All You Need To Know Going Into Trade On Dec. 31

Asian stocks are set to slip in thin trading on the last day of a year that has delivered spectacular returns across asset classes.

Equities in Sydney opened lower. Hong Kong futures fell. Several markets including Japan are shut for holidays, while some have shortened trading sessions. U.S. futures were flat. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.3 percent to 12,289 as of 6:48 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.

• Oil is on track for the biggest yearly gain since 2016 as declining U.S. crude stockpiles eased oversupply concerns, and heightened geopolitical risk gave the commodity a boost.
• U.S. stocks fell in light trading on the penultimate day of a blockbuster year for markets.
• European shares fell on Monday after a mixed session in Asia, with traders continuing to focus on developments in U.S.-China negotiations.

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Key Data To Watch

• India to release fiscal deficit for April-November period and eight core industries output data for November.

Indian ADRs

Stocks To Watch

• Dr. Reddy’s Laboratories launched Sodium Nitroprusside Injection single-dose vial in the U.S. Markets. The injection is a generic equivalent of Nitropress which is used to lower blood pressure.
• RBL Bank’s committee approved allotment of 1.98 crore shares worth Rs 675.8 crore to East Bridge Capital Master Fund, FEG Mauritius FPI, lshana Capital Master Fund and WF Asian Reconnaissance Fund. Allotment will be done at Rs 340.7 per share, which is at a discount of 1.2 percent to closing prices of Dec. 30.
• Jet Airways: The Hinduja Group is preparing a bid to buy grounded carrier, Bloomberg reported quoting people familiar with the matter. “The U.K.-based group, run by brothers Gopichand Hinduja and Ashok Hinduja, plans to submit an expression of interest by the Jan. 15 deadline, signaling its intent to make a formal offer,” the report added quoting the people who requested anonymity not to be identified as the deliberations are private.
• Rattan India Power: Goldman Sachs and Varde Partners settled dues of the company under resolution process. Rs 6,575 crore worth debt settled at Rs 4,050 crore, while the resolution was completed outside insolvency framework. The company stated in its press release that while most deals in the power sector, resolved under the National Company Law Tribunal framework in the past have been settled at Rs. 1.2-1.5 crore per MW, this afore-mentioned transaction closed at Rs 3 crore per MW.
• Chalet Hotels entered into five new agreement with Marriott International for 1,500 plus keys in Luxury and Upper-Circle Hotel Tiers. The company would build hotels & extend contracts across brands such as W, Westin & Marriott Executive Apartment in Hyderabad and Mumbai.
• HEG: Life Insurance Corporation of India reduced stake in the company from 8.9 percent to 6.85 percent.
• Gayatri Highways defaulted in payment of interest and principal for a term loan worth Rs 45.69 crore which was due on Nov. 29 to lender IL&FS Financial Services. The total amount of borrowings from financial institutions stand at Rs 100.69 crore.
• PTC India Financial Services received fresh sanction of fresh long-term loan of Rs 500 crore from Bank of India for a period of 10 years for lending to infra-projects and other operational requirements.
• Sintex Industries defaulted in payment of non-convertible debentures interest worth Rs 3.51 crore which were due on Dec. 30.
• Inox Leisure commenced operations of its 6-screen theatre in Lucknow.
• Indian Bank reduced MCLR rate by five basis points across various tenors to be effective from Jan. 3. One-month MCLR at 8 percent and one-year MCLR at 8.3 percent.
• Piramal Enterprises approved allotment of NCDs aggregating to Rs 1,600 crore.
• Emami promoters hold 52.74 percent stake in the company, out of which 71.6 percent stake is encumbered.
• Vardhman Industries effective date for implementation of resolution plan with JSW Steel set on Dec. 31.

Brokerage Radar

Kotak Securities on Banks

• Marginal rise in stress, mostly led by loans outside of large corporate segment.
• Recovery taking longer than anticipated but we are seeing progress to retain our positive view.
• Recent acceleration in rating downgrades, a lagging indicator.
• Remain positive on banks with a high share of corporate NPLs as earnings recovery has begun.
• Earnings recovery is gradually underway and could accelerate as credit costs decline sharply.
• Believe that SBI and ICICI Bank would be the key beneficiaries.

Brokerages On TRAI Subscriber Data October 2019

Morgan Stanley

• Broadband subscriber additions were higher for all three private telecom operators.
• Jio continued its aggressive subscriber addition trend primarily aided by Jio Phone Diwali offer.
• Trends improved significantly for incumbents – Airtel and Vodafone Idea.

Emkay

• VLR subscriber additions rebound in Oct’19.
• Moderation in Vodafone Idea’s subscriber loss is the key; trend sustenance will be watched out.
• Jio gained momentum partially attributed to JioPhone Diwali offer.
• Subscription data of Nov. should show the impact of IUC top-up vouchers on Jio.

Edelweiss

• Broadband subscriber addition inching up for Airtel and Vodafone Idea.
• Subscriber addition jumped for Jio driven by its lucrative offering of Jiophone at throw-away prices.
• Expect industry subscriber addition to slow down December onwards given price hikes.

Trading Tweaks

• Jindal Polyfilms record date for spin-off (demerger).
• Piramal Enterprises record date for rights issue at 11:83 at premium of Rs 1298 per share.
• Ingersoll Rand record date for special dividend payment (Rs 25 per share).
• PG Electroplast, Agro Phos Gujarat Themis Biosyn to move into short term ASM Framework.
• Godawari Power And Ispat, Lyka Labs to move out of short term ASM Framework.
• Choice International, Hisar Metal Industries price band revised to 10 percent.
• PMC Fincorp and 7NR Retail price band revised to 5 percent.

Who’s Meeting Whom

• Mahindra Holidays & Resorts to meet Renaissance Investments on Dec. 31

Insider Trading

• Alembic promoter Nirayu acquired 55,000 shares from Dec. 26-27.
• Filatex India promoter Gunjan Bhageria acquired 2.15 lakh shares from Dec. 24-27.
• Max Ventures and Industries promoter Analjit Singh acquired 1.5 lakh shares from Dec. 26-27.
• Laurus Labs promoters sold 50,000 shares from Dec. 24-27.

Money Market Update

• The rupee snapped a six-day losing streak to close at 71.31/$ versus 71.35/$ on Friday.

F&O Cues

Index Futures

• Nifty January futures closed at 12,329.3, premium of 73.5 points.
• Nifty January futures open interest down 0.5 percent, sheds 55,000 shares in open interest.
• Nifty Bank January futures closed at 32,554, premium of 199 points.
• Nifty Bank January futures open interest down 9 percent, sheds 1.3 lakh shares in open interest.

Options

• Nifty PCR at 1.39 versus 1.45 (across all series)

Nifty Monthly Expiry: Jan. 2

• Max open interest on call side at 12,300 (24 lakh shares).
• Max open interest on put side at 12,200 (26.7 lakh shares ).
• Open interest addition seen at 12,300C (+7.5 lakh shares), 12,250P (+6.2 lakh shares), 12,350C (5.9 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (19.5 lakh shares)
• Max open interest on put side at 12,000 (34.5 lakh shares)