All You Need To Know Going Into Trade On Feb. 5

Asian equities fell and U.S. stock futures headed lower, extending the biggest selloff for global stocks in two years as investors adjusted to a surge in global bond yields.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.8 percent to 10,623 as of 7:00 a.m.

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DayBreak

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

Global Cues

• The Dow Jones Industrial Average tumbled 666 points in the biggest plunge since June 2016, as the worsening bond rout stirred angst that the Federal Reserve will accelerate its rate-hike schedule.
• Solid jobs data that underscored the strength of the economy sent bond bulls scurrying and rattled equity investors who haven't seen a week this bad in two years.
• The 10-year Treasury yield popped above 2.85 percent for the first time since January 2014.

Europe Check

• The biggest weekly selloff since the U.S. presidential election has erased European stocks' gains for 2018.
• In a rout prompted by concern about rising government bond yields, Stoxx Europe has erased an annual gain that had reached 3.5 percent just over a week ago.
• Stocks are down for a fifth day, following their best start to a year since 2015.

Asian Cues

• Japan's Topix index declined 1.9 percent and the Nikkei 225 Stock Average sank 2.2 percent.
• South Korea's Kospi index fell 1.5 percent.
• Australia's S&P/ASX 200 Index dropped 1.3 percent and New Zealand's S&P/NZX 50 Index sank 1.7 percent.
• Contracts on Hong Kong's Hang Seng Index declined 1.3 percent.
• The MSCI Asia-Pacific Index fell 1 percent.

Here are some of the other key events scheduled for this week:

• Monetary policy decisions are due in Australia, Russia, India, Brazil, Poland, Romania, the U.K., New Zealand, Serbia, Peru, and the Philippines.
• Earnings season continues with reports from Bristol-Myers Squibb, Ryanair, Toyota Motor Corp., BNP Paribas, BP, General Motors, Walt Disney, SoftBank, Sanofi, Philip Morris, Total, Tesla, Rio Tinto, L'Oreal and Twitter.
• Dallas Fed President Robert Kaplan and New York Fed President William Dudley are among policy officials due to speak in New York.

Commodity Cues

• Brent trades lower at $67.9 per barrel; down 1 percent.
• WTI trades lower at $64.9 per barrel; down 0.9 percent.
• Spot gold trades steady at $1,333 an ounce.
• Sugar ended higher for second day at 13.6 cents per pound, up 1.9 percent.

Shanghai Exchange

• Steel trades lower; down 0.6 percent.
• Aluminium trades higher for second day; up 0.2 percent.
• Zinc continue to trades lower, albeit marginally.
• Copper snaps two-day winning streak; up 0.4 percent.
• Rubber trades lower for fifth day; down 0.2 percent.

Indian ADRs

Nifty Earnings To Watch

• Bosch
• Tata Motors

Other Earnings To Watch

• Cochin Shipyard
• Colgate Palmolive
• ENIL
• Eveready Industries
• Greaves Cotton
• Hudco
• IFCI
• Timken India
• Ujjivan Financial Services
• Westlife Development

Earnings Reaction To Watch

3M India Q3 (YoY)

• Revenue up 12 percent at Rs 646 crore.
• Net profit up 119 percent at Rs 92 crore.
• Ebitda up 94 percent at Rs 126 crore.
• Margin at 19.5 percent versus 11.3 percent.

Mirza International Q3 (YoY)

• Revenue up 11 percent at Rs 254 crore.
• Net profit up 21 percent at Rs 20.9 crore.
• Ebitda up 14 percent at Rs 45.6 crore.
• Margin at 18 percent versus 17.5 percent.

United Breweries Q3 (YoY)

• Revenue up 17 percent at Rs 1,197 crore.
• Net profit down 3 percent at Rs 47 crore.
• Ebitda up 19 percent at Rs 152.5 crore.
• Margin at 12.7 percent versus 12.5 percent.

Tata Global Beverages Q3 (YoY)

• Revenue down 0.6 percent at Rs 1,730 crore.
• Net profit up 31 percent at Rs 168 crore.
• Ebitda up 29 percent at Rs 234.5 crore.
• Margin at 13.6 percent versus 10.5 percent.

Bajaj Holdings & Investment Q3 (YoY)

• Revenue up 15 percent at Rs 318 crore.
• Net profit up 41 percent at Rs 914 crore.

Glaxosmithkline Pharmaceuticals Q3 (YoY)

• Revenue flat at Rs 704 crore.
• Net profit up 70 percent at Rs 90 crore.
• Ebitda up 172 percent at Rs 141.5 crore.
• Margin at 20.1 percent versus 7.4 percent.

Thomas Cook Q3 (YoY)

• Revenue up 51 percent at Rs 3,005 crore.
• Net profit of Rs 10 crore versus net loss of Rs 7.7 crore.
• Ebitda up 124 percent at Rs 120 crore.
• Margin at 4 percent versus 2.7 percent.

Hi-Tech Gears Q3 (YoY)

• Revenues up 33 percent at Rs 124 crore.
• Net profit up 124 percent at Rs 7.4 crore.
• Ebitda up 78 percent at Rs 16 crore.
• Margin at 12.9 percent versus 9.6 percent.

Aegis Logistics Q3 (YoY)

• Revenue up 15.6 percent at Rs 1,442 crore.
• Net profit up 44.6 percent at Rs 53.5 crore.
• Ebitda up 21 percent at Rs 72 crore.
• Margin at 5 percent versus 4.8 percent.

IEX Q3 (YoY)

• Revenue up 30 percent at Rs 65 crore.
• Net profit up 24 percent at Rs 36 crore.
• Ebitda up 43 percent at Rs 53 crore.
• Margin at 81.5 percent versus 74 percent.

Mangalam Organics Q3 (YoY)

• Revenue up 95 percent at Rs 78 crore.
• Net profit up 125 percent at Rs 3.6 crore.
• Ebitda up 113 percent at Rs 6.4 crore.
• Margin at 8.2 percent versus 7.5 percent.

CL Educate Q3 (YoY)

• Revenue up 34 percent at Rs 65 crore.
• Net loss of Rs 0.5 crore versus net loss of Rs 1.3 crore.
• Ebitda loss at Rs 1 crore versus Ebitda loss at Rs 2.5 crore.
• Margin at -1.5 percent versus -5.2 percent.

Tata Metaliks Q3 (YoY)

• Revenues up 63 percent at Rs 490 crore.
• Net profit up 105 percent at Rs 40 crore.
• Ebitda up 69 percent at Rs 72 crore.
• Margin at 14.7 percent versus 14.2 percent.

RPG Life Sciences Q3 (YoY)

• Revenue up 45 percent at Rs 95.7 crore.
• Net profit up four times at Rs 5.5 crore.
• Ebitda up 127.7 percent at Rs 12 crore.
• Margin at 12.5 percent versus 8 percent.

Thyrocare Technologies Q3 (YoY)

• Revenue up 19.2 percent at Rs 83.9 crore.
• Net profit up 134 percent at Rs 21.5 crore.
• Ebitda up 34.7 percent at Rs 35.4 crore.
• Margin at 42.2 percent versus 37.3 percent.
• Exceptional loss of Rs 6.8 crore in base quarter.

Aarti Industries Q3FY18 (YoY)

• Revenue up 28.6 percent at Rs 990.2 crore.
• Net profit up 22.1 percent at Rs 90.2 crore.
• Ebitda up 18.3 percent at Rs 177.8 crore.
• Margin at 17.96 percent versus 19.50 percent.

Lumax Industries Q3 (YoY)

• Revenue up 25.5 percent at Rs 370.8 crore.
• Net profit up 9.1 percent at Rs 18.0 crore.
• Ebitda up 29.8 percent at Rs 32.9 crore.
• Margin at 8.9 percent versus 8.6 percent.

Relaxo Footwears Q3 (YoY)

• Revenue up 24.9 percent at Rs 457.5 crore.
• Net profit up 56.8 percent at Rs 38.18 crore.
• Ebitda up 34.8 percent at Rs 71.86 crore.
• Margin at 15.7 percent versus 14.5 percent.

Selan Exploration Q3 (YoY)

• Revenue up 50.2 percent at Rs 21.22 crore.
• Net profit up 166.8 percent at Rs 6.6 crore.
• Ebitda up 314 percent at Rs 8.9 crore.
• Margin at 41.9 percent versus 15.2 percent.

Accelya Kale Q3 (YoY)

• Revenue up 4.5 percent at Rs 92 crore.
• Net profit down 3 percent at Rs 22.3 crore.
• Ebitda up 2 percent at Rs 35.6 crore.
• Margin at 38.7 percent versus 39.8 percent.

Gujarat Gas Q3 (QoQ)

• Revenue up 13 percent at Rs 1571 crore.
• Net profit down 1.6 percent at Rs 60 crore.
• Ebitda flat at Rs 200 crore.
• Margin at 12.7 percent versus 14.5 percent.

Sical Logistics Q3 (YoY)

• Revenue up 33 percent at Rs 329 crore.
• Net profit down 40 pecent at Rs 6 crore.
• Ebitda up 11 percent at Rs 43 crore.
• Margin at 13.1 percent versus 15.6 percent.

Pokarna Q3 (YoY)

• Revenue down 1 percent at Rs 88 crore.
• Net profit down 21 percent at Rs 13.6 crore.
• Ebitda down 6 percent at Rs 30 crore.
• Margin at 34.1 percent versus 36 percent.

Inox Wind Q3 (YoY)

• Revenue down 92 percent at Rs 91 crore.
• Net loss of Rs 46 crore versus net profit of Rs 107.5 crore.
• Ebitda loss at Rs 18 crore versus Ebitda profit of Rs 185 crore.
• Margin at -19.8 percent versus 15.9 percent.

Jindal Drilling Q3 (YoY)

• Revenue down 67 percent at Rs 36 crore.
• Net loss of Rs 2.3 crore versus net profit of Rs 7.65 crore.
• Ebitda loss at Rs 5.4 crore versus Ebitda profit of Rs 4.4 crore.
• Margin at -15 percent versus 4.1 percent.

Union Bank Of India Q3 (YoY)

• NII up 19.3 percent at Rs 2,548.26 crore.
• Net loss at Rs 1,250 vrore versus net profit of Rs 104 crore.
• Gross NPA at 13.03 percent versus 12.35 percent (QoQ).
• Net NPA at 6.96 percent versus 6.70 percent (QoQ).

Procter & Gamble Hygiene Q2 (YoY)

• Revenues up 9.5 percent at Rs 704.16 crore.
• Net profit down 12.9 percent at Rs 131.24 crore.
• Ebitda down 8.0 percent at Rs 210.23 crore.
• Margin at 29.85 percent versus 35.54 percent.

Vinati Organics Q3FY18 (YoY)

• Revenues up 12.9 percent at Rs 185.65 crore.
• Net profit down 9.4 percent at Rs 31.73 crore.
• Ebitda down 9.5 percent at Rs 49.84 crore.
• Margin at 26.8 percent versus 33.5 percent.

Seshasayee Paper and Boards Q3FY18 (YoY)

• Revenue up 1.3 percent at Rs 294.8 crore.
• Net profit down 10.3 percent at Rs 30.92 crore.
• Ebitda down 18.7 percent at Rs 47.8 crore.
• Margin at 16.2 percent versus 20.2 percent.
• This quarter includes exceptional gain of Rs 4.8 crore.

Stocks To Watch

• GAIL places order of Rs 440 crore for 350 kilometers Vijaipur(UP) – Auraiya(MP) spurline and Rs 3,500 crore capex for City Gas Distribution in financial year 2019.
• Tata Steel completes completion of 74 percent stake in Bhubaneshwar Power for Rs 255 crore.
• GMR Infra to acquire 4.15 crore shares (11 percent) in GMR Hyderabad International Airport for $76 million (approx. Rs 484 crore).
• Cera sanitaryware to further explore the proposal to hike stake in Dubai arm.
• Avenue Supermarts completes acquisition of 4.35 crore in Avenue E-Commerce for Rs 49.2 crore.
• Info Edge clarifies that Alipay Singapore has acquired 32,629 shares in Zomato.
• Mangalam Organics to buyback 6.10 lakh shares (6.74 percent equity) at Rs 230 each.
• Aurobindo Pharma gets U.S. FDA approval for Niacin.

Bulk Deals

Camlin Fine Sciences

• Northern Trust Global Investments Collective Funds Trust bought 6.90 lakh shares (0.6 percent) at Rs 120.29 each

Mastek Ltd

• AJO Emerging Markets Small-Cap Master Fund, Ltd bought 1.26 lakh shares (0.5 percent) at Rs 461.17 each

TTK Healthcare

• The Royal Bank Of Scotland Plc As Trustee Of Jupiter India Fund bought 46,696 shares (0.6 percent) at Rs 812.4 each
• Jupiter South Asia Investment Company Ltd sold 46,696 shares (0.6 percent) at Rs 812.4 each

Elpro International

• The Royal Bank Of Scotland Plc As Trustee Of Jupiter India Fund bought 14.64 lakh shares (1.1 percent) at Rs 60.9 each
• Jupiter South Asia Investment Company Ltd sold 14.64 lakh shares (1.1 percent) at Rs 60.9 each

Repco Home

• Apax Global Alpha Limited bought 6.50 lakh shares (1 percent) at Rs 595 each
• Nomura India Investment Fund Mother Fund sold 6.50 lakh shares (1 percent) at Rs 595 each

Yuken India

• Indiabulls AMC bought 15,186 shares (0.5 percent) at Rs 4,296.24 each

Who's Meeting Whom

• Shankara Building Products to meet investors at conference organized by ICICI securities in Singapore on Feb. 5 & 6
• Bhansali Engineering Polymers to meet several fund houses including White Oak, IDBI MF, BOI Axa MF, Param Capital, Ambit Capital etc. from Feb. 5 to 7
• Shriram City Union Finance to meet several fund houses including Edelweiss Securities, IIFL, Kotak Securities etc from Feb. 5-26
• Mahindra Logistics to meet several fund houses including Edelweiss AMC, HSBC, ICICI Bank etc from Feb. 5-6

Insider Trades

• NRB Bearings promoter Trilochan Santsingh Sahney sold 51,000 shares from Jan. 22 – 31.
• Ultratech cement promoter Trapti Trading & Investments Private Ltd. sold 55,000 shares from Jan. 29 – 31.
• GP Petroleum promoter GP Global Energy Private Ltd. acquired 2,300 shares on Jan. 30.
• Man Infraconstruction Promoter & Director Manan P Shah acquired 60,000 shares on Feb. 1.

Trading Tweaks

• Mahamaya Steel Industries and SORIL Infra Resources circuit filter revised to 10 percent.

Rupee

• Rupee ends at 64.06/$ versus 64.03/$ on Thursday.

F&O Cues

• Nifty February futures trade at 10,755.8. discount of 4 points premium of 14 points.
• February series-Nifty OI down 4 percent, Bank Nifty OI down 7 percent.
• India VIX ended at 15.2, up 8 percent.
• Max OI for February series at 11,500 call strike , OI at 65.2 lakh, OI up 7 percent.
• Max OI for February series at 10,500 Put, OI at 59.8 lakh, OI up 1 percent.

F&O Ban

• In Ban: Fortis Healthcare, HDIL, India Cement, JP Associates, Wockhardt.
• New In Ban: HDIL, India Cement.
• Out of Ban: Jain Irrigation.

Alert: Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of rollover of these intraday positions.

Put-Call Ratio

• Nifty PCR at 1.08 versus 1.21.
• Nifty Bank PCR at 0.70 versus 0.63.

Fund Flows

Brokerage Radar

Macquarie on Bajaj Auto

• Maintained ‘Underperform' with price target of Rs 2,900.
• December quarter was lower than expected operating performance.
• Domestic motorcycle market share continues to decline.
• Exports grew strongly off a low base.
• Three-wheelers near-term outlook is positive.
• New models have not sustained initial momentum.
• Expect Bajaj to grow slower than domestic motorcycle industry in the next financial year.

JPMorgan on Bajaj Auto

• Maintained ‘Neutral' with price target of Rs 3,250.
• December quarter's operating income in line with expectations.
• Export recovery sustains; New market contribution is steadily improving.
• Three wheeler was the best-performing segment for the business.
• Recovery in domestic market key monitorable.

JPMorgan on Hindalco

• Maintained ‘Overweight' with price target of Rs 335.
• December quarter missed estimates across operating income and net profit on account of Utkal.
• Standalone operations do not fully capture earnings strength.
• Prepayment of debt continues.
• December quarter upside was limited by Coal India price increase.
• Capital allocation key monitorable going forward.

Macquarie on Hindalco

• Maintained ‘Outperform' with price target of Rs 328.
• December quarter's standalone operating income was below estimate due to industrywide cost inflation.
• Better placed during cost inflation.
• Copper: Higher value addition to offset margin headwinds.
• Aluminium – Headwinds from hedges and costs to reduce.
• Novelis reported five-year high Operating margin
• Hindalco remains high conviction top pick in metals coverage.

CLSA on Godrej Properties

• Maintained ‘Buy'; cut price target to Rs 1,058 from Rs 1,078.
• December quarter results below estimates on lower margins.
• Cash flows were good with net debt down.
• Pre-sales surge continues; Major scale-up in progress.
• Project additions continue as ‘weak hands' exit.
• Godrej Properties remains top real estate sector pick.

Macquarie on Godrej Properties

• Maintained ‘Neutral'; Raise price target to Rs 858 from Rs 650.
• Business development in full swing; To remain strong focus area.
• Liquidation of commercial inventory in BKC largely done.
• Management expects prices to remain stable over next year.
• Preferred picks are Prestige Estates and Phoenix Mills.

Morgan Stanley on Tata Global Beverages

• Maintained ‘Underweight' with price target of Rs 150.
• December quarter was a mixed bag.
• Strong performance in domestic business.
• Revenue growth in international and plantation remained weak.
• Starbucks and Nourishco now profitable at operating level.
• See limited potential for any structural upturn in core business.

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