Mumbai: The much-awaited agreement at the EU summit doesn’t look like it is happening. Under pressure from rising borrowing costs, Italy and Spain refused to officially endorse a 120 billion Euro growth package until the group initiates measures to ease their cost of credit. Read the Reuters report.
The uncertainty is leading to cautious trading in the equity markets. Investors are waiting for the final outcome of the Euro summit. Japan’s Nikkei dropped 0.40% to 8,839 even as the country’s industrial production fell more than expected in May.
Overnight, US stock markets staged a remarkable recovery in the last one hour of the trading. Speculation that the European leaders were nearing an agreement on debt crisis helped the equities close with lower losses. S&P 500 at 1,329 is down 0.21%.
Back home, government and the Reserve Bank of India are in discussions to create a rescue fund to help companies facing problems in foreign currency convertible bond redemptions, reports the Business Standard.
Risks to the Indian financial system have increased over the past six months, the Reserve Bank of India said in its Financial Stability Report. Sovereign debt crisis and domestic issues such as the growing fiscal deficit, widening current account deficit, and high food inflation are threats to financial stability, the report says. Read more.
Stocks of airline companies could witness some action. The Financial Stability Report notes that the airlines’ share in aggregate banking system NPAs and restructured assets rose disproportionately to their share in the banking credit. According to the report, the aviation sector is likely to continue facing funding crunch. Read more.
For understating revenues, the telecom department is likely to impose fines totalling Rs 1,600 crore on five telecom companies-Bharti Airtel, Idea Cellular, Reliance Communications, Tata Teleservices, Tata Communications and Vodafone, reports The Economic Times. According to the report, penalties are likely to be imposed this month itself.
BHEL has offered to supply 100 diesel locomotives to Pakistan, reports Mint. The proposed deal is valued at around Rs 1,000 crore.
In a setback to the Hindustan Unilever, a patent tribunal has ruled that the patent issued to company’s water filter brand, Pureit, be revoked, reports Mint. The company is considering filing an appeal in the Bombay high court.
Cairn India stock might witness some price adjustments. According to The Times of India Cairn Energy of UK is selling its stake in the company at Rs 307.5-317 a share. The stock closed at Rs 327.5 on Thursday.
Keep an eye on Cadila Healthcare. A complaint of patent infringement has been filed against the company’s unit in a US court, reports the Business Standard.
OnMobile will continue to be in focus. According to The Economic Times, the company’s board has asked an audit firm to find out if money was siphoned out of the firm.
Finally, sprinting, not jogging helps men lose fat faster, a new research found. The study adds to findings that high-intensity exercises may result in greater fat loss than less vigorous forms of exercises. Read the Bloomberg report.