Top 10 trending Stock Market news you must know
The Union Budget 2020 will continue to be on top of investors' minds as we head into the market session this week. Focus will also be on the RBI monetary policy outcome, and December quarter earnings which will be released this week. Updates on the coronavirus outbreak will be watched closely, with special focus on companies that have exposure to China. According to media reports, the death toll from China's coronavirus has jumped to 304 with the number of cases climbing to 14,380. Let’s look at budget & company news you should know before markets open on Monday:
Budget 2020 Updates
- Finance Minister Nirmala Sitharaman said that there is no intention to tax global income of NRIs and only income generated in India will be taxed. Following the Budget announcement on Saturday, there was confusion about the tax liability of Non-Resident Indians (NRIs) on their global income. In order to avoid any misinterpretation, the FM clarified that in case of an Indian citizen who becomes deemed resident of India under the proposed provision, income earned outside India by him shall not be taxed in India unless it is derived from an Indian business or profession.
- Life Insurance Corporation (LIC) may be flouted in the second half of the next financial year, Finance Secretary Rajiv Kumar said on Sunday. There are a number of processes which have to be followed and some legislative changes would also be required for the listing of LIC, Kumar said. FM Sitharaman while presenting the Budget 2020-21 on Saturday had announced stake sale in LIC through an initial public offer in the next fiscal.
- Amazon India and Flipkart are studying the Budget proposal on levy of one per cent TDS, and may reach out to the government for clarifications. The government on Saturday proposed a new levy of 1% TDS (tax deducted at source) on e-commerce transactions, a move that could increase burden on sellers on such platforms. The amendments will take effect from 1 April 2020. The documents said the e-commerce operator - an entity owning, operating or managing the digital platform - will have to deduct 1% TDS on the gross amount of sales or service or both.
- ONGC, IOC and other oil PSUs will invest over Rs98,521cr in the coming fiscal starting April 1 in exploring for oil and gas, refineries, petrochemicals and laying pipelines to meet India’s energy needs. The investment proposed in 2020-21 is almost 4% higher than Rs94,974 cr spending by the state-owned oil firms in the current fiscal year that ends on March 31, according to Budget 2020-21 documents.
- Crisil Ratings in a report on Saturday said the measures announced to trigger growth in the Union Budget 2020-21, including the widening of the fiscal deficit target, would not result in major impact for the slowing economy in the short-term. The budget on Saturday set the fiscal deficit target for financial year 2020-21 at 3.5%, at higher than the previous target of 3.0%. The report noted that the additional fiscal space is to be funded by aggressive disinvestment, asset monetisation and telecom revenue targets, optimistic tax-buoyancy assumptions and some tightening in overall expenditure, adding that the space created is being used to fund capital expenditure (capex) and rural sector spending to support consumption.
Other important updates
- Maruti Suzuki Ltd: The country's largest carmaker Maruti Suzuki India on Saturday reported a 1.6% increase in sales at 1,54,123 units in January. The company had sold 1,51,721 units in the same period last year, the carmaker said in a statement. Domestic sales increased by 1.7% at 1,44,499 units last month, as against 1,42,150 units in January 2018, the statement added.
- Cochin Shipyard Ltd: Cochin Shipyard Limited (CSL) has taken 100% stake in an SPV which it formed along with Hooghly Dock and Port Engineers Limited for modernization and renovation of the two dry docks on western bank of the Hooghly river, an official said. The special purpose vehicle, Hooghly Cochin Shipyard Ltd (HCSL), was set up to bring new investors to revive the two ailing dry docks in Nazirgunj and Salkia, both in West Bengal's Howrah district. The docks were under Hooghly Dock and Port Engineers. CSL held 74% stake in the SPV while HDPE has 26% share. With this acquisition of shares, HCSL has become a wholly-owned subsidiary of CSL with a paid-up share capital of Rs 22 cr.
- Hero Motocorp Ltd: Hero MotoCorp said its total sales in January declined by 13.9% to 5,01,622 units. The company had sold 5,82,660 units in the year-ago period, the two-wheeler maker said in a statement. The company said its entire scooter portfolio has been upgraded to comply with BS-VI emission norms, and it has stopped the production of BSIV scooter models.
- Mahindra & Mahindra Ltd: Mahindra and Mahindra (M&M) on Saturday reported a 4% increase in tractor sales at 23,116 units in January. The company had sold 22,212 tractors in the same month last year, M&M Said in a statement. Domestic sales increased 7% to 22,329 units in January as compared with 20,948 units of tractor sold in the same month of 2019, the statement added. However, exports declined 38% to 787 units in the previous month as compared with 1,264 units in January 2019, M&M said.
- Tata Motors Ltd: Tata Motors said it sold a total of 47,862 vehicles in January compared to 58,185 units sold during the same period last year. In the domestic market, the company managed to sell a total of 45,242 units here as compared to 54,915 unit sales during the month of January 2019. Total MHCVs sales in January including MHCV Truck, Buses and International Business stood at 9,706 units compared to 14,256 units last year. The total passenger vehicle sales by the company stood at 13,894 units last month compared to 17,826 units sold during the same period last year.
- Earnings this week: Titan Company Ltd, Bharti Airtel Ltd, Cipla Ltd, Lupin Ltd, Sun Pharmaceuticals Ltd, Mahindra & Mahindra Ltd, Borosil Glass, Tata Chemicals, Ujjivan Financial Services, IG Petrochemicals, HUDCO, Galaxy Surfactants, Dr Lal Pathlabs, Umang Dairies, Sutlej Textiles, Sharda Motors among others, will release their quarterly results this week.
Let us look at the developments which took place on the global front:
The US shares slumped after President Donald Trump late Friday declared a U.S. public health emergency in response to the coronavirus outbreak in China, ordering up to a 14-day quarantine for citizens returning from China’s Hubei province and denying entry to some foreigners. Economists fear the coronavirus could have a bigger impact than Severe Acute Respiratory Syndrome (SARS), which killed about 800 people between 2002 and 2003 at an estimated cost of $33 bn to the global economy.