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

Subscribe to Bloomberg | Quint
The Daily Newsletter
News & Stock Alerts

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!

BQ Live

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.

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.

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.

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

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.
BloombergQuint
Stay Updated With Stock Market News on BloombergQuint
Subscribe to Bloomberg | Quint
The Daily Newsletter
News & Stock Alerts