News and Impact
Expect market to open on a negative note on account of weak global cues. US Dow Jones slipped 1% after the Trump administration signaling the U.S. plans to move forward with tariffs on Chinese goods if no deal is reached before the mid-December deadline. The president had earlier indicated he’d be willing to wait another year before striking an agreement with China. He also threatened levies on France after hitting steel from Brazil and Argentina.
Asian markets like Nikkei, Hong Kong and yesterday European markets slipped 1% after the Chinese state media said Tuesday the government would soon publish a list of “unreliable entities” that could lead to sanctions against American companies. Meantime, France said the European Union would retaliate if the U.S. follows through on a threat to hit about $2.4 billion of French products with levies.
Traders apply caution in the market. Trade deal with US is now spread out not only in China but also Brazil, Argentina and other European Countries. However, domestic cues remain strong on account of government reforms and good quarterly results. FIIs were net sellers over Rs1000cr yesterday and Rs4500cr net sellers in the last three trading sessions. Currently SGX Nifty declined by 41 points or 0.3%.
Sectors - Telecom, Tech and Banks
Actionable - BUY Bharti Airtel, ICICI Bank and Infosys
Brokers Radar – L&T Infotech CITI BUY TGT 1855, JP Morgan neutral on Pidilite TGT 1285, ICICI Bank Nomura raised 610, Morgan Stanley TGT 775 and JP Morgan 575, Lupin CLSA TGT 640
Market summary – Cabinet Meeting today, Life Investments proposes to sell as many as 4.75mn shares of HDFC Asset Management, CSB will be listing today, Biocon hopes to make a “major impact” in the $3bn market for Trastuzumab biosimilar in the U.S., Ujjivan Small Finance Bank IPO Subscribed five times on day 2, Max India - IRDA approves deal to sell Max Bupa to Fettle Tone, Bharti Airtel Board meeting today on fund raising plan, Auto players like Maruti, M&M, Tata Motors to hikes price, MPC meeting final day today and tomorrow will be RBI credit policy. S&P reaffirms India's rating at 'BBB-'
HDFC Life - Standard Life to sell 2.23% stake in HDFC AMC via OFS today for HNI - Standard Life, one of the promoters of HDFC Asset Management, will offload 2.23 per cent stake in the fund house on December 4-5 worth Rs1506cr. Floor price set at 3170 a share (CMP 3441). Date for institutional investors Dec. 4; for retail investors and Dec. 5 for retail investors – Standard Life currently holding 29.9% stake. Significant discount of nearly 10% is opportunity to buy on the stock.
Cabinet meeting will be held today (expected time 9.30am) – Media news that the Cabinet may approve New IBC (Insolvency and Banking Code), companies Act and Citizenship … main agenda – Expect momentum on Real Estate stocks ahead of change in IBC Code.
ICICI Bank – After a gap of 10-year, ICICI Bank has announced a strong growth on its analyst meeting – We are positive on ICIC Bank on account of improved asset quality and attractive valuation.
CSB Bank will be listing today. It has 87 times oversubscribed at Rs195 a share – Expects other mid and small cap bank will be momentum like DCB Bank, BoB, Federal Bank.
Nestle India to pay interim dividend of Rs55 a share - Positive for Nestle.
S&P reaffirms India's rating at 'BBB-' - S&P has reaffirmed sovereign rating of India at BBB- with stable outlook. They have stated that India’s economy continues to achieve impressive long-term growth rates despite a recent deceleration – Positive for the market.
Yes Bank declined 10% yesterday after the lender filed a petition before NCLT Allahabad to initiate the corporate insolvency resolution process against Jaypee Healthcare Ltd, a subsidiary of Jaypee Infratech Ltd – Avoid on Yes Bank
GATI – Media news that the Allcargo plans to buy 50% stake in GATI, Valuing Rs1200cr in a deal. Company may announce later this week.
Ujjivan Small Finance Bank IPO Subscribed Five Times On Day 2 – Positive for Ujjivan Financial
By: via @AlliesFin Serve T.ME/ALLiESFiN
