Mumbai: With European officials getting down to details, markets are getting nervous about possible roadblocks. Inspectors from the EU and IMF are headed to Greece to scrutinize the austerity plans. German Chancellor Angela Merkel is ironing-out the differences in her government and the ruling party ahead of a vote to expand Europe’s bailout fund.
While the anxiety is keeping the investors on the edge, it is F&O expiry day in the domestic market. Food inflation numbers will also be released today.
Overnight, selling in commodity related-stocks led to sharp correction in the US markets. The S&P 500 snapped a three day rally and closed at 1,151, down by 2.07%.
Asian stocks also fell for the first time in three days as weak commodity markets and European concerns made investors wary of equities. The Nikkei at 8,509 is down 1.23%.
Promoters of private sector banks might get some relief from the Reserve Bank of India. According to reports, the central bank is in favour of increasing the promoters’ shareholding limit in the banks from 10% to 15%. Read more...
Expect positive momentum to continue in the DLF stock. According to reports, a Saudi Arabian prince and a Chinese investor are vying with French LVMH group to buy its luxury hotel chain Aman Resorts. DLF is planning to sell the hotel chain to concentrate on core business and reduce debt.
In a new twist to the GVK-Hancock deal, the GVK group management is reportedly looking to increase the GVK Power and Infrastructure’s holding in the Australian firm to 49% in phases over the next 2-3 years. As per the current plan, GVK Power and Infrastructure will hold 10% equity stake in the Hancock assets.
The capital starved Kingfisher Airlines is exiting the low-fare business. With margins in the low fare business getting squeezed by rising costs, the company has decided to halt the Kingfisher Red service in the next four months.
Pipavav Defence and Offshore Engineering and Airbus SAS have agreed to jointly start an aircraft maintenance, repair and overhaul unit in India. The parent company of Airbus will hold 26-49% equity in the joint venture.
Keep an eye on Sterling Holiday Resorts India stock. Rakesh Jhunjhunwala and Radhakrishna Damani have invested around Rs 80 crore for a little over 14% stake in the company.
Tata Metaliks signed an agreement with Fomento Resources Group for sale of its three lakh tonne pig iron making facility at Redi for Rs 180 crore. Lack of reliable raw material supplies has forced the company to divest the Redi facilities.
Aban Offshore is aiming to bring down its debt by 50% in the next five years. The company has decided to repay Rs 1,200-1,300 crore of debt every year.
The BP-RIL partnership could work both ways. According to reports, BP will discuss divesting some of its assets in Europe and North America to Reliance Industries. With Reliance Industries actively looking for upstream assets, BP could provide the company with some choice.
Oberoi Realty is reportedly in talks to buy ICICI Venture’s stake in an upmarket residential project in South Mumbai. According to reports the company might pay as much as Rs 300 crore.
Expect negative momentum to continue in Sesa Goa stock. The environment ministry has cancelled the green clearance given to Pirna Mines as the firm allegedly concealed data.
Finally, Amazon ignited a tablet war by launching Kindle Fire tablet computer for less than half the price of iPad. The Kindle Fire will have a 7-inch display and is priced at $199, compared to $499 for Apple’s cheapest iPad.