Opening Bell 16 Jan | World Bank’s grim economic forecast could spook markets

World Bank scales down growth projection for global economy in 2013 from 3% in June last year to 2.4%
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First Published: Wed, Jan 16 2013. 07 51 AM IST
A file photo of BSE building in Mumbai. Photo: Hemant Mishra/Mint
A file photo of BSE building in Mumbai. Photo: Hemant Mishra/Mint
Mumbai: The slow recovery in developed countries may weigh on the global economy in the current year also. Expecting a second year of economic contraction in the euro region and weak recovery in the US, the World Bank has scaled down its growth projection for the global economy in 2013 from 3% in June last year to 2.4%.
The Washington-based bank also warned that global economic environment remains “fragile” and “prone to further disappointment”. Read the Bloomberg report.
Asian markets are trading lower. Japan’s Nikkei lost 1.34% to 10,733 on selling in stocks of export-dependent companies. US stocks closed in the green with the S&P 500 gaining 0.11% to 1,472 on buying in stocks of retail and transportation companies.
Back home, the International Monetary Fund has warned that worsening bank asset quality and tight liquidity could pose risks to India’s financial system. Read more.
Bharti Airtel Ltd stock will witness some action. The company has announced senior level organizational changes. Gopal Vittal, currently group director of special projects will replace Sanjay Kapoor as India CEO from 1 March.
Oil and Natural Gas Corp. Ltd is looking to close the current fiscal year with a production of 27 million tonnes (mt) worth of crude oil from its own fields and its share in joint ventures, reported The Economic Times. The company had earlier set a target of 27.5 mt.
Keep an eye on Adani Ports and SEZ Ltd stock. The group is close to buying Larsen and Toubro Ltd and Tata Steel Ltd’s stakes in Dhamra Port Co. Ltd in Odisha, reported Business Standard.
Strides Arcolab Ltd stock may continue to trade with positive momentum. Pfizer is looking at the option of purchasing the injectable medicines division of Strides Arcolab.
The United Spirits Ltd and Diageo Plc deal has attracted Competition Commission of India’s attention. To ensure that the deal would not create a monopoly, the antitrust body has sought more details on the acquisition by Diageo Plc Read the Mint report.
Kingfisher Airlines Ltd is working out a plan to restart operations by the end of February, reported Mint. The airline has made seven ATR planes ready for inspection. The resumption plan, however, is subject to approval by the Directorate General of Civil Aviation and various airport operators.
Sanjay Aggarwal, chief executive of Kingfisher Airlines Ltd, will meet the aviation regulator on Wednesday to give an update on the grounded airline’s plans. Read more.
Deccan Chronicle Holdings Ltd stock may trade with negative momentum. The NSE has suspended trading in the stock effective 23 January.
To improve operating efficiency, HCL Infosystems Ltd will spin off three of its businesses into separate units. The company’s board of directors and its finance committee has approved the restructuring.
Bajaj Auto Ltd, Bajaj Holdings Ltd, TTK Prestige Ltd, Yes Bank Ltd and Shriram Asset Management Co. Ltd are some of the notable companies that will release earnings for the December quarter today.
Finally, 2012 was one of the world’s 10 warmest years. Last year recorded an average temperature of 58.03 degrees Celsius. According to a Bloomberg report, 2012 was the 36th consecutive year to exceed the 20th-century average of 57 degrees Celsius.
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First Published: Wed, Jan 16 2013. 07 51 AM IST
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