ETMarkets Morning Podcast: Nifty expected to climb 200 points further

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Nandini Sanyal, and here is what we have to start your day.

>> Analysts project another 200-pt gain for Nifty
>> 5 midcaps set to become largecaps
>> In a first for PSUs, IRFC IPO to have anchor book
>> Airtel beats Jio in user addition

And there is more. But first, a quick glance at the state of the markets…

>> Nifty futures on the Singapore Exchange traded 28 points lower at 7 am (IST), signalling weakness ahead on Dalal Street.

>> A gauge of Asian shares hit a record peak on Monday on hopes of a much-needed US stimulus package before year-end as coronavirus vaccines roll out. Japan’s Nikkei added 0.1%, South Korea’s Kospi 0.4% and Australia’s S&P/ASX 200 0.8%.

>> On Wall Street, stock indices reached fresh all-time highs on Friday with the Dow rising 0.8%, the S&P500 gaining 0.9% and the Nasdaq 0.7%.

>> The rupee snapped its two-day losing streak to close 13 paise higher at 73.80 against the US dollar on Friday, as RBI maintained status quo on the benchmark interest rate for the third time in a row.

>> The US dollar was little changed against a basket of major currencies, after hitting a two-and-a-half-year low last week. The pound fell 0.2%. The risk-sensitive Australian dollar was mildly positive.

>> Crude prices hovered near their highest since March. US crude was off 13 cents at $ 46.13 a barrel while Brent was down at $ 49.10.

>> On Friday, gold futures snapped a three-day winning streak and fell 0.2% to Rs 49,209 per 10 gm on MCX, while silver futures edged 0.3% higher to Rs 63,848 a kg. In international markets, spot gold slipped to trade at $ 1,837 an ounce, still up a hefty 21% for the year.

All in all, the trade setup on Dalal Street looks weak. On Friday, Nifty50 formed higher highs and lows for the fifth session in a row, signalling a bullish bias.

LET ME NOW GIVE YOU A HEADS-UP on some of the top news we are tracking at this hour.

… Technical analysts are expecting another 200-point gain for benchmark Nifty in the coming days after the index crossed the 13,200 mark last week — a level which was seen as a strong hurdle. Analysts expect the 50-pack to find support in the 13,100-13,150 range.

… Indian Railway Finance Corporation is likely to launch its initial public offering this month to raise about Rs 4,600 crore. For the first time, the PSU has made provisions for allotment to anchor investors, which will help garner much more value for the IPO. The IPO will consist of a fresh issue of 1,180 million equity shares and an offer for sale of 594 million equity shares by the government

… Shares of Yes Bank, Adani Enterprises, PI Industries, Hindustan Aeronautics and Jubilant Food-Works are likely to get upgraded as part of the half-yearly market-cap categorisation by mutual fund industry body AMFI, which is expected to release a fresh list by January 5, said ICICI Securities. The brokerage has assigned a high probability to the first four and a low probability for Jubilant FoodWorks.

… The administrator at DHFL has sent formal letters to the four existing bidders of the troubled mortgage financier, seeking revised purchase offers for the fourth time. Potential buyers need to respond by December 14. Lenders to DHFL expect the Adani group and Oaktree Capital to submit new offers. The Piramal Group, one of the four that remained until round three, is yet to firm up its mind on the type of bid to be made. Lenders expect the fourth round of bids to lift the offer price by about 5-10%.

… Rates on short-term money market instruments, such as select commercial papers, treasury bills and tri-party repo, have fallen below RBI’s reverse repurchase gauge, making it difficult for mutual funds that invest in short-term debt to make money from their so-called liquid schemes. The reverse repo rate, at which commercial banks park their excess cash with the central bank, is currently at 3.35%. Debt-based liquid funds yielded 0.76% in the past three months, and 3.75% in the year to date, show data from Value Research Online. Fund managers are not permitted to invest in long-term papers in liquid plans.

… Prices of televisions, refrigerators, washing machines, air-conditioners and microwave ovens are set to rise by up to 20% this month due to a 15-40% increase in input costs, making it among the biggest one-shot hikes, industry executives said. Copper, zinc, aluminum, steel, plastic and foaming agents have become dearer, while ocean freight costs have risen 40-50%, they said. Prices of television panels are up 30-100% due to a global shortage, necessitating the increase.


>> Bharti Airtel added as many as 3.8 million active mobile users in September, helped by the strongest mobile broadband user additions among the Big 3 telcos, outpacing Jio’s 0.7 million additions, while Vi continued to cede ground

>> State run non-banking finance company IFCI Ltd may be put up for strategic sale, which means transfer of management control. The government currently holds 61.2% stake in IFCI, valued at about Rs 850 crore at the current market price of Rs 7.25 a share.

>> Realty developer DLF Ltd will make its rental yielding commercial assets ready for a real estate investment trust (REIT) by March 2022, a top company executive said.

>> Vodafone Idea has reacted to a spate of exits, including at senior levels, giving all employees an extra month’s pay as a one-time ex-gratia payout with the November 2020 salary

That’s it for now. For all the market news through the day, do track Have a great day ahead! Bye-bye

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