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All You Need To Know Going Into Trade On Nov. 28

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Asian stocks traded mixed Wednesday as investors mulled comments from Federal Reserve officials and the chances of a breakthrough in the U.S.-China trade dispute.

Shares rose in Tokyo and were little changed in Sydney and Seoul. Futures pointed to gains in Shanghai and Hong Kong after the S&P 500 Index climbed for a second day. The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.2 percent to 10,713.50 as of 7 a.m.

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

U.S. Market Check

  • Stocks rose as investors assessed the chances for a detente in the U.S.-China trade tussle.
  • The yield on 10-year Treasuries held at 3.06 percent.

Also Read: Trump Signals U.S. Likely to Go Ahead With China Tariff Increase

Asian Cues

  • Japan’s Topix index advanced 0.3 percent.
  • Australia’s S&P/ASX 200 Index slipped 0.1 percent.
  • FTSE China A50 futures rose 0.6 percent.
  • Futures on Hong Kong’s Hang Seng gained 0.4 percent.
  • S&P 500 futures rose 0.1 percent.

Also Read: China Makes New Friends in Europe's Former Crisis Nations

Commodity Cues

  • West Texas Intermediate rose 0.9 percent to $52.09 a barrel.
  • Brent crude ended 0.45 percent lower at $60.21 per barrel.
  • Gold lost 0.1 percent to $1,214.18 an ounce.

Also Read: Crude Pushes Higher After Report Shows Gasoline Stocks Decline

London Metal Exchange:

  • Aluminium halted a two-day rally, down 1.08 percent.
  • Copper ended lower for the third day, down 1.09 percent.
  • Zinc ended lower for the third day, down 2.1 percent.
  • Nickel ended lower for the seventh day, clocking its longest losing streak in over 13 months.
  • Lead ended lower for the fourth day, registering its longest losing streak in over two years.
  • Tin ended 3.3 percent lower.

Here are the key events to watch out for this week:

  • Presidents Donald Trump and Xi Jinping plan to meet at the G-20 summit in Argentina that kicks off on Friday.
  • Federal Reserve Chairman Powell addresses the New York Economic Club on Wednesday.
  • Thursday sees the release of the minutes from the Federal Open Market Committee’s November meeting.

Indian ADRs

Stocks To Watch

  • Lupin’s Ramesh Swaminathan resigns as the Chief Financial Officer of the company with effect from December end. According to the exchange filing, he will pursue other responsibilities outside the pharmaceutical industry.
  • Competition Commission of India Approves LIC’s Acquisition of up to 51 percent equity stake in IDBI Bank.
  • Future Retail-Amazon deal likely in 10 days, in which Amazon will buy around 9.5 percent stake in Kishor Biyani-led company and both the parties are in advanced stage of talks for the deal. (Press Trust of India)
  • Axiscades Engineering Technologies arm won two key contracts worth $20 million. The first contract is with a Global OEM for a design to build test equipment and maintenance of strategic systems. The other contract is for building subsystems of full motion simulator.
  • Srei Equipment Finance and Nordic Investment Bank signed a loan agreement for financing acquisition or leasing of industrial equipment designed or produced in the Nordic-region based bank’s member countries. The new loan program will be worth 20 million euro and has a maturity of eight years.
  • Orient Electric entered into a strategic partnership with Italy based De’ Longhi Group, in which three international premium small appliances brands will enter India namely De’ Longhi, Kenwood and Braun. The company will have exclusive rights to market and sell these brands in India.
  • Inox Wind signed a pact with AMSC for 3MW wind turbine in India. Currently the company has a license for 2MW range of wind turbines and stated in its press release that with this new agreement energy yields will improve also support the competitive tariff environment currently present under the auction regime in the country.
  • Merck: Department of Pharmaceuticals, Ministry of Chemicals and Fertilizers approved the acquisition of the biopharma business of the company to its arm ‘Merck Specialties Private Limited’ by way of slump sale.

Also Read: Yes Bank’s Promoter Groups Divided Over “Truce”

Offerings

  • Reliance MF-managed CPSE ETF 3rd Further Fund Offer opens, close on Nov. 30; gets anchor bids of Rs 13,300 crore versus Rs 2,400 crore offered.

Earnings Reaction To Watch

Reliance Capital (Q2. YoY)

  • Revenue up 10 percent at Rs 5,308 crore.
  • Net profit at Rs 280 crore versus net loss at Rs 163 crore.
  • General Insurance segment revenue up 19.1 percent at Rs 2,322 crore.
  • Total assets at Rs 90,128 crore.
  • Reliance Nippon Asset Management’s AUM up 6 percent at Rs 4,04,870 crore

Vadilal Enterprises (Q2, YoY)

  • Revenues up 14.2 percent at Rs 126 crore.
  • Net loss at Rs 1 crore versus net profit at Rs 1.3 crore.

Also Read: India Considers Merging Two State-Owned Power Lenders

Bulk Deals

  • Veto Switchgear Cable: Promoter Pushpa Devi Gurnani acquired 1.7 lakh shares or 0.91 percent equity at Rs 86.81 each.

Century Textiles & Industries

  • Gothic Corporation acquired 6.3 lakh shares or 0.56 percent equity at Rs 904.55 each.
  • GHI LTP sold 6.3 lakh shares or 0.56 percent equity at Rs 904.55 each.

Also Read: India Is Said to Push RBI to Lift Lending Curb on Some Banks

Trading Tweaks

  • Arvind ex-date for demerger into three entities.
  • Jai Prakash Power Ventures to move into ASM Framework.
  • Paramount Communications price band revised to 10 percent.

Who’s Meeting Whom

  • Titan to meet Generation Investment Management on Dec. 13.
  • PI Industries to meet Ocean Dial AMC on Nov. 29.
  • Symphony to meet Ambit Capital on Nov. 30.
  • Ultratech Cement to meet GIC, Nomura AMC and other investors from Nov. 28-29.
  • Mahindra Logistics to meet East Bridge Capital on Nov. 28.

Insider Trading

  • Electrosteel Castings promoter group acquired 56,000 shares on Nov. 26.
  • Man Infra promoter and director Manan Shah acquired 36,000 shares on Nov. 26.

(As reported on November 27)

Money Market Update

  • Rupee on Tuesday closed at 70.79/$ versus Monday’s closing of 70.87/$.

Also Read: Currency Traders Place Cheap Bet That Trump and Xi Could Reach a Truce

F&O Cues

  • Nifty November future closed trading at 10,685,  discount of 1 point.
  • Nifty November open interest down 18 percent; Nifty Bank November open interest up 3.6 percent.
  • Max open interest for November series at 11,000 call option (open interest at 28.6 lakh shares)
  • Max open interest for November series at 10,500 put option (open interest at 38.4 lakh shares)

Stocks In F&O Ban

  • In Ban: Adan Enterprises, Adani Power, Jet Airways
  • Out of Ban: DHFL

Put-Call Ratio

  • Nifty PCR at 1.74 from 1.64.
  • Nifty Bank PCR at 1.37 from 1.34.

Brokerage Radar

CLSA on Astral Poly

  • Maintained ‘Buy’ with a price target of Rs 1,225.
  • Rex acquisition adds a new growth dimension.
  • Adhesives operating leverage benefits to drive margin expansion.
  • Pipes business showing steady growth.

UBS on Yes Bank

  • Maintained ‘Sell’ with a price target of Rs 150.
  • Believe NPL recognition has yet to take place and is not fully priced in.
  • Catalysts: RBI divergence report, track-record and pedigree of new CEO and next fund raising.
  • Believe the risk-reward is still unfavourable.

Citi on India Commercial Vehicles

  • Expect 7-11 percent decline in commercial vehicle sales over FY20-21 as history is not on the side of the cycle.
  • Concerns: rising interest rate, difficulty in getting credit, deceleration in toll road collection.
  • Concerns: duration of up-cycle, BS-VI transition, inability to push through fuel price hikes.

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