Asian stocks fluctuated early on Monday even as U.S. equity futures jumped in the wake of news that the Sino-American trade war is on hold for now.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent higher at 10,621.50 as of 7:30 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 fell Friday in light trading, the dollar rose and Treasury yields retreated as investors assessed conflicting signals on trade talks between the world’s two largest economies.
- European equities declined as investors assessed a populist coalition proposal in Italy.
- The euro dropped 0.2 percent to $1.1768, hitting the weakest level in five months with its fifth consecutive decline.
- The British pound declined 0.3 percent to $1.3479.
- Germany’s 10-year yield decreased one basis point to 0.63 percent.
- Britain’s 10-year yield declined six basis points to 1.50 percent, the biggest fall in two weeks.
- Japan’s Topix index was little changed.
- Australia’s S&P/ASX 200 Index fell 0.2 percent.
- Kospi index was down 0.3 percent.
- S&P 500 futures were up 0.6 percent.
- S&P 500 closed down 0.3 percent on Friday.
Here are some key events coming up this week:
- On Monday, Philadelphia Fed President Patrick Harker, Atlanta Fed President Raphael Bostic and Minneapolis Fed President Neel Kashkari speak at various events.
- Brexit negotiations resume in Brussels Tuesday, and South Korea’s president visits Washington to discuss North Korea
- Also Tuesday, Facebook founder and CEO Mark Zuckerberg will appear before the European Parliament on his company’s use of personal data.
- Federal Reserve releases minutes of policy makers’ May 1-2 meeting on Wednesday; U.S. new home sales will also be released as will the euro-area and Japan PMIs.
- Thursday sees the Bank of England Markets Forum at Bloomberg London. Speakers include BOE Governor Mark Carney and New York Fed President William Dudley.
- At the St. Petersburg Forum Friday, Presidents Putin and Emmanuel Macron, IMF Managing Director Christine Lagarde, and Japan Prime Minister Shinzo Abe participate on a panel moderated by Bloomberg News editor-in-chief John Micklethwait.
- Also Friday, European Union finance ministers discuss the latest on Brexit talks, in Brussels.
- West Texas Intermediate crude rose 0.5 percent to $71.62 a barrel Monday.
- Gold lost 0.2 percent to $1,290.80 an ounce.
- Copper futures fell 0.1 percent to $6,847.50 a metric ton.
- Brent crude traded 0.5 percent higher at $78.89 per barrel.
- Aluminium traded 1.5 percent lower at $2,280.25 per MT.
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Stocks To Watch
- Century Textiles to demerge cement division and merges it with UltraTech Cement.
- Endurance Tech says entitled for Rs 283 crore industrial promotion subsidy.
- Alembic Pharma gets one Form 483 observation on Karkhadi API unit.
- Strides Shasun board approved merger of Arrow Remedies and Fargis Medica with self.
- Indoco Remedies received three observations under Form 483 for API plant at Patalganga.
- Indiabulls Real Estate to buy back 2.6 crore equity shares (5.45 percent) at Rs 240 each.
- RBI imposed monetary penalty of Rs 5 crore on South Indian Bank: Bloomberg.
- Tata steel completed acquisition of 72.65 percent in Bhushan Steel.
- AU Small Finance Bank to raise Rs 1,000 crore from Temasek via share sale.
Earnings To Watch
- Aster DM Healthcare
- Astrazeneca Pharma
- Future Retail
- Just Dial
- Mahanagar Gas
- Motilal Oswal Financial Services
- Petronet LNG
- Timken India
- TTK Prestige
Earnings Reaction To Watch
Bajaj Holdings & Investment (Q4, YoY)
- Revenue up 23 percent at Rs 221 crore.
- Net profit up 42 percent at Rs 801 crore.
- Share of profit after tax of associates up 38 percent at Rs 599 crore versus Rs 432.5 crore
Prabhat Dairy (Q4, YoY)
- Revenue up 7 percent at Rs 405 crore.
- Net profit at Rs 18 crore versus net loss of Rs 2 crore.
- Tax credit of Rs 0.3 crore in current quarter versus tax outgo of Rs 14 crore in base quarter.
- Ebitda up 37 percent at Rs 41 crore.
- Margins at 10.1 percent versus 8 percent.
Sheela Foam (Q4, YoY)
- Revenue up 15 percent at Rs 528 crore.
- Net profit up 88 percent at Rs 32 crore.
- Ebitda up 121 percent at Rs 53 crore.
- Margin at 10 percent versus 5.2 percent.
Tata Chemicals (Q4, YoY)
- Revenue up 2 percent at Rs 2,555 crore.
- Net profit up 4 times at Rs 1,169 crore.
- Exceptional gain of Rs 1,267 crore in current quarter from sale of fertilizer business.
- Ebitda up 8 percent at Rs 512.5 crore.
- Margin at 20.1 percent versus 18.9 percent.
Asian Granito India (Q4, YoY)
- Revenue up 18 percent at Rs 392 crore.
- Net profit up 6 percent at Rs 17 crore.
- Ebitda up 3 percent at Rs 36 crore.
- Margin at 9.2 percent versus 10.5 percent
Den Networks (Q4, YoY)
- Revenue down 1 percent at Rs 315 crore.
- Net loss of Rs 10 crore versus net loss of Rs 60 crore.
- Exceptional loss of Rs 31 crore.
- Ebitda flat at Rs 56 crore.
- Margin at 17.8 percent versus 17.7 percent.
Inox Wind (Q4, YoY)
- Revenue down 80 percent at Rs 203 crore.
- Net profit down 56 percent at Rs 56 crore.
- Ebitda loss of at Rs 30 crore versus Ebitda profit of Rs 229 crore.
- Margins at -14.8 percent versus 22.5 percent.
Manappuram Finance (Q4, YoY)
- Net interest income up 2 percent at Rs 622 crore versus Rs 609 crore.
- Net profit down 9.5 percent at Rs 182 crore versus Rs 201 crore.
Thermax (Q4, YoY)
- Revenue down 3 percent at Rs 1443 crore.
- Net profit at Rs 76 crore; one-time loss of Rs 65 crore in base quarter.
- Ebitda down 20 percent at Rs 138.5 crore.
- Margin at 9.6 percent versus 11.6 percent.
Kalyani Steels (Q4, YoY)
- Revenues up 12 percent at Rs 356 crore.
- Net profit down 21 percent at Rs 30 crore.
- Ebitda down 10 percent at Rs 55 crore.
- Margin at 15.4 percent versus 19.2 percent.
Future Lifestyle Fashions (Q4, YoY)
- Revenue down 1 percent at Rs 977 crore.
- Net profit down 64 percent at Rs 26 crore.
- Exceptional gain of Rs 13 crore and tax credit of Rs 11 crore in base quarter.
- Ebitda down 5 percent at Rs 88 crore versus Rs 93 crore.
- Margin at 9.0 percent versus 9.4 percent.
Kitex Garments (Q4, YoY)
- Revenue down 26 percent at Rs 131 crore.
- Net profit down 63 percent at Rs 10 crore.
- Ebitda down 62 percent at Rs 18 crore.
- Margin at 13.7 percent versus 26.8 percent.
Sobha (Q4 Consolidated, YoY)
- Revenue up 31.8 percent at Rs 769.6 crore.
- Net Profit up 39.1 percent at Rs 65.4 crore.
- EBITDA up 23.8 percent at Rs 136.4 crore.
- EBITDA margin at 17.7 percent vs 18.9 percent.
- Indostar Capital Finance to be listed on exchanges today. IPO price at Rs 572.
- Welspun Enterprises: Promoter Balkrishan Goenka Welspun Group Master Trust bought 14.11 lakh shares or 1 percent equity at Rs 178.5 each.
- Manali Petrochemicals: KIFS Enterprises bought 10 lakh shares or 0.6 percent equity at Rs 44.69 each.
- Max Ventures: Indgrowth Capital Fund I bought 5.37 lakh shares or 0.7 percent equity at Rs 74.7 each.
- Kaveri Seeds: Ashoka PTE sold 6.60 lakh shares or 1 percent equity at Rs 500.13 each.
- Alpana S Dangi bought 5.75 lakh shares or 2.7 percent equity at Rs 270 each
- Promoter Bhavesh Ramesh Thakkar HUF sold 5.24 lakh shares or 2.5 percent equity at Rs 270 each
Balrampur Chini Mills
- California Public Employees' Retirement System bought 12.85 lakh shares or 0.6 percent equity at Rs 62.27 each.
- Morgan Stanley France SAS sold 11.45 lakh shares or 0.5 percent equity at Rs 62.66 each.
Who’s Meeting Whom
- PNB Housing Finance to participate in non-deal roadshow organised by Credit Suisse from May 22 – May 24.
- Newgen Software to participate in non-deal roadshow organized by ICICI Securities from May 21 – 23.
- Majesco to meet several fund houses from May 21 – June 6.
- Endurance Tech to meet Wasatch Advisors on May 21.
- Cholamandalam Investment & Co to meet several fund houses including Axis Capital, Spark Capital and KR Choksey from May 21 – 25.
- Nifty May Futures closed trading at 10,597 with premium of 0.6 points versus 13.5 points on Thursday.
- All series-Nifty open interest up 2 percent and Nifty Bank open interest down 6 percent.
- India VIX ended at 14.1, up 5.5 percent.
- Max OI for May series at 11,000, open interest at 58.4 lakh, open interest up 2 percent
- Max open interest for May series at 10,500, open interest at 53.7 lakh, open interest up 1 percent.
- In Ban: Balrampur Chini, Dewan Housing, Jet Airways, JP Associates, PC Jewellers, Reliance Communications, Wockhardt.
- New In Ban: Balrampur Chini, Reliance Communications.
- Out Of Ban: Just Dial.
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 1.35 versus 1.46.
- Nifty Bank PCR at 0.86 versus 0.66.
- Rupee ends at 68/dollar on Friday versus 67.69/dollar on Thursday.
Macquarie On Strides Shasun
- Downgraded to ‘Neutral’ and cut target price to Rs 398.
- Fourth quarter performance was a huge dampener.
- U.S.-partnered portfolio shrunk significantly from nearly $25 million in the third quarter to $7 million in fourth quarter.
- Business in Australia is on track and will grow in early double digits in 2018-19.
- Cut financial year 2018-19’s EPS estimates sharply by 52 percent and by 50 percent for the next financial year to reflect structural issues.
Macquarie On Bajaj Auto
- Maintained ‘Underperform’ with a target price of Rs 2,800.
- Downside risk to the street’s expectations for Bajaj Auto’s operating margin.
- Domestic motorcycle market share is running hard to stand still.
- Expect Bajaj’s exports to grow 12 percent by March 2019.
Macquarie On Ashok Leyland
- Maintained ‘Underperform’ with a target price of Rs 113.
- Volume growth drives margin improvement in the fourth quarter.
- Decline in the market share of the medium and heavy commercial vehicles segment in the fourth quarter.
- Commercial vehicles demand likely to remain strong in the ongoing and next financial year.
- Stock is trading at a 30 percent premium to its historical average valuation.
Nomura On Bajaj Auto
- Maintained ‘Neutral’ with a target price of Rs 3,252.
- Domestic two-wheeler performance remains weak due to high competition.
- Three-wheeler exports benefitted from a recovery in Egypt and new markets.
Nomura On Amara Raja
- Maintained ‘Buy’ with a target price of Rs 1,046.
- Fourth quarter results below Nomura’s consensus estimates.
- Management indicated that telecom demand remained muted.
- Lead prices have started coming down, which should support margins.
- Operating margin came at 13.3 percent, below their estimate of 16 percent.
Investec On Bajaj Finserv
- Maintained ‘Buy’ and raised the target price to Rs 6,510 from Rs 5,615.
- Turnaround was sustained in life insurance.
- Life insurance capital utilisation to improve.