2G: Government moves to SC with Presidential reference on issues arising from license cancellation order

The government has moved to the apex court for its opinion on issues arising out of its 2G spectrum judgement including whether auctioning of natural resources across all sectors is mandatory under all circumstances

New Delhi: The Indian government on Thursday moved the Supreme Court with a Presidential Reference for its opinion on issues arising out of its 2G spectrum judgement including whether auctioning of natural resources across all sectors is mandatory under all circumstances, reports PTI.

It placed before the apex court the reference signed by President Pratibha Patil in which around eight questions have been raised, including whether there could be judicial interference in the policy matters, vis-a-vis allocation of natural resources.

The Union Cabinet, chaired by Prime Minister Manmohan Singh, had on 10th April cleared the Telecom Ministry's proposal to seek Supreme Court's opinion on various issues arising out of the 2nd February judgement by which allocation of 122 licences of 2G on first-come-first-served policy was cancelled.

The court had also observed that auction was best suited route for allocating natural resources like telecom spectrum because the policy of first-come-first-serve was flawed.

In the reference, the Centre has sought apex court's view on the verdict which is likely to have implication on FDI, if a policy decision of the government is cancelled by judicial order.


Sensex, Nifty may continue upmove: Thursday Closing Report

Nifty’s resistance is at 5,360

In our yesterday’s closing report we mentioned that the Nifty had resisted a breakdown and may rally. Brushing aside the weak IIP numbers for February, the market went on to hit the day’s high in noon trade. However, lingering European debt concerns saw the indices paring some gains. The Nifty managed to make a higher high, higher low and a higher close today. There may be an upmove to the level of 5,450 if the index manages to close above 5,360 in the coming sessions. The National Stock Exchange (NSE) saw a volume of volume of 67.16 crore shares.  

The market witnessed a gap up opening following a firming trend in the Asian pack, which took support from the US markets that closed higher after five days of losses. The Nifty opened 20 points higher at 5,247 and the Sensex resumed trade at 17,277, up 78 points. All-round buying, led by metals, capital goods and banking sectors saw all sectoral indices trading higher in early trade.

While the opening figure on the Sensex was its intraday low, the Nifty hit that mark a short while later with the benchmark touching 5,247. The market continued to accrue gains as trade progressed on institutional buying. With industrial output for February coming in below market expectations at 4.1%, the benchmarks pared some of their gains in the mid-morning session.

However, the market brushed aside the weak IIP numbers and went on to hit its intraday high in non trade. At the highs, the Nifty touched 5,291 and the Sensex rose to 17,395.

The indices came off those highs as European shares were trading lower after borrowing costs on Italy’s three-year debt rose to 3.89% from 2.76% in an auction a month ago.

The benchmarks witnessed sideways movement in post-noon session and settled in the green. The Nifty closed 50 points higher at 5,277 and the Sensex gained 133 points to end trade at 17,333.

The advance-decline ratio on the NSE was positive at 1047:576.

The broader markets outperformed the Sensex today as the BSE Mid-cap index climbed 0.85% and the BSE Small-cap index surged 1.01%.

Eleven of the 13 sectoral indices closed in the green. The gainers were led by BSE Metal (up 2.20%); BSE Bankex (up 1.62%); BSE Fast Moving Consumer Goods (up 1.50%); BSE Auto (up 1.25%) and BSE Capital Goods (1.03%). BSE IT (down 1.15%) and BSE TECk (down 0.78%) settled lower.

The top five stocks on the Sensex were Jindal Steel (up 4.86%); Sterlite Industries (up 3.91%); Maruti Suzuki (up 3.13%); Hindalco Industries (up 3.02%) and State Bank of India (up 2.95%). The main laggards were Infosys (down 1.87%); ONGC, Wipro (down 1.27% each); DLF (down 1.09%) and TCS (down 0.88%).

The Nifty was led by Jindal Steel (up 5.17%); Reliance Communications (up 4.36%); Sterlite Industries (up 4.17%); Ranbaxy Laboratories (up 3.38%) and Hindalco Industries (up 3.31%). The major losers were Dr Reddy’s Laboratories (down 2.26%); Cairn India (down 2.24%); Wipro, Infosys (down 1.84% each) and DLF (down 1.24%).

Markets in Asia were higher as a rise in commodity prices boosted material stocks. Speculations of a cut in rates by China also added to the positivism, but concerns about Europe capped the gains.

The Shanghai Composite surged 1.82%; the Hang Seng climbed 0.93%; the Jakarta Composite rose 0.23%; the KLSE Composite gained 0.26%; Nikkei 225 advanced 0.70%; the Straits Times was up 1.08% and the Taiwan Weighted added 0.08%. Bucking the trend, The Seoul Composite fell by 0.39%. At the time of writing, two of the three key indices in Europe were in the negative while the US stock futures were trading with gains.

Back home, foreign institutional investors were net sellers of shares totalling Rs445.77 crore and domestic institutional investors withdrew Rs82.24 crore from the equities segment on Wednesday.

ABB has secured an order worth Rs 75 crore from Delhi Metro Rail Corporation to provide power solutions for the proposed Jaipur metro rail network. The turnkey project includes design, installation and commissioning of essential power infrastructure for Stage 1 of the East-West corridor of Jaipur metro rail network that would serve eight stations. ABB closed at Rs836.90 on the NSE, up 1.66%.

Dish TV, India-Asia’s largest DTH operator, is offering the Indian Premier League (IPL) action in high definition (HD) on SET Max at no cost. With the maximum number of HD channels and services available, the move is aimed gaining a bigger market share by offering IPL in HD feed free for its HD customer base. The stock fell 0.41% to close at Rs60.80 on the NSE.

Credit rating agency Moody’s has downgraded the local currency ratings of state-owned Oil and Natural Gas Corporation (ONGC) and GAIL. The agency has downgraded the local currency rating of ONGC to Baa1 from A2 and that of GAIL to Baa2 from A3. The outlook for both the ratings is stable. ONGC declined 1.17% to close at Rs261 on the NSE while GAIL rose 1.34% at Rs359.


Government to set up committee to examine IIP says Rangarajan

The former RBI Governor said industrial production growth rate in February and the revised one for January certainly indicate that industrial productivity has not yet picked up

Bangalore: The Indian government would set up a committee to examine the Index of Industrial Production (IIP) and look into ways to "tighten" various sources of data collection, Prime Minister's Economic Advisory Council Chairman C Rangarajan said on Thursday.

"....I think the Government is now setting up a committee to examine the Index of Industrial Production," he told reporters here when asked about concerns in some quarters about volatility of IIP data and whether the Government would address them.

The IIP growth has been revised downwards to 1.14% for January, from the provisional estimates of 6.8%, according to the official data released Thursday.

Mr Rangarajan pointed out that data relating to IIP comes from several sources, they are then put together by the Ministry and released. "Therefore, we really need to tighten the various sources from which the data are collected".

The former RBI Governor said industrial production growth rate in February and the revised one for January certainly indicate that industrial productivity has not yet picked up.

"Therefore, overall growth rate of industrial production during the year (2011-12) will only be what we have been indicating earlier....3.8%...."

Showing persistent sluggishness in the economy, industrial production growth slowed to 4.1% in February this year, mainly due to poor performance of manufacturing sector and consumer goods segment.

Output of the manufacturing sector, which constitutes over 75% of the index, rose by just 4% in February, compared to 7.5% in the same month last year.


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