All You Need To Know Going In To Trade On January 5
Asian markets are declining at the start of trade today as investors chose to book profits from a record breaking rally. Rising concerns over coronavirus cases is dampening sentiment.
Benchmark indices in Japan, Australia and South Korea are declining. The Cboe Volatility Index surged the most since October. The pound held losses after the United Kingdom entered its third lockdown.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.65% to 14,085 as of 6:55 a.m.
Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are currently trading little changed. The index ended 1.2% lower on Tuesday, making it the worst start to the year since 2016.
- The runoff elections in Georgia, which will determine whether Democrats take effective control of the Congress are also impacting sentiment.
- Daily coronavirus cases in the U.S. jumped to nearly 3 lakh, following the New Year holiday.
- Yields on the 10-year treasury stood at 0.92%.
- West Texas Intermediate crude fell 0.5% to $47.38 per barrel. Oil prices fell after OPEC+ talks were unexpectedly suspended after majority of members including Saudi Arabia opposed Russia's proposal for a supply hike in February.
- Bitcoin fell as much as 17% overnight before steadying.
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Stocks To Watch
- HDFC: Individual loan business continues to see improvement during the October-December period. For the nine months ending December 31, 2020, individual loan disbursements stood at 86% of the same period last year. Disbursement growth at 26%. Assigned loans worth Rs 7,076 crore to HDFC Bank Vs Rs 4,258 crore. Gross income from dividend during the quarter at Rs 2 crore from Rs 4 crore. Profit on sale of investment at Rs 157 crore Vs nil. Current shareholding in HDFC Life at 49.99%.
- Bajaj Finance: The company's assets under management rose 4.66% quarter-on-quarter to Rs 1.43 lakh crore in October-December quarter, however, it contracted 1% year-on-year. The company added 6 million new loans in Q3 as compared with 7.7 million a year ago. Further the total deposits of the NBFC rose to Rs 23,800 crore in Q3, up 17% year-on-year.
- Sun Pharma: Has initiated Phase 2 clinical trial for SCD-044 in patients with moderate to severe plaque psoriasis. The Phase 2 study is a randomized, double-blind, placebo-controlled study to assess the efficacy and safety of SCD-044 in the treatment of moderate to severe plaque psoriasis. The study will enroll approximately 240 subjects and topline results are expected in 2022.
- KNR Construction : Has received orders worth of Rs 603.63 crore from Project Director, Highways (FAC), Chennai Kanyakumari Industrial Corridor Project. The company will also be responsible for the maintenance of the entire project stretch design length of 109.273 km for 7 years on Engineering, Procurement and Construction (EPC) Mode. The project will be completed within 39 months from the appointed date.
- National Fertilizers: Has achieved highest ever production of 9.99 lakh Million Tonnes Urea in the third quarter of FY21. Nangal and Panipat plants achieve best ever Urea production. Produced highest ever quantity of 4,981 MT of Bentonite Sulphur at Panipat plant.
- NBCC (India): Awarded the work for construction of Balance works/rectification of defects for the works of HEART BEAT - 2 on as is where Basis at Heartbeat City, Noida, pertaining to Amrapali group of companies on Engineering, Procurement and Construction basis to Gaursons Hi-Tech Infrastructure for a total contract value of Rs 351 crore.
- MOIL: Resources base of 7.65 million tonnes of Manganese Ore established in Gujarat under MoU with GMDC. Mineral Exploration Corporation Limited completed exploratory work in first phase by geophysical prospecting and core drilling over 8,200 metres. MECL's report suggests availability of the good grade of ore having potential and viability for manganese mining. MOIL is now preparing Techno Economic Feasibility Report based on the first phase report of MECL for underground mining operations in the long run. As the property seems to be viable, a JVC will be formed between MOIL and GMDC with shareholding of 51% and 49% respectively, in terms of the MoU already signed.
- Glenmark Pharmaceuticals: Has issued a notice of optional redemption to the holders of U.S. $200 million 4.5% Senior Notes due 2021 listed on the Singapore Exchange Securities Trading Limited. The company has elected to redeem $10,000,000 aggregate principal amount outstanding of its 4.5% Senior Notes due 2021. The redemption price for the Redeemed Notes will be 101.125% of the outstanding principal amount of the Redeemed Notes, plus accrued and unpaid interest thereon and additional amounts.
- Edelweiss Financial Services: The Rs 200 crore public NCD issue of the company was oversubscribed. The issue successfully mobilised over Rs 240 crore with the base issue as well as the Green Shoe option fully subscribed. The retail category was oversubscribed 2.27 times with a total collection of Rs 181 crore from 10,647 applications.
- Jindal Saw: A meeting of Board of Directors will be held on January 11, for consideration of the proposal for issuance of NCDs on private placement basis.
- IIFL Securities: IIFL Insurance Brokers Limited, a wholly-owned subsidiary of the company, has received permission from IRDA for undertaking insurance e-commerce activities in lndia through Insurance Self Networking Platform.
Pledge Share Details
- Steel Strips Wheels: Promoter Chandigarh Developers revoked pledge of 84,000 shares on January 1.
- India Cements: Promoters Prince Holdings (Madras) and Anna Investments revoked pledge of 90 lakh shares on December 31.
As Reported On January 4.
- Filatex India: Chetan Rasiklal Shah bought 12 lakh shares (0.54%) at Rs 47.68 per share and sold 11.40 lakh shares (0.52%) at Rs 50.3 per share. Chaturveda Advisory Services sold 62.20 lakh shares (2.82%) at Rs 47.62 per share.
- Biofil Chemicals & Pharma: Alpha Leon Enterprises sold 1.21 lakh shares (0.74%) at Rs 192.15 per share.
- Zen Technologies: Triton Trading Company bought 4.03 lakh shares (0.51%) at Rs 94.76 per share and sold 70,000 shares at Rs 98.27 per share.
- Ex-Date Interim Dividend: Gateway Distriparks, Abans Enterprises.
- Price Band Revised From 20% To 10%: TIPS Industries
- Move Out Of Short-term ASM Framework: Datamatics Global Services, L&T Technology Services, Kuantum Papers.
- Move In To ASM Framework: Jaiprakash Associates
- Bajaj Auto: Promoter Rajivnayan Bajaj acquired 15,000 shares on December 31.
- ISGEC Heavy Engineering: Promoter The Yamuna Syndicate acquired 12,331 shares between December 30-31.
As Reported On January 4.
Money Market Update:
- The rupee cooled off from the day's high but ended stronger at 73 against the U.S. Dollar, as compared to Friday's close of 73.11.
- Nifty January futures end at 14,173; premium of 41 points
- Nifty January futures add 6.9% and 8.4 lakh shares in Open Interest
- Nifty Bank January futures end at 31,371; premium of 159 points
- Nifty Bank January futures add 9.8% and 1.4 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.6
- No stocks in the F&O ban
Nifty: January 7 Expiry
- Maximum Open Interest on Call side at 14,200 strike (32.7 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (35.2 lakh shares)
- Active Options: 14,000 Call (-10.9 lakh shares) and 14,100 Put (+14.3 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 14,000 strike (21.1 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (24.8 lakh shares)