Stocks in Focus on September 1: Telecom Stocks, BEML, L&T to Nestle; here are the 5 Newsmakers of the Day
Snapping a six-day streak, the domestic equity benchmarks ended sharply lower on Monday, August 31, 2020. The barometer index, S&P BSE Sensex dropped 839.02 points or 2.13% at 38,628.29. The Nifty 50 index fell 260.10 points or 2.23% at 11,387.50. But certain stocks came in news after the market was closed.
Snapping a six-day streak, the domestic equity benchmarks ended sharply lower on Monday, August 31, 2020. The barometer index, S&P BSE Sensex dropped 839.02 points or 2.13% at 38,628.29. The Nifty 50 index fell 260.10 points or 2.23% at 11,387.50. But certain stocks came in news after the market was closed. These stocks can impact the indices when it reopens on Tuesday, September 1, 2020. List of such five stocks:
Triggers: Certain events, like ONGC, Moratorium, AGR, Margin, August Auto Sales, unlock 4.0, and AGM, that can create positive/negative reactions in the share market when it opens today. Find them in detail:
Hearing in Supreme Court:
Moratorium Case: Scheduled to be heard at the Supreme Court today at 10:40 am.
AGR Case: The Supreme Court is likely to pronounce the crucial verdict on AGR case at 11:30 am. It may give a verdict on three important issues:
- The payment timelines of the adjusted gross revenue (AGR) dues at the telecom companies.
- It can take a call on whether spectrum or the right to use it can be transferred under the Insolvency and Bankruptcy Code (IBC).
- Who has to pay the arrears of the bankrupt telcos, .i.e. the companies who have been using the spectrum of the ailing telcos through either spectrum sharing or trading contracts?
Margin pledge/ replacement system: The new margin pledge rules drafted by SEBI will be effective from today. Starting today, brokers will also have to take upfront margin from investors for buying and selling in cash stocks. A penalty will be applicable from September 1 for non-upfront margin collection.
August Auto Sales Numbers: Auto sales data of August 2020 will be released today.
Unlock 4.0: New guidelines for opening up of more activities in areas outside the Containment Zones will come into effect today. All hotels/ lodges will be able to operate at 100% capacity under Unlock 4.0. Gym and cinema hall will continue to be closed. Lockdown will continue to be implemented strictly in the Containment Zones till 30th of September.
AGM Today: Annual General Meeting of companies, like Avenue Supermarts Ltd and S H Kelkar & Company Ltd, is scheduled to be held today.
JK Cement Ltd: The building material company, JK Cement on Monday reported a 61.8% year-on-year decline in profit at Rs 52.28 crore for the quarter ended June 30, 2020. It had posted a net profit of Rs 137 crore in the corresponding quarter last year. Revenue from operations dropped 28% to Rs 1,005 crore as against Rs 1,393 crore posted last year. EBITDA stood at Rs 212.5 crore, down 31% from Rs 308 crore posted in the same quarter last year. The margin fell marginally to 21% in Q1FY21 from 22% posted in Q1FY20.
BEML: BEML, the leading Defence equipment manufacturer, has bagged a prestigious order worth Rs 842 crore from Ministry of Defence for the supply of 330 High Mobility Vehicles, for Pinaka Project.
Larsen & Toubro (L&T): L&T completes divestment of the electrical & automation Business to Schneider Electric for Rs 14,000 crore in an all-cash deal. The significant and complex divestment deal was announced in May 2018.
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Nestle: Nestle Plc on Monday said that it would buy the remaining 74.4% stakes at $34.5 per share in the peanut allergy treatment maker Aimmune Therapeutics. It will acquire these stakes at $ 260 crore or approx Rs 19.158 crore. The price represents a 174% premium to Aimmune's closing share price on August 28 of $12.60, said the food giant.
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