Top 10 trending Stock Market news you must knowIn the truncated week ahead, investors will continue to monitor the impact caused by the deadly pneumonia like virus, Coronavirus, cases of which have risen in India in the past few days. On Sunday, 5 more people have tested positive for the virus, taking the total count in the country to 39. Focus will also remain on the unraveling of the Yes Bank fiasco, which caught investors off-guard last Friday. The concern is, that the crisis in Yes Bank should not ripple to the banking sector, which is already in a pretty fragile state right now. Globally, Saudi Arabia has started up an oil price war on Saturday, slashing the prices it sells crude into foreign markets by the most in at least 20 years. Though, this is a good deal for India, the probable fallout from this act across the global stage needs to be assessed. Let us look at the stocks that will be in focus as markets open on Monday:
- Yes Bank crisis: A Mumbai court has sent YES Bank founder Rana Kapoor to three-day custody of the Enforcement Directorate (ED) as part of the probe in a money laundering case against him. Kapoor was arrested under the provision of the Prevention of Money Laundering Act (PMLA) around 3 AM Sunday, as he was allegedly not cooperating in the probe, the agency said. The ED, in its report to the court, stated how a Rana Kapoor-led company inflated the value of a property worth Rs40cr to Rs735cr. The loan was taken from Dewan Housing Finance Corporation (DHFL). Apart from ED, the Central Bureau of Investigation (CBI) has registered a case against Dewan Housing Finance Limited (DHFL), Doit Urban Ventures (India) Limited, DHFL promoter Kapil Wadhawan and YES Bank founder Rana Kapoor for cheating and criminal conspiracy under various sections of the Indian Penal Code and Sections 7, 12, and 13 of the Prevention of Corruption Act.
- State Bank of India: India’s largest public sector bank, State Bank of India (SBI) on Saturday said it will be issued 245 cr shares for Rs10 each for Rs2,450cr in Yes Bank. These shares will translate into a 49% stake into the reconstructed bank. SBI shall not reduce its holding below 26% before completion of three years from the date of infusion of the capital, the country's largest lender said in a statement on Saturday. It further said that the new board of Yes Bank will have CEO and MD, non-executive chairman and non-executive directors.
- Dewan Housing Finance Ltd: The administrator to Dewan Housing Finance Corporation Ltd (DHFL) will submit the final list of prospective bidders for the bankrupt finance company at a meeting of the committee of creditors on 11 March, media reports suggested citing sources it did not name.
- Indiabulls Housing Finance Ltd: Indiabulls Housing Finance on Sunday said Yes Bank owes Rs662cr in the form of bonds to the company and it has no term loans outstanding from the lender. The investments in AT-1 bonds of Yes Bank were made in 2017, as part of its treasury management of over Rs20,000cr of cash and when the bank was worth over USD 10 billion in value, it said in a statement to the stock exchanges. Sameer Gehlaut, promoter of Indiabulls Housing Finance, or any of his companies or any of his family member companies have no loans outstanding from Yes Bank, the non-banking finance company added in the statement.
- IndusInd Bank: IndusInd Bank has deferred its board meeting scheduled for Monday to consider raising funds. The crisis at Yes Bank, which has affected sentiment across the banking sector has led to the deferment of the fund raising. A meeting of the Board of Directors of the bank was proposed to be held on Monday to consider and approve, the borrowing and raising of funds in Indian and/or foreign currency by issuance of debt securities in the nature of additional Tier I capital (AT1) and/or Tier 2 Capital of the bank, the bank said.
- Steel Authority of India Ltd: State-owned Steel Authority of India Ltd (SAIL) is in talks with the Indian Railways for an order to supply about 15.5 lakh tonnes of rail in the next financial year, media reports suggested citing a company official. SAIL, under the steel ministry, is the country's largest steel-making company and as per an agreement, it supplies rails to Indian Railways. The Indian Railways had placed an order with SAIL for supply of 13.5 lakh tonne rails in the current financial year.
- Bharat Petroleum Corporation Ltd: The government on Saturday invited bids for the sale of Bharat Petroleum Corp Ltd (BPCL) as a part of its biggest ever privatisation drive. Ministry of Petroleum and Natural Gas (MoPNG), which holds around 1.15 crore equity shares, nearly 52.98%of total stake in the country's second-biggest oil refiner, has proposed disinvestment of its entire stake. BPCL's privatisation drive is an essential part of Finance Minister Nirmala Sitharaman's disinvestment target of Rs2.1 lakh cr.
- Natco Pharma Ltd: The formulation facility of Natco Pharma in Kothur village, near Hyderabad, has received a single observation at the end of a pre-approval inspection from the United States Food and Drug Administration (USFDA). The facility received a single observation related to equipment qualification of a co-mill used in the process that had operating speed slightly outside the qualification range. In a statement to the stock exchanges post market hours Friday, the company said it believes that this is a minor observation and can be addressed within a short period of time.
- Hindustan Aeronautics Ltd: State-run aerospace leader Hindustan Aeronautics Ltd (HAL) is looking at setting up logistics bases in Malaysia, Vietnam, Indonesia and Sri Lanka as part of initiatives to woo the countries to buy India's light combat aircraft Tejas and military helicopters. Chairman and Managing Director of HAL R Madhavan said the HAL is considering to build logistics bases in the four countries as they use a number of Russian-origin military aircraft and choppers whose serviceability is "very poor". He said the HAL is now seriously focusing on boosting exports in sync with the government's priority and identified South East Asia, West Asia and North Africa to sell key platforms like Tejas, attack helicopter Rudra and advanced light helicopter Dhruv.
- Power Finance Corp Ltd: Power Finance Corp. Ltd (PFC), the largest power sector lender in India, is interested in acquiring Yes Bank Ltd’s green energy loans if they turn out to be good assets, chairman and managing director Rajeev Sharma said. State-run PFC’s purchase of a controlling stake in government led peer REC Ltd in March created an $80 bn lending giant by assets. PFC and REC have reported assets of $43 bn and $37 bn, respectively.
Let us look at the developments which took place on the global front