All You Need To Know Going Into Trade On April 27
Asian stocks climbed as the latest bout of earnings results buoyed sentiment in the technology sector and traders monitored a historic meeting between the leaders of North and South Korea.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.5 percent to 10,664.50 as of 7:15 a.m.
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Here’s a quick look at all that could influence equities on Friday.
- U.S. equities rose, with technology shares rallying after strong earnings from Facebook Inc. and Advanced Micro Devices Inc. offered a reprieve for bulls.
- The yield on 10-year Treasuries decreased four basis points to 2.99 percent, the first retreat in more than a week and the biggest tumble in almost three weeks.
- European stocks rose on Thursday, as a retreat in the euro fueled hopes of fewer currency headwinds for the region’s corporate profits.
- Defensive bond-proxy sectors including food and beverage, telecoms and utilities were among the biggest gainers as government bond yields dropped back.
- The euro eased 0.5 percent to $1.2105.
- The British pound fell less than 0.1 percent to $1.3919.
- Germany’s 10-year yield sank four basis points to 0.59 percent.
- Britain’s 10-year yield decreased four basis points to 1.50 percent.
- Japan’s Topix index advanced 0.3 percent.
- Australia’s S&P/ASX 200 Index added 0.4 percent.
- Futures on Hong Kong’s Hang Seng index rose 0.6 percent.
- The S&P 500 Index rose 1 percent.
Here are some key events coming up this week:
- U.S. GDP data are due Friday.
- The Bank of Japan announces its latest policy decision Friday and releases updated economic projections.
- West Texas Intermediate crude fell 0.2 percent to $68.05 a barrel.
- Brent crude halted two-month gain and ended 0.2 percent lower at $74.60 per barrel.
- Gold was steady at $1,317.48 an ounce.
- Aluminium extended gains for the second day and rose as much as 1.6 percent to $2,279.50 per metric tonne.
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Nifty Earnings To Watch
- Reliance Industries
- Maruti Suzuki India
- Bandhan Bank
Other Earnings To Watch
- Equitas Holdings
- RBL Bank
- Shoppers Stop
- Shriram Transport Finance
- Automobile Corporation Of Goa
- Industrial & Prudential Investments Co
- Jagran Prakashan
- JSW Holdings
- Mahindra Lifespace Developers
- Nivi Trading
- Salem Erode Investments
- Shriram Asset Management Co
- Uniphos Enterprises
- Vardhman Special Steels
Earnings Reactions To Watch
Axis Bank Q4 (YoY)
- Net interest income flat at Rs 4,730 crore.
- Net loss of Rs 2,189 crore versus profit of Rs 1,225 crore.
- Provisions up 155 percent at Rs 7,195.5 crore (QoQ).
- GNPA at 6.77 percent versus 5.28 percent (QoQ).
- NNPA 3.4 percent versus 2.56 percent (QoQ).
Biocon Q4 (YoY)
- Revenue up 26 percent at Rs 1,169.5 crore.
- Net profit up 2 percent at Rs 130 crore.
- Ebitda up 24 percent at Rs 232.5 crore.
- Margin at 19.9 percent versus 20.3 percent.
SBI Life Insurance FY18 (YoY)*
- Annualised premium equivalent up 27 percent at Rs 8,540 crore.
- Value of new business up 34 percent at Rs 1,390 crore.
- VNB Margin at 16.2 percent versus 15.4 percent.
- Solvency Ratio at 2.06 versus 2.04.
- *Quarterly figures not given
Kirloskar Pneumatic Q4 (YoY)
- Revenue up 90 percent at Rs 309 crore.
- Net profit at Rs 48 crore versus Rs 18 crore.
- Ebitda at Rs 75 crore versus Rs 26 crore.
- Margin at 24.3 percent versus 16 percent.
AU Small Finance Bank Q4 (YoY)
- Net interest income up 30 percent at Rs 287 crore.
- Net profit up 6 percent at Rs 83 crore.
- Provisions down 9 percent at Rs 30 crore (QoQ).
- GNPA at 2.01 percent versus 2.83 percent (QoQ).
- NNPA at 1.27 percent versus 1.87 percent (QoQ).
Shriram City Union Q4 (YoY)
- Net interest income up 14 percent at Rs 812 crore.
- Net profit at Rs 47 crore versus Rs 12 crore.
Rallis India Q4 (YoY)
- Revenue up 7 percent at Rs 371 crore.
- Net profit down 35.5 percent at Rs 20 crore.
- Ebitda down 21 percent at Rs 33 crore.
- Margin at 8.9 percent versus 12.1 percent.
Jindal Stainless (Hisar) Q4 (YoY)
- Revenue up 10 percent at Rs 2,254 crore.
- Net profit up 60 percent at Rs 96 crore.
- Ebitda up 20 percent at Rs 286 crore.
- Margin at 12.7 percent versus 11.6 percent.
Reliance Capital Q4 (YoY)
- Revenue down 1 percent at Rs 5,000 crore.
- Net profit up 3 percent at Rs 428 crore.
Accelya Kale Q4 (YoY)
- Revenue down 2 percent at Rs 93 crore.
- Net profit down 15 percent at Rs 22 crore.
- Ebitda flat at Rs 37.5 crore.
- Margin at 40.3 percent versus 39.5 percent.
IEX Q4 (YoY)
- Revenue up 8 percent at Rs 55 crore.
- Net profit up 15 percent at Rs 31 crore.
- Ebitda up 23 percent at Rs 43 crore.
- Margin at 78 percent versus 69 percent.
Essel Propack Q4 (YoY)
- Revenue up 3 percent at Rs 628 crore.
- Net profit up 2 percent at Rs 45 crore.
- Ebitda down 3 percent at Rs 116 crore.
- Margin at 18.5 percent versus 19.6 percent.
Aditya Birla Money Q4 (YoY)
- Revenue up 28 percent at Rs 43.5 crore.
- Net profit up 7 percent at Rs 4 crore.
Tata Metaliks Q4 (YoY)
- Revenue up 36 percent at Rs 546 crore.
- Net profit up 37.5 percent at Rs 55 crore.
- Ebitda up 18 percent at Rs 88 crore.
- Margin at 16.1 percent versus 18.6 percent.
Stocks To Watch
- 15 IDBI officals named in bank fraud case, raids conducted at 50 locations: CBI Official.
- Fortis to discuss further board restructuring on April 27.
- Thermax won Rs 279 crore order for a captive cogeneration power plant.
- IEX board decided not to go ahead with buyback.
- Essel Propack’s board recommended 1:1 bonus issue.
- Cyient acquired semiconductor firm Ansem N.V. in an all cash deal worth $17 million.
- Gati approved inducting new strategic and/or financial partner.
- CCI finds no Appreciable Adverse Effect on Competition in respect of Tata Steel’s proposed acquisition of Bhushan Steel.
- Apollo Micro Systems said that the company officials were asked to appear before IT officials on April 25.
- MOIL signed MoU with Ministry of Steel for FY19.
- Mangalore Chemicals and Fertilisers shuts down ammonia, urea and ABC Plants for annual turnaround maintenance.
- Coffee Day: Marina West (Singapore) Pte. Ltd. sold 12.66 lakh or 0.6 percent equity at Rs 332.05 each.
- Karnataka Bank: Copthall Mauritius Investment sold 19.26 lakh shares or 0.7 percent equity at Rs 116.72 each.
- EQ India Fund bought 46,071 shares or 0.9 percent equity at Rs 2,811.42 each
- Equity Intelligence India bought 38,721 shares or 0.7 percent equity at Rs 2,811 each
- Hober Mallow Trust sold 1.15 lakh shares or 2.2 percent equity at Rs 2,811.40 each
- Aspire Emerging Fund bought 2.16 crore shares or 1.4 percent equity at Rs 1.89 each.
- Elara India Opportunities Fund sold 2.23 crore shares or 1.5 percent equity at Rs 1.89 each.
- Vakrangee shifted to T group.
- HDIL circuit filter revised to 20 percent.
Who’s Meeting Whom
- HCC to meet investors/analysts on May 3.
- VIP Industries promoters acquired 1.98 lakh shares on April 20.
- Aarti Industries promoter Chandrakant gogri sold 8,000 shares from April 23–24.
- Mercator promoter H K Mittal acquired 3 lakh shares on April 26.
- Liberty Shoes promoter Arpan Gupta sold 6,750 shares from April 24–25.
- Chaman Lal Setia promoters sold 1,000 shares on April 23.
- Ashoka Buildcon promoter Ashok Katariya acquired 15,124 shares on April 25.
- SH Kelkar promoter Kedar Vaze sold 1.13 lakh shares from April 23–25.
- Rupee closed at 66.76/$ on Thursday versus 66.90/$ on Wednesday.
Top Gainers And Losers
- Nifty May futures closed trading at 10,632.5 with premium of 14.7 points versus 21.7 points.
- Nifty rollover at 72 percent, Bank Nifty rollover at 83 percent.
- All series: Nifty open interest up 6 percent, Bank Nifty open interest up 5 percent.
- India VIX ended at 12.03, down 2.8 percent.
- Max open interest for May series at 11,000 (open interest at 43.8 lakh, up 62 percent).
- Max open interest for May series shifts to 10,500 (open interest at 30.6 lakh, up 47 percent).
No stocks in ban
- Nifty PCR at 1.48 versus 1.61.
- Nifty Bank PCR at 1.25 versus 1.11.
Stocks Seeing High Open Interest Change
HSBC on Sun Pharma
- Maintained ‘Buy’ with a price target of Rs 650.
- AbbVie/Boehringer Ingelheim filed risankizumab, an anti-IL-23 biologic psoriasis drug for review.
- Risankizumab could be a strong rival to Sun Pharma's Ilumya and other anti-IL drugs.
- Risankizumab has strong clinical trial data.
- US generic business remain under pressure, but maintain Buy on specialty portfolio.
HSBC on ICICI Lombard
- Maintained ‘Reduce’; hiked price target to Rs 620 from Rs 610.
- Group delivered improvement in profitability but disappointments on multiple fronts.
- Risk: Under-reserving and fragmentation in motor and increasing losses in crop insurance.
- Biggest upside is the passage of the Motor Vehicles bill.
Jefferies on Petronet LNG
- Maintained ‘Buy’ with a price target of Rs 290.
- Valuations much more reasonable in a normal risk environment.
- Risk: Rising competition, regas tariffs and capital allocation.
- Firm contracts cushion volume risks.
- With LNG imports up 19 percent, expect March quarter to be steady.
- Expect earnings per share to compound at 12 percent over the fiscal 2018-21.
MOSL on Axis Bank
- Maintained ‘Buy’; cut price target to Rs 650 from Rs 600.
- Weak March quarter on the asset quality front; Stressed asset recognition accelerates.
- Incremental stress addition peaked out; Expected to decline.
- Recovery to hold from October with normalisation in credit cost.
- Cut earnings estimate for the current and the next financial year by 22 percent and 19 percent respectively to account for lower NII growth.
MOSL on Yes Bank
- Maintained ‘Buy’; raised price target to Rs 444 from Rs 410.
- Strong performance in a challenging quarter.
- NII beat on account of better than expected loan growth.
- Net interest margins decline (QoQ) led by higher borrowings and decline in CASA ratio.
- Expect asset quality overhang to recede.
- Expect improved visibility of growth and profitability.
Investec on Colgate Palmolive India
- Maintained ‘Buy’; raised price target to Rs 1,280 from Rs 1,200.
- Attractive oral care opportunity in India.
- Patanjali intensity plateauing; Likely to moderate ahead.
- Colgate improved execution in ayurveda category.
- Wholesale channel disruption temporary.
CLSA on Supreme Industries
- Maintained ‘Buy’; raised price target to Rs 1,557 from Rs 1,482
- March quarterly results was a strong beat.
- Stake sale in automotive component manufacturing to boost RoCE.
- Expect ramp-up in revenue as approvals of composite cylinder secured.
- Upgrade earnings per share for the current and the next financial year by 5-10 percent.
CLSA on Reliance Nippon
- Maintained ‘Buy’ with a price target of Rs 330.
- March quarter was slightly below estimates due to higher costs/lower topline.
- Healthy AUM growth and better mix.
- Cut in equity AUM fees to be passed to distributors.
- Expect compounded growth rate of 22 percent in earnings over the fiscal 2018-21.
Nomura on Axis Bank
- Maintained ‘Buy’; cut price target to Rs 630 from Rs 675.
- Asset quality: Quantum negative but underlying quality not bad.
- Operating performance weak; Impacted by asset quality pressure.
- Expect credit cost to normalise to below 100 basis points by March 2020.
- Expect return on equities to normalise to 15 percent by March 2020.
Nomura on Yes Bank
- Maintained ‘Buy’; raised price target to Rs 500 from Rs 375
- March quarter addressed concerns on asset quality.
- Operationally strong quarter.
- Quantum of loan growth needs more explanation.
- Believe worst is behind; Expect a re-rating now.
- Yes Bank is preferred pick in sector.