Aug 12, 2008|
Weak oil, India's 3G plans & more...
Asian stocks down on commodities
Asian markets are trading weak currently, led by the decline in commodity stocks. This is on the back of plummeting prices of gold (on the back of receding inflation expectations) and oil (on the back of demand slowdown). Stocks in Hong Kong, China, Japan and Singapore are all trading weak. Stocks in the US had closed strong yesterday. While the Dow gained 0.4%, the Nasdaq closed 1% up. As reported on the Bloomberg, gold prices have dropped by 4.2% to US$ 828.3, the lowest since December 24, 2007. Crude oil prices have slumped 21% from the record levels of US$ 147 a barrel touched on July 14.
MNCs losing charm in India's 3G dreams?
A leading business daily reports that global telecom majors might stay away from the Indian government's auction of 3G (third-generation) telecom spectrum. These companies have in fact lowered their interest on the back of steep financial and regulatory barriers and uncertain environment for new entrants. As a matter of fact, companies like NTT, AT&T, Deutsche Telecom and Etisalat had shown interest in India's mobile market. Now, reports of absence of these global telecom giants from the bidding process could threaten the government's ambitious plans of netting up to Rs 400 bn from the auction of 3G spectrum.
Also read - India goes live with 3G
While the telecom department's 3G plans sound reformist for the sector as a whole given that this has the capability to make communication even faster, there are several big questions that operators will face once they commercially launch such services. The minimum price for a pan-India 3G license has been set at US$ 470 m (Rs 20 bn), almost double the US$ 250 m minimum price recommended by TRAI (Telecom Regulatory Authority of India).
Secondly the policy, in giving preference to state-owned service providers - MTNL and BSNL - indicates that only two private operators, alongside these PSUs, will get licenses for New Delhi and Mumbai because of the shortage of spectrum there. In the country's remaining telecom circles, while five operators will be permitted initially, including a state carrier, the count could rise to up to 10 later.
Easing rules for non-government PFs
The Indian government is planning to ease rules governing pension funds (PFs). In this context, as reported in a leading business daily, the government may allow non-government PFs to invest upto 10% incremental flows in the stockmarket, up from the current mandate of 5%. While no measure exists of the size of the corpus owned by non-government agencies PFs in India, government estimates indicate that some funds have a minimum size of Rs 1 bn. Also as reported, the finance ministry had first allowed non-government PFs to invest in capital markets in January 2005.
More Views on News
Jun 10, 2017
Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.
Aug 18, 2017
Buying the index now will hardly help make money in stocks even in ten years.
Aug 18, 2017
Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.
Aug 17, 2017
PersonalFN simplifies the mutual fund account statement for you.
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
More Views on News
Aug 7, 2017
The data tells us quite a different story from the one the government is trying to project.
Aug 10, 2017
Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.
Aug 8, 2017
Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...
Aug 12, 2017
The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.
Aug 7, 2017
Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: firstname.lastname@example.org. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407