07 Dec 2020, 12:28:12 PM IST

NBFCs show signs of recovery as India economy rebounds

The fortunes of India’s shadow lenders have been improving amid early signs Asia’s third-largest economy is rebounding from an unprecedented recession.

Two of four indicators compiled by Bloomberg that reflect the state of shadow banks strengthened last month from October. Shares of such firms that are part of the benchmark S&P BSE 500 index jumped two levels higher. The financiers also trimmed their debt piles, helping a gauge measuring their total outstanding debt burden to improve. (Full report)

07 Dec 2020, 12:13:48 PM IST

Axis Securities recommends a ‘buy’ on Aarti Drugs Ltd

Axis Securities recommends a Buy on Aarti Drugs Ltd. with a target price of Rs. 825 (Potential upside 10%). “The Indian API market is estimated to be ~INR 798 bn, growing at 8.8% annually. Out of this market, INR 525 bn is domestic consumption and API exports are INR 273 bn. Further, India’ API imports INR 249 bn from China has increased up to 68% of overall API import in last 8 years. We believe dual source qualification by global Pharma players and import substitution from China could generate a structural demand from Indian APIs manufacturers after a covid-19 outbreak. ARTD has planned to incur a Capex of INR 600 crore in next 3-4 years on upcoming seven projects. The Capex breakup maintenance comprises 20%, backward integration 40% and Greenfield expansion 40%. This Capex has potential to generate the sales of INR 1500 cr,” the brokerage said.

07 Dec 2020, 11:58:28 AM IST

HDFC Bank’s multiple digital outages are credit negative: Moody’s

Moody’s Investors Service said on Monday that HDFC Bank’s multiple outages in its internet banking, mobile banking and payment utility services over the past two years are credit negative.

The Reserve Bank of India (RBI) last week asked the bank to stop temporarily all launches under its Digital 2.0 initiative and stop sourcing new credit card customers.

Moody’s said the regulators’ action was in response to weaknesses in HDFC Bank’s digital infrastructure and operational resilience and is credit negative because the bank is increasingly relying on digital channels to source and service its customers. (Full report)

07 Dec 2020, 11:57:07 AM IST

Ashoka Buildcon up 8%

Private equity major Actis Llp is in talks to acquire highways infrastructure firm Ashoka Concessions Ltd in a potential deal having an enterprise value of around $1.2 billion, according to a Mint report.

Ashoka Concessions is a subsidiary company of Ashoka Buildcon.

EY is running the sale process for the deal having an equity value of around $350 million, said one of the two people cited above. Ashoka Concessions’ roads portfolio comprises 15 assets, including six operational build, operate, transfer (BOT) toll projects, one operational BOT annuity project and eight under-construction hybrid annuity projects.

07 Dec 2020, 11:31:30 AM IST

BSE Telecom up 1.4%

The sector regulator TRAI on Friday directed telecom operators to submit details of `segmented’ or concessional offers made to subscribers.

The move comes within weeks of the Supreme Court asking telcos to disclose details of such special tariffs to the regulator.

Issuing a directive to this effect on Friday, the Telecom Regulatory Authority of India (TRAI) asked the operators to “provide within 15 days of the date of issue of this direction” on a monthly basis, for each service area, details of segmented offers, from January 2020 till November 2020.

This includes “details of rates and related terms and conditions, quantum of services, name of tariff plan and validity period of subscription and benefits available to the subscribers in the tariff plan in which the segmented offer has been given”.

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07 Dec 2020, 11:21:33 AM IST

Yes Bank shares gain over 3% in early trade

Shares of Yes Bank kickstarted this week with 3.25% gain in early trade on Monday. The scrip opened at ₹15.65 apiece on the BSE and hit an intraday high of ₹15.85 per share.

07 Dec 2020, 11:15:00 AM IST

Tata Power up nearly 1%

Tata Power has received the Letter of Intent (LOI) for supplying electricity to the consumers of two electricity distribution companies (discoms) in Odisha—the Western Electricity Supply Company of Odisha Ltd (WESCO) and the Southern Electricity Supply Utility of Odisha Ltd (SOUTCO).

07 Dec 2020, 11:03:38 AM IST

Tata Consumer Products up 0.3%

Tata Consumer Products Ltd (TCPL) on Saturday said its Australia based step-down subsidiary is selling MAP Coffee Business to Buccheri Group for 1.25 million Australian dollar ( ₹6.74 crore).

According to TCPL’s website, MAP Coffee was established in 2002 and supplied Australian cafes, restaurants and bars with a range of Italian and locally roasted coffee. It joined TCPL in 2014.

“Earth Rules Pty Ltd, Australia, a step-down subsidiary of the company, has entered into an asset sale and purchase agreement on December 5, 2020, for sale of MAP Coffee Business to Buccheri Group Pty Ltd,” TCPL said in a regulatory filing.

07 Dec 2020, 10:53:07 AM IST

Rupee rises 7 paise to 73.73 against US dollar in early trade

The rupee appreciated by 7 paise to 73.73 against the US dollar in the opening session on Monday on sustained foreign fund inflows and positive domestic equities.

At the interbank forex market, the domestic unit opened at 73.79 against the US dollar, then gained ground and touched 73.73 against the American currency, registering a rise of 7 paise over its previous close.

On Friday, the rupee had settled at 73.80 against US dollar.

07 Dec 2020, 10:47:18 AM IST

Top Sensex contributors

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07 Dec 2020, 10:40:15 AM IST

IndusInd Bank up nearly 1%

Ubs Principal Capital Asia Ltd on Friday sold more than 20 lakh shares of IndusInd Bank Ltd worth ₹184 crore via open market transaction. As per the data available on BSE Block deal, Ubs Principal Capital Asia offloaded 20,70,000 shares of the bank at an average price of ₹891.4 apiece, valuing the transaction at ₹184.51 crore.

07 Dec 2020, 10:29:39 AM IST

Wipro new CEO Thierry Delaporte drives stock up 70% without stepping into office

In the five months since he took over as chief executive officer of Wipro Ltd., Thierry Delaporte has yet to visit the Indian outsourcer’s Bangalore headquarters once. Instead, the 53-year-old has been on a virtual tour from his home in Paris, meeting with managers, workers and customers around the globe.

He’s trying to turn around the struggling business without letting the Covid-19 pandemic slow him. Delaporte slashed the top ranks of leadership from 25 people to four. He stepped up acquisitions, with more on the way. Mostly, he focused his attention on customers, meeting with 130 over video conference and helping to land new multi-year contracts with clients in the U.S. and Europe. (Full report)

07 Dec 2020, 10:17:18 AM IST

Reliance Communications up 10%

The National Company Law Tribunal (NCLT) has approved a resolution plan for Reliance Infratel submitted by a group entity of Reliance Industries, according to a regulatory filing.

The resolution plan was approved by 100% votes of the committee of creditors.

Reliance Communications’ telecom infrastructure arm Reliance Infratel has around 43,000 towers and 1,72,000 route kilometres of fiber. Lenders are expected to get around ₹4,400 crore from the resolution process, sources had earlier said.

07 Dec 2020, 10:06:45 AM IST

DBS Bank India gets ₹2,500 cr capital support from parent for LVB merger

DBS Bank India Limited (DBIL) on Friday said it has received capital infusion of ₹2,500 crore from DBS Bank Limited, Singapore to support its amalgamation with Lakshmi Vilas Bank (LVB).

The scheme of amalgamation came into effect on November 27, 2020.

DBIL said it is well-capitalised, and its capital adequacy ratios (CAR) remains above regulatory requirements after the amalgamation.

“The amalgamation provides stability and better prospects to LVB’s depositors, customers and employees following a period of uncertainty,” it said in a release.

07 Dec 2020, 09:59:53 AM IST

ONGC up over 2%

ONGC Videsh Ltd, the overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC), has made a “significant” oil discovery in an onshore block in Colombia. OVL struck oil while drilling an appraisal well ‘Indico-2’ in CPO-5 block in Llanos Basin of Colombia, the company said in a statement.

07 Dec 2020, 09:45:03 AM IST

RIL up 0.3%

The National Company Law Tribunal (NCLT) has approved a resolution plan for Reliance Infratel submitted by a group entity of Reliance Industries, according to a regulatory filing.

“… the resolution plan submitted by Infrastructure Projects – a division of Reliance Projects & Property Management Services Limited, a wholly owned subsidiary of Reliance Industries Limited, for the resolution of Reliance Infratel Limited, under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code 2016, has been approved by the Hon’ble National Company Law Tribunal… Mumbai bench vide its Order dated December 3, 2020,” RIL said in a late evening filing on Friday.

07 Dec 2020, 09:35:06 AM IST

Pfizer up nearly 2%

US-based Pfizer is the first company to approach the Drug Controller General of India to seek an emergency use authorisation for its messenger RNA vaccine. The vaccine had shown robust efficacy data against covid-19 in a recently concluded US trial.

07 Dec 2020, 09:28:04 AM IST

Most sectoral indices on NSE in the green

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07 Dec 2020, 09:19:32 AM IST

Market opening

Indian benchmark equity indices opened on a cautious note on Monday amid weak cues from Asian peers.

Sensex opened at 45,099.92, up 20.37 points or 0.05%, while Nifty advanced 6.30 points or 0.05% at 13,264.85.

ONGC, up over 1%, was the top Sensex gainer followed by Infosys, Bharti AIrtel, Bajaj Finserv and NTPC. HDFC Bank, Nestle India, TechM and Asian Paints were among the laggards. Of 30 Sensex shares 22 were in the green at open.

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07 Dec 2020, 09:06:52 AM IST

Market pre-opening

Indian stocks traded higher in the pre-opening session on Monday. At 9:04am, Sensex was at 45,187.37, up 0.24% or 107.82 points, while Nifty advanced 17.65 points or 0.13% at 13,276.20.

07 Dec 2020, 08:52:53 AM IST

Stocks to Watch

Pfizer, RIL, ONGC, Axis Bank, IndusInd Bank and Tata Chemicals are among the top ten stocks that may be in focus today. (Full report)

07 Dec 2020, 08:51:52 AM IST

Market at close on Friday

Equity benchmarks rallied to record highs on Friday after the RBI left the policy rates unchanged but maintained its accommodative stance and revised upwards the growth forecast for this fiscal.

Breaching the 45,000-mark for the first time, the 30-share BSE Sensex surged 446.90 points or 1% to finish at 45,079.55. Intra-day, it touched a lifetime peak of 45,148.28.

Similarly, the broader NSE Nifty touched a new high of 13,280.05 during the session, before finishing 124.65 points or 0.95% higher at 13,258.55 — its record closing high.

07 Dec 2020, 08:49:17 AM IST

Stock Rally Stalls in Asia

A global equity rally showed signs of stalling Monday against renewed US-China tensions and surging coronavirus cases. Asian shares traded mixed with SGX Nifty underperforming.

Japan’s Topix index slid 0.5%.

Hong Kong’s Hang Seng index fell 2.12%, while China’s Shanghai Composite declined nearly 1%.

South Korea’s Kospi index fell 0.3%.

Australia’s S&P/ASX 200 Index rose 0.4%.

Singapore’s SGX Nifty retreated 0.5%.

07 Dec 2020, 08:49:17 AM IST

Wall Street hits highs as slowing job growth spurs stimulus bets

Wall Street’s main indexes rose to all-time highs on Friday as data showing the slowest US jobs growth in six months raised investors’ expectations for a new fiscal relief bill to help revive the coronavirus-hit economy.

The Dow Jones Industrial Average rose 248.74 points, or 0.83%, to 30,218.26, the S&P 500 gained 32.40 points, or 0.88%, to 3,699.12 and the Nasdaq Composite added 87.05 points, or 0.7%, to 12,464.23.