A gap-down opening seems to be in the offing for the Indian markets today. At 7:30 AM, the SGX Nifty was trading over 100 points lower at 11,290 levels after similar trends in the global markets. Wall Street finished lower overnight after the Federal Reserve in the minutes of its July meeting, raised concerns that the US economic recovery from the devastating effects of the pandemic faced a highly uncertain path. Consequently, the Dow Jones closed 0.3 per cent lower, the S&P 500 lost 0.4 per cent, and the Nasdaq dropped half a per cent.
Asian markets followed the Wall Street’s dour lead. Australian ASX 200 dipped 0.9 per cent, Japan’s Nikkei fell 0.7 per cent and Hong Kong’s Hang Seng dropped over 1 per cent in early deals.
Meanwhile, in the AGR case hearing yesterday the Supreme Court said that telecom firms only have a right to use spectrum and it is not an asset they own to which Reliance Communications told the apex court that it will be forced to go into liquidation if spectrum is not allowed to be sold under the insolvency process. The next hearing of the case is to be held today at 2 PM and the telecom and bank stocks will continue to remain in focus.
Corporate results, meanwhile, will continue to pour in. A total of 58 companies including Indian Overseas Bank and McDowell Holdings are scheduled to announce their June quarter earnings today. Investors would also track minutes of the Reserve Bank of India’s August monetary policy meeting, scheduled to be released later today.
On the Covid-19 front, India recorded 65,022 coronavirus cases in the past 24 hours, taking its total past 28 lakh. With 1,089 fatalities reported on Wednesday, the country’s death toll surged to 53,994.
Sebi has sought the market’s feedback on whether to increase the minimum free float for companies relisting after undergoing the corporate insolvency resolution process. It has also called for greater disclosures to ensure better price discovery and transparency. The move is triggered by the extreme movement in the Ruchi Soya Industries’ stock which surged more than 450 times after it got relisted following the acquisition by Pantanjali Ayurved under the CIRP.
Indian banks may restructure loans worth Rs 8.4 trillion to manage financial stress caused by the coronavirus pandemic, India Ratings has said. Almost 60 per cent of the total credit is already susceptible to slip into NPA category after lockdowns to contain the coronavirus devastated the economy, in absence of restructuring, it said.
The State Bank of India is looking to raise Rs 8,931 crore through the country’s biggest offering of local-currency tier-2 bonds yet as the lender boosts its capital buffers amid the worsening health of domestic companies. And, L&T Finance Holdings is exploring a plan to raise around Rs 3,367 crore through a rights issue, sources have told Business Standard, although no final decision has been made regarding the amount to be raised or the share sale’s timing.
According to media reports, the government is gearing up to sell stake in IRCTC and HAL via offer for sale. Stake sale in HAL is expected to take place this month itself, while the government has invited bids for appointment of Merchant Bankers and Selling Brokers to help in OFS of IRCTC.