In the week ahead, investors will focus on the developments coming in from the US-China’s continued friction, Recently, the Chinese Commerce Ministry said China and the United States have agreed to hold trade talks “in the coming days” to evaluate the progress of their Phase 1 trade deal. However, the Trump administration declined to acknowledge any such plans. Adding to this, US President Donald Trump vowed to end the country's reliance on China if elected president again. Closer home, this week may see volatility on the indices given the August month derivative expiry on Thursday.
Let us look at the stocks that will be in focus as markets open on Monday:
1. ICICI Lombard Ltd: The insurance arm of ICICI bank will acquire Bharti Enterprises-promoted Bharti AXA General Insurance through a share swap deal. Bharti Enterprises currently owns a 51%stake in Bharti AXA General Insurance, while French insurer AXA holds 49%. In a statement to the stock exchanges post-market hours Friday, the company said the shareholders of Bharti AXA will receive 2 shares of ICICI Lombard for every 115 shares of Bharti AXA held by them as on the date on which the ''scheme of arrangement'' is approved by the two insurance firms. The companies, however, did not disclose the deal value.
2. Future Enterprises Ltd: The Kishore Biyani led company announced on Saturday that it has postponed its board meeting to be held on August 22, by a week to August 28. The board was expected to discuss the merger of three group companies- Future Lifestyle, Future Supply Chain, and Future Retail- in the meeting. Future Enterprises did not divulge any reason for the postponement of the crucial meeting.
3. Granules India Ltd: The company’s subsidiary has received U.S. FDA approval for its Abbreviated New Drug Application (ANDA) for Ramelteon Tablets. The drug is used in the treatment of insomnia. The drug had U.S. sales of approximately $33 mn for the most recent twelve months ending in June 2020, as per IQVIA.
4. Dixon Technologies Ltd: The company’s board has approved raising of funds by way of issuance of any instrument or security, including equity shares, fully / partly convertible debentures, NCDs, Foreign Currency Convertible Bonds, warrants or any other combination thereof, in one or more tranches for an amount not exceeding Rs200cr, subject to necessary approvals.
5. Sterlite Technologies Ltd: The data network solutions provider will hire about 300-400 professionals this fiscal for growth areas of 5G and wireless ecosystem and to support its plans to take services business global. The company will hire professionals with requisite experience as well as freshers for these growth areas. Part of the hiring is also in view of the company's plans to take its services business global, in markets of the Middle East and Europe.
6. SBI, and other PSU lenders: As many as five large banks, including SBI, PNB and BoB, are likely to sell shares to institutional investors in the second half of this fiscal as they look to shore up their capital base amid the coronavirus pandemic impacting the economy. Qualified Institutional Placement (QIP) would be the most preferred way and public sector banks are likely to take a call on taking this route after finalization of their second quarter results, media reports suggested. Four to five large banks like State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BoB) and Union Bank of India would look at raising capital towards the end of third quarter or during the fourth quarter of this fiscal.
7. Mindspace Business Parks REIT Ltd: Public unit holder BREP Asia SG Pear Holding created an encumbrance of 5.43cr units amounting to a 9.16% stake in favor of certain overseas financial institutions availed for a credit facility availed by the trust.
8. Tata Power Ltd: NCLT Mumbai approves withdrawal of scheme of transfer of certain renewable energy undertakings from the company to its arms Tata Power Renewable Energy, Supa Windfarm, Nivade Windfarm and Tata Power Green Energy on a slump sale basis.
9. Punjab National Bank: State-owned lender reported a standalone net profit of Rs 308 cr for the quarter ended June. The country's second-largest lender had posted a net profit of Rs1,018.63cr during the corresponding April-June period of 2019-20. The numbers are not comparable as the bank merged Oriental Bank of Commerce and United Bank of India with itself effective April 1, 2020, PNB said in a statement to the stock exchanges.
10. Phoenix Mills Ltd: The government of Singapore has invested Rs450cr in the recent qualified institutional placement (QIP) offering of mall developer Phoenix Mills Ltd. The mall operator has raised Rs 1,100cr through its QIP. The government of Singapore was the biggest investor in the share sale, contributing almost 41% of the total amount. Other major investors in the share sale include domestic institutional investors such as ICICI Prudential Mutual Fund, SBI Mutual Fund and Aditya Birla Sun Life Mutual Fund.
Let us look at the developments which took place on the global front : US stocks remained buoyant Friday, hitting fresh records supported by positive economic data.The Dow Jones Industrial Average rose 190.60 points, or 0.7%, to close at 27,930.33, and the S&P 500 added 11.65 points, or 0.3%, to close at 3,397.16. The Nasdaq Composite Index also closed at a fresh high of 11,311.80, up 46.85 points or 0.4%, after carving out a new intraday record high at 11,323.71.
In economic data, the US IHS purchasing managers indexes for August were better than expected, with a flash reading for manufacturing at 53.6, a 19-month high, and up from 50.9 in July. The service sector index rose to 54.8 for August, a 17-month high, and up from 50 in July. A reading of 50 or above indicates improving conditions.