All You Need To Know Going Into Trade On May 17
Asian stocks fluctuated early Monday as spikes in virus cases in parts the region and lingering inflation concerns weighed on investor sentiment.
Shares rose in Australia but slipped in Japan and South Korea as markets responded to the latest curbs on activity to halt the spread of Covid-19. U.S. stocks ended in the green Friday after gathering price pressures pushed equity markets globally to their worst weekly loss since February.
Treasury yields were steady after dropping Friday on a report that showed the recent surge in U.S. retail sales stalled in April. The dollar edged up against its major peers.
The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.6% to 14,803 as of 7:10 a.m.
The momentum in commodity markets seems to have flagged after breakneck gains, with copper and iron ore coming off record highs amid efforts by China to clamp down on surging prices.
Bitcoin fell to the lowest since February after Elon Musk implied on Twitter Sunday that Tesla Inc. may sell or has sold its cryptocurrency holdings.
Here are some key global events this week:
- China releases industrial production, retail sales data on Monday
- Reserve Bank of Australia publishes minutes of its latest meeting Tuesday
- Fed Vice Chair Richard Clarida and Atlanta Fed President Raphael Bostic are among policy makers speaking this week
- The Fed publishes minutes from its April meeting Wednesday, which may provide clues to officials’ views on the recovery and how they define “transitory” when it comes to inflation
- Australia releases employment data for April on Thursday
Data To Watch
- 12pm: April Wholesale Prices YoY, est. 9.20%, prior 7.39%
- RBI to conduct first Special Long-Term Repo Operation for Rs 10,000 crore
- India to convert/switch Rs 20,000 crore of government securities via auctions to longer tenor: RBI
Earnings Post Market Hours
Larsen & Toubro Q4FY21 (Consolidated, YoY)
- Revenue up 8.7% at Rs 48,087.9 crore Vs Rs 44,245.28 crore
- Ebitda up 24.8 % at Rs 6,388.9 crore Vs Rs 5,121.04 crore
- Profit up 24.8% at Rs 3,281 crore Vs Rs 2,629.63 crore
- Ebitda margin at 13.3% Vs 11.6%
- Has recommended a final dividend of Rs 18 per share
Cipla Q4FY21 (Consolidated, QoQ)
- Revenue down 11% at Rs 4,606.45 crore Vs Rs 5,168.69 crore (BBG Estimate: Rs 4,999.3 crore)
- Net profit down 45% at Rs 413.38 crore Vs Rs 748.15 crore (BBG Estimate: Rs 621.3 crore)
- Ebitda down 35% at Rs 796.24 crore Vs Rs 1,230.88 crore (BBG Estimate: Rs 1,092.1 crore)
- Ebitda margin at 17.3% Vs 23.8% (BBG Estimate: 21.84%)
- Recommended dividend of Rs 5 per share for FY21
SKF India Q4FY21 (Consolidated, QoQ)
- Revenue up 4% at Rs 847.50 crore Vs Rs 818.70 crore
- Net profit down 18% at Rs 104.80 crore Vs Rs 128.10 crore
- Ebitda down 18% at Rs 148.30 crore Vs Rs 180.41 crore
- Ebitda margin 17.50% Vs 22.04%
- Recommended final dividend of Rs 14.50 per share for FY21.
Oberoi Realty Q4FY21 (Consolidated, QoQ)
- Revenue down 5% at Rs 790.08 crore Vs Rs 828.41 crore
- Net profit flat at Rs 286.85 crore Vs Rs 286.65 crore
- Ebitda down 2% at Rs 373.50 crore Vs Rs 382.48 crore
- Ebitda margin at 47.3% Vs 46.2%
- Approved issue of up to Rs 1,500 crore of debentures
- Approved issue of shares for an aggregate an amount of Rs 2000 crore via QIP
Balkrishna Industries Q4FY21 (Consolidated, QoQ)
- Revenue up 16% at Rs 1,753.45 crore Vs Rs 1,509.23 crore
- Net profit up 17% at Rs 379.95 crore Vs Rs 325.07 crore
- Ebitda up 15% at Rs 550.47 crore Vs Rs 479.57 crore
- Ebitda margin at 31.4% Vs 31.8%
- Recommended final dividend of Rs 5 per share for FY21
Stocks To Watch
- Adani Green Energy: In advanced talks for SoftBank-backed SB Energy. The company's offer could value SB Energy at over $650 million. Adani Green is exploring a buyout of the renewable energy company through an all-stock deal. A deal could help Adani Green to reach its planned generation capacity of 25 gigawatts by 2025.
- Hero MotoCorp: To restart production at three of its plants – Gurugram and Dharuhera in Haryana and at Haridwar in Uttarakhand – from today. The company had halted the plant operations temporarily in a staggered manner from April 22 to May 16.
- Bata India: Has appointed Gunjan Shah as CEO and Whole-time Director with effect from June 21. Shah will replace Sandeep Kataria who has been elevated as the Global CEO of Bata Brands.
- Wipro: Has appointed Tulsi Naidu as Independent Director on the board for a period of 5 years, effective July 1, subject to the approval of shareholders.
- PNB: Approved closure of QIP on May 14 and issue a price of Rs 33.75 per share. The issue price is at a discount of 4.96% to the floor price of Rs 35.51 per share.
- HPCL: Approved closure of buyback on May 14. The company has bought back 10.52 crore shares at a volume-weighted average price of Rs 227.76 per share for an aggregate amount of Rs 2,397 crore.
- Nifty Earnings: Bharti Airtel
- Non-Nifty Earnings: Colgate-Palmolive (India), 3i Infotech, Butterfly Gandhimathi Appliances, Federal Bank, Gland Pharma, Gujarat Narmada Valley Fertilizers & Chemicals, Garden Reach Shipbuilders & Engineers, Indo Count Industries, Mangalore Refinery & Petrochemicals, Orient Cement, Rane Brake Lining, Shakti Pumps (India), Sun Pharma Advanced Research Company, Subex, Wabco India, Aarti Industries
- Penna Cement seeks Sebi approval for up to Rs 1,550 crore IPO
- Windlas Biotech seeks regulatory approval for IPO
- Devyani International files DRHP with SEBI, to raise Rs 400 in IPO
- Also offer-for-sale up to 125.3 million share in IPO
- Aptus Value Housing Finance seeks shares IPO approval from SEBI
- Supriya Lifescience seeks Sebi approval for up to Rs 1,200 crore IPO
- Cartrade Tech seeks regulatory nod for 12.4m shares sale in IPO
- Yaarii Digital Integrated Services: BNP Paribas Arbitrage bought 10 lakh shares (1.12%) at Rs 91.2 per share. Morgan Stanley Asia (Singapore) Pte bought 9.50 lakh shares (1.06%) at Rs 90.9 per share. TIMF Holdings sold 9.50 lakh shares (1.06%) at Rs 90.9 per share and sold another 10 lakh shares (1.12%) at Rs 91.2 per share.
- Ex-Date Interim Dividend: Oracle Financial Services Software
- Price Band Revised From 10% To 5%: Neuland Laboratories
- Price Band Revised From 20% To 10%: Chaman Lal Setia Exports
- Move Into Short-Term ASM Framework: Jaiprakash Power Ventures
- Move Out Of Short-Term ASM Framework: Bajaj Hindusthan Sugar, Nalwa Sons Investments
- Move Into ASM Framework: Bajaj Hindusthan Sugar, Nalwa Sons Investments, Tata Steel BSL, Dalmia Bharat Sugar and Industries
- Move Out Of ASM Framework: Gravita India, Linde India, Action Construction Equipment, JBM Auto, Punjab Chemicals & Crop Protection, Vertoz Advertising, Bajaj Electricals
Money Market Update
- The rupee ended at 73.28 against the U.S. dollar on Friday as compared to Wednesday's closing of 73.42.
- Nifty May futures ended at 14,717.50; premium of 39.7 points.
- Nifty May futures shed 6.39% and 10,198 shares in Open Interest
- Nifty Bank May futures ended at 32,202.90; premium of 33.35 points
- Nifty Bank May futures added 9.71% and 5,268 shares in Open Interest
- Securities that continue to be on the ban list: BHEL, Cadila Healthcare, Canara Bank, PNB and Sun TV
- Securities added to the ban list: SAIL