Asian stocks traded mixed following a choppy U.S. session that saw equities close slightly higher as investors assessed the ongoing earnings season and the implications of rising U.S. bond yields.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, traded rose 0.3 percent o 10575 as of 7:05 a.m.
Here Are The Stocks To Watch In Thursday's Trade
- Wipro to sell hosted data center service operations for $450 million to Ensono
- Kitex Garments will form two new subsidiaries and invest Rs 200 crore in each of them
- Future Retail says Mumbai bench of NCLT approved scheme of arrangement with Hypercity
- Indoco Remedies gets statement of GMP non-compliance from UK-MHRA for Goa plant-1
- Emami to consider bonus issue on May 3
- Soril Holdings & Ventures approves issue of shares worth up to Rs 330 crore to FPIs including Steadview Capital Mauritius, ABG Capital and LTR Focus Fund
- Shah Alloys signs settlement pact with ARCIL
- Airtel to transfer core network infrastructure assets to unit Nxtra Data and sell submarine cables to Network i2i
- Cadila Healthcare says Zydus gets final approval from U.S. FDA for Methylprednisolone
- Fortis says Manipal-TPG sought to impose onerous conditions on the company that would cap ability for competitive bid process
- Uniply to allot 45.14 lakh equity shares at a premium of Rs 400.85 per share on a preferential basis to non-promoters. It will also allot 96.28 lakh convertible warrants at a premium of Rs 400.85 per warrant on a preferential basis
Essar Steel lenders find more reasons to disqualify ArcelorMittal, Numetal bids. @visshy_it reports.https://t.co/iLW59z1hhR pic.twitter.com/SzXvCZS0KF
F&O Setup
- Nifty April futures closed trading at 10,569 with discount of 1.5 points versus premium of 3.6 points
- Nifty May futures trading at 10,591.7 with premium of 21 points versus 27.7 points
- Nifty rollover at 45 percent, Bank Nifty rollover at 49 percent
- All series: Nifty open interest up 3 percent, Bank Nifty open interest up 7 percent
- India VIX ended at 12.3, up 4.2 percent
- Max open interest for April series at 10,700 (open interest at 40.5 lakh, down 10 percent)
- Max open interest for April series shifts to 10,500 (open interest at 44.9 lakh, down 9 percent)
Two-year U.S. yields at 2008 highs are scarier than a 3% 10-year.https://t.co/Bb1RQtOgdp pic.twitter.com/vjv0HhDNJP
F&O Ban
- In ban: Balrampur Chini, Dewan Housing, GMR Infra, Raymond, Wockhardt
- New in ban: Raymond
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.
Active Stock Futures
Earnings To Watch
- AU Small Finance Bank
- Biocon
- Parag Milk Foods
- Rallis India
- Reliance Capital
- SBI Life Insurance Company
- Shriram City Union Finance
- Tata Elxsi
- Accelya Kale
- Aditya Birla Money
- Artson Engineering
- Automotive Stampings
- Coromandel Engineering
- Essel Propack
- HIL
- Indian Energy Exchange
- JL Morison
- Jindal Stainless (Hisar)
- Kirloskar Pneumatic
- Oil Country Tubular
- Supreme Industries
- Tata Metaliks
Sugar output in India will likely reach a record this year.https://t.co/MCAXEQmx4D pic.twitter.com/dDP4bso5V2
Earnings Reactions To Watch
Wipro Q4 (QoQ)
- Revenue up 0.7 percent at Rs 13,769 crore
- Profit down 6.7 percent at Rs 1,800 crore
- EBIT down 3.9 percent at Rs 1,883 crore
- Margin at 13.7 percent versus 14.3 percent
ICICI Lombard Q4 (YoY)
- Gross domestic premium up 10 percent at Rs 2,926 crore
- Profit up 18 percent at Rs 212 crore
- Combined ratio at 99.5 percent versus 97.1 percent
Indiabulls Real Estate Q4 (YoY)
- Revenue at Rs 2,028 crore versus Rs 437 crore
- Net profit at Rs 1,648 crore versus Rs 80 crore
- EBITDA at Rs 1,961.5 crore versus Rs 142 crore
- Margin at 96.7 percent versus 32.5 percent
Mahindra & Mahindra Financial Services Q4 (YoY)
- Income from operations grew 12.8 percent to Rs 2,060 crore
- Net profit grew 81 percent to Rs 424 crore
- Provisions at Rs 157 crore versus Rs 199 crore (QoQ)
Future Supply Chain Q4 (YoY)
- Revenue up 50 percent at Rs 222 crore
- Net profit up 6 percent at Rs 18 crore
- Ebitda up 31.2 percent at Rs 31.5 crore
- Margin at 14.2 percent versus 16.2 percent
Syngene International Q4 (YoY)
- Revenue up 40.5 percent at Rs 409 crore
- Net profit up 8 percent at Rs 84 crore
- Ebitda up 28 percent at Rs 128 crore
- Margin at 31.3 percent versus 34.4 percent
Jindal Stainless Q4 (YoY)
- Revenue up 38 percent at Rs 3,173 crore
- Net profit down 29 percent at Rs 115 crore
- Ebitda up 24 percent at Rs 388 crore
- Margin at 12.2 percent versus 13.6 percent
Wendt Q4 (YoY)
- Revenue up 7 percent at Rs 40.5 crore
- Net profit at Rs 5 crore versus Rs 3 crore
- Ebitda at Rs 16.5 crore versus Rs 12 crore
- Margin at 40.7 percent versus 31.6 percent
Agro Tech Foods Q4 (YoY)
- Revenue up 4 percent at Rs 214 crore
- Net profit up 7 percent at Rs 7.5 crore
- Ebitda up 7 percent at Rs 15 crore
- Margin at 7 percent versus 6.8 percent
Mumbai gets more room to grow vertically.https://t.co/tCAi02iCeL pic.twitter.com/EaIk9ltfTj
Who's Meeting Whom
- Indusind Bank to meet Blackrock, Norges Bank Invt Mgmt, Fidelity, JP Morgan AMC etc on April 25.
- Atul to meet investors/analysts on May 4
- Gabriel India to meet investors/analysts at its Chakan plant on April 26
- Himadri Specialty to meet investors/analysts on April 26
Brokerage Radar
CLSA on Bharti Infratel
- Maintained ‘Outperform' with a price target of Rs 364.
- Indus Towers valued at par with Bharti Infratel on EV/EBITDA.
- Indus Towers valued at 12 percent discount to Bharti Infratel on EV/tower.
- Bharti Infratel's capital structure to be sub-optimal most merger.
- Bharti Airtel and Vodafone holdings will be a stock overhang.
- Merger is positive and creates a dominant tower company.
Nomura on Cummins
- Upgraded to ‘Buy' from ‘Neutral'; cut price target to Rs 890 from 898.
- Stock correction provides buying opportunity.
- Expect turnaround from current lows in powergen and exports.
- Outsourcing to group companies has no impact on growth/margins.
- Cummins trades at a discount to sector despite better RoE.
Citi on Maruti Suzuki
- Maintained ‘Buy'; cut price target to Rs 10,800 from Rs 11,600.
- Previous fiscal estimates cut due to volatility in other income.
- Volume estimates for the current and the next financial cut due to lower industry volume outlook.
- Expect market share to increase given strong model line-up.
- Expect revenue, operating income and net profit to rise 14 percent, 31 percent and 25 percent respectively in the previous quarter.
Morgan Stanley on Oberoi Realty
- Maintained ‘Overweight' with a price target of Rs 549.
- March quarter results were inline with estimates.
- Revenue driven largely by Esquire project.
- Net profit beats largely due to lower tax rate.
- New sales down largely due to lower contribution from high-value Worli.
Nomura on Wipro
- Maintained ‘Reduce' with a price target of Rs 270.
- Missed estimates on revenue margins and current quarter guidance front.
- Growth dragged by India and APAC geographies.
- BFSI/Manufacturing led growth; communications and consumer declined.
Investec on Wipro
- Maintained ‘Hold'; cut price target to Rs 290 from Rs 304.
- Disappointing March quarter with IT services revenues lower than expectations.
- Revenue growth guidance for current quarter was also weak.
- Client specific issues continue to haunt.
- Margins likely to improve in the current financial year.
- Valuations likely subdued versus peers.
Nomura on Ultratech Cement
- Maintained ‘Buy' with a price target of Rs 5,150.
- March quarter results were strong; revenue/EBITDA ahead of estimates
- JPA capacity fully integrated in just nine months; PBT break-even due by June 2020.
- Volume growth to get better ahead of 2019 elections.
- Continue to believe that cement sector is on the cusp of a cyclical upturn.
- UltraTech appears best geared for upturn.
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