Auto, bank, infra stocks may get boost from government measures

Finance Minister Nirmala Sitharaman after market hours on Friday, 23 August 2019, announced a slew of measures to revive economy. Bank stocks will be in action. For the banking sector, FM announced upfront release of Rs 70,000 crore, additional lending and liquidity to the tune of about Rs 5 lakh crore by providing upfront capital to public sector banks. This will benefit Corporates, Retail borrowers, Micro, Small and Medium Enterprises (MSME), small traders, etc.

Banks will pass on rate cuts through MCLR reduction to benefit all borrowers. EMIs for housing loans, vehicle and other retail loans will reduce by directly linking repo rate to interest rates. Working capital loans for industry will also become cheaper.

Auto stocks will be in spotlight. Finance Minister Nirmala Sitharaman on Friday, 23 August 2019, announced multiple initiatives to help boost the beleaguered automobile sector. FM assured that BS IV vehicles purchased till 31 March 2020 will remain operational for entire period of registration. Sitharaman went on to speak about the proposed increase in one-time vehicle registration fee, saying that the proposal has been pushed back to June 2020. FM also approved higher depreciation for all vehicles. Sitharaman said that depreciation will be increased to 30% for all vehicles acquired during the period from now till 31 March 2020.

NBFCs stocks will be watched. To support to non-banking financial companies (NBFCs)/housing finance companies (HFCs), FM announced additional liquidity support to HFCs Rs 20,000 crore by NHB thereby increasing it to Rs 30,000 crore. Partial credit guarantee scheme for purchase of pooled assets of NBFCs/HFCs upto Rs 1 lakh crore, which will be monitored at highest level in each bank. Prepayment notices issued to NBFCs will be monitored by banks.

Infrastructure stocks will be in focus. To boost infrastructure sector, FM announced Rs 100 lakh crores for developing modern infrastructure over 5 years. An inter-ministerial Task force is being formed by Department of Economic Affairs to finalise the pipeline of infrastructure projects. The above initiative is expected to boost growth and creation of jobs. These projects would be monitored actively to accelerate capital expenditure and investments in the economy.

Alkem Laboratories informed that USFDA had conducted inspections at the company's manufacturing facilities located at St. Louis, Fenton Park, USA from 16 August 2019 to 22 August, 2019 and Baddi, India from 19 August 2019 to 23 August 2019. At the end of the inspection, the company has received a Form 483 with four observations for the facility located at St. Louis, Fenton Park, USA and no Form 483 is received for the facility located at Baddi, India. The announcement was made after market hours on Friday, 23 August 2019.

IPCA Laboratories informed that the USFDA conducted the inspection of the company's formulations manufacturing unit situated at Piparia (Silvassa) from 19 August 2019 to 23 August 2019. At the conclusion of the inspection, the USFDA issued a Form 483 with three observations. The announcement was made after market hours on Friday, 23 August 2019.

Lakshmi Vilas Bank announced a board meeting on 28 August 2019, to consider and approve increase in authorised capital, fund raising through qualified institutional placement and fund raising by way of issuance of bonds. The announcement was made after market hours on Friday, 23 August 2019.

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