A disparate set of events are going to be triggers for the market in this week. With heavyweights like SBI, HDFC and Maruti Suzuki set to report their third quarter earnings and the FY20-21 Budget session on Saturday, markets are likely to be tumultuous this week. Globally, the Fed’s interest rate decision and the release of US Q4 GDP data will be watched keenly by investors. Market participants are also likely to keep a wary eye on the spread of the deadly coronavirus in China and other countries. Let’s look at company news you should know before markets open on Monday:
- ICICI Bank Q3FY20: Private sector lender ICICI Bank posted over three-fold increase in profit during the quarter ended December 31, 2019 as provisions halved. The bank reported a standalone net profit of Rs4,146.46 cr during the quarter under review, as opposed to Rs1,604.91 cr registered in the year-ago period. Net interest income increased by 24% on annual basis to Rs8,545 cr in Q3 FY20 from Rs6,875cr in Q3FY19, said ICICI Bank in a filing to the stock exchanges. Asset quality improved during the quarter as net non-performing assets (NPAs) decreased by 36% to Rs10,389 cr in Q3 FY20 from Rs16,252 cr in Q3 FY19. The net NPA ratio decreased to 1.49% at December 31, 2019 from 2.58% at December 31, 2018.
- Bank of Baroda: State-owned lender Bank of Baroda reported a loss of Rs1,407cr in the December quarter of the current fiscal due to higher provisions for bad loans. The bank had registered a net profit of Rs436cr in the corresponding quarter last year. Bank of Baroda's total provisions and contingencies increased 54% on annual basis to Rs6,365cr in Q3FY20, as opposed to Rs4,133cr in Q3FY19. Provisions for non-performing assets during the quarter under review stood at Rs6,621cr, 49.97% higher than Rs4,505cr in the same period last fiscal.
- Vodafone Idea Ltd: India Ratings has downgraded Vodafone Idea’s Rs3,500cr debt after the Supreme Court struck down the company’s review petition in the verdict on the adjusted gross revenue case, the telecom operator said in an exchange filing late on Friday. The rating has been downgraded from BBB to BBB minus. The downgrade is on account of “crystallisation of adjusted gross revenue related liabilities" post the dismissal of the review petition by the Supreme Court, Vodafone Idea said, adding that the apex court has agreed to hear the telco’s modification plea next week which seeks more time to pay these dues.
- Force Motors Ltd: Force Motors set aside Rs600cr in fresh investment to develop two new models over the next two years. The proposed new models in the shared mobility space will come out from its soon-to-be-launched premium platform, code-named T1N, an export-focused premium van developed with an investment of Rs1,000cr and is getting ready for commercial production by the end of the year. On the rationale for launching a premium commuter van, Firodia said they want to use this van to be the springboard to become a global automotive company.
- Strides Pharma Science Ltd: The US Food and Drug Administration (FDA) has completed inspection of its Alathur facility in Tamil Nadu with zero observations, the Bengaluru based pharma company said post market hours Friday. This is the second consecutive Zero 483 inspection for the site. The current inspection was a pre-approval inspection for sustained release class of drugs which is a new dosage format for the facility and is one of the focus areas for the company in the global market, the company said. The facility recently completed a significant capacity expansion which will support the growth momentum for the US business, it added.
- Siemens India Ltd: The parent of Siemens India has signed an agreement to acquire New Delhi-based C&S Electric Ltd, a leading provider of electrical and electronic equipment, for Rs2,100cr. Under the agreement, the German giant will acquire approximately 99%of the equity share capital of C&S Electric Ltd for around Rs2,100cr ( Euro 267 mn). C&S Electric has more than 50 years of experience in India and will continue to operate under its own brand name.
- Cipla Ltd: The US Food and Drug Administration has completed inspection of its Bengaluru-based manufacturing unit with four observations, Cipla said in a statement to the stock exchanges. The company said it is committed to addressing these observations and will submit its response to the USFDA within the stipulated time. The inspection of the API manufacturing facility was carried out between January 20 and 24.
- DCB Bank: Private sector lender DCB Bank reported an increase of 12.31% in its net profit at Rs96.70 cr for the third quarter ended December 2019. In a statement to the stock exchanges on Saturday, the lender said that total income was up 13.66% at Rs 990.89cr during the quarter under review as against Rs871.78cr in the corresponding period a year ago. Net interest income increased 9.86% to Rs323cr as against Rs294cr for the same period last fiscal.
- CG Power Ltd: Beleaguered CG Power and Industrial Solutions has sought the Centre's approval to remove K K Mankeshwar & Co (KKM) as one of its joint auditors due to certain alleged "unexplained" payments made to the auditor from the company. The company in a statement the stock exchanges Friday post market hours said that its Board of Directors has determined that KKM cannot be considered to be independent. The filing further said that KKM in its response confirmed the association of one of its partners with the identified entities during the year 2016-17 which was not disclosed at the time to appointment of KKM as statutory auditors for the financial year 2017-18.
- Earnings this week: Dr Reddy's Labs, State Bank of India, HDFC Ltd, HUL Ltd, Maruti Suzuki Ltd, Bajaj Auto Ltd CCL Products, HCL Infosystems, InterGlobe Aviation, Mahindra Life, Navin Fluorine, Shanti Gears, Torrent Pharma, V2 Retail and Wockhardt, among others, will release their quarterly results this week.
Let us look at the developments which took place on the global front:
All three major U.S. stock averages extended their losses after the Centers for Disease Control and Prevention confirmed the second case of the virus on U.S. soil, this time in Chicago. As global concern about the Wuhan coronavirus continues to escalate, financial markets are having to consider the real possibility this develops into a world-wide emergency.