All You Need To Know Going Into Trade On Jan. 22

Asian stocks began Wednesday mixed as investors mull reports that China’s coronavirus had migrated to the U.S. mainland.

Early trading Wednesday suggested an easing in the risk-off moves. Stocks in Japan and South Korea were little changed, along with U.S. equity futures, while Australian shares edged up. Futures in Hong Kong pointed higher after a sharp slide in stocks there yesterday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.07 percent to 12,199 as of 6:50 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

Here’s a quick look at all that could influence equities today.

• U.S. equities fell on reports that a deadly respiratory illness that originated in China had migrated to the U.S., spurring concern about the potential economic impact.
• The pound advanced after the U.K.’s employment rate hit a record high, weakening the case for an imminent interest-rate cut.
• Oil erased some earlier declines as concern mounted about supply disruptions in Libya and Iraq despite ample output from other major producers.

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Earning Reactions To Watch

Zee Entertainment Enterprises (Q3, YoY)

• Revenue fell 5.5 percent to Rs 2,049 crore. (Estimate: Rs 2,116 crore)
• Ebitda fell 34 percent to Rs 526 crore. (Estimate: Rs 597 crore)
• Net profit fell 38 percent to Rs 349 crore. (Estimate: Rs 428 crore)
• Margin stood at 25.5 percent versus 36.6 percent. (Estimate: 28 percent)

Polycab (Q3, YoY)

• Revenue rose 23.8 percent to Rs 2,507.3 crore.
• Net profit rose 13.2 percent to Rs 218.8 crore.
• Ebitda rose 6.8 percent to Rs 339.1 crore.
• Margin stood at 13.5 percent versus 15.7 percent.

Havells (Q3, YoY)

• Revenue fell 9.9 percent to Rs 2,269.9 crore. (Estimate: Rs 2,614.1 crore)
• Net profit rose 2.4 percent to Rs 200.4 crore. (Estimate: Rs 209.8 crore)
• Ebitda fell 9.2 percent to Rs 267.4 crore. (Estimate: Rs 295.3 crore)
• Margin stood at 11.8 percent versus 11.7 percent. (Estimate: 11.3 percent)

HDFC AMC (Q3, YoY)

• Revenue rose 10 percent to Rs 524.7 crore.
• Net profit rose 44.9 percent to Rs 352.6 crore.
• Quarterly Average AUM rose 14 percent to Rs 382,500 crore.

Tejas Networks (Q3, YoY)

• Revenue fell 52.8 percent to Rs 87 crore.
• Net loss at Rs 112.1 crore vs Net Profit at Rs 32.8 crore.
• Ebitda fell 98.9 percent to Rs 0.4 crore.
• Margin stood at 0.5 percent versus 19.7 percent.

IndiaMART InterMESH (Q3, YoY)

• Revenue rose 23.4 percent to Rs 164.9 crore.
• Net profit rose 2.2 times to Rs 62 crore.
• Ebitda rose 58.5 percent to Rs 43.6 crore.
• Margin stood at 26.4 percent versus 20.6 percent.

Snowman Logistics (Q3, YoY)

• Revenue fell 1 percent to Rs 58.8 crore.
• Net loss was at Rs 3.4 crore versus net profit of Rs 2.4 crore.
• Ebitda fell 5.6 percent to Rs 13.5 crore.
• Margin stood at 23 percent versus 24.1 percent.

Jay Bharat Maruti (Q3, YoY)

• Revenue fell 12.1 percent to Rs 402.7 crore.
• Net profit fell 39.3 percent to Rs 6.8 crore.
• Ebitda fell 11.7 percent to Rs 34.6 crore.
• Margin was flat at 8.6 percent.

Nifty Earnings To Watch

• Larsen & Toubro
• Asian Paints
• Axis Bank

Other Earnings To Watch

• Raymond
• RBL Bank
• Ujjivan Small Finance Bank
• SBI Life Insurance
• Alembic Pharmaceuticals
• Agro Tech Foods
• AU Small Finance Bank
• CEAT
• CreditAccess Grameen
• Cigniti Technologies
• Eimco Elecon
• Gateway Distriparks
• Genus Power Infrastructures
• Hindustan Media Ventures
• Hi-Tech Pipes
• IIFL Wealth Management
• India Grid Trust
• Motilal Oswal Financial Services
• Rane Engine Valve
• Sharda Cropchem
• Supreme Petrochem
• Syngene International
• Tata Communications
• VST Industries

Brokerage Radar

Goldman Sachs on Apollo Hospitals

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 1,920 from Rs 1,490.
• Strong execution of more than 10 new hospitals.
• Encouraging patient volumes in Proton Center.
• Promoter pledge to reduce post Apollo Munich transaction.

Goldman Sachs on Fortis Healthcare

• Upgraded to ‘Buy’ from ‘Neutral’; hiked price target to Rs 176 from Rs 150.
• Sustainable recovery in hospitals; growth pick-up in diagnostics.
• See scope for more cost cuts.
• Market underappreciates the scope and magnitude of turnaround underway.

Citi on Havells India

• Downgraded to ‘Neutral’ from ‘Buy’; cut price target to Rs 636 from Rs 766.
• Very weak revenue in the third quarter; saw de-growth in switchgears, lighting and cables.
• Llyod AC performance was reasonable but LED TVs led to a decline in revenue.
• Margin and balance sheet did well though underlying the quality of business.

Morgan Stanley on Tata Global

• Maintained ‘Underweight’; hiked price target to Rs 323 from Rs 165.
• Diversification of the business is a long-term positive but has a wide risk-reward skew.
• Negatives: weak return ratios, high commodity dependence and large presence in relatively weak growth geographies/categories.

Bernstein on Reliance Industries

• Upgraded to ‘Outperform’ from ‘Market Perform’; hiked price target to Rs 1,890 from Rs 1,370.
• India's answer to Exxon, AT&T and Amazon rolled into one.
• Fintech is another area in which Reliance is well-positioned.
• Media offers unique opportunities and synergies with the telco.
• Telecom will overtake energy to be the largest contribution of Ebitda by March 2023.

On HDFC AMC

JPMorgan

• Maintained ‘Neutral’; hiked price target to Rs 2,900 from Rs 2,700.
• December quarter review: AUM growth slows but PMS income aids profit growth.
• Market share moderated across the board.
• Underlying retail investor base was intact.

Morgan Stanley

• Maintained ‘Equal-weight’ with a price target of Rs 3,300.
• Reported good numbers driven by higher revenues.
• Given weak equity flows, it offers limited upside from higher earnings/valuation.
• Strong long-term fundamentals, equal-weight rating is more from a one-year perspective.

On ICICI Prudential

UBS

• Maintained ‘Buy’; hiked price target to Rs 590 from Rs 565.
• Margin performance sustained; non-linked segments growing well.
• Higher protection/lower ULIP driving up margin; co. targets doubling VNB.
• Expect further upside as APE growth improves and robust VNB growth continues.

Nomura

• Maintained ‘Neutral’; hiked price target to Rs 535 from Rs 510.
• VNB margins stable but savings growth and persistency remain key drags.
• Protection growth continues to drive VNB growth.
• Trends in ULIP growth and persistency remain weak.
• Growth revival needed for further re-rating.

Trading Tweaks

• Suven Lifesciences record date for demerger.
• Dynacons Systems & Solutions, GSS Infotech, Shreyas Shipping & Logistics to move into short term ASM Framework .
• Somany Home Innovation, Madhucon Projects to move out of short term ASM Framework.
• Jaiprakash Power Ventures, Shyam Century Ferrous , Zuari Agro Chemicals, Emami Realty, Technofab Engineering, Ashapura Minechem, Goa Carbon, Mirc Electronics to move into ASM Framework.
• Williamson Magor price band revised to 5 percent .

F&O Cues

Index Futures

• Nifty January futures closed at 12,203, premium of 33.3 points versus 38.6 points.
• Nifty January futures open interest down 1.2 percent, sheds 1.6 lakh shares in open interest.
• Nifty Bank January futures closed at 31,042.8, premium of 95.3 points versus 101.2 points.
• Nifty Bank January futures open interest up 2.4 percent, adds 34.5k shares in open interest.

Options

• Nifty PCR at 1.07 versus 1.13 (across all series).

Nifty Weekly Expiry: Jan. 23

• Max open interest on call side at 12,300 (27.8 lakh shares).
• Max open interest on put side at 12,000 (15.7 lakh shares).
• Open interest addition seen at 12,200C (+12.7 lakh shares), 12,250C (+6 lakh shares), 12,100P (+5.5 lakh shares).
• Open interest shedding seen at 12,300P (-6.3 lakh shares), 12,250P (-3 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (34.5 lakh shares)
• Max open interest on call side at 12,500 (34.5 lakh shares)..