All You Need To Know Going Into Trade On Dec. 26
Motorcyclists and cyclists get stuck in traffic outside stores on a street in Varanasi, Uttar Pradesh. (Photographer: Dhiraj Singh/Bloomberg)

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

Asian stocks opened another quiet year-end session on Thursday, sitting on an advance of almost 9 percent for the quarter thanks to ebbing concerns about U.S.-China trade tensions and expectations of a global economic pickup in 2020.

Shares opened higher in Tokyo and flat in Seoul. U.S. futures were little changed. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 12,237.50 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 on what could influence equities today.

  • U.S. Markets were shut on Wednesday for Chirstmas. On Tuesday, The S&P 500 Index slipped but held onto a 28 percent gain for the year
  • Oil held gains as an industry report showed American inventories shrunk. Futures in New York rose as much as 0.7 percent, on track for the largest monthly gain in almost a year, according to Bloomberg report.

Get your daily fix of global markets here.

Indian ADRs

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

Stocks To Watch

  • Bharti Infratel has deferred its proposed merger with Indus Towers till February 2020. The merger, was deferred after the two companies failled to secure all the necessary approvals from the government. The deal is key for India’s struggling operators’ which are looking to unlock value.
  • Bharti Airtel’s African arm has announced the price for its listing on the Malawi Stock Exchange. The telecom operator will divest 20 percent stake at $0.02 per share aggregating to $37.5 million, to meet relevant norms.
  • GAIL has clarified that it is not in the process of hiving off its pipeline business into a separate unit. The gas distributor added that it has also not received any directive to do the same.
  • United Breweries has said its not aware of any event that hint at the possibility of Heineken raising stake in the company.
  • Yes Bank: Brickwork Ratings has downgraded the Bank’s Lower Tier II Bonds rating, from ‘BWR AA-’ to ‘BWR A’, and of Upper Tier II Bonds, Hybrid Tier I Bonds and Innovative Perpetual Debt Instruments from ‘BWR A+’ to ‘BWR A-’. The Outlook continues to remain Negative, considering the risk of continuing weakness in asset quality and to monitor the capital raising plans of the bank to provide cushion to absorb any increase in risk-weighted assets and assist credit growth.
  • HCL Technologies has announced the opening of Global Delivery Center in Canada.
  • Sintex Industries: Invesco Asset Management has filed a petition before NCLT Ahmedabad under insolvency proceedings for Rs 15 crore. The case is yet to be admitted to NCLT.
  • GMR Infra said that promoters have 63.6 percent stake in the company, 72.3 percent of which are encumbered.
  • Reliance Industries: The National Company Law Appellate Tribunal has dismissed the Income Tax Department’s petition objecting to Reliance Jio Infocomm’s proposed demerger scheme to hive off its fiber and tower business into two separate units.
  • NTPC is planning to add 10 gigawatt of solar energy generation capacity by 2022, which entails an investment of around Rs 50,000 crore, to be funded mainly by green bonds, a source has said.
  • HDFC will raise up to Rs 2,500 crore by issuing bonds on a private placement basis. The secured redeemable non-convertible debentures are to be allotted on a private placement basis on Friday for an issue size of Rs 2,500 crore, HDFC Ltd. said in a regulatory filing on Tuesday.

Bulk Deals

  • Dishman Carbogen Amcis: Motilal Oswal AMC sold 24.58 lakh shares or 1.52 percent equity at Rs 73.79 each.
  • Dixon Technologies: Promoter Kamla Vichani sold 75,000 shares or 0.66 percent equity at Rs 3715.47 each.

Brokerage Radar

Edelweiss on Bharti Infratel

  • Maintain ‘Hold’ with a price target at Rs 293.
  • Believe Bharti Infratel could call off the merger.
  • Perceive this as negative for Bharti Airtel as well as Vodafone Idea.
  • Weak tenancy additions on one hand and merger risks on the other, stance remains cautious.

Equirus on Oil Marketing Companies

  • IOCL: Initiated ‘Long’ with a price target at Rs 176.
  • BPCL: Initiated ‘Add’ with a price target at Rs 522.
  • HPCL: Initiated ‘Reduce’ with a price target at Rs 273.
  • IMO 2020 and lower than expected capacity add beyond 2021 to benefit GRM.
  • See steady demand from India, no major market share losses and stable marketing margins for OMCs.
  • Prefer IOCL and BPCL given higher GRM expansion, stronger earnings growth and better dividend yields.
  • HPCL is the least preferred due significantly higher capex and rising net debt/Ebitda.

Trading Tweaks

  • Kesoram Industries record date for spin off (demerger).
  • Balmer Lawrie ex-date for bonus issue at 1:2.
  • Mcleod Russel to move into short term ASM Framework.
  • Dishman Carbogen Amcis price band revised to 10 percent.

Who’s Meeting Whom

  • Narayana Hrudayalaya to meet Centrum Capital on Dec. 26.

Insider Trading

  • KRBL promoters acquired 36k shares on Dec. 23

(As reported on December 24)

Money Market Update

  • Rupee ended at 71.27/$ on Tuesday versus 71.18/$ on Monday.

F&O Cues

Index Futures

  • Nifty December futures closed at 12,238.4, premium of 23.9 points versus 13.7 points.
  • Nifty futures OI across series down 3 percent, sheds 5 lakh shares in OI.
  • Nifty Bank December futures closed at 32,307.7, premium of 27 points versus discount of 10 points.
  • Nifty Bank futures OI across series up 5 percent, adds 83,000 shares in OI.
  • Rollovers –Nifty 54 percent, Nifty Bank 51 percent.

Options

  • Nifty PCR at 1.47 versus 1.66 (across all series)
  • Nifty Monthly Expiry: Dec 26
  • Max OI on call side at 12,300 (34 lakh shares)
  • Max OI on put side at 12,000 (30.5 lakh shares)
  • OI addition seen at 12,250C (+12.2 lakh shares), 12,300C (+5.2 lakh shares)

Securities In Ban

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