All You Need To Know Going Into Trade On August 17
Stocks in the news, key earnings updates, who’s buying and who’s selling, brokerage radar and much more!
Asian stocks traded mixed Friday after an easing in trade tensions between China and the U.S and positive results from Walmart spurred gains in American shares.
Japanese shares rose, while futures signaled gains for when Hong Kong and China markets open, after all major U.S. stock benchmarks climbed. Australian shares slipped and South Korean equities were little changed.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.1 percent higher at 11,438 as of 7:10 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 rallied Thursday after retail behemoth Walmart Inc. reported its best sales growth in more than a decade and Chinese and American officials agreed to hold talks in an attempt to resolve the trade dispute between the two countries.
- The yield on 10-year Treasuries was little changed at 2.87 percent.
Europe Market Check
European shares rebounded from their lowest close in more than a month as a recovery in metal prices lifted miners.
Vajpayee, Who Turned India Into Nuclear-Armed Nation, Dead At 93
Atal Bihari Vajpayee, the former prime minister who transformed India into a nuclear-armed nation and ignited a weapons race in South Asia, has died. He was 93.
Known for his engaging speeches, Vajpayee led India’s right-wing coalition governments from 1998 to 2004, overseeing sweeping policy changes in telecommunications, education and privatization of state-run firms.
He will be remembered for his repeated efforts at talks with neighbor Pakistan, improved relations with the U.S. and India’s second nuclear weapons test in 1998, more than two decades after the first detonation in 1974.
Asian Cues
- Japan’s Topix index climbed 0.5 percent.
- Futures on Hong Kong’s Hang Seng were up 0.5 percent.
- Australia’s S&P/ASX 200 Index was little changed.
- Futures on the S&P 500 slipped 0.1 percent.
Key Events To Watch This Week
- Euro-area inflation data are due on Friday
- Brexit talks between the EU and the U.K. resume in Brussels Thursday.
India Stands With Kerala
Commodity Cues
- The Bloomberg Commodities Index gained 1 percent.
- West Texas Intermediate crude slid 0.2 percent to $65.36 a barrel.
- Gold was steady at $1,173.97 an ounce.
Indian ADRs
Stocks To Watch
- Gati clarified that Allcargo Logistics’ buyout plan has not been finalised, management is still evaluating opportunities.
- Multi Commodity Exchange to explore setting up spot exchange with gold body.
- Supreme Court holds return of Rs 2,000 crore bank guarantee to Reliance Communications.
- Lemontree Hotels signed agreement for a 90-room property at Vijayawada.
- Ion Exchange signed EPC contract worth Rs 438.84 crore from Vedanta arm.
- Cosmo Film launched CPP metalized film for laminate structures.
- Persistent Systems partnered with Three Phase Electric to develop IoT solutions.
- Axiata relinquished its right as a shareholder of Idea Cellular.
- TCS signed new agreement for digital transformation with Scotland based Improvement Service.
- Tree House Education & Accessories entered into an agreement to sell fixed assets for Rs 26 crore.
- AstraZeneca Pharma received Form 45 permission for Lynparza drug.
- Jet Airways to announce results on Aug. 27.
Who’s Meeting Whom
- Mahindra Lifespace Developers to meet Anand Rathi and other investors on Aug. 17.
- Deep Industries to meet investors on Aug. 17.
- Khadim India to meet investors on Aug. 17.
- Dixon Technology to meet Invesco Mutual Fund, SBI Mutual Fund and other investors on Aug. 17.
Insider Trades
- Chambal Fertilisers & Chemicals promoter acquired 24,000 shares on Aug. 14.
- Cosmo Films promote acquired 20,000 shares from Aug. 13-14.
- Srikalahasthi Pipes promoters acquired 16,000 shares from Aug. 13-14.
- Laurus Labs promoter acquired 7 lakh shares from Aug. 10-13.
Rupee
- Rupee closed at an all-time low of 70.16/$ versus 69.89/$ on Tuesday.
F&O Cues
- Nifty August Futures closed trading at 11,410.9, premium of 25.9 points versus 28.3 points.
- August series-Nifty Open Interest up 1 percent and Bank Nifty Open Interest down 5 percent.
- India VIX ended at 13.6, up 2.7 percent.
- Maximum Open Interest for August series at 11,500 Call, Open Interest at 45.4 lakh, Open Interest up 8 percent.
- Maximum Open Interest for August series at 11,000 Put Open Interest at 48.1 lakh, Open Interest down 6 percent.
F&O Ban
- In Ban: Adani Enterprises, Adani Power, Jet Airways, Jain Irrigation
- New In Ban: Jain Irrigation
- Out Of Ban: Punjab National Bank
Put-Call Ratio
- Nifty PCR at 1.60 versus 1.70
- Nifty Bank PCR at 0.81 versus 1.14
Fund Flows
Brokerage Radar
UBS on DLF
- Upgraded to ‘Buy’ from ‘Neutral’; raised price target to Rs 300 from Rs 235.
- Balance sheet strengthening going unnoticed.
- Development business to be largely self-funding.
- Accounting rule change drives big jump in our FY19/20 revenue/earnings.
Ambit on Hathway Cable
- Maintained ‘Buy’ with a price target of Rs 30.
- Subscriber clean-up impacts growth.
- Stellar cost management and ambitious cost control targets.
- June quarter results indicate that the company is aggressively preparing for Jio’s entry.
- Believe that the company’s last mile connectivity is a key strategic asset.
UBS on Shankara Building
- Maintained ‘Buy’ with a price target of Rs 2,150.
- June quarter review: Impressive top line growth, but yet to deliver similar earnings growth.
- Heavy rains to impact current quarter’s performance.
- Like Shankara as it is leading home improvement retailer; no organised competitors.
Goldman Sachs on Bandhan Bank
- Downgraded to ‘Neutral’ from ‘Buy’; price target unchanged at Rs 710.
- Downgrade post significant outperformance.
- Fundamentals remain solid but valuation races ahead.
- Bandhan can potentially deliver compounded annual growth rate of 34 percent in earnings over FY18-23.
- Balanced risk-reward at the current valuation.