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.

• 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

Nifty Earnings To Watch

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.

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.

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.

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.

Rupee

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

Top Gainers And Losers

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

Fund Flows

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.