Sensex, Nifty Rise For Third Day Led By Pharma, IT Shares

• Bharti Infratel has 40 lakh shares change hands in a single block. Stock up 0.23 percent at Rs 300.40.

Buyers and sellers were not immediately known

Source: Bloomberg

Carlsberg A/S is planning a domestic initial public offering of its Indian business, Bloomberg reported citing people with knowledge of the matter, who wished not to be identified. The Danish brewer is interviewing potential arrangers for the share sale over the next few weeks, according to the people.

Shares of the Mumbai-based offshore casino operator rose as much as 10.12 percent to Rs 250.80 on the back of heavy volumes.

Trading volume was 2.5 times its 20-day average.

Shares of the Mumbai-based steel maker fell as much as 2.39 percent to Rs 566.15.

Thysen-Krupp is said to be renegotiating its European deal and is also said to have asked for additional concessions, German newspaper Handelsblatt reported.

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• MAS Financial Services: The Ahmedabad-based non-banking finance company fell as much as 1.85 percent to Rs 580.05. Trading volume was 66.1 times its 20-day average.
• Redington India: The Chennai-based supply chain solution provider rose as much as 18 percent to Rs 139. Trading volume was 36.2 times its 20-day average.
• Kwality: The Delhi-based dairy products maker rose as much as 4.4 percent to Rs 28.45. Trading volume was 15.3 times its 20-day average.
• Thomas Cook: The Mumbai-based travel service provider rose as much as 3 percent to Rs 284.20. Trading volume was 23.2 times its 20-day average.

• Vedanta has 17.5 lakh shares change hands in a block on BSE. Stock down 0.9 percent at Rs 243.20.

Buyers and sellers were not immediately known

Source: Bloomberg

India’s largest software service provider rose as much as 2.75 percent to Rs 1,830 after it announced that its board will meet on June 15 to consider buyback of shares.

Meanwhile, Morgan Stanley has maintained its 'overweight' stance on the stock and has raised its target price to Rs 2,010 from Rs 1,825.

Shares of the Pune-based auto parts maker rose as much as 2.49 percent, the most since May 25, to Rs 668.20.

Bharat Forge has picked up a strategic stake in UK-based Tevva Motors, a provider of electric powertrain solutions for commercial vehicles, for £10 million.

The company has also acquired a license for commercialisation of the Tevva technology within India and for strengthening its research and development activities in the e-mobility space, the company said in a regulatory filing.

• Dish TV has 3.95 crore shares or 2.2 percent equity change hands in five block deals. Stock down 0.48 percent at Rs 72.40.

Buyers and sellers were not immediately known

Source: Bloomberg

Shares of the Mumbai-based power transmission company rose as much as 3.88 percent to Rs 384 after international brokerage Macquarie initiated coverage on the stock with an 'outperform'.

Macquarie in a note said:

• Play on railway electrification opportunity in India.
• Power T&D to witness stable growth.
• RoE of +20 percent to sustain; Leverage to come down further.
• Expect revenue and net profit to compound at 13 percent and 21 percent over the fiscal 2018-2021.
• Multiple catalysts in place, deserves premium.

Sundar Genomal of Page Industries told BloombergQuint that the company is looking forward to get equal revenues from both men and women wear in future.

Key highlights of the conversation:

• Move shows the confidence Jockey has on Page Industries and India
• Have been with Jockey for the past 60 years
• Have been best performing licensee for Jockey worldwide
• No change in terms of contract with Jockey
• Our strength has been mostly in men’s innerwear segment
• Men’s innerwear constitute 70 percent and women innerwear is 30 percent
• Regional brands make women wear very fragmented
• Taking aggressive steps to boost women innerwear segment
• Men's wear is not saturated, lots of room to grow
• Only credible competition to Page Industries is ourselves
• Comfortable at current promoter shareholding

First quarter will be a muted one but company expects uptick of 15 percent from the monsoon season, A Velumani, CEO of Thyrocare told BloombergQuint in an interview.

Key highlights of the conversation:

• Degnue and chikungunya treatment rampant during monsoon season
• Focus shifts mainly to preventive care segment
• Monsoon season shows an uptick of around 15 percent
• Looking to let go off 200 basis points to get topline growth
• Ebitda will not drop despite cutting price

Shares of companies providing affordable housing projects rose after the government approved a 33 percent increase in carpet area of houses eligible for interest subsidy under its affordable housing scheme Pradhan Mantri Awas Yojana-Urban.

The carpet area of a house has been enhanced to 160 square meters from 120 square meters for Middle Income Group-I (MIG-I), while it has been increased to 200 square meters from 150 square meters in case of MIG II.

• Sunteck Realty rose 2.9 percent
• Ajmera Realty advanced 3.38 percent
• Kolte Patil Developers climbed 2.32 percent
• Ashiana Housing gained 2.06 percent

Shares of the country's largest wireless carrier fell as much as 1.93 percent and Idea Cellular declined as much as 3.6 percent as tariff wars continue in the telecom space.

Jio is offering Rs 100 discount on Rs 399 plan along with double data (3GB/day) benefit to users. Subscribers can avail the scheme till June 30, the Reliance Jio in a statement said.

Shares of the country's largest drugmaker rose as much as 3.8 percent to Rs 560.95 after U.S. drug regulator cleared its Halol manufacturing unit in Gujarat.

Sun Pharma received the establishment inspection report (EIR) from the U.S. FDA for Halol plant, it said in an exchange filing. The inspection is now closed, and issues raised in the December 2015 warning letter have been addressed, it said.

The rupee fell 13 paise to 67.62 against the US dollar in early trade today due to increased demand for the American currency from importers amid foreign fund outflows and rising retail inflation.

Retail inflation jumped to a four-month high of 4.87 per cent in May on costlier food items such as fruits, vegetables and cereals coupled with high fuel rates.

However, industrial production expanded by 4.9 per cent in April on improved performance by manufacturing and mining sectors as also a robust offtake of capital goods.

Forex dealers said dollar strengthening against other currencies overseas as investors await a key Federal Reserve decision later in the day also weighed on the rupee sentiment.

Source: Press Trust of India

The rupee forwards have weakened against the dollar after inflation data showed a pickup in May. An indication that the currency may fall.

ANZ expects inflation won't see an “early reversal,” given higher oil prices, a seasonal increase in food prices and adverse base effects.

Chances are sovereign bonds too will remain under pressure. More negative news could pile up at the end of the day today if the U.S. Fed decides to raise interest rates.

Goldman Sachs closed their trade recommendation for India 5-year bonds due to their more hawkish outlook on the RBI after the latest interest rate hike.

A subdued April industrial production number and risks to growth mean the central bank will probably look though the May inflation data and leave rates on hold in August, Bloomberg Economics said.

Macquarie on KEC International

• Initiated ‘Outperform’ and a price target of Rs 454.
• Play on railway electrification opportunity in India.
• Power T&D to witness stable growth.
• RoE of +20 percent to sustain; Leverage to come down further.
• Expect revenue and net profit to compound at 13 percent and 21 percent over the fiscal 2018-2021.
• Multiple catalysts in place, deserves premium.

IDFC Securities on Sun Pharma

• Maintained ‘Outperform’ with a price target of Rs 574.
• Receipt of Halol EIR is major positive development for Sun’s U.S. business.
• EIR underlines that the phase of FDA compliance related challenges is largely behind.
• Growth trajectory of speciality portfolio will remain key monitorable.
• Sun is clearly best placed amongst large domestic peers.

Morgan Stanley on Sun Pharma

• Maintained ‘Underweight’ with a price target of Rs 448.
• Halol clearance on expected lines.
• New ANDA approvals held back for last three years should commence.
• Sun should be able to gradually increase sales for the current portfolio.

Citi on Maruti Suzuki

• Maintained ‘Buy’ with a price target of Rs 10,700.
• Agree with management assessment of double-digit volume growth for 2018-19.
• Share gains in PV cars have more than offset the slippage in UVs.
• Well balanced growth, in both rural and urban with strong dealer network.

Citi on Reliance Industries

• Maintained ‘Buy’; raised price target to Rs 1,180 from Rs 1, 150.
• Period of consolidation YTD provides an attractive entry point.
• Higher crude has improved economics of petcoke gasification to benefit.
• Next telco event to watch out is FTTH & enterprise launch.
• Top large-cap pick in Indian oil & gas space.

Goldman Sachs on IT Sector

• Reduce EPS estimates for HCL Tech given challenges in IMS.
• Maintain Buy on Tech Mahindra, Mphasis and Infosys; Sell on Wipro.
• 5G remains a key structural growth opportunity yet to be priced in for Tech Mahindra.
• Infosys is trading at a sharp discount to TCS, despite having similar growth profile.
• Positive stance on Mphasis reflects strong deal momentum in direct channel.
• Weak execution, client losses and challenges in healthcare not in valuation.

Nomura on NTPC

• Maintained ‘Buy’ with a price target of Rs 200.
• Plant load factor of thermal capacity was 73.7 percent in May-2018, down 170 basis point on a monthly basis and 120 basis points on a yearly basis.
• PLF dragged lower largely due to accident-triggered outage and planned outages.
• 15.7GW capacity across eight plants had less than a week’s coal inventory in May.

HSBC on ICICI Lombard

• Maintained ‘Reduce’ with a price target of Rs 620.
• Multi-year policies could result in reserving risks.
• Impact of hike in compensation limits likely to be muted.
• Biggest upside risk is passage of Motor Vehicles bill.

IDFC Securities on Hikal

• Hybrid business model provides competitive advantage.
• Pharma: healthy volumes drive growth.
• Agrochemicals - new product launches to drive growth.
• Management expects margins to improve and FCF to turn positive.

Morgan Stanley on TCS

• Maintained ‘Overweight’; raised price target to Rs 2,010 from Rs 1,825.
• Positives: Strong global growth, U.S. economy doing well, digital adoption and rupee depreciating.
• Expect margins can move toward 26-28 percent.
• Raised EPS estimates by 4-5 percent to factor gains from rupee depreciation.
• Valuation should reflect superior profile.

Who's Meeting Whom

• PI Industries to meet ICICI Prudential Mutual Fund on June 13.
• Advanced Enzymes to meet Baron Funds, Dalton Investments and other investors from June 13-15.
• Eris Lifesciences to meet Baring Private Equity Partners on June 13.

Insider Trades

• Centrum Capital promoter BG Advisory Services LLP acquired 10,000 shares on June 8.
• Panama Petrochem promoter acquired 24,624 shares from June 7–11.
• Nandan Denim promoter Vedprakash Chiripal acquired 50,000 shares on June 7.
• Intellect design Arena promoter Polaris Banyan Holding acquired 1 lakh shares from June 8–11.

(As reported on June 12)

Bulk Deals

KSK Energy Ventures

• Mentor Capital bought 30 lakh shares or 0.7 percent equity at Rs 2.48 each.
• Oriental Bank of Commerce sold 23.23 lakh shares or 0.5 percent equity at Rs 2.38 each.
• Societe Generale sold 52.35 lakh shares or 1.2 percent equity at Rs 2.46 each.

Uttam Galva Steels

• Asia Investment Corporation (Mauritius) Ltd sold 10 lakh shares or 0.7 percent equity at Rs 11.45 each.

Trading Tweaks

• Usha Martin circuit filter revised to 10 percent.
• Caplin Point Laboratories circuit filter revised to 5 percent.
• L.G. Balakrishnan & Bros last trading day before ex-bonus.
• TCS to consider buyback on June 15.

F&O Cues

• Nifty June Futures ended at 10,839, with a discount of 3.7 points versus discount of 1 point.
• June series Nifty open interest (OI) up 2 percent and Bank Nifty OI up 3.3 percent.
• India VIX ended 12.7, down 3.4 percent
• Max OI for June series call at 11,000 strike price call option, OI at 38.3 lakh shares, down 3 percent
• Max OI for June series put at 10,600 strike price put option, OI at 50.6 lakh shares, up 2 percent.

• Page Industries says license pact with Jockey extended until December 2040.
• Premier resumes operations at Pune plant following workers’ unrest.
• Alok Industries says NCLT asks resolution professional to present resolution plan to lenders.
• Bharat Forge acquires 35.26 percent stake in U.K.’s Tevva Motors for 10 million pounds.
• Nitin Spinners says committee to meet on June 15 to approve issue price for preferential allotment.
• Federal Bank agrees to acquire 19.98 percent in Equirus Capital.
• Religare Enterprises sues Lakshmi Vilas Bank for invoking fixed deposits.

U.S. drug regulator clears Sun Pharma’s Halol plant. @darshanvmehta1 reports.https://t.co/GBbSwP0Ycf pic.twitter.com/k0G4nnu2SD

— BloombergQuint (@BloombergQuint) June 12, 2018

U.S. inflation accelerates to a six-year high, eroding wages.https://t.co/V05ZWa20b1 pic.twitter.com/YTSiquuoZZ

— BloombergQuint (@BloombergQuint) June 13, 2018