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Stock markets skid to near 4-month low
FM rules out rethink on Vodafone tax case
Gold imports revival to limit price fall
Sales of large tractors jump 12% in 2011-12
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Cipla mulls price cuts on more cancer drugs
Reliance cuts gas reserves estimate
Telecom honchos again warn cell tariffs may double
AI seeks bank proposals to raise $800 m in debt
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Stock markets skid to near 4-month low
New Delhi, May 8
Clearly, that effect has not lasted and the markets are now again being led by global trends.
Dinesh Thakkar, chairman & MD of Angel Broking, said correction in the markets is attributable to the concerns surrounding the eurozone. This has been an ongoing concern for global equity markets as it is a complex issue for which the ultimate solution will take an extended period of time, he said. Thakkar said the GAAR announcement on Monday was a positive and the fact remained that India is one of the most attractive emerging markets whose valuations are also reasonable and FII inflows will pick up. European markets were weak today after yesterday’s election results in France and Greece which pointed to a sentiment against the pro-austerity measures agreed upon by European countries to resolve the financial crisis. IT major TCS fell by 5.77% to Rs 1,200.35. Other losers included Infosys, ITC, L&T, Central Bank of India, Pantaloon, JP Associates, Shriram Transport Finance, GMR and Reliance Power.
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FM rules out rethink on Vodafone tax case
New Delhi, May 8 The Finance Bill, 2012 was passed in Lok Sabha after the reply by Finance Minister Pranab Mukherjee who asserted India could not become a tax haven just to attract foreign investments. The retrospective amendments in the budget to tax Vodafone’s acquisition of Hutch in India and similar deals had triggered a furore from global companies and investors but the government has stood its ground citing similar precedents in China and Britain. Its main contention has been that since the asset was in India the deal must be taxed. Mukherjee said if the UK could bring in such amendments India also has the right as it is not inferior to anyone. After the passage of the Finance Bill in Parliament, there is speculation that the government will send the tax notice to Vodafone. The liability has been estimated at US $2.2 billion. Defending the retrospective amendment which has been criticized for fear of re-opening older deals, Mukherjee said Parliament had the right to make amendments to law to correct Supreme Court judgement and would not allow a situation where a corporate would avoid paying tax here by operating from a tax haven. The retrospective amendment was brought into the budget after the Supreme Court had ruled in Vodafone’s favour. "I’d like to be guided either by the double taxation avoidance agreement or tax. There cannot be a situation that somebody will make money on an asset located in India and will not pay tax either in India or to the country of its origin by making some arrangements through tax havens”, Mukherjee said in his reply. Defending his decision to defer the General Anti Avoidance Rule (GAAR) for a year, he said, “I’ve agreed to defer, but not because of fear or apprehension. I am not afraid of any consequences.” GAAR is an anti tax evasion measure to curb use of tax havens like Mauritius but FIIs have been protesting against it.
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Gold imports revival to limit price fall
The most-traded gold for June delivery extended losses for the fourth straight session on Tuesday. The metal traded at Rs 28,830 per 10 grams, down 0.38%, after hitting a low of Rs 28,802, a level last seen on April 25. "New flows from the eurozone could strengthen the dollar and weaken gold prices," said Gnanasekar Thiagarajan, director with Commtrendz Research. He advised selling gold on rallies to Rs 28,950 for a target of Rs 28,500. The dollar, which rose Tuesday, and gold often move in opposite directions as the two compete for funds globally. — Reuters
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Sales of large tractors jump 12% in 2011-12
Chandigarh, May 8 The latest figures on the tractor industry show that the sale of large tractors has increased from just 6% of total tractor sales in 2002-04, to 12% in 2011-12. In the next year, this segment is set to grow to 15% of the total tractor sales in the country. The total tractor market in the country is estimated to be at around 525,000 units per annum. Talking to reporters here on Tuesday, Escorts Ltd CEO S. Sridhar said the large tractor segment was a fast growing segment for the industry, and also for his company. “Punjab, Haryana, Andhra and Maharashtra are the biggest markets for large tractors. Though the industry is going through a cyclical negative growth phase, demand and sales of large tractors above 50 HP have been rising. During Oct 2011-Sept 2012 we sold 6,000 large tractors out of a total of 33,000 units sold by the company,” he said. “The tractor market in India is showing a negative growth, mainly because of the erratic monsoon last year, and two successive years of the tightening of the economy. “Though we expect a stagnant growth for the remaining part of the fiscal year (till Sept 2012), we hope to see signs of resurgence during the next kharif season,” he added.
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Cipla mulls price cuts on more cancer drugs
Mumbai, May 8 He said the unexpected response to its move last week to cut the price of its generic version of Bayer's kidney and liver cancer drug Nexavar and two other drugs had prompted him to consider further such moves. "I am now sitting with my boys to see what reductions we can make in the entire range of cancer drugs," Hamied said. "We’re making some calculations about pricing, costing and other aspects," he said. Mumbai-based Cipla, best-known outside India for manufacturing low-cost anti-AIDS drugs for HIV-positive patients in developing countries, makes 23 cancer drugs. — Reuters |
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Reliance cuts gas reserves estimate
Mumbai, May 8 Gas output at RIL’s D6 block, off the east coast, has been projected to decline to 20 million standard cubic metres a day in 2014-15 from an estimated 28 mscmd this fiscal. — Reuters |
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Telecom honchos again warn cell tariffs may double
New Delhi, May 8 After asserting there could be a 100% jump in call rates if the recommendations were accepted last week, the CEOs who met Telecom Minister Kapil Sibal today said TRAI’s proposals were not in line with the ground reality and that they had informed the minister about the same. The CEOs had last week also met the minister and had told him they would provide the proof of how the call prices would double much against the claims of TRAI that there would not be much effect on the call rates if its recommendations of the spectrum pricing and auction were accepted. — TNS |
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AI seeks bank proposals to raise $800 m in debt
New Delhi, May 8 The documents, posted on Air India's website on Monday, showed that the bridge loan will not be covered by the federal guarantee, but the aircrafts or other equivalent means can be used as security. The government had last month extended a lifeline to Air India, which is on course to receive a $5.8 billion bailout by 2020. Its 19 lenders are also restructuring $4.2 billion in loans. — Reuters |
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Generic drugmaker Cipla is looking into cutting prices of more cancer drugs after it slashed the prices last week of three treatments by up to 75 percent, Y.K. Hamied, the company's chairman & MD, said in an interview.
There was heavy selling across the board including sectors like information technology, banking, infrastructure and capital goods. The global weakness seems to be the dominant factor as only yesterday the markets had rallied 400 points following Finance Minister Pranab Mukherjee’s announcement that General Anti-Avoidance Rule (GAAR) provisions introduced in the fiscal 2013 Budget are being deferred for a year, which had been a overhang on the Indian markets.
The Bombay Stock Exchange benchmark index Sensex fell sharply by 366 points to close or 2.17% to 16,546 points, a level last seen on January 18. The broadbased NSE Nifty dropped 114.20 points, or 2.23%, to 4,999.95, below the psychologically important 5,000 mark.
Mumbai, May 8