All You Need To Know Going Into Trade On Dec. 27

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Asian stocks climbed on Thursday after the biggest rally in U.S. equities since 2009 offered relief from this month’s wrenching global market downturn.

Japanese benchmarks jumped about 4 percent at the open and Australian shares advanced more than 1 percent as trading resumed after holidays there. Korean stocks were flat. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.23 percent to 10,786.50.

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

U.S. Market Check

• U.S. stocks staged one of the biggest rallies of the 9 1/2 year bull market after coming within points of seeing it end, with major indexes surging at least 4.9 percent.
• The yield on 10-year Treasuries was at 2.80 percent after climbing almost 7 basis points.

Also Read: Back From Dead or Dying Gasp? Giant Rally Gets Bulls’ Blood Racing

Asian Cues

• The MSCI Asia Pacific Index rose 1.1 percent.
• Japan’s Topix gained 3.9 percent and the Nikkei 225 rose 3.8 percent.
• Futures on the S&P 500 Index dipped 0.2 percent.
• Futures on the FTSE China A50 climbed 1.2 percent earlier.
• Kospi dropped 0.3 percent.

Also Read: Asian Debt Defaults Are Expected to Rise

Commodity Cues

• West Texas Intermediate crude rose 0.6 percent to $46.49 a barrel after gaining 8.7 percent Wednesday.
• Brent crude ended 7.9 percent higher at $54.47 a barrel.
• Gold was flat at $1,269.48 an ounce.

Indian ADRs

Stocks To Watch

• Sun Pharma arm ‘Dusa Pharmaceuticals’ got awarded Preliminary Injunctive Relief by U.S. federal district court prohibiting defendants Biofrontera from using Dusa’s proprietary trade secret information. Earlier this year, the Sun Pharma arm filed a lawsuit against Biofrontera alleging trade secret misappropriation and patent infringement of the company’s photodynamic therapy patents and Levulan Kerastick drug.
• Hindustan Unilever clarified on the news of GST Authority finding guilty of profiteering Rs 383 crore stating that no methodology has been determined by National Anti-Profiteering Authority as required under the law to determine if benefit has been passed or not. HUL will consider legal options available to it. On Dec. 24 the anti-profiteering authority ruled passed on order against the company to deposit Rs 223 crore.
• Man Industries: Securities and Exchange Board of India imposed Rs 10 crore fine on 3 promoters of the company for failing to make an open offer to the company’s shareholders. The regulators conducted a probe in the shareholding of the company during June to September in the year 2010, while observing that shareholding of the promoter’s increased from 51.29 percent to 55.18 percent. Under the SEBI regulations, it is mandatory to make an open offer if the promoter’s shareholding crosses the threshold limit of 55 percent.
• NTPC Limited: Investment approval has been accorded for Bilhaur Solar Project of 140 MW capacity and Auraiya Solar Project of 20 MW capacity. Previously on Oct. 11, the company had won 160 MW solar capacities in Uttar Pradesh’s Energy Agency’s Solar Tender.
• Entertainment Network (India) clarified that terrestrial broadcasting was disrupted for only 30 hours due to fire in its Mumbai’s Common Transmission Infrastructure and the amount of damage is not significant and the equipment of the company at these common infrastructure is already insured.
• Cimmco’s promoter Titagarh Wagons to sell 15.4 lakh shares (5.64 percent equity) today and tomorrow through an offer for sale route. The floor price for OFS set at Rs 38 per share, a discount of 11 percent to the last regular trade.

Also Read: Sun Pharma Arm Gets Relief From U.S. Court In Patent Infringement Case

Media Reports

• Carlyle-GIC set to acquire 10 percent in SBI Life Insurance for Rs 5,200 crore (Economic Times)

Who’s Meeting Whom

• Crompton Greaves Consumer Electricals to meet HDFC Securities on Dec. 27.
• Mahindra Logistics to meet Motilal Oswal AMC and Morgan Stanley from Jan. 3 to Jan. 7.

Insider Trades

• Grasim Industries promoter Pilani Investment and Industries acquired 2,233 shares on Dec. 24.

Trading Tweaks

• Rites ex-date for interim dividend at Rs 4.75 per share.
• Sayaji Industries ex-date for stock split from Rs 10 to Rs 5.
• Triveni Turbine ex-date for share buyback.
• Ortel Communications to move into ASM Framework.
• SPL Industries price band revised to 10 percent.
• Kushal price band revised to 2 percent.

Money Market Update

• Rupee closed at 70.08/$ on Wednesday versus Monday’s close of 70.15/$.

F&O Cues

• Nifty December futures closed trading at 10,749, premium of 20 points.
• Maximum open interest for December series call at 11,000 strike price, open interest at 44.0 lakh shares.
• Maximum open interest for December series put at 10,500 strike price, open interest at 36.7 lakh shares.

Stocks In F&O Ban

• In ban: Adani Power
• Out of ban: Adani Enterprises

Put-Call Ratio

• Nifty PCR at 1.39 from 1.26
• Nifty Bank PCR at 1.16 from 0.81

Brokerage Radar

Motilal Oswal on Petronet LNG

• Maintained ‘Buy’ with a price target of Rs 317.
• Increasing LNG glut to support prices.
• Competition to remain moderate.
• See strong earnings visibility.

Motilal Oswal on Indian Telecom

• Earnings pressure persists; revival bleak.
• High cash burn leading to dilution and asset sale.
• Airtel’s cash burn & leverage situation reaching uncomfortable level.
• Vodafone Idea on ventilator with six-to-eight quarters of cash even after recent dilution plan.

Edelweiss on Metals

• LME aluminium slipped below $1,900 per tonne for the first time since August 2017
• Weak Chinese demand in the second half of 2018 and further uncertainties to remain in 2019.
• Prefer Hindalco among non-ferrous players.

. Read more on Markets by BloombergQuint.