News and Impact
Expects market to open on a flat note on account of global cues. Dow Jones slipped over half percent as the emergence of a new strain of Covid-19 that may have spread to the U.S. tempered optimism about a pandemic relief bill. However, Nasdaq Composite (up 0.5%) and Russell 2000 set record highs in what is a holiday shortened week. U.S. lawmakers cleared a $2.3 trillion year-end spending bill and stimulus package. President Donald Trump is expected within a week to sign legislation that will release roughly $900 billion of pandemic aid. Important data watch for today - US Initial Jobless Data
U.S. stock futures declined over half percent from the intra-day high and Asian equities reversed gains after President Donald Trump said he is asking Congress to amend the pandemic aid legislation that was passed earlier this week. SGX Nifty declined 45 points or 0.3%. Hong Kong and Nikkei Index are trading flat to positive.
European shares advanced after falling the most in two months on Monday, as U.S. lawmakers cleared a new stimulus package and as Brexit negotiations continued. European Union rebuffed British Prime Minister Boris Johnson’s latest concessions on fishing rights. Meanwhile, Johnson is trying to re-open trade routes to France. Both CAC and DAX Index gained over 1% each. FTSE gained 0.6%.
Brent Crude declined 2% to below $50/bbl on account of increase in U.S. crude stockpiles worsened sentiment in a market already on edge over the discovery of a faster-spreading mutation of the coronavirus in the U.K.
Gold prices edged higher on Wednesday as grim U.S. consumer and housing data bolstered hopes for further stimulus to support an economic recovery from the pandemic-induced slump. Gold gained marginally at $1866/ounce
Expect rangebound market today but stock specific action to continue. Traders buy in decline strategy in the market. Focus on defensive sectors like Tech, Pharma and FMCG. Undertone bullish sentiment in the market on account of continued FIIs buying interest, global market rally and strong macro data. FIIs were net buyers Rs1153cr yesterday while DIIs were net sellers Rs652cr.
Actionable – BUY, Dr Reddy, Tata Chemical, Tech Mahindra, Max Financials, Bajaj Auto, Wipro
Events – CCEA and Cabinet Committee meeting today at 10.30am, Majesco Ex-dividend (Rs974), Mumbai Hotel delegation to meet with Maharashtra Government concern of imposed night curfew.
Market summary - Embassy REIT approves units issue to investors at Rs331 each, SEBI gives six more months to Prabhat Dairy for delisting shares, ICICI Bank launches pltform for foreign companies starting India, India records less than 20,000 new COVID-19 cases for the first time in nearly six months, Dr. Reddy’s Files Canada Application for Avigan to Treat Covid, Wendt India Withdraws Offer to Sell Shares, Russian vaccine coming to India soon, Rajnath says, JSW Energy Says Power Demand Growth Will Stablise, Bajaj Auto's New Rs 650-Crore Factory, Wipro wins large orders.
Dr Reddy - Defence minister said that the Russian Sputnik V vaccine against the dreaded Covid-19 disease will soon be reaching India. – Positive for Dr Reddy - Russia to JV Sputnik V Covid-19 vaccine with Dr Reddy's Lab
Infosys said it has formed a long-term partnership with Daimler AG for a technology-driven information technology infrastructure transformation. Expectation of $1bn deal, second largest deal. - – Positive
Bajaj Auto signed a memorandum of understanding with Maharashtra govt. to set up a manufacturing facility at Chakan worth Rs650cr. – Positive
Wipro has announced a significant, strategic, digital and I.T. partnership deal with METRO AG. The estimated deal value for the duration of the first 5 years is approximately $700 million. It can be a potential spend of up to $1bn – Positive
Jubilant Foodworks: Introduced plant-protein Pizza called ‘The Unthinkable Pizza.’ To be available at all Domino's restaurants across Delhi NCR, Mumbai and Bengaluru. The company had forayed into the Biryani space last week with the launch of Ekdum! brand. – Positive