Market Cues: Asian markets rally, oil rises
Stocks rose after reports showed unemployment benefit applications dropped for the fourth time in five weeks to a four-year low and a rise in building permits suggested growing confidence about homebuying.
Asian markets gained ground on Friday tracking strong gains in US markets overnight. A robust US jobs data buoyed the sentiment. The Japanese Nikkei index rose to a 6-month high as US exports are key for Japan’s growth. In US, weekly applications for unemployment benefits dropped 13,000 to a seasonally adjusted 348,000, the US Labor Department said on Thursday. The consistent decline indicates that companies are laying off fewer workers, and hiring is likely picking up further.
Oil inches up
Tensions between Iran and the West continued to weigh on energy markets as oil rose to the highest level in five weeks on Thursday. Benchmark West Texas Intermediate crude rose 45 cents to $102.24 in New York, while Brent crude, which is used to price foreign oil imported by US refineries, rose $1.08 to $120.01 in London. The price of WTI has risen about more than 3 per cent since the start of the year. The increase in Brent has been even steeper, up nearly 12 per cent.
Spectrum saga
Telecom firms have responded to telecom regulator TRAI's discussion paper on 2g spectrum auction - and there seems to be a deep divide between exiting telecom operators or incumbents and the new licencees on the issue. While the new entrants want older players to be kept out of the auction - incumbents like Bharti and Vodafone want it to be open for all to bid. Even as both these groups spar , State bank of India has written to the regulator seeking protection of bank loans in auction process
Reliance gas ouput
Oil minister S Jaipal Reddy has reportedly said that the government may have to send notice to Reliance Industries (RIL) to reduce cost recovery at its KG-D6 gas fields.According to reports, RIL has drilled fewer number of wells than planned. The ministry blames fall in output from KG-D6 fields to 34.5 million cubic meters per day instead of 70.39 mmcmd planned for now and 80 mmcmd by April. KG-D6 fields may see production drop to an all-time low of about 27 million cubic meters a day by April/May due to the entry of sand or water in the wells, a top oil ministry official said
Coal India
Coal India, world's biggest producer of the commodity, may revive plans to import the fuel to comply with Prime Minister Manmohan Singhs order to increase supplies to utilities and avoid paying penalties.The company will have to supply the coal even if they don't have domestic production and this is going to force them to import.The company is being driven into a corner to boost the power sector." One big constraint for coal india to ramp up its production would be getting environmental clearances. So they need faster clearances and PMOs intervention with the environment ministry as well to help coal india to scale its production.
Jet fuel imports
Ministry of civil aviation has written to the commerce ministry to take steps to allow direct import of Air Turbine Fuel by Indian carriers in pursuance of the decision of the group of ministers' on civil aviation. The GoM on February 7 had decided that the commerce ministry will permit direct import of ATF by or on behalf of Indian carriers directly as the actual user and on actual use basis. "The Indian carriers would have to make their own tie-ups with the suppliers having infrastructure to import ATF directly for their use," the aviation ministry said in a release.
REC plans bond sale
Rural Electrification Corporation or REC has approved raising Rs 1500 cr in debt. The company is planning a debenture sale is planned before the end of this financial year in March 2012. The company has also planned to retain oversubscription up to Rs 3,000 crore.
SC relief for NTPC
The Supreme Court has set aside Delhi High Court's order that enabled Ansaldo Caldaie Boilers India to bid for a contract to supply equipment to NTPC. Supreme Court reasoned that Ansaldo had failed to technically qualify for the supply of so-called supercritical power generation equipment. Delhi high court had halted the financial bids of NTPC's tender process which can now resume. This is a big relief for NTPC.