The bell used when introducing new stocks stands in front of the stocks quotations’ screen in Shenzhen Stock Exchange, in Shenzhen, China (Photographer: Lucas Schifres/Bloomberg News)

All You Need To Know Going Into Trade On June 28

Asian stocks fell Thursday and the yen pushed higher as traders remained skeptical about the Trump administration’s announcement of less harsh measures on Chinese investments.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,637.50 as of 6:30 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 fell to the lowest level since May and Treasuries rallied amid renewed concern that the Trump administration will crack down on Chinese investment.
  • The yield on 10-year Treasuries held at 2.83 percent after falling five basis points.

Europe Check

  • European stocks ended higher aided by chemical and oil shares, as some buyers weigh U.S. demands for allies to end all imports of Iranian oil by Nov. 4.

Asian Cues

  • Japan’s Topix index fell 0.6 percent.
  • Australia’s S&P/ASX 200 Index lost 0.2 percent.
  • South Korea’s Kospi index declined 0.6 percent.
  • Futures on Hong Kong’s Hang Seng advanced 0.5 percent.
  • S&P 500 futures rose 0.1 percent. The S&P 500 fell 0.9 percent.

Also Read: As China Markets Plunge, Here's How Vital Signs Look Versus 2015

Commodity Cues

  • Gold gained 0.1 percent to $1,253.66 an ounce.
  • West Texas Intermediate crude declined 0.4 percent to $72.50 a barrel in New York after rallying 3.2 percent.
  • Brent crude traded 0.1 percent lower at $77.58 a barrel.

Shanghai Exchange

  • Steel traded higher; up 2.1 percent.
  • Aluminium traded higher for second day; up 0.5 percent.
  • Zinc traded higher for second consecutive session; up 2.4 percent.
  • Copper extended gains for the second day; up 0.5 percent.
  • Rubber logs second day of gains; up 1.4 percent.

Stories You Might Have Missed

  • Harley is enduring a third day of attacks on Twitter by Donald Trump.
  • Is it too early for fake meat?
  • The conspiracy to put Maduro on trial was thwarted last month, and several dozen secret arrests followed.
  • Tesla CEO reacts to downbeat Model 3 report in internal email.
  • America’s airspace is a finite resource, and the growth of commercial launches like SpaceX has airlines worried.
  • Apple, Samsung declare peace in biggest modern tech patent fight
  • China's push for more babies is proving costly.
  • Facebook payout in Oculus copyright spat cut to $250 Million.
  • Vietnam forces Facebook and Google to pick privacy or growth.
  • Public will get to see Da Vinci masterpiece that fetched $450 million.
  • An alpine Bitcoin bunker wants to be your next Swiss Bank account.
  • Welcome to Waltonville, Where the world’s richest family reigns.
  • Madison Square Garden explores spinoff of Knicks, Rangers teams.
  • Defending champion Germany ruled out of FIFA World Cup.

Here are some key events coming up this week:

  • Indonesia monetary policy decision 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.

Stocks To Watch

  • Thyssenkrupp, Tata Steel are said closing in on JV Deal (Reuters).
  • Fortis Healthcare to extend deadline for submission of bids.
  • Bank of Maharashtra clarified exposure of Rs 96.52 crore to DS Kulkarni.
  • Karnataka Bank hiked deposit interest rates by 10 basis points to 7.35 percent across various tenors.
  • Mercator arm gets mining lease in Gujarat for 20 years; 23 million barrels of oil to be exploited.
  • Talwalkars Lifestyles to be listed on both exchanges from June 29.
  • Exide Industries entered into a joint venture with Leclanche SA to build lithium-ion batteries.
  • GMR Infra declared as selected bidder for development of a commercial port located at one of strategic nodes of the Vizag. Port will have initial capacity of 16 MT.

Bulk Deals

  • Tasty Bite Eatables: Jupiter India acquired 30,000 shares or 1.17 percent equity at Rs 7485 each.

Zee Media Corporation

  • Promoter Arm Infra and Utilities Pvt sold 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.
  • JSGG Infra Developers LLP acquired 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.

Indian ADRs

Who’s Meeting Whom

  • Eicher Motors to meet White Oak on June 28 and Manulife Asset Management on June 29.
  • Endurance Technologies to meet Axis Mutual Fund, Motilal Oswal Mutual Fund and other investors on June 28.
  • Aster DM Healthcare to meet investors on June 29.

Insider Trades

  • Cosmo Films promoter acquired 15,000 shares on from June 25-26.
  • Visaka Industries promoter group acquired 1,700 shares on June 25.
  • Man Industries promoter Rameshchandra Mansukhani acquired 17,000 shares on June 26.
  • Trident Ltd promoter acquired 39,000 shares on June 26.

(As reported on June 27)

Trading Tweaks

  • Nila Infrastructures circuit filter revised to 20 percent.
  • Jyothy Laboratories Limited ex date for 1:1 bonus.
  • Prabhat Telecoms (India) Limited ex date for 1:5 bonus.
  • Gujarat Automotive Gears Ltd. name changed to HIM Teknoforge Ltd.

Offerings

  • Varroc Engineering IPO day 3. Issue subscribed 1.02 times on day 2.

Rupee

  • Indian rupee falls to 19-month low on oil scare, trade war worries. It closed at 68.63/$ versus 68.26/$ on Tuesday.

F&O Cues

  • Nifty futures end trade at 10673, premium of 2 points.
  • Nifty futures add 8.8 lakh shares in open interest.
  • Nifty Bank futures shed 0.9 lakh shares in open interest.
  • Max open interest for June series at 10,800 Call, open interest at 55.7 lakh.
  • Max open interest for June series at 10,600 Put, open interest at 31.6 lakh.

F&O Ban

  • In ban: DHFL, JP Assoc, Infibeam, Wockhardt, jain Irrigation
  • Out of ban: CG Power, 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 1.33 from 1.53
  • Nifty Bank 0.76 from 0.80

Fund Flows

Brokerage Radar

Goldman Sachs on Fortis Healthcare

  • March quarter sales/Ebitda were below expectations.
  • Weakness predominantly driven by Hospital business, which saw utilisation decline.
  • Focus now shifts to public bidding process.
  • Audited results likely in upcoming days.

CLSA on Lemon Tree

  • Maintained ‘Buy’ with a price target of Rs 90.
  • Improving industry dynamics, operational performance to improve returns.
  • Moving towards an asset-light model, as brand gets established in mid-priced segment.
  • Highest demand-supply mismatch in mid-priced segment to lead to sustained price hikes.

CLSA on Crompton Greaves Consumer

  • Maintained ‘Buy’ with a price target of Rs 305.
  • New category additions, increasing distribution reach to drive growth.
  • Product innovation and new launches remains key focus area.
  • Shift to LED to continue to drive growth in lighting segment.

CLSA on Future Lifestyle

  • Maintained ‘Buy’ with a price target of Rs 535.
  • Robust expansion plans for Brand Factory and Power brands to drive growth.
  • Central stores expected to capture higher share of brands retail in India.
  • L Catterton Asia to acquire approximately 10 percent stake through a mix of preferential issue and secondary purchase.

Kotak on Colgate

  • Maintained ‘Add’ with a price target of Rs 1,300.
  • Company is not regaining any market share lost to Patanjali so far.
  • Underlying category volume growth is inching up but at a slow pace.
  • Price hikes to take care of input cost inflation trends.
  • Expect higher advertising investment on flagship brand in naturals segment.

HSBC on HCL Tech

  • Upgraded to ‘Buy’ from ‘Hold’; raised price target to Rs 1,065 from Rs 1,050.
  • HCLT is set to grow at a slower pace in 2018-19 compared to top four.
  • Discount is now too extreme relative to growth differentials to peers.
  • HCL is the cheapest stock in the India IT sector across large and mid caps.
  • Investor concerned on long-term outlook for Infra services and over recent purchase.

Motilal Oswal on Tata Communications

  • Maintained ‘Buy’ with a price target of Rs 730.
  • Strong order funnel to drive growth.
  • Expect earnings to start improving from July.
  • New growth ventures – ‘innovation business’ to remain slow starter.
  • ATM business revenue/Ebitda to improve.
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