Top 10 trending Stock Market news you must knowAs the market opens this week in the aftermath of the stupendous recovery witnessed in the last session on Friday, focus will continue to be on the spread of the deadly pneumonia like Virus, Coronavirus , cases of which have escalated in India. As per the latest government figures, he number of novel coronavirus cases in the country rose to 107 on Sunday, including the two persons who died in Delhi and Karnataka. With the World Health Organisation (WHO) declaring COVID-19 a pandemic, a Health Ministry official said over 4,000 people who had come in contact with the 93 positive cases have been identified through contact tracing and were being tracked while 42,000 people across the country are under community surveillance. Globally, over 1.3 lakh people have been infected, with over 5,000 fatalities — majority of them in China. On March 13, US President Donald Trump declared coronavirus a US national emergency. Let us look at the stocks that will be in focus as markets open on Monday:
- Yes Bank crisis
- Q3 results: Beleaguered private sector lender Yes Bank posted a record loss of Rs18,564cr for the quarter ended December on the back of a steep rise in bad loans. In a filing to the stock exchanges, Yes Bank said its deposit base has shriveled by almost Rs72,000cr between October 1, 2019 to March 14, 2019, and gross bad loans spiked to Rs40,709 cr as of Q3 from Rs17,134 cr in the previous quarter. The bank also disclosed that it has received investment commitments of Rs10,000 cr from State Bank of India and seven other private sector banks. Its Gross NPA ratio stood at 18.87% of the bank’s total loan book versus 7.39% in the previous quarter.
- Reconstruction scheme: The finance ministry has notified a ‘reconstruction scheme’ for Yes Bank, paving the way for removal of curbs on withdrawal and a moratorium on the lender by March 18, roughly two weeks before the April 3 deadline. Current administrator Prashant Kumar has been appointed the new chief executive of the lender. Yes Bank Reconstruction Scheme 2020, which got the Cabinet approval on Friday and came into force the same day, requires companies other than SBI to hold on to 75% of their investment for at least three years. SBI, too, won’t be allowed to dilute its holding to below 26% for three years. The three-year lock-in for 75% of holding will apply to existing as well as new investors. However, retail investors with fewer than 100 shares are exempted from this lock-in stipulation. But this means even those holding just 100 shares (or a few more) will have to comply with the rule.
- c. Additional investment: ICICI Bank, Housing Development Finance Corp Ltd, Axis Bank, Kotak Mahindra Bank and Bandhan Bank will also join the SBI-led consortium and invest in Yes Bank. HDFC will invest Rs1,000cr in Yes Bank through the purchase of 100 crore shares, Axis Bank will invest Rs600cr by buying 60 crore shares, Kotak Mahindra Bank Rs500 cr through 50 crore shares and Bandhan Bank another Rs300cr through the purchase of 30 crore shares.
- Wipro Ltd: The Bengaluru based IT company announced its global strategic partnership with PLEXIS Healthcare Systems in a filing to the stock exchanges post market hours Friday. This partnership will enable a streamlined, efficient, accurate and integrated plan administration solution to support healthcare payers and plan sponsors worldwide. The aim is to offer secure, compliant, high-value, end-to-end “digital first” plan administration solutions at a cost-effective price point along with enhanced customer experience. The partnership will initially focus on supporting Medicare and Managed Medicaid programs, but will expand to support Accountable Care Act and commercial lines of business.
- SBI Cards and Payments IPO: SBI Cards and Payments (SBI Card) is scheduled to be listed on the stock exchanges on Monday. The country's second-largest credit card issuer on March 6 fixed the final issue price for its initial public offering at Rs755 per share. The issue closed on March 5. The company raised Rs10,340cr through the issue which was open for subscription between March 2-March 5, 2020.
- Transformers and Rectifiers Ltd (TRIL): TRIL has received an order worth Rs130cr from Power Grid Corporation of India Ltd, the company said in a filing to the stock exchanges post market hours Friday. With this order, the company’s order book as on date stands at around Rs1,175cr.
- Torrent Power Ltd: The Uttar Pradesh government has ordered financial scrutiny of two private sector companies, Torrent Power and Noida Power, which hold power distribution franchisees in Agra and Noida respectively. Earlier, UP Rajya Vidyut Upbhogta Parishad had written to state energy minister Shrikant Sharma demanding a high-level probe in the light of the various financial and consumer services mandates set in the respective power distribution agreements signed with these companies.
- RITES Ltd: RITES has secured a consulting work award with fee income of Rs60 crore from the Government of Kerala for conducting independent quality audit for Kerala Infrastructure Investment Fund Board projects, the company said in a filing to the stock exchanges post market hours on Friday. The period of execution is likely to span over 21 months.
- Onward Technologies Ltd: Onward Technologies has announced that the immovable property mortgaged against the credit facility availed from bank has been released back to the company. Onward Tech made the announcement in a filing to the stock exchanges on Friday. This property is located at eSpace IT Park in Viman Nagar, Pune, Maharashtra. The existing bank credit facility is with the company’s new banking partner HSBC in Mumbai, it said.
- Navneet Education Ltd: In a filing to the stock exchanges post market hours Friday, the company issued and allotted 600 units of Commercial Paper (CP) of Rs.5,00,000/- each, aggregating to Rs.30 crore at a rate of 5.70% p.a, to JM Financial mutual fund.
- Sunteck Realty Ltd: In a statement to the stock exchanges after-market hours on Friday, Sunteck realty said that the company has issued Commercial Paper of Rs25cr. The commercial papers are proposed to be listed on the BSE. The Commercial Paper carrying interest of 7.95% will mature on 10 July 2020. Credit Rating obtained for Commercial Paper is IND A1+ by India Ratings & Research.
- Pearl Global Ltd: Pearl Global Industries’ subsidiary at Bangladesh, Prudent Fashions has set up a factory at Dhaka for woven soft separates /knits/ woven bottoms/ jackets and blouse. Commercial production is likely to commence from the first quarter of FY2020-21. The current production capacity with 10 machine lines will be around two lakh pieces per month. The second phase of expansion to 25 machine lines is likely to be completed within six months with monthly capacity of 5.50 lakh pieces.
Let us look at the developments which took place on the global front
U.S. stocks booked their biggest daily gains since Oct. 28, 2008, after President Trump declared a national emergency to combat the coronavirus epidemic. President Trump declared a national emergency to combat the coronavirus epidemic which unlocks $50 billion of funds to help contain the COVID-19 pandemic. Trump also said interest payments will be waived on the government’s share of the near $1.6 trillion pile of student debt and quantities of strategic crude oil reserves will be bought at recently, sharply lower prices.