All You Need To Know Going Into Trade On August 13
A man sits on a park bench as buildings stand in the background in Auckland, New Zealand. (Photographer: Brendon O’Hagan/Bloomberg)

All You Need To Know Going Into Trade On August 13

Asian markets have opened higher on Thursday after their peers on Wall Street, buoyed by technology shares briefly surpassed their all-time closing highs.

The U.S. Dollar has weakened while treasury yields are trading at the highest level in five weeks.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.2% to 11,335 as of 7:00 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Let's take a look at the factors that may influence equities in today's session:

  • Benchmark indices in Japan, South Korea and Australia are trading with gains.
  • Futures on the Dow Jones are trading little changed. The index ended 1% higher on Wednesday.
  • S&P 500 briefly topped its February high, recovering over 50% from the lows it made in March.
  • The Nasdaq outperformed, led by shares of Apple, Microsoft and Tesla.
  • Dallas Fed President Robert Kaplan called on officials to push harder for adherence to protective behaviors and said extending unemployment benefits is “critical” to growth.
  • Yield on the 10-year treasuries stood at 0.67%.
  • West Texas Intermediate crude fell 0.2% to $42.58 per barrel while Gold rose 0.3% to $1,921.24/Oz.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On August 13

Stocks To Watch

  • Indiabulls Housing Finance: SS Mundra - the former deputy governor of the Reserve Bank of India has been appointed as the Non-Executive Chairman of the company. Mundra is currently an independent director of the company. Sameer Gehlaut to relinquish the post of the company's Executive Chairman and will continue as non-executive, non-independent director. He will remain the CEO of Indiabulls Ventures.
  • Tata Power: Board approved merger of wholly-owned arms Coastal Gujarat Power (Mundra UMPP) and Tata Power Solar System (Solar EPC business) and Af-Taab Investment with itself, along with capital reorganization after the merger. Coastal Gujarat Power to get direct support from parent company upon merger. Board also approved withdrawal of scheme of transfer of certain renewable energy undertakings from the company to its arms Tata Power Renewable Energy, Supa Windfarm, Nivade Windfarm and Tata Power Green Energy on a slump sale basis. Board will consider other alternatives for restructuring its renewable energy business. Funds in company’s general reserves are in excess of business needs of the company for the foreseeable future and will be used to reward shareholders, as stated in a press release.
  • Affle India: To acquire 8% stake in Bobble AI, the conversation media platform offering indigenous social keyboard for Rs 19.8 crore. It also has the option to acquire incremental ownership on attainment of certain key performance targets within the next three years. The company has secured exclusive global and monetisation rights of Bobble AI's tech products for a period of five years.
  • Coal India: Bloomberg News reports that the company is seeking 15% reduction in railway freight charges for shipments travelling between 700-1,400 kilometers, in order to make domestic supplies competitive with imports. Domestic coal is considerably cheaper than imports, but taxes and freight makes it less competitive for some customers especially in South and West India, according to the company's e-mailed statement.
  • Apollo Hospitals: NCLT Chennai approved demerger of the front-end portion of the standalone pharmacy business of the company into its arm Apollo Pharmacies.
  • Thermax: MD and CEO MS Unnikrishnan to retire on August 31. Ashish Bhandari will be the new MD and CEO.
  • InterGlobe Aviation: Jwalamukhi Investment Holdings acquired 54.35 lakh shares (1.41%) at Rs 1,028 per share and Kotak Mahindra (International) sold 54.35 lakh shares (1.41%) at Rs 1,028 per share.
  • Brigade Enterprises: Board approved raising up to Rs 500 crore via equity shares and debt. Company expects construction to resume at 100% levels by the end of the third quarter of fiscal 2021.
  • Britannia Industries: Allotted commercial papers worth Rs 300 crore.
  • Dixon Tech: SBI Mutual Fund reduces stake to 4.39% from 4.9% on August 11.
  • Mahindra & Mahindra Financial Services: Rights issue was subscribed approximately 1.3 times, resulting in a demand generation of over Rs 4,000 crore. as compared to a target of Rs 3,088.8 crore.
  • Indostar Capital Finance: Board approved raising Rs 1,000 crore via issue of NCDs in various tranches.
  • Nifty Earnings Today: GAIL, Hero MotoCorp, BPCL, Grasim, Eicher Motors, Tata Steel
  • Non-Nifty Earnings Today: APL Apollo, Balkrishna Industries, City Union Bank, DCM Shriram, Engineers India, Godrej Industries, Kaveri Seed, Minda Corp, PFC, Praj Industries, Redington India, Prestige Estates, Safari Industries, Shankara Building Products, Sharda Cropchem, Shriram Transport Finance, Trent, Venky's

Earnings Reported After Market Hours

Ashok Leyland Q1FY21

  • Revenue down 88.5% to Rs 650.9 crore
  • Net loss of Rs 388.8 crore from net profit of Rs 230.2 crore
  • Ebitda loss of Rs 333.2 crore from Ebitda gain of Rs 537 crore
  • All numbers are standalone and compared on a year-on-year basis

Aurobindo Pharma Q1FY21

  • Revenue up 8.8% to Rs 5,924.8 crore
  • Net profit up 22.8% to Rs 780.6 crore
  • Ebitda up 9.7% to Rs 1,257.4 crore
  • Ebitda margin at 21.2% from 21.1%
  • All numbers are consolidated and compared on a year-on-year basis

Cummins India Q1FY21

  • Revenue down 63% to Rs 498.2 crore
  • Net profit down 63% to Rs 52.6 crore
  • Ebitda down 98.1% to Rs 2.9 crore
  • Ebitda margin at 0.58% from 11.3%
  • All numbers are standalone and compared on a year-on-year basis

Novelis Q1

  • Revenue down 17.1% to $2,426 million
  • Net loss of $79 million from net profit of $127 million
  • Adjusted Ebitda down 31.9% to $253 million
  • Ebitda margin at 10.4% from 12.7%
  • Novelis is the subsidiary of Hindalco

Balaji Amines Q1FY21

  • Revenue flat at Rs 233 crore
  • Net profit up 70.8% to Rs 31.6 crore
  • Ebitda up 43.1% to Rs 53.8 crore
  • Ebitda margin at 24.1% from 16.9%
  • Sales volume down 9% to Rs 18.3 MT
  • Lower raw material costs and other expenses aid margins
  • All numbers are consolidated and compared on a year-on-year basis

Tata Power Q1FY21

  • Revenue down 16.9% to Rs 6,453 crore
  • Net profit up 26.3% to Rs 206.6 crore
  • Ebitda down 24.8% to Rs 1,731.3 crore
  • Ebitda margin at 26.8% from 29.6%
  • Profit boosted owing to higher taxes in the base quarter
  • All numbers are consolidated and compared on a year-on-year basis

Brigade Enterprises Q1FY21

  • Revenue down 71.3% to Rs 203.3 crore
  • Net loss of Rs 52.7 crore from net profit of Rs 41.2 crore
  • Ebitda down 74% to Rs 47.4 crore
  • Ebitda margin at 23.3% from 25.7%
  • Residential sales down 64% to 3.94 lakh square feet
  • Realisations up 14% to Rs 5,956 per square feet
  • All numbers are consolidated and compared on a year-on-year basis

Aster DM Healthcare Q1FY21

  • Revenue down 13.2% to Rs 1,760.6 crore
  • Net loss of Rs 82.9 crore from net profit of Rs 3.3 crore
  • Ebitda down 36.2% to Rs 142.7 crore
  • Ebitda margin at 8.1% from 11%
  • All numbers are consolidated and compared on a year-on-year basis

Thermax Q1FY21

  • Revenue down 52.3% to Rs 664.9 crore
  • Net loss of Rs 15.3 crore from net profit of Rs 62.8 crore
  • Ebitda loss of Rs 11.5 crore from Ebitda gain of Rs 99.1 crore
  • Order booking down 50% to Rs 608 crore
  • All numbers are consolidated and compared on a year-on-year basis

Gulf Oil Lubricants Q1FY21

  • Revenue down 45.3% to Rs 241.2 crore
  • Net profit down 64.7% to Rs 17.2 crore
  • Ebitda down 67.3% to Rs 25.5 crore
  • Ebitda margin at 10.6% from 17.7%
  • All numbers are standalone and compared on a year-on-year basis

Hitachi ABB Power Grids Q2CY20

  • Revenue down 41.7% to Rs 633.2 crore
  • Net profit down 82% to Rs 10.9 crore
  • Ebitda down 70.8% to Rs 34.3 crore
  • Ebitda margin at 5.4% from 10.8%
  • Orders at Rs 567.3 crore from Rs 862.3 crore
  • All numbers are standalone and compared on a year-on-year basis

GSFC Q1FY21

  • Revenue down 4.9% to Rs 1,636.6 crore
  • Net profit down 27.5% to Rs 30.3 crore
  • Ebitda down 26.9% to Rs 90.2 crore
  • Ebitda margin at 5.5% from 7.1%
  • All numbers are consolidated and compared on a year-on-year basis

Aarti Industries Q1FY21

  • Revenue down 9.7% to Rs 937.3 crore
  • Net profit down 40.7% to Rs 81.9 crore
  • Ebitda down 27.3% to Rs 181.9 crore
  • Ebitda margin at 19.4% from 24.1%
  • All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

Antique Stock Broking On Bharat Forge

  • Upgrade to hold from sell
  • Price target raised to Rs 457 from Rs 197
  • Early signs of cyclical revival in a few segments
  • Near Ebitda-breakeven despite 71% revenue drop was commendable
  • See improvement in class 8 truck order book and likely revival in domestic truck market from Q3
  • European operations are likely to continue making losses
  • Cyclical dependency to continue
  • Stock price will be more inclined towards cycle rather than financials

CLSA On Bharat Forge

  • Upgrade to buy from underperform
  • Price target raised to Rs 535 from Rs 325
  • Positive Ebitda despite decline in revenue
  • Significant cuts in fixed costs with more to follow
  • Business metrics for end markets appear to be bottoming
  • Expect a significant uptick in its passenger vehicle revenue
  • Should benefit from demand recovery and orders from new entrants in India
  • Continuation of a synchronized global downturn in FY22 will be a key risk

CLSA On Tata Power

  • Buy rating maintained
  • Price target of Rs 72
  • Going into overdrive to correct a decade of underperformance
  • Thermal power business did well with a turn in the Mundra plant
  • New corporate structure to save funding costs and tax

Morgan Stanley On Tata Power

  • Overweight rating maintained
  • Price target of Rs 62
  • Renewable Invit to be completed by end-FY21
  • Merger of subsidiaries with parent will lead to tax savings
  • Positives include lower losses at Mundra, better profits from Indonesian coal assets and stronger collection in distribution business
  • Under construction renewable assets will need Rs 3,000 crore capex over next 12-18 months
  • Risks to upside: Better working capital management, mundra resolution, faster sale of non-core assets
  • Risks to Downside: Prolonged delay / inability to sell non-core assets, rise in the price of imported coal, worse-than-expected working capital issues

Macquarie On Hindalco

  • Outperform rating maintained
  • Price target of Rs 190
  • Cautiously optimistic as uncertainty remains for H2FY21
  • Beverage can and auto segment demand healthy
  • Risks for FY22E Ebitda / tonne target of $450-475 are skewed to the upside
  • Increase in metal prices and premiums further positive for scrap spreads

Who’s Meeting Whom

  • Asian Paints: To meet UBS AMC, Capital International and other investors between August 14-20.
  • Sundram Fasteners: To meet SBI Mutual Fund and Nippon India Mutual Fund on August 13.

Trading Tweaks

  • AGM Date: Escorts, Dabur, TTK Prestige, Bandhan Bank, Jindal Stainless, TRF, Astral Poly Technik, Indian Overseas Bank, Bodal Chemicals, ICICI General Insurance, Granules, L&T, JSW Energy, Godrej Industries, Page Industries, Rain Industries, Shoppers Stop
  • Fund Raising: Amrutanjan Healthcare, Prism Johnson
  • Price Band Revised From 10% To 5%: Aurionpro Solutions, Century Extrusions, GE T&D India, Globus Spirits
  • Price Band Revised From 20% To 10%: Eros International Media, Essar Shipping, HLE Glascoat
  • Price Band Revised From 20% To 5%: TRF
  • Move Into ASM Framework: Majesco, Ramco Systems, Navin Fluorine, Vaibhav Global, Essar Shipping, Eros International Media
  • Move Into Short Term ASM Framework: Himachal Futuristic Communications, HIL, Emami, GVK Power & Infrastructure, Allsec Technologies, Welspun India, Prince Pipes And Fittings
  • Move Out Of Short Term ASM Framework: Dishman Carbogen Amcis, Alpa Laboratories, InfoBeans Techno, Eris Lifesciences

Insider Trades

  • Surya Roshni: Promoter Surya Roshni Employees Welfare Trust acquired 1.76 lakh shares between August 7-11
  • Trident: Promoter Trident Capital acquired 7.2 lakh shares on August 11.
  • Mindtree: Promoter Akila Krishnakumar sold 84,504 shares between August 6-7.
  • SBI Cards and Payment Services: Promoter SBI Life Insurance sold 42,744 shares on August 11

(As Reported On August 12)

Money Market Update

  • The currency ended flat but with modest losses on Wednesday, snapping a two-day gaining streak.
  • The rupee ended at 74.82 against the U.S. Dollar as compared to Tuesday's close of 74.77.
  • Rupee ended as the third worst performing currency in Asia, behind the Japanese Yen and the Indonesian Rupiah.
All You Need To Know Going Into Trade On August 13

F&O Cues

  • Nifty August futures closed at 11,315; premium of 7 points from 25.5 points
  • Nifty August futures add 2.3% and 2.3 lakh shares in Open Interest
  • Nifty Bank August futures closed at 22,291; premium of 27 points from 83 points
  • Nifty Bank August futures add 6% and 94,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.51
  • Enters F&O Ban: Aurobindo Pharma
  • Stocks In F&O Ban: Aurobindo, Bata, Canara Bank, Century Textiles, Glenmark, Indiabulls Housing, Muthoot Finance, SAIL, Vedanta, Vodafone Idea

Nifty Weekly Expiry: August 13

  • Maximum Open Interest on Call side at 11,500 strike (39 lakh shares)
  • Maximum Open Interest on Put side at 11,200 strike (33 lakh shares)
  • Active Options: 11,300 Put (7.1 lakh shares) and 11,300 Call (8.4 lakh shares)

Nifty Monthly Expiry: August 27

  • Maximum Open Interest on Call side at 11,500 strike (20.8 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (30.6 lakh shares)
All You Need To Know Going Into Trade On August 13
BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.