All You Need To Know Going Into Trade On Dec. 13

Global stocks hit a record high for the first time since early 2018 and bond yields climbed after news that President Donald Trump signed off on a trade deal with China averting tariffs set for Sunday.

Shares jumped in Tokyo and Seoul with more modest gains seen in Sydney. Futures on the S&P 500 Index rose less than 0.5 percent. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.32 percent to 12,062 as of 7 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.

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

• The S&P 500 rallied following a Bloomberg report that American officials had reached a deal in principle that only needed Trump’s approval. Shortly after U.S. markets closed, news broke that the president had signed off on the agreement to avert tariffs set for Dec. 15.
• The pound jumped by the most since 2017 on signs Boris Johnson’s Conservative Party was on course to secure a strong majority in the U.K. election, raising hopes of an end to the Brexit deadlock.
• Oil extended its second weekly advance. West Texas Intermediate crude climbed 0.6 percent to $59.52 a barrel.

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Indian ADRs

Stocks To Watch

• Tata Motors: Tata Sons increased their stake in the company to 39.52 percent from 35.3 percent. Total promoter stake in the company increased to 42.39 percent from 38.37 percent.
• Navin Fluorine is planning a capex programme at Dahej with an outlay of over Rs 450 crore over the next three to four years. The board has initially approved funding of Rs 90 crore for greenfield projects at Dahej and the funding will be done via internal accruals.
• Biocon & Equillium Inc. expand exclusive licensing agreement for Itolizumab to include Australia and New Zealand.
• Allahabad Bank: Gross non-profit asset divergence was at Rs 67 crore and Provisioning divergence was seen at Rs 453 crore during 2018-19. Besides, the bank has reduced MCLR by five basis points across various tenors with effect from Dec. 14. One-year MCLR at 8.3 percent.

• Simplex Infra: CARE Ratings revised its ratings for banking facilities and NCDs aggregating to Rs 10,995 crore to ‘Default (CARE D)‘. The revision in the ratings of Simplex Infrastructures was due to the recent instance of delay by the company in repayment of non-convertible debenture after the put option was exercised by one of the investors as well as overdrawals reported by few bankers. “The liquidity profile of the company continues to be under stress on account of continued elongation in already high collection period and high working capital cycle,” the rating agency said in a statement.
• Raymond has allotted equity and preference shares worth Rs 350 crore to promoter JK Investo Trade. Board has also approved the closure of company’s Dubai arm.
• Allcargo Logistics has signed pact for slump sale of some assets for a consideration of Rs 108 crore.
• VIP Industries: Jogendra Sethi resigned from the post chief financial officer with effect from Jan. 9.
• Inox Leisure has commenced commercial operations of a theatre in Gorakhpur.
• Infosys’ arm EdgeVerve and Idego announced their partnership to deliver digital solutions across Latin America.
• Wipro received multi-year contract from Olympus.
• Dish TV: Board re-appointed Jawahar Lal Goel as managing director till March 2020. After this, he will continue to be the chairman of the company to comply with SEBI norms.
• Ashok Leyland appointed Vipin Sondhi as the chief executive officer and managing director of the company till December 2024, subject to the approval of shareholders.

DGCA November Data

• Aviation industry passenger growth (domestic) stood at 11.18 percent (month-on-month).
• IndiGo’s market share increased to 47.5 percent.
• SpiceJet’s market share dropped to 16.1 percent.
• Air India’s market share dropped to 12.1 percent.

Brokerage Radar

UBS on Syngene

• Initiated ‘Buy’ with a price target at Rs 415.
• Strong domestic leadership with potential to gain market share from global peers.
• UBS Evidence Lab indicates industry tailwinds and a changing CRO landscape.
• Syngene's investment strategy not priced in by market.

HSBC on Cipla

• Maintained ‘Buy’; hiked price target to Rs 562 from Rs 555.
• U.S. filing of IV tramadol boosts specialty efforts in the institutional specialty space.
• Raise target on inclusion of NPV of Rs 7 for IV tramadol.
• Target market is significant for IV tramadol.

Goldman Sachs on Aviation

• November Air traffic data shows passenger growth taking off; Reiterate Buy on IndiGo, SpiceJet.
• November data shows industry returning to double digit growth for the first time since Dec. 2018.
• Robust air traffic data would help allay investor concerns regarding weak topline growth in the third quarter.

Trading Tweaks

• Trident ex-date for face value split: from Rs 10 to Rs 1 per share.
• SPML Infra, Urja Global to move into short term ASM Framework.
• Mahamaya Steel Industries, Jaiprakash Associates, Jaiprakash Power Ventures, Adhunik Industries to move out of short term ASM Framework.
• SPML Infra, BF Utilities, Camlin Fine Sciences price band revised to 5 percent.

Who’s Meeting Whom

• Solar Industries to meet Max Life Insurance, Tata MF and SBI MF on Dec. 13.
• Sundram Fasteners to meet TATA MF on Dec. 13.
• Greaves Cotton to meet Saif Partners on Dec. 13.

Insider Trading

• Electrosteel Castings promoter Electrocast Sales acquired 2.5 lakh shares from Dec. 9-10.
• Harrisons Malayalam promoter Vaayu Udaan Aircraft acquired 1 lakh shares from Dec. 9-10.
• Dr. Pathlabs promoter & director Vandana Lal sold 88,000 shares from Dec. 9-10.

Money Market Update

• The rupee closed at 70.83/$ versus 70.84/$ on Wednesday.

F&O Cues

Index Futures

• Nifty December futures closed at 12,028.6, premium of 56.8 points versus 28 points.
• Nifty December futures series open interest up 4 percent, adds 4.7 lakh shares in open interest.
• Nifty Bank December futures closed at 31,717, premium of 51.6 points versus 57.5 points.
• Nifty Bank December futures series open interest up 5 percent, adds 68.5 lakh shares in open interest.

Options

• Nifty PCR at 1.54 versus 1.20 (across all series).

Nifty Weekly Expiry: Dec. 19

• Max open interest on call side at 12,000 (11.3 lakh shares).
• Max open interest on put side at 11,900 (14 lakh).
• Open interest addition seen in 11,900P (+9.7 lakh shares), 12,000P (+8.4 lakh shares), 12,000C (+6.6 lakh shares).

Nifty Monthly Expiry: Dec. 26

• Max open interest on call side at 12,000 (27.9 lakh shares).
• Max open interest on put side at 11.500 (35.3 lakh shares).