How will the week end

Markets on Thursday ended flat coming off the lows of the day.There was a support for the market at the lower levels indicating some strength against the selling pressure seen earlier in the day.

Government has hinted on Thursday that it will declaring a second stimulus package next week targeting mainly at the export market to lift the employment in the textile industry and other export oriented companies.Package may also support Agricultural sector as the inflation of food articles is still on a rise as all other commodities fall and push the overall inflation down.

MTNL has started India’s first 3G service yesterday in Delhi.BSNL will be coming out in mid of January.3G in India is just in a starting phase.Today there will be a guidelines for 3G aution which may happen by end of Jan.Its the next big development in the India Mobile industry.All mobile operators are getting ready for the aution by selling part of there stakes to foreign telcos thereby generating enough funds to finance the aution.With only 2-4 licences available for private operators in each circle it has to be seen till what extent these companies would stretch themselves in the aution.

Telcos have to wait for a long time for the returns to be gererated out of the 3G.With 90% of the indian Mobile operators being the middle and lower middle class it is very unlikely that they would upgrade to 3G.In the intial years 3G would be mainly used only by the corporate sector.The next segment of users might be the younger employed generation.

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