All You Need To Know Going Into Trade On April 5

Japanese shares and American equity futures edged up alongside Treasury yields following remarks out of both the U.S. and China that progress is being made in trade talks. Asian trading volumes were muted, with China and Hong Kong shut for a holiday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.2 percent to 11,708 as of 7:30 a.m.

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BQ Live

Here's a quick look at all that could influence equities today.

U.S Market Check

• U.S. stocks rose for a sixth consecutive day and the dollar strengthened as investors remained bullish about U.S.-China trade negotiations and key jobs data tomorrow in Washington.
• The yield on 10-year Treasuries was steady at 2.52 percent.

#BQMarketWrap | U.S. stock futures, Treasury yields rise on trade.

Read: https://t.co/QSFegUTKFh pic.twitter.com/ERtjbkRSoW

Asian Cues

• Japan's Topix index rose 0.2 percent.
• Australia's S&P/ASX 200 Index slid 0.7 percent.
• South Korea's Kospi index rose 0.1 percent.
• Futures of S&P 500 Index rose 0.2 percent.

Commodity Cues

• Brent crude fell 0.36 percent to $69.15 per barrel.
• West Texas Intermediate crude was at $62.03 a barrel.
• Gold was little changed at $1,292.62 an ounce.

London Metal Exchange

• Aluminium ended 0.05 percent lower.
• Nickel halted a four-day rally, ended 1.27 percent lower.
• Copper resumed declines after a one-day rally, ended 0.63 percent lower.
• Lead ended 0.89 percent lower.
• Tin ended lower for the second day, down 0.47 percent.
• Zinc ended 1.13 percent lower.

Key Data/Events To Watch

• The monthly U.S. jobs report on Friday is projected to show non-farm payrolls up 175,000 in March, versus the 186,000 average over the prior three months, after recent readings whipsawed analysts.

Indian ADRs

Stocks To Watch

• Titan: Quarterly Update: Company sales increased 21 percent, while Jewellery segment rose 22 percent for 2018-19, in line with expectations. The company said targeting growth of 20 percent for 2019-20, despite muted outlook for economy. Company invested Rs 100 crore in arm CaratLane, thereby increasing its stake from 66 percent to 70 percent.
• Jet Airways (India) Ltd.'s lenders said they would invite bids for selling stake in the airline on April 6 as part of a time-bound resolution plan. The consortium of lenders, led by State Bank of India, took stock of the current situation at cash-strapped Jet Airways and decided on the timeline for the stake sale. The bids would be invited on April 6 and the last date for submission would be April 9. Besides, Civil Aviation secretary told Bloomberg that the company has 26 planes flying now.
• Zensar Technologies started operation in Mexico. The company said that operations will focus on supporting the company's customers in North America and the local region.
• Cipla received Establishment Inspection Report on its Goa manufacturing plant by the U.S. FDA. The inspection took place between Jan. 21-28.
• Mercator: CARE Ratings revised ratings for long term facilities and short term banking facilities to ‘D'. The rating agency said that there had been ongoing delay in servicing of facilities and term loans, which was on since September 2018. The company said that it initiated discussion with lenders for resolution of debt, and the delay in servicing of debt was on account of cash flow mismatch.
• VIP Industries said that there was a fire at its UP warehouse on April 3. The company said there was no human loss and the assets that damaged by the fire were adequately covered by insurance.
• Godrej Properties' new residential project in Navi Mumbai with almost 0.5 million square feet of saleable area. The company also increased its stake in NCR based Wonder Space Properties from 25.1 percent to 96.03 percent, this target company will become the subsidiary of Godrej Properties with effect from April 4.
• Bandhan Bank-Gruh Finance deal: Both companies filed their respective application for the scheme of amalgamation to the NCLT.
• Rallis India said that the Pollution Control Board has revoked it closure order of the company's Gujarat unit. On March 19 the closure order was received by the company.
• Mold-Tek Packaging: Management said it will reduce the operating capacity of its UAE-based (RAK) unit and has started further withdrawal of equipment from this unit to other existing plants to feed the requirements of domestic demand in India.
• Hindustan Copper said that its copper production of 41.22 lakh tonnes is 12 percent higher than the last fiscal year 2019.
• VST Tillers Tractors March Sales: Power tiller sales were down 32 percent at 3,826 units. Tractors sales were down 45 percent at 989 units.

Offerings

• Metropolis Healthcare IPO gets 47 percent demand on 2nd day sale, offer closes today.
• Polycab India IPO at Rs 533-538 per share open for sale. Offer closes on April 9

Earnings Reaction To Watch

GM Breweries (Q4, YoY)

• Revenue up 4.5 percent to Rs 117.37 crore.
• Net profit down 1.5 percent to Rs 24.3 crore.
• EBITDA down 16.1 percent to Rs 27.91 crore.
• Margin at 23.8 percent versus 29.6 percent.
• Declares dividend of Rs 3 per share.
• RM as percent of sales at 69 percent versus 61 percent.

Bulk Deals

• Varroc Engineering: Smaller World Fund sold 17.75 lakh shares or 1.32 percent equity at Rs 575 each.
• Justdial: Morgan Stanley France SAS sold 3.78 lakh shares or 0.58 percent equity at Rs 579.55 each.
• Hinduja Global Solutions: Fidelity Funds acquired 3.92 lakh shares or 1.88 percent equity at Rs 625 each.

Wipro

• LIC acquired 3.86 crore shares or 0.65 percent equity at Rs 258.9 each.
• Custodian of Enemy Property for India sold 4.44cr shares or 0.75 percent equity at Rs 258.9 each.

Redington India

• Marina IV LP acquired 45.57 lakh shares or 1.17 percent equity at Rs 97 each.
• Standard Chartered PE Mauritius sold 45.57 lakh shares or 1.17 percent equity at Rs 97 each.

Pledge Share Details

• Adani Enterprises promoter Gautam Adani revoked pledge of 4.3 lakh shares on April 2.
• Future Enterprises promoter group Future Corporate Services released pledge of 12.14 lakh shares on April 1.
• Emami promoter group Bhanu Viniyog created pledge of 1.05 crore shares and revoked pledge of 43.21 lakh shares from March 29 to April 2 and promoter group Bhanu Vyaapar revoked pledge of 27.63 lakh shares on April 3.
• Adani Ports & SEZ promoter group Gautam Adani revoked pledge of 5 lakh shares on April 2
• JSW Energy promoter group Danta Enterprises created a pledge of 13.75 lakh shares on April 2
• DB Corp promoter group Stitex Global revoked pledge of 3.68 lakh shares on March 30
• Bajaj Consumer Care promoter Bajaj Resources created a pledge of 37k shares on April 2

(As reported on April 4)

Trading Tweaks

Stocks Moving Into Short-Term ASM Framework

• IG Petrochemicals
• Indo Count Industries
• Matrimony.Com
• Asian Granito
• CESC Ventures
• Sadbhav Engineering
• Religare Enterprises
• Dilip Buildcon
• Arvind Fashions
• Arshiya
• Ganesha Ecosphere
• MT Educare
• Bharat Road Network
• Talwalkars Better Value Fitness

Price Band Revision

From 10 percent to 20 percent-

• Goa Carbon
• Graphite India
• HEG
• Rain Industries
• Manpasand Beverages
• Spencer's Retail
• Vakrangee
• GVK Power & Infra
• 5paisa Capital
• Dwarikesh Sugar

From 5 percent to 10 percent-

• 8K Miles Software Services
• A2Z Infra Engineering
• Aditya Birla Money
• Dhanlaxmi Bank
• GPT Infraprojects
• Gravita India
• Hotel Leela Ventures
• Indo Rama Synthetics
• Reliance Naval & Engineering
• Tata Steel BSL
• Xelpmoc Design & Tech
• Shankara Building Products

From 5 percent to 20 percent-

• Zee Media Corporation
• Thirumalai Chemicals
• Reliance Home Finance

Who's Meeting Whom

• Kalpataru Power Transmission to meet SBI Life Insurance on April 5.
• Shriram City Union Finance to meet Antique Stock Broking on April 5.

Insider Trading

• Maharashtra Seamless promoter Sudha Apparels acquired 1 lakh shares on April 3.
• Bajaj Holdings & Investment promoter Bajaj Auto acquired 2.81 lakh shares on April 2.

Money Market Update

• The Rupee on Thursday snapped its three-day winning streak to close at 69.16/$ versus Wednesday's closing of 68.42/$.

F&O Cues

• Nifty April Futures closed trading at 11680, premium of 82 points.
• Max OI for April series at 12,000 Call, OI at 24.5 lakh shares.
• Considerable OI for April series at 11,500 Put, OI at 21.4 lakh shares.
• Max OI for Apr 25 series at 11,000 Put, OI at 25.6 lakh shares.

Stocks In F&O Ban

• In Ban: Adani Power, IDBI, Jet Airways, Reliance Power

Put-Call Ratio

• Nifty PCR at 1.21 versus 1.42

Brokerage Radar

On Titan

Macquarie

• Maintained ‘Outperform' with a price target of Rs 1,186.
• Implied Jewellery segment revenue growth in March quarter is 18 percent.
• Store addition to add meaningful growth to overall segment.
• Believe 2019-20 revenue guidance of 20 percent is most important takeaway

JPMorgan

• Maintained ‘Overweight'; hiked price target to Rs 1,200 from Rs 1,125.
• In-line Q4 update; market share gain led momentum continues.
• FY20 revenue growth guidance of 20 percent encouraging.
• Expect revenue and net profit to grow at a compounded annual growth rate of 17 percent and 22 percent respectively over FY19-21.

Morgan Stanley

• Maintained ‘Overweight' with a price target of Rs 1,250.
• Broad-based growth; Strong end to 2018-19.
• Q4 – jewellery segment to report strong revenues.
• Next stock catalyst is operating margin expansion, which may be greater than market expects.

More Calls

Morgan Stanley on Odisha Cement

• Initiated ‘Equal-weight' with a price target of Rs 1,176.
• Corporate restructuring is medium term positive.
• Well positioned to deliver strong volume growth.
• Net debt to remain stable; Valuations in-line.

Macquarie on Jyothy Lab

• Initiated ‘Outperform' with a price target of Rs 250.
• Like diverse product portfolio with a presence in mainstay categories.
• Differentiated product positioning, new product launches and investments in key brands leading to market share gains.
• Expect net profit CAGR of 21 percent and 220 basis points increase in RoE in the next two years.

Haitong on HDFC Life

• Maintained ‘Buy' with a price target of Rs 515.
• Expect VNB margin expansion; Quality of EV reporting at HDFC Life is high.
• Believe slowdown in growth over the past 4 months is temporary and due to a high base.
• Think valuations are attractive, contrary to the prevailing perception that it is overvalued.

Jefferies on City Gas Distributors

• Greater than expected price hike can help in higher margins.
• Expect higher margin expansion for MGL and IGL if rupee stays near spot levels.
• CNG is still much cheaper than petrol and diesel leaving ample headroom to drive volume growth.

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