Wednesday, June 06, 2012
The oil ministry has received a communication from the Petroleum and Natural Gas Regulatory Board saying the licence for one pipeline being planned by GAIL and four by Reliance Gas Transportation Infrastructure should be revoked as work has not progressed on the projects for a long time. (ET) The heads of the top three telecom operators — Bharti Airtel, Vodafone India and Idea Cellular — sought Finance Minister’s "urgent and personal" intervention to stop the re-farming of spectrum proposed by the telecom regulator, saying it would have serious impact on the industry. (BS) Essar Oil announced completion of its Rs100bn expansion project at the Vadinar refinery in Gujarat, taking the annual capacity to 20mn tons, four months ahead of schedule. (BL) Maruti Suzuki has cut production of models such as the Alto, WagonR, Eeco and A-Star over the last few days by about 8% of its monthly capacity. (BL) Elder Pharmaceuticals has launched ‘Zalain’, a medicine used to treat fungal skin infections, in India in association with Spain-based drug firm Ferrer. (ET)
A rather choppy trading session ended with modest gains for the Indian equity indices, extending the upswing from the previous session. The NSE Nifty opened higher and climbed up further to hit an intra-day high of 4,898 in the fist half. From there on, it saw a gradual decline in the second half amid selling pressure in Realty, FMCG, Consumer Durables and Metals sectors. The frontline indices erased most of their day's gains in a sudden turnaround in the fortunes of Indian shares, as the European markets came off day's highs following the release of downbeat service PMI reports. However, the Indian markets managed to end off day's lows after the announcement that monsoon has fully covered the southern state of Kerala. Another booster was data showing improvement in India's services PMI and the Government announcing a seven-point strategy to improve exports.
It is not easy to find happiness in ourselves, and it is not possible to find it elsewhere. - Agnes Repplier. While the slight drizzle may bring some relief from searing heat and raise hopes of a good monsoon, the gray clouds are depriving many of a rare celestial spectacle – a once-in-a-lifetime experience of Venus crossing the Sun's face. Then there is also going to be a unnoticeable change in the way we access the World Wide Web with IP addresses now depleted. And all this happens amid persistent worries over the eurozone debt crisis and global downturn. We have seen some revival in risk appetite in the last couple of days. However, the same may not be sustainable in the face of a spate of macro-economic headwinds - domestic as well as overseas. The opening is likely to be positive, thanks to encouraging global cues. The main worry is that FII flows have not turned around. In fact, reports suggest some of them have switched to offshore alternatives to trade in Indian equities due to GAAR. All eyes are on monsoon. Another normal rainy season is crucial for India, which is battling a global slowdown and policy inaction. Telecom stocks will be in focus post the EGoM meet on 2G auction. The ECB will hold its policy meeting today while Ben Bernanke will testify before the Congress on Thursday.
The Indian markets may open the trade on a positive note tracking gains in the Asian region and account of SGX Nifty trading 32 points higher. Events for the day: Ex-date for stock split of Agarwal Holdings. Ex-date for 2nd interim dividend of India Motor Parts & Accessories. Headlines for the day: TV18, Viacom18 to form JV for channel distribution. Lupin receives USFDA approval for antibiotic capsules. AI plans to hire pilots to run long-haul international ops. 8 blocks of 2G spectrum to be auctioned.