All You Need To Know Going Into Trade On June 13

Asian stocks declined as investors assessed ongoing trade tensions alongside data that played into the hands of those gunning for looser U.S. monetary policy.

After a seven-day rally, global equities are showing signs of fatigue, with shares in Tokyo and Seoul opening lower Thursday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.06 percent to 11,918.50 as of 7:25 a.m.

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BQ Live

U.S. Market Check

• U.S. tech shares slumped as concern about trade tensions blunted optimism that slower-than forecast inflation would allow the Federal Reserve to cut rates.
• The yield on 10-year Treasuries decreased two basis points to 2.12 percent.

#BQMarketWrap | Tech leads U.S. stock slump; oil falls to 4-month low.

Read: https://t.co/wiQHouHh71 pic.twitter.com/NMFdGPh2nh

Asian Cues

• Japan's Topix index dipped 0.5 percent.
• South Korea's Kospi index slid 0.2 percent.
• Australia's S&P/ASX 200 Index rose 0.2 percent.
• Futures on the S&P 500 Index rose 0.2 percent.

Commodity Cues

• Brent crude traded 0.32 percent higher at $60.16 per barrel. It fell 3.7 percent yesterday.
• West Texas Intermediate crude added 0.3% to $51.28 a barrel.
• Gold held at $1,333.58 an ounce.

London Metal Exchange

• Copper halted a two-day gains, closed 0.4 percent lower.
• Zinc ended higher for the second day, up 0.1 percent.
• Nickel halted a two-day rally, closed 0.37 percent lower.
• Aluminium ended higher for the third day, down 0.67 percent.
• Lead halted a two-day gains, closed 0.78 percent lower.
• Tin ended 0.73 percent higher.

Indian ADRs

Stocks To Watch

• Tata Motors: May total wholesales down 23 percent on a yearly basis to 82,374 units. Jaguar Land Rover May total wholesales down 18 percent year-on-year to 39,895 units.
• Indiabulls Housing Finance moved the Supreme Court seeking urgent listing of a plea filed against it in which it has been alleged that the company misappropriated Rs 98,000 crore of public money. (Read more here)
• Reliance Nippon Life Asset Management: Promoter Reliance Capital plans to sell 2.86 percent stake in the company. The promoter will sell up to 1.75 crore shares at a floor price of Rs 212 apiece—a discount of about 3 percent to current market price—through an offer-for-sale. This move will help to speed up the sale process as Reliance Capital intends to sell its entire stake to Nippon Life, which already holds 42.88 percent stake in the company and at maximum can hold 75 percent stake as promoter as per SEBI Norms.
• Jet Airways: BSE Ltd. and National Stock Exchange will impose trading restrictions on carrier's shares from June 28, as part of preventive surveillance measures to curb excessive volatility. (Read more here)
• Adani Ports and SEZ: Company has suspended its vessel operation at Tuna and Mundra port from June 12-13. Company stated in the press release that it will continue to monitor development at Dahej and Hazira Port. Suspension of vessel operations is being done in view of an advisory issued by of India Metrological Department that the cyclone can knock Gujarat with the speed of 110-120 kmph on the morning of June 13.
• Kotak Mahindra Bank: Interest rate on savings balance up to Rs 1 lakh stands reduced by 50 basis points to 4 percent. Interest rate on savings balance over 1 lakh, up to 1 crore remains at 6 percent on daily balances above 1 crore remains at 5.5 percent.
• DHFL paid Rs 5.88 crore in dues on NCDs which fell due on June 6.
• Mangalore Chemicals & Fertilizers has restarted ammonia, urea and ABC production with effect from June 12 in view of onset of monsoon and normalization of water supply. Production had stopped on May 14.
• Allahabad Bank has decreased MCLR across various tenors by 5 basis points with effect from June 14. One-month MCLR at 8.15 percent and one-year MCLR at 8.55 percent.
• Edelweiss Financial Services arms signed agreement Bank of Baroda to co-lend SMEs.
• NTPC signed joint venture deal with East Delhi Municipal Corporation to develop waste management and energy generation facility. Company will hold 74 percent stake in the JV, while the remaining stake to be held by the Municipality.
• Music Broadcast entered into a definitive agreement for acquisition of Reliance Broadcast Network. Board had earlier approved this deal on May 27, where the company will acquire 24 percent stake before July 31 for Rs 202 crore and for the remaining stake purchase will happen after March 2020 for a consideration which will be derived from enterprise value of Rs 1,050 crore.
• Norwegian Government in its parliamentary meeting decides to sell shares in all global energy stocks. Norway's Government Pension Fund Global will be selling stake in Indian Oil Corporation Ltd., ONGC Ltd., Oil India Ltd. and Reliance Industries Ltd. The fund owns less than 1 percent stake in each of the four companies

Bulk Deals

• Hinduja Global Solutions: Fidelity Funds acquired 2.69 lakh shares (1.29 percent) at Rs 635 each.
• KPIT Technologies: Vanguard Funds sold 48.6 lakh shares at Rs 98 each (Shareholding Pattern not given)

Hindustan Foods

• West Bridge AIF acquired 4.09 lakh shares or 3 percent equity at Rs 425 each
• Sixth Sense India Opportunities sold 4.09 lakh shares or 3 percent equity at Rs 425 each.

Pledge Share Details

• Hubtown promoters created pledge of 17.5 lakh shares in June 11
• JSW Energy promoter Indusglobe Multiventures created pledge of 41.3 lakh shares from June 7-10
• Sintex Industries promoter BVM Finance revoked and created pledge of 2cr shares, each from June 10-11
• India Cements promoter group Anna Investments revoked pledge of 52 lakh shares on June 10

Trading Tweaks

• Biocon record date for bonus at 1:1
• Symphony to move out of short term ASM Framework
• Mcleod Russel, Eros International Media , Indiabulls Integrated Services price band revised to 5 percent

Who's Meeting Whom

• Allcargo Logistics to meet Maybank Kimeng on June 14
• NOCIL to meet IIFL Securities on June 13
• Polycab to meet Citi Group Global Market on June 13
• IIFL Finance to meet Acacia Partners and DSP Investment Managers on June 13

Insider Trading

• Aarti Industries promoter Nikhil Holdings sold 38,000 shares from June 7-11
• Trident promoter Madhuraj Foundation acquired 4 lakh shares on June 11

(As reported on June 12)

Money Market Update

• Rupee ends at 69.35/$ on Wednesday from 69.45/$ on Tuesday

Futures And Options

June Futures

• Nifty futures closed at 11,916.7, premium of 10.5 points versus 11pts
• Nifty futures OI down 3.5 percent, sheds 6.6 lakh shares in OI
• Bank Nifty futures closed at 31,005, premium of 40 points versus discount of 18.5pts
• Bank Nifty futures OI down 2 percent, sheds 37,000 shares in OI

Options

• Nifty PCR at 1.32 versus 1.49 (across all series)

Nifty Weekly Expiry June 13

• Max OI on call side at 12,000 (29.6 lakh shares)
• Max OI on put side at 11,800 (18.2 lakh shares)
• OI addition seen at 12,000C (+10 lakh shares), 11,900C (+9 lakh shares)
• OI shedding seen at 11,900P (-5.8 lakh shares), 11,950P (-4.8 lakh shares)

Nifty Monthly Expiry June 27

• Max OI on call side at 12,500 (22.3 lakh shares)
• Max OI on put side at 11,500 (27 lakh shares)
• Max OI addition seen at 12,000C (+2.8 lakh shares), 11,900C (+1.5 lakh shares)

Stocks In F&O Ban

• In ban: IDBI, PC Jeweller, Reliance Capital, Reliance Infra
• Out of ban: Dewan Housing

Brokerage Radar

UBS on Yes Bank

• Maintained ‘Sell'; cut price target to Rs 90 from Rs 170.
• Expectation of sharp turnaround less likely to fructify.
• NPL risks seem higher than current expectations.
• Metrics to deteriorate significantly in 2019-20.

UBS on IndusInd Bank

• Downgraded to ‘Sell' from ‘Neutral'; cut price target to Rs 1,400 from Rs 1,700.
• Credit costs likely to exceed current expectations.
• Lending to non-investment grade companies is higher than expectations.
• Proposed Bharat Financial merger to support near-term earnings.
• Downgrade to sell on unfavourable risk-reward.

Edelweiss on Avenue Supermarts

• Maintained ‘Reduce' with a price target of Rs 1,280.
• Everyday Low Pricing strategy to remain bedrock of the business model.
• Though competition has intensified, mgmt. confident that industry pie is large enough.
• Store expansion pace to gather momentum; mgmt. satisfied with current gross and Ebitda margins.

Motilal Oswal on Avenue Supermarts

• Maintained ‘Sell' with a price target of Rs 1,115.
• Growth prospects strong, but margin headwinds blowing fiercely.
• SSSG expectations modest; pricing pressure persists.
• Margin headwinds still blowing; D-Mart Ready may pose a risk of increasing cost.

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