Mumbai: Fears of a Greek default are looming large. Eurozone finance ministers have refused to immediately bailout for Greece. They have put off the decision to approve a further 8 billion euros package for Greece until mid-November.
While the move will increase pressure on Greece, the euro zone finance ministers are reassessing the extent of the private sector’s role in the planned second package for Greece. With circumstances deteriorating in last two months, private creditors could be asked to take a further haircut. Read more...
These developments have sent the stock markets lower. Overnight, stock markets in the US plunged on speculation that a large European lender will fail. The S&P 500 at 1,099 is down 2.85%.
Asian markets also opened on a weak note. Concerns about a European debt contagion are making investors wary of equities. The Nikkei at 8,374 is down 2.01%.
Back home, Fitch Ratings has cut its GDP growth forecast for India. The ratings agency has reduced its GDP growth estimate from 7.7% to 7.5% for the current fiscal. For next year, the growth forecast has been cut from 8.2% to 8%.
Reliance Power said it will earn Rs 2,000 crore by trading carbon credits from its ultra mega power plant in Tilaiya, Jharkhand. The company got the approval for carbon credits from the United Nations Framework Convention on Climate Change.
Bombay Dyeing is increasing its focus on the real estate business. According to reports, over the next five years, the company will generate three-fourths of its revenues from the real estate business.
GVK Power and Infrastructure’s management is lining up mega plans for the company. With Hancock securing 20 million tonne of coal supplies a year, the company is aiming to expand its coal-fired power generation capacity to over 7,500 megawatts in five years.
In another report, the company’s subsidiary has won a NHAI road project in Madhya Pradesh. The project entails widening of the two-lane to a four lane highway. It has a concession period of 30 years.
GAIL is hungry for more acquisitions. The gas utility is looking to acquire Asian Development Bank’s 5.2% stake in Petronet LNG. The stake is valued at Rs 614 crore at Monday’s trading price of Rs 157.85 per share.
Maruti Suzuki’s market share in the passenger vehicle market has fallen to the lowest level in a decade. The company’s market share fell to 40% due to increasing competition and the recently ended labour unrest.
The board of Pantaloons Retail India has approved a plan to raise up to Rs 1,500 crore by diluting up to 15% equity. The approval carries a caveat that the company’s debt-equity ratio should not exceed 1.33.
To connect more towns and cities, SpiceJet is planning to set up five more regional hubs. The low cost airline plans to create hubs in Chennai, Ahmedabad, Bangalore, Kolkata and Delhi.
Keep an eye on the Radico Khaitan stock. Diageo is looking to acquire half the stake of Radico Khaitan in Diageo Radico Distilleries joint venture. The joint venture distributes and markets the whisky brand Masterstroke.
Finally a Warren Buffett company is reportedly in talks with Reliance Retail to set up a joint venture in India. The company, Dairy Queen, owned by Berkshire Hathaway, is a softserve ice cream and frozen food retailer. Read more...