In an important global economic event, the World Bank has cut the global growth outlook from 3.2% to 2.8% for this year on account of Ukraine crisis.
The major Asian stock markets have opened on a mixed note with stock markets in Hong Kong (down 0.4%) and Singapore (down 0.2%) leading the losses. However, stock markets in Japan (up 0.3%) and Korea (up 0.1%) have opened in the green.
Cement stocks have opened the day on a mixed note with Shree Cement Ltd and Heidelberg Cement (India) Ltd leading the gains. However, Ultratech Cement and Mangalam Cement were facing selling pressure. As per a leading financial daily, Ultratech Cement Ltd is in talks to buy cement assets from Jaiprakash Associates. The two companies are in discussions for projects including Jaiprakash's Rewa cement-making complex in Central India. Rewa's annual production capacity stands at around 7 million tonnes per annum (MTPA). Last year, Ultratech Cement had inked pact to buy a Jaiprakash Cement unit based in Gujarat state. Currently, it is looking to purchase more cement plants, both domestically and abroad. Meanwhile, Jaiprakash Associates also intends to sell its cement assets in Himachal Pradesh. Jaiprakash Associates owns two factories in the Northern Indian state with a combined production capacity of 3.5 MTPA.
Hotel stocks have opened the day on a firm note with Eastern International Hotels Ltd and Hotel Leela Venture Ltd leading the gains. The market regulator Securities and Exchange Board of India (SEBI) has given approval to Tata Group firm Indian Hotels company's proposal to raise up to Rs 10 bn from rights issue. The company had filed draft documents with the SEBI in April 2014. In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. The company plans to use the proceeds of the issue for partial funding of capital expenditure for construction of Vivanta by Taj, Guwahati. The funds will also be used for renovation at some of the company's existing hotels and to repay or pre-pay certain borrowings of the company.