All You Need To Know Going Into Trade On August 29

Asian stocks were off to a muted start Wednesday as investors assessed the latest developments on the Trump administration's trade policies.

Equity benchmarks climbed in Japan and drifted in Australia and South Korea, while futures showed shares in Hong Kong were poised to decline. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, traded 0.1 percent lower at 11,744 as of 7:05 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 eked out a gain to claim a fresh closing record, while Treasury yields climbed as investors assessed the latest developments from the Trump administration's trade policies.
• The yield on 10-year Treasuries held at 2.88 percent after rising three basis points.

#BQMarketWrap | U.S. stocks add to records.

Read: https://t.co/V0oppi2dkY pic.twitter.com/6MaZcSnTMV

Europe Market Check

• European stocks closed a fraction lower, hovering just below Monday's close after failing to sustain modest advances.

Asian Cues

• Japan's Topix index rose 0.4 percent.
• Australia's S&P/ASX 200 Index rose 0.1 percent.
• Futures on Hong Kong's Hang Seng Index dropped 0.2 percent.
• S&P 500 futures gained 0.1 percent.

Commodity Cues

• West Texas Intermediate crude rose 0.1 percent to $68.61 a barrel.
• Brent crude traded flat at $75.98 a barrel.
• Gold ticked higher to $1,202.08 an ounce.

Shanghai Exchange

• Steel traded lower for sixth consecutive session; down 0.2 percent.
• Aluminium traded higher; up 1.2 percent.
• Zinc traded higher for eighth consecutive session; up 0.2 percent.
• Copper traded higher; up 0.8 percent.
• Rubber traded lower for second day; down 0.2 percent.

Here are the key events to watch out for this week:

• Earnings are due from companies including Pernod Ricard and Dollar General.
• China's official factory PMI are due Friday.
• The U.S. economy probably grew in the second quarter at a slightly slower pace, economists predict ahead of Wednesday's report.
• The Bank of Korea sets policy on Friday. Weak jobs growth has cooled speculation of an interest-rate increase.

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Indian ADRs

Stocks To Watch

• LIC will meet on Sept. 04 to consider acquiring 36 percent stake in IDBI Bank. That's in addition to an approval it won to subscribe to preferential issue of IDBI Bank's shares.
• Bharti Airtel plans to roll out 9,000 new sites and 4,150 kilometres of optic fiber for financial year 2018-19 in Rajasthan. This announcement is the part of the company's network expansion plan LEAP.
• Tech Mahindra's certificate of authorisation for pre-paid card issuance gets cancelled by RBI. The cancellation of the company as Payment System Operator is on account of voluntary surrender of authorisation by the company.
• State Bank of India said that the appropriate authority has accorded approval to explore and initiate the process of divestment of its 3.9 percent stake in National Stock Exchange of India through secondary sale.
• Tata Motors to showcase five new public transport vehicles at the bus and coach exhibition, Busworld India starting from Aug. 29. Under its new turnaround strategy, the company is “aggressively” focusing on introducing new range of products with improved features and modern technological advancements said Rohit Srivastava, product line head.
• Lakshmi Vilas Bank received approval from IRDA to offer general insurance products. The bank had executed a corporate agency agreement with HDFC Ergo General Insurance Company to sell non-life insurance products under open architecture.
• Vedanta awarded 41 out if the 55 oil and gas blocks which were auctioned by the government-under Open Acreage Licensing Policy, according to notice on Directorate General of Hydrocarbons' website.

Media Reports

• Mahindra takes Fiat to court alleging breach of contract (NDTV).
• Jet Airways-Godrej land deal under IT scanner (Business Standard).
• Temasek-owned Fullerton Financial has pulled out of the acquire PNB Housing Finance (Times of India).

Who's Meeting Whom

• Kalpataru Power Transmission to meet HDFC Asset Management on Aug. 31.
• Mahindra Holidays & Resorts to meet JHP Securities on Aug. 29.
• Mahindra Logistics to meet TA Associates and Edelweiss Securities from Aug. 29-31.

Trading Tweaks

• Birla Cable Limited and JK Paper Ltd. placed under ASM framework.

Insider Trades

• Nocil promoters sold 1 lakh shares on Aug. 24.
• Deccan Gold Mines promoter sold 60,500 shares from Aug. 23-27.
• Srikalahasthi Pipes promoter acquired 10,000 shares from Aug. 23-24.
• Asian Oilfield Services promoter Ritu Garg acquired 60,000 shares from Aug. 23.

Money Market Update

• Rupee ended up 6 paise at 70.10/$, recovered from record closing low
• 10-year benchmark bond yield ended steady at 7.9 percent after rising to 7.92 percent intraday, highest level in two months.

F&O Cues

• Nifty August Futures closed trading at 11,752.4 premium of 14 points.
• Nifty September Futures closed trading at 11,789.3 premium of 50 points.
• Rollover-Nifty 37 percent , Bank Nifty 32 percent.
• Across series-Nifty open interest down 2 percent & Bank Nifty open interest unchanged.
• India VIX ended at 12.4, up 1.5 percent.
• Max open interest for August series at 11,800 Call (open interest at 26.5 lakh, open interest up 9.5 percent)
• Max open interest for August series at 11,000 Put (open interest at 38.4 lakh, open interest down 6 percent)

F&O Ban

• In ban: Dewan Housing, IDBI Bank, Jain Irrigation, Punjab National Bank.
• New In ban: Dewan Housing, IDBI Bank, Jain Irrigation, Punjab National Bank.
• Out Of Ban: Hexaware, Jet Airways.

Put Call Ratio

• Nifty PCR at 1.94 versus 1.84
• Nifty Bank PCR at 1.35 versus 1.44

Fund Flows

Brokerage Radar

CLSA on TTK Prestige

• Maintained ‘Buy'; raised price target to Rs 7,725 from Rs 7,010.
• A play on improving rural consumption and government spending.
• ‘Ujjwala' implementation to drive demand in core categories.
• Cleaning solutions and exports are potential growth drivers.

Credit Suisse on M&M

• Maintained ‘Outperform' with a price target of Rs 1,100.
• Remain constructive on both tractor and pick-up volumes for the next financial year as well.
• Near term stock performance will now depend on how its three new utility vehicle launches fare.
• Utility vehicle success key to further rerating of the stock.

HSBC on NALCO

• Initiated ‘Buy' with a target price of Rs 90.
• Higher earnings to be driven by volume growth in alumina.
• Cost reductions in aluminium production will aid earnings.
• Aluminium may see some support from a relatively tight market balance.

HSBC on Indian Hotels

• Maintained ‘Buy' with a price target of Rs 165.
• Company is focusing on capacity addition and margins expansion.
• Management constructive on the growth as demand-supply dynamics remain favourable.
• Management sees strong growth in both luxury and mid-market.

Deutsche Bank on Bharat Forge

• Maintained ‘Buy' with a price target Rs 830.
• Defence revenue opportunity begins to materialise.
• Ability to add new revenue streams to offset the cyclicality of core business.
• Earnings and cash-flow volatility has declined despite the cyclical nature over past 15 years.

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