Stocks in Focus on April 3: The domestic stocks markets closed in a red on Wednesday, April 1, 2020. But certain stocks came in news after the market was closed and can impact the indices when it reopens on Friday, April 3, 2020. List of such five stocks:
Auto Stocks in Focus: Automobile companies have reported a steep drop in sales March 2020 because they were forced to suspend operations amid a nationwide lockdown to contain the spread of the coronavirus pandemic.
Tata Motors: Has reported an 84% decline in total sales in March 2020 – year-on-year (YoY) – to 11,012 units. Commercial vehicle sales were down by 87% to 7,123 units, while passenger vehicle sales came down by 68% to 5,676 units.
a. Hero MotoCorps: Total sales dropped by 42% – year-on-year (YoY) – to 3.3 lakh units. Exports dropped by 35% to 17,962 units;
b. Eicher Motors: Motorcycles sales dropped by 41% – year-on-year (YoY) – to 35,814 units;
c. TVS Motors: Total sales declined by 56% – year-on-year (YoY) – to 1.44 lakh units in March 2020. March sales stood at 1,44,739 units against 3,25,323 units YoY; and
d. Atul Auto: Total sales dropped by 76.3% – year-on-year (YoY) – in March to 1.091 units.
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Aurobindo Pharma: Hyderabad-based generic drugmaker Aurobindo Pharma calls off $ 1 billion purchase deal of the US dermatology business and three manufacturing units of Sandoz as it did not get timely approval from the US Federal Trade Commission (US FTC).
Adani Ports/Snowman Logistics: Adani Logistics, a wholly-owned subsidiary of Adani Ports and Special Economic Zone Limited (“APSEZ”), completes 26% stake purchase of Bengaluru-based Snowman Logistics. The deal was put through at Rs 44 per share. Apart from this, the company is in talks to buy 40.25% stakes of Snowman from Gateway Distriparks Ltd.
ONGC: Moody’s Investors Service has downgraded Oil and Natural Gas Corporation Ltd.’s (ONGC) local and foreign currency issuer ratings to Baa2 from Baa1.
RBL Bank: The bank in a statement to the stock exchanges ahead of its results has said that it had a strong operating performance in the quarter ended March with net interest margin (NIM) at an all-time high and liquidity ratio at 127 per cent. This is despite losing 8 per cent of its deposits during the quarter. It said the deposit outflow was primarily due to a pull-back from government entities while adding that retail deposits remain stable. It added the retail deposit proportion and CASA (current account and savings accounts) ratio is higher sequentially as of March 31, 2020, and cost of deposits and cost of funds lower quarter-on-quarter.