Despite the 0.25% cut in repo rate and cash reserve ratio (CRR), the Indian stock markets, could not hold the gains during the post noon trading session. The sectoral indices traded mixed with banking and metal stocks leading among the gainers, while FMCG and oil and gas stocks among the underperformers.
Most of the telecom stock are trading in green with Himachal Futuristic and Reliance Communications being among the top gainers. As per the financial daily, various telecom operators including Bharti Airtel, and Idea Cellular, have secured stay order from High Court on payment of onetime fee for holding excess of 2G spectrum. The court has granted stay till Feb 24 and Mar 01 to Bharti Airtel and Idea Cellular respectively. Earlier this month, the department of telecommunications had asked Airtel and Vodafone for payment of first installment amounting to Rs 38 bn 31st Jan. This action was brought as Initially, telecom firms were given 4.4 MHz spectrum including license for Rs 16 bn for pan-India operations and additional 1.8 MHz on fulfillment of certain criteria. In November, the government decided that the operators should pay additional charges for holding spectrum above 6.2 MHz retrospectively, from July 2008 to January 1, 2013. Reportedly, the Government of India was expecting to collect around Rs 200 bn from the one-time charge. The decision was approved by the Cabinet ministers earlier and the department had issued a demand notice was sent accordingly.
Majority of the engineering stocks are trading in green with Jain Irrigation and Lakshmi Machine leading the gains. As per a leading financial daily, Engineers India Ltd (EIL)has signed a contract to upgrade Oil India's crude oil pipeline at Naharkatiya-Barauni. As per the contract, EIL will offer Engineering, Procurement and Construction Management (EPCM) services in upgradation of the pump stations/terminals of the crude pipeline. The upgradation is expected to reduce operational and maintenance costs and raise the throughput of the system to handle future flow requirement of upto 8 m tonnes. Besides the project also aims to increase reliability and life of the pump stations and ensure compliance of safety and environmental norms. The project completion is expected in 24 months. EIL stock is currently up 0.3%.