All You Need To Know Going Into Trade On Nov. 9

Stocks in Asia were little changed Friday after three days of gains and an overnight decline in their U.S. counterparts.

Benchmarks in Japan, Australia and South Korea tested waters, and moves in U.S. futures were muted.  The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,586.50 as of 7 a.m.

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BQ Live

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

U.S. Market Check

• Stocks fell and the dollar extended gains after the Federal Reserve left interest rates unchanged while confirming it was still on course to hike in December.
• The yield on 10-year Treasuries fell one basis point to 3.23 percent.

Europe Market Check

European stocks ended the day marginally higher, trimming gains of as much as 0.8 percent after the European Union voiced concerns over Italy’s expansionary Budget.

Asian Cues

• The MSCI Asia Pacific Index fell 0.1 percent.
• Topix index rose 0.1 percent.
• Australia’s S&P/ASX 200 Index rose less than 0.05 percent.
• Futures on the S&P 500 Index fell less than 0.05 percent.

Commodity Cues

• West Texas Intermediate crude rose 0.1 percent to $60.74 a barrel.
• Brent crude fell 1.9 percent to $70.65 per barrel.
• Gold fell 0.1 percent to $1,222.85 an ounce.

• Copper fell for the fourth day, down 0.04 percent.
• Zinc snapped a four-day losing streak, up 1.04 percent.
• Steel snapped its nine-day losing streak, up 0.9 percent.
• Aluminium traded a little changed.
• Rubber fell for the second day, down 0.7 percent.

Indian ADRs

Stocks To Watch

• Bharti Airtel: Moody’s placed the telecom operator’s current rating of Baa3 on review for downgrade, primarily driven by its expectation that the company’s cash generation will remain weak and leverage at an elevated level. The review will focus on plans to substantially reduce debt levels significantly over a short period of time, and on turnaround of Indian mobile operations. The company refuted news reports of a delay in listings its Tanzanian subsidiary.
• Fortis Healthcare’s CEO Bhavdeep Singh resigned from his post. Singh will remain in the company till a successor has been found.
• Mphasis to acquire U.S.-based Stelligent Systems for $25 million. Stelligent is a technology services company that provides DevOps Automation in Amazon Web Services (AWS).
• Dredging Corp: Cabinet approved divestment of entire government stake of 73.47 percent. A consortium of 4 ports will buy out the government’s stake.
• NMDC lease deed for Donimalai Mine renewed for 20 years by Karnataka State Government for 20 years with effect from Nov. 04.
• Power Grid’s board approved three investment projects for system strengthening and communications scheme for Rs 911.43 crore.
• Hero MotoCorp released new premium motorcycle ‘Xpulse 200T’.
• Eris Lifesciences increased stake by 6.71 percent stake in Kinedex , post the acquisition the holding of the company has increased to 82.19 percent. The total consideration for this transaction was Rs 10.7 crore.
• Manappuram Finance’s board approved equity infusion of Rs 100 crore in Home Finance arm and Rs 150 crore in micro finance arm.
• GAIL awarded contracts worth Rs 1,100 crore for feeder gas pipeline project in Assam. This move will fast-track the implementation of the Barauni-Guwahati pipeline which will connect the north-east with the national gas grid.
• JSW Steel’s crude steel production in October was up 8 percent at 14.47 lakh tonne versus 13.43 lakh tonne on year-on-year basis.
• Glenmark Pharma launched Phase 1 trial for its Bispecific Antibody, aimed to cure solid tumors.
• Majesco entered into an agreement with Indonesia-based PT PFI Mega Life Insurance to develop management solutions.
• Government of India increased stake in Punjab National Bank by 5.83 percent to take its shareholding to 71.92 percent.
• Goa Carbon October sales at 11,730.6 metric tonne and production at 10,987.6 metric tonne. The production was worth Rs 31.3 crore.
• MRF reappointed KM Mammen as the managing director of the company till February 2019.

New Offerings

• Neogen Chemicals seeks SEBI approval for IPO.
• Singtel still eyeing first half IPO 2019 for Airtel Africa IPO.

Nifty Earnings To Watch

• Titan

Other Earnings To Watch

• Amara Raja Batteries
• Eid Parry
• Fortis Malar Hospitals
• Goodricke Group
• Healthcare Global Enterprises
• Hindustan Aeronautics
• Igarashi Motors
• India Cements
• Indian Bank
• India Energy Exchange
• Kennametal India
• Mold-Tek Packaging
• Shankara Building Products
• Sobha
• V.S.T Tillers Tractors
• Fertilizers And Chemicals Travancore
• Vimta Labs

Earnings Reactions To Watch

Aditya Birla Capital (Q2, YoY)

• Revenue up 33.1 percent at Rs 3,590.5 crore.
• Net profit down 12 percent at Rs 197.9 crore.
• Fees & Commission Expense at Rs 181.2 crore versus Rs 67.7 crore.
• Premium up 39 percent at Rs 1,657 crore.
• AAUM up 11 percent at Rs 2.71 lakh crore.
• Lending Book up 30 percent at Rs 57,945 crore.

Mannapuram Finance (Q2, YoY)

• Net Interest Income up 19 percent at Rs 697.1 crore.
• Net profit up 39 percent at Rs 222.2 crore.
• Gold Loan segment revenue up 18.9 percent at Rs 868.9 crore.
• Microfinance segment revenue up 45 percent at Rs 158.6 crore.

Camlin Fine Sciences (Q2, YoY)

• Revenue up 37.8 percent at Rs 201.3 crore.
• Net profit at Rs 1.3 crore versus Net loss of Rs 4.1 crore.
• Ebitda up 4.3 times at Rs 17.2 crore.
• Margin at 8.5 percent versus 2.7 percent.

MRF (Q2, YoY)

• Revenue up 9.4 percent at Rs 3,928.2 crore.
• Net profit down 12.3 percent at Rs 263 crore.
• Ebitda down 4.1 times at Rs 581.1 crore.
• Margin at 14.8 percent versus 16.9 percent.
• Other expenses at Rs 691.1 crore versus Rs 561.7 crore.

Aban Offshore (Q2, YoY)

• Revenue down 33.2 percent at Rs 219.8 crore.
• Net loss at Rs 38.1 crore versus net loss of Rs 27.8 crore.
• Ebitda loss at Rs 388.3 crore versus Ebitda loss of Rs 234.3 crore.
• Other Income at Rs 63.8 crore versus Rs 17.6 crore.

Pricol (Q2, YoY)

• Revenue up 16.1 percent at Rs 369.4 crore.
• Net profit down 59.1 percent at Rs 2.9 crore.
• Ebitda down 7.8 percent at Rs 28.5 crore.
• Margin at 7.7 percent versus 9.7 percent.
• Other operating income includes income from sale of land at Rs 11.8 crore.

Bulk Deals

• Info Edge: Aranda Invest (Mauritius) sold 15 lakh shares or 1.23 percent at Rs 1,370.04 each
• Sangam Renewables: Altius Capital Fund sold 57,000 shares or 0.57 percent equity at Rs 18.95 each.

Uniply Industries

• Promoter Foundation Outsourcing India sold 11 lakh shares or 0.77 percent at Rs 61.87 each.
• Caishen Enterprise acquired 11 lakh shares 0.77 percent at Rs 61.87 each.

Who’s Meeting Whom

• Pidilite Industries to meet Newport Asia on Nov. 12.
• Cipla to meet State Street Global Advisors, Northcape Capital and other investors from Nov. 09-22.
• Asian Paints to meet Newport Asia on Nov. 12.
• Dr. Lal Pathlabs to meet Ward Ferry, Fidelity International and other investors from Nov. 09-16.

Insider Trading

• HCL Technologies promoter Vama Sundari Investments acquired 5.7 lakh shares on Nov. 02.
• Chambal Fertilisers & Chemicals promoter Hindustan Times acquired 1.2 lakh shares from Nov. 02-06.
• Apar Industries promoters acquired 1.2 lakh shares on Nov. 05.
• Meghmani Organics promoters acquired 7 lakh shares from Nov. 02-05.
• Eros International Media promoter Eros Worldwide acquired 82,700 shares on Nov. 06.

(As reported on Nov. 06)

Trading Tweaks

• Assam Company to move into ASM Framework.
• EROS International Media price band revised to 10 percent.
• Tijaria Polypipes price band revised to 5 percent.

Money Market Update

• Rupee ended at 73.00/$ on Tuesday versus 73.12/$ on Monday.

F&O Cues

• Nifty November futures closed trading at 10,614, premium of 16 points
• Nifty November OI up 0.8 percent; Nifty Bank November OI up 1.2 percent.
• Max OI for November series at 11,000 Call, OI at 26.7 lakh shares.
• Max OI for November series at 10,000 Put, OI at 51.4 lakh shares.

Put-Call Ratio

• Nifty PCR at 1.59 from 1.58.
• Nifty Bank PCR at 1.11 from 1.31.

Fund Flows

Brokerage Radar

On Phoenix Mills

CLSA

• Maintained ‘Buy’; cut price target to Rs 725 from Rs 766
• Strong September quarter; lease income, consumption climb on good mall performance.
• New project construction to gather pace by March 2019.
• Cut price target to adjust for rising interest rate.

HSBC

• Maintained ‘Buy’; hiked price target to Rs 800 from Rs 770.
• Rental income and consumption from its malls grew strongly.
• Expect five-year rental CAGR at 17 percent led by upcoming and existing malls.
• Residential segment recorded an uptick in sales, but still remains below estimates.

On Voltas

CLSA

• Maintained ‘Sell’; cut price target to Rs 465 from Rs 480.
• Weak September quarter; biggest fall in AC margins in six years.
• Aggressive pricing, warranties, commodity and forex impacted margins.
• Stock not ready for any negative surprises like the first half.

Jefferies

• Maintained ‘Buy’; cut price target to Rs 715 from Rs 750.
• Cooling segment seen confluence of negatives for cooling segment.
• Engineering segment beaten sharply on execution and margins.
• Management indicated that the margins of 11 percent during the first half are representative of 2018-19.

More Calls

CLSA on Dr Lal Pathlabs

• Maintained ‘Buy’ with a price target of Rs 1,320.
• Volume growth remains strong, but pricing saw de-growth due to expansion and promotions.
• Kolkata operations have stabilised now and growth well ahead of company growth.
• Volume remains single point focus which is the right strategy.

CLSA on Century Ply

• Maintained ‘Buy’; cut price target to Rs 210 from Rs 310.
• Crude, rupee depreciation, MDF competitive intensity impacted September quarter margins.
• Believe worst is now behind with hedged borrowings and price hikes.
• Cut estimates to factor in forex losses, lower margins and higher tax rate.