In the week ahead, The US-China trade deal, a clear path for Brexit and global liquidity flows are some of the key factors that will guide Dalal Street this week. Closer to home, fears over over stagflation setting in the economy, as well as macro-economic wholesale inflation data and GST Council meet will determine the key equity market moves during the upcoming week. Let’s look at company specific news you should you should know before markets open on Monday.
- Punjab National Bank: In a regulatory filing on Saturday, PNB said the divergence in gross non-performing assets (NPAs) assessed by the central bank stood at Rs2,617cr in FY19. The divergence assessed by the RBI in net NPAs was also Rs2,617cr for the fiscal. Also, the divergence in provisioning for bad loans in FY19 was to the tune of Rs2,091cr. Consequently, based on the divergence assessed by RBI in provisioning for bad loans, PNB said it would have reported a net loss of Rs11,335.90cr for FY19 as opposed to a net loss of Rs9,975.49cr. Recently, market regulator Sebi made it mandatory for listed banks to disclose bad loan divergence within a day of receiving the risk assessment report from the RBI.
- BEML Ltd: The Centre is likely to sell 28% of its stake in BEML Ltd through strategic disinvestment and retain 26% after the dilution of its shareholding in the public sector undertaking, a senior company official said. The government currently holds 54.03% stake in the diversified engineering company. The Centre has already "initiated preparatory work" for the disinvestment, he said.
- EaseMyTrip: Online travel company EaseMyTrip has filed draft papers with capital markets regulator Sebi to float a Rs510cr initial public offering. Through the IPO, company's founders Nishant Pitti and Rikant Pitti will each sell shares to the tune of Rs55cr through the offer-for-sale mechanism, according to draft papers filed with the Securities and Exchange Board of India (Sebi). The city-based company said the object of the public issue is to achieve the benefits of listing the equity shares on stock exchanges.
- Granules India Ltd: Granules India is selling its entire stake in Granules-Biocause Pharmaceutical Co., an equal joint venture in China, to JV partner Hubei Biocause Heilen Pharmaceutical Co for RMB 109mn. On Friday, the Hyderabad-headquartered drugmaker informed the stock exchange of an agreement it had entered into with Hubei Biocause Heilen Pharmaceutical Co. for sale of 33mn equity shares of 1 RMB each in the JV for a consideration of RMB 109mn. As is the norm for such transactions, the conclusion is subject to fulfilment of certain closing conditions as well as applicable regulatory approvals.
- Oil India Ltd: Amid fervent protests in Assam over the Citizenship Amendment Act, PSU major Oil India Limited (OIL) issued an appeal to the people of the state on Saturday to allow it to carry out day-to-day operations, which the firm said have been "severely impacted”. The appeal issued in leading English daily of the state, the Assam Tribune, cautioned that the "total disruption of OIL's operational activities will adversely impact the economy of the State and the lives of the common people”. Besides, loss of production of crude oil and natural gas, the stoppage of OIL's operations has badly hit production of LPG and supply of crude oil to refineries and consumers of natural gas like BVFCL, BCPL, NEEPCO, AGCL and APL among others, it said.
- Tata Motors Ltd: Tata Motors is not looking to reduce workforce due to the ongoing slowdown in the domestic market, as it expects things to get better amid a wave of new products lined up for the launch over the next few months, media reports suggested citing CEO and MD Guenter Butschek . According to its website, the automobile major currently employs about 83,000 persons with presence across commercial and passenger vehicles. The company is now in the midst of new product launches that include Altroz, Nexon EV and Gravitas SUV over the next few months and there is also the transition to BS-VI norms. The company has all kinds of mechanisms in place including cost optimisation and quality control measures, to get to the next level, Butschek added.
- UPL Ltd: Agrochemical firm UPL has received the environment clearance from the government for its Rs353.43cr pesticide unit expansion project in Bharuch district of Gujarat, according to official documents. The environment ministry has given the go-ahead to the company for the proposed expansion project based on the inputs of a green panel, the documents showed. The company plans to increase the capacity of pesticide unit from 1,520 tonne per month (TPM) to 4,720 TPM and pesticide-specific intermediate from 1,120 TPM to 2,100 TPM at Ankleshwar in Bharuch district. The expansion, which will be in the existing land area of 1.36 lakh square metres, is estimated to cost Rs353.43cr, the documents showed.
- NLC India Ltd: State-owned NLC India said on Sunday it is planning to invest more than Rs17,000cr for its thermal power projects and has embarked upon afforestation programme inside and outside the coal mining area in Odisha. The Navratna company will produce 20 million tonne of coal per annum from Talabira II and III coal blocks to fuel its 4,200 MW of thermal power projects. The company is working closely with the Odisha forest department to make it a model mine by planting more trees than the mandated, under relevant policies.
- Reliance Industries Ltd: The Mukesh Ambani led company said that its wholly-owned subsidiary Reliance Strategic Business Ventures Ltd (RSBVL) has acquired over 51% stake in Asteria Aerospace for Rs23.12cr. RSBVL proposes to make a further investment of up to Rs125cr, subject to Asteria achieving agreed milestones, and is expected to be completed by December 2021. The investment will further enable the group's initiatives in emerging technology.
- Adani Transmission Ltd: Adani Transmission on Saturday said it has won a project to develop a 400 kV substation facility in Mumbai. The project is likely to ease transmission congestion and carry more power to meet the city’s future electricity needs. The project involves developing Mumbai’s first ever 400 kV substation facility. The project has been awarded through a tariff-based competitive bidding process. The project, Kharghar Vikhroli Transmission, comprises approximately 34 km of 400 kV and 220 kV transmission lines, along with a 400kV GIS Substation at Vikhroli.
US stocks ended nearly flat after a tumultuous session Friday after the United States President Donald Trump signed off on the phase one trade deal with China presented to him by trade negotiators during a Thursday meeting at the White House. The Dow Jones Industrial Average rose marginally by 3.28 points, or 0.01%, to close at 28,135.38. The S&P 500 remained flat, adding 0.23 points or 0.1%, to end at 3,168.80. The Nasdaq Composite added 17.56 points, or 0.2%, to 8,734.88.
The agreement between US and China includes the delay of extra tariffs that would have been imposed on December 15 and reducing tariffs on $360bn worth of Chinese imports by half. However, even though it is said that one of the main terms is for China to pledge to purchase large amounts of U.S. agricultural and other products, protect U.S. intellectual-property rights and allow wider access to China’s financial-services sector, it is still not known what exact terms will the U.S. have to fulfill.