All You Need To Know Going Into Trade On June 15

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 0.3 percent lower at 10,783.50 as of 6:45 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 closed higher on gains by big technology and media companies, outweighing laggard financial and industrial shares.
• The yield on 10-year Treasuries fell three basis points to 2.94 percent.

Europe Market Check

• The European Central Bank’s signal that interest rates will stay at historic lows through the summer of 2019, or longer, caused European stocks to shoot higher, and sent the euro skidding versus the dollar.

Asian Cues

• Nikkei 225 futures rose 0.6 percent in Singapore.
• S&P/ASX 200 futures rose 0.5 percent.
• Hang Seng futures rose 0.2 percent.
• The MSCI Emerging Market Index decreased 0.9 percent Thursday to the lowest in almost two weeks.

Commodity Cues

• West Texas Intermediate crude rose 0.5 percent to $66.95 a barrel.
• Brent crude traded a little changed at $75.97 per barrel.
• Gold climbed 0.2 percent to $1,302.42 an ounce.
• LME copper sank 1.1 percent to $7,177 per metric ton, the biggest drop in three weeks.

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.

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Here are some key events coming up this week:

• The Bank of Japan June monetary policy decision and news conference is Friday.

Economic Data To Watch

India May trade balance, estimate $14.3 billion deficit, prior $13.7 billion deficit.

• India May exports YoY, no estimate, prior 5.2 percent
• India May imports YoY, no estimate, prior 4.6 percent

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.

Indian ADRs

Top Gainers And Losers

Trading Tweaks

• 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.

Insider Trades

• 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)

Economic Data

• 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.

Bulk Deals

• GPT Infraprojects: Ampersand Growth Opportunities Fund Scheme-1 sold 1.97 lakh shares or 0.68 percent equity at Rs 159 each.

Satin Creditcare Network

• Goldman Sachs Singapore PTE acquired 3.59 lakh shares or 0.73 percent equity at Rs 378.7.
• DBS International (Asia) Ltd. sold 3.59 lakh shares or 0.73 percent equity at Rs 378.7.

F&O Cues

• 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.

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 1.54 versus 1.62
• Nifty Bank PCR at 0.87 versus 1.04

Fund Flows

Brokerage Radar

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.