12 May 2010 Closing Market Updates

12 May 2010 Closing Market Updates  15:31


At the opening, market was trading weak as IIP data was expected.
The industrial productivity number for March has come in at 13.5% as compared to 15.1% month-on-month, reports CNBC-TV18. For FY10, the Index of Industrial Productivity stood at 10.4% as against 2.8%.
After that market plunged, Nifty made a day low of 5098 and again closed positive at 5154 gaining 17.85 points as CAC and DAX were trading positive.Sensex closed at 17180.11 with 38.58 points of gain.
Among the BSE Sectoral Indices, HC index was the top gainer by 1.57% and Teck index was the lead loser by 0.60%
Kotak bank was the top gainer in Nifty50 stocks and closed 2.97% higher at 768.50 while Bharti Airtel was the top loser by 7.97% and closed at 262.
Today 516 stocks gained whereas  778 stocks declined on NSE.


Something about 2G :

TRAI’s 2G recommendations ‘shocking’: Bharti
The country’s largest wireless operator by subscribers Bharti Airtel has come out strongly against the recommendations of Telecom Regulatory Authority of India (TRAI) for 2G pricing, saying that the suggestions are shocking, arbitrary, and retrograde.
In far reaching recommendations, which can reshape the telecom sector, telecom regulator, TRAI on Wednesday recommended pricing of 2G spectrum along the lines of faster 3G services and tweaked the merger norms between firms. Bharti said TRAI’s recommendations overturn all existing policies for the last 15 years and are against global norms. The recommendations are designed to punish efficient and performing companies, it said, and tailor made to favour select operators.
Telecom biggies like Bharti Airtel or global major Vodafone may soon have to fork out huge sums of money for the spectrum they are using. The telecom regulator has recommended pegging the price of existing spectrum to 3G spectrum prices. According to its formula, spectrum beyond 6.2 MHz in GSM and 5 MHz in CDMA will be priced. Spectrum in the 1800 MHz band will cost the same as 3G, while spectrum in the 900 MHz band will cost 1.5 times the price of 3G. There will be a cap of 8 MHz of spectrum per operator. In Delhi and Mumbai the cap will be 10 MHz.
Also, the existing operators will need to pay onetime fee. For spectrum between 6.2 to 8 MHz the fee will be equal to 3G prices and for spectrum above 8 MHz the price will be 1.3 times the price of 3G. Clearly operators are not happy, as they feel that high prices of 2G and 3G spectrum could impact tariffs and their balance sheets.


March IIP :
Capital goods saw muted growth of 27.4% versus 44.4% in February. It was a similar story for the manufacturing and mining sector. Both sectors grew at 14.3% (16%) and 11% (12.2%), respectively.
Consumer durables stole the limelight with a 32% growth as against 29.9% in February. It was a 10.1% (8.4%) growth for basic goods, while electricity sector saw a 7.7% (6.7%) growth.