All You Need To Know Going Into Trade On October 30
A train travels along tracks in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On October 30

Asian markets are mixed on the final trading day of the week. Investors are currently grappling between election uncertainty, better-than-forecast economic data and growing cases of Covid-19 in many parts of U.S. and Europe.

Benchmark indices in Japan and South Korea have opened lower while those in Australia are advancing. The U.S. Dollar and treasury yields have held on to overnight gains.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 11,653 as of 6:50 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 170 points lower currently. The index ended 0.5% higher on Thursday.
  • Shares of Apple fell in after-hours trading after it missed sales estimates in the quarter and also said that sales in China declined 29%.
  • The U.S. economy grew 33.1% in the July-September period reflecting a rebound in economic activity after widespread lockdowns earlier this year.
  • The European Central Bank paved the way for a package of fresh easing in December to deal with a worsening economic outlook, as Covid-19 cases rise.
  • Yield on the 10-year treasuries stood at 0.83%.
  • West Texas Intermediate crude was up 0.2% to $36.24 per barrel. Oil prices were at a multi-month low on fears of demand destruction from tighter lockdown measures.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On October 30

Stocks To Watch

  • Tata Group Stocks: The Mistry-family owned SP Group has proposed a plan of separation from Tata Sons. The SP Group has proposed a selective reduction of capital at Tata Sons, thereby extinguishing the shares held by them. In exchange, SP Group can be granted shares in listed companies of the group. It has also proposed cash consideration or shares for brand value, unlisted assets etc. The SP Group holds 18.37% stake in Tata Sons, which it values at more than Rs 1.75 lakh crore.
  • HPCL: To consider share buyback on November 4.
  • InterGlobe Aviation: To defer decision on Qualified Institutional Placement to December.
  • ICICI Prudential Life Insurance: Board approved raising Rs 1,200 crore via NCDs.
  • Aviation Stocks: Hardeep Singh Puri, Minister of Civil Aviation stated that there will be an extension of the fare-cap on airlines by another three months.
  • Indian Energy Exchange: Signs agreement with MCX which will enable the latter to use IEX's electricity clearing prices for settlement of its electricity derivative contracts.
  • Vedanta: CRISIL downgrades long-term facilities to CRISIL AA- from CRISIL AA. The outlook has been revised to stable from negative. The company will also be considering its quarterly results on November 6.
  • MRPL: Board approved raising up to Rs 5,000 crore via NCDs.
  • Zensar Tech: Board gives in-principle approval for merger of its wholly-owned arm Cynosure Interface Services with itself.
  • AU Small Finance Bank: Board has approved re-appointment of Raj Vikash Verma as part chairman till April 8, 2023.
  • Nifty Earnings Today: Indian Oil Corporation, IndusInd Bank, Reliance Industries, UPL
  • Non-Nifty Earnings Today: Deepak Nitrite, Dhanuka Agritech, Dixon Technologies, DLF, Edelweiss, JSPL, Just Dial, Max Financial Services, Motilal Oswal, Quess Corp, Rain Industries

Earnings Reported After Market Hours

InterGlobe Aviation Q2FY21

  • Revenue down 66% to Rs 2,741 crore
  • Net loss widens to Rs 1,195 crore from Rs 1,065 crore
  • Ebitdar up 3.1 times to Rs 275 crore
  • Ebitdar margin at 10.2% from 1.1%
  • All numbers are standalone and compared on a year-on-year basis

TVS Motor Q2FY21

  • Revenue up 6% to Rs 4,605 crore
  • Net profit up 12% to Rs 179 crore
  • Ebitda up 13% to Rs 430 crore
  • Ebitda margin at 9.3% from 8.8%
  • All numbers are standalone and compared on a year-on-year basis

Vodafone Idea Q2FY21

  • Revenue up 1.2% to Rs 10,791.2 crore
  • Net loss narrows to Rs 7,218.5 crore
  • Ebitda up 1.3% to Rs 4,152.4 crore
  • Ebitda margin at 38.5% from 38.4%
  • ARPU at Rs 119 from Rs 114
  • All numbers are consolidated and compared on a quarter-on-quarter basis

Canara Bank Q2FY21

  • Net Interest Income up 29.3% to Rs 6,296 crore
  • Net profit up 22% to Rs 444 crore
  • Gross NPA at 8.23% from 8.84% last quarter
  • Net NPA at 3.42% from 3.95% last quarter
  • Provisions up 5% from the previous quarter to Rs 4,016.8 crore
  • Made provisions of Rs 125 crore for restructuring any loan accounts
  • Net profit and Net Interest Income compared on a year-on-year basis

Shriram Transport Finance Q2FY21

  • Net Interest Income down 1.6% to Rs 2,021.8 core
  • Net profit down 10.5% to Rs 684.5 crore
  • Assets Under Management up 4.8% to Rs 1,13,345.9 crore
  • Gross Stage 3 assets at 7.26% from 7.98% last quarter
  • Net stage 3 assets at 4.51% from 5.06% last quarter
  • Declares dividend of Rs 6 per share
  • NII, Net profit and AUM are compared on a year-on-year basis

Zensar Technologies Q2FY21

  • U.S. Dollar revenue up 0.6% to $131.6 million
  • Revenue down 1% to Rs 979.4 crore
  • Net profit down 97% to Rs 2.3 crore
  • Ebit up 43% to Rs 141 crore
  • Ebit margin at 14.4% from 9.9%
  • Exceptional loss of Rs 88.73 crore this quarter for adjustment in respect of excess carrying amount including goodwill over recoverable amount on classification as 'held for sale'.
  • Digital accounted for 61% of overall revenue in Q2FY21
  • Insurance and banking segment grew 4.6% and 11.5% respectively
  • Consumer services business up 12.8%
  • Total Contract Value at $175 million
  • All numbers are consolidated and compared on a quarter-on-quarter basis

Apollo Pipes Q2FY21

  • Revenue up 28% to Rs 123.3 crore
  • Net profit up 64% to Rs 9.5 crore
  • Ebitda up 60% to Rs 15.5 crore
  • Ebitda margin at 12.6% from 10.1%
  • All numbers are standalone and compared on a year-on-year basis

Brokerage Radar

CLSA On Maruti

  • Sell rating maintained
  • Price target raised to Rs 6,300 from Rs 5,675
  • Raise FY21-23 EPS by 5-10% to factor in outperformance in our forecast
  • Management gearing up for strong demand in the near-term
  • Current valuation premium reflects higher consensus earnings expectations over the next 2-3 years
  • Upside risks include faster-than-expected recovery in volume and market share

CLSA On TVS Motor

  • Upgrade to outperform from sell
  • Price target raised to Rs 460 from Rs 435
  • Valuation premium may continue due to significant EPS growth over past decade
  • Raise FY21-23 EPS estimates by 5-7% on better expected mix and costs
  • H2FY21 and FY22 forecasts build-in slightly lower Ebitda margin as we expect some costs to pick up
  • Risk-reward is now turning favourable
  • Any material increase / decrease in two-wheeler market share is an upside / downside risk for the stock

CLSA On Vodafone Idea

  • Underperform rating maintained
  • Price target cut to Rs 8.5 from Rs 12
  • Q2 results were below estimates
  • Reeling under huge spectrum, AGR burdens amid continued subscriber loss
  • Cut FY21-23 forecasts by 3-9%
  • See upside to ARPU forecast with a potential sector floor tariff
  • Await sector tariff hikes

Pledged Share Details

  • JSW Steel: Promoter Danta Enterprises revoked pledge of 26 lakh shares on October 26.
  • Max Financial Services: Promoter Max Venture Investment Holdings created pledge of 9.35 lakh shares on October 26.

(As Reported On October 29)

Bulk Deals

  • Angel Broking: Kuwait Investment Authority acquired 4.3 lakh shares (0.53%) at Rs 321.73 per share.
  • MCX: Smaller Cap World Fund acquired 5.32 lakh shares (1.04%) at Rs 1,759.93 per share.
  • Majesco: Promoter Sudhakar Ram sold 5 lakh shares (1.67%) at Rs 919 per share.

Trading Tweaks

  • Price Band Revised From 20% To No Band: ICICI Lombard General Insurance.
  • Record Date For Share Buyback: KIOCL
  • Move Into ASM Framework: Globus Spirits.
  • Move Into Short Term ASM Framework: GE Power.
  • Move Out Of Short Term ASM Framework: Borosil Remewables.

Money Market Update

  • The rupee ended at a two-month low on Thursday, ending lower for the second day in a row.
  • The currency closed at 74.11 against the U.S. Dollar, as compared to Wednesday's close of 73.87.
  • It was the worst performing currency in Asia on Thursday.
All You Need To Know Going Into Trade On October 30

F&O Cues

  • Nifty November futures closed at 11,670; discount of 1 point from 10 points
  • Nifty November futures add 49% and 32.8 lakh shares in Open Interest
  • Nifty Bank November futures closed at 24,110; premium of 18 points from 17 points
  • Nifty Bank November futures add 34% and 4 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 0.98
  • Out Of F&O Ban: Coforge, Vodafone Idea.

Nifty Weekly Expiry: November 5

  • Maximum Open Interest on Call side at 12,500 strike (12.3 lakh shares)
  • Maximum Open Interest on Put side at 11,600 strike (11.2 lakh shares)
  • Active Options: 11,600 Put (5.7 lakh shares) and 12,500 Call (7.7lakh shares)

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 12,000 strike (14.5 lakh shares)
  • Maximum Open Interest on Put side at 11,500 strike (21.3 lakh shares)
All You Need To Know Going Into Trade On October 30
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