All You Need To Know Going Into Trade On June 11

Asian stocks traded mixed Monday, with limited fallout from a tumultuous G-7 meeting. Japanese shares were little changed, while their South Korean counterparts edged higher. Australia’s markets are shut for a holiday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent higher at 10,776 as of 6:50 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. equities held on to a Friday afternoon rally as the risk-off sentiment that gripped investors late in the week subsided.
• The yield on 10-year Treasuries was at 2.95 percent.

Europe Market Check

• European stocks fell as U.S. shares opened lower and investors eyed a tense G-7 summit.

Asian Cues

• The MSCI Asia Pacific Index declined less than 0.05 percent.
• Topix index fell 0.1 percent.
• Kospi index rose 0.3 percent.
• Futures on the S&P 500 Index fell 0.2 percent.

Commodity Cues

• West Texas Intermediate crude dipped 0.2 percent to $65.60 a barrel.
• Brent Crude traded 0.1 percent higher at $76.56 a barrel.
• Gold advanced 0.1 percent to $1,299.07 an ounce.
• LME copper was unchanged at $7,312.00 per metric tonne.

Fuel Price Update

Petrol and diesel prices were cut by 20 paise and 16 paise respectively today. Petrol now costs Rs 84.41 in Mumbai and diesel costs Rs 72.35, 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:

• President Donald Trump and North Korean leader Kim Jong Un meet for an historic summit in Singapore Tuesday
• U.K. Prime Minister Theresa May faces votes that could derail her Brexit policy, also Tuesday
• Federal Reserve is expected to raise interest rates Wednesday as the U.S. economy remains solid
• European Central Bank rates decision Thursday and briefing with President Mario Draghi
• Bank of Japan June monetary policy decision and news conference Friday
• FIFA expects more than three billion viewers for the World Cup that begins this week in Russia.

Datawatch

• 10:30 am: India car sales data for month of May
• 06/11-06/29: Q1 balance of payments current account balance, estimate $12.5 billion deficit (prior $13.5 billion deficit)

Stocks To Watch

• PNB to divest stake in PNB Housing Finance, ICRA, Crisil and BSE.
• Fortis Healthcare to announce Q4 and FY18 earnings.
• Goa Carbon total production in May at 19,827.8 MT; sales at 9,821.23 MT.
• Hindustan National Glass and Industries to divest its entire 11.23 percent stake in HNG Float Glass.
• Natco pharma introduces generic posaconazole injection in India.
• IVRCL receives expression of interest from potential investors.
• Oriental Bank of Commerce, IOB and Syndicate Bank hike MCLR across various tenures.
• IndusInd Bank receives RBI approval for setting up a subsidiary as part of the merger with Bharat Financial.
• Inox Wind auditors Patankar & Associates resigns due to time constraints caused by their other commitments and engagements.
• Reliance unit acquires 100 percent stake in Rhea Retail for Rs 203 crore.
• Phoenix Mills acquires under construction retail development in Lucknow with leasable area of 9 lakh sq ft for Rs 453 crore.
• Welspun Corp awarded contracts for supply of 72 KMT of API pipes in to the America’s market. Including this contract, current order book stands at Rs 11,000 crore.
• Mahanagar Gas raises CNG by Rs 0.33/SCM, while domestic piped gas prices by Rs 1.51/Kg from June 8 midnight (Bloomberg).
• ICICI Bank, Chanda Kochhar face U.S. regulatory probe (PTI).

Indian ADRs

Bulk Deals

• PVR : Baron Emerging Markets Fund sold 6 lakh shares or 1.3 percent equity at Rs 1332.15 each.
• Best Steel Logistics: Promoter Saket Agarwal sold 3.92 lakh shares or 1.5 percent equity at Rs 154.43 each.

Worth Peripherals

• Girik Wealth Advisors bought 1.45 lakh shares at Rs 68 each.
• HSBC MF – Small Cap Equity Fund sold 4 lakh shares at Rs 68.05 each.

Who’s Meeting Whom Today

• PI Industries to meet UTI Asset Management on June 11.
• Gujarat Pipavav Port to meet ICICI Prudential Mutual Find on June 11.
• Mahindra Holidays & Resorts India to meet Reliance MF, Enam Asset Management and Motilal Oswal from June 11 – 12.

Insider Trades

• Kwality Ltd. promoter Sanjay Dhingra acquired 6 lakh shares on June 4.
• Nandan Denim promoter acquired 21,975 shares on June 5.
• Ashoka Buildcon promoter acquired 38,750 shares from June 5 – 6.
• Vardhman Special Steels promoter Sachit Jain acquired 11,584 shares from June 5 – 7.

(As reported on June 8)

Money Market Check

• Rupee closed at 67.51/$ on Friday versus 67.13/$ on Thursday; lowest since May 29.

F&O Cues

• Nifty June Futures closed trading at 10,748 discount of 19.5 points versus 3.1 points.
• June series-Nifty OI up 2.4 percent and Bank Nifty OI down 2 percent.
• India VIX ended at 12.6, down 0.6 percent.
• Max OI for June series at 11,000 Call, OI at 42.6 lakh, OI up 7 percent.
• Max OI for June series at 10,600 Put, OI at 49 lakh, OI up 13 percent.

F&O Ban

• In Ban: Dewan Housing, Balrampur Chini, Jet Airways.
• New In Ban: Jet Airways
• 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.

Put-Call Ratio

• Nifty PCR unchanged at 1.49.
• Nifty Bank PCR at 0.80 versus 0.89.

Fund Flows

Brokerage Radar

Emkay on Suven Life Sciences

• Initiated ‘Buy’ with a price target of Rs 270; implying a potential upside of 26 percent from the last regular trade.
• Resurgence in global innovative R&D spends a key catalyst.
• Consolidation in CDMO/CRO industry is another growth catalyst.
• Suven is a focused play on growing tailwinds in CDMO.
• Suven enjoys strong margin profile; Expect earnings to compound at 19 percent over the fiscal 2018-20.

ICICI Securities on Mindtree

• Maintained ‘Reduce’; raised price target to Rs 955 from Rs 800.
• Strong deal momentum to help sustain revenue growth in the first half of the current financial year.
• Expect sequential revenue momentum to slow in the second half of the current financial year.
• Acquisitions showing gradual revenue improvement; Profitability to take time to pick-up.
• Multiple levers to help drive margin expansion over the fiscal 2018-2020.
• Morgan Stanley on Reliance Industries Annual Report Takeaway
• Resilient network, well-engineered to cater to growing data demand.
• FTTH and enterprisesolution launch over next few months.
• Jio believes media content is a key differentiator.

Macquarie on Indian Real Estate

• Under Indian Accounting Standard 115, revenue recognition will change from percentage completion to project completion.
• Companies can recognise revenues only when residential project receives occupation certificates.
• Annuity businesses including office, retail and hotels will be largely unaffected.
• Investor focus will shift to cash flow as reported P&L loses significance.

Brokerages On Sun Pharma

Goldman Sachs

• Maintained ‘Buy’ with a price target of Rs 580.
• VAI for Halol plant removes FDA compliance overhang.
• Can now start obtaining new product approvals filed from here.
• VAI adds credibility to the current financial year.
• guidance for low double-digit top line growth.

Macquarie

• Maintained ‘Neutral’ with a price target of Rs 460.
• Expect sales ramp-up from Halol to be gradual.
• New product sales from Halol starting October is already priced in.
• Expect street’s focus to shift to Sun’s quality of earnings and specialty ramp-up.

HSBC

• Maintained ‘Hold’ with a price target of Rs 510.
• Halol resolution to help in recovery of U.S. sales.
• Halol clearance positive but broadly priced in.
• Expect margin pressures on significant cost build-up for specialty products.