This week, the rising Covid19 cases will continue to take center-stage. India hit another unpleasant milestone as its infection tally crossed the 3-lakh mark. Adding to the worries, are reports suggesting that President Donald Trump may freeze the issuance of new H1B visas as he is under pressure to save jobs in the country. If this goes through, the outlook for IT companies would be grim. The upcoming earnings this week will also drive the markets. Companies like Tata Motors, Pfizer, by HPCL, Ipca Labs, Cummins India, LIC Housing Finance, Novartis among others are set to report their earnings this week. Let us look at the stocks that will be in focus as markets open on Monday:
- Reliance Industries Ltd: The company announced that L Catterton, a global consumer focused private equity firm has bought 0.39% equity stake in Jio platforms with an investment of Rs1,894.50cr. Before this, global fund, TPG capital said that it would invest Rs4,546.80cr for a 0.93% stake in Jio. With this investment, Jio Platforms has raised Rs 104,326.95cr from leading global investors including Facebook, Silver Lake, General Atlantic, KKR, and others since April 22. Apart from this, RIL has announced that the shares offered in the recently concluded rights issue will be listed on the stock exchanges on 15th June,2020.
- Dr Reddy’s Laboratories Ltd: The drugmaker has inked a non-exclusive pact with Gilead Sciences, which grants the Indian firm the rights to register, manufacture and sell the American biopharmaceutical firm’s investigational drug Remdesivir, which is being developed as a potential treatment for Covid-19. The Hyderabad headquartered drug maker will obtain technology transfer from Gilead for manufacturing the drug. Dr. Reddy’s is responsible for scaling up production and ensuring regulatory approvals.
- PNB Housing Finance Ltd: The financer said it fell short of mandatory borrowing through debt securities in 2019-20 because of a subdued debt market. The housing finance company (HFC) said its incremental borrowing last fiscal was Rs21,870cr. The financer reported a pre-tax loss of Rs351.18cr on a standalone basis in the March quarter on a multi-fold rise in provisions for impairment on financial instruments and write-offs. In a statement to the stock exchanges on Saturday, PNB HFC said gross non-performing assets rose to 2.75%, from 0.48% a year ago, while net NPAs rose to 1.75% of the loan assets, from 0.38%.
- Power companies: Tata Power, CESC Ltd and Adani group among others are among those who have evinced interest in acquiring Odisha government’s three electricity distribution companies (discoms), media reports suggested. The discoms that will be privatised are - Western Electricity Supply Utility of Odisha Ltd (WESCO), North Eastern Electricity Supply Company of Odisha Ltd (NESCO) and the Southern Electricity Supply Utility of Odisha Ltd (SOUTCO).
- Tata Motors Ltd: Tata Motors and Jayem Automotives Pvt Ltd have discontinued their 50:50 joint venture as a result of tough market conditions, which impacted the demand for the niche vehicle category. Diluting the JV, Tata Motors has purchased 50% stake of its partner Jayem Automotives in its performance car joint venture JT Special Vehicles Pvt Ltd, the automaker said to the stock exchanges on Saturday. Tata Motors has purchased 25 lakh shares of face value Rs10 each representing the 50% of the paid-up equity share capital of JTSV from its JV partner.
- Eicher Motors Ltd: In a cost-cutting exercise in the midst of the ongoing pandemic, Royal Enfield has decided to shut down about a dozen regional offices, media reports suggested. Offices in Gurgaon, Chennai, Bangalore, Mumbai, Jharkhand, Hyderabad, Bhubaneshwar and others will be shut down immediately.
- Bharat Heavy Electricals Ltd: The engineering firm reported a consolidated net loss of Rs1,532.18cr for the March quarter, mainly due to lower revenues and deferred tax. BHEL has opted for new section 115BAA of the Income Tax Act, 1961 in the current year. Accordingly, deferred tax as on April 1 ,2019 has been restated at the rate of 25.16% , which resulted in reversal of deferred tax assets by Rs974.41cr.
- Cadila Healthcare Ltd: Drugamker Zydus Cadila said it signed a non-exclusive licensing pact with Gilead Sciences Inc to manufacture and market antiviral drug Remdesivir, the first treatment to show improvement in COVID-19 trials. As part of the pact, Zydus will get the manufacturing know-how from Gilead to manufacture the active pharmaceutical ingredient for Remdesivir and the finished product.
- GMR Ltd: Airport developer GMR Infrastructure has signed an agreement with the Andhra Pradesh government to develop a greenfield airport at Bhogapuram, near the port city of Visakhapatnam. GMR won the bid by offering to pay Rs 303 per passenger fee. For GMR, it is the second greenfield airport project in its kitty in India.
- NBCC Ltd: The state-run developer has fast-tracked the execution of troubled developer Amrapali's stalled projects, with 10,000 homebuyers expected to get delivery of their flats by June next year in the decade-old project, media reports suggested. The estimated cost of completion of all Amrapali projects is about Rs 8,500 crore, and NBCC, with the support of the apex court, has handed over two stalled projects.
U.S. stocks closed higher Friday in choppy trading, recovering from the sharp plunge witnessed on Thursday. The Dow Jones Industrial Average gained 477.37 points, or 1.9%, to close at 25,605.54, while the S&P 500 index added 39.21 points, or 1.3%, at 3.041.31. The Nasdaq Composite Index climbed 96.08 points, or 1%, to 9,588.81.