All You Need To Know Going Into Trade On April 26
Asian stocks drifted at the open Monday as investors look for clues on the economic recovery in a big earnings week and a Federal Reserve meeting.
Benchmarks fluctuated in Japan and Australia, and edged higher in South Korea. U.S. futures were little changed after most major groups in the S&P 500 advanced Friday.
The dollar maintained losses against major peers in early trading. Oil and gold were little changed.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, climbed 0.14% to 14,358 as of 7 a.m.
Here are some key global events to watch this week:
- Focus turns to the Fed meeting, with policymakers reiterating that they are in no hurry to withdraw support even as the U.S. economy rebounds.
- Bank of Japan rate decision and Governor Haruhiko Kuroda briefing Tuesday
- Joe Biden makes his first address as president to a joint session of Congress Wednesday
- U.S. GDP is forecast to show robust 6% growth in the first quarter, bolstered by government stimulus Thursday
- A slew of earnings from megacaps including Tesla Inc., Facebook Inc. and Apple Inc. will be parsed as investors look for clues on how companies are faring in the recovery.
Earnings Post Market Hours
ICICI Bank Q4FY21 (YoY)
- Net Profit up 260.5% at Rs 4,402 crore Vs Rs 1,221 crore (Bloomberg Estimate: Rs 4,281 crore)
- NII up 16.8% Rs 10,431 crore Vs Rs 8,927 crore (Bloomberg Estimate: Rs 10,161 crore)
- GNPA at 4.96% Vs 5.42% (QoQ)
- NNPA at 1.14% Vs 1.26% (QoQ)
- Gross additions to NPAs stood at Rs 5,523 crore
- Recoveries and upgrades, excluding recoveries from proforma accounts/sale/write-offs, stood at Rs 2,560 crore
- Restructured loans worth Rs 1,976 crore under a one-time restructuring scheme
- Total advances up 14% to Rs 7.34 lakh crore
- Retail loans up 20% and now constitute 67% of the loan book
- Domestic performing corporate book up 13%
- Credit card portfolio up 10.6% to Rs 17,311 crore
- Has recommended a dividend of Rs 2 per share
- Approved fundraising by way of debt securities issuance in domestic markets upto an overall limit of Rs 20,000 crore and issuances of bonds/notes/offshore certificate of deposits in overseas markets upto $1.50 billion in single/multiple tranches for a period of one year.
HCL Technologies Q4FY21 (Consolidated, QoQ)
- Revenues up 1.75% at Rs 19,641 crore Vs Rs 19,302 crore
- PAT down 72.06% at Rs 1,111 crore Vs Rs 3,977 crore
- Ebit down 20.53% at Rs 3,526 crore Vs Rs 4,437 crore
- Ebit margins at 17.95% Vs 22.98%
- Revenue in dollar terms up 3% to $2,696 million
- Constant-currency revenue growth stood at 2.5%
- Registered record new deal booking of $3.1 billion
- Expects revenue in FY22 to grow in double digits in constant currency terms
- Expects Ebit margin for FY22 to range between 19% and 21%
- Declared an interim dividend of Rs 6 per equity share and a special interim dividend of Rs 10 per equity share for FY 2021-22
M&M Financial Services Q4FY21 (Consolidated, YoY)
- NII up 6% at Rs 1,774.39 crore Vs Rs 1,670.36 crore
- Net profit down 8% at Rs 218.84 crore Vs 238.91 crore
- Gross Stage 3 levels (bad loans) at 9% Vs 8.4%
- Net NPA ratio at 3.97%. The Stage 3 provisioning coverage ratio stood at 57.9%
- Total Income down 3% to Rs 3,038 crore Vs Rs 3,140 crore
- Loan assets at Rs 64,608 crore Vs Rs 68,089 crore
- Total disbursements (amount financed) down 41% in FY21 at Rs 19,798 crore Vs Rs 34,257 crore in FY20
- Standalone Assets Under Management comprising loan assets and investments up 6% at Rs 81,689 crore Vs Rs 77,160 crore
- Has recommended a dividend of Rs 0.80 per share
Indiabulls Real Estate Q4FY21 (Consolidated, YoY)
- Revenue at Rs 731.73 crore Vs Rs 116.29 crore
- Net profit at Rs 94.50 crore Vs Net loss of Rs 109.70 crore
- Ebitda at Rs 145.42 crore Vs loss of Rs 79.84 crore
- Ebitda Margins at 19.9%
- New sales up 66% at Rs 629 crore Vs Rs 379 crore
- Gross Collection up 43.6% at Rs 866 crore Vs Rs 603 crore
- Total net surplus from completed inventory and projects that are currently ongoing is Rs 10,754 crore
Stocks To Watch
- Hathway Cable & Datacom: Promoters Jio Content Distribution Holdings, Jio Internet Distribution Holdings, and Jio Cable and Broadband Holdings to sell upto 20.54 crore shares or 11.61% of the total equity through an offer for sale. The floor price of Rs 21.50 per share is at a discount of 0.69% to Friday's closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.
- Shalby: Promoter Shah Family Trust to sell upto 58.10 lakh shares of face value of Rs 10 each, representing 5.38% of the total equity share capital, through an offer for sale. The floor price of Rs 111 per share is at a discount of 3.47% to Friday's closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.
- Federal-Mogul Goetze (India): Promoter IEH FMGI Holdings LLC to sell upto 55.38 lakh shares of face value of Rs 10 each, representing 9.95% of the total equity share capital, through an offer for sale. The promoter will have a greenshoe option to sell an additional 55.38 lakh shares. The floor price of Rs 250 per share is at a discount of 13.94% to Friday's closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.
- SREI Infrastructure Finance: The wholly-owned subsidiary of the company, SREI Equipment Finance, has received an expression of interest from Cerberus Global Investments. This is the third global investor which has submitted interest for investment in SREI Equipment Finance. Previously, Arena Investors LP and Makara Capital Partners had submitted EoI for an investment of $250 million.
- Ramkrishna Forgings: The company has started commercial production of 7000 tonnes press from its Plant-V, situated at Saraikala, Jamshedpur from April 22, increasing the production capacity of the company by 17,000 tonnes per annum.
- ONGC: Has appointed Subhash Kumar, Director (Finance), as Chief Executive Officer and Vivek Tongaonkar, Executive Director (Finance), as Chief Financial Officer.
- Zuari Agro Chemicals: The company's NPK B Plant has been shut down since April 24 due to the unavailability of raw materials.
- Ramco Systems: Has established a wholly-owned subsidiary in Japan called Ramco Software Japan.
- Nifty Earnings: HDFC Life Insurance Company, Tech Mahindra
- Non-Nifty Earnings: Alok Industries, Castrol India, Delta Corp, SBI Cards and Payment Services, Schaeffler India, Snowman Logistics, Tata Teleservices (Maharashtra)
Pledge Share Details
- Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 7.50 lakh shares on April 20.
- IndusInd Bank: Promoter IndusInd International Holdings created a pledge of 1.07 crore on April 15.
- Wockhardt: Promoter Themisto Trustee Company created a pledge of 30 lakh shares on April 20.
- Edelweiss Financial Services: Promoter Rashesh Shah revoked pledge of 75 lakh shares on April 23.
As reported on April 23.
- Price Band Revised From 10% To 5%: Panacea Biotec
- Price Band Revised From 20% To 10%: Sastasundar Ventures
- Ex-Date Rights: Sundaram Finance Holdings
- Ex-Date Dividend: Elantas Beck India
- Move Into Short-Term ASM Framework: Nectar Lifesciences, Inox Wind
- Move Out Of Short-Term ASM Framework: Suvidhaa Infoserve
- Move Into ASM Framewok: Suvidhaa Infoserve, Jayaswal Neco Industries, Likhitha Infrastructure, Dhani Services
- Move Out Of ASM Framework: Sharda Motor Industries, GTL Infrastructure, Magma Fincorp, Neuland Laboratories
Money Market Update
- The rupee ended at 75.02 against the U.S. Dollar on Friday as compared to Thursday's closing of 74.96.
Goldman Sachs is advising investors to go long on the Indian rupee versus the Taiwan dollar as its attractive carry offers a cushion against healthcare risks.
While we are constructive on TWD versus the dollar going forward, we recommend going long INR versus TWD for the attractive carry-to-volatility ratio of the pair,” which will help investors ride out the bumpy but constructive path for INR.Zach Pandland, Danny Suwanapruti, Strategists, Goldman Sachs
- Nifty April futures ended at 14,333; discount of 8.35 points.
- Nifty April futures shed -2.75 and 3,860 shares in Open Interest
- Nifty Bank April futures ended at 31,602.80; discount of 119.5 points
- Nifty Bank April futures added 4.99% and 3,486 shares in Open Interest
- Securities that continue to be on ban list: Sun TV and Indiabulls Housing Finance.
- Stocks out of F&O ban: SAIL