F&O expiry: Markets likely to remain cautious

Jaiprakash Associates, YES Bank, IOC, Cipla, ONGC to be in focus

Benchmark indices are likely to open flat with a positive bias tracking mixed global cues. Also, investors are likely to remain cautious ahead of the F&O expiry due later during the day.

"Roll-over in Nifty is in line at 54.99% and of BankNifty is on the higher side at 58.61% in percentage terms. Few of the liquid counters where we have seen high rollover are Glenmark Pharma, HDFC Bank, JSW Steel, Jubilant FoodWorks and Indiabulls RealEstate," said a morning note from Angel Broking.

The early indicator, SGX Nifty is up 0.04% at 8,274.50 level.

Meanwhile, selling by foreign institutional investors continued unabated and they were net sellers in Indian equities worth Rs 444.93crore on Tuesdsay, as per provisional stock exchange data.

Global Markets:

Japanese stocks rallied and the dollar stood tall on Wednesday thanks to surprisingly robust U.S. economic growth, helping investors head into the Christmas holidays in a more relaxed mood after the global markets turbulence of the past two weeks. Nikkei, Hang Seng are up between 0.1-1% while, Shanghai Composite is down over 1% in today’s trade.

Risk appetite got a helping hand from revised data showing the U.S. economy grew at a 5.0 percent clip in the third quarter, its quickest pace in 11 years and the strongest sign yet that growth has decisively shifted into higher gear.That drove both the Dow and the S&P 500 to record closing highs overnight.

Stocks to Watch:

It will be an interesting watch for the investors in today’s trade as oil and gas exploration companies such as Cairn India, ONGC, and Oil India after crude-oil prices rose to their highest level in more than a week on Tuesday amid signs of stronger demand in both the U.S. and China, the world’s largest oil consumers.

Jaiprakash Associates will be in focus as it aims to sell two MP cement plants to Ultratech for Rs 5,400 crore.

State-run Indian Oil Corporation is likely to hog limelight after it decided to invest Rs 6,800 crore on capacity expansion and improving fuel quality at its Gujarat refinery unit. 

YES Bank will be on the investor’s radar after the private Sector lender YES Bank raised $200 million as unsecured loan from Asian Development Bank (ADB) to finance working capital and investment loans targeted towards small farm households and rural women Self Help Groups (SHGs).
 

Drug maker Cipla will remain in focus after Cipla Medpro, the South African subsidiary of Cipla, has been awarded Rs 1,100 crore (R 2 billion) worth order of the South African Government's 2015-17 National ARV tender.