All You Need To Know Going Into Trade On August 7

Asian equities advanced after strong U.S. hiring data on Friday bolstered American stocks. The Singapore traded SGX Nifty, an early indicator of NSE Nifty 50 index's performance in India, rose 0.18 percent to 10,104 as of 6:50 a.m.

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

Global Cues

• U.S. stocks gained after hiring data from last month came in stronger than forecast, underpinning the case for tighter monetary policy.
• The Dow Jones Industrial Average rose a ninth straight day to close at a record.

#BQMarketsNow | U.S. stocks continue to surge; crude hovers near $50 per barrel.https://t.co/v3Kma732wt pic.twitter.com/8zKvW0Mq6L

August 7, 2017

Europe

• European stocks advanced, getting a push from a declining euro after data showed the U.S. created more jobs than forecast in July.
• The Stoxx Europe 600 Index rose 1 percent at the close of trading.
• FTSE up 0.49 percent to 7511.71; CAC up 1.42 percent to 5,203.44; DAX up over 1 percent to 12,297.

Asian Cues

• Japan's Topix index rose 0.5 percent, while the S&P/ASX 200 Index in Sydney was up 0.8 percent. South Korea's Kospi index gained 0.3 percent. Contracts on Hong Kong's Hang Seng Index were slightly lower.

Commodity Cues

• West Texas Intermediate crude was little changed at $49.57 a barrel.
• OPEC meeting to examine why some not fully implementing reductions
• U.S. drillers targeting crude trim rig count by one last week

• Gold too was little changed at $1,258.22 an ounce, after losing 0.8 percent Friday.
• ICE Sugar ended lower for a fourth straight session at 14.14 U.S. cents a pound, down 1.19 percent

Shanghai Exchange

• Steel trades higher for seventh consecutive session; up 1.87 percent
• Aluminium trades higher; up by 0.47 percent
• Zinc trades higher for third straight session; up by 0.43 percent
• Copper trades up for third consecutive session; marginally up by 0.14 percent
• Rubber trades higher for third day; up close to 1 percent

Indian ADRs

Nifty Results Today

• Tata Steel

Other Results Today

• Amara Raja
• Britannia
• Caplin Point
• Dr Lal Path
• Natco Pharma
• Nilkamal
• Polaris Consulting
• Whirlpool
• Bombay Wire Ropes
• Dhunseri Petrochem
• Eveready Industries
• Future Enterprises
• Global Offshore
• Goodricke Group
• Jindal Stainless (Hisar)
• Lakshmi Machine Works
• Lloyds Metals
• Merck
• Saksoft
• Welspun India

Earnings Reaction To Watch

Berger Paints (Consolidated) (Q1FY18, YoY)

• Revenue up 9.4 percent at Rs 1,363.5 crore
• EBITDA down 5 percent at Rs 185 crore
• Margin contracted to 14.8 percent from 17.4 percent
• Profit declines 5.8 percent to Rs 113 crore

Apollo Tyres (Q1FY18, YoY)

• Revenue slips 0.8 percent to Rs 3,537 crore
• EBITDA falls 49 percent at Rs 273 crore
• Margin contracts to 8.3 percent from 16.3 percent
• Profit falls 72 percent to Rs 88.3 crore

Arvind (Q1FY18, YoY)

• Revenue up 17.6 percent at Rs 2,475 crore
• EBITDA down 15.6 percent at Rs 206 crore
• Margin at 8.3 percent from 11.6 percent
• Profit down 22 percent at Rs 57 crore

Fortis Healthcare (Q1FY18, YoY)

• Revenue up 3 percent at Rs 1,156.6 crore
• EBITDA up 37 percent at Rs 86 crore
• Margin expanded to 7.4 percent from 5.6 percent
• Profit down 11 percent at Rs 22.6 crore

Dalmia Bharat (Q1FY18, YoY)

• Net profit up 67.9 percent at Rs 199.5 crore
• Revenue up 14.1 percent at Rs 2306 crore
• EBITDA up 9.5 percent at Rs 557 crore
• Margins at contracted to 27 percent from 28.6 percent

Relaxo Footwear (Q1FY18, YoY)

• Net profit up 1.6 percent at Rs 37.5 crore
• Revenue up 19.8 percent at Rs 490.4 crore
• EBITDA up 1 percent at Rs 70.9 crore
• Margins contracted to 14.7 percent from 17.3 percent

Jaiprakash Associates (Q1FY18, YoY)

• Net profit at Rs 765 crore
• Revenue up 42.3 percent at Rs 2,585.4 crore
• EBITDA up 267 percent at Rs 759.4 crore
• Margins at 30.5 percent
• Exceptional gain of Rs 606 crore

Repco Home Finance (Q1FY18, YoY)

• Revenue up 7.6 percent at Rs 265.7 crore
• Profit up 14 percent at RS 45 crore
• NII up 12.1 percent at Rs 103 crore
• Provisions up 44 percent at Rs 16.7 crore from Rs 11.6 crore (QoQ)

Alphageo (Q1FY18, YoY)

• Revenue up 121.2 percent at Rs 115 crore
• EBITDA up 118.5 percent at Rs 33 crore
• Margin at 28.7 percent from 29 percent
• Profit up 94 percent at Rs 15.5 crore

GNFC (Q1FY18, YoY)

• Revenue up 11.2 percent at Rs 1054.6 crore
• EBITDA up 18.4 percent at Rs 176.8 crore
• Margin at 18.1 percent from 17 percent
• Profit up 31.5 percent at Rs 66.55 crore

Chennai Petroleum (Q1FY18, QoQ)

• Revenue up 1.7 percent at Rs 9649.4 crore
• EBITDA down 38 percent at Rs 195.45 crore
• Margin contracted to 2.9 percent from 4.6 percent
• Profit down 80 percent at Rs 33.5 crore

GSFC (Q1FY18, YoY)

• Revenue up 8.7 percent at Rs 1176 crore
• EBITDA down 17 percent at Rs 81 crore
• Margin contracted to 7.1 percent from 9.5 percent
• Profit down 12 percent at Rs 40.5 crore

Rossell India (Q1FY18, YoY)

• Revenue up 38 percent at Rs 31.4 crore
• Net loss of Rs 4.6 crore from Net Loss of RS 8.6 crore

Indian Hotels (Q1FY18, YoY)

• Revenue up 10.4 percent at Rs 524 crore
• EBITDA up 44 percent to Rs 75.5 crore from Rs 52.5 crore
• Margin expanded to 14.4 percent from 11.1 percent
• Net profit of Rs 6.9 crore

Trigyn Technologies (Q1FY18, QoQ)

• Revenue down 2.4 percent at Rs 164 crore
• EBITDA down 0.5 percent at Rs 15.4 crore
• Margin expanded to 9.4 percent from 9.2 percent
• Profit up 1.1 percent to Rs 9.3 crore from Rs 9.2 crore

Shriram Pistons & Ring Ltd (Q1FY18, YoY)

• Revenue up 9.1 percent at Rs 440 crore
• Net profit down 8.9 percent to Rs 29.6 crore
• EBITDA down 8.7 percent at Rs 63 crore
• Margin narrowed to 15.9 percent from 18.9 percent

SPARC (Q1FY18, YoY)

• Revenue up 9 percent to Rs 23.3 crore from Rs 21.4 crore
• Net loss at Rs 78.8 crore from Rs 36.1 crore loss

Syndicate Bank (Q1FY18, YoY)

• NII up 8.2 percent at Rs 1,600.5 crore
• Net loss at Rs 263 crore from 79 crore profit
• Gross NPA at 9.96 percent from 8.50 percent (QoQ)
• Gross NPA up 14.6 percent at Rs 20184 crore (QoQ)
• Net NPA at 6.27 percent (QoQ)
• Net NPA up 17.1 percent at Rs 12188 crore (QoQ)
• Provisions up 5 percent at Rs 1334 crore (QoQ)

OCL (Q1FY18, YoY)

• Net profit up 10.8 percent to Rs 117 crore
• Revenue up 15.7 percent at Rs 929 crore
• EBITDA up 11.7 percent at Rs 201.4 crore
• Margins at 24.3 percent from 25.4 percent

FDC (Q1FY18, YoY)

• Net profit down 40.3 percent at Rs 29.2 crore
• Revenue down 9.9 percent at Rs 245 crore
• EBITDA down 47.6 percent at Rs 36 crore
• Margins at 15.1 percent from 25.7 percent

Vardhman Acrylics (Q1FY18, YoY)

• Net profit down 36.5 percent at Rs 9.7 crore
• Revenue down 34 percent at Rs 74 crore
• EBITDA down 43.3 percent at Rs 13.7 crore
• Margins at 18.7 percent from 21.8 percent

Andhra Cements (Q1FY18, YoY)

• Net loss at Rs 25.4 crore
• Revenue up 26 percent at Rs 126 crore
• EBITDA up 2.3 percent at Rs 13.5 crore
• Margins narrowed to 12.4 percent from 15.3 percent

Stocks To Watch

• ONGC buys 80 percent stake and operatorship rights in one of the blocks of GSPC for Rs 7,783 crore
• Fortis Healthcare board approves to raise Rs 5,000 crore subject to shareholders and regulatory approval
• Bank of Baroda introduces two interest rate structures for saving accounts
• Jaypee Infratech says NCLT reserves order in Insolvency case against the company
• Music Broadcast to challenge high court order staying the demerger of the radio business of SPML in Supreme Court
• Maruti Suzuki says total production up 14.8 percent at 1,56,987 units in July 2017 versus 1,36,761 in July 2016
• Autoline Industries sells its Pune property for the purpose of reducing its overall debt
• Bank of India allots 11.23 crore shares to Govt of India at Rs 133.51 each
• Dena Bank allots 20.63 crore shares to government, LIC on preferential basis
• Atlas Cycles approves 1:2 stock split
• JSW may partner Piramal Bain fund to buy Bhushan Steel (Economic Times)
• Jubilant Lifesciences gets ANDA approval for spasticity drug tizanidine hydrochloride
• Adani Transmission acquires two SPVs from Rajasthan transco
• Sintex Plastic to be listed under T group with effect from August 8
• Cess on sports utility and high end cars likely to rise from 15 percent to 25 percent
• Eros and Apple explore $1 billion content sale (Economic Times)

Bulk Deals

• Eveready Industries: Nomura India Investment Fund sold 8.56 lakh shares or 1.2 percent stake at Rs 303 each.
• Unitech: Dilipkumar Lakhi bought 1.41 crore shares or 0.5 percent stake at Rs 7.94 each

Gulf Oil:

• Promoter Gulf Oil International (Mauritius) bought 5 lakh shares or 1 percent stake at Rs 808.15 each
• Dilipkumar Lakhi sold 5 lakh shares or 1 percent stake at Rs 808.15 each
• Dilipkumar Lakhi bought 6.5 lakh shares or 1.3 percent stake at Rs 808.13 each

Top Performers

• Rashtriya Chemicals and Fertilisers: +20.1 percent
• HPCL: +13.9 percent
• Indian Oil Corporation: +13.7 percent
• VIP Industries: +13.1 percent
• Titan Co: +12.2 percent

Worst Performers

• Jaiprakash Associates: -14.1 percent
• SML Isuzu: -12.9 percent
• HDIL: -12.7 percent
• Century Plyboards: -11.7 percent
• Reliance Communications: -11.2 percent

Index Play

F&O Cues

• Nifty futures premium moves to 42 points from 29 points earlier
• Nifty futures shed 2.9 lakh shares in open interest
• Bank Nifty sheds 1.1 lakh shares, open interest down 5 percent
• Nifty range for August series in terms of OI concentration between 10,000 to 10.500
• Maximum open interest on put side at 10,000 strike, open interest at 52 lakh shares
• Maximum open interest on call side at 10,500 strike; open interest at 38 lakh shares
• Unwinding of open interest seen on call strikes 10,100 & 10,200
• Open Interest addition seen for Put strikes 10,000 and 10,100

F&O Ban

• In ban: HDIL, IBREL, India Cements, JPA, JSW Energy, Kaveri Seed, Wockhardt
• New in ban: HDIL, IBREL
• Out of ban: Nil
• Alert: No fresh positions can be taken stocks under F&O ban

PCR

• Nifty PCR moves to 1.27 from 1.21
• Nifty Bank PCR moves to 1.07 from 0.97
• Alert: A higher PCR indicates a bullish trend

Stocks Seeing High Open Interest Change

• Titan  sees open interest addition of 29 percent on long side
• Berger Paints sees open interest addition of 20 percent on short side
• Chennai Petro sees open interest addition of 19 percent on short side
• Cummins sees open interest addition of 13 percent on short side
• Indiabulls Real Estate sees open interest addition of 17 percent on long side
• Ujjivan sees open interest addition of 13 percent on long side
• Biocon sees open interest addition of 9 percent on short side

Fund Flows

• FIIs in cash market: Sold Rs 854 crore (NSE provisional data)
• DIIs in cash market: Bought Rs 1,017 crore (NSE)
• FIIs in cash market: Bought Rs 55 crore (Thursday; data from NSDL)
• FIIs in F&O market: Bought Rs 673 crore (NSE)

Brokerage Radar

CLSA On HPCL

• Maintain Sell; target price hiked to Rs 405 from Rs 360
• GRM a big surprise in Q1FY18; EBITDA miss on high inventory loss
• Unsure about maintaining core GRM well above Singapore benchmark
• Expect competition from private players to remain strong in marketing
• Raise FY18 and FY19 EPS by 16 percent and 14 percent, respectively

JPMorgan On HPCL

• Underweight with target price of Rs 300
• JPMorgan would not buy HPCL stock based on the implied Q1FY18 GRM of $8.8 per barrel
• With higher crude prices expect some reversal of inventory losses
• Prefer IOC and BPCL given the volume growth in the refining segment

Nomura On HPCL

• Raise target to Rs 510 from Rs 427; maintain Buy
• Raise FY18-19 EPS by 3-7 percent on stronger rupee and GRMs
• With GoI surprising with more reforms, we remain bullish on all 3 OMCs

Kotak On HPCL

• Raise target to Rs 420 from Rs 380; maintain Reduce
• Normalized results ahead of estimates driven by strong ‘implied' refining and marketing margins
• Raise estimates to factor in higher global refining margins

CLSA On Mahindra & Mahindra

• Maintain Outperform; target price hiked to Rs 1,585 from Rs 1,550
• Q1FY18 results impacted by GST related one-time provisions
• Good monsoons and new launches to boost volume growth and earnings growth in FY18-19
• Expect competitive pressures in the SUV segment and risk of cyclical slowdown in tractors by FY20
• EPS to grow at 12 percent CAGR over FY17-20.

Credit Suisse On Mahindra & Mahindra

• Maintain Outperform; target price hiked to Rs 1,680 from Rs 1,530
• Q1FY18 top line largely in line with expectation and operating margins tad better
• New launches to help volume growth in H2FY18
• Lower 2-wheeler loss guidance is encouraging

JPMorgan On Mahindra & Mahindra

• Overweight with target price of Rs 1,600
• Earnings hit by GST transition
• Rural outlook positive and offsets concerns over market share loss in utility vehicles
• Outlook of 10-12 percent volume growth in FY18
• Losses in electronic vehicles space to go up with increasing investments

CLSA on Dabur

• Rating upgraded to Outperform from Underperform; Target price hiked to Rs 350 from Rs 290
• Volume decline was in line, but better compared to Emami and Marico
• Expect gradual recovery in remaining FY18
• Volumes may not fully recover, but price hikes would to help
• Management confident on maintaining margins and guides for volume growth of 5-10 percent for FY18

Nomura on Dabur

• Raise target to Rs 340 from Rs 331, Maintain Outperform
• GST de-stocking and CSD led weakness in domestic volume
• Margin decline was on account of higher promotions in foods
• Cut FY18 and FY19 earnings by approximately 6 percent on account of lower volume assumptions

Credit Suisse on Indian Market

• June ended FII ownership of BSE500 at near all-time highs of 21.2 percent
• Domestic MF holding increased to 5.6 percent, another record high
• Government ownership share fell to an all-time low of 10.3 percent due to underperformance of PSU companies
• Both PE multiples for the BSE500 and overall market flows have strong global linkages
• Cash pile and inflows for domestic mutual funds provide a buffer to the downside

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