Brokers watch their screens during trading hours inside a dealing room. (Photographer: Abhijit Bhatlekar/Bloomberg News)

All You Need To Know Going Into Trade On Jan. 03 

U.S. stock-index futures tumbled and Asian stocks looked set to decline after Apple Inc. added to global growth concerns by cutting its guidance.

Australian shares gained at the open as oil producers rallied after a report that Saudi Arabia lowered oil exports, fueling a surge in the price of crude and lifting U.S. energy shares. Treasuries advanced and won’t trade in Asia Thursday as Japanese markets are shut.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.23 percent to 10,855.50 as of 6:43 a.m.

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BQ Live

Here’s a quick look at all that could influence equities today.

U.S. Market Check

  • U.S. stocks started the new year with a modest rebound from the worst December rout since the Depression. Oil rallied as Saudi Arabia cut exports.
  • The yield on 10-year Treasuries fell three basis points to 2.66 percent, its fifth straight decline.

Also read: iPhone Suppliers Slide as Apple Cuts Forecast

Asian Cues

  • Australia’s S&P/ASX 200 Index rose 0.9 percent.
  • Futures on Hong Kong’s Hang Seng Index rose 1.3 percent.
  • S&P 500 futures dropped 1.2 percent.

Also read: China’s Key Things to Watch in 2019, With or Without a Trade War

Commodity Cues

  • West Texas Intermediate crude rose 2.5 percent to $46.55 a barrel.
  • Brent crude ended higher for the third day, closed 2.1 percent higher at %54.91 per dollar.
  • Gold futures rose 0.2 percent to $1,283.50 an ounce, reaching the highest in almost seven months on its fifth consecutive advance.

Also read: Oil Companies Will Not Recoup Losses From Re 1 A Litre Subsidy On Petrol, Diesel

London Metal Exchange

  • Aluminium ended 2.65 percent lower.
  • Copper ended lower for the second day, down 2.06 percent.
  • Tin ended 0.03 percent higher.
  • Lead ended lower for the second day, down 3.27 percent.
  • Nickel halted a three-day decline, ended 1.73 percent higher.
  • Zinc ended 2.31 percent lower.

Indian ADRs

All You Need To Know Going Into Trade On Jan. 03 

Stocks To Watch

  • Tata Power: Maharashtra Electricity Regulatory Commission gave the green signal to Mumbai Transport Undertaking ‘BEST’ to extend its existing 667MW power purchase agreement with the company for five years till March 2024. This power will be supplied from Tata’s Trombay Thermal and Hydro Plants.
  • Asian Granito clarified that it has already paid Rs 3.5 crore differential duty under protest based on the findings of Directorate of Revenue Intelligence and cannot assess the impact of such default at this stage.
  • Advanced Enzymes Technologies: Piyush Rathi resigned from Chief Business Ofiicer’s post with effect from Jan. 2.
  • Equitas Holdings: Equitas Small Finance Bank hiked its interest rate across various tenors with effect from January 1. For deposits from Rs 30-50 crore the rate stands at 7.5 percent.
  • Bank of India’s board approved increasing authorized capital from Rs 3,000 crore to Rs 6,000 crore and capital raising plans via equity shares and tier-I and tier-II capital bonds, while the shareholders have given their nod in respect issue of preferential shares to the government for Rs 10,086 crores.
  • Autoline Industries entered into an investment contract with IndiaNivesh Renaissance Fund wherein the fund will invest Rs 35 crore in the company.
  • Jindal Steel and Power named Sudanshu Saraf as CEO of steel operations with effect from Jan. 1.
  • S Chand and Company extended its first tranche investment from Dec. 31 to Jan. 31 due to certain precedent conditions not yet completed by its target company Chetna Publications LLP.
  • ICRA revised its outlook for Motherson Sumi Systems from ‘Positive’ to ‘Stable’ across various rated instruments worth Rs 1,808 crore.
  • Indian Oil Corporation said it did not plan to recover the losses incurred due the government’s decision in October asking the fuel retailers to cut gasoline and diesel prices by Rs 1 per liter says Chairman Sanjiv Singh. (Bloomberg News)
  • Public Sector Bank Update: The cabinet approved the merger of Vijaya Bank and Dena Bank with Bank of Baroda.

Also read: Bank Of Baroda Announces Swap Ratios For Merger With Dena Bank, Vijaya Bank

Telecom October 2018 Subscriber Data

  • Reliance Jio’s active subscribers increased by 84.6 lakh – lowest since June 2018
  • Airtel’s active subscribers increased for the first time in four months by 33.7 lakh.
  • Vodafone Idea’s active subscribers fell by 30.1 lakh – for sixth straight month.
  • Reliance Jio was the only private player to add Rural Subscribers in October
  • Rural Subscribers of Jio increased by 64 lakh, i.e., 61 percent of net additions.
  • Telecom operators yet to see the impact of minimum recharge pack introduction and new KYC process. Impact to be visible from the month of Nov’18.

Source: TRAI

Earnings To Watch

  • GM Breweries

Bulk Deals

Triveni Turbine

  • Nalanda India Fund sold 51.5 lakh shares or 1.56 percent equity at Rs 103 each.
  • SBI MF acquired 51.3 lakh shares or 1.55 percent equity at Rs 1,030 each.

Trading Tweaks

  • ONGC ex-date for share buy back.
  • Techno Electric & Engineering Company record date for share buy back.
  • Kellton Tech Solutions, Axtel Industries to move in to ASM Framework.
  • Kellton Tech Solutions price band revised to 10 percent.

Who’s Meeting Whom

  • JMC Projects to meet Sundaram AMC on Jan. 3.

Insider Trading

  • Confidence Petroleum India promoter Confidence LPG Bottling acquired 1.33 lakh shares from Dec. 28-31.
  • Jindal Stainless promoter Abhuday Jindal sold 24,000 shares from Dec. 31-Jan. 1.

Money Market Update

  • The rupee on Monday closed at its highest intraday loss in a month and fell 1.06 percent to 70.17/$. It closed at 69.43/$ on Tuesday.

Also read: ‘Flash-Crash’ Moves Hit Currency Markets 

F&O Cues

  • Nifty January futures closed trading at 10831, premium of 38 points.
  • Max open interest for January series at 11,200 strike value call (open interest at 32 lakh shares)
  • Max open interest for January series at 10,500 strike value put (open interest at 40.7 lakh shares)
All You Need To Know Going Into Trade On Jan. 03 

Stocks In F&O Ban

  • Adani Power

Put-Call Ratio

  • Nifty PCR at 1.47 vs 1.57.
  • Nifty Bank PCR at 0.84 from 1.15.
All You Need To Know Going Into Trade On Jan. 03 

Brokerage Radar

Stewart & Mackertich on Federal Bank

  • Initiated ‘Buy’ with a price target of Rs 121.
  • Expanding reach beyond Kerala, to give bank the much-needed growth and diversification.
  • Increase in Net Banking to further reduce cost to income ratio.
  • Positives: clean books, RoE improvement and focus on various verticals.

HSBC on Indian Tractor Industry

  • Tractor growth is slowing down, but still remains healthy led by few key states.
  • Channel inventory is even lower than previous year and EMI collections robust.
  • Contrary to market fears, rural demand remains robust.
  • Escorts: Maintained ‘Buy’; hiked price target to Rs 980 from Rs 950.
  • M&M: Maintained ‘Buy’; cut price target to Rs 960 from Rs 980.

Morgan Stanley on Bank of Baroda

  • Maintained ‘Underweight’ with a price target of Rs 95.
  • Announced swap ratios implies 27 percent and 6 percent lower valuation for Dena Bank and Vijaya Bank respectively.
  • Expect 30 percent dilution for BoB and trailing BVPS accretion of around 15 percent.
  • Expect BoB to see material moderation in credit costs, but PPoP (pre-provisioning operating profit) margin recovery will be relatively.

JPMorgan on Bank Of Baroda

  • Maintained ‘Neutral’ with a price target of Rs 100.
  • Merger swap ratio alleviates pricing concerns.
  • Merger synergies will take a long time to play out.
  • Believe next round of PSB mergers is likely to follow only post-elections.

Citi on Godrej Consumer

  • Maintained ‘Neutral’ with a price target of Rs 785.
  • Company is taking steps to regain earnings momentum.
  • Expect slight improvement in the second half; business volatility should continue.
  • Innovation segment to contribute 10-11 percent of total sales given aggressive moves by company.

Morgan Stanley on Telecom

  • Jio continued to garner disproportionate share in industry additions.
  • As smaller operators are left with no subs it will be interesting to see market share shifts.