View on market: Stay Cautious, be with quality business:
Asian stocks opened higher after technology shares led U.S. equities to their biggest rally in nine months as traders bet the omicron Covid variant won’t stall the global recovery. Treasury yields pared an advance. Equity benchmarks rose in Japan, South Korea and Australia. U.S. futures edged higher after both the S&P 500 and Nasdaq 100 chalked their biggest gains since March. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.71% to 17,334.00, as of 8:05 a.m.
Economic Calendar:
- INR: Interest Rate Decision on 8th December, 2021.
- INR: FX Reserves, USD on 10th December, 2021.
- USD: JOLTSs Job Opening (Oct) on 8th December, 2021.
- USD: Crude Oil Inventories on 8th December, 2021.
Brokerage Radar:
GS ON BHARTI AIRTEL: Maintain buy at the price of Rs 698 for the target price of Rs 870. It offers high earnings visibility; forecast 38% FY21-24 EBITDA CAGR for wireless biz. See upside risks to earnings if ARPUs were to be closer to the company-guided number. Every `10 of incremental ARPU Is $400 m of incremental FCF for Co. Co trades at 8x FY23e EV/EBITDA, broadly in-line with its historical trading average. India biz may generate $2.5 bn+ of annual FCF on avg for the next four years.
CREDIT SUISSE ON INDIGO: Maintain outperform at the price of Rs 1945.25 for the target price of Rs 2700. Continued strong yields & traffic may turn quarter profitable. Removal of restrictions progressive for airlines. Industry load factors near pre COVID levels. Industry level passenger count stable, while airlines ramp up capacity
JP MORGAN ON STEEL: China’s net steel exports fall to yearly lows in Nov highlighting tight regional supply. There are signs of policy easing in China. China’s net steel exports fell 13% MOM to 2.9 mt, lowest in 12 months. Exports could further reduce driving regional HRC prices higher.
International Markets:
U.S & Europe
| Particulars | 7th Dec | Chg | Chg(%) |
| Nasdaq | 15,686.92 | 461.77 | 3.03 |
| Dow | 35,719.43 | 492.40 | 1.40 |
| FTSE | 7,339.90 | 107.62 | 1.49 |
| CAC | 7,065.39 | 199.61 | 2.91 |
| DAX | 15,813.94 | 433.15 | 2.82 |
| Dow Fut.* | 35,778.00 | 65.00 | 0.18 |
Asian markets:
| Particulars | 8th Dec | Chg | Chg(%) |
| SGX Nifty | 17,334.00 | 123.00 | 0.71 |
| Nikkei | 28,774.05 | 318.45 | 1.12 |
| Straits Times | 3,126.14 | -8.52 | -0.27 |
| Hang Seng | 23,982.09 | -1.57 | -0.01 |
| Shanghai | 3,604.04 | 8.95 | 0.25
|
ADR Watch:
| Particulars | 7th Dec | Chg | Chg(%) |
| Dr Reddy | 60.32 | 0.82 | 1.38 |
| HDFC Bank | 67.30 | 1.42 | 2.16 |
| ICICI Bank | 19.10 | 0.80 | 4.37 |
| Infosys | 23.06 | 0.81 | 3.64 |
| Tata Motor | 31.85 | 1.05 | 3.41 |
| Wipro | 8.72 | 0.27 | 3.20 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.44 | 0.03 |
| Brent | 75.29 | 0.16 |
| Gold | 1790.75 | 0.34 |
| Silver | 22.552 | 0.13 |
FIIs & DII
| Particulars | 7thDec | 6thDec |
| FIIs | -2584.97 | -3361.28 |
| DIIs | 2605.81 | 1701.56 |
News Update:
Reliance Industries: The petchem major has formed a $2 billion partnership with Abu Dhabi Chemicals Derivatives Company RSC Ltd (Ta’ziz) for chemical production. The joint venture will construct and operate a chlor-alkali, ethylene dichloride (EDC) and polyvinyl chloride (PVC) production facility, with an investment of more than $2 billion.
Larsen & Toubro: Has signed an initial agreement with the Saudi Aramco to develop manufacturing capabilities in Saudi Arabia. Under the plan, Larsen will build the region’s first Heavy Wall Pressure Vessels facility in the kingdom’s Jubail Industrial City.
SpiceJet Ltd: Has said it is hopeful of a favourable outcome of its proposed appeal against a winding up petition ordered by the Madras high court. The HC had ordered winding up of the airline on a petition filed by Credit Suisse over unpaid dues of $24 million. It had also directed an official liquidator to take over the assets of the airline. The order was subsequently stayed for three weeks following a plea by the airline and on the condition that it deposits $5 million with the court within two weeks.
Telecom stocks: Telecom Regulatory Authority of India has directed telcos to immediately enable facility to send text message or SMS short code 1900, which is used for porting from one carrier to another. It has said that the service that enables requests for unique porting code has to be made effective for all subscribers, prepaid and postpaid, irrespective of the tariff value of the offer or voucher.
Vodafone Idea: Has partnered with communications service provider Tanla Platforms to encrypt the entire international messaging traffic on the Vi network, which are messages originating outside India and terminating in India. The partnership will be hosted on a cloud based platform called Wisely and is expected to help the telco delve deeper into the global enterprise market.
Nestle India: The Centre has approved the company’s proposal for its production linked incentive (PLI) scheme regarding processed fruits and vegetables. It had submitted its proposal for the food processing sector under the eligible categories i.e., ready to eat / ready to cook and processed fruits & vegetables in June.
NHPC: Has approved monetisation by securitisation through a bidding process of return on equity (RoE) of Chamera-I power station (3 X 180 MW), Himachal Pradesh, and further to monetise the RoE of one or more power stations for 05/10/15 years in one go or rollover.
Jindal Steel and Power: November steel production of 6.74 lakh tonnes was up 10% year-on-year. Steel sales stood at 5.39 lakh tonnes and exports contributed 15% to the total sales volumes
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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