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Pre-Market: Aditya Birla group stocks, auto shares in focus

Here are a few stocks you need to keep a tab on, for today

SI Reporter  |  Mumbai 

Markets are likely to open on a positive note tracking gains in the US markets. A smart rally in expected among the auto stocks as auto sales expanded at a brisk pace in April.

However, the debate on the Constitution Amendment Bill in respect of Goods and Services Tax (GST), the passage of the Land Acquisition Bill and the outcome of monthly manufacturing and services sector surveys will be keenly awaited. In addition, the next batch of March quarterly results will dictate the trend on the bourses.

GLOBAL MARKETS

Asian share markets stumbled on Monday and the Australian dollar took a hit after disappointing news on Chinese manufacturing underlined the need for further policy stimulus in the world's second biggest economy.

The HSBC/Markit Purchasing Managers' Index (PMI) fell to 48.9 in April - the lowest level since April 2014 - from 49.6 in March, as demand faltered and deflationary pressures persisted.

Shanghai shares were off 0.6%, while the CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.3%.

However, the Dow ended up 1.03% on Friday, while the S&P 500 gained 1.09% and the Nasdaq 1.29%.

One major development last week was a sharp and sudden back-up in Eurozone yields that suggested the long bull run in bonds might finally have run out of steam.

The early indicator, SGX Nifty is up 0.56% at 8,256.50 levels.

STOCK TO WATCH

The Aditya Birla group stocks are likely to remain in focus after the Kumar Mangalam Birla-controlled group on Sunday announced a plan to merge its Aditya Birla Nuvo Ltd (ABNL)-operated fashion retailing business with Pantaloons Fashion & Retail. This will create India’s largest branded apparel player, valued at Rs 12,000 crore.

Sudhakar Kondisetty quit as SpiceJet’s senior vice-president for information technology. He is the second top executive to step down in less than a month after the new owner, Ajay Singh, came on board.

Facing a multi-agency scrutiny, Diageo-owned United Spirits may have to restate its financial accounts, even as some investor groups have begun to question the UK-based parent's long silence on allegations against the erstwhile main promoters, Vijay Mallya-led UB Group.

The Securities Appellate Tribunal (SAT) has served a notice to Insurance Regulatory and Development Authority of India (IRDAI) in adjudication of a case relating to SBI Life, the life insurance arm of SBI.

The state-run BSNL is targeting a revenue of Rs 500 crore in the current financial year by utilising its land bank and monetisation of 75,000 towers, among others.

Auto stocks are likely to remain in limelight in today’s trade post the release of auto sale numbers. Tata Motors on Saturday reported 7% rise in total sales at 36,205 vehicles in April compared with 33,962 units in the same period last year.

Top car manufacturers Maruti Suzuki, Hyundai and Honda reported robust sales in April, driven by healthy sales of new models. Market leader Maruti Suzuki India said its domestic sales increased by 27.3 per cent during the month to 1,00,709 units.

However, Mahindra & Mahindra could manage just one per cent increase in sales and General Motors India saw its sales decline during the month.

Aditya Birla Group firm Grasim Industries on Saturday reported a consolidated net profit of Rs 506.68 crore for the fourth quarter ended March.

The Adani Group and Gujarat State Petroleum Corporation (GSPC) are looking at various equity options for their Rs 4,600-crore, five-million-tonne-pe-annum (mtpa) liquefied natural gas (LNG) terminal at the Mundra special economic zone in Gujarat. In addition to looking at bringing in an equity partner, the option could include going in for an initial public offering (IPO) forMundra.

Infrastructure finance company IDFC reported a 48.17 per cent jump in consolidated net profit at Rs 382.21 crore for the fourth quarter ended March 31, 2015.

Alstom T&D Ltd reported 13.19 per cent drop in net profit for the January-March quarter at Rs 54.03 crore despite witnessing a rise in total income.

State-run lender Bank of India (BoI) reduced its base rate - the benchmark rate to all loan rates linked - by 25 bps to 9.95 per cent.

First Published: Mon, May 04 2015. 08:31 IST
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