All You Need To Know Going Into Trade On January 19
Asian equities have pushed higher this morning along with bond yields. Investors now await comments from Treasury Secretary nominee Janet Yellen on more fiscal stimulus and the trajectory of the U.S. Dollar.
Benchmark indices in Japan, South Korea and Australia rose in early trade. Markets on Wall Street were shut on Monday due to a holiday.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.6% to 14,367 as of 6:55 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 currently trading with gains of 123 points.
- Focus now shifts to the earnings season and negotiations for President-elect Joe Biden's relief plans.
- The European Union’s executive arm will urge member states to set a target for vaccinating at least 70% of the bloc’s population by this summer.
- Yield on the 10-year treasuries stood at 1.1%
- West Texas Intermediate crude was little changed at $52.32 per barrel. Bitcoin fluctuated around the mark of $36,000.
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Stocks To Watch
- L&T Finance Holdings: The Board of Directors have approved the terms of the Rights Issue announced on November 9, 2020. The board has approved the issuance of 46.13 crore fully paid-up shares of face value of Rs 10 each, for an aggregate amount of Rs 2,998.61 crore. The record date has been set as January 22, 2021 and the issue price of Rs 65 per share is at a discount of 34.67% to Monday's closing price. The issue will open on February 1, 2021 and close on February 15, 2021. The rights entitlement ratio is 17 shares for every 74 shares held by the eligible shareholders of the company.
- Tata Steel: Bloomberg reports quoting Swedish business daily Dagens Industri that talks of a potential acquisition of the company's IJmuiden steel mill are running out of steam as SSAB's two largest shareholders are skeptical to the idea. The two shareholders have 10.5% and 10.4% of the total votes in SSAB.
- Apollo Hospitals: QIP issue opens today. Bloomberg reports that the company intends to raise as much as Rs 1,000 crore through the sale of 40.7 lakh shares. The floor price for the QIP issue has been fixed at Rs 2,508.58 per share, which is a 3.4% discount to Monday's closing price.
- Maruti Suzuki India: Has increased the price of select models due to increase in various input costs. The price change varies across models and ranges up to Rs 34,000 (Ex-Showroom - Delhi). The new prices are effective from January 18.
- IRB Infrastructure Developers: SPV achieves financial closure for Gandeva-Ena HAM project on the upcoming Vadodara-Mumbai expressway in Gujarat. Lenders extend project financing worth Rs 747 crore, NHAI support for the project will be Rs 702 crore. The company will infuse Rs 253 crore as its equity contribution. The project concession will comprise of 730 days for construction and 15 years for operations and maintenance thereafter.
- RBL Bank: Has approved the re-appointment of Vishwavir Ahuja as the Managing Director & Chief Executive Officer of the Bank for a period of three years, from June 30, 2021 to June 29, 2024.
- Jindal Stainless (Hisar): Jindal Stainless Steelway, a subsidiary of the company has acquired 1.56 crore equity shares of Rs 10, constituting 67% of paid up capital of its associate company namely JSS Steelitalia for a cash consideration of Rs 2.41 crore. After the acquisition, JSS Steelitalia has become a wholly-owned subsidiary of Jindal Stainless Steelway and a step-down subsidiary of the company.
- United Drilling Tools: To set up a new manufacturing plant in Gujarat, near the Mundra Port. The plant will be built over 35 acres with an initial capital outlay of Rs 15 crore and is proposed to be entirely funded through internal accruals. The company said it expects 50-70% incremental revenues from this development over the next two years.
- TVS Motor: A meeting of the Board of Directors is scheduled on January 28 for declaration of interim dividend, if any for FY 2020-21. The record date for the purpose of interim dividend, if declared, will be February 5, 2021.
- Emami: A meeting of the Board of Directors is scheduled on January 27 to consider the proposal of declaration of second Interim Dividend for FY 2020-21. The record date for the purpose of Interim Dividend, if declared, will be February 5, 2021.
- Raymond: A meeting of the Board of Directors is scheduled on January 21 to consider and approve the issuance of NCDs aggregating up to an amount of Rs 200 crore on a private placement basis.
- Sundaram Clayton: A meeting of the Board of Directors is scheduled on January 29 for declaration of interim dividend, if any, for the FY 2020-21. The record date for the purpose of interim dividend, if declared, will be February 6, 2021.
- Non-Nifty Earnings Today: Alembic Pharma, CEAT, CSB Bank, DCM Shriram, Gateway Distriparks, Hatsun Agro, ICICI Lombard, L&T Infotech, Bank of Maharashtra, Mold-Tek Packaging, Network18, Tata Communications, Tata Metaliks, Tata Steel BSL, TV18 Broadcast.
Pledge Share Details
- Adani Enterprises: Promoters Gautam Adani and Rajesh Adani revoked pledge of 21 lakh shares on January 14.
- Adani Ports & SEZ: Promoters Gautam Adani and Rajesh Adani revoked pledge of 11.21 lakh shares on January 15.
- Emami: Promoters revoked pledge of 21.94 lakh shares between January 13-15.
As Reported On January 18.
- Adani Green Energy: Acme Trade and Investment bought 3.61 crore shares (2.31%) at Rs 915.37 per share. Adani Trading Services LLP sold 3.61 crore shares (2.31%) at Rs 915.37 per share.
- Neuland Laboratories: Rikeen P Dalal HUF bought 80,000 shares (0.62%) at Rs 1,310.71 per share.
- Move Into Short-term ASM Framework: 3i Infotech
- Move Out Of Short-term ASM Framework: Hindustan Zinc, BLS International Services, Share India Securities.
Money Market Update
- The currency ended weaker on Monday at 73.27 against the U.S. Dollar, as compared to Friday's close of 73.04.
- The rupee was the fourth worst performing currency in Asia on Monday.
- Nifty January futures end at 14,251; discount of 30 points
- Nifty January futures shed 4.8% and 6.1 lakh shares in Open Interest
- Nifty Bank January futures end at 31,701; discount of 110 points
- Nifty Bank January futures add 9.2% and 1.3 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.38
- Stocks In F&O Ban: BHEL, SAIL, Vodafone Idea
Nifty: January 21 Expiry
- Maximum Open Interest on Call side at 14,500 strike (35.5 lakh shares)
- Maximum Open Interest on Put side at 13,500 strike (21.1 lakh shares)
- Active Options: 14,400 Call (+11.8 lakh shares) and 14,500 Put (-8.4 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 15,000 strike (24.9 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (31.3 lakh shares)