Market Cues: Asian markets slide on Greece bailout delay
Greece has been surviving since May 2010 on a euro 110 billion ($146 billion) bailout. Its economy shrank at an annual rate of 5 percent in the third quarter of 2011.
Asian markets fell on Thursday as investors booked profits after a three-day rally. Reports that euro zone officials considered delaying the second Greek bailout until after the country holds elections in April 2012 concerned traders. Overnight in US shares fell for a third day out of four on similar concerns. Apple shares fell 2.3 per cent on Wednesday.
Telenor
Norway’s Telenor Group made an indemnity claim against Unitech, the construction group and the joint venture partner in Uninor for cancellation of telecom licences and sought compensation for cancellation of 22 telecom licences. Telenor is looking to end the relationship with Unitech and look for a new partner in India. Unitech in its response denied any breach of warranties and accused Telenor of a violation of the confidentiality covenants of the shareholders’ agreement.
RBI relief for NRIs
RBI clarified that NRIs and persons of India origin or PIOs are not required to report to the central bank details of transactions while purchasing immovable property in India. This is likely to encourage Indian diaspora to invest in the country. The clarification follows confusion over whether Non- Resident Indians (NRIs) and Persons of Indian Origin (PIOs), like foreigners, too have to file a declaration with the Reserve Bank within 90 days from the date of acquisition of properties.
Jet fuel prices cut
State-owned oil companies today cut jet fuel prices by a marginal Rs 350 per kiloliter (to Rs 62,557 in Delhi), the second reduction in this month. The reduction comes on back of a 3 per cent cut in rates from February 1. Jet fuel constitutes around 40 per cent of an airlines' operating cost and the reduction in prices will slightly ease the burden on cash-strapped airlines.
Kingfisher Airlines losses mount
Kingfisher Airlines reported a net loss of Rs 444.3 crore for the quarter ended December 2011 in comparision to Rs 254 crore in December 2010. The company reported about 15 per cent drop in sales at Rs 1,342 crore. The passenger revenue declined 16 per cent over the year ago period with a 5 per cent cut in capacity.
Reliance gas output
Reliance Industries has told the government that natural gas production at its flagging KG-D6 fields is likely to dip to an all-time low of about 22 million cubic meters a day by 2013-14. RIL recently submitted sale profile for natural gas to be produced from eastern offshore fields to the Directorate General of Hydrocarbons (DGH) and the oil ministry, an official said. "The company has projected an output of 27.60 mmcmd from the block in 2012-13 as against current production of 34.5 mmcmd. RIL has projected that the output will further drop to 22.60 mmcmd in 2013-14," the official said.
PMO electrifies power
The prime minister’s office has directed Coal India to sign fuel supply agreements with power producers to ensure 80% supply for next 20 years for projects commissioned before March 2015. Coal India to meet additional supply either through own production or imports.