25th October - THE ECONOMIC TIMES

Ravish Choudhary
Ritu Choudhary
Ridhima Khanna
section-E

1) Bihar polls phase2: Maoist raid polling centre.
2) Voting begans in Bihar for second phase.
3) ATS name top RSS leader in Ajmer blast.
4) Orissa to move SC over Khandadhar mines
5) DGCA launches probe into GOair flight diversion.
6) Quaeda ‘American Spokesman’ urges attack in west.
7) Typhoon ‘Megi ‘ hits china 2,70,000 people evacuated.
8) Honda recalls 5,28,000 cars due to cylinder snag.
9) Curfew lifted from all parts of Kashmir Valley.
10)Poor gets less food from Sonia Gandhi’s NAC.
11)BM Munjal family retains to rights to Hero Group
13) ADAG to invest Rs 75000 crore in Madhya Pradesh in 5 years








INDUSTRY NEWS
ADAG to invest Rs 75000 crore in Madhya Pradesh in 5 years:-
The Reliance-ADAG is planning to invest over Rs 75,000 crore in power,coal and mining project in Madhya Pradesh in five years group chairman Anil Ambani said at the Global Investors Summit 2010 at khajuraho.company is also planning to do a mega investments that includes India’s largest private-sector coal mines with a capacity to produce 25 million tonnes a year and a cement plant that initially will produce 10 million tones a year.currently company holds domestic mines which have over 2 billion tonnes of coal reserves which can support upto 25,000 MW of electricity generation capacity.There are also other project which they are planning to set up.As Anil Ambani said”with expected industrialization in MP that would employ over 1,00,000 people will need better infrastructure and needs to focus on good road network”.

Maruti plans to add 1,500 service outlets by 2015:-
The country’s largest car maker Maruti Suzuki India is planning to increase its service centre by massive 1500 outlets by 2015 in line with its expansion of production capacityto over 17 lakh units annually.this give employment upto 22,000 people.Currently company holds 2,784 points and they are planning to increase it by 50 percent.MSI planning to invest 1,925 crore to set third plant which will increase 2.5 lakh units at Manesar facility.MSI Executive Officer(Service) Pankaj Narula said “We expect service load at our network multiply manifold,as Maruti Suzuki will going to scale up its capacity upto 1.7 million units in coming years”. As per the company's network expansion plan, MSI will add the new outlets in over 1,300 cities and small towns with an aim to provide car servicing facility for every 25 km across the country.

Sesa Goa plans Rs 30k-cr foray into steel space:-
Vedanta group Sesa Goa is planning an investment over Rs 30,000 crores in the steel space in Orissa and Jharkhand and they are trying to rope up global company to run the ventures , As the company spokesperson said.The estimated investment in Orissa project could be 25,000 crore, while the Jharkhand venture will cost upto 7,500 crores.the company had already written to the Orissa government for transferring an MoU signed with Vedanta Group firm Sterlite industries to there name as anything in iron ore and steel place in the group will have to be undertaken by Sesa goa.Due to delays in regulatory processes for allocation of captive iron ores mines,companies mainly global one are finding
Difficult so they are looking at forging alliance with domestic firms to run steel plants.Sesa Goa Managing Director PK Mukherjee said such partnerships are relevant as the iron ore mining company don’t have expertise in steel making so they have to go for technical partnerships in steel making.

Hero Electric to expand in North America, Europe:-
Electronic two-wheeler maker company Hero Electronic is trying to expand its presence in global market. currently they are selling 30,000 units and they are looking after technology transfer to increase product enhancement.they already had starting exporting to some parts of North America through small no of distributors.As the company estimates of selling 1.1 lakh electric two wheelers and looking on to maintain an over 35 percent of market share.The company is also talks in with several state governments to get subsidy and VAT exemption on electric vechiles.











ECONOMY


RBI mulls changes in regulations for foreign banks:-
The reserve bank of India is considering to change the rules that governed the overseas player’s banking operations in the country.As per the new regulation Central Bank can ask the foreign banks to incooperate all their branches as their subsidiaries in India so that all of them will follow the rules governing regulatory oversight.The incooperation of foreign banks would help them to define as Indian subsidiaries of foreign institutions that are controlled and managed by overseas entities. RBI has so far found favourable response from the foreign banks and their only concern was regarding any possible tax implications arising out of the change of their existing branches into new structure because in ICICI and HDFC bank 74 percent of the equity being held by foreigners.

India should focus on reining-in inflation: Economist:-
Prime Minister Manmohan Singh is confident of a double digit GDP growth in the coming years, a leading economist said that india should focus on reducing the inflation by rolling back its monetary policies. According to Derek Scissiors ,USA’S Research fellow of the Research Foundation he said Government should not be obsessed by the 10 percent or double digit growth. A 8 percent growth is fine,its fast enough for a growing economy like India.According to him”To acheve lower rates the Government should not be borrowing much money.there was one time drop in the fiscal deficit because of the telecom auction.But in the long-term,india does not need a deficit.It is growing quite well”.

Exporters remain confident on demand pick-up in US, EU: Ficci:-
According to Ficci survey the demand has improved in the traditional markets of US and EUROPE ,exporter’s confidence has already increased for the coming six months,because overall export conditions are much better compared to the situation six months back.The survey also revealed that the importers of gems and jewellery , handicrafts and textiles in US and EU are stocking up in the expectation of better demand in their markets in the wake of upcoming festive season.The survey conducted during September and October 2010,is based on the responses 0f 254 exporting companies with a wide geographical and sectoral spread.



MARKET NEWS
Indian ADRs shed $4.82 billion; Wipro, HDFC Bank top lose:-
Indian stock trading in American bourses collectively witnessed the loss of nearly $5 billion in valuation last week,with IT major Wipro and private sector lender HDFC BANK accounting for most of the losses. ADR’s are bought and sold on American markets just like stocks and are issued by bank or brokerage firm.The total 15 entities listed as American Depository Receipts (ADRs) together lost $4.82 billion market capitalization (m-cap).The biggest gainers were TATA motors and Dr Reddy’s Laboratories


SEBI to empower retail investors in takeovers, IPOs:-
Market regulators SEBI are going to decide giving more powers to the retail investors at the time of initial public offers as also the take over of the listed companies,by allowing them a larger pie when companies go public and when companies are acquired.These steps are being taking account the public comments for the draft guidelines floated by the regulators on these issues. At the same time SEBI is also considering to enhance the purchasing power of retail investors in IPO’s. However, there have been concerns that the current rules do not allow all the retail investors to exit the company along with the promoters who are selling out to new owners. The new code proposes that minority shareholders also get the same price as a substantial shareholder and provide a level playing field to all stakeholders, whether they are promoters or small investors.

Currency volatility may hit IT cos' profits in coming quarters:-
The current fluctuations are likely to dent the profit margins of Indians software exporters in the coming quarters.The country’s top three players-Tata Consultancy,Infosys Technologies and Wipro were affected by this.Some analysts said however that currency fluctuations would remain until there is significant recovery in the global economy.Basically companies are facing uncertainties related to economic situation,currency and labour market.


Reliance MF to continue investing in PSU IPOs:
Country’s top fund house Reliance Mutual Fund today said that it is eyeing on the government’s disinvestment plan and would like to have a share in the state –owned majors like Indian Oil and Ongc,which are slated to go public over next few months. The fund has also participated in the just concluded Rs 15,400 crore initial public offering (IPO) by Coal India Ltd, the largest share sale issue so far in the country.According to the company there is enough appetite in the market to absorb these public issues institutional investor’s are willing to investment in the India growth story. Currently Reliance Mutual fund have presence in 270 cities which will increase to 600 cities and about 1,000 towns in the coming years and will also hire large number of people to manage them. At the end of September, RMF had an average assets under management of Rs 1.07 lakh crore and an investor count of over 72 lakh folios, as per the data available with the Association of Mutual Funds in India.





BANKING NEWS
1.Credit cards get ready for a makeover with lights and buttons:
Plastic card may eventually be obsolete but for now the black magnetic strips
On back of credit and debit cards is set to get a makeover
2.Axis Mf launches new exchange traded gold fund:
Axis gold etf, focused on gold –related investement and derivatives.THE fund
Will allocate a maximum of 100 percent of its corpus for investment in gold ,
Including derivatives.It might also invest up to 10 per cent of its corpus in
money market instruments
3.RESULTS,economic condition will dictate market movements:
The stock markets have had a dream run and appreciated by almost 20 percent
over the last couple of months.Some sectors have outperformed the markets
and yielded goods returns over the period.

AUTOMOBILES NEWS
1.GOVT TO SOON NOTIFY FUEL EFFCIENCY STANDARDS
After wrangling between the power and transport ministries,the government
has now decided to notify fuel efficiency standards for auto makers
under the ENERGY CONSERVATION ACT which will come into force
from January next year.



2.ASIA LEADING GLOBAL RECOVERY BUT IT IS TIME TO TIGHTEN
MONETARY POLICY,SAYS IMF
The report says ASIA has reached the threshold to normalize policy stances
across the region.THE IMF cautions that inflationary pressure are emerging.
3.TATA MOTARS REPORTS RS 2,571-CRORE NET PROFIT IN FY
2009-10.
THE company posted net profit of RS 2571 crore for the year as compare to a
loss of RS 2505 crore last year,fuelled by rising sales,new products and
improved profitability at JAGUAR and LAND ROVER UNITS.CONSOLIDATED
revenues in the same period grew 31% to RS 92,519 CRORE.


ENERGY RELATED NEWS
1.INDIA READY TO SEAL NUCLEAR DEAL,BOOST TRADE WITH
JAPAN
TOKYO:INDIA is ready to seal a civilian nuclear deal and boost trade ties with
Japan,Prime Minister Manmohan Singh said,as New Delhi looks to prove its
Friendship in the wake of Tokyo’s bitter territorial spat with Beijing.
2.COST OF ENERGY IMPORTS TO UK TRADE BALANCE:
This is about the impact that peak oil (1999) and gas (2000) in the UK NORTH
SEA would have on UK trade balances.In the space of a decade ,the UK has
Gone from oil and gas exporter to importer.