All You Need To Know Going Into Trade On April 22
A vendor carries tea to workers at a wholesale market in Patna, Bihar. (Photographer: Anindito Mukherjee/Bloomberg)

All You Need To Know Going Into Trade On April 22

Asia stocks bounced after U.S. equities snapped a two-day drop on a rally in companies that stand to benefit the most from an economic revival. The dollar and Treasuries stabilised.

Japan outperformed, while Australia and South Korea had more modest gains. U.S. futures edged lower. Earlier, most major groups in the S&P 500 rose, with raw-material, energy and financial shares leading the charge.

Oil added to losses with an increase in U.S. crude inventories compounding concerns around a choppy global demand recovery. Traders are sifting through corporate results for signs on whether an anticipated jump in profits would bring with its forecasts for stronger growth.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rises 0.7% to 14,188, as of 7 a.m.

Here are some key events to watch this week:

  • European Central Bank rate decision and President Christine Lagarde briefing on Thursday.
  • U.S. releases new home sales data Friday.

Also read: Coronavirus Surge Spills Over Into World’s Financial Markets

All You Need To Know Going Into Trade On April 22

Stocks To Watch

  • Hero MotoCorp: To temporarily suspend manufacturing at all plants due to the rapid rise in coronavirus cases in the country. Each plant to remain shut for four days in a staggered manner between April 22 and May 1. Company to utilise the shut-down days to carry out necessary maintenance work in the manufacturing plant. Shutdown to not impact its ability to meet the demand, which has been impacted due to localised shut-downs in many states. Production loss to be compensated during the remainder of the quarter. All plants to resume normal operations post the short shutdown period. Further, the company has partnered with Gogoro Inc. to accelerate the shift to sustainable electric mobility in India. The companies will establish a battery swapping joint venture and will collaborate on electric vehicle development to bring Hero-branded, powered by Gogoro Network vehicles to market.
  • Indiabulls Housing Finance has entered into a co-lending arrangement with HDFC Ltd. Indiabulls Housing Finance will originate retail loans through a jointly drawn up credit policy. It will retain 20% of the loans and 80% will be on HDFC's balance sheet. The arrangement is part of Indiabulls Housing Finance's balance sheet light growth model.
  • KEC International: Has secured new orders of Rs 1,245 crore across its various businesses. The company has secured orders of Rs 629 crore for Transmission & Distribution projects and the railways business has secured orders of Rs 446 crore. The company has also secured orders of Rs 107 crore for infra works and of Rs 63 crore for various types of cables. With these orders, the company's total order inflow for FY21 stands at Rs 11,876 crore.
  • SBI: IRDAI has imposed a penalty of Rs 25 lakh on SBI General lnsurance Co.--an unlisted subsidiary of State Bank of India--for non-compliance with minimum obligations under Motor Third-Party Business as specified in IRDA regulation 2015. The penalty has been imposed for violation of Section 32D of lnsurance Act, 1938.
  • Federal Bank: Has appointed Damodaran C as Chief Risk Officer for a period of three years effective May 1, 2021. Damodaran will replace Wilson Cyriac, who would be retiring from the services of the bank on April 30, 2021.
  • Dilip Buildcon: Board has approved the opening of QIP of equity shares of the face value of Rs 10 on April 20. The floor price of Rs 568.41 per equity share is at a 4.48% discount to Tuesday's closing price.
  • Lupin: Has incorporated a wholly-owned subsidiary in the USA under the name Lupin Oncology Inc. This wholly-owned subsidiary will be engaged in the development/co-development and commercialisation of multiple oncology products globally.
  • No Nifty Earnings
  • Non-Nifty Earnings: Cyient, Fineotex Chemical, Filatex India, Indus Towers, Rallis India, Tata Elxsi

Also read: Central Bank Faces Key Auction as India’s Traders Balk at Yields

Earnings Post Market Hours

Nestle India Q1CY21 (YoY)

  • Revenue up 9% at Rs 3,610.8 crore Vs Rs 3,325.2 crore (Bloomberg Estimate: Rs 3,636.5 crore)
  • Net profit up 15% at Rs 602.2 crore Vs Rs 525.4 crore (Bloomberg Estimate: Rs 577.1 crore)
  • Ebitda up 17% at Rs 929.80 crore Vs 793.2 crore (Bloomberg Estimate: Rs 902.6 crore)
  • Ebitda Margins at 25.8% Vs 23.9%

Tata Steel Long Products Q4FY21 (Consolidated, YoY)

  • Revenue up 53% at Rs 1,546.74 crore Vs Rs 1,008.3 crore
  • Net profit of Rs 339.86 crore from Net loss of Rs 133.23 crore
  • Ebitda at Rs 497.82 crore Vs Rs 136.08 crore
  • Ebitda margin at 32.2% Vs 13.5%
  • Has recommended a dividend of Rs 5 per share for FY21

Tata Steel BSL Q4FY21 (Consolidated, YoY)

  • Revenue up 71% to Rs 7,321.09 crore Vs Rs 4,273.66 crore
  • Ebitda up 234% at Rs 2,569.45 crore Vs Rs 769.98 crore
  • Ebitda Margins at 35.1% vs 18%
  • Net Profit at Rs 1,913.35 crore Vs Rs 5.93 crore

ICICI Securities Q4FY21 (Consolidated, YoY)

  • Revenue up 54% at Rs 739.3 crore Vs Rs 480.4 crore
  • Net profit up 111% at Rs 329.4 crore Vs Rs 155.8 crore
  • Equities and allied revenue up 46% at Rs 482 crore
  • Cost to Income Ratio down to 40%
  • Overall active clients up 29% at 1.91 million
  • Private Wealth Management revenue up 82% to Rs 158 crore
  • Wealth AUM up 102% at Rs 1.7 lakh crore
  • Highest ever addition of clients in a quarter at 3.5 lakh
  • Recommended a final dividend of Rs 13.50 per share
  • Distribution revenue up 22% at Rs 141 crore

5Paisa Capital Q4FY21 (Consolidated, YoY)

  • Revenue 40% to Rs 49.53 crore Vs Rs 35.40 crore
  • Net profit of Rs 5.85 crore Vs Net loss of Rs 1.70 crore
  • Ebitda at Rs 12.63 crore Vs Rs 3.89 crore
  • Ebitda Margins 25.5% Vs 11%
  • On-boarded more than 2 lakh new clients during the quarter
  • Total number of registered customers now at 13.5 lakh.

Pledge Share Details

  • Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 5.38 lakh shares on April 19.
  • Adani Ports And Special Economic Zone: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 1.20 lakh shares on April 19.
  • Adani Transmission: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 2.40 lakh shares on April 19.
  • Granules India: Promoter Krishna Chigurupati revoked pledge of 17.93 lakh shares on April 19.

As reported on April 20.

Trading Tweaks

  • Ex-Date Interim Dividend: Muthoot Finance
  • Ex-Date Final Dividend: Castrol India
  • Price Band Revised From 10% To 5%: Mukand, Suvidhaa Infoserve
  • Price Band Revised From 20% To 10%: 5Paisa Capital, Everest Kanto Cylinder
  • Move Into ASM Framework: Dalmia Bharat Sugar and Industries, NCC
  • Move Out Of Short-Term ASM Framework: Orient Refractories, OnMobile Global, Nalwa Sons Investments, Aarti Surfactants, Maithan Alloys, Kirloskar Brothers

Money Market Update

  • A slide in the rupee is exacerbating a slump in Indian corporate dollar notes that are now among the worst performers in Asia, just as concerns mount that companies are hedging less.
  • The weaker rupee pushes up servicing costs on foreign debt. The currency has plunged about 2.4% against the dollar this month, making it Asia’s worst-performer.

Also read: Rupee Fall Is Hurting Bonds Now Among Asia’s Worst: India Credit

F&O Cues

  • Nifty April futures ended at 14,290; discount of 6 points.
  • Nifty April futures added 0.61% and 884 shares in Open Interest
  • Nifty Bank April futures ended at 31,115; premium of 2.75 points
  • Nifty Bank April futures added 2.66% and 1,707 shares in Open Interest
  • Stocks in F&O ban: SAIL and Sun TV
All You Need To Know Going Into Trade On April 22
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