US and europe ended yesterday higher on account of Slovakia's committment to support the rescue fund while a weakening dollar drove crude and gold up on the commodity meter. EM bourses look to facilitate cross-listing and back home, Infosys kick-started a good earnings season. Whats more? Check out.
Twenty four hours after its parliament voted down a bill to expand guarantees, Europe's bailout fund, the EFSF, Slovakia's top political parties came to an agreement saying they would approve measures by the end of the week. The reason for the breakthrough was the promise of early elections.
Meanwhile, Greece's budget deficit widened 15% in the first nine months of the year. That is narrower than Athens' recently revised forecast. Nonetheless, Germany's finance minister has called for greater measures to reduce Greece's debt, including bigger participation by private investors.
Responding to the cues, the Wall Street logged gains, but ended off-highs following a report that European banks may shrink to meet higher reserve targets. European markets finished higher as Slovakia reaches a deal to strengthen the euro zone rescue fund.
There is news that US Securities and Exchange Commission is now seeking comment on implementing the so-called Volcker rule that would restrict banks from trading on their own account and also from investing in hedge funds. An action a little too late, but lets wait and watch if the move can help the economy recover there.
Asia opened trade on a positive note today with Nikkei and Kospi up a percent.
In commodities, it is a quite session for crude as the black gold holds steady at USD 111 levels while gold inches higher following the weakness in dollar to USD 1680.
Meanwhile, the euro trades near a four-week high on banks recapitalization plan and Slovakian agreement to ratify the bailout plan. It is up at 1.37 to the dollar.
There’s more to the markets today. Emerging markets bourses have joined hands to facilitate cross listing. Hong Kong's stock exchange is teaming up with markets from Brazil, Russia, India and South Africa to attract investor interest by cross listing their derivative indexes. The initial interest would be on equity derivatives. The markets are hoping to extend it to other segments like commodities too.
Check out company specific cues:
Maruti workers’ strike at Manesar plant enters its 7th day. Gurgaon-Manesar-Bawal industrial belt have announced plans to jointly hold a protest rally today at Manesar in support of the striking workers. Production has been halted. Wonder if the company will be able to carry forward through the Diwali season.
Meanwhile, Hyundai has added cheapest car to India lineup in a bid to loosen Suzuki’s grip. It will soon unveil the Eon in the country.
Here’s news for sporting fans. Just as India was gearing to make its plunge into the Formula One Grand Prix, Sahara India’s Subroto Roy has strapped into the F1 driving seat. He has bought 42.5% in the Force India F-1 team for USD 100 million. The team is now renamed Sahara Force India. Kingfisher Airline ’s Mallya retains an equal 42.5%. This brings in the much needed fund for the airliner.
Kingfisher also has asked its lessors to release USD 200 million of safety deposits to help it repay its debt. The airline will provide bank lines of credit in place of the cash. This stock is up for some action today.
Meanwhile, Jet Airways has signed a MoU with Vietnam Airlines for a strategic co-operation.
The largest asset reconstruction company Arcil has received a big blow Fitch when it downgraded it to negative after RBI highlighted some corporate governance issues in Arcil which had led to the restatement of FY11 accounts.
The management of SKIL Group has confirmed that IT officials paid a visit to the company.
Strides Arcolab is doing an inter-se transfer. Agnus Capital is to buy 7.43 and Pronomz Ventures to pick up 14.99% stake in Strides Arcolab at Rs 105 per share. Current market price is Rs 350 per share. Though the transfer will be done off-market, watch out for the stock movement.
ONGC Videsh has signed a pact for 25% stake in Kazakh’s Satpayev oil block.
Meanwhile, the steel ministry has announced that they are in favour of POSCO taking SAIL as partner for the Odisha plant. The SAIL-POSCO JV plant would cost around Rs 16,000 crore.
REC plans to raise at least Rs 5 billion selling five-year bonds next week. The company has also extended its bond sale by two days to Oct 14.
Media reports say that Ashoka Buildcon is planning to dilute stake in arm and raise around Rs 737 crore for its upcoming projects.
READ MORE ON Market cues, Nifty, Slovakia, europe bail out, Emerging market, Greece, gold rate, gold price, crude, Maruti, F1 team, Sahara Team India, Arcil
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