Mumbai: India is “committed to reforms” says Prime Minister Manmohan Singh. He wants to revive the proposal for FDI in retail but only after the state elections next year.
Meanwhile, stock markets in the US fell as growing funding stress in Europe made investors nervous. The S&P 500 at 1,211 lost 1.13% on selling in oil and metal stocks.
Asian markets also opened on a weak note. The Nikkei lost as much as 1.15% to 8,420 after a survey showed sentiment among Japan’s largest manufacturers deteriorated.
Back home, to meet its ambitious asset sale target, the government is looking to divest its stake in unlisted public sector enterprises through private placements. To fast-track the process, it is seeking to make necessary changes to the existing laws.
The steep fall in the rupee can have adverse implications for Indian companies. According to a report in the Business Standard, the rupee’s depreciation is expected to increase corporate India’s mark-to-market losses on foreign currency loans by Rs 15,000 crore in the December quarter.
The retail pharmaceutical market in India is growing at an impressive rate. Growth in the organized pharmaceutical retail market jumped to 21.5% in November, reports The Times of India. According to the report, companies such as Cipla, Ranbaxy Laboratories and GSK Pharmaceuticals grew by over 20% last month.
Stocks of oil marketing companies could witness some action. While there is talk of a petrol price hike, overnight, Brent crude in the international markets fell sharply after OPEC raised its output ceiling. At $105.02 a barrel, Brent rates are down 4.09%.
The sale of VSNL’s (now Tata Communications) surplus land is gathering momentum. The department of telecommunications has moved a note on the auction of the surplus land and is expected to send it for cabinet approval once it receives the responses.
Keep an eye on the GVK Power and Infrastructure stock. The Mumbai airport modernisation is likely to be delayed by more than a year to the end of 2014. The company, which leads the consortium that runs the Mumbai airport, is also expecting passenger traffic at the facility to reach saturation point in the following year.
DLF is close to signing the Pune SEZ sale deal with Blackstone, reports the Business Standard. According to the report, the deal size is pegged at around Rs 900 crore.
Firstsource Solutions stock might continue to drift lower. To comply with new RBI norms, ICICI Bank may have to reduce its holding in the company to 10%, reports The Economic Times. ICICI Bank currently holds 18.1% stake.
Reliance Infrastructure is looking to raise money by selling its stake in the power transmission company, reports The Economic Times. According to the report, the company has given the mandate to UBS to look for bidders.
Suzuki Motor Corp. plans to set up a second diesel engine plant in India if the government decides against imposing a punitive tax on diesel-run cars.
Finally, to save on energy and fight global warming, Chile’s government is asking men to take off their ties. While many men welcomed the idea of a tie-less summer, some people are put-off. Read the Reuters report.