All You Need To Know Going Into Trade On May 19

Asian stocks tracked U.S. declines Wednesday as concern about faster inflation shadows the economic recovery from the pandemic. A dollar gauge was near the lowest level this year.

Japanese and Australian shares slid after key U.S. equity benchmarks closed lower and large technology stocks like Amazon.com Inc. and Microsoft Corp. erased gains.

Contracts on the S&P 500 and Nasdaq 100 were in the red. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.5% to 15,087.50 as of 7:10 a.m.

A slide in crude on the possibility of more supply from Iran hurt energy stocks overnight. Treasury yields were steady.

Bitcoin and other cryptocurrencies held a retreat after China warned digital tokens can’t be used as a form of payment. Markets are closed Wednesday in Hong Kong and South Korea for holidays.

Stocks To Watch

• Axis Bank: Specified Undertaking of the Unit Trust of India to sell 1.95% of the bank's equity through an Offer for Sale. The initial plan is for the sale of 3.60 crore shares or 1.21% of the total equity with a greenshoe option to sell another 2.20 crore shares or 0.74% of the total equity. The floor price of Rs 680 per share is at a 4.48% discount to Tuesday's closing price. The OFS opens for non-retail investors today and for retail investors tomorrow.
• Adani Green Energy: Gautam Adani-owned company said it has agreed to buy SoftBank Group Corp.’s renewable power business in India, bolstering its efforts to expand capacity. The deal values SB Energy at $3.5 billion.
• JSW Energy: The wholly-owned subsidiary of the company, JSW Hydro Energy, has raised $707 million by allotment of dollar-denominated senior secured notes.
• Infosys, Majesco: Announced strategic collaboration to help joint customers accelerate their digital transformation journey, enabling them to unlock new opportunities, address the demand for personalised customer experiences, operational effectiveness, and digital adoption across the insurance business value chain.
• Canara Bank: Confident of Rs 15,000 crore recovery this year, said CEO Lingam Prabhakar during a conference call.
• Kirloskar Oil Engines: Suspended operations at main Kagal Plant, Kagal Plant-II and KMW Kagal Plant-III in Kolhapur to comply with District Collector's covid order. The plants will remain shut between May 18-23.
• Earnings to Watch: Indian Oil Corp., Clariant Chemicals India, Endurance Technologies, Heritage Foods, Indiabulls Housing Finance, JK Tyre & Industries, MAS Financial Services, SML Isuzu, Tanla Platforms, TCI Express.

Earnings Post Market Hours

Tata Motors Q4FY21 (Consolidated, QoQ)

• Revenue up 17% at Rs 88,628 crore Vs Rs 75,654 crore (Bloomberg estimate: Rs 87,517 crore)
• Net loss of Rs 7,585 crore Vs Net profit of Rs 2,941 crore (estimate: Rs 2,774 crore Profit)
• Ebitda at Rs 12,745 crore Vs 11,509 crore (estimate :Rs 11,210 crore)
• Margins at 14.4% Vs 15.2% (estimate: 12.8%)

Ujjivan Small Finance Bank Q4FY21 (QoQ)

• NII down 15% at Rs 368.12 crore Vs Rs 432.28 crore
• Net profit down 51% at Rs 136.49 crore Vs Rs 278.83 crore
• GNPA at 7.07% Vs 0.96%
• NNPA at 2.93% Vs 0.05%
• Gross advances up 7% at Rs 15,140 crore (YoY)
• Total provisions as of March 31 stood at Rs 955 crore covering 6.3% of gross advances
• Deposits up 22% at Rs 13,136 crore (YoY)
• Capital adequacy ratio at 26.4% with Tier-1 capital at 25.0%
• Collections remained stable at 94%

Torrent Pharmaceuticals Q4FY21 (Consolidated, QoQ)

• Revenue down 3% at Rs 1,937 crore Vs Rs 1,995 crore
• Net profit up 9% at Rs 324 crore Vs Rs 297 crore
• Ebitda down 4% at Rs 582 crore Vs Rs 607 crore
• Ebitda Margins at 30% vs 30.4%
• Recommended a final dividend of Rs 15 per share
• Had one-time tax benefit of Rs 53 crore under the CARES Act enacted by the U.S. Government in March 2020 in response to Covid -19 pandemic
• To raise up to Rs 5000 crore via issuance of shares

Jindal Stainless Hisar Q4FY21 (Consolidated, QoQ)

• Revenue down 1% at Rs 3,102.77 crore Vs Rs 3,146.65 crore
• Net profit up 30% at Rs 349.95 crore Vs Rs 269.54 crore
• Ebitda up 5% at Rs 405.55 crore Vs Rs 387.42 crore
• Ebitda margin at Rs 13.1% Vs 12.3%

GlaxoSmithKline Pharmaceuticals Q4FY21 (Consolidated, QoQ)

• Revenue down 5% at Rs 813.75 crore Vs Rs 857.20 crore
• Net profit down 91% at Rs 14.33 crore Vs Rs 156.51 crore
• Ebitda down 17% at Rs 170.89 crore Vs Rs 205.51 crore
• Ebitda margin at 21% Vs 24%
• Exceptional charge of Rs 119 crore Vs Rs 10.53 crore credit
• Recommended a dividend of Rs 30 per share. The record date for the same is July 20

Pledge Share Details

• Jindal Steel & Power: Promoters (OPJ Trading and Gagan Infraenergy) revoked pledge of 58 lakh shares between May 11-17. Promoter Opelina Sustainable created a pledge of 31 lakh shares between May 11-12.
• Solara Active Pharma Sciences: Promoters (Pronomz Ventures LLP and Chayadeep Ventures LLP) revoked pledge of 23,80 lakh shares between April 7 and May 17.

As reported on May 18.

Who's Meeting Whom

• Ambuja Cements: To meet ENAM AMC on May 19.
• Craftsman Automation: To meet HSBC Global on May 20.

Trading Tweaks

• Ex-Date Income Distribution: IRB InvIT Fund
• Ex-Date Dividend: ABB Power Products and Systems India
• Record Date Interim Dividend: Coforge, Caplin Point Laboratories, Sundram Fasteners
• Record Date Amalgamation And Spin Off: Meghmani Organics
• Price Band Revised From 20% To 10%: Ebixcash World Money India, Gateway Distriparks
• Move Into Short-Term ASM Framework: Chambal Fertilizers & Chemicals, Ebixcash World Money India, Best Agrolife, Hester Biosciences
• Move Out Of Short-Term ASM Framework: EID Parry India, Dish TV India, R Systems International, Indraprastha Medical Corporation

Money Market Update

• The rupee ended at 73.04 against the U.S. dollar on Tuesday as compared to Monday's closing of 73.21.

F&O Cues

• Nifty May futures ended at 15,151; premium of 42.9 points.
• Nifty May futures shed 2.60% and 3,922 shares in Open Interest
• Nifty Bank May futures ended at 34,086.35; premium of 163.95 points
• Nifty Bank May futures shed 5.23% and 3,623 shares in Open Interest
• Securities out of the ban list: Canara Bank
• Securities added to the ban list: Nalco
• Securities that continue to be on the ban list: BHEL, Cadila Healthcare, PNB, SAIL and Sun TV