Opening Bell | L&T, M&M in focus

Markets rise ahead of the Fed meet
Asian markets were trading higher on Wednesday morning with upbeat sentiment from Wall Street before a likely hike in US interest rates, while the dollar held to large gains as treasury yields picked up. Japan’s Nikkei Stock Average gained 1.9%, Hong Kong’s Hang Seng advanced 2% and Shanghai Composite Index was up 0.4%.
Energy shares buoy US stocks
Wall Street indices recorded a second session of gains on Tuesday ahead of a long anticipated meeting of the Federal Reserve’s interest-rate setting committee. A surge in oil prices helped support the energy sector and gave stocks a lift as the Fed is slated to raise rates at the end of the two-day meeting. The Dow Jones Industrial Average, Nasdaq Composite and S&P 500 gained 0.9-1% each.
Export slump continues
In India, merchandise exports fell for the 12th consecutive month in November, down 24.4%, as a weak global recovery reduced demand for goods. Exports dropped $20 billion on account of a sharp fall in shipments of petroleum and engineering products, gems and jewellery and oil meals. Imports also fell sharply by 30% in November to $29.7 billion, led by a fall in both oil and non-oil imports, leaving the trade deficit at $9.78 billion, read more.
Yields of Indian companies’ junk dollar bond rises
Dollar bonds of sub-investment grade Indian firms have seen yields rise in recent weeks in response to a sharp sell-off in the global junk bond markets. Companies whose earnings are closely linked to commodity prices are feeling the heat the most, reports Mint.
L&T receives Rs.1,000 crore from Canada Pension Plan Investment Board
Larsen and Toubro Ltd’s infrastructure arm has received Rs.1,000 crore investment from Canada Pension Plan Investment Board in the second tranche. L&T is also evaluating listing up to five of its operational road assets through an infrastructure investment trust, read more.
SC ban on diesel vehicles above 2 litre capacity to affect M&M sales
Mahindra and Mahindra Ltd shares will be under pressure if the Supreme Court decides to ban registrations of diesel vehicles of more than two-litre capacity in Delhi, starting New Year. If the ban happens, almost half of the models in Mahindra’s portfolio will be kept away from the Delhi market until the end of March, reports Economic Times.
Welspun group to hive off yarn spinning business
Welspun Syntex Ltd shares will be in focus as Welspun Group is hiving out the yarn-spinning business, Welspun Syntex, which will be managed by co-founder Rajesh Mandawewala’s elder son Abhishek, reports Economic Times. This step is part of the efforts to ensure separation of ownership and management, while simultaneously planning a smooth succession of the business to the next generation.
Recovery in oil prices could get underway soon
Even with a global glut in oil supplies set to last well into 2017, there are expectations that the free fall in oil prices are beginning to bottom out, according to Abdalla Salem El-Badri, secretary-general of the Organisation of Petroleum Exporting Countries, read more.