All You Need To Know Going Into Trade On June 18

Asian stocks declined amid investor concern the exchange of threats between China and the U.S. is the precursor of a full-blown trade war.

Stocks fell in Japan as the yen advanced, while S&P 500 Index futures pointed to losses. South Korean equities also slipped , while they fluctuated in Australia. China and Hong Kong, markets more sensitive to deepening trade tensions, were closed for holidays.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.5 percent lower at 10,775.50 as of 7:50 a.m.

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

U.S. Market Check

• Stocks fell on the final day of a week that included the U.S.-North Korea summit, major central bank meetings and escalating trade tensions between Washington and Beijing.
• The S&P 500 Index declined in heavy trading on a quadruple-witching Friday, a quarterly event when futures and options contracts on indexes and individual stocks expire.

Europe Market Check

• European stocks dropped as news that the U.S. will impose tariffs on $50 billion of Chinese imports trickled through to the markets, extending losses after President Donald Trump threatened China with further measures.

Asian Cues

• The Topix index fell 0.8 percent.
• Australia’s S&P/ASX 200 Index was little changed.
• Kospi index fell 0.2 percent.
• S&P 500 Index futures lost 0.4 percent.
• The MSCI Asia Pacific Index declined 0.5 percent.

Commodity Cues

• West Texas Intermediate crude decreased 1.2 percent to $64.30 a barrel, adding to a 2.7 percent slide on Friday.
• Gold rose 0.2 percent to $1,281.71 an ounce.
• Brent crude traded 0.5 percent lower at $73.04 a barrel.
• LME copper lost 0.1 percent to $7,013 per metric ton, after sinking 2.2 percent on Friday.
• Aluminium ended 2.6 percent lower at $2,206 per MT.

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Here are some key events coming up this week:

• On Monday, the U.K. House of Lords takes up the Brexit withdrawal bill after dramatic votes in the Commons, with details likely to emerge on the amendment that quelled a revolt by pro-EU Conservatives.
• European Central Bank President Mario Draghi speaks at ECB’s Forum on Central Banking on Tuesday.
• U.S. housing starts probably rose in May, data out Tuesday is expected to show.
• Draghi, Reserve Bank of Australia Governor Philip Lowe, Bank of Japan Governor Haruhiko Kuroda, and Fed Chairman Jerome Powell join a panel on central bank policy in Sintra, Portugal, on Wednesday.
• Thailand, Philippines and Brazil central bank decisions due Wednesday.
• Bank of England rate decision on Thursday.
• Also on Thursday: U.S. jobless claims, New Zealand GDP, South Korea export data.
• The Organization of Petroleum Exporting Countries meets in Vienna on Friday.

Stocks To Watch

• Vedanta will replace Dr. Reddy’s as part of the Sensex from today.
• U.S. court restrains Dr Reddy’s from selling generic variant of Suboxone.
• PNC Infratech says lowest bid for Purvanchal Expressway cancelled.
• NBCC expects 40 percent revenue growth in FY19; Eyes Africa contracts.
• Panacea Biotech along with partner Apotex settle patent dispute with Celgene Corp.
• Avana Logistek, an associate company of Shreyas Shipping, files DRHP with SEBI for IPO.
• HCL Infosystems concludes sale of entire stake in HCL Services to Karvy Data Management Services.
• Kanoria Chemicals and Industries to set up Formaldehyde plant with 1 lakh tonne per annum in Andhra Pradesh.
• ICICI Bank Board may name Sandeep Bakshi as ICICI Bank Interim CEO: (Economic Times)
• Telecom Department may clear Vodafone-Idea merger on Monday (PTI).
• Tata Steel: Thyssenkrupp shareholders are said to be sceptical of Tata deal

Indian ADRs

Top Gainers And Losers

Insider Trades

• Panama Petrochem promoter acquired 20,211 shares from June 12-14.
• Century Plyboards promoter Vishnu Khemani acquired 10,505 shares from June 14-15.
• KM Sugar Mills promoter Uma Devi Jhunjhunwala sold 30,924 shares on June 15.
• Vardhman Special Steels promoter Sachit Jain acquired 10,000 shares from June 13-14.

(As reported on June 15)

Who’s Meeting Whom

• Rallis India to meet Tattva Capital and Enam Asset Management from June 18-22.
• Wabco India to meet investors on June 19.
• Voltas to meet ICICI Securities, Kotak Securities and other investors from June 19-20.
• TVS Motor to meet JP Morgan India on June 19 and White Oak Capital on June 27.

Bulk Deals

• Pokarna: Ashish Kacholia sold 3.60 lakh shares or 1.2 percent equity at Rs 177.9 each.
• Balrampur Chini: California Public Employees Retirement System bought 12.20 lakh shares or 0.5 percent equity at Rs 73.84 each.
• Torrent Pharma: Lavender Investments sold 9.01 lakh shares or 0.5 percent equity at Rs 1475 each.
• Indiabulls Real Estate: Indiabulls Real Estate bought 26 lakh shares or 0.5 percent equity at Rs 172.79 each.
• Vakrangee: Baron Emerging Markets Fund sold 1.02 crore shares or 1 percent equity at Rs 41.5 each.
• CIL Nova Petrochemicals: Asia Investment Corporation Mauritius bought 1.40 lakh shares or 0.5 percent equity at Rs 29 each.

F&O Cues

• Nifty June Futures ended at 10,814.6, with a discount of 3 points versus premium of 5.9 points.
• June series- Nifty open interest (OI) up 3 percent and Bank Nifty OI down 3 percent.
• India VIX ended at 12.07, down 0.2 percent.
• Max OI for June series call at 11,000 strike price call option, OI at 43.5 lakh shares, up 5 percent.
• Max OI for June series put at 10,700 strike price put option, OI at 48 lakh shares, down 3 percent

F&O Ban

• In ban: Dewan Housing, Jet Airways, Just Dial
• Out of ban: Balrampur Chini
• New in 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 1.57 versus 1.54
• Nifty Bank PCR at 0.76 versus 0.87

Brokerage Radar

Motilal Oswal on TCS

• Maintained 'Neutral' with a price target of Rs 1,750
• Buyback slightly negative on EPS; positive on return ratios.
• To return 40 percent of cash to shareholders.
• 75 percent payout maintained historically.
• Acceptance likely to be high on retail.

CLSA on Midcap Strategy

• Prefer stocks with growth visibility.
• Consumer discretionary and building materials space have seen strongest earnings .
• Like hotels as a cyclical recovery play.
• Key Buy: Apollo, Arvind, Godrej properties, Havells, Jubilant, Lemon Tree, Prestige and Ramco Cement.
• Key Sell: Pidilite and Voltas.

Morgan Stanley on Dr. Reddy's Lab

• Maintained ‘Overweight’ with a price target of Rs 3,465.
• Received temporary restraining order from U.S. District Court on gSuboxone.
• Winning PI motion over the next few weeks will be important.
• Expect earnings recovery led by complex launches in the U.S., momentum in EM business, and scaling up IP portfolio.

Credit Suisse on L&T

• Maintained ‘Outperform’ with a price target of Rs 1,700.
• Exceptionally strong domestic inflows continue.
• Private sector ordering still continues to be low in single digits.
• Expect very strong inflows, execution pick up, steady profitability across segments.
• Valuations still look reasonable.
• Investment cycle is building up can add upside visibility.