Friday’s action: Dow +0.39% to 13649. S&P +0.34% to 1486. Gold +0.39% to $1691. London+0.36% . Germany –0.43%. France -0.07%.
With India’s key equity indices trading near all-time highs after a prolonged lull, private equity (PE) funds are feeling the heat from investors to cash out from their investments in public equity even as several mid and small cap shares, which constitute a majority of PE investments, continue to lag behind. (MINT)
SEBI has provided an option to institutional investors to bid for shares without paying any margin, but such bidders cannot cancel or revise the bids to a lower price, but can raise them, a move that will benefit the government’s divestment program and companies to meet minimum public holding rules. (ET)
VIX, retreated 8.2 percent to 12.46 today and has tumbled 45 percent since Dec. 28 whereas the markets have moved up 6% during the same period. And is at its lowest level since April 2007. The index measures the cost of using options as insurance against losses in the S&P 500, which has risen 6 percent in three weeks. The story is similar for Indian VIX as well. (Bloomberg)
Reliance Industries [stockquote]RELIANCE[/stockquote] has bought back shares worth over Rs 3,900 crore from public shareholders through an about year-long share repurchase programme, achieving just about 38 per cent of the target. Market analysts believe the purpose of the buyback was price stability and ensuring investor confidence in the stock, which the company has successfully achieved. (ET)
On January 10th the interest rate on Spanish ten-year government bonds fell below 5% for the first time in almost a year. The cost of new government borrowing is now about 2.5 percentage points lower than it was when worries over a break-up of the euro area peaked in July 2012 . The rate on ten-year Italian debt is approaching 4%, which is also close to 2.5 percentage points off the highs last year. (Economist)