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All You Need To Know Going Into Trade On April 24
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
24 Apr 2020, 07:16 AM IST 
Platforms stands empty at Copenhagen Central Station in Copenhagen, Denmark (Photographer: Carsten Snejbjerg/Bloomberg)
Asian equities have slipped on Friday morning after their counterparts on Wall Street gave up sessions gains to end little changed. Investors continue to weigh the signs of progress in the fight against Covid-19 and the resultant impact on economies.
Treasuries continue to hold overnight gains while the U.S. Dollar is little changed. The rebound in oil prices continues.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 9,204 as of 6:50 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 session:
- Markets in Japan and South Korea are declining while those in Australia are fluctuating between gains and losses.
- Futures on the S&P 500 are lower after the index gave up gains of as much as 1.6 percent on Thursday to end little changed.
- Gilead Sciences antiviral drug Remdesivir flopped in its first randomised clinical trial as per a Financial Times report that cited draft documents accidently published by the World Health Organisation.
- Total job losses in the U.S. now stand at 26 million in the wake of the economic shutdown due to Covid-19.
- ECB President Christine Lagarde told leaders of the European Union that they have done too little, too late to contain the pandemic.
- The Bank of Japan may replace its government bond-purchase target to allow unlimited buying, as per a Nikkei report.
- West Texas Intermediate Crude is up 5.2 percent to $17.31 per barrel.
Get your daily fix of the global markets here.
Earnings Fineprint: Bharti Infratel Q4FY20
- Revenue down 1.3 percent to Rs 3,624.4 crore
- Net Profit down 18.7 percent to Rs 649.5 crore
- Ebitda down 9.5 percent at Rs 1,699 crore
- Ebitda Margins down to 46.9 percent from 51.1 percent
- Tenancy ratio declined to 1.84 times from 1.85 times
- Ebitda falls most since listing while net profit falls most in the last 13 quarters due to higher other expenses
- Other expenses up 2.5 times to Rs 289 crore from Rs 118 crore
- Provisions for bad debts led to rise in other expenses
- Failed to receive payments due from currently operational telecom players
- Extends Long Stop date on merger with Indus Towers till June 24
- Company says had no significant impact of Covid-19 on the financial position and performance
- All numbers are consolidated and compared on a sequential basis
Brokerages On Bharti Infratel
CLSA
- Buy rating maintained
- Price target raised to Rs 207 from Rs 195
- Q4 results meet estimates
- Cost and margin pressures remain
- High provisions for delayed payments led to jump in other costs
- Tenancy and tower additions pick-up
UBS
- Neutral rating maintained
- Price target of Rs 180
- Q4 results were weak
- Revenue misses estimates and margins under pressure
- Tenancy ratios continue to decline
- Outlook for medium-term remains uncertain
Morgan Stanley
- Underweight rating maintained
- Price target of Rs 175
- Results were weak in Q4
- Gross tenancy additions higher with higher tenancy churn sequentially
- Impact of past tenancy deletions and higher other opex led to pressure on Ebitda
Stocks To Watch
- Tata Motors: Jaguar Land Rover plans to gradually resume output from May 18. The company plans to re-open its plants at Solihull, Nitra, Graz and Wolverhampton, as per a Bloomberg News report.
- Axis Bank: To consider raising funds via debt on April 28.
- L&T: Allotted NCDs worth Rs 3,800 crore.
- Mahindra and Mahindra: Board approved issuing of NCDs worth Rs 10,000 crore.
- Sunteck Realty: CARE Ratings has revised the outlook for long-term banking facilities worth Rs 1,049 crore from stable to negative reflecting expected moderation in the credit risk profile of entities involved in the real estate development owing to the ongoing lockdown.
- Ashok Leyland: Increased its stake by 3.36 percent to 68.81 percent in its arm Hinduja Leyland Finance.
- Goa Carbon: Resumes operations at its Paradeep unit in Odisha.
- Monte Carlo Fashions: Resumed partial operations at its Ludhiana plant.
- Indian Hotels: Approved allotment of NCDs worth Rs 150 crore via private placement to Axis Bank.
- Schaeffler India: Partially resumed operations and restarted its Savli plant. Plant at Maneja, Talegaon and Hosur to observe extended closure till May 3.
- HIL: To consider starting manufacturing operations in four states, after receiving approval from authorities.
- Reliance Communications: Committee of Creditors to meet on April 24
- Mindtree: To report fourth quarter earnings today.
Other Earnings After Market Hours
Hathway Cable & Datacom Q4FY20
- Revenue up 19.6 percent to Rs 455.7 crore
- Net profit up 7.3 times to Rs 48.8 crore
- Ebitda up 43.8 percent to Rs 120.4 crore
- Ebitda Margins rise to 26.4 percent from 22 percent
- Other Income up 43 percent to Rs 58.9 crore
- Numbers impacted by TRAI order
- All numbers are consolidated and compared on a year-on-year basis
Mahindra CIE Automotive Q1CY20
- Revenue down 23.5 percent to Rs 1,663 crore
- Net profit down 86.4 percent to Rs 21 crore
- Ebitda down 35.5 percent to Rs 182 crore
- Ebitda Margins fall to 10.9 percent from 13 percent
- All numbers are consolidated and compared on a year-on-year basis
Brokerage Radar
Jefferies On Havells India
- Buy rating maintained
- Price target of Rs 600
- Near-term demand can be impacted
- Medium-term catalysts remain robust
- Key Positives: Varied products, strong brand equity and market share, new launches, multi-channel distribution, cash on books and strong return ratios
- Lloyd is amidst a revamp with many corrective steps
HSBC On L&T
- Buy rating maintained
- Price target of Rs 1,000
- Order win momentum remains strong
- Coping well with Covid-19 on order inflows, collections
- Situation likely to normalise by Q2FY21
HSBC On Grasim
- Downgrade to hold from buy
- Price target cut to Rs 550 from Rs 780
- Covid-19 has already deteriorated already weak fundamentals for VSF and caustic business
- Lack of catalysts likely to keep conglomerate discount at elevated levels
- Slash standalone Ebitda as volumes and price estimates are cut
Haitong On Can Fin Homes
- Buy rating maintained
- Price target cut to Rs 420 from Rs 520
- Strong fundamentals means better placed among NBFCs
- Housing finance growth should be decent but will face pressure from banks
- Asset quality is best in class
- Liquidity should be manageable
Morgan Stanley On L&T
- Overweight rating maintained
- Price target raised to Rs 1,117 from Rs 941
- Expect public capex to bounce back in FY22
- Dominance set to increase
- Some legitimate near-term concerns but they are priced in
CLSA On DLF
- Buy rating maintained
- Price target cut to Rs 180 from Rs 182
- Adequate cashflow cushion due to largest rental portfolio in India
- Best placed in Gurugram with a large completed inventory
- Cash conversion strategy should aid in debt management amid slowdown
Bulk Deals
- Equitas Holdings: Julius Baer Multistock-Emerging Equity Fund acquired 31.64 lakh shares (0.93 percent) at Rs 53.68 per share.
- Sasken Technologies: Vanderbilt University acquired 2 lakh shares (1.33 percent) at Rs 444 per share and Atyant Capital India Funds sold 2 lakh shares (1.33 percent) at Rs 444 per share.
Who’s Meeting Whom
- Cummins India to meet Capital Group on April 24
- Manappuram Finance to meet Hosking Partners on April 24
- CRISIL to meet Pari Washington and Motilal Oswal AMC between April 28-30
Trading Tweaks
- Price Band Revised To 5 Percent From 10 Percent: GTPL Hathway, Morepen Laboratories
- Price Band Revised To 10 Percent From 20 Percent: Balaji Telefilms, Career Point
- Move Into ASM Framework: Bharat Wire Ropes, Mohota Industries
- Move Into Short-Term ASM Framework: TV18 Broadcast, Kalpataru Power Transmission, Alkyl Amines Chemicals
- Move Out Of Short-Term ASM Framework: Hatsun Agro Product, Wockhardt, Everest Industries, Alembic Pharmaceuticals, Avanti Feeds, Eros International Media.
Money Market Update
- The currency ended stronger at 76.07 against the U.S. Dollar on Thursday as compared to Wednesday's close of 76.66. This was the second straight day of gains for the rupee.
- India's currency was the second best performer among Emerging Market peers on Thursday, after the Russian Ruble.
- The rupee has appreciated 83 paise from its record low of 76.90 against the greenback on Wednesday.
- Yield on the 10-year bond cooled off after the Reserve Bank of India announced another version of 'operation twist.'
F&O Cues
- Nifty April futures closed at 9,297; Premium rises to 17 points from 13 points
- Nifty April futures shed 3 percent in Open Interest and 3 lakh shares
- Nifty Bank April futures closed at 19,677; Discount widens to 88 points from 30 points
- Nifty Bank April futures shed 0.7 percent in Open Interest and add 8,700 shares
- Nifty Put-Call Ratio at 1.51 versus 1.37 across all series
Nifty Monthly Expiry: April 30
- Maximum Open Interest on Call side at 10,000 strike (18.9 lakh shares)
- Maximum Open Interest on Put side at 9,000 strike (34 lakh shares)
- Open interest addition seen in 9,000 Put (8.3 lakh shares) and 9,300 Put (5 lakh shares)
