All You Need To Know Going Into Trade On August 3

Asian stocks started Thursday's trading session lower after surging to the highest level in almost 10 years, with investors assessing the strength of company earnings before American labor-market data provides the latest clues on the health of global growth.

The Singapore traded SGX Nifty, an early indicator of NSE Nifty 50 index's performance in India, fell 0.31 percent to 10,056 as of 6:44 a.m.

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

Global Cues

U.S.

• Most U.S. stocks fell, though Apple Inc. dragged major indexes higher, propelling the Dow Jones Industrial Average past 22,000 for the first time.
• The Bloomberg Dollar Spot Index was little changed after slipping 0.1 percent on Wednesday.
• U.S. jobs data on Friday will probably show employers added about 180,000 workers in July.

#BQMarketsNow | Dow scales 22,000 mark; Oil nears $50 per barrel mark.https://t.co/xOWsK30CKM pic.twitter.com/KsMww4qQGd

August 3, 2017

Asia

• Stocks from Japan to Australia retreated, dragging down the MSCI Asia Pacific Index from its highest since December 2007
• The early indicator SGX Nifty dropped 0.33 percent to 10,081.

Commodities Cues

• Brent crude trades lower by 0.31 percent at $52.20 a barrel
• WTI crude trades weaker by 0.28 percent at $49.45
• Inventories of U.S. crude fell by roughly 1.5 million barrels in the week ended July 28, below expectations of a draw of about 2.9 million barrels. It was fifth-straight week of falling crude inventories
• Spot Gold down 0.35 percent at $1262.18 an ounce
• ICE Sugar ended lower for a second straight session at 14.79 U.S. cents a pound, down 0.60 percent

Shanghai Exchange

• Steel reverses the trend after rising for fourth consecutive session; down about 0.11 percent
• Aluminium trades higher by 0.72 percent
• Zinc bounced after losing for five trading session; up over 1.50 percent
• Copper trades up 0.20 percent
• Rubber trades lower for second day; down 0.24 percent

Nifty Results Today

• Indian Oil Company Ltd.

Other Results Today

• Titan
• Bajaj Electricals
• BSE
• CEAT
• Colgate
• Cummins
• ICRA
• PNB Housing
• Ujjivan
• Greaves Cotton
• Gujarat Alkalies And Chemicals
• HCC
• Jindal Saw
• Jk Lakshmi Cement
• Jyothy Laboratories
• Majesco
• Ramco Systems
• Sequent Scientific
• Tejas Networks
• Ramco Cements
• VIP Industries
• Welspun Corp

Results Announced

Bata (Q1FY18, YoY)

• Profit up 19 percent at Rs 60 crore
• Revenue up 10 percent at Rs 743 crore
• EBITDA up 12 percent at Rs 96 crore
• EBITDA margin expanded to 13 percent from 12.9 percent

Reliance Infrastructure (Q1FY18, YoY)

• Profit down 24 percent at Rs 334 crore
• Revenue up 8 percent at Rs 7559 crore
• EBITDA up 35.5 percent at Rs 2014 crore
• EBITDA margin expanded to 26.6 percent from 21.2 percent

Sical Logistics (Q1FY18, YoY)

• Profit up 69 percent at Rs 11 crore vs. Rs 6.5 crore
• Revenue up 14.5 percent at Rs 245 crore vs. Rs 214 crore
• EBITDA up 43 percent at Rs 45 crore
• EBITDA margin expanded to 18.4 percent

Transport Corporation of India (Q1FY18, YoY)

• Profit up 20 percent at Rs 18 crore
• Revenue up 16 percent at Rs 497 crore
• EBITDA up 23 percent at Rs 46 crore
• EBITDA margin expanded to 9.3 percent from 8.8 percent

TBZ (Q1FY18, YoY)

• Profit up 164 percent at Rs 5.8 crore
• Revenue up 38 percent at Rs 448 crore
• EBITDA up 8.6 percent at Rs 19 crore
• EBITDA margin narrowed to 4.3 percent from 5.4 percent

VST Industries (Q1FY18, YoY)

• Profit down 9 percent at Rs 39.8 crore
• Revenue down 4 percent at Rs 562 crore
• EBITDA down 2 percent at Rs 65 crore
• EBITDA margin contracted to 31.3 percent from 26.8 percent

Narayana Hrudayalaya (Q1FY18, YoY)

• Profit down 36.6 percent at Rs 10.9 crore
• Revenue up 15.3 percent at Rs 521 crore
• EBITDA down 5.7 percent at Rs 50 crore
• EBITDA margin narrowed to 9.6 percent from 11.7 percent

Ingersoll Rand (Q1FY18, YoY)

• Profit down 36.6 percent at Rs 10.9 crore
• Revenue down 1.2 percent at Rs 160 crore
• EBITDA down 6.1 percent at Rs 10.8 crore vs. Rs 11.5 crore
• EBITDA margin narrowed to 7.2 percent from 7.6 percent

HEG (Q1FY18, YoY)

• Net Loss of Rs 8 crore
• Revenue up 23 percent at Rs 214 crore
• EBITDA up 700 percent at Rs 24 crore
• EBITDA margin expanded to 11.7 percent from 1.8 percent

Entertainment Network (Q1FY18, YoY)

• Profit down 72.4 percent at Rs 4.6 crore
• Revenue down 6 percent at Rs 104.35 crore
• EBITDA up 43.6 percent at Rs 16.6 crore
• EBITDA margin narrowed to 15.9 percent from 26.6 percent

Stocks To Watch

• VST Tilers July tractor sales up 11 percent and Power Tiller sales down 21 percent
• Gail commences 100 percent construction work in Kerala stretch of Rs 3,262 crore KKMBPL project
• Majesco transfers its Pune property to AP Estates LLP for Rs 15.55 crore
• Sical Logistics to provide corporate guarantee of Rs 40 crore to Kamarajar Port
• Bajaj Finance to pick up 11 percent stake in Mobikwik for Rs 225 crore

Bulk Deals

Shilpi Cables: Global Focus Fund sold 7.72 lakh shares (0.7 percent) at Rs 33.04 each. As per June filing, its holding stood at 1 crore shares (9.11 percent).

Primary Market Action

• Cochin Shipyard IPO subscribed overall 3.16 times at end of day 2
• SIS IPO subscribed overall 7 times at end of final day

Top Performers This Year

• Avanti Feeds: Up 252%
• Indiabulls Real Estate: Up 231.8%
• Jaiprakash Associates: Up 222.3%
• Future Retail: Up 211.5%
• Minda Industries: Up 161.4%

Worst Performers This Year

• Shilpi Cables: Down 83.3%
• Videocon Industries: Down 78.3%
• Nitin Fire: Down 74%
• JMT Auto: Down 73%
• Religare Enterprises: Down 59%

Index Trends

F&O Cues

• Nifty futures premium shrinks to 19 points from 24 points earlier
• Minor open interest addition seen on both Nifty and Bank Nifty
• Nifty range for August series in terms of open interest concentration between 10,000 to 10,500
• Maximum open interest on Put side at 10,000 strike, open interest at 48.3 lakh shares
• Maximum open interest on Call side at 10,500 strike; open interest at 36.4 lakh shares
• Put strikes 9,900 and 10,000 see unwinding and 9,800 sees open interest addition
• Active Call strikes 10,100, 10,200 and 10,300 see open interest addition

F&O Ban

• In Ban: Indiabulls Real Estate, JSW Energy, JPAssociates, Wockhardt
• New in ban: Wockhardt
• Out of ban: Nil
• Alert: No fresh positions can be taken stocks under F&O ban

PCR

• Nifty PCR moves to 1.26 from 1.31
• Nifty Bank PCR moves to 0.84 from 0.97
• Alert: A higher PCR means a bullish trend

Stocks Seeing High OI Change

• Cummins sees open interest addition of 47 percent on long side
• Infibeam sees open interest addition of 41 percent on short side
• Ceat sees open interest addition of 39 percent on long side
• Godrej Consumer sees open interest addition of 36 percent on short side
• Titan sees open interest addition of 17 percent on long side
• Balrampur Chini sees open interest addition of 16 percent on the long side

Fund Flows

• FIIs in cash market: Bought Rs 474 crore (NSE Provisional)
• DIIs in cash market: Sold Rs 233 crore (NSE Actual)
• FIIs in cash market: Sold Rs 920 crore (Tuesday; data from NSDL)
• FIIs in F&O market: Sold Rs 1,551 crore (NSE Actual)
• FIIs in cash market so far this month: Sold Rs 446 crore
• DIIs in cash market so far this month: Bought Rs 1,158 crore

Brokerage Radar

On Lupin

Credit Suisse

• Maintains Underperform; cuts target to Rs 920 from Rs 1,020 earlier
• Q1 weak with disappointment in U.S. sales and India impacted by GST
• Lupin's share is down from 70 percent to 50 percent now in Glumetza

Citi

• Maintain Buy, Target Rs 1,350
• Believe there is downside risk to management guidance of 26-28 percent EBITDA margin in FY18

JPMorgan

• Earnings miss on higher erosion in the U.S. reflect in lower gross margins
• Assume margins of 24 percent versus management guidance of 26-28 percent

Nomura On Bata

• Results ahead of estimates at the EBITDA and PAT levels
• Same store sales growth for the quarter stood at an impressive 10 percent

Morgan Stanley On ICICI Bank

• Corporate impaired loans, per U.S. GAAP, were stable at 27 percent
• U.S. GAAP higher than 17 percent impaired loans as per Indian GAAP

JPMorgan On Godrej Properties

• Pre-sales and free cash flow both deliver a significant beat
• NCR is a significant development opportunity waiting to be capitalised

On Punjab National Bank

Credit Suisse

• Growth remains weak while credit cost to remain high
• Cut EPS by 9 percent on slower growth and building dilution

Deutsche Bank

• Believe credit costs have peaked in FY17 at 2.9 percent
• Expect RoEs at 5-8 percent over next two years

IDFC

• Profitability remains weak, stress loans among highest in sector
• Management guided to RoA remaining low at 0.25 percent for FY18

JPMorgan

• Maintain Underweight, target Rs 130
• Expect growth to remain weak at 5 percent in the medium term

On Voltas

Citi

• Raise target to Rs 614 from Rs 552; Maintain Buy
• Raise PE multiple to 30x from earlier 27x

Goldman Sachs

• Raise target to Rs 520 from Rs 480, Maintain Neutral
• Increase FY18-20 EPS by 4-5 percent

Jefferies

• Maintain Buy; target Rs 600

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