28th August, 2020 Morning Brief

Market will open on a flat to positive note today after a choppy session on the derivatives contract expiry for the month of August. 

Asian markets have opened mixed at the start of the final trading day of the week, after their U.S. counterparts eked out modest gains overnight.

The S&P 500 and the Dow advanced but the Nasdaq closed lower on Thursday as investors digested the US Federal Reserve's new strategy to adopt an average inflation target and restore the United States to full employment, as well as a promising development in the fight to contain the coronavirus pandemic.

The Dow Jones Industrial Average rose 160.35 points, or 0.57%, to 28,492.27, the S&P 500 gained 5.82 points, or 0.17%, to 3,484.55 and the Nasdaq Composite dropped 39.72 points, or 0.34%, to 11,625.34.

U.S. Federal Reserve Chair Jerome Powell on Thursday said that the fed will keep interest rates lower amit it will seek inflation that averages 2% over time, a step that implies allowing for periods of overshoots.

Finance Minister Nirmala Sitharaman during a briefing with reporters after the 41st meeting of the GST Council said the economy is facing an extraordinary 'Act of God' situation, which may result in economic contraction.

As per the Centre's calculation, the compensation requirement by the states in the current fiscal would be Rs 3 lakh crore, of which Rs 65,000 crore is expected to be met from the cess levied in the GST regime. Hence, the total shortfall is estimated at Rs 2.35 lakh crore.

🎯 News & Impact 🎯 

🎯 Defence Stocks : Prime Minister Narendra Modi announced on August 27 that 74 % foreign direct investment (FDI) will now be allowed in the defence sector through the automatic route. Positive for the stocks like BEL, BEML, Bharat Dynamics, BharatForge, HAL, etc. 👍 

🎯 HCL Technologies : The company has opened its first European Cybersecurity Fusion Center (CSFC) in Gothenburg, Sweden. HCL’s CSFC is a security operations and response facility, integrating multi-domain security teams, processes and cutting-edge analytics enabling organizations to detect threats faster and resolve incidents efficiently.

🎯 GMR group : To list airport business, raise Rs 5,000 crore via securities. 

🎯 Edelweiss Financial Services : The company given in-principle approval for the sale of whole or part of the asset management business of the group to a strategic investor and to explore fund raising opportunities, including option to raise capital from the strategic investors for the group's general insurance business. Positive for the stock. 👍

🎯 NMDC : Board has given in-principle approval for the proposal to demerge its Iron & Steel Plant in Nagarnar, Chhattisgarh.

🎯 HCC : Won three projects worth Rs 7,402 crore which were won in a joint venture in the months of July and August. Company’s share in these orders are Rs 3,337 crore. Positive for the stock. 👍 

🎯 Mahindra and Mahindra : The company announced the introduction of the Marazzo with BSVI technology.

🎯 Shilpa Medicare : Promoter Ramkant Inani released pledge of 9 lakh shares on August 27. Positive for the stock. 👍 

🎯 Adani Enterprises : Promoter SB Adani Family Trust created pledge of 76 lakh shares on August 26. Negative for the stock. 

🎯 Motherson Sumi : Promoter Samvardhana Motherson International revoked pledge of 90 lakh shares on August 21. Positive for the stock. 👍 

🎯 JSW Energy : Promoters created pledge of 86 lakh shares between August 25-26. Negative for the stock. 

🎯 Astron Paper & Board Mill : Promoter Kirit Patel created pledge of 21 lakh shares on August 21. Negative for the stock.

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Edited by Sharp.