Pedestrians exit an escalator that runs past an electronic screen and ticker board that indicates stock figures at the Singapore Exchange Ltd. (Photographer: Bryan van der Beek/Bloomberg)

All You Need To Know Going Into Trade On April 26

Asian stocks traded mixed following a choppy U.S. session that saw equities close slightly higher as investors assessed the ongoing earnings season and the implications of rising U.S. bond yields.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded rose 0.3 percent o 10575 as of 7:05 a.m.

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Here’s a quick look at all that could influence equities on Thursday.

Global Cues

  • Most U.S. stocks closed higher after swinging between gains and losses while investors mulled the implications of rising U.S. bond yields and disappointing earnings.
  • The yield on 10-year Treasuries rose two basis points to 3.02 percent, reaching the highest in more than four years on its eighth straight advance.

Europe Check

  • European stocks ended lower, as the rise in U.S. Treasury yields above 3 percent and worries over corporate earnings in the U.S. hit sentiment across global equity markets.
All You Need To Know Going Into Trade On April 26
  • The euro declined 0.5 percent to $1.2172, the weakest in almost 15 weeks.
  • The British pound decreased 0.3 percent to $1.3933, touching the the weakest level in almost six weeks.
  • Germany’s 10-year yield was little changed at 0.63 percent.
  • Britain’s 10-year yield was little changed at 1.54 percent.

Asian Cues

  • Japan’s Topix index gained 0.1 percent as of 9:06 a.m. in Tokyo.
  • Futures on the S&P 500 Index added 0.2 percent after the cash market shut 0.2 percent higher on Wednesday. Nasdaq 100 futures rose 0.6 percent.
  • Australia’s S&P/ASX 200 Index slipped 0.1 percent.
  • Kospi index climbs 0.6 percent.
  • Futures on Hong Kong’s Hang Seng advanced 0.1 percent.

Here are some key events coming up this week:

  • U.S. GDP data are due Friday.
  • Earnings season continues, with Amazon.com among those due to report.
  • 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.
  • The Bank of Japan announces its latest policy decision Friday and releases a quarterly outlook report.
  • The leaders of North and South Korea meet Friday.

Commodity Cues

  • West Texas Intermediate crude rose 0.2 percent to $67.94 a barrel.
  • Brent Crude traded 0.7 percent higher at $74.48 per barrel.
  • Gold declined 0.6 percent to $1,322.76 an ounce.
  • Aluminium snapped four-day decline and ended 0.9 percent higher at $2,244.50 per metric tonne.
  • Copper traded 0.1 percent higher at $3.13 per pound.
  • Sugar ended lower for the fourth day, down 2.5 percent to 10.86 cents per pound.

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Indian ADRs

All You Need To Know Going Into Trade On April 26

Nifty Earnings To Watch

All You Need To Know Going Into Trade On April 26
All You Need To Know Going Into Trade On April 26

Other Earnings To Watch

  • AU Small Finance Bank
  • Biocon
  • Parag Milk Foods
  • Rallis India
  • Reliance Capital
  • SBI Life Insurance Company
  • Shriram City Union Finance
  • Tata Elxsi
  • Accelya Kale
  • Aditya Birla Money
  • Artson Engineering
  • Automotive Stampings
  • Coromandel Engineering
  • Essel Propack
  • HIL
  • Indian Energy Exchange
  • JL Morison
  • Jindal Stainless (Hisar)
  • Kirloskar Pneumatic
  • Oil Country Tubular
  • Supreme Industries
  • Tata Metaliks

Earnings Announced

Wipro Q4 (QoQ)

  • Revenue up 0.7 percent at Rs 13,769 crore.
  • Profit down 6.7 percent at Rs 1,800 crore.
  • EBIT down 3.9 percent at Rs 1,883 crore.
  • Margin at 13.7 percent versus 14.3 percent.

Also read: Wipro’s Profit Declines On Write-Off For Insolvent Client

ICICI Lombard Q4 (YoY)

  • Gross domestic premium up 10 percent at Rs 2,926 crore.
  • Profit up 18 percent at Rs 212 crore.
  • Combined ratio at 99.5 percent versus 97.1 percent.

Indiabulls Real Estate Q4 (YoY)

  • Revenue at Rs 2,028 crore versus Rs 437 crore.
  • Net profit at Rs 1,648 crore versus Rs 80 crore.
  • EBITDA at Rs 1,961.5 crore versus Rs 142 crore.
  • Margin at 96.7 percent versus 32.5 percent.

Mahindra & Mahindra Financial Services Q4 (YoY)

  • Income from operations grew 12.8 percent to Rs 2,060 crore.
  • Net profit grew 81 percent to Rs 424 crore.
  • Provisions at Rs 157 crore versus Rs 199 crore (QoQ).

Future Supply Chain Q4 (YoY)

  • Revenue up 50 percent at Rs 222 crore.
  • Net profit up 6 percent at Rs 18 crore.
  • Ebitda up 31.2 percent at Rs 31.5 crore.
  • Margin at 14.2 percent versus 16.2 percent.

Syngene International Q4 (YoY)

  • Revenue up 40.5 percent at Rs 409 crore.
  • Net profit up 8 percent at Rs 84 crore.
  • Ebitda up 28 percent at Rs 128 crore.
  • Margin at 31.3 percent versus 34.4 percent.

Jindal Stainless Q4 (YoY)

  • Revenue up 38 percent at Rs 3,173 crore.
  • Net profit down 29 percent at Rs 115 crore.
  • Ebitda up 24 percent at Rs 388 crore.
  • Margin at 12.2 percent versus 13.6 percent.

Wendt Q4 (YoY)

  • Revenue up 7 percent at Rs 40.5 crore.
  • Net profit at Rs 5 crore versus Rs 3 crore.
  • Ebitda at Rs 16.5 crore versus Rs 12 crore.
  • Margin at 40.7 percent versus 31.6 percent.

Agro Tech Foods Q4 (YoY)

  • Revenue up 4 percent at Rs 214 crore.
  • Net profit up 7 percent at Rs 7.5 crore.
  • Ebitda up 7 percent at Rs 15 crore.
  • Margin at 7 percent versus 6.8 percent.

Also read: UltraTech Cement’s Profit Misses Estimate On One-Time Stamp Duty Provision

Stocks To Watch

  • Wipro to sell hosted data center service operations for $450 million to Ensono.
  • Kitex Garments will form two new subsidiaries and invest Rs 200 crore in each of them.
  • Future Retail says NCLT’s Mumbai bench approves scheme of arrangement with Hypercity.
  • Indoco Remedies gets statement of GMP non-compliance from UK-MHRA for Goa plant-1.
  • Emami to consider bonus issue on May 3.
  • Soril Holdings & Ventures approves issue of shares worth up to Rs 330 crore to FPIs including Steadview Capital Mauritius, ABG Capital and LTR Focus Fund.
  • Shah Alloys signs settlement pact with ARCIL.
  • Airtel to transfer core network infra assets to unit Nxtra Data and sell submarine cables to Network i2i.
  • Cadila Healthcare says Zydus gets final approval from U.S. FDA for Methylprednisolone.
  • Fortis says Manipal-TPG sought to impose onerous conditions on the company that would cap ability for competitive bid process.
  • Renuka Ramnath resigned from Expert Advisory Committee of Fortis Healthcare formed for evaluating binding offers.
  • Uniply to allot 45.14 lakh equity shares at a premium of Rs 400.85 per share on a preferential basis to non-promoters. It will also allot 96.28 lakh convertible warrants at a premium of Rs 400.85 per warrant on a preferential basis.

Also read: Fortis Says Manipal’s New Offer Will Limit Ability To Run Competitive Bid Process

Bulk Deals

  • Shaily Engineering: HDFC MF bought 99,134 shares or 1.2 percent equity at Rs 1,300 each.
  • Hathway Cable: CLSA Global Markets Pte sold 4.75 crore shares or 5.7 percent equity at an average of Rs 33.8 each.
  • AVG Logistics: Girik Wealth Advisors bought 3.99 lakh shares at Rs 117 each.

Uniply

  • Malabar Value Fund bought 1.65 lakh shares or 0.7 percent equity at Rs 425 each.
  • Malabar India Fund bought 8.35 lakh shares or 3.5 percent equity at Rs 425.04 each.
  • Promoter Keshav Kantamneni sold 10 lakh shares or 4.2 percent equity at Rs 425 each.

Also read: Tata Motors’ New Range Of Commercial Vehicles To Drive Turnaround Strategy

Trading Tweaks

  • Reliance Naval and Engineering Limited to be excluded from F&O from June.

Who’s Meeting Whom

  • Indusind Bank to meet Blackrock, Norges Bank Invt Mgmt, Fidelity, JP Morgan AMC etc on April 25.
  • Atul to meet investors/analysts on May 4
  • Gabriel India to meet investors/analysts at its Chakan plant on April 26
  • Himadri Specialty to meet investors/analysts on April 26

Insider Trades

  • Empee Sugars & Chemicals promoter Empee Distilleries sold 14,050 shares on April 24.
  • Oriental Hotels promoter Dodla Reddy sold 31,846 shares from March 1–31.
  • VIP Industries promoter Vibhuti Investments acquired 62,356 shares on April 19.
  • Donear Industries promoter Ajay Agarwal HUF acquired 1,500 shares on April 24.
  • Liberty Shoes promoter Arpan Gupta sold 8,500 shares on April 23.
  • Rajesh Exports promoter Rajesh Mehta acquired 21,000 shares on April 24.
  • Ashoka Buildcon promoter Ashok Katariya acquired 18,856 shares on April 24.
  • Power Mech Projects promoter Vignatha Sajja sold 20,000 shares on April 23.

Also read: This Tata Firm Beat IT Peers In The Last Decade (It’s Not TCS)

Rupee

  • Rupee closed at an over 13-month low of 66.90/$ on Wednesday.

Top Gainers And Losers

All You Need To Know Going Into Trade On April 26

F&O Cues

  • Nifty April futures closed trading at 10,569 with discount of 1.5 points versus premium of 3.6 points.
  • Nifty May futures trading at 10,591.7 with premium of 21 points versus 27.7 points.
  • Nifty rollover at 45 percent, Bank Nifty rollover at 49 percent.
  • All series: Nifty open interest up 3 percent, Bank Nifty open interest up 7 percent.
  • India VIX ended at 12.3, up 4.2 percent.
  • Max open interest for April series at 10,700 (open interest at 40.5 lakh, down 10 percent).
  • Max open interest for April series shifts to 10,500 (open interest at 44.9 lakh, down 9 percent).

F&O Ban

  • In ban: Balrampur Chini, Dewan Housing, GMR Infra, Raymond, Wockhardt.
  • New in ban: Raymond.

Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.

Put-Call Ratio

  • Nifty PCR at 1.61 versus 1.70.
  • Nifty Bank PCR at 1.11 versus 1.32.

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On April 26

Fund Flows

All You Need To Know Going Into Trade On April 26

Brokerage Radar

CLSA on Bharti Infratel

  • Maintained ‘Outperform’ with a price target of Rs 364.
  • Indus Towers valued at par with Bharti Infratel on EV/EBITDA.
  • Indus Towers valued at 12 percent discount to Bharti Infratel on EV/tower.
  • Bharti Infratel’s capital structure to be sub-optimal most merger.
  • Bharti Airtel and Vodafone holdings will be a stock overhang.
  • Merger is positive and creates a dominant tower company.

Nomura on Cummins

  • Upgraded to ‘Buy’ from ‘Neutral’; cut price target to Rs 890 from 898.
  • Stock correction provides buying opportunity.
  • Expect turnaround from current lows in powergen and exports.
  • Outsourcing to group companies has no impact on growth/margins.
  • Cummins trades at a discount to sector despite better RoE.

Citi on Maruti Suzuki

  • Maintained ‘Buy’; cut price target to Rs 10,800 from Rs 11,600.
  • Previous fiscal estimates cut due to volatility in other income.
  • Volume estimates for the current and the next financial cut due to lower industry volume outlook.
  • Expect market share to increase given strong model line-up.
  • Expect revenue, operating income and net profit to rise 14 percent, 31 percent and 25 percent respectively in the previous quarter.

Morgan Stanley on Oberoi Realty

  • Maintained ‘Overweight’ with a price target of Rs 549.
  • March quarter results were inline with estimates.
  • Revenue driven largely by Esquire project.
  • Net profit beats largely due to lower tax rate.
  • New sales down largely due to lower contribution from high-value Worli.

Nomura on Wipro

  • Maintained ‘Reduce’ with a price target of Rs 270.
  • Missed estimates on revenue margins and current quarter guidance front.
  • Growth dragged by India and APAC geographies.
  • BFSI/Manufacturing led growth; communications and consumer declined.

Investec on Wipro

  • Maintained ‘Hold’; cut price target to Rs 290 from Rs 304.
  • Disappointing March quarter with IT services revenues lower than expectations.
  • Revenue growth guidance for current quarter was also weak.
  • Client specific issues continue to haunt.
  • Margins likely to improve in the current financial year.
  • Valuations likely subdued versus peers.

Nomura on Ultratech Cement

  • Maintained ‘Buy’ with a price target of Rs 5,150.
  • March quarter results were strong; revenue/EBITDA ahead of estimates
  • JPA capacity fully integrated in just nine months; PBT break-even due by June 2020.
  • Volume growth to get better ahead of 2019 elections.
  • Continue to believe that cement sector is on the cusp of a cyclical upturn.
  • UltraTech appears best geared for upturn.