- If you missed our coverage, here are the top 10 stories of the day.
- Aditya Birla Nuvo to acquire control of Pantaloon’s fashion stores
- Telenor writes down Indian assets
- Vodafone warns of tariff hike, says spectrum shift will cost Rs 10,000 crore
- TCS, Infosys drive Sensex 131 points higher, Maruti falls
- Telecom Commission seeks clarity on 2G spectrum auction price
- Moody’s reviews ICICI, HDFC Bank, Axis Bank for downgrade
- Apple, Google could join Dow index: Barron's
- Earnings Central: GCPL, Dabur, Adidas, Public sector banks
- The good and the bad of a fuel price hike
- Maruti pools efforts with vendors to cut costs
1) Aditya Birla Nuvo to acquire control of Pantaloon’s fashion stores
Aditya Birla Nuvo, a listed conglomerate, will acquire a controlling 50 per cent stake in Pantaloon Retail’s fashion stores operating under the brand name ‘Pantaloon’. The A V Birla group has its own retail business under Madura Garments. The combined entity will have turnover of close to Rs 4,000 crore and retail space of 3.6m sq ft, according to statements independently issued by the two groups.
Pantaloon Retail, the Kishore Biyani-controlled company, will demerge the business into a separate entity called Pantaloon’s Format. Shareholders of Pantaloon Retail will get shares of the new entity through the demerger process. (Read More)
2) Telenor writes down Indian assets
Norway's Telenor has written down its remaining fixed and intangible assets in India amounting to 3.9 billion Norwegian kroner, or about Rs 3,580.2 crore, the firm said in a communication to the Oslo Stock Exchange on Monday. A write down is a downward revision in the value of an asset in the balance sheet of a company. Telenor further said that following the Supreme Court's ruling in February to cancel Uninor's licences and the recent recommendations from the Telecom Regulatory Authority of India (TRAI) regarding the 2G license re-auction, the “uncertainty has increased significantly”. (Read More)
Sigve Brekke, Telenor Group Executive Vice President and Head of Telenor Asia operations, issued a similar statement in New Delhi, saying "If these recommendations become policy, then the Government of India will be forcing Telenor Group to exit.” (Watch Interview)
3) Vodafone warns of tariff hike, says spectrum shift will cost Rs 10,000 crore
Vodafone India has said a shift in the airwave frequencies allotted to it to a higher band will put an additional cost burden of around Rs 10,000 crore on the company, which will then be passed on to consumers, leading to a tariff hike. Another GSM service provider, Idea Cellular, has said that it will have to write off a Rs 17,000 crore investment that the company has made in its network, if spectrum refarming takes place. (Read More)
The Telecom Regulatory Authority of India (TRAI), in its latest recommendation on auction of spectrum, has recommended that the service provider using 800 MHz and 900 Mhz spectrum band (being used for 2G CDMA and GSM service, respectively) to transmit signals for mobile and other wireless services should be shifted to higher frequency band of 1800 MHz after the licences come up for renewal.
4) TCS, Infosys drive Sensex 131 points higher, Maruti falls
The Sensex gained 0.76 per cent or 131.47 points at 17,318.81 while the broader Nifty index advanced 39 points or 0.75 per cent to 5,248. The outperformance in IT stocks drove Indian equities higher Monday.
Also Read: Five reasons why ICICI Bank shares are rising
5) Telecom Commission seeks clarity on 2G spectrum auction price
The Telecom Commission is seeking clarity from the Telecom Regulatory Authority of India (TRAI) on some of its 2G airwaves auction proposals including the base price, which mobile carriers want to be cut by 80 per cent. (Read More)
Meanwhile, the department of telecommunications (DoT) is planning for a mid-June kick-off of the auction of second generation (2G) telecom licences and the spectrum, according to R Chandrasekhar, secretary of DoT. (Read more)
Also Read: Telecom regulator launches website for consumers' complaints
6) Moody’s reviews ICICI, HDFC Bank, Axis Bank for downgrade
Global ratings agency Moody's Investors Service said Monday it has placed on review India's three top private sector lenders ICICI Bank, HDFC Bank and Axis Bank for possible downgrade. The review is mainly because of lower sovereign ratings of India. Standalone credit assessment ratings of these lenders are currently positioned above India's sovereign debt rating. (Read More)
The agency also said that LIC's rating needs to reflect the risk that the company shares with the Indian sovereign. (Read More)
Also Read: RIL's gas survey rejection credit negative, says Moody's
7) Apple, Google could join Dow index: Barron's
The Dow Jones Industrial Average stock index is due for an overhaul, and new-tech giants like Apple Inc and Google have good reason for joining the elite 30 companies at the expense of old-industry stalwarts like Alcoa Inc, Barron's said on Sunday. The business weekly said the Dow has no timetable, but a new company or two could be added in the next year. (Read More)
Meanwhile, a published report says Apple Inc. uses subsidiaries in Ireland, the Netherlands and other low-tax nations as part of a strategy that enables the technology giant to cut its global tax bill by billions of dollars every year. (Read More)
8) Earnings Central: GCPL, Dabur, Adidas, Public sector banks
Household goods maker Godrej Consumer Products Ltd (GCPL) on Monday posted a 36 per cent increase in consolidated net profit for the fourth quarter ended March 31, 2012 at Rs 192.65 crore. Net sales in the fourth quarter of 2011-12 increased 30.85 per cent. (Read More)
A string of public sector banks also reported numbers on Monday. Shares of Bank of India (4.8 per cent) and Vijaya Bank (3.4 per cent) rose on strong numbers. However, Oriental Bank of Commerce (-4.7 per cent) dived post weak numbers. Net profit declined 20 per cent and asset quality deteriorated in the March quarter.
Adidas, Exide, Dabur were some of the other companies that reported earnings for January-March quarter.
Also Read: Bharti Airtel: Key factors to watch before Q4 earnings
9) The good and the bad of a fuel price hike
Sooner or later, a fuel price hike looks inevitable in India, and that carries both good and bad news for investors.
Raising fuel prices would improve the government's fiscal standing, and give foreign investors some hope that India is getting serious about its woeful finances. However, the trade-off would inevitably come in the form of higher inflation. (Read More)
10) Maruti pools efforts with vendors to cut costs
In its drive to cut costs, Maruti Suzuki India is expanding the basket of raw materials sourced jointly with vendors, apart from hedging forex together to avoid adverse currency movements.
The country's largest car maker, which has already hedged 40 per cent of total exposure of 100 billion yen (over Rs 6,530 crore) together with vendors for the ongoing fiscal, is now planning to source plastics together in order to reduce costs. (Read More)
Also Read: 5 reasons why Maruti shares are down
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