Shares of the auto component maker will be in focus as according to reports it has understood to have delayed repayments to its bondholders and bankers. The shares declined over 8 per cent in early trade today. (Photo: Reuters)

The BSE Sensex and NSE Nifty was trading in positive terrain on Tuesday morning tracking firm global cues. At 9.20 am, Sensex was up 129.49 points at 26,322.47. Similarly, Nifty was up 35.65 points at 8,012.75 during the same time.

Below are stocks that are likely to be in focus today

Amtek Auto: The share price of the auto ancilliary company declined over 8 per cent on Tuesday in the early trade on media reports that it had missed payments on the Rs 800 crore worth of bonds that matured on Monday.

Motherson Sumi: Shares of the auto component company will be in focus after its biggest client, Volkswagen, admitted to rigging American emissions norms and thereafter halting sales of diesel cars in the US market with immediate effect. Motherson’s shares ended at Rs 262.15 on the BSE each, down Rs 21.70 or 7.64% from the previous close on Monday. Volkswagen accounts for 44 per cent of Motherson Sumi’s consolidated revenue, Bloomberg data showed. The shares are down over 5 per cent in early trade.

MMTC: State-owned MMTC on Monday said the company will sell its 10 per cent stake in the commodity
bourse ICEX equally among two bidders, who participated in the global tender.

United Bank of India: United Bank of India on Monday said it will issue Basel-III compliant non-convertible bonds to raise up to Rs 200 crore.

Bharti Airtel: Telecom major Bharti Airtel has moved all its pre-paid subscribers across the country to pay-per-second, ensuring customers pay only for the time they use the network.

Tata Motors: Tata Motors plans to launch a new small commercial vehicle (SCV) ‘Magic Mantra’ in the country next month, thereby expanding product range under its popular public transport vehicle ‘Tata Magic’.

Infosys: IT major Infosys has bagged a Rs 1,320-crore contract to build GST Network system, which will be used for the roll out of proposed Goods and Services Tax in the country. The shares gained 1.65 per cent in early trade today.

The BSE Sensex and NSE Nifty are likely to open flat with positive bias on Tuesday tracking SGX Nifty and firm global cues. (Photo: PTI)

The BSE Sensex and NSE Nifty are likely to open flat with positive bias on Tuesday tracking SGX Nifty and firm global cues.

At 8.31 am (IST), SGX Nifty was up 11 points, or 0.14 per cent, at 7,989.

Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further. Shanghai and Hang Seng were up 0.78 per cent and 0.62 per cent at 3,181 and 21,891

US stocks rose overnight as St Louis Fed President James Bullard and Atlanta Fed President Dennis Lockhart separately made the case for an increase in US interest rates this year, boosting financial shares. On Monday, Dow Jones Industrial Average gained 0.77 per cent at 16,510.19.

Back home, domestic equity markets closed flat on Monday. Sensex lost 25.93 points at 26192.98 and Nifty inched down 4.80 points at 7,977.10.

SKS, surprisingly, failed to secure a small bank licence even though all other large MFIs were successful.

It is an opportunity lost for SKS, butwe believe SKS’s MFI model remains robust though its competitors are now better positioned. Higher (54%) share of banks (i.e., MFI-turned banks) will over time reduce risk perception of the microfinance sector, indirectly benefitting SKS as well.

We are removing the option value of the bank that was earlier baked into our price target; we had earlier assigned a 40% probability for SKS getting a bank licence in our valuation model. We hence revise our price target of Rs 420 from Rs 580. At our price target, SKS will trade at 15X PER and 3.2X PBR FY2017E.

We do not find any risk to SKS’s long-term growth trajectory in the MFI format. SKS remains one of the best managed NBFCs in under our coverage. We continue to believe that SKS remains well positioned to deliver 40% loan book CAGR between FY2015 and FY2018E, thereby driving 33% EPS CAGR and 22-24% medium-term RoE.

SKS’s improving operating efficiency and lower residual risk to the microfinance model after the announcement on small banks provides an upside to our estimates. Our estimates for SKS remain unchanged. The microfinance business will now be dominated by small banks — players with similar operating structure of SKS but possessing the additional advantage of the banking format.

These MFIs will over time be better placed to lower interest rates. This, however, may not be a very crucial factor, in our view.

IDBI Bank rallied more than 16% on the back of Union finance minister Arun Jaitley’s comments in a television interview that the government was considering privatisation of  the state-owned lender on the lines of Axis Bank.

The IDBI Bank scrip closed at Rs 69.45 on the BSE, up Rs 9.95, or 16.72%. More than 3.44 crore shares were traded on the BSE and NSE, seven times the 30-day average daily volume of 45.2 lakh and nearly nine times the three-month average volume of 39.15 lakh shares. The stock has hit a high of Rs 84.80 and low of Rs 52.45 per share in the past 52 weeks. IDBI Bank could be given operational freedom on the lines of Axis Bank, which runs as a corporate bank despite being promoted by government entities, the FM said in an interview to CNBC-TV18. The government currently holds 76.5% stake in the state-owned lender.

Unlike other PSUs, IDBI Bank came into existence through IDBI Act, 1964 (which was repealed in 2003). Hence, there is no obligation on the government to hold a minimum of 51% stake specified for the PSU banks under the Banking Regulation Act, the FM said.  The present IDBI Bank is a combined entity of erstwhile long-term financial institution Industrial Development Bank of India and its private lending arm IDBI Bank. IDBI promoted IDBI Bank after the Reserve Bank of India granted the first batch of licences to private lenders in 1993.

Sebi said that it might issue observations on Matrimony.com’s IPO document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought. (Graphic: Sanjay Tambe)

Markets regulator Sebi has sought clarification on the proposed Rs 600-700 crore initial public offer (IPO) of Matrimony.com, which runs online match making business under BharatMatrimony brand.

Without disclosing details of clarifications sought, Sebi has said “clarifications (are) awaited from lead manager” for the proposed public issue.

As per the latest weekly update of processing status of draft offer documents filed with the Securities and Exchange Board of India (Sebi), regulator has said clarifications were awaited on the proposed IPO of Matrimony.Com as on September 18.

The next update would be available on September 28.

Sebi said that it might issue observations on Matrimony.com’s IPO document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought.

The regulator had received the draft offer documents on August 18, this year through its lead manager Kotak Mahindra Capital Company Ltd.

As per the draft red herring prospectus (DRHP), the IPO comprises fresh issue of equity shares worth Rs 350 crore and an offer for sale of up to 16.60 lakh scrips by existing shareholders.

The existing investors include Bessemer India Capital Holdings, Draper Investment Company LLC, Hartenbaum Revocable Trust and Indrani Janakiraman.

According to sources, the company is expected to garner Rs 600-700 crore through the public offer.

This would be the second major IPO by an Internet company after Just Dial. The local search engine firm had raked in Rs 950 crore through its public offer in 2013.

The funds would be used for business promotion, purchase and development of office premises in Chennai, repayment of overdraft facilities and procurement of hardware and software requirements for a centrally controlled contact centre and general corporate purposes.

Matrimony competes with Shaadi.com, Times Group’s SimplyMarry.com and Info Edge-owned Jeevansaathi.com.