All You Need To Know Going Into Trade On June 7

Asian stocks were steady early Monday after their U.S. peers climbed toward a record, aided by an American jobs report that eased some fears about the economy running too hot and stoking troublesome inflation.

Shares fluctuated in Japan and edged up in South Korea and Australia. U.S. equity contracts were slightly lower. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.4% to 15,768.50 as of 7:15 a.m.

Bitcoin traded around $36,000 after declining over the weekend amid a cryptocurrency crackdown in China. Crude oil and gold held on to gains.

The U.S. employment report showed an uptick in workers’ pay, adding to the debate about price pressures that has dominated markets. Speculation continues that the U.S. recovery from the pandemic may be strong enough to prompt Federal Reserve discussions in the weeks ahead on tapering asset purchases. Traders are looking ahead to the U.S. consumer-price index report this week for more clues.

Elsewhere, the Group of Seven rich nations secured a landmark deal that could help countries collect more taxes from big firms and enable governments to impose levies on U.S. tech giants such as Amazon.com Inc. and Facebook Inc.

Earnings Post Market Hours

Indigo Q4FY21 (Consolidated, QoQ)

• Net Loss of Rs 1,147 crore Vs Rs 620 crore
• Revenue down 26.3% to Rs 6,362 crore
• Net debt at Rs 29,859.7 crore as of the end of March
• Cash balance fell 8.9% to Rs 18,568.5 crore
• FY21 net loss at Rs 5,806 crore vs net profit of Rs 233 crore the previous fiscal.

Punjab National Bank Q4FY21 (Standalone, QoQ)

• NII down 17% at Rs 6,937.55 crore Vs Rs 8,312.98 crore
• Net profit up 16% at Rs 586.33 crore Vs Rs 506.03 crore
• GNPA at 14.12% Vs 12.99%
• NNPA at 5.73% Vs 4.03%
• Provisions down 14% at Rs 4,686.04 crore Vs Rs 5,432.60 crore

Jubilant Pharmova Q4FY21 (Consolidated, QoQ)

• Revenue down 11% at Rs 1,579.78 crore Vs Rs 1,771.34 crore
• Net profit down 31% at Rs 213.90 crore Vs Rs 309.93 crore
• Ebitda down 24% at Rs 374.62 crore Vs Rs 492.76 crore
• Ebitda margin at 23.7% Vs 27.8%
• Recommended a dividend of Rs 5 per share

Varroc Engineering Q4FY21 (Consolidated, QoQ)

• Revenue up 4% at Rs 3,619.20 crore Vs Rs 3,492.60 crore
• Net loss at Rs 144.30 crore Vs Rs 136.90 crore
• Ebitda down 48% at Rs 117 crore Vs Rs 226.2 crore
• Ebitda margin at 3.2% Vs 6.5%

MOIL Q4FY21 (Standalone, QoQ)

• Revenue up 68% at Rs 450.13 crore Vs Rs 267.70 crore
• Net profit up 1.26 times at Rs 116.03 crore Vs Rs 51.38 crore
• Ebitda up 1.05 times at Rs 155.88 crore Vs Rs 76.03 crore
• Ebitda margin at 34.6% Vs 28.4%
• Recommended final dividend of Rs 4.90 per share

IOL Chemicals & Pharmaceutical Q4FY21 (Consolidated, QoQ)

• Revenue down 10% at Rs 460.38 crore Vs Rs 513.01 crore
• Net profit down 34% at Rs 75.25 crore Vs Rs 114.81 crore
• Ebitda down 29% at Rs 111.17 crore Vs Rs 157.25 crore
• Ebitda margin 24.1% Vs 30.7%
• Recommended final dividend of Rs 2 per share

Stocks To Watch

• Axis Bank: Says report of Spandana Sphoorty buy speculative.
• Reliance Infrastructure: Approved fundraising of Rs 550.56 crore via preferential allotment to promoter group and Varde Investment Partners. The company will allot up to 8.88 crore shares or warrants convertible into equivalent number of shares. Funds to be utilised for 'long term resources, for general corporate purposes, fund future growth and also to reduce debt'.
• Punjab National Bank: To exit shareholding in Canara-HSBC-OBC life insurance venture in 12-18 months, said MD & CEO, CH Mallikarjuna Rao. Bank had been given forbearance till March 31, 2021, to exit second insurance business by the insurance regulator. Board has decided to exit the second business now that the merger process has been completed. PNB to continue holding its stake in PNB Metlife.

• RBL Bank: RBI has approved the reappointment of Vishwavir Ahuja as the MD and CEO of the bank for a period of one year effective June 30. Ahuja has been MD & CEO of RBL Bank since 2010.
• Bajaj Finance: Bounce rate in the April-June quarter is 1.08x of the rate in January-March due to the severity of the second wave, the company said. Expects gross and net NPAs to be higher in Q1 and Q2 due to collections constraints. The company expects incremental credit cost of Rs 1,100-1,300 crore than planned credit costs in FY22. Bajaj Finance's B2B and auto finance businesses were worst hit due to lockdown in April and May. Business volumes in these two businesses dropped to 70% of planned volumes in April and further dropped to 40% in May. The company estimates Rs 4,000-5,000 crore worth impact on AUM growth plan in FY22, with a higher impact in the first quarter.
• Jammu & Kashmir Bank: Approved raising up to Rs 500 crore by issue of equity shares through preferential allotment to Government of Jammu & Kashmir.
• Force Motors: The company's total production in May stood at 1,306 units. It reported domestic sales of 1,306 units and exports of 154 units.
• NHPC: Incorporated a joint venture company with Jammu and Kashmir State Power Development Corporation called Ratle Hydroelectric Power Corporation on June 1. The JV will implement Ratle Hydro-electric Project (850 MW) in the Chenab River Basin. NHPC will hold a 51% stake in the JV.
• Equitas Small Finance Bank: Collection efficiency in May stood at 77.84% compared to April’s 105.16%. Billing efficiency stood at 66.97% compared to April’s 84.68%.
• Welspun Corp: American Petroleum Institute has granted a license to manufacture SAWH pipes as per API specification 5L and to apply API monogram on the pipes effective May 26. This will help the company to cater to the needs of the Indian oil and gas market.
• Mishra Dhatu Nigam: Allotted 1000 commercial papers of Rs 5 lakh each aggregating to Rs 50 crore to Union Bank of India on a private placement basis.
• REC: Transferred entire shareholding of Fatehgarh Bhadla Transco and Sikar New Transmission-- the project-specific SPVs of the company-- at par value along with all their assets and liabilities to Power Grid Corporation of India on June 4.
• Ganesha Ecosphere: A major fire accident took place at the company's Kanpur Polyester Staple Fiber Unit on June 4 at around 3.30 am. No injuries were reported. The fire has caused major damage to the building, machinery, raw material and finished goods, the company said.
• Earnings: MRF, Central Bank Of India, Union Bank Of India, Mrs. Bectors Food Specialities, The New India Assurance Company, Dynamatic Technologies, Fairchem Organics, Jubilant Ingrevia, Seamec, SMC Global Securities, Yuken India

Offerings:

• Vijaya Diagnostic files DRHP, seek SEBI approval for IPO

Pledge Share Details

• JSW Steel: Promoters (JTPM Metal Traders and Siddeshwari Tradex) revoked pledge of 38.84 lakh shares between June 1-2. Promoter JSW Techno Projects Management created a pledge of 32.31 lakh shares on May 31.
• Jindal Steel & Power: Promoter Siddeshwari Tradex revoked pledge of 23 lakh shares between June 1-2.

As reported on June 4.

Bulk Deals

• Globus Spirits: Templeton Strategic Emerging Markets Fund sold 2 lakh shares (0.69%) at Rs 354.39 per share.
• Zee Entertainment Enterprises: Integrated Core Strategies Asia Pte sold 61.11 lakh shares (0.64%) at Rs 218.38 per share.

Insider Trades

• Aarti Industries: Promoter Shreya Suneja sold 5,000 shares on June 1.
• Asian Granito India: Promoters (Sureshbhai Patel and Chhayaben Patel) sold 4.95 lakh shares on June 3. Promoter Sureshbhai Patel bought 2.39 lakh shares on June 3.
• Dixon Technologies (India): Promoter Geeta Vaswani sold 1,000 shares on June 1.
• Godrej Agrovet: Promoter Godrej Industries bought 26,426 shares on June 1.
• GRM Overseas: Promoters (Mamta Garg and Atul Garg) bought 4,200 shares between June 2-3.
• Suprajit Engineering: Promoters (Aashish Rai, Akhilesh Rai and Ashutosh Rai) bought 15,894 shares between June 1-3.
• Ultramarine & Pigments: Promoters (Sridhar Sundararajan HUF, Kala Sundarvedha and S Narayan) sold 28,924 on June 3.

Who’s Meeting Whom

• Sudarshan Chemical Industries: To meet ICICI Prudential MF on June 7.
• Renaissance Global: To meet VK Capital on June 7.
• Blue Star: To meet Cooper Investors on June 7.
• Crompton Greaves Consumer Electricals: To meet Franklin Templeton on June 7 and BOB Capital and Ambit Capital on June 9.

Trading Tweaks

• Ex-Date Bonus Issue: Jay Bharat Maruti
• Ex-Date Dividend: Nelco
• Record Date Interim Dividend: City Union Bank, Manappuram Finance
• Move Out Of Short-Term ASM Framework: Hester Biosciences, Anjani Portland Cement, HT Media, Ruchi Soya Industries, Thangamayil Jewellery, AVT Natural Products, Navneet Education, TV Today Network, PNB Housing Finance
• Move Into ASM Framework: PNB Housing Finance, JSW Holdings, Shakti Pumps (India),

Money Market Update

The rupee ended at 73 against the U.S. Dollar on Friday as compared to Thursday's closing of 72.90.

F&O Cues

• Nifty June futures ended at 15,699; a premium of 28.75 points.
• Nifty June futures added 0.55% and 770 shares in Open Interest
• Nifty Bank June futures ended at 35,535; premium of 243.35 points
• Nifty Bank June futures added 7.10% and 4,802 shares in Open Interest
• Securities added to ban list: Indiabulls Housing Finance
• Securities that continue to be on the ban list: PNB, Sun TV and SAIL
• Securities removed from ban list: Bank of Baroda