All You Need To Know Going Into Trade On November 3

Asian equities headed for a mixed start to trading as investors assessed the latest news on U.S. tax-cut plans and looked ahead to Friday's American jobs report.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.20 percent to 10,465 as of 7:00 a.m.

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DayBreak

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

Global Cues

• U.S. stocks eked out a gain in the final half hour of trading as investors reacted to details of the Republican plan to cut taxes.
• U.S. Treasury yields dipped Thursday as President Donald Trump confirmed that Federal Reserve Governor Jerome Powell is his pick to chair the central bank.
• Apple Inc. supported Nasdaq futures after its forecast for holiday sales topped estimates.

#BQMarketsNow | U.S. stocks mixed; dollar unchanged after posting losses on tax plan detail.https://t.co/VM3hMPVWqw pic.twitter.com/dLJBlRY0ZU

• U.S. employment probably surged in October, rebounding from a hurricane-depressed September, economists predicted ahead of the jobs report.
• Bitcoin hit $7,000, climbing to a fresh record before paring the advance.

Bitcoin's meteoric rise is attracting a ton of attention. Is it ready for the mainstream? pic.twitter.com/Yrm8XwjU8p

Asian Cues

• With Japan closed for a holiday, there may be little direction in Asian trading.
• Australia's S&P/ASX 200 Index rose 0.4 percent.
• Futures on Hong Kong's Hang Seng Index slid 0.2 percent.
• Futures on the Nasdaq 100 Index advanced 0.3 percent.
• Futures on the S&P 500 Index were little changed.

Here are some key upcoming events this week:

• 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.
• The slew of earnings releases will culminate with Apple Inc. results.

Commodity Cues

• West Texas Intermediate crude rose by 0.4 percent to settle at $54.54 a barrel, the highest since July 2015.
• Gold futures declined less than 0.05 percent to $1,276.90 an ounce.
• Copper decreased 0.6 percent to $3.12 a pound.
• Sugar ended lower for second day at 14.23 cents a pound down 2.6 percent

Shanghai Exchange:

• Steel trades higher for fourth consecutive session; up 1.30 percent.
• Aluminium trades lower for second day; down 0.09 percent.
• Zinc trades higher; up 0.27 percent.
• Copper trades higher; up 0.42 percent.
• Rubber trades higher for third day; up 0.33 percent.

Indian ADRs

Nifty Results Today

Hindalco Industries

Other Results Today

• BSE
• Edelweiss Financial
• Godrej Agrovet
• Godrej Properties
• PNB
• Power Finance Corporation
• Sheela Foam
• SCI
• Sical Logistics
• Siti Networks
• Tata Power
• Titan
• Torrent Pharmaceuticals
• UCO Bank
• Union Bank Of India
• Vrl Logistics
• Zensar Technologies

Results Announced

Glenmark (Q2FY18, YoY)

• Revenue up 1.4 percent at Rs 2256 crore.
• Net profit down 7.0 percent at Rs 204 crore.
• EBITDA down 13.6 percent at Rs 389 crore.
• Margin at 17.2 percent versus 20.2 percent.

Ujjivan Financial (Q2FY18, YoY)

• Net Interest Income down 12.5 percent at Rs 164.6 crore.
• Net loss of Rs 11.95 crore versus loss of Rs 75 crore (QoQ).
• Net loss of Rs 11.95 crore versus profit of Rs 73 crore.
• Gross NPA at 4.99 percent versus 6.16 percent (QoQ).
• Net NPA at 1.38 percent versus 2.30 percent (QoQ).

Hathway Cables & Datacom (Q2FY18, YoY)

• Revenue down 60 percent at Rs 131.15 crore.
• Net Profit at Rs 14.01 crore versus Net Loss of Rs 40.44 crore.
• EBITDA down 1.2 percent at Rs 52.7 crore.
• Margin at 40.2 percent versus 16.6 percent.

Note: Company demerged its Cable TV businessinto a wholly owned subsidiary called Hathway Digital in Q1. Base numbers include both cable & broadband numbers.

Deepak Fertilizer (Q2FY18, YoY)

• Revenue up 34 percent at Rs 1231.5 crore.
• Net profit up 70 percent at Rs 46 crore.
• EBITDA up 56.5 percent at Rs 144 crore.
• Margin at 11.7 percent versus 10.0 percent.

GE T&D (Q2FY18, YoY)

• Revenue up 4.2 percent at Rs 870 crore.
• Net profit up 131.7 percent at Rs 47.5 crore.
• EBITDA up 130 percent at Rs 80.5 crore.
• Margin at 9.3 percent versus 4.2 percent.

Transport Corp (Q2FY18, YoY)

• Revenue up 15.55 percent at Rs 520 crore.
• Net profit up 29 percent at Rs 25.5 crore.
• EBITDA up 15.11 percent at Rs 49.5 crore.
• Margin at 9.5 percent versus 9.55 percent.

HEG (Q2FY18, YoY)

• Revenue up 111 percent at Rs 409.5 crore.
• Net profit of Rs 114 crore versus Net loss of Rs 14 crore.
• EBITDA up 924 percent at Rs 189.5 crore.
• Margin at 46.3 percent versus 9.5 percent.

Jay Bharat Maruti (Q2FY18, YoY)

• Revenue up 20.7 percent at Rs 438 crore.
• Net profit up 24.8 percent at Rs 16.6 crore.
• EBITDA up 22.35 percent at Rs 41.6 crore.
• Margin at 9.5 percent versus 9.4 percent.

KSB Pumps (Q2FY18, YoY)

• Revenue up 24.5 percent at Rs 200.5 crore.
• Net profit up 33.33 percent at Rs 11.6 crore.
• EBITDA up 48 percent at Rs 21.6 crore.
• Margin at 10.77 percent versus 9.06 percent.

Himadri Speciality Chemicals (Q2FY18, YoY)

• Revenue up 37.2 percent at Rs 468 crore.
• Net profit up 168.4 percent at Rs 51 crore.
• EBITDA up 83.9 percent at Rs 103 crore.
• Margin at 22.00 percent versus 16.4 percent.

Power Grid (Q2FY18, YoY)

• Revenue up 16 percent at Rs 7253 crore.
• Net profit up 14.36 percent at Rs 2141 crore.
• EBITDA up 15.5 percent at Rs 6475 crore.
• Margin at 89.3 percent versus 89.6 percent.

Vedanta (Q2FY18, YoY)

• Revenue up 36 percent at Rs 21,590 crore.
• Net profit up 46.8 percent at Rs 2,091 crore.
• EBITDA up 21.3 percent at Rs 5,669 crore.
• Margin at 26 percent versus 29 percent.

Berger Paints (Q2FY18, YoY)

• Revenue up 12 percent at Rs 1282 crore.
• Net profit down 20 percent at Rs 111 crore.
• EBITDA up 12.35 percent at Rs 200 crore.
• Margin at 15.6 percent versus 15.5 percent.

Andhra Bank (Q2FY18, YoY)

• Net Interest Income grew 10.4 percent to Rs 1,501 crore.
• Net loss of Rs 385 crore versus profit of Rs 51.4 crore.
• Gross NPA at 13.27 percent versus 13.33 percent (QoQ).
• Net NPA at 7.55 percent versus 8.09 percent (QoQ).

Accelya Kale (Q2FY18, YoY)

• Revenue up 5 percent at Rs 98 crore.
• Net profit down 16 percent at Rs 23 crore.
• EBITDA unchanged at Rs 39 crore.
• Margin at 39.8 percent versus 41.9 percent.

Shriram City Union Finance (Q2FY18, YoY)

• Net Interest Income up 18.7 percent at Rs 872.5 crore.
• Net profit down 3 percent at Rs 198 crore.
• Gross NPA at 6.91 percent versus 6.76 percent (QoQ).
• Net NPA at 1.83 percent versus 1.77 percent.

HCC (Q2FY18, YoY)

• Revenues up 6.6 percent at Rs 971 crore.
• Net profit down 50 percent at Rs 11.6 crore.
• EBITDA down 23 percent at Rs 150 crore.
• Margin at 15.4 percent versus 21.4 percent.

Dalmia Bharat Sugar and Industries (Q2FY18, YoY)

• Revenue up 22.6 percent at Rs 521 crore.
• Net profit down 26 percent at Rs 37 crore.
• EBITDA down 22.6 percent at Rs 65 crore.
• Margin at 12.5 percent versus 19.76 percent.

Akzo Nobel (Q2FY18, YoY)

• Revenue up 2.7 percent at Rs 704.5 crore.
• Net profit down 7 percent at Rs 39 crore.
• EBITDA down 6 percent at Rs 63.6 crore.
• Margin at 9.0 percent versus 9.9 percent.

Stocks To Watch

• Bharat Forge: North America Class 8 truck sales for October at 35,700 vs 13,674 last year (up 161% YoY and up 62% QoQ).
• Hindalco subsidiary Novelis reported better than expected results.
• Dr. Reddy's launched Azacitidine injection in the Canadian market.
• Lupin launched antibiotic gActiclate Tablets, which has a market size of $263 million in U.S.
• Bharat Road Network takes balance stake in Guruvayoor Infrastructure for Rs 97 crore.
• AU Small Finance Bank gets RBI nod for Scheduled Commercial Bank.
• Himadri Speciality Chemical approved capacity expansion of 30,000 MTPA for manufacturing carbon black.
• VST Tillers said overall tractors sales in October increased 14.4 percent to 2,577 units.
• Adani In Talks With Chinese Firm For Carmichael Project Financing (Mint).
• North America Class 8 truck sales for October at 35,700 versus 13,674 last year (up 161 percent YoY and up 62 percent QoQ)
• Adani in talks with Chinese firm for Carmichael project financing (Mint)

Circuit Revisions

• 8K Miles' circuit filter was revised to 10 percent.
• Alok Industries' circuit filter was revised to 5 percent.

Bulk Deals

• A2Z Infra Engineering: Il&FS Financial Services sold 22.50 lakh shares or 1.5 percent equity stake at Rs 38.22 each.
• JB Chemicals & Pharmaceuticals: Ashish Dhawan sold 4.72 lakh shares or 0.6 percent equity stake at Rs 289.54 each.
• Sri Adhikari Bros: State Bank of India sold 2.91 lakh shares or 0.8 percent equity stake at Rs 31.12 each.

Vishal Fabrics:

• Asia Investment Corporation Mauritius bought 2.63 lakh shares or 1.2 percent equity stake at Rs 245 each.
• Devkinandan Corporation LLP sold 2.63 lakh shares or 1.2 percent equity stake at Rs 245 each.

IPO Watch

• Mahindra Logistics Limited IPO subscribed 7.5 times at end of day 3.
• New India Assurance IPO continues on day 3. The issue was subscribed 1.7 times at end of day 2.
• Khadim India IPO continues on day 2. The issue has been subscribed 0.1 times till now.

Who's Meeting Whom?

• PI Industries to meet Philip Capital and Credit Suisse on Nov. 3.
• Crompton Greaves Consumer to meet Fidelity on Nov. 3.
• Crompton Greaves Consumer to meet IL&FS PMS on Nov. 3.

Insider Trades

• Rare Enterprises sells 12.5 lakh shares of Delta Corp on Oct. 31-Nov. 1 in open market

(As reported on Nov. 2)

Rupee

Rupee closed at 64.61/$ on Thursday from 64.59/$ on Wednesday.

Top Gainers And Losers

Index Trends

F&O Cues

• Nifty November futures closed at 10,455 with a premium of 31 points versus 36.8 points.
• November contracts: Nifty open interest up 4 percent, Bank Nifty open interest down 2 percent.
• India VIX closed fell 1 percent at 12.
• Max open interest for November series shifts at 10,500 Call (open interest at 32.3 lakhs, down 5 percent).
• Max open interest for November series at 10,000 Put (open interest at 53.3 lakh, up 2 percent).

F&O Ban

• In ban: HDIL , Indiabulls Real Estate, JSW Energy, Wockhardt
• New in 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 1.52 from 1.50
• Nifty Bank PCR at 1.05 from 1.52

Stocks Seeing High Open Interest Change

Fund Flows

Brokerage Radar

Elara Capital on Credit Rating Agencies

• Small and medium-sized enterprises rating to get boost from government focus.
• Crisil, ICRA and CARE dominate revenue share at 82 percent.
• Triggers:- Bank loan rating, corporate bonds, dual rating if commercial papers, structured finance, SME and MSME conundrum and non-rating revenue.

Elara on CRISIL

• Initiated ‘Accumulate' with a price target of Rs 2,083; potential upside of 16 percent from yesterday's close.
• Diversified business supports higher than industry growth.
• Expect revenue to grow at a compound annual growth rate of 12 percent over four years till December 2019. Expect CRISIL to sustain a superior return on capital employed of 49 percent during the period.

Elara on CARE Ratings

• Initiated ‘Accumulate' with price target of Rs 1,712; Potential upside of 14 percent from yesterday's close.
• CARE remains a pure-play on macro revival.
• Expect revenue to grow at a CAGR of 11 percent over three years till March 2020.
• With absence of a promoter CARE is key acquisition target thereby improving pricing power for the industry.
• Trigger: Scale-up non-rating business and possibility of buyback.

Elara on ICRA

• Initiated ‘Sell' with a price target of Rs 3,526; potential downside of 10 percent from yesterday's close.
• Best placed in terms of bond market.
• Expect revenue to grow at a compound annual growth rate of 8 percent over three years till March 2020.
• Subdued non-rating business an overhang
• Premium valuations not justified with lower profitability

CLSA on Ramco Cements

• Maintained ‘Sell'; hiked price target to Rs 645 from Rs 625.
• Results in the previous quarter was a beat on all parameters, with unit Ebitda strong at Rs 1,200 a tonne
• Expect margins to remain fairly steady in the second half despite seasonality
• Benefits of higher pricing should be offset by increased energy costs

Deutsche Bank on Power Grid Corporation

• Maintained ‘Hold' with price target of Rs 220.
• Project pipeline likely the key driver.
• Expect capitalisation rate to be sustained at Rs 28,000-30,000 crore annually till March 2020.
• Expect net profit to decline 22 percent, 13 percent and 11 percent for three financial years till March 2020 each. Expect return on equity of 16 percent.
• Power Grid remains among the cheapest transmission stocks globally.
• Prefer NTPC given improving growth prospects.

CLSA on Power Grid Corporation

• Maintained ‘Buy'; Cut price target to Rs 260 from Rs 265.
• Capitalisation in the previous quarter was led by large high voltage direct current (HVDC) lines.
• Strong capitalisation over two financial years till March 2019 would sustain earnings growth, enhance cash flow and double dividend.
• Expect 40 percent rise in regulated equity in three financial years till March 2020.
• Expect earnings to grow at a compound annual growth rate of 15 percent over three financial years till March 2020.

CLSA on Vedanta

• Maintained ‘Buy'; Hiked price target to Rs 405 from Rs 380.
• Previous quarter was a was strong quarter, but Ebitda was just below estimates
• Earnings growth outlook remains strong given the on-going ramp-up of projects and the strong rally in commodity prices
• Expect operating income and earnings per share to grow at a compound annual growth rate of 18 percent and 44 percent over three financial years till March 2020.
• Expect return on equity to double and net debt to fall to near-zero by March 2020.

Morgan Stanley on Vedanta

• Maintain ‘Overweight' with price target of Rs 391
• Previous quarter was in-line with positive surprise from zinc segment
• Cost for aluminum will remain elevated in the current quarter owing to higher coal and alumina prices, before potentially easing in the next quarter.
• Gross and net debt of the company continues to decline with loan repayment.

Macquarie on Vedanta

• Maintained ‘Outperform'; Hiked price target to Rs 372 from Rs 345.
• Zinc shines but Aluminum drags in the last quarter.
• Raw material cost inflation more than offset strong aluminum prices and impacted margins .
• Higher costs and a short alumina position drives 5-6 percent in earnings per share cut till March 2019.
• Expect lower risk of aluminum oversupply.

UBS on Hindalco (Novelis)

• Maintained ‘Neutral' with price target of Rs 240.
• Good volume quarter for Novelis; Raised guidance.
• Expect positive reaction to strong results and upward revision to the current financial year's operating income.
• Management did not give any comment about potential inorganic growth.
• Management to make an announcement about North America automotive capacity expansion in next quarter.

Macquarie on Hindalco (Novelis)

• Maintained ‘Outperform'; hiked price target to Rs 330 from Rs 280.
• Novelis upgrades guidance with five year high margins.
• Raised earnings per share estimates by 9 percent, 15 percent and 10 percent each for the three financial years till March 2020.
• Cost inflation partially offsets strong aluminum prices.
• Hindalco's net long alumina position places it better than peers.
• With comfortable leverage, it is in the final stages of announcing its organic expansion plans.

Credit Suisse on PNB Housing Finance

• Initiated ‘Outperform' with a price target of Rs 1,780.
• One of the fastest growing housing finance company.
• Should be able to sustain strong growth via geographical expansion and unique hub and spoke model
• Expect return on equity of 18 percent by March 2020.
• Expect loan book, revenue and net profit to grow at a compound annual growth rate of 40 percent, 50 percent and 51 percent over the three financial years till March 2020.

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