All You Need To Know Going Into Trade On Nov. 11

Stocks in Hong Kong led most Asian shares lower Monday, after two protesters were shot by police during the morning commute.

Hong Kong’s Hang Seng Index lost about 1 percent at the open as tensions flared. Shares in Shanghai slid. Japanese shares inched higher. Contracts on the S&P 500 retreated. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.1 percent to 11,934 as of 7:25 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today.

• The S&P 500 Index ticked up to a new closing high on Friday, surpassing a record set the previous session and registering its fifth consecutive weekly gain, sparked by optimism that global growth troubles are dissipating.
• Oil erased an early loss on Friday, capping a weekly gain as investors shrugged off a comment by President Donald Trump that the U.S. hasn’t agreed to fully roll back tariffs with China.

Get your daily fix of global markets here.

Economic Data To Watch

• 11:30 a.m.: India car sales data for October
• 5:30 p.m.: India September Industrial Output YoY; (Estimate: -2.3 percent) (prior-1.1 percent)

Earning Reactions To Watch

Nestle (Q3, CY19 YoY)

• Revenue rose 9.4 percent to Rs 3,215.8 crore.
• Net profit rose 33.5 percent to Rs 595.4 crore.
• Ebitda rose 3.6 percent to Rs 751.4 crore.
• Margin stood at 23.4 percent versus 24.7 percent.
• Other Income fell 16 percent to Rs 56.4 crore.
• Export sales fell 7.1 percent due to lower coffee exports to Turkey.

Ashok Leyland (Q2, YoY)

• Revenue fell 48.4 percent to Rs 3,929.5 crore.
• Net profit fell 92.6 percent to Rs 38.9 crore.
• Ebitda fell 72.4 percent to Rs 228.5 crore.
• Margin stood at 5.8 percent versus 10.9 percent.

Sobha (Q2, YoY)

• Revenue rose 19 percent to Rs 783.9 crore.
• Net profit rose 9.1 percent to Rs 67 crore.
• Ebitda rose 83.6 percent to Rs 257.4 crore.
• Margin stood at 32.8 percent versus 21.3 percent.
• Finance Costs rose 3 times to Rs 166.7 crore.

Tata Power (Q2, YoY)

• Revenue rose 4.4 percent to Rs 7,677.8 crore.
• Net profit fell 19.5 percent to Rs 270.2 crore.
• Ebitda rose 29.2 percent to Rs 2,256 crore.
• Margin stood at 29.4 percent versus 23.8 percent.
• Other Income was at Rs 226.2 crore versus Rs 104.6 crore.
• One-off tax impact of Rs 153 crore.
• Deferred Tax Liability of Rs 75 crore recognised in the current quarter.

Bank of Baroda (Q2, YoY)

• Net interest income rose 56.4 percent to Rs 7,028 crore.
• Net profit rose 73.2 percent to Rs 736.7 crore.
• Provisions stood at Rs 4,209.2 crore versus Rs 2,429.5 crore (Rs 3284.9 crore QoQ)
• Gross NPA stood at 10.25 percent versus 10.28 percent QoQ.
• Net NPA was at 3.91 percent versus 3.95 percent QoQ.

Equitas Holdings (Q2, YoY)

• Net interest income rose 27.4 percent to Rs 377.9 crore.
• Net profit fell 20.1 percent to Rs 41.3 crore.
• Advances rose 33 percent to Rs 13,269 crore.

Teamlease Services (Q2, YoY)

• Revenue rose 16.2 percent to Rs 1,267.8 crore.
• Net profit fell 18.9 percent to Rs 20.2 crore.
• Ebitda rose 1.7 percent to Rs 24.5 crore.
• Margin stood at 1.9 percent versus 2.2 percent.

IDBI Bank (Q2, YoY)

• Net Interest Income rose 25.4 percent to Rs 1,631.5 crore.
• Net loss was at Rs 3,458.8 crore versus net loss of Rs 3,602.5 crore.
• Provisions were at Rs 3,544.9 crore versus Rs 5,481.6crore (Rs 7,009.5 crore QoQ).
• GNPA was at 29.43 percent versus 29.12 percent QoQ.
• NNPA stood at 5.97 percent versus 8.02 percent QoQ.

Akzo Nobel (Q2, YoY)

• Revenue fell 11.2 percent to Rs 633.8 crore.
• Net profit rose 34 percent to Rs 49.3 crore.
• Ebitda rose 11.7 percent to Rs 72.8 crore.
• Margin stood at 11.5 percent versus 9.1 percent.

Narayana Hrudayalaya (Q2, YoY)

• Revenue rose 15.6 percent to Rs 822.3 crore.
• Net profit rose 3.3 times to Rs 45.4 crore.
• Ebitda rose 66.9 percent to Rs 121.7 crore.
• Margin stood at 14.8 percent versus 10.3 percent.

Chalet Hotels (Q2 , YoY)

• Revenue was flat at Rs 235.4 crore versus Rs 234.5 crore.
• Net profit was at Rs 10.3 crore versus net loss of Rs 12.5 crore.
• Ebitda rose 2.6 times to Rs 81.6 crore.
• Margin stood at 34.6 percent versus 13.3 percent.

NTPC (Q2, YoY)

• Revenue rose 2.3 percent to Rs 22,764.6 crore.
• Net profit rose 34.5 percent to Rs 3,262.4 crore.
• Ebitda rose 13.5 percent to Rs 6,346.2 crore.
• Margin stood at 27.9 percent versus 25.1 percent.
• Other Income rose 4 times to Rs 8,93.7 crore.

JK Cement (Q2, YoY)

• Revenue rose 14 percent to Rs 1,254.2 crore.
• Net profit rose 68.2 percent to Rs 108.8 crore.
• Ebitda rose 49.6 percent to Rs 254 crore.
• Margin stood at 20.3 percent versus 15.4 percent.
• Power and fuel expenses were down 7 percent to Rs 224.4 crore.

Affle (Q2, YoY)

• Revenue rose 40.2 percent to Rs 84.7 crore.
• Net profit rose 51.5 percent to Rs 15.6 crore.
• EBIT rose 46.9 percent to Rs 18.8 crore.
• Margin at 22.2 percent versus 21.2 percent.

Amara Raja Batteries (Q2, YoY)

• Revenue fell 3.3 percent to Rs 1,695.3 crore.
• Net profit rose 81.9 percent to Rs 218.6 crore.
• Ebitda rose 23.4 percent to Rs 292 crore.
• Margin stood at 17.2 percent versus 13.5 percent.

Lakshmi Vilas Bank (Q2, YoY)

• Net Interest Income fell 27.4 percent to Rs 109.6 crore.
• Net loss was at Rs 357.2 crore versus net loss of Rs 132.3 crore.
• Provision were at Rs 303.1 crore versus Rs 146.1crore (Rs 154.6crore QoQ).
• GNPA stood at 21.25 percent versus 17.3 percent QoQ.
• NNPA was at 10.47 percent versus 8.3 percent QoQ.

VRL Logistics (Q2, YoY)

• Revenue rose 1.3 percent to Rs 523.8 crore.
• Net profit rose 68.4 percent to Rs 34.7 crore.
• Ebitda rose 35.3 percent to Rs 73.2 crore.
• Margin was at 14 percent versus 10.5 percent.

Oil India (Q2, QoQ)

• Revenue fell 4.7 percent to Rs 3221.1 crore.
• Net profit fell 21.9 percent to Rs 661.5 crore.
• Ebitda fell 8.1 percent to Rs 1243.7 crore.
• Margin stood at 38.6 percent versus 40 percent.

Nifty Earnings To Watch

• Britannia Industries
• Adani Ports and Special Economic Zone
• Coal India
• Hindalco Industries

Other Earnings To Watch

• Motherson Sumi Systems
• Embassy Office Parks REIT
• Phoenix Mills
• NHPC
• NMDC
• Oil India
• Entertainment Network (India)
• Jindal Stainless
• Bombay Dyeing & Mfg Company
• Alembic
• Alkem Laboratories
• General Insurance Corporation of India
• Globus Spirits
• Mahanagar Gas
• Metropolis Healthcare
• Astra Microwave Products
• AstraZeneca Pharma
•   Astron Paper & Board Mill
• Atul Auto
• Eros International Media
• Hindustan Aeronautics
• Balrampur Chini Mills
• Bliss GVS Pharma
• Aban Offshore
• ADF Foods
• Deccan Cements
• Filatex India
• FINOLEX INDUSTRIES
• Harrisons  Malayalam
• Hind Rectifiers
• IFGL Refractories
• INDIA CEMENTS
• Indian Terrain Fashions
• Indo Count Industries
• Ind-Swift Laboratories
• KEI Industries
• Kolte - Patil Developers
• Linde India
• Nesco
• Olectra Greentech
• Omax Autos
• Punjab & Sind Bank, Rolta India
• Shalby
• Shankara Building Products
• Sheela Foam
• SJVN
• Sundaram Finance
• Suprajit Engineering
• Tourism Finance Corporation of India

Indian ADRs

Stocks To Watch

• Indo Count Industries said that it has paid Rs 83 crore to the Customs Department and the balance amount will be paid by the company. The Customs Commissioner had passed an adjudication order of around Rs 104 crore seeking refund of export benefits on Nov. 7.
• Piramal Enterprises: ICRA has downgraded Piramal’s promoter entity Aasan Corp's rating on Rs 1,900 crore worth outstanding non-convertible debentures to ‘ICRA A-’. The downgrade driven by deterioration in operating environment owing to tight liquidity in market. Of the total guaranteed debt of Rs 1,675 crore, Rs 1,350 crore is due for repayment in the fiscal year 20.  Aasan's loans are guaranteed by Piramal Enterprises' promoter entities like The Sri Krishna Trust and PRL Realtors. (ICRA Rating Report)
• Laurus Labs said that it has received two observations from U.S. Food and Drug Administration for its FDF & API Integrated Facility, Unit 2 at Visakhapatnam. Company said that these observations are procedural in nature.
• IDBI Bank: Board approved the proposal for sale of entire stake of the Bank in IDBI Asset Management and IDBI Mutual Fund Trustee Company and the execution of the Share Purchase Agreement in this regard.
• Aurobindo Pharma clarified on the news of company’s buyout of Sandoz assets being delayed on FTC query is factually incorrect.
• Lupin received U.S. FDA approval for company’s Zileulon Extended-Release Tablets to market generic equivalent of Zyflo CR for treatment of asthma.
• JSW Steel: India Ratings reaffirmed long-term issuer rating to "IND AA" for NCD program of the company. The Outlook on the long-term rating has been revised to Negative from Stable. The Outlook revision reflects the agency’s view of fall in per ton margins and its impact on company’s credit profile in 2019-20.
• ICICI Bank said that there is no impact on Moody’s downgrade on Nov. 8. Moody's has announced a rating action on the MTN program rating for the Bank's Bahrain branch to align with Bahrain's sovereign rating. There are no bonds outstanding from the Bahrain branch.
• TTK Prestige has completed expansion facilities at its Tamil Nadu and Gujarat facilities for manufacture of stainless-steel pressure cookers/kitchenware and the commercial production has commenced.
• Raymond to seek shareholders nod to issue equity shares and preference shares aggregating to Rs 350 crore to promoter group company JK Investo Trade on Dec. 2.
• CreditAccess Grameen has completed allotment of NCDs worth Rs 214 to Nederlandse Financierings.
• NDTV received notice from Delhi High Court with regard to a suit for permanent and mandatory injunction, directions and damages instituted by Luv Ranjan claiming damages of Rs 25 crore for defamation. The company has rejected any charges of defamation and contest the matter on Dec. 9.
• Narayana Hrudayalaya: Board approved closure of operation of Whitefield (Bengaluru) unit of the company.
• Goa Carbon October production up 5 percent at 11,584 million tonne versus 10,987.6 MT.
• E.I.D Parry October sugar sales fell 14 percent at 0.24 MT versus 0.28 MT.
• Apollo Micro Systems received order worth Rs 16.9 crore from Ministry of Defense, Government of India.
• Zee Media term loan rating cut to ‘BB’ from ‘BBB’ by Care Ratings.
• Onward Technologies’ arm has initiated full repayment of all outstanding debt.
• Nila Infrastructures received work order worth Rs 50.3 crore from Ahmedabad Municipal Corporation.
• NTPC: Board has approved merger of wholly owned arm Kanti Bijlee Utpadan Nigam and Nabinagar Power Generating Company with self.
• 8K Miles Software Services: Management replied on impact of Audit Qualifications stating that the management have clarified and worked in tandem with audit team. The management also affirmed that company’s arm BK Miles Media has no nexus except for the common promoters in the group transactions.
• Infosys along with certain current and former key managerial personnel have submitted applications with the Registrar of Companies for compounding of certain alleged offences that pertain to matters relating to the severance agreement executed with the former Chief Financial Officer , Rajiv Bansal.
• Vodafone Idea: Brickwork Ratings downgraded ratings NCD from ‘BWR A+’ to ‘BWR A-’, with outlook changing from Negative to Rating Watch with Negative Implications.
• L&T has entered into an amended agreement with Canadian Pension Plan Investment Board, where the Board will hold 48.99 percent stake in the company’s arm L&T Infrastructure Developments via Compulsorily Convertible Preference Shares.
• Kesoram Industries: The National Company Law Tribunal Kolkata has approved demerger of the Tyre business of the company to a separate company- Birla Tyres with effect from Jan. 1, 2019.

Brokerage Radar

IDFC Securities on United Breweries

• Maintained ‘Outperform’; cut price target to Rs 1,351 from Rs 1,455.
• Weak H1, expect recovery from the second half.
• Key positives: ahead of industry volume growth.
• Key negatives: higher input cost & other expenses.
• Factoring weak September quarter, cut earnings estimates for the current and the next financial year by 14 percent and 9 percent respectively.

Kotak Securities on M&M

• Maintained ‘Buy’; hiked price target to Rs 820 from Rs 770.
• September quarter’s Ebitda above estimates led by cost-cutting initiatives.
• Reasonable valuations and strong growth outlook for tractors in medium term drive Buy rating.

Citi on Tata Power

• Maintained ‘Buy’ with a price target of Rs 76.
• Healthy September quarter; decent debt paydown.
• CGPL saw an operational improvement in the second quarter.
• Made progress on non-core asset monetisation.

IDFC Securities on Adani Transmission

• Maintained ‘Underperform’ with a price target of Rs 123.
• Gains significant market share in transmission bids.
• Key positives: won five new TBCB projects; higher availability of transmission assets.
• Key negatives: lower profitability of Mumbai DISCOMs.

IDFC Securities on Dr Lal Pathlabs

• Maintained ‘Neutral’; hiked price target to Rs 1,316 from Rs 1,104.
• Inline quarter; cost control aids profitability.
• Hike earnings estimates for the next two financial years by 21 percent and 19 percent respectively primarily account for lower tax rates.
• At current price, valuations are rich and offer limited upsides.

Nomura on Bharat Forge

• Maintained ‘Neutral’; hiked price target to Rs 458 from Rs 408.
• September quarter below; downcycle playing out.
• See further risks to domestic and export CVs; non-autos also slowing.
• Key upside risk is winning a defence gun order.

Citi on Gujarat State Petronet

• Maintained ‘Buy’; hiked price target to Rs 270 from Rs 255.
• September quarter: Operational beat; volumes inch higher QoQ.
• Ebitda ahead, though margins optically lower.
• Overall volumes in the near-term should stay in line with the trends in the first half.

Kotak Securities on Eicher Motors

• Maintained ‘Sell’; hiked price target to Rs 17,000 from Rs 15,000.
• September quarter review: Ebitda margin continues its downward trend.
• Compliance costs headwind and demand slowdown leading to margin pressures.
• Performance of VECV weak due to volume decline and higher discounts.
• Volume outlook remains quite weak.

Kotak Securities on BPCL

• Maintained ‘Sell’; hiked price target to Rs 420 from Rs 385
• September quarter was impacted by dismal refining performance, partly offset by higher other income
• Lower Ebitda, net income and higher capex in the first half of the current financial year; uncertainty on tax rates for now.
• BPCL’s valuation premium over HPCL/IOCL pricing in upside from potential strategic divestment.

Citi On Bank of Baroda

• Maintained ‘Buy’ with a price target of Rs 115.
• Q2 – NIM improves; slippages remain high.
• Muted loan growth; PPOP led by treasury.
• Stable NPA coverage.

On GAIL India

Citi

• Maintained ‘Neutral’; cut price target to Rs 142 from Rs 176.5.
• September quarter: Across the board miss; gas trading falls sharply.
• Gas trading: lower spot prices bite.
• Petchem: volumes improve but margins disappoint.

Jefferies

• Maintained ‘Buy’ with a price target of Rs 190.
• September quarter review: soft quarter due to weak trading segment.
• GAIL expects rebound here but we are less sure.

On Nestle India

IDFC Securities

• Maintained ‘Outperform’; hiked price target to Rs 15,313 from Rs 12,405.
• Revenue outperformance continues.
• Key positives: healthy domestic sales.
• Key negatives: higher input cost led contraction in gross margins.

Jefferies

• Maintained ‘Hold’ with a price target of Rs 13,400.
• September quarter review: Strong topline but margins weaken further.
• Nestle is executing well with focus on broadening the product portfolio.
• Given stretched valuations and modest earnings growth, maintain Hold.

Trading Tweaks

• Seya Industries to move into ASM Framework.
• Vikas Proppant & Granite, Mercator to move out of ASM Framework.
• Seya Industries, Vikas EcoTech, Phyto Chem price band revised to 5 percent.
• Indo Count Industries, MSTC, Waterbase, Zee Learn to move into short term ASM Framework.

Who’s Meeting Whom

• IIFL Finance to meet IDFC MF, Motilal Oswal AMC and other investors from Nov. 11-13.
• Tata Steel to meet B&K Securities and Barings Asset Management from Nov. 11-29.
• Sudarshan Chemical Industries to meet Dalton Investment and Marval Capital on Nov. 14.
• Tata Communications to meet RARE Enterprises, Enam and other investors from Nov. 11-14.

Insider Trading

• Zensar Technologies promoter RPG Ventures acquired 42,000 shares on Nov. 4.
• Ultratech Cement promoter group Aditya Marketing & Manufacturing sold 57,000 shares on Nov. 5.

Money Market Update

• The rupee closed at 71.28/$ versus 70.97/$ on Thursday.

F&O Cues

Index Futures

• Nifty November futures closed at 11,945.3, premium of 37.2 points versus 35.9 points.
• Nifty November Futures open interest down 2.4 percent, sheds 3.8 lakh shares in open interest.
• Nifty Bank November futures closed at 30,759, premium of 9.6 points versus 31.3 points.
• Nifty Bank November futures series open interest up 19 percent, adds 2.6 lakh shares in open interest.

Options

• Nifty PCR at 1.26 versus 1.46 (across all series).

Nifty Weekly Expiry: Nov. 14

• Max open interest on call side at 12,000 (26 lakh shares).
• Max open interest on put side at 11,700 (12.8 lakh shares).
• Open interest addition seen at 12,000C (12 lakh shares), 12,100C (+9.5 lakh shares), 11,800P (+2.4 lakh shares).

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (19.1 lakh shares).
• Max open interest on put side at 11,600 (20.4 lakh shares).