Market Cues: Asian stocks gain, Bharti Airtel results today
India, with its population of 1.2 billion population and large and balanced consumer economy, represents a huge, fast growing market for US manufactured goods, and our exports are growing at over 17 per cent a year.
Asian stocks rose on Wednesday tracking a positive trend overnight in US markets. Japanese car maker Toyota announced better-than-expected profit outlook. The street expects Bank of Korea to keep key interest rate unchanged at 3.25 per cent today. Meanwhile, US stocks rose after the Greek government made progress on measures to secure international aid. Dow Jones hit the highest level since May 2008 while S&P 500 closed at a seven-month high.
Iron ore mining
The Supreme Court appointed central empowered committee on illegal iron ore mining in Karnataka has provided some relief for steel and iron ore companies. The Supreme Court panel has recommended for cancellation of 123 iron ore leases, which would be up for grab for steel companies. The panel has recommended that value addition should be preferred over pure mining. Also, the panel has given clean chit to all the 19 leases which were functional before the complete mining ban.
Sugar exports
The empowered group of ministers has finalised the export of sugar, rice and onion. An additional one million tonne sugar export has been allowed while more export of non-basmati rice has also been permitted. Traders must complete exports over the next 45 days. This should be positive for sugar companies that have a surplus production.
CBI widening 2G probe
The CBI is widening probe into the 2g scam. It is seeking copies of all licence agreements till 2008 from the Department of Telecom. It has intensified the investigation of licences given during the NDA regime as well. Licence agreements sought for Bharti, Hutch, Sterling, BPL, Idea and Aircel. CBI had earlier visited offices of Bharti & Vodafone in November 2011. SC had earlier asked CBI to probe licence allocation from 2001.
Temasek to sell ICICI Bank stake
Temasek arm Allamanda Investments will sell 1.59 cr shares or 1.38 per cent stake in ICICI Bank through accelerated book building. The price band is expected to be Rs 924-Rs 937 per share. Goldman Sachs is the sole book runner for the deal worth close to Rs 1,500 crore.
Bharti Airtel earnings preview
Bharti Airtel is expected to report a 32.8 per cent jump in the net profit at Rs 1,364 crore in December 2011 quarter. Sales are expected to grow 6.6 per cent at Rs 18,410 crore. This is in comparison to the September 2011 quarter. The operating profit margin is expected to be around 34.9 per cent. The company average revenue per user is expected to grow 4 per cent to Rs 190 per subscriber. The street expects forex losses to the tune of Rs 300 crore for the December 2011 quarter.
Tech Mahindra
Tech Mahindra is expected to report a 2.7 per cent drop in the net profit at Rs 135 crore for the December 2011 quarter. The company is expected to report a 12.2 per cent growth in revenue at Rs 1,495 crore. This is in comparison to the September 2011 data. The company’s profits are likely to be hit by currency fluctuation. The street is looking forward to the roadmap for a merger with Mahindra Satyam and guidance on business volume and pricing of key contracts with British Telecom.
ONGC
State-owned energy company, ONGC, is expected to announce a 3.8 per cent fall in the net profit at Rs 6,810 crore. The company’s net sales are expected to grow 14 per cent to Rs 21,200 crore for the December 2011 quarter. The higher subsidy burden is expected to weigh on profits. The company is sharing Rs 12,536 crore in the December 2011 quarter as subsidy burden.
Oil prices
Oil prices rose on Tuesday as the US dollar fell against the euro after Federal Reserve Chairman Ben S. Bernanke said the 8.3 percent rate of unemployment in January understates weakness in the US labor market. Oil traded at close to $ 98 per barrel. WTI Crude advanced more than Brent in London, reducing the European benchmark's premium over New York oil for the first time in nine days.
