All You Need To Know Going Into Trade On April 8
Most Asian markets have opened lower this morning, despite the S&P 500 scaling another record high overnight. Sentiment in the U.S. was boosted by the Federal Reserve's commitment to supportive policy.
Benchmark indices in Japan and South Korea fell, which in-turn weighed on the MSCI Asia Pacific index. Australian markets outperformed.
The U.S. Dollar held gains while the treasury yields were steady.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 14,911, as of 7:00 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 with gains of 20 points. The index ended flat on Wednesday.
- Minutes of last months meeting of the U.S. Federal Reserve suggested that Fed officials were united on the need to see more progress on economic recovery before scaling back their bond-buying program.
- Traders have scaled back their most-aggressive positioning for the Federal Reserve to start raising rates by the end of next year.
- JPMorgan Chase & Co.'s Jamie Dimon said that the U.S. economic rebound could last at least two years once the pandemic ends.
- Yield on the 10-year treasuries stood at 1.67%.
- West Texas Intermediate crude fell 0.6% to $59.39 per barrel.
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Stocks To Watch
- Reliance Industries: SEBI has imposed Rs 25 crore penalty on Mukesh Ambani, Anil Ambani, Nita Ambani, Tina Ambani and other members of their family. SEBI order pertains to increase in Reliance Industries’ promoter shareholding in 2000. Promoter shareholding increased by 6.83% consequent to warrant conversion. Promoter creeping acquisition of over 5% was to be accompanied by open offer. The Ambani’s failed to make an open offer thereby violating SEBI regulations. 15 members of the Ambani family and several entities have been penalised.
- I.T. Stocks: ISG and Gartner released a strong forecast for industry growth in 2021. While Gartner revised its I.T. spend forecast higher for the third straight quarter, ISG hinted at a likely upward change over the next three quarters during its industry outlook call.
- Godrej Consumer Products: Demand trends in categories in key countries remained stable. Expect sales growth in the thirties for the India business, driven by strong volume growth and price hikes. Expect constant currency sales growth in the mid-twenties on a consolidated business. Indonesia business likely to post mid-single digits constant currency sales growth. Africa, U.S. and Middle East businesses may see constant currency sales growth close to the thirties. Latin America business will remain strong in constant currency terms.
- Muthoot Finance: To raise Rs 1,700 crore through public issue of secured redeemable NCDs. The company has announced its 25th series of public issue of NCDs of face value of Rs 1,000 each. The base issue size is Rs 100 crore with an oversubscription of upto Rs 1,600 crore aggregating upto tranche limit of Rs 1,700 crore. The issue will open today and close on April 29. The funds raised through this issue will be utilised primarily for lending activities of the company.
- Bharti Airtel: Has launched 'Airtel loT' - an integrated platform that enables enterprises to harness the power of Internet of Things and be ready for the emerging era of connected things. Airtel loT is an end-to-end platform with the capability to connect and manage billions of devices and applications in a secure and seamless fashion. MG Motor, Pine Labs, Paytm, Kirloskar, BSES, Genus, and Kent are among the many businesses across manufacturing, logistics, automobiles, BFSI and utilities that are already using Airtel's loT solutions.
- Prakash Industries: Achieved highest ever sale of around 2.72 lakh tonnes of steel, up 8.8% QoQ and 31.1% YoY. For FY21, the company's sales stood at 9.54 lakh tonnes, up 3.1% year-on-year. DRI production was also the highest ever at 9.05 lakh tonnes, up 10.7% year-on-year.
- Hindustan Copper: Board has approved opening of QIP of equity shares of face value of Rs 5 each on April 7. The floor price of Rs 125.79 per equity share is at a 13.33% discount to Wednesday's closing price.
- Wipro: Has appointed Subha Tatavarti as Chief Technology Officer and Suzanne Dann as Senior Vice President and Sector Head for Capital Markets and Insurance, North America region.
- IRCTC: Has temporarily suspended Lucknow-New Delhi Tejas Express until April 30, due to recent increase in coronavirus cases.
- Hindustan Construction Company: The company's loan default amount as of March 31 stands at Rs 1,959.41 crore and the total outstanding borrowing from lenders stands at Rs 4,010.93 crore.
Jefferies On Indian Metals
- Steel companies should deliver a new high on Ebitda margins driven by sharp rally in steel prices
- India HRC steel prices rose 46% YoY and are up 20% QoQ
- LME Aluminium prices also improved 24% YoY and were up 9% QoQ
- Expect Q4 Ebitda for Tata Steel & JSW Steel to rise ~25% QoQ and ~150% YoY
- Hindalco's Q4 Ebitda should rise 33% YoY but should be flattish QoQ
- Coal India's blended realisations may improve 7% QoQ but still remain 4% lower YoY
Motilal Oswal On Indian I.T.
- Gartner revised its 2021 I.T. services spend higher for the third straight quarter
- ISG index starts CY21 with all-time high Annual Contract Value (ACV); maintains double-digit guidance
- Expect significant uptick in traditional I.T. for CY21
- Industry may witness growth-led talent crunch
- Strong commentary on AAS and managed services is encouraging for Indian I.T. services industry from a revenue perspective
- Build-in double-digit growth across both largecap and midcap I.T. services vendors
- Like Infosys & HCL Tech among tier-I and L&T Technology Services & Cyient among tier-II companies
Emkay On Titan
- Maintains buy rating
- Price target of Rs 1,650
- Jewellery segment growth has exceeded expectations and is likely to remain strong
- Lockdowns in Maharashtra, which contributes 15-20% of overall revenue may see a short-term impact
- Strong momentum and pent-up demand will drive further upgrades to forecasts
- Remains preferred pick in the discretionary space
Pledge Share Detail
- Aurobindo Pharma: Promoter Kambam Reddy created a pledge of 3.50 lakh shares on April 3.
As reported on April 7.
- Barbeque Nation Hospitality: UTI Mutual Fund bought 2.50 lakh shares at Rs 579.62 per share. Integrated Core Strategies Asia PTE sold 4.01 lakh shares at Rs 545.15 per share.
- Ex-Date Interim Dividend: India Nippon Electricals, Rail Vikas Nigam, Britannia Industries, Kama Holdings
- Record Date Interim Dividend: Edelweiss Financial Services
- Ex-Date Buyback: SIS
- Move Into ASM Framework: Tata Elxsi, Mangalore Chemicals & Fertilizers, AGC Networks
- Move Into Short-Term ASM Framework: JSW Ispat Special Products, Jubilant Ingrevia
- Move Out Of Short-Term ASM Framework: Privi Speciality Chemicals
- SBI Cards and Payment Services: Promoter SBI Life Insurance Company sold 4,298 shares on April 6.
As reported on April 7.
Money Market Update
- The rupee ended at 74.55 against the U.S. Dollar on Wednesday as compared to Tuesday's closing of 73.42.
- The currency fell to the lowest in over four months after its biggest single-day drop since August 2019.
- Nifty April futures ended at 14,880; premium of 61 points
- Nifty April futures added 1.9% and 2,721 shares in Open Interest
- Nifty Bank April futures ended at 33,131; premium of 140 points
- Nifty Bank April futures shed 7.7% and 5,922 shares in Open Interest
- Nifty Put-Call Ratio at 1.69
- Stocks In F&O Ban: SAIL