Stocks to Watch: Reliance Industries, RCom, AstraZeneca Pharma

Economy: Goldman Sachs and Fitch Ratings on Tuesday forecast deeper-than-previously estimated economic recession for India in FY21, holding that limited fiscal support, fragilities in the financial system and a continued rise in coronavirus cases are hampering a rapid normalization in economic activity.

Reliance Industries: Subsidiary Reliance Jio is looking at a plan to outsource and manufacture over 100 million low-cost smartphones, to be built on the Google Android platform, Business Standard reported. These phones, which will be bundled with data packs, could be launched in December or early next year.

Reliance Communications: Lenders to Reliance Communications Ltd (RCom) and Reliance Telecom Ltd (RTL) on Tuesday informed the Mumbai bench of the National Company Law Tribunal (NCLT) that they will move the Supreme Court for clarity on sale of spectrum.

Power Grid Corp: The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved plans to monetise state-run Power Grid Corp. of India Ltd’s (PGCIL) transmission projects that were won through a bidding process.

CG Power: Securities and Exchange Board of India (Sebi) has sent notices to CG Power and Industrial Solutions Ltd after a forensic audit confirmed that funds were diverted from the company. The forensic audit commissioned by BSE was given to the company for comments on 4 September, the company said in a stock exchange filing on Tuesday.

Regulatory: The ministry of corporate affairs is close to releasing a draft report that will pave the way for domestic companies to list their shares in overseas markets without listing in India first, two regulatory officials aware of the matter said.

Pharma Stocks: The government is willing to facilitate a phase 3 trial for Russia’s Sputnik V vaccine for which 2-4 Indian companies are in discussions to mass manufacture, NITI Aayog member (health) V.K. Paul said on Tuesday.

AstraZeneca Pharma India: Late-stage studies of parent AstraZeneca’s covid-19 vaccine candidate are on temporary hold while the company investigates whether a recipient’s “potentially unexplained” illness is a side effect of the shot. In a statement Tuesday evening, the company said its “standard review process triggered a pause to vaccination to allow review of safety data.”

Wipro Ltd: Bengaluru-based IT major Wipro Ltd on Tuesday said it plans to set up a digital innovation hub in Düsseldorf, Germany, which will serve as its flagship centre in Europe. The facility will offer digital transformation expertise to companies in Germany, enable organisations to cross skill and upskill, and support talent development in local communities.

Aviation Stocks: Indian airlines may not rush to utilize up to 60% of their capacity as allowed by the government as customer bookings continue to remain subdued despite a rebound since May, said airline officials.