All You Need To Know Going Into Trade On May 18

Asian shares saw a muted open, and are on track for a weekly loss as investors mull the implications of a jump in benchmark U.S. 10-year Treasury yields to their highest level since 2011.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,673 as of 7:05 a.m.

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BQ Live

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

U.S. Market Check

• U.S. stocks ended a back-and-forth session lower, Treasuries fell and the dollar advanced as investors looked past trade comments by President Donald Trump amid a fresh batch of solid economic data.

Europe Check

• European stocks rose to the highest level since late January as oil rallied and investors awaited the results of talks to form a new Italian government.

• The euro fell 0.1 percent to $1.1795.
• Germany’s 10-year yield gained three basis points to 0.64 percent.
• Italy’s 10-year yield was flat at 2.111 percent.

Asian Cues

• Japan’s Topix Index was little changed.
• Australia’s S&P/ASX 200 was up 0.3 percent
• Futures on the S&P 500 Index were little changed after the underlying gauge closed down 0.1 percent.
• The Kospi Index rose 0.4 percent.
• The MSCI Asia Pacific Index is down 0.8 percent for the week, while the MSCI Emerging Markets Index is heading for a 1.8 percent weekly loss.

Commodities Check

• West Texas Intermediate crude was up 0.1 percent Friday at $71.55 a barrel.
• Brent ended higher for the fifth day, up 0.2 percent at $79.44 per barrel.
• Gold was little changed at $1,290.19 an ounce.
• LME copper gained 0.8 percent Thursday to $6,879.00 per metric ton.
• Aluminium traded 1.5 percent lower at $2,315 per MT.

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Indian ADRs

Stocks To Watch

• IHH extended acceptance period for revised offer to Fortis till May 29.
• Sun Pharma begins sale of generic Welchol tablets in U.S.
• GSFC signed memorandum of understanding with Centrex Metals, Australia for buying three lakh tonnes per annum of rock phosphate for 10 years.
• RBI revised rule for minimum capital held by IFSC banking units: Bloomberg.
• Jio announced exclusive partnership with Screenz.
• Reliance Communications board meet deferred to May 30 from May 19.
• ED seized jewellery worth Rs 85 crore of Gitanjali group brought from Dubai (Bloomberg)
• Godrej Agrovet unit to invest Rs 400 crore over the next three years.
• Vijaya Bank to consider raising funds under Basel III for 2018-19 on May 20 meet.
• KEI industries approved phase two expansion of MV cable plant for Rs 30-35 crore.
• ITDC signed agreement for transfer of 51 percent stake in DPAHCL.
• Minda Corp QIP closed yesterday at Rs 173.47 per share.

Nifty Earnings To Watch

• Bajaj Auto

Other Earnings To Watch

• Amara Raja Batteries
• Ashok Leyland
• Bajaj Holdings & Investment
• Dalmia Bharat
• Inox Wind
• Manappuram Finance
• Prabhat Dairy
• Tata Chemicals
• Thermax

Earnings Reaction To Watch

Taro Pharma (Sun Pharma's subsidiary) Q4 (YoY):

• Net sales down 11 percent at $175 million.
• Net profit up 4 percent at at $86.3 million.
• Ebitda down 26 percent at $74.8 million.
• Margin at 42.7 percent versus 51.2 percent.

Bajaj Finserv (Q4, YoY)

• Net interest income up 42.5 percent at Rs 2,465 crore.
• Net profit up 28 percent at Rs 685.5 crore.

Coffee Day Enterprises (Q4, YoY)

• Revenue up 26 percent at Rs 1,130 crore.
• Net profit up 92 percent at Rs 25 crore.
• Ebitda up 18 percent at Rs 179 crore.
• Margin at 15.8 percent versus 16.9 percent.

Voltas (Q4, YoY)

• Revenue up 1 percent at Rs 2,048 crore.
• Net profit down 3 percent at Rs 193 crore.
• Ebitda up 14 percent at Rs 252 crore.
• Margin at 12.3 percent versus 10.9 percent.

Man Infraconstruction (Q4, YoY)

• Revenue up 35 percent at Rs 222 crore.
• Net profit up 21 percent at Rs 23 crore.
• Ebitda at Rs 87 crore versus Rs 51.5 crore.
• Margin at 39.2 percent versus 31.4 percent.

Max Ventures and Industries (Q4, YoY)

• Revenue down 8 percent at Rs 171 crore.
• Net loss of Rs 3 crore versus net loss of Rs 6 crore.

Balkrishna Industries (Q4, YoY)

• Revenue up 23 percent at Rs 1232 crore.
• Net profit up 41 percent at Rs 194 crore.
• Ebitda up 16 percent at Rs 295 crore.
• Margin at 23.9 percent versus 25.5 percent.

Central Bank of India (Q4, YoY)

• Net Interest Income down 13 percent at Rs 1,500 crore.
• Net loss of Rs 2,113.5 crore versus net loss of Rs 592 crore.
• Provisions up 16 percent at Rs 3971 crore (QoQ).
• GNPA at 21.48 percent versus 18.08 percent (QoQ).
• NPA at 11.10 percent versus 9.45 percent (QoQ).

JK Tyre & Industries (Q4, YoY)

• Revenue up 6 percent at Rs 2,284 crore.
• Net profit at Rs 145 crore versus Rs 89 crore.
• Ebitda up 65 percent at Rs 329.5 crore.
• Margin at 14.4 percent versus 9.3 percent.

KEI Industries (Q4, YoY)

• Revenue up 39.4 percent at Rs 1,030.41 crore.
• Net profit up 40.2 percent at Rs 49.5 crore.
• Ebitda up 38.6 percent at Rs 101.02 crore.
• Margin flat at 9.80 percent.

SRF (Q4, YoY)

• Revenue up 22 percent at Rs 1,612 crore.
• Net profit down 4 percent at Rs 124 crore.
• Ebitda up 19 percent at Rs 278.5 crore.
• Margin at 17.3 percent versus 17.7 percent.

Lux Industries (Q4, YoY)

• Revenue up 27 percent at Rs 354.5 crore.
• Net profit at Rs 32 crore versus Rs 19 crore.
• Ebitda at Rs 57.5 crore versus Rs 37.5 crore.
• Margin at 16.2 percent versus 13.5 percent.

MIRC Electronics (Q4, YoY)

• Revenue down 10 percent at Rs 188 crore.
• Net profit at Rs 4 crore versus Rs 14 crore.
• Ebitda at Rs 4.5 crore versus Rs 19 crore.
• Margin at 2.4 percent versus 9.1 percent.

F&O Cues

• Nifty May Futures closed trading at 10,696.2 with premium of 13.5 points versus 20 points.
• All series-Nifty open interest down 0.3 percent and Bank Nifty open interest up 1 percent.
• India VIX ended at 13.4, down 0.2 open interest.
• Max open interest for May series at 11,000, open interest at 57 lakh, open interest down 6 percent
• Max open interest for May series at 10,500, open interest at 53.3 lakh, open interest down 4 percent.

F&O Ban

• In ban: Dewan Housing, Jet Airways, JP Associates, Justdial, PC Jewelers, Wockhardt, PC Jewellers.
• New in ban: None
• Out of ban: Reliance Communications

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

Active Stock Futures

Put Call Ratio

• Nifty PCR at 1.46 versus 1.51
• Nifty Bank PCR at 0.66 versus 0.79

Bulk Deals

Future Enterprises

• Promoter Central Departmental Stores Private Limited bought 2.22 crore shares or 4.9 percent equity at Rs 39.2 each.
• Bennett, Coleman And Company Limited bought 3.85 crore shares or 8.5 percent equity at Rs 39.2 each.
• Cedar Support Services Limited sold 6.19 crore shares or 13.6 percent equity at Rs 39.2 each..

Future Enterprises DVR

• Angela Mercantiles Pvt Ltd sold 2.29 lakh shares or 0.6 percent equity at Rs 44.03 each.

Shree Renuka Sugar

• Rajasthan Global Securities Pvt Ltd bought 1.70 crore shares or 0.9 percent equity at Rs 15.6 each.
• Promoter Murkumbi Investments Pvt Ltd sold 6.51 crore shares or 3.4 percent equity at Rs 15.6 each.
• Promoter Agri Venture Trading & Investment Pvt Ltd sold 2.85 crore shares or 1.5 percent equity at Rs 15.6 each.

Sinner Energy India Ltd

• Aspire Emerging Fund bought 3 lakh shares or 1.5 percent equity at Rs 13.97 each.

Electrosteel Steels

• SCIIL Steel Cast Iron Investments (Cyprus) ltd sold 2.50 crore shares or 1 percent equity at Rs 1.09 each.

Insider Trades

• Chambal Fertilizers promoter acquired 5,000 shares on May 15.
• Donear Industries promoters acquired 22,500 shares on May 16.
• Bodal Chemicals promoter Suresh Patel acquired 89,208 shares on May 16.
• Sarla performance fibers promoter Madhusudan Jhunjhunwala (HUF) sold 3,285 shares on May 14.
• Rajesh Exports promoter Rajesh Mehta acquired 8,260 shares on May 16.
• Archidply Industries promoters acquired 95,400 shares on May 16.
• Ashoka Buildcon promoter Ashok Katariya acquired 3,523 shares on May 16.
• PSP Projects promoter acquired 10,000 shares on May 16.
• MAS Financial promoter Dhvanil Gandhi acquired 1450 shares on May 16.

(As Reported on May 17)

Rupee

• Rupee closed at 67.70/$ on Thursday from 67.80/$ on Wednesday.

Fund Flows

Brokerage Radar

Axis Capital on Bajaj Finance

• Maintained ‘Hold’ with a price target of Rs 2,050.
• Asset quality strong; growth stronger.
• Management believes its portfolio quality is strong and poised to remain pristine.
• Expect the management to continue on the current path of market share gains.

Morgan Stanley on Biocon

• Maintained ‘Overweight’ with a target of Rs 785.
• Observations appear benign with no data integrity issues.
• Observations pertain largely to quality and controls, largely procedural in nature.

Kotak on Escorts

• Maintained ‘Buy’; elevated price target to Rs 1,170 from Rs 1,140.
• Company is benefitting from upcycle in its core segments.
• Increased our earnings estimates by 3-5 percent on the construction equipment division.
• Stock trades at 14 times, which we believe is inexpensive due to strong earnings growth.

Brokerages On Voltas

Deutsche Bank

• Maintained ‘Sell’ with a price target Rs 470.
• Weak volume growth in cooling likely to continue.
• Key disappointment was flat March quarter revenues.
• Miss on revenues partly compensated by strong margins.

Edelweiss

• Maintained ‘Buy’; cut price target to Rs 685 from Rs 745.
• Poor season plays spoilsport while growth profile intact.
• Inverter ACs gaining momentum; maintaining the balance act.
• Roll out of white goods range and branding/marketing remain vital for Voltas.

Goldman Sachs

• Maintained ‘Buy’; slashed price target to Rs 700 from Rs 760.
• Below expectation but just a hiatus in a positive long-term structural trend.
• See the risk-reward as favourable as trades at discount to peers.