Mumbai: It’s a new week and there are hopes of a new beginning in the Euro-zone. The International Monetary Fund is drawing up plans worth €600 billion in a rescue package to save the common currency that was on a brink of break up last week, reports The Telegraph. The IMF may offer credit to Spain and Italy which have been roiled in the past few weeks due to surging bond yields.
Also, European leaders are pursuing a new pact for fiscal integration to prevent the common currency nations from falling apart, reports The Wall Street Journal. The new agreement would lead to tighter budget controls and is aiming to shrink excessive debt. Analysts said that proposed pact is the boldest step by the European Union to stop the crisis from spreading after they agreed to bail out Greece.
On Friday, the US markets ended marginally higher, after six days of losses, but they posted their worst weekly fall. The US indices were on a roller coaster ride tracking European bond yields and credit default swaps (CDS) (the price of insuring Europe’s debt against default), which climbed to record high. Going forward the markets will take cues from jobs and retail sales data, reports MarketWatch.
Asian markets advanced on Monday morning following positive developments in Europe, reports MarketWatch. Banks and commodity related shares were leading the gains. Japan’s Nikkei Stock Average rose 1.4%, China’s Shanghai Composite was up 0.4% and the Hong Kong’s Hang Seng Index added 2.6% at the time of writing.
Back in India, Reliance Industries may be on the radar as it has called off the deal with Bharti Enterprises and AXA, reports Wall Street Journal. Bharti was supposed to sell its 74% stake in two Indian insurance ventures to Reliance Industries and Reliance Infrastructure. The companies mutually called off the talks after they were unable reach an agreement on governance and the long term goals of the venture.
NTPC may be in focus on Monday on expectations that it is likely to get into a coal logistics joint venture with Coal India (CIL) and Shipping Corporation of India (SCI). CIL and SCI are looking forward to import 16 million tonnes of coal from NTPC to meet its raw material requirements.
DLF will be closely watched on hopes that country’s largest realty firm will reduce its debt from Rs 22,500 crore to Rs 10,000 crore in the next two years. In the past few years DLF has been selling its non-core assets to reduce debt. The company is looking at selling Aman Resorts and is also banking on increasing revenues for shrinking the debt.
Moving on to DLF Brands, a subsidiary of DLF is all set to expand and launch multi-brand retail stores to sell international fashion labels, reports Economic Times. Currently, DLF Brands has standalone stores for 11 brands in India, and is planning to open five stores every year.
Market conditions are not suitable for the government to go ahead with the divestment plans. Hence, the government is looking at alternatives such as the buy back route for divesting in PSUs such as SAIL, reports Business Standard. Under the buyback option, the company can raise money by selling its equity in the company to the public sector unit itself, since the government owns 85.82% in the steel major.
Dhanlaxmi Bank may slip in trade today after the credit rating agency Fitch revised the private sector lender’s outlook to stable from positive citing no improvement in its credit profile in the medium term, reports Business Standard. The bank may grow at a slower pace compared to 81% loan growth seen in 2010-11. Fitch may further downgrade the bank’s rating if there is further deteriorating in the funding.
Lastly, the Gujarati community is learning Chinese and Japanese because it augurs well to expand business, reports Economic Times. The youngsters in Gujarat are not far behind as the Narendra Modi government looks at China and Japan for investments. Private tutorials for learning Chinese languages are running in full batches for the first time in Gujarat.