All You Need To Know Going Into Trade On April 19
Asian shares opened mixed Monday and U.S. equity futures dipped after stocks ended the week at all-time highs, with investors focusing on the economic recovery and upcoming earnings.
Japan’s benchmark edged lower, while Australia and South Korea were in the green after the S&P 500 Index capped its fourth straight weekly advance.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, down 1.31% to 14,450, as of 6:45 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Robust data from China and the U.S. have buoyed investor sentiment, pushing the MSCI All-Country World Index to another record despite concerns surrounding the spread of Covid-19 variants.
- Asian credit markets may get some respite from a rebound in China Huarong Asset Management Co. bonds.
- China’s financial regulator said the bad-debt manager had ample liquidity, its first official comments since the company delivered a jolt by missing a deadline to report earnings.
- Treasury yields steadied well below recent peaks in U.S. trade. Crude oil slipped and the dollar steadied from a week of losses.
- Bitcoin tumbled the most since February over the weekend, after reaching a record last week as crypto exchange Coinbase Global Inc. went public.
- Meanwhile, traders are also monitoring growing tensions between the U.S. and Russia over jailed opposition leader Alexey Navalny.
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Stocks To Watch
- Glenmark Pharmaceuticals: The wholly-owned subsidiary of the company, Glenmark Life Sciences, has filed a draft red herring prospectus with the SEBI for an initial public offer. The offer comprises a fresh issue of up to Rs 1,160 crore and an offer for sale of up to 73.05 lakh shares of Rs 2 each of Glenmark Life Sciences, by Glenmark Pharmaceutical. The IPO will be subject to market conditions, receipt of applicable approvals and other consideration.
- Kolte-Patil Developers: Collections rose 16.8% year-on-year at Rs 442 crore in the March quarter. Sales volume gained 27.1% YoY at 0.85 million sq. ft. Sales value up 42.7% YoY at Rs 511 crore. The Q4 FY21 collections are the highest-ever in the company’s three-decade history. A strong focus on sales, registrations, construction and CRM has enabled strong recovery in collections. Further, the company has signed three new projects with a combined saleable area of 2.2 MSF in Pune under capital-light models.
- Bharti Airtel: The Government of Ghana, Millicom International Cellular S.A. and Bharti Airtel have executed the definitive agreement for the transfer of ‘AirtelTigo’ to the Government of Ghana on a going concern basis. In the proposed agreement, the Government of Ghana will acquire 100% shares of AirtelTigo along with all customers, assets and liabilities. Airtel had already written off its investment and provided for it in the prior accounts. No further provisions of any material nature are envisaged.
- Coal India: Incorporated two wholly-owned subsidiaries, viz. CIL Solar PV for manufacturing of solar value chain and CIL Navikarniya Urja for renewable energy.
- NTPC: To issue unsecured non-convertible bonds of Rs 3,996 crore on April 20 through a private placement at a coupon of 6.87% per annum. The bonds will mature on April 21, 2036. The proceeds from the issue will be utilised for funding of capital expenditure, refinancing of existing loans and other general corporate purposes. The bonds are proposed to be listed on NSE.
- Grindwell Norton: SG Shinagawa Refractories India, a joint venture between Shinagawa Refractories, Japan, and Grindwell Norton, has commenced its commercial operation of tap hole clay refractory products for the steel industry.
- Future Enterprises: Defaults on Rs 28.79 crore interest due on non-convertible debentures.
- Wockhardt: The credit facilities committee of the board will meet on April 21 to consider fundraising through the issuance of non-convertible debentures.
- Listing alert: Macrotech Developers to make its trade debut after the IPO got subscribed 1.36 times. The Mumbai-based realty company’s Rs 2,500- crore issue had a price band of Rs 483-486 per share.
- Adani Green: Says unit wins bid for 150mw solar power project at INR2.22/KWH for 25 years; to be commissioned by 3Q FY23
- DCB Bank: Says Murali Natrajan reappointed CEO for another year
- ISGEC Heavy Engineering: Signed a project-specific collaboration pact with United Conveyor Corp., USA, for Dry Sorbent Injection technology
- Earnings to Watch: ACC, Bajaj Consumer, Crisil, ICICI Prudential
Earnings Post Market Hours
HDFC Bank Q4FY21
- Net profit up 18.17% at Rs 8,186.51 crore versus Rs 6,927.7 crore (Bloomberg Estimate: Rs 8,436 crore)
- NII up 12.6% at Rs 17,120 crore versus Rs 15,204 crore (Bloomberg Estimate: Rs 16,408.9 crore)
- GNPA at 1.32% versus 0.81% (QoQ)
- NNPA at 0.4% versus 0.09% (QoQ)
- Q3FY21 proforma GNPA: 1.38%, NNPA: 0.4%
- Approved one-time restructuring schemes for loans worth Rs 6,508.37 crore
- Floating provisions at Rs 1,451 crore and contingency provisions at Rs 5,861 crore
- Deposits up 16.3% at Rs 13.35 lakh crore
- Term deposits up 8.5% at Rs 7.19 lakh crore
- HDB Financial Services’ outstanding loans up 5.4% at Rs 58,947 crore
- Gross NPA ratio stood at 3.9% as compared with 5.9% in the December quarter
- Provisions and contingencies at Rs 613 crore
ICICI Lombard General Insurance Q4FY21
- Net profit rose 22.6% to Rs 345.68 crore versus Rs 282 crore year-on-year.
- Gross direct premium income up 9.4% to Rs 3,478 crore.
- The solvency ratio was 2.90 on March 31, 2021, as against 2.76 on December 31, 2020.
- The overall dividend for FY21 including the proposed final dividend is Rs 8 per share.
Mindtree Q4FY21 (Consolidated, QoQ)
- Revenue up 4.23% at Rs 2,109.3 crore versus Rs 2,023.7 crore (Bloomberg estimate: Rs 2,096.8 crore)
- Net profit down 2.82% at Rs 317.3 versus Rs 326.5 crore (Bloomberg estimate: 303.8 crore)
- Ebit down 1.24% at Rs 391.3 crore versus Rs 396.2 crore (Bloomberg estimate: Rs 380.7 crore)
- Ebit Margin at 18.60% Versus 19.60% (Bloomberg Estimate: 18.15%)
- U.S. dollar revenue up 5.2% at $288.2 million
- Has recommended a final dividend of Rs 17.5 per share for FY21 subject to shareholders' approval.
Den Networks Q4FY21 (Consolidated, YoY)
- Revenue flat at Rs 326.2 crore versus Rs 327.7 crore
- Net profit up 50% at Rs 36.9 crore versus Rs 24.6 crore
- Ebitda up 8% at Rs 64.87 crore versus Rs 60.1 crore
- Ebitda margins at 19.90% versus 18.30%
Pledge Share Details
- Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 2 lakh shares on April 15.
- JSW Energy: Promoters (JSW Investments and Indusglobe Multiventures) revoked pledge of 25.22 lakh shares on April 12.
As reported on April 16.
- Ex-date dividend: ABB India, Schaeffler India, Vesuvius India
- Ex-date final dividend and special dividend: Sanofi India
- Record-date stock split: Sharda Motor Industries
- Move into ASM framework: Adani Total Gas, NIIT, Adani Transmission, AGC Networks
- Move out of ASM framework: Hindustan Foods, Vakrangee, Share India Securities, Geojit Financial Services
- Move out of short-term ASM framework: JSW Ispat Special Products, MPS, Jubilant Ingrevia
Money Market Update
The rupee ended at 74.35 against the U.S. dollar on Friday as compared to Thursday's closing of 74.91. It was the fourth-best performer in Asia. The currency only traded for three sessions this week.
- Nifty April futures ended at 14,624; premium of 6.4 points.
- Nifty April futures added 6.8% and 9,992 shares in Open Interest
- Nifty Bank April futures ended at 32,023; premium of 45.5 points
- Nifty Bank April futures shed 2.55% and 1,928 shares in Open Interest
- Stocks in F&O ban: SAIL and Sun TV