All You Need To Know Going Into Trade On May 3
Asia stocks started the week a little changed with some major markets shut and inflation concerns resurfacing. U.S. futures edged higher.
Benchmarks fluctuated in Australia and South Korea, and markets are closed in Japan and China for holidays. S&P 500 and Nasdaq 100 contracts climbed. Treasury yields held above 1.6% in U.S. hours. Crude oil crept up toward $64 a barrel.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 1.35% to 14,444 as of 7:45 a.m.
Inflation risks are back in focus, though some data are skewed by last year’s pandemic shock. In his latest annual meeting, billionaire Warren Buffett warned of rising price pressures and a “buying frenzy” spurred by low-interest rates.
Here are some key events to watch this week:
- A slew of manufacturing PMIs are due Monday, including from U.S. and China
- Fed Chair Powell speaks in an event hosted by the National Community Reinvestment Coalition The Reserve Bank of Australia monetary policy decision is due Tuesday
- The Treasury announces its quarterly refunding on Wednesday
- Chicago Fed President Charles Evans gives a virtual speech on the U.S. economy at an event hosted by Bard College; Cleveland Fed‘s Loretta Mester speaks to the Boston Economic Club on Wednesday
- Bank of England rate decision Thursday
- U.S. April employment report is released on Friday
Economic Data To Watch
- 10:30am: Markit India Manufacturing PMI for April, prior 55.4
Stocks To Watch
- Hero MotoCorp: To extend the shutdown at its manufacturing facilities across India, global parts Center & R&D facility in Jaipur till May 9. The plant operations to resume on May 10.
- Mahindra & Mahindra: To increase its stake in Meru Travel Solutions to 100%. M&M will acquire 44.14% shares from private equity investors, True North, Bennett Coleman & Co and former Meru cabs CEO, Nilesh Sangoi, for Rs 76.03 crore and 12.66% shares from Neeraj Gupta and Farhat Gupta for Rs 21.63 crore. With this, M&M will enhance its current shareholding in Meru from 43.20% to 100%. Further, Pravin shah, former President at M&M’s automotive division to take over as CEO of Meru and its subsidiaries from May 1.
- HDFC Bank: Has announced a new business structure under Sashidhar Jagdishan as MD & CEO. The bank will reorganise itself into three areas: business verticals, delivery channels and technology/digital. It will increase focus on MSME business and will continue to invest in all its delivery channels.
- DCB Bank: Has acquired equity stake in India INX and India ICC. The bank has invested Rs 5 crore each in the two companies. India INX and India ICC are promoted by BSE and are the leading exchange and clearing corporation in the GIFT City IFSC at Gandhinagar.
- Bank of India: Board has approved raising up to Rs 4,800 crore capital. The bank will raise Rs 3,000 crore by issuance of fresh equity capital in the form of FPO/QIP/Basel Ill Compliant Additional Tier-1 bonds (domestic and foreign currency) and Rs 1,800 crore via Basel III compliant Tier-2 bonds.
- NLC India: Board has approved the proposal for issuance of bonds in the nature of debentures of up to Rs 5,000 crore in tranches.
- MOIL: Has cut manganese ore prices by about 5% across all grades with effect from May 1.
- Rashtriya Chemicals and Fertilizers: Has appointed Crawford Bayley along with its International consortium partner Squire Patton Boggs Singapore LLP as legal advisers for disinvestment of 10% paid-up equity capital, out of the Government of India’s shareholding, through offer for sale.
- Coal India: Production in April up 3.7% year-on-year to 41.9 MT while Offtake rose 38.4% year-on-year to 54.1 MT.
- Titan Company: Has incorporated TCL North America Inc. as its wholly-owned subsidiary in the State of Delaware, the USA for $300,000. TCL North America Inc. will carry on the business of jewellery retailing.
- Ajanta Pharma, Ipca Laboratories, Alembic Pharmaceuticals and Glenmark Pharmaceuticals have subscribed to partnership interest in ABCD Technologies (to be renamed as IndoHealth Services LLP). Ajanta Pharma and Ipca Laboratories will invest Rs 25 crore each for a 4.03% share in ABCD Technologies and Glenmark Pharmaceuticals and Alembic Pharmaceuticals will invest Rs 40 crore each for a 6.45% share.
- Parag Milk Foods: Board has approved the opening of the issue of Foreign Currency Convertible Bonds, aggregating up to $11 million, on April 30. The conversion price of the FCCBs is Rs 145 per share and the floor price is Rs 111.27.
- Nifty Earnings: SBI Life Insurance Company, Kotak Mahindra Bank
- Non-Nifty Earnings: Godrej Properties, L&T Technology Services, IDBI Bank, Tata Chemicals, Apollo Tricoat Tubes, Home First Finance Company India, Mahindra Holidays & Resorts India, Supreme Industries, Varun Beverages
- PowerGrid InvIT IPO gets 61% demand on second-day sale; offer closes May 3
- Tata Power said to mull $473 million renewable energy unit IPO
- Ajanta Pharma raised to Buy at Dolat Capital; price target Rs 2,205
- Bajaj Auto raised to Hold at IDBI Capital Market
- Exide Industries raised to Buy at Dolat Capital; price target Rs 224
- Shriram Transport raised to Overweight at JPMorgan
Earnings Post Market Hours
Reliance Industries Ltd Q4FY21 (Consolidated, QoQ)
- Revenue up 26.9% at Rs 1.49 lakh crore Vs Rs 1.17 lakh crore (Bloomberg Estimate: Rs 1.39 lakh crore)
- Net profit up 1% at Rs 13,227 crore Vs Rs 13,101 crore (Bloomberg Estimate: Rs 13,704 crore)
- Ebitda up 1.9% at Rs 26,602 crore Vs Rs 26,094 crore (Bloomberg Estimate: Rs 23,544 crore)
- Ebitda margins at 17.8% Vs 22.1% (Bloomberg Estimate: 16.9%)
- Recommended a dividend of Rs 7 per share
Reliance Jio Q4FY21 (Consolidated, QoQ)
- Revenues down 6.1% at Rs 18,278 crore Vs Rs 19,475 crore
- Net profit up 0.54% at Rs 3,508 crore Vs Rs 3,489 crore
- Ebitda up 1.1% at Rs 8,573 crore Vs Rs 8,483 crore
- Ebitda margins at 46.9% vs 43.6%
- The average revenue per user fell to Rs 138 per month from Rs 151 last quarter.
IndusInd Bank Q4FY21 (Standalone, YoY)
- Net Profit at Rs 876 crore Vs Rs 301.8 crore (Bloomberg Estimate: Rs 904 crore)
- NII up 9.4% at Rs 3,535 crore Vs Rs 3,232 crore (Bloomberg Estimate: Rs 3,334 crore)
- Total expenses down 3% to Rs 6,138 crore
- GNPA at 2.67% Vs 2.93% (QoQ)
- NNPA at 0.69% Vs 0.7% (QoQ)
- Total provisions fell 23.5% year-on-year to Rs 1,866 crore
- Wrote-off loans worth Rs 1,350 crore
- Upgrades were at Rs 1,875 crore, while recoveries stood at Rs 138 crore
- Collection efficiency improved from 97% to 98% (QoQ)
- Advances up 3% to Rs 2.13 lakh crore
- Consumer loans stood at Rs 1.22 lakh crore, accounting for 57% of the loan book
- Deposits up 27% to Rs 2.56 lakh crore
- Current account and savings account deposits up 31% to Rs 1.07 lakh crore
- Recommended dividend of Rs 5 per share for FY21
Yes Bank Q4FY21 (Standalone, YoY)
- Net loss at Rs 3,788crore Vs Rs 3,668 crore
- NII down 22% Rs 986.7 crore Vs Rs 1,274 crore
- GNPA at 15.41% vs 20% (QoQ)
- NNPA at 5.88% vs 4.04% (QoQ)
- Wrote off Rs 10,300 crore during the quarter
- Gross slippages stood at Rs 11,873 crore
- Restructured loans worth Rs 1,112 crore
- Total advances down 3% to Rs 1.67 lakh
- Retail loans grew to nearly Rs 50,000 crore
- Retail and MSME loans now account for 51% of the total loan book
- Outstanding deposits up 55% at Rs 1.63 lakh crore
April Auto Sales
- Hero MotoCorp: Overall sales down 35.47% at 3,72,285 lakh units Vs 5,76,957 units. Motorcycle sales down 35.31% at 3,39,329 lakh units Vs 5,24,608 lakh units. Exports down 9.03% at 29,671 units Vs 32,617 units.
- Maruti Suzuki: Total sales down 4.38% at 1.59 lakh units Vs 1.67 lakh units. Total domestic passenger vehicle sales down 7% at 1.35 lakh units Vs 1.46 lakh units. Total domestic sales down 8.34% at 1.42 lakh units Vs 1.55 lakh units. Exports up 48% at 17,237 units Vs 11,597 units.
- Eicher Motors: Total Royal Enfield sales down 19.31% at 53,298 units Vs 66,058 units. Exports down 23.38% at 4,509 units Vs 5,885 units. Volvo Eicher Commercial Vehicles sales down 70% at 2,145 units Vs 7,037 units. Domestic sales down 74.31% at 1,555 units Vs 6,054 units. Total exports down 33.70% at 541 units Vs 816 units.
- Tata Motors: Total passenger vehicle sales down 15% at 25,095 units Vs 29,654 units. Total domestic sales down 41% at 39,530 units Vs 66,609 units. Total domestic commercial vehicle sales down 61% at 14,435 units Vs 36,955 units.
- Mahindra & Mahindra: Passenger vehicle sales up 9.49% at 18,285 units Vs 16,700 units. Overall auto sales down 9.81% at 36,437 units Vs 40,403 units. The commercial vehicle segment, including electric three-wheelers, sold 16,147 units in April. The Farm Equipment segment saw its sales fall 11% in April to 27,523 units, from the 30,970 units. Domestic tractor sales down 12.3% to 26,130 units Vs 29,817.
- Ashok Leyland: Total vehicle sales down 51.59% at 8,340 units Vs 17,231 units. Domestic sales down 49.48% at 7,961 units Vs 15,761 units.
- Escorts: Tractor sales down 43% at 6,979 units Vs 12,337 units. Exports down 2.30% at 593 units Vs 607 units. Comparison made on a month-on-month basis.
Pledge Share Details
- JSW Steel: Promoters (Sahyog Holdings, JSW Holdings and JSW Techno Projects Management) revoked pledge of 92.10 lakh shares between April 26 and 28.
- Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 3.55 lakh shares between April 26-27.
As reported on April 30.
- Coffee Day Enterprise: Setu Securities bought 19.14 lakh shares (0.91%) at Rs 37.7 per share.
- Reliance Power: Housing Development Finance Corporation sold 2.20 crore shares (0.79%) at Rs 5.04 per share and sold another 1.71 crore shares (0.61%) at Rs 5.13 per share.
- Price Band Revised From 10% To 5%: Future Enterprises, Morepen Laboratories
- Price Band Revised From 20% To 10%: Jay Bharat Maruti
- Record Date Buyback: Quick Heal Technologies
- Ex-Date Dividend: Stovec Industries
- Move Into Short-Term ASM Framework: Centrum Capital, Avadh Sugar & Energy, RattanIndia Enterprises
- Move Out Of Short-Term ASM Framework: Emami Paper Mills, Dishman Carbogen Amcis
- Move Into ASM Framework: Future Enterprises, Supreme Petrochem, Jet Airways (India)
- Move Out Of ASM Framework: Greenpanel Industries, Sequent Scientific, Fineotex Chemical, NIIT, Jain Irrigation Systems, Tejas Networks, Panama Petrochem, Poly Medicure, HBL Power Systems, Orchid Pharma
Money Market Update
- The rupee ended at 74.06 against the U.S. Dollar on Friday as compared to Thursday's closing of 74.03.
- Nifty May futures ended at 14,660.35; premium of 29.25 points.
- Nifty May futures added 6.08% and 7,667 shares in Open Interest
- Nifty Bank May futures ended at 32,824.90; premium of 43.1 points
- Nifty Bank May futures shed 4.21% and 2,257 shares in Open Interest
- Securities added to the ban list: Sun TV