Big day for telecom stocks: Apex Court to declare verdict

Shares of telecom companies, especially Vodafone Idea, will be in focus, as the Supreme Court will pronounce its verdict today in the adjusted gross revenue case.

The Bench of Justices Arun Mishra, S Abdul Nazeer and MR Shah will lay down the time-frame within which the telecom companies will be required to clear their AGR dues in line with the Court's October 2019 judgement.

Vodafone Idea, which is reeling under mounting losses, will decide its future course of action after the Supreme Court verdict. The Department of Telecommunications had sought a 20-year payment timeline for the payment of AGR dues by the company, but the Supreme Court rejected the proposal.

During the hearings, Tata Telecom sought a time-frame of 7-10 years for payment of dues, while Vodafone-Idea suggested 15 years. Bharti Airtel was also in agreement with Vodafone's proposal of 15 years.

However, DoT stuck to the Union Cabinet's proposal of payment within 20 years.

Brokerages may come under pressure on new margin system

Brokerage stocks Motilal Financial, Edelweiss Financial, IIFL Securities, Geojit BNP, ICICI Securities and others will come under pressure from Tuesday, as market regulator the Securities and Exchange Board of India has decided to go ahead with its new margin pledge rules from September 1.

SEBI has introduced these measures to safeguard the interest of all investors and inject a higher degree of transparency in the stock market.

According to market men, traditional brokerages with legacy systems will face huge operational challenges.

In the cash segment, brokers will have to collect an upfront margin, and they will no longer be able to use a power of attorney (PoA), which they did so far, for margin purposes.

According to brokers, many client positions off-loaded their positions on Monday on the back of additional margin requirements to trade from Tuesday. In the cash segment, around 30 per cent margin will now be required to buy or sell stocks.

Brokerages fear that the new regime provision will kill day trading volumes.

Will auto stocks revive?

Automobile majors will declare their August sales figures on Tuesday. Though most expect the sales figures of LMVs, trucks, cars and two/three-wheelers to be weak due to the Covid-19-triggered shutdown, tractor sales are likely to remain robust, given the widespread monsoon.

Any upside surprise by automobile majors will be instantly rewarded by Street players. The focus will be on Maruti Suzuki, Tata Motors, Ashok Leyland, M&M, Eicher Motors, Escorts, TVS Motor, Bajaj Auto and Hero MotoCorp. Marketmen will give greater emphasise to a sequential comparison.

New order may fire up BEML

BEML has bagged an order worth Rs 842 crore from the Ministry of Defence (MoD) for supply of 330 high-mobility vehicles for the Pinaka Project.

Pinaka is a multi-barrel rocket launcher developed indigenously for the Indian Army and involving public sector and private sector defence industries.

The multi-barrel launcher system is mounted on the rugged BEML truck, much acclaimed for its off-road mobility: it will provide the Indian Army with vital manoeuvrability on the battlefield.

This order is a big boost for BEML, which manufactures the high-mobility vehicles under the Make in India programme. The equipment will be manufactured by BEML at its Palakkad Plant in Kerala and will supply the vehicle platform to MoD in three years.

US patent booster for Zensar Tech?

Zensar Technologies, a digital solutions and technology services company, on Monday said that it has been granted a US patent for its direct conversation platform, ZenVerse.

The patent, granted by the US Patent and Trademark office (USPTO), is on the idea of ZenVerse, which is designed to be a direct platform or channel for the entire organisation to interact with the organisation's leadership, including CEO and CXOs.

These interactions are at an individual level; since inception, it has had 68 releases over 2.1 million sessions used by more than 9,000 global associates. This platform was created in-house by Zenlabs, Zensar's innovation hub, incorporating AI as its core.