Mumbai: It’s a crisis of confidence. And snail pace progress in finding solutions will make investors more nervous, leading to more volatility.
Stock markets in the US closed lower for the fourth straight week as buyers hesitated to take fresh positions amid growing fears of recession and a wobbly European financial system. The S&P 500 closed down 1.5%.
Asian stocks opened lower on fears that German chancellor Angela Merkel’s resistance to common euro-area bonds will prolong the Eurozone debt crisis. The Nikkei at 8,700 is down 0.22%.
The negative sentiment is also sending crude prices lower. Brent crude at $106.7 a barrel is down 1.77% on speculation that a slowing global economy will decrease the demand for fuel products.
A Parliament panel has asked the government to explore the possibility of curbing iron ore exports. The panel has reportedly expressed concerns about deteriorating iron ore reserves in the country.
Bhel is aiming to achieve a net-worth of Rs 23,755 crore in the current financial year. Reaching the targeted net-worth would help the company receive Maharatna status.
NTPC is likely to sign an agreement to build a 500-megawatt power plant in Sri Lanka. The project, estimated to cost Rs 2,250 crore, will be set up as an equal joint venture between NTPC and Sri Lanka’s Ceylon Electricity Board.
Maruti Suzuki is banking on festive demand for a revival in sales momentum. The auto major is expecting sales to gather steam from the first week of September.
Nalco has reportedly got approval to mine a coal block in Orissa. According to reports, the government has given the green signal to mine Utkal coal block at Angul. The block is estimated to have coal reserves of 70 million tons.
Reliance Industries is likely to close its $7.2 billion deal to sell stake sale in oil and gas blocks to BP Plc by end of this month. With the government giving its nod for the stake sale, the closing documents are likely to be signed by the end of this month.
Elder Pharmaceuticals is aiming to launch 12 new products in the current financial year. The company is planning to launch the products in the areas of gynaecology, pain management and nutraceuticals.
Finally, in a testimony to the underlying negative sentiment, investors have valued Apple Inc more than 32 large Eurozone banks put together. By valuing Apple at $340 billion, investors have exuded more confidence in the maker of iPods and iPhones than the banks that act as a lifeline to the Eurozone. Read more...