All You Need To Know Going Into Trade On Nov. 16

Asian equities rounded out the week in mixed fashion as investors gauge whether China and the U.S. can de-escalate their trade spat before the G-20 summit later this month.

Stocks slipped in Japan and Hong Kong, and were little changed in South Korea, China and Australia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.35 percent to 10,659.50 as of 7:25 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 rose for the first time in six days, with beaten-down technology shares leading the rebound on speculation trade tensions will ease.
• The yield on 10-year Treasuries held at 3.11 percent.

Europe Market Check

European shares reversed course after the resignation of U.K. Brexit Secretary Dominic Raab sparked a series of resignations by other ministers, a blow to Prime Minister Theresa May, who had just eked out Cabinet approval for her Brexit proposal late Wednesday.

Asian Cues

• Japan’s Topix index slid 0.3 percent.
• The Shanghai Composite added 0.1 percent.
• Hong Kong’s Hang Seng fell 0.2 percent.
• Australia’s S&P/ASX 200 Index advanced 0.1 percent.
• South Korea’s Kospi rose 0.2 percent.
• The S&P 500 Index gained 1.1 percent.
• Nasdaq 100 futures slipped 0.8 percent.

Coming Up

• Malaysia’s economic growth probably picked up in the third quarter as a tax holiday boosted household spending, economist forecast ahead of the GDP data release Friday.

Commodity Cues

• West Texas Intermediate crude was up 0.1 percent to $56.52 a barrel.
• Brent crude traded higher for the second day, up $66.80 per barrel.
• Gold rose 0.2 percent to $1,216.14 an ounce.

London Metal Exchange

• Copper traded higher for the second day, up 1.5 percent.
• Zinc traded higher for the second day, up 2.9 percent.
• Nickel traded lower for the sixth day, down 0.4 percent.
• Lead snapped a two-day rally, down 1.2 percent.
• Tin traded higher for the fourth day, down 0.4 percent.

Indian ADR

Stocks To Watch

• Indian government is said to have asked the Tata Group to rescue Jet Airways. Both Tata Group and Government are said to be in talks with banks to take haircut in the deal, according to Bloomberg News.
• Yes Bank: OP Bhatt resigns from his CEO search panel citing conflict of interest.
• Infosys: Deputy CFO Jayesh Sanghrajka appointed as interim CFO as MD Ranganath’s term ends.
• Tata Sponge board approves issuance of preference shares worth Rs 1,000 crore to promoter Tata Steel on a private placement basis.
• SRF Industries extends capex estimates from Rs 180 crore to Rs 257 crore for enhancement and integration of agrochemical plant in Gujarat.
• Lemon Tree signs license agreement for a 76-room property in Odisha. The hotel will be operational by March 2020.
• Punjab and Sind Bank revises MCLR across various tenors with effect from Nov. 16. Overnight MCLR at percent and one-year MCLR at 8.8 percent.
• NHPC sets Nov. 30 as record date for shares buyback.
• Government plans to sell shares worth $2 billion in ONGC, Oil India and Indian Oil, acccording to ET report.

Offerings

• Titagarh share sale in Cimmco subscribed 5 percent for non-retail; offer for retail investors opens today.

Earnings To Watch

• Tourism Finance Corporation of India
• Srei Infrastructure

Bulk Deals

• NRB Bearing: HDFC MF acquired 14.4 lakh shares or 1.48 percent equity at Rs 184.96 each.

Kotak Mahindra Bank

• Government of Singapore acquires 95.6 lakh shares or 0.50 percent equity at Rs 1130 per share.
• Aberdeen PLC acquired 25.6 lakh shares or 0.13 percent equity at Rs 1,130 per share.
• Nomura Pension Fund acquired 6.3 lakh shares or 0.03 percent equity at Rs 1,130 per share.
• ING Mauritius Investments sold 1.3 crore shares or 0.67 percent equity at Rs 1,130 per share.

Bharat Financial Inclusion

• Smallcap World Fund INC acquired 7.4 lakh shares or 0.53 percent equity at Rs 936.45 each.
• William Blair And Company LLC sold 8.8 lakh shares or 0.63 percent equity at Rs 936.73 each.

Trading Tweaks

• KG Denim price band revised to 10 percent.
• Veto Switchgears and Cables price band revised to 5 percent.
• Innovative Ideals and Services price band revised to 2 percent.
• Promact Impex, Castex Technologies, Electrosteel Steels to move into ASM Framework.

Who’s Meeting Whom

• Heidelberg Cement to meet Alquity Investments on Nov. 16.
• Narayana Hrudalaya to meet Tata MF, Motilal Oswal PMS and other investors on Nov. 16.

Insider Trading

• Greaves Cotton promoter Karun Carpets acquired 1.3 lakh shares from Nov. 13-14.
• Aarti Industries promoter sold 1.3 lakh shares from Nov. 13-14.

Rupee

• Rupee closed at 71.99/$ on Thursday from 72.31/$ on Wednesday.

F&O Cues

• Nifty November futures closed trading at 10,630, premium of 14 points.
• Nifty November open interest down 0.3 percent; Nifty Bank November open interest up 11 percent
• Max open interest for November series at 11,000 Call, open interest at 34.1 lakh shares.
• Max open interest for November series at 10,200 Put, open interest at 33.6 lakh shares.

Stocks In F&O Ban

• Adani Power
• Jet Airways
• Adani Enterprises

Put-Call Ratio

• Nifty PCR at 1.61 from 1.57
• Nifty Bank PCR at 1.30 from 1.20

Brokerage Radar

On Thermax

Macquarie

• Maintain Underperform; cut price target to Rs 846 from Rs 866.
• Margins continue to elude leading to disappointment in earnings.
• Thermax lacks pricing power as it is not the market leader.
• switch to Cummins India which is trading at discount.

Jefferies

• Maintain Underperform; cut price target to Rs 875 from Rs 950.
• Revenue growth comes at the cost of margins.
• Concerned on capital allocation and potential margin downside.
• Believe subdued RoEs during FY18-21 will continue to be an overhang.

More Calls

HSBC on Zee Entertainment

• Upgraded to ‘Hold’ from ‘Reduce’; maintained price target at Rs 460
• Announcement reflects the acceptance of changing industry dynamics
• Move removes our concerns over Zee’s tech capabilities
• Upgrade due to recent stock correction.

Jefferies on GAIL

• Maintained ‘Buy’ with a price target of Rs 450.
• Near term business conditions have turned unfavourable.
• Trading margins may sharply from the September quarter highs.
• This may all reverse with OPEC cut, rise in petchem and transmission margins.