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.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

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.
  • 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

Nifty Earnings To Watch

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

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

Fund Flows

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.
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