BackOpening Bell 7 October | Global equities mixed ahead of earnings
Buying in information-technology and materials companies are helping the benchmark indices trade with gains
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Mumbai: Asian markets opened higher. According to Bloomberg, buying in information-technology and materials companies are helping the benchmark indices trade with gains. Overnight, US markets closed marginally lower. S&P 500 lost 0.16% to 1,964 as traders eyed earnings season. Read more.
Credit Suisse downgraded Indian and Indonesian equities after the recent rally. The broking firm cut its view on India to “neutral" from “outperform." Read more.
Corporate credit quality is showing early signs of recovery, according to credit rating agency Crisil Ltd. The ratio of the number of rating upgrades to downgrades was at 1.64 times for the first half of 2014-15, the highest in three years, the agency said.
The government may bring in an ordinance to sort out the legal mess arising from the Supreme Court’s judgement that cancelled coalfields allotment, reports Mint. The blocks are currently in possession of private and government-owned power, steel and cement companies, and would have to be taken over by Coal India Ltd.
The cost of electricity generation can rise significantly if coal producing blocks are transferred to Coal India Ltd, reports The Economic Times. According to the report, Coal India’s cost of production is more than that of private firms.
Concerned by the possibility of a production collapse at its biggest gas field, ONGC Ltd plans to invest ₹ 5,000 crore to drill new wells, install a new platform and explore surrounding areas to extract more gas, reports Mint. Located off the Mumbai coast, the Bassein gas field produces upto 24 million standard cubic metres per day.
Maruti Suzuki India Ltd is set to widen its lead over Hyundai Motor India Ltd as it prepares to launch a slew of new models, reports Mint. Maruti Suzuki sells 85,000-90,000 units on average every month; Hyundai sells 30,000-36,000 units.
JSW Steel Ltd is in talks to buy embattled West African iron ore miner London Mining Plc, reports Reuters. London Mining was one of several junior miners set up in West Africa during the boom years on the back of rising demand for iron ore.
In lieu of interest forgone, ailing car maker Hindustan Motors Ltd has allotted 11.42% stake to its lenders, reports Business Standard. ICICI Bank Ltd, which has the highest exposure among lenders, got 5.15% stake, the report says.
Also, keep an eye on Gulf Oil Lubricants India Ltd and Mahindra and Mahindra Ltd. The companies are set to announce a tie-up or “alliance" on Tuesday, reports The Hindu Business Line.
Ballarpur Industries Ltd’s step down subsidiary Bilt Paper BV has entered into an agreement with International Finance Corp. (IFC) for the sale of new shares worth $100 million. IFC will hold a stake of 14.29% in Bilt Paper after the transaction is completed. The deal values Bilt Paper at $600 million.
Lastly, coffee may get costlier. Coffee futures surged to a 32-month high as drought curbed harvest prospects in Brazil, the world’s top producer and exporter. Read more.
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