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Thursday, September 13, 2012

Daily News Roundup - Sep 13 2012

Jaiprakash Associates has paid US$523.5mn to bondholders to redeem foreign currency convertible bond that was raised in 2007. (ET) The district collector of Angul has ordered an investigation into allegations that Jindal Steel and Power is illegally drawing groundwater for its upcoming power plant in the district. (ET) Jaguar Land Rover, a Tata Motors company, has invested £370mn to upgrade its manufacturing facilities in the United Kingdom. The investment would help the company to increase productivity as it prepares to launch the fourth generation Range Rover across 170 countries. (BL) The flagship index of the MCX Stock Exchange will be known as "SX-40", Vice-Chairman said. The SX-40 will be a free-float-based index of large market-cap and liquid stocks representing most importing sectors. (BL)

Staying within limits

"The only limits are, as always, those of vision." - James Broughton. Call it lack of vision or mission. India needs urgent, decisive and convincing policy action to reverse the slide. Strong FII flows and global risk appetite have pushed Sensex beyond 18,000 and Nifty past 5,400. But, IIP data continues to be bleak. That investments had stagnated was known, but even consumption is starting to ease. The bad news is monetary and fiscal space available to policymakers is limited. Also, both camps seem to be waiting for the other to blink first. The ball is in the Government’s court. It has been unable to take any meaningful measure that could inspire confidence among investors, consumers and India Inc. The wait for reforms has been too long and might even extend further amid the ongoing political feud over ‘coal-gate’.

Flat to negative start likely

The Indian markets may begin today’s trade on a flat to negative note led by mixed global cues. SGX Nifty is trading 2.50 points lower. Events for the day: Ex date for dividend of MMTC, Ruby Mills. Ex date for final dividend of Sun TV Network, NMDC..

Market seen halting recent gains on subdued Asian stocks

The market is likely to take a breather after the recent strong gains. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 5 points at the opening bell. Asian stocks were mostly lower on Thursday ahead of the US Federal Reserve's decision about injecting more stimulus into the world's largest economy. Key benchmark indices gained for the sixth straight trading session on Wednesday as world stocks rose after Germany's highest constitutional court allowed the country to ratify the euro area's permanent bailout fund. Optimism the Indian government will unveil a series of fiscal policy decisions later this week and hopes of further stimulus measures from the world's top central banks underpinned sentiment. The BSE Sensex was up 147.08 points or 0.82% to 18,000.03, its highest closing level since 23 February 2012.