View on market: Stay Cautious, be with quality business:
Asian stocks opened steady Thursday as a global equities rally paused with investors weighing the impact of the new virus variant on the economy. Treasuries were stable after declining. Benchmarks fluctuated in Japan, South Korea and Australia. U.S. contracts dipped slightly after the S&P 500 and the technology-heavy Nasdaq 100 advanced for a third day. The Nasdaq Golden Dragon China Index of companies with most of their businesses in China also gained for a third day. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.40% to 17,555.50, as of 8:05 a.m.
Economic Calendar:
- INR: Manufacturing Output (MoM) (Oct) on 10th December, 2021.
- INR: FX Reserves, USD on 10th December, 2021.
- USD: Core CPI (MoM) (Nov) on 10th December, 2021.
- USD: Federal Budget Balance (Nov) on 11th December, 2021.
Brokerage Radar:
CLSA ON ASHOK LEYLAND: Maintain buy at the price of Rs 126.15 for the target price of Rs 145. Tipping point for CV recovery. CV upcycle likely to sustain over next few years. Domestic LCV demand likely to recover. EBITDA likely to increase by 3.25x over FY22-24.
JP MORGAN ON UBL: Maintain overweight at the price of Rs 1552.30 for the target price of Rs 1820. Solid reopening play, impressive market-share momentum. Premiumization thrust to increase. Margin expansion led by operating leverage, mix, cost savings. On course to an accelerated earnings CAGR of 21% over FY20-24E.
CREDIT SUISSE ON RBI POLICY: As expected, MPC kept rates unchanged, tweaked growth/inflation forecasts a bit. Policy normalization though is well underway. Given large surplus liquidity, it matters what rate banks get from RBI. Reverse repo unchanged at 3.35%, but VRRR at 3.95% is now bigger. VRRR rates started rising in Sep & are up 60 bps since then RBI absorbing nearly half the surplus liquidity it injected due to FX Interventions. While stance remains ‘Accommodative’, bulk of overnight surpluses has shifted to VRRR.
International Markets:
U.S & Europe
| Particulars | 8th Dec | Chg | Chg(%) |
| Nasdaq | 15,786.99 | 100.07 | 0.64 |
| Dow | 35,754.75 | 35.32 | 0.09 |
| FTSE | 7,337.35 | -2.55 | -0.03 |
| CAC | 7,014.57 | -50.82 | -0.72 |
| DAX | 15,687.09 | -126.85 | -0.80 |
| Dow Fut.* | 35,742.00 | -4.00 | -0.01 |
Asian markets:
| Particulars | 9th Dec | Chg | Chg(%) |
| SGX Nifty | 17,555.50 | 70.50 | 0.40 |
| Nikkei | 28,816.97 | -43.65 | -0.15 |
| Straits Times | 3,142.40 | 12.63 | 0.40 |
| Hang Seng | 24,195.07 | 198.20 | 0.83 |
| Shanghai | 3,651.01 | 13.44 | 0.37 |
ADR Watch:
| Particulars | 8th Dec | Chg | Chg(%) |
| Dr Reddy | 60.67 | 0.35 | 0.58 |
| HDFC Bank | 67.47 | 0.17 | 0.25 |
| ICICI Bank | 19.72 | 0.62 | 3.25 |
| Infosys | 23.44 | 0.38 | 1.65 |
| Tata Motor | 32.61 | 0.76 | 2.39 |
| Wipro | 8.76 | 0.04 | 0.46 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.45 | 0.01 |
| Brent | 76.48 | 0.47 |
| Gold | 1782.50 | -0.17 |
| Silver | 22.337 | -0.42 |
FIIs & DII
| Particulars | 8thDec | 7thDec |
| FIIs | -579.27 | -2584.97 |
| DIIs | 1735.50 | 2605.81 |
News Update:
Reliance Industries: Reliance BP Mobility, a joint venture between Reliance Industries and BP Plc operating under the brand name Jio-bp, has signed an initial pact with Mahindra Group to explore creating electric vehicles and related services, besides identifying synergies in low-carbon and conventional fuels.
HCL Technologies: The company and apoBank, the largest cooperative primary bank in Germany, have signed with Atruvia AG an agreement to acquire IT consulting company Gesellschaft für Banksysteme GmbH (gbs).
Infosys: Infosys BPM, the business process management arm of Infosys Ltd, said has said that it will expand its presence in Ireland by adding 250 jobs locally with the development of a new delivery centre in Waterford. Infosys BPM began its Ireland operations in Dublin in 2014.
Gland Pharma: The company received a tentative approval from the United States Food and Drug Administration (US FDA) for Cangrelor for injection.
Indiabulls Housing Finance: The company’s public issue of bonds will open on Thursday to raise up to ₹1,000 crore, the proceeds of which will be utilised to fund its business growth. The issue has a base size of ₹200 crore with an option to retain oversubscription up to ₹800 crores, aggregating to up to ₹1,000 crore.
RailTel Corp: Has received work order from Ircon International for design, supply, installation, testing & commissioning of tunnel communication system consisting of emergency call & service telephone, CCTV, tunnel radio and PA system in tunnel environment on Dharam – Banihal section of Jammu Kashmir Rail Link Project under Ferozepur division of Northern Railway at a total cost of ₹210.77 crore.
REC: The company approved the proposal for sale and transfer of Kallam Transmission to the successful bidder, selected through Tariff Based Competitive Bidding Process.
Nazara Technologies: Founders of Turkey-based Arrakis Tanitim Organizasyon Pazarlama San.Tic have subscribed to 30.82 percent stake in Publishme Global FZ LLC. Accordingly, through its wholly-owned subsidiary, Nazara is now holding 69.18 percent stake in Publishme Global FZ-LLC.
Coffee Day Enterprises: Received show cause notice from SEBI over fund flow from subsidiaries that surfaced after investigation was done on the letter left by late managing director V.G. Siddhartha. Company says will deal with the show cause notice appropriately as advised.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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