BackOpening Bell 24 December | IT stocks could be under scanner after HCL warning
Asian stocks trading marginally higher on following a record session overnight on Wall Street; UltraTech, JP Associates shares will be in focus today
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Mumbai: In India, the Bhartiya Janata Party ( BJP) once again surprised critics as the results for the assembly polls were announced. The party is poised to form the first majority government in 14 years in Jharkhand while in Jammu & Kashmir, it came a close second to the Peoples Democratic Party (PDP).
Asian markets were trading marginally higher on Wednesday morning following a record session overnight on Wall Street. Hong Kong’s Hang Seng and China’s Shanghai Composite were trading flat, while Japan’s Nikkei Stock Average was up 1.2%.
Overnight, US markets closed at record highs, underscoring confidence in the economy after an upward revision to 5% in the third quarter GDP data from 3.9%, reports Financial Times. The Dow industrials closed above 18,000 for the first time ever and the S&P 500 ratcheted up to a record high, though Nasdaq Composite ended marginally lower.
In India, the winter session of Parliament ended with many items on the “to do" list still unfinished–as opposition parties targeted the Modi government on issues from black money to religious conversions, reports Wall Street Journal India. The government was not able to push through some key economic reforms such as the insurance and coal mines bill.
UltraTech Cement Ltd and Jaiprakash Associates Ltd shares will be in focus after UltraTech agreed to buy two cement plants and related power assets of JP Associates in Madhya Pradesh for Rs5,400 crore. The cement factories have captive thermal power plants with a combined capacity of 180 megawatts and expand UltraTech to gain access to key markets in the east and central India.
SpiceJet Ltd shares will continue to see some action after co-founder Ajay Singh was said to have started negotiations with billionaire Kalanithi Maran’s representatives to buy out his entire 58% stake in the cash-strapped airline, reports Mint. Ajay Singh has started the due diligence process along with a couple of private equity firms.
HCL Technologies Ltd in a note to investors said that cross currency movements will impact dollar revenues in the December quarter. Based on forex rates on 18 December, the company has quantified the impact at 210 basis points, which threatens to wipe away most of the growth in the quarter, reports Mint.
Domestic airlines are revamping products and increasing their capacity as competition in the Indian aviation space heats up, with new airline Vistara taking to the skies next month, reports Business Standard. GoAir has said it will launch new products and services from March, while Jet Airways has launched a ‘Guest First’ programme to improve customer service and is also refurbishing aircraft cabins and improving in-flight menus.
Yes Bank Ltd has raised Rs1,250 crore through an unsecured loan from the Asian Development Bank to lend to small households and self-help groups in rural areas, reports Mint.
Lastly, several logistic companies that deliver shipments for online retailers are bearing the brunt of the upheaval in the aviation sector, as cancellation of flights by SpiceJet and a decline in air cargo space for commercial shipments has thrown delivery schedules into disarray, reports Economic Times.
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