All You Need To Know Going Into Trade On June 28

Stocks in Asia saw a quiet open on Friday, ahead of the highly anticipated U.S.-China presidential meeting Saturday that could determine the next chapter in the trade war between the world's two largest economies.

Shares in Japan, Australia and South Korea were little changed in early trading, though U.S. stock futures advanced following a modest gain in the Wall Street session Thursday. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index's performance in India, fell 0.23 percent to 11,842 as of 7 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

BQ Live

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

U.S. Market Update

Stocks halted four days of declines as trade optimism reigned ahead of U.S.-China talks at the Group of 20 conference this weekend in Japan. Treasuries advanced.

#BQMarketWrap | U.S. stocks gain on trade hopes; Treasuries rise.

Read: https://t.co/ngTyQEPLmT pic.twitter.com/7b7R2rvT9l

Asian Cues

• Futures on the S&P 500 Index rose 0.2 percent.
• Japan's Topix was down 0.1 percent.
• Australia's S&P/ASX 200 Index dipped 0.1 percent.
• Kospi rose 0.1 percent.

Commodity Cues

• Brent crude rose 0.3 percent to $65.73 per barrel.
• West Texas Intermediate crude was flat at $59.43 a barrel.
• Gold rose 0.3 percent to $1,414.27 an ounce.

London Metal Exchange

• Copper ended little changed.
• Zinc ended lower for the second day, down 1.24 percent.
• Nickel ended higher for the fourth consecutive trading session, up 1.76 percent.
• Tin halted a two-day fall, closed 0.37 percent higher.
• Aluminium ended a three-day gain, closed 1.65 percent lower.
• Lead resumed gains after a one-day blip, closed 0.62 percent higher.

Economic Datawatch

• India fiscal deficit for April-May period
• India eight infrastructure industries index for May
• India Q1 BoP current account balance, Bloomberg Estimates at -$6.05 billion

Indian ADRs

Stocks To Watch

• Persistent Systems: To acquire 70 percent stake in Youperience Ltd. for GBP 1.2 million (Rs 10.5 crore). Acquisition to complete within two weeks
• Cox & Kings made part-payment on Rs 200 crore CPs. The company repaid two investors Rs 50 crore out of Rs 200 crore due on June 26. Remaining Rs 150 crore will be paid through internal accruals and asset monetisation.
• Godrej Group sought advice from external partners on options for long-term strategy plan. The Group stated that these talks are normal and a private family discussions. (Company Statement)
• Quess Corp board has deferred the proposal of raising of funds. The company plans to consider the proposal at later date.
• Tata Motors Jaguar Land Rover Automotive Plc five-year senior CDS widened two points to seven points upfront, the most since Feb. 8, according to data provider CMA. The CDS market implied default probability over the next five years is now at 43 percent. (Bloomberg News)
• Lupin received tentative U.S. FDA approval for Mirabegron ER Tablets, to market generic version for Myrbetriq ER Tablets of Astellas.
• NMDC served notice to Bharat Heavy Electricals for termination of contract for a raw material handling system at its steel plant in Nagarnar due to “abysmal” progress and delay of more than five years from original completion date, iron ore miner says in statement. NMDC will explore new options to quickly complete the work at the project. (Bloomberg News)
• Sobha, Prestige Estate Projects, Brigade Enteprises, Puravankara: Government of Karnataka is planning to deny permission for building new apartments in Bengaluru for the next five years until the water crisis in the city is resolved. (Media Reports)
• 8K Miles Software Services board meeting set for June 28 for approval of financial results has been adjourned to July 18. Company says audit of subsidiary companies are still in progress.
• Vedanta Zambian High Court granted the company an order to stay the powers of the Konkola Copper Mines provisional liquidator to sell or dispose of KCM's assets through public tender, or to make any arrangements with creditors, the company said in an emailed statement. (Bloomberg News)
• Excel Industries Board approved acquisition chemical manufacturing unit of NetMatrix Cropcare for Rs 95 crore. The said unit was commissioned in May for manufacturing of a pesticide intermediate.
• Can Fin Homes MD and CEO Sarada Kumar Hota resigned on June 27, as a consequence of his appointment as MD of National Housing Bank.
• MMTC has considered sale of its stake in JV Company Neelachal Ispat Nigam.
• IL&FS unable to service NCDs interest due on June 27. (Bloomberg News)

Bulk Deals

• Sintex Plastics Technology: Barclays Merchant Bank sold 34.76 lakh shares or 0.55 percent equity at Rs 6.72 each.

DB Realty

• Kemnay Investment Fund acquired 52 lakh shares or 2.14 percent equity at Rs 13.25 each.
• Walkinson Investments sold 52 lakh shares or 2.14 percent equity at Rs 13.25 each.

Aster DM Healthcare

• Rimco India acquired 82.87 lakh shares or 1.64 percent equity at Rs 120 each.
• True North Fund sold 82.87 lakh shares or 1.64 percent equity at Rs 120 each.

Pledge Share Details

• JSW Energy promoters created pledge of 26 lakh shares and released pledge of 4.42 crore shares from June 18-19.
• JSW Steel promoter Sahyog Holdings created pledge of 10 lakh shares on June 25.
• Emami promoters revoked pledge of 59 lakh shares from June 21-24.
• Kalpataru Power Transmission promoters revoked pledge of 40 lakh shares from June 24-25.
• Gati promoter Mahendra Kumar Agarwal & Sons HUF created pledge of 25,000 shares on June 25.
• Cigniti Technologies promoter Chakkilam Rajeshwari revoked pledge of 2.25 lakh shares on June 26.
• Apollo Hospital Enterprise promoter Suneeta Reddy revoked pledge of 1.8 lakh shares on June 21.
• Birlasoft promoter National Engineering Industries created pledge of 4.6 crore shares on June 24.
• Adani Ports and SEZ promoter Gautam Adani & Rajesh Adani created pledge of 4.4 lakh shares on June 24.

Trading Tweaks

• 8K Miles Software Services, LGB Forge to move into short term ASM Framework.
• Jain Irrigation Systems to move out of short term ASM Framework.
• IFCI, Jet Airways, PC Jeweller, Reliance Power to be made non-available for transactions in SLB Segment.

Price Band Revision

20 percent:

• Ajanta Pharma
• Allahabad Bank
• BEML
• Can Fin Homes
• Ceat
• CG Power and Industrial Solutions
• Chennai Petroleum Corporation
• DCB Bank
• Godfrey Phillips
• Godrej Industries
• Gujarat State Fertilizers & Chemicals
• IDFC
• IFCI
• India Cements
• Indian Bank
• Infibeam Avenues
• IRB Infrastructure Developers
• Jain Irrigation Systems
• Kaveri Seed Company
• Karnataka Bank
• Mangalore Refinery and Petrochemicals
• NHPC
• Oriental Bank of Commerce
• PC Jeweller
• Repco Home Finance
• Reliance Power
• South Indian Bank
• Suzlon Energy
• Syndicate Bank
• Tata Communications
• TV18 Broadcast
• V-Guard Industries
• Wockhardt

10 percent:

• BSL
• Daikaffil Chemicals
• Jhandewalas Foods
• Arshiya

5 percent:

• Emami Realty

Who's Meeting Whom

• Polycab to meet Investec, Macquarie Capital and other investors on June 28.
• Heidelberg Cement to meet Anand Rathi on June 28.
• Future Lifestyle Fashions to meet Temasek, SBI MF and other investors on June 28.

Insider Trading

• SBI Life Insurance promoter BNP Paribas Cardiff sold 2.5 crore shares from June 25-26.
• DCM Shriram promoter group Lily Commercial acquired 26,500 shares from June 24-25.
• NIIT Technologies promoter Hulst BV acquired 1.11 lakh shares from June 24-25.
• Vascon Engineers promoter and director Siddharth Moorthy acquired 1.83 lakh shares on June 26.
• Mukand promoter Bajaj Sevashram acquired 80,000 shares from June 20-26.

Money Market Update

In the currency market, implied opening from forwards suggest the pair may start trading around 69.07 a dollar. Most Asian indexes have slipped in the red ahead of the U.S.-China meeting to resolve trade dispute. With risk appetite muted, dealers see the pair in a range of 68.90-69.30 a dollar in the day.

The focus for sovereign bond investors will be the weekly debt auction. Govt plans to sell Rs 17,000 crore of debt maturing between 2012 and 2059 today and the cutoffs will be closely watched. Yield on the benchmark note fell four basis points in the last session to close at 6.90 percent. For today, dealers see it trading between 6.87-6.93 percent in the day.

F&O Cues

Futures

• Nifty July futures closed at 11,908.5, premium of 67 points.
• Nifty futures across series open interest up 8 percent, adds 18.4 lakh shares in open interest.
• Bank Nifty futures closed at 31,372, premium of 103 points.
• Bank Nifty futures across series open interest down 9 percent, sheds 2 lakh shares in open interest.
• Nifty Rollover 80 percent, Bank Nifty Rollover 81 percent.

Options

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

Nifty Weekly Expiry 4-July

• Max open interest on call side at 12,000 (14.6 lakh shares).
• Max open interest on put side at 11,800 (11.8 lakh shares).
• Open interest addition seen at 12,000C (+8.7 lakh shares), 11,800P (+5.9 lakh shares).

Nifty Monthly Expiry 25-July

• Max open interest on call side at 12,000 (11.9 lakh shares).
• Max open interest on put side at 11,000 (14.8 lakh shares).

Brokerage Radar

HSBC on Alembic Pharma

• Upgraded to ‘Buy' from ‘Hold'; hiked price target to Rs 590 from Rs 575.
• Received FDA approval for nine drugs in last nine months thereby indicating of R&D efforts.
• Expect operating margins to grow steadily over FY20-22.
• Upgrade to Buy on improving U.S. outlook.

IIFL on HG Infra

• Initiated ‘Buy' with a price target of Rs 364.
• Well-placed to capitalize on highway spends.
• Orderbook provides growth visibility for FY20-21.
• Under-control balance sheet to support bidding and development.

Macquarie on Reliance Industries

• Maintained ‘Neutral'; cut price target to Rs 1,230 from Rs 1,290.
• See weak operating environment for RIL's core refining and chemical division.
• Cut FY20-22 EPS estimates by 10-15 percent; petchem performance peaked last year.
• Over long term remain bullish on incremental outlook for refining.

JPMorgan on TCS

• Maintained ‘Neutral' with a price target of Rs 2,100
• Demand picture still good; Double-digit growth intent for 2019-20 retained
• Potential margin issues to surface if the rupee-dollar does not depreciate to Rs 73+ in the current financial year.
• Stock returns will require consistent 10 percent revenue/EPS growth, which might be difficult.

CLSA on Indian IT

• Accenture's Q1 reiterates strong demand.
• Strong revenue growth resonates improving deal wins by Indian tech companies.
• Strong growth in the U.S. is positive for most firms, but more for Infosys.
• Strong growth in CMT is positive for Tech Mahindra, Wipro and HCL Tech.
• Strong operational demand is positive for TCS and HCL Tech.
• Stronger consulting and apps are better for Infosys and HCL Tech.

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