All You Need To Know Going Into Trade On June 18 

Asian stocks saw muted gains Tuesday as markets entered a holding pattern ahead of this week’s key Federal Reserve decision.

Stocks ticked higher in Japan, Korea and Australia with little in the way of fresh catalysts. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent to 11,724.50 as of 7 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.

BQ Live

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

U.S. Market Update

• U.S. equities gained, as Facebook, Apple, Netflix and Google parent Alphabet led the Nasdaq Composite higher.
• The dollar briefly weakened after a Federal Reserve survey of factories in New York State plunged in June by the most on record, before climbing back from the day’s lows.

Asian Cues

• Japan’s Topix index rose 0.2 percent as of 9:12 am local time.
• South Korea’s Kospi index gained 0.4 percent.
• Australia’s S&P/ASX 200 Index rose 0.3 percent.
• Futures on the S&P 500 Index rose 0.1 percent.

Commodity Cues

• Gold was little changed at $1,339 an ounce.
• West Texas Intermediate crude slid 0.1 percent to $51.87 a barrel.
• Brent crude rose 0.3 percent to $62.2 per barrel.

London Metal Exchange

• Copper ended 0.40 percent higher.
• Zinc ended its two-day fall and closed 0.69 percent higher.
• Nickel closed 0.80 percent lower.
• Aluminium ended lower for the third day, down 0.34 percent.
• Lead snapped its three-day fall and ended 1.13 percent higher.
• Tin ended lower for the second session in a row, down 1.33 percent.

Stocks To Watch

• In a move to rescue investors of its fixed maturity plans, HDFC Asset Management Company Ltd. will purchase Essel Group companies’ non-convertible debentures of up to Rs 500 crore. Thereby transferring any loss (or gain) due to the investment from investors to itself. (More details here)
• Biocon approved sale of its branded formulations India business on a 'going concern' basis to Biocon Biologics India for Rs 45 crore.
• Jet Airways lenders will take the company to NCLT and will seek resolution under the Insolvency and Bankruptcy Code.
• Tata Consultancy Services partners with SAP to launch an lntelligent Field lnventory Management solution, powered by SAP Leonardo, which leverages loT and blockchain to help medical device manufacturers streamline surgical kit handling.
• AU Small Finance Bank board said it will meet on June 20 to consider issue of Basel II compliant, tier II NCDs in one or more tranches.
• Bajaj Holdings paid Rs 222 crore to WMDC to acquire 27 percent stake in Maharashtra Scooters and hiked shareholding to 51 percent.
• DHFL makes interest payment worth Rs 5 crore with the payment due on 17 June.
• ICRA downgraded ratings of long term and short term borrowings of the McLeod Russell to ‘Issuer Not Cooperating’ category.
• Reliance Industries: Fire occurred in Linear Alkyl-Benzene plant at Patalganaga while restarting the plant from a routine maintenance shutdown. There is no loss of life or injury to anyone. All other plants at the site are operating normally.
• InterGlobe Aviation: Ordered CFM International LEAP1A engines to power 280 Airbus A320neo and A321neo aircraft. The contract, which includes spare engines and an overhaul support agreement, is valued at more than $20 billion. Delivery of the first LEAP-1A-powered A320neo is scheduled in 2020.
• Sandhar Tech: Entered into a JV with Winnercom Co., Ltd for manufacturing and selling, inter-alia, electronic parts and accessories for the automotive industries in India.
• Repro India: Board approves the draft scheme of demerger between company and its wholly owned subsidiary company Repro Innovative Digiprint Limited (demerged company)
• Binani Industries: Ratan Kumar Sarawagi, an independent director of the company has resigned from the directorship
• Cox & Kings: CARE reaffirmed rating on commericial paper issue of Rs 375 crore at A1+, but revised rating on non-convertible debentures and long term bank facilities from AA/Stable to AA-/Stable
• Tech Mahindra: To buy Canada’s Objectwise Consulting for CAD 2.75 million (about Rs 14.33 crore). The all-cash transaction is expected to close by 31 July, 2019.

Indian ADRs

Bulk Deals

Apollo Tyres

• White Iris Investments buys 2.8 cr shares at Rs 199.8 per share

DHFL

• BNP Paribas sells 15.8 lakh shares at Rs 78.9 apiece.

STFC

• PEL sells 2.26 crore shares at Rs 1,000.73 apiece.
• HDFC MF buys 62.6 lakh shares at Rs 1,000 apiece.
• SBI MF buys 36.1 lakh shares at Rs 1,000 apiece.

Who’s Meeting Whom

• HEG: Meeting with Kotak Securities on June 20.
• Shriram Transport Finance will meet analysts/institutional investors at ICICI Securities U.S. Financial Conference from June 17-21.
• Crompton Greaves Consumer Electricals: Company's officials will meet Emkay Stock Broking on June 18.
• Galaxy Surfactants: Company's officials will meet institutional investors on June 19, 20 and 26, 2019.
• Jindal Stainless: Company's officials will be meeting certain funds/ investors on June 18 and June 19.
• Allcargo Logistics: Analyst/Institutional investor meeting is scheduled to be held on June 18.
• HEG: Senior management of the company is scheduled to meet analysts / investors at New York on June 18 and 20.
• eClerx Services: Company's officials will interact with Equitymaster Research Pvt. Ltd on June 18.

F&O Cues

June Futures

• Nifty futures closed at 11,697.5, premium of 25.5 points versus 14.7 points.
• Nifty futures open interest up 2 percent, adds 3.8 lakh shares in open interest.
• Bank Nifty futures closed at 30,325, premium of 52.7 points versus discount of 3 points.
• Bank Nifty futures open interest down 10 percent, sheds 1.7 lakh shares in open interest.

Options

• Nifty PCR at 1.08 versus 1.25 (across all series).

Nifty Weekly Expiry June 20

• Max open interest on call side at 11,900 (28.8 lakh shares), 12,000 (25.6 lakh shares).
• Max open interest on put side at 11,700 (11.2 lakh shares).
• open interest addition seen at 11,800C (+17.8 lakh shares), 11,700C (+10.4 lakh shares).
• open interest shedding seen at 11,800P (-5 lakh shares), 11,900P (-3.6 lakh shares).

Nifty Monthly Expiry June 27

• Max open interest on call side at 12,000 (25,800 shares).
• Max open interest on put side at 11,500 (25.5 lakh shares).

Brokerage Radar

Macquarie on ICICI Bank

• Maintained ‘Outperform’; hiked price target to Rs 525 from Rs 465.
• Bank has been cautious in lending to NBFCs and promoter financing.
• Focus is on risk-adjusted operating profit growth rather than loan growth.
• ICICI Bank has revamped the risk appetite and underwriting processes.

Macquarie on NCC

• Maintained ‘Outperform’; hiked price target to Rs 155 from Rs 149.
• Well placed to capitalize on government initiatives like affordable housing, irrigation and roads.
• Balance sheet well placed to fund growth; leverage one of the lowest among peers.
• Management remains focused on measured growth.

Morgan Stanley on HDFC AMC

• Maintained ‘Overweight’ with a price target of Rs 2,000.
• Decided to provide liquidity measurement to certain FMPs impacted by exposure to Essel Group.
• Move to benefit investors and improve sentiments.
• Risk of under recovery now transferred to the company.

Morgan Stanley on Yes Bank

• Maintained ‘Underweight’; cut price target to Rs 95 from Rs 125.
• Reducing earnings estimate given slower loan growth and increasing asset quality risk.
• See increased challenges on capital raise given stock price fall and rating downgrades.
• Expect no loan growth over next three years and higher dilution risk.

Morgan Stanley on IndusInd Bank

• Maintained ‘Overweight’ with a price target of Rs 1,700.
• See strong EPS CAGR of 30 percent over FY19-21 despite higher credit cost and moderation in fees.
• Diversified revenues and merger synergies to lead to 26 percent growth in core PPOP over FY19-21.
• Preferred pick among midsized lenders; valuation is lower.

On Coal India

CLSA

• Maintained ‘Buy’ with a price target of Rs 290.
• Optimistic on volume growth despite on-ground challenges.
• Rail links coming up gradually which are critical.
• No visibility on price hikes; benign cost outlook.

JPMorgan

• Maintained ‘Neutral’; cut price target to Rs 260 from Rs 265.
• Sharp fall in global coal prices to weigh on earnings.
• Do not expect e-auction prices to collapse, but H2 prices needs to be seen.
• Large dividends and inexpensive valuations to support stock price.