SECTORS ALERT (31.07.2012)
rupeedesk
SECTORS ALERT (31.07.2012)
* AUTOMOBILE: Volkswagen Group-owned Swedish truck maker Scania will invest 2.5 bln rupees in an assembly and bus body building plant in Bengaluru.
* AVIATION: Domestic private airlines are set to increase flights to the Gulf and Southeast Asia, cashing in on the civil aviation ministry's move to do away with Air India 's right of first refusal on overseas flights. Twenty one senior officials from the Directorate General of Civil Aviation have been held by the Central Vigilance Commission for allegedly abusing their position to favour some airlines.
* ECONOMY: RBI has said that on the domestic front, macroeconomic and structural factors impeding growth still remain to be addressed. India's food articles inflation, which has been in double digits for the last four months, could rise further on the back of poor rains and a sharp rise in minimum support prices, according to RBI. RBI said there are "grave concerns" over sustainability of current account deficit, and increasing reliance on debt capital flows to fund current account deficit was making the external sector vulnerable.
* FARM: Overall monsoon rainfall improves with the country receiving 10.4 mm rains on Jul 30, 14% above normal. The cumulative rainfall so far in the season narrowed to 20% below normal at 354.3 mm. First meeting of the empowered Group of Ministers on drought likely today.
* INFORMATION TECHNOLOGY: RBI believes that Indian companies in the sector may miss NASSCOM's 11-14% revenue growth target for 2012-13 (Apr-Mar). Private equity firm Bain Capital Partners is in talks to buy 40% in Genpact, held by PE funds General Atlantic and Oak Hill Capital, for over $1 bln.
* POWER: The finance ministry has agreed to recast loans worth 700 bln rupees to bail out ailing electricity distribution companies and the proposal will soon be taken up for Cabinet approval.
* RETAIL: Government has allowed Indian single-brand retailers to access foreign funds as long as they hold controlling stake in any pact. Online retailer Snapdeal is close to sealing a deal with private equity firm General Atlantic Partners to raise $80 mln-$100 mln.
* STOCK EXCHANGES: From Sep 28, BSE will exclude 52 stocks, including OIL INDIA and ESSAR OIL, from trading in the lending and borrowing segment.
* TAXATION: The prime minister has asked the expert panel on General Anti- avoidance Rules to also study the implication of the law on portfolio investments.
* TOBACCO: The Bombay High Court has refused to grant an interim stay on the ban on chewing tobacco sale in Maharashtra .
* TELECOM: NCDEX Spot Exchange, Times Internet, and Karnataka State Electronics Development Corp are eligible bidders to be chosen by the telecom department as an auctioneer for conducting the auction of spectrum.
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