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All You Need To Know Going Into Trade On May 7

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Asian stocks were mixed at the open, shrugging off the biggest advance in U.S. shares in almost four weeks Friday as the country’s jobless rate hit an 18-year low.

The dollar drifted from a recent high. Equity benchmarks in Japan fluctuated and gained in Australia. Hong Kong futures climbed alongside S&P 500 Index futures. The MSCI Asia Pacific declined for a second consecutive week last week.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.22 percent to 10,690 as of 7:05 a.m.

Global Cues

  • U.S. stocks logged their biggest advance on Friday in almost four weeks after the country’s jobless rate hit an 18-year low.
  • The dollar finished higher while Treasury yields flattened out as the market assessed the impact of America’s inconclusive trade talks with China.

Europe Check

  • European shares rose to cap a sixth straight week of gains as the common currency declined and U.S. stocks advanced after a jobs report.

Asian Cues

  • Topix index fell 0.1 percent as of 9:09 a.m. in Tokyo.
  • S&P/ASX 200 rose 0.7 percent.
  • Hang Seng Index futures gained 0.7 percent.
  • Futures on the S&P 500 rose 0.2 percent. The S&P 500 closed up 1.3 percent Friday, the Nasdaq Composite Index rose 1.7 percent.

Here are some key events coming up this week:

  • Nafta talks resume in Washington Monday. The negotiators are expected to push for a final deal, but U.S. Commerce Secretary Wilbur Ross said talks could drag on for months.
  • Chinese trade data due Tuesday.
  • Australian annual budget Tuesday.
  • Malaysia holds a general election Wednesday.
  • Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang Wednesday.
  • Bank of England policy decision Thursday.
  • Deadline set by President Trump on whether to stick with with 2015 Iran nuclear accord or pull out and reimpose sanctions on the Persian Gulf nation.
  • Walt Disney, Petrobras, Marriott, Toyota, Ambev, Deutsche Telekom, Sun Life Financial, Nvidia, Brookfield Asset Management, Anheuser-Busch InBev, Panasonic, Banco do Brasil, Nissan, Thomson Reuters, Sysco, Tyson Foods, SoftBank, Siemens and 21st Century Fox are among many companies announcing earnings.
  • South Korean markets are closed for a holiday.

Commodities Check

  • West Texas Intermediate crude oil was up 0.1 percent to $69.81 a barrel, the highest in more than three years. It increased 1.9 percent on Friday.
  • Gold rose 0.1 percent to $1,316.01 an ounce.
  • LME copper was little changed at $6,826 a metric tonne on Friday.

Indian ADRs

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Nifty Earnings To Watch

  • ICICI Bank

Other Earnings

  • Exide Industries
  • Firstsource Solutions
  • Inox Leisure
  • Pfizer
  • Talwalkars Better Value Fitness
  • Tata Chemicals
  • Tata Coffee
  • Tata Investment Corporation
  • Vijaya Bank
  • Zee Learn

Earnings Reaction To Watch

Avenue Supermarts Q4 YoY

  • Revenue up 22.5 percent at Rs 3,809.9 crore
  • Net profit up 73 percent At Rs 167.1 crore
  • EBITDA up 41.7 percent At Rs 294.4 crore
  • Margin At 7.7 percent versus 6.7 percent

Nocil Q4 YoY

  • Revenue up 44.5 percent at Rs 276 crore
  • Net profit up 143 percent at Rs 51 crore
  • EBITDA up 113 percent at Rs 84 crore
  • Margin at 30.4 percent versus 20.7 percent

SQS India Q4 QoQ

  • Revenue up 9 percent at Rs 76 crore
  • Net profit up 82 percent at Rs 10 crore
  • EBIT up 57 percent at Rs 11 crore
  • Margin at 14.5 percent versus 10 percent
  • Other Income of Rs 3.8 crore in current quarter

Wockhardt Q4 YoY

  • Revenue up 18 percent at Rs 1,018 crore
  • Net loss of Rs 155 crore versus net loss of Rs 175 crore
  • Other income of Rs 56 crore in base quarter

Deepak Nitrite Q4 YoY

  1. Revenue up 19.5 percent at Rs 393 crore
  2. Net profit down 5 percent at Rs 20 crore
  3. EBITDA up 21.25 percent at Rs 48.5 crore
  4. Margin at 12.3 percent versus 12.2 percent

Indo Count Industries Q4 YoY

  • Revenue down 13 percent at Rs 406 crore
  • Net profit down 45 percent at Rs 27 crore
  • EBITDA down 6 percent at Rs 42 crore
  • Margin at 10.3 percent versus 9.5 percent

Great Eastern Shipping Co Q4 YoY

  • Revenue up 3 percent at Rs 769 crore
  • Net loss of Rs 418 crore versus net loss of Rs 34 crore
  • EBITDA down 95.5 percent at Rs 7 crore
  • Margin at 0.9 percent versus 20.8 percent
  • Other income down 64 percent at Rs 46 crore
  • Total expenses up 21 percent at Rs 1074 crore

BASF India Q4 YoY

  • Revenue up 5.5 percent at Rs 1,344 crore
  • Net profit up 53.5 percent at Rs 66 crore
  • Other Income of Rs 11 crore in current quarter
  • EBITDA down 18 percent at Rs 100 crore
  • Margin at 7.4 percent versus 9.6 percent

Stocks To Watch

  • Sources close to Lupin say U.S. FDA to start inspection of the drugmaker’s Nagpur plant from May 7
  • UltraTech submits fresh offer of Rs 7840 crore For Binani Cement. The lenders are expected to meet on Monday to discuss UltraTech’s new bid (Economic Times)
  • PC Jeweller prepones buyback date to May 10 from earlier announced May 25
  • Aurobindo Pharma launches $1.6 billion bid to buy Novartis’ generics unit (Mint)
  • Infosys approves Rs 13 crore of annual performance equity grant for MD and CEO Salil Parekh
  • L&T IDPL transfers stake in five units to IndInfravit Trust
  • Fortis Healthcare receives revised offer from Manipal Healthcare. The hospital chain operator has appointed Arpwood Capital to advise on sale bids. Shareholders, meanwhile, approve acquisition of RHT Health Trust assets.
  • MRF, JK Tyres, Ceat: Tyre companies raise prices up to 3 percent on back of rising input costs
  • NHPC receives CERC nod to undertake interstate trade in electricity across the country
  • Bodal Chemicals to acquire land at PCPIR, Dahej from GIDC for future expansion and new projects
  • Airtel says talks on Bain BV listing at exploratory stage
  • Glenmark Pharma says clinical trials at Malpani Hospital suspended
  • Blackstone buys Indiabulls asset in Tamil Nadu for Rs 900 crore (ET)
  • Welspun Gets demand notice of Rs 179 crore for tax, interest, penalty for FY10 and FY11
  • Vakrangee appoints A. P. Sanzgiri & Co as auditors for FY17-18 to fill in casual vacancy
  • Cadila Healthcare says Zydus gets final approval from FDA for Succinylcholine Chloride

Bulk Deals

Career Point

  • KIFS Enterprise sold 1.05 lakh shares or 0.6 percent equity at Rs 125.09 each.

Gitanjali Gems

  • Morgan Stanley France SAS sold 6.67 lakh shares or 0.6 percent equity at Rs 2.8 each

Elpro International

  • IGE (india) Private Limited bought 9.94 lakh shares or 0.7 percent equity at Rs 58.85 each.
  • Cresta Fund Ltd sold 10 lakh shares or 0.7 percent equity at Rs 58.85 each.

Trading Tweaks

  • JBF Industries shifted to T group and placed under additional surveillance.

Insider Trades

  • Rajesh Exports promoter Rajesh Mehta acquired 9,789 shares on May 3.
  • Kwality Ltd promoter Sanjay Dhingra acquired 10 lakh shares on May 3.

Rupee

  • Rupee ended lower at 66.87 per dollar versus Thursday’s close of 66.65.

Top Gainers And Losers

F&O Cues

  • Nifty May Futures closed trading at 10,658.7 with a premium of 40.5 points versus of 26.9 points
  • All series- Nifty & Bank Nifty open interest (OI) unchanged
  • India VIX ended at 13.2, up 2 percent
  • Max OI for May series call at 11,000 strike price call option, OI at 57.9 lakh shares, down 3 percent
  • Max OI for May series put shifts to 10,500 strike price put option, OI at 48 lakh shares, up 7 percent

F&O Ban

In ban: Balrampur Chini, IRB Infra, Jet Airways, Just Dial, PC Jewellers

New in ban: Balrampur Chini

Out of ban: None

Only intraday positions can be taken in stocks which are in F&O ban, incase of rollover of these

Put-Call Ratio

  • Nifty PCR at 1.48 versus 1.50
  • Nifty Bank PCR at 1.31 versus 1.59

Stocks Seeing High Open Interest Change

Brokerage Radar

Credit Suisse on Ambuja Cements

  • Maintain ‘Underperform’; Cuts target price to Rs 202 from Rs 220
  • Q1CY18 results weak on both volume growth and cost trend
  • Cost pressure only partly visible in Mar 2018; More to come
  • Rupee depreciation to further worsen the cost pressure
  • Cut CY18/19 EPS estimates by 17/8 percent to build lower cement prices and higher cost

Macquarie on Ambuja Cements

  • Maintain ‘Neutral’; Cuts target price to Rs 242 from Rs 300
  • Q1CY18 in-line; Lower volumes offset by lower cost
  • Volume growth to return to 4-5 percent in CY18-19 due to capacity constraints
  • Lower than mean valuations to limit downside

Antique on NIIT Tech

  • Maintain ‘Buy’; Raises target price to Rs 1,210 from Rs 1,000
  • Q4 results significant beat; Revenue/EBIT growth best in peers
  • Robust outlook for FY19 backed by healthy deal pipeline
  • Company expects double digit revenue growth
  • Trading at discount to peers; Risk reward compelling

Motilal Oswal on CESC

  • Maintain 'Buy'; Raised target price to Rs 1,440 from Rs 1,408
  • Unlocking value through demerger
  • Distribution and generation - combined value greater than the current market cap
  • Spencers - focus turning to growth; Target to increase margins to 5 percent

Citi on Petronet LNG

  • Maintain 'Buy' with target price of Rs 310
  • Stock trading at 10 percent off our bear case value of Rs 195
  • At current levels, risk-reward is attractive
  • Investors nervous on start-up of Mundra Regas Terminal & FSRU by H-Energy at Jaigarh
  • Believe Mundra could get to 30 percent utilisation

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