All You Need To Know Going Into Trade On January 11
Asian equities are off to a mixed start to the new trading week amidst a rise in the U.S. Dollar. Traders weigh President-elect Joe Biden's pledge to detail huge economic aid to counter the effects of the pandemic.
Equities in South Korea are outperforming while those in Australia trade lower. Japanese markets are shut on account of a holiday.
The yen fluctuated after Japanese authorities found a coronavirus variant similar to those in the U.K. and South Africa.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.6% to 14,458 as of 6:50 a.m.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are currently trading 70 points lower. The index notched another record on Friday, ending with gains of 0.2%.
- President-elect Joe Biden on Friday said that he will lay out proposals this week for fiscal support to counter the economic toll of Covid-19.
- “After being bullish for several months, we are definitely becoming more cautious on the stock market up at these levels,” Matt Maley, the chief market strategist at Miller Tabak + Co., wrote in a note, adding that the bulk of the S&P 500 rally from March lows is “behind us.”
- The Trump administration on Saturday said that the U.S. will remove self-imposed curbs on diplomatic interactions with Taiwan.
- Firms like JPMorgan, Citigroup and Wells Fargo are some of those set to report earnings this week.
- Yields on the 10-year treasuries stood at 1.12% on Friday. They will not trade until London open.
- West Texas Intermediate crude rose 0.1% to $52.28 per barrel.
Get your daily fix of the global markets here.
Earnings Fineprint: TCS Q3FY21
- U.S. Dollar revenue up 5.1% to $5,700.6 million
- Revenue up 4.7% to Rs 42,015 crore
- Net profit up 3.2% to Rs 8,701 crore
- Operating profit up 6.4% to Rs 11,184 crore
- Operating margins expand to 26.6% from 26.2%
- Reported deal wins worth $6.8 billion during the quarter
- All sectors, including BFSI and manufacturing saw growth in revenue as compared to the previous quarter
- Declared interim dividend of Rs 6 per share
- Guides for double-digit growth for the year ending March 2022.
- All numbers are compared on a quarter-on-quarter basis
Earnings Fineprint: Avenue Supermarts Q3FY21
- Revenue up 11% to Rs 7,542 crore
- Net profit up 16% to Rs 447 crore
- Operating profit up 15% to Rs 689.12 crore
- Ebitda margin at 9.1% from 8.8%
- Overall sales and sales mix trending very close to usual times
- Segments taking a longer time to recover include apparel, laundry, footwear, travel and relevant out-of-home usage items
- Out of the 221 stores, 162 are older than two years of more did 96% of the sales compared to a year earlier
- All numbers are compared on a year-on-year basis
Stocks To Watch
- Vedanta: Promoter group launches open offer to buy 10% stake in the company. The parent has offered to buy up to 37.17 crore shares from public shareholders at Rs 160 apiece, which is a 12% discount to Friday's closing price.
- Tata Steel: Domestic and European sales volumes in Q3 constrained by lower opening inventory and Covid-19 impact. India production volumes up 3% to 4.60 million tons in Q3FY21 from 4.47 million tons in Q3FY20. India delivery volumes down 4% to 4.66 million tons from 4.85 million tons. Europe production volumes up 4% to 2.61 million tons versus 2.51 million tons year-on-year. Europe delivery volumes down 10% to 2.11 million tons from 2.35 million tons. Exports shrink to 11% of overall deliveries. Automotive & Special Product segment deliveries grew 48% quarter-on-quarter on the back of improvement in overall demand. B2C brands Tata Shaktee and Tata Tiscon achieved best-ever quarterly sales. Industrial products & projects segment deliveries were marginally lower. Gross revenue earned through 'Aashiyana' - the online platform for Individual Home-Builders rose 134% year-on-year to Rs 222 crore.
- Tata Steel BSL: Sales volumes constrained by lower production and lower opening inventory post strong sales in Q2FY21. Deliveries down 10% QoQ and 8% YoY to 1.149 million tonnes. Domestic deliveries up 7% QoQ to 947 KT. Exports reduced to 18% from 31% in Q2FY21
- Tata Steel Long Products: Achieved highest ever quarterly crude steel production on the back of debottlenecking and arcing despite maintenance shutdowns. Deliveries down 10% QoQ but rose 2% YoY to 166 KT. Achieved best ever quarterly rolled product steel sales with 17% growth QoQ. Alloy wire rod sales volumes were also the best ever with 26% QoQ growth. DRI production lower due to maintenance shutdowns. Sales volumes were in-line with lower production.
- Equitas Small Finance Bank: The company in its third quarter business update has reported a 19% year-on-year growth in gross advances to Rs 17,385 crore. The growth quarter-on-quarter stood at 4%. Total deposits rose 51% year-on-year and 23% sequentially to Rs 15,862 crore. CASA rose 81% year-on-year and 22% sequentially to Rs 3,967 crore. CASA ratio stood at 25%, unchanged from Q2FY21.
- KEC International: Wins orders worth Rs 1,024 crore across various businesses. T&D business wins orders in India, Middle East, Africa and the Americas. Railways business wins order for a doubling project, civil business wins order for infra works in the cement segment, solar business wins order for 13.60 MWp rooftop solar project in India while the cables business wins orders for various types of cables/cabling projects in India and overseas.
- Fine Organics: Maharashtra Pollution Control Board through its letter on January 8 has allowed the company to continue manufacturing activities at its Ambernath unit.
- Apollo Microsystems: Has bagged a supply order from Bharat Electronics worth Rs 49.86 crore with a repeat order clause, for maximum of 120% of the units originally ordered as per the terms and conditions.
- Future Enterprises: CARE Ratings has downgraded the credit rating of the NCD Issue (Series XXV -A and XXV- B) of the company to D from C.
- Narayana Hrudayalaya: The company has discontinued its operations of the Heart Centre which was operated in the premises of IQ City Hospital in Durgapur, West Bengal under an agreement with IQ City Foundation.
- Bodal Chemicals: National Company Law Tribunal, Ahmedabad Bench, has approved the Scheme of Amalgamation of Trion Chemicals, a wholly-owned subsidiary of company, with Bodal Chemicals.
- Prestige Estates Projects: Has acquired 50% equity stake in Pandora Projects.
- Jindal Stainless: India Ratings & Research and CARE have upgraded the company's rating from BBB to BBB+.
- Jindal Stainless (Hisar): CARE Ratings has revised the credit rating of long-term bank facilities of Rs 2,811.46 crore to A- and the rating of short-term bank facilities of Rs 2,150 crore to A2+.
- Karur Vysya Bank: Has revised the Base Rate to 8.25% from 8.10% and BPLR rate to 13.25% from 13.10%.
- Reliance Infrastructure: Has completed the stake sale of its entire 74% shareholding in Parbati Koldam Transmission Company to India Grid Trust. The total consideration received from this transaction is Rs 900 crore, with this the consolidated debt of the company will come down by 6% from Rs 14,000 crore to Rs 13,100 crore.
- Non-Nifty Earnings Today: GNA Axles, Dolat Investments
Pledge Share Detail
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 39 lakh shares on January 6.
As Reported On January 8.
- Rail Vikas Nigam: Adroit Financial Services bought 1.32 crore shares (0.64%) at Rs 32.69 per share and sold 1.30 crore shares (0.63%) at Rs 32.71 per share.
- Jammu & Kashmir Bank: Swapnil Mehta bought 36.70 lakh shares (0.51%) at Rs 26.54 per share and sold 21.70 lakh shares at Rs 26.48 per share.
- Southern Petrochemicals: Ankita Shah bought 14.90 lakh shares at Rs 28.23 per share and sold 8.14 lakh shares at Rs 27.38 per share.
Who’s Meeting Whom
- Mahindra & Mahindra: To meet APG Asset Management and HDFC Life Insurance on January 11. To meet Antique Institutional Equities and ICICI Pru Life Insurance on January 12 and White Oak Capital Management on January 13.
- Price Band Revised From 10% To 5%: Jain Irrigation Systems
- Price Band Revised From 20% To 10%: BLS International Services
- Ex-Date Interim Dividend: Refex Industries
- Record Date Interim Dividend: Rites
- Move Into ASM Framework: Ruchi Soya Industries, Birlasoft, Firstsource Solutions.
- Move Out Of ASM Framework: Jindal Poly Films, SMS Pharmaceutical, Kopran, GE Power India, Vidhi Specialty Food Ingredients.
- Move Into Short-term ASM Framework: Hindustan Zinc, BLS International Services.
- Move Out Of Short-term ASM Framework: Borosil, Snowman Logistics, Jaiprakash Power Ventures.
Money Market Update
- The currency ended at 73.24 against the U.S. Dollar as compared to Thursday's close of 73.32.
- Nifty January futures end at 14,374; premium of 27 points
- Nifty January futures add 7.9% and 9.75 lakh shares in Open Interest
- Nifty Bank January futures end at 32,163; premium of 79 points
- Nifty Bank January futures shed 2.6% and 45,525 shares in Open Interest
- Stock In F&O Ban: SAIL
Nifty: January 14 Expiry
- Maximum Open Interest on Call side at 14,500 strike (25.3 lakh shares)
- Maximum Open Interest on Put side at 14,200 strike (37.1 lakh shares)
- Active Options: 14,200 Call (-9.6 lakh shares) and 14,200 Put (+21.5 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 14,000 strike (18.6 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (24.2 lakh shares)