All You Need To Know Going Into Trade On December 8
Sunrise over buildings on the London skyline. (Photographer: Simon Dawson/Bloomberg)

All You Need To Know Going Into Trade On December 8

Asian markets have opened lower this morning as swelling Covid-19 infections led to an overnight drop in U.S. equities.

Benchmark indices in Japan and South Korea are trading lower while those in Australia are little changed.

The U.S. Dollar has held gains against major peers while oil prices fell.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 13,431 as of 7:35 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 65 points lower. The index fell 0.5% on Monday. The Nasdaq ended higher for the ninth straight day, its longest winning streak in over a year.
  • The Yen was little changed as Japanese Prime Minister Yoshihide Suga unveiled 40 trillion yen in fiscal measures as part of a stimulus for economic recovery.
  • U.S. lawmakers are set to postpone what had been a Friday night deadline for passing a stimulus bill as Republican and Democratic negotiators struggle to reach an agreement.
  • “This selective mindset is just the market sitting on its hands waiting for the next shoe to drop,” Chris Weston of Pepperstone Group wrote in a note.
  • Yield on the 10-year treasuries stood at 0.93%.
  • West Texas Intermediate crude fell 0.4% to $45.59 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On December 8

Stocks To Watch

  • Canara Bank: Launches Rs 2,000 crore QIP on Monday. Floor price of Rs 103.5 is a 12% discount to Monday's closing price. The board will meet on December 10 to decide the issue price as well as share allotment.
  • Titan: Board to request the management of Favre Leuba AG (FLAG) to scale down the operations of the company substantially with immediate effect so that further investments from Titan to FLAG cease as early as possible. FLAG is a wholly-owned subsidiary of Titan and was incorporated in 2012. Titan has made a series of investments aggregating to approximately Rs 275 crore in FLAG, over a period of time for the revival of the Favre Leuba brand and its growth plans however the current COVID-19 pandemic has severely impacted these revival plans and prospects. Titan will make provisions in the current financial year for additional impairments, in addition to the 145 crore already provided for earlier.
  • NBCC (India): Secured the total business worth Rs 324.81 crore in the month of November, 2020.
  • Gujarat State Fertilizers & Chemicals: Mukesh Puri, Additional Chief Secretary to Government, Urban Development & Urban Housing Department, appointed as Managing Director of the company.
  • HCC: Defaults on payment of loan worth Rs 1,836.1 crore. Total amount outstanding as on date for fund-based loans at Rs 3,742.4 crore. Total financial indebtedness of the listed entity including short and long-term debt at Rs 10,056.2 crore.
  • Sun Pharma: Promoter Shanghvi Finance pledged 10 lakh shares on December 3 in favour of Deutsche Investments India as a security for loan availed by a Subsidiary Company.
  • Cupid: Received a purchase order from Uttar Pradesh Medical Supplies Corporation for supply of Covid-19 Antigen Based Rapid Test Kits worth Rs 8.27 crore.
  • Coffee Day Enterprises: Malavika Hegde - Director of the company, has been appointed as CEO from December 7. The Board of Directors also appointed three Additional Directors to the board of the company in the capacity of Non-Executive - Independent Directors.
  • Skipper: Acuite Ratings & Research has reaffirmed the long-term rating of A- and the short term rating of A2+ on the bank facilities of the company worth Rs 1,950 crore. The outlook is 'Stable'.

Brokerage Radar

Credit Suisse On Dixon Technologies

  • Initiate coverage with outperform rating
  • Price target of Rs 14,000
  • Bullish despite recent outperformance based on strong near-term growth momentum, still-reasonable valuation on FY23E basis and incremental PLI approvals
  • Multiple opportunities for business growth can unfold from its current platform
  • Expect revenue, Ebitda, PAT CAGR of 26%, 25% and 34% respectively over FY20-23 on visible capacity addition, new customer sign-ups, margin accretion and visible opportunities such as PLI for mobile

Credit Suisse On Amber Enterprises

  • Initiate coverage with outperform rating
  • Price target of Rs 3,000
  • Strong extant platform in terms of customers, manufacturing and track record
  • Valuations reasonable for platform, growth outlook, return ratios and cash flow
  • Has growth opportunities from a growing domestic AC market, government policy support, increasing wallet share from customers
  • See revenue, PAT CAGR of 15% and 28% respectively over FY20-23

Antique Stock Broking On Aditya Birla Fashion

  • Initiate coverage with buy rating
  • Price target of Rs 207
  • Current impact on operations due to Covid-19 provides a good entry opportunity
  • Dominating brands in apparel and value and fresh offering in pantaloons will ensure a faster recovery in the post Covid environment
  • Ramp up of innerwear and ethnic wear will aid medium to long-term growth
  • Rights issue and Flipkart's equity infusion will address concerns on rising debt levels and liquidity
  • Like consistent execution across all business segments, best in-class parentage, strong platform of established brands and sound management capabilities

Emkay On Titan

  • Buy rating maintained
  • Price target of Rs 1,450
  • Plan to scale down operations of Favre Leuba is a positive move
  • Exit from Mont Blanc, another loss making venture are steps in the right direction
  • Exits should improve overall profitability and enable titan to invest in its core growth business

Pledge Share Details

  • Future Retail: Promoter Future Corporate Resources invoked pledge of 10.02 lakh shares between November 25-26.
  • Jindal Steel & Power: Promoter Danta Enterprises revoked pledge of 2 lakh shares on December 1.
  • Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 9 lakh shares on December 4.
  • Asian Granito India: Promoter Kamleshbhai Patel created a pledge of 75,000 shares on December 4.

Who’s Meeting Whom

  • Amber Enterprises: To meet JP Morgan on December 9 and Investec on December 15.
  • Asian Paints: To meet Sylebra Capital on December 8.
  • Tata Steel: To meet ICICI Prudential Mutual Fund on December 8.
  • CEAT: To meet Edelweiss on December 8.
  • Narayana Hrudayalaya: To meet Franklin Templeton Investments on December 10.
  • Bajaj Finance: To meet Nordea Investments Management AB on December 8, Acacia Partners on December 9, William Blair Funds on December 10, GIC on December 15, and Segantii Capital Management on December 16.

Bulk Deals

  • SMS Pharmaceuticals: Promoter Vamsi Krishna Potluri bought 10.93 lakh shares (1.29%) at Rs 97.67 per share and 42.24 lakh shares (4.99%) at Rs 94.7 per share. Promoter Annapurna Talluri sold 5.06 lakh shares (0.60%) at Rs 97.7 per share. Promoter Veeravenkata Satyanarayana Murthty Talluri sold 42.42 lakh shares (4.99%) at Rs 94.7 per share and 5.86 lakh shares (0.69%) at Rs 97.65 per share.
  • Technocraft Industries (India): Abakkus Emerging Opportunities Fund - 1 bought 5.74 lakh shares (2.35%) at Rs 311 per share. DSP Emerging Stars Fund sold 6.81 lakh shares (2.79%) at Rs 311.03 per share.
  • Astra Microwave Products: Emerald Company bought 4.35 lakh shares (0.50%) at Rs 127.24 per share.

Trading Tweaks

  • AGM: The State Trading Corporation of India, The Orissa Minerals Development Company, The Ruby Mills
  • Move In To ASM Framework: HSIL, Ramky Infrastructure, BGR Energy Systems, Kaya, DCW, CG Power And Industrial Solutions, Indiabulls Integrated Services.
  • Move In To Short-term ASM Framework: Sadbhav Engineering, Sadbhav Infrastructure Project.
  • Move Out Of Short-term ASM Framework: Reliance Capital.

Insider Trades

  • Arvind: Promoter Arvind Farms sold 3 lakh shares on December 4.
  • Max Financial Services: Promoter Max Ventures Investment Holdings sold 3 lakh shares between December 3-4.
  • Panama Petrochem: Promoter Hussein Rayani acquired 97,446 shares between December 3-7.
  • Sequent Scientific: Promoter Chayadeep Ventures sold 53,246 shares on December 2.
  • Godrej Agrovet: Promoter Godrej Industries acquired 36,342 shares on December 1-2.

As Reported On December 7.

Money Market Update

  • The currency ended at 73.90 against the U.S. Dollar on Monday, as compared to Friday's close of 73.80.
  • The rupee was the second worst performer in Asia on Monday.
All You Need To Know Going Into Trade On December 8
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