All You Need To Know Going Into Trade On Nov. 14

Stocks in Asia opened mixed Thursday ahead of a slew of Chinese economic data and after a lacklustre session on Wall Street.

Benchmarks in Tokyo and Sydney were little changed in early trading.The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.23 percent to 11,892 as of 7:10 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.

• U.S. stocks edged higher, stalling below all-time highs as investors remained skittish about whether the U.S. and China will be able to hash out a partial trade deal.
• Oil advanced for the first time in three days after a report that OPEC sees a potential reduction in supply from outside of the group.

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Datawatch

• India to release October wholesale price inflation.

Earning Reactions To Watch

SpiceJet (Q2, YoY)

• Revenue rose 52 percent to Rs 2,845 crore.
• Net loss at Rs 463 crore versus Net loss at Rs 389 crore.
• Ebitda loss at Rs 54 crore versus Ebitda loss at Rs 44 crore.
• Yields rose 1.1 percent to Rs 3.54.
• Other Income rose 8.4 times to Rs 228 crore.

Pidilite Industries (Q2, YoY)

• Revenue rose 2.8 percent to Rs 1,806.6 crore. (Estimate Rs 1,929 crore).
• Net profit rose 40 percent to Rs 324.2 crore. (Estimate Rs 317 crore).
• Ebitda flat at Rs 368.2 crore versus Rs 366.6 crore. (Estimate Rs 433 crore).
• Margin stood at 20.4 percent versus 20.9 percent. (Estimate 22.4 percent).

Blue Star (Q2, YoY)

• Revenue rose 21.1 percent to Rs 1,249.5 crore. (Estimate Rs 1,106 crore).
• Net profit rose 93.4 percent to Rs 37.9 crore. (Estimate Rs 32.7 crore).
• Ebitda rose 26.7 percent to Rs 73.6 crore. (Estimate Rs 64.6 crore).
• Margin stood at 5.9 percent versus 5.6 percent. (Estimate 5.8 percent).

Aarti Industries (Q2, YoY)

• Revenue fell 21.6 percent to Rs 1,019 crore versus Rs 1,299.5 crore. (Estimate Rs 1,230 crore).
• Net profit rose 15.7 percent to Rs 142.2 crore. (Estimate Rs 140 crore).
• Ebitda fell 1.5 percent to Rs 238.5 crore versus Rs 242.1 crore. (Estimate Rs 251.1crore).
• Margin stood at 23.4 percent versus 18.6 percent. (Estimate 20.4 percent).

RITES (Q2, YoY)

• Revenue rose 68.4 percent at Rs 746.2 crore versus Rs 443 crore.
• Net profit rose 2.2 times at Rs 232.6 crore versus Rs 107.7 crore.
• Ebitda rose 31.4 percent at Rs 195.8 crore versus Rs 149 crore.
• Margin stood at 26.2 percent versus 33.6 percent.
• Other Income rose 4.1 times to Rs 141.6 crore.

Bata (Q2, YoY)

• Revenue rose 7.3 percent to Rs 722 crore.
• Net profit rose 29.9 percent to Rs 71.3 crore.
• Ebitda rose 2.1 times to Rs 185.4 crore.
• Margin was at 25.7 percent versus 12.9 percent.

Cadila Healthcare (Q2, YoY)

• Revenue rose 13.7 percent to Rs 3,366.6 crore.
• Net profit fell 74.3 percent to Rs 107.2 crore.
• Ebitda fell 9 percent at Rs 625.6 crore.
• Margin was at 18.6 percent versus 23.2 percent.

Finolex Cables (Q2, YoY)

• Revenue flat at Rs 715.8 crore versus Rs 714 crore.
• Net profit rose 76.6 percent to Rs 126.8 crore.
• Ebitda rose 13.1 percent to Rs 97 crore.
• Margin stood at 13.6 percent versus 12 percent.

Bharat Heavy Electricals (Q2, YoY)

• Revenue fell 8.2 percent to Rs 6226.9 crore.
• Net profit rose 40.7 percent to Rs 121.7 crore.
• Ebitda rose 11.5 percent to Rs 265.2 crore.
• Margin was at 4.3 percent versus 3.5 percent.

Thermax (Q2, YoY)

• Revenue rose 12.5 percent to Rs 1605.9 crore.
• Net profit fell 65.5 percent to Rs 25.7 crore.
• Ebitda rose 18.3 percent at Rs 130.1 crore versus Rs 110 crore.
• Margin was at 8.1 percent versus 7.7 percent.
• Deferred tax payment of Rs 67.5 crore in the current quarter.
• Order Book at Rs 5,334 crore.

Muthoot Finance (Q2, YoY)

• Net interest income rose 35.1 percent to Rs 1,631.5 crore.
• Net profit rose 76.7 percent to Rs 899.8 crore.

Lemon Tree Hotels (Q2, YoY)

• Revenue rose 18.7 percent to Rs 152.8 crore.
• Net loss at Rs 2.2 crore versus Net Profit at Rs 5.7 crore.
• Ebitda rose 34.7 percent to Rs 48.5 crore.
• Margin was at 31.7 percent versus 28 percent.

Apex Frozen Foods (Q2, YoY)

• Revenue rose 5.4 percent to Rs 269.4 crore.
• Net profit rose 10.6 percent to Rs 21.9 crore.
• Ebitda rose 49 percent to Rs 37.1 crore.
• Margin was at 13.8 percent versus 9.7 percent.

IRCTC (H1FY20, YoY)

• Revenue rose 3.8 percent to Rs 972.6 crore.
• Net profit rose 14 percent to Rs 172.2 crore.
• Ebitda rose 15 percent to Rs 245.8 crore.
• Margin stood at 25.3 percent versus 22.8 percent.
• Catering Segment Revenue rose 12 percent to Rs 538.7 crore.

NALCO (Q2, YoY)

• Revenue fell 22.3 percent to Rs 2,363.6 crore.
• Net loss at Rs 28.4 crore versus Net Profit at Rs 510 crore.
• Ebitda fell 96.2 percent to Rs 32.3 crore.
• Margin stood at 1.4 percent versus 28 percent.

Nifty Earnings To Watch

• Grasim Industries
• Oil & Natural Gas Corporation
• Vedanta
• Bharti Airtel

Other Earnings To Watch

• Power Finance Corporation
• SAIL
• Page Industries
• HEG
• Minda Industries
• Hindustan Construction
• Spencer's Retail
• Sreeleathers
• Hindustan Copper
• Glenmark Pharmaceuticals
• NBCC (India)
• NCL Industries
• Sterling And Wilson Solar
• Surya Roshni
• Suven Life Sciences
• Tide Water Oil Company
• Union Bank of India
• Unitech
• Veritas
• Waterbase
• Zee Learn
• Shakti Pumps
• Neuland Laboratories
• GMR Infrastructure
• Apollo Hospitals Enterprise
• Dish TV India
• Endurance Technologies
• Apollo Micro Systems
• Balkrishna Industries
• BF Utilities
• Bharat Gears
• Bharat Rasayan
• Bodal Chemicals
• CESC
• CESC Ventures
• Confidence Petroleum India
• Jain Irrigation Systems
• Jamna Auto Industries
• KIOCL
• KNR Constructions
• Kridhan Infra
• Mahanagar Telephone Nigam
• Maharashtra Seamless
• Majesco
• Mcleod Russel India
• McNally Bharat Engineering Company
• MEP Infrastructure Developers
• D B Realty
• DCM
• A2Z Infra Engineering
• Action Construction Equipment
• Adhunik Industries
• Aegis Logistics
• Fairchem Speciality
• Fertilizers and Chemicals Travancore
• Fiem Industries
• Gateway Distriparks
• Gujarat Fluorochemicals
• GVK Power & Infrastructure
• Igarashi Motors India
• India Tourism Development Corporation
• Ind-Swift
• IOL Chemicals and Pharmaceuticals
• ISGEC Heavy Engineering
• J.Kumar Infraprojects
• MIRC Electronics
• MOIL
• Mphasis
• MT Educare
• Orient Refractories
• Patel Engineering
• PNC Infratech
• Premier Explosives
• Reliance Infrastructure
• Sadbhav Engineering
• Setco Automotive
• Shreyas Shipping & Logistics
• SMS Lifesciences India
• Zuari Global

Indian ADRs

Stocks To Watch

• Aurobindo Pharma said U.S. FDA issued Form 483 with 14 observations after completion of an inspection of Unit IV of the drugmaker’s Hyderabad facility.
• DHFL: The Bombay High Court has allowed a plea by a group of lenders led by the State Bank of India, paving the way for them to recover dues from the company. A single-judge bench presided over by Justice AK Menon granted ad-interim relief to the banks and financial institutions by directing the housing financier to make payments for present as well as future dues as per securitisation or assignment agreements executed by it.
• Adani Ports & Special Economic Zone and France’s Total SA are marketing a $600 million 5Y corporate facility to general syndication, offering lenders three ticket levels, according to Bloomberg report.
• Telecom Stocks: The Department of Telecommunications has issued notice to telecom operators to pay their revenue share dues within three months as directed by the Supreme Court, PTI reported quoting an industry source. As per DoT's estimate, liability of Bharti Airtel Group is Rs 62,187.73 crore, Vodafone Idea Rs 54,183.9 crore and BSNL and MTNL Rs 10,675.18 crore, the report added.
• Wipro to collaborate with Telecom Infra Project to drive 5G adoption.
• Kohinoor Foods said that it has received a letter from Oriental Bank of Commerce declaring the company’s account as willful defaulter. The company has replied and sought review request before the screening committee of the Bank.
• ARSS Infra Projects received work order of Rs 75.4 crore from Rail Vikas Nigam.
• Mishra Dhatu Nigam secured one order worth Rs 106 crore. Open order book position at Rs 1,850 crore.
• ITC to acquire up to 33.42 percent stake in Vending Machine Startup Company ‘Delectable’ for Rs 7.5 crore.
• Coffee Day Enterprises: Board approved to finalise the appointment of required agencies for conducting financial, legal, commercial due diligence towards disinvestment of stake in company’s arm CDGL. Besides, Sanjay Nayar resigned from the board.
• Greaves Cotton has completed the acquisition of Ampere Vehicles.
• JSW Steel redeemed notes aggregating to $500 which were issued in November 2014.
• Cadila Healthcare acquired remaining stake in its two arms Zydus Technologies and Zydus Noveltech (U.S.) to make these entities wholly owned arms.
• Metropolis Healthcare: Vistra ITCL released pledge of 33 lakh shares on Nov. 11.
• Jain Irrigations System: KBC AMC increased stake from 4.32 percent to 5.28 percent in the company on Oct. 17.

Bulk Deals

VST Industries

• Radhakishan Damani acquired 2.7 lakh shares or 1.75 percent equity at Rs 4259.99 each
• HDFC MF sold 2.73 lakh shares or 1.77 percent at Rs 4,260 each

Brokerage Radar

On SpiceJet

Edelweiss

• Maintained ‘Buy’; cut price target to Rs 160 from Rs 173.
• Yields lower yield due to rising competitive intensity induced pricing pressure.
• Stellar top-line growth to continue in near term.
• Yield environment worsens in Q3; non-fuel CASK to decline.

SBICAP

• Maintained ‘Buy’; cut price target to Rs 156 from Rs 171.
• Costs higher due to older Jet Airways aircraft and MAX grounding.
• Modest rise in yield and compensation claims have resulted in lower-than-expected loss .
• Owing to MTM losses, have cut EPS estimates for the current and the next financial year by 61 percent and 18 percent respectively.

On BHEL

Edelweiss

• Maintained ‘Reduce’; cut price target to Rs 45 from Rs 48.
• Execution challenges persist; forex, provision reversal aid Ebitda.
• Finalisation delays; debtors reduce at cost of higher inventory.
• BHEL is unlikely to generate revenue growth beyond 6–8 percent for the next five years.

Emkay

• Maintained ‘Buy’ with a price target of Rs 62.
• Execution challenges continue but focus on receivables is key.
• Velieve near-term earnings will remain patchy; believe power sector is due for structural reform.
• Net cash position and receivable book to provide valuation support.

On Cadila Healthcare

Prabhudas Lilladher

• Downgraded to ‘Hold’ from ‘Accumulate’; cut price target to Rs 220 from Rs 266.
• September quarter missed estimates. Volatility, one-offs mar stability across business verticals.
• Shortage opportunity in Losartan led growth in U.S. generics.
• Expect drag in valuation to continue with higher leverage and volatile U.S. business.

Edelweiss

• Maintained ‘Buy’ with a price target of Rs 300.
• Steady quarter with limited margin expansion.
• Pipeline strong; execution remains key.
• Expect 15 percent growth in the U.S. in second half of the current financial year; India business to clock double digit growth rate.

More Calls

Edelweiss on Adani Power

• Maintained ‘Reduce’ with a price target of Rs 40.
• September quarter’s revenue lower due to weaker-than-expected tariff.
• Watch out for untied capacities; generation outlook weak.
• Rich valuation and volatile earnings are likely to cap upside.

Emkay on ABB India

• Maintained ‘Sell’; cut price target to Rs 1,085 from Rs 1,170.
• Weak core operating performance masked by in-line reported numbers.
• Large capex recovery still not visible.
• Management commentary suggests challenging environment will persist.

UBS on Pidilite Industries

• Maintained ‘Neutral’ with a price target of Rs 1,700.
• Slowdown hurts consumer facing businesses.
• Near term outlook uncertain as consumer & bazaar segment de-grows.
• Gross margin gains not reflecting in operating margins.

Edelweiss on Muthoot Finance

• Maintained ‘Buy’; hiked price target to Rs 747 from Rs 692.
• Growth disappoints; improvement key.
• Revenue momentum supported by higher NIM.
• Asset quality volatility persisted with stage-3 assets rising further.

Trading Tweaks

• Madhucon Projects, Shree Renuka Sugars to move into short term ASM Framework.
• Bharat Gears, Shalby to move out of short term ASM Framework .
• MSTC price band revised to 10 percent.
• Uniply Industries, Birla Cable, BSL price band revised to 5 percent.
• Ruchi Soya Industries to be suspended from exchanges.

Who’s Meeting Whom

• Narayana Hrudayalaya to meet Franklin Templeton, HSBC MF and other investors from Nov. 14-19.
• UPL to meet Spark Capital Advisors on Nov. 15.
• Tata Steel to meet JP Morgan AMC, Motilal Oswal Securities and Lazard Asset Management from Nov. 15-21.
• Pidilite Industries to meet Capital Group on Nov. 20.
• Jyothy Labs to meet Stead View, Goldman Sachs and other investors on Nov. 14.
• Endurance Tech to meet Greesham Partners and Edelweiss Securities on Nov. 15.
• Hindalco to meet Sumitomo Mitsui Asset Management on Nov. 14.
• CG Consumer Electricals to meet Invesco, HSBC AMC and other investors from Nov. 14-15.

Insider Trading

• Ultratech Cement promoter Aditya Marketing & Manufacturing sold 2.4 lakh shares from Nov. 7-8.

Money Market Update

Indian bonds may decline after headline retail inflation quickened for the third straight month in October, raising doubts over the pace of monetary-policy easing by the central bank.

Consumer prices rose 4.62 percent last month year-on-year, government said Wednesday after close of market hours. That is higher than the 4.35 percent median estimate in a Bloomberg survey and well past the central bank's medium term target of 4 percent.

But with growth also slowing, chances are the RBI will cut interest rates, though at a far less aggressive pace than before. The 10-year bond yield fell three basis points on Wednesday to end at 6.53 percent.

In the currency market, implied opening from forwards suggest spot may start trading around 71.1686 per dollar, with the rupee having weakened pretty sharply on Wednesday.

The rupee lost nearly 1 percent to hit 72.0938, its lowest since Sept. 4, with state-run banks eyed for any intervention on behalf of the central bank.

F&O Cues

Index Futures

• Nifty November futures closed at 11,863.2, premium of 22.8 points versus 30.3 points.
• Nifty November Futures open interest adds 2 percent, adds 2.6 lakh shares in open interest.
• Nifty Bank November futures closed at 30,585.6, premium of 44 points versus discount of 17.7 points.
• Nifty Bank November futures series open interest down 9 percent, sheds 1.7 lakh shares in open interest.

Options

Nifty PCR at 1.08 versus 1.28 (across all series).

Nifty Weekly Expiry: Nov. 14

• Max open interest on call side at 12,000 (38 lakh shares)
• Max open interest on put side at 11,800 (16.4 lakh shares)
• open interest addition seen at 12,000C (12.7 lakh shares), 11,900C (+10.7 lakh shares)
• open interest shedding seen at 11,900P (-6.7 lakh shares), 11,600P (-3.8 lakh shares)

Nifty Monthly Expiry: Nov. 28

• Max open interest on call side at 12,000 (21.4k shares)
• Max open interest on put side at 11,600 (20.4 lakh shares)