All You Need To Know Going Into Trade On April 13
Asian equities climbed early Tuesday, with U.S. stocks around record highs as investors eye the start of the corporate earnings season and relatively smooth sales of government debt.
Stocks opened in the green in Japan, South Korea and Australia. U.S. equity contracts fluctuated after the S&P 500 closed a touch lower following three straight weeks of gains.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 14,357 as of 6:46 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- S&P 500 futures were flat after the index closed little changed Monday.
- The yield on 10-year Treasuries edged up one basis point to 1.67%.
- The Bloomberg Dollar Spot Index was steady.
- West Texas Intermediate crude rose 0.1% to $59.77 a barrel.
- Gold was 0.2% lower at $1,730 an ounce.
- Bitcoin climbed back above $60,000 ahead of a listing by the largest U.S. cryptocurrency exchange.
Keep An Eye On
- Banks and financial firms begin reporting first-quarter earnings, including JPMorgan Chase & Co., Citigroup Inc., Bank of America Corp., Morgan Stanley, Goldman Sachs Group Inc.
- The U.S. releases inflation data Tuesday.
- Chinese trade data are scheduled for Tuesday.
- U.S. data including initial jobless claims, industrial production and retail sales come Thursday.
- China economic growth, industrial production and retail sales figures are on Friday.
Stocks To Watch
- Bandhan Bank: Advances up 21% year-on-year and 8% quarter-on-quarter to Rs 87,054 crore. Total deposits up 37% year-on-year and 10% quarter-on-quarter to Rs 77,972 crore. CASA ratio at 43.4% from 42.9% in December 2020.
- Yes Bank: SEBI imposes a penalty of Rs 25 crore on the bank in AT1 bonds case. The penalty of Rs 50 lakh to Rs 1 crore was imposed on Vivek Kanwar, Ashish Nasa and Jasjit Singh Banga, who were part of Yes Bank’s Private Wealth Management Team. The bank and these three individuals deliberately misrepresented the AT1 bonds as being more attractive than the FDs, said SEBI.
- L&T Finance Holdings: L&T Housing Finance and L&T Infrastructure Finance Company to merge with L&T Finance, all wholly-owned subsidiaries of the company. The scheme of amalgamation is effective April 12. Pursuant to the merger, L&T Infra Debt Fund, one of the subsidiaries of the company, may be required to make changes to the nature of business/activities/shareholding structure. Further, the board has approved the appointment of Ashish Malani as the Chief Risk Officer in place of Tushar Patankar for two years.
- Satin Creditcare Network: The company’s AUM stood at Rs 7,274 crore as of March 31, 2021, a growth of 5.3% quarter-on-quarter. In FY21, the company maintained liquidity of Rs 1,469 crore and raised Rs 4,312 crore including direct assignment transactions of Rs 743 crore. Further, it completed the rights issue of Rs 120 crore to strengthen the capital base. Out of this, Rs 90 crore has already been received.
- Muthoot Finance: Board has approved payment of an interim dividend of Rs 20 per equity share. The interim dividend will be paid within 30 days from the date of declaration.
- Hindustan Copper: Approves closure of QIP from April 12 and sets issue price of Rs 119.60 per share. The issue price is at a discount of 4.92% to the floor price of Rs 125.79 per share.
- Chalet Hotels: Approved scheme of arrangement and amalgamation amongst Belaire Hotels and Seapearl Hotels with Chalet Hotels.
- No Earnings Today
Earnings Post Market Hour
TCS Q4 (Quarter-on-Quarter)
- Revenue up 4% at Rs 43,705 crore Versus Rs 42,015 crore (Bloomberg Estimate: Rs 43,517.7 crore)
- EBIT up 4.9% at Rs 11,734 crore Versus Rs 11,184 crore (Bloomberg Estimate: Rs 11,609.9 crore)
- EBIT margin at 26.8% Versus 26.60% (Bloomberg Estimate: 27%)
- Net profit up 6.26% at Rs 9,246 crore Versus Rs 8,701 crore (Bloomberg Estimate: Rs 9,268.6 crore)
- Revenue in dollar terms up 5% to $5,989 million
- Top line grew 4.6% year-on-year in FY21
- BFSI segment up 5.43% to Rs 17,559 crore
- Manufacturing up 4.6% to 4,213 crore
- Retail and consumer Business up 3.5% to 6,778 crore
- Communication, Media & Tech up 0.9% to Rs 7,042 crore
- Board has recommended a final dividend of Rs 15 per equity share
- The company has appointed Samir Seksaria as its Chief Financial Officer who will take charge from May 1
Pledge Share Details
- Adani Enterprises: Promoter Adani Tradeline LLP revoked the pledge of 36.98 lakh shares between April 7-8.
- Adani Transmission: Promoter Adani Tradeline LLP revoked the pledge of 32.99 lakh shares on April 8.
- Emami: Promoter Sneha Enclave revoked the pledge of 1.50 lakh shares on April 2.
As reported on April 12.
- Brigade Enterprises: Vanguard Funds bought 16.72 lakh shares (0.79%) at Rs 257.33 per share.
- Strides Pharma Science: Smallcap World Fund Inc bought 14.93 lakh shares (1.67%) at Rs 849.92 per share and bought another 5.96 lakh shares (0.67%) at Rs 849.99 per share. HDFC Mutual Fund sold 7 lakh shares (0.78%) at Rs 850 per share.
Who's Meeting Whom
- Somany Home Innovation: To meet Elara Securities (India) on April 13 and Unifi Capital on April 15.
- Price Band Revised From 20% To 10%: Panacea Biotec
- Move Into Short-Term ASM Framework: Renaissance Global, Nureca
- Move Out Of Short-Term ASM Framework: RattanIndia Enterprises, Future Lifestyle Fashions, Rajratan Global Wire
Money Market Update
The Indian rupee dropped past 75 to a dollar for the first time since August 2020 as the Covid crisis deepened raising concerns it will deliver a fresh blow to an economy that’s only just recovering from the worst contraction in nearly seven decades.
- Nifty April futures ended at 14,364; premium of 54 points
- Nifty April futures shed 1% and 1,414 shares in Open Interest
- Nifty Bank April futures ended at 30,954; premium of 162 points
- Nifty Bank April futures added 4.8% and 3,329 shares in Open Interest
- Nifty Put-Call Ratio at 1.4
- Stocks In F&O Ban: SAIL