Mumbai: Despite Thursday’s gain, the undertone still remains negative for stocks. While global markets are steadily recovering from the recent bouts of selling, headwinds such as high inflation and rising interest rates are curbing investor appetite. Here is a list of things to know before trading starts.
Overnight, stock markets in the US closed with gains. Decline in weekly jobless claims helped improve optimism about the economic recovery. The S&P 500 at 1,343 closed higher by 0.22%.
The bigger than forecast drop in jobless claims sent crude prices higher. Traders bought crude futures on expectations that the recovering job market will increase demand for fuels. Brent crude at $111.55 is trading higher by 0.12%.
Meanwhile, stock markets in Asia are trading mixed. Japanese stocks are swinging between gains and losses. Low commodity prices are leading to selling in the stocks of trading companies. The Nikkei at 9,656 is up 0.387%.
India might find it difficult to achieve fiscal deficit target unless it makes adjustments to fuel and fertiliser prices, the RBI governor said. In Budget 2011-12, the government announced a fiscal deficit target of 4.6%, which was widely considered to be ambitious.
Scooters India stock might continue to witness some action. The union cabinet cleared the sale of loss making firm. Many companies are expected to show interest in the bidding process. The stock surged 4.92% on Thursday.
Reliance Industries is in talks with American Express to form a joint venture that could offer services like payment gateways. Payment gateways provide secure connections between a service provider and banks for processing online payments.
Oil PSUs might be asked to share Rs 6,000 crore subsidy burden amongst themselves. According to reports, the government might ask upstream and oil marketing firms to bear the subsidy burden depending on financial condition of the respective company.
Larsen & Toubro is having second thoughts on selling its electricals and automation division. According to reports, instead of an outright sale, the company is now exploring the option of a minority stake sale.
The company reported a 17% growth in March quarter profits. Robust sales and a one time gain helped the company post better than expected March quarter earnings. The company guided for a 15-20% rise in new order intake for the current financial year.
Weak investor sentiment has forced Bharti Airtel to postpone its $1 billion global bond sale. Bharti wants to use the proceeds to refinance some of the high cost debt on its balance sheet.
High fuel costs eroded Jet Airways profits in March quarter. The airline reported a loss of Rs 124.5 crore in March quarter. While revenues rose by 14%, a 50% jump in fuel costs led to fall in margins.
Tata Power reported a 30% drop in March quarter net profit to Rs 661 crore. Low forex gain and deferred tax provision in one of its units led to lower profits.
The Petroleum and Natural Gas Regulatory Board rejected Adani Gas’ application for setting up city gas distribution in Jaipur and Udaipur. Adani Gas is a subsidiary of Adani Enterprise.
Cairn Energy extended the deadline for Cairn India stake sale to Vedanta. The Cabinet Committee on Economic Affairs in April referred the deal to Group of Ministers. According to reports, the GoM is scheduled to meet on 27 May.
Ashok Leyland is planning to invest around Rs 1,000 crore in its businesses. The company wants to raise the money through internal accruals and debt.
Finally, hundreds of motorists were issued with speeding fines in UK after pranksters put up a 40 mph sign board in a 30 mph speed-zone. The fake sign board made many motorists step-up their speeds beyond 30 mph, who were eventually fined by the surveillance camera. Read more...