D-Street awaits blockbuster listing of Burger King
Maruti may re-enter diesel segment next year
RBI Governor rules out quick rollback of loose money policy
And
Tatas likely to submit EoI for Air India today
And there is more. But first, a quick glance at the state of the markets…
Nifty futures on the Singapore Exchange traded 70 points higher at 7.45 am (IST), signalling more gains ahead on Dalal Street.
Elsewhere
Asian shares climbed as investors took some comfort from further stimulus bill negotiations, the impending deployment of the first vaccine in the US and an extension in Brexit talks past a Sunday deadline. Japan’s Topix rose 1.1%, but Hang Seng dipped 0.2% and Kospi 0.1%. Shanghai Composite was steady.
The S&P500 and Nasdaq closed with modest declines on Friday, as uncertainty over fresh economic stimulus dented confidence. The Dow rose 0.16%, but the S&P500 lost 0.13%, and the Nasdaq 0.23%.
IN CURRENCIES
The rupee traded in a narrow range and settled 2 paise higher at 73.64 against the US dollar on Friday, tracking recovery in doemstic equities towards the fag-end of the session.
The dollar weakened, the yen was little changed, pound rose 0.7% and the euro 0.1%. The offshore yuan climbed 0.2%.
IN OIL MARKET
Crude prices rose, pushing Brent back above $50 a barrel, buoyed by hopes that the rollout of Covid vaccines will lift global fuel demand, while an extension of Brexit talks eased jitters. Brent crude futures for February rose 8 cents, or 0.2%, to $50.05 a barrel while WTI crude futures for January gained 4 cents, or 0.1%, to $46.61
AND IN BULLION
Gold prices struggled to edge higher on Friday in Indian markets amid muted global trend. On MCX, February gold futures rose 0.15% to Rs 49,149 per 10 gm after a two-day fall, while silver rates edged down 0.11% to Rs 63,460 a kg. In international markets, gold prices fell 0.2% this morning to $1,836.59 an ounce.
All in all, the trade setup on Dalal Street looked strong. On Friday, Nifty formed an indecisive ‘Doji’ candle on the daily chart for the second straight session. Analysts said the back-to-back Dojis can be an indication of some sort of weakening momentum in the ongoing rally.
LET ME NOW GIVE YOU A HEADS-UP ON SOME OF THE NEWS WE ARE TRACKING AT THIS HOUR
Dalal Street is expecting another blockbuster listing on Monday with Burger King, the fast food chain operator whose IPO closed on December 4 with an oversubscription of 157 times. The grey market premium for Burger King is between Rs 58 and Rs 60, indicating investors could see their investments in the IPO double on listing. The institutional part of the offer was subscribed a little over 86 times, while the HNI portion was subscribed over 357 times and the retail part nearly 69 times.
Analysts say equities could extend their run-up in December despite worries about the market being overbought on continued strong flows from foreign portfolio investors. They see Nifty heading to 13,600-13,700 levels after crossing previous hurdles at 13,200 and 13,500 levels. The index has support in the 13,200-13,300 zone. It has gained 16% since November on news that Covid vaccines are showing promising late-stage trial results.
Perpetual bonds are back in vogue as companies buy these quasi-debt instruments for interest rate arbitrage play, gaining as much as 200 basis points. Companies that seek bank guarantees now prefer to buy perpetual bonds instead of subscribing to low-yielding bank fixed deposits. The companies could be local contractors or exporters who need bank guarantees to bid for projects and consignments.
Reserve Bank of India Governor Shaktikanta Das says rolling back loose monetary policies prematurely can adversely affect economic revival which is still fragile and narrow. He says the inflationary pressures are not going to weigh on the central bank’s policy formulation at least for now, as they are more due to supply-side factors and not because of low interest rates or surplus liquidity. RBI is, however, conscious of the risks posed by ultra-low interest rates and flooding the market with excess liquidity, Das told ET in an interview.
Tata Sons is set to submit an expression of interest by Monday deadline to acquire national carrier Air India, after having conducted due diligence. After EoI submission, suitors will have access to a virtual data room and all Air India records. Those that qualify will be invited to start making final binding bids from December 28, as the government seeks to get the privatisation programme airborne after failing to sell a majority stake in the lossmaking carrier two years ago.
The government is working towards launching the third tranche of Bharat Bond ETF. The Bharat Bond ETF invests in debt of central public sector enterprises and has seen high interest from investors in the past two tranches. The first tranche of Bharat Bond ETF raised Rs 12,400 crore in December last year with maturity options of three and 10 years. However, the second tranche in July was oversubscribed more than three times, collecting about Rs 11,000 crore.
LASTLY, AN UPDATE ON ALL THE STOCKS BUZZING THIS MORNING
Vedanta has offered a full corporate guarantee for its bid to buy out distressed Videocon Industries, tilting the scales in its favour, persons involved in the process said
M&M is liquidating Pininfarina Engineering, a unit of its Italian subsidiary Pininfarina, citing strategic irrelevance of the business and poor market visibility
DHFL on Sunday said fraudulent transactions of Rs 1,058.32 crore by way of undervaluation, fraud and preferential treatment to certain entities have been detected by transaction auditor Grant Thornton.
Maruti is looking to enter the diesel segment once again next year as the vertical continues to draw a lot of customers especially in the high selling SUV and multipurpose vehicle segments.
That’s it for now. For all the market news through the day, do track ETMarkets.com. Have a great day ahead! Bye-bye
