Submit By:
Vikas sharma
vinit singh
vijayta yadav
Section - H
AYODHAYA JUDGEMENT
Supreme Court clears government braces for ruling.
SC clears away for the verdict
The Supreme Court on Tuesday cleared the decks for the Lucknow bench of the Allahabad high court to deliver its judgment on the six-decade-old case over the ownership of the 2.77-acre plot in Ayodhya where the Babri Masjid stood.
The judgement, whichever way it goes, could potentially polarize the country and trigger a law and order problem when it is pronounced on Thursday, just three days ahead of India's coming out event, the Commonwealth Games
Only two of 27 parties of the case agreed to settle the matter through mediation, other wanted the matter to be settled by the court. The Central government seems to be preparing for the worst. Prime Minister Manmohan Singh has said that the way India handles the security in the aftermath of the Ayodhya verdict would have “profound impact on the evolution” of the country; on Tuesday he renewed his call for calm. The government had issued appeals for peace in newspapers across the country ahead of 24 September, when the high court judgment was expected to be delivered.
RBI permits corporations to work as rural agents of bank
The Reserve bank of India allowed firms to play the role of intermediary to spread banking in rural areas. RBI and its guidelines allowed individuals and the corporate societies .post offices and companies with large and widespread outlets to become BC’s but kept non banking financial companies out of it.
The reason behind that could be that these firms including microfinance institutions lend money in rural India. According to the guidelines, BCs will raise deposits, disburse tiny loans and sell micro insurance, mutual funds and other third party products and receive and deliver small value remittances.
India will grow faster in FY12 on strong demand.
Manila based Asian development bank predicted that India will grow at much faster rate in 2011-12 than in current fiscal and China and other Asian economies will slow down.
According to ADB India will grow at a rate of 8.5% in 2011 and 8.7% in 2012,whereas Chinese economic growth will decline from 9.6% to 9.1%.
ADB said India continues to benefit from growing domestic demand, corporate profits and favorable financing conditions, which have stimulated investment. But the country needs to meet some macroeconomic challenges before it can return to the growth levels it enjoyed before the slowdown. These include maintaining export competitiveness by ensuring the right balance between the exchange rate and inflation, continuing the fiscal consolidation, improving agricultural productivity, addressing infrastructure bottlenecks and sustaining investor confidence.
SCI goes shopping in China for 8 ships
The country's biggest ship owner by fleet size and revenue, Shipping Corp. of India Ltd (SCI), is buying eight ships from China worth $557.2 million (around `2,513 crore) even as it awaits government approval for a follow-on public offering of shares.The deal includes four Kam- sarmax dry bulk carriers, each capable of carrying 80,000 tonnes of dry bulk commodities, and four oil supertankers, each with a capacity to carry 318,000 tonnes of crude oil.
iangsu Rongsheng Heavy Industries Group Co. Ltd, based in the eastern Chinese province of Jiangsu, has emerged as the lowest bidder from a list of five technically qualified entities to build the four oil supertankers, including two options, for SCI.
India is heavily dependent on imported crude for its energy requirements. Oil refiners are now seen favoring large tankers to haul crude to cut transportation costs as larger quantities can be shipped at a time. SCI plans to spend about $2 billion to buy 30 more ships by 2015 to replace older vessels and boost capacity.
Anil Ambani’s focus shifts from Promise to Performance
Future plans of Anil Amban i for his three group companies-Reliance Power(R-power), Reliance capital(R-cap) and Reliance communication(R-Com).
R-Power; To have 35000 MW power generation capacity by2017 including 5000MW by 2012 and 25000MW by 2015.
Construction started for 24000MW gas-based power plant at Samalkot, Andhra Pradesh.
LONG-STANDING DEMAND – IRDA may soon allow portability in insurance:
India's insurance regulator, the Insurance Regulatory and Development Authority (Irda), said on Tuesday that health and motor insurance policyholders may soon be al- lowed to switch providers.
“Portability has been a long- standing demand of the insurance industry, but is barred under current norms. Insurance will benefit the most to the consumers, For instance, in health insurance, some companies allow claims against certain set of ailments after one year of inception of a policy, and some allow it after two years and so on. Portability will enable policyholders to avail the best of services as per their needs at a given point of time, “says Hari Narayan
Portability will allow customers to choose a provider without having to forfeit the prominent features of an existing policy.
The regulator is also working on guidelines for mergers and acquisitions and Ulip-like norms for so-called universal life policies. In a universal life policy, part of the premium buys life insurance, while the rest is invested in bonds or equities. The key difference between Ulips and universal life policies is that both the premium and the cover benefits are variable in the latter. Also, an investor in a universal life policy runs the risk of the policy lapsing if s/he is unable to meet premium payments, which can rise through the tenure of the policy.
___________________________________________________________________
LABOUR UNREST - Series of industrial strikes hit Ludhiana's powerloom sector:
A series of industrial strikes n Ludhiana, Punjab, have partially paralyzed the city's power loom sector for more than a month as the industry continues to grapple with labor shortage and thin power supply.
“What we are demanding is within the bounds of labor law,“ said Lakhwinder, the unions demand fixed minimum wages and accidental insurance for the labors.
While the protest continues, the first lots of staff to go on strike at Shakti Nagar have returned to work. The unions managed to extract an 11% raise in piece rate wages after tripartite negotiations between labor officials, factory workers and trade union leaders.
R-Com; To become debt free in 3 years
Substantial interest in the market.
R-Cap; To look at listing life insurance business.
Ambition to create world class Reliance Bank
Aim to create an asset base of over 50000 crore rupees in 3-5 years.
INTERNAL THREAT - Illegal coal mining revenue going to Naxals:
“There has been growing evidence that revenue from illegal mining is going towards Naxal activities, “says Union coal secretary C. Balakrishnan
To prevent illegal mining, the government has taken steps such as filling up holes with stones and debris, digging trenches to isolate illegal mining sites and sealing off access to abandoned mines.
Air India gets board nod to take 14 aircraft on lease
Air India will lease 10 Airbus A320 aircraft to increase domestic market share.
Airline will lease 4 long-haul Airbus A330 aircraft to substitute the delayed Boeing Dreamliner 787.
Pawan K Arora to be the new COO of Air India Express at Rs 1.2 pa
Airline to buy enterprise resource planning software from SAP AG to integrate its operations at about Rs 100 crore.
Profit booking halts 2 days market rally
Weak global markets and profit-booking by investors after the benchmark index surged 11.9% this month on robust foreign fund inflows, dragged Indian shares down 0.06% on Tuesday.
The 30-share BSE index eased 12.5 points to close at 20,104.86, with half its components closing in the red. It had risen 0.2% to 20,157.51 in early trade.
Betting on the strength of the Indian economy, which is expected to grow 8.5% this fiscal, overseas investors have pumped in $5.1 billion (`23,000 crore) this month, taking net investment so far in 2010 to $18 billion and lifting the index around 15%.
The inflows top last year's record $17.5 billion that helped push the benchmark index up 81%.
HNI wealth: India catching up
Pacific high networth individual (HNI) population grew 25.8% to around three million in 2009, catching up with Europe for the first time, after falling 14.2% in 2008. HNI wealth rose 30.9% to $9.7 trillion, more than erasing 2008 losses and surpassing the $9.5 trillion in wealth held by Europe's HNIs in 2009. The three Asia-Pacific markets that witnessed the largest gains in HNI wealth were Hong Kong (108.9%), India (53.8%) and Taiwan (49.6%). China and India are expected to be the fastest expanding Asia-Pacific HNI segments in the coming years.
MOBILE PHONES - Local firms grasp share in market as MNCs lose grip
Indian mobile phone makers are steadily gaining market share at the expense of multinational firms such as Nokia Corp.
In the three months ended June, domestic handset manufacturers together accounted for a 33.2% share of the nearly 39 million handsets sold in the country, according to market researcher IDC India.
Nokia's share has fallen steeply to about 36%, from about 56% in the same period last year.
Micromax Informatics Ltd and Spice Mobility Ltd replaced LG Electronics Inc. and Motorola Inc., which in the past were in the top five firms.
Multi-SIM phones constituted about 38% of phones sold in the June quarter.
Wednesday, September 29, 2010
Business Standard - Newspaper Summary
Submitted By :-
Anshu Mittal
Anjali Shukla
Amit Singh
Madras high court orders closure of sterlite's copper smelting unit in TN
*Says company polluting surrounding areas.
*At tuticorin, sterlite industries has smelter,refinery,phosphoric acid plant, sulphuric acid plant and coppe rod plant.
*The company has announced doubling of copper smelting capacity to 800,000 tonnes per annum and a 160 MW captive power plant.
*The expanded capacity is sheduled to go on stream in mid- 2011.
Cotton exports to be permitted only from Nov 1
R Power looks to generate 25,000 MW by 2015
*to invest Rs 30,000 cr in hydel projects in arunachal pradesh
*our vision to become the country's largest power company rests on six pillars- land, feedstock, water, environmental clearance, technology and equipment, and capital.
*Six pillars
*Power sources
*Gas-based plants
*Apprehensions
Maruti suzuki presents electric Eeco, hybrid SX4 for Commonwealth games
*green technology
*national; hybrid populsion programme(NHPP)
RRB energy to launch 1.8 MW wind turbine generators
*the formal launch of a prototype 40-m blade for 1,8 MW wind turbine
*it has production facilities in chennai and in poonamallee about 25 km to the west of the city
Fool-proof security for games says delhi police chief
*Air defense
two unmanned aerial vehicles of the IAF will also hover over delhi at 6,000 to 10,000 feet altitude on all days of the CWG from october 3 to 14
Retailers see FDI transforming business
*bharti Wal-mart is also in the process of launching new stores in west and south India next year
*FDI should be allowed in the non-food sector rather then in the food sector
Cadbury's drop "glass and a half" slogan
*chocalate giant cadbury's has dropped the iconic glass and a half slogan from its wrapper
Emami has a new brand ambassador, BIPASHA BASU
Campaign for no UID flags privacy concerns
*acdemics jurists,activists urge caution; want more debate
Indian firms keen to set up base inBharain
*sovergein fund mumtalakat in talks for investments
*it has free trade agreement with US which can be tapped by cos moving base
*TCS Wipro polaris among others havea base in bahrain
Complex fertiliser sales zoom in nutrient- based subsidy regime
*selling increases 43% in April-August this fiscal
*conventional ones
*fixed sop
*coverting 19
Plastic waste tyre chips to fuel cement kilms.
Anshu Mittal
Anjali Shukla
Amit Singh
Madras high court orders closure of sterlite's copper smelting unit in TN
*Says company polluting surrounding areas.
*At tuticorin, sterlite industries has smelter,refinery,phosphoric acid plant, sulphuric acid plant and coppe rod plant.
*The company has announced doubling of copper smelting capacity to 800,000 tonnes per annum and a 160 MW captive power plant.
*The expanded capacity is sheduled to go on stream in mid- 2011.
Cotton exports to be permitted only from Nov 1
R Power looks to generate 25,000 MW by 2015
*to invest Rs 30,000 cr in hydel projects in arunachal pradesh
*our vision to become the country's largest power company rests on six pillars- land, feedstock, water, environmental clearance, technology and equipment, and capital.
*Six pillars
*Power sources
*Gas-based plants
*Apprehensions
Maruti suzuki presents electric Eeco, hybrid SX4 for Commonwealth games
*green technology
*national; hybrid populsion programme(NHPP)
RRB energy to launch 1.8 MW wind turbine generators
*the formal launch of a prototype 40-m blade for 1,8 MW wind turbine
*it has production facilities in chennai and in poonamallee about 25 km to the west of the city
Fool-proof security for games says delhi police chief
*Air defense
two unmanned aerial vehicles of the IAF will also hover over delhi at 6,000 to 10,000 feet altitude on all days of the CWG from october 3 to 14
Retailers see FDI transforming business
*bharti Wal-mart is also in the process of launching new stores in west and south India next year
*FDI should be allowed in the non-food sector rather then in the food sector
Cadbury's drop "glass and a half" slogan
*chocalate giant cadbury's has dropped the iconic glass and a half slogan from its wrapper
Emami has a new brand ambassador, BIPASHA BASU
Campaign for no UID flags privacy concerns
*acdemics jurists,activists urge caution; want more debate
Indian firms keen to set up base inBharain
*sovergein fund mumtalakat in talks for investments
*it has free trade agreement with US which can be tapped by cos moving base
*TCS Wipro polaris among others havea base in bahrain
Complex fertiliser sales zoom in nutrient- based subsidy regime
*selling increases 43% in April-August this fiscal
*conventional ones
*fixed sop
*coverting 19
Plastic waste tyre chips to fuel cement kilms.
Business Line - 29th September
group members:-(section f ,group no.27)
Sweta bhaumik
Tanu srivastava,Teena tanwar
LEADING NEWS:-
MADRAS HIGH COURT ORDERS CLOSURE OF STERLITE'S COPPER SMELTING UNIT IN TAMIL NADU
The company was given permission to produce 391 tonnes of blister copper and 1,060 tonnes of sulphuric acid.
The petitioners had pointed out that though the company originally wanted to set up its plant in Ratnagiri, the Maharashtra Government had cancelled the license owing to stiff opposition from the people.Groundwater samples taken from the vicinity of the deposit site show elevated levels of copper, chrome, lead, cadmium and arsenic.
Ordinance coming to relax merger procedures
Merger procedures may soon become easier for India Inc. The Government is planning to come up with an ordinance to do away with the process of sanction by the Competition Commission of India (CCI) for small-ticket mergers and acquisitions.
under this ordinance, the merging entities will not need to take the CCI's permission if the turnover of the smaller company is less than Rs 750 crore or its net worth is under Rs 250 crore.
Combined turnover:-
-(At present, if the combined turnover of the merged entity exceeds Rs 3,000 crore or the net worth is more than Rs 1,000 crore, then the CCI'S permission is mandatory)
Corporate news:-
Maruti Suzuki presents electric Eeco , hybrid SX4 for common wealth games
SX4 concept has been taken up by Maruti Suzuki as a part of government initiated
a team of 25 company engineers worked on this project with global hybrid technology and component suppliers
PLASTIC WASTE ,TYRE CHIPS TO FUEL CEMENT KILNS
The center proposes to make it mandatory for cement makers to use hazardous waste that can burn such as plastic waste and Tyre chips as alternative fuel in cement kilns.
Such a move would not only help reduce greenhouse gas emission,but also avoid creation of landfills .Besides reducing the fuel costs for cement firms .it would also help avoid investments in expensive incinerators.
Companies such as ACC, Grasim Industries Ltd, Gujarat Ambuja Cement Ltd and Lafarge India Ltd have conducted various trials for co-processing or using hazardous waste as alternative fuel in kilns.
Wastes co-processed by these firms include plastic waste, sludge from petrochemical or oil refinery, waste oil, paint sludge, effluent treatment plant (ETP) sludge, and spent carbon.
Major waste generating states include Maharashtra, Gujarat, Andhra Pradesh, West Bengal, Madhya Pradesh, Rajasthan and Tamil Nadu.
Banking sector:-
IRDA may cap LIC's infra bond issue size
The insurance regulator, IRDA, has indicated that it may restrict the size of the proposed retail infrastructure bond issue by Life Insurance Corporation of India.
The regulator is concerned about investments by insurance companies in the infrastructure space.
The Government, in the Union Budget, had allowed financial institutions such as IFCI, IDFC, PFC and LIC to issue tax-free infrastructure bonds. Investment in these bonds is exempt from tax up to a limit of Rs 20,000.
LIC has the mandate to raise up to Rs 5,000 crore through infrastructure bonds, which is 25 per cent of its Rs 20,000 crore incremental investment in infrastructure in the previous financial year.
Information technology:-
software firms pitch for price hike with clients
software companies are now seeking a price increase with clients even though discretionary spend is rising.
An Infosys official said the company was observing a ‘quiet period' before the third quarter financial results and also told that price has clearly stabilized
Disciplined pricing:-
-(Speaking recently to analysts at the Deutsche Bank Technology Conference, Mr Cobourn said the industry overall has been quite disciplined on pricing even during the economic downturn.)
Nokia joins issue with IDC over ‘falling' India sales
Market leader Nokia's market share has declined from 54.1 per cent in 2009 to 36 per cent as per the latest IDC India's Quarterly Mobile Handsets Tracker 2Q 2010
IDC said that the Indian mobile market saw a unique trend of multi-SIM phones capturing 38.5 per cent of the market.
According to IDC the dual sim category accounted for 38.5 percent of the overall market .It also says that there are 35 brands in Indian market currently
The Finnish company added:-
-(reality is that today there are anywhere between 80 and 100 players operating the Indian market at any given point of time. Most of these are Chinese handset players, operational in the market sporadically)
Sweta bhaumik
Tanu srivastava,Teena tanwar
LEADING NEWS:-
MADRAS HIGH COURT ORDERS CLOSURE OF STERLITE'S COPPER SMELTING UNIT IN TAMIL NADU
The company was given permission to produce 391 tonnes of blister copper and 1,060 tonnes of sulphuric acid.
The petitioners had pointed out that though the company originally wanted to set up its plant in Ratnagiri, the Maharashtra Government had cancelled the license owing to stiff opposition from the people.Groundwater samples taken from the vicinity of the deposit site show elevated levels of copper, chrome, lead, cadmium and arsenic.
Ordinance coming to relax merger procedures
Merger procedures may soon become easier for India Inc. The Government is planning to come up with an ordinance to do away with the process of sanction by the Competition Commission of India (CCI) for small-ticket mergers and acquisitions.
under this ordinance, the merging entities will not need to take the CCI's permission if the turnover of the smaller company is less than Rs 750 crore or its net worth is under Rs 250 crore.
Combined turnover:-
-(At present, if the combined turnover of the merged entity exceeds Rs 3,000 crore or the net worth is more than Rs 1,000 crore, then the CCI'S permission is mandatory)
Corporate news:-
Maruti Suzuki presents electric Eeco , hybrid SX4 for common wealth games
SX4 concept has been taken up by Maruti Suzuki as a part of government initiated
a team of 25 company engineers worked on this project with global hybrid technology and component suppliers
PLASTIC WASTE ,TYRE CHIPS TO FUEL CEMENT KILNS
The center proposes to make it mandatory for cement makers to use hazardous waste that can burn such as plastic waste and Tyre chips as alternative fuel in cement kilns.
Such a move would not only help reduce greenhouse gas emission,but also avoid creation of landfills .Besides reducing the fuel costs for cement firms .it would also help avoid investments in expensive incinerators.
Companies such as ACC, Grasim Industries Ltd, Gujarat Ambuja Cement Ltd and Lafarge India Ltd have conducted various trials for co-processing or using hazardous waste as alternative fuel in kilns.
Wastes co-processed by these firms include plastic waste, sludge from petrochemical or oil refinery, waste oil, paint sludge, effluent treatment plant (ETP) sludge, and spent carbon.
Major waste generating states include Maharashtra, Gujarat, Andhra Pradesh, West Bengal, Madhya Pradesh, Rajasthan and Tamil Nadu.
Banking sector:-
IRDA may cap LIC's infra bond issue size
The insurance regulator, IRDA, has indicated that it may restrict the size of the proposed retail infrastructure bond issue by Life Insurance Corporation of India.
The regulator is concerned about investments by insurance companies in the infrastructure space.
The Government, in the Union Budget, had allowed financial institutions such as IFCI, IDFC, PFC and LIC to issue tax-free infrastructure bonds. Investment in these bonds is exempt from tax up to a limit of Rs 20,000.
LIC has the mandate to raise up to Rs 5,000 crore through infrastructure bonds, which is 25 per cent of its Rs 20,000 crore incremental investment in infrastructure in the previous financial year.
Information technology:-
software firms pitch for price hike with clients
software companies are now seeking a price increase with clients even though discretionary spend is rising.
An Infosys official said the company was observing a ‘quiet period' before the third quarter financial results and also told that price has clearly stabilized
Disciplined pricing:-
-(Speaking recently to analysts at the Deutsche Bank Technology Conference, Mr Cobourn said the industry overall has been quite disciplined on pricing even during the economic downturn.)
Nokia joins issue with IDC over ‘falling' India sales
Market leader Nokia's market share has declined from 54.1 per cent in 2009 to 36 per cent as per the latest IDC India's Quarterly Mobile Handsets Tracker 2Q 2010
IDC said that the Indian mobile market saw a unique trend of multi-SIM phones capturing 38.5 per cent of the market.
According to IDC the dual sim category accounted for 38.5 percent of the overall market .It also says that there are 35 brands in Indian market currently
The Finnish company added:-
-(reality is that today there are anywhere between 80 and 100 players operating the Indian market at any given point of time. Most of these are Chinese handset players, operational in the market sporadically)
Financial Express - 29th September
Submitted by
Tarun Khare
Swati Kapoor
Section I
ITC and EIH to combine hotel biz , become largest hospitality chain • Currently, the Oberois hold 32% stake in EIH, while ITC holds 14.98%.
• ITC Group would demerge its hotel business,a nd then form a partenship with with EIH group.
• Indian hotels is currently the largest hotel chain in the country in terms of revenue , clocking Rs 1566 crore in 2009-10.
• ITC revenues from hotel business stood at Rs. 910 crores.
• Currently the ITC has over 100 hotels operated under four segments- Luxury Collection, Five star hospitality, Fortune hotels and Welcome Heritage.
• Have to resolve the branding aspect.
LLPs to see foreign investments soon• Limited liability partnership (LLP)- new business vehicle introduced by the government a year ago.
• LLPs will witness foreign money inflows with prior approval.
• LLPs are business vehicles that have benefits of the limited liability of companies and operational flexibility of partnership firms, without any limit on the number of partners.
• The RBI had favoured FDI upto 49% in LLPs in sleect sector.
• Foriengners will not be allowed to set up LLPs in sectors such as real estate where conditions such as minimum capitalisation and lock-in period are required.
Rcomm flags off plans for tower biz sales again
• Second largest telecom company.
• As told by Anil Ambani on Tuesday, it will be debt free in the next three years.
• Rcomm has around Rs 33,000 crore in debt including Rs 8,200 crore it raised to pay for the third generation radio bandwidth it recently won via a government-run auction.
• May consider selling a stake in its tower infrastructure arm Reliance Infratel.
• The firm intends to invest about Rs 3,000 crore each year for the next three years as a capital expenditure.
• Rcomm has spent nearly Rs 35,000 crore as capex in the last three years which is gonna dip in future.
Supreme court ends uncertainty, Ayodhya ruling on thursday• Supreme Court on Tuesday dismissed a plea to defer the verdict in the Ram- Janambhoomi Babri Masjid title suits.
• Lucknow Bench of high court is now free to deliver the verdict anytime, ideally before or on October 1, 2010, when Justice Dv Sharma is to retire.
• Ramesh Chandra Tripathi , a retired public official , got a divided SC bench to stay the verdict to initiate last minute settlement talks.
• The bench simply dismissed Tripathi’s plea without giving a reason.
ADB raises India GDP estimate for the FY11 to 8.5%
• Asian development bank on tuesdya said that India will expand 8.5% this financial year as expected 8.2% in April.
• High inflation and a rising rupee could threaten the country’s sustained growth.
• Maintained its 9.6% growth for china this financial year.
• India’s current account deficit will raise from 1.5% to 2.7% of GDP to reflect the sharp pickup in trade inflows.
• The bank also raised forecast for the annual year average inflation this fiscal year from 5% to 7.5%.
• The 2011 forecast remains unchanged for the developing Asia.
• Forecast growth for the 10 economies of Southeast Asia has been revised upto 7.4% in 2010- the fastest since 1996, before the Asian Financial Crisis- from 5.1%.
Retail rentals increase on short supply of quality anchor space
• A matter of concern for the retailers.
• Bound to increasea further 10-15% by the end of this calender year.
• Rentals for anchor space have risen between 15-20%, whereas the vanilla rentals have seen a rise of 5-10%.
• This is due to a huge shortage of space .
• Key cities like Delhi and Mumbai will see a faster rate of growth in values against others due to greater interest in these markets.
• Mumbai’s linking road recorded one of the highest annual gains in the rental values across the globe.
• Retailers like Shopper’s stop, Hypercity and Aditya Birla Retail are also in an expansion mode, and are slowly and gradually shifting to the revenue sharing model.
Mcx-sx accuses sebi of damaging its reputation
• Mcx-sx accused sebi of discriminatoin on rejection of its application fro commencing equity operations
• The damage is already been done to the reputation of the exchange says joseph massey md of Mcx-sx
• The exchange is likely to soon challenge the sebi order either at the securities and appellate (sat) or the bombay high court , according to the company officials
• Sebi last week while rejecting the application of the exchange , had mentioned in the order that the Mcx-sx has been 'dishonest' in withholding material information on ownership and has therefore not adhered to fair and reasonable standards of honesty
• Mcx-sx today shared a letter with the media sent by the exchange to sebi chairman on december 21 '09 explaining the details of scheme of capital reduction.
• Sebi chairman cb bhave have said that everybody has to stick to the guidelines .”sebi is a public authority and whatever we do have to stand the test of public scrutiny “
Spice jet to fly overseas in october
• Kalanidhi Maran – promoted low cost carrier spicejet will add 13 aircraft to its fleet by 2013 besides targeting to ferry 85 lakh passengers by the end of the current financial year
• The airlines would be starting its overseas operations in october , said kishore gupta director
• The delhi kathmandu service will kick start on 7th october and the chennai colombo service will start on 9th october.
• The company had placed fresh orders with boeing for 30 more aircrafts ammounting to close to $2.4 billion.
• He said that the airline is looking to expand its domestic network as well as the adding some more destinations.
Gold slips from record level
• Gold fell on tuesday as investors paused for breadth and awaited economic data after betting the metal up to a record $1300 an ounce in the previous session
• Silver was off a 30 year high while platinum and paladium tracked stock markets lower.
• US gold futures for december delivery fell $8.9 to $ 1289.80 an ounce .
• The gold is just having troubles getting through $1300 , it was probably just in need of a period of consolidation , said stephen briggs , analyst at Bnp paribas
• Meanwhile the euro is struggling to with concerns over sovereign debt .
Tarun Khare
Swati Kapoor
Section I
ITC and EIH to combine hotel biz , become largest hospitality chain • Currently, the Oberois hold 32% stake in EIH, while ITC holds 14.98%.
• ITC Group would demerge its hotel business,a nd then form a partenship with with EIH group.
• Indian hotels is currently the largest hotel chain in the country in terms of revenue , clocking Rs 1566 crore in 2009-10.
• ITC revenues from hotel business stood at Rs. 910 crores.
• Currently the ITC has over 100 hotels operated under four segments- Luxury Collection, Five star hospitality, Fortune hotels and Welcome Heritage.
• Have to resolve the branding aspect.
LLPs to see foreign investments soon• Limited liability partnership (LLP)- new business vehicle introduced by the government a year ago.
• LLPs will witness foreign money inflows with prior approval.
• LLPs are business vehicles that have benefits of the limited liability of companies and operational flexibility of partnership firms, without any limit on the number of partners.
• The RBI had favoured FDI upto 49% in LLPs in sleect sector.
• Foriengners will not be allowed to set up LLPs in sectors such as real estate where conditions such as minimum capitalisation and lock-in period are required.
Rcomm flags off plans for tower biz sales again
• Second largest telecom company.
• As told by Anil Ambani on Tuesday, it will be debt free in the next three years.
• Rcomm has around Rs 33,000 crore in debt including Rs 8,200 crore it raised to pay for the third generation radio bandwidth it recently won via a government-run auction.
• May consider selling a stake in its tower infrastructure arm Reliance Infratel.
• The firm intends to invest about Rs 3,000 crore each year for the next three years as a capital expenditure.
• Rcomm has spent nearly Rs 35,000 crore as capex in the last three years which is gonna dip in future.
Supreme court ends uncertainty, Ayodhya ruling on thursday• Supreme Court on Tuesday dismissed a plea to defer the verdict in the Ram- Janambhoomi Babri Masjid title suits.
• Lucknow Bench of high court is now free to deliver the verdict anytime, ideally before or on October 1, 2010, when Justice Dv Sharma is to retire.
• Ramesh Chandra Tripathi , a retired public official , got a divided SC bench to stay the verdict to initiate last minute settlement talks.
• The bench simply dismissed Tripathi’s plea without giving a reason.
ADB raises India GDP estimate for the FY11 to 8.5%
• Asian development bank on tuesdya said that India will expand 8.5% this financial year as expected 8.2% in April.
• High inflation and a rising rupee could threaten the country’s sustained growth.
• Maintained its 9.6% growth for china this financial year.
• India’s current account deficit will raise from 1.5% to 2.7% of GDP to reflect the sharp pickup in trade inflows.
• The bank also raised forecast for the annual year average inflation this fiscal year from 5% to 7.5%.
• The 2011 forecast remains unchanged for the developing Asia.
• Forecast growth for the 10 economies of Southeast Asia has been revised upto 7.4% in 2010- the fastest since 1996, before the Asian Financial Crisis- from 5.1%.
Retail rentals increase on short supply of quality anchor space
• A matter of concern for the retailers.
• Bound to increasea further 10-15% by the end of this calender year.
• Rentals for anchor space have risen between 15-20%, whereas the vanilla rentals have seen a rise of 5-10%.
• This is due to a huge shortage of space .
• Key cities like Delhi and Mumbai will see a faster rate of growth in values against others due to greater interest in these markets.
• Mumbai’s linking road recorded one of the highest annual gains in the rental values across the globe.
• Retailers like Shopper’s stop, Hypercity and Aditya Birla Retail are also in an expansion mode, and are slowly and gradually shifting to the revenue sharing model.
Mcx-sx accuses sebi of damaging its reputation
• Mcx-sx accused sebi of discriminatoin on rejection of its application fro commencing equity operations
• The damage is already been done to the reputation of the exchange says joseph massey md of Mcx-sx
• The exchange is likely to soon challenge the sebi order either at the securities and appellate (sat) or the bombay high court , according to the company officials
• Sebi last week while rejecting the application of the exchange , had mentioned in the order that the Mcx-sx has been 'dishonest' in withholding material information on ownership and has therefore not adhered to fair and reasonable standards of honesty
• Mcx-sx today shared a letter with the media sent by the exchange to sebi chairman on december 21 '09 explaining the details of scheme of capital reduction.
• Sebi chairman cb bhave have said that everybody has to stick to the guidelines .”sebi is a public authority and whatever we do have to stand the test of public scrutiny “
Spice jet to fly overseas in october
• Kalanidhi Maran – promoted low cost carrier spicejet will add 13 aircraft to its fleet by 2013 besides targeting to ferry 85 lakh passengers by the end of the current financial year
• The airlines would be starting its overseas operations in october , said kishore gupta director
• The delhi kathmandu service will kick start on 7th october and the chennai colombo service will start on 9th october.
• The company had placed fresh orders with boeing for 30 more aircrafts ammounting to close to $2.4 billion.
• He said that the airline is looking to expand its domestic network as well as the adding some more destinations.
Gold slips from record level
• Gold fell on tuesday as investors paused for breadth and awaited economic data after betting the metal up to a record $1300 an ounce in the previous session
• Silver was off a 30 year high while platinum and paladium tracked stock markets lower.
• US gold futures for december delivery fell $8.9 to $ 1289.80 an ounce .
• The gold is just having troubles getting through $1300 , it was probably just in need of a period of consolidation , said stephen briggs , analyst at Bnp paribas
• Meanwhile the euro is struggling to with concerns over sovereign debt .
The Economic Times - 29th September
SUBMITTED BY: Grp 5 (sec E)
ASHISH SHUKLA
AVINASH SR
BHASKAR RANJAN
Front Page
• Shiv Nadar promises to donate 10% of his wealth:
Shiv Nadar is the 1st Indian billionaire to donate a part of his wealth. Whereas in global there are many billionaires like Bill & Melinda gates and warren buffett who have pledged their half of their wealth, but Mr. Nadar was the first person to donate 10 %. He recently sold his 2.5% equity in HCL technologies in june and pumped Rs 585 crore into his philanthropic efforts. He said that “ I want to focus on education and do it myself”. He spends 40% of his time on social ventures. His disappointing statement towards Indian poor philanthropic level “ What can I say… when it comes to giving , there aren’t many people who give away even 1% of their wealth.”
• Telecom Ministry tells watchdog to take a walk:
The Department of telecommunications (DoT) has told the comptroller & the Auditor General, or CAG, according to policy decisions that it will not respond to further queries on the award of frequency spectrum to a new set of telecom operators in 2008.
Telecom minister A. Raja move to disregard advice of many experts and persist with a faulty and outdated policy for issuing new telecom licences in 2008. CAG in its to DoT had alleged that the loss to the exchequer could be Rs 26,000 crore. CAG also said DoT’s move to grant telecom licences to new entrants in 2008 ‘done without proper verification of their eligibility and other credentials.’
• Nokia loses its Indian plot, Market share tanks 20%:
Nokia had got decreased market share when compared to the previous year i.e, 54.1% & 36.3%, Whereas Samsung increased by 6.4% to 8.2%, G’five nil to 7.3%. Micromax informatics decreased by 4.8% to 4.1% in the year 2009 & 2010 respectively. Nokia Handset share of the Indian Handset market is 2nd after china – plunged to 36.3% at the end of june from 54.1% at the end of 2009, providing the Finnish Gaint’s critics more proof of its failure to keep pace with rapidly changing customer preferences.
POLITICS
• JUDGEMENT TOMMOROW
The lucknow bench of 3 members-chief justice S H Kapadia, justice Aftab Aslam & justice K S Radhakrishnan will be giving their verdict on 60 yrs. Old ayodhya case concerning who will take hold of that piece of land where BABRI MASJID STOOD ,also which is believed to be BIRTHPLACE OF SHRI RAMA.
BRANDS
• BRANDS PREFER SOURCING FROM HOME
Brands like cadini,DKNY, & boggi milano have decided to source their apparels business sourcing from their home country,in order to become more profitable & productive,which they used to import from other countries.this will help them in cutting their taxes & import duties.,which are as high as 20% & 40% respectively.
ECONOMY , FINANCE , MARKETS
The government has decided to reduce its share in fuel subsidy.,which would result in decreasing profits of the local companies. This will lead to bearing high proportion of loses to pvt. Companies like HPCL & BPCL.Govt. Said that only a part will be paid by govt. owned oil producing companies like ONGC & OIL. In 2009-10,govt. bore only 26000 cr. Rupees out of toal of 46,051 cr. Rupees which is expected to be 7000 cr. More in the next year.
CORPORATE
The high court has ordered to shut sterlite's Tuticorin based copper unit since they believed that the firm would be producing high levels of pollution & will badly effect workerers there.
MARKETS
Gold is estimated to hike 12% to $1450 in a year according to london bulliuon market associations annual conference. Silver ,palladium & platinum will also rise ,survey showed that.
ASHISH SHUKLA
AVINASH SR
BHASKAR RANJAN
Front Page
• Shiv Nadar promises to donate 10% of his wealth:
Shiv Nadar is the 1st Indian billionaire to donate a part of his wealth. Whereas in global there are many billionaires like Bill & Melinda gates and warren buffett who have pledged their half of their wealth, but Mr. Nadar was the first person to donate 10 %. He recently sold his 2.5% equity in HCL technologies in june and pumped Rs 585 crore into his philanthropic efforts. He said that “ I want to focus on education and do it myself”. He spends 40% of his time on social ventures. His disappointing statement towards Indian poor philanthropic level “ What can I say… when it comes to giving , there aren’t many people who give away even 1% of their wealth.”
• Telecom Ministry tells watchdog to take a walk:
The Department of telecommunications (DoT) has told the comptroller & the Auditor General, or CAG, according to policy decisions that it will not respond to further queries on the award of frequency spectrum to a new set of telecom operators in 2008.
Telecom minister A. Raja move to disregard advice of many experts and persist with a faulty and outdated policy for issuing new telecom licences in 2008. CAG in its to DoT had alleged that the loss to the exchequer could be Rs 26,000 crore. CAG also said DoT’s move to grant telecom licences to new entrants in 2008 ‘done without proper verification of their eligibility and other credentials.’
• Nokia loses its Indian plot, Market share tanks 20%:
Nokia had got decreased market share when compared to the previous year i.e, 54.1% & 36.3%, Whereas Samsung increased by 6.4% to 8.2%, G’five nil to 7.3%. Micromax informatics decreased by 4.8% to 4.1% in the year 2009 & 2010 respectively. Nokia Handset share of the Indian Handset market is 2nd after china – plunged to 36.3% at the end of june from 54.1% at the end of 2009, providing the Finnish Gaint’s critics more proof of its failure to keep pace with rapidly changing customer preferences.
POLITICS
• JUDGEMENT TOMMOROW
The lucknow bench of 3 members-chief justice S H Kapadia, justice Aftab Aslam & justice K S Radhakrishnan will be giving their verdict on 60 yrs. Old ayodhya case concerning who will take hold of that piece of land where BABRI MASJID STOOD ,also which is believed to be BIRTHPLACE OF SHRI RAMA.
BRANDS
• BRANDS PREFER SOURCING FROM HOME
Brands like cadini,DKNY, & boggi milano have decided to source their apparels business sourcing from their home country,in order to become more profitable & productive,which they used to import from other countries.this will help them in cutting their taxes & import duties.,which are as high as 20% & 40% respectively.
ECONOMY , FINANCE , MARKETS
The government has decided to reduce its share in fuel subsidy.,which would result in decreasing profits of the local companies. This will lead to bearing high proportion of loses to pvt. Companies like HPCL & BPCL.Govt. Said that only a part will be paid by govt. owned oil producing companies like ONGC & OIL. In 2009-10,govt. bore only 26000 cr. Rupees out of toal of 46,051 cr. Rupees which is expected to be 7000 cr. More in the next year.
CORPORATE
The high court has ordered to shut sterlite's Tuticorin based copper unit since they believed that the firm would be producing high levels of pollution & will badly effect workerers there.
MARKETS
Gold is estimated to hike 12% to $1450 in a year according to london bulliuon market associations annual conference. Silver ,palladium & platinum will also rise ,survey showed that.
Financial Express - 29th September
Anuj Bhagat
Ankit Bahuguna
Sec I
Article 1: First UID numbers today:• First Unique Identification number named “Aadhaar” to be issued by prime minister to an Indian national at Tembhli in Maharashtra’s Nandurbar district today.
• 12 digit number to contain demographic details and a link to a bank account to facilitate access to government programmes.
• UID said to help illiterate villagers to access micro finance in the absence of a bank.
Article 2: RBI allows cos to be BCs, keeps NBFCs away:
• For furthering financial inclusion of large retail companies RBI on Tuesday allowed them to be Business Correspondents or BCs, but this excludes Non-banking financial institutions or NBFCs.
• Will allow large retail chains like Bharti Airtel and ITC to act as virtually quasi-banking units, will allow the retailers to have presence in remote areas also.
• Will help other banks also in the way that they will be able to use the outlets of retail chains for furthering their business, saving upon the cost of setting up new branch.
• BCs defined as retail agents engaged by banks for providing banking services at locations other than a bank branch or an ATM, so in turn will help general public to access the benefits of a bank through the BCs.
• BCs not allowed to collect fees from customers but banks can charge some fee in a transparent manner.
Article 3: Stringent action against firms making cold calls:• Action to be taken by government against unregistered tele-marketing companies sending bulk SMS and making telemarketing calls to mobile users.
• Communication and IT minister for state Mr. Sachin Pilot has asked TRAI and DoT to come up with stringent actions.
• According to the ministry out of total of 680 million mobile users only 10% have registered for DND i.e Do Not Disturb Service.
• Announced at Mumbai in the event to showcase the new initiative on mobile stock trading taken up by the Bombay Stock Exchange (BSE) which will allow the users with basic handset mobile to do trading on mobile.
Article 4: Supreme Court ends uncertainty, Ayodhya ruling on Thursday:
• Ayodhya verdict to be announced on Thursday after Supreme Court on Tuesday dismissed a plea to defer the verdict in the Ram Janmabhoomi-Babri Masjdi title suit.
• The Lucknow banch of Allahabad high court to pronounce its judgment on Thursday ideally before 1st of October 2010 i.e before the retirement of Justice DV Sharma, one of the three judges of the bench who heard the case.
Article 5: World in a ‘currency war,’ says Brazil finance minister:
• “The international currency war threatens us because it takes away our competitiveness”: Guido Mantega, Brazillian finance minister.
• War to begin governments manipulating their currency to improve their export competitiveness.
• According to Goldman Sachs, currently Brazilian currency is the most overvalued currency in the world.
• Being hit by recession and still in the process of recovery many countries are weakening their currencies to boost exports and improve trade balances.
• Currency intervention going to be one of the main topics of discussion at IMF next meeting scheduled between October 8 to 10.
Ankit Bahuguna
Sec I
Article 1: First UID numbers today:• First Unique Identification number named “Aadhaar” to be issued by prime minister to an Indian national at Tembhli in Maharashtra’s Nandurbar district today.
• 12 digit number to contain demographic details and a link to a bank account to facilitate access to government programmes.
• UID said to help illiterate villagers to access micro finance in the absence of a bank.
Article 2: RBI allows cos to be BCs, keeps NBFCs away:
• For furthering financial inclusion of large retail companies RBI on Tuesday allowed them to be Business Correspondents or BCs, but this excludes Non-banking financial institutions or NBFCs.
• Will allow large retail chains like Bharti Airtel and ITC to act as virtually quasi-banking units, will allow the retailers to have presence in remote areas also.
• Will help other banks also in the way that they will be able to use the outlets of retail chains for furthering their business, saving upon the cost of setting up new branch.
• BCs defined as retail agents engaged by banks for providing banking services at locations other than a bank branch or an ATM, so in turn will help general public to access the benefits of a bank through the BCs.
• BCs not allowed to collect fees from customers but banks can charge some fee in a transparent manner.
Article 3: Stringent action against firms making cold calls:• Action to be taken by government against unregistered tele-marketing companies sending bulk SMS and making telemarketing calls to mobile users.
• Communication and IT minister for state Mr. Sachin Pilot has asked TRAI and DoT to come up with stringent actions.
• According to the ministry out of total of 680 million mobile users only 10% have registered for DND i.e Do Not Disturb Service.
• Announced at Mumbai in the event to showcase the new initiative on mobile stock trading taken up by the Bombay Stock Exchange (BSE) which will allow the users with basic handset mobile to do trading on mobile.
Article 4: Supreme Court ends uncertainty, Ayodhya ruling on Thursday:
• Ayodhya verdict to be announced on Thursday after Supreme Court on Tuesday dismissed a plea to defer the verdict in the Ram Janmabhoomi-Babri Masjdi title suit.
• The Lucknow banch of Allahabad high court to pronounce its judgment on Thursday ideally before 1st of October 2010 i.e before the retirement of Justice DV Sharma, one of the three judges of the bench who heard the case.
Article 5: World in a ‘currency war,’ says Brazil finance minister:
• “The international currency war threatens us because it takes away our competitiveness”: Guido Mantega, Brazillian finance minister.
• War to begin governments manipulating their currency to improve their export competitiveness.
• According to Goldman Sachs, currently Brazilian currency is the most overvalued currency in the world.
• Being hit by recession and still in the process of recovery many countries are weakening their currencies to boost exports and improve trade balances.
• Currency intervention going to be one of the main topics of discussion at IMF next meeting scheduled between October 8 to 10.
BUSINESS STANDARD SUMMARY - 29th September
Submitted by
Amit singh
Anjali shukla
Anshu Mittal
SECTION- G
Sensex- 20104(decrease 12.52)
Nifty - 6029(decrease 6.15)
PROFIT FARMS GET ROLE IN FINANCIAL INCLUSION
Researve Bank Of India(RBI) allowed for profit companies with large and wide spread retail outlets to act as Business Correspondents(BCs).
Non banking finance companies(NBFCs) have been excluded from the list.
Bharti Airtel is a host of the companies.
Bharti Airtel has received licence to start financial service on mobile phone
Chanda Kochhar- MD & CEO of ICICI Bank.
S K MITRA- President of agriculture and ruler banking at Axis Bank.
1.5 million telecom retailers could now become Bcs.
Phone number of an individual could be come his account number with retailer.
According to RBI only 5 percent of india's 600000 habitatians have access to a commercial bank.
In india only 40 percent population have bank account
Tembhali village will be host the launch of the center's much valuanted unique identification programme or Aadhar.
Air india has lossed of over Rs. 7200 crore and is expected to make further losses of Rs. 5000 crore in FY11.
COMPANIES( Page-2)
HCC eyes buys in Europe, West india
Hindustan construction company(HCC) is exploring acquisituion in Europe, West Asia, and South asia
HCC will spend around $ 100 million or more for each of new acquisition
Praveen sood- Group chief finance officer of HCC
Suneet Maheshwari – Chief executive of Larsen & Turbo Ltd.(L&T)
G V Sanjay Reddy- Vice chairman of GVK power & infrastructure
Shinzo Nakanishi- MD & CEO OF Maruti suzuki
Bipasa Basu will be new Brand ambassador of EMAMI(FMCG) companies
Indian furniture sector grow 20 percent and imports nearly 64 percent
British Airways announced the 14 board members and three sub committees of the International consolidate Airline Group(IAG)
Antonio Vazquez Romero- chairman of IAG
Martin Broughton- Deputy chairman of IAG group.
Rajiv Jain- He has been appointed a new chairman of Gems & Jewellery Export Promotion Council(GJPEC), Instead of Vasant mehta .
Rajiv Lall- CEO & MD of Infracture Development Finance Company(IDFC)
BP RIL TO DISCUSS ASSETS SALES JOINT VENTURES
BP and Reliance Industry Ltd.(RIL) will set the ball rolling on divestment and joint venture opportunity between the two companies
Henric Svanberg- Chairman of BP companies
Robert Dubley- Newly appointed CEO of Bp companies
BP has 70-80 percent of ATF market in a African country.
ONGC Videsh Ltd.(OVL) is also in the race to buy Bps 35 percent stakes in the $1.3 billion Nam Con Gas Project in vietnam.
R S Sharma- MD & Chairman of ONGC
Sheikh Ahmed Abdulla- Kuwait oil minister
Murli Deora- Indian's petroleum minister
Apollo to Soon talk to Khazanah on Partnership
Apollo hospital is Asia's integrated healthcare company.
Prathap c Reddy-Apollo chairman.
Suneeta Reddy- Director Finance at Apollo hospital.
Consumer durables' Financing group after slowdown
Before three years consumar durable financing was 15 percent overall sales. It fell to 2-3 percent a year later because of exiting financial institutes such as ICICI, CITI and GE money.
Rajeev Jain- CEO of Bajaj finance
Rakesh Makkar- CEO of Future group
K sriram- Vice President of sales service and marketing Onida
According to Crisil Consumer durable is Rs. 25000 crore.
It is growing at 17-18 per cent per anum.
LCDs(liquid cristal display Tvs)and LEDs (light emitting diodeTVs )
has been close to 60 percent this year.
Ajit joshi MD and chief exicutive of Infiniti retail which runs Croma
stora, The Tata group's electronic and durable chain.
Bajaj is a leading company. It is providing finance for high end
products with the average size of a loan at Rs. 24000 crore.
Bharti shipard plans to sale as much as 15 percent equity to the country's largest shipping company, shipping corporation of India(SCI)
At present total market capital is Rs. 636 crore.
S Hajara- Chairman of SCI
Anup k Pujari- New director general of Foreign Trade
The asian development bank (ADB) raises the 2010 economic growth forecast for india to 8.5 percent.
Shashnak Manohar re- elected BCCI president
N Srinivasan r- elected chief secretary
There are two changes in the list of Vice president with former seceratry Niranjan shah and Rajya Sabha MP Rajiv Shukla have been appointed instead of chirayu Amin and former IPL chairman Lalit modi.
Amit singh
Anjali shukla
Anshu Mittal
SECTION- G
Sensex- 20104(decrease 12.52)
Nifty - 6029(decrease 6.15)
PROFIT FARMS GET ROLE IN FINANCIAL INCLUSION
Researve Bank Of India(RBI) allowed for profit companies with large and wide spread retail outlets to act as Business Correspondents(BCs).
Non banking finance companies(NBFCs) have been excluded from the list.
Bharti Airtel is a host of the companies.
Bharti Airtel has received licence to start financial service on mobile phone
Chanda Kochhar- MD & CEO of ICICI Bank.
S K MITRA- President of agriculture and ruler banking at Axis Bank.
1.5 million telecom retailers could now become Bcs.
Phone number of an individual could be come his account number with retailer.
According to RBI only 5 percent of india's 600000 habitatians have access to a commercial bank.
In india only 40 percent population have bank account
Tembhali village will be host the launch of the center's much valuanted unique identification programme or Aadhar.
Air india has lossed of over Rs. 7200 crore and is expected to make further losses of Rs. 5000 crore in FY11.
COMPANIES( Page-2)
HCC eyes buys in Europe, West india
Hindustan construction company(HCC) is exploring acquisituion in Europe, West Asia, and South asia
HCC will spend around $ 100 million or more for each of new acquisition
Praveen sood- Group chief finance officer of HCC
Suneet Maheshwari – Chief executive of Larsen & Turbo Ltd.(L&T)
G V Sanjay Reddy- Vice chairman of GVK power & infrastructure
Shinzo Nakanishi- MD & CEO OF Maruti suzuki
Bipasa Basu will be new Brand ambassador of EMAMI(FMCG) companies
Indian furniture sector grow 20 percent and imports nearly 64 percent
British Airways announced the 14 board members and three sub committees of the International consolidate Airline Group(IAG)
Antonio Vazquez Romero- chairman of IAG
Martin Broughton- Deputy chairman of IAG group.
Rajiv Jain- He has been appointed a new chairman of Gems & Jewellery Export Promotion Council(GJPEC), Instead of Vasant mehta .
Rajiv Lall- CEO & MD of Infracture Development Finance Company(IDFC)
BP RIL TO DISCUSS ASSETS SALES JOINT VENTURES
BP and Reliance Industry Ltd.(RIL) will set the ball rolling on divestment and joint venture opportunity between the two companies
Henric Svanberg- Chairman of BP companies
Robert Dubley- Newly appointed CEO of Bp companies
BP has 70-80 percent of ATF market in a African country.
ONGC Videsh Ltd.(OVL) is also in the race to buy Bps 35 percent stakes in the $1.3 billion Nam Con Gas Project in vietnam.
R S Sharma- MD & Chairman of ONGC
Sheikh Ahmed Abdulla- Kuwait oil minister
Murli Deora- Indian's petroleum minister
Apollo to Soon talk to Khazanah on Partnership
Apollo hospital is Asia's integrated healthcare company.
Prathap c Reddy-Apollo chairman.
Suneeta Reddy- Director Finance at Apollo hospital.
Consumer durables' Financing group after slowdown
Before three years consumar durable financing was 15 percent overall sales. It fell to 2-3 percent a year later because of exiting financial institutes such as ICICI, CITI and GE money.
Rajeev Jain- CEO of Bajaj finance
Rakesh Makkar- CEO of Future group
K sriram- Vice President of sales service and marketing Onida
According to Crisil Consumer durable is Rs. 25000 crore.
It is growing at 17-18 per cent per anum.
LCDs(liquid cristal display Tvs)and LEDs (light emitting diodeTVs )
has been close to 60 percent this year.
Ajit joshi MD and chief exicutive of Infiniti retail which runs Croma
stora, The Tata group's electronic and durable chain.
Bajaj is a leading company. It is providing finance for high end
products with the average size of a loan at Rs. 24000 crore.
Bharti shipard plans to sale as much as 15 percent equity to the country's largest shipping company, shipping corporation of India(SCI)
At present total market capital is Rs. 636 crore.
S Hajara- Chairman of SCI
Anup k Pujari- New director general of Foreign Trade
The asian development bank (ADB) raises the 2010 economic growth forecast for india to 8.5 percent.
Shashnak Manohar re- elected BCCI president
N Srinivasan r- elected chief secretary
There are two changes in the list of Vice president with former seceratry Niranjan shah and Rajya Sabha MP Rajiv Shukla have been appointed instead of chirayu Amin and former IPL chairman Lalit modi.
Business Line Summary - 28th Sep
Group-25
Group Members:-
Saurabh Garg
Sneha Kumari
Saurabh Goel
Vodafone may face tax demand for Rs 12,000 cr :-
Vodafone is likely to get a tax bill of Rs 12,000 crore-plus within the next four weeks for its $11.1-billion deal with Hutch in 2007.
The Chairman of Central Board of Direct Taxes, Mr S.S.N. Moorthy, said on Monday, “We will be raising a demand on Vodafone for Rs 12,000 crore-plus.
Issuing notice to the I-T Department, the apex court also said that Liberty is given to the petitioner (Vodafone) to move this Court for appropriate reliefs.
The matter will be heard again on October 25.
Corus to sport Tata Steel logo :-
Tata Steel has decided to emboss its name and logo on all the transactions of its European subsidiary Corus.
Corus joined the Tata Steel family in April 2007.
This brand migration will lead to the Tata Steel name becoming much more prominent and widely recognised across Europe and will reinforce our sense of belonging to the Tata Steel family. Said Mr.Kirby Adams.
The logo had also been changed. The blue colour has been changed to red color.
According to the Senior executive the transition is made only when the new company is ready and also the group is satisfied.
IDFC to issue tax-saving, long-term infrastructure bonds to raise Rs 3,400 cr:-
Infrastructure finance company IDFC Ltd is planning to raise up to Rs 3,400 crore through a retail issue of infrastructure bonds.
Investment of up to Rs 20,000 in these bonds will be tax exempt.
Having a face value of Rs 5,000, the bonds will have a maturity of 10 years and will be issued in four series. The coupon rate is 8 per cent payable annually or 7.5 per cent with a buyback option.
IDFC is also planning to raise funds through overseas borrowings.
ULIPs: New look, new feel :-
Under the new ULIP, which came into force from September 1, the Insurance Regulatory and Development Authority had cleared over 70 products, most of which have already hit the market.
The ULIPs, which had been a dominant business segment of the life insurance industry which came under the spotlight when the Securities and Exchange Board of India (SEBI), on April 9, asked 14 life insurers not to sell ULIPs without its approval.
According to the IRDA data, during February 2008 and April 2009, 16.7 lakh policies of ULIPs were sold with a total premium of Rs 44,611 crore.
Finally, the matter was taken to the Supreme Court forcing the Govt to step in amidst growing criticism and the toll the row was taking on the business.
the IRDA Chairman, Mr J. Hari Narayansaid that the real impact of the new norms and the policy-holders response could be known only by next April.
He also said that from the customer point of view, I think the regulatory issue had a positive impact of creating awareness on ULIPs which is very much required.'':-Sensex ends marginally down on profit-taking:-
The Bombay Stock Exchange benchmark Sensex closed marginally lower by 12.52 points at 20,104.86 points on Tuesday.
The reason was due to profit-booking by investors amid weak global cues.
A marketmen said that the weakening trend in the Asian region and lower opening in Europe influenced the market sentiment and capped the last 30-minute recovery, leaving the benchmark to become a little lower.
Among other software exporting companies, Tata Consultancy Services dropped by Rs 6.90 to Rs 920.40 and Wipro, the third biggest, by Rs 2.95 to Rs 441.60.
The oil and gas sector suffered the most by losing 0.83 per cent to 10,647.86 followed by the IT sector index which lost 0.5 per cent to 5,914.81.
ADAG likely to enter stock exchange space:-
Dhirubhai Ambani Group (ADAG) has announced its intention to enter all segments of the exchange business.
The group has already entered segments like commodity exchange and spot exchange.
There are only two national-level full-fledged stock exchanges in the country- BSE and NSE.
At present, Indiabulls holds 40 per cent, out of which it wants to sell 26 per cent stake in the exchange to ADAG group.
Reliance Capital is already in the spot commodity space.
RBI invites applications for Nabard chairman:-
Reserve Bank of India (RBI) has invited applications for the post of Chairman of apex agriculture bank Nabard.
The Chairman of Nabard shall hold office for a term of up to 5 years from the date on which he assumes his office or until he attains the age of 60 years, whichever is earlier.
Nabard, which is a subsidiary of RBI, provides and regulates credit and other facilities for promotion and development of agriculture, SSI, cottage and village industries, handicraft and other allied economic activities in rural areas.
The financial institution is responsible for supervision of the rural cooperative credit structure and Regional Rural Banks in the country.
A good exposure to institutional development and banking supervision would be an added qualification.
Re at 4-month high; Sensex, Nifty up:-
A mildly positive sentiment prevailed across the financial markets.
With foreign institutional investors pumping in a net of Rs 1,137 crore into equity on Monday, the Nifty and Sensex, rose by 0.29 per cent and 0.36 per cent.
Gold too went up marginally by 30 cents over its previous close of $1,295.95/troy ounce. Only crude oil eased, to below $76 at $75.62 a barrel.
India's inflection point is yet to come, says Reliance Brands CEO:-
Reliance Brands, a subsidiary of Mukesh Ambani owned Reliance Retail, is looking to bring more global labels to India.
As far we are concerned, we have had a six week sell-through. So this is a good indicator of the time to come in the retail sector.
The biggest challenge is to convince potential partners and also reaching the right customer. Location and real estate are problems that most retailers face.
We believe that the joint ventures are the most robust model and ensure longevity of the relationship. In any partnership the most difficult years are when the foundations are laid.
Canara Bank's Rs 1,000- cr bond issue:-
Canara Bank has come out with an issue of upper tier-II bonds to raise Rs 1,000 crore to augment its capital resources.
The objective of the issue, the announcement said, was to strengthen the capital adequacy and enhancing long-term resources of the bank.
The bonds will be issued at a coupon rate of 8.62 per cent for the first 10 years, it added, and a step-up coupon rate of 0.5 per cent payable annually.
The issue opens on September 27 and closed on September 28.
Group Members:-
Saurabh Garg
Sneha Kumari
Saurabh Goel
Vodafone may face tax demand for Rs 12,000 cr :-
Vodafone is likely to get a tax bill of Rs 12,000 crore-plus within the next four weeks for its $11.1-billion deal with Hutch in 2007.
The Chairman of Central Board of Direct Taxes, Mr S.S.N. Moorthy, said on Monday, “We will be raising a demand on Vodafone for Rs 12,000 crore-plus.
Issuing notice to the I-T Department, the apex court also said that Liberty is given to the petitioner (Vodafone) to move this Court for appropriate reliefs.
The matter will be heard again on October 25.
Corus to sport Tata Steel logo :-
Tata Steel has decided to emboss its name and logo on all the transactions of its European subsidiary Corus.
Corus joined the Tata Steel family in April 2007.
This brand migration will lead to the Tata Steel name becoming much more prominent and widely recognised across Europe and will reinforce our sense of belonging to the Tata Steel family. Said Mr.Kirby Adams.
The logo had also been changed. The blue colour has been changed to red color.
According to the Senior executive the transition is made only when the new company is ready and also the group is satisfied.
IDFC to issue tax-saving, long-term infrastructure bonds to raise Rs 3,400 cr:-
Infrastructure finance company IDFC Ltd is planning to raise up to Rs 3,400 crore through a retail issue of infrastructure bonds.
Investment of up to Rs 20,000 in these bonds will be tax exempt.
Having a face value of Rs 5,000, the bonds will have a maturity of 10 years and will be issued in four series. The coupon rate is 8 per cent payable annually or 7.5 per cent with a buyback option.
IDFC is also planning to raise funds through overseas borrowings.
ULIPs: New look, new feel :-
Under the new ULIP, which came into force from September 1, the Insurance Regulatory and Development Authority had cleared over 70 products, most of which have already hit the market.
The ULIPs, which had been a dominant business segment of the life insurance industry which came under the spotlight when the Securities and Exchange Board of India (SEBI), on April 9, asked 14 life insurers not to sell ULIPs without its approval.
According to the IRDA data, during February 2008 and April 2009, 16.7 lakh policies of ULIPs were sold with a total premium of Rs 44,611 crore.
Finally, the matter was taken to the Supreme Court forcing the Govt to step in amidst growing criticism and the toll the row was taking on the business.
the IRDA Chairman, Mr J. Hari Narayansaid that the real impact of the new norms and the policy-holders response could be known only by next April.
He also said that from the customer point of view, I think the regulatory issue had a positive impact of creating awareness on ULIPs which is very much required.'':-Sensex ends marginally down on profit-taking:-
The Bombay Stock Exchange benchmark Sensex closed marginally lower by 12.52 points at 20,104.86 points on Tuesday.
The reason was due to profit-booking by investors amid weak global cues.
A marketmen said that the weakening trend in the Asian region and lower opening in Europe influenced the market sentiment and capped the last 30-minute recovery, leaving the benchmark to become a little lower.
Among other software exporting companies, Tata Consultancy Services dropped by Rs 6.90 to Rs 920.40 and Wipro, the third biggest, by Rs 2.95 to Rs 441.60.
The oil and gas sector suffered the most by losing 0.83 per cent to 10,647.86 followed by the IT sector index which lost 0.5 per cent to 5,914.81.
ADAG likely to enter stock exchange space:-
Dhirubhai Ambani Group (ADAG) has announced its intention to enter all segments of the exchange business.
The group has already entered segments like commodity exchange and spot exchange.
There are only two national-level full-fledged stock exchanges in the country- BSE and NSE.
At present, Indiabulls holds 40 per cent, out of which it wants to sell 26 per cent stake in the exchange to ADAG group.
Reliance Capital is already in the spot commodity space.
RBI invites applications for Nabard chairman:-
Reserve Bank of India (RBI) has invited applications for the post of Chairman of apex agriculture bank Nabard.
The Chairman of Nabard shall hold office for a term of up to 5 years from the date on which he assumes his office or until he attains the age of 60 years, whichever is earlier.
Nabard, which is a subsidiary of RBI, provides and regulates credit and other facilities for promotion and development of agriculture, SSI, cottage and village industries, handicraft and other allied economic activities in rural areas.
The financial institution is responsible for supervision of the rural cooperative credit structure and Regional Rural Banks in the country.
A good exposure to institutional development and banking supervision would be an added qualification.
Re at 4-month high; Sensex, Nifty up:-
A mildly positive sentiment prevailed across the financial markets.
With foreign institutional investors pumping in a net of Rs 1,137 crore into equity on Monday, the Nifty and Sensex, rose by 0.29 per cent and 0.36 per cent.
Gold too went up marginally by 30 cents over its previous close of $1,295.95/troy ounce. Only crude oil eased, to below $76 at $75.62 a barrel.
India's inflection point is yet to come, says Reliance Brands CEO:-
Reliance Brands, a subsidiary of Mukesh Ambani owned Reliance Retail, is looking to bring more global labels to India.
As far we are concerned, we have had a six week sell-through. So this is a good indicator of the time to come in the retail sector.
The biggest challenge is to convince potential partners and also reaching the right customer. Location and real estate are problems that most retailers face.
We believe that the joint ventures are the most robust model and ensure longevity of the relationship. In any partnership the most difficult years are when the foundations are laid.
Canara Bank's Rs 1,000- cr bond issue:-
Canara Bank has come out with an issue of upper tier-II bonds to raise Rs 1,000 crore to augment its capital resources.
The objective of the issue, the announcement said, was to strengthen the capital adequacy and enhancing long-term resources of the bank.
The bonds will be issued at a coupon rate of 8.62 per cent for the first 10 years, it added, and a step-up coupon rate of 0.5 per cent payable annually.
The issue opens on September 27 and closed on September 28.
Business Line - 28th September
Submitted by
Suchita Sood
Swati Sharma
Vodafone may face tax demand for Rs 12,000 cr
Vodafone is likely to get a tax bill of “Rs 12,000 core-plus within the next four weeks” for its $11.1-billion deal with Hutch in 2007.
The Chairman of Central Board of Direct Taxes, Mr S.S.N. Moor thy, said on Monday, “We will be raising a demand on Vodafone for Rs 12,000 core-plus.
This only relates to the tax and the interest component. The order relating to the withholding tax will be presented to the Supreme Court within four weeks.”
the Supreme Court directed on Monday asking the I-T Department to determine and quantify, within four weeks, the tax liability of Vodafon
The ruling, coupled with earlier rulings of Bombay HC, proves that I-T authorities in India have acted lawfully. This, together with the fact that India has received the highest ever
foreign direct investment in the current fiscal, belies apprehensions regarding the impact of such action of the I-T Department on foreign investments in india
Re at 4-month high ;sensex ; nifty up
A mildly positive sentiment prevailed across the financial markets. The rupee rose to a over four-month high to close at Rs 45.01 to a dollar appreciating by 25 paise after a volatile
day's trading session backed by strong FII inflows.
With foreign institutional investors pumping in a net of Rs 1,137 crore into equity on Monday, the Nifty and Sensex, rose by 0.29 per cent and 0.36 per cent respectively.
Though domestic institutions were net sellers for Rs 1,054 crore, Nifty closed above the 6,000 mark and the Sensex above the 20,100 mark.
Barring the CNX IT and the Bank Nifty, all indices closed in the green on NSE. The same indices along with the FMCG index closed in the red on the BSE.
Gold too went up marginally by 30 cents over its previous close of $1,295.95/troy ounce. Only crude oil eased, to below $76 at $75.62 a barrel.
Garlic price shoot up on rise in export ,ban on chinese imports
Garlic, which had hardly cost Rs 15 a kg until February 2009 at retail outlets, has now galloped over dozen times, thanks to rising export demand and a ban on Chinese garlic.
Garlic that was quoted at Rs 550 a quintal at the Agra terminal market in March 2009 is now quoted at Rs 7,000.
Earlier this year, the prices dropped from a high of Rs 5,400 in February to Rs 2,500 in May on higher arrivals. Since then, garlic has moved only one way — up
. The rise has been sharp in the last couple of weeks and within this month, the increase has been 60 per cent.
Imports from China have stopped after the Government imposed a ban two years ago due to a disease in the Chinese garlic,” said Mr R.P. Gupta, Director of the National Horticultural Research and Development Foundation. “This year, domestic production is good,” he said.
According to the Spices Board, exports in April-August have increased by 327 per cent to 13,250 tonnes valued at Rs 498 crore from 3,100 tonnes valued at Rs 63.22 crore in the same period last year.
Trade sources said China has turned a net importer this year as its garlic crop has been affected by hot weather first and floods thereafter.
No details are available on Indian production for this year, though estimates put it around 10 lakh tonnes. Garlic is sown during September-October and harvested during March.
But garlic farmers have not reaped the full benefit of the surge in prices. They had sold at around Rs 3,500/quintal in April
IDFC to issue tax-saving, long-term infrastructure bonds to raise Rs 3,400 cr
Infrastructure finance company IDFC Ltd is planning to raise up to Rs 3,400 crore through a retail issue of infrastructure bonds.
Investment of up to Rs 20,000 in these bonds will be tax exempt. This is over and above the tax exemption available on investments of Rs 1 lakh in other tax-savings schemes.
Having a face value of Rs 5,000, the bonds will have a maturity of 10 years and will be issued in four series. The coupon rate is 8 per cent payable annually or 7.5 per cent with a buyback option.
Subscription norms
Investors have to subscribe to a minimum of two bonds (or Rs 10,000). Investors also have the option to pledge the bonds after a lock-in period of five years.
These bonds will be listed on stock exchanges – BSE and NSE – and can be traded after five years. In Series 3 and Series 4, there is a buyback option after five years.
The bonds are not guaranteed but are secured against receivables. IDFC is looking to triple its balance sheet from Rs 35,000 crore to Rs 1 lakh crore. It has a net worth of Rs 10,000 crore and a capital adequacy of 26 per cent, Mr Lall added.Overseas borrowings
IDFC is also planning to raise funds through overseas borrowings. It has headroom to raise around Rs 3,000 crore through overseas borrowings, said Mr L K Narayan, Group
Chief Financial Officer.
In August, IFCI had raised Rs 100 crore through a similar retail infrastructure bond issue, which offered a coupon rate of 7.95 per cent. LIC is the third financial institution
mandated by the government to raise long term retail infrastructure bonds.
Paddy arrivals begin to flood markets; rice rules stable
With the weather turning favourable for the trade, over 60,000 bags of various paddy varieties arrived in the several mandies in North India, particularly on Monday.
Traders are expecting the arrivals to touch the one-lakh-bags-a-day mark from the beginning of October.
In the rice market, with sluggish demand, basmati and non-basmati varieties continued to rule stable.
Waiting for the start of the new season, aromatic rice prices ruled unchanged, while the prices of non-basmati varieties ruled firm with little movement.
Pusa-1121 (steam) ruled around the levels of Rs 5,300 a quintal; Pusa-1121 (sela) at Rs 4,350; Pusa-1121 (raw) around Rs 5,350. Pusa (sela) quoted at Rs 3,300-3,350 a quintal and Pusa (raw) at Rs 4,200.
Basmati sela ruled at Rs 6,200 a quintal, while basmati raw was quoted at Rs 7,150-7,200.
The Sugandha-999 sela was quoted at Rs 2,725 and PR14 (old) was at Rs 2,200-2,235; Sharbati sela at Rs 2,725 and Sharbati steam at Rs 2,900.
PR11 sela quoted around Rs 2,200, PR11 (raw) at Rs 2,180 and PR (steam) at Rs 2,280-2,300 a quintal. Brokens such as Tibar ruled around Rs 3,700 a quintal; Dubar at Rs 2,600
and Mongra around Rs 2,000.
Around 35,000 bags of different paddy varieties arrived in the Karnal mandi.
Except the prices of RS-10 variety, the prices of all other paddy varieties witnessed a downtrend. Following the good quality, price of RS-10 variety rose by Rs 25 a quintal and was
quoted at Rs 1,200-1,250.Prices of PR-14 ruled between Rs 1,000 and Rs 1,060 a quintal, PR was quoted at Rs 981-1,040 a quintal, while the PR-13 was at Rs 900-940 a quintal. Sharbati paddy ruled around
Rs 1,300-1,380 a quintal against the Rs 1,300-1,425 last weekend. Prices of Sugandha-999 dropped Rs 50 a quintal and ruled at Rs 1,450-1,550 against Rs 1,525-1,600 last week
The stock was lifted by the rice millers.
KPIT Cummins to acquire US-based CPG Solutions
Pune-based KPIT Cummins Infosystems will acquire US-based CPG Solutions, a provider of Oracle consulting services to manufacturing and supply chain companies, for Rs 60 crore.
CPG Solutions, which has around 50 employees and revenue of $11 million this year, will enable KPIT Cummins to deepen its Oracle consulting portfolio.
“Our revenue from Oracle consulting practice is around $27 million. The acquisition will take it to $40 million and we aim to build it to $100 million over the next three years,”
Mr Ravi Pandit, Chairman of KPIT Cummins, said. Of the consideration of Rs 60 crore, Rs 27 crore will be paid upfront with the balance to be paid as a milestone-based
consideration over three years.
The acquisition was approved by the board on Friday and will be implemented over the next two or three days. It expects to add another $6 million in revenues from this buy for
the current fiscal.
Funding
The entire deal will be funded through the internal accruals of KPIT Cummins. The company has been scaling up its enterprise consulting practice in the last few years.
In 2009, it agreed to buy SAP specialist Sparta Consulting for up to $38 million (around Rs180 crore), giving it access to a higher revenue-generating platform in the US.
KPIT is focused on the manufacturing, energy and utilities industry which accounts for 85 per cent of its revenues.
The acquisition of CPG will further strengthen its position as a preferred Oracle partner for manufacturing companies and is designed to complement KPIT's strengths
in global ERP rollouts, implementation and support and maintenance services.
Sparta has been generating revenues to the tune of $11 million with EBITDA (earnings before interest depreciation and amortisation) margin of 13 per cent.
The KPIT Cummins scrip hit an intraday low of Rs 170 before ending the day at Rs 172, 0.9 per cent lower than Friday's closing price on the BSE.
Kuwait keen on strategic stake in IndianOil
Kuwait's Oil Minister, Sheikh Ahmad al-Abdullah al-Sabah, has said that Kuwait would be keen to buy strategic stake in public sector Indian Oil Corporation (IOC), subject to economic
feasibility.
He told newspersons here after his luncheon meeting with the IOC management that “I have come to know that the Indian Government is divesting some of its share in IOC.
If it is offering a certain per cent
to strategic investors, we are interested in such a proposal, subject to feasibility studies and economics of such an offer.”
The Centre has proposed a 10 per cent divestment of its stake in IOC. Alongside the stake sale, IOC plans do a public offer of its 10 per cent expanded equity to raise close to
Rs 9,000 crore for part-financing
its capital expenditure. IOC's follow-on public offer is likely in January.
“It has to be a strategic investment,” the Kuwaiti Minister said. Asked about investments in refineries in India, he said that any investments by Kuwait will depend on economic feasibility.
Collaboration
Kuwait and IOC discussed collaboration in research and development, training, petrochemicals and exploration and production activities. IOC also sought long-term crude oil supplies
from Kuwait.
Currently, IOC buys 9 million tonnes crude oil from Kuwait Asked about crude oil prices, the Kuwaiti Oil Minister said, crude oil prices are likely to be between $75 and $80 a barrel
in the first quarter of 2011. Kuwait's current oil output is 2.2 million barrels a day.
The Kuwaiti Minister is expected to meet the Petroleum Minister, Mr Murli Deora, on Tuesday.
Suchita Sood
Swati Sharma
Vodafone may face tax demand for Rs 12,000 cr
Vodafone is likely to get a tax bill of “Rs 12,000 core-plus within the next four weeks” for its $11.1-billion deal with Hutch in 2007.
The Chairman of Central Board of Direct Taxes, Mr S.S.N. Moor thy, said on Monday, “We will be raising a demand on Vodafone for Rs 12,000 core-plus.
This only relates to the tax and the interest component. The order relating to the withholding tax will be presented to the Supreme Court within four weeks.”
the Supreme Court directed on Monday asking the I-T Department to determine and quantify, within four weeks, the tax liability of Vodafon
The ruling, coupled with earlier rulings of Bombay HC, proves that I-T authorities in India have acted lawfully. This, together with the fact that India has received the highest ever
foreign direct investment in the current fiscal, belies apprehensions regarding the impact of such action of the I-T Department on foreign investments in india
Re at 4-month high ;sensex ; nifty up
A mildly positive sentiment prevailed across the financial markets. The rupee rose to a over four-month high to close at Rs 45.01 to a dollar appreciating by 25 paise after a volatile
day's trading session backed by strong FII inflows.
With foreign institutional investors pumping in a net of Rs 1,137 crore into equity on Monday, the Nifty and Sensex, rose by 0.29 per cent and 0.36 per cent respectively.
Though domestic institutions were net sellers for Rs 1,054 crore, Nifty closed above the 6,000 mark and the Sensex above the 20,100 mark.
Barring the CNX IT and the Bank Nifty, all indices closed in the green on NSE. The same indices along with the FMCG index closed in the red on the BSE.
Gold too went up marginally by 30 cents over its previous close of $1,295.95/troy ounce. Only crude oil eased, to below $76 at $75.62 a barrel.
Garlic price shoot up on rise in export ,ban on chinese imports
Garlic, which had hardly cost Rs 15 a kg until February 2009 at retail outlets, has now galloped over dozen times, thanks to rising export demand and a ban on Chinese garlic.
Garlic that was quoted at Rs 550 a quintal at the Agra terminal market in March 2009 is now quoted at Rs 7,000.
Earlier this year, the prices dropped from a high of Rs 5,400 in February to Rs 2,500 in May on higher arrivals. Since then, garlic has moved only one way — up
. The rise has been sharp in the last couple of weeks and within this month, the increase has been 60 per cent.
Imports from China have stopped after the Government imposed a ban two years ago due to a disease in the Chinese garlic,” said Mr R.P. Gupta, Director of the National Horticultural Research and Development Foundation. “This year, domestic production is good,” he said.
According to the Spices Board, exports in April-August have increased by 327 per cent to 13,250 tonnes valued at Rs 498 crore from 3,100 tonnes valued at Rs 63.22 crore in the same period last year.
Trade sources said China has turned a net importer this year as its garlic crop has been affected by hot weather first and floods thereafter.
No details are available on Indian production for this year, though estimates put it around 10 lakh tonnes. Garlic is sown during September-October and harvested during March.
But garlic farmers have not reaped the full benefit of the surge in prices. They had sold at around Rs 3,500/quintal in April
IDFC to issue tax-saving, long-term infrastructure bonds to raise Rs 3,400 cr
Infrastructure finance company IDFC Ltd is planning to raise up to Rs 3,400 crore through a retail issue of infrastructure bonds.
Investment of up to Rs 20,000 in these bonds will be tax exempt. This is over and above the tax exemption available on investments of Rs 1 lakh in other tax-savings schemes.
Having a face value of Rs 5,000, the bonds will have a maturity of 10 years and will be issued in four series. The coupon rate is 8 per cent payable annually or 7.5 per cent with a buyback option.
Subscription norms
Investors have to subscribe to a minimum of two bonds (or Rs 10,000). Investors also have the option to pledge the bonds after a lock-in period of five years.
These bonds will be listed on stock exchanges – BSE and NSE – and can be traded after five years. In Series 3 and Series 4, there is a buyback option after five years.
The bonds are not guaranteed but are secured against receivables. IDFC is looking to triple its balance sheet from Rs 35,000 crore to Rs 1 lakh crore. It has a net worth of Rs 10,000 crore and a capital adequacy of 26 per cent, Mr Lall added.Overseas borrowings
IDFC is also planning to raise funds through overseas borrowings. It has headroom to raise around Rs 3,000 crore through overseas borrowings, said Mr L K Narayan, Group
Chief Financial Officer.
In August, IFCI had raised Rs 100 crore through a similar retail infrastructure bond issue, which offered a coupon rate of 7.95 per cent. LIC is the third financial institution
mandated by the government to raise long term retail infrastructure bonds.
Paddy arrivals begin to flood markets; rice rules stable
With the weather turning favourable for the trade, over 60,000 bags of various paddy varieties arrived in the several mandies in North India, particularly on Monday.
Traders are expecting the arrivals to touch the one-lakh-bags-a-day mark from the beginning of October.
In the rice market, with sluggish demand, basmati and non-basmati varieties continued to rule stable.
Waiting for the start of the new season, aromatic rice prices ruled unchanged, while the prices of non-basmati varieties ruled firm with little movement.
Pusa-1121 (steam) ruled around the levels of Rs 5,300 a quintal; Pusa-1121 (sela) at Rs 4,350; Pusa-1121 (raw) around Rs 5,350. Pusa (sela) quoted at Rs 3,300-3,350 a quintal and Pusa (raw) at Rs 4,200.
Basmati sela ruled at Rs 6,200 a quintal, while basmati raw was quoted at Rs 7,150-7,200.
The Sugandha-999 sela was quoted at Rs 2,725 and PR14 (old) was at Rs 2,200-2,235; Sharbati sela at Rs 2,725 and Sharbati steam at Rs 2,900.
PR11 sela quoted around Rs 2,200, PR11 (raw) at Rs 2,180 and PR (steam) at Rs 2,280-2,300 a quintal. Brokens such as Tibar ruled around Rs 3,700 a quintal; Dubar at Rs 2,600
and Mongra around Rs 2,000.
Around 35,000 bags of different paddy varieties arrived in the Karnal mandi.
Except the prices of RS-10 variety, the prices of all other paddy varieties witnessed a downtrend. Following the good quality, price of RS-10 variety rose by Rs 25 a quintal and was
quoted at Rs 1,200-1,250.Prices of PR-14 ruled between Rs 1,000 and Rs 1,060 a quintal, PR was quoted at Rs 981-1,040 a quintal, while the PR-13 was at Rs 900-940 a quintal. Sharbati paddy ruled around
Rs 1,300-1,380 a quintal against the Rs 1,300-1,425 last weekend. Prices of Sugandha-999 dropped Rs 50 a quintal and ruled at Rs 1,450-1,550 against Rs 1,525-1,600 last week
The stock was lifted by the rice millers.
KPIT Cummins to acquire US-based CPG Solutions
Pune-based KPIT Cummins Infosystems will acquire US-based CPG Solutions, a provider of Oracle consulting services to manufacturing and supply chain companies, for Rs 60 crore.
CPG Solutions, which has around 50 employees and revenue of $11 million this year, will enable KPIT Cummins to deepen its Oracle consulting portfolio.
“Our revenue from Oracle consulting practice is around $27 million. The acquisition will take it to $40 million and we aim to build it to $100 million over the next three years,”
Mr Ravi Pandit, Chairman of KPIT Cummins, said. Of the consideration of Rs 60 crore, Rs 27 crore will be paid upfront with the balance to be paid as a milestone-based
consideration over three years.
The acquisition was approved by the board on Friday and will be implemented over the next two or three days. It expects to add another $6 million in revenues from this buy for
the current fiscal.
Funding
The entire deal will be funded through the internal accruals of KPIT Cummins. The company has been scaling up its enterprise consulting practice in the last few years.
In 2009, it agreed to buy SAP specialist Sparta Consulting for up to $38 million (around Rs180 crore), giving it access to a higher revenue-generating platform in the US.
KPIT is focused on the manufacturing, energy and utilities industry which accounts for 85 per cent of its revenues.
The acquisition of CPG will further strengthen its position as a preferred Oracle partner for manufacturing companies and is designed to complement KPIT's strengths
in global ERP rollouts, implementation and support and maintenance services.
Sparta has been generating revenues to the tune of $11 million with EBITDA (earnings before interest depreciation and amortisation) margin of 13 per cent.
The KPIT Cummins scrip hit an intraday low of Rs 170 before ending the day at Rs 172, 0.9 per cent lower than Friday's closing price on the BSE.
Kuwait keen on strategic stake in IndianOil
Kuwait's Oil Minister, Sheikh Ahmad al-Abdullah al-Sabah, has said that Kuwait would be keen to buy strategic stake in public sector Indian Oil Corporation (IOC), subject to economic
feasibility.
He told newspersons here after his luncheon meeting with the IOC management that “I have come to know that the Indian Government is divesting some of its share in IOC.
If it is offering a certain per cent
to strategic investors, we are interested in such a proposal, subject to feasibility studies and economics of such an offer.”
The Centre has proposed a 10 per cent divestment of its stake in IOC. Alongside the stake sale, IOC plans do a public offer of its 10 per cent expanded equity to raise close to
Rs 9,000 crore for part-financing
its capital expenditure. IOC's follow-on public offer is likely in January.
“It has to be a strategic investment,” the Kuwaiti Minister said. Asked about investments in refineries in India, he said that any investments by Kuwait will depend on economic feasibility.
Collaboration
Kuwait and IOC discussed collaboration in research and development, training, petrochemicals and exploration and production activities. IOC also sought long-term crude oil supplies
from Kuwait.
Currently, IOC buys 9 million tonnes crude oil from Kuwait Asked about crude oil prices, the Kuwaiti Oil Minister said, crude oil prices are likely to be between $75 and $80 a barrel
in the first quarter of 2011. Kuwait's current oil output is 2.2 million barrels a day.
The Kuwaiti Minister is expected to meet the Petroleum Minister, Mr Murli Deora, on Tuesday.
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