News and Impact · Stock prices fell on global markets on Tuesday, stuck in a dismal start to 2015 as tumbling oil prices and Greeces possible exit from the euro zone struck a note of fear and drove investors to safe-haven assets, including gold, the yen and low-risk government bonds. US market declined half to one percent. Today, Asian markets bounced back into positive territory. Both Nikkei and Hang Seng gained half percent each. · · A decline in Brent crude futures to a near 5-1/2-year low of $51 a barrel extended the oil market rout that began in mid-2014. The latest fall intensified concerns about how the dramatic price drop, due to sluggish global growth and a supply glut, will hurt earnings of oil companies and exacerbate disinflationary pressure worldwide. · · Fall in Brent crude price to 5-1/2-year low at $51/bbl will be positive for oil marketing companies (HPCL, BPCL, IOC). OTHER sectors that stand to gain include Auto (Tata Motors, Eicher Motor, Maruti, M&M, Ashok Leyland), Banks (expectation of rate cut on ahead of cool down inflation), Paints (Asian and Berger), Lubricants (Castrol) and plastics (Sintex). Negative for Cairn India, ONGC and Reliance Industries. · In a detailed press note, Government Assures the Public Sector Banks (PSBs), Financial Institutions (FIS) and Insurance Companies of Freedom of Non-Interference in Matters of Commercial Decisions, Transfers, and Postings etc. · PNB increased short term deposit rates by 25-50 bps (less than 270 days) and LOWERED in longer term buckets by 25 bps. Bulk deposit rates cut across maturities by 25-50 bps · Adani’s acquisition of Lanco’s Udipi Power Plant runs into rough weather. The exclusivity period ended in Dec 2014. Adani’s disagreement with lenders’ terms given as the key reason - Negative for Lanco · Godrej acquires FRIKA HAIR in South Africa. FRIKA’s revenues approx is USD 7 Mn and is into hair extensions · SBI floats a proposal to merge UTI AMC with SBI AMC. SBI holds 18.5% stake in UTI AMC. LIC also keen to acquire UTI AMC · Cox & King allots 7.25mn warrants to founder unit Standford - Positive for Cox & King · Lupin Labs introduces generic Diovan tablets in US, Diovan® Tablets had annual U.S sales of US$ 2.08 billion (IMS MAT September, 2014) - Positive for Lupin · Aurobindo Pharma , Jubilant Life : Get U.S. FDA ANDA approvals for Valsartan tablets - Positive for Aurobindo Pharma and Jubliant Life · Bharti Airtel , Idea , Reliance Communications : Telecom Commission meeting today to discuss regulator’s recommendation on 2,100 MHz spectrum base price · Cera Sanitaryware : Morgan Stanley Asia bought 70,000 shrs, Jwalamukhi Investment sold 68,303 shares yesterday: NSE · Coal India : Strike to continue after inconclusive meeting: employees union · Hindustan Unilever : Raised to neutral at JPMorgan, upgraded to outperform at Credit Suisse (Bloomberg) · United Breweries Holdings : Says lenders of group co. Kingfisher Air filed winding up petitions; co. is in process of filing appeal against petitions
Posted on: Mon, 12 Jan 2015 05:52:43 +0000
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