Opening Bell 22 July

Opening Bell 22 July

New Delhi: It’s fairly clear now. Markets are rewarding the companies that are delivering and dumping the ones that are slipping on the earnings front. TCS, Hero Honda, Mindtree and Crisil are a case in point. All these stocks have surged on better than expected June quarter results.

But with majority of companies struggling to live-up to the expectations, markets are worried that there will be more downgrades than upgrades. Read Andrew Holland’s interview on why he expects this result season to be worse than last.

Cues from the international markets are encouraging. Europe has launched a massive Greece bailout package worth $157 billion to prevent debt crisis from spreading across the region.

The positive momentum also percolated into Asian markets. Stock markets in Japan and South Korea rose on buying in financial services stocks. The Nikkei is up 0.71%.

Back home, commercial office space is finally showing signs of revival. According to property consultancy CB Richard Ellis, office space occupancy in NCR, Mumbai, Bangalore, Pune, Kolkata, Chennai and Hyderabad increased by 33% in April-June compared with the preceding quarter. Read more...-

Bhel is aiming to supply electromechanical equipment to Sinohydro Corp. for a 120 megawatts hydropower project in Zambia. India has offered $50 million line of credit for this project.

JSW Energy has deferred capacity expansion plans at Ratnagiri due to high coal prices. The company was planning to set up a 2,000 megawatts plant at Ratnagiri.

Jyothy Laboratories has reportedly shortlisted three private equity funds to offload a stake of around 12% in itself. The money raised will be used to pare debt on Jyothy Laboratories and Henkel India’s books.

Reliance Industries is caught in a diplomatic tussle between India and Saudi Arabia. Saudi Arabia is mounting pressure on New Delhi to withdraw anti-dumping duty on polypropylene, a plastics raw material. The issue is expected to be discussed in September.

Suzlon Energy is planning to buy the balance 4.8% shares in Germany’s REpower Systems. In April, Suzlon Energy raised its holding in REpower to 95.16% from 90.5%. With the purchase of the residual stake, REpower will become a 100% subsidiary of the company.

Coal India is planning to invest about 30,000 crore on capacity expansion over the next five years. The company wants to invest in new mining projects, washeries, machinery and equipment.

Mahindra & Mahindra launched an open offer to acquire 20% additional stake in EPC Industries from public shareholders. The company fixed the open offer price at 66.55 per share. The open offer will end on 9 August.

Axis Bank, Colgate Palmolive, Godrej Properties, Jet Airways, Thermax, Union Bank of India, Tata Elxsi, Praj Industries, Ispat Industries and Allahabad Bank will announce their June quarter earnings today.

Finally, the largest home-grown arbitrageur has shut shop. BLB, which used to have 1,000-odd jobbers, was touted to be the largest arbitrage and proprietary book player in the country. The company reportedly shut the share trading unit as business became unviable. Read more...