On Monday (May 10), the Reserve Bank came out with modified guidelines that allow sound private sector banks to undertake government business, whether at the Centre or in states. The effects of guidelines is expected to reflect well among the banking indices today when markets open.
In addition, the stocks of automakers are expected to be in picture owing to the temporary closure of their manufacturing facilities amid COVID-19.
Other than these indices, some specific stocks to watch out for are as follows:
InterGlobe Aviation: The parent of the country's largest airline IndiGo said its board has approved raising up to Rs 3,000 crore through sale of shares to institutional investors. The fund raising plan of the company comes at a time when the airline industry is facing significant headwinds due to the coronavirus pandemic that has resulted in falling passenger demand and low occupancy in flights.
Tata Steel: S&P Global Ratings said that continued strength in steel prices will support Tata Steel's commitment to deleverage. The company has guided for average prices to increase by about Rs 6,000 to 7,000 per tonne quarter-over-quarter in the three months ending June 2021.
Federal Bank: Kerala-headquartered Federal Bank has entered into a strategic tie-up with UAE-based Mashreq Bank to facilitate money transfers from the UAE to India. The partnership will support Mashreq’s faster payment product, QuickRemit, which was launched in 2017. This will further improve Federal Bank’s position among remittances.
Indian Overseas Bank: State-owned Indian Overseas Bank said its board will meet next week to issue preference shares to the government for Rs 4,100 crore capital infusion. A meeting of the board of directors for the issue of equity share capital would be held on Monday, May 17, 2021, to issue and allot shares to the government on a preferential basis for the capital infusion of Rs 4,100 crore, Indian Overseas Bank said in a regulatory filing.
JSW Energy: JSW Hydro Energy, an arm of Sajjan Jindal-led JSW Energy, has raised USD 707 million (about Rs 5,200 crore) through its maiden international green bond sale that was oversubscribed by four times, merchant bankers said. This is the largest green bonds sale by a domestic issuer, according to the merchant bankers and also the first such issue this fiscal.
Bharat Petroleum Corporation (BPCL): Government-headhunter PESB on Monday selected the next chairman and managing director of Bharat Petroleum Corporation Ltd (BPCL), in signs that the privatisation of the state-owned oil refining and marketing firm may be delayed. The government had kept the position of chairman and managing director vacant after D Rajkumar retired in August last year. It was thought that the government wants the new CMD to be named after the new management takes over following the privatisation of BPCL.
GE T&D India: The company said it has temporarily closed operations of its manufacturing facilities at Padappai, Pallavaram and Hosur in Tamil Nadu until lockdown restrictions are in place in the state. Thus, we can expect movement in this stock as well.
HSIL: Sanitaryware and packaging products maker HSIL Ltd reported several-fold jumps in its net profit to Rs 33.02 crore for the fourth quarter ended March 2021. The company had posted a net profit of Rs 3.38 crore in the January-March period a year ago, HSIL Ltd said in a BSE filing.
Punjab National Bank (PNB): The lender said its board has approved raising equity capital from qualified institutional investors to enhance its capital base. For the Qualified Institutional Placement (QIP) purposes, the bank has fixed the floor price at Rs 35.51 per equity share.
SBI General Insurance Company: Regulator IRDAI has imposed a penalty of Rs 30 lakh on SBI General Insurance Company for its failure to comply with the third-party motor insurance regulations. The SBI General Insurance Company had failed to meet the minimum obligations under Motor Third Party business as specified in concerned IRDAI Regulations for 2018-19, the insurance regulator said in its order.
IDBI Bank: The All India IDBI Officers' Association (AIIDBIOA) on Monday said it would seek legal and other recourse against the government's decision to privatise the IDBI Bank. Opposing the decision of the Cabinet Committee on Economic Affairs (CCEA) AIIDBIOA's General Secretary Vithal Koteswara Rao AV said it will adopt various routes of agitation including but not limited to the legal recourse to derail the government motives to divest its stake and transfer of management control in IDBI Bank.
Chambal Fertilisers and Chemicals (CFCL): The company on Monday reported a surge in consolidated profit for the quarter ending March 31 at Rs 541.75 crore compared to the same period of the previous financial year. The company's consolidated net profit stood at Rs 201.07 crore during the corresponding quarter of 2019-20, CFCL said in a BSE filing.
(With Input from Agencies)
