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.

• 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

Nifty Earnings To Watch

• Reliance Industries
• Maruti Suzuki India
• UPL

• 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).

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

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

Fund Flows

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.