All You Need To Know Going Into Trade On April 16
Asian stocks inched higher Monday, U.S. equity futures pared gains and the yen retraced losses as traders assessed the likelihood the fallout of an American-led strike on Syria could be contained.
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The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, declined 0.3 percent to 10,472 as of 6:50 a.m.
Here’s a quick look at all that could influence equities on Monday.
U.S. stocks fell on Friday as weakness in shares of banks and finance firms added to the political and trade tensions weighing on the market.
- U.S. President Donald Trump declared “mission accomplished” via Twitter on Saturday, a day after the U.S., France and the U.K. launched military strikes in response to Syrian leader Bashar al-Assad’s suspected chemical attack on civilians. (QuickTake)
- While geopolitical concern linger, focus this week is back on earnings season in the U.S. and a slew of Federal Reserve officials who are due to speak, including the incoming head of the New York Fed, John Williams.
- Japan’s Topix index nudged 0.1 percent higher as of 9:28 a.m. in Tokyo.
- Australia’s S&P/ASX 200 Index gained 0.3 percent.
- Kospi index added less than 0.1 percent.
- Futures on the S&P 500 Index gained 0.5 percent. The underlying gauge fell 0.3 percent Friday.
- The MSCI All-Country World Index gained 1.6 percent last week, the biggest advance since the week ending March 9.
- The MSCI Asia Pacific Index rose 0.1 percent.
Here’s what to watch out for this week:
- Goldman Sachs Group Inc. and Morgan Stanley among companies reporting results.
- John Williams, soon to be president of the New York Fed, speaks on economic outlook in Madrid on Tuesday.
- China GDP and Japanese inflation are the featured data points in Asia.
- Trump welcomes Japan Prime Minister Shinzo Abe to Mar-a-Lago on Tuesday. North Korea and trade will probably be discussed.
- Mining investors will get to take the pulse of the global industry this week, with Vale, Rio Tinto and BHP offering quarterly production reports.
- 12pm: India March wholesale prices inflation YoY, estimate 2.50 percent, prior 2.48 percent
- 3:30pm: IMD briefing on long range forecast for southwest monsoon rain 2018.
- West Texas Intermediate crude lost 0.6 percent to $66.99 a barrel.
- Gold slipped 0.1 percent to $1,345.27 an ounce.
- Steel trades higher for second day; up 0.6 percent
- Aluminium trades higher for second day; up 0.3 percent
- Zinc snaps two-day losing streak; up 0.2 percent
- Copper trades marginally higher; up 0.03 percent
- Rubber trades lower; down 0.3 percent
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- BQ Opinion: Fixing the governance problems at public banks in India
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- Drones, Tanks, Helicopters: The 10th Defence Expo in pictures.
Infosys (Q4, QoQ)
- Revenue in dollar terms up 1.8 percent to $2,805 million
- Revenue up 1.6 percent at Rs 18,083 crore
- Net profit down 28.1 percent to Rs 3690 crore
- Margin expanded to 24.7 percent from 24.3 percent
- FY19 revenue guidance in constant currency at 6 percent – 8 percent.
- FY19 operating margin guidance range at 22 percent – 24 percent.
Rane Brake (Q4, YoY)
- Revenue up 13 percent at Rs 142 crore
- Net profit up 50 percent at Rs 6 crore
- Ebitda down 22.7 percent at Rs 17 crore
- Margin at narrowed to 12 percent from 17.5 percent
Bhansali Engineering Polymers Q4 (Standalone, YoY)
- Net sales up 56.5 percent at Rs 301.8 crore vs Rs 192.8 crore
- Net profit up 82 percent at Rs 28.6 crore vs Rs 15.7 crore
- Ebitda up 94 percent at Rs 43.8 crore vs Rs 22.6 crore
- Margin at 14.5 percent vs 11.7 percent
DCB Bank (Standalone, YoY)
- Net interest income up 19.7 percent at Rs 263.7 crore
- Net Profit up 21.5 percent at Rs 64.2 crore
- Provisions up 13.1 percent at Rs 38.8 crore (QoQ)
- GNPA at 1.79 percent vs 1.89 percent (QoQ)
- NNPA at 0.72 percent vs 0.87 percent (QoQ)
ICICI Securities Q4 (Consolidate, YoY)
- Revenue up 35 percent at Rs 514.6 crore
- Profit up 90.7 percent at Rs 158.6 crore
- Ebitda up 86 percent at Rs 260 crore
- Margin at 50.6 percent
Gruh Finance Q4 (Standalone, YoY)
- Revenue up 16 percent at Rs 484.3 crore.
- Net profit up 18 percent at Rs 130.5 crore.
- Provisions down 94 percent at Rs 1.4 crore (QoQ)
- Announces 1:1 bonus issue.
Earnings To Watch
- Jay Bharat Maruti
- LKP Finance
- Lloyd Metals
Stocks To Watch
- Infosys looks to sell Panaya and Skava. To acquire WongDoody Holding for $75 million.
- Dilip Buildcon sets up 5 SPVs to undertake Rs 6307 crore worth projects from NHAI.
- Bliss GVS pharma gets $12 million from sale of 51 percent stake in Kenya unit.
- Shalimar paints says period for rights issue extended upto April 19.
- IL&FS Engineering wins Rs 129.66 crore pipeline laying contract from GAIL.
- KPIT Technologies two day offer to buy starts today.
- Alembic Ltd. two day buyback starts today.
- Karda Constructions shifted to B group and circuit filter revised to 20 percent.
- Alok Industries: Reliance Industries and JM Financial ARC resolution plan did not receive Committee of Creditors approval.
- HDFC Mutual Fund bought 17 lakh shares (1.2 percent) at Rs 89.05 each.
- Quest Investment Advisors sold 14.51 lakh shares (1.1 percent) at Rs 89.07 each.
SS Infrastructure Development Consultants
- HSBC Mutual Fund – Small Cap Equity Fund bought 99,000 shares at Rs 42 each.
- Elara India Opportunities Fund sold 99,000 shares at Rs 42.01 each.
Shriram City Union Finance
- Fidelity Fund – Pacific Fund sold 4.80 lakh shares (0.7 percent) at Rs 2200 each.
Who’s Meeting Whom
- Eris Lifesciences to meet IndiaNivesh and Burgundy Asset Management on April 16.
- Deepak Fertilizers promoter Nova Synthetic Limited acquired 11,969 shares on April 11.
- NOCIL promoter Navin Fluorine International Limited sold 50,000 shares on April 10.
- Praxis Home Retail promoter Surplus Finvest Private Limited acquired 10.91 lakh shares on April 11.
Rupee closed at 65.22/$ on Friday versus 65.26/$ on Thursday.
Top Gainers And Losers
- Nifty April Futures closed trading at 10,490 with a premium of 9.8 points versus 6.4 points.
- April series-Nifty open interest up 3 percent, Bank Nifty open interest down 5 percent.
- India VIX ended at 14.1, down 2.8 percent.
- Max open interest for April series at 10,500, open interest at 42 lakh, up 11 percent.
- Max open interest for April series at 10,300, open interest at 52.3 lakh, open interest down 6 percent.
- In ban: Balrampur Chini, IRB Infra, JP Associates, TV18 Broadcast
- New in ban: TV18 Broadcast
- Out of ban: Jet Airways
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.
Active Stock Futures
Put Call Ratio
- Nifty PCR at 1.63 versus 1.53
- Nifty Bank PCR at 1.45 versus 1.61
Motilal Oswal on Bharat Electronics
- Maintain Buy; Cut target price to Rs 196 from Rs 210
- Akash and LR SAM orders deferred to the first half of the next financial year
- Estimates cut to factor order deferral and higher tax rates
- Management targets to double sales to Rs 20,000 crore by March 2023
- EBITDA margins to sustain at 18 percent; Exports to reach 10 percent of sales
- Venturing into ammunition production; Rs 600 crore capex likely by March 2019
Nomura on Infosys
- Maintain Reduce with target price of Rs 990
- Fourth quarter financials were in line but margin guidance disappointed
- Additional cash returns to shareholders could cushion the share fall
- Growth weakness in developed markets, BFSI & Retail is a negative
JPMorgan on Infosys
- Maintain Overweight with target price of Rs 1,230
- EBIT margin guidance a disappointment; Revenue in line with expectation
- Results represent the need to make fresh revenue-generating investments
- Margin levers for financial year 2019 cannot rest longer on utilisation and expense management
- ADR reaction overdone as EPS downside is 4 percent due to guidance
Credit Suisse on Nestle
- Maintain Outperform; Raise target price to Rs 9,600 from Rs 9,000
- Highest volume growth in FMCG in calendar year 2017
- Maggi volumes still below calendar year 2014 levels
- Maggi to drive rapid growth for another few years
- Strong free cash flow conversion; FCF is 146 percent of net profit