All You Need To Know Going Into Trade On November 30

Asian stocks fell with Australian banks tumbling as investors ponder the longevity of the global equity bull run.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.5 percent to 10,313.50 as of 6:45 a.m.

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DayBreak

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

Global Cues

• Technology shares in the U.S. tumbled, while the S&P 500 Index ended the day flat, amid signs of a rotation away from the year’s leaders into financial stocks as tax legislation proceeded through the Senate.
• Treasuries dropped after Federal Reserve Chair Janet Yellen called economic growth “increasingly broad based.”

Europe Check

• The Stoxx Europe 600 Index climbed 0.2 percent.
• The U.K.’s FTSE 100 Index sank 0.9 percent.
• Germany’s DAX Index gained less than 0.05 percent.

Asian Cues

• China’s official factory gauge unexpectedly rose as demand for products helped cushion effects of the pollution cleanup.
• The Bank of Korea raised its benchmark interest rate for the first time since 2011, underscoring its confidence in the nation’s economic recovery and inflation.

Market Check

• Japan’s Topix index fell 0.2 percent and the Nikkei 225 Stock Average lost 0.2 percent.
• Australia’s S&P/ASX 200 Index declined 0.6 percent. The nation’s big four banks were the main drag on the benchmark after Prime Minister Malcolm Turnbull said he would hold a wide-ranging public inquiry into the banks.
• South Korea’s Kospi index dropped 0.5 percent.
• Contracts on Hong Kong’s Hang Seng Index slid 0.7 percent.
• Futures on the S&P 500 were down less than 0.1 percent.
• The MSCI Asia Pacific Index declined 0.3 percent.

Here are some key events coming up this week:

• Japan CPI may show a sharp divergence between headline and core inflation, Bloomberg Intelligence said ahead of the releases on Friday.
• India updates on July-Sept GDP on Thursday.
• OPEC meets in Vienna on Thursday.

Commodity Cues

• West Texas Intermediate crude was steady at $57.29 a barrel. It fell 1.2 percent in the previous session.
• Gold was little changed at $1,283.63 an ounce.
• Sugar ended higher at 15.07 cents per pound; up 0.2 percent.

Shanghai Exchange

• Steel trades near three-month high; up 2.31 percent.
• Aluminium trades lower for third day; down 0.85 percent.
• Zinc snaps four-day losing streak; up 0.46 percent.
• Copper trades lower for third day, down 0.85 percent.
• Rubber trades lower; down 0.14 percent.

Indian ADRs

Earnings To Watch

• Archies
• Cerebra Tech
• Datamatics Global
• Shreyans Inds
• UFO Moviez
• Warren Tea

Earnings Reaction To Watch

Mukta Arts (Q2, YoY)

• Revenue up 42 percent at Rs 37 crore.
• Net profit of Rs 9.4 crore.
• EBITDA at Rs 8.5 crore versus a loss of Rs 0.5 crore.
• Margin at 23 percent versus -2 percent.

Safari Industries (Q2, YoY)

• Revenues up 19 percent at Rs 88 crore.
• Net profit up 268 percent at Rs 3.5 crore.
• EBITDA up 98 percent at Rs 8.3 crore.
• Margins at 9.4 percent versus 5.7 percent.

TBZ (Q2, YoY)

• Revenues down 27 percent at Rs 326 crore.
• Net profit down 90 percent at Rs 0.8 crore.
• EBITDA down 48 percent at Rs 12 crore.
• Margins at 3.7 percent versus 5.2 percent.

Stocks To Watch

• SBI to increase rates on deposits of Rs 1 crore and above by 100 basis points on Thursday.
• Indiabulls Housing Finance’s rating upgraded by Crisil to AAA.
• Infosys Finacle, part of Infosys, launched blockchain based trade finance solution for banks.
• India Motor Parts & Accessories acquired 90 percent stake in CAPL Motor Parts Pvt. Ltd. for Rs 4.5 crore.
• Maithan Alloys completes acquisition of Salanpur Sinters and Anjaney Minerals.
• Aban Offshore sets up subsidiary Aban Hydrocarbons Pte in Singapore.
• New York State Insurance Fund partners with Majesco U.S.A.
• Mahindra Finance to raise Rs 1,055 crore by issuing 2.5 crore equity shares at a price of Rs 420 each to Mahindra and Mahindra Ltd.
• Allahabad Bank cuts MCLR by 5 basis points across tenures.
• DLF plans Rs 3,500 crore QIP, board meet on Dec. 1 (PTI).
• Focus will also be on the changes to MSCI India index, which will be effective from Dec. 1. Stocks such as Britannia Industries, Petronet LNG, Vakrangee will be added to MSCI India Index, while Apollo Hospitals will be excluded.

Bulk Deals

• GNA Axles: Promoter Rachhpal Singh sold 10.50 lakh shares or 4.9 percent equity stake at Rs 388.32 each.
• Subex: QVT Mauritius West Fund – FCCB AC sold 36 lakh shares or 0.6 percent equity stake at Rs 8.65 each.

Action Construction Equipment

• GMO Emerging Domestic Opportunities Fund bought 10.67 lakh shares or 0.9 percent equity stake at Rs 136.84 each.
• Promoter Mona Aggarwal sold 49.90 lakh shares or 4.3 percent equity stake at Rs 135.97 each.

Den Networks

• Norges Bank bought 23.88 lakh shares or 1.2 percent equity stake at Rs 92.75 each.
• The Spruce House Partnership LP sold 29.48 lakh shares or 1.5 percent equity stake at Rs 92.76 each.

Pro Fin Capital Services

• New Leaina Investments bought 59,000 shares or 0.8 percent equity stake at Rs 235 each.
• LTS Investment Fund sold 59,444 shares or 0.8 percent equity stake at Rs 235 each.

Who’s Meeting Whom?

• Kalpataru Power to meet IIFL Private Wealth on Nov. 30.
• Seya Industries to meet SBI MF, Goldman Sachs AMC, MOSL AMC, Ashish Kacholia and others on Nov. 30.
• HPCL to meet Churchgate Advisory Pvt Ltd on Nov. 30.
• Ashoka Buildcon to meet Kotak Asset Management, Manulife Asset Management and others fron Nov. 30-Dec. 1.
• PNB to meet BNP Paribus Asset Management, Wellington Management and others on Nov. 30.
• NBCC to meet Marshall Wave Asia on Dec. 1.

Insider Trades

• Borosil Glass promoters sold 64,000 shares in open market on Nov. 23-28.
• Granules India promoter bought 1.6 lakh shares from open market on Nov. 24 - 27.
• Prabhat Dairy promoter bought 2 lakh shares from open market on Nov. 28.
• Parag Mi lakh Food promoter bought 10,000 shares from open market on Nov. 29.

Rupee

• Rupee closed at 64.32/$ on Wednesday from 64.41/$ on Tuesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty November futures closed at 10,360.5 discount of 0.5 points from a premium of 7.3 points.
• Nifty Dec. futures trading at 10,399.4, premium of 38 points from a premium of 48.7 points.
• All series: Nifty open interest unchanged; Bank Nifty open interest down 3 percent.
• Rollover: Nifty at 46 percent, Bank Nifty at 32 percent.
• India VIX closed 0.6 percent lower at 13.06.
• Max open interest for Nov. series at 10,500 Call (open interest at 73.9 lakh, open interest up 9 percent).
• Max open interest for Nov. series at 10,000 Put (open interest at 56.1 lakh, down 1 percent).

F&O Ban

• In ban: DHFL, GMR Infrastructure, Infibeam, JP Associates, JSW Energy, Oriental Bank, Reliance Communications and TV18 Broadcast.
• New in ban: Reliance Communications.
• Out of ban: Fortis, HDIL, Jet Airways, Jain Irrigation, Syndicate Bank and Wockhardt.

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 1.27 from 1.33.
• Nifty Bank PCR at 1.01 from 1.06.

Fund Flows

Brokerage Radar

Angel Broking on Century Plyboards

• Initiated ‘Buy’ rating with price target of Rs 400.
• Strong brand visibility with wide distribution network led by higher ad spends.
• Shift in trend towards organized plywood sector to propel growth.
• Pradhan Mantri Awas Yojana - trigger for Plywood & MDF segment.
• Capacity addition across segments would boost company’s revenue and profitability.
• Expect revenue and net profit to grow at a compound annual growth rate of 17 percent and 16 percent by March 2020.

Morgan Stanley on Indiabulls Housing Finance

• Maintained ‘Equalweight’ with price target of Rs 1,250.
• CRISIL upgrade onlong-term credit rating to AAA – a positive.
• Upgrade could result in narrowing of the spread of bond borrowing cost.
• In near term, Indiabulls Housing Finance could outperform other financials.
• Have low preference for housing finance companies given higher sensitivity to rising bond yields and potential price competition from PSU banks.

Goldman Sachs on Healthcare Global Enterprises

• Upgraded to ‘Buy’ from ‘Hold’; hiked price target to Rs 355 from Rs 270.
• Delivering consistently in an underserved cancer market; Buy on solid growth story.
• Gain more confidence that HCG will maintain operating income growth pace based on upcoming capacity and pricing power.
• Expect operating income to grow at a compound annual growth rate of 26 percent by March 2020.
• HCG has been able to expand capacity with little dilution to margins.
• Positives: pricing power and good management track record.

Edelweiss on Equitas

• Maintained ‘Buy’ with price target of Rs 220.
• Management reinforced confidence of building a sustainable and scalable small finance bank franchise.
• Return on equity to be depressed as the company intends to bring down proportion of micro finance business.
• Scale-up of non-MFI book to support 35 percent asset under management growth by March 2020.
• Visible benefit of successful execution from the next financial year onwards to bolster confidence.
• Equitas is one of our top sector picks.

Motilal Oswal on Capital First

• Maintained ‘Buy’ with price target of Rs 925.
• Growth prospects appear bullish; Expect 28 percent asset under management growth by March 2019.
• Positives: improving return on equity in consumer durable business; mix shift toward CD and 2W financing segments and break-even in profitability in new ventures over next 1-2 years.
• Expect return on assets and return on equity of 1.9 percent and 17 percent by March 2020.
• Capital raise could be possible over the next 12-18 months.