“The revival plan submitted by Kingfisher Airlines had lots of issues regarding lenders, staff payment which we felt may not lead to reliable services,” a senior DGCA official said
New Delhi: The government is not satisfied with Kingfisher Airlines’ plans to invest Rs650 crore to resume its operations as it may not guarantee an efficient and reliable service, reports PTI quoting a senior DGCA official.
“We want an airline to operate in consistent, efficient and reliable manner. The revival plan, which was submitted by the airline, had lots of issues regarding lenders, staff payment which we felt may not lead to reliable services,” the official said.
Kingfisher Airlines plans to invest Rs 650 crore as part of its plan to return to the skies. The airline had lost its operating licence on 31 December 2012 and had stopped flying since October.
The official, not wishing to be named, said the revival plan filed by Kingfisher chairman Vijay Mallya last month with the country's aviation regulator Directorate General of Civil Aviation (DGCA) may not be sufficient to carry out a reliable service.
“The plan had no provision for payment of airport operators, who want their dues to be paid before the airlines starts flying again,” the official said.
The official said the payment plan of due salary and wages of staff was in a phased manner, which “we felt may not lead to reliable services. If the employees were not paid, then the staff may stop working again which may cause inconvenience to passengers. There should be no inconvenience to passengers,” the official said.
Watch whether the Nifty slips below 5,930. In that case, the index would head towards 5,850
The market which opened with good gains following an optimistic forecast from Infosys, soon trended lower and settled flat dismal IIP data for December. The market is still under pressure. If the Nifty slips below 5930, the index would head towards 5850. Today the National Stock Exchange (NSE) saw an advance decline ratio of 409:1334 and volume of 77.09 crore shares.
Most of the Asian indices opened in the green but couldn’t sustain their gains on news that China's inflation accelerated more than forecast to a seven-month high in December 2012 whereby limiting room for further monetary policy easing to support an economic recovery.
Back home, contrary to most of the Asian indices, both the Sensex and the Nifty opened in the positive with the Sensex immediately hitting a four-day high while the Nifty hit a two-day high as Infosys announced its December 2012 results before trading hours.
The management of Infosys said that they continue to gain confidence from a strong pipeline of large deals, however, they remain cautiously optimistic about the January-March quarter. The company has revised and raised its revenue guidance to at $7.45 billion for the company for FY 2013 from the earlier forecast of $7.343 billion. This revision is due to addition of revenue from Lodestone
The Sensex opened 150 points up at 19,814 while the Nifty started the day 44 points higher at 6,012. The Sensex hit a high of 19,840 while Nifty touched 6,019 at its intraday high.
But soon after the Central Statistics Office (CSO) released the industrial production numbers for November, the indices started giving up the gains and entered the negative zone and ended almost flat. The Sensex hit a low of 19,620 while the Nifty fell to 5,941.
The Sensex closed at 19,664 (up 0.09 points) while Nifty closed at 5,951, down 17 points, or 0.29%.
Among the broader indices, the BSE Mid-cap index declined 1.49% and the BSE Small-cap index dropped 1.58%.
The top sectoral gainers were BSE IT (up 9.34%); BSE TECk (up 6.57%); BSE Consumer Durables (up 0.21%). BSE FMCG (down 2.47%); BSE Realty (down 1.89%); BSE PSU (down 1.74%); BSE Power (down 1.72%) and BSE Oil & Gas (down 1.67%) were the main losers.
Four of the 30 stocks on the Sensex closed in the positive. The gainers were Infosys (up 16.90%); Wipro (up 6.10%); TCS (up 3.80%) and Sterlite Industries (up 1.17%). The key losers were Jindal Steel (down 3.53%); Hindustan Unilever (down 3.51%); ONGC (down 3.28%); Mahindra & Mahindra (down 2.83%) and ITC (down 2.63%).
The top two A Group gainers on the BSE were—Infosys (up 16.90%) and Wipro (up 6.10%).
The top two A Group losers on the BSE were—United Breweries (down 5.35%) and Indiabulls Financial Services (down 5.17%).
The top two B Group gainers on the BSE were—Nouveau Global Ventures (up 19.94%) and Shree Rama Multi-Tech (up 19.85%).
The top two B Group losers on the BSE were— APW President (down 13.13%) and Birla Shloka (down 12.46%).
Out of the 50 stocks listed on the Nifty, six stocks settled in the positive. The major gainers were Infosys (up 17.04%); Wipro (up 6.17%); TCS (up 3.77%); HCL Technologies (up 0.51%) and Lupin (up 0.50%). The top losers were Hindustan Unilever (down 4.08%); Jindal Steel (down 4.04%); Jaiprakash Associates (down 3.93%); Kotak Bank (down 3.80%) and ONGC (down 3.62%).
India’s Industrial production declined 0.1% in November 2012. Manufacturing production rose 0.3% and electricity generation rose 2.4% in November 2012. Production of the mining sector declined 5.5% in November 2012.
The CSO will unveil data on inflation based on the combined consumer price index CPI) for urban and rural India and also inflation based on the wholesale price index (WPI) both for December 2012, on Monday, 14 January 2013.
Meanwhile, India's trade deficit narrowed to $17.7 billion in December from $19.3 billion in November, even after exports fell for the eighth straight month, a trade ministry official said on Friday
Exports totalled $24.88 billion in December, down 1.9% on year. Imports, however, were up 6.3% at $42.5 billion. For the nine months ending December, exports totalled $214.1 billion, down 5.5% from a year ago.
Among the Asian indices, Nikkei 225 was the highest gainer, up 1.40%, after the Japanese government said it will spend 10.3 trillion yen ($116 billion) to drive a recovery from a recession in prime minister Shinzo Abe's first major policy initiative to end deflation and boost growth. The Shanghai Composite was the top loser, down 1.78%
At the time of writing, two of the three key European indices were trading in the green while US Futures were marginally in the negative.
The European Central Bank held interest rates at a record low of 0.75% and announced no new stimulus measures on Thursday. The Bank of England also left its base interest rate and its monetary stimulus program unchanged, as widely anticipated.
Back home, foreign institutional investors were net buyers of shares totalling Rs249.50 crore on Thursday whereas domestic institutional investors were net sellers of equities amounting to Rs433.14 crore.
CMC reported 48% increase in consolidated net profit at Rs 61.06 crore for the quarter ended December 31, 2012 as compared to net profit of Rs 41.37 crore during the same period last financial year. Revenue for the company rose 24% at Rs 492.97 crore as compared to Rs 396.17 crore in the same period last year. The stock rose 3.37% to close at Rs1336 on the NSE.
Nagarjuna Fertilizers & Chemicals has embarked on a Rs4,500 crore expansion plan. It is setting up a third plant at Kakinada in Andhra Pradesh which will enhance the company's urea production by 1.3 million tonnes, taking the total production capacity to 2.9 million tonnes. The expansion will be financed through an appropriate mix of debt and equity. The stock fell 0.72% to close at Rs76.05 on the BSE.
“The company is actively considering to come up with a zero depreciation policy for two-wheelers, which is already being offered for cars,” a New India Assurance official said
Mumbai: The country's largest general insurer New India Assurance is actively considering launching a “zero depreciation policy” in the two-wheeler insurance segment after launching the same in the four-wheelers space, a top company official said, reports PTI.
Currently, the product is under the actuarial study to consider its viability, after which it will be filed for regulatory approval, the official said.
In a zero depreciation policy, the customer gets replacement of its old parts with a new one in case of a need, for a nominally higher premium. This is not the case in the normal car insurance.
Some other insurance players are providing zero depreciation policy for cars and the public insurer is actively considering launching such a product in the two-wheeler segment.
On the dismantling of the “declined motor pool”, which is currently in force in the commercial vehicle segment, the official said the system should be continued for some more time before making any judgement over its sustainability.
The New India Assurance, country’s largest general insurer has crossed Rs10,000 crore mark in premium collection in the last financial year and aims to touch a global premium of Rs12,000 crore this fiscal.