BackOpening Bell | Essar Steel, JSW Energy, Heineken in news
Asian markets edged higher while the US dollar weakened broadly after the US Federal Reserve's cautious stance on further rate increases
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Asian markets trade mostly higher
Asian markets edged higher on Friday morning, turning positive for the year, while the US dollar weakened broadly after the US Federal Reserve’s cautious stance on further rate increases. Hong Kong’s Hang Seng was up 0.4%, China’s Shanghai Composite gained 0.8%, but Japan’s Nikkei Stock Average gained fell 1.7% as yen strengthened. In China, the central bank has allowed the renminbi to strengthen the most since November to 6.46 per dollar.
US markets gain as Fed pauses on rates
Overnight, the Dow Jones Industrial Average rose for the fifth straight session on Thursday to close in positive territory for 2016 for the first time this year. The energy, materials and industrials sectors rose sharply, helped by soaring commodity prices. The S&P 500 advanced 0.7%, the Dow Jones Industrial Average gained 0.9% and the Nasdaq Composite was up 0.2%.
Heineken eyes control of UBL
In India, United Breweries Ltd shares will be in limelight as Heineken is likely to ask Vijay Mallya, who owes creditor banks more than $1 billion, to step down from the board of UBL. Heineken owns 42.4% stake in UBL. With Mallya distracted by debt, this could be a timely grab by Heineken in a market that is growing faster than global average, read more.
Essar Steel struggling to improve financial health
Essar Steel Ltd shares will be under pressure as the steel maker is seeing early signs of a turnaround but is yet to conclude its plans to bring in a new investor and continues to negotiate with banks to complete the refinancing of its debt, reports Mint.
Sajjan Jindal’s JSW Energy to acquire brother Naveen’s power plant
JSW Energy Ltd shares will be in action as the power generating company of Sajjan Jindal is set to acquire a 1,000 MW Jindal Power plant for about ₹ 6,000 crore from his brother Naveen Jindal. Cash crunch due to the downturn in steel prices and burgeoning debt levels forced Naveen’s Jindal Steel & Power Ltd to shed assets, reports Economic Times.
Sebi probing allegations of round-tripping of USL shares
United Spirits Ltd shares will be in focus as the Securities and Exchange Board of India (Sebi) is probing allegations of round-tripping of USL shares in six accounts that belong to business tycoon Vijay Mallya. The information was shared by UK’s financial regulator, reports Mint. Round-tripping is when money leaves the country through channels such as payments to shell companies overseas but returns to the country through an investment in listed securities.
Vijay Mallya resigned as Royal Challengers Bangalore director
Lastly, Indian Premier League franchise Royal Challengers Bangalore has written to the Board of Control for Cricket in India intimating them about Vijay Mallya’s resignation from the post of director of Royal Challengers Sports Pvt. Ltd. Mallya will remain an honorary chief mentor to RCB, read more.
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