Getting adequate interest from bidders. Government will have no board seat post divestment, says BPCL
Here’s more on Vodafone Idea’s rebranding
Vodafone Idea on Monday launched a unified brand “Vi”, marking the completion of the merger between two telecom companies.
Launching the new brand, Ravinder Takkar, MD & CEO, Vodafone Idea Ltd said, “Vodafone Idea came together as a merged entity two years ago. We have, since then focussed on integrating two large networks, our people and processes. And today I am delighted to present Vi, a brand that will bring important meaning to lives of our customers.”
Takkar further added, “The brand integration not only marks the completion of the largest telecom merger in the world but also sets us on our future journey to offer world class digital experiences to 1 Billion Indians on our strong 4G network.”
Photos connected to the branding exercise were already doing the rounds of Twitter showing stores being revamped with the new VI logo. Here’s more
Buzzing | Stock price of Man Industries rallied over 4 percent after the company bagged orders from Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) for Rs 370 crore.
Yash Gupta, Equity Research Associate, Angel Broking on Happiest Mind Technologies IPO
At upper price band it is offered at 23.6x FY2020 EPS. Considering the very high exposure to digital services and strong promoter background we expect that the company will continue to grow at a faster pace as compared to similar sized companies and therefore should command a premium valuation to the peer group. We would therefore recommend investors to Subscribe to the IPO.
COVID-19 has led to a delay in recovery, says Yes Bank’s Prashant Kumar
Yes Bank’s management team has been on a recovery drive. From attaching properties of diamond traders to going after honchos of beleaguered NBFC’s, the bank is leaving nothing to chance. Speaking to CNBC-TV18, Prashant Kumar, MD & CEO, Yes Bank said that the recovery target is there for the entire stressed book but the pandemic has led to a delay in recovery. “Recovery target would be for the entire stressed book; it is an issue about the timing. Because of COVID, what we are seeing is that the targets which we were expecting during the current financial year—that has slowed down a bit. But I think we are absolutely on track and during the current year and going forward I think we will be able to recover,” he said. More here
Happiest Minds Technologies IPO opens today: Should you subscribe?
The initial public offer (IPO) of Bengaluru-based IT services provider Happiest Minds Technologies opened today with a price band at Rs 165-166 per share. The issue will close on closes on September 9 and the shares will be listed on September 17. The Rs 702 crore-IPO comprises of fresh issue of Rs 110 crore and an offer for sale aggregating upto 3.56 crore equity shares. Most analysts are bullish on the company since 97 percent of its business comes from the digital services segment. They advise subscribing to the issue based on robust financial growth, attractive valuations and strong management. More here
JUST IN: Steel Strips gets export orders of nearly 12,000 wheels for US & EU trailer market, to be executed in the month of October from its Chennai plant
Sterling & Wilson up 6% on order wins worth Rs 1,600 crore in Australia
Shares of Sterling & Wilson Solar climbed 6 percent to Rs 285 on the BSE on Monday after the company announced that it has signed orders worth around Rs 1,600 crore (AUD 300 million) in Australia. “The company along with its branch and Australian subsidiary has bagged two large scale solar projects in the country which will have an installed capacity of over 300 MW. The new projects have been secured from global independent power producer (IPPs), the work for which is expected to commence immediately,” Sterling & Wilson Solar said in a press release.
Vodafone Idea to launch a new brand identity Today, any announcement on fund raising unlikely
Market Watch: Nooresh Merani, nooreshtech.co.in
“Short Hero MotoCorp wherein a stop loss could be placed at Rs 2,970 and a target price of Rs 2,750. Looking at a shift in terms of leadership from auto now becoming laggard going forward.”
“Buy Zee Enterprises wherein we look towards a target price of Rs 240 and a stop loss at Rs 213. The media index after a long time has crossed above the 200 day moving average as well as it has crossed the recent highs. So, this is an interesting space to look out for.”
Gold gains as global growth worries support demand
Gold edged higher on Monday after weak US data raised concerns over a quick economic rebound from the coronavirus-led slump and cemented hopes that lower interest rates would last longer. Spot gold was up 0.2 percent at USD 1,935.50 per ounce by 0341 GMT, moving further away from a one-week low of USD 1,916.24 touched on Friday. US markets are shut for the Labor Day holiday on Monday. US gold futures rose 0.5 percent to USD 1,943.40. “The general theme from last week’s US jobs report showed that the recovery is continuing to slow. So really, the payroll gains were weak in the overall context,” said Stephen Innes, chief market strategist at financial services firm AxiCorp. “Also, the lower for longer interest rates narrative continues to chime well for the gold bulls right now.”
China’s exports rise at fastest pace in nearly 1-1/2 years as economies reopen; imports slip
China’s exports rose for the third consecutive month in August, eclipsing an extended fall in imports, as more of its trading partners relaxed coronavirus lockdowns in a further boost to the recovery in the world’s second-biggest economy. Exports in August rose a solid 9.5 percent from a year earlier, customs data showed on Monday, marking the strongest gain since March 2019. The figure also beat analysts’ expectations for 7.1 percent growth and compared with a 7.2 percent increase in July. Imports however slumped 2.1 percent, compared with market expectations for a 0.1 percent increase and extending a 1.4 percent fall in July.
Vodafone Idea to make major announcement today, stock surges 10%
Vodafone Idea’s shares rallied 10 percent intraday on Monday as the company is set to make a major announcement today at 11:45 am. The stock gained as much as 10 percent to Rs 13.25 per share on the NSE. Reports suggest that Verizon and Amazon may invest over $4 billion in Vodafone Idea. In an exchanges filing, the telecom operator said while the company constantly evaluates various opportunities for enhancing the stakeholders’ value, there is no such proposal being considered at present. On September 6, Vodafone India’s Twitter handle teased the announcement on Twitter, referring to it as the ‘big day’, which has raised the suspicion at the Street.
Rupee opens mildly lower Vs Friday’s close.
Tata Motors MD calls for collaboration among stakeholders amid COVID-19 crisis
Calling for a collaborative approach among stakeholders, Tata Motors MD and CEO Guenter Butschek on Saturday said there are new challenges for the automotive industry in the restart phase of the economy. “Now that we are in the restart phase, new challenges like growing virus cases and acute shortage of labour have come up. The end of the lockdown doesn’t necessarily mean that we are post-COVID because it is still there, it can possibly create more intermittent disruptions,” Butschek said. He was speaking at the 60th annual convention of the Automotive Component Manufacturers Association of India (ACMA) in New Delhi on Saturday.
Top brokerage calls for today
Jefferies on HDFC Bank: The brokerage has a ‘buy’ rating on the stock with a target at Rs 1,350 per share. Law firms in US filed a class action suit, the brokerage stated but added that nocase has been filed yet as firms are soliciting interest from investors.
Morgan Stanley on BPCL: The brokerage is ‘overweight’ on the stock with a target at Rs 517 per share. It added that the sale, if executed well, could lead to a re-rating of the multople for the industry.
Kotak on NALCO: The brokerage maintains a ‘sell’ call on the stock with a target at Rs 26 per share. It said that the company’s alumina margin was impacted by weak prices and it sees downside risks to current price.
CLSA on Coal India: The brokerage maintains ‘buy’ call on the stock but cut its target to Rs 155 per share from Rs 160 earlier. It added that risk-reward is attractive at current levels.
CLSA on Consumer: As per the brokerage, competitive intensity in AC firming up and market consolidation is unlikely to challenge Voltas’ leadership. It added that it would be difficult for Havells to regains its market leading position.
Nifty Gainers: Bharti Infratel gains after Vodafone Idea approves fund raising
Opening Bell: Sensex, Nifty start the week on a mixed note; financials drag
Indian indices started the week on a mixed note following the decline in Asian peers after the selloff continued in Wall Street. At 9:18 am, the Sensex was down 31 points at 38,325 while the Nifty added 25 points at 11,359. Losses in financial stocks were capped by gains in index heavyweights like RIL, Asian Paints and TCS. Broader markets were also up around half a percent. Among sectors, Nifty Bank and Nifty Fin Servcies fell around 0.5 percent each while the IT, FMCG, and Auto indices rose around 0.2 percent each.
Market Watch: Prakash Diwan, Market Expert On Tata Motors DVR
The stock has run up in anticipation of a lot of repair that they are in a position to do or they have announced as intend to do. So you cannot run a hope trade for too long. I do understand there is a scrappage policy which might infuse some life in the domestic commercial vehicle (CV) cycle but the contribution of the CV business itself to Tata Motors as a real scheme of things is not too high. So their businesses are so spread out and none of the geographies are giving you that conviction that things are back with a bang. So it is plateauing back to normalcy and in that process its move that we have already seen in the last month to a month and a half is significant. So I don’t think I would want to initiate a buy recommendation as yet. In fact, it has been a relief for some people and a lot of people would have exited who were frustrated with the kind of performance that this stock did but a fresh entry could still probably be patiently waited upon.
Asian shares start cautiously amid elevated valuations, oil skids
Asian shares started Monday on the backfoot as investors grapple with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply. Japan’s Nikkei was down 0.4 percent ahead of a heavy week of macroeconomic data with figures on household spending, current account and gross domestic product due on Tuesday. Australian shares slipped 0.4 percent while South Korea and New Zealand’s benchmark index were off 0.1 percent each. That left MSCI’s broadest index of Asia-Pacific shares outside Japan barely changed after two straight days of losses toppled it from a 2-1/2-year peak last week. US stock futures opened in the red, with E-minis for the S&P 500 down 0.3 percent and Nasdaq futures sliding 1.1 percent. US markets will be closed on Monday for Labor Day.
Nifty could test lower end of range of 10,500 before inching back higher, says Laurence Balanco of CLSA
CNBC-TV18’s top stocks to watch out for on September 7
Vodafone Idea: The telecom company is going to make a major strategic announcement today at 11:45 am on the lines of the brand relaunch.
HDFC Bank: Jefferies remains concerned on the lender receiving a class suit action by the US law firms over vehicle financing business. Clarity on case will be key to abating investor concerns & rerating, said the brokerage.
Maruti Suzuki: A Performance Linked Incentive (PLI) scheme for export promotion is needed to generate demand, said Kenichi Ayukawa, MD & CEO, Maruti Suzuki India and SIAM President. We are eagerly waiting for GST reduction, added Ayukawa.
Oil drops more than $1 after Saudi price cuts, demand optimism fades
Oil prices dropped more than USD 1 a barrel on Monday, hitting their lowest since July, after Saudi Arabia made the deepest monthly price cuts for supply to Asia in five months as optimism about demand recovery cooled amid the coronavirus pandemic. Brent crude was at USD 41.75 a barrel, down 91 cents or 2.1 percent by 0000 GMT, after it earlier slid to USD 41.51, its lowest since July 30. US West Texas Intermediate crude skidded 91 cents, or 2.3 percent, to USD 38.86 a barrel. Front-month prices initially hit a low of USD 38.55 a barrel, a level not seen since July 10.
JUST IN: Sources say Vodafone Idea likely to announce new branding today
Take a look at some other global cues for the day
HDFC disburses subsidy to over two lakh first-time homebuyers under PMAY scheme
Housing finance firm HDFC Ltd on Wednesday said it had disbursed over Rs 4,700 crore subsidy to over two lakh families under the government’s flagship scheme, Pradhan Mantri Awas Yojana (PMAY) credit-linked subsidy scheme (CLSS). Loans worth Rs 47,000 crore have been approved under the scheme for homebuyers belonging to the economically weaker section (EWS), low-Income group (LIG) and middle-income group (MIG), the firm said in a statement. The CLSS was introduced in June 2015 under PMAY for home loans to customers from the EWS, LIG segments and was extended to the MIG from January 2017.
Eight of top-10 valued firms lose Rs 1.11 lakh crore in market cap, ICICI, RIL worst hit
Eight of the 10 most valued companies witnessed a total loss of Rs 1,11,799.05 crore in their market valuation last week, with ICICI Bank and Reliance Industries Limited emerging as leading losers. Tata Consultancy Services and HDFC Bank were the only gainers among the 10 most valued listed firms. Last week, the BSE Sensex plummeted 1,110.13 points or 2.81 percent amid a global sell-off and weak economic data. The market capitalisation of ICICI Bank tumbled Rs 25,476.75 crore to Rs 2,57,073.30 crore. The valuation of Reliance Industries Limited (RIL) tanked Rs 24,216.53 crore to Rs 13,16,947.89 crore. HDFC’s market cap dropped by Rs 20,150.82 crore to Rs 3,17,321.63 crore and that of Kotak Mahindra Bank by Rs 17,642.8 crore to Rs 2,72,815.29 crore.
First up, here is quick catchup of what happened in the markets on Friday
Indian shares ended over 1.5 percent lower on Friday after a selloff on Wall Street rippled across the Asian markets, with almost all major sector indices trading lower. The Sensex ended 634 points lower at 38,357 while the Nifty lost 193 points to settle at 11,334. Indian benchmarks also ended lower for the week after two weeks of gains, down around 2.5 percent. On the Nifty50 index, Maruti was the only stock that ended in the green. Tata Steel, Axis Bank, Adani Ports, JSW Steel, and NTPC led the losses. Broader markets were also negative for the day with Nifty Midcap and Nifty Smallcap down 1.5 percent and 1.1 percent, respectively.
Welcome to CNBC-TV18’s Market Live Blog
Good morning, readers! I am Pranati Deva the market’s desk of CNBC-TV18. Welcome to our market blog, where we provide rolling live news coverage of the latest events in the stock market, business and economy. We will also get you instant reactions and guests from our stellar lineup of TV guests and in-house editors, researchers, and reporters. If you are an investor, here is wishing you a great trading day. Good luck!
