All You Need To Know Going Into Trade On May 7
Asian stocks opened slightly higher after U.S. indices gained on positive economic data.
Shares edged up in Japan, South Korea and Australia. U.S. contracts were in the green after rallies in U.S. benchmarks overnight, which included a fresh record for the Dow Jones Industrial Average.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.3% to 14,845 as of 7:15 a.m.
Investors will be watching for weakness at China’s open, after Bloomberg News reported the Biden administration is likely to preserve limits on U.S. investments in certain Chinese companies.
U.S. economic reports helped sentiment, as applications for state unemployment insurance fell to a fresh pandemic low, and separate data showed a rebound in productivity. Traders now turn to Friday’s payrolls numbers.
Elsewhere, spot iron ore broke $200 a tonne for the first time, while copper approached a record high. Oil climbed.
Stocks To Watch
- SBI Life: Carlyle Group plans to sell up to a 3.5% stake in SBI Life at minimum Rs 945 a share.
- M&M: To open an advanced design centre for mobility products in the U.K. The company will set up Mahindra Advanced Design Europe in the West Midlands, U.K. The new Centre of Excellence will be a part of the Mahindra Global Design Network that includes the Mahindra Design Studio in Mumbai, India, and Pininfarina Design in Turin, Italy. This renews the company's commitment to design and develop dynamic and authentic products with global appeal.
- Zensar Technologies: U.K.-based fintech company, Infinity Circle, has selected Zensar for end-to-end development of its next-gen wealth management platform.
- Sadbhav Infrastructure Project: Has entered into the Debenture Trust Deed to raise Rs 700 crore from the investors led by Allianz Global Investors and AMP Capital out of which a sum of Rs 550 crore has already been funded by the investors. Further SIPL has sold 7% of units in IndInfravit Trust to CPP Investments for a total consideration of Rs 441 crore. The above long term funding and sale of units will help the company to inter alia meet repayment of all its existing short term debt obligations and to fund the ongoing portfolio of Hybrid Annuity Model road assets of the company
- Aurionpro Solutions: To exit the cybersecurity business with the sale of its investment to Forcepoint LLC., USA. The deal, for the divestment of all stake held by Aurionpro in its cybersecurity business, is valued at a consideration of $9.6 million (approximately Rs 71 crore). Out of the total consideration, Rs 45 crore will be received upfront and the remaining amount to be received in tranches over a year upon fulfilment of contractual warranties and earn out.
- NLC India: Has allotted 13,000 Commercial Papers of the face value of Rs 5 lakh each, aggregating to Rs 650 crore.
- Nifty Earnings: HDFC, Ultratech Cement
- Non-Nifty Earnings: Cholamandalam Investment and Finance Company, Dabur India, EIH, Great Eastern Shipping Co, Godrej Agrovet, Grindwell Norton, Kansai Nerolac Paints, Mangalore Refinery & Petrochemicals, Navin Fluorine International, R Systems International, Steel Strips Wheels, Sutlej Textiles & Industries
- Nuvoco Vistas Corp. seeks SEBI approval for up to Rs 5,000 crore IPO
- RBI to conduct Rs 2 lakh crore, 14-day variable rate reverse repo auction
- India to sell dated govt bonds for Rs 32,000 crore via auction, with an option to retain additional subscription up to Rs 80,000 crore against the securities
Earnings Post Market Hours
Hero MotoCorp Q4FY21 (Standalone, QoQ)
- Revenue down 11% at Rs 8,686 crore Vs Rs 9,776 crore (BBG estimate: Rs 8,416 crore)
- Net profit down 17% at Rs 865 crore Vs Rs 1,084 crore (BBG estimate: Rs 799 crore)
- Ebitda down 14% at Rs 1,211 crore Vs Rs 1,413 crore (BBG estimate: Rs 1,063 crore)
- Margins at 13.9% Vs 14.5% (BBG estimate: 12.6%)
- Recommended final dividend of Rs 25 per share and a special dividend of Rs 10 per share
Tata Consumer Q4FY21 (QoQ)
- Revenue down 1% at Rs 3,037.22 crore Vs Rs 3,069.56 crore (BBG Estimate: Rs 2,856.4crore)
- Net profit down 44% at Rs 133.34 crore Vs Rs 237.03 crore (BBG Estimate: Rs 186.9 crore)
- Ebitda down 17% at Rs 300.2 crore Vs Rs 361.33 crore (BBG Estimate: Rs 353.2 crore)
- Margin at 9.9% Vs 11.8% (BBG Estimate: 12.4%)
- Recommended a final dividend of Rs 4.05 per share
- Employee benefits expense rose 12.02% to Rs 270.22 crore
- Other expenses rose 16.3% to Rs 404.40 crore
Adani Transmission Q4FY21 (Consolidated, QoQ)
- Revenue up 5% at Rs 2,726.61 crore Vs Rs 2,597.02 crore
- Net profit down 40% at Rs 238.42 crore Vs Rs 395.31 crore
- Ebitda down 18% to Rs 827.43 crore Vs Rs 1,004.18 crore
- Ebitda margins 30.3% Vs 38.7%
- To seek shareholders' nod to raise up to Rs 2,500 crore
Blue Star Q4FY21 (Consolidated, QoQ)
- Revenue up 43% at Rs 1,611.56 crore Vs Rs 1,123.89 crore
- Net profit up 85% at Rs 67.97 crore Vs Rs 36.72 crore
- Ebitda up 25% at Rs 101.81 crore Vs Rs 81.56 crore
- Ebitda margins at 6.3% Vs 7.3%
- Recommended a final dividend of Rs 4 per share for FY21
Praj Industries Q4FY21 (Consolidated, QoQ)
- Revenue up 63% at Rs 567.10 crore Vs Rs 347.78 crore
- Net profit up 85% at Rs 52.01 crore Vs Rs 28.16 crore
- Ebitda up 88% at Rs 74.93 crore Vs Rs 39.79 crore
- Ebitda margins at 13.2% Vs 11.4%
- Recommended a dividend of Rs 2.16 per share
CreditAccess Grameen Q4FY21 (Standalone, YoY)
- NII up 43% at Rs 421.08 crore Vs Rs 293.91 crore
- Net profit at Rs 72.27 crore Vs Rs 22.81 crore
Century Textiles & Industries Q4FY21 (Consolidated, QoQ)
- Revenue up 9% at Rs 840.01 crore Vs Rs 769.77 crore
- Net loss of Rs 8.41 crore Vs net profit of Rs 32.11 crore
- Ebitda up 1% at Rs 75.80 crore vs Rs 75.04 crore
- Ebitda Margins at 9% Vs 9.7%
- Recommended a dividend of Re 1 per share for FY21
Pledge Share Details
- Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 12 lakh shares on May 5.
- Adani Ports And Special Economic Zone: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 8.50 lakh shares on May 5.
As reported on May 6.
- Reliance Power: IndusInd Bank sold 1.50 crore shares (0.53%) at Rs 5.5 per share. HDFC sold 2.13 crore shares (0.76%) at Rs 5.14 per share.
- Reliance Communications: HDFC sold 2.65 crore shares (0.96%) at Rs 1.62 per share.
- Ex-Date Stock Split: Vaibhav Global
- Record Date Interim Dividend: Aptech, Allsec Technologies
- Record Date Income Distribution: Embassy Office Parks REIT
- Record Date Buyback: InfoBeans Technologies
- Price Band Revised From 10% To 5%: Hikal, Angel Broking
- Move Into Short-Term ASM Framework: Best Agrolife, The Great Eastern Shipping Company
- Move Out Of Short-Term ASM Framework: Macrotech Developers, Panacea Biotec, Lemon Tree Hotels, Everest Kanto Cylinder, Rajratan Global Wire, Jay Bharat Maruti
Money Market Update
- The rupee ended at 73.77 against the U.S. Dollar on Thursday as compared to Wednesday's closing of 73.91.
- Nifty May futures ended at 14,780.45; premium of 55.65 points.
- Nifty May futures added 3.84% and 5,566 shares in Open Interest
- Nifty Bank May futures ended at 33,011.30; premium of 183.5 points
- Nifty Bank May futures shed 6.90% and 4,153 shares in Open Interest
- Securities that continue to be on the ban list: Sun TV, Tata Chemicals
- Securities added to the ban list: BHEL