Sensex, Nifty Clock Worst Week In Over A Month

Gruh Finance

• Stock fell as much as 7.1 percent to Rs 285.30.
• Trading volume was almost 15 times its 20-day average.

PI Industries

• Stock rose as much as 3.2 percent to Rs 1,179.65.
• Trading volume was almost five times its 20-day average.

Gujarat State Petronet

• Stock fell as much as 4.3 percent to Rs 177.70.
• Trading volume was more than triple its 20-day average.

Tata Communications

• Stock rose as much as 3.1 percent to Rs 505.70.
• Trading volume was more than triple its 20-day average.

Hexaware Technologies

• Stock rose as much as 3.6 percent to Rs 359.15.
• Trading volume was triple its 20-day average.

The trading screen does not look exciting the way it was couple of weeks ago, Yes Securities’ Pritesh Mehta said.

The markets should not be concerned by the declines for the benchmarks peak because they are going back to moving averages levels and trying to find respite around 11,800 levels, Mehta told BloombergQuint in an interaction, adding that the investors should buy on dips and sell on rallies.

Smartlink Holdings

• Stock rose as much as 13 percent to 16 percent to Rs 112.70, the highest in over a year.
• The company’s board approved buyback of 42 lakh shares worth Rs 54.6 crore.

Wockhardt

• Stock rose as much as 3.7 percent to Rs 397.35.
• The company received zero Form 483 observation from the U.S. FDA after it had carried inspection of Bioequivalence Centre in Aurangabad, during which Tamsulosin and Metoprolol drugs were audited.

Kalpataru Power

• Stock rose as much as 2.7 percent to Rs 503.
• PhilipCapital initiates coverage with the most bullish price target yet.

RITES

• Stock rose as much as 5.3 percent to Rs 8 percent to Rs 297.90.
• The company proposes bonus shares issues and the same will be decided during the board meeting on June 24.

Indian equity benchmarks are currently struggling to hold weekly gains.

The S&P SBE Sensex is down 0.04 percent so far this week and the NSE Nifty 50 is trading 0.02 percent lower.

As of 3 p.m., the 31-stock index is trading 130 points lower at 39,606 and the NSE Nifty 50 is trading at 11,872, down .035 percent. Both the benchmark indices have recovered from the day’s low.

Shares of RITES remained in focus as the stock rose 8 percent intraday after the company proposes issuing bonus shares.

Shares of the state-owned firm rose as much as 7.5 percent to Rs 296.50, the highest since Dec. 21.

The company said that the board will meet on June 24 to consider bonus shares issue proposal, according to its stock exchange filing.

Trading volume was more than quadruple its 20-day average, Bloomberg data showed. The Relative Strength Index was above 70, indicating that the stock may be overbought

Shares of the BPO operator rose as much as 11.6 percent, the most in seven months, to Rs 50.85.

Trading volume was almost quadruple its 20-day average, Bloomberg data showed. Of the shares traded, 65 percent were at the ask price and 28 percent were at the bid.

Urging the industry to join hands in bringing innovative ways of financing, Union Minister Nitin Gadkari Friday said there was no "trust deficit" between industry and the government, which has been constantly doing away with "red-tapism".

Gadkari said the ban on the entry of corporates and private players in MSME sector has been lifted to pave way for formation of 700 clusters in order to reduce dependence on imports as well as for job creation.

"There is no trust deficit between the government and industry. Government is very positive and has faith and trust in the industry. We are bringing improvements as per suggestions of industry and request for more recommendations,” Gadkari said at CII National Conference

Source: PTI

Source: Bloomberg

Alpha Moguls: Prashant Khemka Has A Unique Way Of Valuing Companies

Shares of Zee Entertainment fell as much as 7.5 percent, the most in nearly a month, to Rs 326.25.

Trading in the company's call options totaled 5,611 contracts, compared with the average of 5,073 over the past 20 days, according to Bloomberg data. Trading in the company's put options totaled 6,288 contracts, compared with the average of 3,008 over the same period.

The stock declined 40 percent in the past 12 months compared to a 11 percent advance in the Sensex. The scrip was the worst performer on Nifty.

Indian equity benchmarks were trading off day’s low.

The S&P BSE Sensex traded 140 points lower at 39,596 as of 1 p.m. after falling nearly 230 points. The NSE Nifty 50 trade hovered around 11,850. The small-cap index represented by the NSE Nifty SmallCap 100 traded 0.1 percent lower.

Yes Bank was in focus in the last one hour as the stock pared losses and rose over 3 percent intraday after a block deal. The stock was the best performer on Sensex and Nifty.

On the flipside, Zee Entertainment Enterprise fell as much as 7.5 percent, making it the worst performer on Nifty.

About 18.2 lakh shares of Yes Bank changed hands in a block deal, Bloomberg data showed. Buyers and sellers were not known immediately.

Shares of the lender pared losses and rose as much as 3.3 percent to Rs 121. The stock was best performer on Sensex and Nifty.

U.S. Blames Iran for Oil Tanker Attacks as Gulf Tensions Climb

Wholesale inflation rose to 2.45 percent in March, according to data from the Ministry of Commerce.

Shares of the the Chennai-based financial services provider rose as much as 2.4 percent to Rs 301.25.

Also, the record date for stock split of five shares for every one share held in the company falls today. The stock traded at 16 times its estimated earnings per share for the coming year, Bloomberg data showed.

Shares of Hexaware Technologies rose as much as 3.6 percent to Rs 359.15.

Hexaware Technologies Ltd. agreed to acquire U.S.-based Mobiquity Inc. for $182 million to expand its cloud and automation service offerings. As per the agreement, $131 million would be paid upfront while the remaining would be a deferred consideration—part of which is contingent on earnouts. (Read the full story here).

Here’s what Hexaware Technologies’ CEO R Srikrishna told BloombergQuint in an interaction regarding the acquisition:

Indian equity benchmarks continued to trade lower, led by the declines in Reliance Industries Ltd., Kotak Mahindra Bank Ltd. and IndusInd Bank Ltd.

The S&P BSE Sensex traded 160 points or 0.4 percent lower at 39,575 as of 11 a.m. and the NSE Nifty 50 traded at 11,855.80, down 0.5 percent. The mid-cap index represented by the NSE Nifty MidCap 100 fell 0.4 percent lower.

Meanwhile shares of the private banks were trading lower. Yes Bank was the worst performer among the pack.

Shares of the country’s largest housing finance company fluctuated between gains and losses to trade 0.5 percent lower at Rs 2,186.

Brokerage and research firm HSBC hiked its price target price target on the stock to Rs 2,500 from Rs 2,195, implying a potential return of 13.8 percent from the last regular trade.

Here’s what HSBC had to say:

• Maintained ‘Buy’ rating on the stock.
• Default by a large mortgage player to result in easier liquidity for better managed players.
• HDFC is well positioned for potential market share gains in current environment.
• Slower growth in wholesale loans mitigates asset quality risks.

Nilesh Jain of Anand Rathi Shares & Stock Brokers suggests investors to avoid fresh bets and to wait for more correction.

“There could be an opportunity to initiate fresh long positions if the Nifty is trading at 11,830-11,840 with a strict stop-loss of 11,800 and an upside target of 11,900-1950,” Jain told BloombergQuint in an interaction.

We are witnessing continuous put writing at 11,800 strike since the beginning of June series. This clearly shows that the Nifty is not expected to go beyond 11,800. There is could be some possibility of reversal from the lower levels since 11,800 is the major support level.

Shares of IndusInd Bank fell as much as 2.2 percent to 1,456, while shares of Bharat Financial Inclusion fell as much as 2.2 percent to 920.

Bharat Financial, in stock exchange notification said that the company received merger approval from National Company Law Tribunal with IndusInd Bank.

Nifty’s 11,900 call option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the weekly contract which is set to expire on June 20, rose 6.63 percent to Rs 53.60. Over 1.8 lakh shares were removed from the open interest which stood at over 17.24 lakh shares.

Indian equity benchmarks traded lower after a shaky start.

The S&P BSE Sensex fell 0.3 percent or 132 points as of 10 a.m. and the NSE Nifty 50 traded at 11,870, down 0.36 percent.

Adani Gas and Gruh Finance were in focus during today’s trade. Shares of Adani Gas rose 6 percent intraday after Times of India reported that France-based Total plans is said to acquire stake in the company.

Gruh Finance fell 7 percent intraday after 4.2 percent equity changed hands in multiple block deals.

The Nifty is expected to remain rangebound going forward, Kunal Shah,Derivative Analyst at Indiabulls Ventures told BloombergQuint in an interaction.

Shah has a target on the 50-stock index of 11,930-11,950 levels on the upside with a stop-loss of 11,830.

Shares of Wockhardt rose as much as 3.7 percent to Rs 397.35.

The company received zero Form 483 observation from the U.S. FDA after it had carried inspection of Bioequivalence Centre in Aurangabad, during which Tamsulosin and Metoprolol drugs were audited according to its statement on the exchanges.

The stock declined 253 percent so far this year compared to a 46.4 percent slump in the past 12 months.

Kalpataru Power Transmission just got its most bullish target price ever.

Shares of the power transmission company could reach Rs 670, broking firm PhillipCapital said in a research report. The target price implies a potential upside of 37 percent from yesterday’s close. It is the highest price target on the company so far, among the analysts tracked by Bloomberg.

Here’s what PhillipCapital had to say:

• Initiated ‘Buy’ coverage on the stock.
• A play on multiple end markets and improving capital allocation.
• Channel checks suggest high probability of Domestic T&D orders going through.
• Focused approach to margins and working capital have yielded results.

Shares of the company fluctuated between gains and losses to trade 0.3 percent lower at Rs 488.50.

Shares of Adani Gas rose as much as 6.7 percent, the most since June 03, to Rs 180.

Total SA is advancing on a deal to acquire a 30 percent stake in city gas distribution (CGD) company Adani Gas for over $800 million, or upwards of Rs 5,500 crore, Times of India reported quoting people directly aware of the matter.

“The deal, which is likely to be announced shortly, would help the infrastructure conglomerate to pare debt and bring in strategic expertise into an expanding business,” the people quoted above told ToI.

Trading volume was almost five times its 20-day average, according to Bloomberg data. The stock advanced 135 percent in the past 12 months, compared to a 12 percent gain in the Sensex.

Shares of Gruh Finance fell as much as 6.9 percent, the most in nearly a month to Rs 286.05.

About 3.08 crore shares or 4.2 percent equity of the company changed hands in multiple block deals, Bloomberg data showed.

While buyers and sellers were not known immediately, a mandate obtained by BloombergQuint stated that the Housing finance company—HDFC Ltd. had planned to sell 3.1 crore shares of Gruh Finance. The floor price was set at Rs 290 per share and the deal was valued at around Rs 900 crore.

Trading volume was more than 110 times its 20-day average, Bloomberg data showed. Of the shares traded at 11 percent we at the ask price and 83 percent at the bid.

Indian equity benchmarks are set to open higher, halting a two-day downtrend.

The S&P BSE Sensex jumped over 100 points to 39,837 during the pre-market trade at 9 a.m. and the NSE Nifty 50 traded hovered around 11,920.

Gruh Finance, Hexaware Technologies, Adani Gas and Kalpataru Power are the stocks which are in focus today.

Here's a lineup of all the major corporate meetings over the next few days.

Read: https://t.co/1uTTqbZgfX pic.twitter.com/ssCGat5ZsI

— BloombergQuint (@BloombergQuint) June 14, 2019

Futures And Options

June Futures

• Nifty futures closed at 11,928.3, premium of 14 points versus 10.5 points
• Nifty futures OI down 1 percent, sheds 1.1 lakh shares in OI
• Bank Nifty futures closed at 31,025, premium of 49 points versus 40 points
• Bank Nifty futures OI down 10 percent, sheds 2 lakh shares in OI

Options

• Nifty PCR at 1.46 Versus 1.32 (across all series)

Nifty Weekly Expiry June 20

• Max OI on call side at 12,000 (10.6 lakh shares), 11,900 (10.6 lakh shares)
• Max OI on put side at 11,800 (8.7 lakh shares), 11,900 (7.5 lakh shares)
• OI addition seen at 11,900C (+7 lakh shares), 11,000P (+6 lakh shares), 11,800P (+5.4 lakh shares)

Nifty Monthly Expiry June 27

• Max OI on call side at 12,000 (23.2 lakh shares)
• Max OI on put side at 11,500 (26.6 lakh shares)
• Max OI addition seen at 12,000C (+2 lakh shares), 11,900C (+2 lakh shares)

Stocks In F&O Ban

• In Ban: IDBI, Reliance Capital, Reliance Infra
• Out Of Ban: PC Jeweller

HSBC on HDFC

• Maintained ‘Buy’; hiked price target to Rs 2,500 from Rs 2,195.
• Default by a large mortgage player to result in easier liquidity for better managed players.
• HDFC is well positioned for potential market share gains in current environment.
• Slower growth in wholesale loans mitigates asset quality risks.

Citi on Persistent Systems

• Maintained ‘Sell’ with a price target of Rs 605.
• Company to focus on four key areas in BFSI, healthcare and industrial verticals.
• Management to give revenue growth guidance for 2019-20 in few months.
• Company to pursue M&A opportunities as part of its strategy.

Macquarie on Persistent Systems

• Maintained ‘Outperform’ with a price target of Rs 840.
• Sales and marketing overhaul to aid in growth in medium term.
• M&A focus to increase in near to medium term.
• Believe industry level growth will take at least a year.

UBS on Small Finance Banks

• See robust growth at reasonable valuations.
• Recent decline in wholesale rates positives for margins.
• Loan growth over FY19-22 expected to be at a CAGR of 33 percent.
• AU Small Finance: Maintained ‘Neutral’; hiked price target to Rs 760 from Rs 700.
• Equitas: Maintain Buy; hiked price target to Rs 190 from Rs 160.
• Ujjivan: Maintain Buy; hiked price target to Rs 450 from Rs 340.

PhillipCapital on Kalpataru Power

• Initiated ‘Buy’ with a price target of Rs 670.
• A play on multiple end markets and improving capital allocation.
• Channel checks suggest high probability of Domestic T&D orders going through.
• Focused approach to margins and working capital have yielded results.

• Cholamandalam Investment and Finance record date for share split at 5:1
• Eros International Media, Hindusthan National Glass & Industries to move into ASM Framework
• DCM Shriram to move out of short term ASM Framework
• Indiabulls Integrated Services, SORIL Infra Resources to move into short term ASM Framework
• DCM, IIFL Holdings price band revised to 20 percent
• Jammu & Kashmir Bank price band revised to 10 percent

• Olectra Greentech promoter Trinity Infraventure revoked pledge of 1.2 lakh shares on June 11
• JSW Steel promoters created pledge of 19.2 lakh shares from June 7-10
• Adani Ports promoter Adani Tradeline LLP revoked pledge of 8.44 lakh shares and promoter Gautam Adani released pledge of 1.28 crore shares from June 11-12

• Hexaware bought 100 percent stake in digital company Mobiquity Inc. for $182 million.
• Wockhardt received zero Form 483 observation from the U.S. FDA after it had carried inspection of Bioequivalence Centre in Aurangabad, during which Tamsulosin and Metoprolol drugs were audited.
• Indiabulls Housing Finance said that it has made timely payment of interest of NCDs whose due date falls on June 14.
• HDFC AMC said that additions have been made to earlier show cause notices in relation to the matter pertaining to the investments of Fixed Maturity Plans of HDFC Mutual Fund in debt instruments of Essel Group Companies. Company said in the press release that they are working with legal advisors and are in process of responding to the said show cause notices.
• Thyrocare Technologies: Board to decide on separating arm Nuclear Healthcare after valuation report obtained from a merchant banker. On May 18, the auditors had pointed the impairment of the aforesaid arm. Company’s Chairman and Managing Director Dr. A. Velumani offered to buy the entire shareholding of the this at current investment value of Rs 194.67 crore to ensure that no loss is done to public shareholders. Decision is awaited.
• Syndicate Bank to increase three-Month MCLR by 5 basis points to 8.5 percent with effect from June 15
• Union Bank executed an agreement to sell 10 lakh shares of National Payment Corporation of India for Rs 74 crore.
• EID Parry May sugar Sales down 53 percent at 0.24LMT versus 0.51LMT
• Intellect Design Arena sold its arm ‘SFL Properties’ for Rs 20.5 crore

No More Daytime Drinking for Metals Traders as LME Bans Alcohol