ICICI, HDFC Twins Save The Week For Sensex, Nifty

Indian equity benchmarks rose sharply in the last hour of trade led by ICICI Bank and the HDFC twins to gain for a fifth straight week amid a tariff war between two of the world’s largest economies.

The S&P BSE Sensex rose 0.7 percent or 257 points to 35,690 and the NSE Nifty 50 index climbed 0.75 percent or 81 points to 10,828.

For the week, Sensex rose 0.19 percent while the Nifty ended with minor gains.

“Wait until the middle of July,” Salil Sharma, partner at Kapursharma.com told BloombergQuint by phone. That’s when he expects the trade spat between the U.S. and China to ease. “We will also have the earnings to watch out for,” he said.

In the meantime, Sharma expects the Nifty to trade in the range of 10,680-10,900. “A drop below 10,600 may lead to a further downside.”

In today’s trade, fifteen out of 19 sector gauges compiled by BSE ended higher led by the S&P BSE Healthcare index’s 1.3 percent gain. On the flipside, the S&P BSE Energy index was top loser, down 1.3 percent.

• Muthoot Finance has 16 lakh shares change hands in a single block. Stock 1.2 percent at Rs 384.50.

Buyers and sellers were not immediately known

Source: Bloomberg

RITES' Rs 466 crore initial public offer was subscribed 15.6 times as of 2:30 PM on the final day of subscription.

• Non-institutional bidder portion subscribed 17.18 times
• Retail portion subscribed 11.44 times
• Employee portion subscribed 0.89 times

Source: Company PR

Iran Oil Minister says:

• Some customers are cutting oil purchases
• Meeting with Saudi counterpart was 'good'
• Looking to remove over-compliance
• Political tensions are influencing current oil market
• See there is a likelihood in reaching agreement

Saudi Oil Minister says:

• Will fulfill 1/3rd of OPEC's share of supply boost
• Don't want to talk about what we would do without consensus
• Output would be based on nations' ability to produce
• A rise would take effect July, but impact by end of summer
• Will review performance at Algiers meeting in September
• Oil supply release will be 'gradual'

Indian equity benchmarks rose to intraday highs led by pharma, financial services and FMCG shares.

The S&P BSE Sensex rose 0.57 percent or 204 points to 35,636 and the NSE Nifty 50 index climbed 0.6 percent or 64 points to 10,806.

• Indian equity benchmarks were stuck in a narrow range as gains in ITC and HDFC were offset by losses in Reliance Industries and TCS.
• The S&P BSE Sensex rose 0.16 percent to 35,489 and the NSE Nifty 50 index gained 0.15 percent to 10,757.
• The overall breadth was negative as 1,352 shares were declining while 1,019 were advancing on the BSE.

Click here for more stock market statistics

Indian rupee appreciated for third day in a row to over 1-week high against the U.S. dollar.

The local unit rose as much as 0.32 percent or 22 paise to 67.76.

The Rs 600-crore initial public offering of Fine Organic Industries was fully subscribed on the last day of bidding. The IPO was subscribed 1.02 times till 12:45 PM.

• QIB portion subscribed 2.28 times
• Portion reserved for high net-worth individuals subscribed 0.13 times
• Retail portion subscribed 0.67 times

Source: Company PR

Nifty 10,700 put option was among the most active option contracts on the National Stock Exchange.

Premium on the contract fell 26 percent to Rs 39.20. Over 11,19 lakh shares were added to the open interest which stood at 59.62 lakh shares.

Click here to see the complete options chain

• Finolex Cables: The Pune-based electrical cable maker fell 3.3 percent to Rs 605. Trading volume was 10.2 times its 20-day average.
• MTNL: The Delhi-based state-run telecom service provider rose 7.6 percent to Rs 17.75. Trading volume was 7.7 times its 20-day average.
• Astral Polytechnik: The Ahmedabad-based plumbing system maker fell 0.6 percent to Rs 1,009. Trading volume was 10.1 times its 20-day average.
• GE T&D: The Noida-based power transmission and distribution equipment maker rose 3 percent to Rs 310.30. Trading volume was 7.1 times its 20-day average.

Shares of the Mumbai-based hotel chain operator fell as much as 1.67 percent to Rs 17.70 after it defaulted on interest payment of Rs 2.12 crore on bonds issued to LIC in 2008.

The company's operating cash flows are not sufficient to service its term loans and bonds, Hotel Leela said in an exchange notification.

• Reliance Industries has 23 lakh shares change hands in multiple blocks. Stock down 2 percent at Rs 1,011.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Vadodara-based fruit juice maker rose by its daily maximum limit of 5 percent for second day in a row after it said yesterday that it will announce its March quarter earnings on June 27.

The stock came under heavy selling after it delayed reporting March quarter earnings after its auditors resigned last month.

Sridhar Sivaram investment director at Enam Holdings told BloombergQuint that 2018 is the year for capital protection and building portfolios for 2019 and 2020.

Key highlights of the conversation:

• Seeing equilibrium coming back to market in terms of volatility and return expectation.
• Believe Trump to be a good negotiator, do not believe trade war concerns will escalate.
• China has more to lose, cannot afford a full-blown trade war.
• Emerging market currencies down 10-30 percent this year except India.
• Many opportunities opening due to fall in mid-cap space and consolidation in large-caps.
• Valuations have never been the starting point for investing.
• Look for profitability growth and its sustainability.

Shares of the Bengaluru-based drugmaker rose as much as 5.2 percent to Rs 1,420 after it got approval from drug authorities to import and market Durvalumab (ImfinziTM) in India.

Durvalumab provides a treatment to patient with locally advanced, unresectable Non-Small Cell Lung Cancer (NSCLC) and metastatic urothelial carcinoma, the company said in an exchange notification.

Shares of the debt-ridden textile manufacturer rose 5 percent to Rs 3.15 after the committee of creditors for Alok Industries approved a joint resolution plan submitted by Reliance Industries and JM Financial Asset Reconstruction company, according to two people in the know of the matter.

Shares of the Mumbai-based construction company turned flat after staging a sudden spurt of 10 percent as it won construction order worth over Rs 11,000 crore.

A consortium of Capacit'e Infraprojects, Tata Projects and CITIC Construction received the letter of acceptance from Mumbai Housing and Area Development (MHADA) for total contract value of Rs 11,744 crore for redevelopment of BDD chawls in Mumbai, the company said in an exchange notification.

Capacit'e Infraprojects' share in the consortium stands at 37.1 percent worth Rs 4,357.12 crore, the notification added.

Shares of the Delhi-based healthcare products maker rose as much as 13.78 percent, the most in over two months, to Rs 217.50 after it agreed to acquire majority stake in Italian medical device maker.

Poly Medicure has entered into an agreement with Plan 1 Health S.R.L to buy its 82 percent stake in Plan 1’s infusion and vascular access business, the company said in an exchange filing without giving financial cost of the acquisition.

Shares of the Gurugram-based heating and ventilation equipment maker rose as much as 2 percent to Rs 983.20 after Angel Broking initiated coverage on the stock with a buy for target price of Rs 1,272.

Angel Broking in a note said:

• Amber in a sweet spot with favourable industry trends.
• Lower penetration in India provides huge opportunity.
• Recent acquisitions to further boost its manufacturing capabilities.
• Reduced interest cost and limited capex to boost profits.
• Valuations are cheap; recent correction provided a very good entry point.

Shares of the Bhopal-based alcohol beverages maker rose as much as 5.42 percent, the most in over two weeks, to Rs 255 after its arm got approval for manufacturing IMFL.

Som Distilleries' subsidiary Woodpecker Distilleries & Breweries got approval for manufacturing Indian Made Foreign Liquor (IMFL) from its Hassan unit in Karnataka. It expects to start commercial production of IMFL from next month, the company said in an exchange filing.

Indian equity benchmarks edged lower weighed down by heavyweights like Reliance Industries, HDFC Bank and Larsen & Toubro amid weak global markets.

The S&P BSE Sensex fell 0.15 percent or 52 points to 35,383 and the NSE Nifty 50 index declined 0.15 percent or 17 points to 10,723.

Sixteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Energy index's 0.7 percent drop. On the other hand, the S&P BSE IT index was top gainer, up 0.3 percent.

The mid- and small-cap shares were also facing selling pressure as the S&P BSE MidCap index fell 0.2 percent and the S&P BSE SmallCap index declined 0.14 percent.

• Rupee opened higher at 67.85 per dollar against yesterday's close of 67.98.

Indian sovereign bonds are headed for their best week in 11 helped by the central bank's open market operation and the minutes of its last meeting which signaled that future rate hikes will be data dependent.

A section of the market too is saying that investors shouldn’t wish for rate hikes on their own and wait for the data. Investors will also watch out for the Rs 12,000 crore of bond auction later in the day. Yield on the 10-year note to stay in a range of 7.72-7.80 percent.

In the currency market, implied opening from the forwards suggest the pair may start trading at 67.85. Asia markets are in the red though the closely tracked South Korean won is up 0.2 percent. Traders expect a range of 67.70-68.10 a dollar in the day.

Motilal Oswal on ICICI Prudential

• Initiated ‘Buy’ with a price target of Rs 480.
• Growth leadership to sustain; operating metrics improving.
• Rising share of protection business to further boost margins.
• Product innovation to drive market share gains, boost profitability.
• Well-positioned to deliver long-term growth.
• Valuations attractive; improving return ratios to drive rerating.
• Bull case price target of Rs 560.

Angel Broking on Amber Enterprises

• Initiated ‘Buy’ with a price target of Rs 1,272; implying a potential upside of 32.5 percent from the last regular trade.
• Amber in a sweet spot with favourable industry trends.
• Lower penetration in India provides huge opportunity.
• Recent acquisitions to further boost its manufacturing capabilities.
• Reduced interest cost and limited capex to boost profits.
• Valuations are cheap; recent correction provided a very good entry point.

Goldman Sachs on ICICI Bank

• Maintained ‘Buy’ with a price target of Rs 375.
• Removed from conviction list given continued uncertainty around CEO.
• Fundamentals story remains intact.
• Bear case provides sufficient cushion.
• See ahead-of-the-curve NPL clean up compared to peer bank.

Jefferies on Tata Steel

• Maintained ‘Hold’; cut price target to Rs 584 from Rs 614.
• May be willing to adjust deal terms given recent divergence in margins.
• May be keen to push through the JV as net debt rising.
• Stronger pound, euro likely affected Tata Steel Europe margins in March quarter.
• Current quarter’s margins to be strong for both India and Europe.

Axis Cap on Shoppers Stop

• Maintained ‘Buy’; raised price target to Rs 650 from Rs 620
• Management reiterated its focus on core departmental store format.
• Plans of achieving 6-8 percent same-store sales growth over the next 2-3 years.
• Private labels, cosmetics to drive SSSG.
• To increase share of private brands through refreshed product range.
• To strengthen leadership position in beauty and cosmetics portfolio.

HSBC on Alkem Labs

• Maintained ‘Hold’; cut price target to Rs 2,030 from Rs 2,100.
• India outlook for mid-teen sales growth in medium term intact.
• US sales remain dynamic amid ongoing pricing erosion and competition pressure.
• Resolution of FDA Form 483 at Daman facility will be key stock catalyst.

IIFL on Gujarat Gas

• Maintained ‘Buy’ with a price target of Rs 875.
• Well placed to register 12 percent volume growth p.a. over FY18-20.
• Focus on quality conscious over price sensitive segments.
• Sector-beating earnings growth but valuations not cheap.

IDFC on Cipla

• Maintained ‘Outperform’ with a price target of Rs 639.
• US business gaining momentum with two new approvals.
• Niche injectable product approvals meaningful given low U.S. base.
• Comfort on ability to grow its US business at a rate faster than most large peers.

Who’s Meeting Whom

• Balaji Telefilms to meet Franklin Templeton MF, Sundaram MF and others on June 22.
• PSP Projects to meet investors from June 22-25.

Insider Trades

• Centrum Capital promoter BG Advisory Services LLP acquired 3.80 lakh shares on June 19.
• Sarda Energy & Minerals promoter Chhatisgarh Investments Limited acquired 90,000 shares on June 20.
• Waterbase promoter Karam Chand Thapar & Bros. (Coal Sales) Ltd acquired 49,229 shares on June 19.

(As reported on June 21)

Adani Ports

• Promoter Gautam S Adani Family Trust sold 4.99 crore shares or 2.4 percent equity at Rs 369.65 each.
• Promoter Pan Asia Trade and Investment Private Limited sold 52.08 lakh shares or 0.25 percent equity at Rs 369.65 each.
• Europacific Growth Fund bought 3.81 crore shares or 1.8 percent equity at Rs 369.65 each.
• Capital Research and Management Co A/C New World Fund Inc bought 74.75 lakh shares or 0.4 percent equity at Rs 369.65 each.
• American Funds Insurance Series A/C International Fund bought 57.62 lakh shares or 0.3 percent equity at Rs 369.65 each.

Trading Tweaks

• Tree House Education circuit filter revised to 10 percent.
• DCM Financial Services shifted to B group.
• Uniply Industries last trading day before stock split.

F&O Cues

• Nifty June futures ended trade at 10732, premium of 9 points.
• Max open interest for June series call at 11,000 strike price call option, open interest at 53 lakh shares.
• Max open interest for June series put at 10,700 strike price put option, open interest at 48 lakh shares.

• Thyssenkrupp works council cautioned against hasty Tata deal. (Bloomberg)
• HCL Technologies: Signed a five-year global IT infrastructure and application services deal with Nokia.
• AstraZeneca received marketing permission for Durvalumab (ImfinziTM) in India.
• Strides Shasun's rectal artesunate product received WHO pre-qualification.
• KPIT Technologies and Kinetiq announced strategic life sciences collaboration.
• Oberoi Realty allotted 2.4 crore equity shares at Rs 500 each via QIP to investors including Fidelity, Goldman Sachs etc.
• Karnataka Bank set export credit target of Rs 2,900 crore to support export sector.
• Havells to acquire remaining 31 percent stake in subsidiary Promptec.
• Tata Motors plans to launch around 50 commercial vehicles this fiscal.
• Nalco, Hindustan Copper to form JV to buy lithium mines.
• Som Distilleries arm received approval for manufacturing of Indian-made foreign liquor.
• JSW Steel may bid for ArcelorMittal’s Romanian plant. (Reuters)

• Fine Organic Industries IPO continues on day 3. Issue subscribed 0.39 times on day 2.
• RITES IPO continues on day 3. Issue subscribed 2.11 times on day 2.
• Second tranche of Bharat-22 ETF closes today.

• Denmark-Australia draw 1-1
• France beat Peru 1-0
• Croatia beat Argentina 3-0

Today’s match schedule

• Brazil versus Costa Rica at 5:30 PM IST
• Nigeria verus Iceland at 8:30 PM IST
• Serbia versus Switzerland at 11:30 PM IST

• Ruchi Soya case: Watch who you wed – the message in IBC’s section 29A
• SEBI revises IPO timeline, share buyback regulations
• Oil ministers back raising output despite Iran’s walk out
• The biggest deal boom in a decade will only get bigger. Here’s why...
• SEBI initiates enforcement action in NSE co-location case
• India’s hunt for lithium for electric vehicle boom to begin by March
• Intel executive bench is thin after outgoing CEO ousted rivals
• This four-year old Indian food startup is now a unicorn
• Derivatives rejig in India may spur squeeze in beaten up stocks
• U.S. weighs fresh China talks amid split on Trump trade team
• Did ICICI’s board exaggerate robustness of bank’s credit process?
• Intel is corporate America’s biggest #Metoo moment

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.37 percent to 10,694 as of 7:17 a.m.

Asian stocks fell, extending the worst week for regional equities since late March, amid concern global trade restrictions will curb growth. The dollar steadied and Treasuries pared gains.

Japan’s Topix index brought this week’s decline to more than 3 percent, while equities also dropped in South Korea and Australia.

Currencies

• The Bloomberg Dollar Spot Index was steady after falling 0.3 percent.
• The euro held at $1.1607.
• The pound bought $1.3248.
• The yen traded at 109.93 per dollar.

Commodities

• West Texas Intermediate was at $66 a barrel.
• Gold was little changed at $1,267.73 an ounce.

Here are some remaining events to watch out for this week:

• The Organization of Petroleum Exporting Countries meets in Vienna on Friday.
• Flash PMIs will be released in Germany, France and for the euro-zone.