All You Need To Know Going Into Trade On Aug. 28

Asian stocks were mixed Wednesday as investors assessed the latest in the unpredictable path of trade talks between the U.S. and China. Benchmarks in Tokyo and Sydney were little changed and edged higher in Seoul.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.13 percent to 11,124 as of 7:00 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

Here’s a quick look at all that could influence equities today.

• U.S. futures climbed after stocks closed lower in a seesaw session as it appeared that China was bracing for the worst on the negotiations with President Donald Trump’s credibility becoming a key impediment to a deal.
• The U.S. 10-year Treasury yield stayed below 1.50 percent near a three-year low and the dollar was steady against major currencies.
• Crude extended gains Tuesday on expectations of shrinking U.S. inventories.

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Brokerage Radar

Citi on Jubilant Foodworks

• Maintained 'Buy' with target price of Rs 1,400.
• Attractive Chinese food opportunity with Hong’s Kitchen launch.
• Chinese food is around three times more popular than the pizza market.
• Chinese is the second largest cuisine after North Indian food in India.

IIFL on Teamlease Services

• Maintained 'Add'; hiked target price to Rs 3,090 from Rs 3,070.
• Cash-flow pressures expected to somewhat ease in financial year ending 2020.
• General staffing segment remains the star performer.
• Promising story, but prefer Quess at current valuations.

HSBC on IPCA Labs

• Maintained 'Buy'; hiked target price to Rs 1,090 from Rs 1,020.
• Outlook remains strong for base business which supports 25 percent EPS compounded annual growth rate over financial years 2019-22.
• Operating leverage play remains intact.
• FDA clearance would add to base growth.

HSBC on Power Grid Corp

• Maintained 'Buy' with target price of Rs 230.
• Recent order unlikely to result in credit risk.
• Recent CERC order allows temporary non-payment of transmission charge by discoms.
• Believe this is applicable for specific projects of national importance.

Nomura on HDFC Bank

• Maintained 'Buy'; hiked target price to Rs 2,600 from Rs 2,450.
• Expect the bank to manage robust profitability.
• Small bumps, but still a resilient franchise.
• Credit costs – normalising from a low base.

HSBC on UPL

• Maintained 'Buy'; cut target price to Rs 720 from Rs 750.
• China soybean imports from Brazil remain soft but trade tensions could support Brazil exports again and benefit UPL.
• African swine fever remains a concern, but lower US supplies can offset the impact and safeguard exports from Brazil.

Indian ADRs

Stocks To Watch

• Talwalkars Better Value Fitness: MK Dandekar & Co. resigned from the post of Statutory Auditors on Aug. 16. Auditors cited that failure to receive satisfactory responses for their queries raised from the management during the audit of company’s accounts. Auditors issued their audit report with Disclaimer of Opinion.
• Alkem Labs: Assetio sues Alkem to block copies of Nucynta ER painkiller.
• Vedanta: Zambia’s High Court suspended petition by state-owned ZCCM-IH to liquidate Vedanta Resources’ copper mine, pending ruling by country’s appeals court. (Bloomberg News)
• Dilip Buildcon received appointed date (Aug. 27) for EPC projects in Maharashtra from the National Highways Authority of India .
• Essel Propack: Promoter Epsilon Bidco has created a pledge of 75 percent stake of the company’s equity in favour of DB International Trust.
• Power Grid Corp: Board approved investment approval for transmission system for Solar Energy Zones in Rajasthan, at an estimated cost of Rs 2578.5 crore, with the commissioning schedule as December 2020.
• Aster DM Healthcare to set up Innovation and Research Facilities in India and Gulf Countries over the next three years.
• MEP Infra Developers: ICRA withdrew ratings of bank limit of Rs 50 crore on account of slower than anticipated progress in the six under-construction HAM Projects.
• Allahabad Bank to price its housing loans with reference to external benchmark linked rates with effect from Sept. 1. Borrowers will have the option for either MCLR-linked loan or EBLR-linked loan at mutually acceptable terms. Saving bank deposits of Rs 40 lakh and above will be linked with External Benchmark with effect from Oct. 1.
• Hinduja Ventures: Board approved mergers of the company’s arm IndusInd Media and Communications with self.
• DHFL to consider various proposals of raising capital and converting debt on Aug. 30. The company defaulted in payment of non-convertible debentures interest aggregating to Rs 14.1 crore which was due on Aug. 26.
• Yes Bank to consider raising capital on Aug. 30.
• Oberoi Realty stated that tax authorities has left the company’s premises and the company has resumed the normal day to day business activities.
• Fine Organics stated that the company’s new manufacturing facility had started operations in Maharashtra.
• Star Cement stated that the company is committed to go ahead with the buyback offer upon receiving the reply to the clarifications from Securities and Exchange Board of India and Ministry of Finance regarding the amended provisions on share buyback.
• Sintex Industries made Rs 45.8 crore partial redemption for its bonds with Rs 138 crore outstanding principal amount.
• Premier Explosives: New Solid Propellant Pant at Hyderabad gets inaugurated.
• IDBI Bank: S&P has placed foreign currency issuer credit rating to ‘BB/B’ and ‘BB’ long term-issue rating on Bank’s senior unsecured notes on Credit Watch with negative implication, given the uncertainty regarding the bank's ability to meet its capital requirement in the next three months.
• Triveni Turbine: National Company Law Appellate Tribunal allowed General Electric Co. to sell a controlling stake in its step down subsidiary Baker Hughes LLC, but said the sale will be subject to the final order on the petitions filed by GE’s Indian joint venture partner Triveni Turbine.

Pledge Share Details

• Emami promoters created pledge of 12.7 lakh shares from Aug. 22-23.
• Wockhardt promoter Themisto Trustee created pledge of 3 lakh shares on Aug. 23.
• DB Corp promoter DB Consolidated created pledge of 76 lakh shares from Aug. 23-26.
• Kalpataru Power Transmission promoters created pledge of 36 lakh shares on Aug. 23.
• JSW Energy promoter groups created pledge of 22.7 lakh shares from Aug. 23-26.

Trading Tweaks

• Brigade Enterprises ex-date for share bonus at 1:2.
• DB Realty, GFL to move into ASM Framework.
• Gallantt Ispat to move into short term ASM Framework.
• Saregama India, Shilpa Medicare, GTPL Hathway to move out of short term ASM Framework.
• Vakrangee price band revised to 5 percent.

Who’s Meeting Whom

• TVS Motor Company to meet Jefferies on Aug. 29.
• Tata Chemicals to meet ICICI Pru MF on Aug. 29.
• PI Industries to meet CX Partners and Motilal Oswal Financial Services from Aug. 28-29.
• Rallis to meet N Square Capital, Quantum Securities and Investec Securities on Aug. 29.
• Narayana Hrudayalaya to meet Welllington Asset Management on Aug. 28.
• Crisil to meet Arete Services on Aug. 28.

Insider Trading

• GHCL promoter and director Anurag Dalmia acquired 1 lakh shares from Aug. 23-26.
• Tourism Finance Corporation of India promoter India Opportunities Fund acquired 3.63 lakh shares on Aug. 23.

Money Market Update

• The rupee had its biggest single day gain in five months and closed at 71.48/$ versus 72.02/$ on Monday.
• The implied opening from forwards suggest spot may start trading around 71.54 per dollar, which is weaker than the Tuesday's close.
• Currency traders will await a cabinet meeting which is expected to ease foreign direct investment rules in several sectors.

F&O Cues

Futures

• Nifty August futures closed at 11,103.9, discount of 1.1 points versus 3.6 points.
• Nifty futures across series open interest up 0.5 percent, adds 1.1 lakh shares in open interest.
• Bank Nifty Aug futures closed at 28,116.5, discount of 9.5 points versus 29.8 points.
• Bank Nifty futures open interest across series up 8 percent, adds 1.4 lakh shares in open interest.
• Rollovers: Nifty 33 percent, Nifty Bank 34 percent .

Options

• Nifty PCR unchanged at 1.23 versus 1.20 (across all series).

Nifty Monthly Expiry Aug. 29

• Max open interest on call side at 11,200 (34.8 lakh shares).
• Max open interest on put side at 11,000 (43.3 lakh shares).
• open interest addition seen at 11,000P (+8.8 lakh shares), 11,300C (+6.7 lakh shares).
• open interest shedding seen at 11,000C (-8.8 lakh shares), 11.100C (-7.3 lakh shares).