Investors look at stock information on computer screens at a securities brokerage in Hong Kong, China (Photographer: Justin Chin/Bloomberg)

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.
All You Need To Know Going Into Trade On June 18

Also read: Xi to Counter Trump Blow for Blow in Unwanted Trade War

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.
All You Need To Know Going Into Trade On June 18

Also read: Merkel at Risk as German Coalition Crisis Enters Critical Phase

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.

Also read: Japan’s May Exports Hold Steady Amid Trade-War Anxiety

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.

Also read: Brokerages Are Said to Seek Tax Easing for Offshore India Trades

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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

Also read: TCS Announces Rs 16,000-Crore Buyback, Again

Indian ADRs

All You Need To Know Going Into Trade On June 18

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
All You Need To Know Going Into Trade On June 18

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.