ‘Overweight’ with target price of Rs 471
  • Modest volumes, healthy port margins and strong SEZ (special economic zone) profitability in the second quarter of the current fiscal
  • Expect trade recovery, strong pricing power and pan-India presence to result into strong cash flow generation
  • Management confident of volume recovery in the second half

Nomura on Yes Bank

  • Maintains ‘Buy’; Cut target price to Rs 375 from Rs 440
  • Difficult to assume that the bank will have solid collaterals for all its non-NPA divergences
  • Target price cut to assume 50 percent divergence turning stress
  • Impact on Bank’s Dec. 19 book is 5-6 percent
  • If Bank’s resolution track record holds good, that will imply upside

Deutsche Bank on Adani Ports

  • Maintains ‘Hold’; Hiked target price to Rs 350 from Rs 320
  • Q2 cargo volume disappoints, though outlook remains strong
  • Expect Revenue/EBITDA to grow at CAGR of 13 percent over financial years 2017 – 2019
  • Target price hiked on faster ramp-up in container volume, particularly at newer ports

Deutsche Bank on Idea Cellular

  • Maintains ‘Buy’ with target price of Rs 144
  • Robust cost management in seasonally weak September-ended quarter
  • Rapid rollout of 4G network and the proposed merger with Vodafone to allow it to compete
  • Progressive normalisation of pricing to help Idea to revert to its past levels of profitability
  • Current price appears to discount minimal merger synergies

CLSA on Idea

  • Maintains ‘Sell’; Hiked target price to Rs 77 from Rs 70
  • With sharp fall in EBITDA, asset sales will be crucial to control leverage
  • Progress in merger is positive but merger synergies are back-ended
  • Cut ebitda estimates for financial years 2018-2020 by 7-23 percent given the disappointed second quarter
  • Pickup in subscribers will be key to revenue growth for Idea

IDFC Securities on Marksans Pharma

  • Maintains ‘Outperform’ with target price of Rs 51
  • Weak gross margins offset strong revenue growth in the July to September quarter
  • Positives: Higher Europe/U.S. revenues
  • Pace of recovery to be muted on account of pricing pressures in the U.S. market
  • Triggers: continues improvement in U.K., ability to increase client penetration in the U.S. and securing new softgel ANDA approvals