Indian equity markets jumped over 2.75% on Friday on heavy buying by funds and retail investors amid firm global cues. Concerns over China's credit crunch continued to subside with Beijing's central bank pledging to ensure reasonable lending growth and stable markets. Back home, on the back of lower current account deficit (CAD), rupee appreciated today against the dollar and came below the Rs 60 level. While the BSE-Sensex closed higher by 519 points, the NSE-Nifty closed higher by 159 points. Both the BSE Mid Cap and the BSE Small Cap closed on a positive note. Metals and capital goods stocks were the biggest gainers.
As regards global markets, Asian indices closed in the green. European indices have also opened in the red. The rupee was trading at Rs 59.2 to the dollar at the time of writing.
The central government would come up with an executive order soon to set up a coal regulator. The union cabinet had approved the proposal for setting up of an independent coal regulatory authority for the coal sector and also approved the introduction of Coal regulatory Authority Bill, 2013 before the Parliament. Though Coal India Limited would decide the pricing system, coal regulator would decide on the principles and methodology. The authority would specify methods of testing for declaration of grades or quality of coal, monitor and enforce closure of mines, specify principles and methodologies for pricing. Shares of Coal India, which recently fell to lowest levels since listing, surged higher on Friday and closed 5.6% higher.
According to a leading financial daily, Indian Hotel Company Limited's (IHCL) plans to hold on to Taj Mansingh hotel might suffer a jolt as the New Delhi Municipal Council (NDMC) has decided to seek the opinion of the solicitor general and fresh views of the rural development and home ministries on open bid for the property's auction. Till now, NDMC officials had maintained the first right of refusal and had safeguarded IHCL's interest in the property. But now IHCL might lose that right after the home ministry wrote to the civic body to cancel the company's first right of refusal. The 33 year old lease agreement between the two parties ended in October 2011, after which NDMC decided to go for an auction, instead of renewing the lease. Later, the civic body had extended the lease by a year.