Mumbai: Dismal US jobs data and weak economic data from China, Brazil and UK has exacerbated fears of a sharp global slowdown, leading to another bout of selling in the equity markets, reports Financial Times. The US payrolls report for May recorded only 69,000 new jobs against expectations of 150,000. The poor jobs data came on top of disappointing purchase manager’s index reading for China and UK, followed by sluggish GDP growth in Brazil.
Asian markets were on a downward spiral on Monday morning following the steep 2% cut in Wall Street indices. US jobs data has raised fresh doubt about the health of the world’s largest economy. Japan’s Nikkei Stock Average tumbled 2.1%, Hong Kong’s Hang Seng and China’s Shanghai Composite were down 2.2% and 1.3% each, reports MarketWatch.
In India, revenue growth of corporates grew at the slowest pace in two years, hurt by falling investments, policy inaction and rising cost of inputs, reports Economic Times. An analysis of 2,302 listed companies showed a 13.5% year-on-year revenue growth for the March quarter against 19.3% in the December quarter.
Consumer goods companies could increase their advertising expenditure in order to boost volume growth, reports Mint. Operating profit margin of most firms rose in the March quarter as they hiked prices and cut expenses. Executives expect good monsoon to drive demand in the sector.
Besides rain delay, concerns for weather forecasters this monsoon include the likely emergence of El Nino, reports Mint. El Nino is marked by a rise in temperatures in certain regions of the Pacific Ocean. In the last century, a greater than 1 degree rise in temperature during the season has corresponded with a monsoon failure.
The promoters of the Essar Group, Ruias, have begun implementing a plan to reduce the presence of family members on the boards of companies, reports Economic Times. In recent weeks, Prashant Ruia stepped down from Essar Oil, leaving his father - Shashi Ruia as the sole representative of the flagship group firm- Essar Oil.
Future Capital Holdings will be in the focus on reports that US-based private equity firm Warburg Pincus is likely to pick up a majority stake for an estimated Rs 600 crore, around Rs 155-165 per share.
Airline stocks will be on the radar after aviation ministry has called for abolition of service tax on air tickets and reduction in sales tax on aviation fuel from an average 25% to a uniform 4%, reports Economic Times. The proposal will rein in rising fares and also help debt ridden carriers improve profitability.
BPCL has finalized a joint venture agreement with UK-based LP Chemicals for petrochemical business, reports Business Standard. BPCL is likely to hold 49% in the venture and spend Rs 40,000 crore in the next five years to set up a petrochemical plant at the Kochi.
Lastly, giant robotic arms seem like the perfect answer to China’s fast-rising labour costs - they don’t ask for a raise, get injured or go on strike, reports Economic Times.