Opening Bell 3 Dec 2012 | Fiscal cliff threat looms

Strong manufacturing data from China lifts Asian markets
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First Published: Mon, Dec 03 2012. 07 54 AM IST
A file photo of the BSE building in Mumbai. Photo: Abhijit Bhatlekar/Mint
A file photo of the BSE building in Mumbai. Photo: Abhijit Bhatlekar/Mint
Updated: Mon, Dec 03 2012. 07 58 AM IST
Asian markets posted marginal gains on Monday morning after data showed that China’s manufacturing sector expanded in November, reports MarketWatch. The government version of the manufacturing Purchasing Managers’ Index rose to 50.6 in November, up 0.4 point over October’s numbers. Hong Kong’s Hang Seng edged up 0.6%, while China’s Shanghai Composite gained 0.5% and Japan’s Nikkei Stock Average was also up 0.5%.
US markets ended on a flat note on Friday over concerns of a looming fiscal cliff—automatic tax hike and spending cuts. Weak consumer spending data for October also weighed on the markets. US President Barack Obama on Friday warned that “prolonged negotiations” were likely ahead, and reiterated his call for lawmakers to extend Bush-era tax cuts for middle-income American.
Auto stocks will be in focus as the festive season has been a mixed bag. Maruti Suzuki sales were up 10% while Mahindra and Mahindra’s passenger vehicles posted an increase of 38% in November. Tata Motors saw its domestic passenger sales decline by 34%. In the two-wheeler segment, Hero MotoCorp sales declined 6.4% while TVS Motor sales were down 2.1% in November.
Jet Airways India Ltd may see some action following a Mint report that it will approach the Foreign Investment Promotion Board for permission to tweak its ownership pattern to allow Etihad Airways to pick up stake. Naresh Goyal’s Tail Winds Ltd, which is registered in tax haven—Isle of Man—owns 80% stake in Jet and the balance is held by the public.
Reliance Industries Ltd will be on the radar since it is planning to launch ‘MiFi’ devices which will allow smartphone and tablet users to access high-speed internet from their devices once 4G kicks off in 2013, reports Economic Times. RIL has entered into contracts with various companies for building the network, providing security solutions and IT integration.
Kingfisher Airlines Ltd has run into trouble again. The Mumbai airport may ask the airline to vacate its terminal space because it has not paid dues worth Rs.22 crore, reports Economic Times.
Adani Enterprises Ltd will be in focus following reports that it is planning a $1.5 billion global bond issue to fund its Australian coal, rail and port project. Adani is developing Carmichael mine in Australia to produce 60 million tonnes a year of coal for export and is also building a 400 km railway line.
DB Realty Ltd is undergoing corporate restructuring which has halted work at two key projects of the Hyatt hotel group, in Mumbai and Pune, reports Business Standard. The projects were being built by DB Hospitality, a sister concern of DB Realty.
JSW Steel Ltd plans to raise $600 million through overseas borrowings by March next year to prepay part of its loan worth Rs.3,500 crore, reports Mint.
Lastly, hundreds of rats scuttle over the sacred shrine in the inner chamber of Karni Mata temple near the India-Pakistan border, but nobody seems to mind, reports Wall Street Journal – India Real Time. There are an estimated 25,000 rats living in the temple.
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First Published: Mon, Dec 03 2012. 07 54 AM IST
More Topics: Markets | Sensex | BSE | NSE | Fiscal cliff |