On the global front, most of the Asian indices closed the day on a weak note and the European indices too opened on a pessimistic note. The rupee was trading at Rs 62.31 to the dollar at the time of writing.
Most of the Telecom stocks are trading in red, with Himachal Futuristic and Reliance communications witnessing maximum selling pressures. As per the financial daily, Idea cellular, India's third largest cellular service provider will be contesting against government's penalty notice worth Rs 6 bn . As per the notice, the penalties are charged by the government for allegedly violating rules when the company acquired a smaller rival five years ago. Idea is working upon to challenge the government order. Reportedly, in 2008 Idea had agreed to buy smaller rival spice communications in a three way deal. In 2008, Idea Cellular acquired 41.09 per cent stake in Spice Communications. The companies merged in 2010, which resulted in overlapping of licences in six circles. The telecommunications ministry has said Idea violated rules as it held permits in zones where Spice had operations. Idea stock closed down by 0.20% today.
Energy stocks closed the day today on a mixed note with Gujarat state petronet and GAIL being the leading gainers and Hindustan petroleum corporation Ltd (HPCL) and MRPL being the leading losers. As per the financial daily, GAIL India Ltd, India's biggest natural gas distributor intends to acquire stake in Tanzania gas block. The company is looking forward to acquire Opire energy's 10% stake in gas blocks in Tanzania. Further, GAIL Director (Marketing) Prabhat Singh said the company is in talks with Ophire energy, irrespective of Singapore's Pavilion Energy reportedly buying half of Ophir's stake. While Singh refused to give details, industry sources said GAIL had put a price of about USD 600 million for a 10% interest. GAIL is aggressively tying up liquefied natural gas (LNG) supplies to meet rising energy needs of the country.