Realty & capital goods stocks drag Sensex down down 59.23 points

Indian stock markets continued to trade marginally in the red in the afternoon trading session on Thursday.

At 2.30 pm, the Nifty stood at 5,081.70, down 27.9, while the Sensex was trading at 16,786.82, down 59.23.

The Midcap stocks, which saw a fall in the morning session, continued to trade in the red with the BSE Midcap index down by 1.19 per cent.

Most sectoral indices were trading in the red with realty, capital goods and PSU stocks being the worst-hit. Healthcare and pharma stocks were the only sectors to be trading in the green on both the BSE and NSE.

Volatility was down with the India VIX falling by 4 per cent to 16.09.

Sun Pharma, Ambuja Cements, Bajaj Auto, Maruti and PowerGrid were the top five gainers on the NSE, while PNB, Bank of Baroda, SAIL,Tata Power and BPCL were the top laggards.

Thanks to www.thehindubusinessline.com

Downside appears limited if Nifty closes below 5150: Analysts

The 50-share Nifty index slipped to its 2-month low on Thursday, breaking key technical support levels of 5150 on weak global cues.

"Despite Nifty momentarily breaching the 5150 mark on an intra-day basis today, the outlook for Nifty remains positive. Even if Nifty closes below the 5150 mark, the downside appears limited to 2-3%," said Vinit Pagaria, VP - Investment Strategies, Microsec Capital Ltd

Nifty has been holding on to the crucial support band of 5150-5170 since the last few days. It tested a low of 5174.90 on Monday, 5184.65 on Tuesday and 5169.60 on Wednesday.

The 50-share Nifty index was down 0.9 percent at 12:40 hrs, breaking below the 200-day moving average for the first time since Feb. 1.

Some of the momentum oscillators like stochastics are in the oversold territory and indicate that a sharp upside is possible from here on in the short term.

"We continue to believe that traders should go long between 5000 and 5250 with upside targets of 5400, 5630 and finally 5900," added Vinit.

Microsec Capital advises traders to write Nifty April Put options of strike 5100 and strike 5200.

According to analysts, expiry of March derivatives contracts today and the end of the fiscal year at the end of the week is also adding to the volatility.

"Beginning today, it is a new settlement for the FIIs in the sense that whatever they buy now will go into the new financial year. In case FIIs do press the gas on the downside, the domestic market as well as the retail investors may not be able to absorb the selling pressure," said VK Sharma, Head of Business, Private Broking & Wealth Management, HDFC Securities.

"Chances are the markets would crash and we might see Nifty going down to levels below 5000," added VK Sharma.

National Stock Exchange data showed provisional net purchases of Rs 148 cr ($29.15 million) on Thursday, bringing total net sales for the week to about $39 million.

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YC Deveshwar re-appointed Chairman of ITC

The shares of ITC are trading at 192, up by Rs. 1 or 0.76% over the previous close.

Yogesh Chander Deveshwar has been reappointed as ITCchairman for another five years, according to reports.


A resolution to this effect will be placed beforeshareholders for approval at the company’s forthcoming annual general meeting,reports stated.

The shares of ITC are trading at 192, up by Rs. 1 or 0.76% over the previous close. It touched the day's high and low at Rs. 192 and 191, respectively.

Even though ITC does not have a retirement age, Deveshwar’sextension has been the subject of discussion since his five-year term was closeto ending, added reports.

Rupee nears 3-month low on local shares, euro weakness

The Indian rupee fell further in afternoon trades on Wednesday to hover near its three-month lows as concerns of dollar outflows heightened on the back of the continuing fall in local shares.

* The persistent weakness in the common European unit also weighed on the rupee, traders said.

* At 1:45 p.m., the partially convertible rupee was at 45.41/42 per dollar, weaker than the last close of 45.21/22.

* The rupee had last crossed the 45.43 level on Feb. 25, and if it breaches this level, it could drop to near 45.50 before any support is seen, traders said.

* The euro was at $1.4026 and the index of the dollar against six major currencies was at 76.227 points. * The euro fell on Wednesday, as investors including hedge funds cut bullish bets on mounting worries over Greece's finances, with many traders expecting the single currency to test key support levels on charts.

* Indian shares extended losses to more than 1 percent in afternoon trades on Wednesday as fresh worries about Europe's spreading debt crisis and weak Asian markets dampened investor sentiment.

* The actively traded one-year onshore forward premium was 247.75 points against 248.25 points last close.

Rupee down 20 paise against U.S. dollar in early trade

The Indian rupee depreciated by 20 paise to Rs 45.21 against the U.S. dollar in early trade on the Interbank Foreign Exchange on Monday, weighed down by dollar gains against the euro and other currencies overseas and a subdued trend in the equity market.

Forex dealers said the strengthening of the dollar against major currencies overseas and a lower opening in the domestic stock market mainly put pressure on the rupee.

The rupee ended 4 paise lower at Rs 45.01/02 against the American currency in the previous session on Friday on the back of demand from importers as the dollar gained in the global market.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell sharply by 219.10 points, or 1.19 per cent, to 18,106.99 in opening trade today.

Nifty down below 5450; Sesa Goa, IDFC, HDFC down

Indian markets were witnessing profit booking as sentiments turned bearish globally on concerns of global economic recovery. Banks, metals and auto stocks led the decline while FMCG space showed some resistance.

"Things have turned a little sour for world equity markets in May. Investors seem to have taken the old axiom of 'sell in May and go away' seriously; and they have been lucky so far. India has been no exception with the key indices on a mostly downward spiral. The slide is likely to persist at least at the start of the last week of the month.

The US and European stocks slid amid lingering worries over the precarious fiscal conditions of Greece and other peripheral eurozone nations. The dollar has advanced while the euro has hit a record low versus the Swiss franc. Asian stock markets are down 1-2% this morning. Crude oil is hovering around $100 a barrel mark.

Indian markets did recover some ground late last week, but the overall outlook remains murky. Things could get volatile in view of the F&O expiry on Thursday. The near-term sentiment will hinge on global cues and results of a few top companies. The onset of monsoon will be another key event to keep an eye on," said IIFL report.

At 9:45 am; National Stock Exchange's Nifty was at 5432.25, up 54.10 points or 0.99 per cent. The broader index touched a high of 5456.70 and low of 5417 in trade so far.

Bombay Stock Exchange's Sensex was at 18159.68, down 166.41points or 0.91 per cent. The 30-share index hit a high of 18269.06 and low of 18106.99 in early trade.

BSE Midcap Index slipped 0.55 per cent and BSE Smallcap Index moved up 0.42 per cent lower.

Amongst sectoral indices, BSE Bankex was down 1.53 per cent, BSE Metal Index moved 1.46 per cent lower and BSE Auto Index slipped 1.29 per cent. BSE FMCG Index was up 0.37 per cent.

Sesa Goa (-3.74%), IDFC (-2.51%), HDFC (-2.25%) Tata Motors (-2.13%) and Kotak Bank (-2.13%) were the top Nifty losers.

GAIL (0.96%), ITC (0.91%), BHEL (0.71%), Bharti Airtel (0.16%) and Siemens (0.05%) were amongst the major gainers.

Market breadth was negative on the NSE with 1051 declines as compared to 649 advances.

Meanwhile, Asian markets were witnessing some selling pressure. Nikkei 225 was down 1.34 per cent, Hange Seng fell 1.74 per cent and Taiwan Weighted slipped 1.31 per cent.

ITC turnover up 17 pc to Rs. 30,604 crore

The ITC posted yet another stellar performance in its Centenary Year of operations recording an impressive topline growth and high quality earnings reflecting the robustness of its corporate strategy of creating multiple drivers of growth.

Gross turnover for the year grew by 17 per cent to `30,604.39 crore. Net turnover at `21167.58 crore grew by 17 per cent primarily driven by a 23 per cent growth in the non-cigarette FMCG businesses, 23 per cent growth in agri business and 18 per cent in the hotels segment.

Pre-tax profits increased by 21 per cent to `7268.16 crore, while post-tax profits at `4987.61 crore registered a growth of 23 per cent. Earnings Per Share for the year stood at `6.49 (previous year - adjusted for Bonus Issue - `5.34).

Nifty ends in red; auto, tech, metals down

Indian markets ended in the red after briefly moving into positive terrain. Gains in oil&gas, FMCG and capital goods were offset by losses in auto, technology and metals space.

National Stock Exchange’s Nifty ended at 5537.30, down 27.95 points or 0.50 per cent. The broader index touched a high of 5578.80 and low of 5503 intraday.

Bombay Stock Exchange’s Sensex closed at 18469.36, down 65.33 points or 0.35 per cent. The 30-share recovered from intraday low of 18339.53 and high of 18604.36.

BSE Midcap Index was down 0.45 per cent and BSE Smallcap Index moved 0.54 per cent lower.

Amongst the sectoral indices, BSE Auto Index was down 1.33 per cent, BSE IT Index moved 1.08 per cent lower and BSE Metal Index slipped 1.05 per cent. BSE Oil&gas Index was up 1.2 per cent and BSE FMCG gained 0.36 per cent.

ACC (-6.20%), Ambuja Cement (-5.61%), Bajaj Auto (-4.91%), Dr Reddy’s Laboratories (-4.64%) and Grasim (-4.57%) and were the top losers.

ONGC (5.73%), BPCL (4.18%), Punjab National Bank (3.47%), HDFC Bank (1.76%) and Ranbaxy Laboratories (1.62%) were the major Sensex gainers.

Market breadth was negative on the NSE with 1687 declines against 1110 advances.

Sensex opens higher in early trade

Snapping a three-day losing streak, the Bombay Stock Exchange benchmark Sensex recovered by over 93 points in opening trade on Thursday on the back of a fresh spell of buying by funds as well as retail investors amid a firming trend on other Asian bourses.

However, participants kept their commitments restricted, on Thursday being the last session of monthly expiry in the derivatives segment on the NSE.

The 30-share barometer, which has lost nearly 153 points in the previous three sessions, rose by 93.36 points, or 0.48 per cent, to 19,542.05.

The wide-based National Stock Exchange index Nifty also moved up by 22.50 points, or 0.38 per cent, to 5,856.40.

Brokers said the emergence of buying by funds and investors, taking positive cues from other Asian markets in line with overnight gains in the US market following the Federal Reserve’s decision to hold short-term interest rates near zero, boosted the sentiment here.

Meanwhile, in the Asian region, Hong Kong’s Hang Seng index was up by 0.54 per cent and Japan’s Nikkei by 1.13 per cent in morning trade today. The US Dow Jones Industrial Average ended 0.76 per cent higher in the previous session.

Nifty likely to trade in 5750-5950 range

The Nifty traded in a volatile manner amidst the rollover pressures and finally closed at 5834, down 34 points, on Wednesday. Among the Nifty stocks, only ONGC and M&M closed with gains while most others closed in the red. Ambuja Cement, Wipro and JP Associate were among the weakest counters, recording over 3-4 % fall in the day.

In the midcap space, Bosch, Bata India and Glaxo closed on a strong note while Lanco Infra, Exide Ind and Sterlite Tech closed weaker. Sectorwise, we have correction in frontline IT stocks due to poor results and also in private bank stocks. We have seen Nifty trading in a tight range of 5800 to 5950 over the past week and the index is likely to continue trading in this range. The expiry is likely to be around 5875-5900 level.

What is encouraging in this market is the rate at which the rollovers are taking place. Last month, Nifty moved higher by over 12%. The April series was more of consolidating the gains in March in the 5700-5950 range. Both series saw strong rollovers with the Nifty being near to the monthly highs. This, along with the premium in rollovers, indicates positive bias for the markets in the May series. Going forward, Nifty is likely to trade in the range of 5750 to 5950 before taking any new course. Straddles or strangles can be written to take advantage of the range trading.

5950 is a very strong resistance level for Nifty where in the near past long unwinding was observed. One can strongly go long once that level is breached, taking into consideration the level of premium in Nifty future. Any closing above 5950 can trigger short squeeze resulting in a rally of 100-150 points rally thereon.

Nifty strategy: Short strangle in May (Sell 6100 Call at . 42 and Sell 5600 Put at . 48). The total premium inflow would be . 90. The breakeven for the strategy would be 6190 on the upside and 5510 on the downside. One can go long on Nifty futures above the resistance level of 5950.

(The author is Vice-President - Derivatives Research, Padmakshi Financial Services)

RIL may stop natural gas supply to non-priority sector : report

RIL has since July last year imposed a pro-rata cut in supplies on all its customers, including fertiliser and power firms.

In order to meet the governments order of supplying natural gas to priority sectors like fertiliser and power, from its eastern offshore KG-D6 fields, reports state that Reliance Industries may stop the supply of stop natural gas supplies to steel plants, petrochemical units and refineries.

The production from the KG-D6 fields has dropped by over 20%, reports mentioned adding that RIL has since July last year imposed a pro-rata cut in supplies on all its customers, including fertiliser and power firms.

A petroleum ministry order has now instructed Reliance to supply gas to priority sectors in full and if there is any gas left over it should be given to other sectors on pro-rata basis, a financial daily reported.

Sensex, Nifty open in red

BSE Sensex was trading at 19,363, down 87 points over the previous close. It opened at the day's high of 19,382 and went onto touch a day's low of 19,311.

The benchmark Indian equity indices have opened in the red in early morning trade, with the BSE Sensex and the NSE Nifty down 87 points and 26 points respectively.

At 09:20 am (IST), the BSE Sensex was trading at 19,363, down 87 points over the previous close. It opened at the day's high of 19,382 and went onto touch a day's low of 19,311.

NSE Nifty was quoting 5, 815, down 28 points over the previous close. It had earlier touched a day's high of 5,818 and a day's low of 5,804. It opened at 5,805.

The BSE Small Cap index and the BSE Mid cap index were down 0.2% and 0.5% respectively.
Realty, Auto and Banking stocks are among the leading losers in terms of sectors. While, Metal, Power, PSU, Oil & Gas, Consumer Durables and select IT shares are struggling for direction.

Tata Power, Sterlite, Sun Pharma, Bharti Airtel, Sesa Goa, Tata Steel, BHEL, Grasim, Cairn India, Reliance Infra were among the notable leaders in the Sensex and the Nifty.

Siemens, IDFC, HDFC Bank, DLF, JP Associate, RCOM, BPCL, Hero Honda, Axis Bank, Bajaj Auto, SAIL, ONGC and TCS were among the notable losers in the Sensex and the Nifty.

The market breadth is negative on the BSE with 773 shares falling and 564 shares rising.

India Infoline

Shilpi Cable debuts with over 13% premium on BSE

Cables manufacturer Shilpi Cable Technologies made a strong debut on the bourses today, listing with a premium of over 13 per cent on the Bombay Stock Exchange vis-a-vis its issue price.

The company started the day at Rs 78.35 on the BSE as against the issue price of Rs 69 a share, reflecting a jump of 13.55 per cent.

Within minutes, the stock surged by 22.68 per cent to touch an early high of Rs 84.65 on the bourse.

In a similar fashion, the company opened the day at Rs 78, up by 13.04 per cent on the National Stock Exchange.

On the volume front, over three crore shares of the company were traded on the bourses within the first one hour of trade.

The company had fixed a price band of Rs 65-69 a share for its Rs 55.88 crore initial public offer.

The proceeds of the issue will be used for capital expenditure on its cable/wire assembly shop, tools for 3G enabling and augmenting cable manufacturing capabilities, long-term working capital requirements for proposed new businesses and for investment in the subsidiary of the company, Shilpi Cabletronics .

Meanwhile, the BSE barometer Sensex was trading at 19,515.41, down by 75.77 points, at 1115 hrs.

economictimes.indiatimes.com

Rupee down by 3 paise against US dollar in early trade

MUMBAI: The Indian rupee fell marginally by 3 paise to Rs 44.20 against the US dollar in early trade on the Interbank Foreign Exchange on Thursday, weighed down by a weak trend in the stock market, but steady FII inflows restricted the losses.

The rupee had strengthened by 25 paise to close at a five-and-half month high of Rs 44.17/18 per dollar in the previous session, buoyed by healthy capital inflows and sustained sale of dollars by exporters and corporates.

Forex dealers said the lower opening in the stock market mainly put pressure on the rupee sentiments.

Meanwhile, the Bombay Stock Exchangebenchmark Sensex fell by 69.21 points, or 0.33 per cent, to 19,542.99 in opening trade today.

timesofindia.indiatimes.com

Federal Bank’s Paul Says Inflows ‘Positive’ for Indian Rupee

Roy Paul, deputy general manager at Federal Bank Ltd. in Mumbai, comments on the outlook for India’s rupee.

Three-month non-deliverable forwards for the currency gained 0.4 percent to 44.94 per dollar as of 11:34 a.m. in Singapore, according to data compiled by Bloomberg. The contracts reflect bets the rupee will weaken 1.5 percent from the spot rate of 44.26.

“Of late, the capital inflows have been huge and that is positive for the rupee. There is a global acceptance that India is a growing economy so that is taking root in the minds of investors.

“Oil prices at the current level are a dampener. Depending on the Gulf region and what happens there, the high oil price is a negative for the currency.

“The rupee will be around 45 against the dollar in three months depending on the capital inflows and developments in the Gulf.”

To contact the reporter responsible for this story: Khalid Qayum in Singapore atkqayum@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net

www.bloomberg.com

FIIs net buy Rs 723 crore in equities on April 5 (prov)

By Varinder Bansal, Research Analyst at CNBC-TV18

Foreign institutional investors (FIIs) have been continued to support the Indian markets since March 22. They were net buyers to the tune of Rs 723 crore in cash market on April 5, as per provisional data available on NSE.

However, FIIs were net sellers of Rs 702 crore in F&O market and DIIs too have net sold Rs 529 crore worth of equities yesterday.

FIIs in F&O

FIIs have net sold Rs 613 crore in Index Futures and net sold Rs 575 crore in Stock Futures. However, FIIs have net bought Rs 482 crore in Index Options.

NTPC provisional results will be announced today.

F&O cues

Total Futures' open interest (OI) was up by Rs 603 crore while total Options' OI up by Rs 4173 crore.

Total stock futures added 7.4 crore lakh shares in OI. Nifty futures shed 1 lakh shares in OI and its premium was down to 22 points from 35 points.

Nifty Open Interest PCR was up at 1.41 versus 1.46. Total Put added 26.65 lakh shares while Call added 35.55 lakh shares in open interest.

Highest OI outstanding was seen at 6000 call, 5400 put and 5700 put.

Nifty 5900 call added 15.88 lakh (52%) shares in Open Interest and Nifty 6000 call added 9.35 lakh (18%) shares in Open Interest.

Nifty 5700 put added 5.52 lakh (11%) shares in Open Interest and Nifty 5800 put added 4.53 lakh (10%) shares in Open Interest.

Nifty 6100 call added 4.28 lakh (16%) shares in Open Interest. Nifty May 5600 put added 3.29 lakh (122%) shares in Open Interest.

Nifty 5600 call shed 2.11 lakh (16%) shares in Open Interest, Nifty 5000 call shed 1.68 lakh (29%) shares in Open Interest and Nifty 5500 call shed 1.52 lakh (11%) shares in Open Interest.

India VIX was down by 0.80% at 19.90.

www.moneycontrol.com

Microsoft-Nokia Phone Deal On Track

Nokia-branded smartphones running Windows Phone 7 should hit stores by next year as alliance takes shape.

Efforts by Microsoft and Nokia to hammer out the details of a mobile technology alliance are well underway and should lead to Windows Phone 7 software on Nokia smartphones by 2012, a senior Nokia executive said.

"Negotiations have progressed very well. They will be concluded well on schedule," Kai Oistamo, head of corporate development at Nokia, told Reuters on Monday.

Microsoft and Nokia announced Feb. 11 that they'd reached a preliminary agreement under which Windows Phone 7 will become the default operating system on Nokia devices, but said many of the details of the plan had yet to be worked out. It's expected that a definitive deal will be worked out by the end of April.

Microsoft will rely on Nokia's worldwide distribution channels to boost Windows Phone 7's market presence. The company has released few details about sales of devices based on the OS, leading many analysts to conclude that Windows Phone 7 isn't selling well.

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AT&T, T-Mobile, and Sprint currently offer Windows Phone 7 phones in the U.S. from manufacturers HTC, Samsung, Dell, and LG.

Nokia, now headed up by former Microsoft exec Stephen Elop, has for its part concluded that farming out OS development to Redmond is the only way it can stay competitive with cash-rich rivals like Apple and Google while keeping a lid on R&D costs.

At least one market watcher thinks the plan will yield big dividends for both companies.

IDC predicts Windows Phone 7's share of the global smartphone OS market will jump from 5.5% in the current year to 67.1% in 2015, making it the number two player in the market behind Google Android. IDC expects Android's share to grow from 39.5% this year to 45.4% by 2015. It also expects Apple's iOS, which powers the iPhone, to see its share increase from 15.7% to 18.8% over the same period.

"Up until the launch of Windows Phone 7 last year, Microsoft had steadily lost market share while other operating systems have brought forth new and appealing features," said IDC senior research analyst Ramon Llamas.

"The new alliance brings together Nokia's hardware capabilities and Windows Phone's differentiated platform." Llamas said he expects the first Nokia-branded Windows Phone 7 devices to hit stores next year.

Regardless of manufacturer, all Windows Phone 7 devices use Microsoft's unique Live Tiles interface as a starting point. Live Tiles pushes real-time updates from e-mails, social networks, and other communications tools to the forefront of the home screen. It also boasts direct integration with Microsoft products such as Office, Zune, and Xbox Live.

www.informationweek.com

Sensex climbs modestly at start...Nifty stays above 5900

BSE Sensex was trading at 19,781, up 94 points over the previous close.

The Indian market has commenced the new trading session with a positive bias, but trading is likely to be muted amid mixed global cues. The Large-Cap shares may remain subdued while the non-index counters could continue to hog the limelight. Market breadth is positive.

Investors seem to be brushing aside concerns over rising crude oil prices and its impact on inflation and monetary policy. China yesterday hiked key lending and deposit rates by 25 bps to check inflation. Also, central banks in the eurozone may announce plans to increase borrowing costs this week. The US Federal Reserve is also debating when to exit from the current stimulus.

At 09: 28 (IST), the BSE Sensex was trading at 19,781, up 94 points over the previous close.
NSE Nifty was trading at 5,934, up 24 points over the previous close. It had earlier touched a day's high of 5,935 and a day's low of 5,907. It opened at 5,908.

The BSE Small Cap index and the BSE Mid Cap index were trading flat.

Sesa Goa, BPCL, Grasim, Sterlite, ONGC, IDFC, Hindalco, Maruti, M&M and HUL were among the notable leaders in the Sensex and the Nifty.

Ranbaxy, Sun Pharma, Kotak Mahindra Bank, ITC, Amuja Cement, Infosys, PNB and HDFC Bank were among the notable losers in the Sensex and the Nifty.

The market breadth is positive with 1,971 shares rising and 959 shares falling.

In global action, stocks in Asia are mixed, with Japan in the red. The Chinese market has shrugged off the latest monetary tightening move by its central bank. Markets in the US and Europe finished flat amid anxiety about the future direction of monetary policy.

Outside equities, gold prices have touched new all-time highs amid persistent safe haven buying as investors fret over the MENA turmoil, eurozone debt worries and high crude oil prices. Oil prices were hovering around 30-month peak while the dollar gained.

www.indiainfoline.com

Oil & gas, IT drag Sensex down 83 points

Erasing its opening session gains, the Bombay Stock Exchange benchmark lost over 80 points during the pre-close session on Tuesday due to profit-booking by funds and retail investors amid mixed Asian cues.

The 30-share BSE index Sensex was down 83.35 points at 19,618.38. Similarly, the wide-based National Stock Exchange index Nifty was down 7.55 points at 5900.90.

Volume toppers during the session were SBI, L&T, Tata Motors, Tata Steel and ICICI Bank. Major Sensex losers were Infosys, ICICI Bank, HDFC, L&T, RIL, Mahindra & Mahindra and ONGC. Tata Motors, BHEL and SBI were the major gainers.

Among the heavyweights, RCom was up 4.17 per cent, BHEL 1.35 per cent, Cipla 1.28 per cent, Tata Motors 0.91 per cent and SBI 0.82 per cent. Tata Power was down 1.75 per cent, M&M 1.69 per cent,L&T 1.6 per cent, DLF 1.58 per cent and HDFC 1.33 per cent.

Among the sectoral indices, consumer durables was up 1.66 per cent, metal 0.75 per cent, healthcare 0.23 per cent and PSU 0.23 per cent. Oil & gas was down 0.63 per cent, IT 0.46 per cent, bankex 0.28 per cent and capital goods 0.22 per cent. Of the total 2,922 stocks traded, 1,794 advanced, 1,028 declined and 100 remained unchanged.

The BSE benchmark Sensex gained over 68 points in the opening trade today on the back of strong FII inflows amid expectations of encouraging fourth quarter earnings by corporates.

The 30-share index of the Bombay Stock Exchange, which had gained 281.34 points in the previous session, rose further by 68.48 points to 19,770.21 points as heavyweights such as oil and gas, PSU and power sector stocks made headway.

Similarly, the broad-based National Stock Exchange Nifty index also gained 20.20 points to 5,928.65.

www.thehindubusinessline.com

Anil Ambani faces parliament panel in telecoms graft probe

Anil Ambani, chairman of Reliance ADA group, will appear on Tuesday to answer a parliamentary panel investigating the 2G scam that has rocked the country's political and business establishment.

Ambani's testimony comes days after police indicted officials and a unit of his group for

conspiracy, cheating and other offences during a flawed 2008 telecoms licence grant process that may have lost India up to $39 billion in revenue.

The scandal is the largest of the many corruption cases to have emerged in Prime Minister Manmohan Singh's second term. It has badly damaged the government's credibility.

Reliance Telecom, a unit of Reliance Communications, and three Reliance ADA officials are accused by police of conspiring to set up Swan Telecom as a front company to gain valuable radio spectrum. Indian rules prohibit an existing licence holder from owning more than 10 percent in another operator in the same market.

Ambani, one of India's highest profile businessmen, was to be questioned a day after tycoon Ratan Tata appeared before the same Public Accounts Committee.

While the committee's recommendations are not binding on the government, the spectacle of some India's biggest business names being questioned is almost unheard of in a country where leading tycoons have long been seen as untouchable.

"It is very significant that important corporate captains are being asked to explain their role," political analyst Paranjoy Guha Thakurta said.

"Whether it is going to lead to a very significant and dramatic change in the way that it shifts the nexus between big business and politics is an altogether different question."

The parliament committee, which scrutinises government accounts, is headed by Murli Manohar Joshi, an independent minded lawmaker from the main opposition Bharatiya Janata Party (BJP).

Police on Saturday charged former telecoms minister Andimuthu Raja, three officials and a unit of Reliance ADA group and the Indian joint venture partners of Norway's Telenor and of UAE's Etisalat in the case.

All the accused have denied any wrongdoing. Etisalat and Telenor have said the events described in the charges occurred before they made entered India.

The telecoms ministry is considering whether to cancel several licences issued during that period, potentially jeopardising billions of dollars in investment that operators have made in the world's second-largest mobile market by users.

Such worries prompted the Norwegian prime minister write to Singh seeking "fair treatment" for Telenor. The corruption charges have weighed on the stock market, with the benchmark Mumbai index ending the March quarter as the world's worst performer.

The scandal saw the main opposition Bharatiya Janata Party (BJP) all-but shutting down an entire session of parliament demanding a special cross-party panel investigate the charges. The government agreed to the demand, and that panel is carrying out parallel hearings.

The Supreme Court, which is monitoring the police investigation, had reprimanded Singh for not acting quickly enough against telecoms minister and had ordered police to go after the rich and powerful involved in the case.

"We have a large number of people who think themselves to be above the law. You must catch all of them. Merely because a person is in the Forbes list of millionaires and billionaires does not matter," the court said in February.

www.hindustantimes.com