All You Need To Know Going Into Trade On November 1

Stocks in Asia started the month on a positive note, trading near all-time highs, as American consumer confidence data strengthened optimism in the growth outlook and investors shrugged off the latest turmoil in Washington.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.31 percent to 10,411 as of 7:00 a.m.

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DayBreak

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

Global Cues

• U.S. stocks capped the best month since February as investors assessed the prospects for tax cuts and the next Federal Reserve chairman.
• President Donald Trump signaled he'll name a new Fed chair Thursday, while Wednesday brings the central bank's rate decision and some specifics on tax plans.
• Markets remain on edge after the first indictments from Robert Mueller, which may may pose a danger to tax cuts.
• The news flow has overshadowed a robust corporate earnings season and fresh data showing the U.S. economy on firm footing.

#BQMarketsNow | U.S. stocks cap monthly gain as dollar strengthens.https://t.co/3kS0yODwI4 pic.twitter.com/BBXiHBfN8b

Europe Check

• The Russell 2000 Index jumped 0.9 percent, rebounding from a rout Monday and headed for a 0.6 percent gain in October.

• The Stoxx Europe 600 Index increased 0.3 percent to the highest in more than five months. It rose 1.8 percent in the month.
• Spain's IBEX Index gained 0.7 percent to the highest since Aug. 16.

Manhattan terror attack with truck kills 8 on bike path; suspect held. https://t.co/h5LAu4PYJw pic.twitter.com/2qG8CACaJO

Asian Cues

• Japan's Topix index climbed 0.6 percent.
• Australia's S&P/ASX 200 Index added 0.7 percent.
• South Korea's Kospi index was up 1 percent. While export data missed estimates, the latest data showed exports continue to motor ahead.
• Hong Kong Hang Seng Index futures rose 0.2 percent.
• Futures on the S&P 500 Index were little changed.

Here are some key upcoming events this week:

• The U.S. October payroll report comes out Friday.
• Trump starts an 11-day trip to Asia, his first as president, on Friday. Trade and security issues -- particularly North Korea -- will probably be in focus.
• A probable Bank of England rate hike on Thursday will be the first in a decade.
• The slew of earnings releases will culminate with Apple Inc. results.
• 10:30 am: Nikkei India manufacturing PMI for October; prior 51.2

Commodity Cues

• West Texas Intermediate crude rose 0.5 percent to $54.64 a barrel.
• Gold lost 0.2 percent to $1,268.81 an ounce.

Shanghai Exchange

• Steel trades higher for second day; up 0.42 percent
• Aluminium snaps three-day losing streak; up 0.12 percent
• Zinc trades higher for second day; up 0.95 percent
• Copper trades lower; down 0.22 percent
• Rubber snaps three-day losing streak; up 0.64 percent

Indian ADRs

Nifty Results Today

• Hero MotoCorp
• Tech Mahindra

Other Results Today

• Apollo Tyres
• Eclerx Services
• ENIL
• Godrej Consumer Products
• Greaves Cotton
• Hexaware Technologies
• JSW Energy
• Max India
• Shriram Transport Finance
• Tourism Finance Corporation Of India
• TVS Motor

Results Announced

Bharti Airtel (Q2FY18, YoY)

• Revenue down 0.8 percent to Rs 21,777 crore
• Net profit down 6.6 percent to Rs 343 crore
• EBITDA up 2 percent to Rs 7,922 crore
• EBITDA margin at 36.4 percent versus 35.3 percent
• ARPU down 5.8 percent to Rs 145 from Rs 154

InterGlobe Aviation (Q2FY18, YoY)

• Revenue up 27 percent at Rs 5,291 crore
• Net profit up 294 percent at Rs 551.5 crore
• EBITDAR up 61 percent at Rs 1,557.5 crore
• Margins at 29.43 percent vs 23.23 percent

Syndicate Bank (Q2FY18, YoY)

• Net interest income up 6.8 percent at Rs 1649.5 crore
• Net profit up 27.4 percent at Rs 105 crore
• Provisions down 33 percent at Rs 891 crore (QoQ)
• GNPA at 9.39 percent from 9.96 percent (QoQ)
• NNPA at 5.76 percent from 6.27 percent (QoQ)

Swaraj Engines (Q2FY18, YoY)

• Revenue up 16.75 percent at Rs 209 crore
• Net profit up 23.68 percent at Rs 23.5 crore
• EBITDA up 20.68 percent at Rs 35 crore
• Margin at 16.74 percent from 16.2 percent

Cholamandalam (Q2FY18, YoY)

• Revenue from operations up 12 percent at Rs 1,313 crore
• Net profit up 36 percent at Rs 228 crore
• Net interest margin at 9.6 percent from 9.5 percent (QoQ)

IIFL Holdings (Q2FY18, YoY)

• Revenue up 31 percent at Rs 1585.5 crore
• Net interest income up 40 percent at Rs 933.5 crore
• Net profit up 25.1 percent at Rs 229 crore

VST Industries (Q2FY18, YoY)

• Revenue down 2 percent at Rs 219.5 crore
• Net profit up 41.9 percent at Rs 44 crore
• EBITDA up 39 percent at Rs 69.5 crore
• Margin at 31.6 percent from 22.3 percent

Sanofi India (Q2FY18, YoY)

• Revenue up 4.6 percent at Rs 667.5 crore
• Net profit up 50 percent at Rs 12 crore
• EBITDA up 32 percent at Rs 161 crore
• Margin at 24.11 percent from 19.12 percent

KPIT Technologies (Q2FY18, YoY)

• Revenue up 5.5 percent at Rs 916 crore
• Net profit up 8.2 percent at Rs 60 crore
• EBITDA up 13.2 percent at Rs 90 crore
• Margin at 9.8 percent from 9.15 percent

Blue Star (Q2FY18, YoY)

• Revenue down 6 percent at Rs 836 crore
• Net profit up 5 percent at Rs 21 crore
• EBITDA up 14.6 percent at Rs 47 crore
• Margin at 5.6 percent versus 4.6 percent

Zee Media Corporation (Q2FY18, YoY)

• Revenue up 23.8 percent at Rs 125 crore
• Net profit of Rs 1.8 crore from net loss of Rs 18 crore
• EBITDA down 4 percent at Rs 22 crore
• Margin at 17.6 percent from 22.77 percent

JSW Steel (Q2FY18, YoY)

• Net sales up 27.14 percent at Rs 16,818 crore
• Net profit up 29 percent at Rs 836 crore
• EBITDA up 3.51 percent at Rs 3,036 crore
• Margin at 18 percent from 22.2 percent

Divi's Laboratories (Q2FY18, YoY)

• Revenue down 11 percent at Rs 890 crore
• Net profit down 7 percent at Rs 207 crore
• EBITDA down 5 percent at Rs 276 crore
• Margin at 31.0 percent from 28.9 percent

Sintex Plastics Technology (Q2FY18, QoQ)

• Revenue down 7.4 percent at Rs 1,433 crore
• Net profit down 62.3 percent at Rs 26 crore
• EBITDA down 17.4 percent at Rs 192 crore
• Margin at 13.39 percent from 15 percent

EIH Associated Hotels (Q2FY18, YoY)

• Revenue down 6 percent at Rs 46.55 crore
• Net loss of Rs 1.4 crore from a net profit of Rs 1.6 crore
• EBITDA down 76 percent at Rs 1.55 crore
• Margin at 3.3 percent from 13.1 percent

State-run power producers likely to outperform private peers.@jayeshkhilnani reports.https://t.co/WerVXQUjam pic.twitter.com/24x8MpMEtk

Stocks To Watch

• Bharti Airtel to mull sale of controlling stake in Bharti Infratel
• Reliance Communications completed merger with Sistema Shyam Tele
• SBI cuts MCLR by 5 basis points
• Karnataka Bank to cut MCLR by 10 points
• Schneider top bidder for L&T's electrical unit (Mint)
• GIC, CPPIB may join hands with Bain to buy 10 percent in Axis Bank (Mint)

Circuit Revisions

• Circuit filter revised to 10%: IIFL Holdings and Women's Next Loungeries
• Circuit filter revised to 5%: Pioneer Distilleries, HEG & Bhansali Engineering Polymers

Bulk Deals

Cyient

• Birla Sun Life MF bought 15 lakh shares or 1.3 percent equity stake at Rs 525 each
• Fidelity Series Emerging Markets Debt Fund bought 17.62 lakh shares or 1.6 percent equity at Rs 525 each
• Reliance Capital Growth Fund bought 11.6 lakh shares or 1 percent equity stake at Rs 525.39 each
• Reliance Capital Opportunities Fund bought 15.4 lakh or 1.4 percent equity stake at Rs 525.39 each
• UBS Principal Capital Asia bought 12.52 lakh shares or 1.1 percent equity stake at Rs 525 each
• First Carlyle Ventures Mauritius sold its entire stake of 1.1 crore shares or 9.9 percent equity stake at Rs 525.16 each

Skipper

• Ocean Dial Gateway to India Mauritius Ltd bought 22.9 lakh shares or 2.2 percent equity stake at Rs 229.99 each
• Purushottam Distributors sold its entire stake of 13.55 lakh shares or 1.3 percent equity stake at Rs 230 each

Mawana Sugars

• Mentor capital bought 2.5 lakh shares or 0.6 percent equity stake at Rs 122.31 each

Prakash Industries

• BNP Paribas Arbitrage sold 15.90 lakh shares or 1 percent equity stake at Rs 147.57 each

Bhushan Steel

• EARC Trust SC sold 37.83 lakh shares or 1.7 percent equity stake at an average of Rs 67.4 each

Network18

• Network Group Senior Professional Trust sold 1.1 crore shares or 1.1 percent equity stake at Rs 49.41 each

IPO

• Mahindra Logistics Limited IPO continues on day 2. The issue was subscribed 0.4 times on day 1.
• New India Assurance Company IPO opens today with an issue price of Rs 770-800 per share

New India Assurance IPO: Here's what you need to know@dhanuka_saloni reportshttps://t.co/BpKnlsGVh0 pic.twitter.com/USQjmeGWW7

Who's Meeting Whom?

• Chola Fin to meet Kotak Institutional Equities on November 1 and Axis Capital on November 9
• PSP Projects to meet Haitong Securities India on November 1
• Mahanagar Gas to meet Pyrford on November 15

Rupee

Rupee ended at 64.74/$ on Tuesday from 64.85/$ on Monday

Top Gainer And Losers

Index Trends

F&O Cues

• Nifty November futures closed at 10,388.4, premium of 33.5 points from 24.8 points
• November contracts: Nifty open interest up 1 percent, Bank Nifty open interest down 2 percent
• India VIX closed 2.7 percent higher at 12.44
• Max open interest for November series shifts at 10,400 Call (open interest at 32.4 lakhs)
• Max open interest for November series at 10,000 Put (open interest at 50.5 lakh, up 3 percent)

F&O Ban

• In ban: JSW Energy, Wockhardt
• Out of ban: Indiabulls Real Estate

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

Put-Call Ratio

• Nifty PCR at 1.45 from 1.42
• Nifty Bank PCR at 1.16 from 1.12

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Macquarie on JSW Steel

• Maintained ‘Neutral'; hiked price target to Rs 262 from Rs 222.
• Lower iron ore availability in Karnataka and water shortage in Tamil Nadu marginally impacted volumes.
• Well placed with deflating raw materials.
• Maintain Neutral but preferred over Tata Steel to play the current steel upcycle.
• Expected weakness in steel prices in the next financial year.

IDFC Securities on JSW Steel

• Downgrade to ‘Underperform' from Neutral; maintained target price at Rs 192
• H2FY18 outlook better than H1FY18, but largely factored in; stock looks expensive
• Expect EBITDA to grow at CAGR of 3 percent over FY17-19 due to absence of volume growth in FY19
• Next phase of volume growth will accrue from FY21, once it completes its expansion at Dolvi
• Net debt expected to remain high at Rs 36,800 crore at FY19
• Not factoring any probable acquisition of distress steel assets in India

UBS on InterGlobe Aviation

• Maintained ‘Sell'; hiked price target to Rs 930 from Rs 850.
• Previous quarter displayed impressive operational performance supported by compensation credits.
• Expect renewed pressure on yields from the final quarter of the current financial year as capacity growth accelerates.
• Raised EPS estimates for current and next financial year by 24 percent and 7 percent respectively, given better than expected performance.
• GST issues outstanding; Adding ATRs on owned basis

UBS on Dabur India

• Maintained ‘Buy'; hiked price target to Rs 400 from Rs 365.
• Robust recovery in domestic business; Worst over for international.
• Strategic shift towards volume growth; Rural recovery to aid.
• Management expects strong rural stimulus packages to be announced in the run-up to the 2019 elections.
• Increased visibility of volume growth in India business could rerate the stock.

Credit Suisse on Bharti Airtel

• The second quarter's Ebitda surpassed on the back of Africa business.
• Raise EPS estimates by 5-6 percent for the current and next financial year to factor in better Africa margins.
• Being able to maintain margins in India in seasonally weak quarter with revenue decline is commendable.
• Trends in Africa are puzzling – with cut down on capex, network sites being shut and employee count falling.

Credit Suisse on Dabur India

• Maintained ‘Neutral'; hiked price target to Rs 350 from Rs 310.
• Toothpaste momentum drove domestic recovery in the previous quarter; International remains a drag.
• Expect improved volume growth in the second half of current financial year due to the lower base.
• International business decline likely to stem in the second half.
• Margins likely to remain range bound despite topline recovery as ad spends will go up.

Credit Suisse on JSW Steel

• Maintained ‘Outperform'; hiked price target to Rs 300 from Rs 265.
• Previous quarter matched expectations, standalone EBITDA was a beat
• Push back cost benefits to the next financial year from the second half of the current financial year.
• EPS estimamated to decline by 5 percent in the current financial year and 4 percent increase in the next financial year.
• Stay constructive on the steel cycle.

Credit Suisse on Info Edge (India)

• Maintained ‘Outperform'; hiked price target to Rs 1,300 from Rs 1,120.
• Continues to be a dominant player in recruitment, which has attractive cash flow.
• Zomato may continue to aggressively focus on growth.
• Expect slightly lower losses in 99 acres.
• Increased earnings estimates by 2-8 percent for the three financial till March 2020, reflecting higher margins in recruitment.

IDFC Securities on Shankara Building

• Initiated ‘Outperform' rating with a price target of Rs 1,786.
• Shankara has successfully evolved into an integrated home improvement retailer.
• Shift to organised retail to accelerate with implementation of GST.
• Shankara best positioned to tap the massive $70 billion home improvement market.
• Expect revenue, EBITDA and net profit to grow at a compound annual growth rate of 11 percent, 17 percent and 29 percent over the three financial years till March 2020.
• Margins to improve by 100 basis points by March 2020.

Credit Suisse on Dr. Reddy's

• Maintained ‘Underperform' with a price target of Rs 1,950.
• Previous quarter was weak as sales remained weak across U.S., India and Russia.
• Gross margins were still in-line despite weak U.S. sales.
• Cut EPS estimates for the current financial year by 9 percent to reflect lower U.S. sales.
• EBITDA beat driven by low R&D; Only part of SG&A saving is sustainable.

Macquarie on Dr. Reddy's

• Maintained ‘Neutral' with a price target of Rs 2,500
• Uncertainty over U.S. FDA warning letter and potential impact on product approval timelines continues to be an overhang.
• Delayed timelines and reducing complex arbitrage could play spoilsport.
• Any delay in Copaxone 20mg approval poses risk to the U.S. growth estimate in the next financial year.
• Expect the stock to remain range-bound until clarity on the launch timelines.

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