Asian stocks edged lower Friday after a risk-off session in global markets where technology stocks retreated and Brazilian assets slumped.
Japanese, Australian and South Korean stocks showed modest losses. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.4 percent lower at 10,729 as of 6:30 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- A quiet Thursday in June turned turbulent as a rally in Treasury bonds snowballed, shaking up trading desks with a sudden flurry of volume, and a week-long rally in technology stocks was snuffed out.
- The Nasdaq 100 Index fell the most in three weeks.
- Turkey surprised analysts by tightening monetary policy Thursday for the third time in less than two months, spurring a jump in the lira.
- Brazil’s central bank sold extra foreign-exchange swap contracts for the second time this week, boosting investors’ protection again further declines in the currency.
Europe Market Check
- European stocks fell as luxury shares declined and the euro strengthened amid bets that European Central Bank officials will discuss the end of the bond-buying programme at the June meeting.
- The euro rose 0.2 percent to $1.1799.
- The British pound gained 0.1 percent to $1.3421.
- Italian 10-year yields rose 12 basis points to 3.06 percent.
- The MSCI Asia Pacific Index dipped 0.1 percent.
- Topix index fell 0.1 percent.
- Kospi index fell 0.3 percent.
- Australia’s S&P/ASX 200 Index fell 0.2 percent.
- Futures on the S&P 500 Index declined less than 0.05 percent.
- West Texas Intermediate crude rose 0.3 percent to $66.13 a barrel.
- Brent crude traded 0.2 percent higher at $77.44 a barrel.
- Gold rose less than 0.05 percent to $1,297.26 an ounce.
- LME copper sank 1 percent to $7,257.00 per metric tonne.
- Aluminium ended 1.8 percent lower at $2,309.25 per metric tonne.
Fuel Price Update
- Petrol and diesel prices were cut by 24 paise and 15 paise respectively today. Petrol now costs Rs 85.24 in Mumbai and diesel costs Rs 73.02, 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:
- A potentially tumultuous G-7 Leaders’ Summit starts in Quebec Friday, through to June 9.
- China reports monthly trade data Friday.
Stocks To watch
- IIFL Real Estate Investment Trust receives certificate of registration from SEBI to undertake REIT activities.
- Omax Autos approves expansion of existing capacity for an investment of Rs 100- 120 crore over 2-3 years.
- Electrosteel casting says promoter holding reduced to 11.11 percent from 45.23 percent post allotment of shares to lenders.
- Shriram EPC resolves customer dispute in Iraq; order of $230 million restored to its joint venture with Iraqi Co.
- Indian Bank hikes MCLR by 10 basis points for different tenures.
- Time Technoplast receives order worth Rs 40 crore.
- McNally Bharat issues 1.20 lakh CCPS to promoters.
- Ashiana Housing: Goldman Sachs India Fund sold 28.94 lakh shares or 2.8 percent equity at Rs 147 each.
- Indoco Remedies: DSP Blackrock MF sold 15 lakh shares or 1.6 percent equity at Rs 190 each.
- Sharda Cropchem: Goldman Sachs India Fund sold 13.70 lakh shares or 1.5 percent equity at Rs 400 each.
- PI Opportunities Fund I bought 2.27 crore shares or 4.5 percent equity at Rs 560 each.
- Pioneer Investment Fund bought 71.42 lakh shares or 1.4 percent equity at Rs 560 each.
- Cedar Support Services sold 3.03 crore shares or 6 percent equity at Rs 560 each.
Top Gainers And Losers
Who’s Meeting Whom Today
- Thyrocare Technologies to meet Samatva Investments on June 8.
- Endurance Technologies to meet Citigroup Global Markets India and American Century Investments on June 8.
- Shriram Transport Finance to meet LionRock Capital, Columbia Wanger Asset Management on June 8.
- Kwality, Excel Realty and Oceanaa Biotek placed under ASM by BSE.
- HDFC Bank, Indusind Bank and Cyient FII window open.
- SORIl Holdings And Ventures Ltd. name changed to Indiabulls Integrated Services Ltd.
- Piramal Enterprises promoter Piramal Corporate Services Ltd. sold 1.70 lakh shares from June 4 – 5.
- Panama Petrochem promoter acquired 27,841 shares from June 5 – 6.
- Asian Granito promoters acquired 17,649 shares on June 6.
- Viaan Industries promoter Shilpa Shetty Kundra acquired 20,000 shares on June 6.
- Alkem Laboratories promoters acquired 14,000 shares from June 4 – 5.
- Laurus Labs promoter Dr. Satyanarayana Chava acquired 1.70 lakh shares from June 4 – 6.
Money Market Check
- Rupee closed at 67.13/$ on Tuesday versus 66.93/$ on Wednesday.
- Nifty June Futures closed trading at 10,765.2 discount of 3.1 points versus premium of 1.6 points.
- June series-Nifty open interest up 6 percent and Bank Nifty open interest up 3 percent.
- India VIX ended 12.7, up 1.8 percent.
- Max open interest for June series at 11,000 Call, open interest at 39.9 lakh, open interest down 4 percent.
- Max open interest for June series at 10600 Put, open interest at 43.2 lakh, open interest up 7 percent.
- In ban: Dewan Housing, Balrampur Chini
- New in ban: None
- Out of ban: None
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
- Nifty PCR at 1.49 versus 1.39
- Nifty Bank PCR at 0.89 versus 0.69
Morgan Stanley on Bajaj Finance
- Maintained ‘Overweight’ with a price target of Rs 2,500.
- Strong momentum in AUM growth and customer acquisition.
- Liquidity environment challenging, but liability positioning is conservative.
- New avenues of funding to help in challenging liquidity environment.
- Mortgages to see 35-40 percent growth p.a. in medium term.
Ventura Securities on Byke Hospitality
- Initiated ‘Buy’ with a price target of Rs 351; Potential Upside 106 percent over 24-30 months.
- Expect industry to report much better performance than entire past decade.
- Byke well positioned to benefit from hotel industry uptrend.
- Positives: asset light model, strategic hotel locations and adequate new capacity.
- Expect revenue to compound at 22 percent over the financial year 2018-2021.
- Expect occupancy rate to rise to 71 percent by March 2021, despite aggressive room expansion.
JPMorgan on Asian Paints Annual Report Highlights
- Maintained ‘Neutral’ with a price target of Rs 1,300.
- Positive 2018-19 demand outlook.
- Expects healthy domestic demand and better overseas performance.
- Expanded distribution, new retail formats, product innovation and new segments to aid.
- Rising raw material prices remains the key challenge.
- FCF/Return ratios moderate owing to lower margins and higher capital deployment.
Nomura on M&M Financial
- Maintained ‘Buy’ with a price target of Rs 600.
- Management upbeat on growth trends.
- Confident of normalisation of asset quality and credit costs in 2018-19.
- RoE ramp-up to be faster with improving asset quality and strong growth trends.
- Current valuations look undemanding.
JPMorgan on Vedanta
- Maintained ‘Overweight’ with a price target of Rs 400.
- Vedanta addresses key investor concerns related to copper smelter.
- Vedanta says that plant follows Zero Liquid Discharge policy.
- Past sample checks by regulator found no abnormalities in water.
- Plant accounted for 33% of India’s copper market.
Brokerages On Tata Motors
- Maintained ‘Outperform’ with a price target of Rs 460.
- Second month of positive retail sales though the base has been favourable.
- Demand in China should bounce back from July.
- Jaguar portfolio continues to see sharp declines.
- Discovery range have been steady; RR twins continue to be in ramp up mode.
- Maintained ‘Buy’ with a price target of Rs 480.
- Strong show in U.K. (low base) and North America.
- Deferment of purchase in Chinese market post the reduction in import duties.
- Demand environment subdued in Europe, partly reflecting anti-diesel trend.
- E-Pace aids Jaguar; New models/refreshes drive Land Rover.