All You Need To Know Going Into Trade On April 22
A pedestrian walks along a near deserted road during a lockdown imposed due to the coronavirus in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg)

All You Need To Know Going Into Trade On April 22

Sentiment across Asian markets remains risk-off after Wall Street benchmarks plunged over 3 percent overnight. Companies continue to struggle to provide and outlook while energy markets remain highly volatile.

Crude oil prices have surged after falling by over 50 percent in two sessions. Futures for the June contract rose as much as 20 percent.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.7 percent to 8,900 as of 7:00 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here is a look at all that can influence equities in today’s trading session:

  • Markets in Australia, South Korea and Japan have opened with losses, although they are shallower than those seen in the U.S.
  • Futures on the S&P 500 are little changed after the benchmark ended lower by over 3 percent - the second straight day of losses.
  • U.S. President Donald Trump said that his administration is working on a plan to make money available to the oil industry to prevent the loss of jobs after the prices crashed.
  • Netflix rose after the company said that it added nearly twice as many subscribers as predicted in the first quarter. However, other companies are facing steep declines in profit with no insight into the remainder of the year.
  • Yield on the 10-year treasury was steady at 0.58 percent.
  • West Texas Intermediate Crude for the June contract rose 20 percent to $13.93 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On April 22

Stocks To Watch

  • Reliance Industries: Facebook says it plans to invest $5.7 billion or Rs 43,574 crore in Jio Platforms Ltd. The investment will make Facebook its largest minority shareholder.
  • HDFC: Reduced its retail prime lending rate on housing loans , on which its adjustable rate home loans are benchmarked, by 15 points, with effect from April 22. Change to benefit all existing HDFC retail home loan customers. The company also seeks to raise up to Rs 5,000 crore via NCDs.
  • Vodafone Idea: Paid Rs 1,367 crore to the government towards license fee, spectrum usage charges for the January-March quarter, as per a PTI report.
  • Nestle India: All the manufacturing locations have received permission to operate and are now operating at scaled-down levels. Most of the distribution centers, warehouses, suppliers are also operating at scaled-down levels.
  • Federal Bank: The private lender in its March quarter update has reported a 11 percent growth in advances to Rs 1.24 lakh crore while deposits have grown 13 percent to Rs 1.52 lakh crore on a year-on-year basis. The lender's Liquidity Coverage Ratio stood at 195.01 percent as of March 31. CASA deposits rose 7 percent year-on-year to Rs 46,451 crore. The bank has also approved purchase of an additional 4 percent stake in IDBI Federal Life Insurance from IDBI Bank subject to price finalisation and all other approvals. Post-purchase, the total stake will rise up to 30 percent.
  • HDFC AMC: Settled Fixed Maturity Plans investment case in debt instruments of Essel Group, with SEBI for Rs 4.2 crore.
  • Indian Oil Corporation: LPG sale between April 1-20 was 696.6 thousand metric tonnes, a growth of 19.6 percent over the same period last year. 420 of its 423 supply & distribution locations, including bulk storage terminals & depots, LPG bottling plants, aviation fuel stations, lube blending plants, etc., are functioning with optimized manpower.
  • Adani Power: To be excluded from the F&O segment from June 26
  • SBI Life Insurance: To be included in the F&O segment from May 4.
  • CG Consumer Electricals: Partially resumed operations at Goa and Vadodara plants.
  • ITD Cementation: Partially recommenced operations at some of its locations.
  • Orient Cement: In the process of partially resuming operation at plants in Karnataka and Maharashtra. The company’s plant Telangana plant continues to be under lockdown.
  • Jyothy Labs: Launched hand sanitiser as a product.
  • Kalpataru Power Transmission: Majority of the company’s international project sites have been operating at either full or partial capacities. Company has applied for the resumption of operations at its Gandhinagar and Raipur manufacturing plants.
  • Welspun Corp: Partially resumed production and also dispatch of finished goods to ports and customers from pipe facilities at its Dahej plant.
  • Cupid: To temporarily shut down is production activities from April 21.
  • DCM Shriram: Sugar and fertilizer businesses are operating at full capacity. Company’s caustic soda and bio seed units are also currently operational.

Earnings Announced Post Market Hours

ACC Q1CY20

  • Revenue down 10.6 percent to Rs 3,501.71 crore
  • Net profit down 5.5 percent to Rs 319.94 crore
  • Ebitda up 10.3 percent to Rs 585.85 crore
  • Ebitda Margin at 16.7 percent from 13.5 percent
  • Volume growth down 12 percent to 6.6 MT
  • Lower raw material costs and other expenses aid margins
  • All numbers are standalone and compared on a year-on-year basis.

Tejas Networks Q4FY20

  • Revenue down 80 percent to Rs 54.6 crore
  • Net loss of Rs 126.53 crore from Net profit of Rs 35.9 crore
  • Ebitda loss of Rs 118.04 crore from Ebitda gain of Rs 52.72 crore
  • Impairment of non-current assets at Rs 69.9 crore in current quarter
  • Weak revenue because of operational challenges and inability to ship confirmed customer orders due to lockdown
  • All numbers are consolidated and compared on a year-on-year basis

Den Networks Q4FY20

  • Revenue up 20.1 percent to Rs 328 crore
  • Net profit of Rs 24.7 crore from Net loss of Rs 186.4 crore
  • Ebitda up 73.2 percent to Rs 64.1 crore
  • Ebitda Margin at 19.5 percent from 13.6 percent
  • Exceptional loss of Rs 211 crore in base quarter
  • Margins improved due to lower placement fees and lower finance costs
  • All numbers are consolidated and compared on a year-on-year basis

GTPL Hathway Q4FY20

  • Revenue up 2 times to Rs 655.7 crore
  • Net loss narrows to Rs 13.6 crore from Rs 27.7 crore
  • Ebitda up 47.2 percent to Rs 113.8 crore
  • Ebitda Margin at 17.4 percent from 24 percent
  • Numbers are not comparable due to absence of EPC Project in the base quarter
  • Cable TV business revenue up 49 percent to Rs 427.4 crore
  • Internet service revenue up 29 percent to Rs 46.3 crore
  • Impairment of trade receivables at Rs 68 crore for current quarter due to TRAI regulations
  • All numbers are consolidated and compared on a year-on-year basis

Bulk Deals

  • Shriram Transport Finance: MFS International Equity Fund sold 12.48 lakh shares (0.55 percent) at Rs 606.65 per share

Pledged Share Details

  • Motherson Sumi Systems: Promoter Samwardhana Motherson revoked pledge of 50 lakh shares on April 17.
  • Emami: Promoters created pledge of 1 crore shares on April 15
  • Zee Learn: Promoter Jayneer Infrapower and Multiventures revoked pledge of 2.54 lakh shares on April 17.
  • Embassy Office Parks REIT: Promoter Embassy Property Developments released pledge of 4 lakh units on April 21.

(As Reported On April 21)

Who’s Meeting Whom

  • Great Eastern Shipping to meet ICICI Prudential MF on April 22
  • Affle to meet Franklin Templeton and Karst Peak Capital on April 22

Trading Tweaks

  • Price Band Revised To 5 Percent From 10 Percent: Bombay Rayon Fashions, Bharat Road Network
  • Price Band Revised To 10 Percent From 20 Percent: HT Media, IFB Industries, SPARC, UCO Bank
  • Move Into ASM Framework: V2 Retail, Khadim, TCI Finance, Kridhan Infra, Jain Irrigation, Birla Tyres
  • Move Into Short-Term ASM Framework: GNA Axles, IFB Industries, Dhanlaxmi Bank, Venky's, Alphageo, Sundram Fasteners, Sanghvi Movers, Tilaknagar Industries, Everest Kant, Seamec, HSIL, Balaji Telefilms, IG Petrochemicals, Dishman Carbogen Amcis, Indoco Remedies
  • Move Out Of Short-Term ASM Framework: PI Industries, RPG Life, Solara Active, IIFL Securities, SMS Pharma, GVK Power, Neuland Labs, Gufic Biosciences, Dhanuka Agritech.

Money Market Update

  • The rupee ended near its record low at 76.84 against the U.S. Dollar as compared to Monday's close of 76.55. The record low for the currency is 76.86.

F&O Cues

  • Nifty April futures closed at 8,971.6; a discount of 9.8 points versus 1.3 points
  • Nifty April futures add 2 percent in Open Interest and 1.6 lakh shares
  • Nifty Bank April futures closed at 19,333.8; a discount of 75 points versus 40 points
  • Nifty Bank April futures add 18 percent in Open Interest and 1.9 lakh shares
  • Nifty Put-Call Ratio at 1.21 Vs 1.36 across all series

Nifty Weekly Expiry: April 23

  • Maximum Open Interest on Call side at 9,500 strike (13.6 lakh shares)
  • Maximum Open Interest on Put side at 8,000 strike (10.7 lakh shares)
  • Open Interest addition seen in 9,100 Call (10.6 lakh shares), 9,000 Call (7 lakh shares) and 9,200 Call (6 lakh shares)

Nifty Monthly Expiry: April 30

  • Maximum Open Interest on Call side at 10,000 strike (19.1 lakh shares)
  • Maximum Open Interest on Put side at 8,000 strike (23.4 lakh shares)
All You Need To Know Going Into Trade On April 22
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