BackOpening Bell 19 June | Banking stocks and Fed moves in focus
Telecom stocks may also witness some action as Vodafone starts pricing war in data services by slashing 2G tariffs
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Mumbai:Asian markets are trading higher. Japan’s Nikkei gained 1.9% to 13,259 on weakening yen and strong export data. Japan’s exports surged the most since 2010. Read the Bloomberg report.
Overnight, US markets closed in green. The S&P 500 gained 0.78% to 1,651 as investors bet that there would be no change in the Federal Reserve’s policy on stimulus efforts. Read more.
Back home, heavy rains may affect the paddy crop in North India, reports Business Standard. According to the report, if the fields remain under water for a few days more, farmers may have to re-sow or replant, which can increase the cost of cultivation.
The rupee closed at a record low against the dollar on Tuesday. The Indian currency closed at 58.77 to a dollar, losing 1.54% through the day. Read more.
Shares of state-owned oil marketing companies may trade with negative momentum. Depreciating rupee and strengthening crude prices may increase under-recoveries for the oil companies. Brent crude rose above $106 a barrel after a report said that stockpiles in the US dropped last week.
Keep an eye on banking stocks. The Reserve Bank of India (RBI) is lining up major banking sector reforms, reports Mint. The proposals include consolidation of some large banks, setting up of smaller banks and separate licences for specific banking operations instead of a single universal one.
Telecom stocks too may witness some action. Vodafone Group Plc has started a pricing war in data services by slashing 2G tariffs by as much as 80%. Read more.
Tata Consultancy Services Ltd and HCL Technologies Ltd are among the front-runners to win an outsourcing contract from PepsiCo Inc., reports Mint. The contract is valued at about $500 million (around ₹ 2,925 crore).
Meanwhile, to revive Infosys Ltd, Narayana Murthy is trying to woo back some of the former top executives to the company, reports The Economic Times.
Heavy rains in the hill states of Uttarakhand and Himachal Pradesh are disrupting electricity generation at hydropower projects, reports Mint. Due to heavy silt and debris in the water, NHPC Ltd and SJVN Ltd have shutdown down some power plants.
The troubles at Yes Bank Ltd are far from over. A battle is brewing between the two largest promoter shareholders of the bank over a board seat. Read the Mint report.
Religare Enterprises Ltd may witness some action. To comply with RBI rules for a banking licence, the promoters are planning to sell upto 22.75% equity of the company. Read the Mint report.
Finally, Samoa Air, the world’s first airline to charge passengers according to their weight rather than by seat, is introducing an XL class to cater to larger passengers, reports The Telegraph.
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