All You Need To Know Going Into Trade On November 25
A train travels across a bridge as the sun rises over the LG corp. twin buildings in the Yeouido financial district of Seoul, South Korea. (Photographer: SeongJoon Cho/Bloomberg)

All You Need To Know Going Into Trade On November 25

Mid-week trading has begun on a positive note for Asian equities. This after U.S. markets climbed to fresh records with cyclical sectors continuing to see inflows.

Benchmark indices in Japan, South Korea and Australia have opened with gains. Bonds in the U.S. were steady after the treasury yield curve steepened on Wednesday.

The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, rose 0.5% to 13,152 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 higher by 140 points. The index crossed the 30,000 mark on Tuesday, ending at a record high, with gains of 1.5%.
  • Covid-19 cases in the U.S. continue to rise with more states enacting restrictions ahead of the thanksgiving holiday.
  • “When you see that reflation trade coming back, it’s telling you that investors are gaining confidence in growth prospects looking forward,” Anna Han of Wells Fargo Securities told Bloomberg TV.
  • Bitcoin rose to a three-year high, crossing the mark of $19,000.
  • Minutes of the most recent FOMC meeting are due today, along with jobless claims and GDP data.
  • Yield on the 10-year treasury stood at 0.88%.
  • West Texas Intermediate crude fell 0.3% to $44.79 per barrel.

Get your daily fix of the global markets here.

All You Need To Know Going Into Trade On November 25

Stocks To Watch

  • Muthoot Finance: RBI refuses the company's request for a No Objection Certificate to acquire IDBI Capital Markets & Securities, IDBI Trustee & IDBI Asset Management. The central bank said that the activity of owning an Asset Management Company or sponsoring a Mutual Fund is not in consonance with the activity of operating an NBFC. The company has informed SEBI that it is unable to proceed with the transaction that was announced in November last year.
  • Lasa Supergenerics: Bombay High Court restrains competitor from manufacturing Albendazole. It has also granted other reliefs to the company in the patent infringement case, until the disposal of the suit.
  • Sreeleathers: Board approves buyback of up to 20 lakh shares worth Rs 32 crore. The buyback price of Rs 160 per share is a 6.6% premium to Tuesday's closing price.
  • Tata Chemicals: Tata Sons chairman N Chandrasekaran appointed additional director and chairman of the company from November 24 after Bhaskar Bhat stepped down.
  • IRB Infra: Gets completion certificate from competent authority for Agra-Etawah Bypass BoT project. The project was implemented by an SPV - AE Tollway Ltd. which is now part of the company. As a result, the toll rates for the SPV will increase by ~70% and toll on this project will now be collected at revised rates.
  • Glenmark: S&P has affirmed the company's rating at BB- while outlook is revised to stable. The stable outlook on Glenmark reflects the expectation that the company's operating performance will remain resilient over the next 12-18 months such that its ratio of funds from operations (FFO) to debt stays sustainably above 20%.
  • Hindustan Aeronautics: Workmen unions at Bengaluru and Koraput Division have given notice of nation-wide general strike on November 26.
  • Ingersoll Rand India: OFS for non-retail investors gets 273% demand as compared to the shares on offer. Bids were received at an indicative price of Rs 603 per share. The OFS for retail investors opens today.

Brokerage Radar

CLSA On Tata Motors

  • Buy rating maintained
  • Price target of Rs 220
  • Volume recovery continues to be driven by China
  • Estimate JLR's overall retail sales decline moderated to 4% in October
  • U.K. and EU business remains weak
  • Sequential volume recovery coupled with cost cuts should drive free cash flow generation and deleveraging
  • Brexit overhang could create near-term volatility
  • Risks include a sudden recovery slowdown and no-deal brexit

Maybank On Bharti Infratel

  • Buy rating maintained
  • Price target of Rs 270
  • Will announce an extraordinary dividend of Rs 17.8 per share in the next three months, as part of the merger covenants
  • Buy rating based on inexpensive valuations, annuity business and attractive yields
  • Will maintain dividend payout of 100% from FY22E onwards driving attractive dividend yields
  • Free Cash Flow yield is also attractive at 14-15% for FY22-23E

CLSA On Indian Telecom

  • TRAI data reveals sector revenues during Q2 were up 26% year-on-year and are up 33% from the lows of Q4FY19
  • Metros which were most impacted by Covid-19 last quarter have seen the highest revenue growth
  • Vodafone India's share loss decelerated but it has lost 22% revenue market share from the peak
  • See Bharti Airtel as well placed to play the sector's growth with 4G penetration at 52% of its subscribers and leading ARPUs
  • Remain positive on Reliance Jio

CLSA On Cement

  • Industry demand was up mid-single-digits year-on-year in Q2
  • Demand outlook remains robust with other pillars picking up as rural demand normalises
  • Cost pressures rising but are likely to be partly offset by resilient prices
  • Expect a 7% volume decline and 14% Ebitda per tonne increase year-on-year for companies under coverage
  • Remain positive on the sector outlook with ACC, Dalmia Bharat and UltraTech remaining top picks

BofA Securities On Jubilant Foodworks

  • Buy rating maintained
  • Price target raised to Rs 2,800 from Rs 2,500
  • Betting on industry consolidation, new prospects and revived growth
  • Worst in terms of earnings growth is behind us
  • Expect Jubilant to continue to explore prospects in non-pizza segments to augment its portfolio to capture a larger market share in the long-term
  • The above factors can drive re-rating for the stock

Jefferies On SBI Life Insurance

  • Buy rating maintained
  • Price target of Rs 1,040
  • Guides for positive single-digit growth in FY21
  • PSU banca tie-ups are gaining momentum
  • Persistency trends are improving across all cohorts and can aid margins in H2FY21
  • Delayed protection price hike may impact margins
  • May be open to M&A opportunities among PSU Bank-led insurance firms

Pledge Share Details

  • Ajanta Pharma: Promoter Aayush Agrawal created pledge of 1.2 lakh shares on November 23.
  • Asian Granito: Promoters created pledge of 3.38 lakh shares between November 19-20.
  • JSW Energy: Promoter Glebe Trading created pledge of 1.1 crore shares on November 20.
  • Adani Green Energy: Promoter Adani Trading Services revoked pledge of 1.1 crore shares on November 23

(As reported on November 24)

Bulk Deals

  • Religare Enterprise: Singularity Holdings acquired 19.85 lakh shares (0.77%) at Rs 51.52 per share.
  • Reliance Infra: Axis Trustee Services sold 54.1 lakh shares (2.07%) at Rs 21.45 per share.

Who’s Meeting Whom

  • Indian Energy Exchange: To meet Sundaram Mutual Fund on November 25.
  • Mahindra Logistics: To meet Yes Securities on November 27.
  • VST Tillers Tractors: To meet Dhanki Securities on November 25.
  • Dixon Technologies: To meet KGI Funds and Enam AMC between November 26-27
  • Brigade Enterprises: To meet Spark Capital on November 25

Trading Tweaks

  • AGM: Smartlink Holdings, Orient Abrasives.
  • Record Date For Share Buy Back: Mayur Unquoters.
  • Record Date For Rights Issue: Pricol (Rights at 2:7, at premium of Rs 29 per share)
  • Price Band Revised From 20% To 10%: Vascon Engineers.
  • Price Band Revised From 10% To 5%: Future Lifestyle Fashions, Future Retail, Lakshmi Vilas Bank, Thomas Cook.
  • Move Into ASM Framework: Goa Carbon, Digispice Technologies, Vardhman Special Steels, Vascon Engineers.
  • Move Into Short Term ASM Framework: IDFC, NIIT, Jain Irrigation, Anant Raj, Aarti Surfactants, Trigyn Technologies, Manaksia Steels, Talbros Automotive Components.

Insider Trades

  • Godrej Industries: Promoter Anamudi Real Estates acquired 6.57 lakh shares between November 18-19.
  • HFCL: Promoter MN Ventures acquired 5 lakh shares on November 24.
  • UPL: Promoter Uniphos Enterprises acquired 1 lakh shares between November 19-20.
  • Panama Petrochem: Promoter Amin Rayani acquired 2.11 lakh shares between November 20-24.
  • Confidence Petroleum: Promoters acquired 11 lakh shares between June29 -November 24

(As reported on November 24)

Money Market Update

  • The rupee ended at 74.01 against the U.S. Dollar as compared to Monday's close of 74.11.
  • The currency was the second best performer in Asia on Tuesday.
All You Need To Know Going Into Trade On November 25

F&O Cues

  • Nifty November futures closed at 13,078; premium of 23 points from 14 points
  • Nifty November futures shed 16% and 16.4 lakh shares in Open Interest
  • Nifty Bank November futures closed at 29,783; premium of 46 points from discount of 9 points
  • Nifty Bank November futures shed 8.4% and 1.1 lakh shares in Open Interest
  • Nifty Put-Call Ratio at 1.63

Nifty Monthly Expiry: November 26

  • Maximum Open Interest on Call side at 13,500 strike (34 lakh shares)
  • Maximum Open Interest on Put side at 12,800 strike (44 lakh shares)
  • Active Options: 13,000 Put (+26.6 lakh shares) and 12,900 Call (-11 lakh shares)
All You Need To Know Going Into Trade On November 25
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