The market is likely to edge lower in opening trade on weak Asian stocks. Trading of S&P CNX Nifty futures on the Singapore stock exchange indicates a fall of 21.50 points at the opening bell.
Telecom stocks will be in focus after the government on Wednesday, 15 February 2012, unveiled some points of a new telecommunications policy, including separating licenses from bandwidth and easing mergers and acquisition rules. Communications Minister Kapil Sibal said that the government has decided to allow mergers and acquisitions where the resultant entity won't have a market share of more than 35% or over 25% of bandwidth in a telecom service area. Operators will also now have to pay a unified license fee across all telecommunication services at 8% of adjusted gross revenue. Telecom operators currently pay 6%-10% of their revenue as license fees for basic mobile services, depending on the areas they operate in.
The new telecom policy comes as the government tries to clean up the telecom sector following allegations of large-scale rigging in a sale of licenses and bandwidth in 2008. The Supreme Court recently canceled all the 122 licenses allotted without auction since 2008.
Airline stocks will be in focus as state-owned oil marketing companies on Wednesday, 15 February 2012, reduced jet fuel prices marginally. The price of aviation turbine fuel (ATF), or jet fuel, in Delhi was cut by Rs 350.70 per kilolitre (kl), or 0.5%, to Rs 62,557.12 per kl. The reduction comes on back of a 3% cut in rates effected from 1 February 2012. PSU OMCs revise jet fuel prices on the 1st and 16th of every month, based on the average international price in the preceding fortnight.
Key benchmark indices edged higher for the third straight trading session on Wednesday, 15 February 2012 as world stocks rose. The BSE Sensex jumped 353.84 points or 1.98% to settle at 18,202.41, its highest closing level since 1 August 2011.
Foreign institutional investors (FIIs) bought shares worth a net Rs 1838.85 crore on Wednesday, 15 February 2012, as per provisional data from the stock exchanges. FIIs have bought shares worth a net Rs 11427.53 crore in first 11 trading sessions this month, as per provisional data from the stock exchanges. The inflow this month comes on the top of heavy purchases last month. FIIs bought shares worth a net Rs 10357.70 crore in January 2012, as per data from Securities & Exchange Board of India (Sebi).
The wholesale price index (WPI) rose a slower-than-expected 6.55% in January 2012 from 7.47% rise in December 2011, government data showed on Tuesday, 14 February 2012. The annual reading for November 2011 was revised upwards to 9.46% from 9.11% reported earlier.
Finance Minister Pranab Mukherjee will present the annual budget for 2012/13 on 16 March 2012, while the railways budget will be presented on 14 March 2012. The budget session of parliament will start on 12 March 2012, Pawan Kumar Bansal, minister of parliament affairs, said recently. The government will present on March 15 the Economic Survey for 2011/12, a document on the state of economy prepared by the economic division in the ministry of finance. The annual budget is usually presented on the last working day of February. However, the budget has been delayed this time due to the ongoing assembly polls. Polling for assembly elections in five states concludes in early March 2012.
Reports indicate that the finance ministry is considering a proposal to increase excise duty from 10% to 12%, although still lower than the level before the 2008 financial crisis. The move is aimed at helping the government improve its fiscal situation but it is expected to push up the cost of almost all manufactured goods from food products to consumer durables and automobiles.
Asian stocks declined on Thursday as European officials delayed a decision on a 130-billion euro ($169 billion) bailout for Greece until at least 20 February 2012. Key benchmark indices in Taiwan, China, South Korea, Hong Kong, Indonesia, Singapore and Japan were down by between 0.07% to 1.08%.
US stocks fell on Wednesday after the release of minutes of the Federal Reserve's meeting last month showed policy makers were divided on additional asset purchases to spur economic growth. The Dow Jones industrial average dropped 97.33 points, or 0.76%, to 12,780.95. The Standard & Poor's 500 Index lost 7.27 points, or 0.54%, to 1,343.23 and the Nasdaq Composite index fell 16 points, or 0.55%, to 2,915.83.
Gross domestic product across the 17-nation euro zone contracted by 0.3% in the final three months of 2011 compared to the previous quarter, the European Union statistics agency Eurostat said in a preliminary estimate released Wednesday.
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