Opening Bell 11 August

Opening Bell 11 August

New Delhi: The rally fizzled out in no time. Now, it’s Europe’s debt crisis that’s creating fresh fears.

The Dow Jones Industrial Average fell to its lowest level since September 2008 as investors feared that the debt contagion in Europe will hit the banking industry. The index closed lower by 4.62%.

That also led to a weak opening in Asian markets. The Nikkei is down 2%.

Back home, the Planning Commission is likely to reduce its average annual growth target for the 12th five-year plan (2012-17) to 8.5-8.7% due to an uncertain global economy. Earlier, it was projecting economic growth at 9-9.5%. Read more...-

The Telecom Commission has cleared a proposal to hive off 770 acres of surplus land held by Tata Communications into a real estate company. It had been part of VSNL’s assets acquired by the Tatas. Read more....

Piramal Healthcare will buy a 5.5% stake in Vodafone’s Indian unit for around 2,890 crore. The move is expected to help Vodafone meet regulatory requirements.

The West Bengal government is acting tough. The state government said it will seize 270 acres from JSW Bengal Steel, a unit of JSW Steel. The company had bought the land to build a 10-million- tonne steel plant in West Midnapore district. The government will seize the land for not securing exemption under the land ceiling law. Read more...

The Leela Group is selling its property in Kovalam for 500 crore to cut debt. At the end of last financial year, Hotel Leela Venture had an accumulated debt of 3,830 crore.

Indian Oil Corporation has posted a wider loss for the three months ended 30 June due to higher subsidy burden and interest costs. The company reported a net loss of 3,719 crore for the June quarter, about 400 crore more than a year ago.

Logistics firm Deutsche Post DHL is evaluating its options about its stake in Blue Dart Express. DHL, which holds 81% in Blue Dart Express, is contemplating whether to raise its stake in Blue Dart Express or pare it down to 75% to comply with the local rule for publicly traded firms. Read more...

Kingfisher Airlines’ net loss in the June quarter increased sharply to 263.54 crore from 187.34 crore in the year-ago period. Higher fuel costs and a shift in the market towards low-fare travel have impacted the company’s earnings.

Boosted by one-time income, Tata Global Beverages reported a threefold rise in net profits for the first quarter. The company posted a net profit of 160.9 crore in June quarter.

Finally, economic fears are weighing heavily on Americans. A Reuters/Ipsos poll found that 73% of the Americans believe the United States is on wrong track. The survey also found that 47% believe ‘the worst is yet to come’ in the US economy, an increase of 13 percentage points from a year ago period. Read more...