India will be able to sustain its economic growth and the nation’s financial markets can weather “negative sentiments” spreading across the world, Finance Minister Pranab Mukherjee said.
WHAT TO WATCH: * India’s “growth story is intact,” Mukherjee told businessmen after Standard & Poor’s last week cut the U.S.’s AAA rating. * India may not need to raise interest rates if U.S. economic growth slows and helps lower global commodity prices, easing inflation pressures, said R. Gopalan, secretary of economic affairs at finance ministry. * Billionaire Warren Buffett said Standard & Poor’s erred when it lowered the U.S. credit rating and reiterated his view that the economy will avoid its second recession in three years. * Rural Electrification Corp. and Bhushan Steel Ltd. plan to tap overseas investors for the second time this year as rupee funding costs soar and India raises the cap on foreign-currency debt to a record to shore up growth. * Indian refiners paid 1 billion euros to partially clear debt on crude oil purchases from Iran, which will now resume shipments to the South Asian nation, two people with knowledge of the matter said. The money was routed through Istanbul-based Turkiye Halk Bankasi AS, said the people. * A Japanese Finance Ministry official said the government may sell yen again after last week’s move if it sees speculative trades that drive the currency higher. * Members of Group of Seven nations agreed to inject liquidity into financial markets as needed, Japanese Finance Minister Yoshihiko Noda told reporters in Tokyo after the countries discussed the global economy. * European Central Bank President Jean-Claude Trichet signaled he’s ready to start buying Italian and Spanish bonds in his riskiest attempt yet to tame the sovereign debt crisis. * Asian states are likely to retain their U.S. Treasury holdings for now and European governments have expressed confidence in the world’s largest economy after Standard & Poor’s cut the U.S.’s sovereign credit rating to AA+. * Oil & Natural Gas Corp. is in talks with BG Group Plc, Eni SpA and Royal Dutch Shell Plc to sell stakes in its deepwater assets off India’s eastern coast, FT says, citing Chairman A.K. Hazarika. EARNINGS: * Larsen & Toubro Est. 7.40 billion rupees * Mahindra & Mahindra Est. 6.09 billion rupees * Tata Chemicals Est. 1.92 billion rupees * PTC India Est. 372 million rupees * EIH, Jindal Poly Films, Tata Coffee, Deepak Fertilizers and Petrochemicals Corp., Finolex Cables, Bajaj Corp, Sun Pharma Advanced Research Co., Astrazeneca Pharma India, Andhra Pradesh Paper Mills, Golden Tobacco. EARNINGS CALLS: * GVK Power & Infrastructure Ltd. * The Great Eastern Shipping Co. * Mahindra & Mahindra Ltd. MARKETS: * The Dow Jones Industrial Average rose 0.5 percent. * The MSCI Asia Pacific Index declined 3.7 percent to 126.11. * India’s benchmark stock index fell 2.2 percent to 17,305.87. EQUITY MOVERS: * Larsen & Toubro (LT IN) said it has received orders valued at $889 million in the hydrocarbon sector. The orders have been placed by Abu Dhabi Gas Industries Ltd., Abu Dhabi National Oil Co.’s ADMA-OPCO unit, and PTTEP International Ltd. * State Bank of India (SBIN IN): India’s government may have to inject between 90 billion rupees and 140 billion rupees in State Bank, Chairman Pratip Chaudhuri told reporters. * Sesa Goa Ltd. (SESA IN): Will acquire 51 percent of Liberia’s Western Cluster Ltd. for $90 million to develop an iron ore project. * Coal India Ltd. (COAL IN): Workers of the company called off a three-day strike beginning Aug. 8 after it agreed to form a panel to consider wage increases, Director R. Mohan Das said in a phone interview on Aug. 5. * GMR Infrastructure Ltd. (GMRI IN): The builder of roads, airports and power plants is in talks to get partial guarantee from the Asian Development Bank to make its planned $268 million bond sale attractive to foreign investors, Chief Financial Officer Amarthaluru Subba Rao said in a phone interview on Aug. 5. * IFCI Ltd. (IFCI IN): The Indian government has no plans to convert its investments in the company’s bonds into equity, junior finance minister Namo Narain Meena said in a written reply to a question in parliament in New Delhi on Aug. 5. * NMDC Ltd. (NMDC IN): NMDC Ltd., the nation’s largest iron ore producer, aims to increase output in the southern state of Karnataka to 12 million metric tons, Finance Director S. Thiagarajan said after a Supreme Court ruling allowing the company to mine up to 1 million ton of ore a month. SHAREHOLDER MEETINGS: * Divi’s Laboratories Ltd. ANALYST RATINGS: * Cummins India (KKC IN) was downgraded to “accumulate” from “buy” at Prabhudas Lilladher by equity analyst Kunal Sheth. * Usha Martin (USM IN) was downgraded to “reduce” from “buy” at Dolat Capital Market by equity analyst Ram Modi. CONFERENCES/EVENTS: * 8:30 a.m. Mumbai. Function to include Coal India in the Sensex. * 9:00 a.m. New Delhi. Conference on Women Empowerment Best Practices. Baleka Mbete, former Deputy President of South Africa will address the function. * 12 p.m. Mumbai. Shriram City Union Finance to hold a press conference on forthcoming NCD issue. * 2 p.m. Mumbai. Media briefing on financial results of Larsen & Toubro Ltd. * 2 p.m. Mumbai. Media briefing by Maharashtra State Bank Employees Federation and All India Bank Officer’s Association on proposed strike on Aug. 24. 6 p.m. New Delhi. Lecture by Thomas R. Frieden, Director, U.S. Centers for Disease Control and Prevention (CDC) on “Public Health is Integral to Economic Growth and Social Progress.”