All You Need To Know Going Into Trade On April 23
Asia stocks weakened following broad-based declines in U.S. benchmarks as investors mulled a proposal for higher taxes on the wealthy to help pay for U.S. President Joe Biden’s social plan.
Indices opened lower in Japan, South Korea and Australia. U.S. contracts edged up after the steepest decline in five weeks for the S&P 500 Index. India’s SGX Nifty 50 Index futures for April delivery fell 0.5% to 14,336.50, while MSCI Asia Pacific Index little changed.
Speculation arose that traders may sell shares preemptively as Bloomberg News reported the Biden administration is considering raising the tax on capital gains to 39.6% for those earning more than $1 million a year.
Treasury yields and the dollar were steady in Asia’s morning. Markets are also whipsawing on worsening news about the spread of Covid-19 in parts of the world and a mixed batch of earnings reports.
Markets were little moved overnight by a further assurance from European Central Bank President Christine Lagarde that the institution isn’t discussing any pullback in its emergency bond-buying program even as economic data improve.
The U.S. releases new home sales data later on Friday.
Stocks To Watch
- Tata Motors: Jaguar Land Rover Automotive Plc to suspend production at Castle Bromwich and Halewood factories in the U.K.--for a limited period from April 26--due to Covid-19 pandemic-related supply chain disruptions, which have resulted in a shortage of semiconductors. Manufacturing will continue at the Solihull plant.
- Wipro: Has pledged to achieve Net-Zero Greenhouse Gas emissions by 2040 in line with the objective of the Paris Agreement to cap temperature rise to 1.5°C. It has also set an intermediate target of a 55% reduction in GHG emissions by 2030 in absolute emission levels compared to its base year of 2016-17 (April-March).
- Torrent Power: Has been awarded a long-term Power Purchase Arrangement for 300 MW capacity of Solar Power Generation. The project will be set up in Gujarat at an estimated cost of Rs 1,250 crore. It is expected to be commissioned within 18 months from the PPA date. The PPA term is 25 years from the scheduled commercial operation date.
- India Grid Trust: Board has approved the public issue of secured, listed NCDs of the face of Rs 1,000 each for an amount up to Rs 100 crore with an option to retain oversubscription of up to Rs 900 crore aggregating up to Rs 1,000 crore. The issue will open on April 28 and close on May 5.
- Angel Broking: Board has appointed Narayan Gangadhar as the Chief Executive Officer effective April 26. It has also declared a third interim dividend for FY21 at the rate of Rs 7.50 per share.
- Dhanlaxmi Bank: Board to discuss augmentation of the paid-up capital by issue of equity shares on a rights basis on April 29.
- Bharat Petroleum: India says stake sale, reforms on track amid local lockdowns
- Dish TV India: Essel Group denies rumours on release and sale of Dish TV Shares
- Gland Pharma: Gets U.S. FDA approval for Foscarnet Sodium injection
- IndiGo: GECAS to purchase, leaseback 14 Airbus Neo aircraft from IndiGo
- Nazara Tech: To hike stake in absolute sports to 65.3%; approves fundraising by unit Halaplay Technologies
- Nifty Earnings: HCL Technologies
- Non-Nifty Earnings: GNA Axles, M&M Financial Services, Wendt (India)
Earnings Post Market Hours
Tata Elxsi Q4FY21 (QoQ)
- Revenue up 9% at Rs 518.39 crore Vs Rs 477.09 crore
- Net profit up 9% at Rs 115.16 crore Vs Rs 105.2 crore
- Ebitda up 17% at Rs 168.03 crore Vs Rs 143.6 crore
- Ebitda margin at 32.4% from 30.1%
- Has recommended a final dividend of Rs 24 per share for FY21 and a one-time special dividend of Rs Rs 24 per share
- The growth was led by America and India with both reporting 21.1% growth while Europe grew by 1.6%
- To appoint Gaurav Bajaj as Chief Financial Officer from August 1, 2021. Bajaj will replace Muralidharan HV who will retire from the position on July 31, 2021
Cyient Q4FY21 (Consolidated, QoQ)
- Revenue up 5% at Rs 1,093.1 crore Vs Rs 1,044.3 crore (Bloomberg Estimate: Rs 1,078.7 crore)
- Net Profit up 8% at Rs 103.10 crore Vs Rs 95.40 crore (Bloomberg Estimate: Rs 105.4 crore)
- Ebit down 8% at Rs 105.50 crore Vs Rs 115 crore (Bloomberg Estimate: Rs 132.8 crore)
- Ebitda Margins at 9.7% Vs 11%
- Recommended final dividend of Rs 17 per share for FY21
Pledge Share Detail
- Adani Green Energy: Promoter Group (Gautam Adani and Rajesh Adani) revoked the pledge of 1,000 shares on April 20.
- Jindal Stainless: Cohesion MK Best Ideas Sub-Trust bought 30 lakh shares (0.62%) at Rs 75.55 per share. Kotak Special Situations Fund sold 75 lakh shares (1.54%) at Rs 75.59 per share.
- Apollo Pipes: Ruby Multimedia bought 71,000 shares (0.54%) at Rs 1,015.71 per share.
- Record Date Interim Dividend: Muthoot Finance
- Price Band Revised From 20% To 10%: Kopran, Morepen Laboratories, Supreme Petrochem
- Move Into Short-Term ASM Framework: Emami Paper Mills, Dishman Carbogen Amcis, RattanIndia Enterprises, MPS
- Move Out Of Short-Term ASM Framework: Renaissance Global, Nureca
- Move Into ASM Framework: Orchid Pharma
Money Market Update
The rupee ended at 74.96 against the U.S. dollar on Thursday as compared to Tuesday's closing of 74.87.
- Indian sovereign bond traders will assess the minutes of the central bank’s April meeting which focused on growth recovery and demand at a Rs 32,000-crore ($4.3 billion) bond auction later on Friday.
- An absence of any announcement so far on RBI’s bond purchases for the next week may weigh on sentiment.
- Nifty April futures ended at 14,405.30; discount of 0.8 points.
- Nifty April futures shed -4.41 and 6,472 shares in Open Interest
- Nifty Bank April futures ended at 31,725.60; discount of 57 points
- Nifty Bank April futures added 5.77% and 3,807 shares in Open Interest
- Securities added in ban list: Indiabulls Housing
- Securities that continue to be on ban list: Steel Authority, Sun TV