Mumbai: The countdown to the president elections has begun. Going by the reports, finance minister Pranab Mukherjee is likely to become the next president of India.
The change of guard in the North Block, where the finance ministry is based, will spark optimism that the new minister or person in-charge will take aggressive steps to arrest the decelerating activity in the domestic economy.
While the Congress party’s presidential candidate will be known by Friday, global equity markets have rebounded on hopes of a fresh stimulus and bargain hunting. Overnight, US stocks gained on speculation that the Federal Reserve will take steps to stimulate the economy. S&P 500 surged 1.17% to 1,324.
Asian markets also opened on a positive note. European Central Bank’s backing of the banking union and a deposit guarantee scheme is being seen as steps in the right direction. Japan’s Nikkei at 8,580 is up 0.51%.
Back home, keep an eye on telecom stocks. The Reserve Bank of India has agreed to use spectrum as collateral, reports the Business Standard. The green signal opens a new funding avenue for the telecom firms.
Reliance Industries has warned that the production at KG-D6 basin will continue to decline if government does not approve the investments needed to boost output. The company also threatened to seek damages for the drop in output. Read more.
Fortis Healthcare stock could witness some action. According to The Economic Times, the company is selling 22-24% stake in Super Religare Laboratories for 370 crore.
The on-going strike at Naroda plant could hit earnings of the Arvind Ltd. According to Nirmal Bang Institutional Equities, Arvind may see annual net profit fall by close to 8% and revenue decline by 1% if the strike continues for 10 more days. Read the Mint report.
Adani Ports and SEZ is examining a possible deal to buy the export terminal at Dhamra port in Orissa, reports Mint. The operator had put up the dry bulk export terminal for sale as iron ore shipments from India-meant to be its main commodity-hit a hurdle due to increases in export duty and rail freight rate.
The Petroleum and Natural Gas Regulatory Board has approved the 1,104 km Kochi-Bangalore natural gas pipeline. The pipeline, estimated to cost Rs 3,500 crore, is expected to be built by GAIL. Read the Mint report.
Petronet LNG is planning to buy stake in Kochi LNG shipping venture. The venture is being formed to haul the gas to its new regasification terminal at Kochi in Kerala. Read the Mint report.
Ashok Leyland is planning to raise Rs 750 crore through a fresh issue of shares. The company wants to use the funds to set up a light commercial vehicle venture. Read the Mint report.
Finally, older fathers may produce offspring with long lives, says a study. According to the study children of older fathers inherit chromosomes that protect them from degeneration. Read the Bloomberg report.