All You Need To Know Going Into Trade On January 13
Asian equities have begun mid-week trading on a subdued note, even as the U.S. Dollar extended overnight losses. Treasury yields too continued to retreat from their highest in 10 months.
Benchmark indices in Japan and Australia saw trading take place with a negative bias. Oil prices were seen heading towards their highest in 11 months.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.1% to 14,612 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 are fluctuating between gains and losses. The index ended little changed on Tuesday.
- The spread between the rate on the two and 10-year notes has risen every single day this year as investors bet on additional U.S. fiscal stimulus, more bond issuances and higher yields on longer-maturity treasuries.
- Two Fed officials pushed back on speculation that the central bank will begin to taper its asset-purchase program anytime soon.
- Bitcoin fluctuated around the $34,000 level after crossing $40,000 only last week.
- EIA Crude oil inventory report along with consumer-price figures in the U.S. are due today.
- Yield on the 10-year treasuries stood at 1.11%.
- West Texas Intermediate crude rose 0.3% to $53.39 per barrel.
Get your daily fix of the global markets here.
Stocks To Watch
- Hero MotoCorp: Has expanded its presence in Central America. The company appointed new distributor partners in Nicaragua and Honduras, with aggressive expansion plans for both countries. The company will launch a range of premium motorcycles in both countries and expand its network with extensive customer touch-points and flagship stores in key markets.
- Tech Mahindra: To acquire 100% shareholding of Payments Technology Services. Acquisition to be done for cash consideration of $9 million. The transaction is expected to be completed by March 31, 2021. The company said that the acquired capabilities in the payment space is consistent with strategy of pivoting the business towards product & platform implementation.
- Bharti Airtel: Has received approvals for its relevant downstream investments. Accordingly, the company has initiated the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.
- Bharat Rasayan: The Board of Directors have approved the buyback of up to 93,472 shares of Rs 10 each, comprising of 2.20% of the total paid-up equity capital of the company. The buyback price of Rs 11,500 per share is a 11.1% premium to Tuesday’s closing price. The overall cost of the buyback process would be Rs 107 crore.
- Tata Motors: Global wholesales rise to 2,78,915 units in Q3FY21, higher by 37% quarter-on-quarter and by 1% year-on-year. Global wholesales of all commercial vehicles and Tata Daewoo range declined 4% year-on-year to 90,365 units. Global wholesales of all passenger vehicles rose 4% year-on-year to 1,88,550 units. Further, the company also issued a clarification on reports of a partnership with Tesla, saying that it has not taken any decision regarding a strategic partner for its PV business and categorically denies any and all rumours suggesting the same.
- Dishman Carbogen Amcis: OFS for Non-retail investors gets demand for 66.8 lakh shares as compared to the 54.6 lakh on offer. Bids were received at an indicative price of Rs 140.11 per share. Further the company will exercise the Oversubscription Option to the extent of 32.1 lakh equity shares, in addition to the Base Offer Size. Accordingly, the total Offer Size will now be 92.8 lakh equity shares representing 5.92% of the total paid up equity share capital of the company. The OFS for retail investors opens for subscription today.
- BASF: The National Company Law Tribunal, Mumbai has sanctioned the Scheme of Merger by absorption of BASF Performance Polyamides India, a wholly-owned subsidiary, with BASF India, effective February 1, 2021.
- Nava Bharat Ventures: CARE has revised the credit ratings of Nava Bharat Energy India, one of the subsidiaries of the company. The rating agency has revised the credit rating of the Long-term bank Facilities worth Rs 50 crore of the subsidiary company to A- from BBB- and rating of the Short-term Bank Facilities worth Rs 20 crore has been revised to A-;stable/A2+ from BBB-;stable/A3.
- India Glycols: India Ratings & Research has affirmed the company's Long-term Issuer Rating as A-/Stable. The rating agency has affirmed A-/Stable rating for term loan of Rs 452.43 crore. Further the rating agency has affirmed the rating of fund-based limit of Rs 415 crore and Non-fund-based limit of Rs 1,1 53.35 as A-/Stable/A2+.
- Nifty Earnings: Infosys, Wipro
- Non-Nifty Earnings: 5paisa Capital, CESC, GTPL Hathway
Earnings Post Market Hours
Tata Elxsi Q3FY21 (Standalone, QoQ)
- Revenue up 11% at Rs 477.1 crore Vs Rs 430.1 crore
- Net profit up 33% at Rs 105.2 crore Vs Rs 78.9 crore
- Ebitda up 22% to Rs 143.5 crore Vs Rs 118 crore
- Ebitda margin at 30.1% from 27.4%
- Healthcare business continues to accelerate while Media and communications reported another strong quarter of sustained growth
- We have seen new customer additions and large deals in both industries in the quarter
- Sustained recovery in the automotive market for the second straight quarter
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment revoked pledge of 4.38 lakh shares between January 8-11.
- Dish TV India: Promoters Direct Media Distribution Ventures and Veena Investments invoked pledge of 2.22 crore shares between January 7-8.
- JSW Energy: Promoter JSW Investments revoked pledge of 12 lakh shares on January 8.
As Reported On January 12.
- Bliss GVS Pharma: LTS Investment Fund bought 5.20 lakh shares (0.50%) at Rs 207 per share.
Who’s Meeting Whom
- Mahindra & Mahindra: To meet Ashmore Investments and Edelweiss Securities on January 13.
- Price Band Revised From 20% To 10%: Centrum Capital, Hindustan Composites
- Ex-date Interim Dividend: Cochin Shipyard
- Move Into Short-term ASM Framework: Ambika Cotton Mills, Hindustan Composites
- Rajesh Exports: Promoter Rajesh Mehta acquired 5,000 shares on January 11.
As Reported On January 12.
Money Market Update
- The currency ended stronger at 73.25 against the U.S. Dollar as compared to Monday’s close of 73.42.
- Nifty January futures end at 14,599; premium of 36 points
- Nifty January futures add 0.3% and 39,525 shares in Open Interest
- Nifty Bank January futures end at 32,460; premium of 121 points
- Nifty Bank January futures add 0.3% and 4,625 shares in Open Interest
- Nifty Put-Call Ratio at 1.82
Nifty: January 14 Expiry
- Maximum Open Interest on call side at 15,000 strike (37.9 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (33.5 lakh shares)
- Active Options: 15,000 Call (+10.1 lakh shares) and 14,500 Put (+14.9 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 15,000 strike (20.8 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (29.9 lakh shares)