Apex Court Gives Verdict in Reliance Gas Dispute

Mayank Mehta, Chandrasekhar Atreya and Darlington Musarurwa
07 May, 2010
New York City

Stocks in Mumbai traded lower. Sun Pharmaceutical gets U.S. ok for generic Namenda tablets. Reliance Gas dispute verdict given by Supreme Court. Ramco Systems inks deal with Dubai-Based Tradeline Group.

[R]6:00 PM Mumbai, 8:30 AM New York – Stocks in Mumbai traded lower. Sun Pharmaceutical gets U.S. ok for generic Namenda tablets. Reliance Gas dispute verdict given by Supreme Court. Ramco Systems inks deal with Dubai-Based Tradeline Group.[/R]

The benchmark index Sensex posted fresh losses as the global rout spread on concern of European debt crisis. The drop below 17000 mark comes despite a good corporate earning season and within a month of touching the 18000 mark.

The rupee slides to six weeks low as European debt crisis spurred an exodus from riskier assets and bolstered the demand for US dollar.

The Supreme Court ruled in favor of Mukesh Ambani’s Reliance Industries Ltd stating that the company can sell gas to Anil Ambani’s Reliance Natural Resources Ltd at government set prices that are higher than those in a 2005 family accord. A three-judge bench gave the verdict today in New Delhi.

India should tax foreign capital inflows into the equity market which stay invested for less than two years in order to protect the financial system of the country and sustain its economic growth, said the former Reserve Bank Governor Bimal Jalan in a telephonic interview today.

EIH Ltd, which runs the Oberoi group of hotels has acquired 45.38% stake in Amex Investment of Hong Kong in the group’s international hotel joint venture in the British Virgin Islands. As a result the international assets of the group will be owned entirely by EIH Ltd through its subsidiary.

The name of Tata Tea Ltd is to be changed to Tata Global Beverages Ltd. The board of directors of TTL has approved the name change. Shareholders nod would be sought by way of postal ballot in accordance with the relevant provisions of the Companies Act.

The Sensex index in India posted fresh losses and decreased 218.42 or 1.29% to 16,769.11 and CNX Nifty index fell 57.10 or 1.09% to 5,035.40. Among the Sensex 30 stocks, 4 rose and 26 fell.

On BSE trading, 468 stocks advanced, 2,321 declined and 54 were unchanged. Realty, pharma, capital goods and telecom stocks fell. Capital goods stocks rose on defensive buying.

Telecom stocks extended recent fall on concerns high costs for acquisition of third-generation mobile spectrum licenses would impact earnings.

Rupee edged lower 32 paisa to Rs 45.62 against one dollar.

Gainers & Losers

Ashok Leyland Limited slipped 3.0% to Rs 63.35 on profit taking after the stock surged more than 18% in the preceding five trading sessions.

Bank of India decreased 5.1% to Rs 349.10 after the bank said fourth quarter net interest income rose 8% to Rs 1,551.7 crore from Rs 1,433.4 crore a year ago. Net profit for the quarter fell 47% to Rs 427.9 crore compared to net profit of Rs 810.4 crore a year ago.

Halonix Limited fell 6.3% to Rs 81.75 after the company reported fourth quarter net loss of Rs 17.76 crore.

Hindustan Copper Limited dropped 5.8% to Rs 477.00 on profit booking after the stock jumped 7.69% to Rs 506.35 on Thursday, May 6.

Mid-day Multimedia Limited plunged 10.1% to Rs 30.90 in a weak market after the stock rose 21% in the preceding two trading sessions.

Pratibha Industries Limited fell 0.6% to Rs 372.15 after the company''s board at its meeting held today May 7, recommended a 5-for-1 stock split.

Rashtriya Chemicals & Fertilisers Limited declined 4.9% to Rs 77.60 after the chemical company said fourth quarter sales fell 26.7% to Rs 140 crore from Rs 191 crore a year ago. Net profit for the quarter rose 76% to Rs 69.4 crore compared to net profit of Rs 39.4 crore a year ago.

Reliance Natural Resources Limited plunged 21.3% to Rs 53.80 after the supreme court ruled in favor of Reliance Industries on a gas dispute between billionaire Mukesh Ambani and his estranged younger brother Anil.

Reliance Industries Limited rose 2.7% to Rs 1,038.95.

Ramco Systems Limited fell 3.7% to Rs 117.00 after the company said that they have inked a deal with Dubai-based Tradeline LLC, a trading and manufacturing group to offer IT solutions on HCM and Payroll Management.

Riddhi Siddhi Gluco Biols Limited gained 6.7% to Rs 268.75 after the company reported fourth quarter net profit spurt of 245.9% to Rs 12.14 crore .

Sun Pharmaceutical Industries decreased 1.4% to Rs 1,544.00 after the company said its unit has received approval from the U.S. Food and Drug Administration to sell 5-milligram and 10-mg tablets of memantine, indicated for the treatment of moderate to severe Alzheimer''s disease.