Stock In Action: 6th August 2012

As per the media news MCX Stock Exchange (MCX-SX)  Yesterday  said it has received approvals from market watchdog Securities and Exchange Board of India (Sebi) and banking regulator Reserve Bank of India (RBI) to launch Currency Options. These approvals will enable the exchange to expand its offerings in the Currency Derivatives Segment (CDS) by introducing Currency Options in the Dollar-Indian Rupee (USD-INR) currency pair. This is positive news for the company and the stock may see some positive momentum.

As per business standard Pharma major Cipla plans to invest Rs 500 crore for setting up an active pharmaceutical ingredient (API) facilities at Patalganga, Bengaluru and Kurkumbh. The setting up of these facilities is expected to be completed by 2012-13, the company said in its annual report. Further The company's venture into stem cell-based products is under progress with a major investment in Stempeutics Research Pvt Ltd, Bengaluru. The stock may see some upside movement today.

As per the media news Airport Authority of India (AAI) has refused to allow the lessors to take back about half a dozen aircraft rented out to Kingfisher Airline, sources said. The lessors want the aircraft back as Kingfisher Airlines (KFA) has defaulted on rentals. The airline, which has not paid salaries to its employees for the past five months (some have not been paid for six months), has been defaulting on payments to AAI, oil companies, aircraft leasing companies and the government tax authorities.

As per the media news ministerial panel led by Finance Minister P Chidambaram is scheduled to meet on Monday to plan a revised schedule for spectrum auction as the government is unlikely to finish the process by August 31 as mandated by the Supreme Court. "The panel will discuss a revised schedule for spectrum auction," sources in Department of Telecom (DoT) said. It is, however, still not clear when the government will approach the Supreme Court seeking an extension of August 31 deadline. The auction is crucial for companies like Uninor and Sistema Shyam Teleservices, which have time till September 7 to offer their services and after which will be forced to close down their operations in case they fail to get a licence. We may also see some volatility in the telecom space.

As per business standard New Delhi, Aug 5 (PTI) State-owned Coal India Ltd (CIL) has so far entered into fuel supply agreements (FSAs) with 29 power plants, sources said. The power units with whom the coal PSU has signed FSAs include Lanco Anpara Power, Reliance Power's Rosa Power Project, CESC and Adani's Mundra. Companies including NTPC have refused to enter into pacts with CIL, dismissing the FSA on several counts, including clause of low penalty for the coal major in case of it not meeting the committed supply. Amid delays in signing of the agreements, the Prime Minister's Office had last month directed CIL to sign the pacts with power firms for supply of 65-80% of the contracted quantity.  The FSA agreement with power companies will not have major impact on the company.