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.