All You Need To Know Going Into Trade On Dec. 16

Asian stocks started the week mixed after a partial U.S.-China trade deal yielded few details, leaving investors wondering where to from here.

Shares were little changed in Tokyo and Seoul and climbed in Sydney. U.S. futures edged higher. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.16 percent to 12,130.50 as of 6:50 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.

• U.S. stocks ended a tumultuous session higher on Friday with major benchmarks notching records as investors attempted to assess the contours of a partial deal reached between the U.S. and China.
• Oil fell after ending 1.6 percent higher on Friday. The Asian crude benchmark—Brent crude—fell 0.34 percent to $65 per barrel today.

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Economic Datawatch

• India to release wholesale price inflation data for November at noon. Estimate 0.82 percent.
• China’s industrial production and retail-sales data will be on focus Monday -- they are expected to accelerate on a year-on-year basis.

Indian ADRs

Stocks To Watch

• Sun Pharmaceutical Industries received eight Form 483 observations by the U.S. FDA for its Halol facility in Gujarat. The GMP inspection was conducted from Dec. 3-13.
• AU Small Finance Bank has completed Temasek’s investment in 4.8 percent stake in the Bank. The lender said in a media statement that the Temasek Group has invested Rs 525 crore towards conversion of 1.01 crore warrants. Post the transaction, The bank’s net worth would increase by more than 4000 crore. Besides, the company will seek RBI’s approval to appoint part time chairman, who will be appointed from March 30, 2020.
• Reliance Industries acquired 51.78 percent stake in Asteria Aerospace for Rs 23.12 crore. The company has proposed to make a further investment of up to Rs 125 crore which will increase the stake to 87.3 percent and the investment is expected to be completed by December 2021.
• Ashiana Housing said that the company has booked 244 units in its Project in Jamshedpur.
• Reliance Capital defaults on interest/principal obligation on NCDs due on Dec 13.

• Hester Biosciences to consider raising capital via QIP or preference shares on Dec. 18.
• Aster DM Healthcare plans to close the operations of its loss-making clinics in Philippines by Dec. 31.
• Granules India has entered into an agreement to sell 3.3 crore equity shares in its China JV with Biocause Pharma for a consideration of RMB 109 million or Rs 110.56 crore.
• SBI: CCI has approved acquisition of 9.99 percent stake in SBI General Insurance by Warburg Pincus’ arm Honey Wheat.
• Edelweiss Financial Services: CCI has approved Sanaka Growth’s investment in Edelweiss Securities up to $44 million.

• United Bank: has reduced MCLR across various tenors with effect from Dec. 16. One-year MCLR at 8.4 percent.
• Minda Industries: has completed the acquisition of German based company- Delvis Gmbh.
• Eris Lifescience: to proceed with the share-buyback at the earliest.
• Syndicate Bank revised MCLR across various tenors with effect from Dec. 15. One-month MCLR at 7.8 percent and one-year MCLR at 8.25 percent.

Brokerage Radar

UBS on Future Consumer

• Downgraded to ‘Neutral’ from ‘Buy’, cut price target to Rs 26.50 from Rs 50.
• Headwinds could persist in the near term; downgrade given reducing earnings visibility.
• Despite large headroom for growth the company has been unable to match expectations.
• Believe Future consumer is likely to only turn profitable by 2020-21.

IIFL on Hero Moto

• Maintained ‘Buy’ with a price target at Rs 3,400.
• Market is pricing in significantly bearish prospects for Hero compared to the other three.
• Margins may come off for the whole industry with BS-VI costs; Hero alone wont lose out.
• We expect margins to improve thereon with better pricing power, as demand revives.
• Industry volumes and margins may bottom out in the June 2020 quarter.

Citi on L&T

• Maintained ‘Buy’ with a price target of Rs 1,700.
• Maharashtra infra projects concerns are easing.
• Maharashtra Government is around 12 percent of current orderbook of L&T.
• L&T stock is now trading at about 16 times adjusted core P/E; valuations attractive

Macquarie on Strides Pharma

• Maintained ‘Outperform’ with a price target of Rs 525.
• Strides aims to leverage its rich experience to re-enter steriles.
• Steriles to aid growth beyond 2021-22 with two biosimilar assets.

Bulk Deals

• Apollo Hospitals: Birla MF acquired seven lakh shares or 0.5 percent equity at Rs 1,352.16 each.

Trading Tweaks

• Trident record date for share split (10:1)
• MIRC Electronics, Sintex Industries, OCL Iron and Steel , HDIL to move out of ASM Framework
• S Chand And Company, Orient Green Power, Alok Industries, Precision Camshafts, Reliance Communications, GTL, Sintex Plastics Technology, Indiabulls Integrated Services to move out of short term ASM Framework
• TCI Finance, McLeod Russel price band revised to 5 percent.

Who’s Meeting Whom

• Tata Chemicals to meet Quantum MF, Fidelity, HSBC Global AMC on Dec. 17
• Astrazeneca Pharma to meet Nippon India MF on Dec. 16
• Mahindra Lifespace Developers to meet Camelian Asset Management on Dec. 17
• Mahindra Logistics to meet Stewart Investors on Dec. 16
• Fiem Industries to meet Kotak Securities on Dec. 14
• Eicher Motors to meet Wellington Management on Dec. 18
• Dr Lal PathLabs to meet Motilal Oswal Financial Services, Comgest and other investors from Dec. 16-19

Insider Trading

• Alembic promoter Nirayu acquired 1.02 lakh shares on Dec. 11
• Nava Bharat Ventures promoter Ashwin Devineni acquired 1.4 lakh shares from Dec. 10-12

(As reported on Dec.13)

Money Market Update

• Indian rupee strengthened against the dollar for the second straight week. The home currency appreciated 0.55 percent against the greenback to close the week at 70.81.

F&O Cues

Futures

• Nifty December futures closed at 12,142.3, premium of 55.6 points versus 56.8 points.
• Nifty December futures series OI up 0.2 percent, adds 33,000 shares in OI.
• Nifty Bank December futures closed at 32,102.7, premium of 88.5points versus 51.6 points.
• Nifty Bank December futures series OI down 8 percent, sheds 1 lakh shares in OI.

Options

• Nifty PCR at 1.62 versus 1.54 (across all series)

Nifty Weekly Expiry: Dec 19

• Max OI on call side at 12,100 (11.8 lakh shares)
• Max OI on put side at 12,000 (21.2 lakh shares)
• OI addition seen in 12,000P (+11,700 shares), 12,100P (+9.6 lakh shares), 12,200C (+4.9 lakh shares)

Nifty Monthly Expiry: Dec 26

• Max OI on call side at 12,000 (25.3 lakh shares)
• Max OI on put side at 12.000 (41.7 lakh shares)

Stocks In F&O Ban

• Yes Bank