Going into this new week, investors will focus on the first quarter results which will be released this week. Tata Consultancy Services (TCS) will kick-off the earnings season, with earnings being released on the 9th of July. Focus will also be the industrial data for the month of May that will be released on 10th of July. The updates on the coronavirus situation in India and across the world will definitely influence market movement. Total coronavirus cases in India crossed 6.73 lakh as of July 5. Let us look at the stocks that will be in focus as markets open on Monday:
- Moody’s Ratings: Global rating agency Moody's has rated index heavyweights Tata Consultancy Services (TCS), Infosys and Reliance Industries (RIL) above the sovereign, citing strong financials and significant global earnings. The country's leading software exporters, TCS and Infosys, have been rated two notches above India's Baa3 rating due to their global operations and minimal reliance on domestic funding. RIL has been rated one notch above India's sovereign rating due to large scale, diversified business and balanced funding.
- Vodafone-Idea Ltd: The Bombay High court has directed the revenue department to refund Rs833cr to Vodafone-Idea for assessment year 2014-15 within two weeks from the date of this order. After a Supreme Court direction, the revenue department had issued intimation under section 245 proposing certain adjustments to the refund and also passed order under the same section on 28 May 2020 determining the net refund of Rs833cr. However, no refund was released despite many reminders. The Bombay HC in its order said that the Supreme Court order has attained finality and after already having invoked powers under Section 245, the department cannot withhold the admitted refundable amount.
- ICICI Bank: The lender's board will meet on 8th July to discuss and consider the proposal of raising funds by issue of equity shares and/or other equity linked securities, subject to shareholders’ approval and regulatory and other approvals as may be required. ICICI Bank Ltd. is considering raising as much as $3bn in a share sale, media reports suggested.
- Dewan Housing Finance Ltd: DHFL has defaulted on payment of Rs50cr on bonds, saying the company is not in a position to make payments to the lenders as it is under moratorium since last November. The payment has not been made by the company to the respective investors of the secured NCDs (non-convertible debentures) for a principal amount of Rs50 crore due on 3rd July 2020, DHFL said in a statement to the stock exchanges.
- Adani Ports & SEZ Ltd: The company said its board will meet on 7th July to consider raising up to $1.25bn through dollar bonds. In a statement to the stock exchanges on Friday, Adani Ports said that it will consider raising funds by way of dollar denominated foreign currency bonds not exceeding $1.25bn on private placement basis.
- Edelweiss Financial Services Ltd: The company the wealth management house reported a consolidated net loss of Rs2,281.5cr in the three months to March 2020, owing to a jump in impairments recorded in the quarter. In a statement to the stock exchanges on Saturday, Edelweiss said its total impairments stood Rs2,549cr in Q4 FY20 based on revisions in the Expected Credit Loss (ECL) model and impact of covid-19. The total impairments were at Rs85.11cr in the same period last year and at Rs434.31cr in the December quarter of FY20.
- Bajaj Auto Ltd: Workers at Bajaj Auto are demanding the temporary closure of one of its plants after 250 employees there tested positive for coronavirus, its unions said on Saturday. The factory affected is located in western Maharashtra, the state with the highest number of cases of Covid-19. On 26th June the company said that 140 of the roughly 8,000 staff at the factory had caught the virus and two had died.
- Tech Mahindra Ltd: The software maker will bid for the revised tender to supply the fourth generation (4G) equipment to Bharat Sanchar Nigam Ltd (BSNL) partnering with state-owned ITI and other local companies. Last week, BSNL cancelled the tender to upgrade the existing 4G network across 47,000 sites and building new capability in Delhi and Mumbai for Mahanagar Telephone Nigam Limited (MTNL) after the government barred state-run telcos from sourcing equipment from Chinese players Huawei and ZTE.
- Sanofi Ltd: The company along with GlaxoSmithKline are close to clinching a 500 mln pound deal with Great Britain for 60 million doses of their potential coronavirus vaccine. Media reports suggested that Britain was considering taking an option to buy the vaccine should it work in human trials, which are due to begin in September.
- Crest Ventures Ltd: The company has acquired 10% stake in CMS IT services Ltd. The company has acquired 10% stake in CMS IT services for a consideration of Rs6.47cr.
U.S. stocks fell after reports suggested that that Florida broke records on Thursday when it reported over 10,000 new coronavirus cases, representing the biggest one-day increase in the state since the pandemic started. Markets also lost some momentum after a report indicated that a final-stage trial of a Moderna coronavirus vaccine candidate was delayed.