SECTORS ALERT – 16.06.2014
* AUTOMOBILES: German luxury car makers are driving out their Japanese peers in
the Indian market; Honda, Nissan pull out luxury cars from India as BMW, Merc, Audi
rule the roost.General Motors is working on a project codenamed "Amber" a new
platform from ground-up that will build atleast three new car models to give aboost to its
sagging sales in India and other emerging markets. Price of cars and two-wheelers may
go up by four to six percent in July as the tenure of excise duty announced in the interim
budget in February lapses on Jun 30.
* AVIATION: Airbus Group NV said it will keep an 82-plane order from defunct
KINGFISHER AIRLINES on its books while there is still a chance that the Indian carrier
might find a buyer which would require new aircraft. Competition Commission of India
is prbing whether cartelisation among airlines is influencing the movement of ticket
prices and sharp fluctuation in air fares.
* BANKING: Asset reconstruction company (India), expects to acquire non-performing
assets worth about 50-bln-rupees in this financial year.
* CAPITAL GOODS: Mitsubishi Heavy Industries is offering to buy 10% stake in
Alstom as it seeks to sweeten a joint bid with Siemens toi acquire some of
the French firm's energy assets. France expects General Electric Company to boost its bid
for Alstom SA's power unit in response to a potential joint offer from Siemens AG and
Mitsubishi Heavy Industries.
* CLIMATE: The India Meteorological Department said southwest monsoon rainfall
remained weak, with the all-India Jun 1-13 rains at 27.6 mm, 45% below normal.
* DIVIDEND: The government may raise the dividend receipt target from state run firms
and link it with their ability to achieve capital expenditure plans, a move aimed at
discouraging 'idle money' at these firms and generating more revenues to contain the
fiscal deficit.
* DISINVESTMENT: The finance ministry has asked the department of disinvestments
to complete the groundwork for stake sales in state-owned companies soon after the
budget to take advantage of bull phase in the stock market.
* ENERGY: Solar Energy Corp of India plans to auction contracts to build 100 MW of
solar-thermal capacity. A high-level government panel has proposed that the government
should exempt liquefied natural gas from 5% import duty. Petroleum MinisterDharmendra Pradhan said the price of domestic LPG cylinders will not be increased and
the number of subsidised refills will continue. The petroleum and natural gas industry is
working on a proposal to remove bottlenecks in the way of existing production-sharing
contracts to make the hydrocarbon sector more investor friendly.
The power ministry wants state regulators to regularly revise electricity tariff so that there
are no financial outages for generation companies or distribution utilities. The next round
of NELP would wait until the problems that plagued the earlier editions are fixed. Plans
are underway to form a pair of state owned joint ventures that will oversee the
construction of renewable energy projects, contributing to India's energy security and
reducing reliance on conventional sources of fuel such as coal.
* EXCHANGES: Although the market has been demanding a complete withdrawal of
securities transaction tax and commodities transaction tax, the government may initially
settle for their removal only on delivery-based trades.
* FOOD PROCESSING: Food Processing Industries Minister Harsimrat Kaur Badal said
that a food map being developed by the ministry would help identify food clusters in the
country to get a better insight of crop strength, production, and food processing potential.
* FOREIGN DIRECT INVESTMENT: The Federation of Indian Chambers of
Commerce and Industry has welcomed the ministry of commerce and industry's proposal
to enhance FDI in defence beyond 26% in exceptional cases.
* INFORMATION TECHNOLOGY: The sector, known for its generous pay-0packets
and perks, is tightening its purse strings; Employees expenses are under companies' lens
as they seek to improve margins so as to invest in new technology and services.
* METALS AND MINING: ArcelorMittal opened its first steel making facility in China
through a joint venture on Sunday.
* REGULATORY: The corporate affairs ministry has said foreign nationals who are
shareholders or promoters of a company are not required to furnish details of their
permanent account numbers.
* RETAIL: Wal-Mart Stores Inc will launch wholesale e-commerce operations in
Hyderabad and Lucknow next month before expanding to other cities where it has a
physical presence in January. Cafe Coffee Day is learnt to have initiated talks with
investment banks for an initial public offer.
* TATA GROUP: Various firms of diversified Tata Group have lined up capex of a total
of over a 650 bln rupees for the current financial year.
* TELECOM: The Telecom Commission is understood to have granted in-principle
approval to full mobile number portability in the country, while deferringdecision on the crucial issue of spectrum sharing among operators. Telenor ASA has sought Indian government's nod to invest 7.80 bln rupees to acquire a 100% stake in its Indian mobile services unit, Uninor. Data subscribers in India are likely to grow an annualised average of 25% to reach 519 mln by 2017-18 (Apr-Mar) driven by falling handset prices and rise in smartphone penetratrion .
Even as department of Telecom is mulling allowing 3G spectrum sharing under new
licensing regime, it is against the 3G intra-circle roaming pact signed by operators such as
BHARTI AIRTEL, Vodafone and IDEA CELLULAR, which are operating under old
permits
* AUTOMOBILES: German luxury car makers are driving out their Japanese peers in
the Indian market; Honda, Nissan pull out luxury cars from India as BMW, Merc, Audi
rule the roost.General Motors is working on a project codenamed "Amber" a new
platform from ground-up that will build atleast three new car models to give aboost to its
sagging sales in India and other emerging markets. Price of cars and two-wheelers may
go up by four to six percent in July as the tenure of excise duty announced in the interim
budget in February lapses on Jun 30.
* AVIATION: Airbus Group NV said it will keep an 82-plane order from defunct
KINGFISHER AIRLINES on its books while there is still a chance that the Indian carrier
might find a buyer which would require new aircraft. Competition Commission of India
is prbing whether cartelisation among airlines is influencing the movement of ticket
prices and sharp fluctuation in air fares.
* BANKING: Asset reconstruction company (India), expects to acquire non-performing
assets worth about 50-bln-rupees in this financial year.
* CAPITAL GOODS: Mitsubishi Heavy Industries is offering to buy 10% stake in
Alstom as it seeks to sweeten a joint bid with Siemens toi acquire some of
the French firm's energy assets. France expects General Electric Company to boost its bid
for Alstom SA's power unit in response to a potential joint offer from Siemens AG and
Mitsubishi Heavy Industries.
* CLIMATE: The India Meteorological Department said southwest monsoon rainfall
remained weak, with the all-India Jun 1-13 rains at 27.6 mm, 45% below normal.
* DIVIDEND: The government may raise the dividend receipt target from state run firms
and link it with their ability to achieve capital expenditure plans, a move aimed at
discouraging 'idle money' at these firms and generating more revenues to contain the
fiscal deficit.
* DISINVESTMENT: The finance ministry has asked the department of disinvestments
to complete the groundwork for stake sales in state-owned companies soon after the
budget to take advantage of bull phase in the stock market.
* ENERGY: Solar Energy Corp of India plans to auction contracts to build 100 MW of
solar-thermal capacity. A high-level government panel has proposed that the government
should exempt liquefied natural gas from 5% import duty. Petroleum MinisterDharmendra Pradhan said the price of domestic LPG cylinders will not be increased and
the number of subsidised refills will continue. The petroleum and natural gas industry is
working on a proposal to remove bottlenecks in the way of existing production-sharing
contracts to make the hydrocarbon sector more investor friendly.
The power ministry wants state regulators to regularly revise electricity tariff so that there
are no financial outages for generation companies or distribution utilities. The next round
of NELP would wait until the problems that plagued the earlier editions are fixed. Plans
are underway to form a pair of state owned joint ventures that will oversee the
construction of renewable energy projects, contributing to India's energy security and
reducing reliance on conventional sources of fuel such as coal.
* EXCHANGES: Although the market has been demanding a complete withdrawal of
securities transaction tax and commodities transaction tax, the government may initially
settle for their removal only on delivery-based trades.
* FOOD PROCESSING: Food Processing Industries Minister Harsimrat Kaur Badal said
that a food map being developed by the ministry would help identify food clusters in the
country to get a better insight of crop strength, production, and food processing potential.
* FOREIGN DIRECT INVESTMENT: The Federation of Indian Chambers of
Commerce and Industry has welcomed the ministry of commerce and industry's proposal
to enhance FDI in defence beyond 26% in exceptional cases.
* INFORMATION TECHNOLOGY: The sector, known for its generous pay-0packets
and perks, is tightening its purse strings; Employees expenses are under companies' lens
as they seek to improve margins so as to invest in new technology and services.
* METALS AND MINING: ArcelorMittal opened its first steel making facility in China
through a joint venture on Sunday.
* REGULATORY: The corporate affairs ministry has said foreign nationals who are
shareholders or promoters of a company are not required to furnish details of their
permanent account numbers.
* RETAIL: Wal-Mart Stores Inc will launch wholesale e-commerce operations in
Hyderabad and Lucknow next month before expanding to other cities where it has a
physical presence in January. Cafe Coffee Day is learnt to have initiated talks with
investment banks for an initial public offer.
* TATA GROUP: Various firms of diversified Tata Group have lined up capex of a total
of over a 650 bln rupees for the current financial year.
* TELECOM: The Telecom Commission is understood to have granted in-principle
approval to full mobile number portability in the country, while deferringdecision on the crucial issue of spectrum sharing among operators. Telenor ASA has sought Indian government's nod to invest 7.80 bln rupees to acquire a 100% stake in its Indian mobile services unit, Uninor. Data subscribers in India are likely to grow an annualised average of 25% to reach 519 mln by 2017-18 (Apr-Mar) driven by falling handset prices and rise in smartphone penetratrion .
Even as department of Telecom is mulling allowing 3G spectrum sharing under new
licensing regime, it is against the 3G intra-circle roaming pact signed by operators such as
BHARTI AIRTEL, Vodafone and IDEA CELLULAR, which are operating under old
permits
