All You Need To Know Going Into Trade On November 27
A sense of caution prevails across Asian markets on the final trading day of the week, as markets are set to log their best monthly gain in years.
Benchmark indices in Japan are trading with gains while those in Australia and South Korea are drifting lower. The MSCI Asia Pacific Index is on course for a 12% surge in November.
The Singapore-traded SGX Nifty, an early indicator of the Nifty 50 Index’s performance in India, was little changed at 13,045 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 currently trading 80 points lower. U.S. equities were shut on Thursday on account of thanksgiving.
- Even with three potentially successful vaccines on the table, sentiment remains fragile as the virus toll continues to rise in Europe and the U.S.
- "The expectation of a full reopening of the global economy remains firmly priced,” according to Ben Emons of Medly Global Advisors who said this to Bloomberg TV.
- Global stocks remain on track for the best month on record, up 13%, and that’s lifted valuations to near the highest in about 20 years.
- Yield on the 10-year treasury fell three basis points to 0.85%.
- West Texas Intermediate Crude fell 1.6% to $44.95 per barrel.
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Stocks To Watch
- Lakshmi Vilas Bank: Several promoter entities challenged the scheme of amalgamation with DBS India. RBI counsel said that the continuity of the financial system, depositor interest and economy was important. The commerce cycle will resume as soon as the moratorium is lifted. The counsel further said that this is a legislative action by the Union of India and that petitioners are asking for a stay on the same. The Bombay High Court has refused interim relief to the promoter entities. The lender has also informed the exchanges that tier-2 bonds of the bank will be written down as part of the amalgamation.
- Ramkrishna Forgings: Started the commercial production of hollow spindle line from November 26. This will enhance the production capacity by 10,200 tons per annum.
- Gillette: Received an order from the National Anti-Profiteering Authority, which has alleged that the company has profiteered to the tune of Rs 58 crore and has directed the company to deposit the profiteered amount with interest in Consumer Welfare Funds. The company responded saying that it has passed on the net benefit of the reduced GST rates to its recipients and has not profiteered from the same. The Company is reviewing the said order and will take appropriate steps in due course.
- AU Small Finance Bank: Makes strategic investment of Rs 7.7 crore in the National Payments Council of India by acquiring 0.44% stake at Rs 1,256 per share.
- Mahindra & Mahindra: Acquired 2.76% stake in TVS Automobile Solutions by subscribing to Series IV Compulsorily Convertible Preference Shares worth 35 crore rupees. In a separate transaction the company's wholly-owned subsidiary Mahindra Holdings has agreed to sell its entire stake in Mahindra First Choice Services and Auto Digitech To TVS Automobile Solutions. Both the stakes are sold for a sum of 21.5 crore rupees and 13.5 crore rupees respectively.
Macquarie On Thermax
- Underperform rating maintained
- Price target of Rs 710
- Order inflow risks skewed to the downside
- Ongoing discussions with the government for extension of timelines for FGD to 2024 poses a risk to Thermax
- Chemicals segment can support earnings going forward
- Valuations are expensive given growth uncertainty from weak capex cycle
Morgan Stanley On Metals
- See more legs to rally in steel stocks
- Macro conditions are favourable for continued strength in steel prices
- Market is not yet pricing in current spreads which are higher than eight-year averages but still below peak levels in India
- Valuations are still lower than the last upgrade cycle, leaving room for upside
- See room for potential re-rating for Tata Steel & JSW Steel
- Key Risk: Disruption to production / demand recovery and increasing restrictions on economic activities
Antique Stock Broking On NMDC
- Buy rating maintained
- Price target of Rs 127
- Domestic ore prices continue to surge; still at deep discount to international prices
- Majority of the auctioned mines in Odisha yet to commence operations
- Potential levy of additional premium would be offset by contribution from incremental volumes at Donimalai
- Dividend yields would remain attractive at 6-7% over FY21-23E
Pledge Share Details
- Adani Green Energy: Promoter Adani Trading Services released pledge of 1.1 crore shares on November 23
- JSPL: Promoters created pledge of 22 lakh shares between November 20-26.
(As Reported On November 26)
- Paisalo Digital: Heshika Growth Fund sold 2.34 lakh shares (0.92%) at Rs 381.63 per share and ANTARA India Evergreen Fund acquired 2.34 lakh shares (0.92%) at Rs 381.64 per share.
- Greaves Cotton: Smallcap World Fund sold 38.79 lakh shares (1.68%) at Rs 75.27 per share.
- Tube Investments of India: Smallcap World Fund acquired 23.66 lakh shares (1.26%) at Rs 841 per share and HDFC Mutual Fund sold 23.5 lakh shares (1.25%) at Rs 841 per share.
Who’s Meeting Whom
- Gujarat Pipavav Port: To meet Capital International Investors on November 27.
- Price Band Revised From 20% To 10%: DB Realty, Rushil Décor.
- Price Band Revised From 10% To 5%: Agro Phos, Tijaria Polypipes, OnMobile Global.
- Move Into ASM Framework: Alphageo, Bkm Industries.
- Move Into Short Term ASM Framework: Reliance Capital, Rushil Décor, SKIL Infra, Panama Petrochem.
- Move Out Of Short Term ASM Framework: HSIL, HPL Electric & Power, MAS Financial Services.
- HFCL: Promoter MN Ventures acquired 5 lakh shares on November 26.
- Godrej Industries: Promoter Anamudi Real Estates acquired 2.1 lakh shares between November 20-23.
- SMS Pharma: Promoters sold 32 lakh shares on November 25.
- Sequent Scientific: Promoter Chayadeep Ventures sold 50,193 shares on November 24.
- Aarti Industries: Promoters sold 1.45 lakh shares between November 17-25.
(As Reported On November 26)
Money Market Update
- The rupee ended little changed on Thursday at 73.88 against the U.S. Dollar, as compared to Wednesday's close of 73.91.
- The rupee was the fourth worst performer in Asia on Thursday.
- Nifty December futures closed at 13,043; premium of 56 points from discount of 1 point
- Nifty December futures add 31% and 27.2 lakh shares in Open Interest.
- Nifty Bank December futures closed at 29,554; premium of 5 points from discount of 11 points
- Nifty Bank December futures shed 47% and 3.4 lakh shares in Open Interest.
- Nifty Put-Call Ratio at 1.71
Nifty: December 3 Expiry
- Maximum Open Interest on Call side at 13,500 strike (25.1 lakh shares)
- Maximum Open Interest on Put side at 12,800 strike (19.3 lakh shares)
- Active Options: 13,500 Call (+11.2 lakh shares) and 12,800 Put (+11.8 lakh shares)
Nifty: December 31 Expiry
- Maximum Open Interest on Call side at 13,000 strike (25.1 lakh shares)
- Maximum Open Interest on Put side at 13,000 strike (19.7 lakh shares)