All You Need To Know Going Into Trade On Jan. 1 
Fireworks explode over the Sydney Harbour Bridge and the Sydney Opera House in Sydney, Australia. (Photographer: Ian Waldie/Bloomberg News)

All You Need To Know Going Into Trade On Jan. 1 

Happy new year!

Most Asian markets are closed, with the U.S. stocks capping one of the best years of the past decade with a slight gain in thin pre-holiday trading.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.71 percent to 12,239 as of 6:50 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.

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

  • The S&P 500 advanced 29 percent in 2019 and a record $5.9 trillion in value was added. The Nasdaq 100 Index notched a 38 percent gain for the year, its best since 2009.
  • Gold looked to cap its best year since 2010, while crude oil pared its rise to 35 percent.
  • European equities slipped Tuesday, but notched a 23% gain in 2019, the most since 2009.

Source: Bloomberg

Datawatch

  • Automakers to release December sales data.

Indian ADRs

All You Need To Know Going Into Trade On Jan. 1 

Stocks To Watch

  • Embassy Office Parks REIT executed agreements with Embassy Sponsor to acquire 0.6 million square feet leasable area at a 9.25 percent initial yield. The development is expected to be completed in the last quarter of 2022-23 and is located in Embassy Manyata business park campus in Bengaluru. Acquisition cost for this transaction is Rs 740 crore which will be funded through additional debt.
  • Sterling & Wilson Solar: Promoters enabled repayment of Rs 1,000 crore from date of listing to Dec. 31. The outstanding loan from date of the listing has fallen to Rs 1,644 crore from Rs 2,563 crore. The promoters have proposed to facilitate repayment of balance outstanding loan amount in three tranches till September 2020.
  • CARE Ratings said that the Securities and Exchange Board of India concluded its adjudication proceedings and has imposed a penalty of Rs 25 lakh on the company. The notice was received from SEBI for proceedings in relation to credit ratings assigned to one of the company's customers and the customer subsidiaries.
  • Adani Green Energy’s arm commissioned its 75-megawatt wind power project having PPA with MSEDCL at Rs 2.85 per unit for 25 years. The commercial sale of power from the project to MSEDCL to commence from Jan. 1.
  • IRCTC, Ircon International: Indian Railways to raise the fare for passengers travelling by ordinary non-air-conditioned class of trains by 1 paisa per passenger kilometre, while hike will be 2 paise for longer distance mail, express trains, according to a statement.
  • PTC India selected as an aggregator under the Ministry of Power’s scheme for the resolution of stressed thermal assets. The scheme is for procurement and supply of 2,500 MW power on medium-term basis for a three-year period. The earlier bid process was cancelled due to lack of response for Discoms in February last year. The bid process for selection of generators to be completed by Jan. 2020.
  • CreditAccess Grameen completed the direct assignment of Rs 435 crore on Dec. 31, which is also the total amount drawn during Dember quarter in the form of Direct Assignment. The company has completed one securitization and four Direct Assignment transactions and have drawn a total of Rs. 816.69 Crore in 2019-20.
  • Yes Bank: CARE Ratings downgraded ratings across various types of bonds aggregating to Rs 21,017 crore. Infra Bonds, Lower Tier II Bonds and Tier II Bonds (Basel III) downgraded to ‘CARE A’ from ‘CARE A+’ with the outlook remaining negative.
  • Lakshmi Vilas Bank’s S. Sundar resigned from chief financial officer’s post.
  • Religare Enterprises extended long stop date for the proposed sale of Religare Finvest and Religare Housing Development Finance to TCG Advisory Services from Dec. 31 to March 3.
  • JSW Steel said that it infused Rs 63.5 crore in Vardhman Industries for a 100 percent stake in the company and now it has become wholly-owned arm of the company.
  • Jagran Prakashan: ICICI Prudential Life Insurance reduced stake from 5.06 percent to 3.02 percent.
  • Premier Explosives has received a contract for the supply of explosives from Jaiprakash Power Ventures for Rs 15.44 crore.
  • Bajaj Electricals to consider raising funds on Jan. 6.
  • Federal Mogul Goetze: Reliance MF reduced stake from 9.17 percent to 6.79 percent on Dec. 27.
  • South Indian Bank: Reference rate for external benchmark linked loans has been reduced from 5.4 percent to 5.15 percent with effect from Jan. 1.
  • Skipper: CARE Ratings downgraded bank facilities worth Rs 1,966 crore to ‘CARE BBB+’ from ‘CARE A’, with outlook changing from Negative to Stable. The revision in the ratings is on account of deterioration in the financial performance of the company in the previous financial year and for first half of the current financial year on account of weak operational performance. There was a decline in the operating income during the period with lower sales from both the engineering and polymer division.
  • Corporation Bank accepted the buyback offer of its wholly-owned arm CorpBank Securities to an extent of 25 percent of its total equity capital.
  • HG Infra Engineering: Rajat Dutta has resigned as a chief operating officer of the company with effect from Dec. 31.
  • Punjab National Bank reduced marginal cost of funds based lending rate across various tenors with effect from Jan. 1. One-month MCLR at 7.5 percent and one-year MCLR at 8.05 percent.

Offerings

  • Mindspace Business Parks REIT has filed a draft offer document for IPO. The company plans to raise Rs 1,000 crore by issuing fresh shares, while the existing shareholders—K Raheja Corporation and Blackstone Real Estate Partners—plans to sell part of their shares via offer-for-sale.

Brokerage Radar

Edelweiss on Amara Raja

  • Maintained ‘Buy’ with a price target of Rs 801.
  • Positioning itself as credible battery management & pack supplier catering to 2-3W & e-rickshaws.
  • Auto replacement and industrials to drive steady sales.
  • Management estimates overall sales to jump two times over next five-to-six years.

On Metals

Edelweiss

  • 2019 dominated by demand woes, price dips and earnings cuts.
  • Favourable macros have changed narrative in past three months.
  • Watch out for potential iron ore disruption in domestic market.
  • Expect 2020 to be better as earnings have bottomed out and demand is likely to improve.
  • Continue to prefer JSPL, Hindalco and NMDC due to volume uptick, stable earnings and benefits from iron ore disruption.

IDFC Securities

  • Demand improvement boosts steel prices further.
  • Domestic steel prices in India rise in Dec with further increase likely in January.
  • Domestic iron ore prices on the rise, global prices range-bound.
  • Aluminium–Partial trade dispute resolution has a positive bearing on prices.
  • Zinc–Still in short supply.

Trading Tweaks

  • Bhageria Industries, Gateway Distriparks, Hisar Metal Industries, Simplex Infrastructures to move into short term ASM Framework
  • Jaypee Infratech, Manaksia Steels, Gayatri Highways, Nitco to move out of short term ASM Framework

Insider Trading

  • Mirc Electronics promoters acquired 10.5 lakh shares on Dec. 27.
  • Sudarshan Chemical Industries promoter Ajoy Rathi sold 4 lakh shares on Dec. 27.
  • Anant Raj promoter Amar Sarin acquired 3.2 lakh shares from Dec. 26-27.
  • UltraTech Cement promoter Pilani Investment sold 1.8 lakh shares from Dec. 26-27.
  • J Kumar Infraprojects promoters acquired 1.5 lakh shares on Dec. 30.
  • Godrej Agrovet promoter Godrej Industries acquired 40,000 shares from Dec. 24-26.

Money Market Update

  • The rupee closed at 71.38/$ versus 71.31/$ on Monday.

F&O Cues

Futures

  • Nifty January futures closed at 12,246.2, premium of 77.8 points versus 73.5 points
  • Nifty January futures OI up 1.3 percent, adds 1.5 lakh shares in OI
  • Nifty Bank January futures closed at 32,366, premium of 204.4 points versus 199 points
  • Nifty Bank Jan futures OI down 6 percent, sheds 82,000 shares in OI

Options

  • Nifty PCR at 1.12 versus 1.39 (across all series)

Nifty Monthly Expiry: Jan. 2

  • Max OI on call side at 12,300 (32.7 lakh shares)
  • Max OI on put side at 12,200 (19.8 lakh shares )
  • OI addition seen at 12,200C (+13.9 lakh shares), 12,250C (+13.2 lakh shares)
  • OI shedding seen at 12,250P (-8.3 lakh shares), 12,200P (-6.8 lakh shares)

Nifty Monthly Expiry: Jan. 30

  • Max OI on call side at 12,500 (21.9 lakh shares)
  • Max OI on put side at 12,000 (34.5 lakh shares)
All You Need To Know Going Into Trade On Jan. 1 

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