All You Need To Know Going Into Trade On December 16
A cyclist rides along an empty street past the Reserve Bank of India (RBI) headquarters during a lockdown imposed due to the coronavirus in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

All You Need To Know Going Into Trade On December 16

Asian markets are advancing in mid-week trading after their peers in the U.S. halted a losing streak overnight.

Benchmarks in Japan, Australia and South Korea have all opened with gains as the Congress moved towards a spending package to boost the economy.

The U.S. Dollar has held its losses while oil prices have slipped.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 13,630 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 lower by 40 points. The index gained 1.1% on Tuesday. The S&P 500 rebounded from its worst losing streak in three months.
  • The two-day meeting of the U.S. Federal Reserve will conclude later tonight. Traders are eyeing whether the Fed will alter its bond purchase program or maintain status quo.
  • Hopes aer rising that Democratic and Republican lawmakers will clinch a $748 billion bipartisan proposal that will inject cash directly in the economy.
  • Following a weekend of intense diplomatic activity, Michel Barnier, who leads the EU team, said he can see a pathway to a Brexit deal, if the two sides can resolve what he called their significant differences.
  • Yield on the 10-year treasuries stood at 0.91%.
  • West Texas Intermediate crude fell 0.2% to $47.53 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On December 16

Stock To Watch

  • IDBI Bank: Launched fund raising through QIP issue. Floor price of Rs 40.63 per share is a 3.8% discount to Tuesday's closing price. The bank aims to raise Rs 2,000 crore through QIP. Base Size of Rs 1,000 crore and Greenshoe Option of Rs 1,000 crore.
  • Punjab National Bank: Has launched QIP issue to raise funds. Floor price of Rs 37.35 per share is a 7.6% discount to Tuesday's closing price. Board to meet on December 18 to determine issue price for the QIP. PTI reports that the lender aims to raise Rs 7,000 crore through the QIP.
  • Indian Bank: Has declared the NPA account of IL&FS Financial services as 'Fraud' and reported the same to the Reserve Bank of India. The bank has an exposure worth Rs 408 crore to the said account. The lender says that the account has been fully provided for, as per the regulatory requirement.
  • Mahindra & Mahindra: To increase the price of its range of Passenger and Commercial Vehicles, across models from January 1, 2021. The company said that this has been necessitated due to the increase in commodity prices and various other input costs.
  • Embassy Office Parks REIT: Launched a QIP issue on Tuesday in order to raise funds. The floor price of 348.38 rupees per unit is a 2.1% discount to Tuesday's closing price.
  • Axis Bank: Said its total exposure to SREI group does not exceed Rs 800 crore and the allegations by Australia-based news agency Scams Breaking on the bank's exposure to SREI Group are ‘grossly inaccurate and baseless.’ Axis Bank's total exposure to SREI group includes fund-based exposure worth Rs 731 crore and non-fund based exposure worth Rs 69 crore. Axis Trustee Services acts in its fiduciary capacity as a trustee and /or custodian and charges registered by it is not a reflection of the exposure of the bank, according to the bank’s statement.
  • PVR: To consider fund raising via various methods at its board meeting on December 18.
  • Biocon: Biocon Biologics has signed a Memorandum of Understanding with the Christian Social Services Commission in Africa. Tanzania will be the first country in Africa that will benefit from this collaboration between Biocon Biologics and CSSC.
  • HG Infra Engineering: Has been declared as L-1 bidder by lrcon Intemational Limited for its project worth Rs 713.69 crore.
  • JSPL: Appoints Hemant Kumar as CFO from December 15.
  • Persistent Systems: Has appointed Charles Owen as Chief Corporate Development Officer.
  • Shree Cement: CARE Ratings has reaffirmed the credit rating of the Commercial Paper worth Rs 400 crore at A1+.
  • Union Bank of India: Has allotted non-convertible, fully paid-up Basel-Ill Compliant Debt Instruments in the nature of debentures eligible for inclusion in Additional Tier-1 Capital Series XXVll worth Rs 500 crore.
  • Hathway Cable And Datacom: Has acquired the remaining 49% stake or 9,800 equity shares of Hathway Digital Saharanpur - a subsidiary of the company for a cash consideration of Rs 25 lakh.
  • Mrs. Bectors Food Specialities: IPO sees overall subscription of 3.72 times on the first day of bidding. The QIB portion saw subscription of 0.02 times while the non-institutional investor portion saw subscription of 1.37 times. Retail portion was subscribed 6.83 times.

Brokerage Radar

Emkay On NMDC

  • Buy rating maintained
  • Price target raised to Rs 160 from Rs 136
  • Iron ore shortage to drive earnings as price hikes sustain through Q4
  • Reopening of Donimalai mines should aid volumes in FY22
  • Continued shortage from Odisha to support prices, putting the company in a sweet spot
  • Progress on the demerger of the steel plant will also support prices
  • Raise iron ore price assumption by 22% and 16% respectively for FY21/22
  • Raise FY21E/22E EPS estimates by 40% and 23% respectively
  • Key Risk: Sharp rise in domestic ore production leading to price correction

Prabhudas Lilladher On Exide Industries

  • Buy rating maintained
  • Price target raised to Rs 234 from Rs 194
  • Channel checks suggest replacement demand back in high margin telecom segment
  • To ride intensified replacement market share gains
  • Exports likely to scale up going forward
  • Factor in revenue / Ebitda / PAT CAGR of 6%, 9.9% and 10% respectively

Pledge Share Details

  • Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 11 lakh shares on December 11.
  • Kalpataru Power Transmission: Promoter Parag Munot revoked pledge of 18.39 lakh shares on December 11.
  • Solara Active Pharma Sciences: Promoter Pronomz Ventures invoked pledge of 2.40 lakh shares on December 14.

As Reported On December 15

Who’s Meeting Whom

  • Crompton Greaves Consumer Electricals: To meet JP Morgan India on December 16.
  • Gland Pharma: To meet First Principles Funds and Ambit Capital on December 16.
  • Manappuram Finance: To meet Duro Capital and IIFL Capital on December 16.
  • United Spirits: To meet Spark Capital on December 16.
  • KEC International: To meet DAM Capital Advisors on December 16.
  • Advanced Enzyme Technologies: To meet Malabar Investments on December 16.
  • SP Apparels: To meet Edelweiss Group on December 16.
  • Welspun Corp: To meet Kotak Mutual Fund on December 17.
  • Voltas: To meet Ambit Capital on December 17. It will also meet Enam AMC and IDFC Mutual Fund on December 18.
  • Computer Age Management Services: To meet First Principles Fund, U.S.A on December 18.

Bulk Deals

  • Mukand: Promoter Bajaj Sevashram bought 47.85 lakh shares (3.38%) at Rs 60.5 per share. Promoter Jeewan Ltd sold 47.85 lakh shares (3.38%) at Rs 60.5 per share.
  • Welspun Corp: Promoter Welspun Group Master Trust bought 26.98 lakh shares (1.03%) at Rs 132.01 per share.
  • Astec LifeSciences: Promoter Hiremath Ashok Vishwanath sold 4 lakh shares (2.04%) at Rs 1,102.09 per share.
  • Majesco: Unifi AIF sold 2 lakh shares (0.67%) at Rs 987.78 per share and sold 3.80 lakh shares at (1.27%) at Rs 990.6 per share.
  • Snowman Logistics: Adani Logistics sold 14.43 lakh shares (0.86%) at Rs 59.12 per share.

Trading Tweaks

  • AGM: Hindustan Construction Company, Responsive Industries, Jaypee Infratech, Kwality, Jayaswal Neco Industries.
  • Ex Date For Dividend: Responsive Industries, Trescon.
  • Price Band Revised From 10% To 5%: Bombay Rayon Fashions, KIOCL, Marathon Nextgen Realty, Zee Media Corporation, RSWM.
  • Price Band Revised From 20% To 10%: Cybertech Systems And Software, Hindustan Construction Company, Share India Securities, Sutlej Textiles & Industries.
  • Move In To Short-term ASM Framework: Hinduja Global Solutions, Sutlej textiles, Suven Life Sciences, Hindustan Construction Company, Olectra Greentech, ABB Power Products And Systems India.
  • Move Out Of Short-term ASM Framework: Sadbhav Engineering, Sadbhav Infrastructure Project.
  • Move In To ASM Framework: Supreme Petrochem, Zee Media Corporation, Shalimar Paints.

Insider Trades

  • Axis Bank: Promoter Life Insurance Corporation of India sold 2.60 lakh shares between December 7-11.
  • Maharashtra Seamless: Promoter Amruit Promoters and Finance acquired 25,300 shares on December 4.
  • NRB Bearings: Promoters Aziz Yousuf Zaveri and Harshbeena Zaveri acquired 14,125 shares between December 10-14.
  • Thangamayil Jewellery: Promoters Balarama Govinda Das and NB Kumar acquired 26,287 shares between December 9-11.
  • Man Infra: Promoter Parag Shah acquired 85,917 shares on December 14.
  • Max Ventures and Industries: Promoter Ravi Vachani acquired 10,000 shares on December 14.
  • Arvind SmartSpaces: Promoter Amardeep Holdings sold 54,365 shares on December 11.

As Reported On December 15.

Money Market Update

  • The currency ended with modest losses on Tuesday, ending at 73.64 against the U.S. Dollar as compared to Monday's close of 73.57.
  • The rupee was the third worst performer in Asia on Tuesday.
All You Need To Know Going Into Trade On December 16

F&O Cues

  • Nifty December futures ended at 13,585; a premium of 18 points
  • Nifty December futures shed 0.75% and 89,325 shares in Open Interest
  • Nifty Bank December futures end at 30,692; premium of 1 point
  • Nifty Bank December futures shed 10% and 1.7 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.84
  • Out Of F&O Ban: Punjab National Bank
  • Stocks In F&O Ban: Canara Bank

Nifty: December 17 Expiry

  • Maximum Open Interest on Call side at 13,600 strike (32.67 lakh shares)
  • Maximum Open Interest on Put side at 13,500 strike (31.9 lakh shares)
  • Active Options: 13,900 Call (-6.4 lakh shares) and 13,400 Put (+9.6 lakh shares)

Nifty: December 31 Expiry

  • Maximum Open Interest on Call side at 13,000 strike (23.3 lakh shares)
  • Maximum Open Interest on Put side at 13,000 strike (41.8 lakh shares)
All You Need To Know Going Into Trade On December 16
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