Employees ride an elevator between electronic ticker boards that indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On May 10

Asian stocks edged higher in early trading today after a positive session on Wall Street, while oil extended its climb past $71 a barrel, a level it breached for the first time since 2014.

U.S. Treasury yields retreated after topping 3 percent. Equity benchmarks rose in Japan, Australia and South Korea, while futures in Hong Kong were little changed.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, was little changed at 10,767 as of 7:05 a.m.

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

Global Cues

  • U.S. stocks advanced, led by energy shares, with West Texas oil rising after an unexpected drop in stockpiles and President Donald Trump’s withdrawal from the Iran nuclear deal.
  • The dollar steadied while a $25 billion auction of 10-year U.S. notes came just short of carrying a 3 percent coupon for the first time in almost seven years.
All You Need To Know Going Into Trade On May 10

Also read: Giuliani Says Trump Was `Unaware' of Cohen's Consulting Income

Europe Check

  • European shares advanced for a fourth day in the longest streak since mid-March as energy companies got a lift from higher crude prices.
All You Need To Know Going Into Trade On May 10

Asian Cues

  • Topix index rose 0.2 percent as of 9:23 a.m. in Tokyo.
  • S&P/ASX 200 gained 0.4 percent.
  • Kospi index climbed 0.6 percent.
  • Hang Seng Index futures were little changed.
  • S&P 500 futures were little changed. S&P 500 closed up 1 percent.

Here are some key events coming up this week:

  • 10:30 am: India car sales data for April.
  • The Bank of England decides on policy Thursday.
  • U.S. inflation data for April are also due.

Commodities Check

  • West Texas Intermediate crude added to a 3 percent surge on Wednesday, advancing 0.5 percent to $71.49 a barrel.
  • Gold fell less than 0.1 percent to $1,311.92 ounce.
  • LME copper rose 0.1 percent to $6,818.00 a metric ton, after gaining 1 percent.

Also read: Trump's Iran Move May Kick Worst U.S. Gas Market While It's Down

Indian ADRs

All You Need To Know Going Into Trade On May 10

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Also read: India Prepares To Hit The Reset Button On Trading Ties With Iran

Nifty Earnings To Watch

  • Asian Paints
  • Titan
  • Zee Entertainment

Other Earnings

  • Adani Enterprises
  • Adani Transmission
  • Apollo Tyres
  • Chennai Petroleum Corporation
  • Indian Bank
  • Mphasis
  • Nestle India
  • Shankara Building Products
  • Tata Communications
  • TV Today Network
  • Ujjivan Financial Services
  • Union Bank Of India
  • Welspun Enterprises

Also read: Strides To Merge Business With Apotex To Create Australia’s No. 1 Generics Drugmaker

Earnings Reaction To Watch

JSPL (Q4, YoY)

  • Revenue up 37 percent at Rs 8599 crore
  • Net loss of Rs 308 crore from net loss of Rs 49.5 crore
  • Ebitda up 38 percent at Rs 2,136.5 crore
  • Margin at 24.8 percent from 24.7 percent
  • One-time exceptional expense of Rs 437.6 crore

Eicher Motors (Q4, YoY)

  • Revenue up 33.9 percent at Rs 2528 crore
  • Ebitda up 36.3 percent at Rs 797.2 crore
  • Net Profit up 0.5 percent at Rs 461.5 crore
  • Margin at 31.5 percent from 31 percent

Sharda Cropchem (Q4, YoY)

  • Revenue up 29 percent at Rs 769 crore
  • Net Profit up 14.5 percent at Rs 113 crore
  • Ebitda up 21 percent at Rs 197 crore
  • Margin at 25.7 percent from 27.3 percent

Kokuyo Camlin (Q4, YoY)

  • Revenue flat at Rs 190 crore
  • Net profit up 2x at Rs 5.7 crore
  • Ebitda up 51.4 percent at Rs 16.5 crore
  • Margin at 8.7 percent from 5.8 percent

Navin Fluorine International (Q4, YoY)

  • Revenue up 5 percent at Rs 208 crore
  • Net profit up 5 percent at Rs 39 crore
  • Ebitda up 25 percent at Rs 46.1 crore
  • Margin at 22.2 percent from 18.7 percent

SIS (Q4, YoY)

  • Revenue up 29 percent at Rs 1592 crore
  • Net profit down 36 percent at Rs 36 crore
  • Tax credit of Rs 23 crore in base quarter
  • Ebitda up 32 percent at Rs 86 crore
  • Margin at 5.4 percent from 5.3 percent

Oriental Hotels (Q4, YoY)

  • Revenue up 5 percent at Rs 98 crore
  • Net profit down 14 percent at Rs 6 crore from Rs 7 crore
  • Ebitda unchanged at Rs 20 crore
  • Margin at 20.4 percent from 21.5 percent

Federal Bank (Q4, YoY)

  • Net Interest Income up 11 percent at Rs 933 crore
  • Net profit down 44 percent at Rs 145 crore
  • Provisions up 129 percent at Rs 371.5 crore from Rs 162 crore (QoQ)
  • GNPA at 3.0 percent
  • NPA at 1.69 percent

Linde India (Q4, YoY)

  • Revenue up 2.5 percent at Rs 528 crore
  • Net profit up 100 percent at Rs 2 crore
  • Ebitda down 67 percent at Rs 3 crore
  • Margin at 0.6 percent from 1.7 percent
  • Profit higher on account of tax credit

Sintex Plastics Technology (Q4, QoQ)

  • Revenue down 3 percent at Rs 1293 crore
  • Net loss of Rs 12 crore from net profit of Rs 52 crore
  • Ebitda down 36 percent at Rs 118 crore
  • Margin at 9.1 percent from 13.9 percent

Dhampur sugar (Q4, YoY)

  • Revenue up 22 percent at Rs 921 crore
  • Net loss of Rs 36 crore from net profit of Rs 108.5 crore
  • Ebitda loss at Rs 17 crore from Rs 176 crore
  • Margin at -1.8 percent from 23.4 percent

Stocks To Watch

  • Fortis board will meet today to decide on various bids/proposals
  • Ashoka Buildcon says Arbitral Tribunal awards SPV additional 1,384 toll days. Besides, the company to receive Rs 37.71 crore as compensation for toll loss.
  • Reliance Infra to consider rights issue, QIP proposals on May 14.
  • Federal Bank CEO says IDBI Federal Life deal expected to be final by July.
  • Welspun Enterprises emerges as L1 for road project in Tamil Nadu at Bid price of Rs 1,837 crore.
  • Cipla partners with Mannkind for exclusive marketing, distribution of Afrezza in India.
  • PNC Infratech gets Rs 33.7 crore bonus annuity from Raebareli unit.
  • Star cement receives Rs 200 crore towards subsidies claim.
  • Tata Metaliks says main production unit including Blast furnace expected to be back on stream by May 17.
  • KKR Infuses Rs 1250 crore in Sintex Plastics Technology Subsidiary, SBAPL via structured finance.
  • Hikal Ltd board approves 1:2 bonus issue.
  • Avanti Feeds board approves 1:2 bonus issue.

Also read: Indian Gold Miner Surges On Hope Of Getting Access To Reserves

Bulk Deals

  • Nath Bio-Gene: Birla Sun Life MF bought 1.06 lakh shares (0.6 percent) at Rs 560 each
  • Gitanjali Gems: Morgan Stanley France SAS sold 37.80 lakh shares (3.2 percent) at Rs 3.45 each
  • Shree Renuka Sugars: Murkumbi Investments Pvt Ltd sold 2.61cr shares (1.4 percent) at Rs 15.5 each

KSB Pumps

  • Old Bridge Capital Management bought 3.80 lakh shares (1.1 percent) at Rs 830 each
  • Vantage Equity Fund bought 4 lakh shares (1.1 percent) at Rs 830 each
  • DSP Blackrock Small Cap Fund sold 4.61 lakh shares (1.3 percent) at Rs 830 each

Trading Tweaks

  • Sunil Hitech Engineers Ltd. placed under added surveillance by BSE
  • Deccan Gold Mines shifted to XT group from T group

IPO

  • IndoStar Capital Finance continues on day 2. Issue subscribed 0.4 times on day 1

Who’s Meeting Whom

  • Bodal Chemicals to meet ICICI Pru on May 10.
  • Syngene to meet several fund houses including HDFC MF, Motilal Oswal etc from May 18 – June 29.
  • Godawari Power & Ispat to meet several fund houses including Morgan Stanley, Maybank AM, Ostrum AM etc on May 10.

Insider Trades

  • Kwality Ltd promoter Sanjay Dhingra acquired 4.50 lakh shares on May 7
  • Mold-Tek Packaging promoter Lakshmi Pattabhi sold 50,000 shares on May 9
  • Adani Power promoter Pan Asia Trade and Investment Pvt. Ltd acquired 55 lakh shares on May 8

(As reported on May 9)

Rupee

  • Rupee closed at 67.28/$ on Wednesday versus 67.08/$ On Tuesday

Also read: Oil's Rise to $70 Turns Rupee Into Worst-Carry Trade in Asia

Top Gainers And Losers

All You Need To Know Going Into Trade On May 10

F&O Cues

  • Nifty May Futures closed trading at 10,769 with premium of 27.6 points versus 17.2 points
  • All series-Nifty open interest up 2 percent & Bank Nifty open interest up 3 percent
  • India VIX ended at 14.2, up 1.5 percent
  • Max open interest for May series at 11,000, open interest at 53.7 lakh, open interest down 6 percent
  • Max open interest for May series at 10,500, open interest at 56.7 lakh, open interest up 3 percent

F&O Ban

  • In ban: Balrampur Chini, Dewan Housing, IRB Infrastructure, Jet Airways, Justdial, Wockhardt
  • New in ban: PC Jeweller
  • Out of ban: None

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

Put-Call Ratio

Nifty PCR at 1.61 versus 1.56
Nifty Bank PCR at 1.56 versus 1.59

Fund Flows

All You Need To Know Going Into Trade On May 10

Brokerage Radar

On Eicher Motors

CLSA

  • Maintain ‘Buy’ with target price Rs 39,300
  • Management was positive on the RE demand outlook on conference call
  • Next phase of capacity expansion corroborates healthy demand outlook

Deutsche Bank

  • Maintain ‘Buy’ raises target price to Rs 34,500 from Rs 34,000
  • Volume growth momentum should continue in FY19
  • Forecast RE volume CAGR (FY18-20 at 15 percent which should drive EPS CAGR of 23 percent)
  • Management highlighted that volume growth had started to again pick up in the larger markets

CLSA on Arvind

  • Maintain ‘Buy’, raises target price to Rs 557 from Rs 524
  • Focus shifts to proposed demerger post strong beat led by the B&R business
  • B&R cashflows addressed investor concerns on Arvind’s ability to fund its own growth
  • Profitability of B&R at an inflexion point while strong capacity expansion ahead for Textiles

Deutsche Bank on Federal Bank

  • Maintain ‘Buy’ cuts target price to Rs 120 from Rs 130
  • Cleaning up impacts earnings but core trends are also a shade weaker
  • Operating metrics were also weak leading to weak NII growth

Credit Suisse on Persistent Systems

  • Maintain ‘Outperform’ with target price of Rs 960
  • Growth and margin expansion story intact; valuations attractive
  • Management indicates Q4 revenue miss in IBM alliance unit was not structural
  • Better momentum in services, ample scope for growth in digital

Nomura on Lupin

  • Maintain ‘Buy’ with target price of Rs 1,078
  • Japan Enbrel biosimilar filing is a positive
  • Estimate global sales of $8.3 billion at the manufacturer level
  • Would use any falls from here as an opportunity to accumulate

Deutsche Bank on ABB India

  • Maintain ‘Hold’ cuts target price to Rs 1,210 from Rs 1,230
  • Risk of slippage to single digit growth
  • Stock trades at a high valuation despite weak growth prospects