- The U.S. ended a pact with Hong Kong on extradition.
- A drop in S&P 500 futures signalled Wednesday’s weakness may continue after the Fed noted the health crisis would “weigh heavily” on economic activity and repeated its view that the path of the recovery would depend on containment of the virus.
- Fed officials said the virus was posing a considerable risk to the economic outlook over the medium term.
- The Federal Open Market Committee next gathers on Sept. 15-16.
- Democratic and Republican leaders are hinting that they are looking for a path toward reviving stalled negotiations on the next round of pandemic relief — even as both sides remain far from a deal. Any accord is still likely to wait until September despite the fact that the U.S. economy is limping along with many businesses still struggling and millions of Americans out of work.
- Oil slipped from a five-month high as the OPEC+ alliance urged members to adhere to limiting output as the coronavirus pandemic threatens a demand recovery.
STOCK WISE NEWS-
State Bank of India: Raised Rs 8,931 crore in tier-II bonds. The bonds with a maturity of 15 years were raised with a coupon rate of 6.8% and credit spread stood at 35.5 basis points over the corresponding government security yield. The total issue was for Rs 10,000 crore with a base issue size of Rs 2,000 crore.
Titan: Fully hedged with gold on lease and gold bought from stock markets. The company said that the ineffective hedge loss due to mismatch in sales quantity will be reversed subsequently with a corresponding reversal of stock gain accrued in the first quarter of fiscal 2021.
NTPC: Said that it would be able to reduce the transportation cost of coal to fuel to its NTPC Kudgi Super thermal power station in Karnataka, to around Rs 200-500 per metric tonnes thereby bringing down the cost of electricity generation, with a newly constructed bridge.
Solara Active Pharma Sciences: Appointed Subhas Anand as the new CFO. Subhas Anand was the ex-CFO and President at PI Industries.
CLSA On Indian I.T.-
- Re-rating expected to drive incremental returns PE expansion to drive the next rally in I.T. stocks
- Accelerated digital/cloud adoption, demonstrated earnings defence, attractive free cash flow yields can drive a re-rating
- Earnings upgrade cycle can moderate due to elevated expectations post Q1 results beat Infosys, HCL Tech remain preferred picks
- Find TCS attractive after recent underperformance.
CLSA On Vedanta:
- Outperform rating maintained Price target raised to Rs 133 from Rs 105
- Delisting process on track
- Can offer a price of Rs 128 per share, though the price discovered by a reverse book building and the final delisting price can be different Assign a lower multiple to Hindustan Zinc to factor-in partial control and a holding company discount Raise FY21-23CL consolidated
- Assign a lower multiple to Hindustan Zinc to factor-in partial control and a holding company discount Raise FY21-23CL consolidated
- Ebitda forecast by 9%-21% as we raise our commodity price estimates.
Credit Suisse on Steel:
– Indian HRC’s price now at 14-month high
– But regional export prices moved up further on Aug 20
– So domestic prices still 9% cheaper than Chinese imports
– Believe there is room for hikes by Indian steel mills in Sep20
JSW Steel: Promoters released a pledge of 3.25 crore shares between August 13-14.
Tata Power: Outlines plans for 15% revenue growth and 25% for profit CAGR from FY20-FY25
AGR court case continues
FII bought 459 cr
DXY- 93 (Spike from 92.3 yest)