All You Need To Know Going Into Trade On Nov. 15
Asian stocks saw a muted start to trading Friday as traders awaited further updates on a partial U.S.-China trade deal.
Stocks ticked higher in Japan and Australia and dipped in South Korea. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.27 percent to 11,919 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. stock indexes were mixed and bonds advanced as the risk rally stalled below all-time highs amid mixed economic data and mounting concern over a partial trade deal.
- Oil rose for a second day on Thursday after an industry report pointed to a drop in U.S. inventories, and OPEC’s top official talked about the potential for a “sharp” slowdown in American shale output next year.
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- India to release trade data for October
Earnings Reaction To Watch
Bharti Airtel (Q2, QoQ)
- Revenue rose 1.9 percent to Rs 2,1131 crore. (Estimate Rs 20,916 crore).
- Net loss was at Rs 23,045 crore versus net loss of Rs 2,866 crore. (Estimate Net Loss at Rs 1,302 crore).
- Ebitda rose 6.9 percent to Rs 8,860 crore. (Estimate Rs 8,211 crore).
- Margin stood at 42 percent versus 40 percent. (Estimate 39.3 percent).
- Average revenue per user was at Rs 128 versus Rs 129.
- Exceptional loss of Rs 28,450 crore during Q2 related to AGR dues.
ONGC (Q2, QoQ)
- Revenue fell 7.8 percent to Rs 24,492.6 crore. (Estimate Rs 24,718 crore).
- Net profit rose 6.1 percent to Rs 6,263.1 crore. (Estimate Rs 6,267 crore).
- Ebitda fell 12.1 percent to Rs 13,289.8 crore. (Estimate Rs 13,102 crore).
- Margin was at 54.3 percent versus 56.9 percent. (Estimate 53 percent).
Vodafone Idea (Q2, QoQ)
- Revenue fell 3.8 percent to Rs 10,844 crore.
- Net loss was at Rs 50,922 crore versus net loss of Rs 4,874 crore.
- Ebitda fell 8.3 percent to Rs 3,347.1 crore.
- Margin at 30.9 percent versus 32.4 percent.
- Provided Rs 25,678 crore as charge towards AGR liability.
Gujarat Fluorochemicals (Q2, QoQ)
- Revenue fell 10.5 percent to Rs 662.4 crore.
- Net profit fell 86.7 percent to Rs 14.9 crore.
- Ebitda fell 34.8 percent to Rs 124.1 crore.
- Margin stood at 18.7 percent versus 25.7 percent.
Union Bank of India (Q2, YoY)
- Net Interest Income rose 16.6 percent to Rs 2,905.9 crore.
- Net loss was at Rs 1,193.6 crore versus net profit of Rs 139 crore.
- Tax Expense of Rs 424.5 crore.
- GNPA at 15.24 percent versus 15.18 percent.
- NNPA at 6.98 percent versus 7.23 percent.
NBCC (Q2, YoY)
- Revenue fell 20.9 percent to Rs 1,665.6 crore.
- Net loss at Rs 99.2 crore versus net profit of Rs 69.1 crore.
- Ebitda loss was at Rs 1.4 crore versus Ebitda gain of Rs 59.7 crore.
Balkrishna Industries (Q2, YoY)
- Revenue fell 17.3 percent to Rs 1,084.3 crore.
- Net profit rose 39.9 percent to Rs 294.3 crore.
- Ebitda fell 15 percent to Rs 273.1 crore.
- Margin at 25.2 percent versus 24.5 percent.
- Deferred tax gain of Rs 73.4 crore.
HEG (Q2, YoY)
- Revenue fell 68.5 percent to Rs 564.4 crore.
- Net profit fell 77.6 percent to Rs 202.3 crore.
- Ebitda fell 89.8 percent to Rs 139.2 crore.
- Margin was at 24.7 percent versus 76.3 percent.
Glenmark Pharmaceuticals (Q2, YoY)
- Revenue rose 9.1 percent to Rs 2,815 crore
- Net profit fell 38.3 percent to Rs 255.5 crore.
- Ebitda rose 2.3 percent to Rs 450.3 crore.
- Margin at 16 percent versus 17 percent.
- Exceptional Loss of Rs 167.2 crore in base quarter.
- Employee Expenses rose 13 percent at Rs 686.6 crore.
- Other Income fell 42 percent to Rs 80.8 crore.
Page Industries (Q2, YoY)
- Revenue rose 12.2 percent to Rs 775.4 crore.
- Net profit rose 23.7 percent to Rs 114.5 crore.
- Ebitda rose 4.4 percent to Rs 149.1 crore.
- Margin was at 19.2 percent versus 20.7 percent.
Steel Authority of India (Q2, YoY)
- Revenue fell 15.6 percent to Rs 14,129 crore.
- Net loss was at Rs 286 crore versus net profit of Rs 609.8 crore.
- Ebitda fell 50.8 percent at Rs 1167.6 crore versus Rs 2373 crore.
- Margin stood at 8.3 percent versus 14.2 percent.
- Deferred tax gain of Rs 168.7 crore.
Stocks To Watch
- Vedanta cut 2019-20 capex guidance to Rs 8,000 crore-8,500 crore from Rs 10,000 crore, according to Bloomberg report.
- Cipla received four observations from routine Current Good Manufacturing Practice inspection for both Formulation and API manufacturing facility at Patalganga by U.S. Food and Drug Administration. Company stated that the observations were neither of repeat nature nor related to data integrity.
- SBI: Board approved divestment of the Bank’s stake in SBI Cards up to 4 percent through initial public offering by way of offer for sale of up to 3.73 crore shares, subject to approval from regulatory authorities.
- Natco Pharma said that it’s FDF facility in Visakhapatnam has commenced commercial operations. The facility is a part of the Special Economic Zone and intended to cater primarily to the U.S. & other international markets.
- Bajaj Finance allotted debentures worth Rs 385 crore on Nov. 14.
- Sterling Tools: Narayan Vijay Gopal resigned from Chief Financial Officer’s post with effect from Dec. 31.
- Talwalkars Better Value Fitness, Talwalkars Healthclubs have adjourned Board Meeting for quarterly results to Nov. 28.
- CESC: Board said that the company will not pursue the demerger of the Generation Undertaking of the company into a wholly owned arm ‘Haldia Energy’. Company to make necessary application to Kolkata’s National Company Law Tribunal .
- MOIL: Board approved buyback of 2.02 crore shares representing 7.87 percent stake, at a price of Rs 152 per share for an aggregate consideration of Rs 308.3 crore.
- IRCTC hiked catering charges for meals served in Rajdhani, Shatabdi and Duronto trains.
- Vadilal Enterprises: Deloitte Haskins & Sells LLP resigned as Statutory Auditors with effect from Nov. 13.
- Fortis Healthcare, Essar Steel: Supreme Court to give verdict on Fortis-IHH deal and Essar Insolvency Proceedings on Nov. 15. (BN) Fortis Healthcare stated that Supreme Court has allowed company’s appeal and quashed the proceedings for eviction of its arm EHIRCL from its Hospital premises in Delhi.
- Edelweiss Financial Services said in relation to Electrosteel Steel’s IPO, SAT has reduced the penalty amount from Rs 1 crore to Rs 50 lakh, which will be paid jointly by all the three merchant bankers to the IPO.
- NBCC said that the value of work has been estimated at Rs 8,361 crore to develop the Amrapali work and the same has been informed to the Supreme Court and the execution of work is in progress.
- Info Edge clarified that the company is not looking for its stake in Zomato via secondary sale as of now. If Zomato reaches breakeven by March or April, then the company may mull selling stake.
- Dalmia Bharat: Board approved mergers of two arms to consolidate its refractory business.
- Prabhat Telecom signed two Non-Disclosure Agreement with two entities for development and sale of digital solutions. Company also commenced its telecom products distribution business in U.S.. In the press release the company also said that they have received authorization from Zingo Media Group, Inc, USA to curate, buy and negotiate content in India and Asia Market.
- Adani Green Energy bid to set up 4GW of solar power capacity and 1GW of equipment manufacturing, according to Sanjay Sharma, general manager at SECI. (BN)
- L&T Financial Services will sell its arm L&T Capital Markets (Middle East) for Rs 18.03 crore to InCred Group.
- Sterling & Wilson Solar: Board received promoters request to revise the payment schedule for balance outstanding amount citing liquidity concerns and lesser than expected realization from the IPO. Promoters would endeavour to reduce the Outstanding Loan by Rs 1,000 Crore by Dec. 31. Board has also decided to levy an an additional interest rate of 50 basis points p.a. over the current interest rate being applied to the said Outstanding Loan, taking the applicable interest payable to 100 basis points p.a. which is above the weighted average interest rate on borrowings of the Company. Outstanding dues stand at Rs 2,341 crore as on Sept. 30.
- Bank of Baroda: The Competition Commission of India has approved BNP Paribas MF and Bank of Baroda MF merger, according to Bloomberg report.
- GVK Power & Infra: The CCI approved Adani Properties acquiring stake in Mumbai Airport, according to Bloomberg report.
Investec on Indusind Bank
- Downgraded to ‘Sell’ from ‘Hold’; cut price target to Rs 1,220 from Rs 1,495.
- Balance sheet adjustment underway leading to revenue weakness.
- Core bank profitability ex MFI moderated sharply.
- Valuations leave no room for error.
JP Morgan on InterGlobe Aviation
- Downgraded to ‘Neutral’ from ‘Overweight’, cut price target to Rs 1,750 from Rs 2,080.
- Best in class operations and growth but profit outlook uncertain.
- The yield environment has softened.
- Await the picture to clear some or a more attractive entry point.
- Risk reward not yet attractive at 20x PE.
Pledge Share Details
- Jindal Steel & Power promoter group Opelina Finance and Investment revoked pledge of 28.5 lakh shares on Nov. 13.
- BSL, Edelweiss Financial Services, Orient Green Power to move into short term ASM Framework.
- Apollo Micro Systems, HCL Infosystems, Shilpa Medicare to move out of short term ASM Framework.
- Apex Frozen Foods price band revised to 10 percent.
- KSK Energy Ventures, Archit Organosys price band revised to 5 percent.
Who’s Meeting Whom
- Jyothy Labs to meet First Pacific Advisors on Nov. 15.
- Care Ratings to meet First Pacific Advisors on Nov. 20.
- Blue Star to meet Taiyo Pacific Partners, Baillie Gilford and other investors from Nov. 15-21.
- Nirlon promoter Shital Trading & Interiors sold 25,000 shares on Nov. 13.
Money Market Update
- The rupee closed At 71.97/$ versus 72.09/$ on Wednesday.
- Nifty November futures closed at 11,899.6, premium of 27.5 points versus 22.8 points
- Nifty November Futures open interest down 2 percent sheds 2.5 lakh shares in open interest
- Nifty Bank November futures closed at 30,770.5, premium of 20.6 points versus 44 points
- Nifty Bank November futures series open interest up 0.3 percent, adds 58,000 shares in open interest
- Nifty PCR at 1.40 versus 1.08 (across all series)
Nifty Weekly Expiry: Nov. 21
- Max open interest on call side at 11,900 (12.3 lakh shares).
- Max open interest on put side at 11,800 (14.2 lakh shares).
- open interest addition seen at 11,800P (9.8 lakh shares), 11,900C (+6 lakh shares).
Nifty Monthly Expiry: Nov. 28
- Max open interest on call side at 12,000 (2,15,000 shares).
- Max open interest on put side at 11,600 (21.5 lakh shares).