Employees walk through the atrium of the National Stock Exchange of India Ltd. (NSE) building in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On April 19

Asian stocks traded mostly higher following a U.S. session dominated by the drop in Treasuries, as investors continue to assess the speed of monetary policy tightening.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,588 as of 7:05 a.m.

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

Global Cues

  • U.S. stocks edged higher as investors parsed a mixed bag of earnings and rising oil prices boosted energy producers.
  • The yield on 10-year Treasuries increased four basis points to 2.87 percent, the highest in more than three weeks.

Europe Check

  • European equities advanced, with commodities stocks surging, as investors focused attention on corporate earnings amid an easing of geopolitical tensions.
All You Need To Know Going Into Trade On April 19
  • The euro was steady at $1.2373.
  • The British pound decreased 0.6 percent to $1.4199.
  • Germany’s 10-year yield gained two basis points to 0.53 percent.
  • Britain’s 10-year yield fell two basis points to 1.414 percent.

Asian Cues

  • The MSCI Asia Pacific Index rose 0.2 percent.
  • Topix index rose 0.4 percent.
  • Kospi index fell 0.1 percent.
  • Australia’s S&P/ASX 200 Index rose 0.6 percent.
  • Futures on the S&P 500 Index rose 0.1 percent.

Here are some key events coming up this week:

  • Finance ministers and central bank chiefs from around the world gather for spring meetings at the IMF in Washington.
  • Bank Indonesia will probably hold its benchmark at 4.25 percent, extending a pause after easing in August and September was followed by bouts of rupiah weakness.

Commodities Check

  • West Texas Intermediate crude rose 0.4 percent to $68.76 a barrel.
  • Brent trades higher at $73.9 per barrel; up 0.6 percent.
  • Gold rose 0.1 percent to $1,350.64 an ounce.
  • Sugar snapped two-day losing streak at 11.9 cents per pound; up 0.8 percent.

Shanghai Exchange

  • Steel trades higher for second day; up 1.2 percent.
  • Aluminium traded higher for fifth day; up 2.1 percent (trades at three-month high).
  • Zinc traded higher for fourth day; up 3.4 percent.
  • Copper traded higher; up 1.8 percent.
  • Rubber traded higher for second day; up 1.6 percent.

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Indian ADRs

All You Need To Know Going Into Trade On April 19

Nifty Earnings To Watch

  • IndusInd Bank
  • TCS

Earnings Reactions To Watch

Mindtree (Q4, QoQ)

  • Revenue up 6 percent at Rs 1464 crore.
  • Net profit up 29 percent at Rs 182 crore.
  • EBIT up 19 percent at Rs 197 crore.
  • Margin expanded to 13.5 percent from 12.0 percent.

HDFC Standard Life Insurance (Q4, YoY)

  • Net premium income up 24 percent at Rs 8,900 crore.
  • Net profit up 40 percent at Rs 347 crore.
  • Loss from investment at Rs 937 crore versus income of Rs 4,866 crore.

Stocks To Watch

  • Mercator says coal mining operations in Indonesia have attained near optimum levels.
  • Dynamatic Technologies signed MoU with France’s Daher Aerospace.
  • Mishra Dhatu Nigam signed two pacts in DefExpo India 2018: Bloomberg
  • IHH is said to seek time for due diligence and financial details before Fortis bid: Bloomberg
  • Infosys clarified it has not received any anonymous whistleblower complaint.
  • GEE to enter into pact with Avion Investments for development of IT Pak Project at Thane Plant.
  • Container Corp to consider stock split on April 30.
  • ABG Shipyard IRP invited fresh bids for the company.
  • Infibeam received online marketplace contract from NSDC.
  • Dynemic Products Ltd. gets closure notice for Gujarat unit from Gujarat Pollution Control Board.
  • NMDC cut prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from April 18.
  • Bharat Dynamics signed licensing agreement with DRDO for Astra MK-1 Weapon System.
  • Bharti Airtel announced 30GB free data for users upgrading to 4G: Bloomberg
  • Sun Pharmaceuticals unit hiked stake in Ranbaxy Malaysia by 4.93 percent.
  • GE Shipping takes delivery of secondhand very large gas carrier of about 81,617 cbm; company has also committed to purchase one second-hand medium gas carrier.
  • Lemon Tree Hotels signed three management contract for a hotel each in Rishikesh, Neelkanth and Mussoorie.
  • JHS Svendgaard board approved additional investment in JHS Svendgaard brands and JHS Svendgaard retail ventures.
  • Jain Irrigation board approved plan to raise Rs 260 crore loan from World Bank arm
  • Trigyn Technologies received three IT services contract in U.S.
  • Magma Fincorp raised Rs 500 crore at a price of Rs 155 per share through a QIP.

Bulk Deals

  • DCB Bank: Abu Dhabi Investment Authority bought 21 lakh shares or 0.7 percent equity at Rs 198.18 each.
  • Tata Sponge Iron: AJO Emerging Markets Small-Cap Master Fund, Ltd. sold 81,844 shares or 0.5 percent equity at Rs 1,148.41 each.

GSS Infotech

  • Elara India Opportunities Fund bought 6.50 lakh shares or 3.8 percent equity at Rs 74 each.
  • Nomura Singapore bought 5 lakh shares or 3 percent equity at Rs 74 each.

Huhtamaki PPL

  • Promoter Huhtavefa B.V bought 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.
  • Amar Chhajed sold 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.

Teamlease Services

  • Kotak India Mid-Cap Fund bought 5.82 lakh shares or 3.4 percent equity at Rs 2210 each.
  • Gaja Capital India Fund I sold 1.07 lakh shares or 0.6 percent equity at Rs 2210 each.
  • GPE (India) Ltd. sold 5.75 lakh shares or 3.4 percent equity at Rs 2210 each.

Trading Tweaks

  • Phillips Carbon Black ex date for 5:1 stock split.
  • Foods & Inns ex date for 10:1 stock split.
  • Sequent Scientific last trading day under T group.

Who’s Meeting Whom?

  • Infosys to meet analysts/investors on April 19.
  • Deepak Fertilizers to meet Dhunseri Investments on April 19.
  • Shriram Transport Finance to meet Investec Asset Management on April 19.
  • Shankara Building Products to meet analysts/investors on April 19.

Insider Trades

  • VIP Industries promoters acquired 1.11 lakh shares on April 12.
  • Donear Industries promoter Ajay V Agarwal HUF acquired 1,548 shares on April 16.
  • Man Industries promoter Rameshchandra Mansukhani acquired 75,114 shares on March 23.
  • Aarti Industries promoter Prasadi Banatwala sold 1,930 shares from April 11 – 17.
  • Divi’s laboratories promoter Madhusudana Rao Divi sold 10,000 shares on April 16.
  • KM Sugar Mills promoter Uma Devi Jhunjhunwala sold 16,400 shares from April 1 – 16.
  • Asahi Songwon promoters acquired 6,000 shares on April 16.
  • Valiant Organics promoter Manisha Rashesh Gogri sold 4,800 shares on April 16.

Rupee

  • Rupee closed at 65.66/$ on Wednesday versus 65.65/$ on Tuesday.

Top Gainers And Losers

All You Need To Know Going Into Trade On April 19

F&O Cues

  • Nifty April Futures closed trading at 10,538 with a premium of 12.6 points versus 2.5 points.
  • April series-Nifty open interest up 1 percent, Bank Nifty open interest down 5 percent.
  • India VIX ended at 14.01, up 0.5 percent.
  • Max open interest for April series at 10,700 (open interest at 50.5 lakh, up 9 percent).
  • Max open interest for April series at 10,400 (open interest at 51.4 lakh, down 2 percent).

F&O Ban

  • In ban: IRB Infrastructure Developers, Jet Airways (India), Jaiprakash Associates, Reliance Communications, TV18 Broadcast.
  • New in ban: Jet Airways (India).

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 1.59 versus 1.63
  • Nifty Bank PCR at 1.14 versus 1.47

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On April 19

Fund Flows

All You Need To Know Going Into Trade On April 19

Brokerage Radar

Elara Capital on Shalby

  • Initiated ‘Buy’ with a price target of Rs 275.
  • Best placed to capture the orthopedic care treatment opportunity.
  • Asset-light operating model with better cost structure.
  • New hospitals to start contributing; Mature hospitals to contribute the most.
  • Expect revenue and operating income to compound at 27 percent and 25 percent respectively over the fiscal 2018-2020.
  • EPS to double to Rs 7.4 by March 2020; RoCE to improve by 200 basis points over the fiscal 2018-2020.
  • With zero net debt company in sweet spot to explore inorganic opportunities.

Citi on Adani Ports

  • Maintained ‘Buy’ with a price target of Rs 575.
  • Healthy volume growth to continue.
  • Cash flows are improving.
  • Capex to decline over next 2-3 years.
  • Top-pick in India infrastructure.

Citi on InterGlobe Aviation

  • Maintained ‘Buy’ with TP of Rs 1,600.
  • Domestic passenger air traffic growth unabated.
  • Marginal decline in IndiGo's market share due to forced grounding.
  • Expect improvement in market share going forward.

Prabhudas Lilladher on Mindtree

  • Maintained ‘Accumulate’; raised price target to Rs 930 from Rs 685.
  • March quarter was strong; Revenue and Ebitda beat estimates.
  • Current fiscal’s full year margin guidance remains conservative.
  • Preponing of wage hikes is positive; Indicates robust revenue growth outlook.
  • Mindtree is likely to grow twice the pace of TCS in the current financial year.

MOSL on Mindtree

  • Maintained ‘Buy’; raised price target to Rs 1,000 from Rs 725.
  • March quarter’s revenue beat estimates despite BFSI weakness.
  • Strong exit to an overall subdued year.
  • Strong revenue momentum to offset lower other income and higher tax rate.
  • Expect $ Revenue and earnings to compound at 14 percent and 29 percent over the fiscal 2018-2020.

Prabhudas Lilladher on HDFC Standard Life

  • Maintained ‘Buy’; raised price target to Rs 518 from Rs 500.
  • Positive surprise on new business margins.
  • APE growth was quite robust compared to peers.
  • Margins to improve as share of protection increases and ULIP mix remains the same.

MOSL on HDFC Standard Life

  • Maintained ‘Buy’ with a price target of Rs 475.
  • March quarter was a steady quarter; Business momentum remains strong.
  • Return ratios remain steady; Dividend payout healthy at 30 percent.
  • Expect 26 percent compounded growth rate in new business APE over the fiscal 2018-2020.
  • Valuations to sustain at premium levels.