Stocks to watch today: Markets are likely to start trading on a lukewarm note and then look to key index heavyweights for directional movement given the news flow at most counters. At 07:00, SGX Nifty futures were quoted at 15,700, indicating an opening loss of around 50 points.
Meanwhile, the following stocks should see action in trading on Monday.
Metals, Oil producers: The recently announced special tax on exports of steel, iron ore and petroleum products, as well as a windfall tax on crude oil producers are expected to affect overall corporate profits in FY23 Mining and metals and crude oil producers – such as Tata Steel, JSW Steel, Vedanta, Hindalco, ONGC and Reliance Industries – led corporate earnings growth in FY22 and any decline in their earnings due to regulatory changes is likely to lower earnings for FY23. READ THE ANALYSIS
InterGlobe Aviation (IndiGo): More than half of flights operated by IndiGo were delayed on Saturday after a large number of the airline’s cabin crew members called in sick at the last moment, amid a massive recruitment drive by competitors Air India, Jet and Akasa owned by Tata. READ MORE
Reliance Industries (RIL): RIL’s institutional shareholders are awaiting major announcements from the company, including a timetable for the listing of its telecommunications and retail subsidiaries. They expect that to unlock value for the company, which saw a sharp drop in market valuation on Friday. READ MORE
IT inventory: Amid fears of a likely recession in the United States and Europe and rising inflation around the world, first-quarter FY23 results in India’s IT services sector will be closely watched for management comments on demand outlook. With supply-side challenges yet to be resolved, margins will be under pressure due to higher retention costs and shifts. However, the silver lining might be a rupee down. READ THE ANALYSIS
HDFC, HDFC Bank: HDFC’s proposed merger with its banking subsidiary HDFC Bank, the largest transaction in Indian corporate history, has received stock exchange approval. The merger still requires a series of approvals from financial industry regulators, including RBI and CCI, before being passed to NCLT and shareholders. READ MORE
Birlasoft: The company has set July 15 as the record date for the proposed takeover worth Rs 390 crore. The company’s board had approved the buyback of up to 78 lakh shares at Rs 500 each. The stock last traded at Rs 350.
Bharat’s Forge: The auto parts maker and its subsidiary BF Industrial Solutions have successfully completed the acquisition of Coimbatore-based JS Autocast Foundry India. The enterprise value of the transaction was Rs 489.63 crore.
Coal India (CIL): The state-owned company said its coal production rose 29 percent year-on-year to a record 159.8 MT in April-June this fiscal year. CIL supplied an average of 1.684 MT of coal per day to the electricity sector during the June quarter of 2022, compared to a daily requirement of 1.650 MT.
Shriram Transport Funding: Shriram Group is on track for technology integration and merger between Shriram City Union Finance Ltd (SCUF) and Shriram Transport Finance Ltd (STFC). The company laid the groundwork for the super app “Shriram One” to start the process of training 50,000 employees.
State Bank of India (SBI): The public bank plans to focus more on personal and agricultural gold lending after lending over Rs 1 trillion in this segment till June 2022. The bank’s agricultural gold loan portfolio is rose to Rs 73,601 crore in FY22 from Rs 66,878 crore in FY21. READ MORE
NTPC: The company has informed BSE that its 100 megawatt (MW) floating solar PV project in Telangana is fully operational.