All You Need To Know Going Into Trade On December 14
The new trading week has begun on a positive note for Asian equities. Global equities are looking to recover after their first weekly loss in six.
A weak greenback, coupled with stimulus bill negotiations and the impending deployment of the first Covid-19 vaccine in the U.S. is giving investors comfort.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 13,585 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.
Let’s take a look at the factors that may influence equities in today’s session:
- Futures on the Dow Jones are currently trading with gains of 170 points. The index ended little changed on Friday.
- The first deliveries of the Pfizer-BioNTech vaccines in the U.S. are due to arrive on Monday morning. A group of lawmakers will unveil a $908 billion pandemic relief bill on the same day, though a key negotiator said that there is 'no guarantee' that it will be passed by the Congress.
- Germany will enter a hard lockdown from Wednesday with non-essential stores shuttered.
- The FOMC is set to meet on Tuesday and Wednesday with the markets expecting fresh guidance on continued asset purchases.
- Yields on the 10-year treasuries stood at 0.91%.
- West Texas Intermediate crude rose 0.2% to $46.68 per barrel.
Get your daily fix of the global markets here.
Stock To Watch
- Power Grid: Board of Directors approve payment of interim dividend of Rs 5 per equity share for FY21. The dividend will be paid on January 8, 2021.
- Cipla: Announced the settlement of its litigation with Celgene Corporation, and wholly-owned subsidiary of Bristol Myers Squibb relating to patents for REVLIMID (lenalidomide). As part of the settlement, the parties will file Consent Judgments with the United States District Court for the District of New Jersey that enjoin Cipla from marketing generic lenalidomide before the expiration of the patents-in-suit, except as provided for in the settlement. In settlement of all outstanding claims in the litigation, Celgene has agreed to provide Cipla with a license to Celgene’s patents required to manufacture and sell certain volume-limited amounts of generic lenalidomide in the United States beginning on a confidential date that is some time after the March 2022.
- KEC International: Has secured new orders of Rs 1,438 crore across its various businesses. The company secured orders of Rs 475 crore in the urban infra/emerging segments in India and orders of Rs 383 crore for infra works from private players in the chemical, cement and residential segments and a government order in the water pipeline segment. Further the company secured orders of Rs 362 crore for T&D projects in Middle East and the Americas and orders of Rs 218 crore for various types of cables/ cabling projects in India and overseas.
- Delta Corp: Received approval from the Goa Investment Promotion and Facilitation Board for setting up of an integrated resort consisting of hotels, convention centre, multiplex cinema, retail area, electronic casino, water park and other facilities at Pernem, Goa.
- Adani Power: Maharashtra Electricity Regulatory Commission has announced two consequential orders at the direction of the Appellate Tribunal of Electricity, regarding appeals filed by the company's wholly-owned subsidiary Adani Power Maharashtra. The receipt of the present order, Adani Power Maharashtra will now file revised compensation claims with MSEDCL to the extent of clarification given by APTEL on the technical parameters to be considered in the methodology of computation.
- Eclerx: Enters into a interest purchase agreement to acquire 100% stake in Eclipse Global Holdings, a company based in Texas, through its wholly-owned subsidiary eClerx LLC, USA. The transaction is expected to close by December 29, 2020 and is valued at $34 million. Earnouts maybe payable for the next two years based on revenue and profitability targets.
- Burger King India: Listing on the bourses today. Issue saw overall subscription of over 150 times.
- JSPL: Standalone production rises 15% year-on-year in November. Exports contributed 21% of the total sales volumes with 1.19 lakh tonnes. The company's MD VR Sharma said that with domestic markets recovering, the company is focusing more on value-added products.
- Central Bank of India: Capital Raising Committee of the Board of Directors have considered and approved the proposal for raising capital funds up to Rs 500 crore by issuance and allotment of NCDs, unsecured, Basel-III compliant Tier-2 bonds in the nature of promissory notes.
- Union Bank: To issue Basel-III compliant perpetual debt instruments in the nature of debentures eligible for inclusions in AT-1 capital series of Rs 500 crore with a green shoe option up to Rs 1,000 crore on a private placement basis. The coupon rate for the same will be 8.73% per annum.
- JK Paper: The Sirpur Paper Mills, a subsidiary of the company, has resumed its production operations at its manufacturing facility at Sirpur-Kaghaznagar, Telangana, which was temporarily suspended.
- Zuari Global: Has acquired 100% shares of Zuari Insurance Brokers from Zuari Finserv, a wholly-owned subsidiary of the company. The company has acquired 27.50 lakh shares of face value of Rs 10 each in the paid up share capital of ZIBL for Rs 7.89 crore. The acquisition is proposed to be completed within 60 days from the date of execution of Share Purchase Agreement.
- Max Ventures and Industries: The company has issued a continuing guarantee in favour of Catalyst Trusteeship for securing the term loan facility of principal amount of Rs 240 crore availed by Max Square from IndusInd Bank. Rate of interest shall be as mutually agreed between IndusInd Bank and Max Square from time to time.
- Zensar Technologies: The board has appointed Ajay Bhutoria as CEO and MD-designate after Sandeep Kishore's five-year term ends on January 11, 2021.
- Muthoot Finance: Moody's investor service reaffirms Corporate Family Rating at Ba2. Outlook has been revised to stable from negative.
- Bharti Infratel: Has informed the exchanges of change of name to Indus Towers Ltd. Gets approval from the Registrar of Companies and NCLT of Delhi and Haryana for the name change.
- Yes Bank: Sold 15 lakh equity shares or 2.56% of total equity in Sical logistics.
Pledge Share Details
- JSW Energy: Promoters JSW Investments and Indusglobe Multiventures revoked pledge of 3.08 crore shares on December 8.
- Laurus Labs: Promoter Satyanarayana Chava revoked pledge of 39.50 lakh shares between December 7-9.
- Jindal Steel & Power: Promoters Danta Enterprises and Glebe Trading revoked pledge of 45.51 lakh shares between December 4-8.
- JSW Steel: Promoter JSW Techno Projects, Vividh Finvest and Glebe Trading revoked pledge of 1.20 crore shares between December 8-10.
- Zuari Agro Chemicals: Promoter Zuari Management Services created a pledge of 45 lakh shares on December 8.
As reported on December 11.
Who’s Meeting Whom
- Mahindra & Mahindra: To meet Kotak Group on December 14, IIFL Private Wealth on December 15, Stewart Investors on December 16, Karma Capital on December 17, SBI Life Insurance and Limiar Capital on December 18.
- Tata Motors: To meet Rare Enterprises and Baillie Gifford, U.K. on December 15.
- Fiem Industries: To meet Old Bridge Capital on December 14.
- KEI Industries: To meet Ambit Capital on December 14.
- Welspun Corp: To meet PhillipCapital on December 15.
- Shriram City Union Finance: To meet Motilal Oswal Financial Services on December 16 and Philip Capital (India) on December 17.
- PVR: Ishana Capital Master Fund bought 8.41 lakh shares (1.52%) at Rs 1,470 per share. Multiples Private Equity Fund sold 3.06 lakh shares (0.56%) at Rs 1,470.03 per share and 8.93 lakh shares (1.62%) at Rs 1,470.13 per share.
- Panacea Biotec: Serum Institute Of India Private sold 4.38 lakh shares (0.72%) at Rs 248.2 per share.
- Crest Ventures: Promoter Fine Estates bought 2.03 lakh shares (0.72%) at Rs 95.98 per share. Rajesh Golechha sold 2 lakh shares (0.70%) at Rs 95.99 per share.
- Snowman Logistics: Adani Logistics sold 30.62 lakh shares (1.83%) at Rs 64.92 per share.
- AGM: DB Realty, Weizmann, 3i Infotech, Karma Energy, Ravi Kumar Distilleries, IFCI, Dredging Corporation of India, Atlanta, Garden Silk Mills, Mcnally Bharat Engineering Company.
- Ex-Interim Dividend: Goodyear India
- Price Band Revised From 10% to 5%: Jaiprakash Associates, Jaypee Infratech, Reliance Infrastructure.
- Price Band Revised From 10% to 5%: Jaiprakash Power Ventures, TVS Electronics.
- Move In To ASM Framework: Fineotex Chemical, Cerebra Integrated Technologies, Greenpanel Industries, Dhani Services, Gayatri Projects.
- Move Out Of ASM Framework: Vikas Multicorp, RattanIndia Infrastructure, Advanced Enzyme Technologies, Welspun India, Intellect Design Arena, Ramkrishna Forgings, SP Apparels.
- Move In To Short-term ASM Framework: Hindustan Foods, Yes Bank, GTL Infrastructure, Bajaj Hindusthan Sugar.
- Move Out Of Short-term ASM Framework: HFCL, Thomas Cook (India), CARE Ratings.
- Ashapura Minechem: Promoter Ashapura Industrial Finance acquired 53,000 shares between December 9-10.
- Jaiprakash Associates: Promoter Urvashi Gaur acquired 5 lakh shares on December 9.
- Asian Granito India: Promoter Kamleshbhai Bhagubhai Patel acquired 25,000 shares on December 9.
As reported on December 11.
Money Market Update
- The currency ended little changed on Friday at 73.64 against the U.S. Dollar as compared to Thursday's close of 73.67.
- The rupee posted modest gains for the week, ending as the fourth best performing currency in Asia.
- Nifty December futures end at 13,517; discount of 4 points
- Nifty December futures add 2.2% and 2.6 lakh shares in Open Interest
- Nifty Bank December futures end at 30,624; premium of 20 points
- Nifty Bank December futures add 0.5% and 8,775 shares in Open Interest
- Nifty Put-Call Ratio at 1.82
- Stocks In F&O Ban: Canara Bank, Punjab National Bank
Nifty: December 17 Expiry
- Maximum Open Interest on Call side at 14,000 strike (31 lakh shares)
- Maximum Open Interest on Put side at 12,500 strike (23.7 lakh shares)
- Active Options: 13,600 Call (+13.35 lakh shares) and 13,500 Put (+12.2 lakh shares)
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 13,000 strike (23.9 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (38 lakh shares)