Mumbai: The sage of Omaha continues his tour of India on Thursday. Apart from coaxing Indian millionaires to give some to charity, Warren Buffett has also given a thumbs up to local companies. While that may make you feel good, here’s a list of things to watch out for before trading starts.
The world over, markets are steadily moving away from the Japanese crisis. Overnight, rising metal prices lifted commodity stocks in the US markets. The S&P 500 rose 0.3%. This helped Japanese stocks gain on Thursday morning. Nikkei rose as much as 0.5% to 9,500 in the morning deals.
Cooling crude oil prices are also helping sentiment. Oil prices in New York fell from a 30-month high as inventories in the US rose faster than analyst expectations. US crude for May delivery declined to $105.32 a barrel. Brent crude, on the other hand slipped 15 cents to end at $115.55 a barrel.
In India, the Tata Communications scrip might see some activity. The surplus land it possesses is estimated to be worth Rs 14,300 crore. Once the pending issue of land sale happens, Tata Communications will not only get its due share, but will also get free hand in raising fresh equity. Read more...
A day after Parliament passed the SBI amendment bill that allows it to raise its capital base, the bank is planning to raise $5billion to meet loan demand.
On to the coal chronicles, NMDC is set to appoint a financial adviser for buying some mines from Russia’s Kolmar Coal Co. The company which produced 23.8 million tonnes of iron ore in 2009-10 is building steel plants.
Thanks to upcoming elections in Tamil Nadu and Kerala, spot electricity prices in Southern India have surged to over Rs 12 per unit, four times the price quoted for the rest of the country. The rush to contain power disruptions in poll-bound states has led to a rise in spot prices. Magnifying the problem is a lack of adequate grid connectivity between the southern region and the rest of the country.
Wockhardt has received a reprieve from the Bombay High court. The court allowed an interim stay against an earlier order to admit a winding-up petition against the company.
It is only getting worse for the micro lenders in Andhra Pradesh. Asian Development Bank has decided not to guarantee loans routed to that state. Read more...
The Maharashtra government’s move to increase duty on equity transactions to 0.005% is expected to hit day traders.
A rule in the Insurance Act can delay the Reliance Life-Nippon deal. Under the Insurance Act, a company has to be in operation for 10 years before divesting a stake. Reliance Life is expected to complete 10 years only in January next year.
Forget about reconstruction demand for some time, thermal coal producers in Asia are expected feel the financial impact of the Japanese earth quake in the short term. Rating agency Standard & Poor’s is saying that thermal coal producers might find it difficult to deliver contracted coal to Japan as many end user plants are crippled by earthquake. This is likely to drive prices lower in the short-term. Read more...
And finally, pay more for KitKat and Maggi noodles. Nestle has abandoned its ‘low price point’ theory and is increasing prices.