The coming week will see a lot of focus on the escalating tension between United States (USA) and Iran , which will definitely affect fund flows into global equity markets. Additionally, the rising crude oil prices as a result of the growing geopolitical conflict will also have some bearing on the equity markets. On the domestic front, PMI data for the services sector and industrial production data will be announced this week. Let’s look at company specific news you should know before markets open on Monday:
- Tata Consultancy Services Ltd: TCS, the flagship company of Tata group has moved the Supreme Court, challenging the NCLAT order that reinstated Cyrus Mistry as a director of the company. The Indian IT bellwether approached the apex court shortly after Tata Sons and its patriarch, Ratan Tata filed their respective appeals against the NCLAT order directing Mistry's return. In filing to the BSE on Saturday, TCS said that the company has filed an appeal with the SC on January 03, 2020. However, Cyrus Mistry in response to the appeal filed, has said that he is not pursuing the position of Tata Sons' executive chairman, the office he was unceremoniously terminated from in October 2016, or directorship of any of the Tata group companies. However, he did say that his aim was to protect the rights of minority shareholders.
- Dixon Technologies Ltd: South Korean electronics company Samsung and Noida-based Dixon Technologies will jointly manufacture LED televisions in India. The local electronics maker will manufacture television sets for the consumer goods giant at its facility in Tirupati, as per the agreement, Dixon said in a late-night filing to the stock exchanges on Friday. Dixon also manufactures part of Samsung's washing machines, and feature phones in India. In October, the two companies also announced an agreement that will see Dixon manufacture phones for Samsung in India out of its facility in Noida.
- Bharti Airtel Ltd: Shareholders of Bharti Airtel have approved proposals to raise up to $2bn in equity and another $1bn in debt. The proposal for issuance of securities for amount up to $2bn received 99.99% votes in favour of the special resolution at the company's EGM held on 3rd January 2020. The second special resolution was for issue of foreign currency convertible bonds and unsecured/secured redeemable non-convertible debentures along with or without warrants.
- Future Retail Ltd: Future Retail’s board has approved a fundraising plan to raise up to $500mn through dollar denominated bonds, the company said in a filing with stock exchanges on Saturday. The company said the board reconsidered various funding options for the acquisition of the retail infrastructure assets and found it more efficient to fund the same through the dollar denominated borrowings and accordingly, approved raising of long-term funds for the company.
- Adani Ports and Special Economic Zone Ltd (APSEZ), India’s largest private sector port operator, has agreed to buy a 75% stake in Krishnapatnam Port Co. Ltd (KPCL) at an enterprise value of Rs13,500cr, APSEZ said in a statement to the stock exchanges post market hours Friday. The purchase will accelerate Adani Ports’ plan to expand its cargo-handling capacity to 400mt by 2025. The acquisition will be funded via internal accruals and existing cash balance, the company said. The acquisition is subject to regulatory approvals and the transaction is expected to be completed within 120 days.
- Hindustan Unilever Ltd: HUL, which owns the brand Pureit, has won a pre-grant opposition against Tata Chemicals, which sells water purifiers under the brand Tata Swach. The patent office rejected Tata Chemicals’ application for an invention related to a water purifier based on the pre-grant opposition filed by HUL. In 2012, Tata Chemicals was successful at the Intellectual Property Appellate Board (IPAB) in revoking one of HUL’s patents related to water purifier.
- Birlasoft Ltd: IT firm Birlasoft has announced that its chief financial officer Rajeev Gupta has stepped down from his position. In a BSE filing on post market hours Friday, the company said that Gupta tendered his resignation on 3rd Jan, 2020 and will be relieved of his duties at the end of March. The reason behind his resignation was not disclosed. Birlasoft further added that the company is in the process of appointing a new Chief Financial Officer and the same will be communicated to the regulators in due course.
- Hotel Leelaventure Ltd: Hotel Leelaventure Ltd on Friday said its name has been changed to HLV Ltd. The change of name of the company will come into effect from 8 January, 2020, it said. Earlier on October 22, 2019, Hotel Leelaventure's board had approved the proposed change in name of the company to 'HLV Ltd' or some other suitable name, if it was not available. As part of the Brookfield transaction, the word "Leela" would not be a part of the company's name, it had said in an exchange filing. The Mumbai-based hotel chain had announced in October last year that it had sold its hotel properties and operations to Canada-based Brookfield Asset Management Inc for Rs3,950cr.
- Suzlon Energy Ltd: The lenders of Suzlon Energy have finalised a resolution plan. Media reports suggest that barring one bank, all lenders are ready to convert more than 50% of the total debt into new debt. They hope to conclude the process by the month end, which is also the deadline for the resolution. The remaining will be haircut taken by the lenders or claimed as unsustainable debt. State Bank of India, Punjab National Bank (PNB), Union Bank and Bank of Baroda are major lenders to the company.
- Ashoka Buildcon Ltd: Ashoka Buildcon’s subsidiary, Ashoka Kandi Ramsanpalle Road, has executed a concession agreement with National Highways Authority of India (NHAI) on 3rd Jan 2020, for a road project in Telangana, the company informed the stock exchanges on Saturday. The project involves four laning 39.98 km of National Highway (NH)-161 in Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The accepted bid project cost at Rs1000cr.
US stock markets tumbled to end lower on Friday after US confirmed that an airstrike killed top Iranian commander Qassem Soleimani in Baghdad. The Dow Jones Industrial Average (DJIA) closed 233.92 points lower, or 0.6% at 28,634.88 and posted its biggest one-day loss since early December. The S&P 500 also had its worst day in a month, sliding 0.7% to 3,234.85. The Nasdaq Composite dropped 0.8% to 9,020.77.
The US announced late Thursday that it had killed Iran’s top commander, Gen. Qasem Soleimani, in Baghdad in an airstrike. Soleimani had been a key figure in Iranian politics, and his death has raised concerns over a potential retaliation from the Iranian forces. Iranian Foreign Minister Mohammad Javad Zarif warned on Friday that Iran would retaliate against the U.S. for its actions. Fears that the Baghdad strike would escalate conflict in the Middle East pushed investors to take a step back from equities.