Mumbai: Ahead of RBI’s decision on interest rates expected Monday next, the inflation numbers for May to be released today will be carefully watched. Economists polled by Bloomberg peg the wholesale price gauge at 7.50%. In April the index rose by 7.23%.
Citing increased debt burden, weakening economy and limited access to capital markets Moody’s has cut Spain’s bond rating by three notches. The ratings agency also reduced Cyprus’s rating and warned that it could lower Spain’s rating further.
The ratings downgrade, though not unexpected, has deepened investor scepticism about the Euro zone’s ability to contain debt crisis in the region.
Also weighing on the sentiment is the weak economic data from the US. Retail sales fell for a second straight month in May. The data adds to the employment and manufacturing reports which have pointed to the weakening economic recovery. S&P 500 lost 0.70% to 1,314.
Back home, Larsen & Toubro stock could continue to trade with positive momentum. Mitsubishi Heavy Industries is considering the option of buying a stake in Larsen & Toubro’s subsidiary L&T Shipbuilding, reports The Economic Times.
Italian firm Eni SpA is planning to exit its oil and gas business in India, reports Mint. The company is reportedly in talks with ONGC to sell its stake.
Coal India could continue to face pressure from its UK based shareholder The Children’s Investment Fund Management. The fund wants “hundreds of million dollars” from Coal India as compensation for not complying with its demand to end discounts on coal prices. Read the Mint report.
In another report, Coal India has deferred its plans to buy overseas assets. According to The Economic Times, the company has stopped talks with foreign firms.
Keep an eye on the SKS Microfinance stock. The Reserve Bank of India is likely to relax some of the tough new regulatory requirements it has stipulated for microfinance institutions that operate as non-banking financial companies. Read the Mint report.
A consortium led by GSPL has been given an extension on the Mallavaram-Bhopal-Bhilwara-Vijaipur pipeline project after it missed a deadline on the financial closure, reports Mint. The regulator has now given the consortium until 2 July to tie up the funding.
Britannia Industries is investigating irregularities committed by some of its employees. The company has put 10 employees on notice. Read more.
Finally, Lance Armstrong may be stripped of his tour titles. The US Anti-Doping Agency brought new doping charges against Armstrong who won a record seven Tour de France titles. Read the Bloomberg report.
