Mumbai: Ignoring the warning bells from the Euro zone (Italy ratings downgrade), short covering in the Indian markets yesterday led to gains.
Cues from the global markets are also mixed. Stock markets in Asia rose on optimism that Europe’s debt crisis may ease and lift earnings of the export dependent companies. The Nikkei at 8,723 is up 0.03%.
Overnight, US stocks closed flat as investors waited to see if the Federal Reserve would offer more economic stimulus. At the end of its two-day meeting on Wednesday, the Federal Reserve is expected to announce plans to intervene in the bond market to push long-term interest rates even lower. The S&P 500 at 1,202 is slightly down by 0.17%.
The IMF has scaled down its growth projections for the Indian economy. The agency now expects the Indian economy to grow at 7.8% in this year, down from an earlier 8.2%.
Expect positive momentum to continue in software stocks. Technology major Oracle Corp reported better than expected August quarter earnings. The company also forecast earnings that were better than analysts’ expectations. The robust forecast offers some reassurance that global technology spending is holding up.
Even as the company’s co-founder fights bribery and tax evasion allegations, Everonn Education has managed to sell a 12% stake in the company to Dubai-based Varkey Group’s GEMS Education for Rs. 138.23 crore. As part of the deal Everonn will issue about 2.6 million preferential shares at Rs 528 each to the Varkey Group.
Subex is selling its activation business to NetCracker Technology Corp. for an undisclosed sum. The business that is being sold brought in around Rs 72 crore to Subex’s product revenue of Rs 427.96 crore in 2010-11. The sale proceeds will help the company pare some debt.
Larsen & Toubro has emerged as the preferred partner for a shipbuilding joint venture with Hindustan Shipyard.
Suzlon Energy has run into land troubles in Kerala. According to reports, citing encroachment, the Kerala government said it would take over the 85.21 acres in the tribal area of Palakkad district where Suzlon had set up two wind mills. The government wants to return the land to tribals.
Amrutanjan Health Care is looking to turnaround its fine chemicals subsidiary, Amrutanjan Pharmaessence in the next two to three years. The company is planning to partner with pharma MNCs to offer contract manufacturing and custom synthesis services.
Expect some action in KS Oils stock. With the company yet to finalise the previous financial year’s audited accounts, there is a growing apprehension that accounting procedures might have been compromised. Reports also point out to possible losses that were unaccounted for.
Hindustan Copper has decided not to raise funds through FPO. With copper prices remaining firm, the company expects to meet the capital expenditure needs through internal accruals and debt.
Keep an eye on Voltas stock. The company is reportedly in talks to acquire Wipro’s water purification and treatment business. According to reports, Wipro has mandated investment bank Anand Rathi to find a suitor for the water treatment business.
OPEC member countries are staring at a windfall. OPEC members are poised to earn an unprecedented $1 trillion this year. According to the US energy department, with the group’s benchmark oil measure trading above $100 a barrel since February (the longest period ever) member countries are expected to earn record amounts by selling oil in this year.