The railway minister got the sacking for presenting, what many analysts termed as a realistic budget. While the government is yet to name a new railway minister, the development exposes the vulnerability of the UPA.
Cues from the global markets are mixed. Overnight, stock markets in the US retreated as investors became wary of the recent rally. S&P 500 at 1,394 closed marginally lower by 0.12%.
Asian markets opened on a positive note. Weakening Japanese currency, Yen, is leading to buying in the shares of export dependent companies. Nikkei at 10,141 is up 0.90%.
Brent crude, meanwhile, eased to $124.87 a barrel. Crude rates fell after a report said US crude stockpiles rose and Saudi Arabia pledged to make up for any shortage of oil from Iran.
Back home, Airline stocks could witness some action. India has allowed local airlines to launch around 500 international flights by the end of this year. The aviation ministry has approved new flying rights to Jet Airways, IndiGo and SpiceJet. The move could shore up revenues for the stressed sector.
Keep an eye on Sarda Energy and Minerals and Tata Power stocks. A consortium comprising Tata Power and SN Power Norway is in talks to buy a significant stake in a 96 megawatts hydropower project in Sikkim from Sarda Energy and Minerals. The transaction is reportedly valued at about Rs 200 crore.
Mangalore Chemicals & Fertilizers stock could continue to witness action. According to The Times of India, Mangalore Refinery and Petrochemicals has expressed interest to acquire the promoter’s stake in Mangalore Chemicals & Fertilizers. UB Group holds around 30% stake in Mangalore Chemicals & Fertilizers.
The lukewarm response to Wipro’s share auction could weigh on the stock for some time. The sale by Azim Premji Trust got bids for only 71% of the shares on offer. Of these, bids for only 51% of shares on offer were valid. The sale raised Rs 750 crore at an average price of Rs 421.35 per share.
Thomas Cook India stock might continue to trade with positive momentum. The company received at least eight proposals from potential buyers, reports Business Standard. According to the report, several private equity and global investment firms are in the race to buy the company.
Sequoia Capital India, Baring Private Equity Partners India and another institutional investor are buying a 4% stake in Manappuram Finance for Rs 130 crore. The money is expected to help Manappuram Finance’s executive chairman V.P. Nandakumar meet obligations to depositors of a group company.
The Bombay high court has asked SEBI to reconsider the MCX Stock Exchange’s application to start trading in equities. Currently, the exchange trades only in currency derivatives. While the development is a positive for the company, SEBI can still deny the MCX-SX a licence on fresh grounds or move the Supreme Court.
Finally, Encyclopaedia Britannica Inc. said that it will stop publishing the print editions of its flagship Encyclopaedia for the first time since the sets were originally published more than 200 years ago. The book-form of Encyclopaedia Britannica will stop being available when the current stock runs out.