Investors in India and across the globe are anticipating a looming recession as the widespread coronavirus pandemic has slowed the economic engines worldwide. Day after day, the cases of people infected with the deadly respiratory illness has been on the rise. As per the latest numbers, the number of COVID-19 cases in India have risen sharply to 4,281 with the death toll crossing the 100-mark to 111. As the curve remains steep instead of flattening, investors are jittery and are bracing to face the impact of the pandemic on the economy. Markets were shut on Monday for the local festival of Mahavir Jayanti. Let us look at the stocks that will be in focus as markets open on Tuesday.
- Kotak Mahindra Bank: The Uday Kotak led bank has reported a rise in their deposit portfolios during January-March period. The bank has cut savings account rates for high value customers, Kotak Mahindra said in a statement to the stock exchanges. The private lender reported a 19.6% growth in total deposits, excluding Certificate of Deposits (CPs), at Rs 2.58 lakh cr during the March quarter of this fiscal, compared to Rs 2.16 lakh cr in the same quarter last year. On the quarter-on-quarter basis, the aggregate deposits increased by 11.7% from Rs 2.31 lakh cr as of 31 December 2019. Kotak Mahindra Bank's CASA ratio, the ratio of deposits in current and saving accounts to total deposits, climbed to 56.2% in Q4FY20, as against 52.5% as of Q4FY19 and 53.7% as of Q3FY20.
- Godrej Properties Ltd: The Mumbai based real estate company said it sold over 3,000 homes in the fourth quarter, the highest ever in terms of numbers and value during the period. In a filing to the stock exchanges on Monday, the Pirojshah Godrej led realtor said that in the last quarter, the firm received bookings worth Rs2,380cr representing a quarterly growth of 100% and YoY growth of 10%.Godrej Properties launched 17 new projects in FY20 out of which six were started in Q4. Announcing its Q4 and FY20 operational update, the firm said residential sales grew to Rs 5,840 cr with sales of over 7,300 housing units in last fiscal.
- IndusInd Bank: IndusInd Bank and its promoter the Hinduja Group have initiated talks with sovereign wealth funds and pension funds, including Canada’s CPPIB and Singapore’s GIC Pte Ltd, to raise as much as $500mn, media reports suggested citing sources they did not name. This is aimed at bolstering investor confidence amid deterioration of the private lender’s balance sheet and flight of deposits after the Yes Bank fiasco. Investment bank Morgan Stanley has been hired to help with the fundraising efforts. Promoter stake at IndusInd Bank stands at 14.68% as against the maximum regulatory limit of 15%. Promoters have shown interest in bringing additional capital into the bank, but any such effort will require the approval of the central bank. Also, India Ratings and Research (Ind-Ra) has revised IndusInd Bank Ltd's (IBL's) outlook to negative from stable while affirming the long-term issuer rating at AA-plus.
- HDFC Bank: HDFC Bank has reported a 24.2% increase in aggregate deposits during the January-March period at Rs 11.46 lakh cr, compared to Rs 9.23 lakh cr in the same quarter last year. On a quarterly basis, the aggregate deposits rose by 7.41% from Rs 10.67 lakh cr as of 31 December 2019, the Mumbai based lender said in a statement to the stock exchanges. The private lender's CASA ratio, the ratio of deposits in current and saving accounts to total deposits, stood at around 42% in Q4FY20, as against 42.4% as of Q4FY19 and 39.5% as of Q3FY20.
- Axis Bank: In a statement to the stock exchanges post market hours Friday, Axis Bank announced that Moody's has revised the outlook for the Bank from “Stable” to “Negative”. Further, it has downgraded the counterparty risk assessment of the Bank to Baa3(cr)/P-3(cr) from Baa2(cr)/ P-2(cr), and the local currency counterparty risk rating of the Bank to Baa3/p-3 from Baa2/P-2.
- Force Motors Ltd: The automobile company said its production slipped 55.16% to 1,198 units in March 2020 as against 2,672 units in March 2019. In a statement to the stock exchanges on Saturday, Force Motors said its domestic sales tumbled 80.87% to 772 units during March 2020 as against 4,036 units in March 2019.Exports rose 29.62% to 105 units in March 2020 from 81 units in March 2019. On a month-on-month (M-o-M) basis, Force Motors production fell 35.72% to 1,198 units in March 2020 as against 1,864 units in February 2020. Domestic sales slumped 61.40% to 772 units during March 2020 from 2,000 units in February 2020.
- Lupin Ltd: The drugmaker said it has launched generic Mycophenolic acid delayed-release tablets, which is used to prevent organ rejection in patients receiving kidney transplants in the US market. In a statement to the stock exchanges, Lupin said it has launched the tablets in the strengths of 180 mg and 360 mg. Company's alliance partner Concord Biotech Ltd had received an approval from the United States Food and Drug Administration (USFDA) earlier for the product. The tablets are generic version of Novartis Pharmaceuticals Corporation's Myfortic delayed-release tablets, 180 mg and 360 mg.
- Wockhardt Ltd: Brihanmumbai Municipal Corporation (BMC) has declared Wockhardt Hospital a containment zone after at least 26 of the hospital’s medical staff tested positive for the novel coronavirus Covid-19. The infection reportedly spread through a 70-year-old patient, who was admitted for an angioplasty on 27 March but passed away. A ‘containment zone’ is an area where entry and exit is completely restricted to prevent the disease from spreading to other areas. All those inside the hospital premises will now have to continue to stay there until they test negative.
- ICICI Bank: ICICI Bank announced that Moody's has affirmed the deposit ratings of the Bank at Baa3. Moody's has lowered the counterparty risk assessment from Baa2(cr)/P-2(cr) to Baa3(cr)/P-3(cr) and the local currency counterparty risk rating from Baa2/P-2 to Baa3/P-3. The outlook on the Bank's rating was revised from stable to negative.
- Suzlon Energy Ltd: Suzlon Energy received approval from bondholders for a resolution plan for outstanding securities of USD 172 mn. In a regulatory statement on Monday, the company said that it has received approval from its bondholders for resolution of the outstanding USD 172mn bonds. The company has given few options to bondholders under the proposed resolution plan seeking haircut. The total size of the bond issue was USD 546.91mn, of which the company has partly repaid the bondholders earlier.
U.S. stocks traded at session highs Monday, as investors focused on signs that the rapid spread of COVID-19 may be stabilizing in the New York, which is now the center of the pandemic. The latest data showed that the city saw its first decline in fatalities stemming from the virus, but analysts warned it’s unclear if this would represent a lasting trend.
The Dow Jones Industrial Average rose 1,170.01 points, or 5.56%, to 22,222.54. The S&P 500 climbed 135.98 points, or 5.46%, to around 2,624.63. The Nasdaq Composite surged 400.57 points, or 5.43%, to 7,773.66.
New York Gov. Andrew Cuomo on Monday was hopeful that the state may be nearing an apex in terms of coronavirus cases, but also warned against the “real danger of getting overconfident too quickly,” during his daily press briefing. A falling number of deaths in Spain and Italy also buoyed investors who have seen Europe as a proxy of how long it might take for the disease’s spread to abate in the U.S.