All You Need To Know Going Into Trade On January 7
Asian markets are advancing this morning after democrats took control of the Senate, following key elections.
Benchmark indices across the Asia-Pacific in Japan, Australia and South Korea traded with gains.
The U.S. Dollar retreated gains along with oil while Gold was little changed.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.55% to 14,258 as of 7:05 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 with gains of 110 points. The index trimmed some gains on Wednesday but still closed 1.4% higher.
- Protestors stormed the U.S. capital and interrupted a debate to certify Joe Biden as the next president of the United States.
- "The win in Georgia “suggests a higher probability of a stronger stimulus, probably a more immediate grappling with the Covid impact in terms of spending, and slightly more fiscal action,” Steven Wieting of Citi Private Bank told Bloomberg TV.
- In the latest minutes released Wednesday, the Federal Open Market Committee issued guidance it would continue purchases of bonds at least at its current pace until the economic recovery had made “substantial further progress.”
- Yields on the 10-year treasuries stood at 1.03%.
- West Texas Intermediate crude fell 0.2% to $50.54 per barrel while Bitcoin rose to another record high.
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Stocks To Watch
- NMDC: Lump Ore prices raised 9.6% to Rs 5,700 per ton from Rs 5,200 per ton. Fines prices raised 4.3% to Rs 4,810 per ton from Rs 4,610 per ton. Prices were last revised on December 15, 2020. Lump ore prices are now up 132% since July 2020 while those of fines are up 123%.
- Bandhan Bank: Loans and advances rose 5% quarter-on-quarter to Rs 80,255 crore during the October-December period. Total deposits rose 8% quarter-on-quarter to Rs 71,188 crore. Ratio of retail deposits to total deposits rose to 81% in October-December, as compared to 77% on September 30. CASA ratio rose to 43% in third quarter, from 38% in July-September 2020.
- Sobha: Good demand across all product categories aids better sales numbers in Q3FY21 as compared to the previous year. Total sales value up 22.2% to Rs 887.6 crore from Rs 726.1 crore. Sales volume of 11,33,574 square feet of super build-up area was the best ever quarterly sales volume. Average price realisation up 15% to Rs 7,830 from Rs 6,811. Price realisation was the highest in the past six quarters.
- Dixon Technologies (India): Has entered into an agreement with boAt for manufacturing of Twin wireless speakers. Dixon will be manufacturing the said products from its manufacturing facility located at Noida, Uttar Pradesh.
- Lupin: Has received approval for its Sulfamethoxazole and Trimethoprim Oral Suspension USP from the U.S. FDA, to market a generic equivalent of Bactrim Oral Suspension of Sun Pharmaceutical Industries. Sulfamethoxazole and Trimethoprim Oral Suspension USP is indicated for the treatment and prevention of a wide variety of bacterial infections and certain type of pneumonia. Further it had estimated annual sales of approximately $19 million in the U.S. as per IQVIA data dating September 2020.
- Wendt (India): Promoters Carborundum Universal and Wendt GmbH to sell up to 94,704 equity shares of face value of Rs 10 each via OFS. The sale is being undertaken by the sellers primarily for achieving the minimum public shareholding in the company. OFS for non-retail investors to open on January 7 and for Retail Investors on January 8. The floor price of Rs 2,200 per share is at a discount of almost 29% to Wednesday's closing price. The OFS was earlier planned for December 21 but was called off due to delay in transfer of sale shares.
- NCL Industries: Cement production rose 50% to 6,32,746 MT in Q3FY21 from 4,23,199 MT in Q3FY20. Cement dispatches rose 45% to 6,25,162 MT versus 4,30,861 MT year-on-year. RMC production and sales (CuM) rose 36% to 72,152 versus 53,142 year-on-year.
- Future Consumer: The loan default amount till December 31 stands at Rs 90 crore and total outstanding loan amount stands at Rs 329.09 crore. The NCDs and NCRPs default amount stands at Rs 20 crore and the total outstanding amount is Rs 220 crore. Total financial indebtedness of the company including short-term and long-term debt is Rs 549.09 crore.
- Ramco Systems: Will implement its Aviation M&E MRO Suite v5.8 for Construction Helicopters Inc. (CHI Aviation), part of Heligroup Inc. and its four operating and three asset-holding entities in the U.S. With this win Ramco will help manage the largest numbers of the civilian version of Chinooks (CH-47s), in the U.S.
- IIFL Finance: CARE Ratings has reaffirmed its AA/Negative rating to the NCDs, subordinated debt and long-term bank facilities of the company. Further the rating agency has reaffirmed its AA/Negative rating to the NCDs of IIFL Home Finance, a wholly-owned subsidiary of the company.
- CEAT: CARE Ratings has reaffirmed its AA/Stable rating to the long-term bank facilities worth Rs 800 crore and A1+ rating to the short-term bank facilities worth Rs 1,150 crore. The rating agency has also reaffirmed A1+ rating to the company’s Commercial Paper worth Rs 350 crore.
Pledge Share Details
- Future Retail: Promoter Future Corporate Resources invoked pledge of 3.81 lakh shares on December 24.
- JSW Steel: Promoter Glebe Trading created a pledge of 23 lakh shares on December 29.
- Jindal Steel and Power: Promoter Glebe Trading created a pledge of 31 lakh shares on December 29.
As Reported On January 6.
- PNC Infratech: Axis Mutual Fund bought 22 lakh shares (0.86%) at Rs 175 per share. Nipon India Mutual Fund bought 25 lakh shares (0.97%) at Rs 175 per share. BNP Paribas Arbitrage bought 20.80 lakh shares (0.81%) at Rs 175 per share. Fidelity Asian Values PLC bought 13.21 lakh shares (0.52%) at Rs 175 per share. F/ASCO - Fidelity Funds bought 30.28 lakh shares (1.18%) at Rs 175 per share. CN Infrabuild sold 2.55 crore shares (9.95%) at Rs 175.12 per share.
- Hind Rectifiers: Kiran Bajaj sold 1.51 lakh shares (0.91%) at Rs 177.99 per share.
- Price Band Revised From 20% To 10%: Filatex India, RattanIndia Power, Tribhovandas Bhimji Zaveri.
- Ex Date EGM: Steel Exchange India
- Move Into Short-term ASM Framework: Alkyl Amines Chemicals, RattanIndia Power, Mangalore Chemicals & Fertilisers, SREI Infrastructure Finance.
- Move Out Of Short-term ASM Framework: Trident, Filatex India.
- Move Into ASM Framework: Filatex India, Trident, Reliance Communications, Oricon Enterprises.
- NRB Bearings: Promoters Harshbeena Zaveri and Aziz Yousuf Zaveri acquired 44,600 shares between December 18-31.
As Reported On January 6.
Money Market Update
- The currency ended with modest gains at 73.11 against the U.S. Dollar on Wednesday as compared to Tuesday's close of 73.19.
- Nifty January futures end at 14,174; premium of 28 points
- Nifty January futures shed 6.1% and 8.1 lakh shares in Open Interest
- Nifty Bank January futures end at 31,835; premium of 38 points
- Nifty Bank January futures shed 3.7% and 66,950 shares in Open Interest
- Nifty Put-Call Ratio at 1.67
- Stocks In F&O Ban: SAIL
Nifty: January 7 Expiry
- Maximum Open Interest on Call side at 14,500 strike (50 lakh shares)
- Maximum Open Interest on Put side at 14,100 strike (25 lakh shares)
- Active Options: 14,200 Call (+21.5 lakh shares) and 14,100 Put (-10.9 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 14,000 strike (19.9 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (23.8 lakh shares)