Mumbai: The incoming economic data is pointing to steady recovery in some of the world’s leading economies. Production at the mines, factories and utilities in the US rose 1.1% in April, according to Reuters which is the largest gain since December 2010.
Another report said that housing construction in the US went up 2.6% to a seasonally adjusted annual rate of 717,000 units in April.
Economic growth in another major economy, Japan, has rebounded in January-March this year. Boosted by reconstruction spending, gross domestic product rose at an annualized 4.1% in the first quarter. Economists were expecting the economy to grow by 3.5%.
The strong economic data and expectations that the Federal Reserve will do more to stimulate the US economy are providing some support to the Asian equity markets. Japan’s Nikkei at 8,813 is up 0.14%.
US markets, though, closed on a weak note. S&P 500 lost 0.44% to 1,324 on selling in stocks of financial services companies. Concern about Greece’s debt crisis has offset better than estimated reports on industrial production and housing starts.
The European Central Bank has stopped providing liquidity to some Greek banks. The news sparked concerns that the Greece may have to leave the Euro zone. Read the Reuters report.
Back home, Reliance Industries’ gas output from the KG-D6 block has dropped to 32.66 million standard cubic meters per day (mscmd) from 33.89 mscmd in April. The block had produced 34.62 mmscmd at the beginning of March. Read The Hindu Business Line report.
Keep an eye on Coal India stock. According to The Economic Times, the company has added 3.2 billion tonne in mineable reserves to its proven category in 2011-12. According to the report, the company, on an average, is adding 2.5 billion tonnes of mineable reserves every year.
Maruti Suzuki is stepping up the localisation efforts to reduce buying costs. The company is planning to reward its vendors better by paying them a bigger share of the savings accruing from locally made parts that go into automobiles. The step is part of a larger strategy to reduce buying costs by 3-3.5% by cutting down imports. Read the Mint report.
Piramal Healthcare is finally putting its cash pile to good use. The company is buying a US based healthcare data provider, Decision Resources Group, for around Rs 3,400 crore or $635 million. Decision Resources Group is projected to have revenues worth $ 160 million for 2012.
HDIL is looking to reduce its debt by 25-30% in current fiscal. According to The Economic Times, the company is hoping to cut debt by high floor space index sales and new project launches.
CESC is taking over two hydroelectric power projects of the Indiabulls Group in Arunachal Pradesh. The plants are estimated to have an aggregate capacity of 146 megawatts.
Cox & Kings is roping in an investor to raise Rs 750 crore for its UK business, reports Business Standard. The move is expected to help the company improve its debt-equity equation.
With the number of players increasing, denim makers-Arvind, Aarvee Denims & Exports and KG Denim, fear that profit margins would come down. According to a Business Standard report, high capacity expansion by existing players is also expected to weigh on the operating margins.
On the results front, Asahi India, Bajaj Auto, Bajaj Holdings & Investments, Jaypee Infratech, Jaiprakash Power Ventures, Mahindra Satyam and United Breweries will release their March quarter earnings today.
Finally, coffee may help its drinkers live longer. According to a new research, men who drank 2-3 cups a day had a 10% chance of outliving those who drank no coffee. Women had a 13% advantage. Read the Bloomberg report.