Mumbai: The soap opera in Europe continues. In the latest developments, Euro zone officials failed to sanction specific measures to create an Euro 1 trillion bailout fund, despite warnings that it is not fully equipped to tackle the debt crisis. Read more...
After the Greek prime minister agreed to step down on Sunday, Italy looked like it might follow suit with a confidence vote in the coming days that could topple prime minister Silvio Berlusconi’s government, as it faces international pressure to take steps to prop up its flagging economy. However, Berlusconi announced later yesterday that he did not plan to leave any time soon. Yield on Italy’s 10-year bonds touched the highest level since 1997at 7%.
Surprisingly, US markets shrugged off concerns in Europe overnight and tilted higher on thinner volumes. The Dow Jones Industrial Average closed up 0.7%, at 12,068. The S&P 500 Index gained 0.6%, at 1,261.
In Asia, markets were trading on a mixed note in opening trades as investors remained jittery over Europe. Japan’s Nikkei Stock Average shed 0.4% led by losses in automakers and tech shares, South Korea’s Kospi fell 0.2% and China’s Shanghai Composite was trading flat. Hong Kong’s Hang Seng bucked the trend and was up 0.8%.
Back in India, markets may play catch up after the Eid holiday yesterday and edge higher on opening. The Nifty future on the Singapore Exchange was up 52 points, at 5,327.
Kingfisher Airlines will be in focus today on reports that it plans to cancel 31 domestic flights daily for the next two week leaving passengers stranded during the peak travel season and raising possibility of a rise in air fares. The carrier has suffered a loss Rs 1,027 crore in the second quarter and has defaulted on payment to oil companies and airports.
Among other airline companies, the board of SpiceJet will meet this week to decide on the option to go ahead with the $450 million aircraft order for expanding domestic operations.
SKS Microfinance reported a net loss of Rs 385 crore in the July – September quarter due to shrinking income, surge in expenses and higher provisions. The stock may react negatively to latest results.
GMR Infrastructure may be on the buzzer in opening trades as it is close to bagging a Rs 1,500 crore order for 145-km highway in Andhra Pradesh.
Reliance Power, which has been facing fuel shortages for its gas and coal-based projects, is expanding its renewable energy resources to mitigate risks. The company has tied-up with various banks for loans worth Rs 525 crore to finance its 40 MW photovoltaic cells. Read more...
Lastly, Rs 50,000 could have bought you a premium seat to watch the F1 race last weekend, or even a laptop or designer clothes. But will you spend that much on a haircut? Ferretti, the hairstylist for celebrities such as Lady Gaga and Salma Hayek, is opening a second Salon at the Oberoi in Gurgaon after the ostensible success of the first one at Four Seasons, Mumbai. Read more...