All You Need To Know Going Into Trade On May 6
Asia stocks rose in early trade Thursday after technology shares weighed on U.S. markets, offsetting optimism over solid corporate earnings and economic reports.
Shares opened higher in Australia and Japan, where trading resumes after holidays. Futures pointed higher in Hong Kong and U.S. contracts were little changed after the tech-heavy Nasdaq 100 ended in the red, while the S&P 500 notched a small gain.
The benchmark 10-year Treasury yield edged higher in Asia’s morning. The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.5% to 14,764 as of 7:55 a.m.
The Bloomberg Commodity Spot Index returned to its highest level since 2011 as growth bets boost demand, while poor weather and transportation bottlenecks threaten supply.
Oil gave up earlier gains as traders assessed an increase in gasoline stockpiles.
Here are some key events to watch this week:
- Bank of England rate decision Thursday
- The April U.S. employment report is released on Friday
Stocks To Watch
- IDBI Bank: Cabinet Committee on Economic Affairs has approved the strategic divestment of IDBI Bank, along with a transfer of management control. The extent of respective shareholding to be divested by government and Life Insurance Corporation to be decided at the time of structuring of transaction in consultation with RBI.
- Tata Motors: Competition Commission of India has ordered a detailed probe against Tata Motors for alleged abuse of dominant position with respect to dealership agreements. The order has come on two complaints filed against Tata Motors, Tata Capital Financial Services and Tata Motors Finance. A clause in the dealership agreement allows Tata Motors to restrict, confine the territory of its dealers. Such a clause can create barriers to new entrants in the restricted market and can result in foreclosing of competition by hindering entry into the market, the competition regulator said.
- Cipla: Roche has received emergency use authorisation in India for its investigational antibody cocktail (Casirivimab and Imdevimab) used in the treatment of Covid-19. The EUA will now enable Roche to import the globally manufactured product batches to India which will be marketed and distributed in India through a strategic partnership with Cipla.
- Wipro: Has partnered with Transcell Oncologics to transform vaccine safety assessment using augmented intelligence. Transcell’s stem cell technology with the augmented intelligence capabilities of Wipro HOLMES® to improve the safety of global vaccine immunisation programs. Also, by applying AI to the vaccine development process, our solution can predict adverse neurovirulent impacts resulting from vaccinations, the company said.
- Godrej Industries: Board has approved the Information memorandum for issuance of up to 7,500 listed, unsecured NCDs of the face value of Rs 10 lakh each, aggregating to Rs 750 crore on a private placement basis.
- Maruti Suzuki: Total production in April stood at 1.59 lakh units. Total passenger vehicle production stood at 1.57 lakh units.
- Force Motors: The company's total production in April stood at 1,042 units. It reported domestic sales of 1,094 units and exports of 187 units.
- Indian Bank: Has declared Saravan Stores (Gold Palace) bad loan account as fraud and reported it to the RBI.
- Bank of India: Has approved allotment of up to 42.11 crore shares at Rs 71.23 per share aggregating up to Rs 3,000 crore on a preferential basis to the Government of India.
- Quess Corp: Has declared an interim dividend of Rs 7 per share for FY21. The record date for the same is May 13.
- Nifty Earnings: Tata Consumer Products, Hero MotoCorp
- Non-Nifty Earnings: Adani Power, Adani Transmission, Apcotex Industries, Bombay Burmah Trading Corp, Blue Star, Caplin Point Laboratories, Century Textiles & Industries, Coforge, CreditAccess Grameen, Foseco India, Hikal, ICRA, IIFL Finance, Procter & Gamble Health, Praj Industries, Raymond, Solara Active Pharma Sciences, Sundram Fasteners
Earnings Post Market Hours
Tata Steel Q4FY21 (Consolidated, YoY)
- Revenues up 38.8% at Rs 49,977.4 crore Vs Rs 36,009.37 crore (BBG Estimate: Rs 46,105.4 crore)
- Net profit at Rs 6,644.15 crore Vs Net loss of Rs 1,481.34 crore (BBG Estimate: Rs 7,421.8 crore)
- Ebitda up 2.95 times at Rs 14,184.1 crore Vs Rs 4,799.2 crore (BBG Estimate: Rs 12,820.1 crore)
- Margins at 28.4% Vs 13.3% (BBG Estimate: 27.8%)
- FY21 net debt stood at Rs 75,389 crore; 28% lower compared to the previous year end
- Reduced gross debt by over Rs 20,000 crore during the quarter
- Full year de-leveraging was about Rs 28,000 crore
- Recommended a dividend of Rs 25 per for FY21
Adani Green Energy Q4FY21 (Consolidated, YoY)
- Revenue up 42% at Rs 986 crore Vs Rs 696 crore
- Net profit up 86% at Rs 104 crore Vs 56 crore
- Ebitda at Rs 626 crore Vs Rs 224 crore
- Ebitda Margins at 63.5% Vs 32.2%
- Sale of Energy up 24% to 1,614 million units Vs 1,303 million units
- Sees Rs 15,000 crore of capex in FY22 Vs Rs 8,500 crore spent in FY21
- Added 925MW operational capacity in FY21
- Anupam Rasayan India: Plutus Wealth Management LLP bought 10 lakh shares (1%) at Rs 647.25 per share.
- Ex-Date Interim Dividend: Aptech, Global Education, Allsec Technologies
- Ex-Date Buyback: InfoBeans Technologies
- Ex-Date Income Distribution: Embassy Office Parks REIT
- Ex-Date Bonus Issue: Prime Fresh
- Record Date Interim Dividend: Crisil
- Move Out Of Short-Term ASM Framework: Control Print, Dhampur Sugar Mills, RattanIndia Enterprises
- Move Into ASM Framework: eClerx Services, Meghmani Organics, Dhampur Sugar Mills, RattanIndia Enterprises
Money Market Update
- The rupee ended at 73.91 against the U.S. Dollar on Wednesday as compared to Tuesday's closing of 73.86.
- Nifty May futures ended at 14,694.20; premium of 76.35 points.
- Nifty May futures shed 1.00% and 1,456 shares in Open Interest
- Nifty Bank May futures ended at 33,060.70; premium of 277 points
- Nifty Bank May futures shed 0.38% and 231 shares in Open Interest
- Securities still in the ban list: Sun TV
- Securities added to the ban list: Tata Chemicals