Opening Bell 3 April | RBI grants banking licences, IDFC in focus

Wall Street climbs to record high on encouraging US labour market signals ahead of Friday’s non-farm payrolls report 

Mumbai: In India, IDFC Ltd shares will be in limelight after Reserve Bank of India (RBI) granted in-principle approvals to IDFC and Bandhan Financial Services Pvt. Ltd to start new banks. The approvals will be valid for 18 months and the two firms will have to comply with rules stipulated by the central bank in that time.

Wall Street climbed to record peaks on encouraging signals from the US labour market ahead of Friday’s non-farm payrolls report. A survey from ADP Research showed 191,000 new jobs had been created in March while February’s figure was revised to 171,000, reports Financial Times. The Dow Jones Industrial Average was up 0.2%, S&P 500 gained 0.6% and Nasdaq Composite gained around 0.2%.

Asian markets continued to climb higher on Thursday morning after Wall Street extended into record high territory. The Chinese government announced another mini-stimulus and HSBC’s PMI gauge for the non-manufacturing sector rose to a reading of 51.9 in March from 51 in the previous month. China’s Shanghai Composite was up 0.2%, Hong Kong’s Hang Seng gained 0.6% and Japan’s Nikkei Stock Average was up 0.4%.

 

 

 

 

In India, Bharti Airtel Ltd shares will be in focus after it renewed its landmark outsourcing contract with International Business Machines Corp. (IBM) for five years for around $500 million after several rounds of negotiations, reports Mint.

Petronet LNG Ltd shares may see some action as Oman is in talks with India to buy around 10-20% stake in Petronet’s planned liquefied natural gas terminal at Gangavaram, in the state of Andhra Pradesh. The stake could be bought through an investment or pension fund, reports Wall Street Journal.

Airline shares will be in focus as the Competition Commission of India (CCI) has started an investigation into airfare pricing after finding that airlines were behaving like a cartel, reports Mint. There was little choice to travellers as seats were sold at identical prices.

Larsen and Toubro Ltd (L&T) shares will be under pressure as it may write off slow-moving orders worth Rs.15,000 crore when it announces earnings for the full year in March due to lack of approvals, aggressive bidding and other problems which have frozen execution, reports Economic Times.

Tata Communications Ltd shares will be in focus after Vodacom Group Ltd said that it was still in talks to acquire Neotel, a South African subsidiary of Tata Communications for around $590 million.

Suzlon Energy Ltd shares will be in focus after it acquired Big Sky Petroleum Corp. wind park from Edison Mission Energy in the US through its North American subsidiary.

The aviation ministry on Wednesday gave its clearance to Tata SIA Airlines, the joint venture between Tata Sons Ltd and Singapore Airlines Ltd, taking it a step closer to the start of operations. The airline now needs a permit from the Directorate General of Civil Aviation (DGCA) to start operations.

Lastly, India’s meteorological department now expects that El Nino weather conditions—typically marked by less rainfall will be seen latest by June this year which could stoke food prices, reports Wall Street Journal India



Source-Livemint.com         

                    By

Shah Mohammad Abdul Qadir
            PGDM 1st Yr.
IIMT College Of Management
      Greater Noida, U.P.