Indian share markets open firm

Mon, 6 Aug 09:30 am

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All Asian stock markets have opened the day on a firm note with markets in Hong Kong (up 2.0%), Japan (up 1.2%) and South Korea (up 2.0%) leading the gains in the region. The Indian share market indices have also opened the day on a positive note. All sectoral stocks are trading in the green led by metal and banking sector.

The Sensex today is up by around 160 points (0.9%) and the NSE-Nifty is up by around 50 points (0.9%). The Mid and Small cap stocks are trading in the green with the BSE Mid Cap and BSE Small Cap indices up by around 0.1% and 0.7% respectively. The rupee is trading at Rs 55.27 to the US dollar.

Telecom stocks have mainly opened on a firm note led by ITI Ltd and Reliance Communications. As per a leading financial daily, mobile phone companies intend to drag Government to court over recent policy decisions regarding spectrum auctions. The development could delay the spectrum sale process. As per the director-general of the Cellular Operators Association of India (COAI) , the industry body representing the GSM telecom companies like Bharti Airtel, Vodafone and Aircel is looking at legal options regarding as many as five key policy decisions linked to the spectrum sale. These include discrimination in terms of payment for airwaves secured in the auctions and spectrum usage charge between GSM and CDMA companies. Idea Cellular also plans to approach the courts separately over the government's decision to limit the spectrum sale to a maximum of 13.75 MHz in every region. It could lead to chances of only two mobile phone companies winning back their cancelled permits. Earlier in February, the Supreme Court had cancelled licences of nine operators in February and directed the government to issue fresh permits through an auction.

Oil and Gas stocks have opened mainly in green led by Castrol and Reliance Industries Ltd. As per a leading financial daily, Reliance Industries Ltd. has agreed to oil minister Mr. Jaipal Reddy's demand to share the accounts of KG D6 with the national auditor under the terms of the production sharing contract (PSC) ahead of a crucial meeting of the block's management committee. In return, the company has been assured that the Government will speed up approval of various proposals in four blocks including KG D6. After a year of tension between oil ministry and RIL, the management committee (MC) of RIL'S KG-D6 is scheduled to consider commercial viability of the three new gas discoveries on Tuesday. It is important to note here that the Government has been blaming RIL for the sharp fall in D6 output while company says production fell because of geological complexities. The meeting will consider "declaration of commerciality" of the D29, D30 and D31 discoveries in the KG-D6 block, which were submitted for government's approval in February 2010. The company can develop the fields only after this approval.