The outlook for the week ahead depends a lot upon the COVID19 tally in India. The country has overtaken Spain and is now the fifth-worst nation to be impacted by the coronavirus pandemic. The coronavirus pandemic in India grew by the highest number yet again on Sunday when 9,971 fresh cases were detected in the last 24 hours taking the total number of patients in the country to 246,628. Globally, investors were buoyed after non-farm payroll in the US was better than expected, sparking a sharp rally in US stocks Let us look at the stocks that will be in focus as markets open on Monday:
1. Reliance Industries Ltd: Abu Dhabi Investment Authority (ADIA) has bought 1.16% stake sale in the company’s telecom arm Jio platforms for Rs5,683.50cr. The transaction gives Jio Platforms an equity valuation of Rs4.91tn and an enterprise value of Rs5.16 tn. This is the eighth such stake sale by the Mukesh Ambani led company in the past seven weeks.
2. Astrazeneca Pharma India Ltd: Market regulator SEBI has ‘censured, ‘the promoters of Astrazeneca Pharma India (AZPI) and Elliot Group for ‘unfair trade practices and professional misconduct,’ while attempting to delist the shares of the company in 2014. SEBI has not imposed any fine or punishment on the promoters. In 2014, when AZPI promoters decided to delist shares, the regulator found that AZPI and Elliott were acting in concert to influence the delisting in a manner that could be detrimental for retail shareholders.
3. Larsen & Toubro Ltd: Engineering conglomerate Larsen & Toubro (L&T) reported a 14% yoy drop in consolidated profit before tax at Rs4,249.7cr for the quarter ended 31st Mar2020. The company did not provide order inflow and revenue guidance for the current financial year because of Covid-19. SN Subrahmanyan, chief executive officer and managing director for L&T, said sales missed so far because of the Covid-19 disruption would be around Rs 15,000-17,000cr.
4. Divi’s Laboratories Ltd: Divi's Laboratories on Saturday reported a 32.96% rise in its consolidated net profit to Rs388.23cr for the quarter ended 31st Mar2020. Consolidated total income of the company stood at Rs1,466.44cr for the quarter under consideration. It was Rs 1,307.97cr for the same period year ago, the company said in a statement to the stock exchanges on Saturday.
5. Vedanta Ltd: The company reported consolidated net loss of Rs12,521 cr for the quarter ended 31st Mar2020 on the exceptional loss of Rs17,132cr, primarily due to impairment of assets in oil and gas, copper and iron ore business. The company had posted net profit of Rs2,615cr in the year-ago period. The company said its revenue for the fourth quarter was at Rs19,513cr, lower by 8% sequentially, primarily due to lower commodity prices further impacted by Covid-19.
6. Jyothy Labs Ltd: The company reported a 60.21% slump in its consolidated net profit at Rs26.59 cr in the March quarter, hit by COVID-induced disruptions. It had posted a net profit of Rs66.83cr in the January-March quarter of the last fiscal, Jyothy Labs said in a regulatory filing. Revenue from operations was down 23.83% to Rs393cr during the period under review as against Rs515.98cr in the corresponding period a year ago.
7. Infibeam Aveneues Ltd: The company reported a 61.3% fall in consolidated net profit to Rs29.24cr on 55.3% fall in total income to Rs159.09cr for the quarter ended 31st Mar2020. EBITDA margin rose to 36% in Q4FY20, the company said in a statement post market hours Friday. Additionally, the board of directors considered and approved acquisition of 100% shareholding in Cardpay Technologies Pvt Ltd.
8. Jindal Stainless Steel Ltd: The company reported a Rs153cr net profit in FY20 as compared to Rs139cr in the preceding fiscal. The revenue in financial year 2019-20 remained almost flat at Rs12,320cr, JSL said in an filing to the stock exchanges on Saturday. The sales volume in 2019-20 stood at 9,15,900 tonne, rising by 7%, while the stainless-steel production was at 9,73,995 tonne in the fiscal ended 31st Mar2020. In the quarter,JSL posted a standalone loss of Rs22cr. The company had reported a net profit of Rs32cr in the year-ago period.
9. Aditya Birla Capital Ltd: The company posted a 5.6% rise in consolidated net profit at Rs920cr in FY20 as against Rs871cr in FY19. The consolidated revenue recorded a 9% on year surge at Rs18,028cr in fiscal year 2019-20, the financer said in a statement to the stock exchanges post market hours Friday. AB capital posted a 44.4% drop in its consolidated net profit at Rs143.67cr in the fourth quarter of FY20 against Rs258.40cr in the same period last year.
10. Indian Overseas Bank: The state-owned lender has cut the marginal cost of funds-based lending rate (MCLR) by up to 0.30% across all tenors. The move is expected to bring down interest rates on loans for borrowers. The benchmark one-year MCLR has been lowered by 0.20% from 10th June. IOB slashed the interest rate on loans linked to MCLR by 30 basis points in overnight tenor and by 20 bps in one month to one-year tenors.
Let us look at the developments which took place on the global front
U.S. stock indexes ended mostly higher Friday sharply higher on Friday after the U.S. May jobs report showed a surprise jump in payrolls and a drop in the unemployment rate. The Dow Jones Industrial Average jumped 829.16 points, or 3.2%, to 27,110.98, while the S&P rose 81.58 points, or 2.6%, to 3,193.93. The Nasdaq Composite advanced 198.27 points, or 2.1%, to 9,814.08.
The U.S. May unemployment rate fell to 13.3%from 14.7%, though the Bureau of Labor Statistics said the rate would have been 3 points higher if households had answered their forms correctly. The loss of jobs in April was raised to 20.7mn from 20.5mn. Economists had been expecting significant job losses and a spike in the unemployment rate to near 20%.