All You Need To Know Going Into Trade On December 31
Asian markets that are open on the final trading day of the year are drifting lower this morning. Benchmarks in Japan and South Korea are shut on account of the New Year holiday.
Australian stocks are drifting lower, as are those in New Zealand.
The U.S. Dollar continued to weaken, falling to the lowest in two and a half years. Volumes continue to remain thin.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,048 as of 7:05 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 50 points. The index ended 0.2% higher on Wednesday.
- Investors continue to weigh stimulus hopes against negative developments surrounding the pandemic. The MSCI World Index is set to end at or near a record high, with gains of over 14% this year.
- Initial jobless claims will be published in the U.S. later today.
- Bitcoin exteded its record breaking run and its now trading past the $29,000 mark.
- Treasury yields won't trade until market open in London. They ended at 0.92% on Wednesday.
- West Texas Intermediate crude was little changed at $48.34 per barrel.
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Stocks To Watch
- Tata Steel: In its outlook for 2021, MD & CEO TV Narendran said that the company is optimistic about demand for steel in India. The company expects steel demand to grow proportional or higher to the GDP growth in FY22. It also expects global steel prices to remain firm as China is not expected to export large volumes. Demand-supply situation favours steel producers with strong international prices. Iron ore prices have seen a sharp rise and coal prices have softened.
- Vedanta: Has emerged as the highest bidder for the Radhikapur West coal block in Odisha which is at a distance of about 190 km from the company’s Jharsuguda Aluminium Smelter. The mine has total reserves of 312 million tonnes and an approved per annum extraction capacity of 6 million tonnes.
- Adani Green Energy: Adani Solar Energy Kutchh Two Pvt. Ltd., the company’s wholly-owned subsidiary, has commissioned a 100 MWac Solar Power Project at Khirsara, Gujarat, ahead of its scheduled Commercial Operation Date according to its 25-year-long Power Purchase Agreement with the Gujarat Urja Vikas Nigam India. The PPA is priced at Rs 2.44/kWh, as on December 29, 2020. With this commissioning, the company’s total operational renewable capacity grows to 2,950 MWac demonstrating a CAGR of 55% since March 2016.
- FDC: To expand its production capacity by installation of an additional BFS machine at one of the company's existing plant located in Maharashtra. The estimated cost towards the enhancement of production capacity is around Rs 74 crore at first stage and around Rs 26 crore at later stage. The total production capacity of the said plant is likely to be increased to 33% and is likely to be commissioned within 20 months.
- Filatex India: The installation of captive rooftop solar power generation of 1.0 MW at Dahej and 0.4 MW at Dadra has been successfully completed and commenced commercial operation from December 30, 2020.
- Power Finance Corporation: The Board of Directors has revised market borrowing program for the financial year 2020-21 to Rs 1.18 lakh crore.
- The Ramco Cements: The company has invested Rs 2.48 crore in the capital of Lynks Logistics by way of subscribing to 2.48 crore shares of Rs 1 each, through their Rights Issue. Consequently, the total shareholding of the company in Lynks Logistics stands at 49.95 crore shares of face value of Rs 1 each constituting 46.87% of its paid up share capital.
- HSIL: The Board of Directors has decided to close the buyback from closing hours of December 31, 2020. The company has till date bought back 75.99 lakh shares at an average price of Rs 84.12 per share. Accordingly, the company has deployed Rs 63.92 crore, which represents 91.32% of the Maximum Buyback Size of Rs 70 crore.
- Indian Bank: The bank has further raised Tier-1 Capital Fund through Private Placement of Basel-Ill compliant AT-1 Perpetual Bonds aggregating to Rs 392 crore at a coupon of 8.44% per annum through BSE-EBP.
- IFB Industries: The Board of Directors has approved amalgamation of Trishan Metals, wholly owned subsidiary with IFB Industries. The Scheme of Amalgamation will take effect from April 1, 2021.
- Fortis Healthcare: ICRA has upgraded the long-term rating for Line of Credit of SRL Limited, subsidiary, from A- to A. Further the rating agency has upgraded the long-term rating for Line of Credit of SRL Diagnostics, step-down subsidiary, from A- to A.
- United Spirits: CRISIL has reaffirmed its long-term rating of AA+/Positive and short-term rating of A1+ for the total bank loan facilities worth Rs 3,925 crore. Further, the rating agency has reaffirmed AA+/Positive rating for NDCs worth Rs 750 crore and A1+ rating for commercial paper worth Rs 500 crore.
- V-Mart: Has opened four new stores, three in Uttar Pradesh and one in Jharkhand. The company has also closed one store in Odisha. With this the total number of stores increased to 274.
- Fineotex Chemical: Nippon India Mutual Fund has acquired 66.08 lakh shares i.e. 5.96% of the total shareholding.
Pledge Share Details
- Chambal Fertilisers & Chemicals: Promoter Zuari Global revoked pledge of 6.50 lakh shares on December 28.
- The Ramco Cements: Promoter PR Venketrama Raja created pledge of 6.80 lakh shares on December 29.
- Mukand: Promoters revoked 2.75 crore shares on December 29.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 22.10 lakh shares on December 29.
- Adani Green Energy: Promoters Gautam Adani and Rajesh Adani revoked pledge of 3.29 lakh shares on December 29.
As Reported On December 30.
- Centum Electronics: HDFC Mutual Fund bought 4 lakh shares (3.10%) at Rs 421.19 per share and sold 3.72 lakh shares (2.89%) at Rs 420.72 per share.
- Chemcon Speciality Chemicals: Plutus Wealth Management LLP bought 10 lakh shares (2.73%) at Rs 428.52 per share.
- Borosil Renewables: Alpha Leon Enterprises bought 7.26 lakh shares (0.64%) at Rs 304.28 per share and sold 7.19 lakh shares (0.63%) at Rs 307.86 per share.
- GMR Infrastructure: Promoter GMR Enterprises sold 6.50 crore shares (1.08%) at Rs 27.09 per share.
- Southern Petrochemicals: Finquest Securities bought 42 lakh shares at Rs 24 per share. Minal Patel sold 42 lakh shares at Rs 24 per share.
Who’s Meeting Whom
- Max Healthcare Institute: To meet Nomura Financial Advisory on December 31.
- Ex-Date Buyback: Engineers India, Industrial & Prudential Investments.
- Ex-Date Bonus: Pilani Investment and Industries Corporation
- Price Band Revised From 10% To 5%: Borosil Renewables, Olectra Greentech.
- Price Band Revised From 20% To 10%: IFGL Refractories.
- Move In To Short-term ASM Framework: Confidence Petroleum India, CESC Ventures, Rupa & Company, SORIL Infra Resources, Gravita India.
- Move Out Of Short-term ASM Framework: Dollar Industries.
- Move In To ASM Framework: Xelpmoc Design and Tech, Matrimony.com.
- Godrej Industries: Promoter Anamudi Real Estates LLP acquired 12.62 lakh shares between December 23-28.
- Man Infra: Promoter Parag Shah acquired 1.46 lakh shares on December 29.
- West Coast Paper Mills: Promoter Veer Enterprises acquired 15,000 shares between December 28-29.
- Aarti Industries: Promoters Valiant Organics and Chandrakant Vallabhaji Gogri sold 43,221 shares between December 28-29.
- ISGEC Heavy Engineering: Promoter The Yamuna Syndicate acquired 20,000 shares on December 29.
- Nirlon: Promoter Shital Trading & Interiors sold 5,000 shares between December 28-29.
- Cantabil Retail: Promoters Vijay Bansal HUF and Sushila Bansal acquired 10,500 shares on December 28.
As Reported On December 30.
Money Market Update
- The currency ended higher for the fourth straight day at 73.29 against the U.S. Dollar on Wednesday, as compared to Tuesday's close of 73.43.
- Nifty December futures end at 13,978; discount of 3 points
- Nifty December futures shed 20.4% and 16.9 lakh shares in Open Interest
- Nifty Bank December futures end at 31,290; discount of 13 points
- Nifty Bank December futures shed 25.6% and 3.1 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.4
- Enters F&O Ban: Canara Bank
- Out of F&O Ban: SAIL
- Stocks In F&O Ban: Canara Bank, Punjab National Bank
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 14,000 strike (52.1 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (44 lakh shares)
- Active Options: 14,100 Call (+6.4 lakh shares) and 13,900 Put (+18.5 lakh shares)