All You Need To Know Going Into Trade On November 4
People shop in Canterbury, U.K. (Photographer: Luke MacGregor/Bloomberg)

All You Need To Know Going Into Trade On November 4

Asian markets are trading with gains this morning, even as U.S. futures gave up gains as votes get counted in the U.S. Presidential elections.

Benchmark indices in Japan and South Korea are trading higher.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.55% to 11,761 as of 8:30 a.m.

Treasury yields fluctuated around the mark of 0.9%. A portion of the yield curve has steepened the most since 2016, as longer-dated bonds fell more than their short-term counterparts.

As per early data available, democratic candidate Joe Biden has won Virginia, Illinois, Maryland, New Jersey, Massachusetts, Connecticut, Vermont, Rhode Island, Delaware and District of Columbia, according to the AP.

President Donald Trump has won Indiana, Kentucky, Tennesse, South Carolina, Alabama, Mississippi, West Virginia and Oklahoma.

West Texas Intermediate crude gained 2.1% to $38.44 per barrel while Gold reversed early gains to trade little changed at $1,911.3/Oz.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Get your daily fix of the global markets here.

Also read: U.S. Election Results Live: U.S. Stock Futures Hit Session Lows; Gold Drops

All You Need To Know Going Into Trade On November 4

Earnings Fineprint: Adani Ports & SEZ Q2FY21

  • Revenue up 2.9% to Rs 2,902.5 crore
  • Net profit up 31.6% to Rs 1,387 crore
  • Ebitda up 3.3% to Rs 1,850.5 crore
  • Ebitda margin of 63.8% from 63.5%
  • FY21 revenue guidance of Rs 12,500 - 13,000 crore
  • FY21 Ebitda guidance of Rs 8,000 - 8,500 crore
  • FY21 capex guidance of Rs 2,000 crore
  • Expect net debt-equity ratio to return to target range of 3-3.5x by FY22
  • All numbers are consolidated and compared on a year-on-year basis

Stocks To Watch

  • Ajanta Pharma: Announces share buyback worth Rs 136 crore. Board to buyback 7.35 lakh shares or 0.84% of total equity at Rs 1,850 per share. The buyback price is a 15% premium to Tuesday's closing price. Record date for the same has been set as November 13.
  • Cera Sanitaryware: Production at sanitaryware unit continues to be partially affected due to an unrest at its Mehsana facility. Production of Faucetware unit is not affected materially. Management is in the process of resolving the issue.
  • Somany Home Innovation: HDFC MF reduced its stake to 4.67% from 6.68% on October 30.
  • Bombay Dyeing: Brickwork Ratings downgraded bank facilities to BWR BBB+ from BWR A-, with outlook remaining negative.
  • Asahi Songwon Colors: To consider share buyback on November 6.
  • Deepak Fertilizers: Statutory auditors BSR and Associates resign due to commercial reasons.
  • Gujarat State Fertilizers & Chemicals: Set to manufacture pharma grade Ammonium Sulphate. Initial capacity of manufacturing will be around 300 MTPA and will be expandable in future.
  • ICICI Lombard General Insurance: Received no adverse observation letter from exchanges regarding the acquisition of Bharat Axa General Insurance.
  • PVR: Got complete rent waiver on lockdown period on 60% of its screens and significant discounts on reopening. Has secured permission to re-open 575 out of the total 831 screens.
  • HLE Glascoat: Board approves overall capex of Rs 20 crore for new manufacturing facility at Silvassa for filtration and drying equipment. Malabar India Fund to acquire 1.44 lakh shares at Rs 1,385 per share, aggregating to Rs 20 crore and 5.78 lakh warrants at Rs 1,385 per warrant, aggregating to Rs 80 crore.
  • Nifty Earnings Today: State Bank of India
  • Non-Nifty Earnings Today: HPCL, Adani Enterprises, Apollo Tyres, Balrampur Chini, Godrej Agrovet, JK Lakshmi Cement, Jubilant Life, Jyothy Laboratories, KEC International, Lupin, Petronet LNG, Pidilite, Thermax, United Spirits.

Earnings Reported After Market Hours

PVR Q2FY21

  • Revenue down 95.8% to Rs 40.5 crore
  • Net loss of Rs 184 crore from net profit of Rs 47.9 crore
  • Ebitda loss of 84.1 crore from Ebitda gain of Rs 318 crore
  • All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

CLSA On Adani Ports

  • Buy rating maintained
  • Price target of Rs 425
  • Volumes rebound in Q2; adds a new customer
  • Debt and indebtedness rose but nothing to worry about
  • Guidance back with improved visibility
  • Trades at a discount to peers like CONCOR
  • Remains the best long-term infra asset

Morgan Stanley On Adani Ports

  • Overweight rating maintained
  • Price target raised to Rs 439 from Rs 396
  • Pan-India presence, pricing power, high proportion of sticky cargo
  • Focused on improving utilisation over capacity creation
  • Strong Q2, cash flows are positives
  • KPCL acquisition is value accretive
  • Raise FY21-23E revenue estimates by 9-17% and Ebitda estimates by 15-19%

UBS On Godrej Properties

  • Sell rating maintained
  • Price target of Rs 550
  • Q2 a miss on most parameters
  • Weak operating cash flows yet again
  • Vulnerable to de-rating as sluggish recovery would slow pace of project additions
  • Cut EPS estimates owing to poor profitability
  • Already pricing in consolidation driven market share gains

Macquarie On Godrej Properties

  • Downgrade to neutral from outperform
  • Price target of Rs 1,050
  • Debt likely to rise in the next few quarters
  • New launches in H2FY21 should help in improving residential pre-sales
  • Downgrade given limited upside from current levels
  • Will benefit from consolidation in real estate space

Citi On Dabur

  • Buy rating maintained
  • Price target raised to Rs 590 from Rs 495
  • Adapting well to change
  • There are tailwinds for the portfolio, especially healthcare
  • Can expect healthcare growth to moderate on a high base
  • Margins can remain stable in H2FY21 despite inflation creeping in
  • Raise estimates by 2-5%

JPMorgan On Dabur

  • Overweight rating maintained
  • Price target raised to Rs 580 from Rs 570
  • Best in-class revenue growth to support premium multiples
  • Prioritising revenue growth over margin growth is the right strategy
  • Market share gains witnessed across categories
  • Raise FY21/22 EPS estimates by 5% and 2% respectively

Pledged Share Details

  • Emami: Promoters released pledge of 49,000 shares on October 29

(As Reported On November 3)

Who’s Meeting Whom

  • CG Consumer Electricals: To meet UBS AMC on November 4.

Trading Tweaks

  • AGM: Rico Auto Industries.
  • Price Band Revised From 10% To 5%: GE Power India.
  • Move Into Surveillance Measure In Respect Of High Encumbrance: Jindal Stainless (Hisar), Sterling And Wilson Solar, Forbes & Co.
  • Move Out Of Surveillance Measure In Respect Of High Encumbrance: Deepak Fertilizers, GMR Infrastructure, Jindal Stainless, Shree Renuka Sugars, Omaxe, Hindustan Zinc, Emami.
  • Move Into ASM Framework: Salona Cotspin.
  • Move Into Short Term ASM Framework: Tata Teleservices (Maharashtra).
  • Move Out Of Short Term ASM Framework: Reliance Power, Himatsingka Seide, Menon Bearings, Trejhara Solutions.

Insider Trades

  • HFCL: Promoter MN Ventures Private Limited acquired 10 lakh shares on November 3

(As Reported On November 3)

Money Market Update

  • The currency snapped a three-day losing streak on Tuesday, ending little changed at 74.41 against the U.S. Dollar, as compared to Monday's close of 74.44.

F&O Cues

  • Nifty November futures end at 11,823; premium of 10 points from 4 points
  • Nifty November futures add 0.3% and 26,000 shares in Open Interest
  • Nifty Bank November futures end at 25,680; discount of 3 points from premium of 7 points
  • Nifty Bank November futures add 4% and 73,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.62

Nifty: November 5 Expiry

  • Maximum Open Interest on Call side at 12,500 strike (23.5 lakh shares)
  • Maximum Open Interest on Put side at 11,500 strike (21.4 lakh shares)
  • Active Options: 11,300 Put (-8 lakh shares) and 11,700 Call (-7 lakh shares)

Nifty: November 26 Expiry

  • Maximum Open Interest on Call side at 12,000 strike (15 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (24.8 lakh shares)
All You Need To Know Going Into Trade On November 4
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