Electronic ticker boards indicate the latest stock figures inside the atrium at the National Stock Exchange (NSE) in Mumbai, India (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On June 1

Asian stocks slipped Friday after the Trump administration’s tariffs on imports from key allies sent U.S. and European stocks into a tailspin and stoked demand for bonds.

Shares in Australia dropped, while those in Japan and Korea pushed higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded a little changed 10,723 as of 7:20 a.m.

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BQ Live

Here’s a quick look at all that could influence equities today.

U.S. Market Check

  • The S&P 500 fell for the fourth time in five days, paring a monthly advance as the president’s escalation of trade tensions with Canada, Mexico and the European Union hammered American industrial and financial shares.

Europe Market Check

  • European shares reversed earlier gains after the U.S. administration imposed tariffs on steel and aluminum imports from regions including the European Union.
All You Need To Know Going Into Trade On June 1
  • The euro gained 0.2 percent to $1.1687.
  • The British pound was little changed at $1.3292.
  • Germany’s 10-year yield dipped three basis points to 0.34 percent.
  • Britain’s 10-year yield dropped three basis points to 1.230 percent.

Asian Cues

  • The MSCI Asia Pacific Index fell 0.2 percent.
  • Topix index fell 0.2 percent.
  • Kospi index rose less than 0.05 percent.
  • Australia’s S&P/ASX 200 Index fell 0.5 percent.
  • Futures on the S&P 500 Index rose 0.1 percent.

Commodity Cues

  • West Texas Intermediate crude rose less than 0.05 percent to $67.05 a barrel.
  • Brent crude traded flat at $77.60 a barrel.
  • Gold rose less than 0.05 percent to $1,299.12 an ounce.
  • LME copper advanced 0.2 percent to $6,852.00 per metric tonne.
  • Aluminium ended 1 percent higher at $2,298.25 per metric tonne.

Fuel Price Update

State-run oil marketers marginally cuts petrol and diesel prices for the third day in a row.

  • The price of petrol was reduced by 6 paise today to Rs 86.10 a litre in Mumbai and diesel was cut by 5 paise to Rs 73.67 a litre, according to data released by Indian Oil Corporation Ltd.

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Here are some key events coming up this week:

  • India to report manufacturing PMI for May.
  • The U.S. employment report for May is due Friday. It’s the last before the June Fed meeting.
  • Automakers report May U.S. sales the same day.
  • Also Friday: some onshore Chinese stocks join MSCI Inc.’s global indexes.
  • On Saturday U.S. Secretary of Commerce Wilbur Ross will travel to Beijing for more talks with Vice Premier Liu He on topics including ZTE Corp. and trade.

Stocks To Watch

  • Infosys extends alliance with Microsoft for cloud-based digital transformation solutions.
  • Idea Cellular completes sale of 9,900 standalone towers to ATC for Rs 4,000 crore.
  • Cochin Shipyard signs agreement with Government of Kerala for procurement of marine ambulance for fisheries department.
  • Maruti Suzuki targets to sell over two lakh automatic cars in 2018-19.
  • Bayer's Crop Science to invest Rs 400 crore in Monsanto India
  • Fortis Healthcare says unit sold off 1.8 crore units of RHT Health Trust for 13.65 million Singapore dollars.
  • PNC Infratech declared L1 for Nagpur-Mumbai Expressway project worth Rs 2,100 crore.
  • Bodal Chemicals to acquire additional 17 percent stake in Trion chemicals for Rs 3 crore.
  • Cholamandalam Investment and Finance to invest Rs 50 crore in its subsidiary Cholamandalam Home Finance.
  • Ashiana Housing has acquired 6.67 acres land in Rajasthan to develop a group housing project with 6.15 lakh square feet area.
All You Need To Know Going Into Trade On June 1

Indian ADRs

All You Need To Know Going Into Trade On June 1

Bulk Deals

  • Avenue Supermarts: BlackRock India Equities Fund (Mauritius) Ltd. bought 56.62 lakh shares at Rs 1,575.55.
  • InterGlobe Aviation: BlackRock Funds International Opportunities Portfolio bought 43.87 lakh shares or 1.14 percent equity at Rs 1,219.75.
  • ACC: BlackRock India Equities Fund (Mauritius) Ltd. sold 12.8 lakh shares at Rs 1,354.38.
  • Divis Labs: BlackRock India Equities Fund (Mauritius) Ltd. sold 14.5 lakh shares at Rs 1,047.17.
  • Container Corp: BlackRock India Equities Fund (Mauritius) Ltd. bought 12.58 lakh shares or 0.52 percent equity at Rs 1,379.41.
  • IDFC Bank: Blackrock Funds International Opportunities sold 4.31 crore shares or 1.27 percent equity at Rs 40.69.
  • Maharashtra Seamless: Gagandeep Credit Capital Pvt. Ltd. bought 3.63 lakh shares or 0.54 percent equity at Rs 425.

NRB Bearings

  • HDFC Mutual Fund Small and Mid Cap Fund brought 15 lakh shares at Rs 162.5.
  • Ubs Principal Capital Asia Ltd. sold 17.1 lakh shares at Rs 162.5.
  • Trilochan Sawhney Singh Trust 1 sold 9.4 lakh shares at Rs 162.63.

TATA Motor DVR

  • Goldman Sachs Investments Mauritius I Ltd. bought 26.8 lakh shares at Rs 168.48.
  • Integrated Core Strategies Asia Pte Ltd. bought 35 lakh shares at Rs 168.51.

Trading Tweaks

  • Apex Frozen Foods, Bombay Dyeing, Dilip Buildcon, Graphite India, GVK Power, HEG, Radiko Khaitan, Rain Industries, Venky(S) placed under additional surveleince measure by BSE.
  • Reliance Naval and Engineering Ltd circuit filter revised to 20 percent.

Who’s Meeting Whom

  • Capacit’e Infra to meet Sundaram MF and Unilazer Ventures on June 1.
  • Welspun India to meet Philip Capital on June 1.
  • TVS Motor to meet Reliance MF, Kotak MF, Max Life, ICICI Prudential Life, DSP MF and others on June 5.

Insider Trades

  • Anoop Moopen promoter of Aster DM Healthcare buys 20,000 shares from March 28 - 29.
  • Laurus Labs Dr Satyanarayana Chava acquired 6.33 lakh shares on May 25.

(As reported on May 31)

Rupee

  • Rupee closed at 67.41/$ on Thursday versus 67.44/$ on Wednesday.

Top Gainers And Losers

F&O Cues

  • Nifty June Futures closed trading at 10,702, discount of 33.9 points.
  • Nifty Rollover at 62.6 percent, Bank Nifty Rollover at 75 percent.
  • All series-Nifty open interest up 11 percent and Bank Nifty open interest up 28 percent.
  • India VIX ended 13.2, down 1.4 percent.
  • Max open interest for June series at 11,000 Call, open interest at 30.4 lakh, open interest up 3 percent.
  • Max open interest for June series at 10600 Put, open interest at 30.5 lakh, open interest up 46 percent.

F&O Ban

In ban: None

Active Stock Futures

Put-Call Ratio

  • Nifty PCR at 1.14 versus 1.38.
  • Nifty Bank PCR at 1.03 versus 1.11.

Fund Flows

All You Need To Know Going Into Trade On June 1

Brokerage Radar

Macquarie on Maruti Suzuki

  • Maintained ‘Buy’ with a price target of Rs 11,500.
  • Maruti Suzuki’s strength is its widest sales and service network.
  • Roll-out of NEXA has been transformational for Maruti.
  • Maruti now upgrading all existing channel outlets to ARENA.
  • Digital integration of online and in-store experience is key differentiator.

HSBC on Cox and Kings

  • Upgraded to ‘Buy’ from ‘Hold’; maintained price target at Rs 290.
  • Outlook for hotel business remain strong.
  • Company planning to improve business mix by increasing focus on retail segment.
  • Inexpensive valuation outweighs deteriorating balance sheet concerns.
  • Risk-reward looks favourable at current valuations.

Morgan Stanley on SAIL

  • Maintained ‘Underweight’ with a price target of Rs 66.
  • March quarter ahead of estimates driven by higher volumes and better EBITDA/ton.
  • Management's focus remains on capacity ramp-up, cost efficiency and improvement in product mix.
  • Expect volume ramp-up will be gradual and cost efficiency to still take time.

Macquarie on Jubilant Foodworks

  • Maintained ‘Outperform’ with a price target of Rs 3,103.
  • Very positive on the business fundamentals post meeting with CEO.
  • Focus is to drive same store sales growth (SSSG); operating leverage story to continue on higher SSG.
  • Top pick in India’s consumer space.

Brokerages On Dilip Buildcon

Citi

  • Maintained ‘Buy’ with a price target of Rs 1,405.
  • Stock fell on unconfirmed market rumors relating to resignation of statutory auditors.
  • Exceptional losses booked to get reversed when remaining roads move out of books.
  • Debt increased due to interest cost, capex and investment in SPVs.

Nomura

  • Maintained ‘Buy’; cut price target to Rs 1,322 from Rs 1,347.
  • March quarter witnessed a strong execution; stock down on speculation.
  • Believe reported operating margin is credible in our view.
  • Not concerned about the ability of Shrem Infraventures to fund the asset sale deal.