All You Need To Know Going Into Trade On December 4
An empty Monastiraki square during lockdown in Athens, Greece. (Photographer: Loulou D’Aki/Bloomberg)

All You Need To Know Going Into Trade On December 4

The final trading day of the week is witnessing Asian markets trading mixed in early trading.

Benchmark indices in Japan and Australia are little changed while equities in South Korea are outperforming. The treasuries have edged higher while the U.S. Dollar has held losses.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 13,255 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 70 points. The index gained 0.3% on Thursday.
  • California said that it will lock down its economy if critical-care capacity reaches its limit due to Covid-19.
  • Uncertainty remains about a U.S. stimulus package but chances are rising for a deal by the end of the year.
  • “If we do see earnings growth start to pickup, perhaps 25% to 30% on the S&P 500 next year, and if we see rates remain low and stimulus in place, that remains a good backdrop for risk assets,” Mona Mahajan, investment strategist at Allianz Global Investors, said on Bloomberg TV.
  • Yield on the 10-year treasuries stood at 0.91%.
  • West Texas Intermediate crude rose 0.2% to $45.73 per barrel. Prices edged higher after OPEC+ reached an agreement to ease its oil-output cuts next year, more gradually than previously planned.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On December 4

Stocks To Watch

  • Granules India: The ANDA filed by its wholly-owned subsidiary for Penicillamine capsules got the approval from the U.S. FDA. The product will be manufactured at the company's facility in Virginia and will be launched shortly. The drug is used in the treatment of Wilson's disease and in patients with severe and active rheumatoid arthritis. For the most recent 12 months ending in October, the Penicillamine capsules had overall sales of 67 million dollars for the U.S. Market.
  • Vedanta: Moody's has downgraded the Vedanta Resources' Corporate Family Rating to B2 from B1. The firm said that all ratings remain under review for further downgrade. Moody's has cited a persistently weak liquidity profile and high refinancing risks amid growing signs of an aggressive risk appetite as some of the key reasons for the downgrade.
  • Bharti Airtel: Adds 3.77 million new customers in September while Reliance Jio adds 1.46 million. Vodafone Idea looses 4.65 million subscribers. Bharti Airtel adds more customers than Jio for the first time since the launch of Jio in 2016.
  • Orient Cement: Enters into a share purchase agreement to acquire 26% stake in AMPSolar Systems for putting up a solar power plant with a capacity of 13.5 MW, under the captive scheme. The total consideration for the acquisition is Rs 4.05 crore. The acquisition is projected to be completed over the next six months.
  • Mindspace Business Parks REIT: To consider fund raising up to Rs 200 crore via debentures on a private placement basis on December 8.
  • Bank of India: Fitch Ratings has affirmed the bank's Long-Term Issuer Default Rating at 'BBB-', with a Negative Outlook. The agency also affirmed the bank's Viability Rating at 'b+'.
  • GHCL: India Ratings & Research has affirmed A1+ rating for issuance of Commercial Paper of Rs 100 crore.
  • Adani Ports And Special Economic Zone: SBICAP Trustee Company acquired 6 lakh shares.
  • Adani Enterprises: SBICAP Trustee Company acquired 40 lakh shares.
  • Birla Corporation: Has approved the allotment of 1,500 secured, unlisted, redeemable, Non-Convertible Debentures of Rs 10 lakh each aggregating to Rs 150 crore on private placement basis.
  • AU Small Finance Bank: CRISIL assigns FAA+/stable rating for the lender's fixed deposit program worth Rs 40,000 crore.
  • Punjab National Bank: Fitch Ratings has affirmed bank's Long-term Issuer Default Rating at 'BBB-', with a Negative Outlook. The agency has also affirmed the bank's Viability Rating at 'b', Support Rating Floor at 'BBB-' and Support Rating at '2'.

Brokerage Radar

Morgan Stanley on HDFC Bank

  • Maintain overweight rating; TP of Rs 1550
  • Management mentioned no significant impact following recent RBI restrictions
  • On digital strategy, the bank stated its well placed given its early start on various initiatives
  • The bank believes it is well placed to maintain its dominance in the payments business
  • Management expects UPI, 'buy now, pay later' and related products to expand the marketplace
  • Its UPI to not necessarily disrupt credit cards
  • HDFC sees opportunity in RBI’s new umbrella initiative to promote retail digital payments

Nomura On UltraTech

  • Maintain buy; TP stands at Rs 6100
  • Domestic cement capacity to increase by ~18%
  • Expansions to address shortfall and boost UT’s presence in East and central India
  • Expansion in East to boost growth; intense competition could lower profitability
  • Robust demand, higher realizations and cost saving projects to offset cost inflation
  • Key downside risks includes slower-than-expected cement demand recovery and lower cement prices
  • Sharp increase in operating costs also adds up in downside risk

Morgan Stanley On Mindtree

  • Maintain equal weight rating; TP of Rs 1335
  • Healthy order book and focus on large deals, strategic accounts
  • Growth geographies could drive industry-leading growth
  • L&T Infotech and Mindtree continue to operate as separate entities
  • Endeavour to sustain margins with growth
  • Company's growth profile is now broadening
  • Verticals like CPG and CMT (outside of the top client) also poised for growth

Pledge Share Details

  • JSW Steel: Promoter Sahyog Holdings created a pledge 1.49 lakh shares on November 27. Promoter JSW Techno Projects Management revoked pledge of 70.70 lakh shares on November 27.
  • Jindal Steel & Power: Promoter Opelina Sustainable Services revoked pledge of 15 lakh shares on November 26.
  • Adani Ports And Special Economic Zone: Promoters Gautam Adani and Rajesh Adani revoked a pledge of 1.04 crore shares on December 2.
  • Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 15 lakh shares on December 2.
  • Asian Granito India: Promoters Bhagubhai Patel and Kamleshbhai Bhagubhai Patel created a pledge of 35,000 shares on December 1.

Who’s Meeting Whom

  • Trident Group: To participate in Textile a New "Darn" organised by Monarch Networth Capital on December 4.
  • Mahindra Lifespace Developers: To meet M3 Investments on December 4.
  • Cipla: To meet Matthews Asia on December 7.
  • ABB Power Products and Systems India: To meet Karma Capital Advisors on December 4.
  • Eris Lifesciences: To participate in Prabhudas Lilladher Pharma Day on December 4.
  • Redington (India): To meet JP Morgan India on December 8 and 9.
  • Just Dial: To attend Edelweiss IT MidCap e-Conference on December 4.

Bulk Deals

ADF Foods:

  • Infinity holdings bought 12 lakh shares (5.99%) at Rs 499.04 per share.
  • Infinity holdings bought 4 lakh shares (2%) at Rs 501.2 per share.
  • Alpana Sanjay Dangi bought 2.21 lakh shares (1.11%) at Rs 499.98 per share.
  • Abakkus Emerging Opportunities Fund sold 1.9 lakh shares (0.95%) at Rs 499 per share.
  • Mishal Ashok Thakkar sold 3 lakh shares (1.5%) at Rs 500 per share.
  • Priyanka Bhavesh Thakkar sold 1 lakh shares (0.5%) at Rs 500 per share.
  • Ebony Advisors sold 4 lakh shares (2%) at Rs 498.75 per share.
  • Authum Investment & Infra sold 4 lakh shares (2%) at Rs 501.2 per share

Other Bulk Deals

  • Sudarshan Chemicals: Fidelity Funds - Pacific Fund bought 5.68 lakh shares (0.82%) at Rs 463 per share. NJR Finance sold 10.90 lakh shares (1.58%) at Rs 463 per share. Promoter Archana Anuj Rathi sold 7.27 lakh shares (1.05%) at Rs 464.34 per share.
  • Reliance Infrastructure: Eaton Vance Structured Emerging Markets Fund sold 14.46 lakh shares (0.55%) at Rs 21.74 per share.
  • Panacea Biotec: Serum Institute Of India sold 3.09 lakh shares (0.51%) at Rs 243.32 per share.
  • HDFC Life Insurance: Promoter Standard Life (Mauritius Holdings) 2006 Ltd. sold 2.77 crore shares (1.38%) at Rs 619.15 per share.
  • Matrimony.com Ltd: White Oak India Equity Fund bought 1.47 lakh shares (0.65%) at Rs 721.40 per share. BNP Paribas Arbitrage bought 2.72 lakh shares (1.20%) at Rs 721.40 per share. CMDB II sold 5 lakh shares (2.20%) at Rs 721.41 per share.

Trading Tweaks

  • AGM: Bedmutha Industries, Eros International Media.
  • Price Band Revised From 10% To 5%: 63 Moons Technologies, AYM Syntex, JSW Ispat Special Products, Refex Industries, Simplex Infrastructures, Vascon Engineers.
  • Price Band Revised From 20% To 10%: Advani Hotels & Resorts India, Goa Carbon, Salzer Electronics.
  • Move In To ASM framework: Simplex Infrastructures, Kirloskar Ferrous Industries.
  • Move In To Short-term ASM Framework: HFCL, Thomas Cook (India), HCL Infosystems, CARE Ratings, Somany Home Innovations.
  • Move Out Of Short-term ASM Framework: IDFC Ltd., NIIT Ltd., Jain Irrigation Systems.

Insider Trades

  • Arvind: Promoters Amardeep Holdings and Arvind Farms sold 1.13 lakh shares on December 1.
  • Aarti Industries: Promoter Valiant Organics sold 14,000 shares on November 27.
  • Godrej Agrovet: Promoter Godrej Industries acquired 14,997 shares between November 26-27.

(As Reported On December 3)

Money Market Update

  • The currency ended at 73.91 against the U.S. Dollar as compared to Wednesday's close of 73.81.
  • The rupee was the worst performing currency in Asia on Thursday.
All You Need To Know Going Into Trade On December 4
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