BackOpening Bell 15 September | Weak Asian cues may weigh on Indian markets
Asian markets were trading lower following disappointing factory production data from China
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Mumbai: Indian markets will open lower after inflation and industrial output data released by the government on Friday dampened hopes of a quick economic revival after the Narendra Modi-led government came to power. Consumer Price Index slowed only marginally in August to 7.8% from 7.96% in July. Food price inflation hardened to 9.42% from 9.36% in the previous month.
Asian markets were trading lower on Monday morning after disappointing factory production data from China which signalled the slowdown in the world’s second biggest economy is deepening. Industrial output in China grew at 6.9% in August from a year earlier. China’s Shanghai Composite was trading flat, Hong Kong’s Hang Seng fell 0.8% while Japan’s Nikkei Stock Average was up 0.2%.
US markets ended lower on Friday as investors expressed caution over US monetary policy. All eyes are on the September Federal Open Market Committee meeting this week. Policymakers from the US central bank will update economic forecasts and may give some insights into how it will end its bond buying programme, reports Financial Times. The Dow Jones Industrial Average declined 0.4%, Nasdaq Composite lost 0.5% while S&P 500 lost 0.6%.
In India, the government has flagged concerns over evergreening of loans, reports Mint. State-run lenders have been directed by the finance ministry to end the practice of extending fresh loans to borrowers so that they can pay off old overdue loans. This may increase the pile-up of bad loans in the banking system.
Ranbaxy Laboratories Ltd shares will be in the limelight after the drug marker and Pfizer Inc. won dismissal of a US antitrust lawsuit accusing them of conspiring to delay sales of generic versions of the best-selling cholesterol drug Lipitor.
Jaiprakash Associates Ltd shares will be in limelight as it will seek the permission of it shareholders to raise loans of up to ₹ 40,000 crore and raise another ₹ 5,000 crore through private placement of non-convertible debentures or other debt instruments. Jaypee Group is selling land and promoter stakes in group companies to service its loans and reduce debt.
Reliance Industries Ltd (RIL) has increased its stake in Reliance Jio Infocomm Ltd to 98.9% as on March this year by pumping more capital into the company, reports Business Standard. Reliance Jio is currently in the process of rolling out a pan-India 4G infrastructure and is testing signal. It is expected to roll out services by early next year in a phased manner.
It could be another blow for Vijay Mallya as United Breweries Holding Ltd (UBH) through a subsidiary — UB Holdings had the rights to export various spirits brands of USL across some global markets. After Diageo acquired 54% stake in United Spirits Ltd, these rights from UBH have been taken away. The functions are instead assigned to USL’s emerging markets division, reports Business Standard.
Tata Consultancy Services Ltd (TCS) has opened Saudi Arabia’s first all-female business process centre, which will provide employment to upto 3,000 women in three years, reports Economic Times. Saudi Aramco and GE are the centre’s first customers,
Several firms are in the race for buying stake in the Anil Ambani-owned Big Cinemas. Providence Equity Partners has joined the race to acquire stake in Big Cinemas, reports Business Standard. Malaysia-based PE Fund Navis Capital and multiplex firms — PVR, Inox and Carnival Cinemas are already in discussions to acquire a controlling stake.
Lastly, Alibaba, a Chinese e-commerce company is expected to raise $21 billion at the price range of $60-$66 in a largest ever initial public offering. This pegs the market valuation of Alibaba at around $163 billion, reports Financial Times. Pricing is expected on September 18 following a listing on Friday, this week.
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