All You Need To Know Going Into Trade On January 4

Asian stocks rose at the open Tuesday after the S&P 500 closed at a record high on the first trading day of 2022. Treasuries maintained most of their losses

Equities advanced in Japan and Australia as they traded for the first time this year. U.S. futures wavered after the Nasdaq 100 outperformed. The U.S. gains followed European stocks which hit unprecedented highs even as trading volumes remained light because of holidays.

The Singapore-traded SGX Nifty, an early indicator of India's Nifty 50 Index's performance, was little changed at 17,685.50, as of 7:15 a.m.

The dollar held gains. Elsewhere, crude oil in New York held gains to trade near $76 a barrel following news Libya’s crude output is expected to fall to the lowest in more than a year and ahead of an OPEC+ meeting on Tuesday to discuss production. Bitcoin hovered around $46,000.

Stocks To Watch

• Marico: The company's consolidated revenue growth in Q3 was in low teens. High inflation slowed consumption. India business saw double-digit revenue growth, while volumes were flat. Parachute Coconut Oil had a muted quarter on a high base. Saffola Edible Oils volumes dropped owing to weak trade because of fluctuating input prices. Company expects gross margin to improve sequentially but remain lower on a year-on-year basis. International business delivered high teen constant currency growth led by Bangladesh and Vietnam.

• Maruti Suzuki: Total production in December declined 1.99% to 1,52,029 units Vs 1,55,127 units last year. The company exported 2,05,450 vehicles in 2021--the highest ever export figure in any calendar year by Maruti Suzuki India.

• HDFC: Assigned loans of Rs 7,468 crore in Q3 to HDFC Bank. Loans sold in the preceding 12 months amounted to Rs 27,591 crore. Gross income from dividend for the quarter was Rs 195 crore. The profit on sale of investments was nil. The company has liquidity buffers of approximately Rs 55,000 crore.

• Hindustan Zinc: The company’s integrated zinc and lead output rose 11% to 261,000 tonnes in Q3, compared with 235,000 tonnes a year earlier. Integrated silver production dropped 5% YoY to 173 tonnes. Mined metal production was up 3% at 252,000 tonnes.

• Vedanta: The cast metal aluminium production rose 16% to 579,000 tonnes in Q3, compared with 497,000 tonnes a year earlier. The Lanjigarh refinery produced 472,000 tonnes of alumina in Q3, 16% higher than last year. Total power sales were 3,450 million units, higher by 68% as compared to Q3 FY21.

• Bajaj Electricals: Approved closure of manufacturing unit in Shikohabad, Uttar Pradesh due to its unsatisfactory performance.

• Karnataka Bank: The core deposits grew by 1.96% in Q3 to Rs 78,424.66 crore over the preceding quarter. The gross advances grew by 1.90% quarter-on-quarter to Rs 56,655.16 crore.

• Wockhardt: Board of Directors to consider and approve fund raising options on January 6.

• Tata Power: Appointed Sanjeev Churiwala as the new CFO with effect from January 1. Ramesh Subramanyam, the erstwhile CFO to move into a new role within the Tata Group.

• GAIL: To pay Rs 913.84 crore to the government and Rs 862.31 crore to other shareholders as first interim dividend for the FY21-22.

• Dilip Buildcon: Received letter of acceptance for over burden removal contract mining work in Madhya Pradesh. The contract is of Rs 2,683.02 crore for a period of 1,795 days.

• Granules India: Appointed KVS Ram Rao as an additional director, categorised as executive, on the board of the company with effect from January 5. The board also designated Rao as Joint Managing Director and CEO of the company.

• Future Supply Chain Solutions: Samir Kedia resigned as CFO with effect from the closure of working hours of January 3.

Upcoming Results

• Infosys: To announce Q3 results on January 12.

• Mindtree: To meet on January 13 to consider Q3 results.

• Larsen & Toubro Infotech: To meet on January 19 to consider Q3 results.

• Asian Paints: To meet on January 20 to consider Q3 results.

• Castrol India: To meet on February 7 to consider Q3 results.

Offerings

• GPT Healthcare, which runs the chain of ILS Hospitals, has received SEBI approval to raise up to Rs 500 crore through IPO.

Insider Trades

• JSW Steel: Promoter Group South-West Mining Ltd. bought 1,000 shares on Dec. 28.

• Maharashtra Seamless: Promoter Group Sudha Apparels Ltd. bought 2,18,044 shares on between Dec. 29 and Dec. 31.

• Medicamen Biotech: Promoter Group Growel Remedies Ltd. sold 24,990 shares on Dec. 31.

• Gujarat Fluorochemicals: Promoter Group Inox Chemicals LLP sold 1,07,168 shares on Dec. 31.

Bulk Deals

• Orient Green Power Company: Axis Bank sold 66.13 lakh shares (0.88%) at Rs 20.80 per share.

• Zee Learn: IndusInd Bank sold 20 lakh shares (0.61%) at Rs 17.08 per share.

Who’s Meeting Whom

• Ajmera Realty & Infra India: To meet Renaissance Investment on Jan. 4 and Antique Stock Broking on Jan. 6.

• Container Corporation of India: To meet HSBC Securities and Capital Market (India) on Jan. 4 and Nomura Financial Advisory and Securities (India) on Jan 5.

Trading Tweaks

• Price Band Revised From 10% To 5%: Reliance Communications, Steel Exchange India

• Price Band Revised From 20% To 5%: Borosil, BCL Industries

• Move Into Short-Term ASM Framework: Jubilant Industries, HCL Infosystems

Money Market Update

• The rupee ended at 74.26 against the U.S. Dollar on Monday as compared to Friday's closing of 74.33.

Analyst Actions

• One97 Communications (Paytm): JPMorgan initiates coverage with ‘overweight’, price target set at Rs 1,850.

• Tata Motors: CLSA cuts rating to ‘sell’, price target at Rs 408

F&O Cues

• Nifty January futures ended at 17,691.90; a premium of 66.20 points.

• Nifty January futures added 5.87% and 12,066 shares in Open Interest.

• Nifty Bank January futures ended at 36,640; a premium of 218.10 points.

• Nifty Bank January futures added 7.59% and 7,126 shares in Open Interest.

Top Research Reports

• Aptus Value Housing Finance - Proven Business Credentials, Superior RoAs: ICICI Securities Initiates Coverage

• Share Market Outlook 2022 - A Year Of Heightened Activity: Motilal Oswal

• PSP Projects - Eyes In The Sky With Feet On The Ground: IDBI Capital Initiates Coverage

• Real Estate - Cracker Of A Festive Season For Residential Segment: ICICI Securities

• IT Services Q3 Earnings Preview - Demand To Outweigh Seasonality; Attrition Peaking: Motilal Oswal