Mumbai: It is going to be an eventful day. Two significant sets of numbers will be released today. First, the second quarter results of Infosys which kickstarts the earnings season. Second, August industrial production numbers.
A survey conducted by the Bloomberg pegs the August Index of Industrial Production at 4.7%. While the industrial production gauge rose by 3.3% in July, don’t be surprised if the actual numbers hugely differ from market expectations.
Meanwhile, bearish bets on the Infosys stock have reached a seven month high. Options traders fear that Infosys may cut its earnings forecast sharply amid uncertainties in the global economy.
Cues from the global markets are not encouraging. The US Senate defeated President Barack Obama’s job-creation package. The $447 billion package of tax cuts and new spending failed by a vote of 50 to 48, short of the 60 votes it needed to advance in the 100-member Senate.
In an unexpected outcome, the Slovakian parliament refused to endorse the expansion of a bailout fund to rescue the euro zone from its debt crisis. The European Central Bank chief warned that the debt crisis had become systemic and must be tackled decisively. Read more...
The negative cues lead to a weak opening in the Asian stock markets. Japan’s Nikkei at 8,723 is down 0.57% on selling in stocks of automobile companies.
Overnight, US stocks closed with nominal gains. Optimism about September quarter corporate earnings helped the S&P 500 gain 0.05% to 1,195.
Back home, production might come to a standstill at Maruti Suzuki. While the Manesar plant continues to remain hostage to striking workers, a disruption in components supply has hit the production at the Gurgaon unit.
South Africa based hospital chain, Life Healthcare, is reportedly buying a 26% stake in Max Healthcare for Rs 516 crore. Max Healthcare is a subsidiary of Max India. The proposed transaction values Max Healthcare more than Rs 2,000 crore.
The Bombay high court directed Wockhardt to clear all dues to its bondholders by August 2012, ending a two-year-long legal battle. Any default in repayment will allow an official liquidator to initiate winding-up process against the drug firm.
Shipping Corporation of India has deferred plans to diversify into shipbuilding and managing container terminals at ports. With downturn in the global shipping industry putting pressure on revenues and margins, the company has decided to focus on its core operations.
Finally, Power Grid Corporation of India is planning to enter the power transmission business in Bangladesh and Sri Lanka. The company wants to enter these countries by setting up joint ventures with local partners.