Stocks in Focus on November 21: Telecom Stocks, DHFL to Jubilant Life; here are the 5 Newsmakers of the Day
Cabinet decisions, telecom stocks, DHFL, Jubilant Life Sciences Limited and Prime Focus Ltd are expected to remain newsmakers throughout the intraday trade.
Key equity barometers ended with decent gains on Wednesday, November 20, 2019. However, certain stocks came in news after the market was closed for trading purposes and can have an impact on the indices when it reopens on Thursday, November 21, 2019. Here is a list of five such stocks:
Cabinet Decisions: The Union Cabinet on Wednesday gave in-principle approval for strategic disinvestment of the government shareholding in five public sector enterprises along with management control. The five companies are BPCL, Shipping Corporation of India (SCI), Container Corporation of India (Concor), North Eastern Electric Power Corporation Ltd and Tehri Hydro Power Development Corporation (THDCIL). The government will sell its entire holding of 63.75 per cent in SCI and 30.9 per cent stake in Concor. It also approved the sale of government's entire 53.29 per cent stake along with transfer of management control of Bharat Petroleum Corp Ltd (BPCL), however, Numaligarh refinery has been taken out from its fold. The government will sell its entire holding in THDC India and North Eastern Electric Power Corp Ltd (NEEPCO) to state power generator NTPC Ltd. Besides, the Cabinet has approved reducing the government's stake in select PSUs like Indian Oil Corp (IOC) to below 51 per cent while continuing to retain management control.
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Telecom Stocks: Telecom stocks will be in focus today as the Cabinet on Wednesday approved two years' moratorium on spectrum-related dues, which will help telcos avoid an immediate outflow of over Rs42,000 crore. With this, there is a deferral of spectrum dues payment for the next two financial years, 2021 and 2022 and extension of the number of payment instalments from current 16 to 18.
Dewan Housing Finance Corporation Limited (DHFL): The Reserve Bank of India on Wednesday superseded the board of directors of the debt-laden DHFL and appointed an administrator. DHFL is now headed to the NCLT. It named R Subramaniakumar, former MD and CEO of Indian Overseas Bank as the Administrator. With this, the company will become India’s first financier to land up in bankruptcy courts.
Jubilant Life Sciences Limited: The integrated global Pharmaceutical and Life Sciences Company on Wednesday announced that Ministry of Commerce (MOFCOM), China, has decided to terminate the 17.6% anti-dumping duty on imported pyridine originating in India. Jubilant Life Sciences is a leading manufacturer of Pyridine & its 14 derivatives.
Prime Focus Ltd: Standard Chartered Private Equity (Mauritius) Ltd on November 20 sold its entire 2.92 crore shares of Prime Focus at an average price of Rs48.5 apiece. This took the total deal amount to Rs 141.82 crore. The shares sold by Standard Chartered Private Equity were bought by Augusta Investments Pte Ltd at the same price.