Stocks to watch: Aurobindo Pharma, DHFL, Zee, Minda Industries, BPCL3 min read . Updated: 09 Oct 2019, 09:00 AM IST
- Maruti Suzuki has cut its production by 17.48% in September
- The promoters of Zee increased their total pledge to 90%
Here is a list of top 10 stocks that be in focus on Wednesday:
DHFL: The troubled housing-finance company (HFC) has been hit by another setback after Central Depository Services (India) Ltd (CDSL) froze shareholding of the promoters following delay in announcement of the company's financial earnings for the June quarter. However, sources close to the company said the results are expected to be announced in the next few days. The HFC is expected to soon call for a board meeting to announce the quarterly results.
Aurobindo Pharma: Shares of the company slumped, ending down more than 20% on Monday, after the US Food and Drug Administration (FDA) made adverse observations on the drugmaker for not following adequate manufacturing processes in its Polepally plant in Telangana. The regulator also said the company did not fully follow responsibilities and procedures for quality control while production.
Tata Motors: The stock will be in focus as subsidiary Jaguar sold 16,235 units in September, down 15.2% year-on-year. However, sales of Land Rover in September rose 6.9% on year to 40,597 units. Second quarter Jaguar Land Rover sales fell 0.7 percent year-on-year to 1.28 lakh units. Sales in China continued to recover in the September quarter.
Maruti Suzuki: The auto major cut its production by 17.48% in September, making it the eighth straight month when the country's largest car maker lowered production. The company produced a total of 1,32,199 units in September compared with 1,60,219 units a year ago. In September, passenger vehicle sales fell 17.37% on year.
Zee Entertainment: The promoters of the media giant increased their total pledge to 90% along with total loan liability of ₹7,000 crore. The stock has lost half of its value in the past one year and continues to trade under pressure due to uncertainty around the company’s ability to meet its financial obligations.
Minda Industries: The auto ancillary manufacturer on Tuesday said it has entered into a pact to buy 100% stake Delvis Gmbh, a German company engaged in automotive lamps engineering, design and testing. The deal, which includes two subsidiaries companies of the target, is worth euro 21 million (Rs163 crore). The company’s managing director said this acquisition will help bridge the gap with cutting edge technology that Delvis has to offer to global markets.
BPCL: Shares of the state-owned company ended down nearly 5% on Monday after reports that the government has cleared the way for its privatisation. The government quietly repealed the legislation that had nationalised the company, doing away with the need to seek Parliament nod before selling it off to private and foreign firms. The government has proposed to sell its entire stake of 53.3% in Bharat Petroleum Corp Ltd (BPCL).
HDIL: The Economic Offenders Wing (EOW) of Mumbai Police may expand its probe into the ₹4,355 crore Punjab and Maharashtra Co-operative (PMC) Bank Ltd fraud to include auditors of the bankrupt Housing Development and Infrastructure Ltd (HDIL), which has been at the centre of the scam. Mumbai-based chartered accountant firm Rajeswari & Associates was the statutory auditor of HDIL. In a separate development, promoter Rakesh Wadhawan has been found to be connected to an alleged cheating case involving real estate firm Rudra Buildwell.
Pharma stocks: Aurobindo Pharma Ltd, Glenmark Pharmaceuticals Ltd, and Lupin Ltd tanked in Monday’s trade, hitting 52-week lows. This weighed on the Nifty Pharma index, which ended down over 3%. According to a Mint report, the Cental Pollution Control Board (CPBC)is likely to tweak waste treatment rules for pharmaceuticals companies that would reduce the time taken to get environmental approvals for change in product mix.
NBFC stocks: Non-banking finance companies (NBFCs) may remain under pressure as the Reserve Bank of India (RBI) Deputy Governor N. S. Vishwanathan has ruled out any possibility of special liquidity window for such companies, saying that there was adequate liquidity in the system to meet their borrowing and capital needs, according to an IANS report. This comes at a time when majority of NBFCs continue to remain in stress financially.