BackOpening Bell 11 October | All eyes on Infosys
Asian markets trading mixed on prospects that US debt default could be avoided
Premium(Hemant Mishra/Mint)
Mumbai: All eyes are on Infosys Ltd results which will kick start the September quarter earnings season. This will be the first results season after N.R. Narayana Murthy took over as chairman in June. Analysts expect Infosys to report 3% growth in dollar revenues on back of improving demand in the US and recent deal wins.
US markets rallied over optimism that politicians in Washington were finally nearing a deal on the fiscal stalemate. The White House and Republicans held their first serious talks to resolve the fiscal impasse. The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite rallied over 2% each.
Asian markets were trading mixed on prospects that US debt default could be avoided. Japan’s Nikkei Stock Average gained over 1% on back of a weakening yen, Hong Kong’s Hang Seng was flat and China’s Shanghai Composite declined around 1%.
In India, the rupee rebounded sharply following reports that the government is talking with JPMorgan Chase and Co. and others to gain entry to benchmark indexes for emerging market debt in hopes of attracting dollars and may also ease some restrictions on foreign inflows.
Reliance Industries Ltd shares may be under pressure as the finance ministry has launched a move to cap the rise in gas prices and said that RIL should not automatically get higher rates for existing fields unless there is an output shortfall, reports Economic Times.
The Securities and Exchange Board of India (Sebi) is soon likely to allow real estate investment trusts aiming to attract investments to the country’s slackening realty sector, reports Mint. The market regulator has put out a consultative paper for public feedback after about five years of releasing its first draft regulations.
Banking shares may see some action after the Reserve Bank of India said that banks can borrow from international and multilateral institutions up to 100% of their equity capital or $10 million, whichever is higher, till end of November to meet their funding requirements, reports Mint.
Mahindra and Mahindra Ltd shares will be in focus after the company said it will move its two-wheeler business to the automotive and farm equipment sector to take advantage of synergies such as research and development, sourcing, manufacturing, distribution and marketing.
Indian Oil Corp. Ltdshares will be in limelight after the bid for West Bengal Industrial Development Corporation’s 40% stake in Haldia Petrochemicals was accepted by the state government, reports Mint. IOC has offered around ₹ 25 per share to Haldia, valuing the Kolkata facility for ₹ 4,200 crore.
Ranbaxy Laboratories Ltd shares will see some action after the Food and Drug Administration has said it was satisfied with the manufacturing practices at the US facility—Ohm Laboratories Inc, reports Mint. FDA clearance will bring some relief to the drug maker that has been under scrutiny for irregularities at its Indian manufacturing facilities.
The Economic Offences Wing of the Mumbai Police has made a second arrest in connection with ₹ 5,600 crore payment crisis at National Spot Exchange. The EOW has arrested Jai Bahukhandi, former assistant vice-president of warehousing at NSEL.
Lastly, Sachin Tendulkar, the highest run-scorer in Indian cricket has announced that he will retire next month after his 200th Test match, after playing against the West Indies in November.
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