All You Need To Know Going Into Trade On June 18

Asian markets are retreating at the start of trade as investors continue to weigh a rise in Covid-19 cases in some parts.

Haven assets like the Japanese Yen have edged higher. "The market is searching for a new catalyst," Sameer Samana of Wells Fargo Investment Institute told Bloomberg TV in an interview.

The Singapore-traded SGX Nifty, an early indicator of the NIfty 50 index's performance in India, fell 0.4% to 9,828 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.

Let’s take a look at what may influence equities in today’s session:

• Markets in Japan, Australia and South Korea are trading with losses after a volatile end to the session on Wall Street.
• Futures on the Dow Jones are trading lower by 160 points after the benchmark index ended with losses of 0.6% on Wednesday.
• Nasdaq managed to outperform its peers led by Apple and Microsoft.
• Fed Chair Jerome Powell urged the Congress to not pull back too quickly on federal relief on households and small businesses put in place due to the pandemic.
• Policy decision from the Bank of England is awaited later today.
• Yield on the 10-year treasury fell one basis point to 0.73%
• West Texas Intermediate crude fell another 1.5% to $37.39 per barrel.

Get your daily fix of the global markets here.

Stocks To Watch

• HDFC AMC: Offer for Sale to non-retail investors gets 2.7 times demand. Issue for retail investors opens today.
• Infosys: Telangana High Court sets aside the sales tax commissioner's assessment notice against the company. The notice was issued in March for recovery of sales tax for assessment year 2015-16. Infosys argued that the tax department did not provide an opportunity of hearing. The court set aside the notice saying the tax department failed to follow principles of natural justice as the time of hearing was fixed during the lockdown.
• India Cements: Calls reports of Radhakishan Damani considering buying controlling stake in the company has 'factually incorrect.'
• DCB Bank: The amount in overdue categories where the moratorium was extended as on March 31, 2020, has reduced to Rs 710 crore as on May 31, 2020 from the initial Rs 1,908.08 crore.
• Cummins India: Does not provide revenue guidance for FY21. Customers resume operations partially. Expects significant impact on Q1FY21 results due to lockdown.
• Hexaware: Board to consider due diligence report for de-listing proposal on June 20.
• Borosil Renewables: Production from its furnace at the Gujarat plant has started, after maintenance. Production will continue to remain unchanged.
• Covid-19 Impact On JK Cement: All four integrated and two split grinding units of grey cement, one unit of wall putty and white cement are operational. Dispatches are taking place from all the plants. Fly ash is being secured from power plants having more lead distance due to lower availability. Capex in FY21 restricted to Rs 500 crore, of which Rs 100 crore will be from internal accruals and the rest from borrowed funds. The board has also approved raising Rs 250 crore via NCDs.
• Karnataka Bank: Launches special health insurance policy with Universal Sompo General Insurance. The policy will cover uncertainties posed by Covid-19. One can avail health cover for Covid-19 at a premium of Rs 399 under this policy. The policy will cover in-patient hospital expenses up to Rs 3 lakh, outpatient treatment up to Rs 3,000 and also provide a sum of Rs 1,000 per day towards expenses incurred towards 14 days of institutional quarantine. Policy is vaild for 120 days and available for customers between 18-65 years of age.
• Union Bank of India: First two quarters of FY21 may see impact on revenue due to Covid-19. However, normalcy is expected in the second half.
• CreditAccess Grameen: Board approves re-appointment of Udaya Kumar Hebbar as MD and CEO till June 2023.
• Somany Ceramics: To consider raising capital via debt on June 25.
• HT Media: To consider raising funds via NCDs on June 26.
• Non-Nifty Earnings Today: Whirlpool, Bajaj Consumer, Brigade Enterprises, Thermax, IRB Infra, MOIL, GSFC, City Union Bank.

Earnings Reported After Market Hours

Pidilite Industries Q4FY20

• Revenue down 6% to Rs 1,545 crore
• Net profit down 33% to Rs 157.5 crore
• Ebitda up 8% to Rs 301 crore
• Ebitda margin expands to 19.5% from 17%
• Other income of Rs 14 crore this quarter as compared to Rs 56 crore in the base quarter
• Exceptional loss of Rs 33 crore this quarter
• Exceptional item pertains to impairment loss on plant and machinery at the Dahej Elastomer Project
• Lost sales of around Rs 150 crore in Q4 due to the lockdown announced in March
• All numbers are consolidated and compared on a year-on-year basis

Indraprastha Gas Q4FY20

• Revenue flat at Rs 1,552.5 crore
• Net profit up 12.4% to Rs 253.5 crore
• Ebitda up 13.8% to Rs 376.8 crore
• Ebitda margin at 24.3% from 21.5%
• Lower raw material costs aid margins
• Volumes in FY20 up 9% to 2,155 million scm
• All numbers are standalone and compared on a year-on-year basis

Muthoot Finance Q4FY20

• Net Interest Income up 29.5% to Rs 1,580.6 crore
• Net profit up 59.2% to Rs 815.1 crore
• Loan Assets up 22% to Rs 41,611 crore
• Capital Adequacy Ratio in FY20 at 25.47% from 26.05%
• All numbers are standalone and compared on a year-on-year basis

Fortis Healthcare Q4FY20

• Revenue down 6% to Rs 1,112.9 crore
• Net loss narrows to Rs 44.5 crore from Rs 135.6 crore
• Ebitda up 9.4% to Rs 125.8 crore
• Ebitda margin at 11.3% from 9.7%
• Lower employee costs and zero hospital service fee expenses aid margin expansion
• Healthcare segment revenue down 6% to Rs 913.4 crore
• Diagnostic revenue down 8% to Rs 231.9 crore
• Derecognising deferred tax asset for one of its subsidiary impacts bottomline
• All numbers are consolidated and compared on a year-on-year basis

Cummins India Q4FY20

• Revenue down 21.5% to Rs 1,052.8 crore
• Net profit down 16% to Rs 116.8 crore
• Ebitda down 61.2% to Rs 66.7 crore
• Ebitda margin down to 6.3% from 12.8%
• Deferred tax reversal of Rs 24.4 crore this QUARTER
• Higher raw material and employee costs impact margins
• Higher other income and deferred tax reversal reduce decline in profit
• Domestic Sales down 22% to Rs 775 crore
• Export sales down 20% to Rs 257 crore
• All numbers are standalone and compared on a year-on-year basis

JK Cement Q4FY20

• Revenue down 1% to Rs 1,477.4 crore
• Net profit down 99.9% to Rs 20 lakh
• Ebitda up 23.9% to Rs 346.3 crore
• Ebitda margin at 23.4% from 18.7%
• Low power, fuel and freight costs aid margin expansion
• Exceptional loss of Rs 178.2 crore due to provision for loss at Fujairah unit.
• Higher deferred taxes and exceptional items drag net profit
• Ebitda per tonne up 34% to Rs 1,298
• Sales volume down 7% to 26.67 lakh tonnes
• All numbers are standalone and compared on a year-on-year basis

Brokerage Radar

Nomura On Indraprastha Gas

• Buy rating maintained
• Price target of Rs 575
• Lockdown dents demand
• Outlook remains robust
• Double-digit volume growth can return soon
• Margins likely to improve
• Cut FY21/22 earnings estimates due to lockdown
• Scope for further re-rating due to robust long-term outlook
• Preferred pick among gas players

Jefferies On Indraprastha Gas

• Hold rating maintained
• Price target raised to Rs 450 from Rs 430
• Robust volume growth in the fourth quarter
• Volumes may normalise by Q3FY21
• Model a gradual expansion in Ebitda margins in FY22
• Recovery in volumes, expansion in margins is priced in

Jefferies On HEG

• Buy rating maintained
• Price target of Rs 1,200
• Ebitda impacted by inventory write-down
• Ebitda loss was steeper than estimate
• Inventory write-down was due to a sharp fall in electrode realisations
• Balance sheet strong despite poor operational performance
• Currently trades at inexpensive valuations of 1.2x EV/Ebitda on FY22 earnings

Bulk Deals

• Take Solutions: Shriram Group Executives Welfare Trust and Shriram Ventures acquired 1.22 crore shares (8.24%) at Rs 51.9 per share and promoters Esyspro Infotech and Asia Global Trading sold 1.22 crore shares (8.24%) at Rs 51.9 per share
• Supreme Industries: Axis Mutual Fund acquired 12.25 lakh shares (0.96%) at Rs 1,080 per share and promoter Venkatesh Investment sold 16.51 lakh shares (1.3%) at Rs 1,080.23 per share. Other buyers include SBI Mutual Fund.

Pledged Share Details

• Zee Entertainment Enterprises: Promoters created pledge of 20.6 lakh shares on June 11
• Bodal Chemicals: Promoter Bhavin Patel released pledge of 24.75 lakh shares on June 16
• Adani Enterprises: Promoter SB Adani Family revoked pledge of 55 lakh shares on June 16
• Adani Ports & SEZ: Promoter SB Adani Family revoked pledge of 26 lakh shares on June 16
• Jubilant FoodWorks: Promoter Jubilant Consumer revoked pledge of 5 lakh shares on June 15
• Adani Transmission: Promoter SB Adani Family revoked pledge of 72 lakh shares on June 16

(As Reported On June 17)

Who’s Meeting Whom

• AstraZeneca Pharma: To meet Hill Fort Capital on June 19
• IIFL Securities: To meet RatnaTraya Capital on June 18
• Affle India: To meet Matthews International Capital, Ocean Dial AMC and ICICI Ventures between June 18-23
• Dixon Technologies: To meet ICICI Prudential, Motilal Oswal AMC and other investors between June 18-24

Trading Tweaks

• Price Band Revised From 10% To 5%: IL&FS Investment Managers, Khadim, Shakti Pumps , Tata Communications, Xelpmoc Design & Tech, Zuari Agro Chemicals
• Price Band Revised From 20% To 10%: Century Extrusions, Morepen Laboratories, Orient Cement, Zuari Global
• Move Into ASM Framework: Nectar Lifesciences, BLB
• Move Into Short-Term ASM Framework: Morepen Laboratories, Bajaj Hindusthan Sugar, Zuari Global, Century Extrusions, Zensar Technologies.
• Move Out Of Short-Term ASM Framework: Himatsingka Seide, AGC Networks, Brigade Enterprises, Intellect Design Arena, Prism Johnson, Gujarat Fluorochemicals, PG Electroplast, Dalmia Bharat Sugar and Industries , Dishman Carbogen Amcis, Reliance Infrastructure , Gabriel India .

Insider Trading

• Kotak Mahindra Bank: Promoters sold 3 lakh shares on June 16
• Apollo Tyres: Promoter PTL Enterprises acquired 3.62 lakh shares on June 12

(As Reported On June 17)

Money Market Update

• The rupee ended at 76.17 against the U.S. Dollar as compared to Tuesday's close of 76.21.
• The currency snapped a four-day losing streak.
• Rupee ended as the third-best performing Asian currency behind the Singapore Dollar and the Taiwanese Dollar.

F&O Cues

• Nifty June futures closed at 9,854; discount widens to 25 points from 16 points
• Nifty June futures shed 0.1% and 7,950 shares in Open Interest
• Nifty Bank June futures closed at 20,254; discount widens to 42 points from 1 point
• Nifty Bank June futures add 8.5% and 1.4 lakh shares in Open Interest
• Nifty Put-Call Ratio at 1.23 from 1.28 across all series
• Enters F&O Ban: Escorts
• Stocks Now In F&O Ban: Escorts, Adani Enterprises, Vodafone Idea, JSPL, Just Dial

Nifty Weekly Expiry: June 18

• Maximum Open Interest on Call side at 10,000 strike (27.2 lakh shares)
• Maximum Open Interest on Put side at 9,500 strike (21.8 lakh shares)
• Active Options: 9,800 Put (+4 lakh shares), 10,100 Call (+6.8 lakh shares)

Nifty Monthly Expiry: June 25

• Maximum Open Interest on Call side at 10,000 strike (23.8 lakh shares)
• Maximum Open Interest on Put side at 9,000 strike (40 lakh shares)