Opening Bell 29 May | Markets eye Infosys as management churn continue

Mumbai: Asian markets posted tepid gains on Monday morning after US and European stocks declined, reports Financial Times. China’s Shanghai Composite was trading flat and Hong Kong’s Hang Seng was up 0.3%. Japan’s Nikkei Stock Average was down 0.3% after retail sales, a key barometer for the economy, declined 13.7% in April, from a year earlier.

Overnight, US markets closed marginally lower after touching an all-time high on Tuesday as investors took a breather after four consecutive sessions of gains. The S&P 500 declined 0.1%, Dow Jones Industrial Average was down 0.3% and Nasdaq Composite also lost 0.3%.

In India, Infosys Ltd shares will be in focus after B.G. Srinivas, the president and a possible contender for chief executive officer, decided to leave the company. With Srinivas departure, all the five non-founder leaders have left Infosys and an outsider looks the most likely bet as next CEO.

The National Democratic Alliance (NDA) government is likely to make implementation of the goods and services tax a priority paving the way for easing of cargo movements across the state boundaries. Finance minister Arun Jaitley may meet state finance ministers soon to sort out differences over GST. Read more.

The finance ministry may come out with a liberal foreign investment policy that will allow at least 49% investment in all sectors, barring a few strategic ones, as part of plans to stimulate overseas interest and help lift the sagging economy, reports Economic Times. 

The finance ministry has also drawn up a strategy to revive the primary market through tax breaks and bigger share for retail investors in the initial public offers, read more.

Srei Infrastructure Finance Ltd shares will see some action as it plans to acquire Abhijeet Group’s 1,080 megawatt Jharkhand power project at around Rs.9,000 crore, marking the first of several acquisitions in India’s power sector, reports Mint.

Tata Motors Ltd shares will be under pressure after it said that its domestic operations would likely not post a profit for the fiscal year that ended in March, hurt by sluggish demand. Tata Motors net profit declined 75% to Rs.300 crore in FY13.

Tata Steel Ltd and Steel Authority of India Ltd (Sail) shares will be in focus as the Odisha government is expected to issue orders that will allow the steel companies to restart operations at their captive mines shut since 16 May, reports Economic Times.

Jet Airways India Ltd shares will continue to remain in the limelight after the 9% fall in stock price on Wednesday as the airline expects to return to profit in 18 months, following implementation of a new route network, fleet strategy and cost optimization measures, reports Business Standard.

Unitech Ltd shares will be under pressure after it reported a net loss of Rs.51.5 crore in the March quarter due to write-down of around Rs.100 crore of investment in the telecom business. 

Hero MotoCorp Ltd reported its fifth profit decline—3.5% to Rs.554 crore—in seven quarters due to higher tax burden and tepid sales growth in a sluggish economy, read more.

Lastly, Apple Inc. has sealed its biggest ever acquisition with the $3 billion purchase of Beats Electronics, giving the company new heft in digital streaming although it broke Apple’s long-standing convention of developing its technology in-house, reports Financial Times.

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