Stock markets are expected to witness volatile trading sessions in the holiday-truncated week ahead. After the rally last week, which was driven by global cues, focus will be on domestic events, as coronavirus cases are close to topping the 10,000 mark despite strict lockdown measures. The country looks to be set for an extension to the lockdown, after a consensus emerged at a meeting between chief ministers and Prime Minister Narendra Modi on Saturday for continuing the curbs. The economic impact of the lockdown needs to assessed. Most investors are already anticipating a deep cut in the economic growth rate, especially after global economic think tank World Bank has pegged India's growth rate in the range of 1.5% and 4%. Markets will also be guided by the March inflation numbers and RBI minutes of meeting, which will be released later this week. Equity markets will be shut on Tuesday for 'Dr Babasaheb Ambedkar Jayanti'. Let us look at the stocks that will be in focus as markets open on Tuesday:
- Housing Development Finance Corporation: People’s Bank of China (PBOC) has hiked its stake in HDFC Ltd to over 1% last quarter. China's Central Bank held nearly 1.75 crore shares in HDFC in Q4 of last fiscal, data from BSE shows. PBOC already held 0.8% in the company as of March 2019, HDFC's Vice Chairman and CEO Keki Mistry said. It is compulsory for firms to disclose data for shareholders with over 1% stake at the end of every quarter. Other public shareholders who held substantial stake in the parent of HDFC Bank are Invesco Oppenheimer Developing Markets Fund (3.33% or 5.76cr shares), Government of Singapore (3.23% or 5.28cr shares) and Vanguard Total International Stock Index Fund (1.74% or 3.01cr shares).
- Essel group: Lenders have invoked pledged share of several Subhash Chandra-led Essel group entities, including Zee Media Corporation, Dish TV, Siti cable and Zee Learn. IDBI Trusteeship Services Limited (ITSL) and Vistra ITCL, who were acting on behalf of lenders, have invoked pledged shares. According to regulatory filings, ITSL has invoked 5.26% share of Zee Media Corporation Ltd (ZMCL) held by two promoter entities — ARM Infra & Utilities and 25 FPS Media. The invocation was done by ITSL acting in its capacity as share pledge trustee for the benefit of HDFC Ltd and Edelweiss Ltd, ITSL said in a filing.
- Dr Reddy’s Laboratories Ltd: The drugmaker’s active pharmaceutical ingredient (API) manufacturing plant-5 in Miryalaguda of Nalgonda District in Telangana has received an Establishment Inspection Report (EIR) from the U.S. Food and Drug Administration (USFDA). The USFDA had completed audit of the API manufacturing plant last month and issued a Form 483 with three observations. The EIR indicates closure of audit and classification of the facility is determined as voluntary action indicated (VAI), Dr Reddy’s said in a statement to the stock exchanges post market hours on Thursday.
- Cadila Healthcare Ltd: Zydus Cadila has received tentative approval from the USFDA to market Empagliflozin Tablets, in the strengths of 10 mg and 25 mg. The medication is used together with diet and exercise to improve blood sugar control in adults with Type 2 diabetes mellitus. It is also used to reduce the risk of cardiovascular death in adult patients with Type 2 diabetes mellitus and established cardiovascular disease, Cadila said in a statement to the stock exchanges Friday. The drug will be manufactured at the group's manufacturing facility at SEZ, Ahmedabad.
- Tech Mahindra Ltd: The software company of the Mahindra group said it has changed some of the terms of its stake-acquisition deals with Zen3 Infosolutions (America) Inc and Cerium Systems. In a statement to the stock exchanges on Friday, Tech Mahindra said the Zen3 Infosolutions transaction is now expected to be closed by April 15, and $35mn will be paid at closing with a deferred payment of $4 mn to be paid over two years. The balance USD 25 million will be paid over three years linked to financial performance, the statement added. The company, however, did not specify a reason for the modifications.
- Punjab National Bank: State-owned lender Punjab National Bank (PNB) will retain stake in two life insurance ventures after receiving an approval from the Insurance Regulatory and Development Authority of India (IRDAI). Following the merger of Oriental Bank of Commerce with PNB on April 1, 23% of stake of the former in Canara HSBC OBC Life Insurance stands transferred to the latter. PNB is already a promoter of PNB Metlife Insurance with the highest stake of 30% since 2012.
- Godavari Power & Ispat Ltd: Godawari Power & Ispat Ltd has resumed partial operations by commencing mining operations in Ari Dongri iron ore mines and also restarted manufacturing activities in 0.6 mn MTPA Iron Ore Pellet Plant situated at Siltara Industrial Area, Raipur from Friday , 10th April. The mining operations of our Boria Tibu Iron Ore Mines and manufacturing activities in all other divisions are still under shut down due to COVID-19 outbreak.
- Indigrid Ltd: The board of IndiGrid Trust has approved the acquisition of Gurgaon Palwal Transmission Limited (GPTL) from transmission firm Sterlite Power at a value of Rs1,080 cr and is planning to add solar energy projects going forward. This acquisition would increase the assets under management of IndiGrid by 10% to Rs13,300 cr and increase the company’s portfolio to ten power transmission projects with a total network of 25 power transmission lines and 7 substations.
- SEAMAC Ltd: SEAMEC announced that Oil & Natural Gas Corporation (ONGC) has awarded Charter Hire of Company's Vessel SEAMEC II for a long-term contract for a period of 5 years. As per the NOA, the Vessel is to be deployed within 150 days from the date of Notification of Award of 09 April 2020. The aggregate value of the contract is $127.71mn exclusive of GST.
- KSB Pumps Ltd: KSB has launched CHTRa, a heavy duty API pump handling petroleum, petro chemical and water transfer. The product was earlier manufactured in Germany. Now, only India will manufacture this product and supply worldwide as directed by KSB Germany license.
US stocks ended the holiday shortened week sharply higher Thursday, after the Federal Reserve made a surprise announcement that it would deploy $2.3 trn of funds through its lending programs to support the broader economy. The Dow Jones Industrial Average advanced 286 points, or 1.2%, to finish around 23,719. The S&P 500 was up 1.4% to end at 2,790. The Nasdaq Composite climbed 0.8% to finish around 8,154.
On Thursday, the Federal Reserve also announced details of its new Main Street Lending program and will provide $600 billion support for midsize businesses and $500 billion for states, counties and cities. This announcement by the Federal Reserve helped the markets in shrugging off the effects of deepening job losses in the US due to the coronavirus pandemic. Nearly 6.6 million Americans filed for unemployment in the week ending April 4, topping expectations for 6 million new filings. US markets were shut on Friday in observance of Good Friday.