All You Need To Know Going Into Trade On Jan. 9

Asia stocks rallied, tracking gains in American equities, after the U.S. and Iran appeared to be stepping back from a deeper military conflict. Havens from the yen to Treasuries held losses and oil steadied after its slide.

Shares rose in Japan and South Korea, with stocks in Australia higher along with bond yields, as risk appetite spread to Asia. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.7 percent to 12,153 as of 6:58 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 Index earlier rose with Treasury yields as President Donald Trump’s measured remarks on Iran suggested tensions were easing.
• Federal Reserve officials Richard Clarida, John Williams, James Bullard and Charles Evans speak on Thursday. The U.S. monthly non-farm employment report is due Friday.
• Oil was steady near $60 a barrel, while gold held at $1,557.08 an ounce.

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Brokerage Radar

HSBC on Voltas

• Maintain Buy; hike target price to Rs 735 from Rs 720.
• Despite a strong 2019 base, expect room AC industry to post double-digit growth in 2020. Voltas to outperform industry.
• Narrative of increasing competitive pressure looks overplayed, expect margin improvement for room AC segment.
• Expect strong scale up in projects business and Beko joint venture.

UBS on Motherson Sumi

• Downgrade to Neutral from Buy; hike target price to Rs 155 from Rs 140.
• Recent uptick in share price factoring in all positives.
• Expect a turn around in Samvardhana Motherson Peguform but muted medium-term growth.
• Indian car recovery and BS-VI ASP growth to drive robust FY21 growth.

Citi on ICICI Securities

• Maintain Sell; hike target price to Rs 350 from Rs 200.
• Stepping up client acquisition and engagement.
• Near-term outlook to be aided by issues faced by competitors and easing base.
• Valuations are steep in context of an uncertain macro outlook
• Hike EPS estimates by 9-15 percent for FY20-22 on lower tax rate and higher client addition.

HSBC on Finolex Industries

• Maintain Buy; hike target price to Rs 710 from Rs 680.
• Decline in raw material prices to help PVC resin earnings.
• Pipes business should recover too post extended monsoon.
• PVC remains the most resilient product chain.

Stocks To Watch

• Bharti Airtel launched qualified institutional placement to raise Rs 14,400 crore at an indicative floor price of Rs 435 – discount of 5.2 percent to last closing. Fund raise via equity share at indicative floor price would lead to an equity dilution of 6.1 percent on the expanded equity base. The company will also be raising $1 billion via issue of foreign currency convertible bonds with a green-shoe option to raise another $250 million. Proceeds of the issue will be used by the company for payments of adjusted gross revenue dues, to pay debt and for general corporate purpose. In the third quarter of fiscal year 2020, Bharti Airtel added 2.1 crore 4G users – most in at least the last nine quarters.
• SBI, Sunteck Realty: SBI launched residential builder finance loans with buyer guarantee. Bank has signed a memorandum of understanding with Sunteck Realty for financing three residential projects, said Rajnish Kumar, chairman of SBI. He also stated that the product aims at reducing the chances of insolvency petitions in residential projects. Product is to safeguard home buyers financially, with focus on affordable housing of up to Rs 2.5 crore.
• Adani Green Energy Provisional Q3 Update: Solar PAF at 97.3 percent versus 99.2 percent (year-on-year)-Reduction in average portfolio plant availability was seen due to water logging as a result of heavy rainfall at Kamuthi Solar plant. Solar operational capacity rose 13 percent to 2148 megawatt (AC) and up 15 percent at 2803 MW (DC). Wind Portfolio Capacity Utilisation Factor was at 21.5 percent versus 8.33 percent. Wind operation capacity rose 2 times to 122 MW.
• Alembic Pharma’s joint venture Aleor received zero observations by U.S. Food and Drug Administration for its formulation manufacturing facility in Gujarat. Inspection was carried on from Jan. 6-8. Alembic Pharma has 60 percent stake in the joint venture, while the remaining stake is owned by Orbicular.
• Reliance: Jio launched voice and video calls through WiFi at no additional cost.
• Vedanta: Board approved raising capital via non-convertible debentures aggregating to Rs 2,000 crore. Supreme Court agreed to hear the company’s plea on Goa mine lease. (Bloomberg)
• Sintex Industries defaulted on payment of debt interest aggregating to Rs 5.93 crore, which was due on Jan. 8.
• CSB Bank: V Maheswari has opted for voluntary retirement and will step down from the post of chief financial officer with effect from Feb. 4. BK Divakara has been appointed to become the interim CFO.
• Sadbhav Engineering: Board of Directors of IndInfravit Trust approved preferential issue of 18.88 crore units at Rs 116.75 per unit aggregating to Rs 2,204.82 crore for the company and preferential issue of up to 6.21 crore units at Rs 116.75 per unit aggregating to Rs 725 crore to Sadbhav Infraprojects. Company expects to receive stake sale proceeds for certain road projects on Jan. 31.
• HFCL will acquire 15 percent stake in Nivetti for Rs 16 crore. Target company belongs to the networking and cyber security industry.
• Coffee Day Enterprises appointed Albert Hieronimus as additional director of the company with effect from Jan. 17.
• NCLT has warned Jet Airways Committee of Creditors of contempt of proceedings. (PTI)

• Strides Pharma Sciences: R Ananthanarayanan was appointed new managing director and chief executive officer of the company with effect from January. The company’s founder and former Chairman and MD Arun Kumar to become Chairman with effect from April 1.

Default Disclosures

• DB Realty default on loans from financial institutions and banks stand at Rs 240.79 crore as on Dec. 31. Total financial indebtedness at Rs 1,001.89 crore.

Pledge Share Details

• Ajanta Pharma promoter Ravi Agrawal revoked pledge of 11.3 lakh shares from Dec. 31-Jan. 3.
• Omaxe promoter Guild Builder revoked pledge of 3.46 lakh shares on Dec. 31.

Trading Tweaks

• Vakrangee to move into ASM Framework.
• Gujarat Sidhee Cement, Centrum Capital, Saurashtra Cement to move into short term ASM Framework.
• Bhageria Industries, Gateway Distriparks, Hisar Metal Industries to move out of short term ASM Framework.
• Somany Home Innovation price band revised to 10 percent.
• Karda Constructions price band revised to 5 percent.

Who’s Meeting Whom

• IGSEC Heavy Engineering to meet HDFC MF on Jan. 10.
• Affle to meet Edelweiss Broking on Jan. 10.

Money Market Update

• The rupee closed at 71.71/$ versus 71.83/$ on Tuesday.

F&O Cues

Index Futures

• Nifty January futures closed at 12063.5, premium of 38.2 versus 53.8 points.
• Nifty January futures open interest unchanged.
• Nifty Bank January futures closed at 31444.05, premium of 70.45 versus 93.4 points.
• Nifty Bank January futures open interest up 15 percent, adds 2.1 lakh shares in open interest.

Options

• Nifty PCR at 1.24 versus 1.18 (across all series).

Nifty Weekly Expiry: Jan. 9

• Max open interest on call side at 12,200 (29.5 lakh shares).
• Max open interest on put side at 12,000 (23.2 lakh shares).
• open interest addition seen at 11,800P (+5.5 lakh shares), 11,900P (+5.4 lakh shares), 12,000C (+3.5 lakh shares).

Nifty Monthly Expiry: Jan. 30

• Max open interest on call side at 12,500 (24.7 lakh shares).
• Max open interest on put side at 12,000 (39.4 lakh shares).