Mumbai: The big weekend is here. Markets across the world are gearing up for the Greece elections, to be held on Sunday. Overnight, stocks markets in the US surged on reports that major central banks are preparing a coordinated action if the Greek election results lead to turmoil in the financial markets.
According to a Reuters report, major central banks are planning to inject liquidity and prevent a credit squeeze if the Greek election outcome causes tumultuous trading.
The ‘co-ordinated’ action reports have lifted investor sentiment. S&P 500 rose 1.08% to 1,329 on broad based buying. Asian markets, though, are swinging between gains and losses. Fears of financial turmoil are leading to cautious trading. Nikkei at 8,561 is down 0.09%.
Back home, HDFC stock could be in focus. Two Macquarie Capital Securities analysts have questioned accounting process adopted by the company. According to them HDFC has been adopting aggressive accounting practices by passing provisioning through reserves. Read the Mint report.
Keep an eye on Jaiprakash Associates stock. The Aditya Vikram Birla Group and Lafarge are in talks to buy the company’s cement units in Gujarat and Andhra Pradesh, reports The Economic Times.
Pushed back by the regulatory uncertainty, Tata Power has put on hold all new imported coal-based projects. The company, however, will press ahead with its 4,000 megawatt imported coal-fired project plant in Gujarat. Read more.
Tata Communications is looking to buy stake in Prizm Payments Services, reports The Economic Times. The company runs payment services for credit cards and manages ATMs.
Budget airline, SpiceJet plans to raise funds from private equity firms, reports Business Standard. According to the report, private equity firms Blackstone, Bain Capital and KKR are in talks with the company.
Sterling Holiday Resorts had turned Ebitda (earnings before interest, tax, depreciation and amortization) positive in the three months ending March, the first quarter of operating profits in the last 15 years. Read the Mint report.
Coal India could lose as much as Rs 6,000 crore worth of revenue if it reduces sales in the spot market, reports The Economic Times. According to the report, the company may have to cut lucrative auction sales to meet the supply commitments.
Moser Baer is planning to restructure foreign currency convertible bonds worth $88.5 million, reports The Financial Express. The bonds, due on June 21, are expected to be reissued or rolled over.
Finally, Takeshi Fujimaki, a former adviser to billionaire investor George Soros has warned that Japan could default in the next five years. According to Fujimaki, Japan’s debt, estimated to hit 245% of its annual economic output in 2014, is in a bubble and could “blow up” anytime. Read the Bloomberg report.