All You Need To Know Going Into Trade On May 14
Asian stocks had a muted start to trading today after the biggest weekly advance since February last week.
Futures in Japan, Australia and Hong Kong all little changed. Focus in the region turns to Malaysia, where markets open for the first time since last week’s historic election. Emerging market shares posted their first weekly gain in four weeks.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.14 percent to 10,807.5 as of 6:08 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks edged higher Friday, capping the best week in two months amid growing conviction that inflation will remain tame and as trade tensions eased.
- The S&P 500 Index was buoyed by telecom companies as tech shares weighed on the gauge.
- The week saw a bullish tone take hold in equities following a great earnings season for the biggest U.S. companies and removal of some trade anxiety as China seemed to soften its tone.
- European shares rose on Friday to complete a seventh straight week of gains, led by resources and energy companies.
- The MSCI Asia Pacific Index rose 0.1 percent as of 9:15 a.m. in Tokyo.
- Topix index rose 0.1 percent.
- Kospi index rose 0.3 percent.
- Australia’s S&P/ASX 200 Index rose 0.1 percent.
- Futures on the S&P 500 Index rose 0.2 percent.
Here are some key events coming up this week:
- 12 pm: India April Wholesale Prices inflation YoY, estimate 2.90 percent, prior 2.47 percent.
- 5:30 pm: India April CPI YoY, estimate 4.42 percent, prior 4.28 percent.
- China plans to send Vice Premier Liu He to Washington for more trade talks.
- European Union Chief Brexit negotiator Michel Barnier briefs European affairs ministers on the status of talks with the U.K.
- China releases data including industrial production and retail sales figures Tuesday.
- U.K. Prime Minister Theresa May meets with her Brexit cabinet Tuesday to discuss plans for a post-withdrawal customs union.
- U.S. retail sales, industrial production are due this week.
- Vodafone Group, Home Depot, Credit Agricole, Tencent, Cisco Systems, Burberry Group, Walmart, Vivendi, AstraZeneca, Deere, Fujifilm, Noble Group, and Campbell Soup are among the companies releasing earnings this week.
- West Texas Intermediate crude was down 0.03 percent to $70.7 per barrel.
- Gold rose 0.2 percent to $1,321.9 an ounce.
- LME copper was up 0.36 percent to $6,942 a metric tonne.
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Nifty Earnings To Watch
- Hindustan Unilever
Other Earnings To Watch
- Abbott India
- Blue Star
- Bombay Dyeing & Mfg Company
- Dr Lal Path Labs
- Godrej Agrovet
- Kec International
- Polaris Consulting & Services
- South Indian Bank
Earnings Reaction To Watch
Sun TV (Q4, YoY)
- Revenue up 23 percent at Rs 717 crore
- Net profit up 23 percent at Rs 290 crore
- EBITDA up 33 percent at Rs 522.5 crore
- Margin at 72.9 percent versus 67.6 percent
Solar Industries (Q4, YoY)
- Revenue up 30 percent at Rs 575 crore
- Net profit up 20 percent at Rs 66 crore
- EBITDA up 29 percent at Rs 117 crore
- Margin at 20.3 percent versus 20.6 percent
GlaxoSmithKline Consumer (Q4, YoY)
- Revenue up 7 percent at Rs 1180 crore
- Net profit up 20.5 percent at Rs 212 crore
- EBITDA up 14 percent at Rs 250.5 crore
- Margin at 21.2 percent versus 19.9 percent
Graphite India (Q4, YoY)
- Revenue up 3 times at Rs 1212 crore
- Net profit up 7 times at Rs 454 crore
- EBITDA up 44.5 times at Rs 668 crore
- Margin at 55.1 percent versus 4.0 percent
Relaxo Footwears (Q4, YoY)
- Revenue up 18.5 percent at Rs 557 crore
- Net profit up 67 percent at Rs 53.5 crore
- EBITDA up 71 percent at Rs 98.5 crore
- Margin at 17.7 percent versus 12.2 percent
VST Tillers (Q4, YoY)
- Revenue up 25 percent at Rs 242 crore
- Net profit up 62 percent at Rs 34 crore
- EBITDA up 45 percent at Rs 42 crore
- Margin at 17.4 percent versus 15.0 percent
Aarti Industries (Q4, YoY)
- Revenue up 23 percent at Rs 1,029 crore
- Net profit up 15 percent at Rs 85 crore
- EBITDA up 18 percent at Rs 180 crore
- Margin at 17.5 percent versus 18.3 percent
Nilkamal (Q4, YoY)
- Revenue up 12 percent at Rs 596 crore
- Net profit up 6.25 percent at Rs 34 crore
- EBITDA up 9 percent at Rs 65 crore
- Margin at 10.9 percent versus 11.2 percent
Canara Bank (Q4, YoY)
- NII grew 10.3 percent to Rs 2,987 crore
- Net loss of Rs 4,860 crore versus profit of Rs 214 crore
- Provisions at Rs 8,762 crore versus Rs 1,900 crore (QoQ)
- GNPA at 11.84 percent versus 10.38 percent (QoQ)
- NNPA at 7.48 percent versus 6.78 percent (QoQ)
Sical Logistics (Q4, YoY)
- Revenue up 42 percent at Rs 372 crore
- Net profit down 50 percent at Rs 7 crore
- EBITDA up 2 percent at Rs 48 crore
- Margin at 12.9 percent versus 17.9 percent
- Cost of services up 51 percent at Rs 281 crore
Allahabad Bank (Q4, YoY)
- NII down 35 percent at Rs 888.5 crore
- Net loss of Rs 3510 crore versus Net profit of Rs 111 crore
- Provisions up 98 percent at Rs 4,783 crore (QoQ)
- GNPA at 15.96 percent versus 14.38 percent (QoQ)
- NPA at 8.04 percent versus 8.97 percent (QoQ)
Kesoram Industries (Q4, YoY)
- Revenue up 2.5 percent at Rs 985 crore
- Net loss of Rs 158 crore versus Net loss of Rs 77 crore
- EBITDA at Rs -39 crore versus Rs -33 crore
- Margin at -4 percent versus -3.4 percent
- Other income of Rs 52 crore in base quarter
- High other expenditure of Rs 204 crore in current quarter
UCO Bank (Q4, YoY)
- NII up 33 percent at Rs 808 crore
- Net loss of Rs 2,134 crore versus Net loss of Rs 588 crore
- Provisions up 62 percent at Rs 2,239 crore (QoQ)
- GNPA at 24.64 percent versus 20.64 percent
- NPA at 13.10 percent versus 10.90 percent
Puravankara (Q4, YoY)
- Revenue down 36 percent at Rs 288
- Net profit down 60 percent at Rs 25 crore
- EBITDA down 53 percent at Rs 60 crore
- Margin at 20.8 percent versus 28.6 percent
Gillette India (Q3, YoY)
- Revenue down 14 percent at Rs 451.5 crore
- Net profit down 33 percent at Rs 71 crore
- EBITDA down 25.5 percent at Rs 118.5 crore
- Margin at 26.2 percent versus 30.3 percent
Oracle Financial Services Software (Q4, QoQ)
- Revenue up 1.5 percent at Rs 1075 crore
- Net profit down 17 percent at Rs 24 crore
- EBIT down 17 percent at Rs 337 crore
- Margin at 31.3 percent versus 38.3 percent
Vinati Organics (Q4, YoY)
- Revenue up 9 percent at Rs 213 crore
- Net profit up 26 percent at Rs 51.9 crore
- EBITDA up 5 percent at Rs 65.8 crore
- Margin at 30.8 percent versus 32.1 percent
JK Cement (Q4, YoY)
- Revenue up 28 percent at Rs 1,316 crore
- Net profit up 126 percent at Rs 96.5 crore
- EBITDA up down 5 percent at Rs 182 crore
- Margin at 13.8 percent versus 18.5 percent
- Tax rate at 21.6 percent versus 63.7 percent last year
OBC (Q4, YoY)
- NII down 16 percent at Rs 1,095 crore
- Net loss at Rs 1,650 crore versus net loss of Rs 1,218 crore
- GNPA at 17.6 percent versus 13.7 percent
- NNP at 10.5 percent versus 8.9 percent
Stocks To Watch
- Nilkamal to enter foam manufacturing business this financial year
- RBI bars Dena Bank from further lending
- CBI will submit a chargesheet against Allahabad Bank CEO and MD Usha Ananthasubramanian and several others in the over Rs 13,000 crore PNB scam.
- Sical approves buying L&T Infra’s stake in ore terminal unit
- 5Paisa capital approves raising of FPI investment limit to 100 percent and NRI investment limit to 24 percent
- New India Assurance approves 1:1 bonus issue
- Federal Bank to sell 26 percent in unit FedFina to True North Enterprises. Also, receives RBI approval to acquire 19.90 percent in Equirus Capital
- Ashoka Buildcon unit executes concession agreement with NHAI for a Rs 1,687 crore project
- Aarti Industries board approves demerger of home and personal care segment and merger of manufacturing operations of Nascent Chemicals with the company
- JSW Steel: Company’s big for Monnet Ispat cleared by CCI
- Westlife Development: To add 25 stores in FY19
- BNP Paribas Arbitrage sold 18.90 lakh shares (0.6 percent) at Rs 277.43 each
- UBS Principal Capital Asia bought 27.39 lakh shares (2.8 percent) at Rs 150 each
- California State Teachers' Retirement System sold 28.03 lakh shares (2.9 percent) at Rs 150.02 each
- India Opportunities Growth Fund Ltd- Pinewood Strategy bought 3.6 crore shares (2.6 percent) at Rs 1.58 each
- Catalyst Trusteeship Ltd sold 3.62 crore shares (2.6 percent) at Rs 1.58 each
- Indiabulls Ventures placed under additional surveillance and circuit filter revised to 5 percent
- IndoStar Capital Finance’s issue subscribed 6.6 times on final day.
- Udaipur Cement promoter JK Lakshmi Cement buys 1.6 crore shares on May 10
- Mindtree Promoter Kamran Ozair (A/c LSO Investment Private Limited) sold 25,000 shares on May 8
(As Reported On May 10)
Rupee ends at 67.33/$ versus 67.32/$ On Thursday.
Top/Worst Performers This Month
- Nifty May Futures closed trading at 10,820 with premium of 13.6 versus 8 points
- All series-Nifty Open Interest up 4 percent & Bank Nifty open interest up 6 percent
- India VIX ended at 13.9, down 3 percent
- Max open interest for May series at 11,000, open interest at 59.9 lakh, open interest up 3 percent
- Max open interest for May series at 10,500, open interest at 63 lakh, open interest up 16 percent
- In Ban: Balrampur Chini, Dewan Housing IRB Infra, Jet Airways, Wockhardt
- Out Of Ban: PC Jeweller
Alert: 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 1.65 versus 1.56
- Nifty Bank PCR at 1.05 versus 1.0
- Raise target to Rs 614 from 612, Maintain Neutral
- Believe that revenue growth outlook still remains hazy
- Operational improvements and growth initiatives continue
- Maintain Neutral as valuation remains quite expensive
- Maintain Outperform, target price of Rs 590.
- Robust margins across segments notably Lloyd was key positive.
- Muted growth in switchgear was key negative.
- Valuations are likely to remain rich at 33 times of financial year 2020 valuations.
- Maintain Sell; raise target to Rs 460 from Rs 450.
- Strong results and encouraging outlook but valuations expensive.
- Expect the company to deliver 21 percent compounded annual growth rate in earnings per share over March 2018-2021.
On Sun TV
- Maintain Outperform, target price of Rs 1,124.
- Revival in ad revenue growth was key positive.
- Market-share fall in Tamil Nadu was key negative.
- Sun trading at discount to Zee because of lower and inconsistent growth.
- Upgrade to Buy from Neutral; raise target to Rs 1,105 from Rs 1,091.
- Digitisation to drive subscription in near-term; ad industry growth picking up.
- Maintain view that the ad industry outlook is buoyant with nearly 12-15 percent growth in financial year 2019.
- Maintain Buy, target price of Rs 1,250.
- Ad growth strong while Tamil Nadu digitisation boosts subscriptions.
- As per management, the recovery in ad revenue is sustaining.
- Expect Sun TV to deliver 17 percent CAGR earnings over financial years 2018 to 2021.