Opening Bell 11 October2 min read . Updated: 11 Oct 2011, 08:39 AM IST
Opening Bell 11 October
Opening Bell 11 October
Mumbai: Markets are riding high on pledges. Stocks in Europe and the US rallied after German Chancellor Angela Merkel and French President Nicolas Sarkozy promised to unveil a comprehensive new package to ease the euro zone’s debt crisis.
Overnight, the S&P 500 jumped 3.41% to 1,194 on buying in stocks of financial services companies.
The rally in the US and European markets had a positive rub-off on Asian equities. The Nikkei surged by 2.03% to 8,780 on buying in shares of raw material producers and exporters.
The positive momentum has also sent crude prices higher. Brent crude climbed above $108 to $108.77 a barrel aided by a strike in Kuwait.
Back home, Maruti Suzuki is struggling to cope with a resurgent labour trouble. The strike is disrupting production at both Gurgaon and Manesar plants. The company was able to produce only 1,800 vehicles at the Gurgaon plant against the normal production run rate of 2,800 units.
The country’s largest miner, Coal India, has also been hit by a workers’ strike. More than 3 lakh workers of Coal India went on a one-day strike demanding higher bonus. While the strike caused a production loss of 1 million tonne, the workers are planning to go on a three-day strike next month. Read more...
As expected, DLF has filed an appeal in the Competition Appellate Tribunal, seeking a review of an antitrust regulator order that imposed a ₹ 630 crore penalty for abusing its dominant market position. The appeal is expected be heard by the tribunal on 9 November.
The CAG has raised concerns about the costs claimed by Reliance Industries for the development of its D6 block in the KG basin. In a letter to the oil ministry, the CAG has said that the government should attempt negotiating with RIL on the costs and how they should be recovered only after a proper audit of the expenditure incurred after 2008-09.
SBI is likely to raise ₹ 5,000 crore through a rights issue of shares by December, a fourth of what the bank has planned earlier. According to reports, the government is likely to pump in around ₹ 3,000 crore through the rights issue.
Suzlon Energy is set to receive 115 million pounds from Germany’s ZF Friedrichshafen for its remaining stake in Hansen Transmissions International. The share sale proceeds will help Suzlon cut its debts.
Keep an eye on KS Oils stock. An US based agro company, ADM, is reportedly in talks to buy four oilseed crushing plants from KS Oils. KS Oils is either looking to sell some of its assets or the promoter’s stake after lenders sold a part of pledged shares.
Fuel shortage has tripped electricity generation at NTPC. The company’s power plants in NCR, Singrauli and Unchahar in the northern region, Vindhyachal in Madhya Pradesh, Farakka, Kahalgaon in the eastern region and Ramagundam, Simhadari in the south have been affected due to shortage of coal and recent heavy rains. The production losses are estimated at around 4,000 megawatts.
Finally, Starbucks might announce an alliance with Tata Coffee in the coming weeks. According to reports, the outlets are likely to be located in retail stores and hotels associated with the Tata group. Read more...