New Delhi: Expectations on the Euro zone summit are rising by the day. Despite the Standard & Poor’s warning of the mass downgrade, stock markets in the US rose on optimism that European leaders would take strong steps to contain the debt crisis in the region. S&P 500 at 1,258 closed marginally higher by 0.11%.
Markets got a fillip after the Financial Times reported that European leaders will discuss boosting the firepower of the euro zone’s rescue fund.France and Germany are expected to push for stricter budget rules at the summit, scheduled to take place on Thursday and Friday.
Asian markets also rose on optimism that European leaders will step up efforts to fight the debt crisis in the region. Japan’s Nikkei at 8,632 is up 0.67%.
Back home parliament will reconvene on Wednesday. With the government putting the FDI in retail sector on hold, the parliament is expected to open on a peaceful note. Apart from the government’s views on the FDI in retail, markets will also track the progress of the pending bills.
In a positive development for power producers and other consumers, power ministry is pushing for abolition of the customs duty on the imported coal. According to the The Hindu Business Line report, the ministry is trying to garner Planning Commission’s support on the issue.
Sales of consumer goods in rural areas are slowing. According to a Business Standard report,sales growth in rural areas has fallen to around 10% in April-September this year. The slower sales could adversely impact volumes of the FMCG companies.
Keep an eye on, Deccan Chronicle, Pantaloon and Future Capital Holdings stocks. According to The Economic Times report, Hyderabad based Deccan Chronicle is buying Pantaloon stake in Future Capital Holdings.
Axis Bankis reducing its dependence on large and medium companies. The bank is looking to cash in on an increase in individual lending opportunities in smaller towns. It has set a target of increasing its retail loan portfolio to 30% of total loans, up from 21% at the end of September.
Mahindra & Mahindra is expecting the Mahindra Navistar to cash break-even in the next 12 months. Mahindra Navistar is a 51:49 venture between Mahindra and Mahindraand truck and engine manufacturer Navistar Inc. It sells tractor trailers and tippers ranging between 16 tonnes and 31 tonnes.
Hindalco Industries is looking to make an additional investment of around Rs 25,700 croreto more than double its aluminium production capacity by 2016, reports Business Standard. The pace of investments, though, would largely depend on clearances, the company warned.
Ranbaxy Laboratories launched the generic version of the Caduet in the US market. The drug is used for treating cardio vascular diseases. Read The Economic Times report.
Finally, adventurer Mark Moffett found the world’s biggest insect. The cricket like creature, which weighs 71 grams and has a wing span of seven inches, can eat a carrot. Read The Telegraph report.