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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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.
- 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.
- 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.
- 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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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
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.
- 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.
Also read: Investment Fees Are Eating Into Your Wealth
- 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
- 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.
- SCIIL Steel Cast Iron Investments (Cyprus) ltd sold 2.50 crore shares or 1 percent equity at Rs 1.09 each.
- 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 closed at 67.70/$ on Thursday from 67.80/$ on Wednesday.
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
- 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.
- 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.
- 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.