All You Need To Know Going Into Trade On May 2

Asian stocks were mixed as trading resumed in several key markets after holidays, while the dollar steadied near four-month high.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent lower at 10,753.50 as of 6:45 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 Wednesday.

Global Cues

• U.S. stocks closed mixed, with Apple Inc. leading a late afternoon rally in tech shares that helped offset a drop in industrials sparked by weak production data.
• The yield on 10-year Treasuries increased two basis points to 2.97 percent.
• European markets were closed on account of labour day.

Asian Cues

• The MSCI Asia Pacific Index fell 0.2 percent.
• Topix index dipped 0.2 percent.
• Kospi index fell 0.3 percent.
• Australia’s S&P/ASX 200 Index rose 0.1 percent.
• Futures on the S&P 500 Index fell 0.2 percent.
• Japan’s 10-year yield fell less than one basis point to 0.039 percent.
• Australia’s 10-year yield rose one basis point to 2.765 percent.

Commodity Cues

• West Texas Intermediate crude rose 0.3 percent to $67.43 a barrel.
• Brent crude traded 0.1 percent higher at $73.19 per barrel.
• Gold rose 0.3 percent to $1,307.13 an ounce.
• LME copper gained 0.7 percent to $6,790 per metric ton.
• Aluminium ended 0.1 percent higher at $2,266.5 per MT.
• Sugar ended 0.5 percent lower at 11.69 cents per pound.

Stories You Might’ve Missed

• IndiGo's co-founder says the airline won’t "miss a hearbeat" in transition to new CEO
• L&T is letting go of its electrical and automation division to sharpen core business focus
• Automakers had a cheerful start to the new fiscal
• Fitch thinks Rabindranath Tagore had the best tip for India’s fiscal deficit problem
• Companies are binging on renewable power
• Bank of England's rate expectations have gone a full circle
• Twitter has inked over 30 deals to beef its content offering
• Here's a definitive guide to track snow leopards at over 13,000 feet

Indian ADRs

Nifty Earnings To Watch

Other Earnings To Watch

• Ajanta Pharma
• Astec Lifesciences
• Century Textiles & Industries
• HT Media
• InterGlobe Aviation
• International Paper APPM
• JM Financial
• Kansai Nerolac Paints
• Marico
• Siemens
• Tata Power
• Welspun Corp

Earnings Reactions To Watch

Hindustan Zinc (Q4, YoY)

• Revenue flat at Rs 6,277 crore.
• Net profit down 18 percent at Rs 2,505 crore.
• Ebitda down 3 percent at Rs 3,620 crore.
• Margin at 57.7 percent versus 59.8 percent.

CEAT (Q4, YoY)

• Revenue up 14 percent at Rs 1,674 crore.
• Net profit up 17 percent at Rs 77 crore.
• Ebitda up 50 percent at Rs 198 crore.
• Margin at 11.8 percent versus 9 percent.

Alicon Castalloy (Q4, YoY)

• Revenue up 43 percent at Rs 298 crore.
• Net profit at Rs 13 crore versus Rs 8 crore.
• Ebitda at Rs 37 crore versus Rs 25.5 crore.
• Margin at 12.4 percent versus 12.3 percent.

KPR Mills (Q4, YoY)

• Revenue up 5 percent at Rs 820.5 crore.
• Net profit up 1 percent at Rs 73 crore.
• Ebitda up 7.5 percent at Rs 150.5 crore.
• Margin at 18.3 percent versus 17.9 percent.

Dabur (Consolidated, Q4, YoY)

• Revenue up 6 percent at Rs2033 crore.
• Net profit up 19 percent at Rs397 crore.
• Ebitda up 16 percent at Rs 485 crore.
• Margin at 23.9 percent versus 21.8 percent.
• Domestic volume growth at 7.7 percent.

Stocks To Watch

• Maruti Suzuki sales rose 14.4 percent to 1.72 lakh units.
• Tata Motors sales grew 86 percent to 53,511 units.
• Mahindra & Mahindra sales were 22 percent higher at 48,097 units.
• Eicher Motors sales jumped 27 percent at 76,187 units.
• TVS Motor Company sales grew 24 percent to 3.04 lakh units.
• Escorts sales rose 26.3 percent at 6,186 units.
• IHH raises Fortis Healthcare bid to Rs 175 per share.
• Munjals-Burmans increase Fortis offer to Rs 1,800 crore.
• M&M to acquire up to 10 percent equity in Canada's Resson Aerospace Corp for about Rs 34.5 crore.
• Max, Exide Life shortlisted for IDBI Federal Life Insurance stake sale; valuation likely to be over Rs 6,000 crore: Economic Times.
• L&T will sell electrical and automation division to Schneider for Rs 14,000 crore.
• BHEL gets 900 MW Nepal Hydropower project orders.
• Mahindra Lifespaces joint venture gets multi-product notification for its special economic zones.
• Lakshmi Vilas Bank sets one-year MCLR at 9.45 percent from May 1.
• Mastek wins contract for U.K. Home Office Biometrics.
• Maithan Alloys to set up 1.2 lakh tonne per annum ferro alloy plant in West Bengal.
• Grasim Industries partially commissioned its expanded Vilayat facility.
• MOIL says Ferro grade & fines prices have been reduced by 15 percent in Q1. 5 percent discount on 4 specific grade and prices of chemical grades of ore decreased by 7.5 percent.
• Sudhir Valia to infuse Rs 3,510 crore into Jaypee Infra projects in Noida: Financial Express.

Insider Trades

• Divis Lab promoter Madhusudana Rao Divi sold 9,561 shares from April 23–24.

Trading Tweaks

• Lasa Supergenerics circuit filter revised to 10 percent.
• Bhushan Steel circuit filter revised to 5 percent.
• 5Paisa Capital, Kingfa Science & Technology (India), Vimta Labs out of T group.
• MMTC last trading day before going ex bonus.

Top Gainers And Losers

F&O Cues

• Nifty May futures closed at 10,780.3 with premium of 41 points versus 31.8 points
• May Series: Nifty open interest up 2 percent, Bank Nifty open interest down 3 percent
• India VIX ended at 12.36, up 2.8 percent
• Max open interest for May series at 11,000 (open interest at 56.8 lakh, up 11 percent)
• Max open interest for May series at 10,500 (open interest unchanged at 37.5 lakh)

F&O Ban

• In ban: PC Jeweller
• New in ban: PC Jeweller

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.52 versus 1.51
• Nifty Bank PCR at 1.65 versus 1.64

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

CLSA On Kotak Mahindra Bank

• Maintained ‘Outperform’; hiked price target to Rs 1,360 from Rs 1,210.
• March quarter’s net profit below estimates due to higher investment provisions.
• Healthy CASA growth, but topline lagged due to NIM pressure.
• Asset quality stable; would watch out for unsecured lending.
• Expect 24 percent compounded growth rate in net profit over the fiscal 2018-2021, led by topline rise and stable credit costs.

Citi On Kotak Mahindra Bank

• Maintained ‘Buy’; hiked price target to Rs 1,430 from Rs 1,230.
• March quarter earnings reported strong growth trends across bank and subsidiaries.
• Subsidiaries on strong footing.
• Kotak is steadily gaining market share in main banking business.
• Kotak is one of the better diversified financial services play.

Macquarie On HDFC

• Maintained ‘Outperform’ with price target of Rs 2,305
• March quarter’s net profit was inline with estimates adjusted for one-offs.
• HDFC going down the market chain to deliver growth.
• Catalyst: HDFC AMC IPO and increase in stake in HDFC Bank.
• Return of AUM growth could only drive core-book value re-rating.

Credit Suisse On HDFC

• Maintained ‘Outperform’ with a price target of Rs 2,250.
• March quarter results were inline on the back of healthy assets under management and strong loan growth.
• Retail loan growth picking up; Core profitability remains strong.
• Steady AUM growth; stable spreads.
• Asset quality trends remained benign.

HSBC On Hindustan Zinc

• Maintained ‘Buy’; hiked price target to Rs 390 from Rs 370.
• Operating income during March quarter was broadly in-line.
• Tightening Zinc market and rising silver output support robust outlook.
• Raise operating income estimates for the current and the next financial year to factor in higher silver guidance and weak Indian rupee.

Investec On Hindustan Zinc

• Maintained ‘Buy’; cut price target to Rs 409 from Rs 413.
• March quarter’s operating income was in-line; volume guidance increased till March 2020.
• No final dividend was a disappointment.
• Expect strong volume growth, lower cost and ramp-up in silver production.
• Silver business to surprise and drive re-rating.

CLSA On Tata Motors

• Maintained ‘Sell’ with a price target of Rs 330.
• JLR’s German peers are raising their R&D spends to decade highs.
• JLR needs to invest rapidly to keep pace with peers.
• Investment pressures coming in weak demand and product cycle.
• Cashflows to remain weak even in the current and the next financial year.