Asian stocks had a muted start to the final day of what’s been the worst quarter in nearly three years -- characterised by trade tensions between the U.S. and China.
Shares in Japan were little changed while those in South Korea and Australia showed modest gains. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 10,587 as of 7:30 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 rose the most in three weeks Thursday as technology rebounded from losses sparked by America’s unclear strategy toward Chinese trade.
- The yield on 10-year Treasuries rose less than one basis point to 2.84 percent.
- European companies snapped a two-day recovery, as concerns over U.S. trade policy continued to weigh on markets.
- The euro rose 0.1 percent to $1.163.
- The British pound sank 0.3 percent to $1.3075.
- Britain’s 10-year yield decreased less than one basis point to 1.245 percent, the lowest in four weeks.
- The MSCI Asia Pacific Index fell less than 0.05 percent.
- Topix index fell 0.2 percent.
- Kospi index advanced 0.2 percent.
- Australia’s S&P/ASX 200 Index rose 0.2 percent.
- Futures on the S&P 500 Index rose 0.1 percent.
- The Japanese yen rose 0.1 percent to 110.41 per dollar.
- Australia’s 10-year yield rose less than one basis point to 2.62 percent.
- West Texas Intermediate crude fell 0.1 percent to $73.34 a barrel.
- Brent crude traded 0.1 percent lower at $77.79 a barrel.
- Gold rose 0.1 percent to $1,248.94 an ounce.
- Steel trades higher for second day; up 0.8 percent.
- Aluminium snapped two-day winning streak; down 0.5 percent.
- Zinc traded marginally lower; down 0.05 percent.
- Copper snapped two-day winning streak; down 0.7 percent.
- Rubber traded lower after gaining for two consecutive sessions; down 0.3 percent.
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Here are some key events coming up this week:
- Indonesia’s central bank is expected to raise its benchmark interest rate for a third time since May in a bid to halt a deepening currency rout. Read our decision day guide here.
- 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
- Indivior said U.S. judge extends restraining order against Dr Reddy’s for gSuboxone for 14 more days.
- Thyssenkrupp AG and Tata Steel are said to have agreed on Europe steel merger (Bloomberg).
- Fortis Healthcare extended deadline for submission of binding bids to July 3.
- Jindal Steel & Power extended the divestment of 1000 MW (4X250 MW) thermal power plant date by one year to June 30, 2019.
- Indo Rama Synthetics (India)'s board approved issue of 90.9 lakh equity shares to EC Special Situations Fund and Edelweiss India Special Situations Fund.
- Kalpataru Power Transmission received multiple orders worth Rs 1,235 crores.
- United Spirits reported on restriction of transferability of shares.
- Rakesh Jhunjhunwala reduces stake in Titan by 1.4 percent to 7.37 percent since May 21.
- Bang Overseas to sell Bangalore land for Rs 20 crore.
- Orient Abrasives said operations at Gujarat plant stopped due to worker’s unrest.
- Wipro completed sale of hosted data center services operations to Ensono.
- Zee Media to sell its entire stake in Ez-Mall Online for Rs 8.60 crore.
- Newgen Software receives order worth Rs 63.93 crore.
- Bharat Financial Inclusion completed first securitization transaction of Rs. 550.07 crore in 2018-19.
- Clariant Chemicals permanently closed manufacturing unit in Gujrat, to sell land and sheds of the unit to related party for Rs 7.33 crore.
- Adani Ports completed acquisition of Kattupalli port from L&T.
Economic Data To Watch
- India to report fiscal deficit and eight infrastructure industries data for May.
- RPP Infra Projects: Albula Investment Fund bought 1.15 l;akh shares or 0.5 percent equity at Rs 215 each.
- Strides Shasun: Birla Sunlife MF bought 5 lakh shares or 0.6 percent equity at Rs 388.94 each.
- V2 Retail: India 2020 Fund II Limited bought 2 lakh shares or 0.6 percent equity at Rs 405 each.
- IDFC: JM Financial MF sold 83.29 lakh shares or 0.5 percent equity at Rs 46.48 each.
- Manpasand Beverages: Nomura India Investment Fund Mother Fund sold 12.84 lakh shares or 1.1 percent equity at Rs 137.02 each.
- PTC India: UBS Principal Capital Asia Ltd sold 16.24 lakh shares or 0.5 percent equity at Rs 73.08 each.
- IEX: Societe Generale sold 3.68 lakh shares or 1.2 percent equity at Rs 1,586 each.
- IIFL Management Services Limited bought 3.30 lakh shares or 3.3 percent equity at Rs 3291 each.
- Punjab National Bank sold 3.30 lakh shares or 3.3 percent equity at Rs 3291 each.
- Arvind Khattar bought 8 lakh shares or 2.8 percent equity at Rs 76.2 each.
- Premier Investment Fund Limited sold 8 lakh shares or 2.8 percent equity at Rs 76.2 each.
Who’s Meeting Whom
- Lumax Auto Technologies & Lumax Industries to meet investors on June 29.
- Amber Enterprises to meet investors on June 29.
- Indian Hotels to meet HDFC AMC on June 29.
- Kamdhenu Ltd to meet investors on June 29.
- Jain Irrigation promoter Jalgaon Investments Private Limited acquired 2 lakh shares on June 27.
- Piramal Enterprises promoter sold 2.97 lakh shares from June 25 – 26.
- Centrum Capital promoter BG Advisory Services LLP acquired 1.38 lakh shares on June 26.
(As reported on June 28)
- Gammon Infrastructure Projects, KRBL and NDTV circuit filter revised to 10 percent.
- Adani Green Energy Limited last trading day before shifting to B group.
Nifty Midcap 50 Changes
- Dropped - Arvind, Tata Communications
- Added - Indian Bank, NALCO
Nifty Infrastructure Changes
- Dropped - Tata Communications
- Added - Torrent Power
- Varroc Engineering IPO subscribed 3.5 times on the final day.
- Talwalkar's de-merged gym business to list today.
- Rupee closed at 68.79/$ on Thursday versus 68.63/$ on Wednesday. This is lowest since August 28, 2013.
- Nifty July Futures closed trading at 10,571, discount of 18 points.
- All series-Nifty open interest up 4 percent and Bank Nifty open interest up 5 percent.
- Nifty rollover at 64 percent , Bank Nifty rollover at 72 percent.
- India VIX ended at 13.9, up 3.2 percent.
- Max open interest for July series at 11,000 Call, open interest at 29.9 lakh, open interest up 20 percent.
- Max open interest for July series shifts to 10,600 Put, open interest at 35 lakh, open interest up 45 percent.
- Nifty PCR at 1.43 versus 1.33
- Nifty Bank PCR at 0.76
Nomura on Media
- Zee's TV ratings remains strong; Remain positive on the stock.
- Sun has continued to lose share.
- On the subscription side, expect Sun to be the key beneficiary of digitisation.
Nomura on Exide
- Maintained ‘Neutral’ with a price target of Rs 268.
- Announcement of JV gives Exide a clear head-start over others in Lithium-ion batteries.
- By 2020 when EVs launch, Exide would have a proven product ready for auto manufacturers.
- Total investment could be CHF 80 million.
- Exide's cash balance and cash flow sufficient for investment.
Nomura on Auto
- Healthy demand and low base to lead to strong double-digit volume growth across segments.
- Expect passenger vehicle industry to report 27 percent YoY growth.
- Expect two wheeler industry growth to remain healthy at 15 percent YoY.
- Expect medium and heavy commercial vehicle industry to report 37 percent YoY growth.
Deutsche Bank Research on BHEL
- Maintained ‘Buy’ with a price target of Rs 130.
- Four recent tie-ups to drive non-coal revenues.
- Power deficit and replacement demand to drive coal projects related revenue.
- Expect turnaround in orders and potential recovery of government receivables.
Macquarie on Graphite Electrode Sector
- Graphite Electrode uplift is structural and not just an upcycle before a leg down.
- Market tightness to keep electrode and needle coke prices firm.
- Expect graphite electrode prices staying strong for three years, as utilisation remains on an uptrend.
- Indian electrode makers have 22 percent global market share.
- Graphite India: Initiated ‘Outperform’ with a price target of Rs 1,260; implying a potential upside of 63 percent from the last regular trade.
- HEG: Initiated ‘Outperform’ with a price target of Rs 4,810; implying a potential upside of 58 percent form the last regular trade.
Brokerages On Accenture
- Accenture Q3 ahead of guided range and estimates.
- Revenue beat and constructive commentary signals positive sentiment for India IT.
- Upwards revision to full year revenue growth guidance positive.
- Growth acceleration led by consulting, U.S. and CMT.
- Broad-based growth acceleration is a positive for all Indian IT firms.
- Acceleration in U.S. positive for most firms, more for Infosys and Cognizant.
- Acceleration in CMT positive for Tech Mahindra, Wipro and HCL Tech.
- Nature of demand with stronger consulting and Apps better for Infosys and HCL Tech.
- Relative softness in FS stays a concern for TCS, Cognizant and Infosys.