SpiceJet | The low-cost carrier announced the signing of a Memorandum of Understanding (MoU) with Pluss Advanced Technologies (PLUSS) for the supply of indigenously developed precise temperature control boxes required for maintaining the effectiveness of the vaccine during transport. PLUSS will supply its patented product – Celsure®, developed using its proprietary Phase Change Material technology, for transportation of the Covid-19 vaccines from the manufacturer to different parts of the country. The product will be co-branded especially for SpiceJet’s cargo division Spice Xpress and will be made available at various locations across the country
DHFL | Voting on DHFL resolution plans is likely to start tonight. Sources tell CNBC-TV18 that the resolution plans from all 4 suitors, Oaktree, Piramal, Adani and SC Lowy, will be voted on. Oaktree and Piramal are seen neck and neck; claim to offer the best proposal. Both have increased their bids by Rs 1,700 crore last week.
Motilal Oswal on Aurobindo Pharma | We expect a 12 percent earnings CAGR over FY20-23E (on a high base of FY20, including Natrol sales), led by new launches/increased market share in key markets (US/EU), 180 bps margin expansion, and lower financial leverage. The Vaccine opportunity has the potential to add Rs 4.5/12 to FY22/23E EPS, subject to regulatory approval. We value Aurobindo Pharma at 16x 12M forward earnings to arrive at our TP of Rs 1,100. We remain positive on the company given: a) capability to build a niche portfolio, b) cost efficiency owing to complete integration of manufacturing, and c) lower financial leverage. Reiterate Buy.
Market Update | Nifty Realty index was trading more than 3 percent higher led by strong gains in Indiabulls Real Estate, Godrej Properties and DLF.
Market Watch: Bhavin Mehta of Dolat Capital
Titan Company looks attractive at current levels. Overall it is placed for a move and possible breakout in near term. The stock has been consolidating over last 4-5 trading sessions; believe the stock could potentially move closer to the level of Rs 1,530-1,570 on the upside. One can look at to buy the stock with strict stop loss at Rs 1,485.
Balkrishna Industries has been consolidating over the last 3 trading sessions. Good base formation is already seen; anticipating stock to move closer to Rs 1,640 on the upside. Stop loss for this should be kept around a level of Rs 1,550.
Buzzing | Shares of NIIT gained over 4 percent after board has approved an up to Rs 237-crore buyback proposal at Rs 240 per equity share. “…the Board of Directors of the company at its meeting held on December 24, 2020, has approved a proposal for buyback of up to 9,875,000 fully paid-up equity shares of the company…for an aggregate amount not exceeding Rs 2,370,000,000,” the company said in a regulatory filing.
Tips Industries, Facebook ink global licensing deal
Music record label Tips Industries has announced a global deal with social media giant Facebook to license its music for videos and other social experiences across Facebook and Instagram. ”It has been a big and significant year for Tips music, as the company signs another global deal with the biggest social media platform in the world Facebook to license its music for videos and other social experiences across Facebook and Instagram,” Tips Industries said in a statement.
With the move, Facebook and Instagram users will be able to add Tips’ music catalogue to their posts and stories, the statement added. Tips Industries chairman and managing director Kumar Taurani said the deal with Facebook will allow millions of Facebook and Instagram users across the world to add Tips’ music to their stories and videos. Continue reading.
China pushes Ant Group overhaul in latest crackdown on Ma
China’s central bank disclosed on Sunday it had asked the country’s payments giant Ant Group Co Ltd to shake up its lending and other consumer finance operations, the latest blow to its billionaire founder and controlling shareholder Jack Ma.
The announcement came more than a month after Chinese regulators abruptly suspended Ant’s blockbuster USD 37 billion initial public offerings in Shanghai and Hong Kong, and only days after the country’s antitrust authorities said they had launched a probe into Ma’s e-commerce conglomerate Alibaba Group Holding Ltd.
Chinese regulators and Communist Party officials have set about reining in Ma’s sprawling financial empire after he publicly criticized the country’s regulatory system in October for stifling innovation. Continue reading.
Buzzing | Shares of DLF rallied over 5 percent after the company announced the acquisition of 51.8 percent stake in Fairleaf, a joint venture company. DLF Cyber City Developers Limited (DCCDL), a material subsidiary of DLF, holds a 48.2 percent stake in Fairleaf Real Estate Private Limited. Fairleaf is a joint venture company, with funds managed by Hines, which owns and operates One Horizon Center, Gurugram. DCCDL has entered into a securities purchase agreement with Hines to acquire its 51.8 percent stake in Fairleaf for a purchase consideration of about Rs 780 crore, subject to closing adjustments.
Buzzing | Shares of Biocon Ltd traded over 2 lower on Monday after US FDA deferred application for cancer biosimilar of Avastin. Global research firm CLSA reiterated its Sell rating on the stock with the target at Rs 250 per share. The research firm is of the view that the pharma company’s market share in Fulphila slipped to a September 2020 level of 7.5 percent, while that for November was mixed in the US. Mylan gained 20 bps market share in Ogivri to reach 7.1 percent. CLSA believes that approval for Avastin in the US and insulin Aspart in Europe are key triggers.
Equitas Small Finance Bank | The bank says its Vice President-Internal Audit, N Ganesan has violated code of conduct for prevention of insider trading by selling shares during the window closure period. Disciplinary Action Committee has levied a penalty of 10 percent of traded value.
Dixon Technologies (India) | Dixon’s wholly-owned subsidiary, Padget Electronics, has signed an agreement with Motorola for manufacturing of smartphones. The products will be manufactured at Padget’s manufacturing facility situated at Noida, Uttar Pradesh.
#OnCNBCTV18 | Ramesh Gehaney, ED & COO of automotive component manufacturing company Endurance Technologies believes the PLI scheme for autos is encouraging.
But as per data, only 14% of auto ancillaries are eligible for PLI scheme now, which is a dampener, he feels. pic.twitter.com/ihSMflVuVT
— CNBC-TV18 (@CNBCTV18Live) December 28, 2020
Tata Motors shares rally 4% as Brexit overhang resolves
Shares of Tata Motors gained over 4 percent on Monday as analysts believe that the deal between the European Union and the United Kingdom (UK) will remove key overhang on the stock.
In a regulatory filing, Tata Motors said that Jaguar Land Rover had comprehensive contingency planning and actions in place to respond to ongoing COVID challenges and disruption.
“Recent issues at UK ports have had no immediate impact for Jaguar Land Rover. Our guidance of improved growth, profitability and cash flows in second half of the year continues to hold,” it said.
Global brokerage CLSA retained a Buy call on the stock with a target price of Rs 220 per share. It is of the view that the EU-UK Trade and Cooperation Agreement (TCA) allows the free trade of goods (zero tariffs).
“This removes a key potential risk for Jaguar Land Rover (JLR) which can now continue to export (and import) its vehicles between the UK and EU without additional costs. While free trade is now subject to rules of origin (RoO) requirements, we believe JLR should be largely compliant,” CLSA said.
CLSA expects investor focus to shift back to its volume and mix recovery as well as JLR’s cost reduction efforts.
NTPC | Dulanga Coal Mine of NTPC having an ultimate peak rated annual capacity of 7 Million Tonnes Per Annum, is declared on commercial operation w.e.f. 01.10.2020.
Jyoti Roy – DVP- Equity Strategist, Angel Broking
Wipro’s Rs 9,500 crore share buyback will open at Rs 400 per share from the December 29. Acceptance ratio in the retail segment is expected to be reasonably high given lower retail holdings in the stock. Therefore investors with a short term investment horizon can tender their share in the buyback given the fact that there would be no tax liability in the investor tendering their shares in the buyback.
However, we would recommend investors with a long term investment horizon of greater than one year to hold on to the stock given strong demand growth expected for IT services due to increased adoption of digital technologies. Moreover, the company has been revamping its business model under the new management which is expected to bear fruits over the next couple of years and help the company achieve industry average growth rates.
Asian stocks advance after Trump signs $900 billion aid package
Asian stock markets rose Monday after President Donald Trump signed a USD 900 billion economic aid package, helping to reduce uncertainty as governments re-impose travel and business curbs in response to a new coronavirus variant. Shanghai, Tokyo and Hong Kong advanced as traders returned to work following a three-day Christmas weekend.
Trump signed the measure, which also includes money for other government functions through September, despite expressing frustration that USD 600 payments to the public weren’t bigger. His signature following last-minute objections helped to clear away uncertainty as reinstated travel and business curbs threaten to weigh on global economic activity.
The stimulus balloon will allow the markets to navigate better the number of new air pockets showing up on the radar due to the virus’s latest variant, said Stephen Innes of Axi in a report.
The Shanghai Composite Index gained 0.4 percent to 3,410.90 and the Nikkei 225 in Tokyo added 0.6 percent to 26,823.45. The Hang Seng in Hong Kong advanced 0.3 percent to 26,467.90. In Seoul, the Kospi was 0.7 percent higher at 2,827.97. Singapore and Jakarta advanced. Australian markets were closed. Read more here.
Buzzing | Reliance Industries’ shares gain on acquisition of remaining stake in IMG-Reliance JV
Shares of Reliance Industries gained in the early trade on Monday after the company announced the acquisition of IMG Worldwide’s 50 percent stake in the joint venture entity.
Reliance Industries has entered into definitive agreements to acquire the shares held by IMG Singapore Pte. Ltd in IMG-R for a cash consideration not exceeding Rs 52.08 crore.
IMG Reliance Limited (IMG-R) is a joint venture between IMG Worldwide LLC (IMG) and RIL. IMG Singapore Pte. Ltd., a wholly-owned subsidiary of IMG, holds 50 percent of the share capital of IMG-R.
IMG–R is engaged in the business of creation, management, implementation and commercialisation of sporting, fashion and entertainment events in India.
Market Watch: VK Sharma, HDFC Securities
Buy 610 call in Axis Bank at Rs 11 with a stop loss at Rs 7 for a target of Rs 20.
Buy 5200 call in Bajaj Finance at Rs 88 with a stop loss at Rs 60 for a target of Rs 150.
Buy 500 call in Cadila Healthcare at Rs 8.20 with a stop loss at Rs 5 for a target of Rs 15.
Buy 680 call in Max Financial Services at Rs 17 with a stop loss at Rs 13 for a target of Rs 25.
Buzzing | Shares of Paisalo Digital jumped 20 percent to a 52-week high of Rs 625.55 apiece on the BSE after SBI Life Insurance acquired 8.99 percent stake in the company for a cash consideration of about Rs 186.20 crore.
Adani Ports & SEZ | Adani International Container Terminal Private Limited (AICTPL) maiden USD 300 million public USD bond issue subscribed 10 times, said Adani Port. The issue of 10 Years was priced at par to yield 3.00% which is also the lowest coupon achieved by any corporate Indian issuer in the last 5 years, it added.
Technical View | We have opened on a boisterous note and should be headed to 13,950-14,000 levels soon. This could be as early as this week. The weekly support is at 13,550-13,600 and any dip towards those levels becomes a good buying opportunity for higher targets, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Market Opens | The Indian equity benchmark indices, Sensex and Nifty opened at record high levels on Monday following gains in Asian peers after reports said that US President Donald Trump has signed a USD 900 billion pandemic relief package. Broader markets, Nifty Midcapp100 and Smallcap100 supported gains. All the Nifty sectoral indices were trading in the green led by banks and metals.