Mumbai: The wholesale price index for November will be released today. A Bloomberg survey of economists has pegged the November inflation at 9.02%. In the previous month the price gauge stood at 9.73%. Any easing in price pressures will add to the hope that the central bank will reverse its tight monetary policy soon.
Meanwhile, stock markets in the US fell as the Federal Reserve refrained from taking new actions to bolster growth in the economy. The S&P 500 at 1,225 lost 0.85%. The Federal Open Market Committee which met in Washington said the U.S. economy is ‘expanding moderately’ and refrained from lowering borrowing costs further.
Asian markets also opened on a weak note. The lack of stimulus talk in the FOMC meeting dampened the sentiment. Japan’s Nikkei at 8,536 is down 0.20%.
Back home, to rejuvenate the electricity distribution sector, the government has approved the creation of the National Electricity Fund worth Rs 8,466 crore. The fund will provide interest subsidy for projects in the power distribution sector.
Expect some action in Max India and Bajaj Finserv stocks. A parliamentary panel has almost rejected the proposal to allow 49% FDI in the insurance sector, reports the Economic Times.
Keep an eye on Network18 Media and Investments and TV18 Broadcast stocks. According to the Business Standard, the Network18 group is close to merging ETV’s 11 regional channels and one Telugu news channel with itself. The amalgamation, if it takes place, will give a nationwide regional platform for the Network18 group.
Arvind has entered into an agreement to set up a joint venture with German firm, PD Fibre Glass Group. The venture will manufacture glass fabrics for industries in wind power, shipbuilding and automobile sector. According to the Business Standard, the company aims to generate revenues worth Rs 250 crore in the next three years.
Tata Communications is aiming to turn its South African arm, Neotel, into a billion dollar enterprise, reports The Economic Times. According to the report, the company is looking to increase Neotel’s footprint and bandwidth of service offerings.
ONGC is buying BG group’s stakes in an exploration block in KG basin. According to The Economic Times, with the latest transaction, ONGC will assume 100% economic interest in the shallow-water block.
Staying with ONGC, the oil ministry has denied allocation of the natural gas to the company’s petrochemical project, reports The Economic Times. The development is expected to adversely impact the economics of the company’s proposed project.
Finally, Dennis Gartman, who correctly predicted the commodities slump in 2008, is forecasting the gold to enter a bear market. In the near-term, Gartman expects the yellow metal to decline to as low as $1,475 an ounce. Read the Bloomberg report.