Opening Bell 26 July2 min read . Updated: 26 Jul 2011, 08:48 AM IST
Opening Bell 26 July
Opening Bell 26 July
New Delhi: Rate policy day is here. The expectations are that the Reserve Bank of India will increase key rates by another 25 basis points. While the hike is widely expected, what the markets will look forward to is Governor Subbarao’s talk. Any hint that the central bank is nearing the end of rate hike cycle will be a relief for the stock markets. Here’s a list of other things to watch out for before trading starts.
Cues from international markets are mixed. US President Barack Obama warned that the nation’s burgeoning debt threatens to do ‘serious’ damage to the economy. Stocks in the US fell as lawmakers struggled to agree on plans to raise the federal debt limit. The S&P 500 closed down 0.56%.
However, the weak sentiment did not percolate into Asian markets. Stocks in Japan opened with gains on robust earnings forecast by Canon and Kao Corp. The Nikkei at 10,062 is up 0.12%.
Back home, Reliance Industries has delivered a subdued performance in the June quarter. The company reported a 16.7% rise in net profit to ₹ 5,661 crore. While analysts were expecting the company to report net profit of ₹ 5,712.58 crore, weak earnings from oil & gas business weighed on the earnings.
Sterlite Industries, on the other hand, reported better than expected earnings. Driven by higher realisations and improved volumes, the company reported a 63% rise in June quarter profits to ₹ 1,639.73 crore. Analysts were expecting the company to report profits of around ₹ 1,546 crore.
Hero Honda is banking on higher volumes to offset higher marketing and R&D expenses. The company is forecasting the two-wheeler industry to grow at 15% in the current financial year.
Troubles are far from over for Kingfisher Airlines. According to reports, the Airports Authority of India is threatening to encash undated cheques worth ₹ 130 crore for non-payment of dues. Kingfisher reportedly owes around ₹ 193 crore to the Airports Authority of India.
Meanwhile, its group company, United Spirits refinanced ₹ 2,675 crore of debt taken to acquire Whyte & Mackay. According to the company, the new loan will have a tenure of seven years.
Jaiprakash Associates has bagged two contracts worth ₹ 2,079 crore from Bhutan. The orders are related to the construction of a 990- megawatts hydro project which is being jointly developed by the Bhutanese and Indian governments.
Reliance Power, L&T, Lanco Infratech and Adani Power are among the companies that have bid for a ₹ 1,025-crore power transmission project connecting Tamil Nadu and Karnataka. The build-own-operate project involves laying two high capacity 250-km transmission lines. Read more...-
Bhel, Asian Paints, JSW Steel, Cairn India, Maruti Suzuki, Opto Circuits, Pidilite, Shriram Transport and Glenmark Pharmaceuticals will announce their June quarter earning today. Analysts at Kotak Securities and Sharekhan expect BHEL to report 20-23% YoY growth in sales.
Finally, it is well known that welfare policies are widely exploited by the crooked people for personal gains. But this one has left many awestruck. An inquiry has found that a health center in Rajasthan had paid men for delivering babies. According to reports, one person got pregnant seven times over the past eight months and received as much as ₹ 15,000 as an aid from the government. Read more...