In the forthcoming week, investors will focus on earnings reports to be released by a number of important companies. Asian Paints, ITC, ACC, Bajaj Auto, Larsen & Toubro, Bajaj Finserv, Hindustan Unilever, Bajaj Holdings & Investment, ICICI Bank, Axis Bank , are some of the companies set to release their earnings this week. Apart from this , markets will also look at the direction of international markets and the progress in COVID19 cases in India. Let us look at the stocks that will be in focus as markets open on Monday:
- HDFC Bank: The lender reported a 20% increase in net profit for the quarter ended June 2020 over the same period last year. The lender reported net profit of Rs 6,658.62 crore in Q1 FY21 over Rs 5,568.16 crore reported in the same quarter last year. The private sector lender's net revenue grew 8% year-on-year to Rs 19,740.7cr from Rs 18,264.5cr in the same quarter last year. Net interest income -- difference between interest earned and interest expended -- was up by 17.8% to Rs15,665.40 cr. The bank saw a 20.9% growth in interests and 24.6% increase in deposits. HDFC Bank's net interest margin stood at 4.3%-- unchanged from last year. HDFC Bank's total deposits as of 30th June were Rs 1,189,387 cr -- an increase of 24.6% from last year.
- Edelweiss Financial Services Ltd: In a drastic business overhaul, the Edelweiss Group will be completely exiting the wholesale credit business by 2022, shifting its focus solely to retail credit along with asset and wealth management verticals. Group Chairman and CEO Rashesh Shah has said that since the IL&FS bankruptcy-induced liquidity crisis in the shadow banking sector in September 2018, the group has been reducing its wholesale loan book and it is down 43% from peak in FY18. The group will be selling down Rs 3,000cr more of wholesale loans by March and completely exiting by 2022.
- L&T Finance Holdings Ltd: The company said it has decided to wind up its Dubai-based subsidiary L&T Capital Markets (Middle East) Ltd, after the proposed sale plan didn't materialise. In early July, L&TFH informed that the share purchase agreement (SPA) with Proud Securities and Credits Pvt Ltd (an NBFC firm forming a part of InCred group) to sell 100% of its shareholding in L&T Capital Markets (Middle East) was mutually terminated. L&T Capital Markets (Middle East) LTCM (ME), a wholly owned subsidiary of the L&TFH, was into wealth management business based in Dubai, UAE.
- Mahindra & Mahindra Financial Services Ltd: The company has Mahindra and Mahindra Financial Services has reported more than two-fold jump in standalone net profit to Rs156 crore in the quarter ending June helped by cost rationalization measures and lower funding cost. It had reported a profit after tax of Rs68cr in the same quarter of last year. On a consolidated basis, the lender reported a profit after tax of Rs432 crore during the quarter as against Rs108 crore last year. The total value of assets financed for the quarter ended June stood at Rs 3,489 cr as against Rs10,598.3 cr last year in the same period.
- Canara Bank: The state-run lender will raise up to Rs5,000cr equity capital through various modes in the current fiscal year to boost its capital adequacy ratio in view of expansion plans, and will seek nod from shareholders for the same in its AGM next month. The bank will seek shareholders' nod at the annual general meeting (AGM) to be held on August 10 through audio/visual means in view of the coronavirus pandemic.
- Glenmark Pharmaceuticals Ltd: Drug Controller General of India (DCGI) V.G. Somani has pulled up Glenmark Pharmaceuticals Ltd for alleged false claims about the use of Fabiflu to treat covid-19 as well as overpricing of the branded generic, having received a complaint by an unnamed legislator. Glenmark had priced FabiFlu, a branded generic of the antiviral Favipiravir, at Rs103 per tablet of 200 mg during its launch, and an entire two-week course of treatment required 122 tablets, leading to a total cost of Rs12,500. It had, however, last week, slashed the price by 27% to Rs75 per pill, or Rs9,150 for the course.
- Vodafone Idea Ltd: The cellular company paid the Department of Telecommunications (DoT) another Rs1,000 crore as part of its dues related to adjusted gross revenue, taking the beleaguered telecom operator’s total payments to Rs7,854 crore. In a filing to the stock exchanges on Saturday, the company said that the pay relates to a Supreme Court judgement on 24th October last year, when the apex court upheld the government’s broader definition of AGR, on which it calculates various levies like spectrum usage charges and license fees. The DoT’s estimate for Vodafone Idea was Rs58,254 crore, of which around Rs50,000 crore is still outstanding despite the latest payment.
- Zydus Cadila Ltd: The drugmaker said it has received final approval from the US health regulator to market generic Butalbital, Acetaminophen and Caffeine combination tablets to treat symptoms of tension headaches. In a statement to the stock exchanges on Friday, the company said it has received final approval from the United States Food and Drug Administration (USFDA) to market Butalbital, Acetaminophen and Caffeine tablets in strengths of 50mg/325mg/40 mg. The drug will be manufactured at Nesher Pharma's manufacturing facility at St. Louis in the US, it added.
- Muthoot Finance Ltd: The gold loan financer said its board has put in abeyance the proposal for a stock split in view of the current economic situation caused by the corornavirus pandemic. In a statement to the stock exchanges, the company said the decision to defer the proposal was taken considering the economic uncertainties that are currently prevailing due to COVID 19 outbreak and related slowdowns being witnessed in the economy.
- Rossari Biotech Ltd: After receiving an excellent response for the Rs 496-cr initial public offer (IPO), the listing of Rossari Biotech shares will be closely watched. The specialty chemicals maker’s issue was subscribed more than 79 times, and is likely to be listed on July 23. It will be the second listing in more than four months after SBI Cards IPO earlier this year.
US stocks ended with modest gains on Friday as investors reacted to disappointing consumer sentiment data amid underwhelming results by key companies. U.S. stocks ended higher Friday, underpinned by optimism over a coronavirus treatment. The Dow Jones Industrial Average closed at 26,671.95, down 62.76 points, or 0.23%. The S&P 500 added 9.16 points, or 0.28%, to close at 3,224.73. The Nasdaq Composite gained 29.36 points, or 0.28%, ending the week at 10,503.19.
U.S. housing starts came in at a 1.19mn seasonally adjusted annual rate in June, the Commerce Department said Friday, a 17% increase from May. Permits for newly-built homes rose 2.1% between May and June to a seasonally adjusted annual rate of 1.24mn.