New Delhi: Markets started the week with a bang. On Monday the Sensex shot up327 points, closing above the 16,000 mark at 16,016. The Nifty surged 102 points closing at 4,783.
The BCCI will reverse its decision to end the ten-year contract with International Management Group (IMG), the sports management agency for the Indian Premiere League (IPL). The new deal is likely to replace the 10% revenue sharing agreement in the original contract with a fixed payment of just Rs33 crore to IMG. Though the terms may change drastically, the new agreement only formalizes an unofficial agreement that has existed between BCCI and IMG after BCCI officials complained a 10% share of IPL’s revenues was too generous.
Members of the BJP and some of its allies have stayed away from the first meeting of the Public Accounts Committee (PAC). The PAC is currently headed by the former BJP leader Jaswant Singh who was expelled from the party last month. BJP leaders have been asking Singh to resign from the PAC because he’s no longer with their party, but Singh has refused to leave his post.
Finance minister Pranab Mukherjee says the weak monsoons could slow down economic growth in the second and third quarters. This year India is seeing its worst monsoon in at least seven years, and the government has declared droughts in 278 of the country’s 626 districts.
After four years of trying, Reliance Industries has finally abandoned its attempts at getting a geographical indication or GI status for gas from its KG fields and petroleum products made its refinery in Jamnagar. A GI status is a label for identifying products from a specific geographical location in a country that’s a WTO member. The development is unrelated to Reliance Industry’s gas supply dispute with RNRL.
The founders of Uttam Galva Steels say that if ArcelorMittal attempts to increase its stake in the company through an open offer fail, they can still sell it the required shares. Last week ArcelorMittal signed an agreement with the founders of Uttam Galva to buy a 5.6% stake in the company. The deal will be ArcelorMittal’s first acquisition in India.
Another firm is looking to sell some of its stake. Logistics company Distriparks is expected to sign a deal with a private equity firm to raise at least Rs300 crore. It plans to do this by cutting its stake in its subsidiary Gateway Rail by at least 25%. Gateway Rail runs freight trains across India and operates inland container depots.
Consulting firm McKinsey says the recent changes in mutual fund regulations will benefit asset management companies that are either owned by banks or don’t depend heavily on distributors. India’s mutual fund industry is worth about Rs750,000 crore.
Yet another member of Kingfisher Airline’s top management has quit. The airline’s vice-president for global sales has put in his papers days before the launch of new routes to Singapore and Hong Kong. Kingfisher is one of many airlines in India that have been in financial trouble ever since the downturn last year.
India’s car market may be less than 20% of China’s, but it’s edging ahead in car exports. The country’s total auto exports between January and July grew to nearly 230,000 vehicles, while China fell to about 165,000. Foreign carmakers want to turn India into a hub for making the smaller, more fuel-efficient cars that are in demand today. And they’re attracted by India’s cheap labour and its strong domestic market for small cars.