In the forthcoming week, domestic markets will largely be guided by corporate earnings, developments on US-China relations front and COVID-19 trends. Quarterly earnings will provide impetus in the week ahead, as a number of big companies are scheduled to declare their numbers. Bharti Infratel, Kotak Mahindra Bank, Dr Reddy’s Labs, Maruti Suzuki, RIL, and SBI are scheduled to release their results this week. Another major event that markets would track is the Fed interest rate decision on Wednesday. Let us look at the stocks that will be in focus as markets open on Monday:
- HDFC Bank: The lender’s managing director Aditya Puri has sold 7.42mn shares or 0.13% stake worth Rs842.87cr in the bank between 21st July and 23rd July, stock exchange filings show. HDFC Bank head’s tenure will end in October. He held 0.14% stake or 7.8 mn shares as of 30th June, before the transaction. With this sale, the veteran banker now holds 3.76 lakh shares or 0.01% stake in the bank. An HDFC Bank spokesperson said these shares were allotted to Puri at different times and at different price points (not at par). Therefore, the net amount realized by him is not Rs840cr.
- ICICI Bank: The Mumbai based lender reported a 36.2% increase on annual basis in net profit during the quarter ended 30th June, 2020, on the back of stake sale in life and general insurance subsidiaries. The private lender posted a net profit of Rs 2,559.15cr in the quarter under review, as opposed to Rs1,908.03cr in the corresponding period last year. In a statement to the stock exchanges, the bank said that it had sold equity shares representing 3.96% in ICICI Lombard General Insurance Company Limited and 1.50% in ICICI Prudential Life Insurance Company Limited for a total consideration of Rs3,092.93cr. The sale resulted in net gain of Rs3,036.29cr in standalone financial results and Rs 2,715.87cr in consolidated financial results for the Apr-Jun quarter.
- Tata steel Ltd: A proposal by Tata Steel for the UK government to invest over 900mn pounds or $1.2bn in the company is part of the talks between the two sides. The company and the UK government are engaging in talks to secure the future of Port Talbot steelworks. Under this plan the state would control as much as 50% stake in Tata Steel, media reports suggested. The proposal would also involve the company writing off a similar amount owed by the UK business.
- ITC Ltd: The conglomerate posted a 26% yoy fall in consolidated profit after tax for the June quarter to Rs2,567.07cr amid coronavirus crisis. In the corresponding quarter last year, ITC had posted Rs3,436.51cr of profit. Consolidated revenue from operations declined 17% to Rs 10,478.46cr for the quarter under review compared with Rs12,657.90 cre in the year-ago quarter, ITC said in a statement to the stock exchanges post market hours Friday. The cigarettes business reported a revenue of Rs4,330.05 r in the given quarter as against Rs ,141.92cr a year ago.
- Lupin, Granules India Ltd: The drug makers are recalling close to 9.71 lakh bottles of generic diabetes drug in the US due to possibility of the affected lot containing cancer causing nitrosodimethylamine (NDMA) above the acceptable intake limit. As per the latest Enforcement Report of the US Food and Drug Administration (USFDA), Lupin is recalling 4,92,858 bottles of Metformin Hydrochloride extended-release tablets in 500 mg and 1,000 strengths. On the other hand, Granules India is recalling over 4.78 lakh bottles of the drug in 750 mg strength.
- Cipla Ltd: Cipla said it has received the Drug Controller General of India (DCGI) approval for the launch of experimental coronavirus drug Favipiravir in India for treatment of COVID-19 patients. The drug, which is used to treat mild to moderate COVID-19 patients, will be commercially launched under the brand name Ciplenza in the first week of August priced at Rs 68 per tablet, Cipla said in a statement to the stock exchanges post market hours Friday. Favipiravir is an off patent, oral anti-viral drug that has been shown to hasten clinical recovery in COVID -19 patients with mild to moderate symptoms.
- Ambuja Cement Ltd: The cement maker posted a 10% rise in standalone net profit at Rs453.37cr in the second quarter of calendar year 2020. In the corresponding period a year back, the company had reported a net profit of Rs412.05cr. The revenue from operations stood at Rs 2,176.75cr in the April-June quarter compared with 2,983.56cr a year ago, the company said in a statement to the stock exchanges post market hours Friday. Ambuja Cement also said that coronavirus lockdown negatively impacted its volumes in Q2CY20. In the given quarter, cement sales saw a fall of 29% as against the corresponding period of last year.
- Adani Power Ltd: The company’s shareholders have approved the proposal to delist the company from exchanges. For the public institutional shareholders 83.71% of equity shares were voted on, out of which 95.88% voted in favor for delisting the company, while for public non-institutional shareholders 56.27% of shares voted with 98.50% votes in favor of the delisting resolution. The company has worked out the floor price of Rs 33.82 per share to buy 96.53cr equity shares with the public for about Rs 3,264cr.
- Coffee Day Enterprises Ltd: It has been found in an investigation that its late founder VG Siddhartha routed Rs 2,693 crore out of the company through transactions. VG Siddhartha caused subsidiaries of Coffee Day to pay advances to a firm controlled by his family so that he could buy-back shares held by private equity investors, repay loans and keep up with interest payments on other borrowings, the company said, disclosing the results of a nearly year-long investigation.
- Zee Entertainment Enterprises Ltd: The company reported a net loss of Rs 766.7 cr, Ebitda loss of Rs 562.5 crore in the first quarter. The entertainment company also reported a one-time provision of Rs343cr on doubtful recovery of ad, subscription and other assets due to Covid-19. The company also bore an exceptional loss on account of impairment of goodwill pertaining to digital publishing business at Rs113.7cr.
U.S. stocks closed lower Friday as investors fretted about rising Chinese-American tensions and a lack of progress on another fiscal stimulus bill in Washington. The Dow Jones Industrial Average declined 182.44 points, or 0.7%, to close at 26,469.89; the S&P 500 index 20.03 points, or 0.6%, closing at 3,215.63; and the Nasdaq Composite Index fell 98.24 points or 0.9% to close at 10,363.18.
President Donald Trump, during a coronavirus news briefing on Thursday, also said that a trade pact between China and the U.S. “means less to me now than it did when I made it.” Trump’s comments came as Secretary of State Mike Pompeo on Thursday called on governments around the world to join the U.S. in confronting China’s Communist Party leaders.