The News International Team
9:50 am Buzzing: Shares of aviation stocks are active on buyers’ radar hoping that the Government is likely consider new norms for flying international. Jet Airways and SpiceJet were up 3-4 percent intraday on Monday as the government may move a Cabinet note soon on scrapping the current regulations allowing international operations for domestic airlines and replacing them with “simple and clear” norms.
Official sources today said the existing norms, popularly known as 5/20 rule and which are part of the revised draft Civil Aviation Policy, allow only those domestic carriers fly abroad which have a fleet size of 20 aircraft and completed five years of operations.
“After the government released the draft rules, there has been further interaction with the airlines, the 5/20 (rule) has to now go to the Cabinet,” a source said.
9:30 am FII view: Rakesh Arora, Macquarie says interest rate easing cycle, government-led infrastructure build and consumption growth revival should be the dominant themes for 2015-16.
According to him, industrials, autos and real estate provide the best opportunity to gain from the emerging trend. He recommends building long positions on dips.
Don’t miss: Spectrum auction bids marginally up at Rs 1.02 lakh cr
The market has opened tepid following global cues. The Sensex is up 10.05 points at 28513.35 and the Nifty is down 1.85 points at 8645.90. About 478 shares have advanced, 224 shares declined, and 110 shares are unchanged.
Tata Power, Tata Motors, HDFC Bank, ITC and Dr Reddy’s Labs are top gainers in the Sensex. Among the losers are Hindalco, NTPC, GAIL, Sesa Sterlite and Bharti Airtel.
In the US, Wall Street closed lower on Friday, as a week of mixed economic data, renewed dollar strength and sharply lower oil prices made traders cautious ahead of this week’s fed meeting.
In Europe, equities closed slightly mixed on Friday, as the oil and gas sector took another hit from tumbling prices.
From the currency space, the euro sank to a fresh 12-year low after a recent bounce as investors were still very bearish on the common currency. Persistent weakness in the euro helped the dollar index stretch to a 12-year high of 100.42
In commodities, NYMEX crude prices tumbled almost 5 percent on Friday to USD 44 per barrel after the International Energy Agency said that a global oil glut is building and US oil production shows no signs of slowing. Brent crude slips to USD 53/bbl levels
Gold, from the precious metal space is trading near its lowest in over three months, pressured by a stronger dollar, ahead of a key Federal Reserve policy meet this week that could hint at the timing of any hike in US interest rates.
Amongst the BRIC markets, the Central Bank of Russia cut its key lending rate by 1 percentage point to 14 percent making it the second rate cut this year. The bank said it is more concerned about a recession than high inflation. The latest monetary policy decision came after December’s surprise hike in the key interest rate from 10.5 percent to 17 percent. That was when the central bank was trying to shore up a weakening ruble and combat inflation.