Nifty Snaps Three F&O Series Gaining Streak

Indian equity benchmarks extended declines for the third consecutive trading session.

The S&P BSE Sensex fell 0.72 percent to end at 41,163.76 and the NSE Nifty 50 fell 0.72 percent to close at 12,126.55. The broader markets represented by the NSE Nifty 500 Index fell 0.52 percent. Both the 31-stock index and the 50-share gauge logged their steepest fall in 20 days.

The Nifty index’s futures and options series snapped its three months gaining streak in December. Nifty fell 0.17 percent and Nifty Bank fell 0.39 percent.

The market breadth, however, was tilted in favour of buyers. About 948 stocks advanced and 847 shares declined on National Stock Exchange.

Nine out of 11 sectoral gauges compiled by NSE ended lower, led by the NSE Nifty PSU Bank Index’s 1.4 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 0.84 percent.

Dishman Carbogen

• Stock hit upper circuit of 10 percent.
• Shares halted a six-day losing streak.

Mahindra CIE Automotive

• Shares of Mahindra CIE Automotive rose as much as 11.1 percent, the most since Sept. 20, to Rs 179.50.
• “Autoparts maker are rallying on anticipation of a potential scrappage policy being introduced, which was tabled in Parliament last month.” LKP Securities’ analyst Ashwin Patil told Bloomberg.

SAIL

• Stock rose as much as 4.4 percent to Rs 42.80.
• Fresh longs seen with high open interest of 38 percent.
• Trading volume was 1.5 times its 20-day average.

Navin Fluorine

• Stock rose as much as 3.8 percent to Rs 1,047.70.
• Shares rose for tenth consecutive trading session, their longest gaining streak since listing.

Westlife Development

• Stock rose as much as 2.9 percent to Rs 350.
• Trading volume was almost 30 times its 20-day average.

Infibeam Avenues

• Stock rose as much as 18.9 percent to Rs 55.45.
• Trading volume was almost 14 times its 20-day average.

Gujarat Narmada Valley Fertilisers & Chemicals

• Stock rose as much as 6.4 percent to Rs 177.70.
• Trading volume was almost six times its 20-day average.

Bharat Dynamics

• Stock rose as much as 7.2 percent to Rs 303.90.
• Trading volume was almost five times its 20-day average.

U.S. equity-index futures edged higher with Asian stocks on Thursday as investors looked ahead to the promised January milestone for trade relations between the world’s biggest economies and a hoped-for revival of global growth in 2020.

• Futures on the S&P 500 Index increased 0.1 percent.
• The Shanghai Composite Index gained 0.9 percent.
• The MSCI Asia Pacific Index gained 0.2 percent.
• The MSCI All-Country World Index was little changed.

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Source: Bloomberg

Shares of Minda Corp hated a two-day losing streak and rose as much as 10.6 percent, the most since Oct. 30, to Rs 99.90.

Trading volume was almost six times its 20day average, Bloomberg data showed. Of the shares traded, 49 percent were at the ask price and 45 percent were at the bid.

Shares of Jet Airways hit an upper circuit of 5 percent for the seventh consecutive trading session. The stock surged 40 percent during the period.

“Lenders to Jet Airways (India) Ltd. have decided to seek fresh initial bids for the bankrupt airline, according to an exchange filing on Dec. 23. The grounded airline is undergoing insolvency proceedings at the National Company Law Tribunal and its Committee of Creditors are seeking a buyer to recover dues,” according to PTI report.

Shares of Mahindra CIE Automotive rose as much as 11.1 percent, the most since Sept. 20, to Rs 179.50.

“Autoparts maker are rallying on anticipation of a potential scrappage policy being introduced, which was tabled in Parliament last month.” LKP Securities’ analyst Ashwin Patil told Bloomberg.

Eight out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Bank Index’s 0.79 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 1.06 percent.

Indian equity benchmarks traded at day’s low after fluctuating between gains and losses in the opening trade.

The S&P BSE Sensex fell 0.23 percent to 41,362.66 and the NSE Nifty 50 fell 0.23 percent to 12,185.40. The broader markets represented by the NSE Nifty 500 Index fell 0.12 percent.

Nifty’s 12,200 put option contract was among the most active Nifty option contracts on National Stock Exchange.

Premium on the contract, which is set to expire today, rose 5.32 percent to Rs 15.85. Over 24.13 lakh shares were added to the open interest which stood at over 52.47 lakh shares.

Shares of Rane Group companies surged in today’s trade with Rane Engine Valve, Rane (Madras) hitting their upper circuit of 20 percent.

Shares of Dishman Carbogen halted a six-day losing streak. The stock hit an upper circuit of 10 percent at Rs 79.30.

The stock had declined 43 percent in the last six trading sessions. Trading volume was almost 60 times its 20-day average, according to Bloomberg data.

Shares of Infibeam Avenues halted their two-day losing streak and rose as much as 10.1 percent, the most since Nov. 21, to Rs 51.35.

Trading volume was more than five times its 20-day average, Bloomberg data showed. The stock traded at 29 times its estimated earnings per share for the coming year.

Shares of IIFL Wealth Management fell as much as 15 percent, the most on record, to Rs 924. The stock has declined for the seventh consecutive trading session.

Of the shares traded, 33 percent were at the ask price and 64 percent were at the bid, according to Bloomberg data. The stock declined 14 percent since its listing on Sept. 19, 2019.

Indian equity benchmarks fluctuated between gains and losses in the opening trade.

The S&P BSE Sensex and the NSE Nifty 50 traded little changed at 41,442 and 12,207.80 respectively. The broader markets represented by the NSE Nifty 500 Index, too, traded flat.

The market breadth was tilted in favour of buyers. About 857 stocks advanced and 578 shares declined on National Stock Exchange.

Seven out of 11 sectoral gauges compiled by NSE traded lower, led by the NSE Nifty PSU Pharma Index’s 0.1 percent fall. On the flipside, the NSE Nifty Metal Index was the top sectoral gainer, up 0.14 percent.

Index Futures

• Nifty December futures closed at 12,238.4, premium of 23.9 points versus 13.7 points.
• Nifty futures OI across series down 3 percent, sheds 5 lakh shares in OI.
• Nifty Bank December futures closed at 32,307.7, premium of 27 points versus discount of 10 points.
• Nifty Bank futures OI across series up 5 percent, adds 83,000 shares in OI.
• Rollovers –Nifty 54 percent, Nifty Bank 51 percent.

Options

• Nifty PCR at 1.47 versus 1.66 (across all series)
• Nifty Monthly Expiry: Dec 26
• Max OI on call side at 12,300 (34 lakh shares)
• Max OI on put side at 12,000 (30.5 lakh shares)
• OI addition seen at 12,250C (+12.2 lakh shares), 12,300C (+5.2 lakh shares)

Securities In Ban

• Dish TV

• Narayana Hrudayalaya to meet Centrum Capital on Dec. 26.

• Kesoram Industries record date for spin off (demerger).
• Balmer Lawrie ex-date for bonus issue at 1:2.
• Mcleod Russel to move into short term ASM Framework.
• Dishman Carbogen Amcis price band revised to 10 percent.

The Indian rupee opened unchanged at 71.27 against the U.S. dollar.

Indian equity benchmarks are set to open higher.

The S&P BSE Sensex rose 0.45 percent to 41,646 during the pre-market trade and the NSE Nifty 50 rose 0.12 percent to 12,231.35

• Dishman Carbogen Amcis: Motilal Oswal AMC sold 24.58 lakh shares or 1.52 percent equity at Rs 73.79 each.
• Dixon Technologies: Promoter Kamla Vichani sold 75,000 shares or 0.66 percent equity at Rs 3715.47 each.

• Bharti Infratel has deferred its proposed merger with Indus Towers till February 2020. The merger, was deferred after the two companies failled to secure all the necessary approvals from the government. The deal is key for India’s struggling operators’ which are looking to unlock value.
• Bharti Airtel’s African arm has announced the price for its listing on the Malawi Stock Exchange. The telecom operator will divest 20 percent stake at $0.02 per share aggregating to $37.5 million, to meet relevant norms.
• GAIL has clarified that it is not in the process of hiving off its pipeline business into a separate unit. The gas distributor added that it has also not received any directive to do the same.
• United Breweries has said its not aware of any event that hint at the possibility of Heineken raising stake in the company.
• Yes Bank: Brickwork Ratings has downgraded the Bank’s Lower Tier II Bonds rating, from ‘BWR AA-’ to ‘BWR A’, and of Upper Tier II Bonds, Hybrid Tier I Bonds and Innovative Perpetual Debt Instruments from ‘BWR A+’ to ‘BWR A-’. The Outlook continues to remain Negative, considering the risk of continuing weakness in asset quality and to monitor the capital raising plans of the bank to provide cushion to absorb any increase in risk-weighted assets and assist credit growth.
• HCL Technologies has announced the opening of Global Delivery Center in Canada.
• Sintex Industries: Invesco Asset Management has filed a petition before NCLT Ahmedabad under insolvency proceedings for Rs 15 crore. The case is yet to be admitted to NCLT.
• GMR Infra said that promoters have 63.6 percent stake in the company, 72.3 percent of which are encumbered.
• Reliance Industries: The National Company Law Appellate Tribunal has dismissed the Income Tax Department’s petition objecting to Reliance Jio Infocomm’s proposed demerger scheme to hive off its fiber and tower business into two separate units.
• NTPC is planning to add 10 gigawatt of solar energy generation capacity by 2022, which entails an investment of around Rs 50,000 crore, to be funded mainly by green bonds, a source has said.
• HDFC will raise up to Rs 2,500 crore by issuing bonds on a private placement basis. The secured redeemable non-convertible debentures are to be allotted on a private placement basis on Friday for an issue size of Rs 2,500 crore, HDFC Ltd. said in a regulatory filing on Tuesday.

• U.S. Markets were shut on Wednesday for Chirstmas. On Tuesday, The S&P 500 Index slipped but held onto a 28 percent gain for the year
• Oil held gains as an industry report showed American inventories shrunk. Futures in New York rose as much as 0.7 percent, on track for the largest monthly gain in almost a year, according to Bloomberg report.

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Good Morning!

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, traded little changed at 8:30 a.m.

Asian stocks saw another quiet year-end session on Thursday, sitting on an advance of almost 9 percent for the quarter thanks to ebbing concerns about U.S.-China trade tensions and expectations of a global economic pickup in 2020.

Shares ticked higher in Tokyo and were flat in Seoul, without a cue from Wall Street overnight given the Christmas holiday. Shanghai saw a muted open, while Hong Kong and Sydney were still shut. U.S. futures were little changed.

Short on time? Well, then listen to this podcast for a quick summary of All You Need To Know before the opening bell.