Indian markets are likely to open lower as the early indicator of NSE Nifty 50, SGX Nifty Futures is also trading up 0.4% at 9,812 points. Meanwhile, Asian stocks were trading mixed in the early session today following a tepid Wall Street closing on Monday.
These stocks will be in focus after major announcements:
The board of state-owned Oil and Natural Gas Corp (ONGC) yesterday gave ‘in-principle’ approval to acquire government’s 51.11 per cent stake in Hindustan Petroleum Corp Ltd, the company said in a regulatory filing. The board at its meeting today constituted a committee of directors to “examine various aspects” of the acquisition and “to provide its recommendations to the board of directors”, it said. The government last month had approved sale of its 51.11 per cent stake in oil refiner HPCL to India’s largest oil producer ONGC.
Tata group chairman N Chandrasekaran yesterday said Indian Hotels took “appropriate financial decisions” by selling certain assets post financial crisis while retaining iconic properties like the Pierre hotel in New York. The comments, made by Chandrasekaran at IHCL’s 116th annual general meeting here, came on a day when his predecessor Cyrus Mistry alleged that Indian Hotels Company Ltd (IHCL) faced a “near-death experience” due to some acquisitions and had to take write-downs near equal to its entire networth.
Market leader State Bank of India yesterday announced waiver of up to 100 per cent processing fee on car, gold and personal loans, albeit for limited periods. This is in addition to the existing waiver on processing fee on takeover of home loans, SBI said in a release. “To bring more smiles to customers and their dear ones, bank has waived 100 per cent processing fee on car loans till December 31, 2017,” it said.
State-owned power giant NTPC has sought shareholders’ approval to raise Rs 15,000 crore via non-convertible bonds on private placement basis domestically for capex, working capital and other corporate purposes. The special resolution is listed on the agenda of the annual general meeting scheduled for September 20, NTPC said in a BSE filing yesterday.
State-run hydro power giant NHPC yesterday said it will seek shareholders’ approval to raise Rs 2,000 crore via issuance of non-convertible debentures on private placement basis at its AGM on September 27. The special resolution proposes to authorise board to raise Rs 2,000 crore via the secured/unsecured, redeemable, taxable/tax-free, cumulative/non-cumulative, non-convertible debentures/bonds, in one or more series/tranches, aggregating through private placement, in domestic market, NHPC said in a BSE filing yesterday.
A slew of brokerage downgrades of Infosys shares following the unexpected resignation of Vishal Sikka on Friday knocked the second-largest information company from the list of top 10 companies by market capitalisation on BSE yesterday. Shares of the Infosys extended losses on Monday and fell more than 3% as the pessimism continues to grow which led to the decline in market cap.
At an intraday price of Rs 886.6, the market capitalisation of Infosys stood at Rs 2,03,832.85 crore as compared from Rs 2,34,554.78 crore on Thursday at the closing price of Rs 1,021.15 on Bombay Stock Exchange. State-run oil explorer and marketing company ONGC has replaced Infosys to become the tenth most valuable company on BSE. On broader terms, Infosys has lost about 30,721.93 crores in just two days of trading from Friday.
Homegrown auto major Tata Motors yesterday said it will invest Rs 4,000 crore in the current fiscal to bring new passenger and commercial vehicles to the market as part of its turnaround strategy. The company also expects to save over Rs 1,500 crore and add to the bottom line in its domestic business through various cost optimisation exercises and hopes return to the black in 2017-18.
HCL Infosystems yesterday said it will distribute Apple products, including the iconic iPhone, in the Indian market. The company had said in July that it was in discussions with the US-based tech giant to distribute its products in India. In a regulatory filing, HCL Infosystems said it has signed an agreement for “distribution of iPhone and other Apple products” with Apple India, a confirmation of which it received yesterday.
Drug firm Lupin yesterday said it has received establishment inspection report (EIR) from the US health regulator for its Aurangabad plant in Maharashtra. It has received notification that the inspection carried out by the United States Food and Drug Administration (USFDA) in April 2017 at its Aurangabad facility is now closed and the agency has issued an EIR, Lupin said in a statement.
Drug firm Jubilant Life Sciences yesterday said it has received new drug application approval from the US health regulator for Drax Exametazime. Jubilant Pharma Ltd, a wholly-owned subsidiary of the company, through its Canada-based arm Jubilant Draximage Inc has received new drug application (NDA) approval from the United States Food and Drug Administration (USFDA) for Drax Exametazime, Jubilant Life Sciences said.
Piramal Finance has invested Rs 550 crore in realty firm Rustomjee group township project in Mumbai. Piramal Finance “has sanctioned about Rs 1,000 crore of growth capital and customised financing solutions across multiple projects of the Rustomjee group”.
Shell companies update: The National Stock Exchange (NSE) yesterday said trading in Sanco Industries will resume from today after Securities Appellate Tribunal (SAT) stayed trading restriction imposed on the company. The shares of the company will be moved out of GSM (graded surveillance measures) framework and will be available for trading with effect from August 22, the exchange said in a circular. It will be allowed to trade in a price band of 20 percent.
IPO update: Indian Energy Exchange (IEX) has received the approval of capital markets regulator Sebi to float an initial public offer. The company had filed IPO papers with Sebi in June and got ‘observations’ from it on August 14, which is necessary for a company to launch the public offer, as per the latest update with the markets watchdog. The IPO will see sale of 6,065,009 equity shares by existing shareholders including Tata Power Company, private equity arm of Aditya Birla Group, Madison India Capital and Renuka Ramnath-led Multiples Alternate Asset Management.
PSU bank strike today:
Normal banking operations in public banks may see some disruption today because of a nation-wide strike to protest against the government’s proposed consolidation move besides raising other demands. The strike has been called by unions under the aegis of the United Forum of Bank Unions (UFBU). The Indian Banks’ Association (IBA) has already informed customers that functioning of branches and offices may take a hit if the strike takes off. It also asked banks to take measures in advance to minimise the impact. Deposit and withdrawal in bank branches, cheque clearance, NEFT and RTGS transactions will be affected. Operations at private lenders such as ICICI Bank, HDFC Bank, Axis Bank and Kotak Mahindra Bank are expected to be normal except delay in cheque clearances.
FDI investment: Foreign direct investment (FDI) into the country grew by 37 per cent to USD 10.4 billion during the first quarter of the current fiscal, DIPP said today. According to the figures of the Department of Industrial Policy and Promotion (DIPP), India had received USD 7.59 billion FDI during April-June 2016-17. The main sectors which attracted the highest foreign inflows include services, telecom, trading, computer hardware and software and automobile. Bulk of the FDI came in from Singapore, Mauritius, the Netherlands and Japan.
Indian markets yesterday:
Indian stocks made an early attempt on Monday to come out of the Infosys jolt, but ultimately could not as the Sensex lost 266 points and the Nifty cracked below 9,800 at the close amid a lower opening in Europe. The IT sector as a whole faced the backlash of Vishal Sikka’s surprise resignation as Infosys CEO. The software giant suffered more losses, down 5.37 per cent, despite its Rs 13,000 crore share buyback announcement.
Indian Rupee closing on Monday:
The rupee pared its most of early gains to end marginally up at 64.14 against the US currency due to some dollar demand from importers and corporates. The rupee had opened with modest gain of 10 paise at 64.05 per dollar but later traded in a tight range in absence of any fresh macroeconomic clue, dealers said. Emergence of strong dollar demand from importers later in the day weighed on the rupee that touched a low of 64.16 per dollar briefly in the last hour of trade. The domestic currency finally settled at 64.14, revealing a gain of one paisa over Friday’s close of 64.15. Selloff in the domestic equity markets also impacted the home unit. Foreign portfolio investors (FPIs) sold local shares worth a net Rs 1,983 crore today, as per provisional exchanges data.
US stocks on Monday:
The benchmark U.S. S&P 500 stock index ended up slightly on Monday after two days of declines, though a drop in oil prices weighed on energy shares and tensions between the United States and North Korea kept investors on edge. The Dow Jones Industrial Average rose 29.24 points, or 0.13 percent, to 21,703.75, the S&P 500 gained 2.82 points, or 0.12 percent, to 2,428.37 and the Nasdaq Composite dropped 3.40 points, or 0.05 percent, to 6,213.13. Shares of sporting good retailers took a hit after analysts downgraded ratings on Nike, Foot Locker and other companies. Nike’s shares fell 2.4 percent, while Foot Locker shares slid 7.4 percent.