Rupee arrests fall but stock markets may see worse

Confused and intimidated by the amount of news hurtling at you everyday? Well, to make your life easier, here’s a quick round-up of the major local and international business and economic news events.

•Though the rupee has arrested the continual slide against the dollar, it is still weak at Rs 51.41 against the dollar today. So now the Indian authorities will discuss various proposals to support the weakening rupee, including imposing curbs on overseas investments by local companies and restricting pre-payments on foreign loans. SO will capital control arrest the slide of the rupee? Find out .

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•The government’s divestment plan to earn Rs 40,000 crore to manage its widening fiscal deficit has gone for a toss again. It is the power ministry this time that has refused to buy back govt shares as it feels the companies would need the money for investment purposes. Find out why we think that’s good.

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•For India Inc, the government’s ‘pause’ over introducing foreign direct investment in multi-brand retail in the face of stiff political opposition is extremely frustrating. Indeed, as several Firstpost articles have noted recently, the opposition to foreign retail giants has been driven primarily by political considerations rather than economic. See who gains if FDI does not go through.

•With just three-and-a-half weeks before the new year begins, it’s time to decide on new portfolio allocations. While you might get a lot of recommendations on what to invest in 2012, here's a list of stocks you can avoid, according to UBS Investment Research.

•Things could actually get worse in the Indian equity markets before they get better. That’s the grim warning issued by Bank of America Merrill Lynch (BoAML), which said the Sensex could hit a low of 14,500 in the next six months on the back of high interest rates, a slowdown in the global economy and slow pace of investments before rising again. Read why you could best avoid the year end rally.

•Indian markets and most of the mainline shares are trading near their year -low levels today. However, certain sector and companies continue to do well. Apollo Hospital stands out as the main gainer. The stock touched an all time high of Rs 718 on Monday. Here is why .

•Retail stocks opened down by as much as 10 percent 10 percent on Monday after reports said the government had paused plans to open up the country’s $450 billion retail sector to foreign supermarkets. Shares in Pantaloon fell 10 percent, while shares in Shopper’s Stop dropped 9 percent, Trent, the retail arm of the Tata Group conglomerate, slid as much as 4 percent. Here is the story .

•It is that phase of the bear market when sackings and pay cuts at retail stock broking firms start making headlines. And there have been plenty of them in the last few weeks. Already, many of the leading brokerages have started closing down unprofitable branches, firing employees and slashing salaries. The question now is: how much worse can it get? Find out .

•Telecom major Bharti Airtel has paid a first-ever interim dividend of Rs 11.75 crore to its minority partner in Bharti Hexacom, state-owned TCIL, at the rate of 15 per cent for FY'12, a senior official today said. Here is the story .

•German luxury car manufacturer Audi today reported a 66 percent jump on its sales in November. The company sold 425 cars in November 2011 compared to 256 cars in the same month last year. Here is more on this .