BackOpening Bell 4 August | Weak global cues to weigh on Indian markets
Asian markets were trading mixed as investors turned cautious ahead of a slew of regional economic data
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Mumbai: Asian markets were trading mixed on Monday morning as investors turned cautious ahead of a slew of regional economic data. Hong Kong’s Hang Seng gained 0.2%, Japan’s Nikkei Stock Average was up 0.1% while China’s Shanghai Composite advanced 0.6%.
Wall Street indices ended lower on Friday following mixed signals about the US economy and mounting speculation that the Federal Reserve might raise interest rates sooner than expected. Economic weakness in the euro-zone was exacerbated by growing concerns over Portuguese lender—Banco Espirto Santo. The S&P 500 declined 0.3%, Nasdaq Composite was down 0.4% and Dow Jones Industrial Average fell 0.4%.
In India, metals and mining shares will be in focus as the Union government has proposed a seven-point action plan to resume mining within a legal and transparent framework in Odisha, Jharkhand and Goa based on new findings of a high level panel that indicted two former Goa chief ministers.
Infosys Ltd shares will be in focus as it is planning to deploy 150 executives with technical background in sales to focus on strengthening its engagement with clients. This is among the first few measures being taken by new CEO Vishal Sikka, reports Economic Times.
The economy is showing signs of bottoming out as the factory output rose to a 17-month high in August according to HSBC Purchasing Managers’ Index, keenly watched as a harbinger of industrial expansion.
Auto shares will be in the limelight after July sales rose for the second straight month suggesting that a recovery may have begun to take hold in the sector after a two-year slump. Maruti Suzuki India Ltd’s domestic sales accelerated 20%, Honda Cars India Ltd and Hyundai Motor Co. sales rose 40% and 12.7% each in August.
Cairn India Ltd shares will be in focus after Life Insurance Corp. of India (LIC), the second largest shareholder in Cairn has sought more information on the $1.25-billion loan given to its parent Sesa Sterlite Ltd, reports Business Standard.
L&T Infrastructure Finance Co. Ltd is looking to raise around $1 billion in a private equity fund focused on investing in power, roads, ports and other projects, reports Economic Times.
Power Grid Corp. of India Ltd, Marico Ltd and Punj Lloyd Ltd will be in focus on account of June quarter earnings announcement.
Lastly, the long-speculated induction of Priyanka Gandhi-Vadra to the Congress party leadership may finally happen later this year after the next round of assembly elections, reports Economic Times. Among the options are roles as general secretary or chief of the Uttar Pradesh Congress unit.
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