THE ECONOMIC TIMES 30th October

CASH-STRAPPED BANKS BORROW RECORD Rs. 1.31 L cr:

Banks borrowed the highest ever from the RBI on Friday to tide over cash crunch, which forced the central bank to resort to temporary liquidity-easing measures to calm the penic triggered by lower government spending & customer withdrawal ahead of diwali.

Faced with an unprecedented demand for funds, RBI opened a second window during the day under the liquidity adjustment facility, or LAF, through which it either absorbs excess liquidity or injects funds to each shortage. In normal times, that happens once a day.

INDIA AND CHINA CAN PROSPER TOGETHER :( SAYS BY WEN):

Prime Minister Dr. Manmohan Singh and Chinese leader wen Jiabao met on Friday regarding the byletral issues. This meeting took place against the backdrop of growing strain in ties over beijing bellicosity over the boundry issue regarding issue;its increased meddling in pakistan occupied kashmir and the row over stapled visas to jammu­­ kashmir residents moreover they both talk about cooperate each other and work together for the development of the world without hurting each other. -

ICICI Q2 NET UP 19% on BoR BUY:

ICICI bank, the nation’s second largest lender repoted quaterly net profit rose 18.9% boosted by the acquisition of bank of rajasthan & lower provisioning for bad loans.

SOUTH KOREA SET TO ENTER INDIAN NUCLEAR MARKET:

India & South Korea have reached an agreement on civil nuclear co-operation. It marks the entry of the first Asian Player into the Indian civil nuclear market. Our National security advisor Shivshankar Menon told reporte that the next of the agreement has been finalised. The Korean Leadership has supported India’s efforts at NSG 2008. Korean companies are keep to compete with firm such as France’s Areva. Koreans have made major investment in the sector in UAE.

RAJU LIKELY TO SURRENDER ON NOVEMBER10:

Raju the founder of satyam accused in the scandal of 14000crore 2years back .few month ago he got bail from andhra pradesh high court .but supreme court cancelled his bail and other four who r involve in the scandal on 26 october 2010 of as per the order supreme court he has surrender by 10 november 2010.

TATA MAY USE SINGUR LAND FOR OTHER PROJECTS:

TATA’s small car project Nano could not roll out from singur in West Wengal has told the suprem court that the land allocated for the small car project belongs to it. This type of land the company could use other purpose. The company has spent crores of rupees for the infrastructure. The company has lost Rs 500 crore and the company has the valid lease and we are loosing money. So the land could be used for some other purpose, said Tata’s counsel.

HIGHER AUTO SALES LIFT MAHINDRA Q2 PROFIT:

India’s largest utility vehicle maker Mahindra & Mahindra, on Friday reported a 7.8% quarterly net profit, driven by higher sales in the fast growing auto market. India’s auto sector has been growing at 25-30%. The company reported net profit of Rs 758 crore for the second quarter ended September compaired with Rs 702 crore in the year ago period. Total income for the quarter was higher by 20% to Rs 434 crore. He shares of Mahindra & Mahindra 0.1% to close atRs 733.7 on the Bombay Stock Exchange. Mahindra & Mahindra also on Friday got approval from South Korea’s anti-trust regulator to bye Ssangyong Motor Co. as it seeks to expand its footprint in the overseas market. Te company has signed an agreement in August to bye the troubled Korean automaker.

HERO HONDA Q2 NET SKIDS 15%:

Hero Honda posted a 15% drop in profits in the second quarter ended September, the steepest decline in three years, because of spiralling input costs.The company whose promoter s said to be close to going their separate ways, warned that it expect rising raw material cost to continue impacting futur eprofits. The company’s share fell 2.2% to Rs 1865 at the close of trading on the Bombay Stock Exchange though the Q2 results had no impactas they were announced after trading hours.

HIGHER SALES PUSH ITC NET UP 23%:

Multi business conglomerate ITC ltd. On Friday reported a 23.5% year on year growth in net profit for second quarter ended September 30, 2010, to Rs 1246.74 crore. Net sales during the period under review reported a 16.3% YoY growth at Rs 5061.2 crore driven by robust performance of its branded packages foods, agri and cigarettes business.

WIPRO TECH, ENW IN DEAL:

Wipro Technologies, the global consulting, system integration and outsoursing of arm of wipro, Friday said it has entered into 5 year strategic partnership with electricity North West The partnership is deliver end to end searvice framework. This collaboration will achieve the critical task of separation of IT operations from electricity North West current service arranrement, Bangalore-headquartered Wipro said in a statement.

NESTLE BEATS St FORECAST:

NESTLE the world largest food copmpany beats street spectations to post a 19.6% increase in his net profitfor the 3^rd quarter ended September, riding on higher sales and tight cost control. The company’s performance in the quarter despite continuous cost pressures is the result of focused execution of our aligned strategy, said by the Nestle India CMD. Nestle reported net profit of Rs 218.6 crore for the quarter ended September 30, its net sales were up25.7% year on year at Rs 1637.3 crore. The company announced its second dividend of rs 27 per equity share on Friday.

LINK SUBSIDY TO CRUDE PRICE, SAYS ONGC:

ONGC has suggested that subsidy burden should be clearly linked to crude oil rates. It has proposed that ifcruid oil prices are between $60 and $70 a barrel, the company should pay 20% of its incremental price towards fuel subsidy. The percentage should increase to 40% , if crude oil price range between $70 and $80, and 60% when the are hovering at $89-90 a barrel. It is imposible to calculate the exact cost of producing one litre of any fuel.

STOCK MARKET:

Sensex- 20032.34 (0.46% ↑)

Nifty- 6017.70 (0.50% ↑)

Nikkei- 9202.45 (1.75% ↓)

Hang Seng- 23096.32 (0.49% ↓)

Gold- (Rs 140 ↑)

Silver- (Rs 215 ↑)

SUBMITTED BY

SEC- E

GROUP NO. 24

UMESH CHANDRA JAISWAL

TARUN

TANIMA KAPOOR

BUSINESS STANDARDS

RBI Calms Jittery Market, As Call Rates Top 12%
• InterBank Call money rates increases more than 12% even though the banks borrowed Rs. 1, 17660 crore from RBI.
• RBI opens a second Liquidity Adjustment Facility.
• Banks have to invest up to 25% of their demand and time liabilities in government securities to maintain SLR.
• The Liquidity shortage this week averaged Rs.90000 crore because of the Coal India initial public offering with record of Rs.15,500 crore.


ICICI Bank Net profit up 22%
• ICICI bank posted a 22% increase in its net Profit to RS. 1395 crore ended Sept 30.
• The bank share rose 6.5% on the BSE.
• Provision fell 40% to 641crore even as rose non performing assets rose to Rs.101412.2 core from Rs.9200 crore.
• The Net profit grew 19%.


Air India Plans to revive Vayudoot

• National Aviation Company of India Ltd which owns Air India is planning to Launched as Indian Airlines subsidiary in 1981to serve the north east region and has 100 stations across the country.
• However due to financial crises,Vayudoot was emerged with Indian Airlines.
• Vayudoot will operate from state like UP, Bihar, MP, Jharkhand and northern region.
• The official said that the plan is to operate 4 types of aircraft depending on demand :15-20seats, 50seats.120-180seats and 300seats aircraft
• Plans are also being made to lease these craft.

GSPC-OMC set to win RS18000 Cr of gas pipeline
• GSPC owns 52 % in the pipeline consortium and IOC 26%.HPCL and BPCL have 11% of each.
• The consortium is the front runner in all the three and has outbid GAIL in two projects.
• So, far the gas pipeline Business was dominated by GAIL and RELIANCE Industries Ltd.
• The Govt. is keen to expand the network to bring the considerable interstate disparity in the gas consumption.

TATA among first business leader UK PM met
• TATA was one of the few business global leaders whom Cameron had met soon after taking office.
• TATA group had played host to Cameron and his cabinet members when they visited INDIA July this year.
• The subject of meeting with TATA has simply been listed as “to discuss business issues”.
• This meeting is a part of transparency policy introduce by the new coalition Govt. In the UK.
• The meeting between Cameron and Tata reflects the importance of Tata group in UK.

Microsoft Profit, Revenue soar
• Software giant Microsoft Corporation has reported a 51% jump in net income to$5.41 billion dollar.
• The company has registered record revenue of $16.20 billion for the first quarter ended september30, 2010, a 25% increase.
• As said by Microsoft Chief financial officer “over ability to grow revenue while continuing the cost allowed us to deliver another quarter margin expansion.

Norway offers ONGC a bite of $1 billion carbon effect
• The Norwegian Govt has offered ONGC a stake in a $1-billion Carbon capture.
• The offer was made at a meeting between a Norwegian delegation, headed by state secretary
• Norway is also offering India technology for deepwater and subsea exploration.
• The Norwegian Govt holds 75.12%in the project, while state –owned Statoil owns 20%.

Nestlé’s, ITC’s net Profit up and Hero Honda’s down

Nestle

Net profit up by
20%

Current year’s profit
218.5 Crore

Corresponding year’s profit
182.78 Crore ITC

Net profit up by
23.5%

Current year’s profit
1246.7 Crore

Corresponding year’s profit
1009.9 Crore Hero Honda

Net profit down by
15%

Current year’s profit
505.6

Corresponding year’s profit
597.1


Samsung banks of Tablet PC, to take on I pad

Samsung electronics today announced its tablet personal computer “Galaxy” at the price of 38,000.
Galaxy to be sold from Nov, 10, has a display screen of 7” while the I-pad has 9.7”.
Both have 3G and wifi connectivity apart from features such as high storage memory.


Submitted by,
Varun Nayar
Vinit Bhardwaj
Vishal Singh
Zawad Ahmad
Sec-G

28th October- Economic Times

Section -E
Somya Bhattacharya


ONGC Q2 net up 6%, lags estimates-
State-owned Oil and Natural Gas Corp today reported a 6 per cent rise in its net profit to Rs 5,388.77 crore in the quarter ended September 30. ONGC had posted a net profit of Rs 5,089.64 crore in July-September quarter of 2009-10 fiscal, the company said in a statement. Sales rose to Rs 18,238.98 crore in Q2 of current fiscal from Rs 15,134.04 crore a year ago.

Most expensive car India, BUGATTI drives in Veryon at rs 16cr.-
The benchmark for luxury cars in the country just got higher with Volkswagen Group company Bugatti Automobiles today launching its super premium sports car ' Bugatti Veyron 16.4 Grand Sport', with price starting at Rs 16 crore, the most expensive car to hit the Indian roads. "Bugatti has been doing well in America, Europe and the Middle East. Now we see India as an emerging market for us, hence we have decided to bring the car to India," Bugatti Automobiles Sales Market Manager (Middle East, Europe and India) Guy Caquelin told reporters here.

Investor turning to Asia because of higher returns-
Markets run up a bit with regards to expectations. We have seen some profit taking already coming in over a past few sessions. So if the QE2 does not come out as aggressive as we expect, we potentially could see some more profit taking, but then again we have to remember the primary trend. This is QE2, this is another at least a couple of trillions of dollars into the system and that money will find its way into Asia some way or another, and that’s going to be good in a sense for Asian markets, Asian equity markets. So overall it is still a corrective profit taking, but in the medium term, it is positive for markets.

CBA live on TCS banking solutions platform in India-
Tata consultancy services on Thursday said Commonwealth Bank of Australia (CBA) has gone live on its banking solution platform in the country. "CBA was looking for an India ready IT solution that could be delivered quickly in a country where CBA had no existing IT team," Commonwealth Bank CIO International Financial Services David Boyle said in a statement in Mumbai.

G-20 accord needs US policy shift-
In the wake of the subprime crisis, the G20 coordinated its fiscal and monetary actions to avoid an economic catastrophe. It succeeded in averting a possible repeat of the Great Depression.

In recent months, as most people have come to believe that the worst is over, the sense of emergency is gone. Cooperation has given way to bickering. Quarrels have erupted amongst the G20 as to how best to sustain the ongoing recovery. As a result, growth in the advanced economies remains sluggish and is acting as a drag on the global economy.

Over 200 aravalli mines are still functional-
Rajasthan government claims it is sticking to Supreme Court instructions but the ground reality is different. TOI has documents that show that mining in Aravallis has not completely stopped, as claimed by the state mines and geology department affiadvit filed in Supreme Court. A survey by ministry of environment and forest (MoEF), GOI, says over 200 mines are still functional in the Aravallis. It says that although, state government had informed the Supreme Court about 53 leases granted after December 16, 2002. a verification by the MoEF revealed several mines were functioning in the area and their numbers were far more than what government had submiited to the court.

Indian IT exports to be higher than anticipated-
India's IT exports this fiscal would be higher than anticipated, given the strong second quarter numbers posted by some big companies, Infosys technologies CEO S Gopalakrishnan said today. IT exports are estimated to grow between 13 per cent and 15 per cent in 2010-11, up from about five per cent in the previous year, he said.

HDFC standard life hopes to break even in FY12-
Insurer HDFC Standard Life Insurance Company Ltd expects to break-even in the 2011/12 financial year, helped by an increase in premium income and reduction in operating costs, its chief executive said.The joint venture between India's top mortgage lender, HDFC, and Britain's Standard Life, had posted a loss of 2.75 billion rupees ($62 million) in the year ended March 2010, lower than 5.03 billion a year ago and is expected to stay in the red this year.

28th October - Business Line

seema shakhavat
santosh sandeep

Uttarakhand demand fund for border areas
summary-chief minister of uttarakhand Mr. Ramesh Pokhriyal yesterday demanded for the 21,200 Cr. Rs for the development of the uttarakhand . This money is for construction , strengthening of border roads & extension of railway lines in the state. He also demanded for the relief of the flood effected people, for the modernization of police force.
This money is demanded from the central government for the stablishment of the state so, the people those who lost there houses in flood can be shifted to the other place. He also demanded for more hydro power plant in their state .


ONGC appoints auditors to certify oil , gas reserves

summary- Mr. R.S sharma chairman and M.D of the ONGC(oil and natural gas co-corporation )
government share is 74.14% in ONGC , which of the 5% sell of could fetch about 10,790 .
petroleum secretory is S. sundarnathan .
The department of disinvestment will decide on timing and alottin of the issues keeping on in mind issues such as overcrowding the market .
the company gets its reserve audited every five years , but due to planned FPO it is getting a certification in the third year.

Hul's growth strategy will volume driven : CEO
summary- MR. Nitin Paranjpe is the CEO & the M.D of the HUL.
Sustained volume growth for the third consecutive quarter on the back of price cut has helped HUL registering a 32% increasing in net profit atrs 566 Cr. This quarter .
In this company , price increase in last quater on the RIN brand about 7-8 % and also some price increase in the personal wash portfolio.

Tata plans

Titans industries ltd. Plans to open nearly 40 new stores across India in the next 3 years under its titan eye plus brand to market eye product . In the last three years titan eye plus expanded to 42 cities and town across India . Its stores , conpanies retail and design expertise to offer a range of over 1000 stylish product .

28th October - Mint

Shailendra Singh
Sharvan Pandey
section h

AIR INDIA BAIL OUT HITS TURUBULAENCE

1)The cabinate committe on economic affairs (CCEA) said NO to AIR INDIA for second equity infusion of 1200 crore as air india was not able to fullfill specified target.
2)Air india has already receved an equity of 800 crore in last fiscal and 1200 crore.
3)CCEA has stated directly by the time GOM ministers okay this exception they will not fund.
4)There is a fear that GOM may come out with New condition's.

BCCI GIVES KOCHI 30 DAYS TO FIX ISSUES

1)The governing council of IPL gave 30 days to KOCHI franchise.
2)president BCCI said that KOCHI franchise should solve the problem between the two share holders of the team.
3)If they are not able solve the issue then there agreement will be terminated.
4)In the worst case there will be new tender for the team.


INDIA MALAYSIA STEP CLOSE TO ECONOMIC COOPERATION TREATY
1)Commerce minister ANAND SHARMA with his malaysian counter part MUSTAPA MOHAMAD on wednesday in front of there prime ministers.
2)Signed an agreement for the establishment of economic cooperation treaty.
3)This treaty will be signed on 31 january 2011 and will bee in effect from july.
4)India is already in treaty with singapore and south korea.

BJP IN NEW TROUBLE OF INVOLMENT WITH AJMER BLAST

1)Congress led Rajasthan government has placed fresh charges on RSS in regards to Ajmer blast in 2007.
2)RSS which is a partner of BJP is in trouble as Rajasthan ATS has given some of there members name in charge sheet prepared recently.
3)ATS says that they have sufficient amount of evidance against there names.
4)charged persolity like devendra Gupta,lokesh Sharma,chandra shekra lavesays that congress government is making uses of rajasthan ATS.


WAR OF WORD'S BREAK'S OUT BEFORE OBAMA VISIT INDIA!

1)A Weak before OBAMA'S visit to india on 6th of next month.
2)A war of words has started between Indian and US official for the SHARED INTELLEGEANCE INFORMATION on security issues of 26/11 and others .


CRAIN-VEDANTA DEAL HAS JURISDICTION ISSUES : GOVT

28th October - Business Line

Santosh
Section- F
Money and banking
Union bank net down 40% on higher provision

Non-performing assets of u.b.i has decrease 40% to Rs 303 crore for the quarter ended September 30,2010 from Rs 505 Crore as compare to last quarter ended.NPA Provision increased to Rs 629crore as compare to Rs 102 crore. According to chairman and managing director of u.b.i Mr. M.V NAIR NPA provision was decreased Rs 417 crore due to Farm dept loan debt waiver and relief scheme and Rs 310 crore from some export oriented account.
CASH Recovery
Mr. nair said that he expect cash recovery of Rs 430 crore in second half against Rs 283 crore in the first half and increase NPA'S of Rs 373 crore as against Rs 203 crore.
The bank plan is decreased cost of deposit decreased 5.37%as compare to 6.29%The bank targeting 25% growth in credit and 3.1% Net margin and CASA ratio 33% in current fiscal year.
Corporation bank to offer marriage loan

Corporation bank launched three products-corp shubha vivah,corp ghar shobha and corp sb smile in manglore.
Executive director of bank said corp subh vivah related to marriage.in such se cheme loan paid five to seven years and interest rate of 12%(4.25%above the base rate).age between 25 to 65 years person can take the loan minimum 1,00,000 and max.10,00,000.
In corp ghar sobha scheme person can 10,00,000 for meteo cities and interest rate is 10%.
In corp Sb smile scheme is for made street vendor or hawker.in this scheme initial deposit of Rs 200 when balance touches Rs 6000 the system would automatically transfer in units of Rs 1000 to fixed deposit leaving min.bal.Rs in Sb account. This scheme are launched designed in mind specific needs of target segments.
RBI Tightens salary account opening Rule

RBI has gives order that if employer opening account in bank then bank require one additional proof such is kyc document for identity and address proof beginning required pass port,driving license,pan card , voter I.card and address proof.
IFC,NHB and Rajasthan govt to set up housing finance firm-
IFC ,national housing bank and rajasthan govt. plan to established a housing finance company in the state to provide home loan to low income house hold.
Ifc is the member of world bank group.ifc has own stake and this stake mobilization from stakeholder such as national housing bank,the govt.of rajasthan,and private sector bank will help now company has initial capital of $22million.
MARKETING
HUL GROWTH STRATEGY WILL BE VOLUME-DRIVEN :CEO

HUL cuts the price rate in the third quarter so the volume growth has increased so net profit increased 32% (Rs 566 crore).hul tries to decrease the price of inputs cost inflation through buying efficiency and cost saving pro-gramme .
Titan plans 400 eye plus stores

Chief operating officer Mr.s. Ravi kant said that titan industries plan to open 400 new stores across India in next three years under its titan eye plus brand to market eye care products.
The company mainly focusing on west.in last three years company expanded in business in 42 cities and towns.
Company's retail and design expertise offer a range of over 100 stylish products,with minimum warranty of six months.
COMMODITIES
Crude oil declines in as US supplies increase

The price of crude oil fell in the first time when US excess supply of crude oil and also dollar increase.
American petroleum institute said inventories of last week were 6.4 million barrels.supply of 1 million barrel oil the dollar climbed to a one week high against euro.The dollar increased 0.6%to $1.3771 per euro,the strongest level since oct 20 before trading at $1.3803 in new york,compared with $1.3859.so in such type ssss
Gold eases towards $1330/oz

Europe announced that the price of gold increased $1300 as the doller firmed versus the euro.
In India,price of gold has increased due to the demand of festival session as dhanteras this is one of the biggest festival for gold selling.
Among other precious metals palladium wast at $ 622.49 an ounce against $620.63,this price highest touches its highest since 2001 at 636.25 an ounce.

28th October - Business Line

Seema Shekhawat
Section -F

RBI chief warns of speculative capital flows
Speculative capital flow along with the problem of appereciating currancy as lead to asset price build up in emerging market technology. The ultra loose monatry policy of the central banks of developed countries has lead the situation. They invest for quick returns in the financial market of the developing economy, since aug FII have invested 15 billion dollar into the indian equity market.

2)Two third of states yet to remit pension scheme contributions.
Two third of the state government and a couple of union territories have not remitted the pension contributions of their new employees to bank of India which is the trusty bank for the accumulated money under the new pension scheme.


3)Biocon Ltd. To set up Rs. 715 Crore by similar facility in Malaysia.
The US FDA compliant plant would be operational by 2014 and high yield bio similars and bio pharmaceuticals for the global market. This is the biggest bio-technology investment in Malaysia. The facility with a head-count of 200 would come up at bio-Xcell Biotechnology Park in Iskandar Malaysia, close to Singapore.

4)Indian Hotels to raise Rs 850 Crore through prefferential allotment to TATA Sons.
IHCL that operates Taj Group of hotels and resorts will be raising around Rs. 850 Crore in two tranches through a prefferential allotment of shares to its main promoters – TATA Sons Ltd.

5)Dabur's Consolidated Q2 Net up 15.4% on cost control measures.
Growth in volumes of key categories and cost control measures led to an increase of 15.4%IN Dabur India Ltd. Consolidated net profit for the 2nd quarter ended in September 30 at Rs 160.35 Crores. Despite a significant rise in input cost, Dabur restricted its material inflation through higher buying effeciency and stringent cost saving programme.

6)HCL Infosystem net drops over 19% in Q1
HCL has reported over 19% drop in consolidated net profit for Q1 ended September 2010 on account of slower system integration, business wage hikes, a new investment in building of capacity.

7)sensex falls 216 points – a result dissapoints
strong sales on wednesday, driving the benchmark index to a 1 week low as financials reported by companies including NTPC Ltd and Asian Paints Ltd concern over slowing profit growth.

8)Crude Oil Declines as US supplies increases.
Crude oil fell for the 1st time in 4 days, after US supplies increases and dollar appreciated, curbing the appeal of comodities to investors.

28th October - Business Line

Seema Shekhawat
Section -F

RBI chief warns of speculative capital flows
Speculative capital flow along with the problem of appereciating currancy as lead to asset price build up in emerging market technology. The ultra loose monatry policy of the central banks of developed countries has lead the situation. They invest for quick returns in the financial market of the developing economy, since aug FII have invested 15 billion dollar into the indian equity market.

2)Two third of states yet to remit pension scheme contributions.
Two third of the state government and a couple of union territories have not remitted the pension contributions of their new employees to bank of India which is the trusty bank for the accumulated money under the new pension scheme.


3)Biocon Ltd. To set up Rs. 715 Crore by similar facility in Malaysia.
The US FDA compliant plant would be operational by 2014 and high yield bio similars and bio pharmaceuticals for the global market. This is the biggest bio-technology investment in Malaysia. The facility with a head-count of 200 would come up at bio-Xcell Biotechnology Park in Iskandar Malaysia, close to Singapore.

4)Indian Hotels to raise Rs 850 Crore through prefferential allotment to TATA Sons.
IHCL that operates Taj Group of hotels and resorts will be raising around Rs. 850 Crore in two tranches through a prefferential allotment of shares to its main promoters – TATA Sons Ltd.

5)Dabur's Consolidated Q2 Net up 15.4% on cost control measures.
Growth in volumes of key categories and cost control measures led to an increase of 15.4%IN Dabur India Ltd. Consolidated net profit for the 2nd quarter ended in September 30 at Rs 160.35 Crores. Despite a significant rise in input cost, Dabur restricted its material inflation through higher buying effeciency and stringent cost saving programme.

6)HCL Infosystem net drops over 19% in Q1
HCL has reported over 19% drop in consolidated net profit for Q1 ended September 2010 on account of slower system integration, business wage hikes, a new investment in building of capacity.

7)sensex falls 216 points – a result dissapoints
strong sales on wednesday, driving the benchmark index to a 1 week low as financials reported by companies including NTPC Ltd and Asian Paints Ltd concern over slowing profit growth.

8)Crude Oil Declines as US supplies increases.
Crude oil fell for the 1st time in 4 days, after US supplies increases and dollar appreciated, curbing the appeal of comodities to investors.

28th October- Financial Express

sanjay singh rathore
shabnam hazarika
section i


S.B.I branches stop Iran Company’s dollar transaction
•S.B.I has directed its overseas branches to stop transaction with Iran entities.
•The state owned bank pondered on this decision after discovering few cases where Iranian entities attempted to break into the bank’s vulnerable accounts and transfer it to their own personal use.
Corporate& markets
IHCL to allot Rs 850cr shares Tata sons
•Indian hotel company (IHCL) said it will raise around 850cr through preferential allotment to the main promoter Tata sons in the next 18 months.
•The funds have been raised for the main promoter of the company Tata sons
•It will be used to retire debt on its accounts.

Biocon to set up $161m facility in Malaysia
•Biocon is going to invest $161 million in setting up a new manufacturing and research facility in Malaysia.
•Chairperson Kiran Mazumdar Shaw- said the newly build manufacturing plant will concentrate on manufacturing of insulin’s for diabetic treatment as required by its $350m global market deal with Pfizer
•Mazumdar also said that the company will hire locally and taking talent from India.

Special news
ONGC gears up for FPO, appoints auditors
•ONGC has appointed consultants to undertake the audit of its oil and gas reserves
•The auditors will asses oil and gas reserves in only 15 out of company’s 150 oil fields

Railways to come with smart cards
•The Indian railways is on the verge of proposing talks with the S.B.I to process a rechargeable smart that can be swapped to board a train for every passenger
•Mamata banerjee railways minister also assured the people the that Indian railway system would be free of accidents within 6months with the introduction of anti-collision devices

Commodities
Pest attack, bad whether likely to prune tea output
•Tea production will be lowered this year to a margin due to pest attacks and erratic weather
•In the north eastern region tea production dropped by 20 million kg
•Exports would be lower as buyers are staying away since exports has come down for the year to Rs 131/kg against Rs 138.21 during January – august 2009

28th October- Economic Times

smit desai
soumya
srinivas rao


Sensex today opens at 20005.37(dips 216 pts.)
Nifty today opens at 6012.65(down 1.14%)
Sebi allows bourses to shift to European-style options trade:-
Securities and Exchange board of India (sebi) has allowed domestic exchanges to introduce European style stock Options, a move that is expected to boost volumes in these contracts. In previous Indian Exchanges are in American style which can be exercise during anytime of the contract tenure but in these European style a buyer can exercise only on the expiry day. Exercise means terminating a contract.
Accounting Fraud drags TRF 20% down:-
SHARES of TRF — a Tata-promoted manufacturer of material-handling equipment — crashed 20% on Wednesday, after the management told analysts at a conference call that it had to write off . 46 crore because of an accounting fraud in one of its divisions. An email sent to the company spokesperson did not elicit any response.
According to analyst, the company said that an extensive investigation had been done and corrective measures taken to prevent recurrence of such incidents.
“The officials responsible for this have been suspended and figures have been restated after taking corrective measures,” said the analyst. TRF, formerly known as Tata-Robins-Fraser provides material handling equipment and processing systems. It also undertakes projects for power and steel plants, ports, fertilizers and mining sectors.
Pharma co.’s sales catch flu as H1n1 fears ebb:-
As the rate of swine flu is decreasing the companies which had produced lot of drugs are not able to sale off them, so they are looking for government tenders.
Warehouse projects a non-starter in UP:-
In UP, 57 warehouses with a total capacity of 26.81 lakh tonne have to be allotted. But only 35 tender documents have been sold till now. Apprehensive of a poor response, the authorities have now extended the last date of tender submission till November 16. “Minimum 2 acre land is needed to build a 5,000-tonne warehouse, which will entail an investment of Rs 1.5 crore and above. That is not a business proposition many would jump at,” said a UP State Warehousing Corporation official. The corporation is the nodal agency acting on behalf of FCI for executing the project in the state.
UN sanctions on Iran may hit tea exporters:-
THE United Nations sanctions against Iran may impact tea exports to the Middle-East Asian country where demand for India’s high-end orthodox tea is increasing.
Following the sanction, Indian exporters are facing problems in opening letters of credit for their shipments. A letter of credit is a bank document that assures sellers that a trading partner will pay for imported goods. It is used frequently in international trade. At the moment, Iranian traders cannot get letters of credit while European insurers are banned from insuring cargo entering Iran. Even most banks in the United Arab Emirates, an important trading partner for Iran, have stopped money transfers after the latest round of sanctions against the Islamic republic.
Eggs may cost more on rising feed prices:-
Egg prices in the wholesale Delhi market were ruling at Rs 2.70 per egg with retail price varying from Rs 3-4 per egg. However, broiler prices have come down from Rs 80 to Rs 45, owing to an increase in production this year. “The age-old myth of eating eggs during winter to stay warm is ensuring a great demand in the coming months. Wholesale egg prices, in a few days, will touch Rs 3 an egg. The November-January period is the season when the demand increases,” said M Batliwala, general manager, National Egg Coordination Committee (NECC).
Mahindra-navistar ready to hit roads:-
After initial hiccups, Mahindra-Navistar joint venture is getting its act together by stepping up investments in innovation, product launches and services. Rakesh Kalra, managing director of the JV in an exclusive interview with Lijee Philip talks, among other things, about how the company is betting on 25 and 31 tonne trucks, to be launched in the country this festive season, to take on competition in the high-end commercial vehicle market.
Add digital sign to sms, phone:-
SOON, you may be able to digitally sign emails and SMS’s sent from your mobile phone. The government is drafting a plan to allow proxy SIM cards carrying digital certificates to be used in mobile phones, which can make emails and SMS’s sent from a mobile phone secure.
Wiki eager to move across population:-
Founder Jimmy Wales To Be In India Next Week To Increase Awareness About Online Encyclopedia. WIKIPEDIA founder Jimmy Wales, who will be in India next week to drum up awareness about the online encyclopedia and increase Indian language contributions, says he's a pathological optimist. The Wikipedia project has not only built the largest online encyclopedia, but a resource that is free, collaborative and credible. In an era where integrity of information is often in doubt, it has successfully leveraged the internet's positives and cancelled out its negatives.
"We've come a long way and are quite successful in maintaining its high quality but we have a lot of work to do, especially in this part of the world," Mr. Wales told ET in an interview from Hong Kong, before travelling to India. "I did have great hopes for Wikipedia but it has exceeded even my expectations," he admitted. Wikipedia's annual budget is a shoestring $20.4 million, despite having increased over the years since it started in 2001.
Reva plans china entry to cash in on green car drive:-
The world's largest electric car-marker, Reva motors plans to enter china in the hope of cashing in on rising demand for eco-friendly cars as government push to stricter emission norms globally.
kochi IPL gets month's breather
kochi IPL team gets one month time to solve the conflicts of the ownership or not to participate in the coming IPL season.
InfoTech
Indian it industry to raise outsourcing issue with Obama
The Indian IT industry will raise issues related to outsourcing and immigration with US President Barack Obama during his visit to India next month, Infosys Technologies' chief executive S. Gopalakrishnan said on Tuesday. Admitting that the new US immigration policy was worrying the Indian IT industry, Gopalakrishnan said though the US Border Security Bill had nothing to do with immigration, it has had an impact on the cost of IT services firms. In light of the uncertainty at the macro level and higher unemployment rate in the US, the top official said technology spending in the US in 2011 was going to be similar or slightly better than in 2010.

"I expect IT budgets to be flatter or slightly up. Our way of going up the value chain is to take increasing share of the tech spending, as global outsourcing gets larger share of the pie," said Gopalakrishnan.
World's lightest smartphone to hit India via Micromax
The world's lightest smartphone, weighing just 60 grams, is all set to hit the Indian market to make the most of the ongoing festive season.
Israeli entrepreneur Dov Moran's company Modu, which launched tiny smartphone Modu T last week, has announced striking a partnership with India's third largest distribution company Micromax for the venture, business portal Calcalist reported. Micromax will sell the cellular phone as part of a package that includes two "jackets", which are add-on sets for the Modu, at Rs 12,500 ($282). The Modu T is a 3.5 generation smartphone with a 2.2 inch touch screen and has Qualcomm's Brew operating system and an array of Java-based applications, including Snaptu, Facebook, Flickr and media player TuneWiki.

Apple launches online store in China
Apple on Wednesday launched online sales in China and made its App Store available in simplified Chinese, as the US technology giant expands aggressively in the world's largest mobile market.
Apple opened two new retail shops in mainland China last month as it launched the iPhone 4. It now has two shops in Beijing and two more in Shanghai, with a total of 25 outlets expected by the end of next year. The iPhone 4 made its debut in China on September 25, a week after Apple officially launched the iPad in the country, with some customers queuing for several days to get their hands on the computer.
China has at least 420 million web users and is also the world's largest mobile market with more than 833 million subscribers at the end of September, according to official data.
IT sector aims to soften image as Obama visits India
US President Barack Obama's visit to India puts the spotlight on its $60 billion IT sector, which argues it is a creator of jobs in the United States and should not be blamed for high unemployment. Obama is expected to visit Mumbai, India's financial hub and the center of the 2008 militant attacks. U.S. officials say much of the trip's focus will be boosting trade that is expected to double in five years from the current level of $50 billion. But it is a sign of the times that Obama is not expected to visit Bangalore, the country's technology hub. U.S. officials say much of the trip's focus will be boosting trade that is expected to double in five years from the current level of $50 billion. Obama's fellow Democrats are expected to take a drubbing in the Nov. 2 balloting amid unemployment stuck near 10 percent. In California, where the jobless rate tops 12 percent, Democratic Senator Barbara Boxer accuses her Republican rival Carly Fiorina of sending jobs abroad when she was chief of Hewlett-Packard.
India's IT services industry, which generates 70 percent of its revenue from the United States and accounts for 5 percent of India's economy, is a victim of its own success. Before the global economic downturn, the sector was growing by roughly one-third per year as companies across industries shipped commoditized work to India and elsewhere to cut costs.
HDFC Standard Life hopes to break-even in FY12
Insurer HDFC Standard Life Insurance Company Ltd expects to break-even in the 2011/12 financial year. The joint venture between India's top mortgage lender, HDFC, and Britain's Standard Life, had posted a loss of 2.75 billion rupees ($62 million) in the year ended March 2010, lower than 5.03 billion a year ago and is expected to stay in the red this year. HDFC Standard Life could launch an initial public offering in the second half of 2011 if an insurance bill, which proposes raising the foreign holding in insurance firms to 49 per cent from 26 per cent, is approved by the Indian parliament.
Bharati, Aircel keen on Qualcomm BWA biz:-
Bharati Airtel and Aircel cellular are interested in buying the yet to be launched Indian wireless broadband of Qualcomm.
Airtel has 3G spectrum in Delhi, HP, UP, and Rajasthan. They have broadband wireless spectrum in Punjab. Haryana is the only missing link for them in north India.
While coming to Aircel cellular keen on mumbai and Kerala circles.
BSNL to float $3.5-b tender:-
BSNL wants to procure equipment for 40 million GSM lines. BSNL is yet to decide whether it wants a single contract or split the contracts over two year period.
General
cat2010: NO glitches on Day1
Cat 2010 has been started on 27th oct and there is peace while compared to previous year. And the no, of students have been decreased from 2.42lakh to 2.06 lakh.
Barack Obama’s visit to India
Days before US president Barack obama visit to India there were war of words between the two countries US and India about the information on LeT operative David Coleman who was involved in the 26/11 attack. India has asked that they did not provide the information regarding him where as US says that they had provided the complete information.
Karnataka disqualified MLA's
Karnataka’s qualified MLA's files a case in Karnataka High court against the speaker K G Bopaiah saying that he had been given judgment supporting Karnataka's chief minister.

28th October -Business standard

Section-G
Sweta Chhapolia
Sneha Singh


SENSEX: 20005.37
NIFTY: 6012.65
$:44.46, RUPEE: 44.44
GOLD (Rs/gm):19445
SILVER (Rs/Kg):35605

MAJOR HEADLINES:
• Pawar plays the grain game
• AI finalises low cost domestic flight plan
• Vallarpadam shipping hub still not ready for full launch
• Kochi IPL team gets 30 days breather
• Beware of the cost intervention says Subbarao
• CARIN-VEDANTA has jurisdiction issues-says Govt.
• Iron ore booking clamps hit railways receipt
• Sugarcane decontrol talks next month
• PM seeks growth over wealth creation
• Home ministry disappointed with US intelligence sharing

COMPANIES:

1-Kochi IPL team get 30 days time-

BCCI today gave a 30-day window to the owners to sort out differences and work out a shareholding
Structure
2-Vallarpadam shipping hub still not ready for full launch
The latest deadline for the two-decade-old proposal for a trans-shipment hub at the Vallarpadam Island near Kochi is January
It appears that work is unlikely to be over by then and it will take several more months to become fully operational
The proposed International Container Transhipments Terminal (ICTT) would have a capacity of three million TEUs, a measure used in contained shipping. It would be India’s first
3-INDIAN HOTELS TO RAISE 850 CR FROM TATA SONS
IHCL, the Tata group firm which owns the Taj chain of hotels, on Wednesday posted a net loss of rupees 6.30cr for the second quarter ended September 30

They will raise money by issuing shares and warrants to the promoter company, Tata Sons.
The IHCL board today approved the issuance of 36 million equity shares of face value of Re 1 in this financial year to Tata Sons
4-JSW steel seeks 1,100 acres more for Bellary expansion-
JSW Group operates a 6.8 million tonne per annum steel plant at Toranagallu in Bellary district of Karnataka.
It has sought 1,100 acres of land more from the Karnataka government to expand its steel mill capacity.
This would see an investment of Rs 10,000 crore
The government is ready to give them additional land, but subject to scrutiny by the land audit committee.
5-UNINOR’s revenue doubles in Q3 TO rupees 162 crore-
Uninor’s average revenue/day also increased by 8% on a quarter on quarter basis to 98.4 crore.
However average revenue/day was lower to industry average of 150 crore
6- TATAs step into shoe retail, plan 6 stores by next month-
Within 3 months of Noel Tata taking over as managing director of Tata International, export arm of the Tata Group, it announced today a foray into footwear retailing.
The chain is looking at opening 300 stores in the next 5 years.
The store sizes range from 2,000 to 4,500 sq ft.

ECONOMY
1-PM seeks growth for wealth creation-These are the key features to the growth;
Rapid economic growth that will create wealth for our people and also generate surpluses to fund our ambitious social development programmes
Growth that creates employment and development that is socially and regionally balanced and inclusive
Build a modern, knowledge and science-based economy
Development to be sustainable.
Cooperative relationship with our neighbours and other partners.
Finally, ‘’India seeks to realise its development ambitions within the framework of a plural and secular democracy, where each citizen should have equal opportunity for economic, social and cultural advancement.”
2- High crude oil prices may delay diesel de-control-
Diesel decontrol is unlikely to happen in the near future, given the high crude oil prices.
This could lead to rise in retail prices that will push up the already high inflation rate.
Diesel price deregulation will mean an increase in prices.
MARKETS
1-SEBI steps in to improve liquidity in stock groups –
It has allowed stock exchanges the flexibility to offer either European-style or American-style contracts.
At present, only American-style contracts are allowed in stock options.
Sebi’s circular, issued on Wednesday, says after opting for a particular style, a stock exchange shall offer options contracts of the same style on all eligible stocks.
A European option can be squared off only on the day of expiry or maturity.
If a stock exchange wants to switch back to American-style contracts, it can do so after Sebi’s approval.
2-Downtrend could last for 1-4 weeks-
The market is in an intermediate downtrend it could mark time through the settlement session.
We’ve seen declining tops, but support at 5,975 has held after being tested thrice.
On the upside, there’s strong resistance in the 6,075-6,150 range.
INTERNATIONAL
US feed looks set for new round of monetary easing
ORACLE CEO claims he can prove software theft by HP CEO
GLAXCO to pay $750 million over defective drugs.

OPINIONS
1. CURRENCY WARS AND INDIAN POLICY
A Piece of My Mind – Shankar Acharya
Brazil's foreign minister stated on 27th September that the "international currency war has erupted"
The three major issues surrounding these issues are
1) Influx pegging of Chinese Yuan to US Dollars
2) Loose monetary policy followed after the global crisis by major industrial countries
3) Policy rate zero, cheapening of the currency involved
Moreover there is spill over impact of many emerging economies due to flood of international liquidity flowing
-Efforts at modernising global trade imbalances must involve a central role in yuan appreciation
-With EME currency appreciated, international competitiveness has weakened. Counter measures saw Brazil doubling tax on debt inflows.
-India with all official pronouncement favouring” inclusive growth” hasn’t done much, as the exchange rate policy has lead to job losses.
Moreover sharply appreciated rupee has also weakened the viability of the Balance of Payment.
REMEDIES
RBI should intervene in Forex market to counter the excess capital inflow
One should also deploy tool for capital account management to contain surging flows
Govt should also try to impose temporary taxes as imposed by Brazil
Lastly they should also support the recent proposal for the numerical caps of 4 percent G.D.P and hope for a realistic enforcement mechanism to take place.
2. Time to Press Pause
It’s the wait and watch period for the R.B.I
The whole sale price inflation and food price inflation etc remain stubbornly high
Lightening of R.B.I'S monetary policy needs to be imperative
However core inflation and domestic commodity price has softened. Domestic growth is on the phase of consolidation
R.B.I'S rate hikes and tight security has lead to banks push up deposits rates thus it’s the time to wait and watch .this pause will not compromise R.B.I'S position as the inflation fighter

3. THE POWER OF DIGITAL WALLET
A BOOK REVIEW OF SAM PITRODA AND MEHUL DESAI'S
“THE MARCH OF MOBILE MONEY”
Harper Collin India- 248 pages
Technology has transformed multiple dimensions
The author states the introduction of mobile money or “digital wallet” replacing conventional wallet the book raises issues of improved productivity and efficiency of the digital wallet.
It is estimated that mobile money would gain more prominence in Asia cause of the highest existing mobile users.
Micro transaction on mobile would also be environment friendly.
Moreover the future banks would be borderless, have reduced cost of transactions, transparency, and there would be promotion of handling of multiple currencies across borders
Thus the book was both timely and thought provoking. A high recommended reading for stake holders, students and for all level of building managers.

27th October - The Economic Times

Shuchi Aggarwal
Shikha Yadav
Shivendra Pratap Singh
Section E


Small Investors may get bigger share in PSU floats,Pg.1
The department of disinvestment plans to pitch for a higher quota for retail investors in forthcoming share sales at state-run companies, as it looks to use the buzz generated by the Coal India IPO to take equity culture to Indian households. Existing norms stipulate that at least 35% of the shares offered in a book-built share sale, where investors are asked to bid in a pre-decided price band, must be reserved for retail investors.
The retail portion of the Coal India offer was subscribed 2.31 times, providing a fitting backdrop for an increase in the quota for retail investors.
senior finance ministry official said “With more purchasing power in the hands of retail investors, we expect good response from them and The idea is to share the wealth of public sector companies with the public” The move is aimed at sharing public wealth with small investors, spreading equity culture to a wider population, and broad-basing the market.
In 2009-10, public offers from PSUs, including that of power producer NTPC, received lukewarm response from retail investors. The retail portion of the NTPC offer was subscribed just 0.16%. The offers from REC and NMDC also met the same fate, with their retail portions failing to attract enough investors. Market analysts attribute this to aggressive pricing. All these issues received an overwhelming response after the government cut the offer price.
Given the budgeted divestment target of Rs 40,000 crore, state-owned companies will be the biggest issuers in the current financial year. Some of the major companies expected to hit the market this year are ONGC , IOC and Steel Authority of India.

IFRS norms may be diluted before rollout,pg.1
the government plans to dilute some key provisions relating to foreign exchange differences and overseas borrowings which will make global investors suspect Indian accounting, say three people closely associated with the development. In the case of accounting for foreign exchange differences that rise because of currency derivatives taken by firms, the government is looking at an option where companies need not provide for any loss in the profit and loss statement but rather just carry forward the value as at the end of March 2011, according to a ministry of corporate affairs official, who declined to be named as he is not authorized to talk with the media.
The National Advisory Committee on Accounting Standards (NACAS), an advisory body for the corporate affairs ministry, is in favor of allowing companies not to provide for mark-to-market (MTM) losses on their foreign currency convertible bonds (FCCBs), says a member of the advisory board.

MTM is an accounting principle where the value of the contract is marked at current exchange rate for currency derivatives and current bond price for FCCBs. both dilutions will be major departures from what the International Financial Reporting Standards (IFRS) prescribe. It has huge upside for India Inc in the short term by helping it to avoid reporting such MTM losses prescribed by IFRS. But it may work to its detriment in the long term by making companies unattractive to global investors.
When companies first adopt IFRS, the standards lay out a procedure on how to treat the foreign exchange differences. It gives two options — the first is to reduce it from the profits and the second is to revalue all the assets in the balance sheet and adjust the loss arising from exchange differences with the reserve created from such revaluation. Both will have a negative impact — one will reduce the profits and the other would shrink the balance sheet. So, companies have sought dilution of the provision.
The whole issue of accounting for changes in foreign exchange rates came to the forefront during global financial crisis, after Lehman Brothers collapse.

Many exporters and foreign loan holders took cross-currency derivatives to hedge their exposure not just to protect them from currency movements but also to make profit from such bets. They placed their bet on so-called safe currencies like Japanese yen or Swiss franc. But when the crisis was at the peak, both the yen and the franc moved in ways not seen for years. Japanese yen fell below 100 mark against the dollar for the first time. The extent of losses are not known, but the Reserve Bank of India in its submission to the Orissa High Court stated the mark-to-market losses for customers who bought these derivative products were estimated at Rs 37,719 crore in December 2008. Further, it said 22 banks that sold complex derivative products lost Rs 756 crore as of December 2008.
MARKET

Shrinking Bank revenue signals growth worries,Pg.19
shrinking revenue at US banks, led by Goldman Sachs Group and Citigroup, may continue to fall as the industry heads into what could be its slowest period of growth since the Great Depression .

After the six largest US banks posted record revenue in 2009, combined net revenue fell by an average of 8% in the third quarter from a year earlier and 16.3% over the last two quarters, according to data compiled by Bloomberg.

Revenue so far this year is down by 4.1%, driven by declines in everything from trading at Goldman Sachs to home lending at Bank of America. New laws restricting account and credit-card fees, as well as derivatives and capital rules, are also squeezing lenders.

Next year will kick off a decade that will bring the “worst revenue growth” for US banks in 80 years, according to Mike Mayo, an analyst at Credit Agricole Securities in New York. Net revenue at US commercial lenders has expanded at a slower pace in each of the last three decades , falling to 6% in the last decade from 12% in the 1970s, says Federal Deposit Insurance data.

“Revenues aren’t just weak for this quarter, or even for this upcoming year, but for the entire upcoming decade,” said Mayo, a former Federal Reserve analyst, who has more than 20 years of industry experience . “The speed limit’s been lowered for how fast banks can drive earnings.”

The trend over the last two quarters is hitting almost every line of income statements and is spread across the sector, affecting investment banks, consumer banks and commercial lenders. It’s eating away at profits, depressing stock prices and threatening bonuses and new hiring.

Economy

Warehousing Act comes into force, receipts now negotiable,pg.27
The Prime Minister’s Economic Advisory Council has recommended cross-representation of the Forward Markets Commission (FMC), the Bureau of Indian Standards (BIS) and the newly formed Warehousing Development and Regulatory Authority (WDRA) on each others’ boards.
This is for better coordination among the regulators involved in the entire chain of warehousing and warehousing receipts, its tradability and delivery. And, to address disputes arising among end-users involved in the chain.
The receipt representing goods stored in warehouses will be traded on exchanges regulated by FMC. These receipts, to be eligible for trading, should represent universally accepted quality parameters of the goods to be delivered on expiry of receipts. These parameters of the processes and infrastructure involved in supply and storage of goods will be worked out by BIS.
So, having representation on each others’ boards would facilitate development of warehouse receipts and their tradability, since WDRA could draw upon the expertise of FMC and BIS in setting up quality parameters for goods and specification of receipt for trading. Warehouses play an important role in commodities futures, as most trades are settled with delivery.That is, if the seller chooses to hand over the commodity instead of the difference in cash, the buyer must take physical delivery of the underlying asset. A warehousing system and warehouse receipts act as the chain, connecting farmers with the futures market and credit financing.
A warehouse receipt is a document that provides proof of ownership of commodities (e.g., rice or wheat or bars of copper) e stored in a warehouse, vault or depository for safekeeping. Negotiable warehouse receipts allow transfer of ownership of that commodity without having to deliver the physical commodity. These receipts are also used as collateral for loans for bank financing. It may also show transfer of ownership for immediate delivery or for delivery at a future dateRather than delivering the actual commodity, negotiable warehouse receipts are used to settle expiring futures’ contracts. Their usage for futures’ trading thus helps in curbing wastage, especially in agricultural commodities, since the goods are not moved.
Commodities

Iron ore prices may soften in 3-6 weeks,Pg.26
The government is likely to finally allow iron ore futures trading by this month-end, chairman of the Forward Markets Commission, the commodity derivatives market regulator in India, said on Tuesday. The iron ore contract proposal was made by the Indian Commodity Exchange (ICEX), which is part-owned by state-run MMTC Ltd (MMTC.BO), which is the biggest Indian trader of the commodity.
Iron ore contracts in India, the world's third-largest producer of the ore, will help small exporters to hedge risk against fluctuating prices, traders and analysts said.
On sugar futures launch, Khatua said the launch of November expiry contract is not likely.
"Most likely December expiry contract will be the first one to be launched."
A bon on sugar futures trade by the government had lapsed on Sept. 30, after the world's biggest consumer expected sharp recovery in the local output.
However, the regulator has been studying proposals from the exchanges before giving the final go-ahead.
"We may decide on a few changes in the contract specification to improve the contract," said Khatua, adding, he will meet stakeholders in the sugar industry to improve the contract.


The Political Theatre

Australia pays up for CWG damages,Pg.2

The Australian mission at Commonwealth Games has paid Rs 10,000 as damages for the vandalism of some members of its squad who threw down a washing machine from the seventh floor of a Games Village apartment.

The alcohol-fuelled vandalism, first reported by TOI, could have taken a fatal turn if the machine had struck someone and led to condemnation of the behaviour of Aussie athletes concerned though no formal complaint was lodged. The amount paid covers the cost of the washing machine. No fine was imposed.

Australian squad were involved in at least two other incidents of overly boisterous behaviour in the dining area and on one occasion were led away by their managers.

The incidents were brushed aside as CWG organisers decided not to lodge a complaint while Aussie officials denied the incident (of the washing machine being thrown) had anything to do with the Test side losing to India in cricket.

27th October - Newspaper Summary

SAKET GARG
SANDIPAN MONDAL
SATYENDRA YADAV
SECTION H

Tayal moves court to unlock ICICI shares

The News:
Pravin kumar Tayal, promoter of the erstwhile Bank Of Rajasthan Ltd has moved the Rajasthan High court to access ICICI Bank shares worth at least Rs. 1000 crore.
The back Ground:
SEBI had frozen the demat account of Pravin Kumar Tayal and 100-odd related entities which owned Bank Of Rajasthan shares for alleged violation of regulatory norms
The Impact:
A court order in their favour would allow them to encash shares and clear liabilities to many banks.


Bharti prepay part of $7.5 bn loan
Bharti Airtel Ltd may prepay at least $1 billion (Rs.4,440 crore) of the $7 bn loan it took from banks to funds its acquisition of the African assets of Kuwait-based Zain Telecom according to a banker familiar with the development. The flexibility of prepayment has always been part of the loan agreement and Bharti has the option of prepaying based on its cash flow.


Venky’s hatches plan to buy English Football club
A Pune poultry farm and hatchery with global aspirations is set to become the country’s firsh owner of an English football club,albeit a bottom-of-the-league team.
Venkateswara Hatcheries Group, or VH group, is in advanced negotiation to acquire “Blackburn Rovers”, according to the both group and the club.
The group will pay 46 million pound (approx. Rs.322 crore) to buy the club, Bloomberg reports.
“Blackburn Rovers” the English Premier League (EPL) champion in 1995, currently standing fourth from bottom, having own nine points from as many matches.


Rupee gets its place on the keyboard-next to the dollar
The symbol for the Indian rupee will start appearing alongside the dollar sign $ and numeral 4 on computer keyboard by the middle of next year.
“It has been decided to place the rupee symbol on the right side of the 4 numeral key, where the dollar sign is also there”,said N.Ravi Shankar, joint secretary, depertment of information technology (DIT).
An official at leading PC manufacturer HCL Infosystem Ltd confirmed the development.
S.Rajendran chief marketing officer of another PC manufacturer, ACER India Pvt. Ltd, said the company will start putting the symbol on its keyboards one software companies such as Microsoft Crop. and other stakeholders also integrate it.


User Development Fees Increased--GHIAL
Hyderabad is set to become the most expensive airport to fly from. The user development fees is going to be increased from 1 November. The UDF has been raised by 26% and 87% for the passengers flying within country and abroad respectively. The Airport Economic Regulatory Authority(AERA) has taken this decision.GMR Hyderabad International Pvt. Ltd.(GHIAL) airport began charging Rs.350 from departing domestic passengers and Rs.907 from international passengers including taxes. AERA has consulted to the authority for taking this decision. And this decision will result in the profits of Rs.650crore for next three years. GHIAL suffered losses of Rs.120 crore in 2008-09 and Rs.109.22 crore in 2009-10.


Losses Lower Down Of Q2 By IBN18, TV18
Network 18 Media and Investment Ltd’s subsidiary IBN18 Broadcast Ltd narrowed its second quarter loss to Rs.13 crore from Rs.82 crore in the same period a year earlier. IBN18’s revenue increased 39% in the threemonths to end September, boosted mainly by Viacom 18, which runs channels such as Colors, Nick and VH1. Haresh Chawla, group chief executive, Network 18, said the company’s losses were minimized because of investments that came through in phases for all its brands. Mr. Chawla also added that he expects some improvement in the revenue. An analyst at a Mumbai brokerage, who did not want to be identified, said TV18’s “staff costs are high year by year and quarter by quarter but stil they managed their overall costs well.
First Case Going To Be Set By CBI against CWG
The Central Bureau of Investigation is set to register its first case to corruption allegations in the Common Wealth Games 2010. They said “we are verifying the papers received from the organizing committee(OC) and have gathered some evidence”. There is delay in the registration of an FIR (first information report) in the case. It is alleged that proper procedures were not followed and the firms were hired at exorbitant prices. CBI chief said “we are verifying the complaints. We will take action after others get over. But the focus of the investigation is largely on the work undertaken by the OC.


WHY SHOULDN’T HERO HONDA HAVE SOME FUN
Advertisements for mobile phones and services dominate the ratings for September,with 4 ads for telecom,featuring in the top 10 of the ad reach index,a measure of awareness and brand recall.But HERO HONDA is on the top in the race with an ad for its PLEASURE scooter,targeted at women.Hero Honda has the ad clocks 67 on the reach index.One of only 2 ads that breach the mark of 60 on the index for September while 8 ads had scored 60 or above on this index in august,including 4 that scored 70-plus.Food brands also did well in august,with 4 ads in top 10,but there is only 1 such ad in September-for Maggi vegetable Noodles.The Mint-Synovate-TVAd index survey covered 722 respondents from high income groups in Delhi,Mumbai,Bangalore.


STERLITE INDUSTRIES RESULTS DISAPPOINT
Sterlite announced lower than estimate financialresults for the quarter ended sep. the company’s operating income declined by 1% from the previous year to Rs.6,084 crores.Zinc and copper business which was in declined.
Sterlite’s aluminium bisiness contributed 12% revenue which was perfomed reltively higher than zinc and copper.Analyst s expected that global aluminium prices to increase which was increased by domestic and international demand.China’s move to cut aluminium production will help prices. Sterlite managed to inpove its oveall operating profit margin by 150 basis ptsto25%.Manwhile sterlite industrie’s stock has underperformed the sensex and BSE metal index the beginning of the fiscal.
Madras high court oder for the immediate closure of the company’s copper smelting plant in Tamil nadu.The supreme court has extended the stay on the order till the second weak of December.


EARNING SURPRISE AT TECH MAHINDRA
Tech Mahindra Ltd. has ported a positive earnings surprise for the September quarter,with operating profit adjusted for one-offs rising by 32.1% quarter-on-quarter.But investors are likely to have questions about the sustainability of this growth and hence the rise in the company’s share price.
The company reported a growth in revenue, but this revenue to an Indian client for hardware and software purchases and third party services.This is essentially pass-through revenue from a customer, on which the company has earned a margin of less than 5%.
But again,even this growth is a positive, considering that revenue have been flat in the past few quarters.Demand from the company’s top client BT GROUP PLC ,continues to be sluggish.
Tech Mahindra also reported a handsome 300 basis points improvement in margins,excluding the impact of the pass-through deal. As the chart shows, Tech Mahindra shares have underperformed this year because of the weakness in the telecom IT services space. Besides, as an end-september report by Citigroup points out, “ Tech Mahindra;s organic business stills carieers higher domain (telecom) and client concentration (BT) risk.Tech Mahindra will continue to struggle in the near term. “

27th October - The Financial Express

Rohit Mathur
Rovin Shrivastava

Multi-Brand retail FDI could start off with 51%

The prime minister office (PMO) has given the indication that they now agree to allow Foriegn Direct Invesment(FDI) up to 51% in multibrand retailing.
Previously the move was opposed by peoples and they raised concerns about the future of the kirana owners
The planning commission,Department of consumer affairs,commerce and industry ministry and agricultural ministry seems to be supporting the move.
And it will be further strengthened during the visit of US president Barack Obama in November.
Government has added some conditions to make sure that the benifits of small retailers and kirana shop owners are not demolished.
Initially only those retailers will be allowed to enter the indian markets who first invest in supply chain and other related backend infrastructure.
The firms must create jobs in india in rural areas.
The consumer affairs ministry has proposed that FDI should be allowed up to 49% and of that 75% should be spent on logistics,infrastructure and technology upgrade.


SEBI to tighten disclosure norms for business between related companies.
SEBI chief CB Bhave said that the disclosure norms for transactions between related companies could be tighten.
Because there is a possibility of avoiding or reducing tax liabilties by the by doctoring the value of the transaction between related parties and enterprises.
The norms would enable the revenue authorities to collect direct and indirect taxes.


Bharti Wal-Mart to rope in 35000 farmers by 2015
Currently Bharti Wal-Mart in a 50:50 cash and carry joint venture,is working with 550 farmers in India.
But to scale up sourcing of agricultural product from India it has announced that by 2015 it will engage 35000 farmers with it.
It will be training farmers on how to utilise the resources.
, it is also planning to open the skill centres across india to train 40000 students in next five years on the skill upgradation.


'Difficult to tame inflationat ideal 4-5% level'
Finance minister Pranab Mukherjee said that it is difficult to pull the inflation down to 4-5 level.
He said that annual inflation is likely to be around 6%.
RBI ,as part of its monetary review, has increased the CRR(cash reserve ratio) to tighten the liquidity.
Finance ministry urged the central bank to esure that monetary tightening should not choke growth.
Finance minister attributed inflation with rising food prices and said that it has come down to single digit in terms of consumer price indices.
Earlier the WPI based inflation stood at 8.62% in September while food price inflation was at 15.53%

Pranab pegs growth at 8.25%-8.75%;fiscal deficit target on track
Finance Minister Pranab mukherjee said that because of the rising consumption and demand the economy is expected to grow at 8.25%-8.75%.
He also said that it will be soon around 9% level.
He said that gross tax revenue has grown by 27.3% which is the fundamentals of he economy.
CBEC chairman V Sridhar said the goverment expects toexceed the budget target for customs and excise collections in this fiscal.
Total indirect collection would be Rs. 3.3 lacs crore as against the budgeted Rs. 3.15 lacs crore.
Government aims to reduce the fiscal deficit to 4.8% in 2011-2012 and further down to 4.1 % in 2012-2013.
The growth trajectory is 8.8% in the first quarter of the current fiscal year.
The exports,manufacturing sectors and corporate earnings are picking up.


UK GDP rises 0.8% in Q3, beats forecast

Economy of Britain grew 0.8% in the third quarter which is twice as economist forecast. GDP had seen arise 1.2% in previous quarter. Economist forecast a 0.4% gain.source Bloombergnews survey.
As the economy grew Peter Dixion, an economist at commerzbank AG in London said that, The UK will grow, but the question is will it grow sufficientlynto generate jobs?
According to statistics office the GDP result is the second fastest growth reading since Q1,2007.
Finance minister George Osborne said it's an “incredible opportunity for new start-ups to flourish, for innovation to drive growth and creat jobs.

26th October - The Economic Times

Savyasachi mishra
Shifaly sharma
Shalini kumari
Section - E

NATIONAL NEWS

1.Sebi issues warrants to rein in promoters
These warrants was issue because which in past allowed promoters to raise their stake. This warrant will have great impact on the retail investorsas they now can hope to get more shares in ipo that get oversubscribed.

2.Export growth accelerated
Export grew 23.2% to 18.02%b while import rose 26.1%to $27.1.

3.India onto nuclear deal with Japan,seems to be very significant.
Another important step taken in field of nuclear deal, India and Japan both took the steps for the peaceful use of nuclear power,they mutually arrive on at satisfactory agreement for civil nuclear cooperation.

4. Wal-Mart shows positive sign of entry in India.
American retailer Wal – Mart shows positive sign of opening up multi brand retail to fdi.
As we can see say that wal-mart can enter into Indian markets after the discussion of ceo with the Indian government.

5.Back in home,after decade
KWANG Ro Kim the most successful professionals in the country has finally decided to end his long career in India in next April,he is presently the chairman and CEO of Videocon Industries.

CORPORATE NEWS

1.HUL quarter2 net climbs.
The quarter 2 net climbs 32% to rs 566cr as the rise in demand,net sales were up by 11%to rs 4680.

2.Pepsico India to change the CEO
Manu anand will peplace Sanjeev Chadha as the chairman and CEO of pepsico India.

3.Rejection of Subhiksha's merger scheme with blue green
High court rejects the merger scheme with blue green as according to court it may lead to entity for furthur fund raising money from public.

4.Bharti-African BPO deal
Bharti airtel and Arican bpo announces $500m bpo deal.

5.Danik Bhaskar the leading hindi newspaper of the country successfully launches in Jharkhand.Along with Dainik bhaskar and divya bhaskar win WAN-IFRA AND JOIN THE incqc club

ECONOMIC,FINANCE,MARKETS

1.Rise in export growth speeds up at very fast rate upto 23.2%

2.ONGC may go off sell list as government likely to sale 40 crore this year,seems that government is not interested in raising funds not more than as per budgeted rs 40000 cr this year from stake sales in public sector firms.

3.Government will review export credit that is credits given to export along with the banks chiefs in next month.

4.Idea quarter 2 net goes down to 18.4% to rs 180 cr that is the July-SEP NET PROFIT FOR IDEA FELL DOWN.

5.As the festive season arrives rise in airfares can be seen,this festive season to push up the airfares.
The high demand caused by strong financial markets leads this into result which will raise the airfares.

THE SCOREBOARD

RUPEE/$ 44.36(.23%UP)
SENSEX20303.12(.68%UP)
NIFTY 6105.80(.66%UP)

According to YV REDDY former RBI guv “India can help shape a better financial market”.

26th October - Business Line

Rahul Elhence
Priyanka Soam
Rachita
Section - F

SEBI TIGHTENS NORMS FOR PREFERENTIAL ALLOTMENT

SEBI tightened the framework for preferential allotment of shares to promoter in a move to prevent the misuse of preferential allotments,warrants and convertibles to manipulate share prices. Main statement from SEBI are:
If a promoter fails to exercise warrants as it has previously subscribed to equity shares,convertibles or warrants cannot be issued for one year from the date of expiry of the currency or cancellation of the warrants.
SEBI has doubled limit for maximum application size for retail investors to Rs 2 lakhs.

HUL NET JUMPS 32%ON STRONG VOLUME GROWTH

There is a strong volume growth at 14%that led FMCG major HUL to post a 32.1%jump in net profit to Rs 566.12 crore for the quarter ended September 30,2010.
The net profit included a gain of Rs 40 crore that the company received through sale of property,provision for expenses related to buyback of shares and restructuring cost.
They have been able to maintain cost efficiency.

MADRAS CEMENTS Q2 NET DROPS 81%

Net profit for Q2 of 2010-11 has dropped 1/5th of its net during the corresponding period last year.
High operating costs,steep fall in cement prices due to slack demand and large capacity additions contributed to the 81%drop in net profits.
Madras cements which has a surplus capacity of wind energy generators had to depend on costlier diesel generators because of the power cut imposed by the tamil nadu electricity board.

INFLATION EXPECTATION RISING STEADILY

The RBI inflation survey for June 2010 shows a far greater no. of people expect prices levels to increase faster than current rates.
According to the survey, Bangalore is at the top of inflation expectation chart and Chennai right at the bottom.
The question arises that how credible these surveys are, since there is a big element of subjectivity in the way respondents go about answering questions.
While inflation impacts purchasing power, inflation expectations are what influence peoples behaviour in ways that have a long term economic impact.

BRITAINS INFRASTRUCTURE TO GET $200 BILLION INVESTMENT

The private and public sector will pour $200 billion investment into britain creaking infrastructure over the next five years under a new programme introduced by britains coalition government,as a new survey revealed the country is facing heated competition as a business destination from India, China and US.
Mr.Cameron is going to launch national infrastructure plan and according to him “the infrastructure investment programme will help rebalance the economy and give industries right condition in which to grow.
The plan also pledges to introduce new measures to encourage private sector investment into infrastructure programmes.

BHARTI PICK IBM, TECH MAHINDRA , FOR AFRICAN SERVICE CENTRES

This is the second major partnership announcement from bharti airtel on the african subcontinent . In september bharti selected IBM to build and manage IT systems to power the mobile communications network across 16 african countries.
The three partners collectively employ over 90,000 people for providing BPO services in more than 100 countries.

26th October - Business Line

Ritu Dahiya
Roma
Ruchi Sharma
Section - F


1. AFTER LONG LULL, HUL’S GROWTH REVS UP AGAIN
Hindustan unilever (HUL) has managed to rev up its growth momentum once again,with sales volumes shooting and value growth picking after a long lull.
The company’s sales volume growth accelerated to a healthy 14percent for this quarter, from 10 percent levels over the past two. With input costs in some FMCG catagories shooting up,players in select catagories like soaps,hair oils and tea have begun to take price increases over the past quarter.
Growth in soaps and detergents, personal products and foods were notable. However,on a sequential basis,the company does seem to be going slower on its advertising and promotions. Even though HUL’s ad budget for the September quarter expanded by 13 per cent compared to last year, there is a dip in the ad spend to sales ratio,compared to the june quarter. This could signal a lull in competitive activity or the pace of the new product launches.

2.RAJASTHAN ROYALS MOVES COURT AGAINST BCCI
Rajasthan Royals field a petition in the Bombay high court against the Board of cricket for control in India for terminating its franchise contract. According to BCCI, the bid document was picked up by the Uk-based Emerging media. However, while signing the agreement for the Jaipur franchise, it was submitted in the name of Jaipur IPL cricket private limited.
The franchise will be represented by supreme court lawyer, Mr.Harish slave. Mr.Suresh chellaram, a 44 per cent stake holder in the franchise, is fromer IPL chief, Mr. lalit Modi’s brother in law.

3.Japan, India agree to abolish most trade tariffs
The Prime Minister, Dr. Manmohan Singh, and his Japanese counterpart , Mr.naotokan,on monday agreed in principle on an economic partnership accord that will abolish tariff on 94 percent of bilateral trade in 10 years. Indian economy expanded 8.8 percent in the april-june period,a rate of growth matched by Brazil.The two prime ministers also agreed on a joint vision for a strategic partnership.

4.Coal India Ltd IPO will mop up at Rs 15,200 crore:
CIL with empowered Group of Minister will issue price for the mega share at Rs245.
CIL shares will get listed on 4th November.
The issue price has been fixed at Rs245 per share.
The employers of CIL are getting 5% discount on IPO.

5.Soaring cotton prices leave mills in quandary,but growers sore:
The prices of cotton is continously rising across the country now a days.
Farmers are spending a heavy amount to save their crop form pests and diseases.
This year in Gujrat cotton bales have arrived less compare to previous year.
In New York,the delivery for cotton will increase in December upto 4%.

6.SEBI tightens norms for preferential allotment:
Sebi has doubled the limit of maximu application size of retail investors.
IPO will provide additional disclosure to the nature of insurance business.

7.Wal-Mart CEO sees 'progress on FDI in multi-brand retail':
India will allow 5% FDI in single brand retail.
Companies are permitted to operate only wholesale.
CEO of Wal-Mart appreciates the Indian Business that it is outstanding.
Wal-MArt is currently having joint ventures with Bharti group and also run four cash and carry outlets to supply.

8.Obama,PM talks to focus on economy,clear Energy:
Issues concerned with the economy,environment,science and technology are going to be a moajor part of the discussion between US president,MR.Barack Obama and Indian Prime Minister,Dr.Manmohan Singh.Adding to these outsourcing and issues related to visa will also be discussed.

9.Britians'Infrastructure to get Rs200 billion investment:
Uk is soon to began a National infrastructure plan as countries like India,China and Us are posing threats in terms of transport utility and communication capabilities which will require investment of 200 billion from the private and public sector.

9.Oil refiner's output dips 10.2% in September:
Domestic public and Private refiners such as Indian oil corporation and Reliance Industries limited have produced 10.2% less crude oil due to shutdown for regular maintenance work in month of september.

26th October - The Financial Express

Rishab Shukla
Ravindra Singh
Section - I

ALL REGULATORS TO GET 5 YEARS TENURES
• The government wants to bring uniformity in the tenures of the heads of various regulatory bodies, currently some regulatory heads have three years tenures, others have five years tenures.
• The heads of SEBI, RBI & TRAI have three years tenure, a uniform tenure of five years could be in place by yearly in time for the appointment of new chiefs of SEBI & RBI.
• Apart from RBI, SEBI & TRAI other regulators IRDA, CERC, PFRDA enjoy five years tenure plan.
• Government sources said the decision to have a uniform tenure for all regulatory heads was taken after demands from some of them that their tenure be extended.

SEBI DOUBLES CAP FOR RETAIL BUYERS IN IPO’S TO RS 2L
• SEBI tightened preferential allotment rules for promoters & paved the way for IPO’s of life insurer while allotting retail investors to apply for as much as Rs 2L.
• SEBI decide if promoters fails to exercise warrants allotted to them would not be eligible to issue equity shares or convertible warrant for the period of one year. Any member of promoter group , who has sold shares in previous six month , will not be eligible for an allotment on a preferential basis.
• SEBI raised the maximum application size for retail investors , across all issues, to Rs 2L from the current limit of Rs 1L.

AFRICA AID SCHEME PROVES NON-STARER
• China continues to make deep inroads into African economies by extending attractive credit lines, India has failed to even meet its commitments to provide economics assistance.
• New Delhi is yet to start allocating firms out of the $ 5.4 billion line of credit sanctioned by the Union cabinet for Africa for did bursal.
• Its difficult for India to take advantage of the 5% annual GDP growth rate for sub Saharan Africa.
• IMF in a report release this week the growth expected to touch .5.5 next year.
• The Indian-Africa Forum Summit held in New Delhi in 2008.Manmohan Singh has committed to provide these funds in 5 years beginning 2009-10.The funding is to be given under the Indian Development & Economic Assistance Scheme which has been a non- performer.Rs.40.51 crores allocated under this scheme have been surrendered.
• China says another IMF Report has sanctioned atleast $19 million within just one year, 2006.

TRADE DEFICIT NARROWS TO $9.12 BN IN SEP.
• India’s trade deficit dropped to $9.12 billion in September.
• In August imports outpaced exports at an alarming rate, pushing the trade deficit to a 23 month higher of $ 13.06 billion.
• Commerce minister Anand Sharma said India traditionally had a high trade deficit & so, it was not a cause for concern yet. India is a big exporter of many commodities. Hence, the trade deficit is on higher side.
• During September overall merchandise export rose 23.2% to $108.02 billion while imports jumped 26.1% to $ 27.14 billion. In April September period, total merchandise export stood at $ 103.3 billion an increase of 27.6% & imports grew by 30% T $166.5 billion. The total gap in trade stood at $63.2 billion.

NO POLICY TIGHTENING IF INFLATION FALLS BELOW 8%, SAYS RANGARAJAN
• If inflation slides below 8% the RESERVE BANK OF INDIA(RBI) need not tighten money in its next policy review on November 2,said Rangarajan(Prime minister's Economic Advisory Council.
• Monetary policy has a role to play even when the inflation is triggered by high food prices because if food inflation persists for some time it gets generalized and affects headline inflation.
• Good monsoon will help in meeting increased demand in the economy and also cool overall inflation to 6.5% by December and 5.5% by march.

INDIA INC EYES EASING OF EXPORT CONTROL NORMS
• With the focus of the forthcoming visit of US President Barack Obama to India is to showcase what the two countries can do together in trade and defence.
• Bilateral trade is expected to touch $50 billion.
• Between 2004 and 2008.our two way trade doubled to $43 billion. There was some drop in 2009.But the way ahead is encouraging.
Top on Obama's agenda are defence, climate change, science and technology, education, health, clean energy, trade, market access and high tech exports.

GOVT BUYS BACK BONDS WORTH Rs. 2K CRORE
• The government has infused Rs. 2148 crores into the economy of buying back of bonds from the banks.
• Last week government has announced that in consultation with RBI that it would buy back bonds worth Rs. 12000 crores in one or more trenches to meet liquidity of system.
• Banks have also borrowed Rs. 89,960 crores from RBI's repo window at 6%, implying a liquidity crunch in the system.

HDFC BANK TOPPLES ICICI IN CREDIT CARDS WITH 5 M BASES
• With a base of 5 million cards, HDFC bank is now an undisputed leader in credit card base from a high of 8.5 million to four million cards at present.
• Credit card spends by Indian consumers have seen a 27% jump in august 2010.
• HSBC India with a card base of 1.5 million is also growing its portfolio once again.

CENTRAL BANK UPS BASE RATE BY 50 BPS
• Public sector Central Bank of India has revised upwards its base rate 50 bps.
• Bank's base rate now stands at 8.50% as against the earlier 8%
• The revised base rate is effective from October 20.

NO MAJOR LPG SHORTFALL: PSUs CLAIM
• Public sector oil marketing companies have confirmed that there is no shortfall of LPG in the country
• Any fall in production at refineries is compensated by arranging additional imports at Mumbai and Gujarat.
• The oil industry has decided to operate the bottling plants on holidays/Sundays as well as extended hours during normal days to ensure availability.
• Enrolment of customers during the current financial year is approx. 7lacs in Maharashtra & Madhya Pradesh.

DDA CAN ENCASH EMAAR BANK GUARANTEE:HC
• The Delhi High Court allowed the DDA to encash Rs. 90 crore, which was deposited by Emaar MGF(the builder of Commonwealth Games village) as bank guarantee,for not completing the project on time.
• The order was passed on a petition filed by the company seeking to restrain DDA from seizing the bank guarantee of Rs.183 crore as damages for not completing project on time.
• The court said the rest of the amount will not be encashed if it had not been done so far.

WAL-MART OKAY WITH PACE OF RETAIL FDI REFORMS
• Mike Duke, Wal-Mart’s global CEO met the deputy chairman of planning commission, Montek
Singh Ahluwalia and commerce and industry minister Anand Sharma, said he got positive response towards opening opening the multi- brand retail sector to foreign investment.
• Regarding its JV with Bharti Retail, Duke said until now the two companies share a beneficial agreement and after analyzing the changes made by the govt. would he be able to comment on it.

HUL ACHIEVES HAT-TRICK OF DOUBLE- DIGIT SALES GROWTH
• Hindustan Unilever posted a 32% rise in its net profit at Rs. 566.12 crore in the three months ended September 2010 against Rs. 428.53 crore in the same quarter last year.
• There was an exceptional gain of Rs. 40 crore including a reduction in restructuring cost, an asset sale and profit on long term investments. Excluding the exceptional gains, the profits have grown by 7% year-on-year.
• Personal products category grew by 15%.HUL shares rose 1.36% on the BSE on Monday to close at Rs. 305.65.

IDEA NET PROFIT FALLS 10.5% TO RS. 180 CR
• Idea Cellular reported a decline in net profit by about 10.5% to Rs.180 crore in the second quarter against Rs. 201 crore in the first quarter of the current financial year.
• Average revenue per user (Arpu) during the quarter was down by 8%.Idea’s pan-India
• Ebitda margins declined to 24% during the quarter from 24.3% from the last quarter.
• The company said it would launch the 3G dervices by the first quarter of the next calendar year.

MANU ANAND TO HEAD PEPSICO INDIA
Manu Anand will succeed sanjeev chadha as chairman & CEO, PepsiCo India.The Company has announced chadha will take over as PepsiCo’s chief for the west Asia & Africa region, with effect from january1, 2011.
He will also be a member of PepsiCo’s global leadership team: the PepsiCo Executive committee. Anand moves into this role from Thailand, where he was the CEO for south east Asia, responsible for foods and beverages business in Thailand, Vietnam, Cambodia, Laos, Malaysia, Singapore, Indonesia, And The Pacific Islands.

BHARTI TO LAUNCH 3G BY YEAR END
The country’s largest telecom operator Bharti Airtel would commence its 3G services by the end of this year. With it is third operator after Tata Teleservices and Vodafone- Essar to announce the launch of 3G services in the country.
Bharti Airtel won 3G spectrum in 13 telecom circles of the total 22 for Rs 12,295 crore.
These 13 circles also constitute 68% of Airtel’s revenue market share in the country. The circles include key metros such as Delhi, Mumbai, Chennai, and Hyderabad, which account for 21%of all data traffic in the country.

Coal India issue priced at Rs 245
The government on Monday fixed coal India’s mega IPO issue price at Rs 245 per share, the upper end of initial offer price range.
The government would fetch over Rs 15000 crores by issuing 63.16 crore shares of Coal India at a price of Rs 245 per share. It will offer a discount of 5% to retail investors. The company is expected to list on stock exchanges on November 4,with some fireworks a day before Diwali. Coal India’s initial public offer, which closed on October 21, made history by getting oversubscribed by 15.17 times mopping up Rs 2,35,290 crore.

I-T DISTORTING HC ORDER: VODAFONE
• Supreme court adjourns case till November 15.
• Vodafone International Holdings BV on Monday challenged the income tax department’s new demand notice asking the British telecom giant to pay around Rs 11,218 crore as tax on the 2007 Vodafone-Hutch cross-border deal that created Vodafone-Essar.
• The department on October 22 had issued a new order raising a tax demand of Rs 11,217.95 crores on Vodafone International while treating it as an assesses in default for failure to deduct tax as required before making a payment of $11,076 million to Hutchison Telecommunication International, The order came pursuant to the apex court’s directions on September 27 asking the assistant director of income tax to determine the potential tax liability on the basis of apportionment within 4 weeks.
• The bench headed by chief justice SH Kapadia adjourned the matter till November 15 after the telecom company said it was filling a new application challenging the new demand notice fixing its liability.