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All You Need To Know Going Into Trade On Nov. 2

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Asian stocks built on the best weekly rally since September, stoked by hopes for trade talks and China stimulus. That offset underwhelming news from Apple Inc. that weighed on Nasdaq futures.

South Korean stocks led the advance, and along with rising Japanese shares took this week’s rally close to 3 percent. Gains came after a phone call between Presidents Donald Trump and Xi Jinping showed the door is still open for U.S.-China trade talks.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, gained 0.8 percent to 10,495 as of 7:15 a.m.

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BQ Live

U.S. Market Check

U.S. stocks rose for a third day, continuing a torrid rebound from the October sell-off as investors greeted the latest batch of earnings optimistically amid signs of easing trade tension.

Also Read: Apple $1 Trillion Value at Risk as Earnings Stumble Sinks Stock

Europe Market Check

European shares followed global markets in extending a recovery after October’s sell-off, bolstered by signs U.S.-China trade tensions may ease.

  • The Stoxx 600 Index advanced with telecoms and travel companies leading the way.
  • While strong results from the likes of ING Groep NV helped buoy sentiment, not all the news was positive, with Royal Dutch Shell Plc declining after profit fell short of expectations.

Also Read: Mercedes Widens Lead Over BMW Heading for U.S. Luxury Crown

Asian Cues

  • Japan’s Topix index rose 0.6 percent.
  • Australia’s S&P/ASX 200 slid 0.1 percent.
  • South Korea’s Kospi index surged 1.5 percent.
  • Futures on the FTSE China A50 surged 2.9 percent earlier.
  • Futures on the Hang Seng Index rose 2.1 percent earlier.
  • Futures on the S&P 500 were up 0.2 percent, while Nasdaq futures declined 0.8 percent.

Also Read: China's Stock Market Is Sending a Scary Signal About the Economy

Commodity Cues

  • West Texas Intermediate crude slid 0.1 percent to $63.61 a barrel.
  • Gold was flat at $1,232.65 an ounce, little changed on the week.
  • All base metals ended higher on the LME as China signals more stimulus to come. Copper, Zinc, Nickel and Lead gained between 1.5-2.5 percent.

Also Read: JPMorgan Sees First Geopolitical Risk Victims in Gold and Yen

Here are some key events to come on Friday:

  • Australian retail sales are due.
  • The final U.S. jobs report before next Tuesday’s congressional elections may show that hiring improved and that the unemployment rate held at a 48-year low.

Also Read: Iran Sanctions Kick in, Bringing Biggest Oil Disruption in Years

Indian ADRs

Also Read: U.S. Revokes Duty-Free Privileges On Import Of At Least 50 Indian Items

Stocks To Watch

  • Hindustan Petroleum Corporation will shut its crude unit in Mumbai refinery in January-March 2019 for 10 days. The company will take shut downs at both Mumbai and Vizag refinery in financial year starting from April 2019 for Euro 6 Hookups. The state-run refiner may consider importing Iran oil if U.S. grants waivers. The company also plans to merge Mangalore Refinery and Petrochemicals with self under integration plan. He added that the deal will take place in 6 months after board approvals. (Bloomberg News)
  • Indraprastha Gas: Supreme Court suggested the company to take over the supply of natural gas in Gurugram from Haryana City Gas Distribution Ltd. as an ongoing concern so that the entire dispute can be resolved amicably. Deloitte Haskins and Sells LLP has been appointed to submit the valuation within four weeks from today or by November 30. Next hearing is on December 6.
  • Goodyear India will be shutting down its manufacturing plant in NCR and the boiler operations of the plant from Nov. 4 to Nov. 10 in response to Environment Pollution Authority’s public notice for all industrials regarding pollution control.
  • Deepak Nitrite commenced operations at its phenol and acetone plant. The plant has the capacity to manufacture 200,000 MTPA of phenol and 120,000 MTPA of its co-product acetone.
  • Inox Leisure board approved issuing 64 lakh shares equity shares on a preferential basis to its promoter Gujarat Fluorochemicals at a floor price Rs 241.71 per share.
  • Reliance Industries and its four arms announced an open offer in acquisition of up to 2.88 crore shares, representing 25.64 percent of total voting capital of GTPL Hathway at Rs 82.65 per share aggregating to Rs 238.4 crore.
  • Triveni Turbine board approves share buyback proposal of 66.7 lakh shares representing 2.02 percent of the paid-up equity share capital at Rs 150 per share, aggregating to Rs 100 crore.
  • Tata Consultancy Services acquired London-based digital design studio ‘W12 Studios’. This deal will strengthen digital and creative design capabilities and will be part of TCS Interactive division, the company said.
  • Aarti Industries board approved raising capital by way of equity/debentures to the tune of Rs 750 crore.
  • Daiichi seeks India court stay on Fortis Healthcare: Bloomberg News
  • Aegis Logistics statutory auditors—P. D. Kunte & Co. resigned stating they are merging professional practice with another firm of chartered accountants ‘CNK & Associates LLP’ on Oct. 31. The board meeting for the financial results are scheduled for Nov. 5. On this day new statutory auditors will also be chosen.
  • NBCC India: High Court cleared three out of seven developments in Delhi: Bloomberg News
  • Network18 Media and Investments gets NCLT nod for merger of 13 arms with itself.

Also Read: Eicher Motors’ Royal Enfield Sales Remain Flat In October; Tata Motors Up 18%

Nifty Earnings To Watch

  • Axis Bank
  • Hindalco
  • Indian Oil Corporation
  • NTPC

Other Earnings To Watch

  • Alkem Laboratories
  • Allahabad Bank
  • Bata India
  • Bharat Forge
  • BSE
  • Equitas Holdings
  • Godrej Consumer Products
  • JSW Energy
  • Oracle Financial Services Software
  • Petronet LNG
  • Power Finance Corporation
  • Punjab National Bank
  • Steel Authority of India
  • Sun TV Network
  • Tata Chemicals
  • Whirlpool

Earnings Reactions To Watch

HPCL Standalone (Q2, QoQ)

  • Revenue down 0.2 percent to Rs 67,518 crore
  • Ebitda down 33.5 percent to Rs 2,122 crore
  • Ebitda margin at 3.1 percent versus 4.7 percent
  • Net profit down 36.5 percent to Rs 1,092 crore

Also Read: Q2 Results: HPCL’s Profit Misses Estimates As Refining Margin Falls To Two-Year Low

GlaxoSmithKline Consumer Healthcare (Q2, YoY)

  • Revenue up 14.4 percent at Rs 1,272 crore
  • Net profit up 43.2 percent at Rs 275.5 crore
  • Ebitda up 36.6 percent at Rs 353.7 crore
  • Margin at 27.8 percent versus 23.3 percent

Aarti Industries (Q2, YoY)

  • Revenue up 46.4 percent at Rs 1,299.5 crore
  • Net profit up 56.6 percent at Rs 122.9 crore
  • Ebitda up 51 percent at Rs 242.1 crore
  • Margin at 18.6 percent versus 18.1 percent

Trent Standalone (Q2, YoY)

  • Revenue up 18 percent at Rs 615.9 crore
  • Net profit up 13.4 percent at Rs 32.9 crore
  • Ebitda up 19.9 percent at Rs 59.1 crore
  • Margin at 9.6 percent versus 9.4 percent

Tata Communications (Q2, YoY)

  • Revenue down 4.2 percent at Rs 4,068.2 crore
  • Net profit at Rs 1.7 crore versus net loss at Rs 248.4 crore
  • Ebitda up 6 percent at Rs 630.2 crore
  • Margin at 15.5 percent versus 14 percent

SRF Consolidated (Q2, YoY)

  • Revenue up 48.9 percent at Rs 1,915.4 crore
  • Net profit up 47.1 percent at Rs 151.2 crore
  • Ebitda up 63.4 percent at Rs 332.7 crore
  • Margin at 17.4 percent versus 15.8 percent

Bulk Deals

  • 8K Miles Software Services: IFCI sold 14.1 lakh shares (4.61 percent) at Rs 67.89 each

Trading Tweaks

  • Vakrangee to move into ASM framework
  • DFM Foods record date for share split from Rs 10 to Rs 2
  • Mishtann Foods record date for share split from Rs 10 to Re 1
  • Laxmi Machine Works buyback starts
  • Dhanlaxmi Bank price band revised to 10 percent
  • Bombay Dyeing & Manufacturing Company price band revised to 5 percent
  • Texmo Pipes and Products price band revised to 5 percent
  • STI India price band revised to 5 percent

Who’s Meeting Whom

  • Shriram Transport Finance to meet Skale Investment on Nov. 2

Money Market Update

Rupee closed at 73.45/$ on Thursday from 73.96/$ on Wednesday.

Also Read: India Central Bank Spat Latest Flashpoint as Easy Money Era Ends

F&O Cues

  • Nifty October Futures ended at 10413, premium of 33 points.
  • Nifty November open interest down 0.2 percent; Nifty Bank November open interest up 7.1 percent.
  • Maximum open interest for November series at 10,700 Call (open interest at 24.7 lakh shares).
  • Maximum open interest for November series at 10,000 Put (open interest at 50.8 lakh shares).

Put-Call Ratio

  • Nifty PCR at 1.53 from 1.56.
  • Nifty Bank PCR at 1.42 from 1.27.

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