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.
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Here’s a quick look at all that could influence equities on Wednesday.
- 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.
- 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.
- 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
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- 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
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
- 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.
- Divis Lab promoter Madhusudana Rao Divi sold 9,561 shares from April 23–24.
- 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
- 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)
- 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.
- Nifty PCR at 1.52 versus 1.51
- Nifty Bank PCR at 1.65 versus 1.64
Stocks Seeing High Open Interest Change
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.