Market Cues: Asian shares rally, Supreme court verdicts and more
Hero MotoCorp has sold 5,20,000 units in January 2012. While that is a 12% jump in sales annually, sales are actually down 3% on a monthly comparison.
Asian stocks are gaining for the third day on Thursday on signs that global manufacturing is strengthening. The MSCI Asia Pacific Index has advanced 0.8 percent. Asian gains followed an overnight rally in US markets after an upbeat global manufacturing data boosted sentiment. Greece also neared a long-delayed deal with private creditors. US manufacturing grew at the fastest pace since June 2011, according to data from the Institute for Supply Management.
Supreme Court
The Supreme Court is expected to deliver three judgments on issues arising out of the huge swindle in the allocation of telecom spectrum in 2008. The SC bench will decide the petition of Prashant Bhushan's demanding cancellation of 121 2G licences that were found illegal by the Comptroller and Auditor General. The CAG audit had found that all licences were issued in violation of several laws. The licences classified as illegal include those which went to Swan, Unitech, Shyam Telecom and others.
Chidambaram
A bench of Justices GS Singhvi and AK Ganguly, who have monitored investigations into the 2G scam, will deliver a verdict on Janata Party president Subramanian Swamy's petition seeking a CBI probe into the alleged role of home minister P Chidambaram in the spectrum scam. Subramanian Swamy has alleged that Chidambaram, then the finance minister, could have prevented jailed former telecom minister A Raja from giving away spectrum at throwaway prices to select companies, but chose not to do so.
Disinvestment
With the fiscal deficit breaching 90 per cent of the Budget target in nine months, the Government is all set to move ahead with divestment in ONGC and BHEL within this fiscal. An Empowered Group of Ministers (EGoM) is scheduled to meet on Thursday to take a call on the modus operandi and timing of offloading equity in both companies.The EGoM is likely to consider various options, including offer for sale of shares through stock exchanges, before giving the final timeline. The Government wants to offer 5 per cent each in ONGC and BHEL.
Indian Oil
Cash-strapped Indian Oil Corporation will have to pay over Rs 979 crore in unpaid entry tax to Uttar Pradesh government in the next two weeks after the Supreme Court asked the company to deposit half of the unpaid liability in cash. IOC had challenged the Uttar Pradesh government decision to levy a $ 5.78 per barrel entry tax on crude oil the company imported into the state for processing at its refinery at Mathura in the Allahabad High Court.
Hero Honda sales
The year has begun on a great note for autos. The sales numbers for January 2012 have been robust across the industry for major players. Hero MotoCorp has sold 5,20,000 units in January 2012. While that is a 12% jump in sales annually, sales are actually down 3% on a monthly comparison.
Sebi guidelines
Capital market regulator SEBI on Wednesday notified new rules for private placement of shares to institutional investors through a new window called the Institutional Placement Programme (IPP). This is likely to kickstart the government's stalled disinvestment programme, including three big-ticket stake sales in ONGC, SAIL and BHEL, which can raise a combined Rs 22,000 crore for the government. As per the new norms for Institutional Placement Programme (IPP) of shares, even the companies would be allowed to issue fresh equity to institutional investors to dilute stake of promoters.The issue, according to the norms, would remain open for a maximum of 2 days and the aggregate demand schedule would have to be displayed by the stock exchanges without disclosing the price.