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.
Short on time? Well, then listen to this podcast for a quick summary of the article!
Here’s a quick look at all that could influence equities on Thursday.
- 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.
- 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.
- 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.
- 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.
- 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.
Stories You Might’ve Missed
- Making sense of the Bharti Infratel-Indus Tower merger.
- Why is the Indian Rupee so weak right now?
- Netflix loving kids are killing cable television.
- BQ Opinion: Modi finally confronts India’s age-old oil dilemma.
- Productivity in U.K. was last this bad during the industrial revolution.
- Mumbai is all set to grow vertically, get more land for development.
- Tata Motors is betting on its new 'Ultra' trucks to drive a turnaround.
- Meet the stylish Husqvarna Svartpilen 401 motorcycle.
Nifty Earnings To Watch
Other Earnings To Watch
- AU Small Finance Bank
- 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
- Indian Energy Exchange
- JL Morison
- Jindal Stainless (Hisar)
- Kirloskar Pneumatic
- Oil Country Tubular
- Supreme Industries
- Tata Metaliks
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.
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.
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.
- 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.
- 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.
- 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
- 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.
- Rupee closed at an over 13-month low of 66.90/$ on Wednesday.
Top Gainers And Losers
- 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).
- 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.
- Nifty PCR at 1.61 versus 1.70.
- Nifty Bank PCR at 1.11 versus 1.32.
Stocks Seeing High Open Interest Change
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.