Stocks to Watch on 20 January 2021

 

Following Britain’s exit from the European Union, talks between the UK government and Tata Steel on finding a solution for the company’s bleeding UK unit have yielded no progress

In a first, Sebi has asked France-based Schneider Electric President Systems to re-list its shares on any nationwide stock exchange within six months, or follow proper delisting process and give small shareholders an exit opportunity.

Bharti Hexacom, a subsidiary of India’s second largest telco Bharti Airtel, is raising up to Rs 1,500 crore via domestic bonds.

Fintech platform BharatPe has put in a joint bid with financial services firm Centrum to acquire troubled lender PMC Bank.

In partial relief to HUL, the Bombay High Court Tuesday directed USV to withdraw ads that compare Lux and Pears with Rin.

Canadian billionaire Prem Watsa-controlled CSB Bank said its net profit almost doubled to Rs 53 crore in the third quarter from Rs 28 crore a year earlier due to strong loan growth riding on a whopping 60% rise in loan against gold. 

 

Nifty futures on the Singapore Exchange traded 33.45 points higher at 8:30 am (IST), signalling a positive start for Dalal Street.

On Tuesday, Nifty50 formed a strong bullish candle on the daily scale and negated the formation of lower highs. Analysts said Nifty can consolidate further, before commencing a larger rally.

Asian stocks traded mixed this morning. Japan’s Topix index dipped 0.6%, Hong Kong’s Hang Seng rose 0.3% while South Korea’s Kospi dipped 0.3%. Australia’s ASX 200 rose more than 0.5%.

On Wall Street, the Dow rose 0.38% in overnight trade, while the S&P500 gained 0.81%. The tech-heavy Nasdaq Composite added 1.53%.

The rupee gained 11 paise to settle at 73.17 against the US dollar on Tuesday on the back of rally in domestic equities and weak American currency.

The dollar extended its retreat, as investors turned focus to riskier assets. The euro was 0.1% and the offshore yuan 0.1%. The yen traded at 103.81 per dollar.

Oil extended gains in Asia on expectations US President-elect Joe Biden’s incoming administration will take steps to revive growth and energy demand in the world’s largest economy. WTI contracts for February delivery, which expire Wednesday, rose 0.3% to $53.12 a barrel. Brent for March settlement climbed 0.3% to $56.04.

Gold prices rose by Rs 81 to Rs 48,975 per 10 gm in futures trade on Tuesday as speculators created fresh positions on a firm spot demand. Silver too gained. On MCX, silver contracts for March delivery rose by Rs 520, or 0.79 per cent, to Rs 65,949 a kg. In international markets, gold rose 0.3% to $1,845.43 an ounce.

 

WHO'S UP Pre-Budget rally ahead?... The change in the marketwide put-call option positioning seems to suggest so. Whenever the value of the outstanding marketwide stock and index call options is higher than that of the outstanding stock and index put options by Rs 30,000 crore, the markets tended to have bottomed and hit new highs subsequently. This happened on four occasions, the latest being on January 18, when the value of marketwide outstanding calls exceeded that of the marketwide puts by Rs 36,240 crore.  Damani raises stake in India Cements... Well-known investors on Dalal Street shuffled their mid- and small-cap holdings in the December quarter amid the broad-based rally in the market. Radhakishan Damani increased stake in India Cements by 0.7% and in VST Industries by 0.11% from the September quarter. Rakesh Jhunjhunwala upped stake in Tata Communications by 1% and bet on the Covid-hit hotel industry by raising stake in Indian Hotels by 1%. He pared stakes in Firstsource Solutions by 1.6% and in E Price hike booster for Maruti stock... The stock of Maruti Suzuki India has trailed the benchmark indices by 6% over the past three months on concerns over the impact of rising raw material costs on the operating margin. The company’s decision to increase car prices across the board should allay these concerns. Besides, the recovery in sales volume and tapering discounts are likely to support the stock in the medium term. Maruti has finally decided to raise vehicle prices by up to ₹34,000 effective January 18 after lagging behind the curve to pass on the higher costs to customers due to the new emission norms.  Index funds gaining traction... Passive index funds tracking the broadest indices are gaining an edge over active stock pickers. Data from mutual fund industry body AMFI show that the number of folios in index funds doubled from 4.05 lakh to 8.11 lakh in the last 13 months. During the same period, assets under management of index funds surged 95% to Rs 14,794 crore. By contrast, the total AUM of the mutual fund industry moved up 15% — from Rs 26.94 lakh crore to Rs 30.96 lakh crore.     WHO'S DOWN India may tighten FDI in e-commerce... India is likely to tighten the foreign direct investment (FDI) rules for e-commerce to check companies set up by the online marketplaces from trading on their own platform. The Department for Promotion of Industry and Internal Trade (DPIIT) may issue a clarification through a Press Note, expressly prohibiting e-commerce platforms from holding stake in a seller, directl New rule for AIFs in the works... Foreign investors serving on the investment committees of private equity funds face uncertainty as it is not clear whether such appointments will be construed as ‘control’ under the non-debt instrument rules. Multiple people with direct knowledge of the matter told ET that if regulators link such appointments to control, several AIFs will effectively become foreign entities, causing downstream investment rules to apply. On the flipside, if large investors are not given a position in the investment committees, they may choose not to make investments through that Govt talks tough on WhatsApp... The ministry of electronics and information technology (MeitY) has asked instant messaging app WhatsApp to immediately “withdraw” the proposed changes to its privacy norms, top officials told ET. In a letter sent on Monday to WhatsApp’s global head Will Cathcart, MeitY said, “The proposed changes raise grave concerns regarding the implications for the choice and autonomy of Indian citizens. Therefore, you are called upon to withdraw the proposed changes”, marking a significant setback for the American company that has a 400 million strong user base in India.