All You Need To Know Going Into Trade On December 2
Asian markets have begun mid-week trading on a positive note after peers on Wall Street hit a new record high on Tuesday.
Benchmark indices are advancing in Japan, Australia and South Korea. The U.S. Dollar holds a slide to a more than two-year low.
Gold held an advance, while Bitcoin retreated after almost reaching $20,000 for the first time.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 13,139 as of 6:55 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 trading 110 points lower. The index gained 0.6% on Tuesday.
- House Speaker Nancy Pelosi presented a fresh Democratic proposal and Senate Majority Leader Mitch McConnell floated a revision of his much smaller stimulus plan to fellow Republicans.
- During a testimony before the Senate Banking Committee, U.S. Federal Reserve Chair Jerome Powell cautioned lawmakers that the U.S. economy remains in a damaged and uncertain state.
- Yield on the 10-year treasuries stood at 0.92%
- West Texas Intermediate crude fell 1.1% to $44.07 per barrel. Oil extended losses as tensions between OPEC members heightened uncertainty over the group delaying its planned output increase.
Get your daily fix of the global markets here.
Stocks To Watch
- Dr Reddy's Laboratories: Commences clinical trials for Sputnik V vaccine in India along with RDIF. This will be a multicenter and randomised controlled study, which will include safety and immunogenicity study.
- Phoenix Mills: Signed a non-binding term-sheet with an affiliate of GIC to create a strategic, retail-led mixed use platform. GIC will initially acquire a 26% stake and both parties may mutually agree to raise that stake up to 35% within a 12-month period from closing of the said transaction. Phoenix Mills says that the proceeds from this proposed transaction will be utilised as growth capital for further expansion and acquisition of greenfield, brownfield, operational and distressed mall opportunities.
- Coal India: Production in November up 3.3% year-on-year to 51.7 MT while Offtake up 8% year-on-year to 51.3 MT.
- UPL: The district court of Delaware reduces the October 2019 Jury verdict in the intellectual property litigation to $13 million from $31 million earlier. The court also vacated a number of jury’s determination on key counts. The litigation pertains to TruPick, a 1-MCP product launched by the post-harvest business of UPL in the U.S. in 2016. The company has already made a provision for the full $31 million jury award in FY20.
- Kansai Nerolac: Sri Lankan subsidiary Kansai Paints Lanka allots 4.99 crore shares for an equity contribution of Rs 12 crore. Shareholding of the company in its subsidiary remains the same.
- Godrej Industries: Gets ICRA A1+ rating for its commercial paper programme of up to Rs 1,500 crore.
- KEC International: ICRA assigned a AA- rating to External Commercial Borrowing (Foreign Currency Term Loan) of $20 million.
- Glenmark: Issued a notice of optional redemption to holders of $200 million 4.5% Senior Notes due 2021 and listed on the Singapore Exchange Securities Trading Ltd. Record date for the same has been set as December 10.
- Sakthi Sugars: Default in payment of interest and repayment of principal amount continues beyond 30 days from the due date. The total financial debt including short-term and long-term debt stands at Rs 1,624.66 crore.
- Reliance Power: Defaults on interest payments due on term loans from Axis Bank, Yes Bank and IDBI Bank. The company has total financial indebtedness of Rs 1,360 crore.
- Burger King: IPO opens for subscription today. Price band of Rs 59-60 per share.
November Auto Sales
- Hero MotoCorp: Overall sales up 14.4% at 5,91,091 units. Domestic sales up 13.8% at 5,75,957 units while exports up 40% at 15,134 units.
- SML Isuzu: Overall sales down 1% at 516 units
- Tata Motors: Overall sales up 21% at 49,650 units. Domestic sales down 4% at 47,859 units. Commercial vehicle sales down 2% while Passenger Vehicle sales down 8%
Pledge Share Details
- Chambal Fertilisers & Chemicals: Promoter Zuari Global created a pledge of 32 lakh shares on November 27.
- Sun Pharma Advanced Research Company: Promoter Raksha Valia revoked pledge of 34 lakh shares on November 26.
- Adani Ports & SEZ: Promoter Adani Tradeline revoked pledge of 4.24 lakh shares on November 26.
- JSW Energy: Promoter Indusglobe Multiventures revoked pledge of 2.26 crore shares on November 27.
Who’s Meeting Whom
- Endurance Technologies: To meet UTI Mutual Fund on December 2.
- Mahanagar Gas: To meet First State Stewart Asia on December 4.
- ABB Power Products And Systems India: To meet ICICI Prudential Mutual Fund and IIFL on December 2.
- United Spirits: To meet Alchemy Capital Management on December 2.
- Tech Mahindra: To participate in Nomura Investment Forum 2020 on December 2 and Jefferies India ESG Summit on December 7.
- Trident: To participate in Asian Markets Securities (AMSEC) conference on December 2.
- Welspun India: To participate in Asian Markets Securities conference on December 3.
- Cipla: To participate in FIL India Virtual Trip 2020 on December 2.
- Tata Coffee: F Born AG sold 22.21 lakh shares (1.19%) at Rs 105.16 per share.
- Praj Industries: Tata Capital Financial Services sold 11.64 lakh shares (0.64%) at Rs 91.16 per share.
- Snowman Logistics: Adani Logistics sold 11.56 lakh shares (0.69%) at Rs 56.73 per share.
- Move Into Short-term ASM Framework: Action Construction Equipment, Nila Infrastructures, Puravankara, BMW Industries, JTL Infra, Kovai Medical Center & Hospital, Udaipur Cement Works, Action Construction Equipment.
- Move Out Of Short-term ASM Framework: Aarti Surfactants, Snowman Logistics, Inox Wind
- Move Into ASM framework: Aarti Surfactants, Shivam Autotech, Dhani Services, The Orissa Minerals Development Company, Housing Development and Infrastructure Limited.
- Price Band Revised From 10% To 5%: Jai Balaji Industries.
- Price Band Revised From 20% To 10%: Action Construction Equipment, Dhani Services.
- LG Balakrishnan & Bros: Promoter V Rajvirdhan sold 53,000 shares on November 27.
- Asian Granito India: Promoter Kamleshbhai Bhagubhai Patel acquired 25,000 shares on November 27.
Money Market Update
- The rupee gained the most in nearly a month, ending stronger at 73.63 against the U.S. Dollar, as compared to Friday's close of 74.05.
- The currency was the best performer in Asia on Tuesday.
- Nifty December futures ended at 13,136; premium of 27 points
- Nifty December futures shed 0.8% and 91,350 shares in Open Interest
- Nifty Bank December futures ended at 29,862; premium of 45 points
- Nifty Bank December futures added 3.4% and 48,250 shares in Open Interest
Nifty: December 3 Expiry
- Maximum Open Interest on Call side at 13,500 strike (38.1 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (39.6 lakh shares)
- Active Options: 13,400 Call (+13.2 lakh shares) and 13,000 Put (+19.1 lakh shares)
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 13,000 strike (28 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (26.8 lakh shares)