The market is likely to open lower on weak Asian stocks. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could fall 36.50 points at the opening bell. Asian stocks were trading lower on Monday on mounting concerns that the US Federal Reserve may start scaling back its huge monthly bond-buying plan which was aimed at keeping bond yields down and provide support to its faltering economy.
The market may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from the near month June 2013 series to July 2013 series. The June 2013 F&O contracts expire on Thursday, 27 June 2013.
HCL Technologies after market hours on Friday, 21 June 2013, said it entered into a multi-year engagement with Vestas Wind Systems A/S as the latter's strategic partner. Vestas is a global leader in manufacturing, selling, installing, and servicing of wind turbine power-plants.
HCL will provide application development and management and IT-consultancy services to applications run by Vestas as part of this engagement. The services will be delivered to Vestas primarily from India, but also from the Philippines and across locations in Denmark. Besides cost reduction, Vestas IT expects to gain increased flexibility in terms of skills, scale, knowledge and experience and achieve higher quality by using the HCL's best in class processes and services.
Alstom T&D India turns ex-dividend today, 24 June 2013, for dividend of Rs 1.80 per share for the year ended 31 March 2013.
Indian Bank turns ex-dividend today, 24 June 2013, for dividend of Rs 6.60 per share for the year ended 31 March 2013.
Indian Overseas Bank (IOB) after market hours on Friday, 21 June 2013 clarified that a news item published in a leading news paper on 20 June 2013 stating that the Central Bureau of Investigation (CBI) officials had conducted a surprise search at the bank's headquarters in Chennai on 19 June 2013 in connection to a job scam was incorrect and the CBI officials did not carry out any search at the bank.
PVR after market hours on Friday, 21 June 2013 said that it has on 21 June 2013 opened two multiplexes in Chandigarh and Bangalore with 8 and 9 screens respectively. With this launch, the total screen-count of PVR has gone upto 382 screens in 88 cinemas in 36 cities across India. The opening of these two prestigious Cinema is a part of PVR's organic growth strategy of pan India expansion and increasing its presence in major cities, the company said.
Credit rating agency CRISIL has downgraded its rating on the bank facilities and other debt programmes of Apollo Tyres to 'CRISIL A' from 'CRISIL AA' and revised the rating outlook to negative from stable. CRISIL has also downgraded the company's short-term rating to 'CRISIL A1' from 'CRISIL A1+'. The rating downgrade follows Apollo Tyres' announcement of acquiring Cooper Tire and Rubber in an all-cash-transaction of $2.5 billion. CRISIL in its report said it believes that the fully debt-funded acquisition, which is much larger than Apollo Tyres' existing consolidated balance sheet, will deteriorate its financial risk profile. Post-acquisition the consolidated entity will have a net gearing of around 4 times. The entity's debt protection metrics are also likely to weaken significantly from current levels, CRISIL said.
CRISIL in its report said it believes that the susceptibility of Apollo Tyres' debt servicing ability to the cyclical nature of the tyre industry and volatility in raw material prices is magnified post this acquisition. Moreover, Apollo Tyres could face issues with integrating the combined entity and exploiting the benefits of synergies in initial years, CRISIL added. The rating could be downgraded if there is a sharp decline in the operating cash flows of any of the company's key operations/geographies resulting in a further deterioration of its debt protection metrics, CRISIL said. The outlook may be revised to stable if there is a significant augmentation in the operating cash flows of Apollo Tyres benefitting from the synergies resulting in an earlier-than-expected improvement in capital structure and/or timely and adequate deleveraging through fresh equity infusion, CRISIL said.
Key benchmark indices edged higher in volatile trade on Friday, 21 June 2013 on firm European stocks and higher US index futures. The S&P BSE Sensex advanced 54.95 points or 0.29% to 18,774.24, its highest closing level since 19 June 2013.
Foreign institutional investors (FIIs) sold shares worth a net Rs 1768.60 crore on Friday, 21 June 2013, as per provisional data from the stock exchanges.
Asian stocks were trading lower on Monday, 24 June 2013, on mounting concerns that the US Federal Reserve may start scaling back its huge monthly bond-buying plan which was aimed at keeping bond yields down and provide support to its faltering economy. Key benchmark indices in Japan, Singapore, Taiwan and South Korea were off 0.25% to 1.99%. Indonesia's Jakarta Composite rose 0.47%.
Chinese stocks edged lower as a recent spike in Shanghai interbank interest rates fueled worries about the world's second-largest economy. In mainland China, the Shanghai Composite was off 2.54% and Hong Kong's Hang Seng was down 1.59%. Short-term interbank interest rates in Shanghai, which hit record highs on Thursday, 20 June 2013, extended their drop from levels seen on Friday, 21 June 2013, but remained above the 6%-level on Monday, 24 June 2013. This fed worries that the People's Bank of China may keep those rates at a high level.
US stocks ended mixed on Friday, 21 June 2013, as investors picked up beaten down stocks. While the Dow Junes Industrial Average and S&P 500 score small gains the tech laden Nasdaq Composite index registered small losses.
Federal Reserve Chairman Ben Bernanke said last week the central bank may start dialing down its stimulus effort if the economy achieves sustainable growth.
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