Govt approves 16 FDI proposals worth Rs924 crore

A total of 38 FDI proposals were taken up by the Foreign Investment Promotion Board, but the board deferred a decision on 14 applications, rejected seven and recommended one for the Cabinet Committee on Economic Affairs

New Delhi: The government today cleared 16 foreign direct investment (FDI) proposals amounting to Rs923.55 crore, including those of Star News Broadcasting Ltd and L&T Finance Holdings, reports PTI.

A total of 38 FDI proposals were taken up by the Foreign Investment Promotion Board (FIPB), but the board deferred a decision on 14 applications, rejected seven and recommended one for the Cabinet Committee on Economic Affairs (CCEA), the finance ministry said in a statement.

The board gave its approval to Soma Tollways Pvt Ltd (Andhra Pradesh) for induction of foreign equity in an investing company. The proposal is likely to bring in FDI worth Rs500 crore.

L&T Finance Holdings' application for permission for pre-IPO placement of equity shares with eligible non-resident investors was also approved by the FIPB. The firm aims at FDI worth Rs400 crore.

The board also approved the Star News Broadcasting's (Touch Tele Content (I) Ltd) proposal for induction of foreign capital. It would, however, not include any fresh inflow of funds.

The other major proposals that were cleared by the FIPB include those of Global Gourmet (Gujarat), Park Controls & Communications (Bangalore) and Centum Electronics (Bangalore).

The ministry further said the board deferred a decision on applications by Indian Rotorcraft (Mumbai) for induction of foreign equity and Precision Electronics to undertake the additional activity in the defence sector.

Decisions on the proposals of BNP Paribas SA (Paris), Sightlife USA, Southern CNG Automobiles and Natixis Global Asset Management (France), among others, were also deferred.

The proposals which were rejected include those of Reynders Label Printing India (Delhi and Haryana), Anuradha Holdings (Bangalore) and AOS Holding India SAS (France).

The official statement said that two proposals-PTC India Financial Services (Delhi, Haryana) and Tata Steel-were withdrawn from the FIPB Agenda on the request of the applicants.

The proposal, which was recommended to the Cabinet Committee on Economic Affairs (CCEA) was of Cals Refineries (Delhi and Haryana) to issue equity shares in the form of GDRs against supply of refinery equipments. The proposal is likely to bring in FDI worth Rs1,425 crore.

Foreign direct investments into the country had fallen to $19.43 billion (Rs88,520 crore) in 2010-11 as against $25.83 billion (Rs12.31 lakh crore) in the previous fiscal, a decline of 25%.

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Share prices may move up: Tuesday Closing Report

If Nifty stays above 5,550 it will target to reach 5,620

As we have been expecting, the market continued its upward move today on support from select blue-chips like Jaiprakash Associates, Reliance Industries (RIL) and Infosys. The main indices, the Sensex and the Nifty, were up for the second day.

The sell-off in US stocks for the fourth day in a row on Monday and weak opening by Asian markets resulted in the domestic bourses opening lower. The Sensex was down 65 points at 18,355 and the Nifty opened at 5,509, 23 points lower from its previous close. The indices fell to their day's low in initial trade, with the benchmarks at 18,351 and 5,508, respectively.

The market was range-bound, hovering on both sides of the neutral line till noon trade, when buying in select heavyweights pushed the indices into the positive. The gains were also supported by European markets that mostly opened in the green. The Sensex and the Nifty crossed their psychological levels of 18,500 and 5,550. The market hit the high-point of the day in the last hour with the indices at 18,546 and 5,570.

The Sensex finished 76 points up at 18,496, marginally off its psychological level, and the Nifty added 24 points to close at 5,556.

The gains over the last two days have covered up last Friday's losses. After a range-bound performance for most of the day, the Nifty managed to keep itself above the first resistance of 5,550. If the Nifty maintains a higher high and stays above 5,550 it could reach 5,620.

The advance-decline ratio on the National Stock Exchange was a positive 801:576.

The broader markets outperformed the Sensex today. The BSE Mid-cap index climbed 0.77% and the BSE Small-cap index surged 0.65%.

The BSE Realty index (up 1.64%) was the top sectoral gainer. It was followed by BSE Oil & Gas (up 1.28%), BSE IT (up 1.24%), BSE Healthcare (up 1.12%) and BSE TECk (up 0.95%). The losers were Capital Goods (down 0.48%) and BSE Fast Moving Consumer Goods (down 0.16%).

The top gainers on the Sensex were Jaiprakash Associates (up 2.12%), RIL (up 1.93%), Infosys Technologies (up 1.91%), Cipla (up 1.88%) and Tata Steel (up 1.37%). The major index losers were Hindustan Unilever (down 2.14%), Hero Honda (down 1.28%), Larsen & Toubro (down 1.11%), Wipro (down 0.97%) and Bharti Airtel (down 0.58%).

The top Nifty gainers were Sun Pharma (up 2.41%), RIL (up 2.33%), Jaiprakash Associates (up 2.05%), Tata Steel (up 2.05%) and Reliance Capital (up 1.85%), whereas the losers were led by Hindustan Unilever (down 2.56%), Hero Honda (down 1.64%), L&T (down 1.26%), ACC (down 1.10%) and Wipro (down 0.91%).

The strike by workers at the Manesar plant of Maruti Suzuki India, the country's largest car maker, entered the fourth day today, and production continued to be affected.

Around 2,000 workers at the plant have been on strike since Saturday, resulting in a production loss of about 1,800 units till Monday and the value of the loss is estimated at around Rs100 crore.

Markets in Asia settled mixed with stocks in Japan paring early losses on a weakening yen against the dollar, as Japan's finance minister Yoshihiko Noda said that he would "closely watch" the currency market, indicating the government's intent to get tough against speculative yen-buying.

European Central Bank president Jean-Claude Trichet's willingness to sanction bond rollovers in Greece, helping ease concerns of a slowdown in the global economy, also supported gains in the region.

The Hang Seng fell 0.29%, the Jakarta Composite declined 0.21%, the KLSE Composite and the Straits Times shed 0.02% each and the Seoul Composite settled 0.65% lower. On the other hand, the Shanghai Composite gained 0.64%, the Nikkei 225 rose 0.67% and the Taiwan Weighted added 0.12% in trade today.

Back home, foreign institutional investors were net sellers of shares worth Rs201.78 crore on Monday, whereas domestic institutional investors were net buyers of stocks worth Rs184.99 crore.

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ED’s plea to question Hassan Ali deferred till 17th June

Accused of money laundering and multi-crore tax evasion, Mr Khan is also facing criminal cases under the Passport Act for allegedly possessing six passports from different parts of India

Mumbai: A sessions court today deferred the plea of the Enforcement Directorate (ED), seeking permission to question Pune-based stud farm owner Hassan Ali Khan for three days in a case of alleged money laundering and tax evasion, till 17th June, reports PTI.

Mr Khan, who is in judicial custody in connection with money laundering and tax evasion, is currently admitted to St George Hospital here for treatment.

In a separate development, the ED told the court that it had gone to Mr Khan's residence at Pedder Road in South Mumbai on Saturday to carry out searches but could not find anything as no one, except Mr Khan's cook, was present in the house.

ED also requested the court that it be allowed to question Mr Khan for three days as it needed to trace the source of funds in his possession while complaining that Mr Khan was not co-operating in the case.

Meanwhile, the bail petition of Mr Khan was deferred till 17th June by principal judge, Swapna Joshi, as the government has yet to appoint prosecutor in this case.

ED informed the court that it had instructed Ujjwal Nikam to appear as a special public prosecutor in the case adding that the government would soon come out with a notification in this regard.

Meanwhile, Mr Nikam, who appeared on ED's instructions, urged the court to adjourn the hearing to enable the government to issue a notification of his appointment as special public prosecutor. Thereupon, the court adjourned the matter to 17th June.

Accused of money laundering and multi-crore tax evasion, Mr Khan is also facing criminal cases under the Passport Act for allegedly possessing six passports from different parts of India.

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