News and Impact
- · Expects market to open on a soft note on account of global cues. US stocks closed mostly lower on Wall Street Friday, though gains for several tech companies pushed the Nasdaq composite to another record high (up 0.4%) and its first close over 16,000 points. S&P 500 index gave up 0.1% and the Dow Jones fell 0.8%. Investors assessed the impact of rising COVID-19 cases in the United States and Europe. China and South Korea Interest rate decisions and US Fed minutes of meeting will be watch for this week. SGX Nifty declined nearly quarter percent (42 points) against the Thursday close. US Dow Future is up 0.2% or 76 points.
· Most Asian stocks fell Monday amid concerns about European Covid-19 curbs and the risk of the Federal Reserve speeding up stimulus withdrawal. Shares declined in Japan and Australia, while South Korea climbed amid data showing export growth.
· European stocks ended the week with losses amid increasing concerns over renewed COVID-19 restrictions in Europe after Austria imposed a nationwide lockdown starting Monday, and reports that Germany is also not ruling out a new lockdown. UK, Germany and France Index declined half percent each.
· Oil prices fell about 3 percent to below $79/bbl a barrel as surging Covid-19 cases in Europe threatened to slow the economic recovery while investors also weighed a potential release of crude reserves by major economies to cool prices.
· Gold fell over 1% to $1844/ounce after the US Federal Reserve officials said the central bank may need to consider speeding up the reduction in its bond-buying program amid strong economic growth and rising inflation.
· Expect negative sentiment in the market on account of weak global market, raising pandemic cases in US and Europe and concern of higher inflation. Moreover, continued FIIs selling may dampen market sentiment. FIIs were net sellers Rs3931cr while DIIs were net buyers Rs1886cr
· Brokers Radar – Nomura TGT on Fortis at 319, Escorts TGT, Goldman Sachs TGT on Coal India at 140, Bajaj Auto TGT by Morgan Stanley at 4742 , Reliance TGT by Nomura at 2850, Heromoto Corp TGT by Morgan Stanley at 2470, Ashok Leyland TGT by Morgan Stanley at 159, Jefferies TGT on Reliance Industries at 2880, Credit Swiss TGT ON Reliance Industries at 2450
· Events – G- Fashion IPO Final date today (7 times subscribed)
· Actionable – BUY Lurus Labs, IndusInd Bank, Tata Motor, SBI
· Market Summary – Reliance Industries, Saudi Aramco to re-evaluate proposed investment deal in O2C business, Maharashtra govt slashes excise duty on imported scotch by 50%, Kubota to Invest 93.7b Rupees to Raise Escorts Stake to 53.5%. Macrotech Developers completes Rs 4,000-crore QIP, says ‘largest ever’ in real estate sector in India, DLF Selected In Dow Jones Sustainability Indices For The Second Time, GMR Wins Bid to Develop and Operate Medan Airport in Indonesia, RBL Bank Authorised By RBI To Collect Direct Taxes, NIIT Announces Partnership with Immerse to Expand Experiential Training Offering. Supreme Court Allows Government To Sell Its Stake In Hindustan Zinc, Easy Trip Planners Acquires Spree Hospitality As It Seeks To Expand Its Hotel & Holiday Business. Laurus Labs inks pact with ImmunoACT to acquire 26% stake for Rs46 cr
· Reliance said that it had decided with Saudi Aramco to reevaluate the oil giant’s proposed roughly $15 billion investment in Reliance’s oil-to-chemicals (O2C) business. The 20 percent stake sale in the unit was announced in 2019, but was delayed as oil prices and demand crashed last year due to the pandemic.- Any sharp decline will be buying opportunity
· Laurus Labs has signed an investment agreement with Immunoadoptive Cell Therapy PVT LTD, an advanced cell and gene therapy company, to acquire a 26.62 per cent stake for Rs46 crore, subject to the fulfilment of certain conditions.
· United Spirits and United Breweries – The Maharashtra government has slashed excise duty on imported scotch whiskey by 50 per cent from 300% to 150% to bring its price on par with that in other states. – Not yet any major impact on liquor major United Spirits and United Breweries
· EaseMyTrip makes 2nd acquisition, Spree Hospitality, a 1200 room-keys hospitality management company one of the fastest growing hospitality management firms in India, as it seeks to expand its hotel and holiday businesses. – Positive
· JBM Auto – The auto component maker’s board will consider a stock split on 8 December 202 – Positive
· Shilpa Medicare Unit III R&D facility in Bengaluru clears USFDA review – Positive
· Higher GST rate on Textiles Apparel, fabrics – The Central Board of Indirect Taxes and Customs (CBIC) notified raising GST rate to 12% from 5% on fabrics, apparel from January 2022. Also, GST on apparel of any value has been increased to 12%. Earlier, GST was 5% for sale value up to Rs1,000 per piece.- Expects negative for Arvind, Birla Fashion
· Govt notifies 12% GST rate on MMF, yarn, fabrics from Jan 1 while Currently, tax rate on MMF, MMF yarn and MMF fabrics is 18 percent, 12 percent and 5 percent, respectively – Neutral on textile stocks.
· IRB Infra – Shareholders Approve IRB Infra’s Rs 5,347-Crore Fund raise – positive
· IRCTC – The Ministry of Railways has withdrawn its decision to terminate all existing contracts of mobile catering.The ministry has conveyed the decision to resume the services of cooked food in trains – Positive
· Bharti Airtel –Company is rethinking about its plan to separate digital and infrastructure businesses from telecom, as the government’s redefinition of adjusted gross revenue has made the corporate restructuring less appealing, a news report said.- We are positive on the stock
· Motherson Sumi – Ningbo SMR Huaxiang Automotive Mirrors, a 50:50 JV in China between Samvardhana Motherson and Ningbo Huaxiang Electronic Co, has completed the acquisition of a 60% stake in Nanchang JMCG Mekra Lang Vehicle Mirror.- Positive
· Kesoram Industries – The company’s board has approved fundraise of up to Rs 2,500 crore by way of equity, bond, FCCB, ADR, GDR – Positive
· Amber Enterprises – Company received approval from the Ministry of Commerce & Industry under the Production-Linked Incentive scheme for white goods (air conditioners).- Positive
· HFCL – Company has secured purchase orders aggregating to Rs 412 crore, from one of the leading private telecom operators of the country for supply of optical fibre. – Positive
· Route Mobile: The company has raised Rs 867.49 crore via QIP.- positive
· Glenmark Pharmaceuticals: S&P Global Ratings has upgraded the company’s rating to BB on expected maintenance of lower leverage; outlook stable.- Positive
· India Grid Trust: Consortium of IndiGrid 1 and IndiGrid 2 participated in the tariff-based competitive bidding to establish ‘Transmission system for evacuation of power from Renewable projects in Osmanabad area (1 GW) in Maharashtra’ on build, own, operate and maintain basis by REC Power Development and Consultancy. – Positive
· Rajesh Exports Ltd. secured an order worth Rs 782 crore of designer range of jewellery from Germany. – Positive
· Cadila Healthcare Gets 180-Day Exclusivity For Nelarabine Injection, Announces Final Approval From U.S. FDA – positive
· MTNL and MSTC – Non-core asset monetisation: Govt invites bids to sell 6 BSNL, MTNL assets. Six properties of state-owned telecom carriers BSNL and MTNL have been put up for bidding on the MSTC portal, as the government has begun monetisation of non-core assets through auction.- Expects momentum on MTNL
· HCL Technologies named a leader in IDC MarketScape: Worldwide Managed Multicloud Services. According to the report, through its portfolio of cloud services, HCL can assist enterprises in migrating and modernizing enterprise organizational structures, processes and IT environments to operate in a cloud model. – positive
· HPCL and IDFC FIRST Bank partner to enable fuel payments using FASTag – positive for IDFC First Bank
· Arvind Ltd- CARE reaffirms credit ratings for instruments of Arvind; Revises outlook to Stable, eaffirmed CARE AA-; Stable/ CARE Al+ on long/short-term bank facilities – Positive
· Hindalco world’s most sustainable aluminium company in the Dow Jones Sustainability Indices 2021 – positive
· Praskash Industries receives Vesting Order for Bhaskarpara Coal Mine, company had participated in the 12th tranche of an auction for commercial mining and was declared as the ‘Successful Bidder’.- positive
· Phoenix Mills- CPP Investments completes first tranche investment of Rs787cr – positive
· Ind-Ra upgrades rating of Jubilant Industries subsidiary; Revises outlook to Stable, from CRISIL A-/Positive to IND A/Stable. – positive
· V-Guard further invests over Rs19cr in subsidiary V-Guard Consumer Products. The total amount of investment made to date is Rs44.63cr – Positive
· Bharat Dynamics signs contract for supply of CMDS worth Rs171cr – positive
· Hindustan Zinc – Supreme Court rejects petition against Hindustan Zinc disinvestment. Apex court orders federal probe into past Hindustan Zinc divestment. Supreme Court: Government can sell Hindustan Zinc stake via open market for best price – Positive
· DLF has been selected to be a constituent of the Dow Jones Sustainability Emerging Markets Index once again. DLF becomes the only real estate company from India to be included in the index. – positive
· GMR Airports, a unit of Indian airports operator GMR Infrastructure Ltd., wins bid to develop and operate Kualanamu International Airport in Medan, Indonesia.- positive
· NCC receives 3 new orders totaling to Rs. 2167 crore – positive
· IFB Agro – India Ratings and Research (Ind-Ra) has affirmed IFB Agro Industries Long-Term Issuer Rating at ‘IND A+’. The Outlook is Stable.- positive
· McDonald’s India (West and South) launches ‘The Rashmika Meal’ in collaboration with Rashmika Mandanna – positive
· Natco Pharma introduces Trifluridine + Tripiracil tablets – positive
· Macrotech Developers announced the closure of its QIP, which it described as “largest ever” by a real estate developer in India. The Rs-4,000 crores QIP received a robust response from both existing and new as well as global and domestic investors. The book was oversubscribed by more than 3 times within 5 hours of issue opening . The developer issued 3.4 crore new shares resulting in a 7.5% dilution in pre-issue outstanding capital. The floor price of the issue was Rs 1184.70. – Positive
· Escorts – Japanese firm Kubota Corp. says it will increase its shareholding in Escorts by acquiring new and existing shares. Kubota stake will rise to 53.5% from 9.09% after acquiring Rs1870cr of new shares worth Rs7500cr of existing shares both at Rs2,000 a share.- It has gained 11% to close at Rs1810 on previous day …Positive
· NIIT Tech announced that it has entered a partnership with Immerse, an open and scalable enterprise platform for VR, AR, and 3D employee experiences.- Positive.
· RBL Bank has been authorised by the Reserve Bank of India to collect direct taxes on behalf of CBDT – Positive .
· Union Bank of India Gets INR29.52b Bids for AT1 Bonds – Positive
· Oil Takes Fresh Hit to 6-week Low as China Says Stockpile Release in the Works … Brent Crude fell below 50-DMA and trading at $80/bbl…Positive for OMCs, Cement and Paint stocks – Brent Crude declined sharply by 10% from the recent high to below $80/bbl, to the lowest in nearly six weeks as investors considered the prospect of a release of crude supplies from strategic reserves. China said that it’s releasing some crude from strategic reserves days after the U.S. invited it to participate in a joint sale. Expects positive for Oil marketing companies (HPCL, IOC), Paints (Asian Paints), Cement companies (UltraTech, Birla Corp, ACC)
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