All You Need To Know Going Into Trade On June 12

Asian stocks opened mixed Wednesday after U.S. equities halted a five-day winning streak and Treasuries steadied amid signs of fatigue from the recent global revival in risk appetite.

Japanese shares edged lower, while they nudged up in Australia and Korea. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.1 percent to 11,970.50 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 ended their longest winning streak in two months as investors weighed the outlook for trade talks and interest rate policy.
• The yield on 10-year Treasuries held at 2.14 percent.

#BQMarketWrap | U.S. stocks end winning streak with trade in focus.

Read: https://t.co/bUPGkhN9A6 pic.twitter.com/JGT3ijRRQ4

Asian Cues

• Japan's Topix index slid 0.3 percent.
• South Korea's Kospi index rose 0.2 percent.
• Hang Seng Index futures earlier dropped 0.3 percent.
• Australia's S&P/ASX 200 Index rose 0.3 percent.
• Futures on the S&P 500 Index were flat.

Commodity Cues

• Brent crude ended lower for the third consecutive trading session, closed 1.3 percent lower at $61.50 per barrel.
• West Texas Intermediate crude dipped 1.1 percent to $52.68 a barrel.
• Gold held at $1,327.69 an ounce.

London Metal Exchange

• Copper ended higher for the second consecutive trading session, up 0.03 percent.
• Zinc halted a two-day fall, closed 1.23 percent higher.
• Aluminium ended higher for the second day, up 0.17 percent.
• Nickel ended higher for the second day, up 2.05 percent.
• Lead ended higher for the second consecutive trading session, up 1.3 percent.
• Tin closed 0.42 percent lower.

Data Watch

• India to report CPI Inflation data for May
• India to report Industrial production data for April

Indian ADRs

Stocks To Watch

• Price Waterhouse & Co resigned as the statutory auditor Reliance Capital and Reliance Home Finance. PwC noted certain observations/transactions in its assessment which if not resolved satisfactorily might be significant or material to the financial statements. PwC further stated that the company did not convene an audit committee meeting within the expected time. The company does not agree with the reasons given by PwC for the resignation.
• Reliance Industries and BP sanctioned third phase of integrated KG-D6 development. Approved development of MJ deep-water gas field in India. Three KG-D6 projects under development expected produce 1 billion cubic feet a day of new domestic gas onstream, phased over 2020-2022. Total Investment of for three projects pegged at Rs 35,000 crore.
• Dewan Housing Finance said that it has cleared all its overdue payments on NCDs at Rs 961.9 crore due on June 6. The company said in a media statement that it confirms full payment and will seek rating upgrades from agencies, coupled with more asset monetisation by on boarding a strategic partner. Aadhar Housing said Blackstone has acquired a 97.7 percent stake in company for including the entire stake held by the existing controlling shareholders, Wadhawan Global Capital Ltd. and DHFL. As part of the transaction, Blackstone has also infused Rs 800 crore in primary equity capital into Aadhar to fund the company for future growth.
• Tata Steel: Thyssenkrupp AG and Tata Steel's collapsed joint venture was formally blocked by the European Union, the sixth deal vetoed by antitrust chief Margrethe Vestager. Allowing the deal to proceed would have reduced the number of suppliers and increased prices for steel used in packaging and in the car industry, the EU said in an emailed statement to Bloomberg.
• Gujarat Pipavav Ports to suspend operations from midnight of June 11 till June 13, for a period of 48 hours based on directions by the state's port regulatory authority, due to a cyclonic storm which will be crossing the coast of Gujarat.
• Adani Green Energy: Promoter group under name of Gautam S Adani plans to sell cumulatively 5.98 percent stake in the company at a floor price of Rs 43 per share. This is the second share offering to public in three weeks. The overall stake of promoters will fall from 86.5 percent to 74.93 percent, to comply with SEBI norms on minimum shareholding.
• Religare Enterprises: Milind Narendra Patel resigned from post of Group CEO with effect from June 10.
• Abbott said it has launched sensor enabled HD grid mapping catheter, a device that can be inserted in the body to treat diseases or perform surgical procedures, in India. The company has launched the product after receiving clearance from U.S. FDA last year.
• BHEL, Tata Power, Gujarat Borosil: India proposed up to 30 percent capital subsidy for solar module units, planning a capital subsidy program for solar cells and module manufacturers, a government official according to Bloomberg.
• Eros International Media: Moody's Investors Service downgraded corporate family rating for Eros International Plc to B2 from B1, outlook changes to negative from stable. “The rating downgrade reflects Eros Plc's strained liquidity profile, which led to delays in servicing the bank loans of its Indian subsidiary, Eros International Media India Limited,” Nidhi Dhruv, a Moody's Vice President and Senior Analyst, said according to Bloomberg.
• Vedanta: Smelter near northern town of Chingola has been idle pending availability of concentrate stocks and Konkola had planned to start up smelter on June 22, company said in emailed statement to Bloomberg.
• Yes Bank: Mukesh Sabharwal resigned from post of non-executive director with effect from June 10, citing pursuits in academia.
• Larsen & Toubro: LIC reduced stake by 2.83 crore shares (2 percent) from 18.3 percent to 16.3 percent, from July 2017 till June 2019.
• ITC to invest Rs 20,000 crore in India, FMCG, Paper and Backend Operations. New FMCG factory to be set up in West Bengal, Sanjiv Puri said according to Bloomberg.

Bulk Deals

• Repro India: Washington University sold 72,000 shares (0.63 percent) at Rs 504.28 each

Pledge Share Details

• Eros International Media Promoter Eros Worldwide created pledge of 65.25 lakh shares from June 6-11
• India Cements promoter group EWS Finance and Investments revoked pledge of 85 lakh shares on June 7
• Hubtown promoter group Vyomesh Shah HUF revoked pledge of 1 lakh shares on June 10

Trading Tweaks

• Savita Oil Technologies record date for share buyback
• Syngene International record date for bonus issue 1:1
• Manpasand Beverages, Kridhan Infra to move into ASM Framework
• Pricol, Tata Teleservices (Maharashtra) to move out of short term ASM Framework

Who's Meeting Whom

• Tata Steel to meet JP Morgan on June 13
• Adani Power to meet Abu Dhabi Investment Authority on June 12
• Crisil to meet Jeetay Investments on June 13
• PI Industries to meet ICICI Pru MF, Dolat Capital and Old Bridge Capital Management from June 13-18
• Sundaram Fasteners to meet Ambit Capital on June 12
• AIA Engineering to meet DSP MF, Reliance MF and other investors on June 14
• Polycab to meet N2Capital, Reliance Securities on June 12
• Allcargo Logistics to meet SBI MF on June 12
• Cholamandalam Investment & Finance to meet Ambit Capital, Axis Capital and other investors from June 12-28

Insider Trading

• NCL Industries promoter group NCL Holdings sold 92,000 shares and K Anuradha acquired 19,300 shares from June 7-11
• JSW Steel promoter group Beaufield Holdings sold 9.8 lakh shares on June 4
• Mukand promoter group acquired 50,000 shares from June 7-10
• Trident promoter group Madhuraj Foundation acquired 4 lakh on June 10
• Jindal Stainless promoter Abhuday Jindal acquired 1.03 lakh shares from June 6-7

(As reported on June 11)

Money Market Update

The home currency appreciated 0.29 percent yesterday to close at 69.45 against the greenback.

The implied opening from forwards suggests spot will start trading at 69.39. Lower oil prices and steady inflows into Indian markets are likely to underpin the rupee, traders said.

In the bond market, the yield on the 10-year benchmark may open higher on lower oil prices and taking cue from U.S. Treasury yields which fell on Tuesday. Traders are awaiting May inflation data to gauge the possibility of further interest-rate cuts. Consumer prices probably rose 3.05 percent last month, versus 2.92 percent in April, according to a Bloomberg survey.

While headline inflation inched up due to an increase in food prices, it's still set to mark a 10th straight month below the 4 percent medium term target set by the RBI. Yield on the benchmark 2029 bonds fell 4 basis point on Tuesday to 7.04 percent after rising 10 basis points on Monday.

Futures And Options

June Futures

• Nifty futures closed at 11,976.9, premium of 11 points
• Nifty futures OI up 3.6 percent, adds 6.6 lakh shares in OI
• Bank Nifty futures closed at 31,246.9, discount of 18.5 points versus premium of 10.7 points
• Bank Nifty futures OI down 1 percent, sheds 23,000 shares in OI

Options

• Nifty PCR at 1.49 versus 1.36 (across all series)

Nifty Weekly Expiry 13 June

• Max OI on call side at 12,000 (19.5 lakh shares)
• Max OI on put side at 11,900 (20.7 lakh shares)
• OI addition seen at 11,900P (+7 lakh shares), 11,950P (+5.2 lakh shares)
• OI shedding seen at 11,900C (-5.6 lakh shares), 12,000C (-2.5 lakh shares)

Nifty Monthly Expiry 27 June

• Max OI on call side at 12,500 (25.3 lakh shares)
• Max OI on put side at 11,500 (28.2 lakh shares)
• Max OI addition seen at 11,700P (+3 lakh shares), 11,900P (+2.9 lakh shares)

Stocks In F&O Ban

• In Ban: DHFL, IDBI, PC Jeweller, Reliance Capital, Reliance Infra
• New In Ban: Reliance Infra

Brokerage Radar

UBS on Tech Mahindra

• Maintained ‘Neutral' with a price target of Rs 830
• Meaningful revenue acceleration unlikely in 2019-20
• Attrition, supply tightness are key challenges to sustaining margin in 2019-20
• Risk-reward looks balanced post recent share price correction

Citi on SRF

• Maintained ‘Buy' with a price target of Rs 3,370.
• Specialty chemical business remains on track to grow 40-50 percent in 2019-20.
• Flurochemicals business guided to grow 20-25 percent in 2019-20.

Morgan Stanley on Shriram Transport Finance

• Maintained ‘Overweight' with a price target of Rs 1350
• Mgmt. expects H1FY20 to see muted growth and expects FY20 growth of 14-16%
• Could be some further margin compression of 10-20 bp in the near term
• Mgmt. was confident on asset quality as vehicle utilisation levels are good

Edelweiss on AU Small Finance

• Initiated ‘Buy' with a price target of Rs 880
• Lucrative 30 percent-plus asset CAGR still remains plausible for an extended period
• Relatively low execution risk, uncharacteristic at such pace, is the icing on the cake
• Operating and financial leverage will continue to play through

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