Mumbai: The political turmoil in Greece is deepening by the day. According to BBC News, the leader of the far left political party has pulled out of the coalition talks.
While the development will take the country a step closer to the elections, the prospects of an electoral win for the anti-bailout party and the subsequent exit of Greece from the Euro area is making investors jittery.
Stock markets in Asia, on the other hand, rose in morning deals as China cut the amount of cash banks must set aside as reserves to boost economic growth.
The central bank said it will cut the reserve requirement ratio by 0.5 percentage points. Read The Wall Street Journal report. Japan’s Nikkei at 9,016 is up 0.70%.
Concerns about the political turmoil in Greece, though, are weighing on crude prices. Brent crude fell 0.33% to $111.89 a barrel. Saudi Arabia wants Brent crude oil to drop to $100 a barrel. With supplies “outweighing” demand, the world’s largest oil exporter wants prices to fall further. Read the Bloomberg report.
US stocks closed lower on Friday. Concerns about the impact of political tensions in Greece on the European debt crisis made investors wary of equities. S&P 500 fell 0.34% to 1,353.
Back home, interest rates on short-term debt instruments have crossed 10% levels, reports Business Standard. Heavy government borrowing is weighing on liquidity in the system. Continuance of high interest rates for a long time will increase cost of funds for the banks.
Private sector banks are more confident of their prospects in 2012-13. HDFC Bank, ICICI Bank and Axis Bank expect to disburse loans at a faster clip than the Reserve Bank of India’s 17% credit growth target. Read the Mint report.
Promoters of sugar firms are increasing their stakes in their companies. According to The Hindu Business Line, at least eight companies have witnessed a rise in promoter holding in the last one year.
Meanwhile, the government is unlikely to impose a cap on sugar exports. According to a Business Standard report, sugar exports may be allowed without any restriction.
Keep an eye on the Reliance Communications stock. According to The Economic Times, the telecom regulator has proposed reduction of the reserve price of CDMA spectrum but made no change in its recommendation for GSM spectrum auction.
Easing crude prices could provide some support to the stocks of oil marketing companies. Also the government is likely to allow the state oil companies to hike the fuel prices once the parliament session ends in this month.
Lupin is looking to launch the generic version of an anti-HIV drug in the US, reports Business Standard. The drug, which has market size of around $315 million, is expected to give a fillip to the company’s revenues.
Gujarat State Fertilizers and Chemicals is considering the option of setting up a liquefied natural gas terminal with Gujarat State Petronet, reports Mint. The firm is reportedly awaiting the new urea policy before going ahead with the expansion plan.
It will be a results heavy day. Abbott India, Adani Ports, Adani Power, Alstom T&D, Ashok Leyland, Eicher Motors, Havells India, Indraprastha Gas, IVRCL, JSW Steel, Larsen & Toubro, Maharashtra Seamless, Manappuram Finance and Orchid Chemicals & Pharmaceuticals are some of the notable companies that will declare their March quarter earnings today.
Finally, a growing number of South Koreans are fleeing stress and the city environs for the countryside. An estimated 10,503 families left Korean cities in 2011 to take up farming, more than double the number in 2010. Read the Reuters report.