SECTORS ALERT – 22.05.2014
* AVIATION: Singapore Airlines has said it will not charge premium fares from
passengers flying on the Airbus A380, which it will press into service on
flights to Mumbai and Delhi on May 30. * AUTOMOTIVE: Japan's Honda Motor Co cut its forecast for India's two-wheeler
market, saying it would probably expand to 20-25 mln units by 2020, lower than its
earlier projection of 30 mln.
* BULLION: Reserve Bank of India has eased norms for grant of gold to jewellers and
has allowed some star trading houses to import the metal the under 20:80 scheme.
* E-COMMERCE: Snapdeal has completed a new round of equity financing of $100 mln
from Temasek, BlackRock, Myriad, Premji Invest and Tybourne.
* ECONOMY: While keeping its forecast for India's 2014-15 (Apr-Mar) economic
growth unchanged at 5.6%, Citi Research said the change in government could help boost
growth, but a poor monsoon could offset this.
* GOVERNMENT: Finance Secretary Arvind Mayaram met officials of some state- owned companies to review their capital expenditure plans and prepare ground for the
new finance minister who will possibly take charge next week. Cabinet Secretary Ajit
Seth met senior officials of various departments, including the agriculture ministry and
the Department of Economic Affairs, to assess the price situation prevalent in the
country. Finance Secretary Arvind Mayaram is likely to hold a meeting to review the
long-pending Goods and Services Tax bill and the Direct Taxes Code bill, a ministry
official said.
* INFLATION: India's Consumer Price Index inflation is likely to ease slightly in May to
8.3%-8.5%, consultancy Dun & Bradstreet said.
* INFRASTRUCTURE: The ministry of road, transport and highways has said it would
award 7,000 km of road projects in the current financial year.
* PHARMACEUTICALS: The Indian drug pricing regulator is planning to lower prices
of expensive medicines used for treating cancer, HIV, diabetes, cardiovascular diseases,
malaria and tuberculosis. India will spend 30 bln rupees over the next three years to
double the number of drug inspectors in order to meet global manufacturing standards.
* REGULATORY: Activity in the primary corporate bond market is beginning to pick up
after the Ministry of Corporate Affairs clarified that non-banking finance companies are
exempt from the mandatory debenture redemption ratio norm. The RBI has deferred the
implementation of the Aadhar-linked payment plan, and has asked banks to examine
technical difficulties of the proposed system and the timeframe to implement it.
* RETAIL: UK retailer Tesco PLC and Tata Group company Trent will go ahead with
expansion plans in Maharashtra and Karnataka, despite policy uncertainty.
* TELECOM: The Department of Telecommunications is looking at a complete overhaul
of the regulatory framework that governs the Indian telecom sector.
Loop Mobile Managing Director and Chief Executive Officer Sandip Basu is said to have
quit following BHARTI AIRTEL's deal to take over the company.
* AVIATION: Singapore Airlines has said it will not charge premium fares from
passengers flying on the Airbus A380, which it will press into service on
flights to Mumbai and Delhi on May 30. * AUTOMOTIVE: Japan's Honda Motor Co cut its forecast for India's two-wheeler
market, saying it would probably expand to 20-25 mln units by 2020, lower than its
earlier projection of 30 mln.
* BULLION: Reserve Bank of India has eased norms for grant of gold to jewellers and
has allowed some star trading houses to import the metal the under 20:80 scheme.
* E-COMMERCE: Snapdeal has completed a new round of equity financing of $100 mln
from Temasek, BlackRock, Myriad, Premji Invest and Tybourne.
* ECONOMY: While keeping its forecast for India's 2014-15 (Apr-Mar) economic
growth unchanged at 5.6%, Citi Research said the change in government could help boost
growth, but a poor monsoon could offset this.
* GOVERNMENT: Finance Secretary Arvind Mayaram met officials of some state- owned companies to review their capital expenditure plans and prepare ground for the
new finance minister who will possibly take charge next week. Cabinet Secretary Ajit
Seth met senior officials of various departments, including the agriculture ministry and
the Department of Economic Affairs, to assess the price situation prevalent in the
country. Finance Secretary Arvind Mayaram is likely to hold a meeting to review the
long-pending Goods and Services Tax bill and the Direct Taxes Code bill, a ministry
official said.
* INFLATION: India's Consumer Price Index inflation is likely to ease slightly in May to
8.3%-8.5%, consultancy Dun & Bradstreet said.
* INFRASTRUCTURE: The ministry of road, transport and highways has said it would
award 7,000 km of road projects in the current financial year.
* PHARMACEUTICALS: The Indian drug pricing regulator is planning to lower prices
of expensive medicines used for treating cancer, HIV, diabetes, cardiovascular diseases,
malaria and tuberculosis. India will spend 30 bln rupees over the next three years to
double the number of drug inspectors in order to meet global manufacturing standards.
* REGULATORY: Activity in the primary corporate bond market is beginning to pick up
after the Ministry of Corporate Affairs clarified that non-banking finance companies are
exempt from the mandatory debenture redemption ratio norm. The RBI has deferred the
implementation of the Aadhar-linked payment plan, and has asked banks to examine
technical difficulties of the proposed system and the timeframe to implement it.
* RETAIL: UK retailer Tesco PLC and Tata Group company Trent will go ahead with
expansion plans in Maharashtra and Karnataka, despite policy uncertainty.
* TELECOM: The Department of Telecommunications is looking at a complete overhaul
of the regulatory framework that governs the Indian telecom sector.
Loop Mobile Managing Director and Chief Executive Officer Sandip Basu is said to have
quit following BHARTI AIRTEL's deal to take over the company.
