All You Need To Know Going Into Trade On July 17

Caution returned to Asian equities Wednesday after losses seen in the U.S. session in the wake of President Donald Trump threatening China with more tariffs.

Shares in South Korea bore the brunt of losses, with shares modestly lower in Japan, Hong Kong and China. Australian shares eked out gains. Futures on the S&P 500 Index were steady. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.2 percent to 11,623.50 as of 7:10 a.m.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.

BQ Live

Here's a quick look at all that could influence equities today!

U.S. Market Update

U.S. stocks fell from a record high as President Donald Trump said he could impose more tariffs on China, reminding investors that the trade spat remains unresolved.

The yield on 10-year Treasuries gained one basis point to 2.11 percent.

#BQMarketWrap | U.S. stocks drop on President Trump's trade remarks; bonds fall.

Read: https://t.co/kNTShzOfpQ pic.twitter.com/TCbPQWV1pt

Asian Cues

• Japan's Topix index dropped 0.3 percent.
• Futures on the S&P 500 were flat.
• South Korea's Kospi index slid 0.6 percent.
• Australia's S&P/ASX 200 Index dropped 0.1 percent.

Commodity Cues

• Brent crude halted a two-day fall, traded 0.39 percent higher at $64.60 a barrel.
• West Texas Intermediate steadied at $57.61 a barrel.
• Gold slid 0.1 percent to $1,404.96 an ounce.

London Metal Exchange

• Copper ended higher for the second consecutive trading session, closed 0.48 percent higher.
• Lead ended higher for the sixth consecutive trading session, ended 0.2 percent higher.
• Aluminium ended higher for the second day, up 0.43 percent.
• Nickel ended higher for the fifth consecutive trading session, closed 2.96 percent higher.
• Tin halted a two-day fall, ended 0.56 percent higher.
• Zinc ended higher for the fifth consecutive trading session.

Indian ADRs

Stocks To Watch

• U.S. Food and Drug Administration inspectors said they found what appeared to be records awaiting shredding at Strides Pharma Science Ltd.'s manufacturing facility in Puducherry. (read the full report here)
• Suzlon Energy defaulted on the payment of bonds worth $172 million which was due on July 16.
• Bharat Heavy Electricals received a notice of termination from NMDC for the construction of raw material handling system at NMDC's steel plant in Chhattisgarh. Company has proposed to take up the afore mentioned matter through redressal mechanism available for dispute resolution between state run companies.
• IL&FS Engineering & Construction: BSR & Associates resigned as the joint statutory auditor of the company on July 14. Audit firm stated that non-payment of audit fees and non-receipt of certain pending information and responses to audit matters led to the resignation.
• Cox & Kings defaulted in payment of interest of Rs 41 lakh on NCDs due on July 15 and defaulted in payment of commercial papers worth Rs 45 crore due on July 16.
• KNR Constructions received work order for Rs 847.34 crore from Navayuga Engineering for an irrigation project.
• Vedanta Cairn and Gas won 10 oil blocks in the second and third round auctions as a part of Open Acreage Licensing Policy of the government. (Press Release)
• DCB Bank made an offer to Abu Dhabi Commercial Bank to acquire business of certain customer's accounts amounting to Rs 1,155 crore of deposits and Rs 997 crores of advances.
• Astron Paper & Board Mill stated in their press release two plants in its Gujarat unit will be shut down from July 16-23 due to maintenance of boiler plant.
• Tata Power's arm sold 50 MW solar power to NTT Com-Netmagic, under the captive structure.
• KRBL: Care Ratings revised ratings from to ‘CARE A1+' (under credit watch with negative implications) from ‘CARE A1+'. The rating agency stated that this revision is due to provisional attachment of properties by the Directorate of Enforcement of Punjab, valuing about Rs 15 crores, on July 4, in connection with the Embraer deal case.
• Vodafone Idea: Brickwork Ratings revised rating of NCDs to ‘BWR A+' from ‘BWR AA-', with outlook remaining negative.
• Jay Bharat Maruti: Board proposed issuing securities up to Rs 150 crore.
• Sadhav Infra Projects Q1 toll revenue up 2.3 percent to Rs 281.3 crore versus Rs 275 crore from its 10 operational SPVs.
• 5Paisa Capital: Board approved rights issue at 1:1 for Rs 80 per share aggregating to Rs 101.9 crore. Record date set at May 29.
• Punjab & Sind Bank revised MCLR across various tenors with effect from July 16. One Month MCLR at 8.45 percent and one-year MCLR at 8.7 percent, while the base rate has remained unchanged at 9.7 percent.
• Religare Enterprises RBI denied approval company's request to appoints Ashok Mehta and Ashwani Mehta as non-executive non-independent directors.

Nifty Earnings To Watch

• Wipro
• Yes Bank

Other Earnings To Watch

• Mindtree
• Tata Elxsi
• Aditya Birla Money
• DFM Foods
• Dhanlaxmi Bank
• Menon Bearings

Earnings Reactions To Watch

DCB Bank (Q1, YoY)

• Net interest income rises 11.7 percent to Rs 304.7 crore.
• Net profit rises 16.7 percent to Rs 81.1 crore.
• Provisions up 22 percent at Rs 40.6 crore.
• GNPA at 1.96 percent versus 1.84 percent.
• NNPA at 0.81 percent versus 0.65 percent.

MCX (Q1, YoY)

• Revenue up 9.1 percent to Rs 79.5 crore.
• Net profit up six times to Rs 43.7 crore.
• Ebitda up 10.8 percent at Rs 27.7 crore.
• Margin expands to 34.8 percent.
• Other income up 2.5 times to Rs 31.4 crore.
• Exceptional loss of Rs 23.8 crore in base quarter.
• Tax as percentage PBT at 20.7 percentage.

Jay Bharat Maruti (Q1, YoY)

• Revenue down 12.5 percent to Rs 442.9 crore.
• Net profit down 41.8 percent to Rs 7.8 crore.
• Ebitda down 8 percent to Rs 39 crore.
• Margin widens to 8.8 percent.
• Other expenses down 16 percent to Rs 29.1 crore.

Agro Tech Foods (Q1, YoY)

• Revenue flat at Rs 197.7 crore
• Net profit up 6.1 percent at Rs 7 crore.

5Paisa Capital (Q1, YoY)

• Revenue up 2.5 times to Rs 22.9 crore.
• Net loss at Rs 0.5 crore versus net loss at Rs 6 crore.

Bulk Deals

• Bliss GVS Pharma: Anirudh Damani sold 5.25 lakh shares (0.51 percent) at Rs 158.25 each.

Pledge Share Details

• Nocil promoter Sushipada Investments created pledge 2.45 lakh shares on July 16.
• Indo Rama Synthetics promoter Urmila Lohia released pledge of 1.24 crore shares on July 9.
• Hotel Leelaventure promoter group Leela Fashions revoked pledge of 7 lakh shares on July 11.
• Eveready Industries promoter Williamson Magor invoked pledge of 13 lakh shares on July 8.

Trading Tweaks

• Bhageria Industries ex-date for bonus issue at 1:1.
• Emami Realty to move into ASM Framework.
• Mukand, Tourism Finance Corporation of India to move into short term ASM Framework.
• Aarti Industries price band revised to 20 percent.
• CG Power and Industrial Solutions, NRB Industrial Bearings price band revised to 10 percent.

Who's Meeting Whom

• IRIS Business Services to meet Maple Investment on July 17.

Money Market Update

Indian bonds may extend a rally that has pushed yields to multi-year lows as crude oil slid after U.S. President Donald Trump threatened to place new tariffs on Chinese imports.

The benchmark 10-year bonds gained for a fifth day on Tuesday with yields falling as much as 12 basis points to 6.31 percent, the lowest since December 2016—when India was reeling from the after-effects of demonetisation. Global funds have been steady buyers of Indian debt amid expectations of rate cuts and they purchased Rs 750 crore of government bonds on Tuesday.

In the currency market, the rupee is seen opening at 68.67 per dollar with the drop in oil prices underpinning sentiment. The local currency had ended 0.2 percent weaker on Tuesday at 68.71 after trade data showed exports slid nearly 10 percent in June.

F&O Cues

Futures

• Nifty futures closed at 11,657.8, discount of 4.7 points versus 8.8 points
• Nifty futures open interest down 1 percent, sheds 2.2 lakh shares in open interest
• Bank Nifty futures closed at 30,590.6, premium of 20 points versus 10.6 points
• Bank Nifty futures open interest down 3 percent, sheds 53,700 shares in open interest

Options

• Nifty PCR at 1.34 versus 1.19(across all series)

Nifty Weekly Expiry 18-July

• Max open interest on call side at 11,700 (15.9 lakh shares)
• Max open interest on put side at 11,600 (25.4 lakh shares)
• Open interest addition seen in 11,600P (+15.9 lakh shares), 11,650P (+7.5 lakh shares)
• Open interest shedding seen in 11,600C (-8.2 lakh shares)

Nifty Monthly Expiry July 25

• Max open interest on call side at 12,000 (32.2 lakh shares)
• Max open interest on put side at 11,300 (23.5 lakh shares)

Stocks In F&O Ban

• IDBI Bank
• Reliance Capital
• Reliance Infrastructure

Out Of Ban:

• DHFL

Brokerage Radar

On Federal Bank

UBS

• Maintained ‘Buy' with a price target of Rs 125.
• Core pre-provisioning operating profit strong while loan growth slowed.
• Management expects credit growth of 18-20 percent, NIM to expand to 3.2 percent and credit cost of 60 bps for the current financial year.
• Expect earnings CAGR of 33 percent over FY19-21 and RoE to improve to 12.2 percent and 14.6 percent respectively in the next two financial years.

Edelweiss

• Maintained ‘Buy'; hiked price target to Rs 134 from Rs 128
• Steady growth in core operating performance in June quarter.
• Core profitability on track and getting more predictable.
• Volatility in asset quality remains a key concern.

Citi

• Maintained ‘Neutral'; hiked price target to Rs 120 from Rs 110.
• Q1FY20 – Soft CASA and loan growth.
• RoA was steady at 1 percent with stable margin and healthy fee.
• Slippages increased due to residual impact of Kerala floods.

On HDFC AMC

BofA Securities

• Maintained ‘Buy'; hiked price target to Rs 2,200 from Rs 1,850.
• Strong June quarter results on margin improvement.
• Equity flows appears to be improving.
• Management confident of sustaining margin improvement.

Morgan Stanley

• Maintained ‘Overweight'; hiked price target to Rs 2,300 from Rs 2,000.
• Reported June quarter's net profit ahead of estimates.
• Operating profit margin expansion in recent quarters has surprised.
• Expect margin benefit of shift to full trail commission model will take longer to unwind.

More Calls

CLSA on India Power

• NTPC: Maintained ‘Buy'; hiked price target to Rs 170 from Rs 157.
• Power Grid: Maintained ‘Buy'; hiked price target to Rs 230 from Rs 217.
• Multiple factors lay foundation for the next bull market for power stocks.
• June quarter will be turnaround quarter.

UBS on Quess Corp

• Maintained ‘Buy' with a price target of Rs 865.
• Amazon's investment in Quess shows merits of latter's acquisition strategy.
• Issue of loans and advances given to subsidiaries/associates appears overdone.
• Multiple factors to aid Quess' return ratios which is currently been ignored by market.

Edelweiss on DCB Bank

• Maintained ‘Hold' with a price target of Rs 219.
• June quarter weaker than expected due to softer revenue trends.
• Lower loan growth with pressure on NIM kept NII growth below average.
• Only positive was lower opex growth which indicates operating leverage benefits.

PhillipCapital on Titan

• Downgraded to ‘Neutral' from ‘Buy'; cut price target to Rs 1,165 from Rs 1,200.
• Expect near-term jewellery demand to remain weak due to spike in gold prices, poor macroeconomic environment and hike in custom duty.
• September quarter will be the worst quarter for the entire jewellery industry.
• Cut our FY20-21 EPS estimates by 13-16 percent to account for subdued demand.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.