MUMBAI |
MUMBAI (Reuters) - The BSE Sensex ended higher on Tuesday, although it gave up most gains after hitting its highest level since mid-April, led by gains in telecom stocks such as Bharti Airtel (BRTI.NS), after a tribunal's split verdict on 3G mutual roaming pacts.
IT stocks, however, continued to drag the indexes, falling for the second day, on poor near-term demand outlook due to delays in decision making by clients.
Analysts said markets have now started positioning for the upcoming earnings season which will reflect the performance for April-June quarter.
"The June quarter results are not expected to be so great," said Sunil Jain, head of retail equity research at Nirmal Bang.
"Macro indicators are showing some signs of improvement, where as corporate results are not expected to be so buoyant immediately," Jain added.
Uncertainty over the monsoon coupled with doubts about whether the government will be able to walk the talk on policy reforms due to compulsions of coalition politics seem to have added a cautious undertone on the prevailing optimism.
Stocks gave up most gains, ignoring the gains in the rupee, which rose to over a month-and-half high, that has served as a lead indicator for stock performance in the previous few months.
MSCI's broadest index for Asian shares outside Japan rose 1.2 percent.
The 30-share BSE Sensex rose 0.15 percent to 17,425.71 points, finishing lower from day's opening level for the second consecutive session, a sign traders say reflects consolidation.
The broader 50-share Nifty rose 0.18 percent to 5,287.95 points.
The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Tuesday gave a split verdict on a challenge by mobile phone operators seeking to overturn a government order requiring them to stop offering 3G services beyond their licensed zones through mutual roaming pacts, lawyers said.
Shares in Bharti rose 2.7 percent while Idea Cellular (IDEA.NS) rose 5.4 percent.
Morgan Stanley expects mixed June-quarter results from the top four Indian tech companies, with muted revenue guidance but a steep EPS upside.
Tata Consultancy Services (TCS.NS) fell 1.6 percent, while Infosys (INFY.NS) ended 0.4 percent lower.
Jefferies started coverage of Indian pharmaceutical sector with "buy" ratings on Sun Pharmaceutical Industries (SUN.NS), Ranbaxy Laboratories (RANB.NS) and Cipla (CIPL.NS), citing its preference for companies with high exposure to chronic/complex therapies and strong emerging market presence.
Ranbaxy rose 1.2 percent, while Sun Pharma and Cipla fell marginally.
Deutsche Bank also upgraded Indian utilities sector to "neutral" from "underweight" based on strong end-user demand and policy initiatives.
Deutsche Bank's top picks in utilities include Power Grid (PGRD.NS) and Jaiprakash Power Venture (JAPR.NS).
Powergrid fell 0.8 percent, while Jaiprakash Power ended 0.9 percent higher.
Consumer goods stocks ITC (ITC.NS) and Hindustan Unilever (HLL.NS) fell for the second day on churning in favour of other sectors.
Cigarette maker ITC fell 1.4 percent, while Hindustan Unilever fell 1.2 percent.
(Additional reporting by Manoj Dharra; Editing by Anand Basu)
India telecoms tribunal gives split verdict in 3G roaming dispute - msnbc.com
NEW DELHI (Reuters) - An Indian telecoms tribunal on Tuesday gave a split verdict in a case by mobile phone operators that had challenged a government order requiring them to stop offering 3G services beyond their licensed zones through mutual roaming pacts, lawyers said.
The tribunal asked the operators to appeal at a higher court, one lawyer on the case said, after the tribunal split its vote with one in favor of the government and the other in favor of the carriers.
The tribunal's decision was keenly watched by investors in Bharti Airtel
In a 2010 government auction, Bharti won 3G bandwidth in 13 of the country's 22 service areas, while Idea gained access to 11 and Vodafone nine.
The telecoms ministry told carriers last December that it was illegal to offer 3G services beyond their allotted zones by mutually agreeing to share their airwaves.
In the same month, the three operators and smaller rivals Tata Teleservices
(Reporting by Suchitra Mohanty; Editing by Ryan Woo)
(c) Copyright Thomson Reuters 2012. Check for restrictions at: http://about.reuters.com/fulllegal.asp
Zync Global launches 3G tablet PC at Rs 11990 - Economic Times
The company, which sold 100,000 tablet PCs last fiscal, is also targetting Rs 300 crore turnover this year.
"The tablet market in India are 10 million units in FY2012 and we sold 100,000 tablets...we are confident that given the potential for 3G-enabled tablet PCs, we should easily sell half a million devices this fiscal," Zync Global Director Ashish Garg told reporters here.
The Android 4.0 (Ice Cream Sandwich) based tablet PC has a 1.5 GHz processor, 2MP (rear) and 0.3MP (front) cameras, USB port and expandable memory up to 32 GB.
Its competitors for the 3G-enabled tablet includes Micromax, whose device is priced at about Rs 6,000. Other devices from the stable of Samsung and others are priced higher.
The company, whose turnover stood at about Rs 17 crore, also claims that it will reach Rs 300 crore this year.
"The tablet market is showing significant growth and we are confident that Zync Z999 will receive a great response from the market," Garg said, adding that the company will invest Rs 150 crore this year towards research and development and inventory and supply chain management.
The company sells its products through online portals and through a national distributor Balaji Solutions.
Zync previously had three tablet PCs in the market with prices starting at about Rs 5,000, which Garg said are manufactured in the company's facility in China.
The company, which has a headcount of about 90 people in India, China and Hong Kong, is also looking at exporting its tablet PCs to markets like Latin America and Africa by December.
"Our teams are already there in these market evaluating the opportunities and by December, we should be entering these markets as well," he said.
Indian tribunal split on 3G roaming case - YAHOO!
India's telecoms tribunal delivered a split ruling Tuesday on a challenge by mobile phone operators to a government ban on forming roaming pacts to provide 3G services outside their licensed zones.
When the government auctioned 3G licences in 2010, none of the leading operators -- Bharti Airtel, Vodafone India and Idea Cellular -- managed to get bandwidth in every one of India's telecom service areas.
However, the three companies then formed mutual roaming pacts, allowing them to offer 3G services across most of the country.
In December last year, the telecoms ministry ruled the pacts illegal and ordered the agreements to be scrapped.
The order was stayed pending an appeal to the Telecom Disputes Settlement and Appellate Tribunal -- a quasi-judicial body that rules on disputes in the telecom and media sectors.
Tuesday's decision saw the two-member tribunal divided, with one judge ruling in favour of the operators' petition and the other siding with the government.
The case is now expected to go to a higher court for a final ruling.
Indian telecom companies currently generate only small revenues from data services but they expect the market to grow exponentially as less than 10 percent of the 1.2 billion population has access to Internet at the moment.
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