All You Need To Know Going Into Trade On May 2

Asian stocks were mixed as trading resumed in several key markets after holidays, while the dollar steadied near four-month high.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, traded 0.1 percent lower at 10,753.50 as of 6:45 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

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

Global Cues

• U.S. stocks closed mixed, with Apple Inc. leading a late afternoon rally in tech shares that helped offset a drop in industrials sparked by weak production data.
• The yield on 10-year Treasuries increased two basis points to 2.97 percent.
• European markets were closed on account of labour day.

#BQMarketsNow | U.S. Stocks end mixed as Apple boosts tech; bonds fallhttps://t.co/UKgyBQuMmJ pic.twitter.com/72Q9GF0sh1

Asian Cues

• The MSCI Asia Pacific Index fell 0.2 percent.
• Topix index dipped 0.2 percent.
• Kospi index fell 0.3 percent.
• Australia's S&P/ASX 200 Index rose 0.1 percent.
• Futures on the S&P 500 Index fell 0.2 percent.
• Japan's 10-year yield fell less than one basis point to 0.039 percent.
• Australia's 10-year yield rose one basis point to 2.765 percent.

Commodity Cues

• West Texas Intermediate crude rose 0.3 percent to $67.43 a barrel.
• Brent crude traded 0.1 percent higher at $73.19 per barrel.
• Gold rose 0.3 percent to $1,307.13 an ounce.
• LME copper gained 0.7 percent to $6,790 per metric ton.
• Aluminium ended 0.1 percent higher at $2,266.5 per MT.
• Sugar ended 0.5 percent lower at 11.69 cents per pound.

Stories You Might've Missed

• IndiGo's co-founder says the airline won't "miss a hearbeat" in transition to new CEO
• L&T is letting go of its electrical and automation division to sharpen core business focus
• Automakers had a cheerful start to the new fiscal
• Fitch thinks Rabindranath Tagore had the best tip for India's fiscal deficit problem
• Companies are binging on renewable power
• Bank of England's rate expectations have gone a full circle
• Twitter has inked over 30 deals to beef its content offering
• Here's a definitive guide to track snow leopards at over 13,000 feet

Indian ADRs

Nifty Earnings To Watch

Other Earnings To Watch

• Ajanta Pharma
• Astec Lifesciences
• Century Textiles & Industries
• HT Media
• InterGlobe Aviation
• International Paper APPM
• JM Financial
• Kansai Nerolac Paints
• Marico
• Siemens
• Tata Power
• Welspun Corp

Earnings Reactions To Watch

Hindustan Zinc (Q4, YoY)

• Revenue flat at Rs 6,277 crore.
• Net profit down 18 percent at Rs 2,505 crore.
• Ebitda down 3 percent at Rs 3,620 crore.
• Margin at 57.7 percent versus 59.8 percent.

CEAT (Q4, YoY)

• Revenue up 14 percent at Rs 1,674 crore.
• Net profit up 17 percent at Rs 77 crore.
• Ebitda up 50 percent at Rs 198 crore.
• Margin at 11.8 percent versus 9 percent.

Alicon Castalloy (Q4, YoY)

• Revenue up 43 percent at Rs 298 crore.
• Net profit at Rs 13 crore versus Rs 8 crore.
• Ebitda at Rs 37 crore versus Rs 25.5 crore.
• Margin at 12.4 percent versus 12.3 percent.

KPR Mills (Q4, YoY)

• Revenue up 5 percent at Rs 820.5 crore.
• Net profit up 1 percent at Rs 73 crore.
• Ebitda up 7.5 percent at Rs 150.5 crore.
• Margin at 18.3 percent versus 17.9 percent.

Dabur (Consolidated, Q4, YoY)

• Revenue up 6 percent at Rs2033 crore.
• Net profit up 19 percent at Rs397 crore.
• Ebitda up 16 percent at Rs 485 crore.
• Margin at 23.9 percent versus 21.8 percent.
• Domestic volume growth at 7.7 percent.

Stocks To Watch

• Maruti Suzuki sales rose 14.4 percent to 1.72 lakh units.
• Tata Motors sales grew 86 percent to 53,511 units.
• Mahindra & Mahindra sales were 22 percent higher at 48,097 units.
• Eicher Motors sales jumped 27 percent at 76,187 units.
• TVS Motor Company sales grew 24 percent to 3.04 lakh units.
• Escorts sales rose 26.3 percent at 6,186 units.
• IHH raises Fortis Healthcare bid to Rs 175 per share.
• Munjals-Burmans increase Fortis offer to Rs 1,800 crore.
• M&M to acquire up to 10 percent equity in Canada's Resson Aerospace Corp for about Rs 34.5 crore.
• Max, Exide Life shortlisted for IDBI Federal Life Insurance stake sale; valuation likely to be over Rs 6,000 crore: Economic Times.
• L&T will sell electrical and automation division to Schneider for Rs 14,000 crore.
• BHEL gets 900 MW Nepal Hydropower project orders.
• Mahindra Lifespaces joint venture gets multi-product notification for its special economic zones.
• Lakshmi Vilas Bank sets one-year MCLR at 9.45 percent from May 1.
• Mastek wins contract for U.K. Home Office Biometrics.
• Maithan Alloys to set up 1.2 lakh tonne per annum ferro alloy plant in West Bengal.
• Grasim Industries partially commissioned its expanded Vilayat facility.
• MOIL says Ferro grade & fines prices have been reduced by 15 percent in Q1. 5 percent discount on 4 specific grade and prices of chemical grades of ore decreased by 7.5 percent.
• Sudhir Valia to infuse Rs 3,510 crore into Jaypee Infra projects in Noida: Financial Express.

Insider Trades

• Divis Lab promoter Madhusudana Rao Divi sold 9,561 shares from April 23–24.

Trading Tweaks

• Lasa Supergenerics circuit filter revised to 10 percent.
• Bhushan Steel circuit filter revised to 5 percent.
• 5Paisa Capital, Kingfa Science & Technology (India), Vimta Labs out of T group.
• MMTC last trading day before going ex bonus.

Top Gainers And Losers

F&O Cues

• Nifty May futures closed at 10,780.3 with premium of 41 points versus 31.8 points
• May Series: Nifty open interest up 2 percent, Bank Nifty open interest down 3 percent
• India VIX ended at 12.36, up 2.8 percent
• Max open interest for May series at 11,000 (open interest at 56.8 lakh, up 11 percent)
• Max open interest for May series at 10,500 (open interest unchanged at 37.5 lakh)

F&O Ban

• In ban: PC Jeweller
• New in ban: PC Jeweller

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

Put-Call Ratio

• Nifty PCR at 1.52 versus 1.51
• Nifty Bank PCR at 1.65 versus 1.64

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

CLSA On Kotak Mahindra Bank

• Maintained ‘Outperform'; hiked price target to Rs 1,360 from Rs 1,210.
• March quarter's net profit below estimates due to higher investment provisions.
• Healthy CASA growth, but topline lagged due to NIM pressure.
• Asset quality stable; would watch out for unsecured lending.
• Expect 24 percent compounded growth rate in net profit over the fiscal 2018-2021, led by topline rise and stable credit costs.

Citi On Kotak Mahindra Bank

• Maintained ‘Buy'; hiked price target to Rs 1,430 from Rs 1,230.
• March quarter earnings reported strong growth trends across bank and subsidiaries.
• Subsidiaries on strong footing.
• Kotak is steadily gaining market share in main banking business.
• Kotak is one of the better diversified financial services play.

Macquarie On HDFC

• Maintained ‘Outperform' with price target of Rs 2,305
• March quarter's net profit was inline with estimates adjusted for one-offs.
• HDFC going down the market chain to deliver growth.
• Catalyst: HDFC AMC IPO and increase in stake in HDFC Bank.
• Return of AUM growth could only drive core-book value re-rating.

Credit Suisse On HDFC

• Maintained ‘Outperform' with a price target of Rs 2,250.
• March quarter results were inline on the back of healthy assets under management and strong loan growth.
• Retail loan growth picking up; Core profitability remains strong.
• Steady AUM growth; stable spreads.
• Asset quality trends remained benign.

HSBC On Hindustan Zinc

• Maintained ‘Buy'; hiked price target to Rs 390 from Rs 370.
• Operating income during March quarter was broadly in-line.
• Tightening Zinc market and rising silver output support robust outlook.
• Raise operating income estimates for the current and the next financial year to factor in higher silver guidance and weak Indian rupee.

Investec On Hindustan Zinc

• Maintained ‘Buy'; cut price target to Rs 409 from Rs 413.
• March quarter's operating income was in-line; volume guidance increased till March 2020.
• No final dividend was a disappointment.
• Expect strong volume growth, lower cost and ramp-up in silver production.
• Silver business to surprise and drive re-rating.

CLSA On Tata Motors

• Maintained ‘Sell' with a price target of Rs 330.
• JLR's German peers are raising their R&D spends to decade highs.
• JLR needs to invest rapidly to keep pace with peers.
• Investment pressures coming in weak demand and product cycle.
• Cashflows to remain weak even in the current and the next financial year.

Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.