Pre-Market: Markets likely to open lower on weak global cues

The markets are likely to open flat with a negative bias tracking weakness in global markets.

 

Asian share markets got off to a cautious start on Thursday, with Japanese stocks pulling further away from six-week lows as a Russian troop build-up on the border with Ukraine sapped risk-appetite and pushed global bond prices higher.

 

Global equity markets came under pressure as tit-for-tat economic sanctions between the West and Moscow escalated, and as Russia massed around 20,000 combat-ready troops on Ukraine's border.

 

Japan's Nikkei fell 0.3 percent, retreating further from a six-week closing low hit the previous day. MSCI's broadest index of Asia-Pacific shares outside Japan . SGX is quoting at 7,670 down by 25 points.

 

FDI:

 

With the track cleared for foreign investment in construction of new railway lines, gauge conversion, doubling and other public-private partnership (PPP) projects in maintenance, the first flush of capital is likely to come in port and mine connectivity.

 

Operations would be partially opened to foreign entities in dedicated freight lines, high-speed trains and connectivity projects under the PPP model, said an official. A lot would, however, depend on the fare structure, on which the Railway Board is to have the final say. The move comes with a rider. The ministry of home affairs has cautioned against Chinese investment in border rail projects. All FDI proposals will otherwise be cleared under the automatic route, without needing approval from the Foreign Investment Promotion Board.

 

Stocks to watch:
 

The technology pack is likely to remain in focus after the June quarter earnings of CognizantTechnology Solutions, the Nasdaq-listed information technology services company, are in line with expectations. The company has, however, scaled down its annual revenue growth estimate, citing weakness at certain clients and long sales cycles for certain large deals, which dragged its shares down about 14 per cent in early trade.

 

Logistics firm Gati has clocked a 71 per cent increase in consolidated net profit for the quarter ended June 30 at Rs 12 crore on the back of a pick-up in the express delivery market. In the corresponding quarter of last fiscal, it had reported a net profit of Rs 7 crore. Its total income during the period was Rs 398 crore against Rs 322 crore.

 

UltraTech Cement, the country’s largest manufacturer of the product, expects growth of 25 per cent in turnover this financial year. This is on the back of a better demand scenario and a boost for housing and infrastructure after the Narendra Modi government assumed office.

 

Kumbakonam-based City Union Bank posted a 10.2 per cent increase in net profit at Rs 99.49 crore for the quarter ended June 30, 2014, as against Rs 90.28 crore for the same period previous year. Total income was up 7.28 per cent to Rs 754.03 crore from Rs 702.87 crore.

 

Jindal Steel and Power(JSPL) reported a 20 per cent dip in consolidated net profit at Rs 402 crore for the first quarter of the current fiscal due to higher depreciation and finance costs.