All You Need To Know Going Into Trade On June 3
A vendor selling snacks from the back of his bicycle (Photographer: Taylor Weidman/Bloomberg)  

All You Need To Know Going Into Trade On June 3

Asian stocks climbed Thursday as traders took the latest Federal Reserve comments about the prospect of tapering stimulus in their stride.

Shares rose in Japan, Australia and South Korea. U.S. contracts advanced after the S&P 500 and Nasdaq 100 posted a modest increase. The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index’s performance, rose 0.54% to 15,715 as of 7 a.m.

Philadelphia Fed President Patrick Harker said it's appropriate “to slowly, carefully move back” on bond purchases at the appropriate time. Ten-year U.S. Treasury yields dipped below 1.60%.

Investors are also digesting President Joe Biden’s plans to amend a U.S. ban on investments in companies linked to China’s military, and looking ahead to Friday’s U.S. jobs report for the latest insight into the rebound from the pandemic and inflation risks.

Oil retained gains on the prospect of a recovery in demand, a rally that’s bolstered commodity-linked currencies like the Canadian dollar and the Norwegian krone. Bitcoin traded at about $37,500, maintaining its advance this week after May’s cryptocurrency rout.

Data To Watch

  • 10:30am: Markit India PMI Services for May, prior 54.0
  • 10:30am: Markit India PMI Composite for May, prior 55.4
All You Need To Know Going Into Trade On June 3

Earnings Post Market Hours

Ratnamani Metals & Tubes Q4FY21 (Consolidated, QoQ)

  • Revenue up 57% at Rs 696.07 crore Vs Rs 442.53 crore
  • Net profit up 82% at Rs 109.42 crore Vs Rs 60.15 crore
  • Ebitda up 96% at Rs 158.83 crore Vs Rs 81.18 crore
  • Ebitda margin at 22.8% Vs 18.3%
  • Recommended a dividend of Rs 14 per share
  • Approved issuance of NCDs for Rs 500 crore

Muthoot Finance Q4FY21 (Consolidated, QoQ)

  • NII up 5% at Rs 2,053.5 crore Vs Rs 1,952.2 crore
  • Net profit up 2% at Rs 1,019.9 crore Vs Rs 1,004.8 crore

Panacea Biotec Q4FY21 (Consolidated, QoQ)

  • Revenue up 19% at Rs 168.27 crore Vs Rs 141.76 crore
  • Net loss at Rs 54.14 crore Vs Rs 40.05 crore
  • Ebitda down 94% at Rs 0.94 crore Vs Rs 15.15 crore
  • Ebitda margin at 0.6% Vs 10.7%
  • Approved raising of funds up to Rs 1,200 crore by way of issuance of equity shares or other securities.

MTAR Technologies Q4FY21 (Consolidated, QoQ)

  • Revenue up 25% at Rs 69.10 crore Vs Rs 55.20 crore
  • Net profit up 1.05 times at Rs 18 crore Vs Rs 8.8 crore
  • Ebitda up 72% at Rs 29.90 crore Vs Rs 17.40 crore
  • Ebitda margin at 43.3% Vs 31.5%
  • Recommended a final dividend of Rs 3 per share. Record date for the same is June 23.

Stocks To Watch

  • Reliance Industries: Process of separating oil-to-chemicals businesses into a subsidiary is expected to be completed in 2021, Chairman Mukesh Ambani said. The company operated O2C facilities at near 100% by shifting focus to export markets. It will continue to upgrade strategy and roadmap to achieve net carbon zero target sooner than 2025. Further, it will reach peak gas production of 30 mmscmd from its three fields in KG-D6 block by 2023. Two fields already in production, third field to begin output in FY23. Field to meet 15% of India’s gas demand by 2023, reduce dependence on imports. Reliance Jio and Qualcomm successfully tested 5G solutions in India, achieving 1Gbps speed on Jio 5G core network and 5G smartphones. The company has pre-paid $7.8 billion of long-term foreign currency debt during FY21. Further, it has submitted a proposal for the application of Niclosamide as a potential drug against Covid-19.
  • Tata Power: The company’s wholly-owned subsidiary, Tata Power Solar, has received a Letter of Award to build 210 MWp of Solar PV projects for NTPC in Gujarat. The total order value of the projects is Rs 686 crore. The commissioning date for NTPC is set for November 2022. With this addition, the order pipeline of Tata Power Solar stands at about 2.8 GW with an approximate value of Rs 13,000 crore.
  • Rossari Biotech: To acquire Unitop Chemicals for Rs 421 crore, payable in multiple tranches. 65% of the equity share capital will be acquired upon closing of the deal, remainder over the next two years. Rossari plans to fund the deal through cash on the balance sheet and won’t raise any debt.
  • Wipro: Sold its entire stake in Denim Group for $22.42 million. In March 2018, the company had acquired a 33.33% stake in Denim Group and Denim Group Management, LLC for $8.83 million. Further, the company has bought a minority stake in Squadcast Inc. for $1.2 million. It has also partnered with Finastra to help corporate banks across AsiaPacific accelerate their digital transformation. The companies will create an offering that will combine Wipro’s comprehensive services catalogue with Finastra’s front-to-back trade finance and cash management solutions.
  • NHPC: Board to meet on June 10 to consider a proposal for raising of debt up to Rs 4,300 crore through issuance of corporate bonds, raising of term loans or external commercial borrowings in suitable tranches.
  • Jaypee Infratech: Creditors’ panel to meet on June 7.
  • Shriram Transport Finance Company: Board to meet on June 7 to consider raising of funds by way of issue of equity shares, convertible securities or warrants through preferential issue.
  • Ruchi Soya Industries: To launch 10 products under nutraceuticals & wellness segment. The company will market these products under Patanjali and Nutrela branding in the medical, sports and general nutrition category. The Board of Directors have also approved execution of breakfast cereals and noodles assignment agreement between PAL and the company for a consideration of Rs 3.50 crore.
  • Reliance Infrastructure: Board to meet on June 6 to consider raising of long-term resources by the issue of equity shares, equity-linked securities or warrants convertible into equity shares, by way of preferential issue, QIP or rights issue.
  • Wardwizard Innovations & Mobility: Sold 479 electric two-wheelers in May. The company has received booking orders for more than 2,100 units.
  • Earnings: APL Apollo, Arvind Fashion, GSPL, Nucleus Software, Quess Corp, Nilkamal

Pledge Share Details

  • Asian Paints: Promoter Group Smiti Holding and Trading Company revoked pledge of 5.77 lakh shares on May 27.
  • Apollo Hospitals Enterprise: Promoter Suneeta Reddy created a pledge of 8.60 lakh shares on May 28.
  • Adani Enterprises: Promoter Group (Gautam Adani and Rajesh Adani) revoked pledge of 6.50 lakh shares on May 31.
  • Dish TV India: Promoter Direct Media Distribution Ventures invoked pledge of 3.30 lakh shares on May 28.
  • JSW Energy: Promoter Group Siddheshwari Tradex revoked pledge of 40 lakh shares on June 1. Promoter Group JSW Investments created a pledge of 90 lakh shares on May 31.As reported on June 2.

Bulk Deals

  • Zee Entertainment Enterprises: Integrated Core Strategies Asia Pte sold 56.62 lakh shares (0.59%) at Rs 212.63 per share.
  • Rupa & Company: Lambodar Ferro Alloys sold 5.75 lakh shares (0.72%) at Rs 484.87 per share.
  • Themis Medicare: Tejas Tradefin Llp bought 72,009 shares (0.78%) at Rs 735.76 per share.

Insider Trades

  • GRM Overseas: Promoters (Mamta Garg and Atul Garg) bought 4,000 shares on June 1.
  • Godrej Agrovet: Promoter Godrej Industries bought 36,357 shares on May 28.
  • Man Infraconstruction: Promoter Parag Shah bought 1 lakh shares on June 1.
  • Tanla Platforms: Promoter Dasari Reddy bought 4,930 shares on June 1.
  • Ultramarine & Pigments: Promoters (Sridhar Sundararajan Huf and Kala Sundarvedha) sold 9,974 shares on June 1.

Who’s Meeting Whom

  • United Breweries: To meet ICICI Securities on June 3, Morgan Stanley on June 8, B&K Trinity India on June 17 and Franklin Templeton Asset Management on June 18.
  • Kalyan Jewellers India: To meet Samsung AMC-Hong Kong on June 7.

Trading Tweaks

  • Ex-Date Dividend: State Bank of India
  • Ex-Date Final Dividend: Cyient
  • Record Date Special Dividend: Kanpur Plastipack
  • Record Date Income Distribution: Tower Infrastructure Trust
  • Price Band Revised From 10% To 5%: Kirloskar Brothers, Kirloskar Industries, Tide Water Oil (India), Prozone Intu Properties
  • Price Band Revised From 20% To 10%: PNB Gilts, Themis Medicare
  • Move Into Short-Term ASM Framework: PNB Housing Finance, Infibeam Avenues, Reliance Communications, The Anup Engineering
  • Move Out Of Short-Term ASM Framework: Easy Trip Planners, Oriental Hotels, Mastek
  • Move Into ASM Framework: Kirloskar Brothers, Tata Teleservices (Maharashtra)
  • Move Out Of ASM Framework: Reliance Communications

Money Market Update

  • The rupee ended at 73.08 against the U.S. Dollar on Wednesday as compared to Tuesday's closing of 72.90.

F&O Cues

  • Nifty June futures ended at 15,625.15; premium of 48.95 points.
  • Nifty June futures shed 5.92% and 8,437 shares in Open Interest
  • Nifty Bank June futures ended at 35,540; premium of 166.25 points
  • Nifty Bank June futures shed 1.80% and 1,244 shares in Open Interest
  • Securities that continue to be on ban list: Bank of Baroda, Sun TV and SAIL
All You Need To Know Going Into Trade On June 3
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