All You Need To Know Going Into Trade On January 12
Asian equities are mixed this morning after peers on Wall Street fell overnight for the first time in five sessions.
Benchmarks in South Korea are declining while those in Japan, which resumed after a holiday on Monday, are steady. Australian shares were flat.
Investors worry over equities running on stretched valuations at a time when major parts of the world continue to grapple with Covid-19.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, fell 0.1% to 14,481 as of 7:00 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 currently trade with gains of 50 points. The index declined 0.3% on Monday.
- House Democrats on Monday introduced a resolution to impeach Donald Trump for a second time, setting up a vote this week unless Vice President Mike Pence uses his constitutional authority to remove the president.
- Elsewhere, Bitcoin steadied after prices slid as much as 20% on Monday. Some investors have said the digital currency’s recent gains defy logic and the U.K.’s financial watchdog issued a statement that consumers in crypto should be prepared to lose all their money.
- Yields on the 10-year treasuries stood at 1.15% - the highest since March last year. “A higher yield points to higher inflation down the road, which is negative for stocks. We are not there yet, but as the 10-year inches higher, the closer we get,” KC Rajkumar and Jahanara Nissar of Lynx Equity Strategies wrote in a note.
- West Texas Intermediate crude fell 0.2% to $52.17 per barrel.
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Stocks To Watch
- Dr Reddy's Laboratories: Independent Data Safety and Monitoring Board has reviewed the safety data from Phase 2 clinical trial of the Sputnik V vaccine and recommended the phase 3 recruitment and to continue to the trial without any modifications. The DSMB concluded that no safety concerns were identified and that the study has met primary endpoints of safety. The data has been submitted to the DCGI for review and approval to continue phase 3 clinical trials.
- Tata Motors: Jaguar Land Rover reported second successive quarter-on-quarter recovery in retail sales in 2020. The retail sales rose 13.1% to 1.28 lakh units from 1.13 lakh units in the preceding quarter and declined 9% year-on-year during the October-December period. China sales rose 19.1% year-on-year and 20.2% on the prior quarter. Retail sales in North America rose 31.7% and 20.5% in Europe on the prior quarter. However, the luxury carmaker said that sales in America, Overseas and Europe are yet to recover to pre-Covid levels.
- Thyrocare Technologies: Saw significant business revival in Q3 after business activities resumed across all states. The non-Covid business in particular is showing growth after the end of the festive season. Marketing campaigns launched to promote preventive healthcare packages are showing promising results. Q3 in general is observed to be the least contributing quarter to the annual topline historically, though this year, revival of business coupled with aggressive marketing has enabled us to achieve about 34% YoY growth in the quarter. Covid RTPCR tests continue to contribute in terms of volume of tests performed in Q3.
- Tata Communications: Rekha Rakesh Jhunjhunwala acquires 1.12% stake in the company during the October-December period.
- Dishman Carbogen Amcis: Promoter Adimans Technologies to sell up to 60.71 lakh shares of face value of Rs 2 each through an Offer for Sale. The shares to be sold represent 3.87% of the total issued and paid-up equity share capital of the company. The company retains an oversubscription option of 32.14 lakh shares of face value of Rs 2 each or 2.05% of the total equity. OFS for non-retail investors to open on January 12 and for Retail Investors on January 13. The Floor Price for the offer will be Rs 140 per share which is on par with Monday's closing price.
- DCM Shriram: The Board of Directors will consider payment of interim dividend for the financial year 2020-21 on January 19. The record date for the purpose of interim dividend, if approved, will be January 28.
- GMM Pfaudler: A meeting of Board of Directors is scheduled to be held on January 20 to consider and approve payment of third interim dividend for the financial year 2020-21, if any. Record date for the payment third interim dividend, if any shall be January 29, 2021.
- GAIL: A meeting of Board of Directors will be held on January 15 to consider buyback of the fully paid-up equity shares of face value of Rs 10 each and declare interim dividend for the financial year 2020-21.
- SRF: A meeting of Board of Directors is scheduled to be held on January 21 to consider a proposal relating to declaration of second interim dividend for financial year 2020-21. The Record date for the payment of interim dividend, if any will be February 1.
- Force Motors: The Board of Directors has approved the issuance of NCDs of up to Rs 500 crore on private placement basis.
- Union Bank of India: Has allotted unsecured fully paid-up Basel-Ill compliant debt instruments in the nature of Debentures eligible for inclusion in Additional Tier-1 Capital Series XXVlll aggregating to Rs 1000 crore on January 11.
- Greenlam Industries: A company under the name Greenlam Poland LLC has been incorporated on January 8 in Republic of Poland, to carry out the business of marketing and distribution of decorative laminates and other paper and wood based products. Greenlam Asia Pacific, a wholly-owned subsidiary of the company, holds 99% shares in Greenlam Poland LLC, and balance 1% share is held by Greenlam Industries.
- Indo Count Industries: Indo Count Australia, a wholly-owned subsidiary of the company has been voluntarily deregistered by the Australian Securities & Investments Commission on October 7, 2020 as per the intimation received from the ASIC on January 11. Indo Count Australia has ceased to be a subsidiary of the company from October 7, 2020.
- Laurus Labs: The wholly-owned subsidiary of the company, Laurus Synthesis, has incorporated a wholly-owned subsidiary under name of Laurus Ingredients with effect from January 9, for undertaking Ingredients Business and also for setting up Greenfield projects for the new Synthesis Business.
- Non-Nifty Earnings Today: Filatex India, Karnataka Bank, Steel Strips Wheels, Tata Elxsi, Vikas Multicorp
Pledge Share Details
- JSW Steel: Promoters Urmila Bhuwalka, Danta Enterprises, Glebe Trading, JSW Techno Projects and Siddeshwari Tradex revoked pledge of 61.72 lakh shares between January 5-7.
As Reported On January 11.
- Burger King India: Chetan Shah bought 22.80 lakh shares at Rs 150.16 per share and sold 12.57 lakh shares at Rs 150.15 per share. Eastspring Investments India Consumer Equity Open sold 27.55 lakh shares at Rs 154.92 per share.
- Fortis Healthcare: Rakesh Jhunjhunwala bought 50 lakh shares (0.66%) at Rs 179.40 per share. Rare Enterprises sold 50 lakh shares (0.66%) at Rs 179.40 per share.
- Record Date Interim Dividend: Refex Industries
- Price Band Revised From 20% To 10%: Hemisphere Properties India, Rail Vikas Nigam
- Move Into Short-term ASM Framework: Gallantt Ispat
- Move Into ASM Framework: Jain Irrigation Systems, Arshiya
- Sequent Scientific: Promoter Chayadeep Ventures sold 2.08 lakh shares on December 17.
- JSW Steel: Promoter Urmila Bhuwalka sold 15,000 shares on January 6.
As Reported On January 11.
Money Market Update
- The currency ended at 73.42 against the U.S. Dollar as compared to Friday's close of 73.24.
- Nifty January futures ended at 14,493; premium of 9 points
- Nifty January futures add 4.3% and 5.7 lakh shares in Open Interest
- Nifty Bank January futures end at 32,114; premium of 84 points
- Nifty Bank January futures shed 6.8% and 1.14 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.73
- Stocks In F&O Ban: SAIL
Nifty: January 14 Expiry
- Maximum Open Interest on Call side at 14,800 strike (27.8 lakh shares)
- Maximum Open Interest on Put side at 14,200 strike (36.1 lakh shares)
- Active Options: 14,300 Call (-9.2 lakh shares) and 14,400 Put (+22.2 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 15,000 strike (19 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (29.1 lakh shares)