India Markets closed

All You Need To Know Going Into Trade On Dec. 20

The Smarter way to get your business news - Subscribe to BloombergQuint on WhatsApp

Asian stocks declined after U.S. equities swung from gains to losses as Federal Reserve Chairman Jerome Powell failed to quell investor concerns that tightening policy will choke economic growth.

Equities opened lower in Japan and South Korea, while futures signaled most other Asian markets will be off to a negative start. Still, declines were subdued as U.S. futures ticked higher.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, fell 0.84 percent to 10,893 as of 7:12 a.m.

Short on time? Well, then listen to this podcast for a quick summary of the article!

Here’s a quick look at all that could influence equities today.

U.S. Market Check

  • U.S. stocks careened to a 15-month low after Jerome Powell failed to quell investor angst that the Federal Reserve’s tightening policy will throttle economic growth.
  • Investors had anticipated a less aggressive approach after U.S. stocks tumbled into a correction amid concern that global growth is slowing.

Also Read: Fed Raises Rates, Turns More Cautious on Outlook for 2019 Hikes

Asian Cues

  • Japan’s Topix index fell 0.6 percent in Tokyo.
  • Australia’s S&P/ASX 200 Index was little changed.
  • South Korea’s Kospi index dropped 1.1 percent.
  • Futures on the FTSE China A50 fell 1 percent.
  • S&P 500 futures rose 0.3 percent. The S&P 500 fell 1.5 percent at the close in New York.

Also Read: Brazil, Indonesia Expected to Lead Emerging-Market Comeback in 2019

Coming Up

  • The Bank of Japan’s monetary policy decision is due Thursday, followed by a briefing from Governor Haruhiko Kuroda. A Bank of England decision is also Thursday.

Commodity Cues

  • West Texas Intermediate crude slid 1.9 percent to $47.28 a barrel, trimming a 3.4 percent rally Wednesday.
  • Gold was steady at $1,243.85 an ounce.

Also Read: Oil Spirals Below $47 as Dark Clouds Envelop Demand Outlook

Indian ADRs

Stocks To Watch

  • Pfizer Inc entered into a joint venture agreement with GlaxoSmithKline Plc to create a global consumer company. However the entity will not include brands like Corex, Gelusil and Becosules and they will be continued to be marketed by Pfizer’s Indian arm in its respective territory.
  • Uflex launched three packaging foil solutions for pharma companies. Executive Director Amitava Ray said that the ‘fast tear strip’ foil will prove to be a game-changer for the pharma industry globally and they saw a potential growth market of 5,000 tons annually in India.
  • Reliance Industries clarified on the news regarding Department of Telecommunications rejecting Reliance Communication-Jio spectrum deal stating that a correspondence was received by the company from DoT on Dec. 18 with respect to application and the company is seeking appropriate clarifications in this regard.
  • Coal India seeks to buy coking coal mines in Australia and Canada. The state run-miner has identified “certain assets’, which are under different stages of due diligence, Coal Minister Piyush Goyal tells lawmakers in a written reply to questions. (Bloomberg News)
  • Tata Consultancy Services aunched Cloud Solutions Program in Canada. This solution provides cloud infrastructure and secured functioning between premise and public cloud environment.
  • Cosmo Films launched sterilisable conduction sealing film. This film is mainly used in dairy industry for flavored milk, pharma industry and bakery products.
  • Religare Enterprises’ subsidiary filed a criminal complaint against the Singh brothers, former promoters of the parent, and their associates for allegedly siphoning and misappropriating Rs 740 crore.
  • JSW Steel said that NCLT approved the resolution plan in the insolvency resolution process for Vardhman Industries.
  • KPIT Technologies: NCLT approved the merger plan with Birlasoft, which will then split into two-publicly traded companies. The tribunal also approved the demerger of company’s engineering business into KPIT Engineering.
  • Alembic Pharma received zero observations under Form 483 from the U.S. FDA for its API facility in Gujarat.
  • Allcargo Logistics said it will explore emerging business opportunities related to Container Freight Stations, Inland Container Depots and Logistics Parks in India.
  • Thomas Cook board approved amalgamation of its three arms with self. The board also gave a nod to the demerger of the inbound business of the company to SOTC Travel and demerger of company’s Human Resources Services Business to Quess Corp.

Who’s Meeting Whom

  • Gujarat Pipavav Ports to meet Indsec Securities & Finance on Dec. 20.
  • Mahindra Holidays & Resorts to meet Sundaram MF, Franklin Templeton and other investors on Dec. 21.
  • Eicher Motors to meet Axis Capital on Dec. 20.
  • Shriram City Union Finance to meet Batlivala & Karani Securities and Newmark Capital between Dec. 20-28.

Insider Trading

  • Orient Bell promoter acquired 11,000 shares on Dec. 18.
  • Max India promoter Max Ventures Investment Holdings sold 1.9 crore shares on Dec. 17.
  • Jindal Stainless promoter Abhyuday Jindal acquired 50,000 shares between Dec. 17 and 18.

(As reported on Dec. 19)

Trading Tweaks

  • Bosch, SKF India Ex-Date for share buyback.

Money Market Update

  • Rupee on Wednesday closed at 70.40/$ versus Tuesday’s 70.42/$.

Also Read: Rupee’s Santa Rally Heralds a Brighter 2019

F&O Cues

  • Nifty December futures closed trading at 10,986, premium of 19 points.
  • Max open interest for December series at 11,000 strike value call option (open interest at 38 lakh shares)
  • Max open interest for December series at 10,000 strike value put option (open interest at 47 lakh shares)

Stocks In F&O Ban

  • Adani Enterprises
  • Adani Power
  • Jet Airways
  • Reliance Capital

Put-Call Ratio

  • Nifty PCR at 1.66 from 1.58.
  • Nifty Bank PCR at 1.36 from 1.51.

Get a detailed drawdown of derivatives on BloombergQuint's F&O page.

. Read more on Markets by BloombergQuint.