All You Need To Know Going Into Trade On June 27

Asian stocks edged up, though volumes were lower across the board, ahead of the highly anticipated meeting between Presidents Donald Trump and Xi Jinping set for Saturday morning.

Shares in Japan, South Korea and Hong Kong saw modest gains, while Australian equities dipped. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, traded little changed at 11,867.50 as of 7:20 a.m.

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BQ Live

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

U.S. Market Update

Most U.S. stocks fell as trade concerns countered strength in the tech sector. Treasuries declined with gold after investors eased back bets on a deep cut to interest rates next month.

#BQMarketWrap | U.S. stocks edge lower; Treasuries fall, oil advances.

Read: https://t.co/H2OPq0MH4r pic.twitter.com/BXJKXKI679

Asian Cues

• Futures on the S&P 500 Index rose 0.2 percent.
• Japan's Topix index rose 0.7 percent.
• Hong Kong's Hang Seng added 0.4 percent.
• The Shanghai Composite rose 0.3 percent.
• South Korea's Kospi index added 0.4 percent.
• Australia's S&P/ASX 200 Index was flat.

Commodity Cues

• Brent crude fell 0.44 percent to $66.05 per barrel. It ended 2.2 percent higher yesterday.
• West Texas Intermediate crude slipped 0.7 percent to $58.96 a barrel.
• Gold rose 0.2 percent to $1,411.25 an ounce.

London Metal Exchange

• Copper ended 0.89 percent lower.
• Zinc ended 1.45 percent lower, halting a two-day gain.
• Nickel ended higher for the third day, up 1.54 percent.
• Tin ended lower for the second day, down 1.42 percent.
• Aluminium ended higher for the third day, up 0.33 percent.
• Lead halted a two-day gain, closed 0.54 percent lower.

Indian ADRs

Stocks To Watch

• SBI board to consider raising additional tier-1 capital on July 1. Board stated in the press release, that it will consider raising capital via Basel-III compliant debt instruments during financial year 2020.
• Mindtree Chief Executive Officer Rostow Ravanan is likely to resign in the coming weeks with infrastructure major L&T becoming a majority shareholder in the mid-sized IT company, sources told PTI.
• Bharti Airtel Africa to issue shares at 80 pence per share. Books oversubscribed on full deal size. (Bloomberg News)
• Sadhana Nitro Chem NLCT approved merger of Strix Wireless with the company
• CreditAccess Grameen completed direct assignment of Rs 138.89 crore on June 26. The company stated in the press release that it has completed one securitisation and one direct assignment transaction totaling Rs 249.24 crore in financial year 2020.
• Bharat Financial Inclusion shall be excluded from equity derivatives segment with effect from July 3.
• MSTC signed agreement with Kerala State Electricity Board for providing e-procurement services for the state's solar projects.
• Greaves Cotton board fixed July 12 as record date for share buyback.
• Welspun India has entered into a JV with Germany's Sense Organics and has acquired 51 percent stake in its Myanmar arm.
• M&M's wholly owned subsidiary has filed for voluntary liquidation and upon receipt of the Order dated June 26, 2019 has been liquidated and ceased to be in existence
• Sunteck Realty is aiming to create a large portfolio with an investment of Rs 5000 crore in commercial and retail properties over the next four years.
• Reliance Infra: CARE Ratings downgraded ratings on long term facilities and short-term facilities to D from B and A4. NCDs ratings have been moved to C from B. The revision takes into account the on-going delays in debt servicing. Further, the revision in long term rating assigned to the nonconvertible debenture issues factor in the deterioration in the credit risk profile.
• Adani Ports: To raise $750 million by issuing fixed rate unsecured notes which will be listed on Singapore Exchange. Proceeds will be used primarily for capital expenditure and repaying existing debt.

Offerings

• IndiaMart IPO gets bids for about 97.5 million shares, compared with 2.69 million offered, on the last day of its sale, according to data on the National Stock Exchange. IPO gets 36.2 times demand. (Bloomberg News)

Bulk Deals

• Dhanuka Agritech: Ocean Dial Gateway To India Mauritius sold 2.44 lakh shares (0.51 percent) at Rs 400 each
• AVG Logistics: Sixth Sense India Opportunities acquired 948,000 shares at Rs 78.35 each. (Alert: Stock is listed in SME NSE Emerge Index)

Aster DM Healthcare

• Ontario Pension Board acquired 27.65 lakh shares (0.55 percent) at Rs 120 each.
• HDFC MF acquired 83 lakh shares (1.64 percent) at Rs 120 each.
• Fidelity Management Trust acquired 48.3 lakh shares (0.96 percent) at Rs 120 each.
• Steinberg India Emerging Opportunities Fund acquired 25.55 lakh shares (0.51 percent) at Rs 120 each.
• Tata Aia Life Insurance acquired 50 lakh shares (0.99 percent) at Rs 120 each.
• True North Fund sold 3.74 crore shares (7.4 percent) at Rs 120 each.

Pledge Share Details

• Coffee Day Enterprises promoter and director VG Siddhartha created pledge of 16.23 lakh shares from June 18-21.
• Emami promoters created pledge of 1.06 crore shares on June 21.
• Birlasoft promoter National Engineering Industries created pledge of 4.6 crore shares on June 26.
• Gati promoter Mahendra Kumar Agarwal and Sons HUF created pledge of 25,000 shares on June 26.
• Kalpataru Power Transmission- Kotak Mahindra Investments released pledge of 5 lakh shares, Axis Finance released pledge of 13 lakh shares and Aditya Birla Finance released pledge of 22 lakh shares from June 24-25.
• Hubtown promoter Hemant Shah invoked pledge of 1 lakh shares on June 17.
• Mcleod Russel promoters invoked pledge of 19 lakh shares on June 21.

Trading Tweaks

• Relaxo Footwears record date for bonus issue at 1:1.
• Avadh Sugar & Energy ex-date for bonus issue at 1:1.
• V2 Retail, Vikas EcoTech , Sintex Plastics Technology to move into short term ASM Framework.
• LGB Forge, Igarashi Motors price band revised to 10 percent.
• Adlabs Entertainment price band revised to 5 percent.

Who's Meeting Whom

• Mahindra Holidays & Resorts to meet Canara Robecco MF on June 28.
• Mahindra & Mahindra to meet C Worldwide Asset Management, Sanford Bernstein and other investors from June 27-28.
• Manappuram Finance to meet Morgan Stanley, Helios Capital and other investors from June 27-28.
• Speciality Restaurants to meet Seers Advisors on June 27.
• Mahindra & Mahindra Financial Services to meet Ellerston Capital on June 27.

Insider Trading

• Jindal Stainless promoter Ratan Jindal acquired 1.27 lakh shares from June 21-24.
• Vascon Engineers promoters acquired 3.5 lakh shares on June 25.
• Spencer's Retail promoter group Castor Investments acquired 3.09 lakh shares on June 25.

Money Market Update

The implied opening from rupee forwards suggest the pair may start trading around 69.2077 a dollar. The risk appetite seems to be back in the region with most Asian indexes trading in the green. The rupee is likely to trade in a range of 69.15-69.60 a dollar in the day.

Sovereign bonds continue to reel under pressure as crude oil prices above $66 a barrel rekindles worries about inflation and the health of government's finances. And the worry is evident. Yield on the benchmark bond climbed five basis points to 6.93 percent in the last session. For today, a range of 6.90-6.95 percent is expected for the 10-year note.

F&O Cues

Futures

• Nifty June futures closed at 11,864, premium of 17 points versus 13.9 points.
• Nifty futures across series open interest down 0.5 percent, sheds 1 lakh shares in open interest.
• Bank Nifty June futures closed at 31,172, premium of 10 points versus 31.6 points.
• Bank Nifty futures across series open interest up 0.5 percent, adds 11,000 shares in open interest.
• Nifty Rollover 55 percent, Bank Nifty Rollover 50 percent.

Options

• Nifty PCR at 1.60 versus 1.51 (across all series).

Nifty Monthly Expiry 27 June

• Max open interest on call side at 12,000 (34.5 lakh shares).
• Max open interest on put side at 11,700 (39 lakh shares).
• Open interest addition seen at 11,800P (+14.4 lakh shares), 11,850P (+7.7 lakh shares).
• Open interest shedding seen at 11,800C (-11 lakh shares), 11,750C (-4.2 lakh shares).

Stocks In F&O Ban

In Ban:

• Adani Power
• IDBI Bank

Out of Ban:

• Jet Airways
• Reliance Capital

Brokerage Radar

IIFL on Cement

• Divergent trends seen in demand and prices.
• Seen a sharp rise in prices led by discipline strengthening.
• Sharp deceleration in demand growth.
• Utilisation likely to decline in the current financial year.

Deutsche Bank Research on Colgate Palmolive

• Maintained ‘Buy'; cut price target to Rs 1,400 from Rs 1,500.
• Weak underlying trends.
• Category growth has moderated to 5 percent level.
• Rural growth is below urban; Market share is stable.
• Margins to be under pressure due to higher promotions, but cost efficiencies to provide support.

UBS on HCL Tech

• Maintained ‘Neutral' with a price target of Rs 1,125.
• IBM deal closure delay to result in soft Q1.
• Company still believes that it can meet its 2019-20 guidance.
• Downside due to soft Q1 to be limited; expect meaningful recovery in the second quarter.

Macquarie on Cholamandalam Investment

• Maintained ‘Outperform' with a price target of Rs 300.
• Funding is not problem; banks eager to provide funds.
• Stellar asset quality is due to superior collection infrastructure.
• Co-origination could be a big opportunity.

JPMorgan on Hindalco

• Maintained ‘Overweight' with a price target of Rs 320.
• Management. focus on reducing cyclicality of earnings with downstream focus.
• Near-term coal costs have come-off, but lower LME prices to hurt earnings.
• See MIP possibility in aluminum in India.

PhillipCapital on Indian Metals

• Steel to outperform base metals despite short‐term headwinds.
• Indian steel demand growth will be one of the strongest in major producing and consuming countries.
• Aluminium to report a deficit; zinc markets moving to surplus.
• Tata Steel: Initiated ‘Buy' with a price target of Rs 640.
• Jindal Steel & Power: Initiated ‘Buy' with a price target of Rs 225.
• SAIL: Initiated ‘Buy' with a price target of Rs 58.
• JSW Steel: Initiated ‘Sell with a price target of Rs 225.
• NMDC: Initiated ‘Buy' with a price target of Rs 131.
• Hindalco: Initiated ‘Buy' with a price target of Rs 264.
• Hindustan Zinc: Initiated ‘Neutral' with a price target of Rs 225.
• Vedanta: Initiated ‘Buy' with a price target of Rs 205.
• NALCO: : Initiated ‘Neutral' with a price target of Rs 56.

Morgan Stanley on Telecom

• Industry's structure has improved – three operators now dominate.
• Airtel's revenue is showing early signs of recovery.
• For Infratel, large tenancy deletions are done; hoping for stability.
• Tariff increase a key catalyst for stocks and industry repair.
• Bharti Airtel: Resumed ‘Equal-weight' with a price target of Rs 360.
• Bharti Infratel: Resumed ‘Overweight' with a price target of Rs 323.

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