All You Need To Know Going Into Trade On May 31
A man drives his tractor past a coking factory at sunrise in Linfen, Shanxi province, China (Photographer: Qilai Shen/Bloomberg)

All You Need To Know Going Into Trade On May 31

Most Asian stocks retreated Monday and U.S. equity futures were steady as investors continue to weigh inflation risks and the strength of the economic recovery.

Equities slipped in Japan, Hong Kong and China, where a gauge of the manufacturing industry suggested the economy’s recovery momentum might have peaked. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, fell 0.31% to 15,444 as of 7:30 a.m.

U.S. contracts fluctuated after the S&P 500 notched its fourth-straight monthly advance. Treasury yields ticked back below 1.60% on Friday. There’s no Treasuries cash trading in Asia amid holidays in the U.S. and U.K.

The offshore yuan fell back in the wake of comments leaning against its climb. Two state-run newspapers flagged risks fueled by rapid gains in the currency. China also set its daily reference rate at a weaker-than-expected level.

Bitcoin traded around $35,000 after a Friday slump as Bank of Japan Governor Haruhiko Kuroda warned about the token’s volatility and speculative trading.

All You Need To Know Going Into Trade On May 31

Economic Data To Watch

  • 4pm: India Fiscal Deficit for April-March Period, prior 171,543
  • 5:30pm: April Eight Infrastructure Industries, prior 6.8%
  • 5:30pm: India GDP for Qtr ended March; est. 0.9% (prior 0.4%)
  • 5:30pm: India GDP Annual FY21 Estimate YoY; est. -7.5% (prior -8.0%)
  • 5:30pm: India GVA for Qtr ended March; est. 2.5% (prior 1.0%)

Stocks To Watch

  • HDFC Bank: The Reserve Bank of India has levied a fine of Rs 10 crore on HDFC Bank for irregularities in the bank’s auto loan portfolio. RBI had received a whistleblower complaint regarding these irregularities. After reviewing the documents in the matter of marketing and sale of third-party non-financial products in HDFC Bank’s auto loan division, the regulator found the bank had breached the Banking Regulation Act provisions.
  • Mahindra & Mahindra: To spend Rs 12,000 crore in the next three years to launch new products across commercial and passenger vehicle segment, said CFO Manoj Bhat. The company will deploy Rs 9,000 crore in the auto sector that includes investment in EVs till FY24. To spend Rs 3000 crore in the farm sector. In addition, M&M will spend Rs 5,000 crore for investments in group companies. Further, the company will launch 23 new products across the passenger and commercial vehicle segment by 2026.
  • Manappuram Finance: Board of Directors may consider issuances of debt securities in June. The company is considering various options for raising funds through borrowings including by the way of issuance of various debt securities in onshore and offshore securities market by Public Issue, on Private Placement Basis or through issuing Commercial Paper.
  • Solar Industries India: Appointed Moneesh Agrawal, Senior General Manager, Accounts and Shalinee Mandhana, General Manager, Finance as Joint Chief Financial Officers effective May 27.
  • Earnings: Aurobindo Pharma, Jamna Auto, Kolte Patil, Narayana Hrudyalaya, Shilpa Medicare, Honeywell Automation

Earnings Post Market Hours

Divi’s Laboratories Q4FY21 (Consolidated, QoQ)

  • Revenue rose 5% at Rs 1,788.19 crore Vs Rs 1,701.44 crore (Bloomberg estimate: Rs 1,700.48 crore)
  • Net profit up 7% at Rs 502.02 crore Vs Rs 470.62 crore (estimate: Rs 469.94 crore)
  • Ebitda rose 4% at Rs 716.26 crore Vs Rs 691.21 crore (estimate: Rs 674.97 crore)
  • Margins at 40.06% Vs 40.63% (estimate: 39.69%)
  • Recommended a dividend of Rs 20 per share

Bank of Baroda Q4FY21 (YoY)

  • Net loss at Rs 1,047 crore Vs net profit Rs 507 crore
  • NII up 4.54% at Rs 7,107 crore Vs Rs 6,798 crore
  • GNPA at 8.87% Vs 9.63% (QoQ)
  • NNPA at 3.09% Vs 2.39% (QoQ)
  • Retail loans worth Rs 1,073 crore restructured
  • Corporate loans worth Rs 2,701 crore restructured
  • Q3FY21 figure on proforma basis

Max Healthcare Institute Q4FY21 (Consolidate, QoQ)

  • Revenue up 1% at Rs 801.86 crore Vs Rs 795.60 crore
  • Net profit down 23% at Rs 69.69 crore Vs Rs 90.36 crore
  • Ebitda up 5% at Rs 168.07 crore Vs Rs 160.13 crore
  • Ebitda margin at 21% Vs 20.10%

NCC Q4FY21 (Consolidated, QoQ)

  • Revenue up 32% at Rs 2,816.60 crore Vs Rs 2,126.90 crore
  • Net profit up 64% at Rs 116.83 crore Vs Rs 71.20 crore
  • Ebitda up 19% at Rs 305.69 crore Vs Rs 256.15 crore
  • Ebitda margin at 10.9% Vs 12%
  • Recommended dividend of Re 0.80 per share

Indian Bank Q4FY21 (Standalone, QoQ)

  • NII down 23% at Rs 3,334.34 crore Vs Rs 4,313.28 crore
  • Net profit up 232% at Rs 1,708.84 crore Vs Rs 514.28 crore
  • GNPA at 9.85% Vs 9.04%
  • NNPA 3.37% Vs 2.35%
  • Provisions down 24% at Rs 1,752.48 crore Vs Rs 2,314.35 crore
  • Recommended a dividend of Rs 2 per share

REC Q4FY21 (Consolidated, QoQ)

  • Revenue up 1% at Rs 9,211.46 crore Vs Rs 9,084.57 crore
  • Net profit down 8% at Rs 2,077.84 crore Vs Rs 2,257.96 crore
  • Ebitda down 1% at Rs 8,139.22 crore Vs Rs 8,260.47 crore
  • Ebitda margin at 88.4% Vs 90.9%

Dilip Buildcon Q4FY21 (Consolidated, QoQ)

  • Revenue up 14% at Rs 3,135.47 crore Vs Rs 2,746.19 crore
  • Net profit up 15% at Rs 123.67 crore Vs Rs 107.17 crore
  • Ebitda down 7% at Rs 584.33 crore Vs Rs 630.48 crore
  • Ebitda margin at 18.6% Vs 23%
  • Recommended dividend of Re 1 per share

City Union Bank Q4FY21 (QoQ)

  • NII down 12% at Rs 428.52 crore Vs Rs 489.05 crore
  • Net profit down 35% at Rs 111.18 crore Vs Rs 169.93 crore
  • GNPA at 5.11% Vs 2.94 %
  • NNPA at 2.97% Vs 1.47%
  • Provisions up 8.7% at Rs 238.51 crore Vs Rs 218.50 crore
  • Declared interim dividend of 0.30 paise per share

V-Mart Retail Q4FY21 (QoQ)

  • Revenue down 25% at Rs 351.87 crore Vs Rs 470.01 crore
  • Net loss of Rs 1.47 crore Vs Net profit of Rs 47.87 crore
  • Ebitda down 68% at Rs 33.55 crore Vs Rs 103.82 crore
  • Ebitda margin at 9.5% Vs 22.1%

HeidelbergCement India Q4FY21 (QoQ)

  • Revenue up 1% at Rs 599.90 crore Vs Rs 595.20 crore
  • Net profit up 1.20 times at Rs 139.90 crore Vs Rs 63.60 crore
  • Ebitda up 27% at Rs 152 crore Vs Rs 120.1 crore
  • Ebitda margin 25.3% Vs 20.2%
  • Recommended dividend of Rs 8 per share

Ujjivan Financial Services Q4FY21 (Consolidated, QoQ)

  • NII down 13% at Rs 441.50 crore Vs Rs 509.59 crore
  • Net profit of Rs 70.05 crore Vs Net loss of Rs 408.80 crore

Sundaram Finance Q4FY21 (Consolidated, QoQ)

  • NII down 8% at Rs 666.71 crore Vs Rs 728.04 crore
  • Net profit down 21% at Rs 270.50 crore Vs Rs 342.27 crore
  • Recommended a final dividend of Rs 6 per share

Pledge Share Details

  • Adani Ports and Special Economic Zone: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 6 lakh shares on May 27.
  • Coffee Day Enterprises: Promoters (Malavika Hegde and Devadarshini Infotechnologies) invoked pledge of 14.58 lakh shares on May 11.

As reported on May 28.

Insider Trades

  • Eris Lifesciences: Promoter Himanshu Shah sold 5,803 shares on May 25.
  • Godrej Agrovet: Promoter Godrej Industries bought 2,317 shares on May 24.
  • GHCL: Promoter Neelabh Dalmia bought 15,000 shares between May 25-27 and Promoter Anurag Dalmia bought 10,000 shares on May 25. Promoter Group Ram Krishna Dalmia Foundation sold 25,000 shares between May 25-27.
  • Kalpataru Power Transmission: Promoter Group Kalpataru Properties sold 28.88 lakh shares on May 26.
  • Ultramarine & Pigments: Promoter Sridhar Sundararajan sold 10,500 shares on May 27 and Promoter Jayalakshmi Venkataraman 11,000 shares on May 27.

Who’s Meeting Whom

  • Eicher Motors: To meet Fidelity Management and Research Inc and Vontobel Asset Management on May 31, and East Bridge Advisors on June 1.
  • Ambuja Cements: To meet SBI Mutual Fund on June 2.
  • Symphony: To meet Enam AMC on June 8.

Trading Tweaks

  • Ex-Date Dividend: HDFC, Oriental InfraTrust, Infosys
  • Record Date Interim Dividend: Indiabulls Housing Finance
  • Price Band Revised From 10% To 5%: Hindustan Construction Company, Mahanagar Telephone Nigam, Reliance Communications
  • Price Band Revised From 20% To 10%: Lux Industries, Tide Water Oil (India)
  • Move Into Short-Term ASM Framework: Tide Water Oil (India), Uniphos Enterprises
  • Move Into ASM Framework: Indian Metals & Ferro Alloys, Karda Constructions, HIL, TIPS Industries
  • Move Out Of ASM Framework: Tanla Platforms, Kirloskar Industries, NOCIL, Likhitha Infrastructure, Zensar Technologies, JK Tyre & Industries, Cosmo Films

Money Market Update

  • The rupee ended at 72.43 against the U.S. Dollar on Friday as compared to Thursday's closing of 72.59.

F&O Cues

  • Nifty June futures ended at 15,478; premium of 42.35 points.
  • Nifty June futures added 5.33% and 7,011 shares in Open Interest
  • Nifty Bank June futures ended at 35,394.05; premium of 252.6 points
  • Nifty Bank June futures shed 1.62% and 1,111 shares in Open Interest
  • Securities added to the ban list: Sun TV
All You Need To Know Going Into Trade On May 31
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