Stocks in Focus on July 2: Domestic stocks markets ended with strong gains on Wednesday, July 1, 2020. Positive Asian cues and recovering domestic macro data cheered investors. The barometer S&P BSE Sensex gained 498.65 points or 1.43% at 35,414.45. The Nifty 50 index jumped 127.95 points or 1.24% at 10,430.05. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Thursday, July 2, 2020. List of such five stocks:
Triggers: There are certain events, like weekly expiry on Nifty & Bank Nifty, RBI’s special OMO, Board meet at Axis Bank, Tata Power Board meet and unemployment data of the US that can either create positive/negative reactions in the markets. Find the details:
Weekly Expiry of Options contract: Weekly index option contracts will expire today on Nifty and Bank Nifty.
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RBI’s OMO: RBI’s special OMO (Open Market Operations) will worth Rs 10,000 crore will open today. The RBI undertakes ‘OMO’ to manage yields in the bond market.
Axis Bank: Axis Bank board is scheduled to meet today to explore the option of raising funds by issue of equity shares/ depository receipts or any other instruments or securities representing either equity shares and/or convertible securities linked to equity shares including through qualified institutions placement (QIP)/American Depository Receipts (ADRs)/Global Depository Receipts (GDRs) program, preferential allotment.
Tata Power: The Board of Tata Power will meet today to consider the proposal for raising funds by way of issue of one or more instruments including equity shares, convertible securities of any description or warrants or debt securities.
Unemployment Data of US: The weekly unemployment data in the US will be released today.
Auto sales Numbers: Indian automakers on Wednesday reported their sales numbers for June, amid supply-chain constraints.
Eicher Motors (Royal Enfield) (YoY): Eicher Motors Ltd has announced the sales figures of Royal Enfield motorcycles for June 2020. It reported a 35% year-on-year decline in the sales in Royal Enfield to 38,065 units in June 2020 against 58,339 units sold in June 2019. The export also saw a steep decline of 52% at 1,555 units compared to 3,257 units in June 2019.
Ashok Leyland: The home-grown commercial vehicle manufacturer, Ashok Leyland has registered 81% decline in total sales in June 2020. It sold 2,394 units in June 2020 as compared to 12,810 units sold in June 2019.
Tata Motors: Tata Motors has released the domestic sales figure for Q1FY21 and reported 82% decline in sales to 23,845 units. It sold 1.3 lakh units in the corresponding quarter last year.
TVS Motors: TVS Motors has registered a 33% decline in total sales in June 2020. It sold 1.98 lakh units in June 2020 as compared to 2.97 lakh units sold in June 2019. Exports also declined to 53,123 units from 69,990 units sold last year in June.
NBFC/HFCs in Focus: The Reserve Bank of India (RBI) on Wednesday said the government of India has approved a special liquidity scheme for non-banking finance companies (NBFCs) and housing finance companies (HFCs) to improve their liquidity position to avoid any potential systemic risks to the financial sector. RBI laid out eligibility criteria for such special liquidity scheme and it includes registered NBFCs, micro-finance institutions (MFIs) and HFCs under respective laws. As per the Government decision, SBICAP which is a subsidiary of the State Bank of India has set up an SPV (SLS Trust) to manage this operation.
Pfizer Ltd: A COVID-19 vaccine developed jointly by Pfizer Inc and German biotech firm BioNTech has shown positive in preliminary results and was found to be well tolerated in early-stage human trials.
Divis Laboratories: SEBI on Wednesday issued an order against CFO of Divi’s Lab and his relatives/ connected persons for dealing in shares of the company based on UPSI (Unpublished Price Sensitive Information) relating to USFDA approval – immediate impounding of Rs 96.68 lakh + additional regulatory action to be taken by SEBI. SEBI had conducted an investigation into suspected insider trading activities of certain entities in the scrip of Divis Laboratories Limited for the period July 07 to July 10, 2017. The case is related to the lifting of the import alert 99-32 on company’s Unit-II at Visakhapatnam.