All You Need To Know Going Into Trade On June 19
The yen jumped Asian stocks dropped alongside U.S. equity futures after President Donald Trump threatened to slap tariffs on more Chinese goods.
Japanese and South Korean shares retreated and S&P 500 Index futures declined. Steeper slides were seen in Hong Kong, China and Taiwan as traders returned from holidays in those markets Monday, while shares in Australia outperformed.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.5 percent lower at 10,742 as of 6:50 a.m.
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Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks slipped yesterday following stock declines in Europe and Asia amid concern over the escalating protectionist standoff between China and the U.S.
- European stocks tumbled, surrendering what was left of their sharp gains made after the European Central Bank’s dovish tone last week, amid growing concern about a potential U.S.-China trade war.
- Futures on the S&P 500 fell 0.5 percent.
- Japan’s Topix index slid 0.3 percent.
- Hang Seng futures were about 0.6 percent lower.
- Gold rose 0.3 percent to $1,281.64 an ounce.
- WTI oil slipped 0.4 percent to $65.60 a barrel after rising 1.2 percent on Monday.
- Brent crude traded 0.4 percent lower at $75.04 a barrel.
- Aluminium ended 0.7 percent higher at $2,221 per metric tonne
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Here are some key events coming up this week:
- 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
- ICICI Bank named Sandeep Bakhshi as its chief operating officer for five years. Chanda Kochhar will go on leave till an independent probe into allegations of impropriety against her is completed.
- Goa Carbon says operations at Paradeep unit temporarily halted due to labour issues.
- Titan sold its entire stake in Titan Time Products to Danlaw Technologies for Rs 18.5 crore.
- Borosil Glass Work approves 3:1 bonus issue.
- IDBI Bank hikes MCLR by 20 basis points across tenors.
- CIL Nova Petrochemicals: Asia Investment Corporation Mauritius Ltd bought 1.70 lakh shares or 0.6 percent equity at Rs 29.94 each.
- Promoter Digital Satellite Media and Broadband Pvt. Ltd. sold 70.58 lakh shares or 0.8 percent equity at Rs 14.5 each.
- JSGG Infra Developers LLP bought 70.58 lakh shares or 0.8 percent equity at Rs 14.5 each.
Who’s Meeting Whom
- PSP Projects to meet Wellington Management Co LLP and Redwood Investments LLC on June 19.
- Shriram Commercial Vehicle Finance to meet Reliance Life, TCG Management and others on June 19.
- Tata Steel to meet Anvil Wealth Management on June 19.
- Everest Kanto Cylinders promoter Puneet Khurana acquired 1.75 lakh shares on June 14.
- Centrum Capital promoter BG Advisory Services LLP acquired 51,000 shares on June 14.
- Mercator Ltd promoter Harish Kumar Mittal acquired 22,000 shares on June 15.
- Vikas Eco Tech promoter Ketav Multicorp Pvt Ltd acquired 5 lakh shares on June 15.
- Rupee closed at 67.99/$ on Monday from 68.02/$ on Friday.
Top Gainers And Losers (Month-To-Date)
- Nifty June futures closed trading at 10,789.6 discount of 10 points versus 3 points.
- June series: Nifty open interest up 1 percent and Bank Nifty open interest up 3 percent.
- India VIX ended at 12.3, up 2.5 percent.
- Max open interest for June series at 11,000 Call (open interest at 46.8 lakh, up 8 percent).
- Max open interest for June series shifts to 10,700 Put (open interest at 49.6 lakh, up 3 percent).
- In ban: Dewan Housing, Infibeam, Jet Airways, Just Dial
- New in ban: Infibeam
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.
- Nifty PCR at 1.51 versus 1.57
- Nifty Bank PCR at 0.81 versus 0.76
Stocks Seeing High Open Interest Change
PhillipCapital on Kotak Mahindra Bank
- Initiated ‘Buy’ with a price target of Rs 1,545.
- Digital strategy of ‘811’ has seen early success.
- Kotak well‐positioned to capture loan market‐share.
- Expect net interest margins to rise by 19 basis points over FY19‐21.
- Expect loan to compound at 22 percent over the next three years.
- See no downside to asset quality from here.
- Expect earnings to compound at 28 percent through the financial years till March 2021, resulting in FY21 RoA to double.
Nomura on Tejas Networks
- Maintained ‘Buy’ with a price target of Rs 410
- The company upbeat on converged offerings and growth prospects in the U.S.
- Tejas expects to recoup revenue loss in the U.S. in the previous financial year.
- Management maintains revenue growth guidance to compound at 20 percent over the fiscal 2017-2020.
Citi on Tejas Networks
- Maintained ‘Buy’ with a price target of Rs 430
- Expect topline growth to revive in the current financial year.
- Heavy investment in R&D has helped create competitive advantage.
- Three macro trends in India would drive demand.
- Early signs of investment in direct overseas selling is starting to pay off.
Motilal Oswal on Maruti Suzuki
- Maintained ‘Buy’ with a price target of Rs 10,525.
- Negligible impact of higher fuel prices.
- Alternative fuel portfolio to benefit from higher fuel prices.
- RM inflation impact managed by cost-cutting initiatives and price hikes.
- Lower royalty, localization at Gujarat plant to drive margin expansion.
Angel Broking on Bata
- Initiated ‘Buy’ with a price target of Rs 896.
- Shift in trend towards the organized sector to propel growth.
- Strong retail stores expansion plan to boost growth.
- New launches and higher ad spends to boost women’s segment.
- Expect revenue ad net profit to compound at 16 percent and 19 percetn respectively over the fiscal 2018-2020.
Morgan Stanley on TCS
- Maintained ‘Overweight’ with a price target of Rs 2,010.
- Recent success on large deals provide confidence on revenue growth.
- Believe improving revenue growth and rupee depreciation to act as tailwinds.
- Prefer TCS despite high valuations.
- Believe TCS could remain an interesting idea for the next 6-12 months.
Morgan Stanley on Reliance Industries
- Maintained ‘Overweight’ with a price target of Rs 1,241.
- Expect 40 percent rise in refining margins by March 2021 from Diesel, IMO, gasifiers complexity.
- Expect company to generate $3.5 billion as free cash flow over the next three years.
- Expect return ratios to climb back to 15 percent levels in two years.
- Believe Jio could see strong subscriber adds, as its tariffs have higher value proposition.