All You Need To Know Going Into Trade On June 25

Stocks in Asia drifted Tuesday with little direction from a lacklustre U.S. session.

Shares were little changed in Japan, South Korea and Australia as traders looked to the upcoming G-20 summit this weekend. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, rose 0.13 percent to 11,733 as of 7:10 a.m.

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BQ Live

U.S. Market Check

• U.S. stocks edged away from records as investors weighed expectations for easier monetary policy against concerns about a slowing global economy.
• The yield on 10-year Treasuries held at 2.02 percent.

#BQMarketWrap | U.S. stocks fall; Treasuries rise, dollar drops.

Read: https://t.co/HRdoEWUpSS pic.twitter.com/lBKDmwtbJr

Asian Cues

• Topix Index rose 0.2 percent.
• S&P/ASX 200 fell 0.2 percent.
• Kospi Index rose 0.1 percent.
• Hang Seng futures were little changed.
• S&P 500 futures rose 0.1 percent.

Commodity Cues

• Brent crude traded little changed at $64.87 per barrel.
• West Texas Intermediate crude was little changed at $57.90 a barrel.
• Gold rose 0.4 percent to $1,425 an ounce.

London Metal Exchange

• Copper ended lower for the second day, down 0.18 percent.
• Nickel ended 0.41 percent higher.
• Zinc halted a three-day fall, closed 2.38 percent higher.
• Tin ended 0.26 percent higher.
• Aluminium ended a two-day fall, closed 1.44 percent higher.
• Lead closed 0.68 percent higher.

Indian ADRs

Stocks To Watch

• Andhra Bank: Board approved proposal to raise Rs 2,000 crore in FY20.
• Quess Corp: Approved raising of funds up to Rs 51 crore through issue of equity shares on preferential basis.
• IFCI: Board approved the sale of remaining 2.4 percent stake in NSE.
• BHEL and Axis Bank: LIC sold 2 percent stake in both the companies. The stake post sale stands at 11.701 percent in BHEL and at 10.209 percent in Axis Bank.
• TCS: Acquired 15 percent stake from Mitsubishi Corporation in TCS Japan for JPY 3.5 billion ($ 32.6 million). TCS' holding in TCS Japan will go up from the current 51 percent to 66 percent.
• Infosys: Formed strategic partnership with Toyota Material Handling Europe. Signs long-term Agile Integrated Application and Infrastructure Management agreement.
• HEG: India Ratings and Research (Ind-Ra) has affirmed HEG Limited's (HEG) Long-Term Issuer Rating as lIND AA'. Outlook is Stable.

• Piramal Enterprises: Looking to sell the entire 20 percent stake in Shriram Capital Limited as a part of the long-term strategy to fund growth of its financial services business. Piramal had invested Rs 2,146 crore in Shriram Capital.
• Gujarat Borosil: Set up new additional furnace of 210 TPD for production of solar glass at its existing plant in Bharuch District of Gujarat and has started trial production today.
• Syndicate Bank: Board to meet on June 29 to consider raising capital for 2019-20.
• Eris Life: Board to mull buy back of shares on July 3
• Welspun Corp: Board fixed July 5 as the record date for buyback.
• Suzlon Energy: Exploring funding options including raising equity.

Offerings

• SBI Life: BNP Paribas Cardif to sell up to 2.5 crore equity shares at Rs 650 per share (discount of 8.5 percent). The offer shall take place over two trading days on June 25 and June 26.
• L&T Technology Services: L&T to sell up to 2 lakh equity shares at Rs 1650 per equity share (discount of 5.8 percent). The offer shall take place over two trading days on June 25 and June 26
• IndiaMart InterMesh IPO gets 50 percent demand on first day sale, Offer closes June 26
• K.P.R. Agrochem to sell shares at Rs 59-61 each in IPO starting June 28

Insider Trading

• GMR Infra promoter bought 1.9 crore equity shares from open market.
• JSW Steel promoter released pledge on 15.5 lakh equity shares
• Max India promoter pledge additional 1 crore equity shares
• Emami promoters pledge additional 92.34 lakh equity shares

Bulk Deals

• Modella Woolens: LIC sells 5,000 shares or 0.5 percent equity at Rs 13.35 each

Emami

• Promoters sell 4.54 crore shares or 10 percent equity at an average price of Rs 271.325 each
• SBI MF buys 1.37 crore shares or 3 percent equity equity at Rs 270 each

Who's Meeting Whom

• Ashoka Buildcon Ltd. will meet investors/analysts in and Hong Kong from June 26-28, as a part of non-deal road show organised by JM Financials.
• M&M Financial: Company to attend a call with Balyasny Asset Management and meet Myriad Asset Management on June 25. Company to meet UTI Mutual Fund on June 27.
• KEI Industries: Company's officials will meet Motilal Oswal Financial Services on July 2 in Mumbai.
• Fine Organic Industries: Officials of the company will be interacting with investors and analyst on June 25.
• Mahindra Holidays & Resorts India: Company's officials will meet ICICI Securities and Equity Master on June 26.

F&O Cues

Futures

• Nifty June futures closed at 11,717, premium of 18 points versus 29 points
• Nifty futures across series open interest up 3 percent, adds 5.7 lakh shares in open interest
• Bank Nifty June futures closed at 30,631, premium of 29 points versus 10 points
• Bank Nifty futures across series open interest up 2 percent, adds 35,000 shares in open interest
• Nifty Rollover 29 percent, Bank Nifty Rollover 20 percent

Options

• Nifty PCR at 1.30 versus 1.34 (across all series)

Nifty Monthly Expiry June 27

• Max open interest on call side at 12,000 (39 lakh shares)
• Max open interest on put side at 11,500 (29 lakh shares)
• Open interest addition seen at 11,750C (+9 lakh shares), 11,700C (+3.9 lakh shares)
• Open interest shedding seen at 11,800P (-5.7 lakh shares), 11,700P (-5.6 lakh shares)

Stocks In F&O Ban

• In Ban: Adani Power, IDBI, Jet Airways, Reliance Capital, Reliance Infra
• New In Ban: Adani Power
• Out Of Ban: Jain Irrigation

Brokerage Radar

Goldman Sachs on Biocon

• Maintained ‘Buy' with a price target of Rs 380
• H1FY20 to be slow before ramp up in the second half.
• Next wave of launches is imminent as it prioritizes bHerceptin and bLantus in the U.S.
• Pullback in share price is an attractive opportunity to buy.

IIFL on Dr. Reddy's

• Downgraded to ‘Add' from ‘Buy'; cut price target to Rs 2,700 from Rs 3,000.
• Market share uptake in Suboxone has been slow.
• Key product filings of Nuvaring and Copaxone has been delayed.
• Cost rationalization efforts continue, but cut Ebitda estimates by 7 percent and 10 percent for the current and the next financial years respectively.

Macquarie on ITC

• Maintained ‘Outperform' with a price target of Rs 376.
• ITC can deliver one of the most resilient performance amidst slowdown in 2019-20.
• Concerns on punitive taxation and regulations is overdone.
• Channel checks suggest continued strength in cigarette volume growth in last 2-3 months.

Deutsche Bank Research on M&M Finance

• Maintained ‘Buy'; cut price target to Rs 570 from Rs 580.
• Growth weaker; NIMs/asset quality holding up well.
• Remains comfortable on liquidity.
• Management expects growth to remain back-ended.

CLSA on Steel Prices

• Global steel prices have found little support in H1CY19 despite big rally in iron ore.
• Indian steel prices under pressure due to weak global prices and moderation in domestic demand.
• CLSA's supply-side deep dive supports a negative view on iron ore.
• See downside risk to estimates of Tata Steel & JSW Steel.
• Stocks are trading at steep premium to global peers.
• Tata Steel: Maintained ‘Sell' with a price target of Rs 395.
• JSW Steel: Maintained ‘Sell' with a price target of Rs 225.

Goldman Sachs on Indian Metals

• Domestic long steel prices are on a free fall partly on weak demand.
• Indian steel spreads down as sea-borne iron ore prices strengthened.
• Long products' demand has been weaker implying weak construction activity.

ICICI Securities on Glenmark Pharma

• Upgraded to ‘Add' from ‘Hold'; cut price target to Rs 526 from Rs 576.
• Lower price target on Ryaltris launch delayed, but upgrade on stock correction.
• Recent stock correction has more than factored-in this delay and weak margin profile.
• India business remains strong, U.S. likely to grow in single digit.

Morgan Stanley on Indian Telecom

• Jio's broadband subscriber addition rate has stabilised.
• Jio's aggressive broadband subscriber additions relative to industry continues.
• Airtel and Vodafone Idea reported weakish trends of broadband subscriber additions.

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