All You Need To Know Going Into Trade On June 17
Asian markets are mixed in mid-week trade as investors assess evidence of economic recovery in the U.S., geopolitical tensions and concerns over a second wave of Covid-19 infections.
Treasury yields have maintained their gains for the week while the U.S. Dollar has steadied following initial gains.
The Singapore-traded SGX Nifty, an early indicator of the NIfty 50 index's performance in India, fell 0.3% to 9,877 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 in Japan gave up some part of their Tuesday's 4% surge while benchmarks in South Korea too are retreating. Markets in Australia trade with gains.
- Futures on the Dow Jones currently trade 40 points lower, swinging between gains and losses after the benchmark index ended 2% higher on Tuesday.
- U.S. Federal Reserve Chairman Jerome Powell said that the U.S. economy may be bottoming out but still has a long way to go before it reverses the substantial damage done by Covid-19.
- Investors took encouragement from the rebound in U.S. retail sales and from the Trump administration's preparation for a nearly $1 trillion infrastructure proposal to revive the economy.
- The New York Stock Exchange may allow a limited number of market makers to return to the trading floor on Wednesday.
- Yield on the 10-year treasury stood at 0.76%.
- West Texas Intermediate crude fell 1.4% to $37.83 per barrel.
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Stocks To Watch
- HDFC AMC: Promoter Standard Life to sell 60 lakh shares or 2.82% stake via Offer for Sale (OFS). Offer opens for non-retail investors on June 17 and for retail investors on June 18. Floor price for the same is set at Rs 2,362 per share, a 7% discount to Tuesday's closing price. Oversubscription option present for another 60 lakh shares.
- HPCL Conference Call: Mumbai refinery revamp, vizag expansion is progressing. Both facilities are running at full capacity. Mumbai plant to be shut in the later part of FY21 for revamp work. Continue to diversify crude imports and expect to see inventory gains during Q1FY21. See 85-90% normal gasoline and diesel sales by Mid-July.
- Indraprastha Gas: GAIL nominates AK Jana as the new Managing Director of the company.
- SpiceJet: Flying 25% of the flights with 60-70% load factor. Chairman Ajay Singh is hopeful of flying 40% of capacity by July.
- HDFC: To seek shareholders nod for raising funds through issue of equity shares on June 19.
- Banking Stocks: Supreme Court hearing on loan moratorium interest waiver on June 17.
- Aarti Drugs: PTI reports that India may impose anti-dumping duty on Chinese anti-bacterial drug Ciprofloxacin Hydrochloride with a view to guard domestic industry from cheap imports. The company had filed an application to impose duty on import of medicines from China. The Directorate General of Trade Remedies in its preliminary findings has recommended the imposition of provisional anti-dumping duty in the range of $0.94-$3.29 per kg.
- Covid-19 Impact On Emami: Operations may normalise by Q2FY21. Strong demand for healthcare and hygiene products. Healthcare range witnessing steady demand for immunity boosting products. Discretionary and personal care products slowly witnessing recovery in demand.
- HCL Tech: Has commenced operations in Sri Lanka.
- Wipro: Has partnered with DocMagic for digital mortgage solutions.
- IRB Infra: Board approved raising Rs 750 crore via NCDs on a private placement basis to Anahera Investment.
- Ashok Leyland: To consider raising Rs 200 crore via NCDs on June 19.
- Prestige Estates Projects: To consider raising capital via NCDs on June 24.
- Panacea Biotec: Board approved setting up a joint venture with U.S. based Refana for development, manufacturing and distribution of the Covid-19 vaccine.
- Covid-19 Impact On Navin Fluorine: All plants manufacturing products for life sciences and crop sciences sectors are running to optimum capacity. Plants for industrial sectors continue to operate at sub-optimum levels. Enough inventory of key raw materials for smooth operations over the next quarter. Working on developing domestic vendors for some critical raw material currently imported. Continuing with capex announced in February.
- Adani Ports: Promoter SB Adani Family Trust revoked pledge on 43 lakh shares on June 15.
- Non-Nifty Earnings Today: Pidilite, Gulf Oil, Cummins India, Indraprastha Gas, Natco Pharma, JK Cement, Muthoot Finance, RBL Bank, REC, HEG, Welspun Corp.
Earnings Reported After Market Hours
- Revenue down 6.5% to Rs 66,154 crore
- Net profit down 96.4% to Rs 26.8 crore
- Ebitda loss of Rs 706.7 crore from Ebitda gain of Rs 1,863.4 crore
- Exceptional loss of Rs 1,002.9 crore this quarter due to write-down of inventories
- Writeback of provisions of earlier taxes at Rs 1,548.1 crore
- Tax reversal of current taxes at Rs 1,030.3 crore
- Gross Refining Margin (GRM) for FY20 at $1.02 per barrel from $5.09 per barrel
- GRM for the quarter at negative $1.23 per barrel from $1.79 per barrel
- Forex loss of Rs 624.4 crore
- Crude throughput down 9% to 4.54 MMT
- Sales volume down 10% to 9.57 MMT
- Dividend of Rs 9.75 per share
- All numbers are standalone and compared on a quarter-on-quarter basis
- Revenue down 12.5% to Rs 3,187.3 crore
- Net profit down 75.8% to Rs 351.2 crore
- Ebitda down 28.7% to Rs 1,492 crore
- Ebitda margin narrows to 46.8% from 57.4%
- Rs 771.3 crore paid as tax for earlier years which impacted net profit
- Exceptional expense of Rs 96.4 crore this quarter
- Iron Ore segment revenue down 12% to Rs 3,166.7 crore
- Pellet segment revenue down 65% at Rs 20.6 crore
- Covid-19 impact led to loss of revenue of Rs 220 crore
- Iron Ore sales down 15% to 86.19 lakh tonne
- Average sales realisation up 4% to Rs 3,674 per tonne
- All numbers are standalone and compared on a year-on-year basis
Navin Fluorine Q4FY20
- Revenue up 9.5% to Rs 276.6 crore
- Net profit rises 7.7 times to Rs 272.7 crore
- Ebitda up 33.3% to Rs 68.8 crore
- Ebitda margin widens to 24.9% from 20.4%
- Decline in raw material costs aid margins
- MAT credit reversal of Rs 88.2 crore and provision for tax written off at Rs 141.3 crore
- All numbers are consolidated and compared on a year-on-year basis
- 3M India: Ruane Cuniff & Goldfarb sold 1.22 lakh shares (1.08%) at Rs 17,100 per share. Buyers included HDFC Standard Life Insurance, Kotak Funds, L&T Mutual Fund, Max New York Life Insurance and Aurigin Master Fund.
- Hindustan Oil Exploration: Fidelity Funds sold 17.11 lakh shares (1.3%) at Rs 64 per share and Param Capital acquired 12.27 lakh shares (0.93%) at Rs 64 per share.
- Indian Terrain Fashions: Malabar India Fund sold 3.05 lakh shares (0.8%) at Rs 32.72 per share.
Who’s Meeting Whom
- Sundram Fasteners: To meet UTI Mutual Fund on June 17
- CreditAccess Grameen: To meet Birla Sunlife Insurance and Manning Napier on June 17
- IIFL Finance: To meet Silverdale Capital, Arakkan Capital and HDFC Life on June 17
- Price Band Revised From 10% To 5%: Adroit Infotech, Hindusthan National Glass, Madras Fertilizers, Vakrangee, Ramco Systems.
- Price Band Revised From 20% To 10%: TV18 Broadcast.
- Move Into ASM Framework: Tata Communications, Ruchi Soya, Flexituff Ventures, Bombay Rayon Fashions
- Move Into Short-Term ASM Framework: Aurionpro Solutions, GPT Infraprojects, Vakrangee, Alembic, Onward Technologies.
- Move Out Of Short-Term ASM Framework: Power Mech Projects, Raymond, CESC Ventures, GFL, Zensar Technologies, Indo Count Industries, UFO Moviez, Astra Microwave Products.
- Nesco: Promoter Patel Consultancy acquired 12,500 shares on June 15
- Waterbase: Promoter KCT Management acquired 1.03 lakh shares on June 12
- Bajaj Auto: Promoter Deepa Bajaj acquired 25,000 shares between June 10-12
(As Reported On June 16)
Money Market Update
- The rupee gave up all of its gains to end lower at 76.21 against the U.S. Dollar as compared to Monday's close of 76.03.
- Rupee was the worst performing currency in Asia on Tuesday.
- The currency declined for the fourth straight day on Tuesday, its longest losing streak in three months.
- Nifty June futures closed at 9,898; at a discount of 16 points
- Nifty June futures shed 3.8% and 3.7 lakh shares in Open Interest
- Nifty Bank June futures closed at 20,254; discount widens to 42 points from 1 point
- Nifty Bank June futures shed 8.9% and 1.6 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.28 from 1.34 across all series
- Securities In F&O Ban: Adani Ent, Idea, JSPL, Just Dial
- Enters F&O Ban: JSPL
- Out Of F&O Ban: BHEL
Nifty Weekly Expiry: June 18
- Maximum Open Interest on Call side at 10,000 strike (28.1 lakh shares)
- Maximum Open Interest on Put side at 9,500 strike (24.7 lakh shares)
- Active Options: 9,900 Put (+5 lakh shares), 10,000 Call (+5.3 lakh shares)
Nifty Monthly Expiry: June 25
- Maximum Open Interest on Call side at 10,000 strike (23.4 lakh shares)
- Maximum Open Interest on Put side at 9,000 strike (36.8 lakh shares)