Citizens' Issues
Ajit Singh orders suspension of top officials at AAI for graft

A CBI inquiry had found these top officials allegedly involved in committing irregularities and favouring a particular company in awarding ground handling services contracts at Chennai, Kolkata and other airports

 
New Delhi: Six senior Airports Authority of India officials have been suspended after a preliminary probe by the Central Bureau of Investigation (CBI) found them allegedly favouring a private company while awarding ground handling service contracts at some airports, reports PTI.
 
Civil Aviation Minister Ajit Singh has ordered immediate suspension and initiation of major penalty proceedings against AAI Executive Director (Commercial) LL Krishnan, DGM Finance RL Saran, Additional GM (Commercial) S Basu, DGM (Operations) Arun Mehan, DGM (Operations) PK Chadha and GM Ravi Verma, a Ministry statement said.
 
A CBI inquiry had found them allegedly involved in committing irregularities and favouring a particular company in awarding ground handling services contracts at Chennai, Kolkata and other airports.
 
The Minister has also ordered filing of FIR against Prem Bajaj, MD of Bhadra International India Ltd, retired AAI ED (Commercial) RV Narayanan, retired AAI ED (Finance) AK Dubey and others for manipulating, forgery, criminal breach of trust, criminal conspiracy and corruption, the statement said.
 
The AAI officers had allegedly made certain deviations from the commercial manual in the Notice Inviting Tender (NIT) while awarding contract for ground handling services at Chennai and Kolkata airports so that Bhadra International India Ltd was benefited, the CBI probe found.
 
The officials had deliberately incorporated the term "tie-up" arrangement in the eligibility criteria as stipulated in the NIT to make Bhadra International India Ltd eligible in joint venture technical agreement with Novia International Consulting APS for participating in the bid process.
 

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Sensex, Nifty may continue to move up: Monday Closing Report

Buy at dips. Uptrend on Sensex, Nifty may continue unless the previous day’s low is broken

 
The market closed in the green for the ninth day in a row on optimism from the government on the reforms front and the RBI’s 25 basis point CRR cut today. Today’s upmove helped the Nifty close at the highest since 26 July 2011. We see the uptrend continuing, subject to the index holding itself above the previous day’s low. The NSE saw a huge volume of 100.10 crore shares, the highest since 27 February 2012, and the advance decline ratio of 850:597.  
 
The market opened on a positive note following the government’s move, after the market closed on Friday, to approve foreign direct investment (FDI) in multi-brand retail, aviation and cable TV and DTH sectors. Markets in Asia, which were in the green in morning trade, also supported the gains in the local market.
 
The NSE Nifty opened 54 points higher at 5,632 and the BSE Sensex surged 156 points to start the day at 18,620. The market hit its intraday high in initial trade itself with the Nifty rising to 5,652 and the Sensex scaling 18,715. Capital goods, banking and realty stocks were in demand in early trade.
 
However, profit booking ahead of the Reserve Bank of India’s (RBI) policy review saw the benchmarks paring some of their gains. The market continued to drift lower despite the central bank cutting the cash reserve ratio (CRR) rate by 25 basis points to 4.5%. The reduction will lead to an infusion of Rs17,000 crore into the system.
 
Selling pressure in FMCG, IT and healthcare sectors pushed the market to the day’s low in noon trade. At the lows, the NSE Nifty fell to 5,586 and the BSE Sensex retracted to 18,481.
 
The indices were range-bound in post-noon trade as the key European markets opened lower on fresh concerns from Spain and Portugal as the two nations witnessed protests against spending cuts.
 
The government’s move to initiate economic reforms and the RBI’s CRR cut helped the market notch gains for the ninth day in a row. At the close, the Nifty gained 32 points (0.58%) to 5,610 and the Sensex climbed 78 points (0.42%) to settle at 18,542.
 
The broader indices outperformed the Sensex today. The BSE Mid-cap index surged 1.14% and the BSE Small-cap index climbed 1.13%.
 
Among the sectoral gauges, BSE Realty (up 6.21%); BSE Capital Goods (up 3.74%); BSE Bankex (up 3.24%); BSE Power (up 2.19%) and BSE Oil & Gas (up 1.95%) were the top performers. The losers were BSE Fast Moving Consumer Goods (down 3.66%); BSE IT (down 3.18%); BSE TECk (down 1.86%) and BSE Healthcare (down 1.81%).
 
Eighteen of the 30 stocks on the Sensex closed in the positive. The top gainers were Jindal Steel (up 5.99%); ICICI Bank (up 5.39%); State Bank of India (up 5.36%); Larsen & Toubro (up 4.35%) and BHEL (up 4.30%). The major losers were ITC (down 5.48%); TCS (down 5.03%); Dr Reddy’s Laboratories (down 4.30%); Hindustan Unilever (down 2.76%) and Infosys (down 2.67%).
 
The top two A Group gainers on the BSE were—Pantaloon Retail (up 19.04%) and HDIL (up 13.58%).
The top two A Group losers on the BSE were—Hexaware Technologies (down 5.94%) and IPCA Laboratories (down 5.60%).
 
The top two B Group gainers on the BSE were—NCC (up 21.04%) and Man Industries India (up 20%).
The top two B Group losers on the BSE were—JPT Securities (down 13.25%) and Rishiroop Rubber (down 11.53%).
 
Out of the 50 stocks listed on the Nifty, 29 stocks settled in the positive. The key gainers were Reliance Infrastructure (up 8.34%); IDFC (up 6.87%); DLF (up 6.76%); Bank of Baroda (up 6.65%) and Jaiprakash Associates (up 6.04%). ITC (down 5.57%); TCS (down 5.37%); Dr Reddy’s (down 4.03%); BPCL (down 3.30%) and Ranbaxy Laboratories (down 2.95%) were the main losers on the benchmark.
 
Markets in Asia closed mostly higher on the back of the recent moves by central banks across the world to boost growth. However, stocks in China settled lower after private data revealed a decline in home sales following the government’s restrictions.
 
The Hang Seng rose 0.14%; the Nikkei 225 surged 1.83%; the Straits Times gained 0.27% and the Taiwan Weighted climbed 0.31%. Among the losers, the Shanghai Composite tumbled 2.14%; the Jakarta Composite lost 0.04% and the Seoul Composite declined 0.26%. 
 
At the time of writing, the key European indices were down between 0.20% and 0.57% and the US stock futures were trading with minor losses.
 
Back home, foreign institutional investors were net buyers of shares totalling Rs2,833.72 crore on Friday while domestic institutional investors were net sellers of stocks amounting to Rs688.80 crore.
 
Pharma major Wockhardt today said it has received approval from American health regulator to market Lansoprazole, a drug used in treatment of ulcers, in the US market. Lansoprazole is the generic name for the brand Prevacid, marketed in the United States by Takeda. The stock tanked 4.17% to close at Rs1,280 on the NSE.
 
Reliance Power today said its 4,000 MW Sasan ultra mega power project in Madhya Pradesh has been connected to the national grid. The project is now ready to draw power from the grid to provide start-up power for the first 660 MW unit which is nearing completion, the company said. Reliance Power jumped 6.35% to close at Rs87.10 on the NSE.
 
Tech Mahindra on Monday acquired 51% stake in Comviva Technologies for Rs260 crore. According to the agreement, Tech Mahindra will make an upfront payment of Rs125 crore towards the stake acquired and the balance Rs135 crore will be paid over a period of five years. Tech Mahindra declined 0.73% to close at Rs904 on the NSE.
 

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S&P hails reforms, but says no change in rating outlook now

S&P said its views of April, when it downgraded India's outlook to negative, and of June, when it used strong words for actions by policy- makers to avoid a downgrade to junk status, remain unchanged

 
Mumbai: Ratings agency Standard & Poor's (S&P), which in June had threatened to downgrade India's sovereign ratings to junk status, on Monday welcomed big-ticket reform measures by the Government over the weekend, saying the steps would serve as a medium-to-long term positive for the macroeconomic conditions, reports PTI.
 
"If the measures proposed by the Government are implemented, we would expect a medium-to-long-term positive impact on the macro-economy," Takahira Ogawa, Director for sovereign ratings at S&P said in a note.
 
The agency, however, maintained that its views of April, when it downgraded the country's outlook to negative, and June, when it used strong words for actions by policy- makers to avoid a downgrade to junk status, remain unchanged.
 
In a string of bold initiatives, the Government, accused of a "policy paralysis", first announced a steep 12%, or Rs5 per litre, increase in the regulated diesel prices on Thursday and a cap on subsided cooking gas usage.
 
The next day, it followed this up with a liberalisation of foreign holding caps in the aviation, multi- brand retail, non-news broadcast media and power exchanges. It also announced a plan to divest its stake in five companies.
 
In the note, Ogawa raised questions over the efficacy of these measures. "We believe that the Government's recent announcement on foreign direct investments is an encouraging development, but at this stage it is still uncertain whether these measures can be implemented or nor." 
 
He specifically pointed out to the liberty given to a particular state whether it wishes to adopt the changes in the multi-brand retail FDI or not.
 
"Hence, the actual impact from this measure might be less than expected," he said on FDI in multi-brand retail.
 
Similarly, the proposed divestment of PSUs, he said, "depends on the actual implementation of the plan."
 

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