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Opening bell 22 March

Opening bell 22 March
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First Published: Tue, Mar 22 2011. 08 39 AM IST
Updated: Tue, Mar 22 2011. 08 39 AM IST
Mumbai: Which weighs more – receding concerns of a nuclear crisis in Japan or the Middle East meltdown? Investors are confused and are buying stocks, gold and crude oil, all at the same time. Here’s a list of things to watch out for before trading starts.
Overnight, US stocks rallied as concerns about nuclear meltdown in Japan eased. The S&P 500 rose 1.5%. Bloomberg has unearthed the statistic that it has rallied 3.3% in three days, the longest winning streak in about a month.
Japanese stocks too opened positively on Tuesday after the prime minister said that he can see light at the end of the tunnel re: the nuclear crisis.
This rebound happens even as the allied forces destroyed Gaddafi’s air defenses and crude climbed to a one-week high. Brent Crude oil for May settlement rose 0.9% to $114.96 a barrel. At the same time investors also bought safe-haven Gold as fighting continued in Libya.
This also prompted a flight towards gold, which climbed for a fourth straight day. Gold futures for April delivery rose 0.7% to $1,426 an ounce.
In local news, Henkel India has found a new suitor. Kolkata-based Emami has joined Jyothy Laboratories in the race to buy the German company’s Indian unit. Remember, the latter has already bought a 14.9% stake in Henkel India. Staking its claim to Henkel, Jyothy is promising to turn Henkel India profitable in a year or two after its acquisition. In an analyst call, Jyothy Laboratories’ vice-chairman, however, admitted that the company has to invest substantially in the first year to revive Henkel India. Read more...
Here’s a challenger to the Tata Nano. Rajiv Bajaj, MD of Bajaj Auto has made it clear that the company is ‘dead serious’ about the small car and is planning to show the prototypes to its partner, Renault. Now, which retail chain will he participate with to vend this vehicle?
Rollback Pranab? The finance minister is likely to announce some relief measures for sectors such as healthcare, ready-made garments and silk weaving, diagnostic services, centrally air-conditioned services and corrugated cardboard boxes (oops, strike the last one out). In his reply to the discussion on the finance bill, Mukherjee is expected to withdraw some of the announced tax proposals.
In other news, GAIL India and other gas transporters such as Reliance Gas Transportation and Gujarat State Petronet are at loggerheads on whether the regulator should allow them to charge lower fees than the approved rates. While GAIL India has endorsed the plan, other two are opposing the regulator’s proposal. Read more...
Viceroy Hotels is planning to hive-off its Chennai project into a separate company. The purported move is expected to lower debt on its balance-sheet.
Troubles for Ranbaxy don’t seem to end. As the company prepares to launch a generic version of Pfizer’s cholesterol drug Lipitor, Mylan has sued for injunction. According to Mint, Pfizer’s cholesterol drug earned about Rs 22,550 crore in the US market. Also read Ravi Ananthanarayanan’s analysis here...
Honda Motorcycles is planning to launch motorcycles in the popular 100 cc segment and is considering building a new factory too. Read more...
Every transaction in the telecom sector is looked at with suspicion these days. Now, the DoT is setting up a committee to investigate the divestment procedures of VSNL, now Tata Communications. Tata Sons bought the VSNL from the government in 2002.
Meanwhile the Tatas have responded saying that Tata Communications does not have the intention of holding on to the surplus land that came into its fold as part of the privatisation process. Read more...
And finally, the Japanese earthquake is creating strange problems for China. The Chinese government is struggling to stop the panic-driven public from hoarding salt. Chinese people are buying salt on expectations that iodine can stop radiation sickness. People are worried that radiation from nuclear Japanese nuclear plants will hit them.
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First Published: Tue, Mar 22 2011. 08 39 AM IST
More Topics: Markets update | Japan | China | Opec | Oil |