Europe’s woes refuse to go away. Sure, France and Germany have agreed to boost the bailout fund, but they are still quibbling about the details. Now, the countries are not able to agree on the role of the European Central Bank in leveraging the rescue fund.
While French President Nicolas Sarkozy flew to Germany to join the talks, the delay in finding a solution is making the markets nervous. Overnight, stock markets in the US fell on selling in stocks of Apple Inc and financial services companies. The S&P 500 slipped 1.26%. Asian markets also opened on a negative note.
Back home, finance minister Pranab Mukherjee has finally admitted that economic growth may fall short of 8% as high commodity prices and global uncertainty are taking a toll of the Indian economy. He also said that it would be difficult for the government to stick to the budgeted fiscal deficit target of 4.6%.
GVK Power and Infrastructure increased its stake in Bangalore International Airport Ltd to 43% from 29% by buying 53.8 million equity shares from Siemens Project Ventures GmbH for Rs 613.82 crore. The move comes after the company acquired a majority stake in Mumbai International Airport Pvt. Ltd.
The flip flop on the SBI rights issue continues. Now, the finance ministry has ruled out a rights issue in the current financial year. At the same time (probably with a view to soothe the markets), the ministry reiterated the government’s commitment to infuse fresh capital in the bank.
The Department of Telecom (DoT) has slapped a Rs 50 crore fine on Idea Cellular for violating several norms. According to reports, the department has given the telecom company 15 days to deposit the amount. Read more...
Hero MotoCorp has cut capital expenditure by one-third to Rs 600 crore for the current financial year. The company in June said it has set aside Rs 900 crore for capital expenditure for the year ending March 2012.
Bajaj Auto, Thermax, Cairn India, Yes Bank, Biocon, Exide Industries, IDBI, Ultratech Cement, Hexaware Technologies and Noida Toll Bridge will declare their results today. The food inflation numbers will also be released today.
Action continues in the auto sector with Mahindra & Mahindra widening its sports utility vehicle portfolio. The company is reportedly developing a mini-SUV priced below Rs 4 lakh. According to reports, the company is developing the SUV with Ssangyong.
Tata Teleservices is bringing all its services under Tata DoCoMo brand. The company said it wants to cut spending on advertisements and promotions and discontinue the Indicom brand.
Finally, parts of eastern Ohio went into panic after dozens of exotic animals including tigers, lions and bears were let loose on a farmland by their owner before he committed suicide. As the huge animals roamed inside and outside the farm, schools were shut and panicked residents were told to stay inside. Read more...