Market Update for 14/07/2020: – Street-fluence

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WORLD MARKET:-

  • California has reinstated the lockdown bringing the S&P to red in yesterday’s session.
  • Relations between the U.S. and China were further strained with Washington rejecting Beijing’s claims in the South China Sea. That reversed a previous policy of not taking sides in territorial disputes in the region and escalated tensions on yet another front.
  • Singapore’s economy plunged into recession last quarter amid an extended lockdown.
  • On the economic front, China’s exports and imports rose in yuan terms in June.
  • Oil declined below $40 a barrel before an OPEC+ meeting at which the group may announce plans to start tapering historic production cuts.

WORLD EVENTS-

  • JPMorgan, Bank of America, Wells Fargo, Goldman Sachs, BNY Mellon and Citigroup start the U.S. earnings season for banks.
  • Wednesday brings the Bank of Japan’s policy decision and a Governor Haruhiko Kuroda briefing.
  • The EIA crude oil inventory report is due Wednesday.
  • China releases second-quarter GDP on Thursday as well as key economic indicators for June.
  • The European Central Bank meets to set monetary policy on Thursday, with President Christine Lagarde holding a virtual press conference afterward.
Also Read on FinMedium:  My Strategy For Dealing With FOMO

DOMESTIC EVENTS-

  • Reliance AGM is tomorrow.
  • Rossari Biotech IPO opens for the second.
  • Inflation Rate YoY for June came at 6.09%. Previous rate was 5.9%. Forecast was of 5.1%

STOCK WISE NEWS-

Motherson Sumi: Moody’s Investors Service has confirmed the company’s Corporate Family Rating (CFR) as Ba1. The outlook has been revised to negative from ratings under review. The negative outlook reflects the weak liquidity and the company’s upcoming refinancing tasks under more challenging market conditions.

Sobha: Godrej Group’s promoter entity Anamudi Real Estates increased its stake in the company to 9.99% in the June quarter from 1.08% in the March quarter.

COVID-19 Update

  • April and May saw dip in sales.
  • Inquiries at pre-Covid-19 levels from June onwards and sales too have improved.
  • Believe there is no structural long-term impact on the business.
  • Situation is dynamic with Karnataka announcing a new lockdown in Bengaluru.
  • Construction activities impacted at project sites will have adverse impact on billing.
  • Revenue recognition will be impacted as there will be delay in handing over the apartment.
  • Liquidity profile of the company remains comfortable.
  • Short-term impact on supply chain.
Also Read on FinMedium:  10 Steps To Financial Independence

Reliance: Has received investment amounts from Vista Equity, KKR, Mubadala, ADIA and TPG.

HDFCBank: Issue regarding Auto Loan discrepancy will have no effect on Loan Book.

AARTI INDUSTRIES: Aarti Surfactants To List Today. It is the home and personal care business. Shareholders of Aarti Industries were allotted 1 Share of Aarti Surfactant for every 10 shares held in company.

BIOCON: Biocon on Monday said it will launch biologic drug Itolizumab for the treatment of moderate to severe COVID-19 patients at a price of around Rs 8,000 per vial.

DEFENCE SECTOR:

  • Proposal to increase FDI limit in defense ready
  • Plan to increase FDI limit from Automatic Route
  • Final approval will be taken from cabinet soon
  • Proposal to increase FDI limit from 49% to 74%

Govt imposes 10% import duty on Polybutadiene Rubber imported from Korea as a provisional bilateral safeguard measure. Finance Ministry issues notification. Provisional duty has been imposed till 28th January 2021. Application for the duty was filed by Reliance.

VEDANTA: Hindustan Zinc will raise funds to help delist Vedanta from Indian bourses.

FII bought 222 cr
GOLD- 1800
CRUDE- 41.88
DXY- 96.5
Copper (LME)6,571.00 +2.48%
Aluminum (LME)1,690.00 +0.09%
Zinc (LME)2,261.50 +3.10%



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Akshada Deo
Akshada posts the daily market updates in a summarized format. Stock Market, Literature, Music, and Design are her passions.
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