All You Need To Know Going Into Trade On November 11
A man holds cups of tea in Varanasi, Uttar Pradesh, India. (Photographer: Dhiraj Singh/Bloomberg)  

All You Need To Know Going Into Trade On November 11

Asian markets continue to edge higher this morning even as the sector rotation out of technology shares continued overnight in the U.S.

Benchmark indices in Japan and Australia are gaining over 1% each. The Russel 2000 index of smallcaps, climbed to its highest since August 2018.

Treasury yields continue to rise towards the 1% level while the U.S. Dollar is steady.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 12,708 as of 8:15 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.

Let’s take a look at the factors that may influence equities in today’s session:

  • Futures on the Dow Jones are trading 40 points lower. The index ended with gains of 0.9% on Tuesday. The Nasdaq fell over 2%.
  • Amazon shares fell as the online retailer faces an antitrust complaint from the European Union.
  • Enthusiasm on the prospects for a vaccine has boosted global equities and sent havens into a tailspin this week, though some analysts have said the moves may have gone too far.
  • The U.S. reported 1,42,907 Covid-19 infections on Monday and is on track to reach the most hospitalisations yet later this week.
  • Yield on the 10-year treasuries stood at 0.97%.
  • West Texas Intermediate crude rose 0.5% to a two-month high of $41.57 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On November 11

Stocks To Watch

  • NMDC: Announces share buyback worth Rs 1,378 crore. Board to buyback 13.12 crore shares or 4.29% of total equity. Buyback price of Rs 105 per share is a premium of 11.7% to Tuesday's closing. Record date for the buyback set as November 23.
  • Wipro: Wins five-year software engineering services engagement from ThoughtSpot.
  • Mayur Uniquoters: Board approves buyback of 7.5 lakh shares or 1.65% of the total equity. Buyback price of Rs 400 per share is a 56.5% premium to Tuesday's closing price. The total consideration for the buyback will be Rs 30 crore. November 25 fixed as the record date for the buyback.
  • Tata Power: Repaid total debt worth Rs 2,600 crore in October and Rs 1,500 crore is under pre-payment notice for November. Total Gross Debt down 14% to Rs 17,300 crore as on September 30, on a sequential basis. Sale of Defence business to Tata Advanced Systems completed at an enterprise value of Rs 1,076 crore.
  • TTK Prestige: Successfully concluded a long-term settlement covering all its workmen at the company’s Coimbatore unit.
  • GPT Infra: Received Rs 30.2 crore order for making a bridge over the Yamuna river from the government.
  • Varroc Engineering, Endurance Tech: Naresh Chandra has resigned as Chairman and Director of company from November 10 due to personal reasons. Current Managing Director Tarang Jain will become the chairman of Varroc Engineering.
  • JB Chemicals & Pharma: Statutory auditors DNV & Co. Chartered Accountants have resigned. The company is keen on auditors who have more acceptability among institutional investors and those who have the resources to assign across geographies in which the company and its direct & indirect subsidiaries function so as to have time and cost efficiency. There are no other reasons for the resignation. Deloitte Haskins & Sells LLP appointed as new statutory auditors.
  • Nifty Earnings Today: Coal India, Power Grid, Shree Cement
  • Non-Nifty Earnings Today: Abbott India, Apollo Hospitals, Aurobindo Pharma, Ashoka Buildcon, Bharat Forge, Brigade Enterprises, Finolex Cables, Galaxy Surfactants, Garden Reach Shipbuilders, GIC Housing Finance, Godrej Industries, GMDC, Himadri Specialty Chemicals, HOEC, Indiabulls Housing Finance, Indraprastha Gas, Ircon International, ITI, LIC Housing Finance, MAS Financial Services, Metropolis Healthcare, Mindspace Business Parks REIT, MIDHANI, Nalco, NBCC, Petronet LNG, Prestige Estates, SH Kelkar, Titagarh Wagons, VA Tech Wabag

Earnings Reported After Market Hours

Aarti Industries Q2FY21

  • Revenue up 18.7% to Rs 1,172.6 crore
  • Net profit down 5% to Rs 140.2 crore
  • Ebitda flat at Rs 254.3 crore
  • Ebitda margin at 21.7% from 25.7%
  • Higher cost of raw material and employee expenses impact margins
  • All numbers are consolidated and compared on a year-on-year basis

Bata India Q2FY21

  • Revenue down 49% to Rs 367.9 crore
  • Net loss of Rs 44.1 crore from Net profit of Rs 71.3 crore
  • Ebitda down 90.2% to Rs 18.2 crore
  • Ebitda margin at 4.9% from 25.7%
  • All numbers are consolidated and compared on a year-on-year basis

InfoEdge Q2FY21

  • Revenue down 19.1% to Rs 256.1 crore
  • Net profit up 5.5 times to Rs 51.2 crore
  • Ebitda down 48.1% to Rs 51.5 crore
  • Ebitda margin at Rs 20.1% from 31.4%
  • Exceptional loss of Rs 75 crore in the base quarter
  • All numbers are standalone and compared on a year-on-year basis

Tata Power Q2FY21

  • Revenue up 8% to Rs 8,289.8 crore
  • Net profit up 8.4% to Rs 279.6 crore
  • Ebitda down 11.2% to Rs 2,001.2 crore
  • Ebitda margin at 24.1% from 29.3%
  • Higher employee costs and higher cost of power purchased impacts margins
  • All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

CLSA On Lemon Tree Hotels

  • Buy rating maintained
  • Price target raised to Rs 38 from Rs 33
  • Expect corporate travel to pick-up from Q4FY21
  • Retail demand is picking up but is a drag on ADRs
  • Liquidity position is comfortable and so are valuations

Emkay On Hindalco

  • Buy rating maintained
  • Price target raised to Rs 251 from Rs 225
  • Key task will be to deliver on projected synergies and focus on debt reduction
  • Novelis surprised positively on both shipments as well as Ebitda per tonne
  • Valuations relatively inexpensive compared to peers
  • Key risk is delay in achieving merger synergies and weak commodity prices

Macquarie On Bayer CropSciences

  • Underperform rating maintained
  • Price target of Rs 4,800
  • Q2 was a miss due to lower revenue and margins
  • Expect 17% earnings CAGR over FY20-23E
  • Expect average RoE of 25% over FY20-23E
  • Current valuations are fairly stretched

Pledged Share Details

  • Max Financial Services: Promoter Max Ventures Investment Holdings created pledge of 40.6 lakh shares between October 29-November 9.

(As Reported On November 10)

Bulk Deals

  • Apollo Pipes: Sageone Investment Advisors acquired 67,729 shares (0.52%) at Rs 602.2 per share.
  • CG Consumer Electricals: Promoters Amalfiaco and Macritchie Investments sold 5.5 crore shares (8.77%) at Rs 296.57 per share, HDFC Standard Life Insurance acquired 45 lakh shares (0.72%) at Rs 296.5 per share, Societe Generale acquired 37.67 lakh shares (0.60%) at Rs 296.5 per share and SBI MF acquired 1.01 crore shares (1.62%) at Rs 296.49 per share.

Who’s Meeting Whom

  • Cipla: To meet Capital Research Global Investors on November 12.
  • DCM Shriram: To meet Bajaj Allianz Life Insurance on November 11.
  • Castrol India: To meet Aberdeen Asset and Artisan Partners on November 24.
  • Cummins India: To meet BofA Securities on November 11.

Trading Tweaks

  • AGM: Premier Explosives, Rama Steel Tubes.
  • Price Band Revised From 10% To 5%: Salona Cotspin, Ujaas Energy.
  • Move Into ASM Framework: Balaxi Pharmaceuticals, Laurus Labs, Karda Constructions, Ballarpur Industries, Ausom Enterprise.
  • Move Into Short Term ASM Framework: Nagreeka Exports.

Insider Trades

  • Greenply Industries: Promoter SM Management acquired 53,759 shares between November 9-10.
  • Adani Ports & SEZ: Promoter Adani Properties acquired 7 lakh shares on November 9.
  • Dixon Tech: Promoter Sunil Vachani sold 47,481 shares on November 6.

(As Reported On November 10)

Money Market Update

  • The rupee ended little changed and with modest losses at 74.18 against the U.S. Dollar, as compared to Monday's close of 74.14.

F&O Cues

  • Nifty November futures closed at 12,662; premium of 31 points from 19 points
  • Nifty November futures add 2.4% and 2.7 lakh shares in Open Interest
  • Nifty Bank November futures closed at 28,644; premium of 38 points from 47 points
  • Nifty Bank November futures add 4.4% and 78,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.54

Nifty Weekly Expiry: November 12

  • Maximum Open Interest on Call side at 13,000 strike (22.4 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (31.9 lakh shares)
  • Active Options: 12,500 Put (+24.3 lakh shares) and 12,500 Call (-9.9 lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 13,000 strike (16.8 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (30 lakh shares)
All You Need To Know Going Into Trade On November 11
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