Stocks in Focus on March 18: Yes Bank, IRCTC, IndusInd Bank, Airline to Telecom Stocks; here are expected 5 Newsmakers of the Day

Stocks in Focus on March 18: Reversing the intraday gains, the domestic stocks market fell sharply in the late trade on Tuesday, March 17, 2020, amid fears of a likely global recession following the coronavirus (COVID-19) outbreak. Late sell-off brought Nifty below 9,000-mark. But certain stocks came in news after the market was closed and can impact the indices when it reopens on Wednesday, March 18, 2020. List of such five stocks: 

Airline Stocks/IRCTC: Following the concerns about the spread of coronavirus that is hurting demand in fights, the low fare carrier, GoAir, has asked some of its employees to go on a rotational leave without pay. The short term and temporary rotational leave without pay program have been initiated not only to help the company counter the short term reduction in capacity, but it also makes sure that a cross-section of our employees stays away from the workplace to ensure business continuity. The airline is also suspending its international operations between March 17 and April 15. Besides, IndiGo has waived extra hours of benefits to pilots and informed them that they may no longer be required to do extra hours. The airline is withdrawing the incentive of giving compensation in lieu of the leave. 

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Similarly, IRCTC will be in focus today as the Indian Railways has cancelled 76 trains as a precaution against the spread of coronavirus and due to low occupancy. As per reports, central railways cancelled 23 trains, south-central railways has cancelled 29 trains, western railways has cancelled 10 trains, southeastern railways has cancelled 9 trains while 5 trains have been cancelled in northern railway zone.

Yes Bank: The RBI imposed a moratorium on Yes Bank will be lifted today and the private lender will restore full banking services after 6 pm. With moratorium being lifted, the crisis-hit Yes Bank might see a heavy withdrawal of deposits by customers. Besides, the troubled private lender Yes Bank will be dropped from benchmark index Nifty 50, banking index Nifty bank and other Nifty indices from March 19, 2020. Shree Cement will replace the private lender in Nifty 50 and Nifty bank index. 

Banking Stocks In Focus: The Reserve Bank of India (RBI) will conduct the fifth tranche of the long-term repo operations (LTROs) for Rs 25,000 crore from today, March 18, 2020, in its bid to secure adequate liquidity to the troubled financial markets. The central bank has already conducted four such operations of Rs 25,000 crore each since February 14 with huge success as the issue has been overbought multiple times. The RBI on March 16, 2020, announced its plan to incuse additional LTRO worth Rs 1 lakh crore. 

Telecom Stocks in Focus: The Supreme Court will hear the Adjusted Gross Revenue (AGR) matter today over allowing telecom companies to pay their dues over 20 years. Besides, the promoter of the Vodafone Idea has planned to invest $1.5 billion in the company. The investment could be made after getting relief on AGR and the final decision from the court. 

IndusInd Bank: The private lender yesterday addressed the rumours on its financial health and said that the bank is financially strong, well-capitalized, profitable, and a growing entity with strong governance. It said, the bank’s Gross NPA in December quarter stood at 2.18%, which was the second-lowest in the industry amongst large private sector banks. We expect current quarter Gross NPA to be pretty much in line with that of last quarter. It said, its Real Estate Developer book and Gems and Jewellery financing portfolio had zero Gross NPA, while the commercial vehicle and microfinance portfolios remain steady and range bound.