All You Need To Know Going Into Trade On June 16
Social distancing floor markers sit on the station concourse floor at Gare de l’est railway station in Paris, France. (Photographer: Adrienne Surprenant/Bloomberg)

All You Need To Know Going Into Trade On June 16

Asian markets are rebounding from their worst single-day drop in over three months after the U.S. Federal Reserve came to the rescue of investor sentiment yet again.

The U.S. Dollar has extended its declines and treasuries are adding to Monday's losses. Oil prices reversed early gains to trade with losses.

The Singapore-traded SGX Nifty, an early indicator of the NIfty 50 index's performance in India, rose 1.9% to 9,978 as of 6:50 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.

Let’s take a look at all that can influence equities in today’s session:

  • Markets across the Asia Pacific - in Japan, South Korea and Australia trade higher by over 2%.
  • Futures on the Dow Jones are trading higher by 290 points after the benchmark index reversed losses on Monday to end with gains.
  • The U.S. Federal Reserve detailed plans to purchase individual corporate bonds, underscoring its role as a backstop.
  • Fed Chair Jerome Powell will also deliver his semi-annual policy report to the Congress.
  • Yield on the 10-year treasury climbed three basis points to 0.75%.
  • West Texas Intermediate crude fell 0.6% to $36.96 per barrel after a 2.4% jump on Monday.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On June 16

Earnings Fineprint: Tata Motors Q4FY20

  • Revenue down 27.7% to Rs 62,493 crore
  • Net loss of Rs 9,894.3 crore from net profit of Rs 1,117.5 crore
  • Ebitda down 70.4% to Rs 2,373.4 crore
  • Ebitda margin down to 3.8% from 9.3%
  • Provisions of impairment of PV business, onerous contracts and subsidiaries at Rs 2,348.8 crore
  • Exceptional loss of Rs 2,800.6 crore added to losses
  • Steep volume decline for the M&HCV business and resulting negative operating leverage impacted profitability and cash flows
  • Overall volumes fell 47% in Q4FY20
  • All numbers are consolidated and compared on a year-on-year basis

Jaguar Land Rover Q4:

  • Revenue down 24% to 5,426 million pounds
  • Loss before tax at 501 million pounds
  • Ebitda down 5% to 4.8 million pounds
  • All numbers are standalone and compared on a year-on-year basis

Management Commentary: Tata Motors

  • First quarter of FY21 to be significantly weak.
  • Deferred or cancelled low margin investments.
  • Outlook for JLR remains uncertain but seeing recovery in terms of cash flow.
  • Free cash flow for JLR for the quarter ending June is seen less than 2 billion pounds in negative.
  • JLR beginning to see recovery in China vehicle sales.
  • Actions are underway to significantly deleverage the group with JLR to become sustainably cash positive from FY22.
  • Cost reduction plan of Rs 6,000 crore.
  • Planning a strategic partner for the passenger vehicle business.
  • CV business to only improve from the second half of the year.
  • Green shoots for the CV business emerging with better freight demands.
  • Agreed to buy Jayem's 50% stake in JTSV.

Stocks To Watch

  • Axis Bank: Pralay Mondal has resigned from post of Executive Director (retail banking) effective September 14. Bank has initiated the succession planning process for the post.
  • Shriram Transport Finance: Board approved raising Rs 1,500 crore via rights issue and Rs 2,500 crore via issue of specified securities.
  • Balkrishna Industires: Has temporarily shut down manufacturing operation in Bhuj, due to an earthquake on June 14.
  • Mindtree: Vinit Teredesai appointed as the company’s new CFO,.
  • IRB Infra Developers: Allotted NCDs worth Rs 300 crore via private placement.
  • Covid-19 Impact On Kirloskar Ferrous: Was able to meet demand in May and June so far. Paid installments of term loans and interest thereon and all letters of credit have been honoured on due dates.
  • Chennai Petro: Aditya Birla Sun Life Mutual Fund decreased their stake to 3.07% from 5.07% on June 11.
  • Covid-19 Impact On Castrol: Witnessing demand pick-up for products related to two-wheelers post partial relaxation of lockdown. Uncertainty in the momentum for June.
  • Ind-Swift Laboratories: To commercially launch its key API - Fexofenadine, an Anti-Histamine drug used for the treatment of seasonal allergic Rhinitis and Urticaria in U.S. market. Company has received commercial orders and the supplies will begin from the current quarter.
  • Narayana Hrudayalaya: To seek shareholders nod to raise Rs 200 crore via NCDs.
  • Covid-19 Impact On Shoppers Stop: 53 departmental stores, seven home stores, 61 beauty stores and two Arcelia stores are operational as on date. Expect footfalls and sales to increase with gradual easing of the lockdown.
  • JSW Steel: Promoter Sahyog Holdings released pledge of 1.04 crore shares on June 15.
  • V.S.T. Tillers and Tractors: Mahadevan GV resigns as CFO from June 15.
  • Chalet Hotels: Rajeev Navar resigns as CFO from September 14.
  • Jindal Steel & Power: Deepak Sogani resigns as CFO from June 30.
  • Aarti Industries: Smallcap World Fund sold 26 lakh shares (1.49%) at Rs 854.71 per share
  • Lakshmi Vilas Bank: Signs preliminary, non-binding letter of intent with Clix Group in relation to the proposed amalgamation of the group with the bank. Under the non-binding intent, the proposed amalgamation is subject to completion of mutual due diligence in an exclusive window of 45 days, and will be subject to regulatory and other customary approvals.
  • Non-Nifty Earnings Today: HPCL, IPCA Labs, NMDC, Navin Fluorine, Bank of Maharashtra, Globus Spirits, Schneider Electric.

Earnings Reported After Market Hours

Shoppers Stop Q4FY20

  • Revenue down 10.4% to Rs 709.2 crore
  • Net loss of Rs 132.8 crore from net profit of Rs 11.4 crore
  • Ebitda up 29.6% to Rs 76.6 crore
  • Ebitda margin at 10.8% from 7.5%
  • Adoption of IND AS-116 impacts earnings
  • Like-to-like sales growth saw a contraction of 16%
  • All numbers are standalone and compared on a year-on-year basis

JK Tyre Q4FY20

  • Revenue down 33.6% to Rs 1,794.8 crore
  • Net loss of Rs 47.2 crore from net profit of Rs 33.6 crore
  • Ebitda down 19.9% to Rs 207.5 crore
  • Ebitda margin at 11.6% from 9.6%
  • Exceptional forex loss of Rs 61.1 crore
  • Deferred tax reversal of Rs 29 crore
  • Low raw material costs anid margins
  • India business revenue down 32% to Rs 1,634.8 crore
  • Mexico business revenue down 36% to Rs 199.5 crore
  • All numbers are consolidated and compared on a year-on-year basis

Who’s Meeting Whom

  • India Energy Exchange: To meet M3 Investment and ASK Investments on June 16
  • Majesco: To meet White Oak Capital Management on June 16
  • Great Eastern Shipping: To meet ICICI Prudential on June 16
  • Marico: To meet Capital International on June 19
  • Gujarat Pipavav Port: To meet DSP Mutual Fund, Firth Investment Managers and other investors between June 16-25.

Trading Tweaks

  • Price Band Revised From 10% To 5%: Dynamatic Technologies, Signet Industries, Trigyn Technologies
  • Price Band Revised From 20% To 10%: Aurionpro Solutions, GPT Infra, ISMT
  • Move Into ASM Framework: Excel Realty & Infra, Vivimed Labs
  • Move Into Short-Term ASM Framework: Seshasayee Paper and Boards , Kilpest
  • Move Out Of Short-Term ASM Framework: Wendt, Sicagen, Aditya Birla Money, Jindal Worldwide, Onward Technologies, Wheels India.

Insider Trading

  • Cyient: Promoter Suchaaritha Bodanapu acquired 20,000 shares on June 12
  • Birlasoft: Promoters sold 2.54 lakh shares on June 9
  • SH Kelkar: Promoter Kedar Vaze acquired 3.2 lakh shares on June 12
  • Varun Beverages: Promoter Vivek Gupta sold 11,000 shares on June 12

(As Reported On June 15)

Money Market Update

  • The rupee ended at 76.03 against the U.S. Dollar as compared to Friday's close of 75.84.
  • The currency ended above the mark of 76 for the first time since April 28, 2020.
  • It was the fourth worst performing Asian currency in Monday's session.

F&O Cues

  • Nifty June futures closed at 9,814; at parity as compared to a discount of 18 points
  • Nifty June futures shed 7.5% and 8 lakh shares in Open Interest
  • Nifty Bank June futures closed at 19,911; discount narrows to 1 point from 30 points
  • Nifty Bank June futures shed 2.8% and 50,000 shares in Open Interest
  • Nifty Put-Call Ratio at 1.34 from 1.46 across all series
  • Out Of F&O Ban: PVR

Nifty Weekly Expiry: June 18

  • Maximum Open Interest on Call side at 10,000 strike (22.8 lakh shares)
  • Maximum Open Interest on Put side at 9,500 strike (24.8 lakh shares)
  • Active Options: 9,700 Put (+3.3 lakh shares), 10,000 Call (+6.9 lakh shares)

Nifty Monthly Expiry: June 25

  • Maximum Open Interest on Call side at 10,500 strike (22 lakh shares)
  • Maximum Open Interest on Put side at 9,000 strike (37.4 lakh shares)
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