F&O Cues

Futures Across all series

• Nifty open interest up 1 percent, adds 1.9 lakh shares in open interest.
• Bank Nifty open interest down 11 percent, sheds 2.5 lakh shares in open interest.
• Nifty Rollover 26 percent, Bank Nifty Rollover 22 percent.

Options

• Nifty PCR at 1.34 versus 1.57 (across all series)

Nifty Options Expiry 25 April

• Max open interest at 11,700 Call (41.5 lakh shares), 12,000 Call (41.4 lakh shares) & 11,800 Call (30.2 lakh shares).
• Open interest addition seen for call strikes 11,700 (+29 lakh shares), 12,000 Call (+9.8 lakh shares), 11,750 (+8.7 lakh shares).
• Open interest shedding seen for Put strikes 11,000 (-8.8 lakh shares), 11,700 (-8.4 lakh shares).

CLSA on Autos

• Few reasons to turn positive on industry outlook.
• Hero: Potential success of new products.
• Bajaj: Strong growth in higher margin export is key upside.
• TVS: Outsized market share gains could drive upside.
• Eicher: Risk of elongated underperformance to industry.

Morgan Stanley on AU Small Finance

• Maintained ‘Equal-weight’ with target price of Rs 560.
• Net profit above estimates driven by net interest income and lower provisions.
• Disbursements growth lower at 20 percent partly due to high base.
• Asset quality was strong.

Deutsche Bank on Cement Stocks

• Ambuja: Maintained ‘Hold’; hiked target price to Rs 235 from Rs 230.
• ACC: Maintained ‘Buy’; hiked target price to Rs 1,830 from Rs 1,790.
• Shree Cement: Maintained ‘Buy’; hiked target price to Rs 21,600 from Rs 19,330.
• Ramco Cement: Maintained ‘Buy’; hiked target price to Rs 790 from Rs 785.
• Ultratech: Maintained ‘Buy’; hiked target price to Rs 4575 from Rs 4240.
• Cost leaders focusing on profitability is positive for industry.
• Demand growth seen moderating; monsoon holds the key.
• Prices up 10 percent year to date on pan-India basis with hike across the board.

Axis Capital on Tejas Networks

• Maintained ‘Buy’; cut target price to Rs 235 from Rs 290.
• Strong quarter led by revenue from international market.
• Diversification to be value accretive and reduce earnings volatility.
• Cut target to factor in lower margin estimates.

• ACC
• Coromandel International
• ICICI Securities
• Indiabulls Integrated Services
• Indiabulls Real Estate
• Sasken Technologies
• Sterlite Technologies
• Tata Global Beverages
• Menon Bearings
• Nucleus Software Exports
• SORIL Infra Resources

Earnings Reaction To Watch

Lux Industries (Q4 Standalone, YoY)

• Revenue up 15.9 percent to Rs 385.6 crore.
• Net profit up 23.7 percent to Rs 37.6 crore.
• Ebitda down 2.4 percent to Rs 56.4 crore.
• Margin at 14.6 percent versus 17.4 percent.
• Inventory loss of Rs 86.4 crore.
• Employee cost up 34 percent to Rs 11 crore.
• Other Income of Rs 9 crore.
• Declares dividend of Rs 3.5 per share.

Swaraj Engines (Q4, YoY )

• Revenue up 3.3 percent to Rs 191.5 crore.
• Net profit down 6.7 percent to Rs 16.7 crore.
• Ebitda down 4.2 percent to Rs 27.4 crore.
• Margin at 14.3 percent versus 15.4 percent.
• Raw materials as percent of Sales at 79 percent versus 74 percent
• Declares dividend of Rs 25 per share and special dividend of Rs 25 per share.

Tejas Networks (Q4 Consolidated, YoY)

• Revenue up 2.7 times to Rs 273.1 crore.
• Net profit up 9.5 percent to Rs 35.9 crore.
• Ebitda up 4.9 times to Rs 52.8 crore.
• Margin at 19.3 percent versus 10.5 percent.
• Deferred tax income of Rs 24.3 crore in base quarter.

AU Small Finance Bank (Q4, YoY)

• Net Interest Income up 34.9 percent to Rs 386.9 crore.
• Net profit up 42.4 percent to Rs 118.2 crore.
• Provisions at Rs 39.2 crore versus Rs 32.1 crore (Rs 32.5 crore QoQ).
• GNPA at 2.04 percent versus 2.09 percent (QoQ).
• NNPA at 1.29 percent versus 1.31 percent (QoQ) .

• The Bank of Japan, Bank of Canada, Bank of Russia, Sweden’s Riksbank and Bank of Indonesia set monetary policy.
• Germany’s IFO data is released Wednesday.
• Japan’s Shinzo Abe meets leaders of the European Union Thursday before flying to the U.S. for a summit with President Donald Trump.