All You Need To Know Going Into Trade On May 3
Asian stocks traded mixed after the Federal Reserve said inflation is close to its target, without indicating any need to waiver from its path of gradually tightening monetary policy.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.5 percent to 10,705 as of 7:05 a.m.
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Here’s a quick look at all that could influence equities on Thursday.
- U.S. stocks fell to their lowest in a week and the dollar jumped as investors assessed the Federal Reserve’s signal that it’s in no rush to raise rates even as inflation rises to its target.
- The yield on 10-year Treasuries gained one basis point to 2.97 percent.
- European shares gained as the common currency weakened and the resources sector rallied on higher metal prices.
- The euro fell 0.4 percent to $1.1941.
- The British pound fell 0.4 percent to $1.3563.
- Germany’s 10-year yield climbed two basis points to 0.58 percent, the largest surge in more than a week.
- Britain’s 10-year yield climbed five basis points to 1.457 percent, the first advance in a week.
- Australia’s S&P/ASX 200 Index added 0.7 percent.
- Kospi index was little changed.
- Futures on Hong Kong’s Hang Seng Index slipped 0.6 percent.
- Futures on the S&P 500 Index were little changed.
- West Texas Intermediate crude fell 0.4 percent to $67.63 a barrel, after a 1 percent advance on Wednesday.
- Brent Crude traded 0.4 percent lower at $73.08 per barrel.
- Gold increased 0.3 percent to $1,308.21 an ounce.
- Aluminium ended higher for the third day, up 2.9 percent at $2,333 per MT.
- Sugar ended higher for the fifth day, its longest winning streak in three months; up 0.5 percent at 11.75 cents per pound.
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Nifty Earnings To Watch
- Adani Ports
Other Earnings To Watch
- Adani Power
- Castrol India
- Cera Sanitaryware
- Edelweiss Financial
- Greaves Cotton
- Hexaware Technologies
- IRB Infrastructure
- JSW Energy
- L&T Finance Holdings
- PNB Housing Finance
- Radico Khaitan
Earnings Reactions To Watch
TBZ (Q4, YoY)
- Revenue up 14 percent at Rs 434 crore.
- Net profit of Rs 7 crore versus net loss of Rs 5 lakh.
- EBITDA at Rs 19 crore versus Rs 7 crore.
- Margin at 4.4 percent versus 1.8 percent.
Godawari Power & Ispat (Q4, YoY)
- Revenue up 30 percent at Rs 743 crore.
- Net profit at Rs 100.5 crore versus Rs 15 crore.
- EBITDA at Rs 207.5 crore versus Rs 102 crore.
- Margin at 27.9 percent versus 17.8 percent.
Mahindra Logistics (Q4, YoY)
- Revenue up 23.5 percent at Rs 893 crore.
- Net profit at Rs 20.5 crore versus Rs 12 crore.
- EBITDA at Rs 38 crore versus Rs 20.5 crore.
- Margin at 4.3 percent versus 2.8 percent.
Astec Lifesciences (Q4, YoY)
- Revenue up 48 percent at Rs 128 crore.
- Net profit at Rs 17 crore versus Rs 3.5 crore.
- EBITDA at Rs 30.5 crore versus Rs 16.5 crore.
- Margin at 23.85 percent versus 19.1 percent.
International Paper APPM (Q4, YoY)
- Revenue up 5 percent at Rs 340 crore.
- Net profit at Rs 33 crore versus Rs 16 crore.
- EBITDA up 21 percent at Rs 77.5 crore.
- Margin at 22.8 percent versus 19.8 percent.
Tata Power (Q4, YoY)
- Revenue up 13 percent at Rs 7,895 crore.
- Net profit of Rs 1,404 crore versus net loss of Rs 242 crore.
- EBITDA up 10 percent at Rs 1,487.5 crore.
- Margin at 18.8 percent versus 19.3 percent.
Siemens (Q4, YoY)
- Revenue up 12 percent at Rs 3,283 crore.
- Net profit up 18 percent at Rs 220 crore.
- EBITDA up 15 percent at Rs 322 crore.
- Margin at 9.8 percent versus 9.5 percent.
InterGlobe Aviation (Q4, YoY)
- Revenue up 20 percent to Rs 5,799 crore.
- Net profit down 73 percent to Rs 118 crore.
- EBITDAR down 16 percent to Rs 1,123 crore.
- EBITDAR margin at 19.4 percent versus 27.5 percent.
Shanthi Gears (Q4, YoY)
- Revenue up 10 percent at Rs 55 crore.
- Net profit up 60 percent at Rs 9.6 crore.
- EBITDA down 7 percent at Rs 7 crore.
- Margin at 12.7 percent versus 15 percent.
NFL (Q4, YoY)
- Revenue up 13 percent at Rs 2,096 crore.
- Net profit down 24 percent at Rs 68 crore.
- EBITDA down 16 percent at Rs 139 crore.
- Margin at 6.6 percent versus 8.9 percent.
Stocks To Watch
- Biocon gets Form 483 with seven observations for Bangalore facility.
- Madras Fertilizer's ammonia and urea plants shutdown due to critical naphtha inventory.
- Techno Electric to acquire 26 percent stake in Kohima-Mariani Transmission from Kalpataru Power.
- Sical Logistics gets letter of acceptance from Northern Coalfields Ltd. for excavation of overburden at Amlohri for Rs 1,345 crore.
- Mukand Ltd. allots 20 lakh equity shares at Rs 579.57 per share on a preferential basis to Sumitomo Corp., Japan.
- Cadila Healthcare says Zydus received final approval from U.S. FDA for Bumetanide Tablets.
- Fineotex Chemicals is looking to expand value added business and has engaged global M&A advisory firm for acquisitions of up to $30 million.
- Power Grid approves Rs 461 crore of investment proposals.
- Kridhan Infra unit bags order worth Rs 56.6 crore.
- Adani Transmission appoints Anil Sardana as CEO.
- Equitas: Creation Investments Equitas Holdings LLC sold 24.24 lakh shares (0.7 percent) at Rs 165 each.
- MT Educare: Zee Learn’s two day offer to buy back shares begins.
- DCM Shriram circuit filter revised to 10 percent.
- MMTC ex-date for 1:2 bonus issue.
- VIP Industries promoters acquired 2.04 lakh shares on April 25.
- Gateway Distriparks promoters acquired 4.25 lakh shares from April 27 – 30.
- SH Kelkar promoter Kedar Vaze sold 1.06 lakh shares from April 26 – 27.
- Rupee closed at 66.67/$ on Wednesday from 66.66/$ on Friday.
Top Gainers And Losers
- Nifty May futures closed trading at 10,739 with premium of 29.4 points versus 41 points.
- All series: Nifty open interest unchanged, Bank Nifty open interest up 1 percent.
- India VIX ended at 12.8, up 3.86 percent.
- Max open interest for May series at 11,000 (open interest at 60.3 lakh, up 6 percent).
- Max open interest for May series at 10,500 (open interest at 45.6 lakh, up 22 percent).
- In ban: PC Jeweller, IRB Infra
- New in ban: IRB Infra
Only intraday positions can be taken in stocks under F&O ban. There is a penalty in case of rollover of these intraday positions.
- Nifty PCR unchanged at 1.52
- Nifty Bank PCR at 1.52 versus 1.65
Stocks Seeing High Open Interest Change
Credit Suisse on Hero MotoCorp
- Maintained ‘Neutral’; raised price target to Rs 3,760 from Rs 3,560.
- March quarter results were inline; Gross margins were better than expected.
- Healthy outlook for 2018-19 – banking on product launches to maintain leadership.
- Stay neutral on muted earnings growth outlook.
Edelweiss on InterGlobe Aviation
- Maintained ‘Buy’; cut price target to Rs 1,651 from Rs 1,655.
- Yield disappoints; Volumes & cost surpass estimates.
- Yield plunged on muted industry pricing environment.
- Expect robust 20 percent compounded growth rate in volume over the fiscal 2018-2020.
- Ramp-up of NEOs to moderate rising oil price concern.
MOSL on InterGlobe Aviation
- Maintained ‘Neutral’; cut price target to Rs 1,318 from Rs 1,400.
- Aggressive capacity addition in a lean quarter weighs on profitability.
- Intense competition took a toll on yield.
- Rising crude oil price – a major threat.
- Peak valuations leave little room for upside.
Credit Suisse on InterGlobe Aviation
- Maintained ‘Outperform’; cut price target to Rs 1,575 from Rs 1,650.
- Weak <arch quarter with surprisingly weak yields and expectedly higher crude prices.
- Lower yields and higher crude prices contracted the spread.
- Fleet addition remains strong.
- A320NEOs and 321s to drive cost efficiencies.
Deutsche Bank on Siemens India
- Maintained ‘Hold’ with a price target of Rs 1,150.
- March quarter witnessed good growth in a challenging environment.
- Management commentary turned cautious on large orders.
- Growth prospects weak in its largest T&D segment.
- Retain hold as stock trades at high valuations.
IDFC Securities on Rallis India
- Maintained ‘Outperformer’ with a price target of Rs 293.
- Management expects volume growth momentum to continue.
- Management expects margins to recover in the current financial year.
- Inventory gains, lower sales returns and increased contribution from VAP to aid margins.
- Expect 12-15 percent volume growth over the fiscal 2018-2020.
- Focus on improving farm income and normal monsoons augurs well for Rallis.
Nomura on ICICI Prudential
- Maintained ‘Buy’ with a price target of Rs 570.
- Expect VNB margins to improve further over medium term.
- Expect VNB margins at 18-19 percent for previous fiscal and 18.5 percent over the fiscal 2019-2020.
- Improvement in protection mix, better margins in ULIPs, lower opex ratio and tax rate aid margins.
- ICICI Prudential remains preferred life insurance pick.
IDFC Securities on HCL Tech
- Maintained ‘Neutral’ with a price target of Rs 925
- March quarter was inline; weak organic revenue guidance.
- Flat margin guidance with a weaker rupee assumption.
- Weak organic growth to weigh on multiples.
Antique on HCL Tech
- Downgraded to ‘Hold’ from ‘Buy’; cut price target to Rs 1,030 from Rs 1,100.
- Weak organic growth guidance raises concern.
- Weak guidance when peers are guiding for improved revenue growth.
- Lack of momentum in core business puts company in a difficult spot.
Credit Suisse on Dabur India
- Maintained ‘Neutral’; raised price target to Rs 390 from Rs 365.
- March quarter witnessed modest pickup in volume growth in India; International turnarounds.
- Margin expansion a positive surprise.
- Management confident of modest expansion in the current fiscal.
- Key positive for Dabur is that Patanjali’s traction seems to be fading.
- Management expects 10 percent volume growth in the current fiscal.