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All You Need To Know Going Into Trade On November 12
Stocks in the news, big brokerage calls of the day, complete trade setup and much more!
12 Nov 2020, 07:26 AM IST 
A jogger wears a pollution mask early morning amidst light smog in New Delhi. The national capital’s air quality dropped to the season’s worst on the morning after Diwali.
Asian markets have opened mixed this morning as the recent rally showed signs of taking a pause. Overheated equity markets and a deteriorating Covid-19 situation in many large economies of the world, is keeping sentiment in-check.
Benchmark indices in Japan are edging higher, those in South Korea are little changed while Australian markets are declining.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.3% to 12,757 as of 7:05 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 currently trading little changed. The index too ended flat on Wednesday. The S&P 500 rose to the highest since September.
- The value of global equities has surged by about $6 trillion in November.
- “In the near term, the resurgence of the virus is beginning to make new worries,” Torsten Slok, chief economist at Apollo Global Management, said on Bloomberg TV. “It looks like this will end up being a W-shaped recovery.”
- Yield on the 10-year treasuries fell to 0.95%
- West Texas Intermediate crude was little changed at $41.5 per barrel.
Get your daily fix of the global markets here.
Earnings Fineprint: Coal India Q2FY21
- Revenue up 3.8% to Rs 21,153.1 crore
- Net profit down 16.3% to Rs 2,948.1 crore
- Ebitda up 10.1% to Rs 3,974.9 crore
- Ebitda margin at 18.8% from 17.7%
- Declares dividend of Rs 7.5 per share
- All numbers are consolidated and compared on a year-on-year basis
Earnings Fineprint: Shree Cement Q2FY21
- Revenue up 7.8% to Rs 3,022.4 crore
- Net profit up 77.1% to Rs 547.3 crore
- Ebitda up 17% to Rs 988 crore
- Ebitda margin at 32.7% from 30.1%
- All numbers are standalone and compared on a year-on-year basis
Earnings Fineprint: Power Grid Q2FY21
- Revenue up 4.3% to Rs 9,057.9 crore
- Net profit up 23.4% to Rs 3,117.4 crore
- Ebitda up 5.5% to Rs 7,971.1 crore
- Ebitda margin at 88% from 87%
- Higher other income contributes to growth in net profit
- Other income up 67% to Rs 832.3 crore
- All numbers are standalone and compared on a year-on-year basis
Stocks To Watch
- Apollo Hospitals: Gets board approval to acquire remaining 50% stake in Apollo Gleneagles Hospital, Kolkata for Rs 410 crore. The stake was earlier held by Gleneagles Development, Singapore. The company will now hold 100% stake in the said hospital. Board also approved raising Rs 1,500 crore through a preferential issue of securities, QIP or any other equivalent capital raising method.
- Max India: Has executed a Deed of Guarantee in favour of Aditya Birla Finance for an amount up to Rs 170 crore in respect of the loans / line of credit facility availed by company’s wholly-owned arm Antara Senior Living.
- Metropolis Healthcare: Informs of a delay in completion of acquisition of the balance 35% stake in Metropolis Histoxpert Digital Services due to the lockdown imposed in the Netherlands.
- Happiest Minds Technologies: Enters into a strategic partnership with lo-Tahoe to provide their clients with effective data discovery and governance solutions.
- NBCC: Board has approved closure of its Gulf arm and liquidation of its wholly-owned arm NBCC Engineering & Consultancy.
- GOCL Corporation: U.K. arm HGHL Holdings declared a dividend of $4 million to the company.
- Coffee Day Enterprises: Exchanges have given a notice for compulsory delisting of the company.
- Future Lifestyle Fashion: CARE Ratings downgraded long-term bank facilities and NCDs from CARE BB to CARE C, with outlook staying unchanged at credit watch with negative implications.
- Tata Steel: Clarified on the news of closure of sale of its European business stating that it is involved in evaluating strategic opportunities across various segments of its operations in different geographies. Such discussions are ongoing management tasks and the company doesn’t wish to comment on it.
- Nifty Earnings Today: Eicher Motors, Grasim Industries
- Non-Nifty Earnings Today: Power Finance Corporation, Page Industries, Engineers India, Avanti Feeds, Bharat Dynamics, Bharat Rasayan, Cochin Shipyard, Fortis Healthcare, GOL Corporation, HEG, HCC, HUDCO, ITDC, IRCTC, IRB Infra, Jubilant Foodworks, Mahanagar Gas, Mazagaon Dock, Natco Pharma, Sterling & Wilson Solar, Sun TV, Phoenix Mills, Nesco
Earnings Reported After Market Hours
Aurobindo Pharma Q2FY21
- Revenue up 15.8% to Rs 6,483.4 crore
- Net profit up 26% to Rs 806.2 crore
- Ebitda up 25.7% to Rs 1,432.7 crore
- Ebitda margin at 22.1% from 20.4%
- All numbers are consolidated and compared on a year-on-year basis
SpiceJet Q2FY21
- Revenue down 63% to Rs 1,055 crore
- Net loss narrows to Rs 112.6 crore from Rs 462.6 crore
- Ebitdar down 50% to Rs 69.4 crore
- Ebitdar margin at 6.6% from 4.9%
- All numbers are consolidated and compared on a year-on-year basis
NALCO Q2FY21
- Revenue flat at Rs 2,374.9 crore
- Net profit of Rs 107.5 crore from net loss of Rs 28.4 crore
- Ebitda up 8.6 times to Rs 275.8 crore
- Ebitda margin at 11.6% from 1.4%
- Low cost of fuel and lower other expenses aid margin expansion
- All numbers are standalone and compared on a year-on-year basis
Brokerage Radar
CLSA On Infosys
- Buy rating maintained
- Price target of Rs 1,330
- Analyst day commentary indicates growth recovery and margin comfort
- Company back on sustainable growth track
- Nandan Nilekani has no immediate exit plan which should be reassuring for investors
- Margin comfort is high
- Cash generation and allocation are key focus areas
- Expect improved growth acceleration and captial return potential to help narro its valuation gap to TCS
UBS
- Neutral rating maintained
- Price target of Rs 1,020
- Management confident of returning to pre-Covid levels of revenue growth
- Confidence on operating margins remains high
- M&A to be a key to strategy
- Large deal focus to continue
- Better revenue visibility priced in at current levels
- Remain cautious on sector overall as we believe markets are overestimating demand recovery
JPMorgan
- Overweight rating maintained
- Price target of Rs 1,300
- Analyst day highlights transformation into a cross-cycle champion
- Focus remains on capturing I.T. megatrends
- Solid resilience and cost controls to stay
- Capital allocation balances system M&A with returns
Macquarie On Endurance Technologies
- Outperform rating maintained
- Price target of Rs 1,200
- Strong domestic performance as compared to weak overseas results
- High share of EV components in Europe to be margin dilutive in near-term
- Expect it to benefit from two-wheeler recovery in India
- Market share gains and higher contributions from PVs to also aid growth
Macquarie On Indraprastha Gas
- Neutral rating maintained
- Price target of Rs 485
- Demand recovery on track; strong margin expansion
- Residential sales continued growth momentum
- Expect full demand recovery in Q3 and further growth in Q4
Pledged Share Details
- Hatsun Agro Products: Promoter C. Sathyan created pledge of 18.7 lakh shares on November 11.
- Emami: Promoter group Raviraj Viniyog revoked pledge of 4 lakh shares on November 10.
- JSW Energy: Promoter group Danta Enterprises revoked pledge of 60 lakh shares on November 10.
- Adani Green Energy: Promoter group Gautam Adani & Rajesh Adani (on behalf of SB Adani Family Trust) revoked pledge of 14.66 lakh shares on November 10.
(As Reported On November 11)
Bulk Deals
- Astra Microwave Products: Shubhi Consultancy Services acquired 5.6 lakh (0.65%) shares at Rs 108.23.
Trading Tweaks
- AGM: Gravita India, HMT.
- Ex-Date For Buyback: NTPC, Ajanta Pharma, Majesco.
- Price Band Revised From 10% To 5%: Xpro India.
- Move Into ASM Framework: Blue Dart Express, Orchid Pharma.
- Move Into Short Term ASM Framework: Thomas Cook, Prabhat Dairy, Jubilant Industries.
- Move Out Of Short Term ASM Framework: Tata Teleservices (Maharashtra), Vishal Fabrics.
Insider Trades
- Chambal Fertilisers & Chemicals: Promoter group Nilgiri Plantations acquired 1.25 lakh shares on November 10.
- UPL: Promoter group Uniphos Enterprises Limited acquired 54,700 shares between November 9-10.
- Anant Raj: Promoter Ashok Sarin acquired 1.28 lakh shares between November 9-10.
- Greaves Cotton: Promoter Karun Carpets acquired 2.12 lakh shares between November 9-10.
- HFCL: Promoter MN Ventures acquired 10 lakh shares on November 11.
(As Reported On November 11)
Money Market Update
- The currency ended lower at 74.36 against the U.S. Dollar on Wednesday as compared to Tuesday's close of 74.18.
- The rupee was the third worst performing currency in Asia on Wednesday.
F&O Cues
- Nifty November futures closed at 12,766; premium of 17 points from 31 points
- Nifty November futures add 3.2% and 3.75 lakh shares in Open Interest
- Nifty Bank November futures closed at 28,847; premium of 2 points from 38 points
- Nifty Bank November futures add 2.4% and 45,000 shares in Open Interest
- Nifty Put-Call Ratio at 1.54
- Enters F&O Ban: BHEL
- Stocks In F&O Ban: BHEL, JSPL
Nifty Weekly Expiry: November 12
- Maximum Open Interest on Call side at 13,000 strike (33.7 lakh shares)
- Maximum Open Interest on Put side at 12,000 strike (33.8 lakh shares)
- Active Options: 12,700 Put (+19.8 lakh shares) and 13,000 Call (+11.3 lakh shares)
Nifty Monthly Expiry: November 26
- Maximum Open Interest on Call side at 13,000 strike (19 lakh shares)
- Maximum Open Interest on Put side at 12,000 strike (32.6 lakh shares)
