BackOpening Bell 12 Dec | Tech Mahindra and NMDC to be in focus
IIP for October is to be released today, 5.1% growth expected; S&P warns India of a ratings cut
Premium(Hemant Mishra/Mint)
Mumbai: The industrial production data for October is to be released today. Analysts polled by Bloomberg are expecting the Index for Industrial Production (IIP) to register a growth of 5.1%. In September industrial production fell by 0.4%. A better-than-expected reading will cement the belief that economic activity is gaining pace.
Global markets are trading higher. The Nikkei gained 0.52% to 9,575 on speculation that the Federal Reserve will take more steps to revive economic growth in the US. Read the Bloomberg report.
Overnight, the US markets closed firm. The S&P 500 gained 0.65% to 1,427 on improvement in German investor confidence. Read more.
Back home, Standard and Poor’s has warned India of a ratings cut. The ratings agency reiterated that there is one out of three chances of a cut in India’s sovereign ratings due to high fiscal deficit and debt. Read more.
The new drug pricing policy, notified by the government on Friday, may hit the profitability of pharmaceutical firms, reports Mint. The policy is aimed at regulating prices of 348 drugs that are considered essential.
Concerned about rising fares, the civil aviation ministry is planning to ask domestic airlines to reduce rates, reports Business Standard. The ministry will reportedly meet domestic airlines next week to discuss how fares can be brought down.
Maruti Suzuki India Ltd believes that the growth in the domestic passenger vehicle industry may languish in single digits for the next three years, reports Mint. The firm has cut its forecast for the passenger car market to four million units by 2015-16, from its earlier projection of five million.
Tata Consultancy Services Ltd (TCS) expects 2013-14 fiscal to be a better one for software companies than the current fiscal year. TCS also said it will meet the revenue growth rate projected by the Nasscom for the current year. The outlook is more optimistic than guidance by Infosys. Read more.
After listing Bharti Infratel Ltd, Bharti Airtel Ltd is planning to restructure its debt. The telecom company is planning to raise as much as $1 billion ( ₹ 5,430 crore) through bonds to refinance debt. Read more.
Keep an eye on Tech Mahindra Ltd stock. BT is selling its 9.1% stake in the company, reports Reuters. According to the report, the shares are being sold at a floor price of ₹ 855. The stock closed at ₹ 878.4 on Tuesday.
NMDC Ltd would also be in focus. The government has fixed the floor price at ₹ 147 a share for the proposed offer for sale of the equity shares. The base price is at a 7.7% discount to Tuesday’s closing price of ₹ 159.3.
Apollo Hospitals Enterprise Ltd is selling its healthcare-focused BPO to Sutherland Global Services Inc. for ₹ 1,000 crore. Apollo Hospitals holds 39% stake in the company. Read more.
The Andhra Pradesh high court has stayed a provisional order by the Enforcement Directorate (ED) attaching ₹ 822 crore in deposits belonging to Mahindra Satyam. The ED on 18 October issued a provisional order attaching the company’s fixed deposits in a money laundering case related to the previous management.
Fortis Healthcare Ltd is planning to raise ₹ 2,000 crore to reduce its debt, reports Business Standard. The company, which has a gearing of 1:1, is reportedly aiming to bring down the ratio to 0.6 times.
Finally, in defiance of its critics, North Korea launched a long range rocket. While it wants to put a satellite into space many countries fear that the tests are aimed at developing more weapons. Read the Reuters report.
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