11-04-2012

BOARD MEETING
• BASF INDIA, to mull expansion of manufacturing activities.
• BLAZON MARBLES, to consider stock split.



DATA ALERT FROM OVERSEAS
• GERMANY WPI for Mar.
• FRANCE OECD HARMONISED UNEMPLOYMENT RATES in Feb.
• US MBA WEEKLY MORTGAGE APPLICATIONS SURVEY for week ended Apr 6.
• US IMPORT & EXPORT PRICE INDEX in Mar.
• US CRUDE OIL STOCKS in week to Apr 6.
• US GASOLINE STOCKS in week to Apr 6.
• US DISTILLATE STOCKS in week to Apr 6.
• US REFINERY USAGE in week to Apr 6

(FII brokers meet Finance Ministry last Wednesday)
Finance Ministry sources say 
-FIIs felt certain points in GAAR were vague
-Have clarified intent of GAAR
-Want process to be as smooth as possible
-Will not issue any clarification as of now
-FIIs concerned about impermissible arrangements
-GAAR will not be implemented if legal structure permissible
-There will be no unintended consequences of GAAR
-Clarified to FIIs post box Cos will be impacted by GAAR
-GAAR to be invoked if FII does not have commercial substance
-No question of GAAR rollback; to be applicable from Apr 1, 2012
-Tax treaties will not be applicable once GAAR invoked
-Capital gains will have to be paid

Coal Ministry sends presidential directive to the Department of Public Enterprises (DPE) for consultations: Sources-DPE to be consulted before 'Presidential Directive' sent to Coal India (CIL)
-CIL board to discuss penalty, force majeure and deemed delivery clauses
-Guidelines will be sent to CIL subsidiaries for fuel supply agreements (FSAs) signing
-1% penalty will cost CIL Rs 114 crore p.a.
-First 2 years' coal supply can be managed by Coal India
-Coal Ministry will need to fast track clearances for land & Environmental Clearances

TCI to CNBC-TV18 -Presidential directive strengthens our case under bilateral treaties
-About to launch legal action against Coal India & its board
-'More confident than ever of our legal stand'
-Coal India should keep penalties near zero
-Expect Coal India board to come up with a price hike
-Coal price hike also needed to offset wage hike
-CIL losing USD 20 billion each year selling Coal below market rates

MARKET NEWS:
 Bharti Airtel launches 4G services in Kolkata; Bengaluru in a month
• India Mar car sales up 19.7% on yr, FY12 sales up 2.2%
• Oriental Bank to cut Base Rate by 10 bps to 10.65% from Wed
• Ind-Swift Labs gets US FDA OK for 5 active pharma ingredients
• Leighton Welspun gets 4-bln-rupee order from Jindal Steel & Power
• McNally Bharat gets 1.5-bln-rupee order from Bhushan Power
• Source says Emami hiked prices of select products by 8-12%
• Omkar Speciality makes pharma foray, buys LASA Lab for 60 mln rupee
• Vedanta Jan-Mar iron ore sales 5.2 mln tn vs 6.6 mln tn year ago

Essar group may take 10-bln-rupee hit due to Red Corridor
• Reliance Industries may ignore oil ministry advice on arbitration
• GMR Infra in pact with IDBI for 54-bln-rupee loan
• GSPC raises domestic PNG, CNG prices
• Cairn India to raise Mangala field output by 25,000 bbl/day


SECTORWISE NEWS
•AVIATION: The government is likely to take a decision on allowing foreign airlines to buy stake in Indian carriers this week.
 •CAPITAL GOODS: The government has disallowed domestic companies to issue equity to foreign companies against import of second-hand goods.
• MINING: The Central government is likely to ask governors to use special powers, and consider cancelling mining leases to state agencies and companies in Naxal-hit areas.
• TELECOM: The Union Cabinet has approved a proposal for seeking Presidential reference on the Supreme Court's order cancelling 122 mobile licences, and asking the government to auction second-generation spectrum in four months.
The finance ministry, and the Department of Industrial Policy and Promotion are not in favour of rolling back 100% foreign dire