Mumbai: The slide has begun again. In a surprise move, Standard and Poor’s has cut its ratings on Italy by one notch to A/A-1. The ratings agency said that the outlook for growth was worsening and there was little sign that the government could respond effectively.
Negative cues from Europe led to a weak opening in Asian equities. Stock markets in Japan fell on fears that the worsening debt crisis in Europe will hit earnings of the companies in the country. The Nikkei at 8,752 is down 1.26%.
Meanwhile, US stocks closed lower as concerns about the Greece debt crisis made investors wary of taking fresh positions. The S&P 500 at 1,204 is down 0.98%.
Expect negative momentum to continue in Reliance Industries stock. The CBI is considering a case against the company for alleged irregularities in KG basin. According to reports, the case will also name officials belonging to the DGH and petroleum ministry.
In a fresh blow to Maruti Suzuki, the Haryana government has pulled out of the talks between the company’s management and workers. According to reports, the negotiations broke down after several union leaders were arrested. With the government pulling out of the talks, the matter now is expected to head towards labour courts. Read more...
Expect some action in the Sun Pharma stock. The company announced that its subsidiary has resolved issues with the US FDA regarding violation of manufacturing standards.
PE firms Blackstone and Carlyle Group have reportedly expressed interest to bid for Reliance Communications’ tower business. According to reports, potential investors are conducting due diligence on the tower unit, which might lead to a bid. Read more...
Mercator Lines is acquiring another coal mine in Indonesia. This time the acquisition is expected to cost the company around $30 million. The mine is estimated to hold resources of around $60 million tonnes.
Sun TV Network has admitted that the recent adverse developments in the Tamil Nadu could weigh on the company’s revenues. The state government has recently decided to revive a state-owned cable television business. The move could erode viewership of Sun’s popular Tamil TV channels, as the state cable service does not currently include them.
Keep an eye on Vivimed Labs stock. The company is in talks to Uquifa SA of Spain for $55 million. The company is expected to finance the acquisition through debt that it plans to raise from Exim Bank.
Welspun Infratech has reportedly bought a 50% stake in a Rs 400-crore project being developed by ARSS Infrastructure in Bhubaneshwar. A unit of ARSS infrastructure is developing a bus terminal in a 15 acre complex in the city. The company wants to use the surplus land at the terminal for building commercial spaces. Both ARSS Infrastructure and Welspun Corp are listed on the bourses.
Finally, overconfidence or self-delusion might not be all that bad. A study, for the first time, found that overconfidence actually beats accurate assessments in a wide variety of situations, be it sport, business or even war. According to researchers, over a long period of time, the evolutionary principal of natural selection is likely to have favored a bias towards overconfidence. Read more...