All You Need To Know Going Into Trade On July 12

Asian stocks posted modest gains one day after a bruising selloff, despite lingering concerns around the U.S. and Chinese trade war that show little sign of abating. Shares in South Korea, Japan and Australia edged higher.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded nearly 0.2 percent higher at 10,964 as of 7:15 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 fell as crude plunged the most in two years and the dollar spiked higher amid renewed tensions over trade and geopolitics.
• The yield on 10-year Treasuries was little changed at 2.85 percent.

Europe Market Check

• European stocks fell as the latest salvo in the U.S.-China trade conflict and concern about the future of Prime Minister Theresa May’s Brexit plans after two cabinet ministers resigned halted a six-day advance.

Asian Cues

• Japan’s Topix index rose 0.5 percent.
• Australia’s S&P/ASX 200 Index gained 0.1 percent.
• South Korea’s Kospi advanced 0.2 percent.
• Hang Seng futures fell 0.2 percent
• Futures on the S&P 500 Index advanced 0.2 percent.

Commodity Cues

• West Texas Intermediate crude was at $70.57 a barrel after its 5 percent slide.
• Brent crude traded 1.4 percent higher at $74.41 a barrel.
• Gold was up 0.1 percent to $1,242.95 an ounce after slipping 1.1 percent.

Shanghai Exchange

• Steel traded higher for the fourth day; up 1.9 percent (highest since October 2017).
• Aluminium traded higher; up 0.9 percent.
• Zinc trades lower for the third day; down 0.6 percent.
• Copper ends lower for the second day; down 0.1 percent.
• Rubber trades lower for the third day; down 0.2 percent.

Stories That You Might’ve Missed

• Panel of ministers mulls 1 percent cess on luxury items, tobacco to help farmers.
• The rupee’s top forecaster is going against the crowd.
• India overtakes France as world’s sixth largest economy: World Bank
• Asia's newest millionaires swap basket-case economy for fine art.
• Broadcom to buy CA Technologies for $18.9 billion in cash.
• Wanted: foreign adviser for Thailand’s $54 billion pension fund.
• U.S.-China trade talks grind to a halt
• Twitter's crackdown on fake accounts will make you look less popular.
• Not everyone wearing saffron is BJP, says Nitin Gadkari on trolls and vigilantes (Catch the interview here)

Here are some key events coming up this week:

• Earnings season gets into gear with JPMorgan Chase & Co. and Citigroup Inc. among the largest companies due to give results, as well as India’s Infosys Ltd.
• The most noteworthy U.S. data may be the June inflation report on Thursday, which consensus expects will show both headline and core price growth picking up.
• Chinese trade data due at the end of the week will probably show slightly slower export growth, after early indicators pointed to softer overseas demand and weaker export orders, Bloomberg Economics said.

India Datawatch

• 5:30pm: India June CPI year-on-year, estimate 5.3 percent, prior 4.87 percent.
• 5:30pm: India May Industrial Production YoY, estimate 4.5 percent, prior 4.9 percent.

Earnings To Watch

• Cyient
• Karnataka Bank
• Talwalkars Lifestyles

Earnings Reaction To Watch

Reliance Industrial Infrastructure Ltd (Q1, YoY)

• Revenues down 12.4 percent to Rs 21.2 crore.
• Net profit up 5.6 percent to Rs 1.9 crore.
• Ebitda down 51.8 percent to Rs 2.7 crore.
• Margin at 12.7 percent versus 23.1 percent.

Stocks To Watch

• Idea Cellular said that the current approval of DoT for merger with Vodafone is conditional and not a final approval.
• Power Grid arm started full commercial operations in Maharashtra.
• MRO-Tek Realty received empanelment with BSNL for enterprise business.
• Shree Ajit Pulp and Paper received export order for 1240 MT of kraft paper worth Rs 4.06 crore.
• India Telecom panel accepted TRAI net neutrality views, reported PTI.
• Coffee Day Enterprises arm entered into an agreement for five years with UBER for distribution of food products.
• Quinaq Acquisition (FPI) increased stake to 9.94 percent from 3.09 percent in Mannapuram Finance.
• Rinkoo Somani appointed as Interim CFO of IDFC.
• M&M Forgings to issue bonus shares in ratio 1:1.
• Satin Creditcare Network approved transfer of MSME business to arm; to acquire 11 lakh shares in subsidiary for Rs 3.3 crore.
• Bank of Baroda clarified candidature of its MD & CEO PS Jayakumar to succeed Axis Bank CEO Shikha Sharma is speculative.
• Omaxe bagged Gandhi Maidan project for development of multilevel car parking space by NMDC.
• LIC-IDBI Bank deal may conclude by September, PTI reported.
• Chambal Fertilisers and Chemicals approved voluntary winding up its arm Inuva.
• Sun Pharma arm filed lawsuit against Bifrontera for patent infringement and trade secret misappropriation.
• IFCI hiked its short-term benchmark rates by 10 basis points to 9.1 percent from July 12.
• MCX probing software, hardware lapses causing glitch, Bloomberg reported.
• Bank of Baroda and Korea's KB Financial Group ink MoU to set up financing corridor.
• IDBI Bank raises MCLR by 10 basis points to 9.6 percent from July 12.
• Shree Cement arm completed acquiring 97.61 percent stake in UAE based UCC.
• NCLT to hear insolvency plea against RHC holding on July 25, Bloomberg reported.
• India Gylcols mull raising Rs 250 crore via issue of securities.
• Max India promoters clarifies SEBI has not mandated an open offer in its order.
• Cipla’s wholly owned subsidiary acquired South African company –Mirren (Pty) Ltd. for Rs 228 crore.
• India Glycols seeks shareholders’ approval for fund raising of Rs 250 crore.
• Kwality to close its its dairy products business in UAE.
• Max Group promoters said that SEBI has not mandated promoters to carry out an open offer anywhere in its order.

Indian ADRs

Bulk Deals

Indiabulls Venture

• Jasmine Capital Investments Pte Ltd acquired 72.9 lakh shares or 1.4 percent equity at Rs 286.5 each.
• Cinnamon Capital Ltd sold 72.9 lakh shares or 1.4 percent equity at Rs 286.5 each.

Who’s Meeting Whom

• Eris Lifesciences to meet Edelweiss Asset Management on July 12.
• Mahindra & Mahindra to meet investors on July 13.
• Allcargo Logistics to meet Birla Mutual fund and Morgan Stanley Investment Management on July 12.
• Finolex Industries to meet Birla MF, Franklin Templeton and other investors on July 12.

Insider Trades

• Century Enka promoter group sold 3.9 lakh shares on July 9.
• Liberty Shoes promoter group Anmol Gupta acquired 5,000 shares from July 5-6 and promoter group sold 1,300 shares on July 10.
• Vaibhav Global promoter and director Rahimullah sold 1.2 lakh shares on July 9.
• Maxheights Infra promoter and director Naveen Narang sold 12,600 shares on July 10.
• V-Mart Retail promoter group sold 15,000 shares from July 9 to July 10.

(As reported on July 11)

Trading Tweaks

• Hathway Cable & Datacom circuit filter revised to 10 percent.
• Ashoka Buildcon ex date for 1:2 bonus.
• General Insurance Corporation of India ex date for 1:1 bonus.
• Talwalkars Lifestyles Limited last trading day before shifting to B group.

Rupee

• Rupee closed marginally higher at 68.77/$ on Wednesday from 68.82/$ on Tuesday. It was the only Asian currency to end positive yesterday.

F&O Cues

• Nifty July Futures closed trading at 10,938.6 discount of 9.7 points.
• July series-Nifty Open Interest up 3 percent and Bank Nifty Open Interest down 7 percent.
• India VIX ended flat at 12.7, up 3 percent.
• Maximum Open Interest for July series at 11,000 Call, Open Interest at 43 lakh, Open Interest up 17 percent.
• Maximum Open Interest for July series at 10,600 Put, Open Interest at 52.8 lakh, Open Interest up 2 percent.

F&O Ban

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.

Active Stock Futures

Put Call Ratio

• Nifty PCR at 1.66 versus 1.65
• Nifty Bank PCR at 1.11 versus 1.31

Brokerage Radar

Jefferies on HEG

• Maintained ‘Buy’ with a price target of Rs 4,400.
• Expect realisation to remain robust as demand supply tightness continues.
• Phillips66 needle coke debottlenecking will help improve utilisation.
• Expect the demand for Graphite Electrode within China to increase.
• Mgmt. looking at different avenues within carbon space for cash utilisation.

IDFC Securities on Tata Steel

• Maintained ‘Outperform’ with a price target of Rs 755.
• Company reiterated that it will pursue growth opportunities in India.
• Tata Steel working on to supply excess iron ore to Bhushan Steel plants.
• Balance sheet leveraged, but capable of servicing debt.
• Negative already priced in; Advise buying on declines.