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.
- 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.
- European shares advanced for a fourth day in the longest streak since mid-March as energy companies got a lift from higher crude prices.
- 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.
- 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.
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Nifty Earnings To Watch
- Asian Paints
- Zee Entertainment
- Adani Enterprises
- Adani Transmission
- Apollo Tyres
- Chennai Petroleum Corporation
- Indian Bank
- Nestle India
- Shankara Building Products
- Tata Communications
- TV Today Network
- Ujjivan Financial Services
- Union Bank Of India
- Welspun Enterprises
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.
- 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
- 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
- Sunil Hitech Engineers Ltd. placed under added surveillance by BSE
- Deccan Gold Mines shifted to XT group from T group
- 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.
- 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 closed at 67.28/$ on Wednesday versus 67.08/$ On Tuesday
Top Gainers And Losers
- 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
- 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.
Nifty PCR at 1.61 versus 1.56
Nifty Bank PCR at 1.56 versus 1.59
On Eicher Motors
- 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
- 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