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All You Need To Know Going Into Trade On June 28

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Asian stocks fell Thursday and the yen pushed higher as traders remained skeptical about the Trump administration’s announcement of less harsh measures on Chinese investments.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded 0.3 percent lower at 10,637.50 as of 6:30 a.m.

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

U.S. Market Check

  • U.S. stocks fell to the lowest level since May and Treasuries rallied amid renewed concern that the Trump administration will crack down on Chinese investment.
  • The yield on 10-year Treasuries held at 2.83 percent after falling five basis points.

Europe Check

  • European stocks ended higher aided by chemical and oil shares, as some buyers weigh U.S. demands for allies to end all imports of Iranian oil by Nov. 4.

Asian Cues

  • Japan’s Topix index fell 0.6 percent.
  • Australia’s S&P/ASX 200 Index lost 0.2 percent.
  • South Korea’s Kospi index declined 0.6 percent.
  • Futures on Hong Kong’s Hang Seng advanced 0.5 percent.
  • S&P 500 futures rose 0.1 percent. The S&P 500 fell 0.9 percent.

Also Read: As China Markets Plunge, Here's How Vital Signs Look Versus 2015

Commodity Cues

  • Gold gained 0.1 percent to $1,253.66 an ounce.
  • West Texas Intermediate crude declined 0.4 percent to $72.50 a barrel in New York after rallying 3.2 percent.
  • Brent crude traded 0.1 percent lower at $77.58 a barrel.

Shanghai Exchange

  • Steel traded higher; up 2.1 percent.
  • Aluminium traded higher for second day; up 0.5 percent.
  • Zinc traded higher for second consecutive session; up 2.4 percent.
  • Copper extended gains for the second day; up 0.5 percent.
  • Rubber logs second day of gains; up 1.4 percent.

Stories You Might Have Missed

  • Harley is enduring a third day of attacks on Twitter by Donald Trump.
  • Is it too early for fake meat?
  • The conspiracy to put Maduro on trial was thwarted last month, and several dozen secret arrests followed.
  • Tesla CEO reacts to downbeat Model 3 report in internal email.
  • America’s airspace is a finite resource, and the growth of commercial launches like SpaceX has airlines worried.
  • Apple, Samsung declare peace in biggest modern tech patent fight
  • China's push for more babies is proving costly.
  • Facebook payout in Oculus copyright spat cut to $250 Million.
  • Vietnam forces Facebook and Google to pick privacy or growth.
  • Public will get to see Da Vinci masterpiece that fetched $450 million.
  • An alpine Bitcoin bunker wants to be your next Swiss Bank account.
  • Welcome to Waltonville, Where the world’s richest family reigns.
  • Madison Square Garden explores spinoff of Knicks, Rangers teams.
  • Defending champion Germany ruled out of FIFA World Cup.

Here are some key events coming up this week:

  • Indonesia monetary policy decision on Thursday.
  • U.S. personal spending probably increased in May for a third month, economists forecast ahead of Friday’s data.
  • China manufacturing and non-manufacturing PMI are due on Saturday.

Stocks To Watch

  • Thyssenkrupp, Tata Steel are said closing in on JV Deal (Reuters).
  • Fortis Healthcare to extend deadline for submission of bids.
  • Bank of Maharashtra clarified exposure of Rs 96.52 crore to DS Kulkarni.
  • Karnataka Bank hiked deposit interest rates by 10 basis points to 7.35 percent across various tenors.
  • Mercator arm gets mining lease in Gujarat for 20 years; 23 million barrels of oil to be exploited.
  • Talwalkars Lifestyles to be listed on both exchanges from June 29.
  • Exide Industries entered into a joint venture with Leclanche SA to build lithium-ion batteries.
  • GMR Infra declared as selected bidder for development of a commercial port located at one of strategic nodes of the Vizag. Port will have initial capacity of 16 MT.

Bulk Deals

  • Tasty Bite Eatables: Jupiter India acquired 30,000 shares or 1.17 percent equity at Rs 7485 each.

Zee Media Corporation

  • Promoter Arm Infra and Utilities Pvt sold 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.
  • JSGG Infra Developers LLP acquired 48.36 lakh shares or 1.03 percent equity at Rs 26.1 each.

Indian ADRs

Who’s Meeting Whom

  • Eicher Motors to meet White Oak on June 28 and Manulife Asset Management on June 29.
  • Endurance Technologies to meet Axis Mutual Fund, Motilal Oswal Mutual Fund and other investors on June 28.
  • Aster DM Healthcare to meet investors on June 29.

Insider Trades

  • Cosmo Films promoter acquired 15,000 shares on from June 25-26.
  • Visaka Industries promoter group acquired 1,700 shares on June 25.
  • Man Industries promoter Rameshchandra Mansukhani acquired 17,000 shares on June 26.
  • Trident Ltd promoter acquired 39,000 shares on June 26.

(As reported on June 27)

Trading Tweaks

  • Nila Infrastructures circuit filter revised to 20 percent.
  • Jyothy Laboratories Limited ex date for 1:1 bonus.
  • Prabhat Telecoms (India) Limited ex date for 1:5 bonus.
  • Gujarat Automotive Gears Ltd. name changed to HIM Teknoforge Ltd.


  • Varroc Engineering IPO day 3. Issue subscribed 1.02 times on day 2.


  • Indian rupee falls to 19-month low on oil scare, trade war worries. It closed at 68.63/$ versus 68.26/$ on Tuesday.

F&O Cues

  • Nifty futures end trade at 10673, premium of 2 points.
  • Nifty futures add 8.8 lakh shares in open interest.
  • Nifty Bank futures shed 0.9 lakh shares in open interest.
  • Max open interest for June series at 10,800 Call, open interest at 55.7 lakh.
  • Max open interest for June series at 10,600 Put, open interest at 31.6 lakh.

F&O Ban

  • In ban: DHFL, JP Assoc, Infibeam, IDBI, Wockhardt, jain Irrigation
  • Out of ban: CG Power

Only intraday positions can be taken in stocks which are in F&O ban. There is a penalty in case of a rollover of these intraday positions.

Put-Call Ratio

  • Nifty 1.33 from 1.53
  • Nifty Bank 0.76 from 0.80

Fund Flows

Brokerage Radar

Goldman Sachs on Fortis Healthcare

  • March quarter sales/Ebitda were below expectations.
  • Weakness predominantly driven by Hospital business, which saw utilisation decline.
  • Focus now shifts to public bidding process.
  • Audited results likely in upcoming days.

CLSA on Lemon Tree

  • Maintained ‘Buy’ with a price target of Rs 90.
  • Improving industry dynamics, operational performance to improve returns.
  • Moving towards an asset-light model, as brand gets established in mid-priced segment.
  • Highest demand-supply mismatch in mid-priced segment to lead to sustained price hikes.

CLSA on Crompton Greaves Consumer

  • Maintained ‘Buy’ with a price target of Rs 305.
  • New category additions, increasing distribution reach to drive growth.
  • Product innovation and new launches remains key focus area.
  • Shift to LED to continue to drive growth in lighting segment.

CLSA on Future Lifestyle

  • Maintained ‘Buy’ with a price target of Rs 535.
  • Robust expansion plans for Brand Factory and Power brands to drive growth.
  • Central stores expected to capture higher share of brands retail in India.
  • L Catterton Asia to acquire approximately 10 percent stake through a mix of preferential issue and secondary purchase.

Kotak on Colgate

  • Maintained ‘Add’ with a price target of Rs 1,300.
  • Company is not regaining any market share lost to Patanjali so far.
  • Underlying category volume growth is inching up but at a slow pace.
  • Price hikes to take care of input cost inflation trends.
  • Expect higher advertising investment on flagship brand in naturals segment.

HSBC on HCL Tech

  • Upgraded to ‘Buy’ from ‘Hold’; raised price target to Rs 1,065 from Rs 1,050.
  • HCLT is set to grow at a slower pace in 2018-19 compared to top four.
  • Discount is now too extreme relative to growth differentials to peers.
  • HCL is the cheapest stock in the India IT sector across large and mid caps.
  • Investor concerned on long-term outlook for Infra services and over recent purchase.

Motilal Oswal on Tata Communications

  • Maintained ‘Buy’ with a price target of Rs 730.
  • Strong order funnel to drive growth.
  • Expect earnings to start improving from July.
  • New growth ventures – ‘innovation business’ to remain slow starter.
  • ATM business revenue/Ebitda to improve.

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