All You Need To Know Going Into Trade On Dec. 17
Stocks in Asia opened mixed, following two weeks of losses driven by a backdrop of uncertain trade conditions and signs some key economies are slowing. Treasuries steadied just below 2.90 percent.
U.S. equity futures edged up with stocks in Japan, while Australian shares slipped after a rough end to last week. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.31 percent to 10,864 as of 6:58 a.m.
Short on time? Well, then listen to this podcast for a quick summary of the article!
Here’s a quick look at all that could influence equities today.
U.S. Market Check
- U.S. stocks closed at their lowest level since April as mounting concern over the health of the global economy overshadowed positive trade developments and signs of strength from the American consumer.
- Japan’s Topix index added 0.1 percent as of 9:05 a.m. in Tokyo.
- FTSE China A50 futures dipped 0.1 percent.
- Hang Seng Index futures added 0.5 percent.
- Australia’s S&P/ASX 200 Index slid 0.2 percent.
- Futures on the S&P 500 rose less than 0.1 percent. The S&P 500 Index fell 1.9 percent on Friday.
- The Federal Reserve holds its final policy meeting of 2018 on Tuesday and Wednesday. The rate decision will be followed by a press conference with Chairman Jerome Powell.
- The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda.
- A partial U.S. government shutdown could start this week if lawmakers and President Trump fail to resolve how much money to allocate for Trump’s wall along the Mexican border.
- West Texas Intermediate crude added less than 0.1 percent to $51.20 a barrel.
- Gold slipped 0.1 percent to $1,237.72 an ounce.
Also read: Qatar Buys Mexican Oil Stakes From Eni
Stocks To Watch
- Fortis Healthcare: Says Supreme Court order does not impact the preferential allotment made to IHH. Order to have a bearing on proposed open offer which is scheduled to be launched from Dec. 18 to Jan. 1.
- Solara Active Pharma Sciences’ research centre at Chennai receives zero observations on Form 483 from U.S. FDA.
- Larsen & Toubro: MMRDA terminates contract with joint venture of company and SCOMI Engineering for their failure to fulfill obligations. The authority will encash Rs 200 crore bank guarantee given by the joint venture company. Monorail services to continue as per schedule.
- Wipro’s arm ‘Topcoder’ gets into strategic partnership with Denmark based Saxo Bank to give digital solutions.
- Techno Electric & Engineering record date for buyback set on Jan. 3
- Future Consumer sells its stake in Amar Chitra Katha for Rs 44.4 crore. The latter has ceased to be the subsidiary of Future Consumer.
- Huhtamaki PPL withdraws its appeal before National Green Tribunal, with liberty to file a fresh appeal, if required, depending on Maharashtra Pollution Control Board’s review. On Nov. 20 company’s Thane plant had received a closure notice by the PCB under various environmental laws.
- Jet Airways: SBI orders forensic audit of Jet’s books for period between April 2014 and March 2018. In another development, a source told PTI, that Nikos Kardassis who was in an advisory role at the airline has quit.
- Vedanta: NGT has set aside the Tamil Nadu’s government order of closing its copper smelting plant. Tribunal found the order to be “unsustainable” and asked the state government to pass renewed offer of consent within 3 weeks.
- Bharti Airtel board to meet on Dec. 20 to consider various fund-raising options
- Andhra Bank: Increases its MCLR by 5 basis points across various tenors with effect from Dec. 15. One-month MCLR at 8.2 percent and six-month MCLR at 8.6 percent.
- Cadila Healthcare received U.S. FDA approval to market Albendazole tablets. This shall be manufactured at SEZ, Ahmedabad.
- Reliance Industries says Reliance Jio to not be impacted by TDSAT’s ruling against TRAI’s predatory pricing order.
- Datamatics Global Services is set to demerge and separately list Lumina Datamatics.
- Canara Bank of India’s board to hold meeting on Dec. 19 for raising funds via additional Tier I Bonds
- Infosys to divest stake in CloudEndure for $15.3 million or Rs 110 crore. The company in 2015 picked up minority stake in CloudEndure for $4 million.
Balarampur Chini Mills management meet takeaways
- Company expects the cost of sugar to be around Rs 31 per kg at EBIT level for the 2018-2019 season.
- They expect an improvement in sugar recovery of the industry, from 60 percent to 70 percent on year on year basis, for the season.
- For the Ethanol segment, from Dec. 2018 to November 2019 the company has supplied 110 million liters of ethanol to oil marketing companies.
- The sugar company’s new distillery will have capacity of 160 kilo litres per day and should commence operations by end of 2019.
- The management expects to sell 680-700 million units of power in financial year 2019 as against 570 million units in the last financial year.
Diesel Prices Hiked For First Time In 63 Days
- Petrol prices hiked by 19 paise to Rs 70.53/litre in Delhi.
- Diesel prices hiked by 9 paise to Rs 64.47/litre in Delhi.
Central Bank of India sold 11.7 lakh shares (0.7 percent) at Rs 9.39 each.
Who’s Meeting Whom
- Mahindra & Mahindra to meet RARE Enterprises on Dec. 18.
- Eicher Motors to meet Think Invest on Dec. 17.
- Crompton Greaves to meet Motilal Oswal AMC, ASK Investment Managers and other investors on Dec. 17.
- Shriram City Union Finance to meet TenCore Partners, HDFC AMC and Fidelity Investments from Dec. 17-19.
- Mastek promoter Ketan Mehta sold 1.25 lakh shares on Dec. 13.
- Rupee closed at 71.89/$ on Friday from 71.69/$ on Thursday.
- Nifty December futures closed trading at 10,820, with a premium of 15 points.
- Maximum open interest (OI) for December series call at 11,000 strike price. (Open interest at 50.4 lakh shares)
- Maximum open interest for December series put at 10,500 strike price. (Open interest at 40.3 lakh shares)
Stocks In F&O Ban
- Adani Enterprises, Adani Power, Jet Airways and Reliance Capital
- Nifty PCR at 1.53 from 1.51
- Nifty Bank PCR at 1.21 from 1.25
Motilal Oswal on Marico
- Maintain ‘Buy’ with target price of Rs 465
- New products traction picking up; to boost medium-term earnings growth prospects
- Positives: Benign raw material prices over next 18-24 months, strong volume performance
- Believe there is further room for stock price appreciation
Edelweiss on NMDC
- Maintain Buy; cut target price to Rs 130 from Rs 180
- Two successive price cuts result in rollback to July levels
- Factoring in lower volume on continued outage in Donimalai
- Cut FY19/20 volume estimates by 3 percent-5 percent, which in turn reduces Ebitda estimates by 7 percent-9 percent
Morgan Stanley on Vedanta
- Maintain Equal-weight with target price of Rs 235
- Restart of copper plant is positive for stock in near term
- Restart to add 4 percent and 8 percent upside to FY20 Ebitda and earnings estimates
- Restart to add 8 percent (Rs 19/share) upside risk to our price target