Mumbai, June 28
Indian markets were on fire today with Sensex zooming by 520 points, its biggest gain in 22 months, with energy firms RIL and ONGC leading the surge fuelled by steep hike in gas price amid hopes US Fed will not begin tapering monetary stimulus soon.

Buying across the spectrum saw all 13 sectoral indices closing with gains as FIIs were seen buying stocks after a flurry of reforms in the energy space. Overall, 1,535 stocks gained out of 2,512 traded, helping investor wealth soar by Rs 1.52 lakh crore today.

The Bombay Stock Exchange 30-share barometer resumed up and stayed in the positive zone throughout to end at 3-week high of 19,395.81, a spurt of 519.86 points or 2.75 per cent.

Previously, it had gained 567.50 points on August 29, 2011.

The NSE 50-issue Nifty flared up by 159.85 points, or 2.81 per cent, to end at two-week high of 5,842.20. Also, SX40 index, the flagship index of MCX-SX, ended 275.16 points, or 2.45 per cent higher at 11,494.35.

Tracking stocks, rupee rebounded to 59-levels after touching historic low of 60.76 earlier this week.

Government had yesterday approved near doubling of natural gas prices to $8.4 from April 1 next year and okayed setting up of a coal regulator. Last week, it allowed power producers to pass through higher imported coal prices.

Oil and gas counters were in limelight today with BPCL, IOC, GAIL, Petronet LNG, RIL, HPCL and ONGC gaining in 2.2-5.7 per cent range. Metal, capital goods, PSU, banking, auto, realty and pharma stocks attracted good buying support. Power stocks like Tata Power and NTPC too were in demand.

Asian markets cheered reports with up to 2.2 per cent rise as reports said Fed officials are of the view that asset purchases would be more aggressive if US growth signals prove to be weaker-than-expected. QE withdrawal concerns had hit Indian markets with nearly $7 billion flowing out of stocks and bonds in past one month.

Key indices in Hong Kong, Taiwan, Singapore, China and South Korea were up by 1.04 per cent to 2.26 per cent. In Japan, Nikkei 225 index jumped 3.51 per cent as a weak Yen and upbeat industrial-production data lifted market sentiment.

European stock markets were, however, trading narrowly mixed. Key indices in Germany and UK moved up by 0.08 per cent to 0.18 per cent while France's CAC eased by 0.16 per cent. — PTI

New Delhi, June 28
Aimed at infusing transparency in pricing and efficiency in mining operations of the key raw material for infrastructure industries, the Union Cabinet yesterday approved the setting up of a coal regulator, which would be put in place with a government’s executive order.

Addressing the media here today regarding the Cabinet decision taken yesterday, Finance Minister P. Chidamberam said “We would come up with an executive order to set up a coal regulator, like we did with the Pension Fund Regulatory and Development Authority (PFRDA) and the Securities and Exchange Board of India (SEBI)”.

The meeting of the Union Cabinet was chaired by Prime Minister Manmohan Singh, which also approved the introduction of Coal regulatory Authority Bill, 2013 before Parliament.

The Bill needs to go to Parliament for clearance before the body comes into existence.

However, since Parliament is not in session, the Coal Regulator is being set up immediately with the executive order. The Bill would now need to go before Parliament within six months.

The decision to set up a coal regulator has come after a after prolonged discussion spanning a year.

The decision is based on the recommendations of a nine-member Group of Ministers (GoM) headed by Chidambaram. The Cabinet had in May 2012 asked the GoM to look into the matter after inter-ministerial differences over key issues.

As per the Cabinet decision, the regulator will not have the power to decide domestic coal prices and state-owned monopoly Coal India Ltd (CIL) will continue to enjoy freedom in this regard.

Chidambaram said, “Though Coal India Ltd (CIL) would decide the pricing system, coal regulator would decide on the principles and methodology".

The authority would specify methods of testing for declaration of grades or quality of coal, monitor and enforce closure of mines, specify principles and methodologies for pricing.

A fund called “The Coal Regulatory Authority Fund” would be created and all grants, fee and charges received by the authority shall be credited to this fund, a government statement said.

The authority will only determine the terms and conditions for fixing prices, to check abuse of monopoly by any producer.

The regulator will also have no say in the allocation of coal blocks. The draft Coal Regulatory Authority Bill also has provisions to ensure the regulator does not interfere with laws related to safety in mines and the environment.

The prices of coal in the domestic market will be decided by CIL, based on the methods suggested by the regulator. The coal ministry will, however, have the final say. 

New Delhi, June 28
The All-India Consumer Price Index for Industrial Workers for May rose by two points and is now pegged at 228. On a one-month percentage change, it increased by 0.88 per cent between April and May compared with 0.49 per cent between the same two months a year 
ago, according to Labour Bureau figures released today.

"The year-on-year inflation measured by monthly CPI-IW stood at 10.68 per cent for May, 2013 as compared to 10.24 per cent for the previous month and 10.16 per cent during the corresponding month of the previous year," a Labour Ministry statement said here.

The largest upward contribution to the change in current index came from food group which increased by 1.22 per cent, contributing 1.64 percentage points to the total change. — TNS 

New Delhi, June 28
Amid delays in mine allocations in the wake of controversies shrouding the sector, Coal Minister Sriprakash Jaiswal today announced the government would allocate 14 coal blocks to state-run firms within a week.

"I am happy to announce that the coal blocks allocation to government firms (14 mines) will be completed within a week," Jaiswal told reporters here.

The development follows the government's repeated announcements to make policy for mines allotment transparent, following CAG terming potential losses of Rs 1.86 lakh crore to the exchequer on account of block allotment to 57 private firms without auction.

Jaiswal also expressed the hope that allocation of coal mines through the competitive bidding route will also not take much time.

"As far as allocation of coal mines through bidding process is concerned, it will also not take much time," the Minister added. The Minister clarified that the 14 coal blocks would be allocated to power PSUs.

Initiating the process of allocation of coal mines, the government had last year invited proposals from PSUs for allotting 17 blocks to them, mostly for captive power plants. — PTI

New Delhi, June 28
Gold prices today tumbled to a 23-month low by losing Rs 1,150 to Rs 25,650 per 10 grams in the national capital on heavy selling by stockists and investors, triggered by a steep fall in overseas markets.

All round selling by stockists on free-fall in overseas markets and investors shifting their funds to surging equities mainly pulled down the gold prices to a level last seen on August 9, 2011.

Silver also dropped by Rs 1,490 to trade below Rs 40,000 at Rs 39,010 per kg on poor offtake by jewellers and coins makers.

Traders said the sentiment dampened as gold in Singapore plunged to nearly three-year low by dipping below $1,200 an ounce on improving US economic data strengthening the case for the Federal Reserve to reduce stimulus.

Gold in overseas markets, which normally sets price trend on the domestic front, dropped $24.40 to $1,200.80 an ounce and silver by 0.05 per cent to $18.51 an ounce.

They said investors shifting their funds to surging stock prices further influenced the market sentiment.

In the national capital, gold of 99.9 and 99.5 per cent purity registered a hefty fall of Rs 1,150 each to Rs 25,650 and Rs 25,450 per 10 grams, respectively. Sovereigns declined by Rs 200 to Rs 23,800 per piece of eight grams. — PTI

BRIEFLY

Forex reserves down $2.82 bn
Mumbai: After two consecutive weeks of additions, the foreign exchange reserves dipped sharply by $2.82 billion to $287.85 billion due to a fall in currency assets, the RBI said on Friday. Foreign currency assets, a major component of forex reserves, were down by $2.66 billion to $258.43 billion for the week ended June 21. — PTI

Fiat to launch Jeep in India
Chennai: Italy-based Fiat group, which has tied up with US-based car maker Jeep, will launch the first model under the brand in the country during the last quarter of 2013 as a "completely built unit", Fiat Group Automobiles India president Nagesh Basavanhalli said. He said the company had planned to launch four new models under FIAT brand while four products were lined up under the Jeep and the Abarth model. — PTI

Novartis sells stake in Indian unit
New Delhi: Drug firm Novartis India today said its parent Novartis AG has offloaded 1.42 per cent stake in it through open market for a consideration of over Rs 25 crore to meet market regulator SEBI guidelines. The company's parent Novartis AG has sold 4,54,205 shares in the company for a total amount of Rs 25.45 crore, Novartis India said in a filing to BSE. — PTI

Exports from SEZ up 31%
New Delhi: Exports from special economic zones (SEZs) grew by about 31 per cent year-on-year to Rs 4.76 lakh crore during 2012-13. Shipments from these zones stood at Rs 3.65 lakh crore in 2011-12. Out of 389 SEZs notified, 170 are operational, Export Promotion Council for EOUs and SEZs (EPCES) said. — PTI

Crompton Greaves’ buyback offer
Mumbai: Shares of Crompton Greaves today soared by nearly 9 per cent after it said its board has approved the proposal to buy back shares worth over Rs 265 crore. Following the news, shares of the company jumped 8.92 per cent to close at Rs 87.30 on the BSE. Intra-day, the stock surged 11.47 per cent to Rs 89.35. — PTI