The News International Team
10:50am Spectrum Auction: The much awaited spectrum auction, wherein 8 companies are bidding to acquire airwaves in four bands, started today.
The auction is the biggest ever sale of 2G and 3G airwaves which may fetch the government over Rs 82,000 crore.
A total of 380.75 MHz of spectrum in three bands – the premium 900 MHz band, 1,800 MHz and 800 MHz — is put on sale besides 5 MHz in the 2,100 MHz band across 17 out of 22 telecom areas in the country.
Based on the reserve price, the government is estimated to garner over Rs 82,000 crore. Most of the spectrum put up for auction is presently held by Airtel, Vodafone, Idea Cellular and Reliance Telecom. Their licences are expiring in 2015-16.
10:35am Buzzing stocks: Cairn India is in focus today as media reports suggested that the ministry of petroleum and natural gas is set to extend the production-sharing contract onshore block at Barmer in Rajasthan by 10 years. The stock gained 0.9 percent.
Eicher Motors recovered 5 percent from day’s low to trade flat amid huge volumes after 12.8 lakh shares or 4.7 percent equity shares changed hands in 3 large block deals seen on the NSE and BSE in the price range of Rs 15,111-15,300/share. Volvo sold more than half its stake.
Nitesh Estates gained 20 percent on reports that Goldman Sachs will invest Rs 1,850 crore in JV. This JV is planning to acquire rent yielding office parks, shopping malls and luxury hotels.
Mcnally Bharat climbed 8 percent as it allotted 25 lakh shares to Rekha Jhunjhunwala at Rs 100/share on a preferential basis. Allotment price was at a 10 percent premium to yesterday’s closing price.
10:20am Reaction on rate cut: With the Government embarking on a path of qualitative fiscal consolidation and the formal adoption of inflation targeting, inflation trajectory is expected to stay benign and will aid banks in their decision making,” says Arundhati Bhattacharya, chairman, SBI.
India’s largest lender will take an appropriate call of a cut in base rate by looking at all evolving circumstances, she adds.
10:00am Market Check
The market continued to see buying interest, rising 1 percent following a surprise repo rate cut. Banking & financials, auto, realty and capital goods supported the market.
The Sensex rose 308.80 points to 29902.53 and the Nifty climbed 83.25 points to 9079.50. Two shares advanced for every share declining on the Bombay Stock Exchange.
The Reserve Bank of India slashed repo rate by 25 basis points to 7.5 percent but kept cash reserve ratio unchanged at 4 percent. Bank Nifty jumped 2 percent. ICICI Bank, HDFC, HDFC Bank, State Bank of India and Axis Bank gained 1-2 percent.
Tata Motors topped the buying list on Sensex, up 2.4 percent as US sales of Jaguar Land Rover increased 14 percent year-on-year to 6,327 units in February. FMCG major ITC also led support to the market, up 2 percent.