All You Need To Know Going Into Trade On April 23
Asian markets have opened with modest gains on Thursday, tracking a positive close on Wall Street amid signs that the Covid-19 outbreak is easing.
House lawmakers in the U.S. are set to pass another round of aid to cushion the economy from the pandemic's impact. Treasuries are little changed while the U.S. Dollar edges higher.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.6 percent to 9,219 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’s a look at all that can influence equities in today’s trading session:
- Markets in Japan, South Korea and Australia are trading with modest gains in early trade.
- Futures on the S&P 500 have dipped lower after the benchmark rebounded from its biggest one-day fall in three weeks.
- U.S. President Donald Trump ordered to destroy any Iranian gun boats that harass American ships at sea.
- Treasury Secretary Steven Mnuchin says that he expects most of the U.S. economy to restart by the end of August.
- Yield on the 10-year treasury was flat at 0.61 percent.
- West Texas Intermediate Crude expiring in June was up for the second day after a historic tumble earlier in the week. The contract rose 4.6 percent to $14.4 per barrel.
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Stocks To Watch
- Yes Bank: Seeks shareholder approval to raise an additional Rs 5,000 crore via issuance of equity or other convertible securities. This is in addition to Rs 10,000 crore approved by shareholders on February 7 through a rights issue. Bank said that the capital raise will help in maintaining sufficient cushion in excess of the minimum regulatory requirements and a strong CET 1 capital base.
- Vodafone Idea: Vodafone Group says that it has accelerated payment of $200 million to the company, providing liquidity to manage its operations. Payment was due in September 2020 under terms of the contingent liability mechanism. Vodafone Group's potential exposure under this mechanism is Rs 8,400 crore. Vodafone Idea has total AGR dues of Rs 58,254 crore.
- KNR Constructions: SPVs have re-commenced the collection of user fee (toll) on all the NHAl projects.
- Lupin: Solosec oral granules have received preferred coverage effective immediately on the Express Scripts National Preferred, Flex, and Basic commercial formularies, as per a Bloomberg News report.
- MCX: The April 22 pay-in and payout, including the settlement of April 20 Crude Oil contract, has been completed and a payout of Rs 242.32 crore has been made to clearing members of MCXCLL.
- Future Retail: S&P Global Ratings lowered its preliminary long-term issuer credit rating on the company's $500 million senior secured notes to 'CCC-' from 'B-'. The ratings remain on CreditWatch with negative implications. The company faces increasing pressure to meet upcoming debt obligations given its stressed liquidity position, exacerbated by the extended lockdown in India due to Covid-19, the statement said.
- Star Cement: Plant at Assam has partially become operational.
- Kirloskar Electric: Manufacturing unit at Hubli has resumed operations.
- Orient Paper and Industries: Production of tissue papers and chlorine is continuing. Writing and paper output are forced to be limited, as operations commenced from April 17.
- Kirloskar Oil Engines: Main plant in Maharashtra has become partially operational from April 22.
- HDFC Life Insurance: To consider raising funds via NCDs on April 27.
- Jagran Prakashan: Board approved raising Rs 150 crore via NCDs on a private placement basis.
- Deepak Nitrite: Partially commenced operations at its Hyderabad plant. All manufacturing facilities have commenced operations now. Company’s arm Deepak Phenolics has commenced commercial production of Isopropyl alcohol from April 21. Isopropyl alcohol is a solvent and majorly used by pharma companies and is also used for manufacturing sanitisers.
- Lumax Auto Technologies: Resumed partial manufacturing operations.
- Welspun Enterprises: Commences limited operations in seven states.
- Welspun Corp: Partially resumed operations at its pipe facility in Madhya Pradesh.
- Tanla Soutions: Board approved buyback of 1.9 crore shares (12.49 percent) at Rs 81 per share aggregating to Rs 154 crore. Buyback price is at a premium of 28 percent to closing price as on April 22.
- Sundaram-Clayton: To consider issuance of NCDs on April 30.
- TVS Motor: To consider issuance of NCDs on April 28.
- Non-Nifty Earnings Today: Alembic Pharma, Hathway Cable & Datacom, Mahindra CIE, Network18 Media, TV18 Broadcast.
Earnings Estimates: Bharti Infratel Q4FY20
- Revenue seen 1 percent lower at Rs 3,638 crore
- Ebitda seen 2 percent lower at Rs 1,841 crore
- Ebitda Margin seen at 50.6 percent from 51.1 percent
- Net profit seen 1 percent lower at Rs 791 crore
- Tenancy ratio seen flat at 1.85x
- Will continue to get Rs 90 crore as revenue from tenancy cancellations
- All estimates are BloombergQuint estimates, consolidated and compared on a sequential basis
Key Factors To Watch For Bharti Infratel:
- Commentary on trends in gross tenancy additions and exits
- Update on merger with Indus Towers
- Dividend strategy due to implications of AGR case
- Change in Dividend Distribution Tax regime
Morgan Stanley On Kotak Mahindra Bank
- Overweight rating maintained
- Price target of Rs 1,680
- Issuance of 6.5 crore shares implies Rs 7,300 crore fund raise as per Wednesday's closing price
- Execution of fund raise would mean dilution of 3.4 percent
- FY21 book value per share would increase by 10 percent
- FY20 proforma tier-1 ratio would improve by 290 basis points
- Capital raise to further improve balance sheet strength
Goldman Sachs On Titan
- Downgrade to sell from neutral
- Price target cut to Rs 738 from Rs 803
- Demand outlook losing its shine
- See significant impact on earnings as GDP growth slows
- Discretionary categories likely to be hit due to slowdown
Investec On Maruti Suzuki
- Hold rating maintained
- Price target cut to Rs 4,650 from Rs 5,000
- Uncertainty weighs on earnings and valuations
- Large proportion of target customers may differ discretionary spends
- Changing preference towards UVs and rise in credible competition may weigh
- Zee Enterprises: Florida Retirement System acquired 51.09 lakh shares (0.53 percent) at Rs 141.29 per share.
- Endurance Technologies: Smallcap World Fund sold 33.95 lakh shares (2.41 percent) at Rs 566.66 per share
Pledged Share Details
- Sun Pharma: Promoters released pledge of 2.52 crore shares between April 20-21
- Adani Ports & SEZ: Promoter SB Adani Family Trust revoked pledge of 37.5 lakh shares on April 21
(As Reported On April 22)
Who’s Meeting Whom
- Mahindra & Mahindra to meet TrustPlutus Family Office and Capital Research Global Investors from April 23-24
- Tata Steel to meet T.Rowe Price on April 23
- Price Band Revised From 10 Percent To 5 Percent: Eros International, HT Media, Network18 Media & Investments, Pricol, Reliance Capital, TRF, Walchandnagar Industries, Zuari Agro Chemicals, NELCO, Premier Explosives.
- Moves Into ASM Framework: Xelpmoc Design And Tech, LGB Forge.
- Moves Into Short-Term ASM Framework: Jay Bharat Maruti, GMM Pfaudler, Aavas Financiers, AXISCADES Engineering Technologies, Welspun Enterprises, Mahindra Logistics, JBM Auto, GHCL, Suzlon Energy.
- Move Out Of Short-Term ASM Framework: Excel Industries, Capri Global Capital, IOL Chemicals and Pharmaceuticals, Apex Frozen Foods.
Money Market Update
- The rupee strengthened after hitting a record low of 76.90 against the U.S. Dollar, ending at 76.66 as compared to Tuesday's close of 76.84. The currency snapped a two-day losing streak.
- Nifty April futures closed at 9,200; a premium of 13 points versus a discount of 10 points
- Nifty April futures shed 1.6 percent in Open Interest and 1.6 lakh shares
- Nifty Bank April futures closed at 19,677; a discount of 30 points versus 75 points
- Nifty Bank April futures shed 2.8 percent in Open Interest and add 34,000 shares
- Nifty Put-Call Ratio at 1.37 versus 1.21 across all series
Nifty weekly Expiry: April 23
- Maximum Open Interest on Call side at 9,500 strike (12.5 lakh shares)
- Maximum Open Interest on Put side at 9,000 strike (18 lakh shares)
- Open Interest additions seen in 9,000 Put (9 lakh shares) and 9,200 Call (5.5 lakh shares)
Nifty Monthly Expiry: April 30
- Maximum Open Interest on Call side at 10,000 strike (18 lakh shares)
- Maximum Open Interest on Put side at 9,000 strike (26 lakh shares)