India has resumed air operations partially from Monday, which signals a move towards some normalcy after a stringent lockdown for two months. However , the Reserve Bank of India’s move to extend the EMI moratorium till August 31, 2020 may prove to be costly for bank margins, which could affect market sentiment this week. Investors will also focus on the consistent spike in Coronavirus cases in India, which is yet to slowdown. Additionally, investors will also focus on the escalating trade tensions between United States and China. Markets were shut on Monday on the occasion of Ramzan-Id. Let us look at the stocks that will be in focus as markets open on Tuesday:
- ITC: The tobacco-to-hotels conglomerate said it is set to acquire Kolkata-based spice maker Sunrise Foods Pvt. Ltd (SFPL). In a statement to the stock markets on Sunday, ITC said that it has acquired 100% equity share of SPFL, a company primarily engaged in the business of spices under the brand “Sunrise” for an undisclosed amount. The move will help ITC expand its FMCG business, which at present spans packaged foods to personal care products.
- Vedanta: The Anil-Agarwal led company has begun the process to seek shareholder nod for delisting the company. In a filing to the stock exchanges Monday, Vedanta said it has issued a notice seeking shareholder approval for delisting through a postal ballot. Shareholders will get to cast their votes between 26th May and 24th June.
- Bharti Airtel: The parent company of Bharti Telecom, plans to raise $1 billion (around Rs7,600cr) through equity sale to become debt free. Media reports suggested that the promoter firm plans to offload 2.75% stake in the telecom operator at floor price of Rs 558/share, a discount of 6% at Friday's closing price of Rs593.2 apiece, through block deal. The $1 billion fund raise will make the promoter of Bharti Airtel debt free.
- Housing Development Finance: The mortgage lender reported a 30% yoy growth in its consolidated net profit at Rs 2,826cr for the financial year ended March 31,2020. Consolidated revenue from operations rose by 10.25% to Rs 45,253cr for FY20 as compared to Rs41,045cr in the previous fiscal. As at March 31,2020, the loan book stood at Rs4,50,903cr as against Rs4,06,607cr in the previous year, registering a growth of 11%.
- Reliance Industries: The company has launched an online grocery portal JioMart. JioMart will deliver groceries in more than 200 towns across the country. Customers can now log on to the newly-launched Reliance Industries' e-commerce portal, jiomart.com, to buy groceries, fruits, vegetables and other daily-need stuff.
- Kotak Mahindra Bank: Private sector lender Kotak Mahindra Bank on Monday reduced interest rates for savings bank accounts following the rate cut by Reserve Bank of India last week. The interest rate on savings account for balance up to Rs1 lakh has been lowered by 25 basis points to 3.5%. For balance above Rs1 lakh, the interest rate has been cut by 50 basis points to 4%. The new interest rates will be effective from Monday.
- Avenue Supermarkets: The parent of retail chain Demart, has registered a profit of Rs1,300.98cr for the full financial year ended March 31, 2020, up 44.15% from Rs902.46cr in the previous year. Revenue from operations in FY20 was Rs24,870.20cr, up 24.32% as against Rs20,004.52cr in FY19.
- Maruti Suzuki: An employee at Maruti Suzuki's Manesar plant has tested positive for COVID-19. The company is also looking at "a possibility of a second case" of infection at the facility but has ruled out any impact on the business part due to the situation. Maruti Suzuki had re-opened the Manesar facility earlier this month after around 50 days of closure due to coronavirus-led lockdown.
- Tata Motors: Jaguar Land Rover is seeking a government aid package to weather a collapse in car sales brought on by the pandemic. Media reports have suggested that the Tata group's luxury car unit is in talks to borrow more than 1 billion pounds ($1.2 bn) through the UK’s emergency coronavirus lending program. The full amount is still being negotiated and no decisions have been made. Group owner Tata Motors Ltd. may be required to back part of the UK government loan to secure the funding.
- Cipla: India’s drug regulator has approved applications of Cipla and Hetero Labs to manufacture and sell remdesivir, while waiving the requirement for undertaking local clinical trials. Media reports suggested that the drugmakers will be required to conduct Phase-IV trials (post treatment) in India to help identify any unforeseen side effects on patients.
U.S. stocks ended mixed Friday amid rising trade tensions between the United States and China. The Dow Jones Industrial Average fell 8.96 points, or less than 0.1%, to end at 24,465.16, while the S&P 500 index closed 6.94 points higher, or 0.2%, at 2,955.45. The Nasdaq Composite traded 0.4% higher to finish the week at 9,324.59.
Stock investors have been worried about US-China relations, which have deteriorated in recent weeks, blunting overall risk appetite. Given the uncertainty created by the coronavirus pandemic, China dropped its GDP target for the first time since adopting the practice in 1994, but of more concern officials suggested the government is preparing to impose a national-security law on Hong Kong in response to last year’s pro-democracy protests. The US Congress was moving forward with a bill that could prevent Chinese companies from listing on U.S. exchanges. The bill would require Chinese companies to establish they are not owned or controlled by a foreign government and to submit to audits by the U.S. Public Company Accounting Oversight Board.