Mumbai: Just two weeks before the presentation of Union Budget 2013, the government faces fresh macroeconomic challenges after the data released on Tuesday showed that industrial output contracted 0.6% in December and consumer price inflation accelerated in January to a 13-month high of 10.8%.
Global markets inched higher amid a number of corporate earnings as investors awaited President Barack Obama’s state of the union address for clues on the outlook for the world’s largest economy, reported Financial Times. The Dow Industrials gained 0.3%, the S&P 500 was up 0.1%, while the Nasdaq Composite slipped 0.2% each. European indices also ended higher on Tuesday.
Elsewhere in Asia, Japan’s Nikkei Stock Average slipped 0.5% on back of profit booking, while South Korea’s Kospi advanced 0.4% led by gains in exporter shares, reported MarketWatch. Markets in China, Taiwan and Hong Kong were shut for the third consecutive day on account of the Chinese New Year.
Lenders to Kingfisher Airlines Ltd have decided to recall all loans given to the debt-ridden airline, kicking off the process for the recovery of Rs.7,000 crore in debt, reported Mint. Some bankers said the process of recalling the loans will take seven-10 days to get under way.
Information technology firms are hiring failed entrepreneurs and successful venture capital executives in Silicon Valley so that they can win fresh business from top outsourcing clients, reported Mint.
Cash-strapped Lilliput Kidswear is in talks with merchant bankers to float an initial public offering to raise Rs.400 crore in the next financial year, reported Business Standard. The company, with a debt of Rs.850 crore, had restructured Rs.586 crore of it last year.
Indian corporates such as Tata Motors Ltd, Tata Steel Ltd, Jindal Steel and Hindalco Industries Ltd that have made acquisitions abroad through special purpose vehicles, may face merger and acquisition tax because they have earned fees for corporate guarantee and interest fee loans, reported Business Standard.
Bank of India will be on the buzzer following a Business Standard report that it is working to reduce non-performing assets by Rs.2,600 crore by March 2014. The bank has established 15 specialized asset recovery branches and will upgrade small accounts.
Tata Motors Ltd shares may see some action after sales at the UK Jaguar Land Rover unit rose 32% in January to 34,877 vehicles on the back of soaring volumes in China and the Asian-Pacific region.
Slower government approval for testing new medicines is threatening India’s aspirations to be a fast-growing hub for clinical trials, and has prompted some drugs companies to shift operations elsewhere, reported Reuters. Piramal Enterprises and Lupin Ltd have started looking abroad for drug trials.
Lastly, India bought helicopters which US President Barack Obama rejected as being costly, reported Economic Times. Obama had found a variant of the AW-101 helicopters too exorbitant, but the Indian government inked a Rs.3,546 crore deal for 12 plush helicopters in 2010 for VVIP travel.