Mumbai: Just like a dying person clutches at straws, the markets are reacting to every sliver of positive economic news.
Latest data shows that fewer Americans are applying for jobless claims. According to the Labour Department, the number of Americans claiming new jobless benefits fell to a four-month low last week. Initial claims for state unemployment benefits fell 7,000 to 395,000, the fewest since April.
The positive data and better than expected corporate earnings soothed investor concerns and sparked a rally in the US stocks. The S&P 500 surged 4.63% to 1,173 on buying in financial services and energy stocks.
The overnight rally helped Asian markets open on a positive note as well.
Back home, the Reserve Bank of India has told top bankers that it will continue raising policy rates till inflation comes down to 7% levels. With food inflation accelerating to a three-month high, industry watchers are worried that the central bank might persist with tight monetary policy.
An empowered group of ministers led by Pranab Mukherjee will be meeting today to discuss the possibility of allowing more sugar exports. The government has already allowed one million tonnes of sugar exports this year. But to clear pending stocks, millers are asking permission to export more.
GMR Energy has entered into an agreement to buy a 30% stake in Indonesian company T Golden Energy Mines. The deal is reportedly valued at $450-550 million. The stake buy is expected to help GMR Infrastructure secure coal supplies.
Adani Enterprise’s arm Adani Gas has signed an agreement to buy 20%equity in Green Gas Limited. Green Gas is a joint venture between Gail and Indian Oil Corporation. Green Gas supplies city gas and compressed natural gas in Agra and Lucknow in Uttar Pradesh.
Tata Motors posted flat profit growth in the June quarter as raw material costs and adverse currency movements crimped earnings at Jaguar Land Rover Plc. JLR, which accounts for 60% of Tata Motors’ revenue, saw net profit drop by 3% to £219 million.
Piramal Healthcare might earn a return of more than 20% from its investment in Vodafone’s Indian unit. Analysts have estimated Vodafone’s valuation at $14-16 billion. Piramal Healthcare acquired 5.5% stake for $640 million valuing Vodafone’s local arm at $11.6 billion.
Finally, Parliament passed the Coinage Bill that paves the way for minting coins up to Rs 1,000 denomination. While it is not clear when the Rs 1,000 coin would be introduced, payments by way of coins were limited to Rs 1,000 by an individual. Read more...