All You Need To Know Going Into Trade On January 18
Light trails from passing traffic illuminates a road in Tokyo, Japan. (Photographer: Akio Kon/Bloomberg)

All You Need To Know Going Into Trade On January 18

Asian equities have begun the new trading week with losses owing to lack of risk appetite among investors.

Weakness in South Korean equities continue after benchmarks on Wall Street underperformed on Friday.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.4% to 14,406 as of 6:55 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:

  • Futures on the Dow Jones are currently trading 30 points lower. The index fell 0.6% on Friday.
  • U.S. equities and bond markets will be shut today on account of the Martin Luther King Jr. holiday.
  • Traders are looking forward to data on the progress in China's economic recovery.
  • “Markets needed a breather or even a pull back to justify reflationary expectations,” said Ben Emons, managing director of global macro strategy at Medley Global Advisors.
  • Some Huawei suppliers, including Intel Corp., found their licenses revoked during the final days of the Trump administration, Reuters reported, citing unidentified people familiar with the matter.
  • Yield on the 10-year treasuries ended at 1.08% on Friday.
  • West Texas Intermediate crude fell 0.5% to $52.08 per barrel while Gold fell 1% to $1,812.8/Oz.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On January 18

Earnings Fineprint: HDFC Bank Q3FY21 (Standalone, YoY)

  • Net Interest Income up 15% at Rs 16,317.6 Crore Vs Rs 14,172.9 Crore (BBG Estimate: Rs 15,400 Crore)
  • Net profit up 18% at Rs 8,758.3 Crore Vs Rs 7,416.5 Crore (BBG Estimate: Rs 7,641 Crore)
  • Gross NPA at 0.81% Vs 1.08% (QoQ)
  • Net NPA at 0.09% Vs 0.17% (QoQ)
  • Provisions at Rs 3,414.1 Crore Vs Rs 3,703.5 Crore (QoQ) and Rs 3,043.5 Crore (YoY)
  • Proforma gross NPA ratio and net NPA ratio would have been 1.38% and 0.40% respectively as on December 31, 2020.
  • HDB Financial Services reports loss after rise in bad loans.
  • Post-tax loss at Rs 44.3 crore vs profit of Rs 216.7 crore last year.
  • Pro forma gross NPA ratio at 5.9% as of December 2020 vs 5.1% as of September 2020 and 2.9% as of December 2019.
  • Provisions and contingencies at Rs 818.8 crore.

Also read: HDFC Bank Q3 Results: Net Profit Up 18% 

Stocks To Watch

  • HDFC Bank: Chief Credit Officer Jimmy Tata sold 1,400 equity shares of the bank. Audit committee concluded that this was an inadvertent trade without intent to violate the bank's share dealing code or SEBI regulations. Imposed a penalty of Rs 10.2 lakh on Tata for violation of bank's PIT regulations.
  • Metropolis Healthcare: To acquire 100% equity in Dr. Ganesan's Hitech Diagnostic Centre in a cash and stock deal. The cash consideration will be Rs 511 crore and the company will issue up to 4.95 lakh equity shares on a preferential basis to the promoters of the company. The cash consideration will be funded through internal accruals and debt worth up to Rs 300 crore. Acquisition to allow metropolis to increase its B2C business in focus cities of Chennai and Bengaluru. Metropolis will get access to 31 laboratories and 68 collection centers of Hitech. The acquisition is likely to be completed within three months.
  • Dr Reddy's Laboratories: Gets approval from the Drug Control General of India to conduct phase 3 clinical trial for the Sputnik V vaccine in India. This will be conducted on 1,500 subjects as part of the randomised, double-blind, parallel-group, placebo-controlled study in India.
  • Wipro: Has been chosen as the strategic technology services partner by Fiat Chrysler Automobiles. To establish its first Global Digital Hub in Hyderabad. To source and build a talent pool of over 1,000 skilled consultants and technologists for the digital hub.
  • Piramal Enterprises: Piramal Group has won the bidding for DHFL. The group received 93.5% votes, while Oaktree Capital received 45% votes. Creditors representing 6.5% of the voting process abstained from casting a vote. A resolution plan needs minimum 66% vote to get approval from the committee of creditors, according to people in the know.
  • SAIL: Retail portion of the OFS was subscribed 5.22 times on Friday. Investors bid for nearly 12.5 crore shares as compared to the 5.16 crore shares on offer.
  • JBM Auto: Received orders to supply 700 JBM 'CITYLIFE' fully AC BS-VI CNG low-floor buses from the Delhi Transport Corporation. Orders will be executed in the coming months. Size of the order is undisclosed.
  • CESC: Board approves proposal to acquire 23.18% stake in Noida Power Company Ltd., an associate company. This will be done for a cash consideration of Rs 325 per share of NPCL and the transaction is expected to be completed within a month. Post this, CESC's indirect holding will rise to 72.73%. This is in line with the company's rationale to reorient and reorganise the company's power distribution business.
  • Glenmark Pharmaceuticals: Has redeemed U.S. $10,000,000 in aggregate principal amount of its 2021 Notes, representing approximately 5% of the aggregate principal amount of the 2021 Notes at the time of initial listing. Further, no amount is outstanding in connection with the 2021 Notes.
  • Page Industries: A meeting of the Board of Directors of the company is scheduled on February 10 to consider declaration of a second Interim dividend for the Financial Year 2020-21. The Record Date for the purpose of payment of the dividend, if any will be February 19, 2021.
  • Sundaram Finance: A meeting of the Board of Directors is scheduled on January 20 to consider an interim dividend for the Financial Year 2020-21 and fixing the Record Date for the same.
  • Indian Energy Exchange: A meeting of Board of Directors is scheduled on January 21 to consider declaration of interim dividend for the Financial Year 2020-21. The record date for the purpose of determining the entitlement of the shareholders for the interim dividend, if any will be January 30, 2021.
  • Shankara Building Products: As part of the operations rationalisation program, the company has decided to shut retail stores at Rourkela, two of them in Bengaluru and one in Hyderabad. Not finding substantial scale-up opportunities in the medium-term was cited as the rationale behind the closure. Net store count post this will be 97.
  • GE T&D India: Approved to sell its Global Engineering Operations division to GE India Industrial Pvt. Ltd. together with the assets and manpower comprised therein along with its corresponding liabilities on a slump sale basis. The said business contributed to less than 3% of the total turnover. The company will receive a total consideration of Rs 87.3 crore and the transaction is likely to be completed by March 31, 2021. This falls under the purview of the related party transaction.
  • Star Cement: Begins commercial production at the company's new grinding unit at Siliguri in West Bengal. Annual capacity of the unit is 2 MTPA.
  • lndlnfravit Trust: Has appointed Pawan Kant as the new CEO of the company from April 2021 in place of J Subramanian.
  • Allcargo Logistics: Has appointed Suresh Kumar R as CEO from January 15, 2021.
  • Mastek: CEO John Owen to relinquish his role as Group CEO on January 18, 2021. Vice Chairman & Managing Director Ashank Desai will assume the responsibilities of the Group CEO until a new Group CEO is appointed.
  • Non-Nifty Earnings Today: Indiabulls Real Estate, IndiaMART InterMESH, IRB Infrastructure Developers, Maharashtra Scooters, Mindtree, Rallis India, Snowman Logistics, Trident.

Earnings Post Market Hours

L&T Finance Holdings Q3FY21 (Consolidated, YoY)

  • Net Interest Income up 2% at Rs 1,779.6 crore Vs Rs 1,741.1 crore (BBG Estimate: Rs 1,513.5 crore)
  • Net profit down 51% at Rs 287.7 crore Vs Rs 591.5 crore (BBG Estimate: Rs 356.4 crore)
  • Gross stage 3 assets at 5.12% from 5.19% (QoQ)
  • Net stage 3 assets at 1.92% from 1.67% (QoQ)
  • Additional provisions of Rs 1,739 crore on standard book as of Q3FY21
  • Provision Coverage Ratio at 64% from 57%
  • Restructured assets worth Rs 213 crore in Q3FY21, against which 10% provision is held
  • Farm equipment disbursements up 43% QoQ at Rs 1,554 crore
  • Two-wheeler disbursements up 50% QoQ at Rs 1,652 crore
  • Highest quarterly disbursements since Q1FY20; up 51% QoQ
  • Highest quarterly disbursements in farm equipment and two-wheeler finance since FY17
  • Collections at Rs 11,137 crore Vs Rs 10,296 crore in Q2FY21

Apollo Pipes Q3FY21 (Standalone, YoY)

  • Revenue up 28% at Rs 128 crore Vs Rs 100 crore
  • Net profit more than doubles to Rs 16.3 crore Vs Rs 6.7 crore
  • Ebitda more than doubles to Rs 25.43 crore Vs Rs 10.6 crore
  • Ebitda margin at 19.9% Vs 10.6%
  • Sales volume up 7% at 11,445 MTPA
  • Healthy contribution from cPVC, HDPE pipe and value-added product segments of fittings aided sales volume growth
  • Expect to ramp-up utilisation at Dadri, Ahmedabad and Tumkur during the quarters ahead
  • On track to commission the greenfield facility at Raipur by March 2021
  • Planned capacity additions to help improve sales momentum

Shoppers Stop Q3FY21 (Standalone, YoY)

  • Revenue down 29% at Rs 707.6 crore Vs Rs 994 crore (BBG Estimate: Rs 684.9 crore)
  • Net loss widens to Rs 20.7 crore from Rs 5.2 crore (BBG Estimate: Rs 38.1 crore)
  • Ebitda down 52% at Rs 94.9 crore Vs Rs 197.5 crore (BBG Estimate: Rs 80.8 crore)
  • Ebitda margin at 13.4% Vs 19.9%
  • Conversion and memo sizes continue to be higher than last year
  • East zone performed better along with tier-2 and tier-3 cities as compared to Metros. Delhi NCR impacted due to local unrest.
  • Omni-channel sales reported 3x growth year-on-year; contributing 6% to overall sales
  • Private brands saw volume growth of 4%
  • Repaid debt worth Rs 125 crore using proceeds of the rights issue. Back to being a debt-free company after two quarters

Pledge Share Details

  • Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 9.37 lakh shares between January 13-14.
  • Mangalore Chemials & Fertilizers: Promoter Zuari Agro Chemicals revoked pledge of 50 lakh shares on January 11.
  • Jindal Steel & Power: Promoter Gagan Infraenergy revoked pledge of 15 lakh shares on January 13. Promoter Glebe Trading created a pledge of 4 lakh shares on January 12.
  • Ajanta Pharma: Promoter Ravi Agrawal revoked pledge of 6.22 lakh shares between January 13-14.
  • Adani Ports And Special Economic Zone: Promoters Gautam Adani and Rajesh Adani revoked pledge of 67.01 lakh shares between January 13-14.

As Reported On January 15.

Bulk Deals

  • Aptech: S&D Share & Stock bought 2.21 lakh (0.55%) at Rs 159.31 per share.
  • Happiest Minds Technologies: BNP Paribas Arbitrage bought 9.25 lakh shares (0.63%) at Rs 368.55 per share.
  • SAIL: Tower Research Capital Markets India bought 2.38 crore shares (0.58%) at Rs 70.24 per share and sold 2.52 crore shares (0.61%) at Rs 70.32 per share.
  • Tata Steel Long Products: Rohan Hegde bought 2.37 lakh shares (0.53%) at Rs 843.18 per share.
  • Tata Motors: Tower Research Capital Markets India bought 1.97 crore shares (5.57%) at Rs 255.52 per share and sold 2.07 crore shares (5.85%) at Rs 255.67 per share.

Who’s Meeting Whom

  • Advanced Enzyme Technologies: To meet IIFL AMC on January 18.

Trading Tweaks

  • Ex-Date Buy Back: Archidply Industries
  • Price Band Revised From 10% To 5%: Anant Raj
  • Price Band Revised From 20% To 10%: MSTC, Tata Steel Long Products.
  • Move Into ASM Framework: Ashapura Minechem, Tanla Platforms, Jaiprakash Associates
  • Move Out Of ASM Framework: Indian Terrain Fashions, Jain Irrigation Systems, Laurus Labs, Blue Dart.

Money Market Update

  • The currency ended at 73.04 against the U.S. Dollar as compared to Thursday's close of 73.03.
  • The rupee was the best performing currency in Asia for the week.

F&O Cues

  • Nifty January futures end at 14,460; premium of 27 points
  • Nifty January futures shed 3.2% and 4.25 lakh shares in Open Interest
  • Nifty Bank January futures end at 32,314; premium of 68 points
  • Nifty Bank January futures shed 3.5% and 49,075 shares in Open Interest
  • Nifty Put-Call Ratio at 1.49
  • Enters F&O Ban: SAIL, Vodafone Idea
  • Stocks In F&O Ban: BHEL, SAIL, Vodafone Idea

Nifty: January 21 Expiry

  • Maximum Open Interest on Call side at 14,600 strike (39.5 lakh shares)
  • Maximum Open Interest on Put side at 14,000 strike (17.2 lakh shares)
  • Active Options: 14,600 Call (+22.1 Lakh Shares) and 13,700 Put (+6.8 Lakh Shares)

Nifty: January 28 Expiry

  • Maximum Open Interest on Call side at 15,000 strike (24.8 lakh shares)
  • Maximum Open Interest on Put side at 14,000 strike (31.1 lakh shares)
All You Need To Know Going Into Trade On January 18
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