SECTORS ALERT (13.07.2012)
rupeedesk
SECTORS ALERT (13.07.2012)
* AUTO: PSA Peugeot Citreon will close the first auto factory in France and eliminate 14,000 jobs in an effort to stem widening operation losses. Hyundai Motors India has put plans for a diesel engine plant in India on hold.
* AVIATION: New Director General of Civil Aviation Prashant Sukul has said the government is not considering closure of any airline. Private airlines operating from Kolkata airport may have to pay 35-40% more for using the new terminal building once it is operational in October.
* BANKING: RBI has said banks dealing in foreign exchange will from now on need not submit data on non-resident deposits accounts in physical form.
* CORPORATE: CRISIL Ratings sees default rate among companies assigned with bank loan ratings rising over next six months on deteriorating economic conditions.
* ECONOMY: Government plans to raise prices of diesel, cooking gas, and kerosene after the presidential polls. Government has ruled out reintroduction of entry load by mutual funds as it is politically unacceptable, said Joint Secretary of Department of Economic Affairs.
* ELECTRONICS: Cabinet has approved a 100-bln-rupee package of incentives for makers of electronics products and components to boost electronics manufacturing.
* EXPORTS: Multinational companies and exporters are buying Indian wheat at prices lower than government's minimum support price to export it, taking advantage of price trend in overseas market.
* FINANCE: The finance ministry has ruled out inclusion of mutual funds in the Rajiv Gandhi Equity Savings Scheme introduced to encourage retail investment. Fitch Ratings has upgraded 16 publicly rated Indian structured finance tranches.
* FARM: India got above-normal rainfall for the first time during a week in the current season, with the week ended Wednesday receiving 101% of long-term average.
* FMCG: Future Group plans to set up a food park in Madhya Pradesh. Consumer goods companies will delay price increases to stem fall in volume sales in case of deficit monsoon that may hit crop yield.
* GOVERNMENT: Former chief economist of International Monetary Fund Raghuram Raja and Assistant Secretary General of United Nations Development Programme Ajay Chibber have been shortlisted for chief economist advisor's post to the government. Revised Forest Rights Act with 60 new changes will be presented before the parliament in the first week of monsoon session in August. In a bid to promote private industry, the government has said persons displaced by land acquisition would be paid 12% extra every year.
* HOSPITALITY: Lalit Suri Hospitality group plans to invest 22 bln rupees over the next five years to expand its luxury and mid-segment hotels.
* INFRASTRUCTURE: The cabinet committee on infrastructure has approved 6.48 bln rupees for national highway project in Uttar Pradesh.
* MINING: Panel of Goa government officials has recommended cap on iron ore extraction from the state at 20-25 mln tn, which is half of existing exports.
* PENSION FUNDS: The Pension Fund Regulatory and Development Authority has allowed pension funds managing non-government and private sector pensions to fix their own fees.
* PHARMACEUTICALS: Andhra Pradesh Pollution Control Board has issued closure orders to 12 bulk drug manufacturing units in the state, including some of
AUROBINDO PHARMA, DIVI'S LABORATORIES and SMS PHARMACEUTICALS.
* REGULATORY: RBI is mulling options to devise financial instruments to mobilise idle gold in the country to meet domestic demand and cut down on costly imports. SEBI may hike total expense ratio for mutual funds from present 2.25% and allow additional incentives for systematic investment plans.
* RETAIL: Reliance Brands has signed a 20-year license agreement with UK 's SuperGroup, owners of premium-to-luxury brand Superdry.
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