All You Need To Know Going Into Trade On April 15
Asian equities were muted at Thursday's open after U.S. stocks closed off all-time peaks as a drop in cryptocurrency exchange Coinbase Global Inc. overshadowed strong bank earnings.
Shares were up slightly in Japan, little changed in South Korea and lower in Australia. U.S. contracts edged higher after a slide in technology shares pulled benchmarks off record levels.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 0.74% to 14,665, as of 6:45 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Traders in Asia will focus on the People’s Bank of China’s cash injection Thursday, as a signal of whether policymakers are ready to provide fresh liquidity to ease rising concerns over tightening supply.
- U.S. data including initial jobless claims, industrial production and retail sales come Thursday.
- Federal Reserve Chairman Jerome Powell reiterated the central bank’s continued support for the recovery in a speech to the Economic Club of Washington Wednesday. He also noted that a pullback in asset purchases would happen “well before” policymakers consider raising interest rates.
- Oil trimmed an overnight jump but remained close to $63 a barrel as shrinking crude stockpiles in the U.S. supported hopes for a global demand recovery.
- Bitcoin touched a record of $64,870 before slipping.
Stocks To Watch
- Bharti Airtel: Announces new corporate structure to sharpen focus on Digital. The board has approved the scheme of arrangement between Bharti Airtel, Nettle Infrastructure Investments, Airtel Digital, Telesonic Networks and Airtel Ltd for the amalgamation of Nettle Infrastructure Investments, Airtel Digital and Telesonic Networks which are wholly-owned subsidiaries with and into Bharti Airtel. The board also approved the demerger of the telecom business undertaking of the company and vesting of the same with Airtel Ltd., a wholly-owned subsidiary on a going concern basis. In a separate filing, the company's wholly-owned subsidiary Nettle Infrastructure Investments has acquired a 100% stake in OneWeb India Communications Pvt. Ltd. for a cash consideration which has not been specified.
- Dr Reddy's Laboratories: To distribute 250 million doses of Sputnik V vaccine. In talks with the Indian government on pricing. The company expects to get delivery of Sputnik V this quarter. It has also lined up the cold chain for the vaccine. API & Services CEO Deepak Sapra said that the capacity for Sputnik V will be ramped up next quarter.
- Aditya Birla Capital: Board accords approval for Aditya Birla Sun Life AMC's IPO. The company will sell 28.5 lakh shares of the face value of Rs 5 each that it holds in Aditya Birla Sun Life AMC out of the paid-up share capital of 28.8 crore shares through the IPO. Sun Life (India) AMC Investments, the company's joint venture shareholder has also approved the sale of 3.6 crore shares of Aditya Birla Sun Life AMC. The proposed sale by both partners will constitute 13.5% of the total paid-up share capital.
- UPL: Supreme Court of Queensland in Australia has dismissed a class action litigation against Advanta Seeds Pty, a subsidiary of the company. The class action, funded by a U.K.-based litigation funder, alleged that seeds sold by Advanta in 2010-11 to certain growers in the Queensland and New South Wales region of Australia, were contaminated.
- Vedanta: 37.42 crore shares of the company were validly tendered in the voluntary open offer. The acquisition of the shares will be completed on or by April 16, 2021. Post this acquisition, the promoter shareholding in Vedanta will rise to 65.2% from 55.1%.
- Sterlite Technologies: Openreach has selected the company as a strategic partner to help build its new U.K. full-fibre network. Sterlite Tech will be responsible for delivering millions of kilometres of optical fibre cable to support the build over the next three years.
- NHPC: Signs promoters agreement with Jammu and Kashmir State Power Development Corporation Ltd. and the government of the Union Territory of Jammu and Kashmir for 850 MW Ratle Hydro-electric Project. NHPC will hold a 51% stake in the JV company which will have an authorised share capital of Rs 1,600 crore. The board will initially comprise seven directors.
- 5Paisa Capital: Approved raising funds worth Rs 250.87 crore through a preferential issue of equity shares and warrants at Rs 500 per share, which is at a premium of over 70% to Tuesday's closing price. While equity shares have been issued to marquee investors like WF Asian Reconnaissance Fund, FIH Mauritius Investments, HWIC Asia Fund Class A shares and RIMCO India, warrants have been issued to promoters and promoter groups.
- Happiest Minds Technologies: Has entered into a strategic partnership with BeatRoute to solve typical revenue realisation problems faced by the Consumer Packaged Goods (CPG) industry.
- L&T Technology Services: To consider the final dividend for FY21 at its board meeting on May 3.
- Route Mobile: Highlight that there have been unverified posts and claims about an alleged data breach at the company. The company has confirmed that at present, the systems are secure. It has also engaged a third-party cybersecurity consultant to independently verify and audit the systems and take any corrective action if need be.
- JSW Steel: Has completed the acquisition of a 30.73% stake in GSI Lucchini for a cash consideration of 1 million euros.
- Future Retail: Amazon has filed a special leave petition before the Supreme Court against the order passed by the Division bench of the Delhi High Court.
- Tata Motors: Group global wholesales up 43% year-on-year at 3,30,125 units. Global wholesales of all commercial vehicles and Tata Daewoo range up 55% year-on-year at 1,09,428 units. Global wholesales of all passenger vehicles rose 39% year-on-year at 2,20,697 units.
- HDFC Bank: Proposes to raise funds by issuing perpetual debt instruments, tier-II capital bonds and long-term bonds up to Rs 50,000 crore over the next 12 months on a private placement basis. The board will consider this proposal at its meeting on April 17.
- NBCC (India): Secured total business of Rs 518.20 crore in March 2021.
- Adani Enterprises: The company's wholly-owned subsidiary, Adani Road Transport, has incorporated a WOS namely, Badakumari Karki Road, to carry out the development, operation, maintenance and management of a highway project in Odisha.
- Exide Industries: Has further invested Rs 39.99 crore by way of subscription to the equity share capital of its subsidiary, Exide Leclanche Energy. Subsequently, the company's equity shareholding in Exide Leclanche Energy has increased by 2.56% to 82.71% from 80.15%.
Earnings to watch
- Nifty Earnings: Wipro
- Non-Nifty Results: Hathway Cable & Broadband, Tinplate Company of India
Infosys Q4FY21 (Consolidated, QoQ)
- Revenue up 1% at Rs 26,311 crore Versus Rs 25,927 crore (Bloomberg Estimate: Rs 26,510 crore)
- Net profit down 3% at Rs 5,078 crore Versus Rs 5,215 crore (Bloomberg Estimate: Rs 5,171 crore)
- Ebit down 2% at Rs 6,440 crore Versus Rs 6,589 crore (Bloomberg Estimate: Rs 6,532 crore)
- Ebit margins at 24.5% Versus 25.4% (Bloomberg Estimate: 24.6%)
- U.S. Dollar revenue up 3% at $3,613 million Versus $ 3,516 million (Bloomberg Estimate: $3,605 million)
- Expects FY22 revenue to grow 12-14% in constant currency terms.
- Guides for operating margins to be in the range of 22-24% in FY22.
- Announces Rs 9,200 crore share buyback. The buyback price of Rs 1,750 per share is a 25.2% premium to Tuesday's closing price.
Pledge Share Details
- Emami: Promoters (Sneha Gardens and Sneha Enclave) revoked pledge of 19.40 lakh shares between April 9-12.
- Adani Power: Promoter Adani Tradeline LLP revoked pledge of 1.45 crore shares between April 7-9.
- Sun Pharmaceutical Industries: Promoter Shanghvi Finance revoked pledge of 1.79 crore shares between April 9-12.
As reported on April 13 and 14.
- Ex-Date Stock Split: Finolex Industries
- Ex-Date Dividend: KSB
- Ex-Date Income Distribution: India Infrastructure Trust
- Record Date Stock Split: Stylam Industries
- Record Date Amalgamation: Harita Seating Systems
- Move Into ASM Framework: Suven Life Sciences, Dhani Services
- Move Out Of Short-Term ASM Framework: Dynamatic Technologies
- Nifty April futures ended at 14,556; premium of 52 points
- Nifty April futures shed 2% and 2,978 shares in Open Interest
- Nifty Bank April futures ended at 31,840; premium of 69 points
- Nifty Bank April futures shed 7.3% and 5,327 shares in Open Interest
- Nifty Put-Call Ratio at 1.41
- Out of F&O Ban: SAIL
- Stocks in F&O ban: NIL