All You Need To Know Going Into Trade On June 28

Asia stocks fluctuated at the open Monday with investors weighing the pace of economic recovery against more potent Covid-19 strains and central banks mulling stimulus reductions.

Japan’s benchmark ticked higher, while South Korea was little changed. Australia dipped amid stricter curbs to stem the spread of the more potent Delta Covid-19 variant. U.S. futures edged up.

Hong Kong canceled the morning trading session because of a black rainstorm signal. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.14% to 15,893.50 as of 7 a.m.

Global stocks are trading near a record high as anxiety about the Federal Reserve’s hawkish tilt eased, with investors dialing back concerns that U.S. policy makers will rush to boost interest rates despite mounting inflation pressures.

Cryptocurrencies will be closely watched after the U.K. restricted an affiliate of crypto exchange Binance from doing business in the country. Bitcoin rose for a second day, trading in the mid-$30,000s range in the Asian morning on Monday.

Oil edged higher ahead of an OPEC+ meeting later this week at which the alliance is forecast to announce supply increases that won’t be enough to keep pace with the global energy demand recovery.

Earnings Post Market Hours

JSW Energy Q4FY21 (Consolidated, QoQ)

• Revenue down 2% at Rs 1,569.62 crore Vs Rs 1,608.86 crore

• Net profit down 14% at Rs 106.60 crore Vs Rs 123.53 crore

• Ebitda up 5% at Rs 632.81 crore Vs Rs 604.43 crore

• Ebitda margin at 40.37% Vs 37.6%

• Recommended a dividend of Rs 2 per share

Finolex Industries Q4FY21 (Consolidated, QoQ)

• Revenue up 17% at Rs 1,249.34 crore Vs Rs 1,066.06 crore

• Net profit up 15% at Rs 298.84 crore Vs Rs 259.40 crore

• Ebitda up 18% at Rs 410.05 crore Vs Rs 346.26 crore

• Ebitda margin at 32.8% Vs 32.5%

• Recommended a final dividend of Rs 2 per share and a special dividend of Rs 2 per share

Stocks To Watch

• Thyrocare Technologies: Promoters to sell 3.49 crore equity shares, representing 66.14% of the equity share capital, at Rs 1,300 per share aggregating to Rs 4,546 crore to Docon Technologies. Further, Docon Technologies along with API Holdings have announced an open offer for acquisition of up to 1.37 crore fully paid-up equity shares, representing 26% of the Expanded Voting Share Capital, from the public shareholders of the company. Docon Tech and API Holdings will acquire shares at Rs 1,300 per share aggregating to total consideration of Rs 1,788 crore.

• Barbeque-Nation Hospitality: Approved raising up to Rs 99.99 crore via share issue. The company will issue 11.77 lakh shares at Rs 849 per share to Massachusetts Institute of Technology, 238 Plan Associates LLC and Motilal Oswal Equity Opportunities Fund Series – II.

• SBI: The bank’s performance trajectory of FY21 will continue in FY22, said Chairman Dinesh Khara during the annual general meeting. He also said that the bank will make efforts in ‘full force’ on stressed assets recovery.

• Lupin: Launched Emtricitabine and Tenofovir Disoproxil Fumarate tablets, used in the treatment of HIV-1 infection, in the American market after receiving approval from U.S. FDA. The drug maker's product is the generic version of Gilead Sciences, Inc's Truvada tablets and indicated in combination with other antiretroviral agents for the treatment of HIV-1 infection.

• Reliance Industries Ltd: Restarted a fluidized catalytic cracker unit at its export refinery in Gujarat, after an emergency shutdown on June 6. The unit underwent repairs and has since been stabilised and normal throughput has been reached, the company said.

• Brigade Enterprises: Approved the closure of QIP on June 25 and issue price of Rs 268 per share. The issue price is at a discount of 3.07% to the floor price of Rs 276.50 per share. The company has allotted 1.86 crore shares to qualified institutional buyers at the issue price of Rs 268 per share aggregating to Rs 499 crore.

• Shree Renuka Sugars: To expand Ethanol capacity to 1,400 Kilo Litre Per Day from 970 KLPD. Company to invest Rs 450 crore for expansion. The capacity is expected to be added by October 2022.

• Manappuram Finance: DSP Trustee raises stake in the company to 7.07%.

• Zuari Agro: India CCI approves Zuarinagar plant acquisition by Paradeep Phosphates

• Earnings: Hindustan Aeronautics Ltd, National Aluminium Co, NLC India, Brightcom Group, Future Lifestyle Fashions, Federal-Mogul Goetze (India), GFL, GIC Housing Finance, IFCI, Indo Amines, ISGEC Heavy Engineering, Kiri Industries, Orient Paper & Industries, Sadbhav Infrastructure Project, Sandur Manganese & Iron Ores, Tamilnadu Petroproducts, Triveni Turbine, Welspun Corp, Zee Media Corporation

New Listing/IPO Watch

• Dodla Dairy Ltd.’s shares to start trading after IPO gets 45.6 times demand for shares offered

• Krishna Institute of Medical Sciences Ltd.’s shares to start trading after IPO gets 3.9 times demand for shares offered

• India Pesticides IPO receives 29 times demand for shares on sale

Pledge Share Details

• Adani Ports and SEZ: Promoter group (Gautam Adani and Rajesh Adani) created a pledge of 1.16 crore shares on June 21.

• Aurobindo Pharma: Promoters (Kambam Spoorthi and M Sumanth Reddy) revoked pledge of 6 lakh shares between June 22-23

• JSW Steel: Promoters (Vividh Finvest and Siddeshwari Tradex) created a pledge of 16.64 lakh shares between June 21-24. Promoter JSW Techno Projects Management revoked pledge of 2.40 lakh shares on June 23.

  As reported on June 25.

Bulk Deals

• Rossell India: Elara India Opportunities Fund sold 3.41 lakh shares (0.93%) at Rs 145.2 per share.

• DCM Shriram Industries: Abakkus Asset Manager Llp bought 1.17 lakh shares (0.68%) at Rs 361 per share. Abakkus Emerging Opportunities Fund - 1 bought 5.18 lakh shares (2.98%) at Rs 361 per share. Finquest Financial Solutions sold 2.38 lakh shares (1.37%) at Rs 361 per share.

• Dhanvarsha Finvest: Citrus Global Arbitrage Fund bought 1.40 lakh shares (0.92%) at Rs 799.99 per share.

Insider Trades

• SBI Cards and Payment Services: Promoter SBI Life Insurance Company bought 13 lakh shares on June 24.

• Adani Green Energy: Promoter Infinite Trade and Investment bought 15 lakh shares on June 24.

• Aarti Surfactants: Promoters (Parimal Desai and Nikhil Holdings) bought 35,000 shares on June 23. Promoters (Jaya Gogri and Chandrakant Gogri) sold 30,000 shares on June 23.

• GMR Infrastructure: Promoter GMR Enterprises sold 1.88 crore shares between June 22-24.

• JK Cement: Promoter Ramapati Singhania sold 2,000 shares on June 24.

• Mahindra CIE Automotive: Promoter Participaciones Internacionales Autometal, Dos S.L bought 2.17 lakh shares on June 23.

• Mold-Tek Packaging: Promoter A Sundeep sold 3,737 shares between June 18-21.

• Titagarh Wagons: Promoter Titagarh Logistics Infrastructures bought 1.62 lakh shares between June 21-22.

• Ultramarine & Pigments: Promoters (Sridhar Sundararajan and Jayalakshmi Venkataraman) sold 3,855 shares on June 24.

• Valiant Organics: Promoter Dhanvanti Gala sold 3,000 shares on June 24.

• Wabco India: Promoter ZF International UK sold 6.50 lakh shares between June 23-25.

Trading Tweaks

• Ex-Date Final Dividend: GM Breweries

• Ex-Date AGM: Shriram Pistons & Rings

• Record Date Dividend: Vimta Labs

• Record Date Interim Dividend: R Systems International

• Price Band Revised From 10% To 5%: Orchid Pharma

• Price Band Revised From 10% To 20%: Sagar Cements

• Price Band Revised From 20% To 10%: Ajmera Realty & Infra India

• Move Into Short-Term ASM Framework: Brightcom Group, Ajmera Realty & Infra India, BL Kashyap and Sons

• Move Out Of Short-Term ASM Framework: Nava Bharat Ventures, Rossell India, Zuari Agro Chemicals, Insecticides (India), Jai Corp, Future Enterprises

• Move Into ASM Framework: Avadh Sugar & Energy, Uttam Sugar Mills, SREI Infrastructure Finance, Sagar Cements

Money Market Update

Indian bonds may start trading with a weaker bias amid a continued rise in crude prices and U.S. Treasury yields. The rupee may also start the week lower in line with Asian peers.

• India’s central bank rejected all bids for the benchmark 10-year bond and got underwriters to rescue the shorter-maturity debt at the weekly auction on Friday in efforts to keep yields under check

• 10-year yields rose 2bps to 6.03%, while that on 5-year bond climbed 5bps on Friday

• IGBs are expected to trade weak and OIS to stay volatile after last week’s sell-off as the global rates backdrop continues to support positioning for earlier policy normalization, Barclays, wrote in a note

  • This will likely push the RBI to step up efforts to keep yields in the desired range

  • Last week’s Rs 26,000 crore bond auction saw RBI sending yet another yield signal by devolving Rs 2,900 crore out of Rs 3,000 crore of 4.26% 2023 at 4.27% and accepting no bids for 5.85% 2030

• USD/INR little changed at 74.1975 on Friday

  • Implied opening from forwards suggest spot may start trading around 74.25

• USD/INR is likely to head to 74 and then the 73.5 support level, according to a Scotiabank note

F&O Cues

• Nifty July futures ended at 15,880; a premium of 19.65 points.

• Nifty July futures added 3.10% and 5,784 shares in Open Interest

• Nifty Bank July futures ended at 35,471; a premium of 106.35 points

• Nifty Bank July futures added 4.60% and 3,412 shares in Open Interest