Shoppers walk past a Christmas tree inside Harbour City shopping mall, Hong Kong, China. (Photographer: David Paul Morris/Bloomberg)

All You Need To Know Going Into Trade On Dec. 26

Japanese shares opened higher while U.S. equity futures saw volatile trading Wednesday as traders assess how much selling pressure remains in what’s been the most brutal month for global stocks since the 2008 crisis.

The Topix index advanced more than 1 percent after a slide of almost 5 percent on Tuesday. Korean shares declined after trading there was closed Tuesday, while markets are shut in Australia and Hong Kong.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.13 percent to 10,628 as of 7:10 a.m.

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BQ Live

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

U.S. Market Check

  • U.S. stocks tumbled to the lowest since May 2017 as the turmoil in Washington kept investors on edge after the worst week for American equities in almost a decade. Crude sank below $45 a barrel and the dollar tumbled.
  • The S&P 500 slid for a fourth straight day, edging ever closer to a bear market after breaking below 2,400. The Dow Jones Industrial slid 300 points and the Nasdaq Composite slipped deeper into a bear market.
All You Need To Know Going Into Trade On Dec. 26

Also read: Whiff of Extinction Blows in Bull Market That Outlived Them All

Also read: World Economy Is Set to Feel the Delayed Trade War Pain in 2019

Asian Cues

  • The MSCI Asia Pacific Index was up 0.5 percent as of 8:07 a.m. in Hong Kong.
  • The Topix Index rose 1.6 percent.
  • Futures on the S&P 500 Index advanced 0.3 percent. The underlying gauge is 7 points away from completing a full-blown bear-market drop.
  • The Kospi Index was down 0.9 percent.
  • Futures on the FTSE China A50 index climbed 0.3 percent earlier.

Commodity Cues

  • West Texas Intermediate crude was up 1.7 percent at $43.26 a barrel.
  • Gold was steady at $1,267.23 an ounce.

Indian ADRs

All You Need To Know Going Into Trade On Dec. 26

Stocks To Watch

  • Suprajit Engineering expects second half of current financial year to be better. Consolidation of auto component space to gather pace; open for both strategic asset purchases and acquisition. Expansion plans are progressing well.
  • JK Cements to raise funds via QIP; Floor price set at Rs 732.42 per share.
  • Chemfab Alkalis commissions PVC-O project at Andhra Pradesh facility.
  • Tata Motors has no plans to sell stake in Jaguar Land Rover. (Bloomberg)
  • Autoline Industries entered into MOU with Poddar Habitat to transfer land at Chakan, Pune. The company will utilize the sale proceeds to settle debt that has a charge on the above said immovable property and reduce overall debt exposure of the company.
  • Nagarjuna Fertilizers says it is in process of a long-term debt resolution with its lenders. It has also restarted production of Urea from Unit 1 of Kakinada plant
  • PFC transfers wholly-owned subsidiary to Adani transmission.
  • Blue Blends defaults on payment of principal and interest amounting to Rs 49.92 crore on NCDs issued by the company.
  • Jagran Prakashan says board of directors scheduled to meet on Jan. 3 to approve the issuance of secured redeemable non-convertible debentures up to Rs 300 crore.
  • Vadilal Industries defers limited review report; says audit committee and board of directors have not been able to conclude on certain matters.

Also read: GST Anti-Profiteering Body Rules HUL Made Unjust Profit Of Rs 535 Crore

Bulk Deals

Gayatri Projects

  • Kavi Global Opportunity Master Fund LP bought 30.5 lakh shares (1.6 percent) at Rs 187.45 each.
  • Goldman Sachs Singapore PTE sold 30.5 lakh shares (1.6 percent) at Rs 187.45 each.

Nath Bio-Genes India

  • Kavi Global Opportunity Master Fund LP bought 5 lakh shares (2.6 percent) at Rs 406.7 each.
  • Goldman Sachs Singapore PTE sold 5 lakh shares (2.6 percent) at Rs 406.7 each.

Punj Lloyd

  • IFCI Ltd sold 19.62 lakh shares (0.6 percent) at Rs 3.92 each.

Shanti Educational Initiatives

  • Anil R Dhanuka bought 4.14 lakh shares (2.6 percent) at Rs 128 each.
  • Albula Investment Fund sold 4.15 lakh shares (2.6 percent) at Rs 128 each.

Who’s Meeting Whom

Pidilite Industries to meet Aviva Investors, London on Dec. 27

Insider Trades

  • Jayshree Tea and Industries ltd. promoter Manav Investment & Trading Co. Ltd sold 26,793 shares on Dec. 20.
  • Crest Ventures promoter V J Finsecurities Private Limited acquired 10,573 shares from Dec. 14–21.
  • Steel Strips Wheels promoter Chandigarh Aircraft Management Services Pvt Ltd acquired 6,250 shares on Dec. 21.
  • Omax Autos promoters acquired 21,016 shares from Dec. 12-21.
  • Confidence petroleum India Ltd. promoter Confidence LPG Bottling Pvt Ltd acquired 33,054 shares on Dec. 21.
  • RPG Life Sciences promoter Ektara Enterprises LLP acquired 19,783 shares from Dec. 20–21.
  • Aster DM Healthcare promoter Dr. Azad Moopen acquired 60,000 shares on Dec. 20.

(As reported on Dec. 24)

Rupee

Rupee closed at 70.15/$ on Monday from 70.17/$ on Friday

F&O Cues

  • Nifty December futures closed trading at 10,682, with a premium of 18 points
  • Maximum open interest for December series call at 11,000 strike price (open interest at 57.9 lakh shares)
  • Maximum open interest for December series put at 10,500 strike price (open interest at 32.0 lakh shares)

Stocks In Ban

  • Adani Enterprises
  • Adani Power

Put-Call Ratio

  • Nifty PCR at 1.26 from 1.28
  • Nifty Bank PCR at 0.81 from 0.86
All You Need To Know Going Into Trade On Dec. 26

Brokerage Radar

Motilal Oswal On Brigade Enterprises

  • Initiated ‘Buy’ with a price target of Rs 282.
  • Focus on scaling up leasing portfolio is a tactical shift.
  • Stake sale in hotel portfolio to fund future capex.
  • Residential real estate sector to recover with affordable housing an opportunity.

Macquarie On ITC

  • Maintained ‘Outperform’ raised price target to Rs 376 from Rs 367.
  • ITC is winning back market share in cigarettes, leading to volume recovery.
  • Expect earnings recovery to continue with strong volume recovery.
  • Margin expansion in FMCG will lead to valuation re-rating.

UBS On Power Grid

  • Maintained ‘Neutral’ with a price target Rs 225.
  • Regulatory status quo a positive, but best is behind.
  • Project execution remains tepid posing risk to our estimates.
  • Additions to pipeline crucial for medium term earnings growth visibility.