A global stocks rally extended its run in Asia Thursday on confidence the global economic expansion remains intact and on hopes a full-blown trade war will be averted.
Equities in Japan, South Korea and Australia gained after the S&P 500 Index rose for a fourth consecutive day. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent higher at 10,732 as of 6:40 a.m.
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BQ Live
Here’s a quick look at all that could influence equities today.
U.S. Market Check
- Trade hopes and the end of easy money were the twin themes in trading on Wednesday, with U.S. stocks extending gains.
- The yield on 10-year Treasuries rose one basis point to 2.98 percent.
Europe Market Check
- European stocks ended the day little changed following a roller-coaster ride in Italian shares amid brewing worries over potential policies and spending plans from the new populist government.
X
- The euro rose 0.5 percent to $1.1773.
- The British pound gained 0.2 percent to $1.3414.
- Italian 10-year yields jumped 15 basis points to 2.94 percent, bringing the two-day increase to 40 basis points.
Asian Cues
- The MSCI Asia Pacific Index rose 0.4 percent.
- Topix index rose 0.6 percent.
- Kospi index increased 0.9 percent.
- Australia’s S&P/ASX 200 Index rose 0.4 percent.
- Futures on the S&P 500 Index fell 0.1 percent.
Commodity Cues
- West Texas Intermediate crude rose 0.7 percent to $65.20 a barrel.
- Brent crude traded 0.4 percent higher at $75.64 a barrel.
- Gold rose less than 0.05 percent to $1,296.79 an ounce.
- LME copper rose 0.3 percent to $7,245.00 per metric tonne.
- Aluminuim ended 1.5 percent higher at $2,351 per metric tonne.
Fuel Price Update
Petrol and diesel prices were cut by 9 paise and 8 paise respectively today. Petrol now costs Rs 85.45 in Mumbai and diesel costs Rs 73.17, according to the data available on Indian Oil Corporation Ltd.’s website.
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Here are some key events coming up this week:
- On Thursday, Japanese Prime Minister Shinzo Abe meets with U.S. President Trump at the White House to discuss the planned U.S. summit with North Korea’s Kim Jong Un.
- Also on Thursday, euro-zone GDP.
- A Turkish rate decision is due on Thursday.
- G-7 Leaders’ Summit starts in Quebec Friday through to June 9.
Stocks To watch
- McLeod Russel to sell some tea estates of the company in Assam to Luxmi Tea Company for Rs 141 crore.
- Lemon Tree Hotels signs agreement for 104 room property in Madhya Pradesh.
- Sadbhav Infra board approves raising of fund up to Rs 3,000 crore via issue of securities.
- Bhansali Engineering Polymers resumes commercial production at plant in MP following fire incident.
- C&C Constructions joint venture wins contract worth Rs 145 crore from the Government of Bihar.
- Aksh Optifibre receives show cause notice from SEBI in relation to GDR issue.
- NCLT admits Videocon Industries under Insolvency and Bankruptcy Code.
- HCL Infosystems says deal with Apple India to distribute iPhone and other Apple products to end in March 2019.
- Majesco gets contract for cloudinsurer platform product.
- Hatsun Agro rights issue to open on June 14. Issue price fixed at Rs 555 per share.
- Goldstone Infratech launches first full electric feeder bus – “eBuzz K6”, to be exported to Nepal.
- Dollar Industries receives approval from BSE to list 5.67 crore equity shares with effect from June 7.
Indian ADRs
X
Bulk Deals
- Rushil Décor: Elara India Opportunities Fund bought 75,000 shares or 0.5 percent equity at Rs 625 each.
IEX
- Societe Generale sold 1.65 lakh shares or 0.5 percent equity at Rs 1590 each.
- Morgan Stanley (France) S.A.S. sold 1.58 lakh shares or 0.5 percent equity at Rs 1590 each.
Who’s Meeting Whom Today
- Shriram City Union Finance to meet JM Financial.
- Greaves cotton to meet Habrock Capital Management.
- City Union Bank to meet several fund houses including ICICI Prudential, Kotak, Sundaram Asset Management etc.
- Balrampur Chini Mills to meet Birla Sun Life, Kotak MF, UTI MF and Tata MF.
- Speciality Restaurants to meet Paradice Investment Management.
Trading Tweaks
- Circuit Changes (5 to 20 percent): Mishra Dhatu Nigam, Phillips Carbon Black.
- Circuit Changes (10 to 20 percent): DCW, Cimmco, TRF, Apollo Piples, Autoline Inds, Thangamayil Jewellery, Adlabs, FACT.
- Hindustan Motors, Vimta Labs, Pioneer Distilleries, Indowind Energy, Mandahan Industries circuit filter revised to 10 percent from 5 percent.
- Phillips Carbon Black, MIDHANI circuit filter revised to 20 percent from 5 percent.
- Harrisons Malayalam, Cimmco, JMT Auto, Religare, Tree House, MT Educare circuit filter revised to 20 percent from 10 percent.
- Action Construction Equipment and IVRCL placed under additional surveillance measure by BSE.
- Lumax Auto Technologies ex date for stock split from Rs 10 to Rs 2.
Insider Trades
- Chambal Fertilizers promoter acquired 27,028 shares on June 5.
- Donear Industries promoters acquired 30,759 shares from Jun 4 – 5.
- Century Plyboards promoters acquired 91,930 shares on June 5.
- Action Construction promoter Mona Agarwal acquired 25,000 shares on June 5.
- Career Point promoter Pramod Maheshwari acquired 11,445 shares on June 5.
(As reported on June 6)
Money Market Check
- Rupee closed at 66.93/$ on Wednesday versus 67.15/$ on Tuesday.
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F&O Cues
- Nifty June Futures closed trading at 10,686.2 premium of 1.6 points versus 3.3 points.
- June series-Nifty open interest up 1 percent & Bank Nifty open interest up 2 percent.
- India VIX ended 12.5, down 5.7 percent.
- Max open interest for June series at 11,000 Call, open interest at 41.7 lakh, open interest down 9 percent.
- Max open interest for June series at 10600 Put, open interest at 40.4 lakh, open interest up 18 percent.
F&O Ban
- In ban: Dewan Housing, Balrampur Chini.
- New in ban: Balrampur Chini.
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.
Active Stock Futures
Put-Call Ratio
- Nifty PCR at 1.39 versus 1.33.
- Nifty Bank PCR at 0.69 versus 0.56.
Fund Flows
X
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Brokerage Radar
Deutsche Bank on Tata Power
- Maintained ‘Buy’; raised price target to Rs 106 from Rs 100.
- Strategy changed to asset-light growth from asset heavy growth phase.
- Unlikely to acquire new thermal stressed projects.
- Looking to increase share of renewables to 40-50 percent from less than 30 percent at present.
- Will continue to monetise non-core assets.
Goldman Sachs on Hindalco Industries
- Maintained ‘Buy’ with a price target of Rs 290.
- Focus on high-return, -added products to cushion margins.
- Adding downstream capacities to aid profitability, even in lower aluminium scenario.
- Hindalco trading at discounts to global aluminium smelters/processors.
- Concerns more than priced in, valuations compelling.
UBS on India Gas Utilities
- Gas under GST will make the fuel more competitive and boost demand.
- GAIL, GSPL and Petronet LNG to benefit from boost in gas demand.
- Gas under GST means higher pricing power and stable gross margins for CGD.
- Maintain Buy on GAIL and GSPL; Sell on Petronet LNG, MGL, IGL and GGL.
Brokerages on HUL
Credit Suisse
- Maintained ‘Buy’; hiked price target to Rs 1,750 from Rs 1,675.
- Digital and data analytics to add another long term competitive advantage.
- Home care – from a slow growing category to the main growth driver.
- Continues to invest for growth in core and new categories and trends.
Jefferies
- Maintained ‘Buy’ with a price target of Rs 1,680.
- Leveraging data analytics and digital to build a moat and maintain lead over peers.
- Focus on strengthening the core and driving premiumisation.
- Valuations remain rich limiting absolute upside; Co. remains among best placed.
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