Opening Bell 15 September2 min read . Updated: 15 Sep 2011, 08:20 AM IST
Opening Bell 15 September
Opening Bell 15 September
Mumbai: While most economists expect the RBI to deliver one last rate hike on Friday, there are also optimists who believe that the central bank might actually end the rate hike cycle.
And this optimism is driving stocks in the domestic markets. Yesterday’s rally was broad based with rate sensitives, BSE banking and automobile indices, gaining over 1.3% each. Cues from the global markets are encouraging.
Overnight stock markets in the US rose after German and French leaders expressed support for Greece to remain in the euro zone. The positive momentum received a further fillip after reports said that China was willing to buy bonds from nations hit by the sovereign debt crisis. The S&P 500 at 1,188 rose 1.35% on buying in stocks of technology and industrial companies.
The positive cues led to a firm opening in Asian markets too. Stock markets in Japan and South Korea rose by more than 1.3% each in the opening deals. Japan’s Nikkei at 8,659 is up 1.65%.
Back home, the government is reportedly planning to bring the hospitality and tourism sectors under the umbrella of infrastructure sectors. The proposal is expected to be discussed at various levels and is expected to boost infra spending.
Expect positive momentum to continue in the Infosys stock. According to reports, the company is close to acquiring the health care business of Thomson Reuters. The deal, pegged at around $700 million, will be largest acquisition by Infosys.
The oil ministry is expected to soon take a decision on Reliance Industries’ $1.52-billion plan to develop satellite fields in its KG-D6 block. Read more...
The labour unrest in the Gurgaon-Manesar belt is getting worse. Except at Maruti Suzuki India’s main plant, workers at all Suzuki Motor Corp. subsidiaries are striking from yesterday afternoon. Workers at Maruti Suzuki’s Gurgaon factory, the main car-making unit, are likely to join the protest on Thursday.
Tata Steel is planning to lay off 1,000 people over the next four years at its Ijmuiden plant in the Netherlands. The company also said that it will invest 800 million euros in the facility to increase liquid steel-making capacity.
The troubles of Kingfisher Airlines are far from over. The auditor of the company has raised questions about the company’s ability to survive in the business. The auditor has made several scathing remarks about the accounting methods and procedures followed by the company in its annual report.
Cairn India received approval from its shareholders to accept conditions imposed by the Indian government necessary to clear Vedanta’s deal. The approval moves the long-delayed stake sale closer to conclusion.
Pipavav Defence and Offshore Engineering’s tie up with Mazagon Dock is attracting criticism from competitors. L&T has questioned the decision of Mazagon Dock to select Pipavav as a joint-venture partner to build warships. Citing lack of transparency, L&T has sought the intervention of the government to review the decision taken by Mazagon Dock’s board. Read more...
Finally, roaming charges paid by mobile users travelling in India could be abolished. The draft telecom policy 2011 proposes to introduce a ‘one nation-one licence’ regime for mobile phone companies and do away with roaming charges. While consumer will cheer the decision, telecom companies will lose those extra revenues. Read more...