All You Need To Know Going Into Trade On Dec. 19

Asian stocks traded mixed Wednesday following a volatile U.S. session that saw stocks end the day flat and crude oil slump more than 7 percent.

Stocks in Japan fared worst as telecom giant SoftBank Corp. fell as much as 10 percent in its IPO debut. Shares in Australia also slipped while those in South Korea outperformed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.40 percent to 11,001 as of 7:25 a.m.

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

U.S. Market Check

• U.S. stocks held near a 14-month low on a volatile day that saw the benchmark gauge swing almost 2 percent from trough to peak.
• The S&P 500 Index ended virtually unchanged as investors braced for Wednesday’s Federal Reserve policy decision against the backdrop of recent turmoil in global markets that’s put equities on course for the worst year since 2008.

Asian Cues

• Japan’s Topix index fell 0.7 percent as of 9:35 a.m. Tokyo time.
• South Korea’s Kospi rose 0.4 percent.
• Australia’s S&P/ASX 200 Index fell 0.3 percent.
• Hong Kong’s Hang Seng Index futures added 0.4 percent.
• S&P 500 futures rose 0.2 percent. The S&P 500 Index was little changed at the close of trading in New York.

Coming Up

• The Fed wraps up its final policy meeting of 2018. 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 Bank of England decision is also Thursday.

Commodity Cues

• West Texas Intermediate crude rose 0.2 percent to $46.32 a barrel, after falling more than 7 percent.
• Gold was little changed at $1,249.92 an ounce.

RBI Plans Measures To Inject Liquidity

• The Reserve Bank of India announced plan to scale up liquidity infusion via purchase of government bonds.
• The central bank will now conduct two open market operation purchases of Rs 15,000 crore each in December, scaling up its total liquidity injection to Rs 50,000 crore for the month, it said in a media statement.

Stocks To Watch

• Biocon says biosimilar Trastuzumab gets approval in European Union
• Welspun Enterprises divested 50 percent stake Dewas Bhopal Road For Rs 184 crore
• Hathway Cable, SITI Networks, DEN Networks, Sun TV Network, TV Broadcast, Zee Entertainment: TRAI sets maximum retail price of pay television channels that are offered by 42 broadcasters in the country to subscribers.
• J Kumar Infraprojects joint venture received EPC orders worth Rs 1,349 crore from National Highways Authority of India for Delhi.
• NTPC said that unit 6 of 500 MW capacity of Feroze Gandhi Unchahar Thermal Power Station had been restored and synchronized with the grid after boiler restoration.
• Piramal Enterprises board approved amendment to the terms of non-convertible debentures by modifying rating trigger threshold from ‘A+’ to ‘BBB+’. The debenture-holders shall have the option to call for early redemption of the non-convertible debentures in case credit rating of the issuer falls to ICRA ‘BBB+’ or below. Board will also consider bond issue on Dec. 21 of up to Rs 3,000 crore.
• IDFC Bank sets Dec. 31 as record date for determining the shareholders of Capital First who shall be entitled to receive shares of the bank as consideration to the scheme of amalgamation of Capital First and its two arms with IDFC Bank. In its press release, the bank also set Dec. 18 as the effective date of merger.
• Karnataka Bank tied up with Paisabazaar.com to offer Bank’s home loan products to customers.
• Mahindra & Mahindra Financial Services board to meet on Dec. 21 to consider issuing non-convertible debentures with a shelf limit of Rs 10,000 crores.

• Srei Equipment Finance said it will raise Rs 300 crore via non-convertible debentures
• Yes Bank said that it sold 2.13 percent stake in Fortis Healthcare. The bank had been selling the shares of the healthcare company in various tranches.
• PVR board said it was considering raising funds on Dec. 21.
• Lemon Tree Hotels signed license agreement for 69 room property in Pune. This hotel is expected to be operational by March next year.

Who’s Meeting Whom

• Blue Star to meet IndiaNivesh Securities on Dec. 20.
• Shoppers Stop to meet RARE Enterprises, JM Financial Services and other investors on Dec. 19.
• Container Corporation of India to meet IDFC Securities, Philip Capital from Dec. 19- Feb. 12.

Insider Trading

• Nandan Denim promoter Vedprakash Chiripal acquired 29,000 shares on Dec. 17.

(As reported on Dec.18)

Trading Tweaks

• Capital India Finance record date for rights issue at 4:5.
• Mystic Electronics to move into ASM Framework.

Money Market Update

• The rupee surged most in five years to close at a three-week high of 70.42 per dollar against Monday’s close of 71.55.

F&O Cues

• Nifty December futures closed trading at 10,935, with a premium of 26 points.
• Maximum open interest for December series call at 11,000 strike price (Open interest at 44 lakh shares)
• Maximum open interest for December series put at 10,000 strike price (Open interest at 50 lakh shares)

Stocks In F&O Ban

• Adani Enterprises
• Adani Power
• Jet Airways
• Reliance Capital

Put-Call Ratio

• Nifty PCR at 1.58 from 1.61.
• Nifty Bank PCR at 1.51 from 1.38.

Get a detailed drawdown of derivatives on BloombergQuint's F&O page.

Brokerage Radar

Elara Capital on Consumer Durables

• Expect a blissful 2019 for the consumer appliances industry.
• Replacement cycle shortening which could drive growth in some product segments.
• Lightings up on volume but down on prices.
• In-house manufacturing and outsourcing preferred over imports.

PhillipCapital on Jubilant FoodWorks

• Maintained ‘Buy’ hiked target price to Rs 1,845 from Rs 1,760.
• Poised to deliver strong Q3FY19 results.
• Channel checks suggest that same store sales growth in October-November 2018 was 15 percent.
• Deliveries to the railway station have started gaining momentum.

Citi on Asset Management Companies

• Lower expense ratios to come into effect from April.
• Every 5 basis points that AMCs have to absorb, impacts net profit by 18 percent on an average for top 10 players.
• HDFC AMC will look to pass on most of this to distributors.
• ICICI Securities can see a 2 percent impact on revenue if commissions are cut by 20 basis points.

Edelweiss on Biocon

• Initiated ‘Reduce’ with target price of Rs 430.
• Price erosion to intensify since competition will be very stiff in monoclonal antibody.
• Market share gains will be very difficult in insulin as innovator will be aggressive in protecting its turf.
• Expect revenue CAGR of 15 percent over the next ten years at an Ebitda margin of 35 percent.
• Rich valuations leave no room for surprise.