All You Need To Know Going Into Trade On April 6
Asian equities have opened mixed this morning, even as their counterparts on Wall Street hit a record overnight.
Benchmarks in Japan dipped while those in Australia and South Korea traded with gains. Equity markets in Hong Kong will remain shut due to a holiday.
Treasury yields were steady while the U.S. Dollar and oil prices held overnight losses.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,729, as of 6:55 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are trading 30 points lower. The index gained 1.1% on Monday.
- U.S. stocks rose overnight courtesy strong economic data. U.S. service providers had the fastest growth on record in March as orders jumped to new highs.
- Traders are also keeping an eye on virus curbs across Europe as the region continues to grapple with rising coronavirus infections that threaten to delay economic reopening there.
- Credit Suisse began unloading stocks tied to the Archegos Capital fallout, more than a week after some of its peers dumped shares to skirt losses.
- Yield on the 10-year treasuries stood at 1.7%.
- West Texas Intermediate crude rose 0.6% to $59 per barrel after a 4.6% drop overnight.
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Stocks To Watch
- Bajaj Finance: Acquired 2.3 million new customers in the three months to March 31, compared with 1.9 million a year earlier. Total customers stood 48.6 million, compared with 42.6 million year-on-year. Deposit book stood at about Rs 25,800 crore as on March 31, compared with Rs 21,427 crore a year earlier. Assets under management stood at Rs 1.53 lakh crore Versus Rs 1.47 lakh crore year-on-year. Consolidated Liquidity Surplus stood at about Rs 16,000 crore as of March 31. New loans booked during Q4 at 5.5 MM as compared to 6 MM a year earlier. Deposit book during the quarter grew by over Rs 2,000 crore to Rs 25,800 crore.
- Sobha: Achieved best ever total sales volume of 13.37 lakh square feet worth Rs 1,072 crore in quarter ended March. Price realisation of Rs 8,014 per square feet was the highest over the last eight quarters. Sales volume, total sales value and total price realisation up by 18%, 21%, and 2% respectively compared to previous quarter. Cash flows remained healthy during the quarter resulting in substantial net debt reduction. Average cost of borrowing has further come down during the quarter. Launched new residential projects to the tune 2.77 million square feet and 0.27 million square feet in commercial space. Sales volume in Bengaluru, Gurugram, Pune and Kochi was the highest ever.
- Avenue Supermarts: Standalone revenue from operations in the fourth quarter stood at Rs 7,303.13 crore as compared to Rs 6,193.53 crore in the same period last year. Two years and older stores saw growth of 6% during January-February 2021. Growth for these stores in the first 15 days of March 2021 was a negative 9.4% due to implementation of full or partial lockdowns due to rising Covid-19 cases. The second fortnight of March saw significant growth due to a lower base of last year. Several stores have been restricted to sell non-essential products on certain days of the week or for continuous period of at least up to the end of April 2021. In FY21 the company opened 22 new stores and converted two stores into fulfilment centers for Avenue E-commerce. The total number of stores stood at 234.
- Bharat Forge, RK Forgings: Class 8 truck orders at 40,800 units for the month of March as compared to 7,211 units in the year-ago period. However, the orders were down 9% month-on-month and stood at 44,000 units in February 2021.
- RBL Bank: The bank's gross advances grew 2% year-on-year and 5% quarter-on-quarter to Rs 60,012 crore. Total deposits saw growth of 26% from last year and 9% from the previous quarter to Rs 73,123 crore. CASA Ratio for the Bank stood at 31.8% from 31.1% during the December quarter. Average Liquidity Coverage Ratio for the quarter was 154% Vs 164% in December 2020.
- Ircon International: Board approves the issue of bonus shares in the ratio of 1:1. The bonus shares will be dispatched within 60 days of the board's approval. The issue of bonus shares is subject to shareholder approval.
- Panacea Biotec: The Russian Direct Investment Fund has signed an agreement with the company to produce 100 million doses per year of Sputnik V vaccine in India. Production of Sputnik V at Panacea Biotec sites will help facilitate global supply to international partners of RDIF.
- Container Corporation of India: Q4 volumes up 12.5% year-on-year at 10.58 lakh TEUs (Twenty Foot Equivalent Units). FY21 volumes down 2.8% year-on-year at 36.43 lakh TEUs.
- Jindal Steel & Power: Sales in March up 61% year-on-year at 7.86 lakh tonnes. Production up 21% year-on-year at 7.30 lakh tonnes. Quarterly Production has crossed 2.07 million tonnes. The company has posted highest ever production and sales in FY21 of 7.51 million tonnes and 7.28 million tonnes respectively. Exports accounted for 35% of the total sales in FY21 as compared to 13% last year.
- Maruti Suzuki: Total production in March up 86.33% to 1.72 lakh units Vs 92,540 units last year.
- Mukand: Has reduced its debt by more than Rs 975 crore via a promoter backed line of credit, completion of first tranche of sale of 30% stake in joint venture, Mukand Sumi Special Steel for Rs 713.61 crore, and transfer of company’s approximately 55 acres of surplus leasehold land at Thane for a consideration of Rs 801.51 crore.
- Non-Nifty Earning: GM Breweries
HSBC On Avenue Supermarts
- Maintains buy rating
- Price target of Rs 3,500
- New restrictions linked to another Covid-19 wave are near-term challenges but the company is well placed to mitigate the impact
- Earnings outlook is robust led by network rollout
- Anu pandemic-linked weakness offers a further opportunity to buy
- DMart still has a compelling investment case as revenue and profits will likely more than double between FY21-23E
Credit Suisse On Bajaj Finance
- Maintains neutral rating
- Price target of Rs 5,600
- Expect loan growth to slow down to 21% CAGR over the medium-term from 35% CAGR
- High delinquencies in auto loans, high pricing pressure due to strong competition from banks in housing loans can lead to slow loan growth
- With higher share of unsecured loans and lower share of salaried customers, a second Covid-19 wave can impede credit cost normalisation
- Will look for any potential upward revision in FY22E credit cost guidance of 1.6%-1.7%
- Remain neutral on high valuations
JPMorgan On Brookfield India REIT
- Initiate coverage with Overweight rating
- Price target of Rs 270
- REIT is a low-risk portfolio with 93% of value coming from compelled assets and further has limited expiries over FY22/23
- Committed occupancy of the portfolio is 87% with scope for improvement as the market normalizes
- Has elongated lease expiry profile with 75% rent coming from MNCs
- Space open for acquisition-led growth in the future
Pledge Share Details
- Apollo Tyres: Promoter Sunrays Properties and Investments Company revoked pledge of 8 lakh shares on March 31.
- Gayatri Projects: Promoter T Reddy invoked pledge of 1.08 lakh shares on April 1.
As reported on March 5.
Who's Meeting Whom
- Nazara Technologies: To meet HDFC Securities on April 6 and Elara Securities on April 7.
- Aarti Industries: Promoters Monisha Bhatia, Shreya Suneja, Indira Dedhia and Bhavna Family Private Trust sold 62,758 shares between March 30-31.
- Eris Lifesciences: Promoter Himanshu shah sold 9.51 lakh shares between March 30-31.
- Godrej Industries: Promoter Arel Enterprise LLP bought 1.02 lakh shares on March 26.
- Godrej Agrovet: Promoter Godrej Industries bought 74,892 shares on March 30.
- Price Band Revised From 10% To 5%: Adani Transmission
- Price Band Revised From 5% To 20%: Jubilant Ingrevia
- Ex-Date Interim Dividend: NACL Industries, Shriram City Union Finance
- Record Date Interim Dividend: Shriram Transport Finance, SBI Life Insurance Company, Saregama India
- Move Into Short-Term ASM Framework: Dynamatic Technologies, Godawari Power & Ispat
- Move Out Of Short-Term ASM Framework: Dolat Investments, Adani Power, Dhani Services, Praj Industries, Reliance Power
- Move Into ASM Framework: Dhani Services, Capri Global Capital
Money Market Update
- The rupee ended at 73.33 against the U.S. Dollar on Monday as compared to Thursday's closing of 73.11.
- Nifty April futures ended at 14,706; premium of 69 points
- Nifty April futures Open Interest was flat and addition of 239 shares was seen on Monday
- Nifty Bank April futures ended at 32,840; premium of 162 points
- Nifty Bank April futures shed 1.4% and 1,122 shares in Open Interest
- Nifty Put-Call Ratio at 1.6
- Out Of F&O Ban: SAIL
- No Stocks In F&O Ban