Mumbai: It’s Friday and optimism is in the air. Markets across the globe are rallying on positive economic data from the US. Here’s a list of things to watch out for before trading starts.
The US trade deficit unexpectedly narrowed in April. According to the US commerce department, the gap shrank 6.7% to $43.7 billion, the lowest since December.
While exports rose 1.3%, a separate report showed that consumer confidence rose for the third consecutive time last week. The positive economic data raised hopes that US economy is recovering. This helped revive investor sentiment. The S&P 500 at 1,289, snapped a six-day losing streak and closed with gains of 0.74%.
The optimistic data also helped Asian markets open with gains. Improving consumer confidence helped ease concerns about the US economy. The Nikkei at 9,584 is up 1.24%.
While a recovering US economy bodes well for India, the concurrent rise in crude prices will spell trouble for India’s public finances and PSU oil companies. Overnight, Brent crude spiked to $120 a barrel on expectations that a recovering US economy will increase demand for oil products.
Back home, IIP data for April will be released today. Going by the last two data releases, markets are not reacting much to cooling IIP numbers. With policy makers trying to slow down the economy, a single digit IIP number will not evoke much response.
The group of ministers on coal decided to speed up clearances for eight critical infrastructure projects on a priority basis. The eight projects that will get priority treatment for clearance of coal blocks belong to top corporate houses including Adani, Reliance, Aditya Birla Group and Essar. Read more...
Sebi barred brokerage Reliance Securities, a unit of Reliance Capital, from accepting new clients for 45 days. The regulator also asked Reliance Securities to spend Rs 1 crore on investor education and pay a fine of Rs 25 lakh as part of a settlement of an August 2010 inquiry.
Oil India is looking to enter the oilfield services business. The company which is planning to acquire a technology firm in the hydrocarbon space is looking to run it as a strategic business unit. It has set aside up to Rs 4,500 crore for acquisitions in hydrocarbon sector.
Another public sector firm GAIL India is planning to spend as much as Rs 8,940 crore on acquisitions. According to reports, the company is studying 2-3 shale gas projects in the US. The company also expressed interest in acquiring energy assets in Australia.
Jindal Steel and Power’s Chhattisgarh unit has come under the environment ministry scanner. The environment ministry asked Jindal Steel & Power to respond to allegations that the company had built its coal washery without obtaining clearance.
Jindal Steel made a renewed attempt at acquire Australian coal-miner Rocklands Richfields. The company has increased its offer price and extended the deadline for the open offer to 20 June. According to reports, the increased offer price of $0.3 per share is below Thursday’s market price.
Credit rating agency, Icra reduced Reliance Communications’ long-term rating to LAA from LAA plus. Reliance Communications has net debt of around Rs 32,048 crore.
Sebi’s decision to not to allow conversion of frequently traded IDRs into equity shares is set to become major issue. According to reports, some institutional investors that hold Standard Chartered’s IDRs are looking to petition Sebi on new norms. Read more...
Finally, Wipro is looking to imitate Nano in consumer durables products space. The company is looking to make low cost tablet computer and ‘health necklace.’ The health necklace will transmit key vital statistics of the wearer in real time to relatives and doctor. Read more to find out how Wipro is looking to address cost issues...