All You Need To Know Going Into Trade On May 21

Asian stocks climbed early Friday after technology companies led a Wall Street rebound on economic optimism and easing concern about the possibility of reduced U.S. stimulus.

Shares rose in Japan, South Korea and Australia. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.8% to 15,062.50 as of 7:15 a.m.

Overnight, nearly all major industry groups in the S&P 500 climbed, while gains in Apple Inc. and Tesla Inc. helped the Nasdaq 100 rally past its 50-day moving average.

A drop in U.S. initial jobless claims put the focus back on the economic recovery and away from fears that price pressures imperil loose financial conditions. Contracts on the tech-heavy gauge and the S&P 500 edged up.

Treasury yields maintained a retreat. Weaker-than-expected demand for an auction of 10-year inflation-protected debt suggested confidence in the Federal Reserve’s narrative that the recent acceleration in inflation is unlikely to be sustained. A pause in this year’s commodity boom continued.

Gold is around the highest price in more than four months. Its claimed virtual rival, Bitcoin, steadied after a volatile cryptocurrency slump this week.

Oil trimmed a drop but remains around the lowest in nearly a month. Traders were assessing the likelihood of a renewed nuclear deal with Iran and the potential removal of sanctions on the country’s crude exports.

Earnings Post Market Hours

HPCL Q4FY21 (Standalone, QoQ)

• Revenues up 9% at Rs 74,843.42 crore Vs Rs 68,659.21 crore (Bloomberg estimate: Rs 82,441 crore)
• Net profit up 28.2% at Rs 3,017.96 crore Vs Rs 2,354.64 crore (estimate: Rs 1,498 crore)
• Ebitda up 41.3% at Rs Rs 4,666.38 crore Vs Rs 3,301.52 crore (estimate: Rs 2,566 crore)
• Ebitda margin at 6.2% Vs 4.8% (estimate: 3.1%)
• Recommended a final dividend of Rs 22.75 per share

Torrent Power Q4FY21 (Consolidated, QoQ)

• Revenue up 4% at Rs 3,084.13 crore Vs Rs 2,952.75 crore
• Net profit up 24% at Rs 396.93 crore Vs Rs 320.50 crore
• Ebitda up 5% at Rs 914.45 crore Vs Rs 870.28 crore
• Ebitda margin at 29.7% Vs 29.5%
• Recommended a final dividend of Rs 5.50 per share
• Approved issuance of NCDs up to Rs 2,000 crore

Havells India Q4FY21 (Standalone, QoQ)

• Revenue up 5% at Rs 3,331.19 crore Vs Rs 3,165.85 crore (Bloomberg estimate: Rs 3,122.4 crore)
• Net profit down 13% at Rs 302.27 crore Vs Rs 349.13 crore (estimate: Rs 301.2 crore)
• Ebitda at Rs 505.65 crore Vs Rs 508.07 crore (estimate: Rs 464.4 crore)
• Ebitda margin at 15.2% Vs 16% (estimate: 14.87%)
• Recommend a final dividend of Rs 3.50 per share for FY21

Zee Entertainment Enterprises Q4FY21 (Consolidated, QoQ)

• Revenue down 28% at Rs 1,965.82 crore Vs Rs 2,729.36 crore (Bloomberg estimate: Rs 2,086.6 crore)
• Net profit down 31% at Rs 275.73 crore Vs Rs 399.91 crore (estimate: Rs 327.9 crore)
• Ebitda down 11% at Rs 561.57 crore Vs Rs 631.77 crore (estimate: Rs 514.5 crore)
• Ebitda margin at 28.6% Vs 23.1%
• Recommended dividend of Rs 2.50 per share
• Reported exception loss of Rs 29.54 crore

Stocks To Watch

• L&T: Transferred its digital transformation business undertaking, incubated and conducted as L&T-NxT to Mindtree, a listed a subsidiary of the company, for Rs 198 crore. The sale is expected to be completed by July 31, subject to satisfaction of conditions precedent indentified under the business transfer agreement.
• Apollo Tyres: To resume operations at Perambra plant in Kerala from today. The company had suspended operations at the plant pursuant to directives issued by the District Government Authority.
• City Union Bank: RBI has imposed a penalty of Rs 1 crore on the bank for non-compliance with certain provisions of the directions contained in RBI (Lending to MSME Sector) Directions 2017 and the circulars on Educational Loan Scheme and Credit Flow to Agriculture.
• Cipla: The company’s Abbreviated New Drug Application for Dolutegravir Sodium has been approved by FDA.
• Jaypee Infratech's creditors deemed a resolution plan by NBCC as non-compliant with the provisions of IBC, according to sources. The plan was rejected due to non-compliance with rules governing the payment of dissenting creditors. Financial creditors to put Suraksha ARC's plan to vote on Monday. Suraksha ARC's resolution plan had scored higher than NBCC's.
• Ujjivan Small Finance Bank: Ittira Davis has resigned as Additional Director (Non-Executive, Non-Independent) of the bank.
• Union Bank of India: Approved closure of QIP on May 20 and issue price of Rs 33.82 per share. The issue price is at a discount of 5% to the floor price of Rs 35.60 per share.
• Nifty Earnings: Hindalco Industries, JSW Steel, SBI, Shree Cement,
• Non-Nifty Earnings: Aarti Surfactants, Anuh Pharma, Birlasoft, CCL Products (India), Container Corporation of India, Crompton Greaves Consumer Electricals, DCW, Dhanuka Agritech, Dharamsi Morarji Chemical Co., Elgi Equipments, ESAB India, Godrej Industries, Dr. Lal PathLabs, Seacoast Shipping Services, Shoppers Stop, South Indian Bank, United Spirits

Pledge Share Details

• JSW Steel: Promoter JSW Holdings revoked pledge of 9 lakh shares on May 14.
• Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 18.25 lakh shares on May 18.

As reported on May 20.

Bulk Deals

• Den Networks: Broad Street Investments (Singapore) Pte. sold 25.10 lakh shares (0.53%) at Rs 44.21 per share.
• Indian Energy Exchange: Copthall Mauritius Investment bought 16.54 lakh shares (0.55%) at Rs 362.68 per share. Societe Generale bought 22.14 lakh shares (0.74%) at Rs 361.66 per share. Dalmia Power sold 1.34 crore shares (4.47) at Rs 363.84 per share.

Insider Trades

• Godrej Agrovet: Promoter Godrej Industries bought 18,300 shares on May 17.

Trading Tweaks

• Price Band Revised From 10% To 5%: Saregama India
• Price Band Revised From 20% To 10%: HIL
• Move Into Short-Term ASM Framework: Gokaldas Exports, Share India Securities, Prince Pipes And Fittings
• Move Out Of Short-Term ASM Framework: Igarashi Motors India, Sun Pharma Advanced Research Company, South Indian Bank, Expleo Solutions, Hikal, Aarti Surfactants, AstraZeneca Pharma India, Birla Corporation, Centrum Capital
• Move Into ASM Framework: Sagar Cements, Birla Corporation, Centrum Capital, Karda Constructions, HIL
• Record Date Income Distribution RITES: Mindspace Business Parks REIT
• Record Date Rights Issue: Vikas Lifecare
• Record Date Bonus Issue: IRCON International
• Record Date Stock Split: Jost's Engineering

Money Market Update

• The rupee ended at 73.1 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 73.16.

F&O Cues

• Nifty May futures ended at 15,048.55; discount of 69.7 points.
• Nifty May futures shed 2.89% and 4,253 shares in Open Interest
• Nifty Bank May futures ended at 33,490; discount of 189.25 points
• Nifty Bank May futures shed 10.86% and 6,898 shares in Open Interest
• Securities added to the ban list: BHEL, PNB and Jindal Steel & Power
• Securities that continue to be on the ban list: Nalco, Cadila Healthcare and SAIL