Benchmark indices across Asia fell sharply on Monday as investors expressed concerns over weak US jobs data and slow Chinese manufacturing. The MSCI Asia Pacific index, excluding Japan, fell 1.5 per cent in early trade. The Japanese Topix index fell to the lowest level seen in 29 years. A dark cloud will hang over US Federal Reserve Chairman Ben Bernanke when he testifies before US lawmakers on Thursday.
Oil falls below $ 100 per barrel
Asian oil prices fell for the fifth straight day on Monday as oil futures fell 1 per cent on after falling 8.4 per cent last week. Crude hovered around $ 82 per barrel in Asian trade while Brent Crude prices fell below $ 100 per barrel for the first time since October 2012. Traders expect a weak oil demand on the back of disappointing US jobs data and low manufacturing activity in Europe.
FIIs net sellers for second straight month
Overseas investors, for the second straight month, in May pulled out funds of Rs 347 crore from the equity markets amid concerns over domestic economic growth and depreciating rupee. FIIs had pulled out Rs 1,109 crore from the stock market in April amid S&P lowering India's credit outlook to negative from stable. Market experts attributed the outflow to a slew of reasons such as depreciating rupee, high fiscal and current account deficit as well as lack of reform momentum.
Future Capital Stake sale to Warburg Pincus today
Private equity firm Warburg Pincus is expected to announce taking up a majority stake in Future Capital Holding, the financial services company of Kishore Biyani’s Future Group. The majority stake could be sold at a price of Rs 162 per share, according to market sources. Warburg could get 38 per cent for Rs 400 crore. Shares closed at Rs 138 per share last Friday.
Hero Motocorp board to meet on June 4
Hero Motocorp board will meet on 4 June 2012 to discuss amalgamation with Hero Investment, the investment vehicle of the Munjal family-led promoter group. Hero Investment holds a 43.7 per cent stake in Hero Motocorp. Two private equity players would get a 12.7 per cent stake in the merged entity and the non-promoter holding in the company would go up to 60 per cent when shareholders approve the amalgamation. In 2011, private equity investors invested Rs 3,650 crore for a 29 per cent stake in Hero Investment in 2011 to help Munjals buy out the Japanese partner Honda Motors.
Maruti Suzuki signs deal with Gujarat government
Maruti Suzuki has signed a State Support Agreement (SSA) with the Government of Gujarat for purchase of land near Mehsana to set up an all new manufacturing facility. The facility will have an initial annual capacity of 250,000 units in a phased manner and the future expansion will be based on market conditions. The expected commissioning date is by 2015-16 with Rs 4,000 Crore of investment in phase one. The Government of Gujarat has allocated around 700 acres land to Maruti for this facility.
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