All You Need To Know Going Into Trade On May 29

Asian stocks were mixed, with benchmarks heading lower in Japan and flat in South Korea and Australia.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,659 as of 7:00 a.m.

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BQ Live

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

Global Cues

• Stocks in U.S. and U.K remained shut on Monday.
• Politics dominated markets on Monday, with risk appetite withering in Europe as Italy lurched towards fresh elections.
• Emerging-market stocks struggled to hold a gain as the dollar rose.
• Futures on the S&P 500 Index rose 0.1 percent.
• The Stoxx Europe 600 Index dipped 0.3 percent.
• Germany’s DAX Index sank 0.6 percent.

Asian Cues

• Topix index fell 0.1 percent.
• S&P/ASX 200 Index was up 0.1 percent.
• Kospi index was little changed.
• MSCI Asia Pacific Index was little changed.

Commodities Check

• West Texas Intermediate crude fell 1.2 percent to $67.09 a barrel, heading for a fifth consecutive decline.
• Brent crude traded 0.6 percent higher at $75.74 per barrel.
• Gold was little changed at $1,300.07 an ounce.

Fuel Price Update

State-run oil marketers hiked petrol and diesel prices for the sixteenth day in a row.

The price of petrol was hiked by 16 paise today to Rs 86.24 a litre in Mumbai and diesel was raised by 15 paise to Rs 73.79 a litre, according to data released by Indian Oil Corporation Ltd.

Stories That You Might Have Missed

• Four years of Modi: Four key tax trends.
• Binani Cement lenders vote in favour of UltraTech bid.
• Diesel cars to die out in Tesla-like future, EU regulator says.
• Another Star Wars film flops in China.
• Trump’s Korea blunder is worse than it looks.
• What Krugman, Reinhart may miss on emerging market risk.

Key Events This Week

• EU trade chief Cecilia Malmstrom and U.S. Commerce Secretary Wilbur Ross are scheduled to meet on Wednesday in an informal World Trade Organization ministerial in Paris.
• The U.S. employment report for May is due on Friday. It’s the last jobs report before the Fed meeting in June.
• Automakers report May U.S. sales on the same day.
• Also Friday: China’s stock market joins MSCI Inc.’s global indexes.
• On Saturday, U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.

Stocks To Watch

• Vedanta ordered by Tamil Nadu government to seal and permanently close the Copper Smelter plant.
• Binani Cement lenders vote in favour of UltraTech bid
• Government of India increases its stake in IDBI Bank by 5 percent by acquiring 109.7 crore shares to 85.96 percent.
• Arihant Superstructures subsidiary gets loan sanction amounting to Rs 250 crore from HDFC for Panvel Project.
• Delhi High Court directs Fortis subsidiary to deposit Rs 503 crore in the account of the Delhi Government in favour of Director General of Health Services within a month.

Nifty Earnings To Watch

• BPCL
• Coal India
• M&M
• Power Grid

Other Earnings To Watch

• BEL
• BHEL
• Dilip Buildcon
• Dish TV
• Glenmark Pharma
• Godfrey Philips
• Ipca Labs
• Torrent Power

Earnings Reactions To Watch

L&T (Q4, YoY)

• Revenue up 11 percent at Rs 40,678 crore.
• Net profit up 5 percent at Rs 3,167 crore.
• Ebitda up 23 percent at Rs 5,390 crore.
• Margin at 13.2 percent from 11.9 percent.

Lumax Industries (Q4, YoY)

• Revenue up 45 percent at Rs 559 crore.
• Net profit rose to Rs 17.7 crore.
• Ebitda up 81.6 percent at Rs 46.5 crore.
• Margin at 8.3 percent.
• Deferred tax credit amounting to Rs 6.7 crore.

Finolex Cables (Q4, YoY)

• Revenue up 12.2 percent at Rs 796 crore.
• Net profit up 8.3 percent at Rs 81.8 crore.
• Ebitda up 14.3 percent at Rs 115.4 crore.
• Margin at 14.5 percent versus 14.2 percent.

Apex Frozen Foods (Q4, YoY)

• Revenue up 23.8 percent at Rs 203.1 crore.
• Net profit rose to Rs 17.5 crore.
• Ebitda stood at Rs 24.9 crore.
• Margin at 12.3 percent versus 7 percent.

Minda Corporation (Q4, YoY)

• Revenue up 39.9 percent at Rs 720.5 crore.
• Net profit up 2 .4 times at Rs 38.7 crore.
• Ebitda up 2.1 times at Rs 81.8 crore.
• Margin at 11.4 percent versus 7.5 percent.

MM Forgings (Q4, YoY)

• Revenue up 65.6 percent at Rs 199.5 crore.
• Net profit rose to Rs 27.4 crore.
• Ebitda up 63.6 percent at Rs 38.6 crore.
• Margin at 19.3 percent versus 19.6 percent.

NMDC (Q4, YoY)

• Revenue up 35.2 percent at Rs 3,883 crore.
• Net profit up 2.2 times at Rs 1,105.9 crore.
• Ebitda up 104 percent at Rs 1,901 crore.
• Margin at 49 percent versus 32.5 percent.

Elgi Equipments (Q4, YoY)

• Revenue up 24.1 percent at Rs 462.2 crore.
• Net profit up 30.3 percent at Rs 27.1 crore.
• Ebitda up 2.7 times at Rs 51.6 crore.
• Margin at 11.2 percent versus 5.2 percent.

Bank of India (Q4)

• Net interest income down 26.1 percent year-on-year at Rs 2,563.8 crore.
• Net loss at Rs 3,969.3 crore.
• Provisions up 53.2 percent at Rs 6,699.2 crore (QoQ).
• GNPA at 16.58 percent (QoQ).
• NPA at 8.26 percent (QoQ).

Oil India (Q4, QoQ) (Standalone)

• Revenue up 5.1 percent at Rs 2,998.4 crore.
• Net profit up 22.9 percent at Rs 866.5 crore.
• Ebitda down 34.6 percent at Rs 800.7 crore.
• Margin at 26.7 percent versus 10.29 percent.

Gravita India (Q4, YoY)

• Revenue up 79.1 percent at Rs 362.4 crore.
• Net profit up 20 percent at Rs 12 crore.
• Ebitda up 29 percent at Rs 24.9 crore.
• Margin at 6.9 percent vs 9.5 percent.

Aurobindo Pharma (Q4, YoY)

• Revenue up 11 percent at Rs 4,049 crore.
• Net profit down 0.5 percent at Rs 529 crore.
• Ebitda up 11 percent at Rs 805 crore.
• Margin at 19.9 percent vs 19.8 percent.

Shilpa Medicare (Q4, YoY)

• Revenue up 5.8 percent at Rs 234.5 crore.
• Net profit down 18 percent at Rs 30.6 crore.
• Ebitda down 16.1 percent at Rs 47.5 crore.
• Margin at 20.3 percent from 25.5 percent.

United Bank of India (Q4)

• NII up 2.3 percent YoY at Rs 513.5 crore.
• Net loss of Rs 260.6 crore versus net profit of Rs 735.6 crore.
• Provisions up 38.3 percent at Rs 1,333.4 crore (QoQ).
• GNPA at 24.1 percent versus 20.1 percent (QoQ).
• NPA at 16.49 percent versus 11.96 percent (QoQ).

NLC India (Q4, YoY) (Standalone)

• Revenue down 10.3 percent at Rs 2,542.9 crore.
• Net profit down 84 percent at Rs 381.3 crore.
• Ebitda down 47 percent at Rs 878.8 crore.
• Margin at 34.6 percent versus 58.4 percent.

Rural Electrical Corporation (Q4, YoY)

• Revenue down 3.7 percent at Rs 5,632 crore.
• Net profit down 36.7 percent at Rs 834.8 crore.
• Ebitda down 4 percent at Rs 4,975.8 crore.
• Margin at 88.3 percent versus 88.6 percent.

Bulk Deals

KSK Energy Ventures

• Oriental Bank of Commerce sold 35 lakh shares at Rs 3.9 each.

Advanced Enzyme Tech

• HDFC Mutual Fund bought 15 lakh shares at Rs 222 each.
• Chandrakanth Rathi Innovations & Projects sold 17 lakh shares at Rs 222 each.

Who’s Meeting Whom

• Crisil to meet Rondure Global and Grandeur Peak Global on May 29.
• Shriram Transport Finance to meet Wellington Management and others between May 29-31 in the U.S.
• BSE to meet ICICI Prudential Mutual Fund on May 29.
• Just Dial to meet Bajaj Alliance Life Insurance on May 29.

F&O Cues

• Nifty May Futures closed trading at 10,678.8; a discount of 9.7 points versus 2.6 points on Friday.
• Nifty June Futures closed at 10,691; a premium of 2.4 points.
• Nifty rollover at 17 percent, Bank Nifty rollover at 17 percent.
• All series-Nifty open interest up 2 percent and Bank Nifty open interest down 3 percent.
• India VIX ended at 13, up 3.2 percent.
• Maximum open interest for May series at 10,800 Call, open interest at 50.3 lakh, open interest down 5 percent.
• Maximum open interest for May series at 10,500 Put, open interest at 61.8 lakh, open interest down 8 percent.

F&O Ban

• In Ban: Balrampur Chini, DHFL, IDBI, Jet Airways, Jain Irrigation, Reliance Communications
• New in ban: Balrampur Chini
• Out of ban: BEML, Just Dial

Alert: Only intraday positions can be taken in stocks which are in F&O ban, in case of a rollover of these intraday positions there is a penalty.

Active Stock Futures

Put-Call Ratio

• Nifty PCR at 1.51 versus 1.46.
• Nifty Bank PCR at 1.41 versus 1.15.

Insider Trades

• Dr. Reddy’s Lab promoter and director GV Prasad acquired 56,000 shares on May 25.
• Bajaj Holdings and Investment promoters buy 6,48,000 shares from May 22 - 23.

(As reported on May 28)

Rupee

• Rupee closed at 67.43 per dollar on Monday versus 67.77 per dollar on Friday.

Brokerages On L&T

CLSA

• Maintained ‘Buy’ with a price target of Rs 1,730.
• Q4 results beat guidance on inflow and margin.
• Hydrocarbon business - the emerging star and fast-growing business.
• L&T has a credible strategy to improve both growth and its return on equity.
• L&T is a good proxy for domestic capex.

Credit Suisse

• Maintained ‘Outperform’ with a price target of Rs 1,700.
• Strong results with positive margins and working capital.
• Strong 2018-19 order inflow guidance of 10-11 percent and revenue growth guidance of 12-15 percent.
• Margin guidance allays concerns about raw material pressure.

Other Brokerage Calls

CLSA On NTPC

• Maintained ‘Buy’ with a price target of Rs 200.
• March quarter results were in line; profit muted by higher cost.
• Capacity additions clearly on track.
• Expect a marked pick-up in profit growth due to focused efforts to secure coal.

Edelweiss On NTPC

• Maintained ‘Buy’ with a price target of Rs 202.
• March quarter’s operating income was broadly in-line.
• Coal allocation priority to resolve fixed cost under recoveries.
• Expect regulated equity to compound at 15 percent over FY18-20.
• Guidelines on CERC norms could be an overhang.
• NTPC preferred player for coal allocation.
• Limited downside with triggers in place.

Angel Broking On Capacit`e Infraprojects

• Initiated ‘Buy’ with a price target of Rs 340.
• Large order book with marquee client base provides revenue visibility.
• Focused approach leads to strengthening of its position.
• Increased FSI to trigger construction work in Mumbai region.
• Expanding presence in cities with a high growth potential.