All You Need To Know Going Into Trade On May 5
U.S. equity futures and Asian stocks were steady Wednesday after a selloff in technology shares amid comments from Treasury Secretary Janet Yellen on interest rates that rattled markets. The dollar held gains.
S&P 500 contracts were little changed following a climb in commodity, financial and industrial sectors that helped the gauge pare losses. Holidays in key markets including Japan, China and South Korea will limit trade in Asian hours.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,593 as of 7:45 a.m after the news of an unscheduled speech from the RBI Governor in a few hours.
Commodities rallied to the highest in almost a decade as a rebound from the pandemic in the world’s largest economies stokes demand for metals, food and energy. Treasury futures were steady, with cash markets closed in Asia.
- 10:30am: Markit India PMI Services for April, prior 54.6
- 10:30am: Markit India PMI Composite for April, prior 56.0
Stocks To Watch
- Adani Ports & SEZ: To abandon the Myanmar project if the office of foreign assets control classifies Myanmar as a sanctioned country, or if OFAC says that the project violates the current sanctions. Write-down to not materially impact APSEZ as it is equivalent to 1.3% of the total assets. Adani has so far invested around $127 million in the project.
- SBI Cards and Payment Services: Plans to raise up to Rs 4.55 billion (Rs 455 crore) via NCD issue.
- Department of Telecommunications gave Bharti Airtel, Reliance Jio, Vodafone Idea and MTNL permission to conduct trials for use and application of 5G technology. The trial duration will be six months, including a two-month period for procurement and setting up of equipment. The operators have tied up with network equipment makers such as Ericsson, Nokia Corp., Samsung Telecommunications, and India’s Centre for Development of Telematics. Reliance JioInfocomm Ltd. will also be conducting trials using its indigenous technology.
- Godrej Properties: Sees the second wave of Covid-19 pandemic impacting sales and construction of projects in the April-June period, but the slowdown is not likely to be as intense as last year, Executive Chairman Pirojsha Godrej said in a post-earnings investor call. The company saw a 25% loss of labour following the second wave. Further, the funds raised via a recent QIP issue are likely to be deployed in FY22 and FY23 for land and project acquisition opportunities, Godrej said.
- Wipro: To set up an innovation centre in Holborn, London. The company will invest £16 million over the next four years in the 20,000 sq. ft. innovation centre which will serve as Wipro’s flagship centre in the United Kingdom and offer technology expertise to companies in the U.K. and globally. The centre will be integral to providing advanced digital, cybersecurity and cloud expertise to both established and upcoming enterprises.
- HDFC: Sold part of pledged shares in Reliance Infrastructure. The company sold 52.88 lakh shares, representing 2.01% of the share capital, of Reliance Infra for Rs 22.86 crore between March 24 and May 3.
- InterGlobe Aviation: Board to meet on May 7 to consider raising funds by issue of equity shares through QIP.
- Hindustan Aeronautics: Has signed a memorandum of understanding with Rolls-Royce to establish packaging, installation, marketing and services support for Rolls-Royce MT30 marine engines in India.
- Affle (India): Approved closure of QIP on May 4 and issue a price of Rs 5,200 per share for 11.53 lakh shares to be allotted to the eligible QIBs. The issue price is at a discount of 4.11% to the floor price of Rs 5,422.94 per share.
- Nifty Earnings: Tata Steel
- Non-Nifty Earnings: Adani Enterprises, Adani Green Energy, Angel Broking, Blue Dart Express, Ceat, Craftsman Automation, Deepak Nitrite, Gillette India, JM Financial, Kirloskar Ferrous Industries, Maithan Alloys, Oracle Financial Services Software, ABB Power Products and Systems India, Shalby
- India Pesticides Ltd. gets SEBI approval for Rs 800 crore IPO.
Earnings Post Market Hours
Adani Ports & SEZ Q4FY21 (Consolidated, YoY)
- Revenue up 24% at Rs 3,607.9 crore Vs Rs 2,921.19 crore (BBG Estimate: Rs 3,721 crore)
- Net Profit Rs 1,287 crore Vs Rs 334 crore (BBG Estimate: Rs 1,465 crore)
- Ebitda up 39% at Rs 2,287.01 crore Vs Rs 1,644.02 crore (BBG Estimate: Rs 2376 crore)
- Ebitda Margins at 63.4% Vs 56.3% (BBG Estimate: 63.9%)
- Has recommended dividend of Rs 5 per share for FY21
- Deepak Maheshwari resigned as Chief Financial Officer effective May 5
- To seek shareholders’ approval for increasing borrowing limits
RBL Bank Q4FY21 YoY
- NII down 11% at Rs 906 crore Vs Rs 1,021 crore (BBG Estimate: Rs 936 crore)
- Net profit down 34% at Rs 75 crore Vs Rs 114 crore (BBG Estimate: Rs 102 crore)
- Gross NPA ratio at 4.34% Vs 4.57% (QoQ)
- Net NPA ratio at 2.12% Vs 2.52% (QoQ)
- Provision Coverage Ratio at 72.2% vs 68.8% (QoQ)
- Operating profit grew 17% to Rs 877 crore
- Total deposits grew 26% to Rs 73,121 crore
- CASA grew 36% to Rs 23,264 crore
- Retail Deposits (as per LCR definition) grew 43% to Rs 27,236 crore
- Advances book at Rs 58,623 crore
- Retail advances grew 13% to Rs 34,390 crore
L&T Infotech Q4FY21 (Consolidated, QoQ)
- Revenue up 4% at Rs 3,269.4 crore Vs Rs 3,152.8 crore
- $ Revenue up 4.6% at $447.4 million Vs $427.8 million
- Constant currency revenue growth stood at 4.4%
- Net profit up 5% at Rs 545.2 crore Vs Rs 518.7 crore
- Ebit down 3% at Rs 632.9 crore Vs Rs 650.2 crore
- Ebit margins 19.4% Vs 20.6%
- Has recommended a final dividend of Rs 25 per share for FY21
IIFL Securities Q4FY21 (Consolidated, YoY)
- Revenue up 21% at Rs 238.12 crore Vs Rs 196.53 crore
- Net profit at Rs 77.32 crore Vs Rs 37.26 crore
- Ebitda up 14% at Rs 98.39 crore Vs Rs 86.02 crore
- Ebitda margins at 41.3% Vs 43.8%
- EPS at Rs 2.42 Vs Rs 1.16
Adani Total Gas Q4FY21 (Consolidated, YoY)
- Revenue up 25% at Rs 614.47 crore Vs Rs 490.32 crore
- Net profit up 18% at Rs 143.73 crore Vs Rs 121.41 crore
- Ebitda at up 22% at Rs 204.67 crore Vs Rs 167.95 crore
- Ebitda margins at 33.3% Vs 34.2%
- Has recommended dividend of Re 0.25 per share for FY21
Greaves Cotton Q4FY21 (Consolidated, YoY)
- Revenue up 35% at Rs 520.4 crore Vs Rs 386.19 crore
- Net profit at Rs 13.65 crore Vs Rs 0.57 crore
- Ebitda up 76% at Rs 41.59 crore Vs Rs 23.6 crore
- Ebitda margins at 8% Vs 6.1%
- Recommended a dividend of Re 0.2 per share for FY21
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 2.20 lakh shares on April 30.
- JSW Energy: Promoter Indusglobe Multiventures revoked pledge of 4.86 lakh shares on April 28. As reported on May 4.
- Reliance Power: HDFC sold 2.50 crore shares (0.89%) at Rs 5.23 per share.
- Magma Fincorp: Lavender Investments sold 1.51 crore shares (5.60%) at Rs 115.13 per share. True North Fund V Llp sold 2.33 crore shares (8.65%) at Rs 111.06 per share. Kuwait Investment Authority bought 17.90 lakh shares (0.66%) at Rs 111.05 per share. Nippon India Mutual Fund bought 50 lakh shares (1.85%) at Rs 111.05 per share. Aditya Birla Sun Life Mutual Fund bought 42.50 lakh shares (1.58%) at Rs 111.05 per share.
- Dwarikesh Sugar Industries: VLS Finance sold 12 lakh shares (0.64%) at Rs 48.03 per share.
Who's Meeting Whom
- UTI Asset Management Company: To meet Invesco Mutual Fund, Lazard and Dew Drops Investments on May 5.
- Ex-Date Interim Dividend: Crisil
- Record Date Interim Dividend: Gateway Distriparks
- Price Band Revised From 20% To 10%: Dalmia Bharat Sugar and Industries, Tata Steel Bsl
- Move Into Short-Term ASM Framework: Bajaj Hindusthan Sugar, Jubilant Ingrevia, Shree Renuka Sugars, Tata Metaliks, Dhampur Sugar Mills, Gujarat Ambuja Exports
- Move Out Of Short-Term ASM Framework: TV18 Broadcast, TTK Healthcare
- Move Into ASM Framework: Usha Martin, Gateway Distriparks, Sastasundar Ventures, Tata Steel Bsl, Dalmia Bharat Sugar and Industries
Money Market Update
- The rupee ended at 73.86 against the U.S. Dollar on Tuesday as compared to Monday's closing of 73.91.
- Nifty May futures ended at 14,551.90; premium of 55.4 points.
- Nifty May futures added 4.49% and 6,289 shares in Open Interest
- Nifty Bank May futures ended at 32,445; premium of 174.65 points
- Nifty Bank May futures added 1.3% and 776 shares in Open Interest
- Securities still in the ban list: Sun TV