In the holiday-shortened week ahead, the rejig in Sensex constituents, December series F&O expiry and slowdown in inflows from foreign institutional investors are likely to be the key factors in focus. Let’s look at company specific news you should know before markets open on Monday.
- InterGlobe Aviation Ltd: The parent of domestic carrier Indigo will be in focus as reports said that India has stepped up scrutiny of engines on Airbus SE’s A320 neo jets. This will push Indigo to replace more engines than previously estimated, a move that could potentially delay the budget carrier’s expansion plans. A “more intense boroscopic examination" of engines manufactured by Pratt & Whitney has identified more engines at risk of shutting down in midair, Arun Kumar, the head of India’s Directorate General of Civil Aviation, media reports suggested. Out of roughly 200 engines in use, IndiGo will now have to replace at least 130. India’s aviation minister, Hardeep Singh Puri, had earlier put the figure at 110.
- Sensex reshuffle: YES Bank, Tata Motors, Tata Motors DVR and Vedanta will move out of Sensex with Nestle India, Titan and UltraTech replacing them from Monday onwards. With this reshuffle, the Sensex will have 30 constituents, instead of 31 earlier. The reshuffle may cause some sudden price changes in the above-mentioned stocks, as fund managers, especially of ETFs and index funds that track Sensex, will have to alter portfolios as per the changes.
- Reliance Industries Ltd: On Friday, the Delhi High Court had ordered RIL and British Gas (now Shell) to disclose their assets after the Centre sought to restrain them from disposing of the same. RIL plans to sell a 20% stake in its refining and petrochemicals business to Saudi Aramco. According to the government, RIL and its partner are required to pay a non-payment penalty of $4.5bn with interest. In an emailed response, RIL spokesperson has mounted a strong counter to the government, saying that the petition is an abuse of process as no arbitration award has fixed any final liability of dues on the company.
- Gail India Ltd: The Department of Telecommunications has sought Rs1.72 lakh cr in past statutory dues from state-owned gas utility GAIL India following the Supreme Court's ruling on revenues that need to be taken into consideration for payment of government dues. In response, GAIL has told DoT that it owes nothing more than what it has already paid to the government.
- IDBI Bank: LIC-controlled IDBI Bank expected to come out of the Prompt Corrective Action (PCA) framework in the last quarter of the current fiscal with the support of capital infusion and recovery from large IBC cases. With money coming from resolution on Essar Steel and expected flow from resolution of Bhushan Power and Steel and Alok Industries, the bank is likely to be posting profit during the third quarter and the subsequent quarter, media reports suggested.
- Ultratech Cement Ltd: India’s largest producer of the building material, has emerged as the front-runner to buy the cement business of Emami Group in an all-cash deal worth Rs6,500-7,000cr, media reports suggested citing sources. The sale of Emami Cement Ltd has entered the final binding bid round, with Ambuja Cements Ltd, as the only other contender.
- Tata Global Beverages Ltd: Whirlpool India’s Managing Director Sunil D’Souza will be the new MD and chief executive officer (CEO) of Tata Global Beverages, the firm said on Friday. The company said Ajit Krishna Kumar would take over as chief operating officer. D’Souza’s appointment is effective April 2020. The announcement of D’Souza at the helm of Tata Global brings to an end a nearly six-month search for a new captain to steer the company, which is changing focus from being a beverages-only company to one that includes foods as well. Incumbent MD and CEO Ajoy Misra is retiring from the company at the end of FY20.
- Glenmark Pharma Ltd: Drug firm Glenmark Pharmaceutical Inc, USA said it is voluntarily recalling all unexpired lots of its ranitidine tablets, used to treat ulcers of the stomach and intestines, from the US market. The tablets are being recalled because of the presence or potential presence of nitrosodimethylamine (NDMA) levels above the acceptable daily intake levels established by the United States Food and Drug Administration (USFDA), as per the company's announcement posted on the website of the US health regulator.
- KEC International Ltd: The flagship company of the RPG Group in a BSE filing on Saturday, said it has bagged orders worth Rs1,520cr across various business verticals. Its urban transport business has secured an order of Rs964cr for the construction of elevated viaduct along with 8 stations of the Delhi Metro Phase IV project from Delhi Metro Rail Corporation (DMRC).
- Jet Airways Ltd: Hyderabad-based Turbo Aviation Private Limited is the latest to express interest for acquiring the defunct Jet Airways in the ongoing corporate insolvency resolution process, media reports suggested. Alongside this, the reports also suggested that the Hinduja group is still open to acquiring defunct Jet Airways (India) Ltd if the conglomerate is indemnified from the airline’s legal liabilities. Ashish Chhawchharia, the appointed resolution professional of Jet Airways, had recently informed the Mumbai bench of the National Company Law Tribunal (NCLT) on December 17 that two entities had shown early interest to invest in in the grounded airline.
US stock indexes ended higher Friday, after encouraging US economic data and optimism about international trade deals aided investors’ bullish momentum. The Dow Jones Industrial Average, rose 78.13 points, or 0.3%, at 28,455, the S&P 500 index added 15.85 points, or 0.5% to 3,221.22, while the Nasdaq Composite index picked up 37.74 points, or 0.4%, at 8,924.96.
The Commerce Department’s third estimate of third-quarter GDP, published Friday, left growth unchanged at 2.1%, with strong consumer spending offset by weaker business investment in inventories. Additionally, on the same day a report showed that the US households continue to spend amid a healthy job market. That is making up for lower business spending, and helping keep the economy growing at a moderate pace.