India 3G Sprectrum Sale; FDI Flows $18 B

Mayank Mehta
04 Dec, 2009
New York City

India may sell 3G wireless spectrum license on January 14 and raise as much as $5 billion. Coal imports from Australia and Indonesia is expected to increase as India builds more power plants. Portfolio foreign investments in the seven months to October exceeded $18 billion.

[R]6:00 PM Mumbai, 8:30 AM New York – India is likely to stick to its plan to sell 3G wireless spectrum license on January 14 that may raise as much as $5 billion. Coal imports from Australia and Indonesia is expected to increase as India builds more power plants in the next three years. Portfolio foreign investment in the seven months to October exceeded to $18 billion.[/R]

The Sensex index in India decreased 84.14 or 0.4% to 17,101.54 and CNX Nifty index fell 22.80 or 0.4% to 5,108.90. Among the Sensex 30 stocks, 11 rose and 19 fell.

On BSE trading, 1,364 stocks advanced, 1,441 declined and 60 were unchanged.

The slowdown in the Indian economy is showing signs of moderation, Prime Minister Manmohan Singh said on Friday. Finance Minister Pranab Mukherjee said on Friday, the Indian economy is expected to show strong growth in second half of the current fiscal year ending in March 2010.

Foreign institutional investment in India between April and October exceeded $18 billion, Trade Minister Anand Sharma said on Friday.

Rupee edged lower 13 paisa to 46.24 against one dollar.

Gainers & Losers

Atul Ltd the chemical company fell 0.1% to Rs 82.10.

Bhagyanagar India Limited increased 3.2% to Rs 26.65 after the various copper products, real estate and infrastructure developer said the company bought back and cancelled ten foreign currency convertible bonds aggregating $1 million at a discount.

Bharti Airtel Ltd increased 1.1% to Rs 310 and Prime Minister Singh said at a telecom conference in New Delhi that the government will begin the 3G wireless spectrum auction “shortly.”

The government had earlier announced its plan to start the auction of 3G licenses on Jan 14 and it expects to earn as much as 25,000 crore rupees. Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd are exempted from the license fees and are already providing 3G services in select areas in the country.

Bihar Tubes Limited, the exporter of steel pipes and tubes gained 1.7% to Rs 67.45.

Bilpower Limited surged 12.5% to Rs 190.20 after the electrical steel products maker announced that its subsidiary Tarapur Transformers Ltd plans to sell 85,00,000 equity shares in initial public offering.

Deccan Gold Mines Limited rose 4.9% to Rs 37.45 after the company appointed consultants to evaluate mineral prospects at its Ganajur Main Gold Prospect, State of Karnataka, India.

Godrej Consumer Products Limited added 0.3% to Rs 281.55 and the company said its board will meet on December 15 and may decide to raise additional capital for its expansion.

Infosys Technologies Limited advanced 0.1% to Rs 2,381.00.

InfoTech Enterprises Limited fell 0.8% to Rs 294.00 after the global technology services said that it has entered an agreement with IDT Inc., to acquire the operational assets of the Hyderabad office of IDT Inc.

Jet Airways (India) Limited dropped 4.8% to Rs 569.00.

Jubilant Organosys Limited slipped 4.5% to Rs 332.00 after a rally of more than 15% in the last three sessions.

New Delhi Television Limited rose 7.5% to Rs 150.50.

Reliance Infrastructure Limited rose 0.7% to Rs 1,065.35 said on Friday it has won a road project worth Rs 1,725 crore ($375 million) in the western state of Maharashtra.

Rolta India Limited added 0.2% to Rs 183.10.

Signet Overseas Limited climbed 4.9% to Rs 44.25 after the conglomerate active in polymer and wind power generation set December 14 to split its stocks 2-to-1.

Unichem Laboratories Limited increased 6.4% to Rs 283.10 after the company''s wholly owned unit Niche Generics received marketing authorization for Anastrozloe tablets within the European Union.

Whirlpool of India Limited surged 10% to Rs 143.75 after the marketer of home appliances said consumer electronics companies are witnessing strong growth in sales.

Asian Markets Review

The Nikkei 225 Index in Tokyo closed higher 44.92 or 0.45% to 10,022.59, and Hang Seng index in Hong Kong decreased 55.72 or 0.25% to 22,498.15, and CSI 300 index in China higher 52.62 or 1.47% to 3,643.49. ASX 200 index in Australia decreased 72.40 or 1.52% to 4,702.20 The FTSE Bursa KL Composite index in Malaysia was lower 2.15 or 0.17% to 1,270.20.

The Kospi Index in South Korea increased 9.76 or 0.60% to close at 1,624.76. SET index in Thailand closed lower 5.26 or 0.74% to 701.58. JSE Index in Indonesia increased 11.51 or 0.46% to 2,511.54. The Sensex index in India decreased 84.14 or 0.49% to 17,101.54.