Mumbai: Happy Monday! European leaders have been busy over the weekend. The European Commission has unveiled a plan to shore up banks. The Commission called for a more stringent review of banks that will result in a broad recapitalisation program.
Meanwhile, top European officials also vowed to unveil a sweeping euro-zone rescue plan by 23 October. The deadline sets the stage for one of the most critical weeks of the bloc’s nearly two-year-old debt crisis.
The developments have revived hopes that European leaders will find a solution to the debt contagion in the region. Stocks markets in Asia rose after Group of 20 finance chiefs meeting in Paris endorsed parts of a plan to contain Europe’s debt crisis. The Nikkei at 8,884 is up 1.56%.
Optimism over corporate earnings and steps by European leaders helped US stocks close higher on Friday. The S&P 500 at 1,224 is up 1.74%.
Back home, expect some action in the Reliance Industries stock. The company told analysts that it will suspend drilling for oil and gas until a process of re-evaluation ends and a fresh plan is submitted to the government.
The company reported a benign 15.8% growth in net profit and 37% rise in top-line. Even though second quarter results are largely in-line with expectations, concerns about upstream business could weigh on the stock.
In another report, the company is reportedly planning to launch a high speed data services business early next year. According to reports, the company is looking to provide data connectivity at cheaper prices.
NIIT sold its US subsidiary, Element K Corporation, for $110 million. NIIT had acquired the Element K Corp. for $35 million in 2006.
Trouble is brewing at Moser Baer. A group of workers have commenced strike at the company’s Noida unit demanding a revision in wages and bonuses.
With coal supplies drying up, NTPC is looking to acquire mines abroad. The company has appointed a consultant to evaluate two medium-sized coal mine acquisitions in Mozambique and Indonesia.
State-run Power Grid Corp. of India is planning to enter the power generation business in overseas markets. The company is also looking to enter the domestic power transmission business in Bangladesh and Sri Lanka.
In addition to its plan to set up one hospital in Dar es Salaam, Apollo Hospitals Enterprise is planning to buy hospitals in Tanzania, Botswana and Nigeria. Currently, Apollo is setting up a 500-bed hospital in Tanzania. The hospital will have 300 beds in the first phase.
Expect the negative momentum to continue in Zenith Infotech stock. According to reports, investors claim that the IT provider’s default could now be in excess $85 million instead of the $33 million as it originally estimated. This is due to a cross default exchange clause, which is part of the bond agreement.
Power systems maker Electrotherm and Amsterdam-based AEG Power Solutions have decided to terminate their agreement to combine their solar businesses in India. The companies took the decision citing poor demand. Read more...
Finally, State Bank of India is going to get the much required capital. According to reports, the Finance Minister said that the government will infuse fresh capital into the bank ‘so that tier-1 capital becomes at least 8%.’