All You Need To Know Going Into Trade On April 24
A weaker yen supported Japanese equities at the start of Tuesday trading after the dollar climbed while investors maintained focus on the U.S. Treasury market, where the 10-year note flirted with 3 percent.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 10,550 as of 7:15 a.m.
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Here’s a quick look at all that could influence equities on Tuesday.
- U.S. stocks ended mixed, with a slump in shares of technology companies weighing on major indexes.
- The yield on 10-year Treasuries rose one basis points to 2.97 percent, after reaching the highest in more than four years.
- European shares advanced on the euro’s continued decline and optimism the U.S. and China may take steps to resolve a trade dispute that had roiled global markets.
- The euro weakened 0.7 percent to $1.2208, dropping to the weakest in almost eight weeks.
- The British pound dropped 0.4 percent to $1.3943.
- Germany’s 10-year yield increased five basis points to 0.63 percent, the highest in six weeks.
- Britain’s 10-year yield climbed six basis points to 1.54 percent.
- Japan’s Topix index added 0.8 percent.
- Australia’s S&P/ASX 200 Index advanced 0.1 percent.
- South Korea’s Kospi rose 0.2 percent.
- Futures on Hong Kong’s Hang Seng Index climbed 0.1 percent.
- Futures on the S&P 500 Index rose 0.2 percent.
Here are some key events coming up this week:
- French President Emmanuel Macron continues a three-day visit to the U.S.
- U.S. GDP and jobless claims.
- Earnings season continues. Among those reporting: Amazon.com, Samsungand Credit Suisse.
- The European Central Bank has a rate decision on Thursday. Investors will watch for any sign that officials are preparing a shift in stimulus plans for their June meeting.
- Bank of Japan announces its latest policy decision Friday and releases a quarterly outlook report.
- Aluminum prices plunged after the U.S. softened its position on sanctions against Russia’s United Co. Rusal.
- West Texas Intermediate crude rose 0.6 percent to $69.05 a barrel.
- Brent crude traded 0.2 pernce higher at $74.90 per barrel.
- Gold was at $1,325 an ounce after slipping 0.9 percent.
- Sugar ended lower for the second day at 11 cents per pound ; down 3.7 percent.
Stories You Might’ve Missed
- The Singapore Exchange plans to migrate all Nifty and bank Nifty positions to new contracts from June 4
- Walmart is closing in on a $12 billion-plus deal for Flipkart
- How long is a quarter? Six months if you’re Reliance Jio
- BQ Opinion: PM Modi is clever, if only he was lazy too!
- U.S. Treasuries yield couldn't crack the 3 percent mark. Morgan Stanley thinks that will trigger a rally.
- Amazon's next big bet are robots for your home
- How Lenovo turned into the world's worst tech stock
- Flight records illuminate mystery of Trump's Moscow nights
Nifty Earnings To Watch
Other Earnings To Watch
- Coromandel International
- GIC Housing Finance
- ICICI Prudential Life
- IDFC Bank
- Network18 Media
- Oberoi Realty
- Persistent Systems
- TV18 Broadcast
- Zensar Tech
- Bharat Immunologicals
- DCM Shriram
- India Grid Trust
- Pioneer Distilleries
- Reliance Home Finance
- Sadbhav Engineering
- Supreme Petrochem
- Tejas Networks
Earnings Reactions To Watch
Bharat Financial (Q4, YoY)
- Revenue from operations up 46.5 percent at Rs 539 crore.
- Net profit of Rs 210.5 crore nersus net loss of Rs 235 crore.
- Provisions at Rs 0.6 crore versus Rs 8.6 crore (QoQ).
- Loan portfolio growth at 38 percent.
- Loan disbursements up 26 percent.
Bharti Infratel (Q4, QoQ)
- Revenue up 0.2 percent to Rs 3,662 crore.
- Ebtida down 0.4 percent to Rs 1,606 crore.
- Ebitda margin at 43.8 percent versus 44.1 percent.
- Net profit up 3.6 percent at Rs 606 crore.
- Tenancy ratio at 2.3 times versus 2.38 times.
Reliance Naval And Engineering (Q4, YoY)
- Revenue down 85.5 percent at Rs 33 crore.
- Net loss of Rs 409 crore versus net loss of Rs 140 crore.
- Ebitda loss at Rs 216 crore versus Ebitda profit of Rs 5 crore.
3i Infotech (Q4, QoQ)
- Revenue up 17.5 percent at Rs 279 crore.
- Net profit unchanged at Rs 23 crore.
- Ebit up 12 percent at Rs 43 crore.
- Margin at 15.4 percent versus 16.2 percent.
GNFC (Q4, YoY)
- Revenue up 46.5 percent at Rs 1,764 crore.
- Net profit up 38 percent at Rs 329 crore.
- Exceptional Gain of Rs 292 crore in base quarter.
- Ebitda up 16.5 times at Rs 471 crore.
- Margin at 26.7 percent versus 2.4 percent.
Swaraj Engines (Q4, YoY)
- Revenue up 15 percent at Rs 185 crore.
- Net profit up 20 percent at Rs 18 crore.
- Ebitda up 16.7 percent at Rs 28 crore.
- Margin at 15.1 percent versus 14.9 percent.
LIC Housing Finance (Q4, YoY)
- Net Interest Income down 1.4 percent at Rs 1,058 crore.
- Net profit up 2 percent at Rs 539 crore.
Indiabulls Ventures (Q4, YoY)
- Revenue up 131 percent at Rs 273 crore.
- Net profit up 13 percent at Rs 61 crore.
- Ebitda down 60 percent at Rs 16 crore.
- Margin at 5.9 percent versus 34 percent.
Kewal Kiran Clothing (Q4, YoY)
- Revenue flat at Rs 120 crore versus Rs 121 crore.
- Net profit down 19 percent at Rs 19.5 crore.
- Ebitda down 16 percent at Rs 26 crore.
- Margin at 21.7 percent versus 25.6 percent.
Reliance Infra (Q4, YoY)
- Revenue up 4 percent at Rs 5,167 crore.
- Net profit at Rs 160 crore versus Rs 41 crore.
- Ebitda up 49 percent at Rs 829 crore.
- Margin at 16 percent versus 11.2 percent.
Stocks To Watch
- Thomas Cook’s shareholders to get 1,889 shares of Quess Corp for every 10,000 shares held.
- Shilpi Cables gets 90-day extension for corporate insolvency resolution.
- Music Broadcast to acquire radio business of Ananda Offset on slump sale basis.
- Geojit Financial to set up asset management company.
- MOIL will procure its entire silica sand requirement from Hindustan Copper’s Madhya Pradesh unit.
- JSW Steel, Aion has found eligible resolution applicant for Monnet Ispat: Bloomberg.
- Swaraj Engines board recommended 500 percent dividend.
- Jet Airways signed codeshare pact with Aeromexico.
- Astron Paper entered into MOU with Balaram Papers to take over its Gujarat plant.
- Bharti Airtel plans network expansion in Gujarat with 6000 new sites and 2,000 kilometres of optic fiber in FY19 to strengthen mobile broadband footprint.
- India considering sugar cane production subsidy, GST cut on ethanol.
- Minda Corp: Ashish Kacholia bought 10.80 lakh shares or 0.5 percent equity at Rs 182 each.
- Cimmco: Equity Intelligence India sold 1.11 lakh shares or 0.4 percent equity at Rs 94.8 each.
- Norges Bank - Government pension fund bought 17.50 lakh shares or 1.7 percent equity at Rs 508 each.
- Nomura India Investment Fund Mother Fund sold 17.54 lakh shares or 1.7 percent equity at Rs 508 each.
- Ratnabali Investment bought 43 lakh shares or 5 percent equity at Rs 83.58 each.
- Tarish Investment and Trading Company sold 31 lakh shares or 3.6 percent equity at Rs 83 each.
- SKM Egg Products Export (India) Ltd circuit filter revised to 10 percent.
- NBCC last trading day before stock split to Re 1 from Rs 2 per share.
- NSE announced physical settlement for 46 stocks trading in F&O segment.
Who’s Meeting Whom
- Hikal to meet investors/analysts on April 24.
- Shalby to meet Motilal Oswal AMC on April 24.
- KDDL to meet investors/analysts from April 24–25.
- Ganesha Ecosphere to meet investors/analysts on April 24.
- Garnet International promoter Suresh Gaggar acquired 30,331 shares on April 23.
- Liberty Shoes promoter Arpan Gupta sold 6,500 shares on April 20.
- JP Associates promoter Prabodh Vora sold 10,000 shares on April 18.
- KM Sugar Mills promoter Francoise commerce sold 2.97 lakh shares on April 20.
- Adani Power promoter Pan Asia Trade & Investments acquired 45 lakh shares on April 20.
- SH Kelkar promoter Kedar Vaze sold 77,019 shares from April 19–20.
- Rupee closed at 66.48/$ on Monday from 66.12/$ on Friday.
Top Gainers And Losers
- Nifty April futures closed trading at 10,585.5 with a premium of 1.45 points versus 21.5 points.
- Nifty May futures trading at 10,612.8 with premium of 28.8 points.
- Nifty rollover at 18 percent, Bank Nifty rollover at 14 percent.
- All series: Nifty open interest up 2 percent, Bank Nifty open interest up 5 percent.
- India VIX ended at 13.1, up 1.6 percent.
- Max open interest for April series at 10,700 (open interest at 48.5 lakh, down 3 percent).
- Max open interest for April series shifts to 10,500 (open interest at 57.7 lakh, up 5 percent).
- In ban: Balrampur Chini, Dewan Housing, Jet Airways, JP Associates, TV18 Broadcast.
- Out of ban: Reliance Communications.
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.
- Nifty PCR at 1.63 versus 1.61
- Nifty Bank PCR at 1.42 versus 1.38
Active Stock Futures
HSBC on M&M
- Maintained ‘Buy’; hiked price target to Rs 890 from Rs 840
- March quarter results and delay in new launches to not impact the current and next fiscal estimates.
- Price target hiked to largely factor in the increase in subsidiaries’ values.
- Monsoon forecast positive for the rural-driven tractor industry.
- Stable existing auto portfolio and strong tractor market provide robust earnings visibility.
Nomura on Alkem Labs
- Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 2,089 from Rs 2,298.
- Stock fall factors in concerns on Daman.
- Cut earnings per share estimates by 13 percent and 9 percent for the current and the next financial years to factor in lower U.S. sales.
- Positive stance driven by high contribution from India.
- India business to sustain growth ahead of broader market.
Credit Suisse on India Life Insurance
- APE growth moderated, but structural drivers intact.
- Macroeconomics drivers in place for sustained growth.
- Players having strong bank tie-ups outperforming.
- Rising RoEV will help sustain elevated multiples.
- ICICI Pru, SBI Life top picks; HDFC Life too expensive.
- ICICI Pru: Maintained ‘Outperform’; cut price target to Rs 495 from Rs 510.
- SBI Life: Initiated ‘Outperform’ with a price target of Rs 716.
- HDFC Life: Initiated ‘Outperform’ with a price target of Rs 496.
Motilal Oswal on Infosys
- Maintained ‘Buy’ with a price target of Rs 1,330.
- Granular strategy articulated around digital, core business, sales and talent.
- Company cited that the current financial year will be a year of stabilization.
- Next financial year to be a year of momentum building and the financial year-ending March 2021 will be a year of acceleration
- Expect current financial year to be a better year for BFS than the previous financial year.
- Multi-pronged investments in sales to focus on digital, large deals and new accounts.
Credit Suisse on Infosys
- Maintained ‘Neutral’ with a price target of Rs 1,100.
- New strategy well-articulated, but similar to peers; execution would be the key.
- Management indicated intention to make sales and marketing more robust.
- No new clarity on new margin guidance.
- Investments cited by the company are valid for Infosys.
Nomura on Bharti Infratel
- Maintained ‘Neutral’ with a price target of Rs 354.
- Earnings beat estimates in March quarter; Tenancy exits accelerate.
- Net profit beat driven by spike in other income.
- Reasonable results as telco consolidation is taking a toll on tenancies.
Credit Suisse on Bharti Infratel
- Maintained ‘Outperform’; cut price target to Rs 400 from Rs 430
- March quarter results were inline with known headwinds.
- Maintained Ebitda and cash flow at healthy levels.
- Energy reimbursement margins touched an all-time high of 11 percent.
- Expect next couple of quarters to remain subdued.
Morgan Stanley on Cement
- Cement prices have strengthened/been flattish across region in Apr 2018.
- Expect prices to remain firm till mid/end May.
- Expect demand growth and rising utilisation to lend pricing power.
- Pricing power to drive margin expansion in the next financial year.
- Dealers are skeptical about the sustainability of price hike given muted demand growth.