BackOpening Bell 14 July | Global markets trade higher
Asian markets are trading higher; stocks gained on corporate earnings optimism
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Mumbai: Asian markets are trading higher. Stocks gained on corporate earnings optimism. According to Bloomberg, shares of consumer and healthcare firms are major gainers.
US markets closed marginally higher. S&P 500 edged up 0.15% to 1,967 as investors awaited more data from the economy and corporate earnings. Read more.
Thanks to a new Reserve Bank of India (RBI) rule directing banks to set apart money for likely losses due to unhedged foreign currency exposure of their corporate clients, banks may be hit by higher provisioning in the June quarter, reports Mint. Banks such as State Bank of India Ltd (SBI), ICICI Bank Ltd, Axis Bank Ltd, Punjab National Bank Ltd (PNB), Bank of Baroda Ltd and Bank of India Ltd have large corporate lending portfolios.
Consumer packaged goods companies are expected to post muted earnings growth in the quarter ended 30 June. A Mint survey of six brokerages shows that analysts estimate profit growth of 9.3-15.7% and sales growth of 10.8-13.1%.
The trade body of the mutual funds (MF) industry will formally write to capital market regulator Sebi to urge a rethink on some of the announcements on the MF industry in last week’s budget proposals, reports Mint. Finance minister Arun Jaitley’s Union Budget 2014 said gains from withdrawals from MF schemes, apart from equity schemes, before three years will attract short-term capital gains tax.
Finance ministry said it is examining various issues pertaining to mergers of public sector banks reports PTI. Talks have been going on for long for merging State Bank of India’s subsidiaries with the parent bank.
Road shows for disinvestment of stake in Steel Authority of India Ltd may begin this month, reports Business Standard. According to the report, stake sale may be showcased in Singapore and Hong Kong.
Tata Power Co. Ltd has sought shareholders’ nod to raise upto ₹ 7,000 crore through issue of non-convertible debentures, reports PTI. Besides, the private power utility has proposed increasing its borrowing limit to ₹ 27,000 crore.
TVS Motor Co. Ltd displaced Bajaj Auto Ltd from third spot in the domestic two-wheeler market, reports The Economic Times. Strong scooter sales are helping TVS Motor Company position itself behind Hero Motocorp Ltd and Honda Motor Co. Ltd two wheelers.
Shriram Transport Finance Corp. Ltd expects 12-15% growth in assets under management in second half of the current financial year, reports Business Standard. Shriram Transport’s subsidiary is planning to finance medical equipment.
Sobha Developers Ltd’s sales booking declined 20% in first quarter of the current fiscal due to lower volumes and realisations, reports PTI. According to the report, the company’s sales volume dropped to 754,000 sq ft during the April-June quarter of 2014-15 fiscal as against 920,000 sq ft in the corresponding period of 2013-14.
Deepak Fertilisers and Petrochemicals Corp. Ltd has sought approval of its shareholders for raising ₹ 1,000 crore from the market during the current fiscal, reports PTI. The company has also moved a proposal to double the borrowing powers of its board. It may use these funds to finance its expansion plans.
Advani Hotels and Resorts (India) Ltd may see some action. ITC Ltd’s hotel division is close to acquiring the Ramada Caravela Beach Resort from Advani Hotels, reports The Economic Times.
Also keep an eye on Financial Technologies (India) Ltd. The company may further reduce its stake in Multi-Commodity Exchange this week, reports Business Standard.
Lastly, Germany won the World Cup for the fourth time when substitute Mario Goetze volleyed in a goal seven minutes from the end of extra time. Read the Reuters report.
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