Key benchmark indices could rise today, 23 December 2014. Trading of CNX Nifty futures on the Singapore stock exchange indicates that the Nifty could rise 17 points at the opening bell.
On the political front, votes will be counted today for assembly elections held in Jammu and Kashmir and Jharkhand over five phases. The BJP hopes to bag both states. While exit polls have predicted a majority for the BJP in Jharkhand, they forecast a hung assembly in Jammu and Kashmir.
Among corporate announcements, HCL Technologies, through a pre-earnings brief, highlighted how currency movements are likely to influence its quarterly results. During the October-December 2014 quarter, US dollar continued to strengthen against almost all global currencies like British Pound, Euro, AUD and so on. Since the company's revenues are derived in multiple currencies, the revenues for the quarter to be reported in dollar would have adverse impact of approximately 210 basis points on account of strengthening of dollar against various global currencies. This impact has been computed using the exchange rate as on 18 December 2014.
At the beginning of the quarter, the company had estimated foreign exchange loss of $2.5 million on account of cash flow hedges on exchange rates prevailing as on September 2014 end. However, taking into account the exchange rate as on 18 December 2014m the company now expects to post foreign exchange gain of approximately $2 million covering. This foreign exchange gain or would continue to be reported after earning before interest and tax (EBIT). The company sad it expects effective tax rate to be in the guided range of 21% to 22%.
Bharti Airtel will be watched. With respect to news titled "Huawei Bags 4G Network Deal from Bharti Airtel", Bharti Airtel clarified after market hours today, 22 December 2014, that this is a routine ordinary course of business transaction that does not have a material or a significant impact on the operations of the company. Bharti Airtel has a long term strategic partnership with Huawei for network equipment for more than a decade. Huawei serves multiple technologies to Airtel including 2G, 3G and TD-LTE across various circles in India. As part of ongoing business requirements, Airtel has engaged with Huawei for supply of base stations and other equipment for its FD-LTE network in Karnataka and Tamil Nadu Telecom circles, Bharti Airtel said.
Bank of Baroda announced after market hours yesterday, 22 December 2014, that 23 January 2015, has been fixed as the record date for 5 for 1 stock split.
Videocon Industries said it has closed the global depository receipt (GDR) issue and allotted 1.57 crore underlying equity shares of face value of Rs 10 each, represented by 1.57 crore GDR at a price of $2.88 per GDR, equivalent to Rs 181.61 per equity share aggregating to $45.21 million. The exchange rate considered is as per the RBI dollar to rupee reference rate as on 19 December 2014 which is Rs. 63.07. The GDRs are proposed to be listed on Luxembourg Stock Exchange.
Suzlon Energy will be in focus as shares allotted by the company on conversion of foreign currency convertible bonds at a conversion price of Rs 15.46 per share are admitted for trading on the bourses today, 23 December 2014. A total of 4.34 crore shares will be admitted for trading. Shares of Suzlon Energy had jumped 7.83% to settle at Rs 13.77 on BSE yesterday, 22 December 2014.
The board of Allahabad Bank approved in principle the raising of capital of the bank through preferential/qualified institutional placement (QIP) issue in compliance with the applicable laws, rules and regulations, Government of India Guidelines and in such a manner that the equity shareholding of the Government of India shall not go below 52%.
Indian stocks may remain volatile this week as traders roll over positions in the futures & options (F&O) segment from December 2014 series to January 2015 series. The near month December 2014 derivatives contracts expire on Wednesday, 24 December 20014. The stock market remains closed on Thursday, 25 December 2014, on account of Christmas.
Gains in world stocks, global crude oil prices and the Russian ruble aided rally on the domestic bourses at the onset of the week on Monday, 22 December 2014. The S&P BSE Sensex rose 329.95 points or 1.21% to settle at 27,701.79. The CNX Nifty gained 98.80 points or 1.20% to settle at 8,324.
Meanwhile, foreign portfolio investors (FPIs) sold shares worth a net Rs 335.24 crore yesterday, 22 December 2014, as per provisional data.
Asian shares were trading mixed. Key benchmark indices in Japan, Taiwan, Hong Kong and Indonesia were up by 0.08% to 0.24%. Key benchmark indices in China and South Korea and were off 0.10% to 1.01%.
US stocks ended higher on Monday, 22 December 2014, with both the Dow and S&P 500 ending at records as large-cap technology shares gained and offset continued weakness in energy names.
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