All You Need To Know Going Into Trade On May 14
Asia stocks climbed after U.S. benchmarks halted a three-day slide, with investors migrating to value from growth companies as signs of a strengthening labour market tempered inflation worries.
Indices in South Korea, Australia and Japan also gained for the first time in four sessions. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 1.2% to 14,683.50 as of 7:10 a.m.
Investors will be watching China’s open after MSCI Inc.’s index covering the country’s stocks fell into bear-market territory.
U.S. futures edged higher, following gains in the major benchmarks. Industrial and financial shares outperformed overnight, while energy producers joined a slump in oil.
Bitcoin pared some of the losses sparked by Musk’s comments, trading around $50,000
Treasuries rallied from the prior session’s weakness, with the 10-year yield easing to 1.66% despite a lacklustre auction of 30-year bonds. The Federal Reserve tweaked its purchasing plan to focus more on longer-dated Treasuries, while leaving the $80 billion monthly total unchanged.
Meanwhile, concerns about a possible pullback in Fed support have stalled the rally in commodities. Oil slumped the most in over a month as growing inflation concerns raise the spectre of a less accommodative central bank.
Data To Watch
- 12pm: India April Wholesale Price Inflation YoY, est. 9.50%, prior 7.39%
- 05/14-05/15: India April trade balance, est. -$15.2 billion, prior -$13.9 billion
- India April Exports YoY, no est., prior 60.3%
- India April Imports YoY, no est., prior 53.7%
Stocks To Watch
- Royal Enfield: To temporarily halt production at its manufacturing facilities in Chennai for four days over rising Covid-19 cases. The company’s manufacturing operations across Thiruvottiyur, Oragadam & Vallam Vadagal to remain shut between May 13-16. It will undertake maintenance activity at production facilities. The company does not foresee any significant impact on its ability to cater to the demand.
- Equitas Small Finance Bank: Lockdowns to impact May collections. April billing efficiency stood at 84.68%. April collection efficiency stood 105.16%.
- KEC International: Has secured new orders of Rs 1,514 crore across its various businesses. The company has secured orders of Rs 326 crore for Transmission & Distribution projects and orders of Rs 153 crore for various types of cables. The company has secured orders of Rs 1,035 crore for the construction of an elevated viaduct along with stations for a metro project and for mechanical & civil works in two cement plants.
- Tata Power: Approved issuance of listed NCDs up to an aggregate amount of Rs 5,500 crore. The funds raised will be utilised for refinancing existing loans.
- Torrent Power: Board to consider raising up to Rs 2,000 crore by issuance of NCDs through private placement basis.
- Dr. Reddy’s: Teva and Eagle said a branded version of a cancer drug proposed by Dr. Reddy’s infringes 14 patents for Teva’s Bendeka. Teva is seeking a court order blocking sales of Dr. Reddy’s proposed drug until the patents have expired and cash compensation if Dr. Reddy’s makes or sells it before then, according to 66-page complaint filed Thursday in federal court in Wilmington, Delaware
- Nifty Earnings: Larsen & Toubro, Cipla, Dr Reddy's Laboratories
- Non-Nifty Earnings: Escorts, Rossari Biotech, Macrotech Developers, Mindspace Business Parks REIT, Anup Engineering, Asian Star Co, Balkrishna Industries, Cholamandalam Financial Holdings, Greenpanel Industries, HIL, Indigo Paints, Jindal Stainless, Kesoram Industries, Monte Carlo Fashions, Privi Speciality Chemicals, Saint-Gobain Sekurit India, SKF India, Texmaco Infrastructure & Holdings, Texmaco Rail & Engineering, Vimta Labs
Earnings Post Market Hours
UPL Q4FY21 (Consolidated, QoQ)
- Revenue up 40% at Rs 12,796 crore Vs Rs 9,126 crore (Bloomberg Estimate: Rs 12,016.1 crore)
- Net Profit up 34% at Rs 1,063 crore Vs Rs 794 crore (Bloomberg Estimate: Rs 1,077.9 crore)
- Ebitda up 20% at Rs 2,651 crore Vs Rs 2,202 crore (Bloomberg Estimate: Rs 2,556.8 crore)
- Ebitda margins at 20.7% Vs 24.1% (Bloomberg Estimate: 21.27%)
Tata Power Q4FY21 (Consolidated, QoQ)
- Revenue up 33% at Rs 10,127.39 crore Vs Rs 7,597.91 crore
- Net profit up 58% at Rs 392.94 crore Vs Rs 248.21 crore
- Ebitda down 17% at Rs 1,445.61 crore Vs Rs 1,749.59 crore
- Ebidta margins at 14.3% Vs 23%
- Recommended a dividend of Rs 1.55 per share
Jindal Steel & Power Q4FY21 (Consolidated, QoQ)
- Revenues up 13% at Rs 11,880.61 crore Vs Rs 10,533.51 crore
- Net profit down 13% at Rs 1,968.24 crore Vs Rs 2,254.66 crore
- Ebitda up 24% at Rs 5,287.49 crore Vs Rs 4,252.41 crore
- Margins at 44.5% vs 40.4%
Pidilite Q4FY21 (Consolidated, QoQ)
- Revenue down 3% at Rs 2,235.52 crore Vs Rs 2,299.02 crore
- Net profit down 31% at Rs 306.19 crore Vs Rs 441.83 crore
- Ebitda down 28% at Rs 460.79 crore Vs Rs 640.82 crore
- Ebitda Margin at 20.6% vs 27.9%
- Recommended a dividend of Rs 8.50 per share for FY21
Apollo Tyres Q4FY21 (Consolidated, QoQ)
- Revenue down 3% at Rs 5,025.6 crore Vs Rs 5,194.6 crore
- Net profit down 35% at Rs 287.2 crore Vs Rs 443.8 crore
- Ebitda down 21% at Rs 814.4 crore vs Rs 1,030 crore
- Ebitda Margins at 16.2% vs 19.8%
- Recommended a final dividend of Rs 3.50 per share for FY21
Pledge Share Details
- JSW Energy: Promoters (JSW Investments and Indusglobe Multiventures) revoked pledge of 50.65 lakh shares between May 7-10. Promoter Siddheshwari Tradex created a pledge of 30 lakh shares on May 10.
- Steel Strips Wheels: Promoters (Dheeraj Garg, DHG Marketing and SAB Industries) revoked pledge of 9.24 lakh shares between February 16 and March 2.
- Sun Pharmaceutical Industries: Promoter Shanghvi Finance revoked pledge of 31.08 lakh shares on February 11.
As reported on May 12.
- Godrej Agrovet: Promoter Godrej Industries acquired 35,767 shares on May 10.
- Cyient: Cyient Associate Stock Option Scheme 2021 Trust bought 6 lakh shares (0.55%) at Rs 769.97 per share.
- Venky's (India):Navodya Enterprises bought 1.13 lakh shares (0.80%) at Rs 1,976.35 per share.
- Infosys: Promoter SD Shibulal bought 7.58 lakh shares on May 12. Promoter Kumari Shibulal sold 7.58 lakh shares on May 12.
- Ex-Date AGM: Uniply Industries
- Record Date Special Dividend: Gillette India
- Record Date Interim Dividend: NCL Industries
- Price Band Revised From 10% To 5%: Bajaj Hindusthan Sugar, Jaiprakash Power Ventures, KIOCL, Sastasundar Ventures
- Price Band Revised From 20% To 10%: Shriram EPC
- Move Into Short-Term ASM Framework: Gufic Biosciences, Southern Petrochemicals Industries Corporation, Kopran, Uniphos Enterprises, TD Power Systems, Shalby, Reliance Infrastructure, Nalwa Sons Investments, Filatex India, Macrotech Developers, Bajaj Hindusthan Sugar
- Move Out Of Short-Term ASM Framework: Andhra Sugars, Jubilant Ingrevia, Shree Renuka Sugars, Tata Metaliks, Gujarat Ambuja Exports, Reliance Power
- Move Into ASM Framework:Reliance Power, Everest Kanto Cylinder, Shriram EPC, Trident, Jayaswal Neco Industries
Money Market Update
The Indian rupee fell by the most in almost a month amid lingering concerns over the impact of coronavirus on the nation’s economy.
- USD/INR up 0.1%, the biggest rise since April 19, at 73.4263
- The rupee came off day’s lows as foreign banks sold with stock inflows expected from MSCI Index rebalancing, says Amit Pabari, managing director at CR Forex
- The Covid-19 situation has been largely factored in by markets, providing an attractive entry point for the rupee, according to Irene Goh, head of multi-asset solutions at Aberdeen Standard Investment
- CPI probably rose 4.10% y/y in April, compared with a 5.52% gain in March, according to a Bloomberg survey
Addressing vaccine supply bottlenecks, bringing more types of vaccines to market, and aggressively increasing the vaccination goal, are all expected to be positive drivers for the currency in the near term.Irene Goh, Aberdeen Standard Investment
- Nifty May futures ended at 14,708.90; premium of 12.4 points.
- Nifty May futures added 2.01% and 3,138 shares in Open Interest
- Nifty Bank May futures ended at 32,515; premium of 62.7 points
- Nifty Bank May futures added 7.23% and 3,658 shares in Open Interest
- Securities that continue to be on the ban list: Canara Bank, PNB and Sun TV
- Securities added to the ban list: BHEL, Cadila Healthcare
- Securities out of the ban list: Nalco