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 25

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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.

Global Cues

  • 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.

Europe Check

  • 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.

Asian Cues

  • 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.

Commodity Cues

  • 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.

Stories You Might’ve Missed

Indian ADRs

Nifty Earning To Watch

  • Wipro
  • 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
  • GHCL
  • Khaitan Electricals
  • KSB Pumps
  • Meera Industries
  • Miven Machine Tools
  • Soril Holdings And Ventures
  • Sterlite Technologies
  • Wendt

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.

Also Read: Bharti Airtel’s Profit Declines 73% In March Quarter

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.

Bulk Deals

  • 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.

Advanced Enzyme

  • 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.

Ajmera Realty

  • 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.

Insider Trades

  • 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.

Trading Tweaks

  • 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

  • Rupee closed at 66.39/$ on Tuesday from 66.48/$ on Monday.

Top Gainers And Losers

F&O Cues

  • 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).

F&O Ban

  • 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.

Put-Call Ratio

  • Nifty PCR at 1.70 versus 1.63.
  • Nifty Bank PCR at 1.32 versus 1.42.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

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.
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