Opening Bell 4 April | Fed talk dampens sentiment

Opening Bell 4 April | Fed talk dampens sentiment
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First Published: Wed, Apr 04 2012. 07 54 AM IST

Updated: Wed, Apr 04 2012. 07 54 AM IST
Mumbai: With the improving job market and increasing consumer spending pointing to steady recovery in the US economy, Federal Reserve policymakers are seeing no need for another round of monetary stimulus.
The minutes of the central bank’s meeting showed only two of the Federal Open Market Committee’s 10 voting members saw the case for additional stimulus. The toning of the stimulus talk has dampened expectations of the stock markets.
S&P 500 fell 0.40% to 1,413 on selling in stocks of energy, raw materials and financial services companies. Asian markets also opened on a weak note. South Korea’s Kospi fell 0.41% to 2,040. Softer Yen, meanwhile, is providing support to Japanese shares. Nikkei at 10,052 is up 0.02%.
Back home, a presidential decree would force Coal India sign fuel supply agreements with power producers. The agreements will bind the miner to supply as much as 80% of the fuel requirements of the power plants or pay penalties.
Future Capital Holdings stock could be in the limelight. A private equity fund is in talks to acquire controlling stake in the company, reports The Economic Times. The promoter, Future group, reportedly wants to sell its 54% stake in the company.
To tap new growth avenues, BHEL is planning to diversify into sectors such as oil and gas, transportation and defence. In oil and gas the company is aiming to become a sub-supplier to builders of offshore rigs. It is looking for a technical partner to make big naval guns.
Tata Power stock could witness some action. The company may be unable to challenge the Indonesian government decision that will raise coal prices. To secure fuel supplies the company bought 30% stake in two Indonesian coal mines. However, starting 23 September, Indonesia has stipulated that coal produced in the country will be pegged to market prices.
Reliance Industries and Hindustan Unilever are coming together to set up a chain of beauty and wellness stores across the country, reports Business Standard. The stores are expected to be stationed in Reliance Hypermarkets.
Maruti Suzuki is set to re-enter the insurance broking business. The company has formed Maruti Insurance Broking Pvt. Ltd. The unit will be chaired by Mayank Pareek, executive officer (marketing and sales) at Maruti.
Rural Electrification Corporation has signed an agreement with a German bank to borrow Rs 700 crore at low interest rates. The company is expected to use the funds to finance renewable energy and energy efficiency projects. Read the Business Standard report.
L&T Infotech, a unit of Larsen & Toubro is facing the risk of a law suit in the U.S. According to The Economic Times, the company is accused by its former employee of violation in immigration laws.
Finally, high tobacco usage and subsequent rise in chronic diseases are emerging as a significant risk to the Chinese economy. With non-communicable diseases like cancer leading to four out of five deaths, authorities are worried about its impact on the labour force and the economy as a whole. Read the Bloomberg report.
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First Published: Wed, Apr 04 2012. 07 54 AM IST
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