The local market is likely to witness a flat-to-positive opening on the back of mixed global cues. The US markets ended higher overnight on assertions that the Federal Reserve will continue with its plan to boost the economy and on good economic data. Markets in Asia turned negative after opening with marginal gains in early trade on Wednesday, on economic concerns in the region. The SGX Nifty was down 4 points at 5,955 compared to its previous close of 5,959.
Trading opened on a positive note on good cues from the global arena. Along with support from the broader indices, the market also witnessed buying in oil & gas, metal and capital goods stocks. The market received a push at noon following the announcement of better-than-expected wholesale price index (WPI)-based inflation numbers for November, taking the benchmarks further northwards. Some bit of nervousness resulted in range-bound trading in post-noon trade. The market pared some of its gains after scaling its intraday high, albeit ending in the green.
The Sensex closed the session at 19,799.19, up 107.41 points (0.55%) from its previous close. The Nifty rose 36.45 points (0.62%) to settle at 5,944.10.
The US markets ended higher on Tuesday on the Fed’s reiteration that it would continue with its economy-boosting measures. The central bank kept overnight interest rates unchanged and pledged again to buy $600 billion in Treasury debt through next June. This apart, November retail-sales data from the Census Bureau beat analysts’ forecasts, and small-business sentiment improved to its highest level in three years, according to the National Federation of Independent Business.
The Dow gained 47.98 points (0.42%) at 11,476.62. The S&P 500 added 1.13 points (0.09%) at 1,241.59. The Nasdaq rose 2.81 points (0.11%) at 2,627.72.
Markets in Asia were mostly in the red after opening with marginal gains in early trade on Wednesday on economic concerns in the region. The quarterly Tankan index of sentiment at large manufacturers dropped to 5 in December from 8 in September, the Bank of Japan said in Tokyo. A positive number means optimists outnumber pessimists. On the other hand, South Korea’s unemployment rate unexpectedly fell to a six-month low as the nation’s economic expansion encouraged manufacturers to hire more workers. The jobless rate fell to 3.2% in November from 3.6% in October, statistics showed.
The Shanghai Composite declined 0.29%, the Hang Seng was down 0.65%, the Jakarta Composite shed 0.04%, the KLSE Composite fell 0.09%, the Nikkei 225 was 0.04% lower, the Straits Times fell 0.16%, the Seoul Composite was down by 0.07% and the Taiwan Weighted fell 0.27% in early trade. The SGX Nifty was down 4 points at 5,955 compared to its previous close of 5,959.
Bharat Petroleum Corporation (BPCL) on Tuesday hiked petrol prices by about Rs2.95 a litre effective 15th December, and other state-owned oil companies IOC and HPCL will follow suit on Wednesday.
The oil ministry gave the three companies a go-ahead to raise petrol prices after international crude oil prices touched $90 per barrel.
Indian Oil Corporation (IOC), the largest fuel retailer in the country, and Hindustan Petroleum Corporation (HPCL) will do the same by an equal measure today, sources said.
The event would have brought several foreign winemakers to the country, but the industry thinks it won’t have much of an impact; probably not, as the business is already struggling due to a glut
The fourth instalment of the Indian Wine Challenge, which was scheduled to be held in Mumbai in January, has been shelved. The organisers, Indian Food and Beverages Competition Ltd, say that the event had to be cancelled because there were not enough entries.
"It is unfortunate", said Subhas Arora, president of the Indian Wine Academy. "I have been a judge for the earlier events and I can say it is a very credible, fair and certifiable competition. I think it will take another year to have its next instalment."
The three previous events-in London, New Delhi and Mumbai-had attracted many Continental and overseas winemakers and some domestic players. Apart from providing labels with good exposure, the event also aims to help consumers make informed choices regarding their vintage.
But why has interest declined this time? Mr Arora says that the recession might be the main reason. "This year, winemakers are thinking about saving money, because there is a glut. With each sample, the entrants were required to pay a certain amount. There are other excise norms to take care of as well," Mr Arora told Moneylife. On top of that, he said, many foreign competitors may have held back because the much-hyped great Indian wine boom has not happened.
There are some other factors as well. The first two events had suffered problems from complex customs and laws, and when the competition shifted to India this year, there was a huge delay in obtaining and releasing the samples. In addition, the responsibility for organising changed hands continuously, which took a toll on the event.
The first instalment was jointly organised by the chairman of the competition, Robert Joseph, and IFE India Ltd. But, IFE got dissolved soon and Mr Joseph had to partner with Informa India. Finally, Mr Joseph entered into collaboration with the IWSG Group, which hosts the International Wine and Spirits Competition annually and held a wine competition in Hong Kong last year. The fourth instalment of the Indian Wine Challenge was also to merge in the India Spirits Challenge.
How will the cancellation of the event impact Indian winemakers? "Not much, because the domestic manufacturers can sell wine without a medal," says Mr Arora. "It was mainly an event for the foreign vintage houses and winemakers, who sought to penetrate the Indian market. India is generally regarded as a tough market. The competition provided for a good gateway. Also, there are many wine connoisseurs who look forward to attending it."
This year has been tough for vini-viticulturists and wine lovers in India. With the Indian Wine Challenge scrapped, it will add another tally mark to the list of woes.
New Delhi: The government has approved eight foreign investment proposals worth Rs883.16 crore, with L&T Finance accounting for the major inflow, but deferred decision on those of Hindalco, Intel Capital and Reliance Broadcast Network, along with 11 others, reports PTI.
The government also rejected six proposals, including that of by DLF Limitless.
“Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 3 December 2010, the government has approved eight proposals of foreign direct investment (FDI) amounting to Rs883.166 crore approximately,” an official statement said today.
L&T Finance proposal entails FDI inflow of Rs641.25 crore.
Besides, the proposal of Konecranes Finance Corporation, involving FDI of Rs169 crore, has been cleared. It plans to invest in a company engaged in the financing, investment and consultancy activities in the field of manufacture of cranes.
Similarly, Tata Advanced System’s Rs42.82 crore has also been cleared. It is a subsidiary of Tata Sons and the company focuses on providing solutions for defence, homeland security and disaster management.
However, the government has deferred 14 proposals including that of Intel Capital Corporation, ABG Shipyard, Hindalco Industries, Verizon Communications India, Reliance Broadcast Network and Essar Capital Holdings (India).
Reliance Broadcast Network is the Anil Ambani Group company engaged in FM radio broadcasting. The proposal is to get foreign investment through portfolio investments or private placement of equity was deferred.
Intel Capital plans to make investment by subscribing to warrants in an investing company, while Hindalco Industries’ proposal is for issuance of partly paid up shares.
The FDI proposals of six companies have been rejected.
These include Pharmac Analytic Solutions, Asha-Kiran Shelters Foundation of Pune, Forbes Bumi Armada, Associated Broadcasting Co, Flagship Infrastructure of Mumbai and Delhi- based DLF Limitless Developers.
The other companies whose proposals have been cleared include Knowledge Investments (Mauritius), Gigant India Automotive, Catvision Products Ltd of Delhi, Elbee Express and Thane-based Alan Dick & Company (India).
Enam India Infrastructure Fund Ltd of Mauritius, which wants to bring FDI of Rs5,750 crore, has been recommended for the consideration of CCEA, as the investment involved is above Rs1,200 crore.