BackOpening Bell | Jet Airways, Federal Bank and LIC Housing in focus
Asian markets were trading higher, following weekend reports of the possibility of easing debt repayment terms for Greece
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Where are Indian markets headed?
The Indian markets will take cues from the monsoon session of Parliament which begins on Tuesday, especially as key reforms such as land acquisition and goods and services tax bill are likely to be taken up. Corporate earnings from index heavyweights such as Reliance Industries Ltd, Infosys Ltd, HDFC Bank Ltd, and Hindustan Unilever Ltd will also determine market direction, besides global cues.
Asian markets begin the week on a steady note
Asian markets were trading marginally higher on Monday morning, following weekend reports of the possibility of easing debt repayment terms for Greece. Japan’s Nikkei Stock was trading higher by 0.2%, China’s Shanghai Composite and Hong Kong’s Hang Seng were up over 0.1% each.
US markets clock gains
On Friday, US markets ended on a mixed note. Nasdaq Composite gained 0.9%, Dow Jones Industrial Average was down 0.2% and S&P 500 closed marginally higher. This week Greece will continue to remain in the spotlight as a payment to the European Central Bank looms. US corporate earnings will vie for investor attention as well, according to Financial Times.
LIC’s linkages with banks
In India, if the country’s largest insurer, Life Insurance Corp. of India, were a bank, it would be ranked the 11th largest in terms of loans, reports Mint. This, and the fact that it owns significant equity stakes in Indian banks appears to have made Reserve Bank of India (RBI) nervous, as the banking regulator ponders the possible systemic implications of these linkages.
Stringent norms for packaged food companies
Packaged food companies may soon have to be more explicit about the shelf life of their products with the Food Safety and Standards Authority of India considering making it mandatory for manufacturers to print expiry dates on packs, reports The Economic Times. The food safety regime has become stricter after the ban on Maggi noodles by the food safety authority last month.
Jet Airways cuts business class fares
Jet Airways Ltd shares will be in focus after it cut business class fares on its domestic network by more than half to fill seats during the lean season. The airline has offered a discount up to 60% on base fares in business class on more than 180 flights covering a distance of less than 1,000 km within India, read more.
Federal Bank Ltd profit dips in the June quarter
Federal Bank Ltd shares will be under pressure after net profit in the June quarter fell 35.8% from the year-ago period to ₹ 141 crore. Gross non-performing assets increased to 2.59% compared with 2.22% a year ago.
Tata offers to buy Docomo for Rs23 per share
The Tata group has offered to buy out Japanese telecom major NTT Docomo’s 26.5% stake in loss-making Tata Teleservices for ₹ 23.34 per share, reports Business Standard. This is after the finance ministry and RBI rejected the group’s application to buy back Docomo’s shares at the pre-agreed valuation of ₹ 58 a share. Docomo has now moved the London Court of Arbitration to get a valuation of ₹ 58 a share.
Sun TV’s Red FM will move court against the government
Sun TV shares will be in focus as Red FM said it will move court against the government’s decision denying it permission to participate in phase III of FM auctions. In mid-July, five companies of Kalanithi Maran-promoted Sun TV were not allowed to participate in Phase III radio auctions.
Amazon readies $5 bn war chest to grow in India
The world’s largest online retailer Amazon is readying a $5-billion war chest to grow India into its biggest market outside the US, reports The Economic Times. Amazon will invest in expanding its network of warehouses, data centres and beef up its online marketpace to compete better.
Earnings in focus
LIC Housing Finance Ltd, Shalimar Paints Ltd and Hindustan Zinc Ltd will be in focus as they are set to announce their June quarter earnings.
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