Mumbai: The first-quarter earnings season will begin next week. A good earnings season will help markets overcome a dreadful three months, which was marred by policy stalemate and corruption scandals. Here’s a list of things to watch out for before trading starts.
Cues from global markets are encouraging. While stocks are rising, crude oil is trading weak on increased supplies. Brent crude at $111.75 a barrel is down 0.65%. Crude prices fell after Opec increased output and the US prepared to start releasing emergency stockpiles.
Improving business activity in the US economy and a favourable Greek vote lifted Asian stock markets. Asian stocks gained after US manufacturing unexpectedly expanded at a faster pace in June. The Nikkei is up 0.60%.
US stocks extended their gains on Thursday. Positive cues from the Europe and improving business activity in the domestic economy lifted American shares. The Institute for Supply Management business barometer climbed to 61.1 in June from 56.6 in May. Economists were expecting the gauge to come-in at 54. The S&P 500 closed up 1%.
Back home, the government is fast-tracking the clearances for FDI in retail sector. According to reports, the panel of secretaries is expected to approve the framework for allowing global retail chains to open shop in India later this month. With both the Prime Minister and finance Minister backing the proposal, there are expectations that the government might clear the deal this month.
Growth of eight core infrastructure industries slowed to 5.3% in May against 7.4% last year. The core industries have a weight of 37.90% in the overall index of industrial production.
India’s current account deficit narrowed to 1.1% of GDP in the January-March quarter from 3.05% of GDP during the same period a year ago. In absolute terms, the deficit shrunk to $5.4 billion in the January-March quarter from $12.8 billion in the year-ago period. Robust performance of both merchandise and service exports helped the country reduce the current account deficit.
The cabinet committee on economic affairs approved Vedanta Resources proposed acquisition of a majority stake in Cairn India. The committee had recommended that royalty on the Cairn-ONGC oil fields in Rajasthan be treated as cost recoverable and the on-going arbitration case on cess to be withdrawn. Read more...
The 11-month fight has been worth-it for ONGC. With the government making royalty as cost-recoverable, ONGC can look forward to earn more from its JV assets in Rajasthan.
DLF has fast-tracked asset sales. The company is selling its shareholding in two IT SEZs in Pune and Noida for around Rs 1,300 crore. The company is selling stakes in non-core assets to reduce its debt levels.
Coal India has decided to begin hunt for shale gas across the country. The company has begun a process to study deposits of shale gas in all existing coal blocks by inviting applications from research organisations.
Finally, Japan has banned Sumo wrestlers from playing golf. After series of scandals bought disrepute to the game, Japan Sumo Association has set strict rules for sumo wrestlers which also include confiscation of mobile phones during the tournament. Read more...