Sensex, Nifty Scrape Gains At The End Of Volatile Session

Indian equity benchmarks gave up intraday gains to end little changed as gains in HDFC, TCS and Maruti Suzuki were offset by losses in Tata Motors, Reliance Industries and HDFC Bank.

The S&P BSE Sensex rose marginally to 35,490 and the NSE Nifty 50 index ended flat at 10,769.

Eleven out of 19 sector gauges compiled by BSE ended lower led by the S&P BSE Energy index's 1.15 percent drop. On the other hand, the S&P BSE Telecom index was top gainer, up 1.1 percent.

The mid- and small-cap shares underperformed their larger peers as the S&P BSE MidCap index fell 0.3 percent and the S&P BSE SmallCap index declined 0.6 percent.

Shares of the Chennai-based pharma company rose 5 percent to Rs 9.73 after the resolution professional placed the resolution plan from lngen Capital Group LLC before committee of creditors (CoC).

The resolution proposale received affirmative vote of 78.64 percent of the CoC by value in its favour, Orchid Pharma said in an exchange filing.

Shares of the Bengaluru-based liquor maker rose as much as 2.98 percent to Rs 694.15 after it acquired digital payments company Hip Bar for Rs 27 crore.

Shares of the Mumbai-based vehicle maker declined for a second day in a row and fell as much as 4.7 percent to hit fresh 52-week low of Rs 275.80.

Meanwhile, international brokerage firm BNP Paribas downgraded the stock to 'reduce' from 'hold' and slashed its target price to Rs 240.

Shares of the Pune-based real estate developer erased losses and rose as much as 1.76 percent to Rs 257.90 after it entered into a transaction with K2A Residential.

Kolte-Patil Developers will provide an exit to K2A Residential, which is holding a 49 percent stake in its subsidiary Kolte-Patil Real Estate Private Limited (KPRE) for a total consideration of 57.5 crore which shall be paid over the next six months, the company said in an exchange filing.

Shares of the Mumbai-based carmaker extended losses to the second day and fell as much as 2.85 percent to Rs 281.15 after BNP Paribas downgraded the stock to ‘reduce’ from ‘hold’ and lowered its target price to Rs 240 from Rs 305.

Nifty 10,800 strike price call was among the most active option contracts on the National Stock Exchange.

Premium on the contract rose 18 percent to Rs 39.30. Over 2.5 lakh shares were added to the open interest which stood at over 47.12 lakh shares.

Click here to see the complete options chain

Prime Minister Narendra Modi while addressing annual Asian Infrastructure Investment Bank said that India has emerged as a bright spot in the global economy which is driving the global growth.

Key highlights from PM Modis' speech at AIIB conferance:

• India is projected to grow at 7.4 percent in 2018
• Have liberalised FDI regime most sectors are on automatic route
• India together with AIIB is committed to sustainable and more conclusive economic growth
• India has jumped 42 places in World Bank's Ease of Doing Business
• Government committed to the path of fiscal consolidation
• Invite AIIB to invest $40 billion by 2020 and $100 billion by 2025
• Aim to create brownfield projects as separate asset class for infra investment
• GST implementation makes India a business-friendly spot
• Planned to setup 175 gigawatt
• Despite rising oil price, inflation has been in the mandated range
• Started projects like Bharatmala, Sagarmala and UDAN for better connectivity
• Government debt as percentage of GDP is consistently declining. India has achieved a rating upgrade after a long wait
• Our macro-economic fundamentals are strong with stable prices
• Rising disposable income in India is an investment opportunity
• Bharat Net working on improving last mile connectivity through internet
• UPI along with BHIM and Rupay cards have shown true potential of digital India
• Promoting investments in warehousing, cold storage, food processing and allied business to improve agriculture development

Shares of cement manufacturers were trading higher after Morgan Stanley in a report said that the cement manufacturers in north and central India have raised prices by Rs 5-15 per bag.

Shares of the Delhi-based oil explorer rose as much as 1.6 percent to Rs 211.75 after it made second hydrocarbon discovery in the on land KG Basin well Thanelanka-l in Andhra Pradesh.

• Himachal Futuristic Communications has 13.5 lakh shares change hands in a block deal. Stock up 1 percent at Rs 30.35.

Buyers and sellers were not immediately known

Source: Bloomberg

Chakri Lokapriya, managing director at TCG Asset Management told BloombergQuint in an interview that he likes to add ICICI Bank to his portfolio in tranches.

Key highlights of the conversation:

• Believe correction to be over for some pockets at least.
• Metals stocks have corrected but cyclical up trend remains intact.
• Tata Steel looks good post the correction.
• Motherson Sumi being impacted by trade war fears.
• Bajaj Finance reaching higher valuations for active fund managers.

• ITC has 11 lakh shares change hands in a block deal. Stock up 1.3 percent at Rs 266.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Hyderabad-based shrimp exporter rose as much as 18.78 percent, the most in nearly three weeks, to Rs 619 on the back of heavy volumes. Trading volume was 6.8 times its 20-day average.

The stock in today’s session went ex-bonus in ratio of one share for every two shares held and it also went ex-split with its face value sub-divided from Rs 2 to Re 1.

Meanwhile, speaking to BloombergQuint Alluri Indra Kumar of Avanti Feeds expects China to become major market for Indian shrimp producers.

Key highlights of the conversation:

• Feed utilisation levels are around 90 percent.
• Processed shrimp utilisation levels are around 60-70 percent.
• Expect China to become one of the major market for India.
• Expect FY19 profits to be lower compared to FY18.
• Have seen improvement in Chinese market as they have just turned importer from exporter.
• Expect raw material prices to come off a bit as good monsoons have started.
• Expect around 12-15 percent margins in Q1FY19.
• Last year raw material prices were low which aided the margins.
• On an average our margins should be 10-15 percent.
• Sluggish demand in U.S. market because of climate conditions.

Shares of the Ahmedabad-based stainless-steel pipe maker rose as much as 2.9 percent to Rs 965.90 after it received order worth Rs 125.51 crore.

The company has received order for supply of welded carbon steel pipes valued at Rs 125.51 crore which will be completed by March-April 2019, Ratnamani Metals said in an exchange filing.

Shares of the Noida-based internet based service provider rose as much as 10 percent, the most in nearly seven months, to Rs 1,287 after it increased stake in an online insurance startup PolicyBazaar.

In an interview to BloombergQuint, Chintan Thakkar, CFO at Info Edge said the company would be holding about 13.5 percent equity after the investment in PolicyBazaar.

Shares of the Mumbai-based airline rose as much as 1.57 percent to Rs 384 after it purchased 75 of Boeing Co.’s 737 Max aircraft for about $8.8 billion as it looks to continue rapid expansion in the world’s fastest-growing major aviation market.

The latest purchase brings the airline’s backlog for the narrowbody plane to 225, Jet said in a statement Monday.

Shares of the Mumbai-based private sector lender fell as much as 1.54 percent to Rs 285.25 after the market regulator favoured adjudication proceedings against ICICI Bank and its CEO Chanda Kochhar for alleged violation of listing disclosure norms, news agency Press Trust of India reported citing an unnamed official.

The report added that ICICI Bank may face a penalty of up to Rs 25 crore under the relevant SEBI regulations for such lapses, while the fine for Kochhar may go up to Rs 1 crore, besides other penal actions.

Indian equity benchmarks edged lower dragged by blue-chip stocks like Tata Motors, ICICI Bank, Vedanta and Power Grid amid weak global cues.

The S&P BSE Sensex fell 0.2 percent or 78 points to 35,398 and the NSE Nifty 50 index declined 0.16 percent or 16 points to 10,745.

Fifteen out of 19 sector gauges compiled by BSE were trading lower led by the S&P BSE Consumer Durables index's 0.5 percent drop. On the other hand, the S&P BSE Fast Moving Consumer Goods index was top gainer, up 0.4 percent.

The mid- and small-cap shares were in line with their larger peers as the Nifty Midcap 100 and Nifty Smallcap 100 indexes fell 0.2 percent each.

• Rupee opened lower at 68.16 per dollar against yesterday's close of 68.12.

The Indian rupee could come under pressure as global investors turn risk averse amid continued worries about an escalating exchange of trade and investment restrictions, triggered by the Trump administration.

Asian stocks extended a decline which could see portfolio outflows from Indian markets and which in turn could weigh on the rupee, traders said. The local currency ended weaker at 68.1250 per dollar on Monday and implied forwards suggest it could start trading marginally weaker at 68.14 per dollar.

Meanwhile, government bonds are seen trading in a range with hopes of additional bond purchases by the Indian central bank keeping yields under check.

The 10-year bond yield rose one basis points to 7.82 percent on Monday with any pullback likely to be shallow in the 7.75 percent-8 percent range, as the impact of the positive catalysts like RBI minutes and OMO fade, according to a DBS note.

India is to sell four bonds for Rs 12,000 crore on June 29 while seven states will sell bonds worth Rs 9,800 crore later in the day.

• All stock markets in Asia were trading lower ahead of opening of Indian markets.

Jefferies on Shoppers Stop

• Maintained ‘Buy’ with a price target of Rs 660.
• Management looking at improvement in private label mix & increasing share of beauty products.
• Strategy includes instore customer experience, customer service and omni channel.
• Management maintains guidance of 100 basis points improvement in margins in current and financial year.
• Company will be cutting down the sale season to six weeks from eight weeks in 2018-19.

Deutsche Bank on Axis Bank

• Maintained ‘Buy’ with a price target of Rs 580.
• Axis is entering a stronger and more durable growth environment.
• Corporate, SMEs and retail will remain strong while NPLs have peaked.
• Management confident that worst of asset quality is behind.
• Slippages to decline sharply; normalised credit cost trends from April 2020 onwards.
• Valuations are at lower than the past five-year average.

Motilal Oswal on Phoenix Mills

• Maintained ‘Buy’ with a price target of Rs 757.
• Mall additions brighten rental prospects.
• Higher space allocation toward F&B by resizing/adding mall space.
• Positives: strong operational performance, scalability and robust cash generation.

CLSA on UltraTech Cement

• Maintained ‘Buy’ with a price target of Rs 5,000.
• Significant year due to acquisition and integration of Jaiprakash Associate’s unit.
• Balance sheet turned net debt again but at comfortable levels.
• Industry to focus on profitability after volume chase in the previous financial year.
• Management expects 8 percent industry demand growth.

CLSA on Phoenix Mills

• Maintained ‘Buy’; raised price target to Rs 771 from Rs 757.
• Project acquisition spree provides path to doubling lease income.
• More malls, office developments to double leasable area.
• Expect 12 percent compounded growth rate in lease income over FY18-24
• Growth well-funded with private equity JV likely to do the bulk of the spending.

Morgan Stanley on Info Edge

• Maintained ‘Overweight’ with a price target of Rs 1,900.
• Investment in Etechaces (Policybazaar) signifies company's appetite to go for larger deals.
• Post this fund raising implied valuation of Etechaces would be over $1 billion.
• Value assigned to Info Edge's stake goes up to Rs 63 per share from Rs 26.

Who's Meeting Whom

• Lemon Tree Hotels to meet investors from June 26-27.
• Galaxy Surfacants to meet investors from June 26-29.
• Future Lifestyle Fashions to meet investors from June 26-27.

Insider Trades

• Raymond promoter JK Investors (Bombay) Ltd acquired 16,000 shares from June 20-21.
• Centrum Capital promoter group acquired 1.2 lakh shares on June 21.
• Cosmo Films promoter acquired 6,700 shares from June 21-22.

(As reported on June 25)

Bulk Deals

Tube Investments of India

• Promoter Ambadi Investements sold 16.15 lakh shares or 0.88 percent equity at Rs 222 each.
• Enam Securities Pvt acquired 11.7 lakh shares or 0.64 percent equity at Rs 222 each.

Trading Tweaks

• New India Assurance Company’s last trading day before going ex-bonus.
• Filatex India last trading day before stock split.
• Karur Vyasa Bank to issue bonus shares in the ratio 1:10 (one share for every 10 held); Board approves fund raising of Rs 1,200 crore.

F&O Cues

• Nifty futures ended at 10,758, with a discount of 4 points versus premium of 12 points.
• Nifty futures added 11.8 lakh shares in open interest.
• Nifty Bank futures shed 1.6 lakh shares in open interest.
• Maximum open interest for June series call seen at 11,000 strike price call option contract, OI at 54.9 lakh shares.
• Maximum open interest for June series put seen at 10,700 strike price put option contract, OI at 46.9 lakh shares.

• Jet Airways buys additional 75 Boeing planes to match rivals
• Ratnamani Metals & Tubes receives pipe orders worth Rs 125.51 crore.
• Info Edge and Soft Bank arm to jointly invest $45 million each for 8.93 percent stake in Etechaces.
• NOCIL commissions phase 1 of expansion of Rubber Chemical plant in Navi Mumbai.
• United Spirits acquires 26 percent stake in digital payments company Hip Bar for Rs 27 crore.
• Oil India discovers second hydrocarbon reserves in KG Basin in Andhra Pradesh.
• 5paisa Capital increases FPI limit to 100 percent, NRI Investment limit up to 24 percent.

• Varroc Engineering's Rs 1,950 crore three-day share sale via initial public offering begins today. Price band Rs 965-967 per share.

• Petrol price cut for sixth straight day and diesel for a fourth day in a row in Delhi.

• Iran draws with Portugal 1-1
• Spain draws with Morocco 2-2
• Saudia Arabi beat Egypt 2-1
• Uruguay beat Russia 3-0

Today’s Match Schedule

• Australia versus Peru at 7:30 PM IST
• Denmark versus France at 7:30 PM IST
• Nigeria versus Argentina at 11:30 PM IST
• Iceland versus Croatia at 11:30 PM IST

• Modi’s health insurance plan will be bigger than planned
• SEBI favours adjudication proceedings against ICICI Bank, Chanda Kochhar
• JLR raises spending in bid to offer electric cars
• Google tackles Facebook in India with hyper-local social network
• This is India’s newest fintech unicorn
• Mnuchin suffers setback in U.S. plan to limit China investments
• Harley to move production out of U.S. to avoid EU tariffs
• China and Europe warn trade war could trigger global recession
• Erdogan fought hard and won Turkey’s election unfairly

Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India fell 0.2 percent to 10,734 as of 6:34 a.m.

Asian equities extended a decline in global stocks, and the yen appreciated, as investors continued to worry about an escalating exchange of trade and investment restrictions, triggered by the Trump administration.

Shares opened lower in Japan and fell in Australia and South Korea, while futures signaled losses for Hong Kong equities after the S&P 500 Index had its biggest slide since April and European bourses declined.

Currencies

• The Bloomberg Dollar Spot Index was little changed.
• The yen gained 0.2 percent to 109.61 per dollar, near the middle of its trading range since the start of last month.
• The euro bought $1.1702.
• The pound traded at $1.3278.

Commodities

• West Texas Intermediate crude rose 0.3 percent to $68.30 a barrel.
• Gold rose 0.1 percent to $1,266.80 an ounce.
• LME copper fell 0.6 percent $6,718 a metric tonne.

These are key key events coming up this week:

• 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.