Traders monitor financial data as company stock listing information is displayed on boards beyond inside Frankfurt Stock Exchange in Frankfurt, Germany (Photographer: Jasper Juinen/Bloomberg)

All You Need To Know Going Into Trade On Nov. 20 

Stocks in Asia declined as trading got underway Tuesday after weakness in some of the biggest technology companies sent U.S. stocks tumbling, adding to pessimism about escalating trade tensions.

Equities fell in Japan, Australia and South Korea, while futures tipped a weaker open in Hong Kong. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.5 percent to 10,731 as of 6:50 a.m.

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U.S. Market Check

  • Weakness in some of the biggest technology companies sent U.S. stocks tumbling as pessimism about escalating trade tensions between the U.S. and China added to concerns about potential new regulations coming for the industry.
  • The yield on 10-year Treasuries held at 3.06 percent.

Also read: Here's What Wall Street Hopes Will Stem the Sell-Off in Equities

Europe Market Check

  • European shares reversed earlier gains as a tech slump in the U.S. spread to the region.
All You Need To Know Going Into Trade On Nov. 20 

Also read: May's Northern Irish Ally Fires Warning Shot Over Brexit Deal

Asian Cues

  • Japan’s Topix Index fell 0.8 percent.
  • Australia’s S&P/ASX 200 Index dropped 0.7 percent.
  • South Korea’s Kospi Index lost 1 percent.
  • Hong Kong’s Hang Seng Index futures declined 1.2 percent.
  • S&P 500 futures fell 0.2 percent.

Also read: Cryptocurrencies Plummet, With Bitcoin Breaking Below $5,000

Commodity Cues

  • West Texas Intermediate crude climbed 0.2 percent to $57.32 a barrel.
  • Brent crude rose for the fourth day, and is set for its longest winning streak in over a month.
  • Gold was little changed at $1,223.60.

Also read: Oil Gains Ground as Capacity Warnings Counter Russia Questions

Indian ADRs

All You Need To Know Going Into Trade On Nov. 20 

Stocks To Watch

  • NMDC clarified that Donimalai mine’s lease had already been extended by the Karnataka state government for a period of 20 years with effect from Nov. 4. The company stated that they had made the representation to the state Chief Minister on legal and other issues and the meeting ended on a positive note. As per the information received by the company, the Karnataka Cabinet had not taken any decision to cancel the lease. Pending the decision by the Karnataka government, production has been suspended temporarily.
  • Oil India board approved raising foreign currency debt securities worth Rs 4,000 crore. Board also approved buyback of 4.45 percent of total paid-up share capital, at Rs 215 per share aggregating to Rs 1,086 crore. Record date is set for Dec. 03.
  • PSP Projects bagged new institutional and industrial projects worth Rs 372.47 crore. The total work orders received till date for this financial year on a standalone basis stood at Rs 804.62 crore.
  • Kridhan Infra’s Singapore arm won a construction order worth Rs 195 crore for link sewers from Singapore’s Public Utilities Board.
  • SRF pegged the cost of the damage to its technical textiles unit in Tamil Nadu, affected by Cyclone Gaja, at Rs 28 crore. The company said damage was covered by adequate insurance.
  • Usha Martin clarified that it was not aware of the news that former Chairman Basant-Prashant Jhawar may sell majority stake as part of the company’s deal with Tata Steel.
  • HEG board said it considering a share buyback on Nov. 26.
  • South Indian Bank revised its MCLR across various tenors with effect from Nov. 20. Overnight MCLR has been set at 8.55 percent and one-year MCLR at 9.45 percent.
  • Jet Airways plans to deploy planes on more profitable and productive routes. The aviation company is in active talks with investors to secure financing. (Bloomberg News)
  • Yes Bank’s independent (non-executive) director Rentala Chandrashekhar resigned from the bank’s board with immediate effect, citing personal reasons.

Earnings To Watch

  • Religare Enterprises

Media Reports

  • After initial zeal, Tatas now go slow on deal to buy Jet Airways (Times of India).

Bulk Deals

  • Talwalkars Better Value Fitness: Birla MF sold 3.9 lakh shares or 1.26 percent equity at Rs 45.22 each.

Who’s Meeting Whom

  • Inox Leisure to meet Morgan Stanley, ICICI Prudential MF and other investors from Nov. 20-22.
  • Tamil Nadu Newsprint and Papers to meet Panah Fund, Tattva Capital and other investors from Nov. 20-23.
  • Pfizer to meet Pari Washington Company Advisors on Nov. 20.
  • Future Supply Chain Solutions to meet Kotak MF, HDFC MF and other investors on Nov. 20.
  • Shriram City Union Finance to meet Dolat Capital and E&R Advisors from Nov. 20-22.

Insider Trades

  • Setco Automotive promoter and director Udit Seth sold 23,000 shares on Nov. 15.
  • Nitin Spinners promoter Ratan Lal Nolkha acquired 4.04 lakh shares from Oct. 4 to Nov. 16.
  • EROS International Media promoter Eros Worldwide acquired 25,000 shares on Nov. 19.

Trading Tweaks

  • Adani Gas price band revised to 20 percent.
  • Uttam Sugar Mills, Adani Transmission, Orient Press price band revised to 5 percent.

Money Market Update

  • Rupee on Monday rose for the fifth straight day and closed at a nine-week high of 71.62/$. On Friday, it closed at 71.93/$.

F&O Cues

  • Nifty November futures closed trading at 10,775, a premium of 13 points.
  • Nifty November open interest up 2.2 percent; Nifty Bank November open interest up 2 percent.
  • Max open interest for November series at 11,000 strike value call option, (open interest at 34 lakh shares)
  • Max open interest for November series at 10,000 strike value put option (open interest at 47 lakh shares)

Stocks In F&O Ban

  • Stock in ban: Adani Power, Adani Enterprises, Jet Airways, PC Jeweller
  • New in Ban: Jet Airways, PC Jeweller

Put-Call Ratio

  • Nifty PCR at 1.73 from 1.64.
  • Nifty Bank PCR at 1.33 from 1.26.
All You Need To Know Going Into Trade On Nov. 20 

Brokerage Radar

UBS On UltraTech

  • Upgraded to ‘Buy’ from ‘Neutral’, raised price target to Rs 4,700 from Rs 4,550, implying a potential upside of 16.6 percent from Monday’s closing price.
  • Upgrade due to strong earnings growth and favourable valuations.
  • Improving product mix to partially offset cost pressures and sustain margins.
  • Continues to gain market share via a combination of organic and inorganic expansion.

Macquarie On Petronet LNG

  • Initiated ‘Outperform’ with a price target of Rs 270, implying a potential upside of 25.1 percent from Monday’s closing price.
  • Expect Petronet to generate around $5 billion cumulative free cash flow by March 2025.
  • Expect net cash position to balloon to 60 percent of current market capitalisation by March 2025.
  • Valuations attractive versus Asia-Pacific peers.

Credit Suisse On Colgate

  • Maintained ‘Outperform’ with a price target of Rs 1,375, implying a potential upside of 19.5 percent from the last regular trade.
  • Started turning the corner after three years of market share loss, poor volume growth.
  • Colgate's ‘Naturals’ offerings are now starting to gain traction.
  • Pick up in Colgate's premium portfolio is key for long-term growth.
  • Valuations and earnings expectations make risk reward favourable.

Goldman Sachs on GAIL

  • Upgraded to ‘Buy’ from ‘Neutral’, raised price target to Rs 490 from Rs 260, implying a potential upside of 46.4 percent.
  • Expect GAIL to have the highest earnings growth amid the gas coverage universe.
  • Pricing in core transmission business valuations at 4.5 times 2019E EV/Ebitda.
  • GAIL will benefit the most from over $40 billion investment by multiple players.
  • Domestic production, LNG capacity and consuming infrastructure, are synchronising.

HSBC on Bajaj Finance

  • Initiated ‘Buy’, with a price target of Rs 3,000, implying a potential upside of 27.1 percent from the last regular trade.
  • Riding high on data analytics to create a differentiated business model.
  • Robust growth and best-in-class return ratios look sustainable.
  • Expect compounded annual growth rate of 37 percent in net profit and average 23 percent ROE in FY18-21.
  • Premium valuations likely sustainable for one of the most profitable BFSI franchises.