ADAG says Anil Ambani not summoned by CBI, but that its chairman met agency officials to discuss various issues related to the telecom sector, including licenses and related matters of the last decade
Anil Dhirubhai Ambani Group (ADAG) chairman Anil Ambani met officials the Central Bureau of Investigation (CBI) on Tuesday, in relation with the ongoing inquiry in the telecom spectrum case, the company said in a statement today.
"During the course of his weekly visit to New Delhi, Anil Ambani met CBI officials today to clarify ongoing issues, relating to telecom matters for the years 2001 to 2010, and virtually every telecom operator in the country," ADAG said. It, however, clarified that the CBI had not issued any summons to Mr Ambani.
The statement reiterated that no one from the ADAG group held any shares in Swan Telecom Ltd in January 2008, when the 2G licences were issued by the Department of Telecom (DoT) and that not a single individual from the group had obtained any monetary gain or other benefits from it.
According to some media reports, the CBI questioned Tata Realty and Infrastructure chief financial officer Kishore Saletore and managing director Sanjay Ubale, S-Tel's CFO Arun Mandhana and chief regulatory officer Rupinder Sikka, as well as Loop's chief executive Sandip Basu. However, this could not be confirmed from the CBI.
The Supreme Court has directed the CBI to check the eligibility criteria of operators who won 2G spectrum licences. Earlier, in a report, the Comptroller and Auditor General (CAG) said that Swan Telecom, which won telecom licences in 13 circles, appeared to have acted as a front company for Reliance Telecom, a unit of ADAG company Reliance Communications.
As per existing rules, no telecom operator is allowed to hold more than 10% shares in another operator in the same circle, directly or indirectly. However, the CAG said it had found that in all the 13 circles where Swan had got licences, RCom was also present and together with preferential shares equivalent to 0.9%, RCom had a 10.7% stake in Swan, which was against the prescribed norms.
But RCom has maintained that it held 9.9% stake in Swan through Reliance Telecom till December 2007 and that it had offloaded the stake before Swan was awarded telecom licences on 10 January 2008.
According to the CAG report, 85 out of 122 new licences did not meet the eligibility criteria prescribed by the Department of Telecommunications. Moreover, 45 out of these 85 licences failed to satisfy conditions of the main object clause in their Memorandum of Association. The government has already issued a show-cause notice to all 85 licence-holders asking them why their licences should not be cancelled.
Unless the Nifty crosses 5,555 and the Sensex 18,500 quickly, the market risks falling
The market witnessed a listless opening on the back of subdued cues from the global arena. Trade lacked momentum as the key indices hovered on both sides of the neutral line and remained range-bound for most part of the morning.
With prime minister Manmohan Singh's interactions with TV editors along expected lines, the market continued its sideways movement in post-noon trade. The consolidation, which began yesterday, continued today, and the market closed in the green.
The Sensex and the Nifty opened with a negative gap at 18,273 and 5,468 respectively and traded in a narrow range throughout the day. However, both the benchmarks stayed well above yesterday's lows. The Sensex and the Nifty made an intra-day low of 18,216 and 5,460 in morning trade. The Sensex hit an intra-day high of 18,359 and the Nifty touched 5,505. But they could not cross Tuesday's highs.
Today's highs surpassed the 20-day moving average, but couldn't sustain the level. The Sensex closed 27 points up at 18,301, while the Nifty ended flat (up 0.70 points) at 5,482. The market needs to sustain above the 20-day moving average and cross 5,555 on the Nifty and 18,500 on the Sensex for the rally to sustain. The advance-decline ratio on the National Stock Exchange (NSE) was 843:540.
The market breadth was tilted towards declining stocks. The Sensex had 16 losers and 14 advancing stocks, while on the Nifty 27 stocks declined, 22 advanced and one remained unchanged. The broader markets outperformed the Sensex. The BSE Mid-cap index gained 0.53% and the BSE Small-cap index surged 1.01%.
The BSE Realty index (up 2.12%) was the top gainer in the sectoral space. Other gainers were BSE Metal (up 1.49%), BSE Consumer Durables (up 1.02%), BSE Capital Goods (up 0.56%) and BSE Fast Moving Consumer Goods (up 0.41%). BSE Healthcare (down 0.58%) BSE Auto (down 0.37%) and BSE Public Sector Undertaking (down 0.20%) were the top sectoral losers.
Jaiprakash Associates (up 6.67%), Tata Steel (up 3.97%), Jindal Steel (up 3.28%), Wipro (up 3.03%) and Tata Power (up 1.74%) were the major Sensex gainers while HDFC (down 2.53%), Reliance Communications (down 1.72%), Mahindra & Mahindra (up 1.55%), Hero Honda (down 1.41%) and ONGC (down 1.18%) ended at the bottom of the list.
Expressing the confidence that inflation should be "no more than 7%" by March-end, compared to 8.23% in January, prime minister Manmohan Singh said the government's effort had been to rein in high prices without hurting growth, which he projected to be at 8.5% this fiscal.
Dr Singh said global factors like high crude and food prices were not under the control of the government and that efforts were being made to insulate the poor through programmes like the National Rural Employment Guarantee Act and keeping prices at state-run ration shops unchanged since 2002.
Asian markets overcame initial hiccups and closed mostly higher today, supported by the optimism from Nomura Holdings about Japanese economic growth. The Bank of Japan had yesterday raised its economic assessment for the first time in nine months. The Chinese market gained after the latest economic data boosted investor confidence and eased worries about further policy-tightening measures.
The Shanghai Composite surged 0.86%, the Hang Seng jumped 1.12%, the Jakarta Composite ended flat with a positive bias of 0.02 points, the KLSE Composite added 0.06%, the Nikkei 225 gained 0.57% and the Straits Times rose 0.46%. On the other hand, Seoul Composite slipped 1.06% and the Taiwan Weighted lost 0.10%.
Back home, foreign institutional investors were net buyers of stocks worth Rs233.05 crore on Tuesday. On the other hand, domestic institutional investors were net sellers of equities worth Rs167.85 crore.
Tata Steel (up 3.97%) reported an over two-fold jump in its consolidated net profit to Rs1,003.02 crore for the third quarter ended December 2010, up from Rs472.65 crore in the year-ago period, the company informed the Bombay Stock Exchange. Consolidated net sales increased to Rs28,606.15 crore in the October-December quarter of 2010 from Rs26,068.55 crore in the corresponding period of the last fiscal.
Tata Consultancy Services (up 0.14%), India's largest IT services company, on Tuesday unveiled iON, its cloud computing platform-based solution for small and medium businesses (SMBs). iON will address the entire spectrum of an SMB's technology needs ranging from business solutions such as HR, finance, inventory, domain-based ERP solutions to basic applications-e-mail, document management and Web site services.
Piramal Glass (up 3.92%), a leading manufacturer of glass containers for cosmetics and perfumery, speciality foods and beverages and pharmaceuticals industry, has drawn up plans to invest Rs260 crore over the next two years, including Rs100 crore for expansion of its plant at Jambusar in Gujarat.
Prime minister Manmohan Singh added that the government's policies could not be blamed for drop in FDI as the current international scenario was prompting foreign funds to move out from emerging markets
New Delhi: In the backdrop of demands for opening multi-brand retail for foreign direct investment (FDI) and liberalising the regime for other sectors like defence, prime minister Manmohan Singh today admitted that there was a need for "favourable" environment for fund flow from abroad, reports PTI.
"I think we need to strengthen the resolve to create favourable environment for larger flow of funds from abroad," he said.
Addressing editors of electronic media here, he, however added the government's policies could not be blamed for drop in FDI as the current international scenario was prompting foreign funds to move out from emerging markets.
"It is not our mistake (outflow in FDI). The international situation is such that funds are moving out of emerging markets. We are today functioning in an environment where what happens outside affects us," Mr Singh said.
"Therefore is not easy to say that what happens to fund flow is entirely a function of our policy," he added
The prime minister also stated that policies followed by the developed economies also played a part in foreign investments coming into India.
"It is also a function of what policies our other friends, particularly, the developed countries adopt," he said.
During April-December of the current fiscal, FDI inflows declined by 23.14% to $16.03 billion over the year ago period.
The government has taken several steps like initiating discussions on opening multi-brand retail for FDI.
It is also in process of analysing feedbacks received from stakeholders to further liberalise the defence sector. Currently, 26% FDI is allowed in defence manufacturing.