A trader reacts as he looks at financial data on computer screens on the trading floor. (Photographer: Luke MacGregor/Bloomberg)

Stocks To Watch: SBI, UPL, Cipla, SAIL

Asian equity markets opened mixed, as a semblance of calm returned after a ratcheting up of trade tensions between the U.S. and China sparked a global sell-off on Tuesday.

Japan’s benchmarks fluctuated, while indexes advanced in Australia and South Korea. Futures on Hong Kong’s stock index were higher as the S&P 500 Index pared losses earlier, and futures on the U.S. benchmark climbed in Asia.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed at 10,723.50 as of 7:50 a.m.

Here Are The Stocks To Watch To Watch Out For In Trade Today:

  • State Bank of India won’t be able to merge more banks with self (Bloomberg).
  • UPL-led consortium is in exclusive talks to acquire Bill Ackman-backed Platform Specialty Products Corp. (Bloomberg)
  • Cipla gets final approval for generic drug Sustiva.
  • The wealth management arm of IIFL Holdings Ltd. raises Rs 745.71 crore from investors including Ward Ferry, Amansa holdings, and HDFC Standard Life.
  • DCM Shriram to buyback 55.55 lakh equity shares at Rs 450 each.
  • Southern Petrochem signs pact with Indian Oil Corporation Ltd. for gas transportation.
  • MPS Ltd. invests Rs 44 crore in the rights issue of subsidiary MPS Interactive Systems.
  • Wheels India to consider bonus issue on June 22.
  • Kansai Nerolac to acquire 55 percent stake in RAK Paints Ltd., Bangladesh for Rs 45.81 crore.
  • SAIL supplies 60,000 tonne steel for railway project in Manipur.
  • Lupin, Horizon agree to end patent suit over Pennsaid 2% drug

Also Read: Government Puts Off Air India Stake Sale In An Election Year

New Offerings

  • RITES’ Rs 460 crore IPO opens today. The state-run railway company to launch an initial public offering by selling 2.52 crore shares at Rs 180-185 apiece in the three-day offer. (More details here).

Also Read: Fine Organics IPO: Here’s All You Need To Know

Bulk Deals

Vaibhav Global

  • Malabar India Fund bought 2.34 lakh shares or 0.7 percent equity at Rs 699.98 each.
  • Panyaek Jainkijmanee sold 2 lakh shares or 0.6 percent equity at Rs 700 each.

Who’s Meeting Whom

  • Inox Leisure to meet IIFL on June 21.
  • TVS Motor to meet Goldman Sachs Asset Management on June 22.
  • KDDL to meet BOBCAPS on June 20.
  • Royal Orchid Hotels to meet Canara HSBC Life on June 20.
  • Mercator to meet several fund houses including Motilal Oswal, Tata AMC, HDFC MF on June 20.

Insider Trades

  • Centrum Capital promoter BG Advisory Services LLP acquired 65,000 shares on June 15.
  • Dhunseri Petrochem promoter Dhunseri Investments acquired 38,473 shares from June 15–18.
  • Panama Petrochem promoter acquired 28,273 shares from June 15–18.

Rupee

  • Rupee closed near a one-month low at 68.38/$ on Tuesday from 67.99/$ on Monday.

F&O Setup

  • Nifty June Futures closed trading at 10,719.8, with a premium of 9.4 points versus a discount of 10 points
  • June series: Nifty open interest down 1 percent while Bank Nifty open interest unchanged
  • India VIX ended at 12.9, up 4.3 percent
  • Max open interest for June series at 11,000 Call (open interest at 53.3 lakh, up 14 percent)
  • Max open interest for June series at 10,700 Put (open interest at 48 lakh, down 3 percent)

F&O Ban

  • In ban: Dewan Housing, Infibeam, Jet Airways
  • Out of ban: Just Dial

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

Brokerage Radar

IIFL on Motherson Sumi

  • Maintained ‘Buy’ with a price target of Rs 425.
  • Expect significant ramp-up over next 12 months from new plants.
  • High level of automation implies significant operating leverage.
  • Significant growth and margin improvement at SMP will be key driver.

Deutsche Bank On Voltas

  • Upgraded to ‘Hold’ from ‘Buy’, hiked price target to Rs 490 from Rs 470.
  • Stock declined 20 percent in past two months on weak commentary for AC sales.
  • Lira depreciation by 20 percent in a year could benefit the launch of Voltbek.
  • Projects business has started a reversal on strong orders.
  • Voltas UCP implied valuations now look reasonable at 26 times FY20 PE.

Citi on Interglobe Aviation

  • Maintained ‘Sell’; cut price target to Rs 1,070 from Rs 1,240.
  • Elevated fuel costs only partially offset by higher yields.
  • Current quarter’s margins could be under pressure.
  • Pace of air traffic growth was lower; Too early to conclude that demand is slowing down.

Investec on Cement Sector

  • See East region to emerge as the next South.
  • Election linked demand trends aren’t encouraging.
  • Even with affordable housing demand is insufficient to match supply.
  • Margins to be at risk because of inflation.
  • Prefer large-caps over mid-caps and North/Central, North-East players over South/East.

Nomura on GAIL (India)

  • Maintained ‘Buy’; hiked price target to Rs 460 from Rs 450.
  • Higher oil price improves outlook.
  • Unbundling talks make case for unified tariff stronger.
  • Petchem: could begin to surprise now.
  • Key beneficiary of likely inclusion of natural gas in GST.

CLSA On Rural Economy

  • Agri push from states in prominence apart from Central Government push.
  • State governments too are doing their bit beyond farm loan waivers.
  • Telangana has announced free power for farmers and a Rs4,000 per acre cash subsidy.
  • Karnataka has announced a Rs5,000 per hectare cash subsidy in certain areas.
  • Haryana implements Madhya Pradesh’s minimum support price scheme.
  • Uttar Pradesh has upped the procurement volume of potatoes.
  • Monsoon season has been just about normal thus far.
  • Rural consumption picks: M&M, ITC, Emami, Crompton and Dabur.