All You Need To Know Going Into Trade On April 25
Asian stocks followed their U.S. counterparts lower with industrial shares leading the decline.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.4 percent to 10,579.50 as of 6:55 a.m.
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Here’s a quick look at all that could influence equities on Wednesday.
- Stocks tumbled as a rout in the shares of industrial and technology companies sent indexes spiraling lower amid a raft of earnings and renewed selling in the bull market’s biggest winners.
- The yield on 10-year Treasuries rose one basis point to 2.99 percent, after breaking the 3 percent level for this first time 2014.
- European stocks held steady as investors assessed the implications of the 10-year U.S. Treasury yield climbing above the closely-watched 3 percent level for the first time since 2014.
- The euro fell less than 0.1 percent to $1.2226.
- The MSCI Asia Pacific fell 0.2 percent.
- Topix Index fell 0.5 percent.
- Kospi Index dropped 0.7 percent.
Here are some key events coming up this week:
- U.S. GDP and jobless claims are due.
- 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.
- West Texas Intermediate crude rose 0.2 percent to $67.86 a barrel.
- Brent crude traded higher at $74.07 per barrel, up 0.3 percent.
- Gold fell less than 0.1 percent to $1,329.67 an ounce.
- Sugar ended lower for the third day at 11.1 cents per pound, down 0.6 percent.
- Aluminium extended decline for the fourth day and fell 3.1 percent.
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Nifty Earning To Watch
- Ultratech Cement
Other Earnings To Watch
- Bajaj Corp
- Future Supply Chain
- ICICI Lombard General
- Indiabulls Real Estate
- Jindal Stainless
- Mahindra & Mahindra Financial Services
- Reliance Nippon Life AMC
- Syngene International
- Agro Tech Foods
- Khaitan Electricals
- KSB Pumps
- Meera Industries
- Miven Machine Tools
- Soril Holdings And Ventures
- Sterlite Technologies
Earnings Reactions To Watch
Bharti Airtel (Q4, QoQ)
- Revenue down 3 percent at Rs 19,634 crore.
- Net profit down 73 percent at Rs 83 crore.
- Ebitda down 7 percent at Rs 6,930 crore.
- Margins at 35.3 percent vs 36.8 percent.
- ARPU down 6 percent at Rs 116.
GIC Housing Finance (Q4, YoY)
- Revenue up 11 percent at Rs.297 crore.
- Net profit up 28 percent at Rs 60 crore.
Persistent Systems (Q4, QoQ)
- Revenue down 5.1 percent at Rs 752 crore.
- Net profit down 20 percent at Rs 73.7 crore.
- EBIT down 32.7 percent at Rs 66 crore.
- EBIT margins at 8.8 percent vs 12.4 percent.
DCM Shriram (Q4, YoY)
- Revenue down 3 percent at Rs 1,566 crore.
- Net profit down 67 percent at Rs 51 crore.
- Ebitda down 62 percent at Rs 85 crore.
- Margins at 5.4 percent.
IDFC Bank (Q4, YoY)
- Net Interest Income down 10 percent at Rs 453 crore.
- Net profit down 76 percent at Rs 42 crore.
- Provisions up 122 percent at Rs 242.5 crore.
- GNPA at 3.31 percent vs 5.62 percent (QoQ).
- NNPA at 1.69 percent vs 2.52 percent (QoQ).
Oberoi Realty (Q4, YoY)
- Revenue up 19 percent at Rs 345 crore.
- Net profit up 40 percent at Rs 143 crore.
- Ebitda up 22 percent at Rs 184 crore.
- Margins at 53.3 percent vs 52.1 percent.
Raymond (Q4, YoY)
- Revenue up 11 percent at Rs 1,630 crore.
- Net profit up 61 percent at Rs 53 crore.
- Ebitda up 32.5 percent at Rs 151 crore.
- Margins at 9.3 percent vs 7.7 percent.
Zensar Tech (Q4, QoQ)
- Revenue up 3 percent at Rs 815 crore.
- Net profit up 24 percent at Rs 73 crore.
- Other income of Rs 27 crore in the current quarter.
- EBIT down 8 percent at Rs 83 crore vs Rs 90 crore.
- Margins at 10.2 percent vs 11.3 percent.
Supreme Petrochem (Q4, YoY)
- Revenue up 3 percent at Rs 888 crore.
- Net profit down 41 percent at Rs 41 crore.
- Ebitda down 38 percent at Rs 69 crore.
- Margins at 7.8 percent vs 12.9 percent.
Stocks To Watch
- Bharti Airtel approves proposal to merge Indus Towers with Bharti Infratel.
- Ashoka Buildcon executes concession pact for Karnataka road project.
- Strides to divest holding in remaining API assets to Solara for Rs 131 crore.
- DCM Shriram Board approves expansion of PVC capacity for Rs 32 crore.
- GATI board meeting on April 26 to consider new financial/strategic partner.
- Indian Metals & Ferro Alloys says operations at Therubali plant suspended due to protests.
- Gokaldas Exports board approved opening of QIP issue at floor price of Rs 90.94 per share.
- Radiant Life revises offer for Fortis Healthcare.
- Zensar Board approves stock split of equity shares in the ratio 5:1.
- Raymond board approves Rs 300 crore development plan for 20 acres land at Thane.
- HIL Ltd starts commercial production at Gujarat plant.
- Autoline Industries in pact with Tae Sung, Korea.
- MPS to acquire Tata Interactive Systems.
- Hero MotoCorp hikes two-wheeler prices by up to Rs 625 to offset rising input cost.
- Hathway Cable: CLSA Global Markets Pte. Ltd sold 2.55 crore shares or 3.1 percent equity at Rs 35.99 each.
- Associated Alcohols & Breweries: Garnet Tradelink Pvt Ltd sold 1.10 lakh shares or 0.6 percent equity at Rs 384.64 each.
- HDFC MF bought 22 lakh shares or 2 percent equity at Rs 226 each.
- Promoter Chandrakant Rathi Innovations and Projects Private sold 23.30 lakh shares or 2.1 percent equity at Rs 226.03 each.
- ARIIL Trust bought 5 lakh shares or 1.4 percent equity at Rs 275.4 each.
- Promoter Rajnikant Ajmera sold 5 lakh shares or 1.4 percent equity at Rs 275.4 each.
- Chaman Lal Setia promoters sold 4,667 shares from April 19– 20.
- Divis Lab promoter Madhusudana Rao Divi sold 1,800 shares on April 20.
- Bhushan Steel circuit filter revised to 10 percent.
- NBCC ex date for 2:1 stock split. F&O lot size revised to 6,000.
- Rupee closed at 66.39/$ on Tuesday from 66.48/$ on Monday.
Top Gainers And Losers
- Nifty April futures closed trading at 10,617.9 with a premium of 3.6 points versus 1.45 points.
- Nifty May futures closed trading at 10,642 with premium of 27.7 points versus 28.8 points.
- Nifty Rollover at 28 percent, Bank Nifty Rollover at 31 percent.
- All series-Nifty open interest down 3 percent, Bank Nifty OI up 7 percent.
- India VIX ended at 11.8, down 9.5 percent.
- Max open interest for April series at 10,700 (open interest at 44.9 lakh, down 7.5 percent.
- Max open interest for April series shifts to 10,500 (open interest at 49.5 lakh, down 14 percent).
- In Ban: Balrampur Chini, Dewan Housing, GMR Infra, Wockhardt.
- New in Ban: Wockhardt.
- Out of Ban: Jet Airways, JP Associates, TV18 Broadcast.
Only intraday positions can be taken in stocks under F&O ban. There is a penalty in case of rollover of these positions.
- Nifty PCR at 1.70 versus 1.63.
- Nifty Bank PCR at 1.32 versus 1.42.
Stocks Seeing High Open Interest Change
Morgan Stanley on Telecom Subscribers Data
- Jio continues to see highest net adds.
- Top incumbents continued to gain from smaller operators.
- Airtel’s strong traction in data subscriber to be ARPU accretive.
- Idea-Vodafone: Subscriber addition strong; Data subscriber addition slowed.
BNP Paribas on Telecom Subscribers Data
- JioPhone gaining traction in rural markets.
- Jio's active subscribers catching up with those of incumbents.
- Broadband adds: Jio continues to lead; Good month for Airtel.
- Timing of recovery remains uncertain; Worst of down-trading seems behind.
Credit Suisse on ICICI Prudential
- Maintained ‘Outperform’; raised price target to Rs 515 from Rs 495.
- March quarter was strong; Sharp rise seen in margins and RoEV.
- Margin driven by product mix and cost saving.
- Improvement seen in persistency ratio.
- ICICI Prudential remains top pick in life insurance.
Credit Suisse on Persistent Systems
- Maintained ‘Outperform’ with a price target of Rs 960.
- March quarter remained weak, but better than estimates
- IBM alliance likely to grow in the current financial year.
- Double-digit growth looks possible in the current financial year.
- Believe there is scope for margins to expand.
- Persistent trades at attractive valuations.
Citi on Persistent Systems
- Maintained ‘Sell’ with a price target of Rs 655
- March quarter was weak, largely inline given the profit warning
- Management expects growth to be better in the current financial year.
- Persistent’s growth continues to lag peers despite an early start in digital.
- Improved execution is the key from here on.
Credit Suisse on M&M
- Maintained ‘Outperform’; raised price target to Rs 970 from Rs 940.
- Tractor momentum to remain strong with normal monsoon forecast.
- CV segment continues to do well; Segment also reaching break-even.
- Increase in price target driven by rise in subsidiary valuation.
Edelweiss Investment on Avanti Feeds
- Initiated ‘Buy’ with a price target of Rs 3,306.
- Royalty among shrimp feed produces.
- Healthy industry tailwinds coupled with rising demand for shrimp augur well for the company.
- Augmenting capacity to become largest shrimp processer in India.
- Shrimp feed and Processes shrimp demand to compound at 25 percent and 91 percent over the fiscal 2017-2020.
- Expect revenue and net profit to compound at 33 percent and 16 percent respectively over the fiscal 2018-2020.