Mumbai: The industrial production data for April will be released today. Economists polled by Bloomberg peg industrial production growth at 1.7%. In March the factory output fell by 3.5%.
Meanwhile, stock markets in the US and Asia fell on doubts that the bailout of Spanish banks by the Euro zone will do little to contain the debt crisis in the region. Yields on 10 year bonds surged to more than 6.4% as investors feared more bad news from the country’s banking system. Read The Wall Street Journal report.
The focus now has shifted to Italy. According to the Bloomberg, Italy’s 10 year bond yields raised the most since December last year on concerns that it might be the next country to succumb to debt crisis.
The S&P 500 lost 1.26% to 1,308 on selling in stocks of banks and financial services firms. Read the Reuters report. Asian markets also opened on a weak note. Japan’s Topix Composite at 907 is trading lower by 15 points.
The OECD is seeing the current weakness spreading to Asian economies like India and China. According to the Paris based think-tank, the composite lead indicator for India dropped from 98.2 to 98.0, below the long term average of 100. Read the Mint report.
Back home, the threatened reduction in India’s sovereign debt rating would push up the borrowing costs of Indian companies and make it harder for the country to attract foreign investment flows. Standard and Poor’s has warned that India could be the first among the BRIC nations to have its investment-grade rating lowered to junk status.
Coal India is increasing the price of coal by 5-15% in selected blocks. The move is to negate the impact of a decline in the price of coal in the blocks after shifting to a new pricing regime. Read the Mint report.
In another report, higher rake availability helped Coal India report a 6.2% rise in coal off-take during the first two months of the current fiscal. Read the Business Standard report.
DLF sold its hotel subsidiary to a Kolkata based consortium for Rs 567 crore, reports The Economic Times. The subsidiary does not include Aman Resorts.
Mangalore Refinery and Petrochemicals or MRPL is looking to acquire Haldia Petrochemicals. Officials of the company have met met West Bengal’s commerce and industries minister to seek the government’s permission to conduct a due diligence exercise at Haldia Petrochemicals, reports Mint.
Stocks of Adani group companies could continue to witness heightened activity. According to Business Standard, Ravi Sharma, chief executive officer of Adani Power has resigned from the company.
Power Grid Corp. of India has put its plan to lease 200,000 of its transmission towers to the telecom sector on the back burner, reports Mint. The Supreme Court cancellation of 122 telecom licences allocated to nine companies has dampened the market for tower companies.
Keep an eye on Zydus Healthcare stock. A US company has sued the firm for infringement of patents, reports Business Standard.
Finally, Tokyo overtook the Angolan capital of Luanda to become the world’s most expensive city for expatriates. The analysis measures the comparative prices of more than 200 items in different cities. Read the Bloomberg report.