Opening bell 13 June

Opening bell 13 June

Mumbai: Fearing an intensified slowdown, investors across the world are paring their exposure to equities. Cues from the domestic economy are not encouraging either. Policy paralysis and continuing inflow of negative economic data is making investors wary of allocating more money to Indian equities.Here’s a list of things to watch out for before trading starts.

Nouriel Roubini has warned of a ‘perfect storm’ wherein fiscal woes in the US, slowdown in China, European debt restructuring and stagnation in Japan might converge on the global economy.

Stock markets in the US fell for a sixth consecutive week. Renewed concerns about the sustainability of economy recovery led to selling. The S&P 500 at 1,270 slumped 1.4%.

The sharp correction in US equities led to a weak opening in Asian stock markets. Japanese equities fell by as much as 1% after Toyota Motor Corp warned that profits might fall 31% following March’s earthquake.

At around $118 a barrel, Brent crude, on the other hand, is holding up in green. Even though speculation about faltering demand sent the crude lower in the last two days, the prices gained support in Asian trading.

The Indonesian government has given a shocker for companies importing coal for that country. In an order, the Indonesian government has decided to link the price of coal exported from the country with a benchmark based on international prices. The rule will be applicable retrospectively to all contracts. That puts currently some of the operational plants of Tata Power, Adani Power, JSW and Lanco Infratech at risk as most of their feedstock comes from Indonesia. Read more...

Meanwhile, coal minister Sriprakash Jaiswal warned that the coal shortage in India is likely to more than double in the next five years unless production is not ramped-up. According to the minister, the shortage could be around 250-300 million tonnes annually.

Reliance Industries is set to buy a controlling stake in Bharti AXA’s life and general insurance business. Read more...

The Bharat Forge-NTPC JV is set to sign technology transfer agreement with overseas companies for manufacturing of pumps, valves and large castings for power plants.

To optimise returns from surplus cash, Bhel is looking to pick up equity stakes in state power companies. The company has already entered into four such JVs with Maharashtra, Madhya Pradesh, Karnataka and Tamil Nadu.

Maruti Suzuki India has agreed to recognise the new union and reinstate five of the 11 sacked workers. The workers are demanding the reinstatement of all sacked colleagues. Read more...

West Bengal chief minister Mamata Banerjee’s strong posture against forced land acquisitions might spell trouble for a NTPC project. Last year, NTPC had taken over the Katwa project from West Bengal Power Development Corporation. It acquired 387 acres of the 1,035 acres required for the project. With the new government against forced land acquisitions, the 9,600-crore project might be in jeopardy due to lack of sufficient land.

Finally, here is the list of the top 10 wacky summer events in the US. If anyone is planning a summer trip to the United States and enjoys the strange, unusual stuff, online travel adviser TripAdvisor compiled a list of top 10 summer events in the US. Read more to find out about them...