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

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

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

Index Trends

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

Fund Flows

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