All You Need To Know Going Into Trade On April 27
A tea vendor in Mumbai. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On April 27

Most Asian stocks slipped in early trading Tuesday and U.S. futures edged higher as traders await a Federal Reserve meeting that is expected to leave policy exceptionally loose despite robust growth.

Indices dipped in Australia, South Korea and Japan. U.S. contracts were in the green after solid corporate earnings helped the S&P 500 Index notch another record, with most of the main 11 industry groups gaining.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,494, as of 6.50 a.m.

  • The U.S. 10-year Treasury yield held around its 50-day moving average, well below last month’s peaks, and the dollar was steady.
  • Copper, seen as a barometer of growth, extended gains that have taken prices to the highest in almost a decade.
  • Oil steadied as traders consider the risks to demand from India after the nation reported a million new coronavirus cases in three days.

Here are cues that will affect trade today

All You Need To Know Going Into Trade On April 27

Earnings Post Market Hours

Tech Mahindra Q4FY21 (Consolidated, QoQ)

  • Revenue up 1% at Rs 9,729.9 crore Vs Rs 9,647.1 crore (Bloomberg Estimate: Rs 9831.8 crore)
  • Net profit down 17% at Rs 1081.4 crore Vs Rs 1309.8 crore (Bloomberg Estimate: Rs 1307.4 crore)
  • Ebit up 1% at Rs 1,553 crore Vs Rs 1,537 crore (Bloomberg Estimate: Rs 1,546.8 crore)
  • Ebit margins at 16% Vs 15.9%
  • Constant-currency revenue growth stood at 0.7%
  • Revenue in U.S. dollar terms rose 1.6% to $1,329.6 million

HDFC Life Q4FY21 (Standalone, YoY)

  • PAT up 2% at Rs 317.94 crore Vs Rs 311.71 crore
  • Net premium income up 23% at Rs 12,868 crore Vs Rs 10,464 crore
  • Value of New Business increased by 14% to Rs 2,185 crore
  • 13th and 25th persistency stood at 90% and 81% respectively, up from 88% and 76% in the previous year
  • Sold about 9.8 lakh new individual policies registering a growth of 10%.
  • Solvency at 201%
  • Has recommended a final dividend of Rs 2.02 per share

SBI Cards & Payments Services Q4FY21 (Standalone, YoY)

  • Revenue down 5% at Rs 2,308.68 crore Vs Rs 2,433.24 crore
  • Net profit up 110% at Rs 175.42 crore Vs Rs 83.55 crore
  • GNPA at 4.99% Vs 2.01%
  • NNPA at 1.15% Vs 0.67%
  • Total management overlay provision at Rs 297 crore
  • Impairment losses & bad debts expenses at Rs 705 crore Vs Rs 838 crore
  • Capital Adequacy Ratio at 24.8%
  • New accounts volume at 791K accounts
  • Receivables up 4% to Rs 25,114 crore Vs Rs 24,141 crore
  • Market share by cards issued rises to 19% Vs 18.3%; share of spends at 19.5% Vs 17.9%

Castrol India Q1CY21 (QoQ)

  • Revenue up 22% at Rs 1,138.7 crore Vs Rs 935.2 crore
  • PAT up 30% at Rs 243.6 crore Vs Rs 187.7 crore
  • Ebitda up 32% at Rs 340.10 crore Vs Rs 257.6 crore
  • Ebitda margins at 29.9% Vs 27.5%

Stocks To Watch

  • Bank of Maharashtra: The board will consider raising capital by issuing Basel III bonds either through a follow-on public offer, rights issue, qualified institutional placement, preferential issue or a combination of these. The board will meet on April 29 to consider the proposal.
  • Tata Motors: Company says lockdown in various parts of the country is expected to hit vehicle demand temporarily. The automaker said it will ensure optimal inventory levels by calibrating supplies with retail demand and also be prepared for a rebound in case of a return to normalcy. The company will also review and plan for the critical raw materials to cater to this volatile demand outlook.
  • Sagar Cements: Board of Directors have approved a proposal to merge a wholly-owned subsidiary--Sagar Cements (R) Ltd.--with itself. SCRL has cement manufacturing and power generation facilities in Andhra Pradesh. The merger will not involve any fresh issuance of shares. The company said the merger will help in enhancing the scale of operations, reduce legal and regulatory compliance and lead to lower costs.
  • Tech Mahindra: Board has approved a proposal for the acquisition of a 100% stake in Eventus Solutions Group LLC through its wholly-owned U.S. subsidiary for up to $44 million including earnouts. The transaction is expected to close by June 15, 2021.
  • SAIL: The Bhilai steel mill will undertake a short shutdown to boost liquid oxygen supply in the country. The company said the closure will boost oxygen supply by 15 tonnes and will not affect dispatches. The steel ministry has also issued similar directives to other government-owned mills. (Bloomberg)
  • Union Bank of India: Board of the bank will meet on April 29 to consider an extension of the validity of its fundraising plan for FY21.
  • Reliance Home Finance: Company has defaulted on interest payments on term loans to Canara Bank and Dena Bank amounting to Rs 0.86 crore. The housing financier had borrowed, for a tenure of five years, Rs 300 crore from Canara Bank at 10% per annum and Rs 200 crore from Dena Bank at 9.2% per annum. The company said a delay in servicing debt is due to prohibition to dispose of any assets based on a Delhi High Court order.
  • Shalby: Offer for sale by promoter Shah Family Trust has been subscribed 193% by non-retail investors on the first day of the issue. Promoters plan to sell up to 58.1 lakh equity shares, or a 5.38% stake, at a floor price of Rs 111 per share. The issue will continue on April 27.
  • Federal-Mogul Goetze: Offer for sale gets subscribed 395% by non-retail investors on the first day. Promoter IEH FMGI Holdings LLC plans to sell up to 55.4 lakh equity shares, or a 9.95% stake, a floor price of Rs 250 per share.
  • Hathway Cable and Datacom: Offer for sale gets subscribed 151% by non-retail investors on the first day. Three promoters--Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings--plan to sell up to 20.5 crore shares of the company, representing an 11.6% stake, at a floor price of Rs 21.5 apiece.
  • Nifty Earnings: Axis Bank, Maruti Suzuki India, Britannia Industries, Bajaj Finance
  • Non-Nifty Earnings: ABB India, Gateway Distriparks, Hatsun Agro Product, HDFC Asset Management Company, Hindustan Zinc, JTL Infra, Moschip Technologies, Nippon Life India Asset Management, PNB Housing Finance, Sanofi India, Symphony, Syngene International, Tata Investment Corporation, TVS Motor Company, United Breweries, Vesuvius India, VST Industries

Pledge Share Detail

  • Adani Transmission: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 14 lakh shares on April 23.

Bulk Deals

  • Jagran Prakashan: The company bought 19.23 lakh shares (0.69%) at Rs 57.84 per share.
  • Paisalo Digital: State Bank of India bought 3.99 lakh shares (0.94%) at Rs 615 per share.
  • Fine Organic Industries: SBI Mutual Fund sold 2.37 lakh shares (0.77%) at Rs 2,545.11 per share and sold another 2.33 lakh shares (0.76%) at Rs 2,545 per share.
  • Maithan Alloys: Bhagwati Syndicate bought 9.50 lakh shares (3.27%) at Rs 724 per share. Promoter Prahlad Agarwalla sold 2.25 lakh shares (0.77%) at Rs 724 per share. Sheela Agarwalla sold 2.27 lakh shares (0.78%) at Rs 724 per share. Shankar Agarwalla sold 2.25 lakh shares (0.77%) at Rs 724 per share. Rita Agarwalla sold 2.73 lakh shares (0.94%) at Rs 724 per share.

Trading Tweaks

  • Ex-Date Interim Dividend: Zuari Global, Easy Trip Planners
  • Ex-Date Bonus Issue: Waa Solar
  • Record Date Rights: Sundaram Finance Holdings
  • Price Band Revised From 10% To 5%: Everest Kanto Cylinder
  • Move Into ASM Framework: Inox Wind
  • Move Into Short-Term ASM Framework: TV18 Broadcast, TTK Healthcare, JSW Ispat Special Products
  • Move Out Of Short-Term ASM Framework: Inox Wind, Subex

As reported on April 27.

Money Market Update

The Indian rupee advances for the first day in five amid a rebound in equities, and as a weaker dollar supported emerging Asian currencies. The benchmark 10-year sovereign bond closed little changed, but yields fell on shorter-maturity notes.

“Any reversal from the peak of the current Covid wave can cool off the risk sentiments and rupee might join the league of stronger EMs” says Amit Pabari, managing director at CR Forex says in a note.

  • Weaker USD also supported the rupee; inflows pertaining to IPOs worth 87b rupees from Power Grid and Wellness Forever could cap any sharp decline past 75.50 levels
  • RBI’s actions will be closely monitored above 75.00 levels to see to what extent the central bank is comfortable with the currency’s weakness
  • Short-term range for the USDINR is expected to be formed within 74.50 to 75.50 levels

F&O Cues

  • Nifty April futures ended at 14,487.20; premium of 2.2 points.
  • Nifty April futures shed 6.96% and 9,495 shares in Open Interest
  • Nifty Bank April futures ended at 32,294.90; premium of 19.75 points
  • Nifty Bank April futures added 5.85% and 3,878 shares in Open Interest
  • Securities added to the ban list: SAIL
  • Securities that continue to be on ban list: Sun TV and Indiabulls Housing Finance.
All You Need To Know Going Into Trade On April 27
BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.