Mumbai: The government has gone ahead and allowed oil marketing companies to raise petrol prices, but it is not going to curb the fiscal deficit unless the government raises prices of diesel, kerosene and LPG which make up a big portion of subsidies. On a day of the high political drama, oil marketing companies decided to put to rest speculation about a rollback in petrol prices and said a review would be possible only on June 1, reports Business Standard.
The possibility of Greece’s exit from the Euro-zone continues to weigh on the markets. Asian markets were trading slightly higher on Friday morning tracking positive closing on Wall Street and comments from Italy’s Prime Minister, Mario Monti that Greece would probably remain in the euro zone. Japan’s Nikkei Stock Average added 0.5%, China’s Shanghai Composite was up 0.1% and Hong Kong’s Hang Seng gained 0.1%. In the United States, the Dow Jones closed up 0.3%, S&P 500 added 0.1% and Nasdaq ended in the red, down 0.4%, reports MarketWatch.
In India, Bharti Airtel Ltd will continue to be in focus after it announced purchase of a 49% stake in Qualcomm Inc.’s India subsidiary which has broadband wireless access, for an initial investment of approximately $165 million, reports Mint. Bharti Airtel will now be able to compete with Reliance Infotel Ltd in 4G telecom services. The deal values the equity at $336 million, but Qualcomm India also has a debt of $1-2 million.
Jet Airways will be under the radar after posting a loss for the fifth straight quarter due to firm fuel prices, high interest costs and weakening rupee, reports Mint. Jet Airways’ loss widened to Rs 298.1 crore from Rs 124.5 crore a year earlier as fuel costs shot up 42.4%. Jet Airways which leads the market with a share of 26.8% will be forced to cut down on capacity, said analysts.
Rural Electrification Corporation plans to raise Rs 30,000 crore in the current financial year through foreign currency convertible bonds (FCCBs) and external commercial borrowings (ECBs), reports Economic Times. The company plans to raise $1 billion via FCCBs and $750 million via ECBs.
The telecom department and the telecom commission approved the auction of 10 MHz of spectrum across all circles in the 1,800 MHz band, which is used for 2G services, providing a relief to GSM operators, reports Business Standard. The decision on the auction base price is likely to be taken at a meeting scheduled later this week.
TVS Motors will be in the focus after net profit improved 31% to Rs 57.23 crore in the fourth quarter, despite sluggish sales, reports Mint. Sales slipped 9%, to Rs 1062.90 crore because of tough competition and rising interest rates for vehicle loans that hurt demand. Net Profit jumped due to other income of Rs 8 crore.
Lastly, while Facebook might not have done well in the IPO market, billionaire investor Mark Cuban has snatched up 150,000 shares of Facebook for short term trading investment, reports Wall Street Journal.