Show results for:
Markets Next Week----July 24, 2017
VIDEO
Date: 24-07-2017 Would the late fall in global stock markets on July 21, impact Indian stock markets on July 24? What would be the impact of Reliance Jio's smartphone offer, Wipro's share buyback and ONGC-HPCL merger FundooMoney website: www.fundoomoney.com Sunil Kewalramani Links Edited Highlights 1:57 Three developments stood out last week 2:00 Reliance Jio came with its disruptive move of offering low cost smartphone to users 2:06 Analyst are talking about a huge impact on other telecom companies and their stocks 2:24 Wipro, like many other IT companies announced a buyback offer 2:33 Then, there was the HPCL ONGC merger that was announced 3:01 Reliance Jio smartphone offer is a major disruption and will very badly affect the stocks of other telecom companies 3:29 While Reliance will make greater inroads into users, but the impact of this offer on Reliance will have to be seen 3:53 Some figures will have to worked out to see how this offer will impact its profitability 4:03 With reference to Wipro buyback, many IT companies are resorting to share buybacks to jack up their stock prices 4:11 But this not going to help them too much since it is a short term move 4:26 What IT players need is a good business model. And I am not seeing too much of that happening 4:32 Buybacks are move to perk up share prices and are a signalling motive 4:52 While the Wipro stock initially reacted positively to this news but I am not seeing too much of an impact of this 5:05 On the ONGC and HPCL merger, the government feels that this will give a better integration of upstream and downstream activities 5:19 There is a question of synergies since one is an upstream player and the other is a downstream player 5:48 This is very similar to the efforts of creating a banking behemoth through mergers 5:59 This should help in terms negotiation power and dealing with customers 6:17 The key will be the kind of synergies that comes up and how the merger will be executed 6:33 When the markets were closing on Friday, July 21, there was a sharp rebound 6:50 There was a sea of read in the world markets thereafter 7:04 The problem is that in the Eurozone, Euro has been strengthening,. This impacts the exports growth of these countries 7:26 There are a slew of negative factors in the global markets 7:44 This is more of a liquidity driven rally 8:11 All over the world, there is this profitability increase due to cost cutting and other measures 8:19 But turnover growth is slowing down 8:24 Due to easy cost of capital, companies are being able to shore up their profitability even as their sales are not growing well 8:41 This shows that customer demand remains week in different pockets of the world 8:51 I still hold my view that a correction is round the corner SHARE
