Mumbai: Debt crisis concerns have resurfaced. Stock markets in Asia fell on reports that Spain will have no option but to bail out its struggling banks with sovereign debt. Read The Wall Street Journal report. Japan’s Nikkei at 8,546 is trading lower by 0.54%. US markets were closed for a public holiday.
While the government is insisting that the banking sector would not need a further bailout, markets are becoming wary of Spanish debt. Spain’s 10-year bonds rose sharply to 6.5%.
Back home, the department of telecommunications is proposing to halve the payment period for the spectrum that an operator wins in the coming auction. The move is intended to make it easier for the companies to pay for the spectrum. Read the Mint report.
The new consent order framework announced by the Sebi will also apply to the Reliance Industries case, reports Business Standard. The case was regarding the sale of Reliance Petrochemicals shares by Reliance Industries. According to the report, existing and new cases would be disposed of within six months.
Oil marketing companies could continue to be in focus. Petroleum minister S Jaipal Reddy said the government is not considering any increase in diesel, LPG and kerosene prices. Indian Oil Corporation, on the other hand, tripled fourth-quarter profit after the government compensated the refiner for selling diesel and cooking fuels below cost. Read the Mint report.
Western Coalfields, a subsidiary of Coal India, can finally proceed with its 33 coal mining projects in Maharashtra. The government has decided to compensate farmers in the affected areas on a par with those from neighbouring states, reports Mint. Meanwhile, Coal India reported a 4.93% drop in March quarter profits due to a sharp rise in provisions for wages.
To placate creditors of its beleaguered Mundra project, Tata Power Co plans to transfer three quarters of its stake in Indonesian coal mines to a subsidiary that is setting up the 4,000 megawatts plant, reports Mint. The restructuring is expected to help improve cash flows of the subsidiary.
Jindal Steel and Power has bought a 10% stake in Gujarat NRE Coke’s Australian subsidiary for around $25 million (Rs 137.5 crore), reports the Business Standard. The acquisition is expected to help Jindal Steel and Power secure fuel supplies. The two companies also signed an agreement for supply of five million tonnes of coking coal to Jindal Steel’s Indian units for 10 years.
Fortis Healthcare hived off its non-core businesses into a separate company. The company wants to list the unit as a business trust on the Singapore Exchange. Read The Economic Times report.
Finally, LinkedIn’s user base has crossed the 15 million mark in India. In terms of membership, India is LinkedIn Corp’s largest market outside the US. India currently accounts for 9.3% of the site’s overall user base of 161 million. Read the Mint report.