Mumbai: The cracks are beginning to show. The German finance minister Wolfgang Schaeuble pooped the party yesterday announcing that European governments will not be able to present a solution to the region’s debt crisis at the October 23 summit.
If that tempered the growing enthusiasm, Moody’s added its dampener warning that it might post a negative outlook on France’s Aaa credit rating in the next three months if the costs for helping to bail out banks and other euro zone members stretch its budget too much. Read more...
Overnight, stock markets in the US reacted. The S&P 500 at 1,200 is down 1.94% on selling in stocks of financial services companies.
The comments also drove Asian markets lower. Japan’s Nikkei lost 1.46% to 8,749 in opening deals. Stocks of exporters and financial services companies are leading the losses.
Back home, Kaushik Basu, economic advisor in the finance ministry confirmed the growing realism on growth projections. The chief economic advisor pegged the growth rate for the current financial year at 7.5-8%.
In the markets today expect some action in the TCS stock. The company’s second quarter profits missed analysts’ expectations. The company reported a 2.5% rise in its IFRS rupee net profit from the preceding three months.
HDFC reported a 20% increase in September quarter net profits to Rs 970 crore. While the profits were higher than analysts’ estimates , the results reflect a deceleration in loan approvals and disbursements. Read more...
The Jet Airways-Sahara battle is heading to the Supreme Court. The Bombay High Court refused to intervene in the dispute triggered by Jet Airway’s purchase of the Sahara’s airline business.
Kingfisher Airlines told employees that a looming capital crunch coupled with a gloomy economic environment is making it difficult for the carrier to pay salaries on time. Read more...
Maruti Suzuki’s board has sought a report on the labour unrest. Apart from reviewing the situation, the board is also likely to approve the company’s decision for a potential investment of up to Rs 18,000 crore in Gujarat when it meets on 29 October.
Meanwhile, to cash in on the Maruti Suzuki’s production losses, and benefit from the festive demand, Tata Motors is stepping on the gas. The company has more than doubled production of cars at its Pune plant in October to meet the demand created by the long waiting periods for its rival’s diesel models.
Software company MindTree crossed the $100 million mark in quarterly sales for the first time in the three months ended 30 September. While revenues grew 9.5% from the June quarter to $101.3 million, net profit jumped 56.8% to $12.1 million.
Weak advertising revenues weighed on the Zee Entertainment Enterprises’ September quarter revenues. The company reported a 1% increase in revenues and 7.6% growth in profit before tax.
ONGC Videsh Ltd, the overseas subsidiary of ONGC, is planning to bid for oil and gas blocks in Myanmar, Iraq and Vietnam. The company is also interested in bidding for hydrocarbon blocks in Gabon.
Finally, Singapore arrested a man for conducting an exit poll ahead of the general election in May. The man, linked to a popular socio-political website, was arrested for offences under the Parliamentary Elections Act and has since been released on bail pending further investigations. Read more...