All You Need To Know Going Into Trade On January 6
Asian markets have begun mid-week trade on a subdued note as traders await the outcome of key elections i the U.S. state of Georgia.
Benchmark indices in Japan have seen modest gains while South Korea's Kospi topped the 3,000 level for the first time. Australian markets are declining.
Oil prices pared overnight gains after surging past $50 per barrel for the first time since February. Saudi Arabia pledged to voluntarily cut output by an extra 1 million barrels per day.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 14,244 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 trading 80 points higher. The index ended 0.5% higher on Tuesday.
- Chinese stocks will be in focus after U.S. President Donald Trump signed an order banning U.S. transactions with eight digital Chinese payment platforms, including Alipay.
- The U.S. Congress will meet today to count electoral votes and declare the winner of the 2020 Presidential elections.
- Minutes of the latest FOMC meet are also due later today.
- Yield on the 10-year treasuries stood at 0.95%.
- West Texas Intermediate crude fell 0.4% to $49.75 per barrel.
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Stocks To Watch
- HDFC Bank: Total advances rose 4% quarter-on-quarter to Rs 10.82 lakh crore in Q3 and rose 16% year-on-year. The bank's deposits rose 3% quarter-on-quarter to Rs 12.7 lakh crore, up 19% year-on-year. CASA ratio stood at 43% as on December 31, compared with 41.6% in September.
- Godrej Consumer Products: Demand trends across key categories remained stable in Q3. The company expects to deliver close to low double-digit sales growth in India. India sales growth were driven by higher than mid single-digit volume growth. Soaps are expected to deliver strong mid-teen growth, hair colour business is expected to deliver mid-teen growth and household insecticides is expected to deliver close to high single-digit growth.
- BEML: Has received orders from the Ministry of Defence for supply of High Mobility vehicles, at an approximate value of Rs 758 crore. These High Mobility vehicles would play a key role in the logistics management of the Indian Army. The equipment will be manufactured at BEML's Palakkad Plant in Kerala and would be supplied to Indian Army over a period of one year.
- Tata Motors: U.K. new-car registrations fell 29% to about 1.63 million last year, according to the Society of Motor Manufacturers and Traders. Preliminary Registrations were the lowest since 1992. SMMT says that ongoing lockdowns are expected to drag the recovery in 2021. CEO Mike Hawes sees registrations remaining below 2 million in 2021.
- HDFC: To issue secured NCDs worth Rs 2,000 crore on January 7 on private placement basis with an option to retain oversubscription upto Rs 3,000 crore. Coupon rate has been fixed at 6.83% per annum for a tenor of 10 years.
- ACC: Commences new cement production facility at Sindri, Dhanbad District of Jharkhand. The new facility will add an additional capacity of 1.4 MTPA cement to the existing 3.0 MTPA unit, taking the total capacity at Sindri to 4.4 MTPA.
- Container Corporation Of India: The company is exploring the possibility of merger of its subsidiary company i.e. CONCOR AIR, SIDCUL CONCOR Infra Company and Punjab Logistics Infrastructure with CONCOR. An e-tender has been floated for engagement of External Management Consultant for facilitating proposed Merger with CONCOR of its subsidiary companies.
- ONGC: A meeting of the Committee for Allotment of Securities and Issue of Certificates of the Board is scheduled to be held on January 11, to consider and approve allotment of 15,000 NCDs of face value of Rs 10 lakh at par aggregating to the total issue size of up to Rs 1,500 crore on a private placement basis.
- Avanti Feeds: India Ratings & Research has affirmed AA-/stable rating to long-term fund based-working capital facilities of Rs 50 crore and A1+ rating to short-term non-fund based working facilities of Rs 42.79 crore of the company. Further the rating agency has affirmed AA-/stable rating to Avanti Frozen Foods' long-term fund based working capital facilities of Rs 12 crore and A1+ rating to short-term non-fund based working limits of Rs 2.50 crore.
- Lloyds Metals and Energy: The Government of Maharashtra has conferred the Mega Project status to the Proposed Expansion Project of the company with an investment of Rs 1,000 crore at Ghugus, Chandrapur.
- Maharashtra Seamless: A fire accident occurred in the corporate office of the company at Gurugram on January 5. The company is taking necessary steps to ensure resumption of normal working at the corporate office.
- Jindal Stainless: A meeting of Sub-committee of the Board of Directors is scheduled to be held on January 21, to consider and approve the early redemption of NCDs along with the interest thereon, issued by the company.
Motilal Oswal On L&T Infotech
- Downgrade to neutral from buy
- Price target raised to Rs 3,910 from Rs 3,690
- Downgrade due to recent rally in stock price as valuations leave little room
- Continue to deem it among best-in-class I.T. services companies on execution and management quality
- Combination of a size-and industry-relevant portfolio has helped win deals across service lines and geographies
- Expect to deliver industry leading revenue growth in the medium-term
- Strong margin improvement from FY21 would result in 20% PAT growth in rupee terms over FY20-23
- Expect strong performance in a seasonally weak quarter
CLSA On Godrej Consumer Products
- Outperform rating maintained
- Price target of Rs 760
- Indonesia business disappointed with a long-single-digit constant currency decline
- Expect consolidated Ebitda to expand ~40 basis points year-on-year to 22.5%
- Gross margin pressure is likely to be offset by cost optimisation
- See consolidated earnings growing ~17% in the third quarter
Emkay On HDFC Bank
- Buy rating maintained
- Price target of Rs 1,500
- Growth momentum continues
- Updates on asset quality/card business suspension will be key monitorables
- Overall business momentum remains healthy compared to industry
- New management has task cut out to overcome adverse events like misconduct in Auto business/new card acquisition suspension
Pledge Share Details
- Max Financial Services: Promoter Max Ventures Investment Holdings created a pledge of 14.73 lakh shares on January 1.
- Asahi India Glass: Promoter Sanjay Labroo revoked pledge of 6 lakh shares on December 31.
As Reported On January 5.
- Just Dial: XTX Markets LLP bought 3.56 lakh shares (0.58%) at Rs 698.05 per share and sold 3.80 lakh shares (0.62%) at Rs 699.87 per share.
- Snowman Logistics: Parth Infin Brokers bought 15.62 lakh shares (0.94%) at Rs 62.13 per share and sold 14.40 lakh shares (0.86%) at Rs 62.78 per share.
- Likhitha Infrastructure: BM Traders bought 99,956 shares at Rs 201.4 per share and sold 1.15 lakh shares at Rs 200.21 per share.
- Record Date Interim Dividend: Gateway Distriparks
- Price Band Revised From 20% To 10%: Trident
- Move In To Short-term ASM Framework: Ganesha Ecosphere, Elecon Engineering Company, Trident, 3i Infotech.
- Move Out Of Short-term ASM Framework: Bajaj Hindusthan Sugar
- Move In To ASM Framework: Somany Home Innovation
- Mold-Tek Packaging: Promoter Mold-Tek Technologies acquired 14,713 shares between December 22-31.
- Star Cement: Promoter Gayatri Chamaria sold 2.47 lakh shares on December 31.
- Apollo Tricoat Tubes: Promoter Saket Agarwal sold 5,625 shares on December 31.
As Reported On January 5.
Money Market Update
- The currency ended weaker on Tuesday at 73.18 against the U.S. Dollar, as compared to Monday's close of 73.02.
- The rupee was the third worst performer in Asia on Tuesday.
- Nifty January futures end at 14,216; premium of 17 points
- Nifty January futures add 5.7% and 7.2 lakh shares in Open Interest
- Nifty Bank January futures end at 31,792; premium of 70 points
- Nifty Bank January futures add 28.5% and 4.2 lakh shares in Open Interest
- Nifty Put-Call Ratio at 1.73
- Enters F&O Ban: SAIL
Nifty: January 7 Expiry
- Maximum Open Interest on Call side at 14,500 strike (47.8 lakh shares)
- Maximum Open Interest on Put side at 14,000 strike (38.4 lakh shares)
- Active Options: 14,500 Call (+16 lakh shares) and 14,100 Put (+19 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 14,000 strike (20.3 lakh shares)
- Maximum Open Interest on Put side at 13,500 strike (21.9 lakh shares)