Opening Bell 11 June | Banking stocks in focus as SBI plans merger of associates
State Bank of India shares will be in focus as the lender is planning to combine five associate banks with itself
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Mumbai: Asian markets were trading flat after a quiet session overnight left US stock indices steady. China’s Shanghai Composite was up 0.1%, Hong Kong’s Hang Seng was down 0.3% while Japan’s Nikkei Stock Average advanced 0.2% in morning trades.
US markets ended on a subdued note as a post-payrolls lull in US data releases and a dearth of other market-moving news left stock markets largely unchanged, reports Financial Times. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite closed flat.
In India, UltraTech Cement Ltd shares will be in limelight as it is in talks to buy cement assets from Jaiprakash Associates Ltd which help reduce Jaiprakash’s debt pile of ₹ 61,000 crore. The two companies are in discussions about projects, including Jaiprakash’s Rewa cement-making complex in central India.
State Bank of India shares will be in focus as the lender is planning to combine five associate banks with itself, reports Economic Times. SBI will be able to enhance its asset base, increase market share and branches by combining its associates.
Oil and gas shares could see some action as the National Democratic Alliance (NDA) government is looking at tweaking the formula suggested by the Rangarajan Committee to end the controversies around the impending increase in the price of natural gas, reports Business Standard.
Tata Motors Ltd shares will be under pressure as Venkatram Mamillapalle, head of purchases, and Rajesh Bagga, head of human resources and legal have put in their papers just a month after the exit of senior vice-president of the passenger vehicle business unit, reports Mint.
United Bank of India shares will see some action after it received permission from the Reserve Bank of India to consider loan proposals upto ₹ 200 crore for highest rated borrowers. This comes as a relief because the lender was barred from lending ₹ 10 crore to any single borrower after its bad loans rose to record high and capital adequacy ratio plunged to 9%.
Larsen and Toubro Ltd (L&T) is planning to acquire smaller companies and offer employee stock options to hire and retain top talent, in the lead-up to initial share sales in L&T Infotech Ltd and L&T Technology Services Ltd in July, 2016, reports Mint.
Indians expect the rate of inflation to stabilize around current levels with 51.2% of the respondents expecting prices to rise by more than the current rate in the next three months, down from 74.5% in the September quarter, according to a survey published in the Reserve Bank of India’s June monthly bulletin.
Lastly, the NDA government has initiated action to amend the 66-year-old Factories Act and has sought suggestions from industries, trade unions and experts, read more.
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