The Mint Report for 09 February 2011

The Mint Report for 09 February 2011

The Telecom Regulatory Authority of India has submitted a report to the department of telecommunications, recommending that 2G spectrum be allocated to operators at 80% of the 3G price. The regulator has differentiated between start-up spectrum and additional spectrum above 6.2Mhz, and recommended different prices for both. It fixed the price for 6.2 Mhz for pan-India start-up at about 11 thousand crore, which is more than six times the current rate. Trai also maintained that every Mhz of additional spectrum would cost about 4 thousand five hundred crore. The report said the recommended prices would be effective from 1 April 2010.

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Mahindra & Mahindra on Wednesday reported a 78% increase in its net profit for the quarter ended 31 December, 2010. The company said robust demand and various cost saving measures had helped boost profits. Total income during the third quarter of the fiscal also surged by 36.11% year on year. During the quarter, the company sold 56,211 units of utility vehicles in the domestic market, enjoying a 62.2% share in the segment. Especially significant were sales of ‘Mahindra Swaraj´ tractors.

In the auto sector, car sales in India rose 26% in January. A growing middle class, easier access to loans and a wider choice of models kept up the pace of growth, defying expectations of a slowdown. However growth is expected to slow to 15% in 2011 from 31% last year amid rising interest rates, fuel prices and vehicle costs.

A Mumbai court has allowed two days transit remand of Swan Telecom promoter Shahid Usman Balwa to take him to Delhi and confront him with former telecom minister A. Raja. Balwa, who was arrested last evening from his Bandra residence, was produced before special CBI judge S.C. Chandak. Balwa’s arrest comes two days ahead of the Supreme Court hearing on the 2G-spectrum case.

Markets plummeted further and the BSE Sensex plunked 1.03% to settle at about 17,500 points while the Nifty fell 0.72% to settle at 5,253.55.

The top gainers on the Sensex were Mahindra & Mahindra, DLF and Infosys. The losers were Reliance Infra, Reliance Communications, JP Associates and Hero Honda.