All You Need To Know Going Into Trade On January 8
Asian markets are following their peers in the U.S. higher on the final trading day of the week. Investors focus on the prospects of more stimulus once Joe Biden takes over as U.S. President in a couple of weeks from now.
Benchmark indices in Japan, South Korea and Australia are advancing this morning. Bitcoin has pared an advance after hitting $40,000 while oil priced edged higher.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.4% to 14,263 as of 6:50 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 50 points. The index rose 0.7% on Thursday to end at a record high.
- Around 70% of the stocks on the S&P 500 gained on Thursday while the Nasdaq gained 2.5%. The Dow Jones Transportation index - a proxy for economic activity also ended at an all-time high.
- “Markets (rightly, in our view) see the U.S. government as ultimately a stable-enough set of institutions even if things occasionally go pear-shaped,” Nick Colas, co-founder of DataTrek Research, wrote in a note to clients.
- U.S. service providers unexpectedly accelerated as gains in business activity and new orders helped offset a decline in a measure of employment.
- The jobs data due today is forecast to show a sharp slowdown in hiring.
- Yield on the 10-year treasuries stood at 1.08%.
- West Texas Intermediate crude rose 0.2% to $50.91 per barrel.
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Stocks To Watch
- Tata Power: Has taken over power distribution in Western and Southern Odisha from January 1, 2021 onwards. The company has acquired 51% equity stake each in TP Southern Odisha Distribution Ltd. and TP Western Odisha Distribution Ltd. for a consideration of Rs 127.50 crore and Rs 255 crore, respectively. GRIDCO will hold balance 49% equity stake each in TPSODL and TPWODL. With the acquisition of two additional distribution utilities, the company has expanded its consumer base to 9.5 million from the present base of 5.2 million across Mumbai, New Delhi, Central part of Odisha and Ajmer.
- Biocon: The Board of its subsidiary Biocon Biologics has approved a primary equity investment by Abu Dhabi based ADQ. As per the terms of the proposed agreement, ADQ will invest Rs 555 crore for a 1.80% minority stake in the biosimilar business, valuing Biocon Biologics at a post money valuation of $4.17 billion. Post the completion of this transaction, Biocon will hold 89.89% stake in Biocon Biologics on a fully diluted basis. The previous investment from Goldman Sachs valued the company at $3.94 billion.
- Bharat Rasayan: A meeting of the Board of Directors will be held on January 12, 2021 to consider the proposal of buyback of equity shares.
- NHPC: The Resolution Plan submitted by the company for Jalpower Corporation Ltd. has been approved by National Company Law Tribunal, Hyderabad Bench.
- Hindustan Construction Company: The loan default amount till December 31, 2020 stands at Rs 1,772.34 crore. The total amount outstanding as on date for loans (Fund Based) is Rs 3,801.60 crore. Total financial indebtedness of the company including short-term and long-term debt (including Non-Fund based) is Rs 10,098.95 crore.
- ONGC: Has approved the offer and issuance of up to 15,000 unsecured NCDs of face value of Rs 10 lakh shares at par aggregating to a total issue size of up to Rs 1,500 crore on a private placement basis at the interest rate of 4.5% per annum.
- Nifty Earnings Today: TCS
- Non-Nifty Earnings Today: Shalby
Pledge Share Details
- Jindal Steel & Power: Promoters OPJ Trading and Danta Enterprises revoked pledge of 74.50 lakh shares between January 5-6.
- Adani Transmission: Promoters Gautam Adani and Rajesh Adani revoked pledge of 15.20 lakh shares on January 6.
As Reported On January 7.
- Likhitha Infrastructure: BM Traders bought 68,666 shares at Rs 208.27 per share and sold 1.18 lakh shares at Rs 207.54 per share.
- IDFC: Sipadan Investments (Mauritius) sold 8.26 crore shares (5.18%) at Rs 38.76 per share. Abakkus Emerging Opportunities Fund-1 bought 1 crore shares (0.63%) at Rs 38.75 per share. Morgan Stanley Asia Singapore PTE bought 1.32 crore shares (0.83%) at Rs 38.75 per share. Avendus Absolute Return Fund bought 1.49 crore shares (0.94%) at Rs 38.75 per share.
- Ex-Date EGM: LP Naval And Engineering
- Ex-Date Interim Dividend: Rites
- Price band revised from 20% to 10%: HLV, Fairchem Organics.
- Move Into Short-term ASM Framework: HLV
- Move Out Of Short-term ASM Framework: SORIL Infra Resources, Confidence Petroleum India, Rupa & Company, Hindustan Construction Company, Olectra Greentech, ABB Power Products and Systems India.
- Move Into ASM Framework: Ashapura Minechem
- Vikas Multicorp: Promoters Vikas Garg, Seema Garg, Nand Kishore Garg and Sukriti Garg sold 5.69 crore shares between December 1-31.
As Reported On January 7.
Money Market Update
- The currency weakened on Thursday, ending at 73.31 against the U.S. Dollar, as compared to Wednesday's close of 73.12.
- Nifty January Futures end at 14,203; premium of 66 points
- Nifty January futures shed 0.5% and 60,825 shares in Open Interest
- Nifty Bank January futures end at 32,089; premium of 133 points
- Nifty Bank January futures shed 0.3% and 5,700 shares in Open Interest
- Nifty Put-Call Ratio at 1.67
- Stocks In F&O Ban: SAIL
Nifty: January 14 Expiry
- Maximum Open Interest on Call side at 15,000 strike (29.5 lakh shares)
- Maximum Open Interest on Put side at 13,500 strike (15.5 lakh shares)
- Active Options: 15,000 Call (+26.5 lakh shares) and 14,200 Put (+10 lakh shares)
Nifty: January 28 Expiry
- Maximum Open Interest on Call side at 14,000 strike (19.2 lakh shares)
- Maximum Open Interest on Put side at 13,500 strike (23.5 lakh shares)