Markets may open negative in line with weak global cues

Overnight the US stocks fell hard, giving a negative opening to their week as Moody’s Investors Service and Fitch Ratings said that last week’s Euro zone summit did little to ease pressure on the region’s struggling governments. A cut down in forecasts by Intel Corporation also led to a sell-off among the technology stocks which intensified towards the broader markets through the latter part of the day. The Asia markets have also tumbled in the early market trades, with auto makers and technology firms on the weaker side.

The Indian companies’ ADRs traded in the American markets have closed on a negative note, indicating a weak day ahead for them in the Indian markets. In the IT space, Wipro was down by 0.67%, Patni was down by 2.67% and Infosys was down by over 1.7%. In the telecom space, MTNL was down by a massive 9.6% and Tata Communications was down by 3.05%. In the banking space, HDFC Bank was down by 5.24% and ICICI Bank was down by 7.2%. In the other space, Tata Motors was down by 7%, Sterlite was down by 5.76% and Dr Reddy’s Laboratories was down by 1.03%

According to media reports, RIL’s eastern offshore KG-D6 gas fields has seen output dipping to around 40 million standard cubic metres per day in the last week on November, which is the same level as 2009 when the company had started production. The output from KG-D6 is short of the 70.39 mmscmd (61.88 mmcmd from D1&D3 and 8.5 mmcmd from MA field) level envisaged by now as per the field development plan approved in 2006. Reports also state that of the 18 wells drilled, completed and put on production on D1 and D3, four wells viz. A2, B1, B2 and B13 had to be shut or closed due to high water cut/sanding issues.

After selling around 26% stake to Japan’s Nippon Life in its life insurance business for Rs 3,570 cr, Anil Ambani-led Reliance Capital is said to be in talks with potential partners to sell up to 26% in its general insurance business though a deal may be at least six months away. Media reports have named Travelers Companies and Samsung Fire and Marine as potential buyers of the stake but the company has declined to identify the parties with which the company was negotiating.

After having ten of its accounts frozen by the Central Board of Excise and Customs (CBEC) for allegedly defaulting on service tax it has collected from passengers, debt-ridden Kingfisher Airlines’ promoter Vijay Mallya is believed to have called upon the CBEC and sought de-freezing of the carrier’s bank accounts.

In the latest development on the 2G scam front, its has emerged that the CBI has filed charge-sheets against five officials of the Essar Group and Loop Telecom for fraud and conspiracy as part of a wide-ranging court-monitored investigation into India’s telecom sector. The CBI filed charges in a Delhi court against industrialists Ravi Ruia and Anshuman Ruia, the promoters of Essar Group, its director for strategy and planning, Vikas Saraf, and Loop promoters I P Khaitan and Kiran Khaitan. The accused also include three companies - Loop Telecom Pvt Ltd, Loop Mobile India Ltd and Essar Tele Holding.

Sri Lanka’s Regional Development Bank has selected financial technology firm Polaris Software Labs’ ‘Intellect’ core banking solutions (CBS) system for roll-out across its branch and service centre network. The 100% Sri Lankan government-owned bank selected the system offered by Polaris to overcome challenges— including manual operation— as well as meet critical requirements and cater to its 35 lakh customers, Polaris Software Lab said in a filing to the BSE.

Realty major Unitech today said it has put on hold its plans to demerge the infrastructure vertical indefinitely on account of sluggishness in the economy. In a filing with the BSE, the company said in a meeting of the Restructuring Committee held today that it was decided to hold the demerger of infrastructure undertaking of Unitech into a wholly-owned subsidiary - Unitech Infra. The company also decided to withdraw the amalgamation of two wholly-owned subsidiaries - Aditya Properties and Unitech Holdings - with itself, it added.

Financial services group IDFC has sold 25% stake in its mutual fund business to French major Natixis Global Asset Management (NGAM) for an undisclosed amount. Accordingly, the company said that 25% of the total issued and paid-up equity share capital of each of IDFC Asset Management Company and IDFC AMC Trustee Company, plus one share of each of these companies, have been transferred to NGAM. The new partnership would help IDFC AMC reach international investors interested in parking funds in the Indian equity markets. Besides, NGAM’s presence in Asia, including Japan, Singapore, Taiwan, and China would also receive a boost though this agreement.

The telecom ministry said that it will take action against service providers that have entered into roaming agreements for 3G services as the pacts violate license terms and conditions. The issue pertains to the pact between major service providers, including Bharti Airtel, Vodafone Essar and Idea Cellular for providing a 3G roaming network on a pan-India basis.