Employees pass though a security check at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)  

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.

Global Cues

  • 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.

Also read: How 3 Percent Yields Could Reshape the Investing Landscape

Europe Check

  • 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.
All You Need To Know Going Into Trade On April 24
  • 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.

Asian Cues

  • 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.

Commodity Cues

  • 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

Indian ADRs

All You Need To Know Going Into Trade On April 24

Nifty Earnings To Watch

All You Need To Know Going Into Trade On April 24

Other Earnings To Watch

  • Coromandel International
  • GIC Housing Finance
  • HUDCO
  • ICICI Prudential Life
  • IDFC Bank
  • Network18 Media
  • Oberoi Realty
  • Persistent Systems
  • Raymond
  • Tinplate
  • TV18 Broadcast
  • Zensar Tech
  • Bharat Immunologicals
  • DCM Shriram
  • India Grid Trust
  • Pioneer Distilleries
  • Reliance Home Finance
  • Sadbhav Engineering
  • Supreme Petrochem
  • Tejas Networks
  • TRF

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.

Bulk Deals

  • 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.

Laurus Labs

  • 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.

Astra Microwave

  • 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.

Trading Tweaks

  • 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.

Insider Trades

  • 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

  • Rupee closed at 66.48/$ on Monday from 66.12/$ on Friday.

Top Gainers And Losers

All You Need To Know Going Into Trade On April 24

F&O Cues

  • 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).

F&O Ban

  • 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.

Put-Call Ratio

  • Nifty PCR at 1.63 versus 1.61
  • Nifty Bank PCR at 1.42 versus 1.38

Active Stock Futures

All You Need To Know Going Into Trade On April 24

Fund Flows

All You Need To Know Going Into Trade On April 24

Brokerage Radar

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.