Opening Bell 23 September2 min read . Updated: 23 Sep 2011, 08:17 AM IST
Opening Bell 23 September
Opening Bell 23 September
Mumbai: Liquidity alone will not be able revive economic activity. No matter how low interest rates are, there has to be someone who is willing to borrow and engage in productive activities. And that ‘someone’ is missing now. The uncertainty in the global economy is making businessmen, consumers and investors wary of making fresh investments or purchases.
Add to this the unfolding debt crisis in Europe, political paralysis in the US (the Congress has just shot-down the spending bill- and slowing emerging markets, investors are fleeing equities. Read more...
Technically, global markets have entered into a bear phase. According to Bloomberg, the MSCI All-Country World Index of 45 nations entered into a bear market for the first time in more than two years. The index lost more than 20% since peaking on 2 May.
Overnight stock markets in the US tumbled on fears that governments around the globe are still not doing enough to stimulate growth. The S&P 500 at 1,129 is down 3.19%.
Fears that the US economy might be staring at a recession has led to a weak opening in Asian markets. With European crisis still unfolding investors are worried that companies in the region might be hit due to economic uncertainty. The Hang Seng at 17,585 is down 1.82%.
Back home, the sharp fall in rupee is ringing alarm bells. With the rupee falling 10% in two months, there are worries that domestic firms with dollar loan exposure will have to shell out more on interest payments.
Analysts are worried that domestic currency might cross to 50 to a US dollar in a week’s time if the Reserve Bank of India does not intervene.
The KG basin troubles are far from over for Reliance Industries. The CAG has begun examining the books of the company to see whether there was any loss to the exchequer at its D6 block in 2008-09 and 2009-10.
After increasing prices of its premium brand, Classic, ITC has done the same to the Wills Navy Cut. The company have increased the prices of the Navy Cut brand by 10%. The price hikes comes after several states increased the VAT rates.
NMDC is paying around ₹ 90 crore for a 50% stake in Australia’s Legacy Iron Ore Ltd. The company has number of iron ore, manganese and gold discoveries which are undergoing drilling and resource definition.
Aventis Pharma’s proposed acquisition of Universal Medicare’s nutraceuticals business has come under the IT department scanner. The IT department has searched the office of Universal Medicare and seized the shareholders’ agreement of the deal to examine the possible tax liability arising from the acquisition. Read more...
IVRCL Assets & Holdings along with Sushee Infra Pvt Ltd has bagged a road project. The project valued at ₹ 1,488 crore involves improvement and realignment and widening of the existing road to two-lane.
Finally, here is an interesting compilation of 10 strangest laws in the world. The list includes a chewing gum ban in Singapore, ‘noisy footwear’ ban in Capri, Italy and a strange Swiss law dealing with toilet flushing in apartment after 10 pm. Read more...