All You Need To Know Going Into Trade On June 25

Asian stocks were off to a muted start as investors assessed a loosening of policy in China amid ongoing trade tensions.

Japanese stocks fluctuated, while shares gained in Australia and fell in South Korea. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, erased early gains traded 0.5 percent lower at 10,784 as of 8 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 climbed on Friday following gains in Europe as OPEC’s plans to boost output less than some investors had anticipated sent oil on a tear.

Europe Check

European shares rebounded, paring a weekly loss, as higher oil prices buoyed the energy industry.

Asian Cues

• The Topix index was little changed.
• Australia’s S&P/ASX 200 Index gained 0.2 percent.
• South Korea’s Kospi index fell 0.4 percent.
• Futures on Hong Kong’s Hang Seng Index rose 0.2 percent.
• Futures on the S&P 500 Index slid 0.1 percent.
• The yen added 0.1 percent to 109.83 per dollar.
• Australia’s 10-year bond yield was steady at 2.64 percent.

Commodity Cues

• West Texas Intermediate crude was little changed at $68.60 a barrel after surging nearly 5 percent on Friday.
• Brent crude fell 2.2 percent lower ar $73.92 per barrel.
• Gold traded at $1,270.74 an ounce.
• LME copper gained 0.6 percent to $6,829 a metric tonne.
• Aluminium ended 0.1 percent lower $2,193.25 per metric tonne.

These are key key events coming up this week:

• June 25-29: India’s key industries output data for May; prior 4.7 percent
• German Chancellor Angela Merkel holds private talks with leaders of the other parties in her coalition government on refugee policy and euro-area reforms in Berlin Tuesday.
• New Zealand and Indonesia monetary policy decisions on Thursday.
• U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.
• China manufacturing and non-manufacturing PMI are due on Saturday.

Indian ADRs

Stocks To Watch

• Dish TV offered public sale of 50 crore shares at Rs 74 each representing 26 percent of emerging voting capital.
• HDFC, Kotak Mahindra Bank competing for controlling stake in PNB Housing Finance.
• Symphony acquired 95 percent stake in Australian cooling appliances company for Rs 220 crore.
• Biocon received EIR from U.S. FDA for sterile drug product facility in Bangalore.
• Phoenix Mills arm acquired retail development in Indore for Rs 234 crore; to add 1.1 million square feet of retail space.
• Indian Hotels clarified that it has not acquired The Connaught hotel.
• Avanti Feeds approved bonus issue of 1:2; record date at June 27.
• 3M India to acquire 3M Electro & Communication Ind Pvt Ltd. for Rs 590 crore.
• Alok Industries confirmed that its committee of creditors has approved resolution plan submitted by RIL-JM Financial ARC.
• Wheels India mull 1:1 bonus share issue.
• City Union Bank to issue 1:10 bonus shares; record date at July 11.
• Unichem Lab to launch generic Tadalafil after filing ANDA with U.S. FDA.
• Power Grid CMD said it will launch electric vehicle charging stations in Hyderabad, Gurugram and Chennai.
• Fortis Healthcare to announce Q4 and FY18 results today.

Bulk Deals

• Asian Hotels (West): Promoter Chaman Lal Gupta & Sons HUF sold 1 lakh shares or 0.87 percent equity at Rs 322.98 each.

Zee Media Corporation

• Promoter Arm Infra and Utilites Pvt sold 50 lakh shares or 1.06 percent equity at Rs 29.5 each.
• JSGG Infra Developers LLP acquired 50 lakh shares or 1.06 percent equity at Rs 29.5 each.

Who’s Meeting Whom

• DCM Shriram to meet Edelweiss Financial Services Ltd and Securities Investment Management Pvt Ltd from June 25-26.
• ITC to meet investors from June 25-26.
• PI Industries to meet HDFC Life Insurance and other investors from June 25-29.
• Crompton Greaves to meet Enam AMC, Sundaram AMC and other investors from June 25-29.
• Tata Steel to meet Emso Asset Management, DoubleLine Capital LP and Eastspring Investments from June 26-27.

Insider Trades

• Centrum Capital promoter group acquired 2 lakh shares on June 20.
• Man Infraconstruction promoter Vatsal P Shah acquired 54,000 shares on June 21.

Trading Tweaks:

• Swaraj Automotives, Millitoons Entertainment and Zen Technologies placed under ASM.
• Uniply Industries ex date for stock split to Rs 2 from Rs 10 per share.
• Container Corporation of India Ltd last trading day before stock split to Rs 5 from Rs 10 per share.
• Avanti Feeds last trading day before stock split and bonus issue.

IPO Check

• Fine Organic IPO subscribed 8.7 times on the final day.
• RITES IPO subscribed 66.7 times on the final day.

Rupee

• Rupee closed at 67.83/$ on Friday from 67.99/$ on Thursday.

F&O Cues

• Nifty futures end trade at 10834, premium of 12 points vs 4 points earlier.
• Nifty futures shed 4.1 lakh shares in open interest.
• Nifty Bank futures add 2.3 lakh shares in open interest.
• Max open interest for June series at 11,000 Call (open interest at 47.6 lakh).
• Max open interest for June series at 10,700 Put (open interest at 57.1 lakh).

F&O Ban

• In ban: DHFL, JP Associates, Infibeam, CG Power and IDBI Bank.
• New in ban: IDBI Bank.

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 1.65 from 1.48.
• Nifty Bank PCR at 1 from 0.81.

Fund Flows

Brokerage Radar

Edelweiss on Cadila Healthcare

• Maintained ‘Buy’ with a price target of Rs 510.
• U.S. would continue to deliver strong growth despite the expected decline in gLialda.
• Domestic business is likely to get back to double-digit growth after two weak years.
• Like company for growth outlook, robust branded portfolio and lean regulatory track record.

Edelweiss on Bajaj Electricals

• Maintained ‘Hold’ with a price target of Rs 555.
• Management expects the consumer business to stabilise in six months.
• RREP implementation’s adverse impact is largely behind.
• Revamping strategy and sharpening focus on in‐house capability.
• Product ramp up and market share gain key to growth.

HSBC on Tata Power

• Maintained ‘Hold’ with a price target of Rs 96.
• Rising coal prices and divestment of non-core assets are positives for the company.
• Delay in receipt of payment on sale of coal mine Arutmin is a drag.
• Resolution of its Mundra power project will also remain a drag.
• Lower earnings by 11 percent and 27 percent for the current and the next financial year.

Nomura On SBI Life

• Maintained ‘Buy’ with a price target of Rs 880.
• Risk-reward better now as valuations 20 percent lower than listing.
• Company will continue to deliver industry-leading growth.
• Focusing more on protection business where it lagged peers in the previous financial year.
• Margins to expand to more than 18 percent by March 2020 despite conservative tax changes.

Citi on Crompton Greaves Consumer

• Maintained ‘Buy’ with a price target of Rs 325.
• Premium fans continue to drive market share gains in fans.
• Lighting opportunity continues to be huge.
• Opportunity to gain share in geysers and coolers.
• Expect the company to deliver 15 percent sales in the current financial year.

CLSA on Tata Motors

• Maintained ‘Sell’ with a price target of Rs 295.
• Big focus on portfolio electrification.
• Cautious on demand outlook due to diesel uncertainty, Brexit and weak demand cycle in the West.
• Targeting internal cost controls; cash flow to remain under pressure near-term.
• Remain negative on JLR given multiple headwinds.