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A file photo of the BSE building in Mumbai. Photo: Mint
A file photo of the BSE building in Mumbai. Photo: Mint

Opening Bell 23 January | ECB stimulus drives rally in stock markets

Asian markets were trading higher after bigger-than-anticipated quantitative easing package unveiled by the ECB

Mumbai: The European Central Bank (ECB) led by Mario Draghi pledged to purchase more than $1.16 trillion in public and private sector bonds by the fall of 2016, to help fight stagnation and ultralow inflation in a euro zone that has emerged as a top risk to global economic recovery, reports Wall Street Journal.

Asian markets were trading higher after bigger-than-anticipated quantitative easing package unveiled by the ECB. Shanghai Composite gained 0.4%, Hong Kong’s Hang Seng and Japan’s Nikkei Stock Average were up over 1% each. China’s manufacturing sector contracted for a second consecutive month in January to 49.8 from 49.6 in December, according to HSBC flash purchase manager’s index.

Overnight, US markets also ended on a firm note. The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 were up over 1% each.

In India, Suzlon Energy Ltd shares will be in focus investors are breathing a tad easier after the company announced the sale of its best performing asset Senvion SE at a valuation of €1 billion. Senvion, earlier known as REpower Systems AG was also the chief reason behind its unmanageable debt, read more.

Tulsi Tanti, chairman of Suzlon Group said that they decided to sell Senvion as it was giving them an enormous opportunity to reduce the debt and they are looking at ramping up volumes in India, the US and emerging markets.

Yes Bank Ltd shares will be in focus as it is the main suitor in the race for Deutsche Asset Management (India) Pvt Ltd’s mutual fund business in India and the deal is estimated at around 200 crore.

Cairn India Ltd shares will be under pressure after it posted a 53.2% drop in profit to 1,349.64 crore for the third quarter of the current fiscal year as falling crude oil prices took a toll on the earnings. Revenue declined 29.9% to 3,504.10 crore on back of lower average crude price realization.

India’s airlines will likely post earnings for the three months ending December that will reflect the benefits of a steep fall in fuel prices and capacity moderation due to the SpiceJet Ltd’s reduction of its fleet size. Capa estimates that Jet Airways Ltd will post a profit of 125-180 crore in the December quarter, while SpiceJet will post a loss of 240-300 crore.

UltraTech Cement Ltd has directed at least two online marketplaces — ApnaStock and MaterialTree to stop selling its brands — UltraTech and Birla Super brand of cement in Bangalore, stung by the shift of business to online marketplaces, reports Economic Times. Online shoppers are offering heavy discounts on cement bags compared to brick and mortar shops.

Tata Motors Ltd shares will be in focus following the launch of Bolt, a hatchback, starting at 4.64 lakh (ex-showroom, Mumbai). The company is pitting this car against segment leaders Maruti Suzuki Swift and Hyundai Grand i10. The Bolt is based on the platform of its compact sedan Zest.

Lastly, traditional offline retailers expect to see a spike in sales over the Republic Day holiday weekend on the back of an increase in consumer spending and have announced heavy discounts to sweeten the deal. Future Retail Ltd, which runs the Big Bazaar chain of hypermarkets, will offer big discounts during the long weekend, reports Mint.

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