From Adani Group to Tata Motors and banks ⁠— these 17 stocks have already lost over 10% in last one month

New Delhi, Mar 24 () Moody's Investors Service on Tuesday downgraded state-owned Oil and Natural Gas Corporation's (ONGC) rating in view of the uncertain oil price environment, depleting cash reserves of the government and government guidelines constraining its ability to lower dividends. The rating agency downgraded ONGC's local and foreign currency issuer ratings to Baa2 from Baa1. It also downgraded the ratings of the unsecured bonds issued by ONGC and those issued by its subsidiary ONGC Videsh Ltd. The outlook on all ratings remains negative, it said. "Given the increasingly uncertain oil price environment, ONGC's depleted cash reserves, and government guidelines that constrains state-owned enterprises' ability to lower dividends, ONGC's ratings are materially challenged at the previous rating level and its credit profile insufficient to remain above India's Baa2 sovereign rating. The rating outlook is negative in line with the outlook on India's sovereign rating," said Vikas Halan, senior vice-president, Moody's. "Further, the downgrade reflects our expectation that ONGC's credit metrics will weaken beyond the tolerance level for its ratings, if oil prices remain low for a prolonged period," he said. Against the backdrop of a significant deterioration in oil prices over the last month that is predicted to persist for most of 2020, ONGC decided to pay an interim dividend of Rs 5 per share last week, resulting in cash outflows of Rs 6,300 crore, which has reduced its cash reserves. ONGC had consolidated cash and cash equivalents of Rs 6,700 crore as on September 30, 2019. "ONGC's dividend policy is based on the guidelines issued by the Government of India in May 2016, which requires all government-owned companies to pay a minimum annual dividend equal to 5 per cent of their net worth even if they do not have sufficient profits," Moody's said. Despite depleted cash reserves, ONGC is expected to meet its debt repayment obligations given its access to capital as a state-owned company. "However, its lower cash reserves have diminished the company's capacity to protect its credit profile from oil price shocks," Halan said. ONGC's cash reserves, which provided protection against the oil price decline in 2016, have been depleting over the past three years because of high dividends, share buyback in 2019, and its acquisition of Hindustan Petroleum Corp Ltd (HPCL) in 2018. Its cash and cash equivalents declined to Rs 6,700 crore at September 30, 2019, from Rs 24,700 crore on March 31, 2016. Over the same period, ONGC's net borrowings increased to about Rs 1 lakh crore from Rs 21,500 crore. In Moody's base case scenario, the effects from the virus will persist into the second quarter of 2020, with improving economic fundamentals in the second half of the year. Under this scenario, Moody's expects oil prices to average USD 40-45 per barrel in 2020, returning to USD 50-55 per barrel in 2021. However, in a downside scenario, where economic weakness persists longer, oil would average USD 30-35 per barrel in 2020 and USD 35-40 in 2021. "Moody's expects ONGC's (retained cash flow) RCF/net debt to decline below 30 per cent under its base case scenario and below 20 per cent under its downside case scenario, assuming there are no changes to the company's cost structure, shareholder returns or investment plans," the rating agency said. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. Oil and gas has been one of the sectors most significantly affected by the shock given its sensitivity to demand and oil prices. More specifically, the weaknesses in ONGC's credit profile have left it vulnerable to shifts in market sentiment in these unprecedented operating conditions, and ONGC remains vulnerable to the outbreak continuing to spread and oil prices remaining weak, Moody's said. ANZ HRS

Moody's downgrades ONGC rating on uncertain oil prices, govt guidelines on dividend

The BSE benchmark Sensex closed 87 points higher after a volatile session on Monday, helped by positive Asian equities in the wake of a preliminary trade deal between the US and China. After swinging 448 points, the 30-share Sensex ended 87.39 points, or 0.23 per cent, higher at 38,214.47. It hit an intra-day high of 38,513.69 and a low of 38,066.13. The broader NSE Nifty too rose 36.10 points, or 0.32 per cent, to end at 11,341.15. Tata Motors was the top gainer in the Sensex pack rallying 5.32 per cent. ONGC rose 4.73 per cent after Oil Minister Dharmendra Pradhan said the state-owned firm was free to sell its stake in the HPCL. Among other prominent gainers were Bharti Airtel, IndusInd Bank, Sun Pharma, Axis Bank, Maruti Suzuki, <keyword id="6359783" type="COMPANY" weightage="20" keywordseo="bajaj-auto">Bajaj Auto</keyword> and TCS. On the other hand, <keyword id="6354512" type="COMPANY" weightage="20" keywordseo="Infosys">Infosys</keyword> was the top laggard on the index, shedding 3.68 per cent, after the company reported a 2 per cent decline in its consolidated net profit for the July-September quarter. Other losers included Bajaj Finance, PowerGrid, L&amp;T, Kotak Bank -- dropping up to 2.37 per cent. Besides stock-specific action, domestic equities followed other Asian stocks that rallied on US President Donald Trump's statement that US had reached a "very substantial" Phase 1 trade deal with China, traders said. Bourses in <keyword id="6368000" type="LOCATION" weightage="20" keywordseo="shanghai">Shanghai</keyword>, Hong Kong, Seoul and Tokyo ended significantly higher, while those in Europe were trading in the red. On the domestic front, wholesale price index based inflation eased to more than a three-year low of 0.33 per cent in September due to fall in prices of fuel and certain food articles. <keyword id="155827" type="PERSON" weightage="20" keywordseo="market-sentiment">Market sentiment</keyword>, however, remained volatile amid concerns over an economic slowdown after the <keyword id="6354424" type="COMPANY" weightage="20" keywordseo="world-bank">World Bank</keyword> said India's growth rate is projected to fall to 6 per cent after a broad-based deceleration in the initial quarters of this fiscal year, traders said. Meanwhile, the Indian rupee depreciated 13 paise to 71.16 against the US dollar intra-day. Brent crude futures, the global oil benchmark, plunged 2.26 per cent to USD 59.14 per barrel.

Sensex ends 87 pts higher on positive Asian cues

<ul><li>The UP government is seeking funds under the Companies Act of 2013, which requires companies to allocate 2% of their average net profit for three years to <keyword id="6354502" type="ORGANIZATION" weightage="20" keywordseo="CSR">CSR</keyword>. </li><li>The 86 <keyword id="776573" type="PERSON" weightage="20" keywordseo="religious-tourism">religious tourism</keyword> projects require an investment of 2,725 crores. This includes the proposed construction of a 100-metre statue of Lord Ram in Ayodhya for 330 crores. </li><li>The funds are better spent elsewhere. <keyword id="6357713" type="COMPANY" weightage="20" keywordseo="Uttar-Pradesh">Uttar Pradesh</keyword> lags behind the rest of the country on a number of important <keyword id="6355210" type="UNKNOWN" weightage="20" keywordseo="development">development</keyword> indicators. </li></ul> India’s most populous state, Uttar Pradesh, falls short on a number of important development indicators. According to <a href="http://rchiips.org/NFHS/pdf/NFHS4/UP_FactSheet.pdf">data</a> from the Ministry of Health and Family Welfare, only 43% of households in the state have electricity, 45% of the women are literate, 23% of babies are immunised and 30% of the men have knowledge of HIV/AIDS. Furthermore, 4 of the 10 least developed districts in India are in the state, as per a <a href="http://niti.gov.in/writereaddata/files/AspirationalDistrictsBaselineRankingMarch2018.pdf">baseline ranking</a> by Niti Aayog. And yet, the UP government’s main priority seems to be the appeasement of its Hindu vote bank. The Yogi Adityanath-led administration is seeking funds for 86 religious tourism projects under <a href="http://www.mca.gov.in/SearchableActs/Section135.htm">Section 135</a> of the 2013 Companies Act, which orders companies of a certain size to allocate 2% of their average net profit for three years to corporate social responsibility (CSR) activities. The projects require an investment of 2,725 crores, according to an investment prospectus prepared by the state government with Ernst and Young. A key project is the construction of a 100-metre tall statue of Lord Ram in Ayodhya, which is expected to cost 330 crores. This is nearly triple the amount of funds that the government allocated to providing books and uniforms to school kids in its <a href="http://budget.up.nic.in/budgetbhashan/budgetbhashan2018_2019.pdf">budget for 2018-19</a>. The project, which was <a href="http://indianexpress.com/article/india/yogi-adityanath-government-proposes-grand-statue-of-ram-at-ayodhya-river-banks-in-uttar-pradesh-4882631/">first announced </a>in October last year, brings to mind the spending spree of Mayawati, the former chief minister of UP, whose investments in parks and statues cost the state an estimated <a href="http://archive.indianexpress.com/news/mayawati-memorials-cost-rs-5919-cr-says-lda/951755/">5,919 crores.</a> Other projects in the prospectus include the 100-crore redevelopment of a pilgrimage route in Varanasi and 45-crore additions to the Gorakhpur Temple, where Adityanath is the head priest. When <a href="http://finance.bih.nic.in/documents/csr-policy.pdf">the CSR policy</a> was drawn up, it was envisioned as a way to get corporate India to contribute to social causes and improve development outcomes. Under a prescriptive (but not exhaustive) list, the major CSR activities recognised were eradicating hunger, promoting education, encouraging gender equality, improving the quality and accessibility of healthcare, protecting the environment and skill development. However, the act has consistently been used to divert funds to unnecessary ends, even at the behest of the government in some cases. In October last year, four public sector oil companies - ONGC, HPCL, Indian Oil Corp and Oil India Ltd- spent a combined total of <a href="https://www.livemint.com/Companies/X0jTp5bYxHuPWGvmsJVvHP/PSUs-devote-over-Rs121-crore-of-CSR-funds-towards-Statue-of.html">121 crores</a> on the construction of a statue of Sardar Vallabhbhai Patel in Gujarat. The funds that the UP government is asking for are better spent elsewhere. Perhaps in <a href="https://www.hindustantimes.com/lucknow/with-shoes-worth-rs-266-cr-in-tatters-up-kids-walk-barefoot-to-schools/story-STKRcOIz7MhufYXVBWIUbP.html">providing better footwear </a>for schoolchildren or effectively implementing <a href="https://thewire.in/labour/mnrega-continues-to-fail-common-man-rural-up">work guarantee schemes</a> in villages or providing <a href="http://indianexpress.com/article/india/uttar-pradesh-physically-challenged-son-takes-man-on-cart-to-health-centre-ferries-body-back-5113823/">community health centres with vans.</a> However, this is the same administration that has allocated 98.5 crores to cow shelters and 1,500 crores to Kumbh Mela festivities in its budget for next year. It clearly needs to get its priorities straight.

Yogi Adityanath administration looking to tap development funds for statue building

MUMBAI: The markets are on a roll, with the <keyword id="6484188" type="CITY" weightage="20" keywordseo="Sensex">Sensex</keyword> and Nifty making fresh life highs, led by gains in banks, auto and energy counters. 
 
The new life high for Sensex is 26,356.24; and that for Nifty is 7,865.85. 
 
The Nifty extended its winning streak for fifth consecutive session and hit an all-time high as FIIs continued to pump in dollars in Indian markets on expectations of pick-up in economy 
 
Sudip Bandyopadhyay, President, Destimoney Securities, is of the view that the market will continue to move upwards. 
 
“A lot of FIIs money is coming out of Russia into Indian markets through BRICS fund. Domestic investors are also entering the market and that is providing support,” said Bandyopadhyay. 
 
At 2:02 p.m.; the 50-share index was at 7,860.95, up 69.25 points or 0.89 per cent. It touched an all-time high of 7,865.85 and a low of 7,779.20 in trade today. 
 The S&amp;P <keyword id="35140" type="CITY" weightage="20" keywordseo="BSE">BSE</keyword> Sensex was at 26,340.82, up 237.59 points or 0.91 per cent. It touched an all-time high of 26,356.24 and a low of 26,075.28 in trade today. 
 
Sandeep Tandon of Quant Broking is of the view that market went through consolidation in the last three months. It is light at the moment and looks set for next leg of upmove. 
 
The CNX Midcap Index rallied 1.27 per cent and the CNX Smallcap Index surged 2.10 per cent. 
 
Among the sectoral indices, the CNX Bank Nifty was up 1.49 per cent, the CNX Auto Index gained 1.02 per cent, the CNX Energy Index rose 1.42 per cent. 
 
The CNX FMCG Index was down 0.75 per cent and the CNX IT Index slipped 0.51 per cent. 
 BPCL (up 5.25 per cent), <keyword id="6355975" type="CITY" weightage="20" keywordseo="Axis-Bank">Axis Bank</keyword> (up 3.11 per cent), <keyword id="45008" type="CITY" weightage="20" keywordseo="Tata-Power">Tata Power</keyword> (up 3.04 per cent), BHEL (up 2.91 per cent) and Tata Motors (up 2.87 per cent) were among the major Nifty gainers. 
 
ITC (1.92 per cent), Infosys (1.01 per cent), HCL Tech (0.80 per cent), HDFC (0.70 per cent) and TCS (0.68 per cent) were among the index losers. 
 
The market breadth was positive on the NSE with 1090 gainers against 425 losers. 
 
Foreign institutional investors were net buyers worth Rs 625.18 crore and domestic institutional investors were net buyers worth Rs 135.75 crore on Thursday as per the provisional data from the National Stock Exchange. 
 
D-Street highlights @ 2 pm 
 
Cairn India: Plan pipeline to connect field to Gujarat gas grid 
 
Cairn India: Sees significant gas volume potential in Rajasthan 
 
Cairn India: Raageshwari deep field may hold 1-3 TCF gas 
 
ET NOW ALERT: Top Gainer On CNX Small Cap Index Alok Inds Price:12.3 Change: +1.35 Percent Change: +12.33% 
 
ET NOW ALERT: Up For 2nd Day CNX SMALL CAP Price:4979.95 Change: +118.3 Percent Change: +2.43% 
 
ET NOW ALERT: Top Gainer On CNX 200 Index AIA Engineering Price:844 Change: +56.6 Percent Change: +7.19% 
 
Sources Say: JSW Energy in talks to buy Bina, Nigrie power assets of JP Power 
 
Sources Say: JSW Energy says: Continue to evaluate opportunities 
 
Sources Say: Bina Power Plant's EV is pegged at around Rs 3,500 cr 
 
Sources Say: Alert: JP's Nigrie Thermal Power project to have capacity of 1,320 MW 
 
ET NOW ALERT: All 12 lenders in Bank Nifty post gains
<div style="page-break-after: always;">
	&#xa0;</div>
Tata Motors To ET NOW: Plan to increase exports by 25% over the next 3 years 
 
Tata Motors To ET NOW: Co to launch 25 new commercial vehicles in FY15 
 
Tata Motors To ET NOW: Will spend Rs 1,200-1,500 cr this fiscal on new product development 
 
Tata Motors To ET NOW: Expect FY15 M&amp;HCV sales to be 10% higher than last fiscal 
 Adrian Mowat: <keyword id="16898" type="PERSON" weightage="20" keywordseo="Spike">Spike</keyword> in crude oil prices can derail India's growth story 
 
ET NOW ALERT: Hits Fresh Record High SENSEX Price:26297.42 Change: +194.19 Percent Change: +.74% 
 
Adrian Mowat: Underweight on consumer staples, defensive stocks 
 
Adrian Mowat: India's divestment programme has potential to take mkt higher 
 
@ 1 pm 
 
Quant Broking: Bullish on IT stocks on good US economic recovery 
 
Quant Broking: Not optimistic on auto stocks currently 
 
Quant Broking: Positive on mid-cap pharma, cement stocks 
 
Quant Broking: Bullish on pharma, cement, IT banks, PSU oil &amp; gas stocks 
 
Quant Broking: Market is poised for next leg of the bull rally 
 
ET NOW ALERT: Hits Fresh Record High NIFTY Price:7840.3 Change: +48.6 Percent Change: +.62% 
 
JUST NOW: Harsh Mariwala raises stake in Marico Kaya to 2.21% from 1.94% 
 
Atlanta: Signed an agreement with Gujarat Govt to set up entertainment city 
 Fin Min Sources: Alert: In 2008, UTI AMC deferred <keyword id="6354763" type="EVENT" weightage="20" keywordseo="IPO">IPO</keyword> plans 
 
Fin Min Sources: Alert: SBI, BoB,PNB,LIC currently hold 74% stake in UTI AMC 
 
Fin Min Sources: SBI, BoB, PNB to seek board approval to cut stake in UTI AMC 
 
Fin Min Sources: Government looking to list UTI AMC 
 
@ 12 pm 
 
Edelweiss Financial: Q1 IIP growth has been at 4%, indicating a sharp pick up 
 
Edelweiss Financial: Expect exports to grow at 7-8% on a monthly basis 
 
Edelweiss Financial: Need to monitor export demand from US, Europe &amp; Japan 
 
Edelweiss Financial: Trade deficit is not a concern at current juncture 
 
Edelweiss Financial: Agri output remains weak due to delayed monsoon 
 
Edelweiss Financial: Lower crude oil prices will help inflation to cool off as well 
 
Edelweiss Financial: Crude oil prices correcting is positive for twin deficits 
 
Mythili Bhusnurmath: IEA has stated oil consumption may be lower than last year 
 
Mythili Bhusnurmath: Most economic data is within consensus estimates 
 
Mythili Bhusnurmath: Economic data in Q1 has not been disappointing 
 
Mythili Bhusnurmath: Expect EXIM policy to be announced by end of the month 
 
Reliance Comm: Expect to bring down debt by another Rs 10,000 cr 
 
Reliance Comm: Net debt to EBITDA ratio to be below 2.5-3 levels 
 
Reliance Comm: Thrust on CDMA biz has helped achieve a turnaround 
 
Reliance Comm: Had a healthy revenue growth of Rs 4,571 cr, up 2% QoQ 
 
Reliance Comm: Net debt on books at Rs 35,500 cr from Rs 40,000 cr previously 
 
Reliance Comm: Raised Rs 6,100 cr in Q1 via QIP; Promoters invested Rs 1,300 cr 
 
@ 11 am 
 
Meghmani Organics: Have completed investments in capex for FY15 
 
Meghmani Organics: Aim to grow by 25% in topline &amp; bottomline in FY16 
 
Meghmani Organics: PAT likely to be around Rs 55 cr in FY15 
<div style="page-break-after: always;">
	&#xa0;</div>
Meghmani Organics: Expect a topline of Rs 1,550 cr &amp; EBITDA of Rs 250 cr for FY15 
 
Meghmani Organics: Target a business of Rs 600 cr for agro chemicals segment 
 
ET NOW ALERT: 1.21 Lk Shares Trade In A Block Axis Bank Price:382.7 Change: +4.9 Percent Change: +1.3% 
 <keyword id="6358584" type="CITY" weightage="20" keywordseo="HSBC">HSBC</keyword> AMC: Constructive on select financial stocks 
 
HSBC AMC: NPAs for banks will remain a overhang till economy recovers 
 
HSBC AMC: Expect a real change in economy only by 2015 
 
ET NOW ALERT: 50,000 Shares Trade In A Block Ambuja Cem Price:214.85 Change: +3.95 Percent Change: +1.87% 
 
HSBC AMC: Recommend being invested in quality stocks 
 
HSBC AMC: Will remain selectively invested in consumer stocks 
 
HSBC AMC: Oil &amp; gas stocks will move up if under-recoveries continue to fall 
 
HSBC AMC: Upside in auto stocks seem to be overstated 
 
HSBC AMC: Will adopt a wait &amp; watch strategy on oil &amp; gas stocks 
 
RCF Says: Need to look for overseas JVs for phospahtic fertiliser 
 
RCF Says: Govt is looking at restarting urea plants which have shutdown 
 
RCF Says: Gas availability &amp; pricing issues need to be sorted for fert sector 
 
@ 10 am 
 
Reliance Capital: Waiting for all bank licence guidelines before applying 
 
Reliance Capital: Expect profit growth of 15% to continue for AMC biz 
 
Reliance Capital: Commercial finance loans have grown by 10-11% on YoY basis 
 Reliance Capital: Premium growth in general <keyword id="35450" type="COMPANY" weightage="20" keywordseo="insurance">insurance</keyword> at 11% in Q1 
 
Adi Godrej: Govt's reforms need to be implemented quickly 
 
Adi Godrej: Hope GST is implemented by April 2015 
 
Adi Godrej: PM Modi's August 15 speech will have an impact 
 
Dimensions Consulting: Have been building position in Reliance Infra 
 
Dimensions Consulting: Jubilant Foods is an expensive stock at current levels 
 
Dimensions Consulting: Prefer Indian Oil &amp; BPCL to ONGC 
 
Dimensions Consulting: Remain bullish on Pharma, FMCG, IT sectors 
 
Dimensions Consulting: Will focus on quality stocks which aren't highly leveraged 
 
ICICI Direct: Prefer TCS to Infosys at current juncture 
 
United Bank: Bank consolidation will be positive for the sector 
 
ICICI Direct: New management of Infosys will be positive for stock 
 
United Bank: Bhushan Steel remains a standard account 
 
United Bank: Bankers to meet on Bhushan Steel loans today 
 
United Bank: Set a target of Rs 1,200-1,300 cr for recovering bad loans 
 
ET Now spoke to various experts and here's what they have to recommend for today's trade: 
 
Ashwani Gujral of ashwanigujral.com 
 
Yes Bank Ltd is a 'BUY' call with a target of Rs 575 and a stop loss of Rs 540 
 
Bharat Forge Ltd is a 'BUY' call with a target of Rs 790 and a stop loss of Rs 766 
 
IndusInd Bank Ltd is a 'BUY' call with a target of Rs 575 and a stop loss of Rs 540 
 
RIL Ltd is a 'BUY' call with a target of Rs 1040 and a stop loss of Rs 990
<div style="page-break-after: always;">
	&#xa0;</div>
Sandeep Wagle, Founder &amp; CEO, Power My Wealth 
 
Yes Bank Ltd is a 'BUY' call with a target of Rs 575 and a stop loss of Rs 544 
 
BPCL is a 'BUY' call with a target of Rs 688 and a stop loss of Rs 623 
 
AIA Engineering Ltd is a 'BUY' call with a target of Rs 910 and a stop loss of Rs 826 
 
Tata Motors Ltd is a 'BUY' call with a target of Rs 528 and a stop loss of Rs 480 
 
Prakash Gaba, CFT, prakashgaba.com 
 
HDFC Bank Ltd is a 'BUY' call with a target of Rs 845 and a stop loss of Rs 825 
 
Tata Motors DVR is a 'BUY' call with a target of Rs 370 and a stop loss of Rs 345 
 
ZEE Entertainment Ltd is a 'BUY' call with a target of Rs 285 and a stop loss of Rs 273 
 
Abhishek Karande, CMT, Technical Analyst - Institution Research, SBICAP Securities 
 M&amp;M <keyword id="6354241" type="COMPANY" weightage="20" keywordseo="Financial-Services">Financial Services</keyword> Ltd is a 'BUY' call with a target of Rs 300 and a stop loss of Rs 248 
 
HPCL is a 'BUY' call with a target of Rs 465 and a stop loss of Rs 409 
 
UltraTech Cements Ltd is a 'BUY' call with a target of Rs 2850 and a stop loss of Rs 2610 
 
Mayank Mehta, Derivative Analyst, KIFS Securities 
 
IndusInd Bank Ltd is a 'BUY' call with a target of Rs 575 and a stop loss of Rs 525 
 
Hero MotoCorp Ltd is a 'SELL' call with a target of Rs 2450 and a stop loss of Rs 2600 
 
Lupin Ltd is a 'BUY' call with a target of Rs 1225 and a stop loss of Rs 1150 
 
A K Prabhakar, Independent Market Expert 
 
L&amp;T Ltd is a 'BUY' call with a target of Rs 1600 and a stop loss of Rs 1480 
 
Yes Bank Ltd is a 'BUY' call with a target of Rs 610 and a stop loss of Rs 538 
 
Rallis India Ltd is a 'BUY' call with a target of Rs 254 and a stop loss of Rs 214 
 
(Views and recommendations expressed in this section are the analysts' own and do not represent those of EconomicTimes.com. Please consult your financial advisor before taking any position in the stocks mentioned.)

You Searched For "HPCL net profit" and got 5 results

From Adani Group to Tata Motors and banks ⁠— these 17 stocks have already lost over 10% in last one month

Bhakti Makwana

Moody's downgrades ONGC rating on uncertain oil prices, govt guidelines on dividend

PTI

Sensex ends 87 pts higher on positive Asian cues

PTI

Yogi Adityanath administration looking to tap development funds for statue building

Dilsher Dhillon

Markets Hit Fresh Life Highs And Experts Say Bull Run Is On; Top 20 Stock Bets

ET