Asian shares were weak on Thursday on concerns of a weak global economy. Rising oil prices and a weak euro zone economic data point to a slowdown. The service sector data showed a contraction in February for the euro zone. US markets fell on Wednesday after a three day rally. The fall in US markets was led by bank shares. Oil prices continued to stay at a nine-month high on Thursday.
SBI on Kingfisher
A State Bank of India official late on Wednesday denied that the bank has given any additional loan to Kingfisher Airlines during the current crisis. "We have not given any fresh loans to Kingfisher," R. Venkatachalam, a Deputy Managing Director at the bank who is responsible for managing the Kingfisher loan account told Reuters. "All media reports are baseless and untrue." The bank is not considering giving any fresh loans to Kingfisher as of now, he added.
DLF
DLF, the country's largest realty firm, has sold 350 flats worth about Rs 500 crore in a luxury housing project at Gurgaon. The housing project 'The Primus', which is part of a 450 acre integrated township - DLF Garden City, was launched yesterday and all the flats were sold on the same day. According to sources, the company achieved a sales booking of about Rs 500 crore from this project.
PNB
State-owned Punjab National Bank (PNB) said on Wednesday that it proposes to raise Rs 1,590 crore by selling about 1.58 crore shares to LIC. The bank has also approved fund infusion of Rs 1,285 crore through preferential issue of shares to the government. It will also issue up to 1.28 crore shares to the government. The capital infusion would raise government's stake, from 58 per cent at present, in the bank. Following all necessary regulatory approvals, the bank would be able to raise Rs 2,875 crore by March 31.
Ranbaxy earnings today
Ranbaxy Laboratories is expected to announce a sharp rise in December 2011 quarter loss at Rs 233 crore despite an expected 32 per cent growth in sales over December 2010. This is largely due to the provisioning the company has to make for litigations in US. The company has also incurred forex losses. The company’s operating profit margin is expected to be lower too due to rising manpower costs.
FDI in aviation
Decks are being cleared for allowing foreign airlines to invest in domestic airlines. The Sebi takeover code had come across as a roadblock for FDI in Aviation - particularly when it comes to foreign airlines picking up stake in Indian carriers. A committee of secretaries has recommended a solution to clear the hurdle for open offer for FDI in airline companies, potential buyers will have to acquire stake from the open market to stay within sectoral FDI cap of 49 per cent.
Sesa Goa taxes
The income tax department has disallowed Sesa Goa tax deductions of Rs 246 crore on the basis of regular assessment conducted for financial year 2009 and 2010. These tax deductions are related to three export oriented units set-up in 2000, 2003 and 2006. According to reports, the I-T department believes that to be able to get a deduction, the entire process in the production cycle has to be new. But in case of these three mines, while plants are new, the mines are old, so no deduction could be given. Sesa Goa has appealed against this regular assessment order. In view of that, the IT department is in the process of asking the company at this stage to pay up only 50 per cent of that amount.