New Delhi: The much awaite US jobs data have proved to be a big dampener. For the first time in almost one year, the US economy did not create new jobs. Data released by the Labor Department showed that payrolls were unchanged in August, leaving the jobless rate at 9.1%.
The fresh set of numbers has reinforced recession fears in the US. The worsening debt crisis in Europe and a lack of coherence amongst the policy makers adds oil to these troubled waters . The S&P 500 tumbled 2.53% to 1,173 on selling in financial services stocks.
The weak cues from the US economy have sent Asian markets lower. Stock markets in Japan and South Korea fell by more than 1.4% each in opening deals. The Nikkei at 8,806 is down 1.59%.
Brent crude fell below $112 to $111.50 a barrel on speculation that fuel demand might fall on slowing US and Chinese economies.
Back home, the uncertain global economy and high interest rates are taking a toll on business confidence. According to CII, the Business Confidence Index for July-September quarter has declined by 8.9 points compared to a 4.2-points fall in the preceding quarter. Most of the firms surveyed by the industry body are not looking to increase their investments.
The government is fast-tracking the share sale processes. While ONGC is expected file papers for a follow-on public offer anytime soon, the government has decided to sell 10% stake in steelmaker Rashtriya Ispat Nigam Ltd. The weak sentiment in equity markets might be a dampener.
The Gujarat government has refused to consider any move to allow higher tariffs at Tata Power’s 4,000 megawatt Mundra power project. Two units of Mundra power project are expected to be commissioned by March next year. The refusal to raise tariff might affect financial viability of the project. Read more...
Mahindra & Mahindra is riding high on utility vehicles. The company which registered a 30% rise in August sales is planning to launch a new SUV by the end of this year. The company will initially sell the vehicle in India and South Africa before taking it to other markets.
Firstsource is reportedly planning to sell its US-based healthcare business MedAssist. The company which paid $330 million in 2007 for the acquisition is looking to sell the unit as wants to raise cash.
Expect action to continue in Everonn Education stock. After its managing director was arrested on charges of bribery and tax evasion, the company’s chairman JJ Irani stepped down last week. Rattled investors have already shaved-off more than 20% from the stock.
SAIL is aiming to start production at the Chiria mines from 2014 onwards. According to reports, the company is set to finalise an investment roadmap for the project, which has proven reserves of over 1.8 billion tonnes. The mines are expected to help the company increase its production capacity to 60 million tonne.
Poor market conditions have forced Educomp Solutions to differ the proposal to raise up to $250 million through a share sale. The company, in May, had announced plans for a share sale.
Laminated tubes maker, Essel Propack, is restructuring its business model. The company is aiming to reduce debt and boost revenue by focusing on premium products such as hair care and pharmaceutical packaging.
Ageing oil fields are expected to reduce crude oil production at ONGC. According to reports, the company’s oil production is expected to decline as much as 3% in the current financial year.Read more...
Finally, video games might not be all that bad. Researchers have found that playing video games could help improve the vision of adults with ‘lazy eye’. According to researchers, people suffering with ‘lazy eye’ problem experienced marked improvement in vision after spending enough time playing video games. Read more...