The Mint Report for 21 December 2010

The Mint Report for 21 December 2010

On Tuesday the Russian President Dmitry Medvedev and Prime Minister Manmohan Singh oversaw the signing of close to 30 agreements. That includes major deals in defence and nuclear energy. The two sides signed a preliminary design contract for making so-called fifth generation fighter aircraft in a deal potentially worth 30 billion dollars. India and Russia also agreed to a protocol to ensure uninterrupted supplies of Brahmos cruise missiles for India’s armed forces. And in energy co-operation, the two sides inked an agreement to jointly develop nuclear reactor technology. Russia wants to build at least 18 reactors at three different locations in India.

Loading video...

And the Russian president also lost no time expressing political support for India. Medvedev called on Pakistan to go after the perpetrators of the Mumbai attacks. He also supported India’s bid for a permanent seat in the UN Security Council.

And in corporate news, JSW Steel is all set to become India’s biggest steel company. On Monday the company announced it was acquiring a controlling stake in Ispat Industries. 41% will come from a preferential allotment. That will entail JSW Steel buying 108 crore fresh shares at Rs19.85 each, a 7% discount on Tuesday’s closing price.

Meanwhile, JSW Steel will also buy more shares in Ispat through an open offer.

And stocks of the two steel companies pulled in different directions on Tuesday. Shares of Ispat closed 15% lower on the BSE at 21.20. And JSW Steel rose 2.23% to 1,211.95.

And finally, Indian markets rocketed upwards on Tuesday. The Sensex shot up 171 points to close at 20,060. And the Nifty climbed 54 to end at 6001.