All You Need To Know Going Into Trade On Dec. 7

Asian stocks posted modest gains in early trade following an afternoon rally in the U.S. that erased most of the day’s losses, as investors grappled with shifting indications on U.S.-China trade talks and prospects for a pause in Federal Reserve tightening.

Japanese shares climbed with those in South Korea and Australia. Futures on the S&P 500 Index were little changed after the U.S. equity market recovered the bulk of the day’s declines on Thursday, though still ended lower.

The Singapore-traded SGX Nifty, an early indicator of NSE Nifty 50 Index’s performance in India, rose 0.6 percent to 10,688 as of 7:15 a.m.

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BQ Live

Here’s a quick look at all that could influence equities today.

U.S. Market Check

• U.S. equities closed up from the lows of the day after a late rally in large technology stocks helped to propel the Nasdaq 100 higher in what was the biggest reversal for the index since April.

Europe Market Check

• The optimism over the U.S.-China trade talks is gone, all European sectors are in the red, Germany’s DAX index is set enter a bear market, while U.S. stocks tumble as investors rush for the exits.

Asian Cues

• Japan’s Topix index added 0.9 percent.
• Hang Seng futures fell 0.9 percent overnight.
• FTSE China A50 Index futures rose 0.3 percent.
• Australia’s S&P/ASX 200 Index gained 0.8 percent.
• Futures on the S&P 500 were little changed.
• The MSCI Emerging Market Index slumped 2.3 percent.

Commodity Cues

• West Texas Intermediate crude added 0.2 percent to $51.57 a barrel.
• Crude ended 2.44 percent lower at $60.0.6 per barrel.
• Gold held at $1,237.83 an ounce.

London Metal Exchange

• Aluminium ended 1.68 percent lower.
• Copper ended lower for the third day, down 1.78 percent.
• Zinc halted a six-day rally, down 0.95 percent.
• Nickel ended 3.34 percent lower.
• Lead ended 0.05 percent higher.
• Tin halted a three-day rally, down 1.33 percent.

Indian ADRs

Stocks To Watch

Media Reports

• Jet Airways sought $350 million soft loan from Etihad. (PTI)
• NTPC likely to buy centre’s stake in SJVN. (PTI)

Offerings

• RattanIndia Infrastructure OFS for retail investors opens; Non-retail investors gets 111 percent demand Thursday.

Data Watch

• Dec 05-31: India third quarter BoP current account balance; estimates at $19.8 billion deficit, prior $15.8 billion.

Earnings To Watch

• IFCI

Bulk Deals

Kajaria Ceramics

• Wasatch International Growth Fund acquired 10.37 lakh shares or 0.65 percent equity at Rs 435.35 each.
• Abu Dhabi Investment Authority sold 10.1 lakh shares or 0.64 percent equity at Rs 435.26 each.

Trading Tweaks

• IL&FS Transportation Networks Limited to move into ASM Framework
• Mishtann Foods, Sadhana Nitrochem price band revised to 2 percent.

Insider Trading

• Dabur India promoter acquired 30,000 shares from Dec. 4-5.
• Alembic promoter group Nirayu acquired 1.67 lakh shares from Dec. 4-5.
• Sequent Scientific promoter Padmakumar PillaI sold 45,000 shares on Dec. 5
• Nava Bharat Ventures promoter group acquired 30,000 shares from Dec. 4-5.
• Axis Bank promoter United India Assurance sold 56,000 shares from Dec. 3-5.
• Man Infra promoter and director Parag Shah acquired 44,500 shares on Dec. 5
• Skipper Promoter acquired 43,500 shares from Dec. 4-5.

(As reported on Dec. 6)

Money Market Update

• Rupee on Thursday closed at 70.90/$ versus 70.46/$ on Wednesday.

F&O Cues

• Nifty December futures closed trading at 10,626, premium of 25 points.
• Max open interest for December series at 11,000 strike value call option (open interest at 40.9 lakh shares)
• Max open interest for December series at 10,000 strike value put option (open interest at 37.9 lakh shares)

Put-Call Ratio

• Nifty PCR at 1.44 from 1.63.
• Nifty Bank PCR at 0.98 from 0.75.

Get a detailed drawdown of derivatives on BloombergQuint's F&O page.

Brokerage Radar

CLSA on Sun TV

• Maintained ‘Buy’; cut price target to Rs 770 from Rs 870.
• New channel launches for long-term ad-revenue boost.
• Multiple catalysts for growth in subscription revenues.
• Cut earnings estimates by 3-4% to factor in higher content costs.

CLSA on GAIL India

• Maintained ‘Buy’; cut price target to Rs 420 from Rs 465.
• U.S. LNG arbitrage may stay negative through 2019.
• Upcoming quarterly results may be quite weak.
• Futures suggest U.S. LNG will be at significant premium to Asian spot LNG price.

BofAML on Maruti Suzuki

• Maintained ‘Underperform’ with a price target of Rs 6,850
• Management commentary suggests that volumes remains weak despite recent drop in fuel prices.
• Urban demand remains weak; incentives continue to rise as well.
• With weak pricing, EPS risks remain; Despite recent correction, stock remains expensive.

Citi on Indian Steel

• Falling steel prices, rising leverage and valuations make India steel unattractive.
• Expect steel prices to normalise in 2019 as China demand slows.
• Tata Steel: Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 440 from Rs 620.
• JSW Steel: Downgraded to ‘Sell’ from ‘Buy’; cut price target to Rs 290 from Rs 410.
• SAIL: Downgraded to ‘Sell’ from ‘Neutral’; cut price target to Rs 40 from Rs 72.