Asian stocks traded flat on Friday despite reports of strong Japanese retail sales. The Japanese yen strengthened against the US dollar which hurts export-oriented companies from Japan. Markets in China and Taiwan are closed for the Chinese New Year holiday. Overnight, US home sales fell below expectations. US stocks pared gains on Thursday as major indices dipped half a per cent. The US will release GDP data for the fourth quarter on Friday.
Loop and Essar
Promoters of Loop Telecom and Essar Group have been summoned to appear before the 2G court in Delhi today. Ravi Ruia and Anshuman Ruia, promoters of Essar, IP Khaitan and Kiran Khaitan, promoters of Loop Telecom and Vikas Saraf, Director with Essar, had been issued summons last month, after the CBI named them in the third charge-sheet filed in the 2G case. They have been charged with cheating for allegedly using Loop as a front company for Essar to secure 2G spectrum and licences in 2008, in violation of the DoT guidelines.
Government move on Vodafone verdict
The government is likely to clarify its stand on the Vodafone tax verdict in two weeks. The centre may consider filing a review petition and tighten tax laws in the upcoming budget session of the parliament. Finance ministry sources say that a core Committee - headed by the Director General of International Taxation has given inputs to the finance ministry after looking at various options in the Vodafone tax case.
Telecom audit
Telecom Minister Kapil Sibal has called a special meeting today of top department of telecom or DoT officials on auditing telecom firms. The officials meeting today may decide on sending notices to operators for under-reporting their revenues. The department may send notices worth about Rs 1,600 crore rupees to operators for under-reporting revenues. A decision also on whether telcos should be given an opportunity to present their side of the case may also be taken today at the meeting.
DLF
DLF Chairman K P Singh says that he expects realty companies to be unable to repay loans in 2012. The chairman of India's largest realty firm DLF said that the real estate sector will see major loan restructurings in 2012. He expects that a lot of players would not be able to make timely repayments. Speaking to NDTV Profit at the World Economic Forum summit in Davos, KP Singh said that the availability of financing for real estate companies remains a major problem.
Ranbaxy
In an unprecedented move, the US Justice Department has sought a permanent injunction against Ranbaxy Laboratories, a move that will require the Indian pharmaceutical major to make fundamental changes to its plants both in the US and India. The injunction would prevent it from manufacturing drugs at certain facilities in the US. The department cited violations of manufacturing standards and problems with submitted data in a consent decree for permanent injunction filed in court against the company.
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