Mumbai: The US headed for another showdown over the fiscal cliff as Republicans in the House of Representatives mounted a last-ditch effort to reshape the tax deal. The US Congress has until Thursday to pass a deal in both houses as the legislation codifying any budget agreement will lapse with the swearing-in of the new Congress, reports Financial Times. Markets in US were shut on account of New Year holiday.
In Asia Hong Kong’s Hang Seng gained over 1% following buying across sectors as the US House of Representatives was set to vote on the Senate’s approval for a bill to end the fiscal cliff, reports MarketWatch. Markets in China and Japan remained closed.
In India, a new government survey confirms a contraction in investments, painting a grim outlook for the manufacturing sector, reports Mint. The Annual Survey of Industries reveals that net fixed-capital formation contracted marginally by 0.06% in 2010-11 compared with growth of 14.63% a year ago as cost of doing business is rising.
Auto shares may be under pressure after year-end discounts and freebies failed to prop up December sales. Weak economic growth, high interest rates and fuel prices continued to weigh on car-makers. Tata Motors’ passenger vehicle sales fell by half to 14,185 units.
Parsvnath Developers will be in focus as it plans to raise up to Rs 360 crore through a non-convertible debenture to pay for land it bought in 2010, reports Mint. The realty firm had paid Rs1,651 crore for land near Delhi’s Connaught place.
Cash rich PSUs such as Coal India and NTPC are scrambling to grab a part of the 8.5 billion tonnes of coal reserves which are being put up for auction in West Bengal, reports Business Standard. The Deocha Pachami block in Bengal is the country’s largest thermal coal block with over 2 bt reserves.
Coal India, Rashtriya Chemicals, Sail, Engineers India and National Fertilisers plan to pay up Rs300 crore of debt of Fertiliser Corporation of India to help improve its net worth and allow the sale of various units, reports Economic Times.
The NALCO and Nuclear Power Corporation of India joint venture will raise upto to Rs 1,500 crore over the next three months to fund the construction of power generation capacities, reports Business Standard. The JV is setting up capacity of 1,400 MW by March 2016.
Lastly, stargazers will get a celestial treat in the New Year with the sun coming nearest, at 147 million km from the earth on Wednesday, according to Planetary Society of India general secretary.