All You Need To Know Going Into Trade On June 27

Asian stocks opened mixed as concerns linger over the impact of potential global trade restrictions.

Chinese assets will be in the spotlight again with both the currency and stocks under pressure. Japanese and Australian equity indexes were little changed after the S&P 500 Index climbed back above its average level over the past 50 days.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.2 percent lower at 10,738.50 as of 7:10 a.m.

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BQ Live

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

U.S. Market Check

U.S. stocks rebounded from the worst selloff since early April as a rally in American crude overshadowed lingering concerns about the impact of heightened trade tensions.

Europe Check

• European stocks erased gains to close little changed as concerns over rising protectionism continued to weigh on markets.

Asian Cues

• Japan’s Topix index added less than 0.1 percent.
• Australia’s S&P/ASX 200 Index rose 0.2 percent.
• South Korea’s Kospi was little changed.
• Futures on Hong Kong’s Hang Seng Index added 0.1 percent.
• Futures on the S&P 500 nudged up 0.1 percent.
• The MSCI Emerging Market Index sank 0.3 percent Tuesday to the lowest in 10 months.

Commodity Cues

• West Texas Intermediate crude increased 0.1 percent to $70.58 a barrel after surging 3.6 percent.
• Gold held at $1,257.82 an ounce.

Shanghai Exchange

• Steel snaps two-day losing streak; up 0.2 percent
• Aluminium snaps two-day losing streak; up 0.7 percent
• Zinc snaps seven-day losing streak; up 1.1 percent
• Copper trades higher; up 0.3 percent
• Rubber trades higher; up 0.3 percent

Indian ADRs

Stories You Might Have Missed

• Mallya seeks court approvals to sell some frozen assets worth Rs 13,900 crore.
• The U.S. Supreme Court upheld President Donald Trump’s travel ban against a broad legal attack.
• General Electric Co. plans to spin off its health-care business.
• Soccer flag-waving gets more difficult as European identities grow less straightforward.
• India set to play their 100th T20I match against Ireland.
• McDonald’s dip in sale: Company to sell muffin tops to win back lost breakfast customers.
• Art crime seems effortless, but the heavy lifting comes later.
• How to pay less and travel business class.

Stocks To Watch

• Manpasand Beverages to approve Q4 results today.
• Infosys arm to provide banking solution to Santander in U.K.
• Voltas clarified that it is not aware on media report on Tata Sons selling stake.
• Tata Communications partnered with data center solutions company Edgeconnex.
• Majesco U.S. arm’s insurance platform goes live for American Capital Assurance Corp.
• Hindustan Unilever said reports of Horlicks deal speculative.
• IDBI Bank clarified it has exposure of Rs 47.18 crore to DS Kulkarni Developers.
• Relaxo Footwear mulls merging Marvel Polymers and Relaxo Rubber with self.
• Gallantt Ispat to consider stock split on June 29.

Earnings Reactions To Watch

Fortis Healthcare Q4 (YoY)

• Net loss of Rs 932 crore versus net loss of Rs 68 crore.
• Revenue down 3 percent to Rs 1,086 crore.
• Ebitda down 11 percent to Rs 75 crore.
• Margin at 6.9 percent versus 7.5 percent.
• Reported an exceptional loss of Rs 833.5 crore in March quarter.
• Exceptional loss related to write off goodwill and write off of inter corporate deposits and advances.
• Net debt at Rs 1,404 crore versus Rs 1,279 crore.
• Net to equity at 0.26 points versus 0.2 times.

Bulk Deal

• CARE Ratings: Dhandho India Zero Fee Fund Offshore Ltd. acquired 2.05 lakh shares or 0.69 percent at Rs 1188.24 each.

Who’s Meeting Whom

• Shalby to meet SBI Life Insurance Co on June 27.
• Bajaj Finserv to meet investors from June 27-29.
• Shriram City Union Finance to meet Ambit Capital and other investors from June 27-29.

Insider Trades

• Eveready Industries promoter acquired 15,000 shares on June 25.
• Persistent Systems promoter group sold 20,000 shares from June 20-22.

(As reported on June 26)

Trading Tweaks

• Jubilant Industries circuit filter revised to 5 percent.
• Solara Active Pharma Sciences Limited demerged from Strides Shasun to list on exchanges today.
• The New India Assurance Company Limited ex date for 1:1 bonus.
• Filatex India Limited ex date for stock split to Rs 2 from Rs 10 per share.
• Jyothy Laboratories Limited and Prabhat Telecoms (India) Limited trading day before going ex bonus.

Offerings

• Varroc Engineering IPO day 2. Issue subscribed 0.3 times on day 1.

Rupee

• Rupee closed at 68.26/$ versus 68.13/$ on Monday.

F&O Cues

• Nifty futures end trade at 10766, discount of 3 points.
• Nifty futures add 7.7 lakh shares in open interest.
• Nifty Bank futures shed 1.2 lakh shares in open interest.
• Max open interest for June series at 11,000 Call, open interest at 53.5 lakh.
• Max open interest for June series at 10,700 Put, open interest at 50.4 lakh.

F&O Ban

• In ban: DHFL, JP Assoc, Infibeam, CG Power, IDBI, Wockhardt, jain Irrigation.
• New in ban: Jain Irrigation.
• Alert: Only intraday positions can be taken in stocks which are in F&O ban, incase of rollover of these intraday positions there is a penalty.

Put-Call Ratio

• Nifty 1.53 from 1.48
• Nifty Bank 0.80 from 0.89

Fund Flows

Brokerage Radar

CLSA on Cement

• Believe cement pricing is close to bottoming-out.
• Expect an uptrend despite the lean monsoon season.
• Channel checks already indicate price hikes across most markets.
• Expect steady rise in industry utilization.
• Preferred picks: Ramco, Shree Cement and UltraTech.

IIFL on AU Small Finance

• Upgraded to ‘Add’ from ‘Sell’; maintained price target at Rs 710.
• Upgrade to factor capital infusion and earnings upgrade.
• Management to focus on retail deposits, increasing cross-sell and building fee-based services.
• Valuations expensive but still acceptable.

Edelweiss on Security Intelligence Services

• Maintained ‘Buy’ with a price target of Rs 1,532.
• SIS has a best-in-class operational model in terms of efficiency.
• Focus remains on prudent M&A, improving operating efficiency.
• Company’s strong competitive edge in the country underpins its outperformance.
• FY18 growth momentum to continue into FY19; Current growth run-rate is healthy.

Axis Capital on Sun TV

• Maintained ‘Buy’; cut price target to Rs 1,200 from Rs 1,250.
• Content deal with Arasu is in place now .
• Arasu had switched off SUNTV channels for analog subscribers which led to recent dip in ratings.
• Flanking channel in Tamil to be launched in Q3.
• Additional content cost to be limited.

Ventura on SAIL

• Initiated ‘Buy’ with a price target of Rs 119.
• Booming Indian economy and government’s thrust on infrastructure to keep steel demand firm.
• Post capex cycle – SAIL to be India’s largest steel producer.
• Lofty pricing, high volume growth and improving product mix to drive revenue.
• Increased production and improved product mix to boost revenue and realisations.
• Expect revenue and Ebitda to compound at 14 percent and 54 percent respectively over FY18-21.

Elara Capital on Tiles Sector

• PMAY bonanza: double-digit volume growth by March 2020.
• Expect incremental demand to exceed supply.
• Tide in favour of low-to-mid-priced products.
• Limited impact in the near term from eWay Bill.
• Preferred picks are Prism Johnson and Somany Ceramics.
• Prism Jhonson: Initiated ‘Buy’ with a price target of Rs 148; implying a potential upside of upside 46 percent from the last regular trade.
• Somany Ceramics: Initiated ‘Accumulate’ with a price target of Rs 611.
• Asian Granito: Initiated ‘Accumulate’ with a price target of Rs 356.
• Kajaria Ceramics: Initiated ‘Reduce’ with price target of Rs 529.