Asian stocks are set to rise Friday after their U.S. and European counterparts closed higher. Futures in Japan, Australia and Hong Kong all pointed to gains.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,794 as of 7:45 a.m.
Stocks To Watch
- ICICI Bank’s offer-for-sale in ICICI Prudential Life shares at minimum price of Rs 390 rupees each to retail investors open. OFS for non-retail investors gets 206 percent demand Thursday
- Tamil Nadu Newsprint approves Rs 2,520 crore mill expansion plan
- Punj Lloyd says NCLT may not admit ICICI Bank’s insolvency plea.
- Transcorp International mulls issuing bonus at 1:4, record date being June 20.
- Bayer CropScience: To explore Monsanto merger upon open offer; says India asked Monsanto to divest Mahyco stake. The company intends to explore possibility of merging Monsanto India.
- Manappuram Finance: To raise up to Rs 100 crore rupees via debentures
- Wipro wins cargo management contract from Latam Cargo; gets supply chain digital transformation deal from Nokia.
Ampersand Growth Opportunities Fund Scheme-1 sold 1.97 lakh shares (0.68 percent) at Rs 159 each
Satin Creditcare Network
- Goldman Sachs Singapore PTE acquired 3.59 lakh shares (0.73 percent) at Rs 378.7
- DBS International (Asia) Ltd. sold 3.59 lakh shares (0.73 percent) at Rs 378.7
- Manpasand Beverages placed under ASM.
- Jubilant Industries circuit filter revised to 10 percent.
- United Spirits ex date for 5:1 stock split. F&O lot size revised to 1,250.
- JB Chemicals and Pharma promoter sold 20,000 shares from June 12 - 13.
- Vikas EcoTech promoter acquired 5 lakh shares on June 12.
- Siti Networks promoter sold 15.8 lakh shares on June 13.
(As reported on June 14)
- India to report export and import data for May.
Money Market Check
- Rupee closed at 67.63 a dollar on Thursday versus 67.64 a dollar on Wednesday.
Fuel Price Check
Petrol prices were cut by 8 paise while the diesel prices were unchanged. Petrol costs Rs 84.18 in Mumbai and diesel costs Rs 72.24, according to the data available on Indian Oil Corporation Ltd.’s website.
- Nifty June Futures closed trading at 10,813.9 premium of 5.9 points versus discount of 11.8 points.
- June series-Nifty open interest down 3 percent and Bank Nifty open interest down 1 percent.
- India VIX ended at 12.09, down 4.2 percent.
- Max open interest for June series at 11,000 Call, open interest at 41.4 lakh, open interest up 8 percent.
- Max open interest for June series shifts to 10,700 Put, open interest at 49.5 lakh, open interest down 4.
- 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.
Investec on RBL Bank
- Maintained ‘Buy’; raised price target to Rs 660 from Rs 630.
- Rapidly scaling multiple partnerships, creating niche in credit cards segment.
- Partnerships to be a source of high profitability.
- Visibility on RoA improvement is high on a two-year timeframe.
- Expect 10 basis points RoA improvement every year leading to 40 percent compounding in net profit.
Macquarie on Zee Entertainment
- Maintained ‘Outperformer’ with a price target of Rs 675.
- OTT viewership continues to scale up.
- Confident about ZEE’s strong near-to-medium-term outlook.
- ZEE5 remains crucial over the medium to long term.
- Recent stock correction provides an attractive entry point.
Deutsche Bank on UPL
- Maintained ‘Buy’ with a price target of Rs 890.
- Cross currency movements favorable for UPL so far.
- Constant currency revenue growth to meet upper end of guidance.
- Margins to also expand driven by backward integration.
- Trades at discount to Indian and global peers.
- Preferred pick in Indian agri-inputs sector.
Citi on Avenue Supermarts Analyst Meet
- Maintained ‘Sell’ with a price target of Rs 1,255.
- Management not concerned about slowing SSS or average bill sizes.
- Doesn’t expect upside to margins from current levels; Will pass on benefits to consumer.
- To focus on store ownership model which will benefit in long-term.
- Not worried on competition; Believes there is large consumption opportunity.
- Heavy discounting by large e-commerce players in not sustainable in FMCG.
- DMart’s e-commerce still miniscule and investments could continue.
JPMorgan on Avenue Supermarts Analyst Meet
- Maintained ‘Underweight’ with a price target of Rs 1,050.
- Key message: Consistency across business initiatives with small incremental changes.
- Focus to remain on competitive pricing, sharper product assortment, store additions and on fine tuning the e-commerce model.
- No plans for a loyalty program, unlike peers.
Macquarie on Ceat
- Maintain Outperform with TP of Rs 2,000.
- Management expects a revenue to compound at 12–17 percent over the next five years.
- Capex to peak in FY20E, to be funded through accruals and debt.
- Expect operating margins to improve over the fiscal 2018-2021.
- Expect earnings per share to compound at 26 percent over the fiscal 2018-2021, led by the sales volume compounding at 12 percent.
Deutsche Bank on Ceat
- Maintained ‘Buy’; cut price target to Rs Rs 1,800 from Rs 1,950.
- Investing in capacities to drive market share in truck and car segments.
- Company expects an average cost to increase 3-4 percent on a sequential basis, starting from July.
- Near term cash flows to be under pressure as company is entering high-capex phase.
- Preferred picks within tyre sector are Apollo Tyres and MRF.