The Mint Report for 13 June 2011

The Mint Report for 13 June 2011

Air India could report massive losses for the fiscal 2010-11. The airline’s results are still being audited, but when they do come out, Air India might have to overhaul its turnaround plan .An internal assessment reviewed by Mint shows losses of Rs7,195 crore during the year. In fiscal 2009-10, its post-tax loss was just Rs5,552 crore. The implications of higher-than-expected losses could be far-reaching. At present, Air India’s ambitious turnaround plan uses 2010-11 as its base year. But once they the new results are out, the airline may have to revisit many of its key assumptions.

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The 2G scandal is seeing new twists, The Supreme Court is demanding answers from the CBI. On Monday it gave the agency a week to respond to the bail plea from DMK leader K Kanimozhi. The Court also asked the CBI about the status of an alleged 200 crore bribe given to Kalaignar TV by the DB Realty. Kanimozhi owns a 20% stake in Kalaignar.

Indian markets ended Monday’s trade flat, with expectations of a hike in policy rates, keeping investors wary. The Sensex 2.51 points lower at 18,266. And the Nifty finished with a loss of three points at 5,483.Among the stocks that lost ground were heavyweights like Reliance Industries. Its shares tumbled 1.84% on the BSE on news that regulators would not recognize three of its gas finds. The country’s biggest bank, SBI, meanwhile declined 1.02% over concerns about inflation. Other stocks across sectors gave the losers company. Tata Motors lost 0.68% to a 1012.80 and Wipro fell 0.49% to 435.50.