Financial traders monitor data inside a stock exchange. (Photographer: Jasper Juinen/Bloomberg)

All You Need To Know Going Into Trade On June 4

Asian stocks opened higher on Monday after U.S. jobs data bolstered optimism in the world’s largest economy, all but firming an interest rate increase from the Federal Reserve later this month.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent higher at 10,725.50 as of 7:15 a.m.

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BQ Live

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

U.S. Market Check

  • U.S. stocks rallied fell as the latest jobs data bolstered optimism in the economy, all but solidifying a rate hike later this month.
  • The yield on 10-year Treasuries ticked higher to 2.91 percent after adding four basis points on Friday.
All You Need To Know Going Into Trade On June 4

Europe Market Check

  • European stocks advanced at the open as banking shares climbed and Italian equities rallied after populists pieced together a government after weeks of turmoil.
All You Need To Know Going Into Trade On June 4

Asian Cues

  • The Topix index climbed 1.1 percent.
  • Australia’s S&P/ASX 200 Index gained 0.4 percent.
  • South Korea’s Kospi index was up 0.4 percent.
  • Hang Seng Index futures added 0.5 percent.
  • S&P 500 Index futures were little changed.

Commodity Cues

  • West Texas Intermediate crude was flat at $65.81 a barrel. It lost 1.8 percent Friday.
  • Brent crude traded 0.3 percent lower at $76.57 a barrel.
  • Gold was little changed at $1,293.11 an ounce.
  • Aluminium ended 0.9 percent higher at $2,318 per MT.

Fuel Price Check

Petrol and diesel prices were cut by 15 paise and 14 paise respectively today. Petrol now costs Rs 85.77 in Mumbai and diesel costs Rs 73.43, according to the data available on Indian Oil Corporation Ltd.’s website.

Stories You Might’ve Missed

  • PM Modi bets on ‘shining poor’, Rahul Gandhi ‘stoops to conquer’.
  • Will traders’ complaint against Flipkart-Walmart find favour with the competition regulator?
  • FPI outflow hits 18-month high at Rs 29,714 crore in May.
  • Trapigo to deliver local delicacies on your train seats.
  • China says all trade progress is off if U.S. imposes tariffs.
  • North Korea gets relief only when it gives up nukes, Mattis says.
  • Airbus is said to be front-runner for $6.6 billion Vistara order.
  • Sexual violence is holding back the rise of India.
  • What do kids do on private jets?
  • Alfa Romeo to challenge Ferrari, Porsche with a new supercar.

Here are some key events coming up this week:

  • Apple Worldwide Developers Conference in San Jose, California, kicks off Monday. The company is expected to unveil projects such as new versions of iPhone and Mac operating systems.
  • Australia retail sales are due Monday as well as Indonesia CPI.
  • Reserve Bank of Australia monetary policy decision is out Tuesday.
  • Tesla holds its annual shareholder meeting also Tuesday.
  • U.S. ISM non-manufacturing index out Tuesday. Growth at U.S. service industries probably improved in May for the first time in four months, indicating the economy is strengthening after a first-quarter slowdown, economists forecast.
  • Reserve Bank of India rate decision on Wednesday.
  • U.S. trade balance and Australia GDP also out on Wednesday.
  • 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, Australia trade.
  • Turkey rate decision is due on Thursday.
  • Group of Seven Leaders’ Summit starts in Quebec Friday through to June 9.

Stocks To Watch

  • FII limit for HDFC Bank open for 4.3 crore shares.
  • Government weighs on mega-merger of IDBI Bank, OBC, Central Bank and BoB (Mint).
  • ICICI Bank board begins search for new chairman. MK Sharma’s term expires this month. (The Economic Times)
  • Cadila Healthcare’s Zydus received final approval from the U.S.FDA for Doxycycline Hyclate Capsules.
  • Whirlpool approved acquisition of 49 percent stake in Elica PB India for Rs 180 crore in cash.
  • Dilip Buildcon received letter of award by NHAI for project valued at Rs 1,313.9 crore in Karnataka.
  • U.S. FDA completed inspection at Dr. Reddy’s Srikakulam Plant with no observations.
  • Hero MotoCorp sales up 11 percent year-on-year to 706365 units in May 2018.
  • SBI hiked MCLR by 10 basis points across tenors with effect from June 1.
  • Shivam Autotech said that the company has achieved 8 percent increase in sales in May.
  • HDFC MF acquired additional 0.46 percent equity in GNA Axles.
  • Kajaria Ceramics to acquire 8 percent equity in Clean Solar Power (Jaipur) for Rs 2 crore.
  • Punj Lloyd divested balance shareholding of 51 percent in three units.
  • Karnataka Bank raised interest rates on domestic & NRE rupee term deposits to 7.25 percent from 7.10 percent from May 31.
  • Coal India May production at 47.14 million tonne versus target of 51.16 million tonne. Offtake at 52.86 million tonnes versus target of 58.18 million tonne.
  • CBI registered case against 13 officials of ONGC, Rajahmundry and Deep Industries.
  • HDFC increased its Retail Prime Lending Rate on it Home Loans by 10 basis point with effect from June 2.
  • Idea Cellular seek shareholders approval to change name to Vodafone Idea Ltd.

Indian ADRs

All You Need To Know Going Into Trade On June 4

Bulk Deals

  • Just Dial: Ishana Capital bought 4.25 lakh shares or 0.6 percent equity at Rs 583.12 each.
  • Vakrangee: Baron Emerging Markets Fund bought 72.67 lakh shares or 0.7 percent equity at Rs 34.08 each.
  • Balrampur Chini: State Street EM Fund sold 13.33 lakh shares or 0.6 percent equity at Rs 73.43 each.

Who’s Meeting Whom

  • Bharat Forge to meet B&K Securities on June 5 and Morgan Stanley on June 6.
  • Coal India to meet investors at Nomura Investment Forum Asia 2018 from June 4 – 5 at Singapore.
  • CG Power & Industrial solutions to meet Aditya Birla MF on June 4.

Insider Trades

  • Crisil Ltd.’s promoter S&P Global Asian Holdings Pte. Ltd. acquired 6.32 lakh shares on May 30.

(As reported on June 1)

Trading Tweaks

  • Reliance Naval, Prakash Industries and Water Base placed under Additional Surveleince Measure by BSE.
  • Atlanta circuit filter revised to 10 percent.
  • Shree Renuka Sugar acquisition window open from today to 15 June.
  • Delta Corp, Trent, Thermax, Bliss GVS Pharma, V Mart, Cyient, IEX limit reached for FII investment.

Money Market Check

  • Rupee ended at 67.06/$ on Friday versus 67.41/$ On Thursday.

Top Gainers And Losers

F&O Cues

  • Nifty June futures closed trading at 10,683.9, discount of 12.3 points versus 33.9 points.
  • June series-Nifty OI up 2.4 percent and Bank Nifty OI down 5 percent.
  • India VIX ended 13.5, up 2.6 percent.
  • Max OI for June series at 11,000 Call, OI at 37.2 lakh, OI up 22 percent.
  • Max OI for June series at 10200 Put, OI at 31.8 lakh, OI up 10 percent.

F&O Ban

  • In Ban: None

Active Stock Futures

Put-Call Ratio

  • Nifty PCR at 1.47 versus 1.14.
    Nifty Bank PCR at 0.91 versus 1.03.

Fund Flows

All You Need To Know Going Into Trade On June 4

Brokerage Radar

Citi on SAIL

  • Upgraded to ‘Neutral’ from ‘Sell’; raised price target to Rs 83 from Rs 50.
  • Expect steel spreads to sustain on better demand, supply limits and falling inventories.
  • expect strong volumes and fall in net debt-to-EBITDA to three times by 2019-20.
  • Raise Ebitda estimates for the current and the next financial year by 26 percent and 25 percent respectively on potentially higher steel prices.

Credit Suisse on India Automobile

  • May 2018: PVs see demand acceleration.
  • Volume CAGR is strongest for tractors.
  • Healthy growth in CVs with market share gain for Tata.
  • 2W: Another month of double-digit growth.
  • Ashok Leyland and TVS lose share.
  • Prefer M&M and Escorts among OEMs.

Credit Suisse on Jammu and Kashmir Bank

  • Maintained ‘Neutral’; cut price target to Rs 62 from Rs 77.
  • March quarter results were in line with other corporate banks.
  • Loan growth weak as growth slowed across segments.
  • With coverage down, bank would need additional provision.
  • Stock is attractive but RoE likely to remain muted at 10 percent.

Nomura on Tata Motors

  • Maintained ‘Buy’ with a price target of Rs 495.
  • JLR U.S. retail sales better than expected at 17 percent in May.
  • Land Rover drives volume; Jaguar continued to remain weak.
  • Expect 9 percent growth in overall JLR volumes in 2018-19.

Nomura on Coal India

  • Maintained ‘Neutral’ with a price target of Rs 332.
  • Output growth maintains rapid pace in May.
  • Growth uptick were arguably boosted by base-effect.
  • Expect production and offtake at 611mt and 622mt respectively, implying 8 percent and 7 percent growth respectively in the current financial year.