All You Need To Know Going Into Trade On April 19
Asian stocks traded mostly higher following a U.S. session dominated by the drop in Treasuries, as investors continue to assess the speed of monetary policy tightening.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.3 percent to 10,588 as of 7:05 a.m.
Short on time? Well, then listen to this podcast for a quick summary of the article!
Here’s a quick look at all that could influence equities on Thursday.
- U.S. stocks edged higher as investors parsed a mixed bag of earnings and rising oil prices boosted energy producers.
- The yield on 10-year Treasuries increased four basis points to 2.87 percent, the highest in more than three weeks.
- European equities advanced, with commodities stocks surging, as investors focused attention on corporate earnings amid an easing of geopolitical tensions.
- The euro was steady at $1.2373.
- The British pound decreased 0.6 percent to $1.4199.
- Germany’s 10-year yield gained two basis points to 0.53 percent.
- Britain’s 10-year yield fell two basis points to 1.414 percent.
- The MSCI Asia Pacific Index rose 0.2 percent.
- Topix index rose 0.4 percent.
- Kospi index fell 0.1 percent.
- Australia’s S&P/ASX 200 Index rose 0.6 percent.
- Futures on the S&P 500 Index rose 0.1 percent.
Here are some key events coming up this week:
- Finance ministers and central bank chiefs from around the world gather for spring meetings at the IMF in Washington.
- Bank Indonesia will probably hold its benchmark at 4.25 percent, extending a pause after easing in August and September was followed by bouts of rupiah weakness.
- West Texas Intermediate crude rose 0.4 percent to $68.76 a barrel.
- Brent trades higher at $73.9 per barrel; up 0.6 percent.
- Gold rose 0.1 percent to $1,350.64 an ounce.
- Sugar snapped two-day losing streak at 11.9 cents per pound; up 0.8 percent.
- Steel trades higher for second day; up 1.2 percent.
- Aluminium traded higher for fifth day; up 2.1 percent (trades at three-month high).
- Zinc traded higher for fourth day; up 3.4 percent.
- Copper traded higher; up 1.8 percent.
- Rubber traded higher for second day; up 1.6 percent.
Stories You Might’ve Missed
- Valuation guru Ashwath Damodaran wants Infosys to act its age.
- India's March aviation traffic grew at its fastest pace in 32 months.
- BQ Opinion: Trade wars, capital flight, and... Formula One
- Why hotel stocks are rallying
- Rajpath: An exclusive interaction with Akhilesh Yadav
- The world's debt load is breaking records. That's worrisome.
- India’s air passenger traffic grows the fastest in 32 months
- The potential locations where Trump could meet Kim
- India is still struggling to resolve stressed assets in the power sector
- Worried about the markets during Lok Sabha elections? Here's how you can manage risk
- Amazon's Bezos says company topped 100 million prime members
- Black Panther becomes the first movie to be released in Saudi Arabia in more than 35 years!
Nifty Earnings To Watch
- IndusInd Bank
Earnings Reactions To Watch
Mindtree (Q4, QoQ)
- Revenue up 6 percent at Rs 1464 crore.
- Net profit up 29 percent at Rs 182 crore.
- EBIT up 19 percent at Rs 197 crore.
- Margin expanded to 13.5 percent from 12.0 percent.
HDFC Standard Life Insurance (Q4, YoY)
- Net premium income up 24 percent at Rs 8,900 crore.
- Net profit up 40 percent at Rs 347 crore.
- Loss from investment at Rs 937 crore versus income of Rs 4,866 crore.
Stocks To Watch
- Mercator says coal mining operations in Indonesia have attained near optimum levels.
- Dynamatic Technologies signed MoU with France’s Daher Aerospace.
- Mishra Dhatu Nigam signed two pacts in DefExpo India 2018: Bloomberg
- IHH is said to seek time for due diligence and financial details before Fortis bid: Bloomberg
- Infosys clarified it has not received any anonymous whistleblower complaint.
- GEE to enter into pact with Avion Investments for development of IT Pak Project at Thane Plant.
- Container Corp to consider stock split on April 30.
- ABG Shipyard IRP invited fresh bids for the company.
- Infibeam received online marketplace contract from NSDC.
- Dynemic Products Ltd. gets closure notice for Gujarat unit from Gujarat Pollution Control Board.
- NMDC cut prices of lump ore and fines by Rs 100 each to Rs 2,900 per tonne and Rs 2,560 per tonne with effect from April 18.
- Bharat Dynamics signed licensing agreement with DRDO for Astra MK-1 Weapon System.
- Bharti Airtel announced 30GB free data for users upgrading to 4G: Bloomberg
- Sun Pharmaceuticals unit hiked stake in Ranbaxy Malaysia by 4.93 percent.
- GE Shipping takes delivery of secondhand very large gas carrier of about 81,617 cbm; company has also committed to purchase one second-hand medium gas carrier.
- Lemon Tree Hotels signed three management contract for a hotel each in Rishikesh, Neelkanth and Mussoorie.
- JHS Svendgaard board approved additional investment in JHS Svendgaard brands and JHS Svendgaard retail ventures.
- Jain Irrigation board approved plan to raise Rs 260 crore loan from World Bank arm
- Trigyn Technologies received three IT services contract in U.S.
- Magma Fincorp raised Rs 500 crore at a price of Rs 155 per share through a QIP.
- DCB Bank: Abu Dhabi Investment Authority bought 21 lakh shares or 0.7 percent equity at Rs 198.18 each.
- Tata Sponge Iron: AJO Emerging Markets Small-Cap Master Fund, Ltd. sold 81,844 shares or 0.5 percent equity at Rs 1,148.41 each.
- Elara India Opportunities Fund bought 6.50 lakh shares or 3.8 percent equity at Rs 74 each.
- Nomura Singapore bought 5 lakh shares or 3 percent equity at Rs 74 each.
- Promoter Huhtavefa B.V bought 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.
- Amar Chhajed sold 5.50 lakh shares or 0.7 percent equity at Rs 353.55 each.
- Kotak India Mid-Cap Fund bought 5.82 lakh shares or 3.4 percent equity at Rs 2210 each.
- Gaja Capital India Fund I sold 1.07 lakh shares or 0.6 percent equity at Rs 2210 each.
- GPE (India) Ltd. sold 5.75 lakh shares or 3.4 percent equity at Rs 2210 each.
- Phillips Carbon Black ex date for 5:1 stock split.
- Foods & Inns ex date for 10:1 stock split.
- Sequent Scientific last trading day under T group.
Who’s Meeting Whom?
- Infosys to meet analysts/investors on April 19.
- Deepak Fertilizers to meet Dhunseri Investments on April 19.
- Shriram Transport Finance to meet Investec Asset Management on April 19.
- Shankara Building Products to meet analysts/investors on April 19.
- VIP Industries promoters acquired 1.11 lakh shares on April 12.
- Donear Industries promoter Ajay V Agarwal HUF acquired 1,548 shares on April 16.
- Man Industries promoter Rameshchandra Mansukhani acquired 75,114 shares on March 23.
- Aarti Industries promoter Prasadi Banatwala sold 1,930 shares from April 11 – 17.
- Divi’s laboratories promoter Madhusudana Rao Divi sold 10,000 shares on April 16.
- KM Sugar Mills promoter Uma Devi Jhunjhunwala sold 16,400 shares from April 1 – 16.
- Asahi Songwon promoters acquired 6,000 shares on April 16.
- Valiant Organics promoter Manisha Rashesh Gogri sold 4,800 shares on April 16.
- Rupee closed at 65.66/$ on Wednesday versus 65.65/$ on Tuesday.
Top Gainers And Losers
- Nifty April Futures closed trading at 10,538 with a premium of 12.6 points versus 2.5 points.
- April series-Nifty open interest up 1 percent, Bank Nifty open interest down 5 percent.
- India VIX ended at 14.01, up 0.5 percent.
- Max open interest for April series at 10,700 (open interest at 50.5 lakh, up 9 percent).
- Max open interest for April series at 10,400 (open interest at 51.4 lakh, down 2 percent).
- In ban: IRB Infrastructure Developers, Jet Airways (India), Jaiprakash Associates, Reliance Communications, TV18 Broadcast.
- New in ban: Jet Airways (India).
Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.
- Nifty PCR at 1.59 versus 1.63
- Nifty Bank PCR at 1.14 versus 1.47
Stocks Seeing High Open Interest Change
Elara Capital on Shalby
- Initiated ‘Buy’ with a price target of Rs 275.
- Best placed to capture the orthopedic care treatment opportunity.
- Asset-light operating model with better cost structure.
- New hospitals to start contributing; Mature hospitals to contribute the most.
- Expect revenue and operating income to compound at 27 percent and 25 percent respectively over the fiscal 2018-2020.
- EPS to double to Rs 7.4 by March 2020; RoCE to improve by 200 basis points over the fiscal 2018-2020.
- With zero net debt company in sweet spot to explore inorganic opportunities.
Citi on Adani Ports
- Maintained ‘Buy’ with a price target of Rs 575.
- Healthy volume growth to continue.
- Cash flows are improving.
- Capex to decline over next 2-3 years.
- Top-pick in India infrastructure.
Citi on InterGlobe Aviation
- Maintained ‘Buy’ with TP of Rs 1,600.
- Domestic passenger air traffic growth unabated.
- Marginal decline in IndiGo's market share due to forced grounding.
- Expect improvement in market share going forward.
Prabhudas Lilladher on Mindtree
- Maintained ‘Accumulate’; raised price target to Rs 930 from Rs 685.
- March quarter was strong; Revenue and Ebitda beat estimates.
- Current fiscal’s full year margin guidance remains conservative.
- Preponing of wage hikes is positive; Indicates robust revenue growth outlook.
- Mindtree is likely to grow twice the pace of TCS in the current financial year.
MOSL on Mindtree
- Maintained ‘Buy’; raised price target to Rs 1,000 from Rs 725.
- March quarter’s revenue beat estimates despite BFSI weakness.
- Strong exit to an overall subdued year.
- Strong revenue momentum to offset lower other income and higher tax rate.
- Expect $ Revenue and earnings to compound at 14 percent and 29 percent over the fiscal 2018-2020.
Prabhudas Lilladher on HDFC Standard Life
- Maintained ‘Buy’; raised price target to Rs 518 from Rs 500.
- Positive surprise on new business margins.
- APE growth was quite robust compared to peers.
- Margins to improve as share of protection increases and ULIP mix remains the same.
MOSL on HDFC Standard Life
- Maintained ‘Buy’ with a price target of Rs 475.
- March quarter was a steady quarter; Business momentum remains strong.
- Return ratios remain steady; Dividend payout healthy at 30 percent.
- Expect 26 percent compounded growth rate in new business APE over the fiscal 2018-2020.
- Valuations to sustain at premium levels.