All You Need To Know Going Into Trade On December 24
Asian markets have opened higher ahead of the Christmas holiday period. An outline of the post-Brexit deal appears to be soothing investor nerves.
Benchmark indices in Australia, Japan and South Korea have opened higher. Markets on Wall Street ended with modest gains on Wednesday.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.2% to 13,641 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 with gains of 40 points. The index ended 0.4% higher on Wednesday.
- Investors appear to look past President Trump's demand for changes to the pandemic relief package.
- The gap between 5-year and 30-year yields in the U.S. has widened to a four-year high on Wednesday.
- Pfizer and BioNTech have agreed to double their supply of their Covid-19 vaccine to the U.S.
- Yield on the 10-year treasuries stood at 0.95%.
- West Texas Intermediate crude was little changed at $48.09 per barrel.
Get your daily fix of the global markets here.
Stocks To Watch:
- ACC & Ambuja Cement: The Board of Directors of both companies have approved the renewal of the current Technology and Know-How Agreement with Holcim, under which they would pay TKH fees at 1% of net sales each year, to HTL, for a period of 2 years, starting January 01, 2021 on the same terms as the present TKH Agreement.
- Bharat Forge: German Subsidiary companies have reached a settlement with Germany's National Competition Regulator in connection with two separate proceedings. The subsidiary companies have reached a settlement for an aggregate amount of 32 million Euros to be paid over a period of the next five years. The final settlement for one of the subsidiary companies was signed on Wednesday while that for the other two is expected to be signed early next year.
- Dish TV: Cabinet approves proposal for revision of guidelines for obtaining license for providing D2H services in the country, as per PIB. It has also approved revision to norms to allow 100% FDI in the sector. License to be provided for 20 years instead of 10 years. DTH license fee revised to 8% of AGR from 10% earlier. DTH operators willing to share DTH platform and transport stream of TV channels on a voluntary basis will be allowed, as per the statement.
- UTI AMC: UTI Small Cap Fund received over 86,000 applications and collected over Rs 920 crore between December 2-16. The fund will invest the funds in companies that have scalable business models and are run by seasoned managements. Objective of the scheme is to generate long-term capital appreciation.
- CG Power and Industrial Solutions: Inaugurated new Motor manufacturing facility 'Smart LV Motors' at Ahmednagar in Maharashtra on December 21. This is the seventh manufacturing facility of the company in Ahmednagar which is spread over an area of 4,200 square metre. The new facility will manufacture Smart Electric Motors from 75 kW to 1,000 kW.
- Tata Communications: Tata Communications International Pte, a foreign subsidiary of the company, has completed an investment transaction with OASIS Smart SIM Europe SAS resulting in TCIPL becoming the majority shareholder of Oasis and its subsidiary Oasis Smart E-Sim Pte and both Oasis and OSEPL have become subsidiaries of TCIPL and indirect subsidiaries of the company.
- AU Small Finance Bank: Launched its new Mobile Banking App and NetBanking Portal.
- Zee Media Corporation: The Board of Directors has inter-alia approved the terms of raising of fund through issuance and allotment of up to 2,500 secured NCDs of face value of Rs 10 lakh each for cash at par, aggregating to up to Rs 250 crore in one or more series, on a private placement basis. The coupon rate is fixed at 9% per annum.
Jefferies On Indian Real Estate
- Policy steps to reduce developer stress is finally helping
- Stressed project interventions to touch almost 3 lakh units
- Good sales traction continued in December quarter
- Expect unit sales in top-7 cities to build-on current momentum and reach levels of 2018-19 in 2021
- Base case remains for pricing to be largely stable in 2021
- Positive surprise on demand may occour if investor sales rise sharply, possibly driving pricing in H2FY21
- Sobha our prefered pick among developers with higher leverage
Antique Stock Broking On Hindalco
- Buy rating maintained
- Price target raised to Rs 282 from Rs 228
- Novelis profitability to be driven by higher automotive volumes
- Novelis is well positioned to capitalise on the automotive rolled products demand
- Higher margin automotive rolled capacity would increase ~40% post commissioning of new facilities
- Higher spot aluminium prices would aid scrap recycling spreads
- Leverage levels would continue to improve led by operational cash flows
- Raise Ebitda per tonne assumption at Novelis by 7-8% over FY21-23
Emkay On Telecom Subscriber Data
- Sustained momentum in broadband subscriber addition in November, December can potentially lead to another strong quarter for Bharti Airtel
- Jio's gross subscriber addition was below its six-month average
- Consistent growth in wired broadband segment was the only silver lining for Jio
- Both Bharti and Jio gained rural subscribers
- Vodafone Idea's subscriber loss was lowest since March and it seems encouraging
Pledge Share Details:
- Adani Ports And Special Economic Zone: Promoter Adani Tradeline revoked pledge of 29.90 lakh shares between December 21-22.
- Hatsun Agro Product: Promoter C Sathyan revoked pledge of 5.14 lakh shares on December 21.
- Ajanta Pharma: Promoter Aayush Agrawal revoked pledge of 1.94 lakh shares on December 12.
- Olectra Greentech: Promoter Trinity Infraventures revoked pledge of 50,000 shares on December 18.
As Reported On December 23.
- 3i Infotech: Standard Chartered Bank sold 1 crore shares (0.62%) at Rs 5.15 per share.
- Snowman Logistics: Adani Logistics sold 11.36 lakh shares (0.68%) at Rs 53.04 per share.
- Indiabulls Housing Finance: Tower Research Capital Markets India bought 21.75 lakh shares (0.47%) at Rs 197.59 per share and sold 25.34 lakh shares (0.55%) at Rs 198.38 per share.
Who’s Meeting Whom
- Crompton Greaves Consumer Electricals: To meet Rondure Global and AGF on December 24.
- Listing Today: Mrs. Bectors Foods
- Price band revised from 20% to 10%: Borosil Renewables
- Ex-Date Bonus Issue: Valiant Organics
- Move In To ASM Framework: Marksans Pharma
- Move Out Of Short-term ASM Framework: Hinduja Global Solutions, Sutlej Textiles & Industries, Suven Life Sciences
- Filatex India: Promoter Vedansh Bhageria acquired 5 lakh shares on December 22.
- Great Eastern Shipping: Promoter Gopali Mulji sold 15,000 shares between December 21-22.
- Zuari Global: Promoter Adventz Finance acquired 70,282 shares on December 21.
- Olectra Greentech: Promoter Trinity Infraventures sold 45,000 shares on December 18.
- Majesco: Promoters Padma Desai, Girija Ram, Ketan Mehta, Ashank Desai and Radhakrishnan Sundar sold 34.90 lakh shares between December 17-18.
- Chalet Hotels: Promoter Palm Shelter Estate Development LLP acquired 63,000 shares on December 22.
As Reported On December 23.
Money Market Update
- The rupee ended higher on Wednesday at 73.76 against the U.S. Dollar as compared to Tuesday's close of 73.85.
- The currency was the second best performer in Asia on Wednesday.
- Nifty December futures ended at 13,619; premium of 18 points
- Nifty December futures shed 2.1% and 2.3 lakh shares in Open Interest
- Nifty Bank December futures end at 29,941; premium of 58 points
- Nifty Bank December futures shed 0.1% and 1,800 shares in Open Interest
- Nifty Put-Call Ratio at 1.54
- Out of F&O Ban: SAIL, Sun TV
- Stocks In F&O Ban: Canara Bank, PNB
Nifty: December 24 Expiry
- Maximum Open Interest on Call side at 13,700 strike (38 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (38 lakh shares)
- Active Options: 14,000 Call (-11.9 lakh shares) and 13,500 Put (19.3 lakh shares)
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 14,000 strike (29.9 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (48 lakh shares)