Opening Bell 29 January | Global equities trip on upbeat US Fed

American economy was expanding ‘at a solid pace’ with strong job gains, according to the US Federal Reserve

A file photo of the BSE building in Mumbai. Photo: Hemant Mishra/Mint
A file photo of the BSE building in Mumbai. Photo: Hemant Mishra/Mint

Mumbai: Global equities are trading lower. According to Reuters, the US Federal Reserve said the American economy was expanding “at a solid pace” with strong job gains signalling that the central bank is on track to raise interest rates this year.

The upbeat commentary sent the US stocks lower. S&P 500 was down 1.35% to 2,002 and Asia markets also opened lower.

The government fixed the base price for 3G auction at Rs.3,705 crore per megahertz, reports PTI. Along with the spectrum used to offer 3G services, the government will also offer the second generation or 2G mobile airwaves in the auction.

A fall in sales has resulted in a huge inventory pile up with real estate developers, reports Mint. The National Capital Region has unsold residential units which will take approximately 14 quarters to get sold, the report says.

Suzuki Motor Corp. plans to make automobiles for Africa as well as for India at its upcoming Gujarat plant, reports Mint. Meanwhile, Maruti Suzuki India Ltd is gearing up for nine launches this year-three new cars and six upgrades of existing models, reports Business Standard.

The most recent gas discovery at Reliance Industries Ltd’s (RIL) D6 block in the Krishna-Godavari basin may not add much to the block’s overall reserves, with two out of three appraisals giving disappointing estimates on its reserves, reports Mint. The discovery was announced in May 2013.

Coal India Ltd (CIL) will launch its offer for sale programme to sell 10% stake in the company on 30 January or tomorrow. Read more.

The cabinet committee on economic affairs approved the HDFC Bank Ltd’s capital-raising plan, reports The Economic Times. The committee also approved Lupin Ltd’s proposal to raise the foreign institutional investment limit in the company.

Jaiprakash Power Ventures Ltd may not be able to fulfil its repayment obligations to holders of a convertible bond, suggesting that the Jaypee Group continues to face a cash crunch despite, reports Mint. The company plans to have discussions with bondholders regarding the repayment schedule and invited them for negotiations.

After two years of declining sales, Shriram Transport Finance Co. Ltd is starting to see demand for new trucks improve in a few states, reports Mint. At the same time, falling freight rates in Rajasthan, Punjab and Delhi is resulting in lower demand for trucks in those regions, the report adds.

Torrent Pharmaceuticals plans to raise up to Rs.10,000 crore by issuing securities and will seek shareholders nod for fund raising plans, reports PTI.

Lastly, SKS Microfinance Ltd, Sesa Sterlite Ltd, IDFC Ltd, ICRA Ltd, HDFC Ltd, Blue Dart Express Ltd, Dr. Reddy’s Laboratories Ltd, Asian Paints Ltd, Ashok Leyland Ltd are some of the companies that will release their earnings for the December quarter on Thursday.

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