Mumbai: The much awaited rupee revival policy action turned out to be a non-event. While the measures might lend some support to the Indian currency, they are not enough to solve the problems, which are deeper in nature. Read the Mint report.
Meanwhile, stock markets across world slumped on scepticism that the European Summit, to be held later this week, will fail to come up with measures to solve the debt crisis in the region.
Overnight, markets in the US tanked on concerns that the European debt crisis will hit the earnings of the American companies. S&P 500 fell 1.6% to 1,313. Japan’s Nikkei at 8,675 is down 0.68%.
Fuelling concerns is the latest round of ratings downgrades by the Moody’s Investor Service. Citing rising losses on real estate loans the ratings agency downgraded 28 Spanish banks. Read the Bloomberg report.
Back home, in a setback to gold loan firms, the Reserve Bank of India has declined to raise a cap of 60% of the value of ornaments that gold loan companies are allowed to lend to customers or bring the commercial banks under the ambit of the ceiling. In April, the Association of Gold Loan Companies had approached the central bank, seeking a level playing field with commercial banks. Read the Mint report.
Aditya Birla Group has emerged as the front-runner to acquire stake in the cement business of Jaiprakash Associates, reports Mint. According to the report, Jaiprakash Associates could get as much as $1 billion from the stake sale.
Bajaj Auto has warned that overseas sales could be under pressure this fiscal year. Because of the lagging economy and rising fuel costs, the company expects the year to be challenging for the domestic commercial vehicle industry as well. Read the Mint report.
Fortis Healthcare stock could witness some action. The company is looking at acquiring a stake in a renewable energy firm, reports the Business Standard. According to the report, this is the first time a hospital chain is looking to acquire stake in a power venture.
Also keep an eye on Kingfisher Airlines stock. LKP Finance has acquired convertible debentures of the airline from a Vijay Mallya owned investment firm, reports The Economic Times. Upon conversion, the debentures reportedly translate into an equity stake of up to 8% in Kingfisher Airlines.
GMR Infrastructure has appealed to the appellate tribunal to further increase the aeronautical charges at the Delhi international airport, reports the Business Standard. The company is asking for higher return on its equity.
The pressure on Essar Energy is building-up. The Gujarat high court has directed the state government to expedite the recovery of sales tax dues from the company. Read The Times of India report.
Shareholders of Sesa Goa and Sterlite Industries have agreed to a proposal to combine into a diversified mining company called Sesa Sterlite. At least one advisory service expressed concern over a large number of invalid votes cast in shareholder meetings held last week to consider the merger. Read more.
Finally, Pakistan’s Punjab province is cracking down on portly policemen. With only a quarter of the 19,000 policemen passing the fitness test, authorities have warned the policemen to trim their waistlines to 38 inches. Read the Reuters report.