Opening bell 7 September

Opening bell 7 September

Mumbai: Value buying in the second half helped Indian stocks close Tuesday with gains. However, things are not so bright in the rest of the world.

Stock markets in Europe and the US fell on fears that political discord was exacerbating the European debt crisis. While European shares hit their lowest closing in more than two years, stock markets in the US fell on selling in banking and financial stocks. The S&P 500 at 1,165 is down by 0.74%.

Stock markets in Asia, on the other hand, opened on a positive note. Japanese shares rose after a weakening yen boosted outlook for exporters. The Nikkei at 8,725 is up 1.57%.

Back home, India’s fiscal deficit rose to 1.8% of the GDP in the first quarter of the current financial year. While this is almost thrice the level in the same period last year, analysts are increasingly getting apprehensive about the government’s ability to meet the year end deficit targets.

Mobile tariffs could rise further. According to Sunil Mittal, chairman of Bharti Airtel, rising operating costs will force telecom firms to drive call tariffs higher.

Expect some action in the Jaiprakash Associates stock. The company is looking to rope in a strategic partner for its cement business. According to reports, the company has already begun preliminary talks and is open to diluting up to a 26% stake.

Maruti Suzuki India is shifting assembly of the Swift car model to its Gurgaon plant as the lockout at its Manesar factory curtails production. Read more...

Shree Renuka Sugars is reportedly in talks to sell 25% stake in its subsidiary Renuka Brasil Holdings to cut down debt. The company is in talks with several private equity companies and strategic investors.

NTPC signed a joint venture agreement with Sri Lanka’s Ceylon Electricity Board (CEB) for developing a power generation plant. The 500-megawatts plant, NTPC’s first project overseas, requires an investment of $500 million.

With organised sales channels getting hard to come by, Aviva Life Insurance is looking to forge a long term bancassurance pact by selling a 30% equity stake to the Syndicate Bank.

In an effort to recover 345 crore worth of dues, lenders are trying to get Gangotri Textiles to merge with a larger firm. Rising costs of cotton and yarn have hit the textile industry hard, driving many firms to the corporate debt restructuring cell (CDR).

Finally, the argument for no footwear for children, is slowly gaining strength. According to podiatrists, wearing shoes at too young an age can hamper the child’s walking and cerebral development. Read more to find out why...