In the week ahead, the key factors that could likely guide the stocks markets would be macroeconomic data announcement, auto sales numbers, RBI interest rate decision and global events related to the US and China over Hong Kong. The focus on Monday as the equity markets open will be on the official data which showed India's economic growth slipping further to a low of 4.5% in July-September. Let’s look at company specific news you should you should know before markets open on Monday:
- Dewan Housing Finance Ltd (DHFL): The Reserve Bank of India (RBI) on Friday filed insolvency application against cash-strapped DHFL at Mumbai bench of the National Company Law Tribunal (NCLT). Reports suggest that the RBI has filed the plea on the basis of State Bank of India's (SBI) report on DHFL default. With this, DHFL has become the first financial service provider to face the bankruptcy court under the new bankruptcy rules. On November 15, the corporate affairs ministry had notified these rules to deal with the resolution of financers apart from banks.
- Jaypee Infra Ltd: State-owned NBCC Ltd is likely to offer more land to lenders and reduce timeline for completion of about 20,000 flats in its final bid to acquire bankrupt realty firm Jaypee Infratech, media reports suggested citing unnamed sources. NBCC is considering to give additional land to lenders in lieu of its offer to provide profit share in unclaimed flats and some land parcel, which is pledged as well as under litigation.
- Maruti Suzuki Ltd: India’s largest carmaker Maruti Suzuki India Ltd (MSIL) recorded a 2% yoy decline in its total wholesales in November, the company said in a statement on Sunday. MSIL’s total sales, including exports, stood at 150,630 units in November as against 153,539 units in the same period last year. The company’s total domestic sales declined 1.6% yoy to 143,686 units and exports fell 7.7% to 6,944 units.
- Tata Motors Ltd: The automaker reported a 25.32% decline in total sales to 41,124 units in November. The company had sold a total of 55,074 units in the same month last year, the Tata group company said in a statement on Sunday. Total domestic sales were down 25% at 38,057 units as compared to 50,470 units in November last year, it added.
- Ruchi Soya Ltd: Baba Ramdev-led Patanjali Ayurved on Friday said it has tied up loan worth Rs3,200cr from a consortium of lenders led by State Bank of India to fund its acquisition of Ruchi Soya through insolvency process. Patanjali said it has got loans of Rs1,200cr from SBI, Rs700cr from Punjab National Bank, Rs600cr from Union Bank of India, Rs400cr from Syndicate Bank and Rs300cr from Allahabad Bank. In September, the National Company Law Tribunal (NCLT) approved the resolution plan of Patanjali Ayurved to acquire debt-laden Ruchi Soya.
- Reliance Industries Ltd: Mukesh Ambani-led Reliance Jio has emerged as the highest bidder for mobile tower and optical fibre assets of Reliance Infratel by placing bids of around Rs3,600cr, media reports suggested citing sources. The process of finalizing the bids will take a minimum of one-two weeks as committee of creditors (CoC) will meet all the bidders and negotiate with them and then vote on it.
- Telecom companies: All three private telecom operators in the country, Vodafone Idea Ld, Bharti Airtel Ltd and Reliance Jio Infocomm Ltd, on Sunday said they will raise prices of their pre-paid call and data services. Hikes in most of the plans, across the three operators, are in the range of 15% to 20% with the maximum being around 47%. While the new tariffs for Vodafone Idea and Bharti Airtel will be effective starting Tuesday, Reliance Jio’s revised tariffs will come into effect on 6th December.
- Mahindra & Mahindra Ltd: The Anand Mahindra led company on Sunday reported a 9% yoy decline in its total wholesale volumes in November. The company's sales across passenger vehicles (PV) and commercial vehicles (CVs) stood at 41,235 units in November as against 45,101 units in the year-ago period. Domestic volumes in this category fell 7% yoy to 38,614 units, while exports declined 26% yoy to 2,621 units. An unfavorable Supreme Court judgement for Bharti Airtel and Vodafone Idea has most likely prompted the tariff hikes.
- Jagran Prakashan Ltd: A meeting of the Board of Directors of the academic book publishing company is scheduled to be held on Monday, December 09, 2019, to consider a proposal for buy-back of the fully paid-up equity shares of the company, as well as matters related / incidental thereto.
- Infosys Ltd: The Bengaluru based software maker said it has inked an agreement with Australian federal government’s Services Australia to transform the entitlement calculation engine for the nation’s welfare system. The project will enable Services Australia to quickly implement policy changes for the benefit of Australians without disrupting services and deliver operational cost savings, a company said in a statement on Friday. The Welfare Payment Infrastructure Transformation (WPIT) program will replace a significant portion of Centrelink’s 30-year-old platform, modernizing the way Services Australia calculates entitlements for Australians needing government support, it added.
US stocks closed lower on Friday, as investors worried about the deterioration in US-China trade relations after a bill supporting Hong Kong protesters was signed by President Trump late on Wednesday. The Dow Jones Industrial Average retreated 112.59 points, or 0.4%, to close at 28,051.41. The S&P 500 12.65 points, or 0.4%, to finish at 3.140.98, and The Nasdaq Composite fell 39.7 points, or 0.5%, to end at 8.665.47.
Investors were concerned that a US-China trade deal may be in jeopardy after President Donald Trump signed legislation supporting Hong Kong protesters. In response China summoned the US ambassador to protest and warned the move would undermine cooperation with Washington. A trade deal with China needs to be signed before the Dec. 15 deadline for a new round of import US tariffs on Chinese goods.