The Reserve Bank of India (RBI) will release its mid-quarter monetary policy review on Tuesday. While many analysts expect the central bank to reduce the cash reserve ratio by 25 basis points, market participants will keenly read RBI’s analysis of the domestic economy. Any indication that inflationary pressures are subsiding will come as a relief to investors.
Asian markets, meanwhile, are trading higher. Japan’s Nikkei gained 0.53% to 9,881 after reports emerged that the US President Barack Obama is considering budget concessions to avoid fiscal cliff. Obama made a budget offer that would raise taxes and cut federal spending. Read the Bloomberg report.
Overnight, US markets closed higher. The S&P 500 rallied 1.19% to 1,430 on hopes that a budget deal will be reached in Washington. Read more.
Back home, RBI has allowed real estate developers and housing finance companies to raise upto $1 billion through external commercial borrowings. The funds can be used for developing low cost housing projects or for providing housing loans of upto Rs.25 lakh. Read more.
Keep an eye on the Oil and Natural Gas Corp. Ltd (ONGC) stock. US-based ConocoPhillips is in talks with the company to buy stake in more than one of its deep water blocks, reports Business Standard.
Sun Pharmaceutical Industries Ltd’s US subsidiary is buying the generic business of URL Pharma Inc. for an undisclosed amount. URL Pharma’s leading product—Colcrys—had net sales of more than $430 million in 2011. Read the Mint report.
In the absence of any substantial progress, phase-II of the Mumbai Metro project, being developed by Reliance Infrastructure Ltd, is facing the risk of termination, reports Business Standard. According to the report, the nodal agency for the project has written to the state government to terminate the concession agreement.
Axis Bank Ltd is looking to sell new shares to boost its capital, reports The Economic Times. According to the report, the share sale may fetch the bank Rs.6,000 crore.
Kingfisher Airlines Ltd is planning to restart with a few planes and an investment of Rs.425 crore as a short-term measure, reports Mint. A limited restart would involve flying a few planes on some key routes. According to the report, the airline may also seek another long-term recast of loans.
Mahindra and Mahindra Ltd is in talks to buy out its American partner’s stake in the commercial vehicle joint venture Mahindra Navistar Automotives Ltd, reports The Times of India. The joint venture was formed to manufacture light, medium and heavy commercial vehicles.
Three Reliance Power Ltd promoter entities are planning to sell 5.42% stake in the company through an auction route, reports The Economic Times. The stake sale is aimed at reducing the promoter holding to comply with regulatory requirements.
Biocon Ltd has given CCM Pharmaceuticals distribution rights for its insulin products in Malaysia and Brunei. The companies are targeting an insulin market of close to Rs.160 crore. Read more.
Troubles at Deccan Chronicle Holdings Ltd are far from over. Even though the company appointed new independent directors to replace the four who had resigned, it is facing multiple winding-up petitions from creditors seeking to recover their dues. Read more.