In the week ahead, markets look towards latest developments in the United States, outcome of the US-China meet and Supreme court decision on ADR dues for cues. It has been highly speculated that US will dole out another package to counter the ongoing pandemic. Developments from the US-China trade deal which was postponed on Saturday due to scheduling conflicts will also be closely monitored. Let us look at the stocks that will be in focus as markets open on Monday:
- Tata Motors Ltd, Tata Steel Ltd: Tata group failed to secure a bailout package from the UK government due to which the group may look for a strategic partner for Jaguar Land Rover (JLR) and to sell its British steel operations. The deal between the UK's Treasury and the Tata Group companies fell apart after the government concluded that the Indian firms were sufficiently financed and didn't qualify for taxpayer support, media reports suggest. The news report also added that stringent conditions imposed on lending, including decarbonization requirements pushing electric vehicles, made the deal infeasible for the companies owned by the group.
- Infosys Ltd: The software exporter has levied a fine of Rs2 lakh on its independent director Bobby Parikh for an inadvertent trade by the portfolio management services of his spouse Bela Parikh. Bobby Parikh, a joint holder of that account, had bought 2,754 shares during the open trading window period without the knowledge of Bobby and without obtaining pre-clearance of trade, Infosys said in a filing to the stock exchanges post market hours Friday.
- ICICI Bank: The lender said it has raised Rs15,000cr through Qualified Institutional Placement (QIP) of equity shares. The private sector lender also said that it has completed the issuance of 41.89cr equity shares at an issue price of Rs358 per unit. The issue price is a 1.9% premium to the floor price and a 1.5% discount to Friday's closing price. Monetary Authority of Singapore, Morgan Stanley Investment Management Inc. and Societe Generale have been allotted over 5% of the equity shares in the issue.
- HPCL, BPCL: The National Green Tribunal (NGT) has slapped a penalty on four companies, comprising HPCL (Hindustan Petroleum Corporation Ltd) and BPCL (Bharat Petroleum Corporation Ltd), for contributing "substantially" to air pollution and creating "gas chamber" like conditions in Mahul, Ambapada and Chembur areas of Mumbai. The NGT on Friday asked the companies to pay a fine of Rs286cr over five years to revive air quality in the area. The tribunal directed HPCL to pay Rs76.5cr, BPCL Rs7.5cr, AEGIS Rs142cr, and SLCL Rs0.2cr.
- Lupin Ltd: A subsidiary of the company announced results from its pivotal Phase 3 clinical trial to assess efficacy and safety of single-dose Solosec (secnidazole) 2g oral granules in female patients with trichomoniasis in the US The trial results showed a clinically and statistically significant response rate, or microbiological cure, in patients treated with Solosec as compared to placebo. Based on the data, Lupin will submit a supplemental New Drug Application (sNDA) to the US Food and Drug Administration (FDA) for Solosec for the treatment of trichomoniasis later this year.
- GVK Power & Infra Ltd: The company’s auditors Price Waterhouse Chartered Accountants have proposed to resign as statutory auditors as they await information for the fiscal 2020 and in recent events in relation to company’s arm Mumbai International Airport. The auditor alleged that despite several communications, the group did not provide them with necessary information. In a statement to the stock exchanges post market hours Friday, GVK submitted a copy of the statutory auditor's resignation letter, dated August 13, to the stock exchanges.
- Gati Ltd: The company received a special notice under the Companies Act, 2013 from Allcargo Logistics Ltd. – the company’s promoter and shareholder representing 46.86% of the company’s voting capital, for considering and passing resolution for the removal of Mahendra Kumar Agarwal - the company’s MD & CEO.
- India Grid Trust Ltd: Power transmission company Sterlite Power, has sold off its 14.7% stake in India Grid Trust (IndiGrid) to institutional investors and high net worth individuals (HNIs) for Rs840cr. Sterlite Power is the sponsor of IndiGrid, India’s first power sector InvIT; it had held 15 per cent in the InvIT. After selling the stake, Sterlite Power will continue to remain a shareholder of Sterlite Investment Managers (SIML), the investment manager of IndiGrid.
- Dilip Buildcon Ltd: The company’s board has approved raising Rs 2,000 crore via issue of shares and to raise up to Rs1,000cr each via NCDs and commercial papers.
- SJVN: The company has received 100 MW solar project in Gujarat for Rs2.8 per unit. Cost of construction for this project is pegged at Rs 450cr. The project is expected to generate 244 MU / year and power purchase agreement shall be signed between GUVNL and SJVN for 25 years. Plant is expected to be commissioned by March 2022.
U.S. stocks ended nearly unchanged on Friday, as investors weighed mixed data on consumer confidence and retail sales against an upcoming trade meeting between Chinese and U.S. officials.
The Dow Jones Industrial Average gained 34.30 points, or 0.1%, to 27,931.02. The S&P 500 slipped 0.58 of a point, less than 0.1%, to 3,372.85, remaining within close range of the index’s all-time-high. The Nasdaq Composite declined 23 points, or 0.2%, to 11,019.30.
The headline U.S. retail sales figures missed forecasts, with a monthly increase of 1.2% falling short of the 2% estimate. Consumer confidence was better than expected for August; the University of Michigan’s Consumer Sentiment Index came in at 72.8 on Friday, compared to forecasts of 72.0.