Sensex shuns Budget 8216;sops8217;,falls 106 pts

The Reserve Bank8217;s no rate cut stance in the monetary policy review last week also weighed down on the investor sentiment,but a slightly better trend on the other Asian bourses capped the losses.

On similar lines,the broad-based National Stock Exchange index Nifty declined by 30 points,or 0.56 per cent,to 5,287.90.

Stocks of capital goods,PSUs,metal and oil and gas sectors remained under pressure,pulling down the Sensex.

In the Asia region,Hong Kong8217;s Hang Seng index was up by 0.11 per cent and Japan8217;s Nikkei index gained 0.33 per cent in early trade today.

Stocks More on ACC

Company INFO More on Reliance Com

Asian shares edged higher and the dollar was firm against the yen on Monday with investors buoyed after the U.S. market hit an almost four-year high last week and with higher European stocks reflecting signs of growing stability in the euro zone.

The Samp;P 500 closed out its best week in three months with a slim gain on Friday,but two slightly softer economic reports curbed broader gains,keeping both the Dow and the Nasdaq in modestly negative territory.

KEY EVENTS TO WATCH

India8217;s Finance Minister Pranab Mukherjee will address the Board of Directors of Reserve Bank of India on Monday. Mukherjee and RBI Governor Subbarao will speak to the media press around 1230 IST 0700 GMT.

INDIAN STOCKS TO WATCH

India8217;s railway minister Dinesh Trivedi quit on Sunday after his plan to raise fares on the vast but creaking network prompted a furious response from his own party.

India has exempted payment in rupees for oil imports from Iran from hefty local taxes,a move that would help refiners settle some of their oil trades with the sanctions-hit country if the current mechanism through Turkey folds under fresh sanctions.

India will inject 60-70 billion rupees 1.19-1.39 bln in State Bank of India by next week,banking secretary D.K. Mittal said on Friday.

Reliance Communications-controlled FLAG Telecom has filed a prospectus in Singapore Stock Exchange to list and divest 75 per cent stake in the submarine cables business for 1.25-1.5 billion.

Indian automakers heaved a sigh of relief after the federal budget did not hike taxes on diesel cars and retained a generous subsidy on the fuel,but companies criticized a rise in excise duty that will trigger an increase in car prices.

State-owned Oil and Natural Gas Corp ONGC plans to invest over 330.65 billion rupees next fiscal in exploration and production of oil and gas,a 5 percent increase over capital expenditure in 2011-12.

Cement manufacturers such as ACC and Ambuja Cement announced price hikes of 7-10 rupees for a 50kg bag after the budget announced on Friday.

Singapore-based Ascol,a consortium of four private equity funds,will purchase 74 in ILamp;FS Tamil Nadu Power Company for 40 billion rupees,a person with direct knowledge of the development said.

Reliance Power said it will not go ahead with the implementation of its 175 billion rupees Krishnapatnam ultra mega power project UMPP in Andhra Pradesh unless contracted buyers agree on tariff revisions.

HDFC Asset Management,part of HDFC Ltd,and Pramerica Asset Managers Pvt. Ltd,an arm of US-headquartered Prudential Financial Inc,have emerged as the frontrunners to buy the assets of Fidelity8217;s India-FIL Fund Management Pvt. Ltd.

The International Finance Corporation is planning to invest 60 million in Apollo Hospitals,one of the country8217;s largest integrated private health care groups.

State Bank of India may hike interest rates on savings deposits following Finance Minister Pranab Mukherjee8217;s announcement to exempt interest earned up to Rs 10,000 on such deposits from tax.

Iron ore producer NMDC plans to invest 35.13 billion rupees on its upcoming 3 million tonnes per annum capacity steel plant at Nagarnar in Chhattisgarh.

The Future Group,owner of Pantaloon Retail shops in India,is negotiating as many as 18 divestment and fund-raising transactions as it seeks to pare its debt.

Leading health care chains Fortis Healthcare and Manipal Hospitals have reportedly shown interest in acquiring the sprawling Grand Hyatt in Pune to set up large multi-specialty hospitals.

M the country8217;s largest manganese miner,plans to enter the power generation business and has invited expressions of interest from private sector players for a tie-up for the development of coal blocks.

The Congress-led United Progressive Alliance UPA is likely to drop the proposal for easier foreign direct investment FDI norms in insurance and pension funds.

Aditya Birla group chairman Kumar Mangalam Birla will fork out 4 billion rupees from his personal wealth,to rapidly ramp up operations of the food retail business.