Stocks in Asia flirted with a record high on Thursday in muted trading after a listless U.S. session overnight offered little direction ahead of New Year holidays.
The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 10,559 as of 6:50 a.m.
Here’s a quick look at all that could influence equities on Thursday.
- U.S. stocks edged higher on Wednesday, amid trading thinned by a holiday-shortened week. The dollar weakened against most peers.
- 10- year Treasury yields headed for a fourth day of declines, while the dollar traded near month lows.
- The best year for U.S. equities since 2013 is ending with a bit of a whimper after stocks soared in the week before the holidays as Republicans passed a major overhaul of the tax code.
- Bitcoin fell below $15,000 after its biggest gain in two weeks took it above $16,000.
- Stocks in Europe ended slightly higher following a mixed session in Asia.
- The euro and pound gained, while bonds in Europe were mixed.
- Japan’s Topix index was little changed in early trade, as was the Nikkei 225 Stock Average
- Contracts on Hong Kong’s Hang Seng Index were also little changed.
- Futures on the S&P 500 Index were little changed.
Here are some of the key events scheduled for this week:
- U.S. trade figures are due Thursday.
- Egypt decides on interest rates.
- Brent crude snapped six-day winning streak; ended lower at $66.44/barrel, down 0.9 percent
- West Texas Intermediate crude was little changed at $59.61 a barrel.
- Gold futures were little changed at $1,287.55 an ounce.
- LME copper futures advanced 1.6 percent to $7,240.00 per metric ton Wednesday, reaching the highest in about four years.
- Sugar ended near three-week high at 14.9 cents per pound; up 1.6 percent.
- Steel trades lower; down 1.4 percent.
- Aluminium trades higher for second day; up 1.3 percent.
- Zinc trades higher for second day; up 0.1 percent.
- Rubber trades lower; down 0.5 percent.
Stocks To Watch
- Star Cement received Rs 158.82 crore as capital investment subsidy from Central government.
- Quess Corp acquired Master staffing solutions and 60 percent stake in Golden Star Facilities and Service.
- Riddhi Siddhi board approved proposal to de-list shares of the company. Promoters set the offer floor price at Rs 510 apiece.
- SEBI asked Axis Bank to conduct inquiry on leak of unpublished price sensitive financial information within three months.
- Kolte Patil’s Pune township signed Rs 193 crore agreement with KKR.
- SBI board approved raising up to Rs 8,000 crore through tier-1 bonds by March.
- United Bank raised Rs 100 crore through tier-1 bonds.
- Bajaj Auto: Nirav Trust sold 16.69 lakh shares or 0.6 percent equity at Rs 3351.40 each.
- JHS Svendgaard: Sixth Sense India Opportunities-I sold 3.16 lakh shares or 0.7 percent equity at Rs 74.06 each.
- Bajaj Finserv: Anant Bajaj Trust sold 9.19 lakh shares or 0.6 percent equity at Rs 5372.14 each.
- Sintex Plastics: Hypnos Fund sold 30 lakh shares or 0.5 percent equity at Rs 81.01 each.
- Madhu Bajaj bought 7.70 lakh shares or 0.8 percent equity at Rs 475 each.
- Neelima Bajaj Swamy bought 7.90 lakh shares or 0.8 percent equity at Rs 475 each.
- Anant Bajaj Trust sold 21.80 lakh shares or 2.1 percent equity at Rs 475 each.
- Nirav Trust bought 21.99 lakh shares or 2 percent equity at Rs 3012.40 each.
- Anant Bajaj Trust bought 21.65 lakh shares or 1.9 percent equity at Rs 2963.76 each.
- Kumud Bajaj sold 12.12 lakh shares or 1.1 percent equity at Rs 2987.50 each.
- Madhu Bajaj sold 18.97 lakh shares or 1.7 percent equity at Rs 2987.50 each.
- Kuber India Fund bought 6 lakh shares or 2.8 percent equity at Rs 324 each.
- Promoter Priyanka Thakkar sold 8 lakh shares or 3.8 percent equity at Rs 324.23 each.
Who’s Meeting Whom?
- General Insurance Corp met Edelweiss Financial Services on Dec. 27.
Top Gainers And Losers
- Nifty December futures closed trade at 10500, premium of 9.5 points versus discount of discount of 5 points.
- Nifty January futures trading at 10,533, premium of 42 points versus premium of 37 points.
- Across all series: Nifty open interest down 1 percent; Bank Nifty open interest up 0.4 percent.
- Nifty rollover at 51 percent, Bank Nifty rollover at 44 percent.
- India VIX ended at 12.4, up 3.6 percent.
- Max open interest for Dec. series at 10,600 Call (open interest at 54.5 lakh, up 21 percent).
- Max open interest for Dec. series at 10,000 Put (open interest at 64.4 lakh, down 9 percent).
- In ban: Balrampur Chini, DHFL, DLF, GMR Infra, HDIL, IFCI, Jet Airways, Jain Irrigation, JP Associates, Reliance Communications, Reliance Capital, TV18 Broadcast, Wockhardt.
- New in ban: Reliance Communications, TV18 Broadcast.
Only intraday positions can be taken in stocks which are in F&O ban. In case of a rollover of these intraday positions, there is a penalty.
- Nifty PCR unchanged at 1.59.
- Nifty Bank PCR at 0.94 from 1.17.
Stocks Seeing High Open Interest Change
Motilal Oswal On Mahindra CIE Automotive
- Initiated ‘Buy’ rating with target price of Rs 297, implying a potential upside of 19 percent from yesterday’s close.
- Mahindra CIE Automotive is all primed for a growth phase after three years of consolidation.
- Mahindra CIE Automotive's India (ex BFL) business is focused on fast-growing/recovering segments.
- A strong, focused and disciplined parent, CIE has instilled financial discipline.
- The Bill Forge (BFL) acquisition is an excellent strategic fit for Mahindra CIE Automotive.
- Estimate consolidated revenue to grow at a compounded rate of about 8 percent by 2019.
- Expect Ebitda margin expansion of about 260 basis points to around 15.1 percent by 2019.
- Strong earnings growth, limited capex (5-6 percent of sales) to drive improvement in capital efficiencies.
Motilal Oswal On NTPC
- Maintained ‘Buy’ rating with a price target of Rs 211, implying a potential upside of 19 percent.
- Revised norms provide relief from low PLF inefficiencies.
- Three plants had PLF of less than 75 percent in the financial year-ended March 2014, which increased to five plants in the previous financial year.
- The revised regulatory norms can compensate earnings by about 2 percent, visible in September quarter results.
- Swapping/flexible coal linkages also a positive since this leads to reduction in landed cost of coal.
- Expect earnings to grow at a compounded rate of 14 percent over the financial years through March 2020, driven by strong capitalization.
- Stock could re-rate as return on equity could get a boost from capitalization outpacing the capex.
Ventura On Hyderabad Industries
- Maintained ‘Buy’ rating with a price target of Rs 1700, implying a potential upside of 21 percent from yesterday’s close.
- Fiber cement roofing sheets is a cash cow for Hyderabad Industries.
- Management to launch new product in fiber cement roof segments by March.
- Hyderabad Industries is planning a capacity expansion in the pipes & fittings segment.
- See higher contribution from low costing AAC blocks, boards and panels segment.
- Expect revenue, operating income and net profit to grow at a compounded rate of 12 percent, 21 percent and 22 percent in three years.
Goldman Sachs On Sun Pharma
- Maintained ‘Buy’ rating and price target at Rs 600, implying a potential upside of 4 percent from yesterday’s close.
- NDA filing of OTX-101 for Dry Eye Disease in line with expectation.
- Expect an NDA approval for OTX-101 over the next 12 months.
- Expect commercialization of OTX drug to follow in the financial year-ending March 2020.
- Potential generic entry for Restasis could reduce the overall market potential for the drug.
- Delayed Halol plant resolution timeline, US price erosion intensity a key risk.