All You Need To Know Going Into Trade On November 13
Robotic arms prepare a flask of filter coffee. (Photographer: Krisztian Bocsi/Bloomberg)

All You Need To Know Going Into Trade On November 13

Asian markets have followed their U.S. peers lower on the final trading day of the week. Concerns are rising as a resurgence in Covid-19 cases across the world, may lead to tighter restrictions and slow down economic growth without further stimulus.

Benchmark indices in Japan and Australia fell while those in South Korea are flat.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.9% to 12,637 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 trading lower by 100 points. The index along with the S&P 500 fell over 1% on Thursday.
  • The Trump administration is said to have stepped back from talks on a relief package and left it to the Congress to revive negotiations with house speaker Nancy Pelosi.
  • The U.K. reported record infections despite a tightened lockdown and hospitalisation rates set a new high in France.
  • Yield on the 10-year treasuries stood at 0.88%.
  • West Texas Intermediate crude fell 1.1% to $40.65 per barrel while Gold was little changed at $1,875/Oz.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On November 13

Earnings Fineprint: Eicher Motors Q2FY21

  • Revenue down 3% to Rs 2,134 crore
  • Net profit down 40.1% to Rs 343.3 crore
  • Ebitda down 13% to Rs 472 crore
  • Ebitda margin at 22.1% from 24.7%
  • Revenue and profit are in-line with Bloomberg consenus estimates while Ebitda and margins are ahead of estimates
  • All numbers are consolidated and compared on a year-on-year basis

Earnings Fineprint: Grasim Industries Q2FY21

  • Revenue down 28.3% to Rs 3,438.2 crore
  • Net profit down 31.6% to Rs 360.2 crore
  • EBitda down 39.6% to Rs 397.9 crore
  • Ebitda margin at 11.6% from 13.7%
  • Margins decline despite lower power and fuel costs, other expenses owing to lower revenue
  • Revenue below estimates while profit, Ebitda and margins are ahead of estimates
  • All numbers are standalone and compared on a year-on-year basis

Stocks To Watch

  • Grasim Industries: Board approves sale of its fertiliser business to Indorama India. The sale will be done on a slump sale basis for a cash consideration of Rs 2,649 crore. The fertiliser business contributed to 3.45% of the total consolidated revenue. The company has also revised its capex guidance for FY21 upwards to Rs 1,852 crore.
  • Reliance Industries: Entered into agreement to make a capital contribution of $50 million in Breakthrough Energy Ventures. The capital contribution commitment of $50 million constitutes 5.75% of the size of the fund contemplated at present. The said investment will be made in tranches over the next 8-10 years. The transaction is subject to approval from Reserve Bank of India.
  • Dr. Reddy's Laboratories: Announced the launch of Succinylcholine Chloride Injection in the U.S. market.
  • PNC Infratech: CARE Ratings upgraded long-term banking facilities worth Rs 1,700 crore to CARE AA from CARE AA-, with outlook remaining stable.
  • Future Lifestyle Fashions: CRISIL downgraded long-term bank facilities and NCDs to CRISIL B from CRISIL BB, with rating watch with negative implications remaining unchanged due to delay in servicing of interest and principal due on November on the company’s NCDs.
  • Camlin Fine Sciences: Board has approved setting up of an additional plant at Dahej with production capacity of 6,000 metric ton for manufacturing of ethyl vanillin and allied products for Rs 135 crore.
  • Infibeam Avenues: To acquire 33.3% stake in So Hum Bharat Digital Payments for Rs 18 crore. Navin Surya and Vishwas Patel, executive director at Infibeam Avenues, set up So Hum Bharat Digital Payments to explore a new umbrella entity license. If granted a license from RBI, the new umbrella entity will directly compete with National Payments Corporation of India in the digital payments space.
  • Sadbhav Infra Projects: NHAI accepts arbitration award amounting to Rs 44 crore for the company's unit Dhule Palesner Tollway. As per the restated Share Purchase Agreement, 60% of the awarded amount shall be paid to HCC Concessions and the rest will belong to the company.
  • Varroc Engineering: NCLT Mumbai approves amalgamation of Varroc Lighting Systems with the company.
  • RBL Bank: Board approved allotment of 8.85 crore shares on a preferential basis at Rs 177 per share aggregating to Rs 1,566 crore. Allotment given to Gaja Group, ICICI Prudential Life Insurance, CDC Group and Maple BV.
  • NBCC: Gets work contracts worth Rs 905 crore for development of Bharat Vandana Park and IIM Vishakapatnam.
  • CG Consumer Electricals: Aditya Birla Sun Life Mutual Fund increased stake to 5.23% from 4.63% on November 10.
  • Inox Leisure: Closed QIP issue on November 12. The Board has approved the issue price of Rs 255 per share, which is a 3% discount to the QIP floor price.
  • Nifty Earnings Today: ONGC, Tata Steel
  • Non-Nifty Earnings Today: Apex Frozen Foods, Equitas Holdings, Graphite India, Hindustan Aeronautics, Indiabulls Real Estate, Repco Home Finance, Spandana Sphoorty, Sunteck Realty, Valiant Organics.

Earnings Reported After Market Hours

Sun TV Q2FY21

  • Revenue down 4.4% to Rs 768.7 crore
  • Net profit down 9.1% to Rs 335.1 crore
  • Ebitda up 4.7% to Rs 502.1 crore
  • Ebitda margin at 65.3% from 59.6%
  • Subscription revenue up 14% to Rs 427 crore
  • Lower operating expenses aid margins
  • Bottomline impacted due to higher taxes
  • All numbers are consolidated and compared on a year-on-year basis

Phoenix Mills Q2FY21

  • Revenue down 48.2% to Rs 214.9 crore
  • Net loss of Rs 35.9 crore from net profit of Rs 65.8 crore
  • Ebitda down 56.5% to Rs 91.7 crore
  • Ebitda margin at 42.7% from 50.8%
  • All numbers are consolidated and compared on a year-on-year basis

Pledged Share Details

  • JSW Energy: Promoters released pledge of 19.1 lakh shares on November 11.
  • CG Consumer Electricals: Promoter Amalfiaco created pledge of 2.86 crore shares on November 10.
  • Hatsun Agro Products: Promoter C Sathyan created pledge of 18.7 lakh shares on November 11.

(As Reported On November 12)

Bulk Deals

  • Indiabulls Real Estate: Rare Enterprises acquired 50 lakh shares (1.1%) at Rs 57.73 per share and Morgan Stanley Asia sold 75.8 lakh shares (1.67%) at Rs 57.16 per share. Rare Enterprises is promoted by Rakesh Jhujhunwala.
  • Just Dial: Promoter Venkatachalam Sthanu Subramani acquired 3.13 lakh shares (0.51%) at Rs 608.87 per share.
  • Tourism Finance Corporation of India: Sameer Gupta acquired 5 lakh shares (0.62%) at Rs 39.54 per share.

Block Deals

  • Hatsun Agro Product: Promoter Chandramogan Sathyan acquired 1.72 lakh shares at Rs 825 per share and Malabar Select Fund acquired 1.4 lakh shares at Rs 825 per share.

Trading Tweaks

  • AGM: P&G Hygiene and Health Care.
  • Record Date For Buyback: NTPC, Ajanta Pharma, Majesco.
  • Price Band Revised From 5% To 2%: Jump Networks, Saven Tech.
  • Move Into ASM Framework: Xpro India, PG Electroplat, Vikas EcoTech.
  • Move Out Of Short Term ASM Framework: Auro Labs, Aimco Pesticides.

Insider Trades

  • HFCL promoter MN Ventures acquired 10 lakh shares on November 12.

(As Reported On November 12)

Money Market Update

  • The rupee ended lower for the second straight day, ending at 74.65 against the U.S. Dollar, as compared to Wednesday's close of 74.36.
  • The currency remained the third worst performer in Asia on Thursday.

F&O Cues

  • Nifty November futures closed at 12,704; premium of 13 points from 17 points
  • Nifty November futures shed 3.4% and 4.1 lakh shares in Open Interest
  • Nifty Bank November futures closed at 28,310; premium of 31 points from 2 points
  • Nifty Bank November futures shed 4.1% and 78,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.54

Nifty Weekly Expiry: November 19

  • Maximum Open Interest on Call side at 13,000 strike (23.5 lakh shares)
  • Maximum Open Interest on Put side at 12,600 strike (11.5 lakh shares)
  • Active Options: 12,600 Put (+7.8 lakh shares) and 13,000 Call (+8.9 lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 13,000 strike (19.7 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (33.5 lakh shares)
All You Need To Know Going Into Trade On November 13
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