New Delhi: The gains are petering out, but the momentum is still positive. Overnight, stock markets in the US rose as European officials moved to solidify the region’s rescue fund. The S&P 500 at 1,175 rose 1.07% on buying in shares of commodities and industrial companies.
Stock markets in the Asia rose for a second day as Greece made progress in meeting requirements for more international aid. The optimism is leading to buying in shares of export dependent companies such as Samsung and Sony Corp. The Nikkei at 8,627 is up 0.20%.
Even though the sentiment continues to be positive, expect more volatility. German Chancellor Angela Merkel will need to hard-sell the crucial euro zone rescue fund reform to her fractious center-right coalition. Add to this the approaching F&O expiry, there will be lot of push and pull factors to watch-out for local investors.
Back home, NMDC has found more iron ore reserves. According to reports, the latest study by the company has found iron ore reserves to be higher by 50% at 2,176 million tonnes now.
Meanwhile, the crunch in iron ore supply might force JSW Steel to shut its Vijaynagar plant. The plant is running at 30% capacity following a Supreme Court order which banned iron ore mining. The Vijaynagar plant accounts for over 70% of JSW Steel’s installed steel-making capacity.
Stocks of ADA group companies had a field day yesterday. Shares of Reliance Capital and Reliance Communications surged after the promoter Anil Ambani announced plans to divest stakes in key subsidiaries. Addressing the annual general meeting, Ambani also said that his group firm Reliance Power is on track to achieve a total operating capacity of 5,000 megawatts by the end of 2012.
The Comptroller and Auditor General of India, on the other hand, is studying the government decision to allow diversion of surplus coal by Reliance Power from the captive coal mines associated with the Sasan ultra-mega power project to another project of the company. The audit report is expected to be ready by early next year.
Speciality chemicals and drug maker Vivimed Labs raised Rs 127 crore from private equity investors by selling a 24.6% stake. The company plans to use the funds for expansion of its production facilities.
SAIL is looking for a foreign company to operate its mines at Chiria. Lack of expertise and tight environment laws is forcing the company to look for specialists who can handle the compliance issues better.
Finally, Apple Inc. will introduce a new version of the iPhone next week, the first upgrade of its best-selling product since Steve Jobs resigned as CEO. The new iPhone is expected to have better camera and faster processor. Apple is estimated to sell 110 million units of iPhone in 2012. Read more..-