DAILY SECTORS ALERT: 18.10.2012

[rupeedesk]

* AVIATION: Civil Aviation minister Ajit Singh is considering toughening route dispersal guidelines so that domestic carriers compulsorily fly to more Tier-3 and Tier-4 cities.

* BANKING: The Reserve Bank of India has revised some norms on priority sector lending to include more beneficiaries. Banks and the RBI are not keen on extending big-ticket loans through consortiums. C.Rangarajan, chairman of the Economic Advisory Council to the Prime Minister, has said that the RBI should release the criteria for granting new bank licences.

* CONSUMER DURABLES: Haier Appliances to start producing air conditioners, washing machines in India .

* DISINVESTMENT: Department of Disinvestment shortlists ICICI Securities and Citibank as advisors for disinvestment exchange traded funds, which may launch first batch of ETF units in mid-January.

* INFORMATION TECHNOLOGY: INFOSYS' executive co-chairman Kris Gopalakrishna said IT industry should create new products and revenue streams to touch sales of $300 bln by 2020. Uttar Pradesh government approves IT policy 2012, aimed to boost the state's IT exports.

* INFRASTRUCTURE: Karnataka government submits plan for mega industrial zone near Bengaluru.

* OIL & GAS: India 's petrol and diesel exports to Pakistan may take some more time as pricing of petroleum products remains the bone of contention between the two countries. Finance Minister P. Chidambaram has said the government's burgeoning subsidy bill remains the biggest risk to the country's fiscal health.  West Bengal government to sell 40% stake in Haldia Petrochemicals through an auction.  Venezuela invites RELIANCE INDUSTRIES and OIL AND NATURAL GAS CORP to explore oil assets in the country.

* PHARMACEUTICAL: Under upcoming drug policy, once a firm decides to stop or reduce manufacturing of any essential drug on the National List of Essential Medicines, it must inform the government and give reasons for the call.

* POWER: From January, Delhi will have an islanding system to safeguard the city's essential services from power failures as the power ministry has accepted a proposal for four islands that can meet load of around 3,400 MW.

* PRIVATE EQUITY: Aditya Birla Private Equity buys minority stake in fine dining restaurant operator Olive Bar and Kitchen for an undisclosed sum.

* REAL ESTATE: Blackstone inks deal to buy 50% stake in a Bengaluru builder-owned portfolio of three business parks for over 10 bln rupees.

* REGULATORY: Securities and Exchange Board of India seeks clarity from the government on taxation of securitisation contracts, asking the Centre to take a final stand on the issue. SEBI chief Sinha asks companies not to sue rating agencies.

* RETAIL: Ebony Retail, a chain of department stores launched in 1994, shuts operations in India . Mahindra Group plans to rejig retail operations by changing product mix with more apparels, expanding aggressively through franchisee stores and setting up stores abroad. Reliance Retail sales in Apr-Sep grew 48% to 49.1 bln rupees on new store launches.

* SPECIAL ECONOMIC ZONE: Commerce ministry prepares draft SEZ policy, lowering minimum land requirement for the zones, easier contiguity norms, clarity in land sale and transfer, among others.

* STOCK MARKET: India remains a preferred investment destination among emerging economies, says JPMorgan Asset Management's managing director and head of global emerging markets, Richard Titherington.

* TELECOM: The government may take crucial decisions on one-time spectrum fee and bandwidth refarming today. Telecom companies face 1.15-trln-rupee hit on spectrum refarming. The Telecom Disputes Settlement and Appellate Tribunal ruled in favour of Qualcomm, reversing the Department of Telecom's order that reduced the company's broadband wireless access licence period to 18 years and six months from 20 years.

By RUPEE DESK

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