Stocks

Companies and stocks to track today: August 4, 2020

K. S. Badri Narayanan | Updated on August 04, 2020 Published on August 04, 2020

Some of the scrips that will likely see some action

Will mood swing in favour of YES Bank after Moody's upgrade?

Shares of YES Bank may attract investors' attention after global rating agency Moody's on Monday upgraded its ratings to B3 and gave it a stable outlook after its successful public offer. "YES Bank's successful equity capital raise of ₹15,000 crore has bolstered its solvency and is the main driver of the rating upgrade," Moody's said in a statement.

It has also upgraded the Bank's long-term foreign and local currency bank deposit ratings to B3 from Caa1, and its foreign currency senior unsecured MTN program rating to (P)B3 from (P)Caa1. Besides, Moody's has upgraded the lender's long-term local and foreign currency Counterparty Risk Ratings (CRR) and long-term Counterparty Risk (CR) Assessment to B3 from Caa1 and B3(cr) from Caa1(cr) respectively.

The outlook on YES Bank's ratings is changed to stable from positive, Moody's said.

The rating agency, however, noted that Yes Bank continues to face the risk of a further deterioration in asset quality due to the ongoing economic disruption caused by the coronavirus outbreak.

Focus on RBI's monetary policy meet

The three-day Monetary Policy Committee (MPC) meet of Reserve Bank of India commences today (August 4). The MPC will announce its policy stance decisions on August 6. Amid the demand for one-time loan restructuring by industry leaders, many experts have predicted the RBI could decide against rate cut this time.

Many experts believe the RBI could go for another repo rate cut of at least 25 bps on August 6 though they are of the opening that chances for a rate cut are very less time, given the ample liquidity and high inflation.

The MPC in its last policy meeting in May had decided to cut key repo rate by 40 basis points to 4 per cent from 4.4 per cent earlier.

Shares from banks, NBFCs, rate-sensitive sectors such as automobile, real estate and the consumer will remain the focus.

Key results: Tata Consumer, Godrej Consumer, Gujarat Gas, PTC India Financial, Narayana Hrudayalaya, Unichem Lab

Around 50 companies declare their quarterly results on Tuesday. Among them, the most actively tracked companies include Allied Digital, Apollo Pipes, Astral Poly, Bhansali Engineering, Century Enka, Dixon Technologies, Eris Lifesciences, Geojit Financial Services, Godrej Consumer, Gujarat Gas, Gujarat Sidhee Cement, Grindwell Norton, Hikal, Igarashi Motors, Jindal Saw, Neuland Labs, Narayana Hrudayalaya, PTC India Financial, PI Industries, Sun Pharma Advanced, Sundaram Finance Holdings, Tata Consumer, Thomas Cook, Unichem Lab and Varun Beverages.

Eyes on Spencer's ₹80-crore right issue

The ₹80-crore right issue of Spencer's Retail, an RP-Sanjiv Goenka Group company, will open August 4 and close on August 18. The company offers 1.06 crore shares on rights basis for cash at ₹75 a share. Two rights shares were being offered for every 15 shares held by the shareholder as on July 29, which is the record date.

The company intends to utilise the net proceeds from the issue to meet its working capital needs and other general purposes.

Analysts and investors will closely monitor the response to the issue.

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Published on August 04, 2020
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