All You Need To Know Going Into Trade On November 6
Pedestrians pass a sign advising people to wear face masks in Frankfurt, Germany. (Photographer: Alex Kraus/Bloomberg)

All You Need To Know Going Into Trade On November 6

Asian markets have regained some lost ground after opening lower, despite another strong session on Wall Street.

Benchmark indices in Japan are trading with modest gains while those in South Korea are trading slightly lower. Australian markets trade with gains of 0.7%.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.2% to 12,149 as of 7:00 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 with heavy volatility, currently fluctuating between losses of 80-150 points. The index ended another 2% higher on Thursday.
  • Federal Reserve officials kept interest rates at zero and made no change to asset purchases while continuing to stress that the U.S. economy needs more fiscal and monetary support.
  • The U.S. Dollar has edged higher after hitting the lowest in over two years. The Bloomberg Dollar spot index is up 0.1% after Thursday's 1% drop.
  • “The market reaction to the unfolding election news suggests that financial markets would prefer to see a constrained Biden presidency,” said Paul O’Connor, head of multi-asset at Janus Henderson Investors.
  • The U.S. became the first country in the world to top 1 lakh Covid-19 infections in a single day.
  • The U.S. non-farm payrolls report is due today.
  • Yield on the 10-year treasuries stood at 0.77%.
  • West Texas Intermediate crude fell 0.8% to $38.49 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On November 6

Stocks To Watch

  • Reliance Industries: Saudi Arabia Public Investment Fund to invest Rs 9,555 crore for a 2.04% stake in Reliance Retail Ventures. The investment values Reliance Retail Ventures at a pre-money equity valuation of Rs 4.58 lakh crore.
  • Adani Green Energy: Arm Adani Solar Energy Jodhpur Two has commissioned its 50 MW Solar Power Project as an independent Power Producer for sale of power to third parties or on the Power exchange.
  • Minda Corp: To allot 1.19 crore shares on a preferential basis to PHI Capital Trust. The shares will be allotted at a price of Rs 70 apiece, aggregating to Rs 83 crore.
  • Inox Leisure: Board approved raising Rs 250 crore via equity or other securities.
  • JSPL: Sarda Mines can resume operations after paying fine of Rs 5 lakh to Odisha government, which means JSPL can lift iron ore from SMPL post this payment.
  • Cupid: To expand its manufacturing base to medical diagnostic test which included Rapid diagnostics tests and ELISA tests for domestic markets and exports.
  • Greaves Cotton: Amit Mittal resigns as CFO from November 5.
  • Nifty Earnings Today: Cipla, ITC
  • Non-Nifty Earnings Today: Vedanta, Aditya Birla Fashion & Retail, Ashok Leyland, Astral Poly, Balkrishna Industries, BEML, BEL, BHEL, CreditAccess Grameen, Glenmark, Dr Lal Pathlabs, Glenmark, Gulf Oil, India Cements, Manappuram Finance, MRF, REC, Shipping Corporation of India, Tata Consumer Products, United Breweries, Voltas, VRL Logistics

Earnings Reported After Market Hours

Aditya Birla Capital Q2FY21

  • Revenue up 14% to Rs 4,879 crore
  • Net profit up 3% to Rs 264 crore
  • Gross disbursement in lending business returns to Pre-Covid-19 levels in September
  • All numbers are consolidated and compared on a year-on-year basis

Inox Leisure Q2FY21

  • Revenue down 99.9% to Rs 0.4 crore
  • Net loss of Rs 67.8 crore from net profit of Rs 35.1 crore
  • Ebitda down 75.8% to Rs 40.6 crore
  • Received rent concessions of Rs 72.6 crore during the quarter
  • All numbers are consolidated and compared on a year-on-year basis

Berger Paints Q2FY21

  • Revenue up 9% to Rs 1,742.6 crore
  • Net profit up 13.3% to Rs 220.9 crore
  • Ebitda up 33.5% to Rs 335.2 crore
  • Ebitda margin at 19.2% from 15.7%
  • Lower raw material costs aid margins
  • All numbers are consolidated and compared on a year-on-year basis

Adani Power Q2FY21

  • Revenue up 31% to Rs 7,749.2 crore
  • Net profit of Rs 2,228.1 crore from Rs 3.9 crore
  • Ebitda up 3 times to Rs 4,042.6 crore
  • Ebitda margin at 52.2% from 22.8%
  • Lower fuel costs, lower transmission charges and higher realisations aid margins
  • Net profit aided by higher other income
  • All numbers are consolidated and compared on a year-on-year basis

Dalmia Bharat Q2FY21

  • Revenue up 7.8% to Rs 2,410 crore
  • Net profit of Rs 232 crore from Rs 27 crore
  • Ebitda up 49.3% to Rs 703 crore - highest ever
  • Ebitda margin at 29.2% from 21.1%
  • Ebitda per tonne at Rs 1,457 from Rs 1,039
  • Sales volume at 4.8 MT from 4.47 MT
  • Lower power and freight expenses aid margins
  • All numbers are consolidated and compared on a year-on-year basis

Brokerage Radar

Morgan Stanley On Aditya Birla Capital

  • Overweight rating maintained
  • Price target raised to Rs 91 from Rs 80
  • NBFC and HFC profitability and collection efficiency picked up well
  • Growth was stronger than industry ‌in life and health insurance
  • Remain positive on strong capital, funding, parentage, deep value and a gradual sustained all-round franchise improvement
  • Raise FY21/22/23e EPS estimates by 8%, 15% and 14% respectively

CLSA On Nestle India

  • Outperform rating maintained
  • Price target of Rs 17,670
  • Return to double-digit momentum looks sustainable
  • Innovation likely to be constrained in the current setting
  • Peak capacity utilisation may constrain near-term demand support
  • Well placed to addressed long-term packaged food demand post capacity augmentation
  • Conducive setting for packaged food adoption
  • Valuations limit upside

Citi On SRF

  • Buy rating maintained
  • Price target raised to Rs 6,417 from Rs 5,195
  • All round beat with improving outlook
  • Management noted encouraging near to medium-term demand trend
  • Raise in specialty chemicals growth guidance and capex guidance underlines improved outlook
  • Recent regulatory developments bode well for fluorochemicals business
  • Raise FY21E/22E EPS estimates by 36% and 24% respectively
  • Build-in 4-8% higher revenue and 400-250 bps higher margins

UBS On Godrej Consumer Products

  • Buy rating maintained
  • Price target of Rs 850
  • Q2 results in-line but insecticide business needs growth sustainability
  • Overall outlook for international business is mixed
  • Key risks: Intensifying competition, increasing raw material costs and slowing economic growth
  • Exposure to multiple country and currency risks with expansion into international markets

HSBC On Godrej Consumer Products

  • Hold rating maintained
  • Price target raised to Rs 705 from Rs 700
  • Domestic volume growth of 5% was slightly below expectations
  • International business continues to remain mixed
  • Common theme is to achieve mitigation of volatility in operating performance across categories
  • Investment case hinges on how it puts Household Insecticides business back on a sustained growth path in India

Bulk Deals

  • Mold-Tek Packaging Rights Issue: Kitara India Micro Cap Growth Fund sold 4,045 right shares at Rs 808.92 per rights share.

Who’s Meeting Whom

  • Mahindra Logistics: To meet Steinberg Asset Management and Axis Capital on November 6.
  • Tata Chemicals: To meet Franklin Templeton Investments on November 9.

Trading Tweaks

  • Ex-Date For Buyback: Cosmo Films
  • Move Into ASM Framework: TCM.
  • Move Into Short Term ASM Framework: Pitti Engineering.
  • Move Out Of Short Term ASM Framework: Angel Broking, Mold-Tek Technologies, NDR Auto Components, Sanghi Industries, Suzlon Energy.

Insider Trades

  • HFCL: Promoter MN Ventures acquired 10 lakh shares on November 5.
  • DB Corp: Promoter Bhawna Agarwal acquired 49,150 shares between October 26 - November 3

(As Reported On November 5)

Money Market Update

  • The rupee staged a rebound on Thursday, ending at 74.36 against the U.S. Dollar, as compared to Wednesday's close of 74.76.
  • All of the 12 Asian currencies gained against the U.S. Dollar on Friday. Rupee ended as the seventh best performer.
All You Need To Know Going Into Trade On November 6

F&O Cues

  • Nifty November futures closed at 12,152; premium of 32 points from discount of 1 point
  • Nifty November futures add 7.5% and 7.9 lakh shares in Open Interest
  • Nifty Bank November futures closed at 26,307; discount of 6 points from 86 points
  • Nifty Bank November futures add 11% and 1.8 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.59

Nifty Weekly Expiry: November 12

  • Maximum Open Interest on Call side at 13,000 strike (17.9 lakh shares)
  • Maximum Open Interest on Put side at 12,000 strike (18.3 lakh shares)
  • Active options: 12,000 Put (+17.8 lakh shares), 13,000 Call (+15.3 lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 12,000 strike (18.2 lakh shares)
  • Maximum Open Interest on Put side at 11,000 strike (25.4 lakh shares)
All You Need To Know Going Into Trade On November 6
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