Silhouetted employees pass though security as they enter the National Stock Exchange (NSE) in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On April 27

Asian stocks climbed as the latest bout of earnings results buoyed sentiment in the technology sector and traders monitored a historic meeting between the leaders of North and South Korea.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,664.50 as of 7:15 a.m.

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

Global Cues

  • U.S. equities rose, with technology shares rallying after strong earnings from Facebook Inc. and Advanced Micro Devices Inc. offered a reprieve for bulls.
  • The yield on 10-year Treasuries decreased four basis points to 2.99 percent, the first retreat in more than a week and the biggest tumble in almost three weeks.

Europe Check

  • European stocks rose on Thursday, as a retreat in the euro fueled hopes of fewer currency headwinds for the region’s corporate profits.
  • Defensive bond-proxy sectors including food and beverage, telecoms and utilities were among the biggest gainers as government bond yields dropped back.
All You Need To Know Going Into Trade On April 27
  • The euro eased 0.5 percent to $1.2105.
  • The British pound fell less than 0.1 percent to $1.3919.
  • Germany’s 10-year yield sank four basis points to 0.59 percent.
  • Britain’s 10-year yield decreased four basis points to 1.50 percent.

Asian Cues

  • Japan’s Topix index advanced 0.3 percent.
  • Australia’s S&P/ASX 200 Index added 0.4 percent.
  • Futures on Hong Kong’s Hang Seng index rose 0.6 percent.
  • The S&P 500 Index rose 1 percent.

Here are some key events coming up this week:

  • U.S. GDP data are due Friday.
  • The Bank of Japan announces its latest policy decision Friday and releases updated economic projections.

Commodity Cues

  • West Texas Intermediate crude fell 0.2 percent to $68.05 a barrel.
  • Brent crude halted two-month gain and ended 0.2 percent lower at $74.60 per barrel.
  • Gold was steady at $1,317.48 an ounce.
  • Aluminium extended gains for the second day and rose as much as 1.6 percent to $2,279.50 per metric tonne.

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Indian ADRs

All You Need To Know Going Into Trade On April 27

Nifty Earnings To Watch

  • Reliance Industries
  • Maruti Suzuki India
  • UPL
All You Need To Know Going Into Trade On April 27
All You Need To Know Going Into Trade On April 27
  • Bandhan Bank

Other Earnings To Watch

  • Equitas Holdings
  • IDFC
  • RBL Bank
  • Shoppers Stop
  • Shriram Transport Finance
  • Atul
  • Automobile Corporation Of Goa
  • Industrial & Prudential Investments Co
  • Jagran Prakashan
  • JSW Holdings
  • Khaitan
  • Mahindra Lifespace Developers
  • Nelco
  • Nivi Trading
  • Salem Erode Investments
  • Shriram Asset Management Co
  • Uniphos Enterprises
  • Vardhman Special Steels
  • VTM
  • Merck

Earnings Reactions To Watch

Axis Bank Q4 (YoY)

  • Net interest income flat at Rs 4,730 crore.
  • Net loss of Rs 2,189 crore versus profit of Rs 1,225 crore.
  • Provisions up 155 percent at Rs 7,195.5 crore (QoQ).
  • GNPA at 6.77 percent versus 5.28 percent (QoQ).
  • NNPA 3.4 percent versus 2.56 percent (QoQ).

Also read: Axis Bank Posts First Ever Loss As Bad Loans Pile Up

Biocon Q4 (YoY)

  • Revenue up 26 percent at Rs 1,169.5 crore.
  • Net profit up 2 percent at Rs 130 crore.
  • Ebitda up 24 percent at Rs 232.5 crore.
  • Margin at 19.9 percent versus 20.3 percent.

SBI Life Insurance FY18 (YoY)*

  • Annualised premium equivalent up 27 percent at Rs 8,540 crore.
  • Value of new business up 34 percent at Rs 1,390 crore.
  • VNB Margin at 16.2 percent versus 15.4 percent.
  • Solvency Ratio at 2.06 versus 2.04.
  • *Quarterly figures not given

Kirloskar Pneumatic Q4 (YoY)

  • Revenue up 90 percent at Rs 309 crore.
  • Net profit at Rs 48 crore versus Rs 18 crore.
  • Ebitda at Rs 75 crore versus Rs 26 crore.
  • Margin at 24.3 percent versus 16 percent.

AU Small Finance Bank Q4 (YoY)

  • Net interest income up 30 percent at Rs 287 crore.
  • Net profit up 6 percent at Rs 83 crore.
  • Provisions down 9 percent at Rs 30 crore (QoQ).
  • GNPA at 2.01 percent versus 2.83 percent (QoQ).
  • NNPA at 1.27 percent versus 1.87 percent (QoQ).

Shriram City Union Q4 (YoY)

  • Net interest income up 14 percent at Rs 812 crore.
  • Net profit at Rs 47 crore versus Rs 12 crore.

Rallis India Q4 (YoY)

  • Revenue up 7 percent at Rs 371 crore.
  • Net profit down 35.5 percent at Rs 20 crore.
  • Ebitda down 21 percent at Rs 33 crore.
  • Margin at 8.9 percent versus 12.1 percent.

Jindal Stainless (Hisar) Q4 (YoY)

  • Revenue up 10 percent at Rs 2,254 crore.
  • Net profit up 60 percent at Rs 96 crore.
  • Ebitda up 20 percent at Rs 286 crore.
  • Margin at 12.7 percent versus 11.6 percent.

Reliance Capital Q4 (YoY)

  • Revenue down 1 percent at Rs 5,000 crore.
  • Net profit up 3 percent at Rs 428 crore.

Accelya Kale Q4 (YoY)

  • Revenue down 2 percent at Rs 93 crore.
  • Net profit down 15 percent at Rs 22 crore.
  • Ebitda flat at Rs 37.5 crore.
  • Margin at 40.3 percent versus 39.5 percent.

IEX Q4 (YoY)

  • Revenue up 8 percent at Rs 55 crore.
  • Net profit up 15 percent at Rs 31 crore.
  • Ebitda up 23 percent at Rs 43 crore.
  • Margin at 78 percent versus 69 percent.

Essel Propack Q4 (YoY)

  • Revenue up 3 percent at Rs 628 crore.
  • Net profit up 2 percent at Rs 45 crore.
  • Ebitda down 3 percent at Rs 116 crore.
  • Margin at 18.5 percent versus 19.6 percent.

Aditya Birla Money Q4 (YoY)

  • Revenue up 28 percent at Rs 43.5 crore.
  • Net profit up 7 percent at Rs 4 crore.

Tata Metaliks Q4 (YoY)

  • Revenue up 36 percent at Rs 546 crore.
  • Net profit up 37.5 percent at Rs 55 crore.
  • Ebitda up 18 percent at Rs 88 crore.
  • Margin at 16.1 percent versus 18.6 percent.

Stocks To Watch

  • 15 IDBI officals named in bank fraud case, raids conducted at 50 locations: CBI Official.
  • Fortis to discuss further board restructuring on April 27.
  • Thermax won Rs 279 crore order for a captive cogeneration power plant.
  • IEX board decided not to go ahead with buyback.
  • Essel Propack’s board recommended 1:1 bonus issue.
  • Cyient acquired semiconductor firm Ansem N.V. in an all cash deal worth $17 million.
  • Gati approved inducting new strategic and/or financial partner.
  • CCI finds no Appreciable Adverse Effect on Competition in respect of Tata Steel’s proposed acquisition of Bhushan Steel.
  • Apollo Micro Systems said that the company officials were asked to appear before IT officials on April 25.
  • MOIL signed MoU with Ministry of Steel for FY19.
  • Mangalore Chemicals and Fertilisers shuts down ammonia, urea and ABC Plants for annual turnaround maintenance.

Bulk Deals

  • Coffee Day: Marina West (Singapore) Pte. Ltd. sold 12.66 lakh or 0.6 percent equity at Rs 332.05 each.
  • Karnataka Bank: Copthall Mauritius Investment sold 19.26 lakh shares or 0.7 percent equity at Rs 116.72 each.

Hawkins Cookers

  • EQ India Fund bought 46,071 shares or 0.9 percent equity at Rs 2,811.42 each
  • Equity Intelligence India bought 38,721 shares or 0.7 percent equity at Rs 2,811 each
  • Hober Mallow Trust sold 1.15 lakh shares or 2.2 percent equity at Rs 2,811.40 each

Karturi Global

  • Aspire Emerging Fund bought 2.16 crore shares or 1.4 percent equity at Rs 1.89 each.
  • Elara India Opportunities Fund sold 2.23 crore shares or 1.5 percent equity at Rs 1.89 each.

Trading Tweaks

  • Vakrangee shifted to T group.
  • HDIL circuit filter revised to 20 percent.

Who’s Meeting Whom

  • HCC to meet investors/analysts on May 3.

Insider Trades

  • VIP Industries promoters acquired 1.98 lakh shares on April 20.
  • Aarti Industries promoter Chandrakant gogri sold 8,000 shares from April 23–24.
  • Mercator promoter H K Mittal acquired 3 lakh shares on April 26.
  • Liberty Shoes promoter Arpan Gupta sold 6,750 shares from April 24–25.
  • Chaman Lal Setia promoters sold 1,000 shares on April 23.
  • Ashoka Buildcon promoter Ashok Katariya acquired 15,124 shares on April 25.
  • SH Kelkar promoter Kedar Vaze sold 1.13 lakh shares from April 23–25.

Rupee

  • Rupee closed at 66.76/$ on Thursday versus 66.90/$ on Wednesday.

Top Gainers And Losers

All You Need To Know Going Into Trade On April 27

F&O Cues

  • Nifty May futures closed trading at 10,632.5 with premium of 14.7 points versus 21.7 points.
  • Nifty rollover at 72 percent, Bank Nifty rollover at 83 percent.
  • All series: Nifty open interest up 6 percent, Bank Nifty open interest up 5 percent.
  • India VIX ended at 12.03, down 2.8 percent.
  • Max open interest for May series at 11,000 (open interest at 43.8 lakh, up 62 percent).
  • Max open interest for May series shifts to 10,500 (open interest at 30.6 lakh, up 47 percent).

F&O Ban

No stocks in ban

Put-Call Ratio

  • Nifty PCR at 1.48 versus 1.61.
  • Nifty Bank PCR at 1.25 versus 1.11.

Stocks Seeing High Open Interest Change

All You Need To Know Going Into Trade On April 27

Fund Flows

All You Need To Know Going Into Trade On April 27

Brokerage Radar

HSBC on Sun Pharma

  • Maintained ‘Buy’ with a price target of Rs 650.
  • AbbVie/Boehringer Ingelheim filed risankizumab, an anti-IL-23 biologic psoriasis drug for review.
  • Risankizumab could be a strong rival to Sun Pharma's Ilumya and other anti-IL drugs.
  • Risankizumab has strong clinical trial data.
  • US generic business remain under pressure, but maintain Buy on specialty portfolio.

HSBC on ICICI Lombard

  • Maintained ‘Reduce’; hiked price target to Rs 620 from Rs 610.
  • Group delivered improvement in profitability but disappointments on multiple fronts.
  • Risk: Under-reserving and fragmentation in motor and increasing losses in crop insurance.
  • Biggest upside is the passage of the Motor Vehicles bill.

Jefferies on Petronet LNG

  • Maintained ‘Buy’ with a price target of Rs 290.
  • Valuations much more reasonable in a normal risk environment.
  • Risk: Rising competition, regas tariffs and capital allocation.
  • Firm contracts cushion volume risks.
  • With LNG imports up 19 percent, expect March quarter to be steady.
  • Expect earnings per share to compound at 12 percent over the fiscal 2018-21.

MOSL on Axis Bank

  • Maintained ‘Buy’; cut price target to Rs 650 from Rs 600.
  • Weak March quarter on the asset quality front; Stressed asset recognition accelerates.
  • Incremental stress addition peaked out; Expected to decline.
  • Recovery to hold from October with normalisation in credit cost.
  • Cut earnings estimate for the current and the next financial year by 22 percent and 19 percent respectively to account for lower NII growth.

MOSL on Yes Bank

  • Maintained ‘Buy’; raised price target to Rs 444 from Rs 410.
  • Strong performance in a challenging quarter.
  • NII beat on account of better than expected loan growth.
  • Net interest margins decline (QoQ) led by higher borrowings and decline in CASA ratio.
  • Expect asset quality overhang to recede.
  • Expect improved visibility of growth and profitability.

Investec on Colgate Palmolive India

  • Maintained ‘Buy’; raised price target to Rs 1,280 from Rs 1,200.
  • Attractive oral care opportunity in India.
  • Patanjali intensity plateauing; Likely to moderate ahead.
  • Colgate improved execution in ayurveda category.
  • Wholesale channel disruption temporary.

CLSA on Supreme Industries

  • Maintained ‘Buy’; raised price target to Rs 1,557 from Rs 1,482
  • March quarterly results was a strong beat.
  • Stake sale in automotive component manufacturing to boost RoCE.
  • Expect ramp-up in revenue as approvals of composite cylinder secured.
  • Upgrade earnings per share for the current and the next financial year by 5-10 percent.

CLSA on Reliance Nippon

  • Maintained ‘Buy’ with a price target of Rs 330.
  • March quarter was slightly below estimates due to higher costs/lower topline.
  • Healthy AUM growth and better mix.
  • Cut in equity AUM fees to be passed to distributors.
  • Expect compounded growth rate of 22 percent in earnings over the fiscal 2018-21.

Nomura on Axis Bank

  • Maintained ‘Buy’; cut price target to Rs 630 from Rs 675.
  • Asset quality: Quantum negative but underlying quality not bad.
  • Operating performance weak; Impacted by asset quality pressure.
  • Expect credit cost to normalise to below 100 basis points by March 2020.
  • Expect return on equities to normalise to 15 percent by March 2020.

Nomura on Yes Bank

  • Maintained ‘Buy’; raised price target to Rs 500 from Rs 375
  • March quarter addressed concerns on asset quality.
  • Operationally strong quarter.
  • Quantum of loan growth needs more explanation.
  • Believe worst is behind; Expect a re-rating now.
  • Yes Bank is preferred pick in sector.