The sun rises as luxury yachts sit moored in the harbour during the Monaco Yacht Show . (Photographer: Chris Ratcliffe/Bloomberg)

All You Need To Know Going Into Trade On August 8

Asian equities pushed higher as markets opened Wednesday after U.S. stocks approached a fresh all-time high.

Equity benchmarks in Japan, Australian and South Korea ticked higher, and futures pointed to gains for stocks in Hong Kong and China. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 11,428 as of 7:10 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 pushed their winning streak to four days amid a relative cooling of protectionist rhetoric between the world’s two largest economies and optimism growth can continue.
  • The yield on 10-year Treasuries held at 2.97 percent.

Also read: U.S. to Raise Tariffs on $16 Billion of China Goods on Aug. 23

Europe Market Check

  • European stocks advanced as a rally in metal prices in China lifted the basic-resources sector.
All You Need To Know Going Into Trade On August 8

Also read: In This Trade War, Starbucks Just Put Its Money on China

Asian Cues

  • Japan’s Topix index rose 0.1 percent.
  • Australia’s S&P/ASX 200 Index gained 0.2 percent.
  • South Korea’s Kospi index climbed 0.3 percent.
  • Futures on the FTSE China A50 Index advanced 0.3 percent.
  • Futures on Hong Kong’s Hang Seng added 0.5 percent.
  • S&P 500 Index futures were flat.

Also read: Is Xi Jinping’s Bold China Power Grab Starting to Backfire?

Here are the key events to watch out for this week:

  • Samsung Electronics unveils its next Galaxy Note smartphone.
  • U.S. consumer prices probably rose in July, consistent with a pickup in inflation that’s projected to keep the Federal Reserve on a path of gradual interest-rate increases, economists forecast before Friday’s release.

Commodity Cues

  • West Texas Intermediate crude rose 0.1 percent to $69.23 a barrel.
  • Brent crude traded 0.1 percent lower at $74.59 a barrel.
  • Gold gained 0.1 percent to $1,212.19 an ounce.

Shanghai Exchange

  • Steel snapped three-day winning streak; down 0.4 percent.
  • Aluminium traded lower; down 0.5 percent.
  • Zinc traded higher; up 0.4 percent.
  • Copper traded higher; up 0.1 percent.
  • Rubber traded higher for third day; up 0.9 percent.

Also read: Musk Mulls Taking Tesla Private, Valuing Company at $82 Billion

Nifty Earnings To Watch

  • BPCL
  • Cipla
  • HPCL
  • Lupin

Other Earnings To Watch

  • BEML
  • Blue Star
  • Future Consumer
  • Phoenix Mills
  • PNB Housing Finance
  • Siemens
  • Strides Shasun
  • Thermax
  • Trent

Also read: Turkey Replaces Argentina as Worst Market for Bond Investors

Earnings Reactions To Watch

Inox Wind (Q1, YoY)

  • Revenue up 4.6 times at Rs 430.5 crore.
  • Net profit up at Rs 10.4 crore.
  • Ebitda at Rs 68 crore.

Butterfly Gandhimati Appliances (Q1, YoY)

  • Revenue up 43.8 percent at Rs 124.4 crore.
  • Net profit at Rs 1.3 crore.
  • Ebitda at Rs 9.3 crore.

SRF (Q1, YoY)

  • Revenue up 34.6 percent at Rs 1741.3 crore.
  • Net profit up 28.9 percent at Rs 133.8 crore.
  • Ebitda up 64.6 percent at Rs 326.6 crore.
  • Margin at 18.8 percent versus 15.3 percent.

Mphasis (Q1, QoQ)

  • Revenue up 4.3 percent at Rs 1820.2 crore.
  • Net profit up 8.7 percent at Rs 258.3 crore.
  • EBIT up 3.3 percent at Rs 297.6 crore.
  • Margin at 16.3 percent versus 16.5 percent.

Future Supply Chain Solutions (Q1, YoY)

  • Revenue up 49.9 percent at Rs 227.9 crore.
  • Net profit up 37.7 percent at Rs 17.9 crore.
  • Ebitda up 34 percent at Rs 32.3 crore.
  • Margin at 14.2 percent versus 15.9 percent.

Edelweiss Financial Services (Q1, YoY)

  • Revenue up 17 percent at Rs 2,435.5 crore.
  • Net Profit up 31 percent at Rs 264 crore.

Glaxosmithkline Consumer Healthcare (Q1, YoY)

  • Revenue up 12.3 percent at Rs 1107.1 crore.
  • Net profit up 51.6 percent at Rs 200.4 crore.
  • Ebitda up 38.1 percent at Rs 230.3 crore.
  • Margin at 20.8 percent versus 16.9 percent.

Prataap Snacks (Q1, YoY)

  • Revenue up 19.2 percent at Rs 268.6 crore.
  • Net profit up 6.1 percent at Rs 10.4 crore.
  • Ebitda down 9 percent at Rs 18.1 crore.
  • Margin at 6.7 percent versus 8.8 percent.

Birla Corporation (Q1, YoY)

  • Revenue up 13.5 percent at Rs 1655.8 crore
  • Net profit up 94.2 percent at Rs 83.9 crore.
  • Ebitda up 2.5 percent at Rs 246.5 crore.
  • Margin at 14.9 percent versus 16.5 percent.
  • Exceptional expense of Rs 12.5 crore. in base quarter.

Adani Enterprises (Q1, YoY)

  • Revenue down 6.9 percent at Rs 7953.8 crore.
  • Net profit up 6.3 percent at Rs 169.4 crore.
  • Ebitda up 38.3 percent at Rs 650.4 crore.
  • Margin at 8.2 percent versus 5.5 percent.
  • Exceptional expense of Rs 185.5 crore.

Dhampur Sugar Mills (Q1, YoY)

  • Revenue down 13.6 percent at Rs 734.4 crore.
  • Net profit down 49.4 percent at Rs 31.7 crore.
  • Ebitda down 35.9 percent at Rs 91 crore.
  • Margin at 12.4 percent versus 16.7 percent.
  • Other expense up 82 percent at Rs 75.9 crore.
  • Off season gain of Rs 17.2 crore in base quarter.

Lovable Lingerie (Q1, YoY)

  • Revenue down 9.3 percent at Rs 54.9 crore.
  • Net profit down 33.9 percent at Rs 4.1 crore.
  • Ebitda down 27.4 percent at Rs 5.3 crore.
  • Margin at 9.7 percent versus 12.1 percent.

Mirza International (Q1, YoY)

  • Revenue up 3.8 percent at Rs 261.8 crore.
  • Net profit down 11.3 percent at Rs 18.1 crore.
  • Ebitda down 2.5 percent at Rs 43.1 crore.
  • Margin at 16.5 percent versus 17.5 percent.

Thomas Cook (Q1, YoY)

  • Revenue down 7.5 percent at Rs 2084.5 crore.
  • Net profit up 6.5 percent at Rs 70.6 crore.
  • Ebitda down 49.9 percent at Rs 82.8 crore.
  • Margin at 4 percent versus 5.8 percent.

Stocks To Watch

  • Mphasis board approved Rs 988.3 crore buyback of up to 73.3 lakh shares (3.79 percent equity) at Rs 1,350 each.
  • Glenmark Pharma gets US FDA acceptance of NDA for Ryaltris.
  • Patel Engineering bagged two hydroprojects and tunnel projects order worth Rs 2400 crore.
  • Gujarat High Court dismisses tax demand petition filed by Gujarat Sales Tax department against GAIL.
  • Dhanlaxmi Bank revised its MCLR across various tenors.
  • GOCL Corporation arm got explosives order worth Rs 203.09 crore from Singareni Collieries.
  • Butterfly Gandhimati Appliances CEO Prakash Iyer resigned.

New Offering

  • CreditAccess Grameen IPO at Rs 418-422 per share opens, close on Aug. 10.
  • Shyam Metalics seeks SEBI approval to raise Rs 909 crore in IPO.

Bulk Deals

Techno Electric and Engineering Co.

  • ECAP Equities acquired 35 lakh shares or 3.1 percent equity at Rs 279.1 each.
  • JP Financial Services Pvt sold 35 lakh shares or 3.1 percent equity at Rs 279.1 each.

Indian ADRs

All You Need To Know Going Into Trade On August 8

Who’s Meeting Whom

  • ACC to meet Northern Cross, USA on Aug. 08.
  • Mahindra Logistics to meet White Oak Capital, Goldman Sachs and other investors from Aug. 8-14.

Insider Trades

  • Chambal Fertilisers & Chemicals promoter acquired 40,000 shares on Aug. 03.

Money Market Update

  • Rupee ended at 68.69/$ versus 68.68/$ on Monday.

F&O Cues

  • Nifty August Futures closed trading at 11,418 premium of 29 points versus 27 points.
  • August series-Nifty OI up 1 percent and Bank Nifty OI up 3 percent.
  • India VIX ended at 12.5, up 0.1 percent.
  • Max OI for August series at 11,500 Call, OI at 38.5 lakh, OI up 11 percent.
  • Max OI for August series at 11,000 Put OI at 51.1lakh, OI up 1 percent.

F&O Ban

  • In ban: Adani Enterprises, Adani Power, Jet Airways, PNB.
  • New In Ban: Adani Enterprises, PNB.

Put-Call Ratio

  • Nifty PCR at 1.67 Vs 1.69.
  • Nifty Bank PCR at 1.37 Vs 1.50.

Active Stock Futures

Fund Flows

All You Need To Know Going Into Trade On August 8

Brokerage Radar

Motilal Oswal on Punjab National Bank

  • Maintained ‘Neutral’ with a price target of Rs 85.
  • Asset quality stabilizes marginally.
  • Weak performance continues.
  • Recoveries and upgrades increased sharply.
  • Expect PNB to come back to profitability from April 2019.

Citi on TVS Motor

  • Maintained ‘Sell’; cut price target to Rs 475 from Rs 490.
  • June quarter reported weak gross margins, high tax rate hit profits.
  • TVS will not be taking price cuts.
  • Sharp increase in margins will be difficult in current environment.

Citi on AU Small Finance

  • Maintained ‘Sell’ with a price target of Rs 590.
  • June quarter review: Strong AUM growth sustains; Capital raise boosts Tier 1.
  • Pre-provisioning operating profit below estimates; Net profit inline.
  • Disbursements remains strong.

Brokerages On Hindalco

UBS

  • Maintained ‘Buy’ with a price target of Rs 330.
  • Novelis June quarter’s operating income was ahead of estimates.
  • Quarter had a tailwind in terms of better scrap spreads.
  • Expect investors to react positively to the solid performance at Novelis.

IDFC Securities

  • Maintained ‘Outperform’ with a price target of Rs 346.
  • Novelis June quarter review: On a firm footing.
  • Key positives: favourable scrap spread, Ebitda per tonne of $417; S&P Credit rating upgrade to BB- from B+.
  • Improved financial performance of Aleris also bodes well for the stock.

Brokerages On Motherson Sumi

Citi

  • Maintained ‘Sell’ with a price target of Rs 280.
  • June quarter review: Parent/SMP disappoints; PKC ahead of estimates.
  • Lower minority interest was offset by higher tax rate.
  • PKC margins are expected to improve further from current levels.

UBS

  • Maintained ‘Buy’ with a price target of Rs 380.
  • June quarter review: Miss on India; Accounting change impacts India and SMP revenues.
  • Overall business momentum remains robust.
  • Capex phase coming to an end; Margin improvement to continue.
  • Setting up for a strong 2019-2020 finish.

Brokerages On M&M

UBS

  • Maintained ‘Buy’ with a price target of Rs 1,000.
  • June quarter review: Strong Ebitda growth helped by strong quarter for tractors.
  • Tractor inventory remains substantially below industry; Auto inventory remains inline.
  • Current quarter is likely to be flattish for tractors due to a delayed festive season.

Citi

  • Maintained ‘Buy’; raised price target to Rs 1,060 from Rs 1,010.
  • June quarter was another steady quarter.
  • Growth outlook for tractors and utility vehicles unchanged for now.
  • Management thinks dealer network can support three new launches.
  • M&M is a key buy in the auto sector.