Mumbai: Fears that Greece might default on its sovereign debt are leading to selling in equity markets across the globe. For its part, Greece’s cabinet has vowed to avoid a default and approved new measures to help plug the budget gap. Read more...
Still, markets are unenthused. With resistance to extending more aid building up, analysts fear that Germany may give up on Greece (letting the country default on debt).
While the default worries are keeping the Euro zone on the tenterhooks, investors fear that Moody’s Investors Service may cut the credit rating of France’s largest banks by market value BNP Paribas SA, Societe Generale SA and Credit Agricole SA due to their Greek holdings.
Concerns about Greece’s finances led to sharp correction in US stocks on Friday. The S&P 500 fell 2.67% to 1,154 on selling in shares of financial services companies.
Asian markets also opened lower. The Nikkei at 8,545 is down 2.20%.
Back home, expect the positive momentum to continue in telecom stocks. According to reports, the Department of Telecom is likely to release the draft National Telecom Policy in the next 2-3 weeks. The policy is expected to encourage consolidation in the telecom industry.
Tata Motors stock might see some selling pressure. In a surprise move, the company announced the resignation of its CEO and managing director Carl-Peter Forster. Forster was at the helm of the company for less than two years. The news sent the company’s American depository receipts lower by 9.2%. Read to find out how Forster’s surprise resignation could hurt the company.
Expect positive momentum to continue in GTL Infrastructure stock. Lenders to the company have agreed to clear the debt restructuring programme. The development will pave way for lower interest rates and change in tenure of the loans.
Oil India is planning to complete the Gabon deal by the end of the current financial year. The company is in talks with French oil explorer Maurel and Prom SA to acquire a stake in the Gabon blocks. The deal is valued at around $2 billion.
Fresh and Healthy Enterprises Ltd, a subsidiary of Container Corporation of India (Concor), is planning to invest Rs 1,500 crore in cold storage units.
The oil ministry is likely to approve Cairn India’s proposal to start pumping crude oil from the Bhagyam field. The production from Bhagyam field, when it commences, will increase the block’s output by a third to 165,000 barrel per day. The approval was delayed due to the company’s dispute with ONGC over royalty.
Reliance Power wants to scrap the proposed 4,000 megawatts power plant in Maharashtra’s Raigad district. Citing land acquisition problems, the company expressed its inability to pursue the project.
Finally, Twitter has become the latest tool for fund managers. They are launching new funds whose investment decisions are determined by evaluating popular mood on the internet. Read how fund managers are predicting share price patterns using millions of tweets posted on Twitter.