Mumbai: Dream run of emerging markets such as India is coming to an end according to the International Monetary Fund. IMF scaled down its estimate of global growth in 2012 by 0.1 percentage point to 3.5% and revised the projection for India’s growth in calendar year 2012 to 6.1% from 6.8%. IMF warned that policymakers should be ready to cope with trade declines and high volatility of capital flows in emerging markets.
US markets ended in the red on Monday following a gloomy global economic forecast by IMF. In Europe, Moody’s downgraded 10 Italian banks and three financial institutions by one to two notches. Investors are preparing for Tuesday’s testimony by the Federal Reserve chairman Beb Bernanke. Dow Jones Industrial Average dropped 0.4%, S&P 500 index declined 0.2% and Nasdaq Composite fell 0.4%, reports MarketWatch.
Asian markets were trading on a mixed note ahead of the Federal Reserve testimony. Investors are looking out for hints on quantitative easing by the Fed. Japanese stocks were flat after investors returned from a three-day weekend. Hong Kong’s Hang Seng was up 1.7% and China’s Shanghai Composite was trading marginally lower, reports MarketWatch.
In India, the Adani group will be in focus as the company is eying coal assets in Mozambique for $400 million. Adani Enterprises is in discussions with NCondezi Coal to acquire a stake in a mine block, reports Business Standard. The acquisition is for its subsidiary Adani Power which has targeted a 20,000 MW expansion plan by 2020.
Indraprastha Gas will be on the radar as the company is looking at a majority stake in Central UP Gas Ltd to expand beyond Delhi, reports Business Standard. Central UP Gas operates in Bareilly and Kanpur and supplies piped natural gas to 600 households, 10 commercial establishments and 12 industries.
State Bank of India has increased its interest rate on fixed deposits for Non-resident Indians by 0.25%, reports Economic Times. Term deposits between three and five years in rupee term would attract 9% against the existing 8.75%, effective Tuesday.
In one of the biggest buybacks so far, Reliance Industries has bought back 35.1 million shares for Rs 2,512 crore from its shareholders, reports Business Standard. This is the second largest buy back after Piramal Healthcare which had repurchased 41.8 million shares in March 2011.
Jindal Steel & Power has given the Bolivian government more time to resolve issues holding back the company’s iron-ore mining and steelmaking project, after its earlier deadline to pull out of the country expired on Sunday, reports Wall Street Journal India. Jindal Steel also wants to scale down its investment to $1.0 billion from its earlier commitment of $2.1 billion in Bolivia.
Will anyone start an airline in India given the mounting losses of the carriers? Religare Group’s scheduled regional airline Air Mantra said that it will start passenger services from July 23, beginning with daily flights between Amritsar and Chandigarh in the northern sector, reports Mint.