View on market: Stay Cautious, be with quality business:
Most Asian stocks rose at the open Tuesday after U.S. equities rebounded and China pledged measures to support slowing economic growth. Treasuries steadied after tumbling. Equity benchmarks advanced in Japan and Australia, while South Korea was little changed. U.S. stock futures fluctuated. The S&P 500 wiped out last week’s losses, while the technology-heavy Nasdaq 100 also gained, aided by receding concerns about the severity of the omicron virus variant. The Singapore-traded SGX Nifty, an early indicator of India’s Nifty 50 Index’s performance, rose 0.61% to 17,044.00, 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 RELIANCE: Maintain buy at the price of Rs 2362.60 for the target price of Rs 3185. New energy is RIL’s third structural growth driver. See significant expansion in TAM for solar, battery and hydrogen. Expect RIL to generate EBITDA of $3.6/12.2 bn in their base case. New energy another multi decade growth engine.
JEFFERIES ON PIRAMAL: Initiate buy at the price of Rs 2519.30 for the target price of Rs 3050. Recent DHFL deal helps Piramal rebalance its portfolio. Favorable property cycle, strong growth in retail. Book should drive 14% profit CAGR in lending business over FY22-24E. CDMO projects & hospital generics recovery should drive 29% EBITDA CAGR.
CLSA ON FINANCIALS: India financials have unperformed Nifty by 7% over the past six months. Stocks are pricing in either 160 bps credit costs or a 15%+ cut in their POPP est. Asset quality is normalising fully with the possibility of credit costs under shooting. Rising rates could lead to upsides in net interest margins.
International Markets:
U.S & Europe
| Particulars | 6th Dec | Chg | Chg(%) |
| Nasdaq | 15,225.15 | 139.68 | 0.93 |
| Dow | 35,227.03 | 646.95 | 1.87 |
| FTSE | 7,232.28 | 109.96 | 1.54 |
| CAC | 6,865.78 | 100.26 | 1.48 |
| DAX | 15,380.79 | 210.81 | 1.39 |
| Dow Fut.* | 35,268.00 | 56.00 | 0.16 |
Asian markets:
| Particulars | 7th Dec | Chg | Chg(%) |
| SGX Nifty | 17,044.00 | 103.50 | 0.61 |
| Nikkei | 28,282.01 | 354.64 | 1.27 |
| Straits Times | 3,124.31 | 7.99 | 0.26 |
| Hang Seng | 23,532.82 | 183.44 | 0.79 |
| Shanghai | 3,587.26 | -2.05 | -0.06 |
ADR Watch:
| Particulars | 6th Dec | Chg | Chg(%) |
| Dr Reddy | 59.50 | -1.02 | -1.69 |
| HDFC Bank | 65.88 | -0.39 | -0.59 |
| ICICI Bank | 18.30 | -0.18 | -0.97 |
| Infosys | 22.25 | -0.63 | -2.75 |
| Tata Motor | 30.80 | -0.65 | -2.07 |
| Wipro | 8.45 | -0.14 | -1.63 |
Commodities & Currency
| Particulars | Current Price | Chg(%) |
| USD/INR | 75.42 | 0.34 |
| Brent | 73.54 | -0.12 |
| Gold | 1780.30 | 0.04 |
| Silver | 22.320 | 0.26 |
FIIs & DII
| Particulars | 6thDec | 3rdDec |
| FIIs | -3361.28 | -3356.17 |
| DIIs | 1701.56 | 1648.79 |
News Update:
IDFC: Board approves draft scheme of amalgamation. IDFC Alternatives Ltd., IDFC Trustee Company Ltd. and IDFC Projects Ltd. proposed to be merged with IDFC Ltd. for streamlining of corporate structure and to focus on operating businesses.
Ujjivan Small Finance Bank | The lender appointed Ittira Davis as the Managing Director and Chief Executive Officer for three years from the date of approval of the Reserve Bank of India.
Wipro: Launched a supply chain command center solution in partnership with Celonis.
GHCL, Indo Count Industries: GHCL to sell home textiles business to Indo Count for Rs 576 crore. GHCL has also approved the scheme of demerger of its spinning business.
HCL Technologies: IT services firm HCL Technologies plans to create 12,000 new jobs in the US in the next five years. The company expects to recruit more than 2,000 graduates over the next 36 months as part of its US early career and training programme, Rise at HCL.
Tata Motors: The auto major has said it will hike prices of its commercial vehicles by up to 2.5%, effective 1 January, to offset the increase in commodity and raw materials costs. The hike will be across segments of medium and heavy commercial vehicles (M&HCV), intermediate and light commercial vehicles (I&LCV), small commercial vehicles (SCV) and buses, based on individual model and variant of the vehicle.
Kotak Mahindra Bank: Private lenders Kotak Mahindra Bank has emerged as the most aggressive bidder to acquire Citi India’s retail assets, with Axis Bank also in the fray. The two banks are conducting further due diligence, since all details of the book weren’t revealed in the initial rounds. Kotak Mahindra’s bid may have gone further than that of Axis Bank’s.
India Oil: Rosneft has signed a deal to supply refiner Indian Oil Corp. with up to 2 million tonnes of crude next year. The deal was signed on Monday among a number of other agreements made during the visit of Russian President Vladimir Putin to India. Rosneft will supply up to 2 million tonnes of Russian oil loading from the Black Sea port of Novorossiisk.
Nalco: The disinvestment department is expected to soon seek the Union cabinet’s clearance for the strategic sale of National Aluminium Co Ltd (Nalco) and Hindustan Copper Ltd. Demand is likely to be keen given the rally in commodities and interest in metal producers.
Punjab National Bank: The public sector lender plans to raise up to ₹2,000 crore via additional tier I (AT1) bonds. This is likely to be followed by State Bank of India’s AT1 bonds worth ₹4,000 crore next week. Bond dealers said base size of the offering is for ₹500 crore with a green shoe option of ₹1,500 crore.
Source: Moneycontrol, Livemint,, Bloomberg, Investing
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