Commuters walk along a street near the Bombay Stock Exchange (BSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On June 14

Stocks in Asia followed U.S. equities lower as the Federal Reserve struck a hawkish tone in its latest policy statement. The dollar maintained losses and Treasury yields stabilised after briefly touching 3 percent. Equities fell in Japan, Australia and South Korea, which reopened after a holiday.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,810.50 as of 7:10 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

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

U.S. Market Check

  • U.S. stocks finished lower as the Federal Reserve struck a somewhat hawkish tone in its latest policy statement.
All You Need To Know Going Into Trade On June 14

Europe Market Check

  • European stocks closed a bit higher, buoyed by modest gains in the U.S.
  • Italy’s FTSE MIB outperformed, ending higher, amid investor interest in its bond auction, just days after the new government assured markets that it’s committed to keeping the country in the euro area.
All You Need To Know Going Into Trade On June 14

Asian Cues

  • The Topix index fell 0.7 percent.
  • Australia’s S&P/ASX 200 Index lost 0.3 percent.
  • Kospi index fell 0.9 percent in Seoul.
  • Hang Seng Index futures edged 0.1 percent higher.
  • S&P 500 futures were little changed.

Commodity Cues

  • West Texas Intermediate crude was little changed at $66.58 a barrel after jumping 0.5 percent.
  • Brent crude traded 0.3 percent lower at $76.48 per barrel.
  • Gold was steady at $1,299.67 an ounce.
  • LME copper fell 0.5 percent to $7,221.50 a metric tonne.

Fuel Price Update

  • Petrol and diesel prices were unchanged for the third day in a row. Petrol costs Rs 84.26 in Mumbai and diesel costs Rs 72.24, according to the data available on Indian Oil Corporation Ltd.’s website.

Stories You Might’ve Missed

  • The World Cup is coming back to America.
  • 12 burning questions about the Trump-Kim summit, answered
  • Carlsberg A/S is planning a local initial public offering of its Indian business.
  • At this point in the economic cycle, monetary policy is a waiting game.
  • Amazon wins victory as Seattle repeals tax on big employers.
  • Not quite a female Viagra - it’s a pill to restore a woman’s appetite for sex.
  • The art fair where artwork is “reasonably priced” at $3 million.
  • Fired Tesla workers still love Elon Musk.

Here are some key events coming up this week:

  • Chinese central bank Governor Yi Gang will give opening remarks and a keynote speech at a Shanghai conference where top Chinese economic officials, including the banking regulator head, are speaking.
  • China’s consumption probably accelerated in May while production remained steady and retail sales may have gained. Factory output and fixed-asset investment are both forecast to advance in Thursday’s data deluge.
  • Australia employment figures are also out on Thursday.
  • The European Central Bank rates decision comes Thursday with a briefing from President Mario Draghi.
  • The Bank of Japan June monetary policy decision and news conference is Friday.
  • FIFA expects more than 3 billion viewers for the World Cup that begins this week in Russia.

Stocks To Watch

  • Cabinet approves raising of additional share capital of HDFC Bank up to a maximum of Rs 24,000 crore.
  • ICICI Bank to sell up to 2.87 crore shares or 2 percent equity in ICICI Prudential Life Insurance through stock exchange mechanism.
  • Lupin launches generic Tobramycin Inhalation Solution USP in the U.S.
  • Cipla says Ugandan unit CiplaQCI exploring IPO. Appoints Renaissance Capital Kenya as book runner.
  • Cipla received final U.S. FDA approval for generic Isuprel injection.
  • Kansai Nerolac starts commercial production at Gujarat unit.
  • Oberoi Realty QIP opens; floor price fixed at Rs 509.29 per share.
  • Ruchi Soya declared Adani Wilmar as highest bidder for company.
  • Hindustan National Glass to sell 11.23 percent stake in HNG Float Glass joint venture for $19.3 million.

Also read: Nomura Sees This As A Catalyst For Dr. Reddy’s Despite The Risk

Indian ADRs

All You Need To Know Going Into Trade On June 14

Top Gainers And Losers

Trading Tweaks

  • Jagran Prakashan ex date for determining buyback eligibility.
  • L.G. Balakrishnan & Bros ex date for 1:1 bonus.
  • United Spirits last trading day before 5:1 stock split.

Who’s Meeting Whom Today

  • Lemon Tree Hotels to meet investors.
  • Bodal Chemicals to meet investors.
  • Eicher Motors to meet Franklin Templeton, HSBC Securities and Motilal Oswal Asset Management.

Insider Trades

  • Maharashtra Seamless promoter acquired 41,950 shares on June 1.
  • KPR Mill promoters sold 30,000 shares from June 5-7.
  • Prozone Intu Properties promoter sold 27,500 shares from May 8-June 11.

(As reported on June 13)

Economic Data

  • India to report May wholesale price inflation data today.

Money Market Check

  • Rupee closed at 67.64/$ on Wednesday versus 67.49/$ on Tuesday

Bulk Deals

  • Dish TV: Rare Enterprises bought 1.30 crore shares or 0.7 percent equity at Rs 71.3 each.
  • Supreme Industries: Small Cap World Fund Inc. sold 13 lakh shares or 1 percent equity at Rs 1,250.2 each.
  • Ruchi Soya: Promoter Evershine Oleochem sold 25 lakh shares or 0.7 percent equity at Rs 12.66 each.

F&O Cues

  • Nifty June Futures closed trading at 10,844.5 discount of 11.8 points versus 3.7 points.
  • June series-Nifty open interest up 3.5 percent & Bank Nifty open interest up 4.5 percent.
  • India VIX ended 12.6, down 0.7 percent.
  • Max open interest for June series at 11,000 Call, open interest at 38.5 lakh, open interest up 1 percent.
  • Max open interest for June series shifts to 10,700 Put, open interest at 51.6 lakh, open interest up 13 percent.

F&O Ban

  • In ban: Dewan Housing, Balrampur Chini, Jet Airways, Just Dial.
  • 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.

Put-Call Ratio

  • Nifty PCR at 1.62 versus 1.59
  • Nifty Bank PCR at 1.04 versus 1.00

Fund Flows

All You Need To Know Going Into Trade On June 14

Brokerage Radar

Citi on Mindtree

  • Downgraded to ‘Sell’ from ‘Neutral’; raised price target to Rs 970 from Rs 875.
  • Mindtree’s business has seen a good turnaround.
  • Valuations at are sector-leading; Don’t leave any room for disappointment.
  • Raised EPS estimates by 6 percent primarily due to rupee depreciation.
  • Turnaround in the business priced in.

Credit Suisse on Westlife Development Investor Conference

  • Company targets doubling revenue and margins over the fiscal 2018-2022.
  • McCafe and Delivery to drive aggressive growth plans over the fiscal 2018-2022.
  • Store expansion to accelerate mostly in existing cities.
  • Margin expansion driven by SSSG leverage and gross margins.
  • Overall momentum for QSR industry intact.

Investec on BSE

  • Maintained ‘Buy’ with a price target of Rs 1,270.
  • Several levers to support revenue momentum.
  • Investments in last few years to contribute meaningfully in the current and the next financial year.
  • Cut core EBITDA estimates for 2018-19 by 4 percent to factor in higher expenses.

UBS on Infosys

  • Maintained ‘Buy’ with a price target of Rs 1,335.
  • Management commentary suggests growing confidence in margin outlook.
  • U.S. hiring less expensive than expected, pricing commentary stable.
  • Pace of investments could recede post 2018, helping earnings momentum.

CLSA on ICICI Securities

  • Initiated ‘Buy’ with a price target of Rs 520; implying a potential upside of 46 percent from the last regular trade.
  • Benefits from financialisation of household savings and parent’s brand and reach.
  • Distribution and margin financing will drive revenue expansion.
  • Expect revenue and net profit to compound at 17 percent and 21 percent respectively over the fiscal 2018-2021.
  • Dividend yield one of the highest among Nifty companies.
  • ICICI Sec trades at discount to global peers.

Motilal Oswal on India Strategy

  • Weight of Metals to increase 130 basis points to 2.6 percent post rejig.
  • Hike Sensex EPS estimates for the current and the next financial year by 1.7 percent and 1.8 percent respectively due to increase in free float net profit.
  • Expect Sensex EPS at Rs 1,870 and Rs 2,241 for the current and the next financial year respectively.