All You Need To Know Going Into Trade On December 28
Asian markets have begun the final trading week of 2020 on a positive note. President Donald Trump signed a bill containing $900 billion in pandemic relief and also averted the risk of a partial government shutdown.
Benchmark indices in Japan and South Korea traded with gains this morning. The Bloomberg Dollar Spot Index declined and treasury yields edged higher. Oil pared losses while Gold rose.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.2% to 13,785 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 currently trading with gains of 65 points. The index gained 0.2% in Thursday's truncated session.
- Alibaba will also be in focus after its U.S. listed shares fell the most on record over concerns on China's inquiry into alleged monopolistic practices. On the other hand, the company has boosted its share buyback program to $10 billion.
- Pandemic relief has begun expiring for millions of Americans and a possible government shutdown looms unless Trump signs the pandemic relief and government funding bill.
- Bitcoin continued to rally, surging past the mark of $28,000 for the first time ever.
- Yield on the 10-year treasuries stood at 0.93%.
- West Texas Intermediate crude fell 1% to $47.76 per barrel while Gold rose 0.3% to $1,888/Oz.
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Stocks To Watch
- Coal India: Board accorded in-principle approval to venture into Aluminium Value Chain and Solar Power Value Chain. It has also approved creating Special Purpose Vehicles (SPVs), subject to approval from the Niti Aayog, DIPAM and after feasibility studies and business analysis are completed and financial viability is established for Solar Power Value Chain, New & Renewable Energy business vertical and an integrated aluminium complex, which will be a greenfield project by Central Coalfields.
- Cadila Healthcare: Zydus Cadila submits Phase I and II clinical trial data of ZyCoV-D and has sought approval to begin phase III clinical trials. Immunogenicity in Phase II clinical trial of ZyCoV-D in healthy subjects clearly established as also endorsed by the Independent Data Safety Monitoring Board. The company plans to initiate Phase III clinical trials in around 30,000 volunteers post necessary approvals.
- NIIT: Board approves buyback of 98.75 lakh equity shares of face value of Rs. 2 each. The buyback amounts to 6.97% of the total equity. Buyback price of Rs 240 per share is a 20% premium to Thursday's closing price.
- Westlife Development: Royalty for FY21 and FY22 remains fixed at 4%. The company has opened four new stores post March 2020. Over the last two quarters, the company has seen healthy recovery in business with dine-in building up rapidly, even as its convenience channels continue to grow.
- DLF: DLF Cyber City Developers enters into a securities purchase agreement with Hines to acquire 51.8% stake in Fairleaf for a purchase consideration of approximately Rs 780 crore. The transaction is expected to be consummated in the next quarter, subject to requisite closing conditions, post which Fairleaf will become a wholly-owned subsidiary of DLF Cyber City Developers. DCCDL already holds 48.2% stake in Fairleaf.
- Advanced Enzymes Technologies: To acquire 51% of equity share capital of SciTech Specialities, post which, SSPL will become a subsidiary of the company. The acquisition will be done for a cash consideration of Rs 31.26 crore and is likely to be completed by January 31, 2021. SSPL specialises in effervescent granules and tablets and the acquisition fits with the company's move to expand into the B2C business.
- Lupin: Gets tentative approval from the U.S. FDA for its Efinaconazole Topical Solution, 10%. It is used in the topical treatment of onychomycosis of the toenails. For the 12-months ending September 2020, it had annual sales of $222.9 million in the U.S., as per IQVIA data.
- Dish TV: Gets demand notice worth Rs 4,164.05 crore from the Ministry of Information and Broadcasting. The said amount includes License Fee Payable and accrued interest thereon. The ministry has asked the company to remit the amount within a period of 15 days. The company also said that the amount is further subject to verification and audit and outcome of various court cases pending before the TDSAT, the Jammu & Kashmir Highcourt and the Supreme Court, in the matter of DTH License fee.
- Asian Granito: Expanding export network to over 120 countries from 100. Anti-China sentiments, reduction in gas proces and robust export orders from U.S., Europe, U.K. and the Middle-East are driving the export business in the current fiscal and it is likely to get further momentum in the coming months. Consolidated exports rose to around 17.6% of overall revenue in H1FY21 as compared to 13.8% in H1FY20. Inaugurated 15,000 square feet AGL Export House at Morbi to strengthen the company's international operations.
- Biocon: U.S. FDA informs Biocon Biologics of deferred action on the Biologics License Application (BLA) for MYL-14020, a proposed biosimilar to Avastin. The agency noted that an inspection of the manufacturing facility is required as part of the standard review process. However, due to restruction on travel, the agency is unable to conduct an inspection during the current review cycle.
- Embassy Office Parks REIT: Has completed the acquisition of Embassy TechVillage assets from the Embassy Sponsor, members of the Blackstone group and other selling shareholders for an enterprise value of Rs 9,782 crore ($1.3 billion). The acquisition comprises 6.1 million square feet of completed area, 3.1 million square feet of under-construction area, of which 36% is pre-leased to JP Morgan, and two proposed 518-keys Hilton hotels within the overall ETV campus. With this acquisition, Embassy REIT’s leasable area grows 28% to 42.4 million square feet.
- Balaji Telefilms: Enters into collaboration with Ding Infinity to produce premium shows and films. The company will acquire a minimum of 55% stake for a cash consideration of not more than Rs 5 crore. The acquisition is likely to be completed over the next six months.
- Central Bank Of India: Has entered into a binding agreement to divest its entire equity stake of 64.40% i.e. 1.61 crore shares of face value of Rs 10 each in Cent Bank Home Finance, to Centrum Housing Finance, subject to approvals from regulatory authorities. Aggregate cost of this divestment is about Rs 160 crore.
- UltraTech Cement: The company is considering a proposal to raise funds through the issue of 10,000 rated, listed, non-convertible, redeemable, unsecured NCDs worth Rs 10 lakh each, aggregating to Rs 1,000 crore on a private placement basis, on or after December 30, 2020.
- Power Finance Corporation: The Board of Directors in its meeting scheduled to be held on December 30 may consider a proposal for revision in limits for raising of resources i.e. Revised Market Borrowing program for the Financial Year 2020-21 through issuance of bonds, term loans from Banks/FIs, Commercial Paper etc. from domestic & international markets.
- Reliance Industries: The Company has entered into definitive agreements to acquire the shares held by IMG Singapore Pte. in IMG-R, for a cash consideration not exceeding Rs 52.08 crore. Post completion of acquisition, IMG-R will become a wholly-owned subsidiary of the company and will be rebranded.
- Rupa Company: Has submitted the Scheme of Arrangement between Oban Fashions, wholly-owned subsidiary of the company (Demerged Company) and Rupa Company Ltd. (Resulting Company) to be filed with the National Company Law Tribunal. The Scheme of Arrangement is submitted for demerger of the Demerged Undertaking of Oban Fashions into Rupa & Company on a going concern basis.
- Indian Bank: Has declared the NPA of Pratibha Industries and FEMC-Pratibha Joint Venture as fraud and reported them to the RBI. The two companies belonging to the Pratibha Group have total outstanding dues of Rs 574.66 crore.
- Punjab & Sind Bank: Has declared the NPA Account of Sintex Industries as fraud and reported to the RBl. The company has outstanding dues of Rs 294.49 crore having provisioning of Rs 147.25 crore.
- TD Power Systems: CRISIL has upgraded ratings on the bank facilities availed by the company. The Long-Term Rating of total bank loan facilities has been upgraded to A-/Stable from BBB+/Stable and Short-Term Rating has been upgraded to A2+ from A2.
Emkay On Dhanuka Agritech
- Buy rating maintained
- Price target raised to Rs 890 from Rs 715
- Upgrade earnings estimates as we expect the company to continue to outperform the industry and generate robust cashflow
- Remain constructed due to pipeline of new launches, above industry revenue growth, solid cash generation, robust RoE and attractive dividend yield
- Estimates do not incorporate any demand upside from agri marketing reforms in the medium to long-term
- Raise FY21/22/23 profit estimates by 9%, 10% and 14% respectively
- Raise EPS estimates by 12%, 13% and 16% over FY21-23 due to the share buyback
Prabhudas Lilladher On Endurance Technologies
- Initiate coverage with buy rating
- Price target of Rs 1,478
- Structurally placed to benefit from global automotive trend of light weighting vehicles, machined and EV/hybrids in Europe, dominant positio in suspension of two and three-wheeler segments and huge potential in nascent but technology-enabled businesses
- Stock is attractive given outperformance in medium to long-term led by deeper client penetration levels
- Market share gains in each segment and rising domestic penetration should drive revenue/Ebitda/PAT CAGR of 8.3%/11.4%/15.3% over FY20-23
Pledge Share Details
- Future Retail: Promoter Future Corporate Resources has pledged 9.86 crore shares i.e. 64.84% of the total shareholding of 15.22 crore shares.
- Max Financial Services: Promoter Max Ventures Investment Holdings revoked pledge of 4.80 lakh shares between December 22-23.
- Apollo Hospitals: Promoter PCR Investments revoked pledge of 15.67 lakh shares on December 23.
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 1.11 lakh shares on December 22.
- Adani Ports & SEZ: Promoter Adani Tradeline revoked pledge of 14.58 lakh shares on December 22.
- JSW Energy: Promoter JSW Investments revoked pledge of 16 lakh shares on December 14.
- Motherson Sumi Systems: Promoter Samvardhana Motherson International revoked pledge of 2.76 crore shares on December 23.
As Reported On December 24.
- Sastasundar Ventures: Promoter Luv-Kush Projects bought 1.69 lakh shares (0.53%) at Rs 127.7 per share. Microsec Vision Trust One sold 1.69 lakh shares (0.53%) at Rs 127.7 per share.
- Vedanta: Promoter Vedanta Holdings Mauritius II bought 18.50 crore shares (4.98%) at Rs 159 per share.
- Paisalo Digital: SBI Life Insurance Company bought 38 lakh shares (8.99%) at Rs 490 per share. Elara India Opportunities Fund bought 11 lakh shares (2.60%) at Rs 490 per share. Davos International Fund sold 2.90 lakh shares (0.69%) at Rs 490.01 per share. Antara India Evergreen Fund sold 15 lakh shares (3.55%) at Rs 490 per share. Heshika Growth Fund sold 8 lakh shares (1.89%) at Rs 490 per share.
- Kellton Tech Solutions: Promoter Kellton Wealth Management LLP sold 10 lakh shares (1.04%) at Rs 71.03 per share.
- Mrs. Bectors Food Specialities: Algorismus Advisors LLP bought 4.50 lakh shares at Rs 500 per share and sold 2 lakh shares at Rs 600 per share. Elixir Wealth Management bought 4.60 lakh shares at Rs 575.25 per share and sold 4.50 lakh shares at Rs 576.07 per share. SMC Real Estate Advisors bought 5.29 lakh shares at Rs 573.35 per share and sold 5.44 lakh shares at Rs 573.95 per share. Millennium Stock Broking bought 4.16 lakh shares at Rs 576.70 per share and sold 3.91 lakh shares at Rs 579.64 per share.
Who’s Meeting Whom
- Advanced Enzyme Technologies: To meet InCred AMC and IIFL AMC on December 28.
- AGM: BF Utilities
- Price Band Revised From 20% to 10%: Birlasoft
- Move In To ASM Framework: Birlasoft, Greenpanel Industries.
- Move Out Of ASM Framework: Gayatri Projects, Future Enterprises, EPL Ltd, Oriental Aromatics, Indo Count Industries, Dhani Services.
- Move In To Short-term ASM Framework: Datamatics Global Services, L&T Technology Services.
- Move Out Of Short-term ASM Framework: Cybertech Systems And Software.
- Chambal Fertilisers & Chemicals: Promoter Jyotsna Poddar acquired 15,000 shares on December 23.
- Great Eastern Shipping: Promoter Gopali Mulji sold 10,000 shares on December 23.
- Zuari Global: Promoter Adventz Finance acquired 29,718 shares on December 22.
- Sagar Cements: Promoter RV Consulting Services acquired 17,123 shares between December 22-23.
- NCL Industries: Promoter NCL Homes acquired 19,862 shares on December 22. Promoter NCL Holdings (A&S) sold 76,000 shares on December 22.
- Vardhman Textiles: Promoter Vardhman Holdings acquired 52,003 shares between December 21-23.
- Vardhman Special Steels: Promoter Sachit Jain acquired 14,000 shares between December 22-23.
As Reported On December 24.
Money Market Update
- The rupee ended stronger at 73.54 against the U.S. Dollar as compared to Wednesday's close of 73.77.
- For the truncated week, the currency ended as the second best performer in Asia.
- Nifty December Futures end at 13,760; premium of 11 points
- Nifty December futures shed 3.1% and 3.3 lakh shares in Open Interest
- Nifty Bank December futures end at 30,422; premium of 20 points
- Nifty Bank December futures shed 5.9% and 86,775 shares in Open Interest
- Nifty Put-Call Ratio at 1.49
- Stocks In F&O Ban: Canara Bank, PNB
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 14,000 strike (39.8 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (45.2 lakh shares)
- Active Options: 14,000 Call (+9.9 lakh shares) and 13,700 Put (+15.2 lakh shares)