Mumbai: The December Index for Industrial Production (IIP) numbers will be released today. A survey conducted by Bloomberg pegs the IIP at 2.6%. In November, the industrial production rose by 5.9%.
Meanwhile, its mea culpa time for Greek politicians. Euro zone ministers refused to approve the 130 billion-euro bailout on fears that the country’s politicians may again
backtrack on commitments.
Exasperated by a string of broken promises, Euro zone ministers are demanding more measures and a parliamentary seal of approval before providing the aid. The development, even though it did not come as a surprise to the markets, has made investors even more cautious. Stock markets in Asia opened on a weak note. Japan’s Nikkei at 8,979 is down 0.25%.
US markets closed with marginal gains. The S&P 500 gained 0.15% to 1,351. Brent crude climbed above $118 to $118.42 a barrel. Oil rose on speculation that falling jobless claims in the U.S. might increase demand for fuel.
Back home, micro lenders continue to face tough times. Public sector banks have raised the effective interest rate at which they lend money to the microfinance institutions. Citing higher risks, the banks raised the interest rates to 15-18%.
Tata Steel stock could witness some action. The company posted its first quarterly loss in nine quarters. High inventory write-downs, rising input costs and falling demand in European markets impacted the company. The company reported a loss of Rs 687.36 crore for the December quarter. Analysts were expecting it to report a profit of Rs 257 crore.
HPCL, on the other hand, reported a 12 fold rise in December quarter profits to Rs 2,725 crore. Higher compensation from the government towards under-recoveries helped the company report robust profits.
Monnet Ispat and Energy is in talks to form a new consortium led by SAIL to bid for copper and gold reserves in Afghanistan. The development comes after the SAIL led group won rights to mine a major iron ore reserve in the country.
Adani Enterprises has decided to sell its real estate business to fund its new mining venture and existing businesses. The company invested at least Rs 2,000 crore in projects in Ahmedabad, NCR and Mumbai.
To raise capital, Tata Global Beverages is considering the option of listing its international business on the stock exchanges. For the year ending 31 March, the company is expecting to grow its revenues by 7-8%, double the growth it witnessed last year.
Apollo Hospitals, Aurobindo Pharmaceuticals, BPCL, Britannia Industries, DLF, IDFC, JSW Steel, Pantaloon Retail, Reliance Capital, Reliance Communications, Shriram Transport Corporation, Sun TV Network, Tata Chemicals and Tata Power will declare their December quarter earnings today.
Finally, billionaire investor Warren Buffett thinks bonds are “among the most dangerous” of assets. According to Buffett, low interest rates and inflation should dissuade investors from buying bonds. Read the Bloomberg report.