All You Need To Know Going Into Trade On Feb. 6

Asian stocks plunged for a second day after a frantic sell-off in U.S. equity markets sent the Dow Jones Industrial Average to its biggest loss in six and a half years.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, dropped closed to 3 percent for the second time in last three days. It was 2.8 percent lower at 10,401 as of 7:10 a.m.

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DayBreak

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

Global Cues

• U.S. stocks plunged the most in six-and-a-half years, with the Dow Jones Industrial Average sinking more than 1,100 points, as the equity selloff reached a fever pitch amid rising concern that inflation will force interest rates higher.
• The S&P 500 Index capped its worst day since the U.S. lost its pristine credit rating, topping the rout that followed China's shock devaluation of the yuan, the Brexit selloff and jitters heading into the presidential election.
• Treasuries popped, sending the 10-year yield down more than 10 basis points, and gold future pushed higher.

#BQMarketsNow | U.S. stocks sink most since 2011 as rout deepens.https://t.co/pJkyjzp8IJ pic.twitter.com/Rl9RmP6VIq

Equity markets could fall as much as 20% this year, says Blackstone President Tony James.https://t.co/ZIMsXsXIRB pic.twitter.com/tb2t5NdtHd

Europe Check

• European stocks slid to the lowest level in more than two months as U.S. equities resumed their declines amid concern over inflation and increasing bond yields.

Global VIX jumps 116% in one day.https://t.co/pJkyjzp8IJ pic.twitter.com/1D2Pw2J29T

Asian Cues

• Japan's Topix index plunged 4.2 percent, poised for its biggest two-day slide since June 2016, and the Nikkei 225 Stock Average sank 4 percent.
• Australia's S&P/ASX 200 Index slid 3.1 percent.
• South Korea's Kospi index lost 1.9 percent.
• Contracts on the S&P 500 rose 0.4 percent and futures on the Dow climbed 0.5 percent. They climbed more than 1 percent earlier.

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 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 Frankfurt and New York.

Commodity Cues

• West Texas Intermediate crude fell for a third day, down 0.8 percent to $63.62 a barrel.
• Brent ended lower at $67.6 per barrel; down 1.4 percent.
• Gold was little changed at $1,339.34 an ounce after rising 0.5 percent on Monday.
• Sugar ended higher for third day at 13.9 cents per pound; up 2 percent.

Shanghai Exchange

• Steel trades higher; up 0.6 percent.
• Aluminium trades lower for second day; down 0.2 percent.
• Zinc trades higher; up 0.8 percent.
• Copper trades higher; up 0.9 percent.
• Rubber trades lower for sixth day; down 0.1 percent.

Industrials and energy sectors lead the fall in Down Jones.https://t.co/hnQxGZhbAd pic.twitter.com/3gRYkmRi93

Indian ADRs

Nifty Earnings To Watch

• Hero Motocorp
• Lupin

Other Earnings To Watch

• Advanced Enzyme Technologies
• AIA Engineering
• Apollo Tyres
• Bank Of Maharashtra
• Berger Paints
• Blue Star
• Castrol India
• Dish TV India
• Future Retail
• JSW Energy
• KEC International
• Natco Pharma
• Oracle Financial Services Software
• Punjab National Bank
• REC
• Siemens
• Spicejet
• Tata Chemicals
• Thermax

Earnings Reaction To Watch

Century Ply Q3

• Net sales up 20 percent at Rs 510 crore.
• Net profit up 27 percent at Rs 47 crore.
• Ebitda up 29 percent at Rs 87 crore.
• Margin at 17.1 percent versus 15.8 percent.

Manali Petrochemical Q3 (YoY)

• Revenue up 17 percent at Rs 162 crore.
• Net profit up 31 percent at Rs 17 crore.
• Ebitda up 96 percent at Rs 30.4 crore.
• Margin at 18.8 percent versus 11.2 percent.

MM Forgings Q3 (YoY)

• Revenue up 27 percent at Rs 152 crore.
• Net profit up 50 percent at Rs 15 crore.
• Ebitda up 31.25 percent at Rs 31.5 crore.
• Margin at 20.7 percent versus 20 percent.

BASF Q3 (YoY)

• Revenue up 14 percent at Rs 1,279 crore.
• Net profit of Rs 6.9 crore versus net loss of Rs 47 crore.
• Ebitda at Rs 68 crore versus Rs 16 crore.
• Margin at 5.3 percent versus 1.4 percent.

Cochin Shipyard Q3 (YoY)

• Revenue up 6 percent at Rs 615 crore.
• Net profit up 27.5 percent at Rs 176 crore.
• Ebitda up 20.7 percent at Rs 137 crore.
• Margin at 22.3 percent versus 19.5 percent.

Ujjivan Financial Services Q3 (YoY)

• NII down 1.6 percent at Rs 196 crore.
• Net profit down 33.3 percent at Rs 29.3 crore.
• Gross NPA at 4.24 percent versus 4.99 percent (QoQ).
• Net NPA at 1.04 percent versus 1.38 percent (QoQ).

Greaves Cotton Q3 (YoY)

• Revenue up 10.6 percent at Rs 447 crore.
• Net profit up 26.4 percent at Rs 55.6 crore.
• Ebitda up 3 percent at Rs 62 crore.
• Margin at 13.9 percent versus 14.9 percent.

Hudco Q3 (YoY)

• Net Interest Income up 18.5 percent at Rs 502 crore.
• Net profit down 10 percent at Rs 163.6 crore.
• Gross NPA at 6.99 percent versus 7.10 percent (QoQ).
• Net NPA at 1.84 percent versus 1.78 percent (QoQ).

Tata Motors Q3 (YoY)

• Revenue up 16 percent at Rs 74,156 crore.
• Net profit up 13 times at Rs 1,199 crore.
• Ebitda up 37 percent at Rs 8,543 crore.
• Margin at 11.5 percent versus 9.7 percent.
• JLR margin at 10.9 percent versus 10.1 percent.

Timken India Q3 (YoY)

• Revenue up 21 percent at Rs 279 crore.
• Net profit down 31 percent at Rs 9 crore.
• Ebitda down 12 percent at Rs 20.8 crore.
• Margin at 7.5 percent versus 10.3 percent.

Igarashi Motors Q3 (YoY)

• Revenue down 18 percent at Rs 102 crore.
• Net profit down 17 percent at Rs 15 crore.
• Ebitda down 32 percent at Rs 21 crore.
• Margin at 20.6 percent versus 25 percent.

Mcleod Russel India Q3 (YoY)

• Revenue up 21.5 percent at Rs 556 crore.
• Net profit up 181.25 percent at Rs 67.5 crore.
• Other income up more than 4 times at Rs 93 crore.
• Ebitda down 15.7 percent at Rs 51 crore.
• Margin at 9.2 percent versus 13.2 percent.

Sheela Foam Q3 (YoY)

• Revenue up 10 percent at Rs 532 crore.
• Net profit down 7 percent at Rs 39 crore.
• Ebitda down 7 percent at Rs 61 crore.
• Margin at 11.5 percent versus 13.6 percent.

ENIL Q3 (YoY)

• Revenue down 2 percent at Rs 148 crore.
• Net profit down 18.75 percent at Rs 13 crore.
• Ebitda down 10 percent at Rs 35 crore.
• Margin at 23.6 percent versus 25.8 percent.

#ICYMI Tata Motors' profit misses estimate on weakness in Jaguar Land Rover. #Q3WithBQhttps://t.co/MRdzj5TBpO pic.twitter.com/UboG0qvGEc

Stocks To Watch

• Tata Motors and Warburg Pincus mutually decide to call off the transaction in Tata Technologies.
• Bank of Baroda cuts overnight MCLR to 7.8 percent from 8.05 percent.
• MOIL approves share buyback proposal.
• Oil India board to consider bonus share issue on Feb. 9.
• LA Opala board approves 1:1 bonus issue.
• JBF Industries clarifies that they continue to evaluate all strategic options.
• Emami to acquire 26 percent stake in beauty care brand Brillare Science through CCPS.
• Endurance Tech to set up a plant in Karnataka to manufacture suspension product range.

Bulk Deals

• PC Jeweller: Fidelity Investment Trust - Fidelity Emerging Markets Fund bought 40.89 lakh shares or 1 percent equity at Rs 435.93 each.
• Bombay Dyeing: Societe Generale bought 12.68 lakh shares or 0.6 percent equity at Rs 215.98 each.
• Religare Enterprises: IDBI Trusteeship services sold 19.15 lakh shares or 1.1 percent equity at an average of Rs 37.15 each.
• Bhushan Steel: EARC Trust SC 283 sold 46.79 lakh shares or 2.1 percent equity at Rs 42.21 each.

Shaily Engineering Plastics

• Ashish Kacholia bought 2.95 lakh shares or 3.5 percent equity at Rs 963.51 each
• Bengal Finance & Investment sold 2.95 lakh shares or 3.5 percent equity at Rs 963.45 each

Corporate Actions

• Apollo Micro Systems circuit revised to 20 percent.
• Phillips Carbon Black, Tainwala Chemicals, Madras Fertilizers circuit revised to 5 percent.

Who's Meeting Whom?

• Mukta Arts to meet London based Fund, Halo investment Mgmt on Feb. 6.
• Hatsun Agro to have one on one discussion with investors Steadview Capital, DSP Blackrock and SBI MF on Feb. 6.

Long-term capital losses can't be set off or carried forward if shares are sold between Feb. 1 and March 31. https://t.co/dKyA3P2kQe pic.twitter.com/t5NMEWzGla

Insider Trades

• Rajratan Global Wire promoter and director Sunil Chordia acquired 1,400 shares on Feb. 2.
• Ashoka Buildcon promoter Ashish Ashok Katariya HUF acquired 44,134 shares on Feb. 2.

Rupee

• Rupee closed at 64.07/$ on Monday from 64.06/$ on Friday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty February futures trade at 10,684.6 premium of 18 points versus discount of 4 points.
• February series: Nifty open interest down 4 percent, Bank Nifty open interest up 2 percent.
• India VIX ended at 16, up 5.2 percent.
• Max open interest for February series at 11,500 call strike (open interest at 62.1 lakh, down 5 percent).
• Max open interest for February series at 10,500 put (open interest at 60 lakh, up 1 percent).

F&O Ban

• In ban: Fortis Healthcare, HDIL, India Cement, Wockhardt.
• Out of ban: JP Associates.

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 1.09 from 1.08.
• Nifty Bank PCR at 0.74 from 0.70.

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

JPMorgan on Colgate-Palmolive

• Maintained ‘Neutral' with price target of Rs 1,110.
• December quarters operating income was ahead of estimate led by margin beat; Revenue broadly in line.
• Margins surprise positively yet again.
• Volume growth of 12 percent was below, but pricing growth was better.
• Market share yet to show improvement.
• Opportunity to participate more in the Naturals segment.

Credit Suisse on Colgate-Palmolive

• Maintained ‘Neutral'; raised price target to Rs 1,120 from Rs 1,025.
• December quarter's volume and market share trends remain weak; Margins surprise.
• Volume growth over two years is 0, lowest in the peer set.
• Market share slide continues as challengers from naturals segment grow rapidly.
• Margins surprise positively on good cost control and lower trade promotions.

JPMorgan on Westlife Development

• Multi-quarter high same-store-sales-growth (SSSG) of 20.7 percent in previous quarter
• Menu innovation and value formats driving growth.
• Positive outlook for SSSG/margin delivery.
• Mix improvement, operating leverage and stable royalty payout to aid margin.

CLSA on Tata Motors

• Maintained ‘Sell' with price target of Rs 395.
• Weak December quarter results pulled down by JLR.
• Indian business surprised positively.
• JLR is facing weak demand and margin pressure.
• Indian business seeing improvement.

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