Naina singh
Neha Yadav
Neeraj Chopra
Group- 14 (Section - F)
Microfinance Institutions Network(MFIN) are ready to cut lending rates provided banks lower interest
MFIN's CEO Mr Alok Prasad said that 12-13% interest on loans taken from banks is too costly for them & its a challenge for them to bring it down. He emphasize that there should be a partnership approach for promoting access to credit to people & it can be achieved if MFIs can cut lending rates from 24-27% to 23-24% & they are ready for it provided banks bring down their lending rate to 10-11%.
MFI argued that since their employees have to go door to doorin rural areas to reach to the customers therefore their average operating costs are high. So if one add loan loss of 1-2% & reasonable rate of return then the interest rates comes out to be 25% per year.
Centre is planning to give Rs 10000 cr to oil marketing firms as apart of fuel losses
The three companies IndianOil, Bharat Petroleum Corporation and Hindustan Petroleum Corporation have run up losses of around Rs 31000 crore in the April- September period of which a third(i.e 10330 crores) will be borne by the Oil and Natural Gas Corporation with some help from Oil India & GAIL. Centre is planning to give Rs 10000 crore as an adhoc package.
This means that these three companies would have to take the hit for the balance of some Rs 10000 crores.
GAIL loses Kakinada,Bhilwada pipeline project to GSPC
GAIL has lost the bid to built 1545 Km Kakinada-Bijapur-Bhilwada gas pipeline to a consortium of public sector companies led by the Gujarat State Petroleum Corporation(GSPC)
Nippon Steel to make auto pipes at Rajasthan plant
Japanese steelmaker Nippon Steel announced that they will invest Rs 164 crores in an automotive steel pipe plant in Rajasthan.They selected Neemrana Industrial Park for it and production is expected to start by 2012. Investment for this project will be routed throgh Siam Nippon Steel Pipe Co, Nippon Steel's Thai unit.
This is the third time in last year that Japanese steelmaker has targeted the Indian auto market. JFE recently picked up a 14.98% stake in JSW to produce auto-grade steel while Sumitomo metals signed in a deal with Bhushan Steel.
Cyprus realty major Leptos woos Indian investments
Leptos Group a local property developer with an estimated net worth of 1.5 billion euros would like to have participation from India in the implimentation of Neopolis Smart EcoCity. It is a 2 billion euro project and funding for the first phase of it has already been finalised.
Basel Committee announces progress in reforms programme
The Basel committee on Banking supervision met in Seoul on Tuesday to finalise its reforms programme for ensuring systematic stability of the global financial architecture.
Basel committee and president of Neitherlands Bank, Mr Nout Wellink said that the committee will address the identified weaknesses of the pre-crisis banking sector, thus delivering on G-20 mandate given at the Pittsburg summit to develop a more resilient banking sector.
The firm specific and broader systemic risks have been reffered to as “BASEL III”.
Their agenda includes higher quality of capital to ensure that banks can better absorb the types of losses, better coverage of risk,internationally harmonised leverage ratio to constrain excessive risk taking.
Sesa Goa pins hopes on Court ruling on iron ore export ban
Sesa Goa a Vedanta Group company expects the Karnataka High Court to give its verdict on the State Government ban on iron ore exports by the end of this month.The Court has been hearing abatch of petitions field by nine mining companies led by Sesa Goa. Restrictions on transportation of ore imposed by Goa Government and issue of overloading trucks have also hit the company.
Wednesday, October 20, 2010
20th October - THE MINT
Nitika Balaggan
Pallavi Srivastava
Pavneet Kaur
Group-14 (Section - H)
SENSEX 19,983.13 decline 185.76
NIFTY 6027.30 decline 48.65
DOLLAR Rs 44.35 decline Rs 0.01
GOLD Rs19,735 increase Rs 60
OIL $83.12 Decline $0.68.
Top Stories
Job rider likely for PSU investment
Although the India has impressive growth but job creation has not kept pace. New employment policy aims to accelerate job growth in organized sector. “The main objective of the policy is to make employment the focus area in all economic activities.”- Prabhat Chaturvedi (secretary, ministry of labor and employment)
According to National Sample Survey Office in 2004-05 around 8.2% Indians were unemployed. Now 47 million numbers of jobs are there in organized sector and the number of people who will enter job market between 2011 and 2016 is 63.5 million.
Come back of Vijay Sheth to build new offshore services empire
Sheth, 56 who created great Offshore as a division of Great Eastern Shipping Co. Ltd. His three companies are Great Energy Pvt. Ltd, Great Drilling Pvt. Ltd, and Great Towing Ltd. His shares went down and he suffered loss and finally in 2009 he is attempting a comeback by building a new empire from the ground up. Sheth will offer services mainly to oil and exploration co’s such as Reliance Industries Ltd. and ONGC Ltd.
ICICI will lay off some Bank of Rajasthan (BoR) staff after five years
ICICI Bank Ltd. have 4000 employees of BoR, according to the contract their terms will end at the end of 5 years but now ICICI has decided to retire them at age of 60. So many BoR employers are facing job security problem.
No Compromise On Terrified
Nirupama Rao said “India is willing to share the fruits of economic growth with its neighbors in south Asia. But it will not compromise on its fight against the terrorism”.
HDFC bank’s profit becomes 33% in 2nd quarter
Corporate news
IBM, HP chasing for each of the server clients
As the market in India recovers from slump in the last fiscal, IBM and HP coming out from the slump in 2009-10 are chasing each other’s customers and those of other companies. Thus the server market in India recovering from a slump.
Air Passenger traffic up 11.58% in Sep this year
DGCA released the data stating passenger growth rate to 11.58% as compared with the figures of last year. Among the gainers, Jet Airways, Kingfisher Airlines Ltd, Spicejet raised their market share for 3 to 5% and also the occupancy of almost all the leading airways company had fallen down to 3 to 5% except Kingfisher whose occupancy rate had risen from 75.2% to 85.9% this year
Market & Finance
Problem in implementation of smart order’s system
A smart order routing (SOR) a mechanism that helps investors to get the best price for their transactions across exchange. Its implementation is going to be delay because National Stock Exchange has recently introduced fresh conditions and policies. BSE wants to implement this facility since it believes that this system will help in increase in market share.
· The Bombay Stock Exchange’s sensitive index fell 185.76 or 0.9%, to 19,983.13
· 8% drop in GSM net additions; subscriber base up at 478 million.
THE WALL STREET JOURNAL
· Taliban influences grows in North
· Ray Ossie The executive of Microsoft corporations planning to leave Microsoft after the co founder Bill Gates.
Pallavi Srivastava
Pavneet Kaur
Group-14 (Section - H)
SENSEX 19,983.13 decline 185.76
NIFTY 6027.30 decline 48.65
DOLLAR Rs 44.35 decline Rs 0.01
GOLD Rs19,735 increase Rs 60
OIL $83.12 Decline $0.68.
Top Stories
Job rider likely for PSU investment
Although the India has impressive growth but job creation has not kept pace. New employment policy aims to accelerate job growth in organized sector. “The main objective of the policy is to make employment the focus area in all economic activities.”- Prabhat Chaturvedi (secretary, ministry of labor and employment)
According to National Sample Survey Office in 2004-05 around 8.2% Indians were unemployed. Now 47 million numbers of jobs are there in organized sector and the number of people who will enter job market between 2011 and 2016 is 63.5 million.
Come back of Vijay Sheth to build new offshore services empire
Sheth, 56 who created great Offshore as a division of Great Eastern Shipping Co. Ltd. His three companies are Great Energy Pvt. Ltd, Great Drilling Pvt. Ltd, and Great Towing Ltd. His shares went down and he suffered loss and finally in 2009 he is attempting a comeback by building a new empire from the ground up. Sheth will offer services mainly to oil and exploration co’s such as Reliance Industries Ltd. and ONGC Ltd.
ICICI will lay off some Bank of Rajasthan (BoR) staff after five years
ICICI Bank Ltd. have 4000 employees of BoR, according to the contract their terms will end at the end of 5 years but now ICICI has decided to retire them at age of 60. So many BoR employers are facing job security problem.
No Compromise On Terrified
Nirupama Rao said “India is willing to share the fruits of economic growth with its neighbors in south Asia. But it will not compromise on its fight against the terrorism”.
HDFC bank’s profit becomes 33% in 2nd quarter
Corporate news
IBM, HP chasing for each of the server clients
As the market in India recovers from slump in the last fiscal, IBM and HP coming out from the slump in 2009-10 are chasing each other’s customers and those of other companies. Thus the server market in India recovering from a slump.
Air Passenger traffic up 11.58% in Sep this year
DGCA released the data stating passenger growth rate to 11.58% as compared with the figures of last year. Among the gainers, Jet Airways, Kingfisher Airlines Ltd, Spicejet raised their market share for 3 to 5% and also the occupancy of almost all the leading airways company had fallen down to 3 to 5% except Kingfisher whose occupancy rate had risen from 75.2% to 85.9% this year
Market & Finance
Problem in implementation of smart order’s system
A smart order routing (SOR) a mechanism that helps investors to get the best price for their transactions across exchange. Its implementation is going to be delay because National Stock Exchange has recently introduced fresh conditions and policies. BSE wants to implement this facility since it believes that this system will help in increase in market share.
· The Bombay Stock Exchange’s sensitive index fell 185.76 or 0.9%, to 19,983.13
· 8% drop in GSM net additions; subscriber base up at 478 million.
THE WALL STREET JOURNAL
· Taliban influences grows in North
· Ray Ossie The executive of Microsoft corporations planning to leave Microsoft after the co founder Bill Gates.
20th October - THE ECONOMIC TIMES
MONIKA AGARWAL
MUSKAN DHINGRA
NEEHAR MEHTA
Group - 13 (Section -E)
CORPORATE NEWS
RAVI UPPAL JOINS L&T BOARD
LARSEN AND TOURBO has appointed ravi uppal the head of its power arm director on the board of the parent engineering company.
Investor Jhunjhunwala reaps big with A2Z maintenance
Billionare investor Rakesh jhunjhunwala is set to make killing through his investment in engineering and construction service firms A2Z maintenance which will be going public shortly.The company plan come out with initial public offer of around Rs 1000 crores.
Bird group to invest Rs 2200 in India
Travel and hospitality company bird group on Monday said invest Rs 2200 on developing six luxury hotels
Indian oil hit street in jan Rs 19000 crore offer
IOC will start shortlisting mechant bankers next week for its public issue about Rs 19000 crore largest ever equity offer in the country.
Vodafone leads Rs 300 crore a year CUG deal
Cellular service provider Vodafone –Essar deal is leading the race of prestigious bid to connect 3.75 lakh Gujarat employees in the country largest closer user group(CUG) network.
R-Power among 4 more in list of KG gas recipients
Four power projects including Reliance power 2400 mw samalkot project in Andhra Pradesh and Torrent Power project in Gujarat figure list prepared by power ministry.
BANKING AND FINANCE
SBI First bond sale botched up on regulatory order
The SBI first bond issue were botched up as some investors eager to buy them due to attractive yields.
HDFC beats street with 22% jump in quarter 2 profit
HDFC the largest home loan provider 22% rise in net profit for the 2 quarter of this fiscal .The rise in profit is on account of increase in spread.
Morgan Stanley reduces its overbought rating in Asia
Global investment house Morgan Stanley is reducing major overweight position
on Asia and emerging market equities.Morgan Stanley had upgraded its rating in may this year MSCI EM index – a barometer comprising stocks from different emerging markets- has risen 31.8%.
Kalanithi maran buy 2.28% more in Spice jet
Sun TV founder Kalanithi Maran and his unlisted aviation firm, Kal Airways Pvt Ltd , have raised stake in low-cost carrier spice jet after acquiring an additional 9.22 million shares, or 2.28 percent, the airline said in a filing to the BSE on Tuesday.
In June, Maran and Kal Airways had agreed to buy 37.7 percent in the carrier from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for 7.39 billion rupees at 47.25 rupees a share.
ECONOMY AND FINANCE
FEAR OF IPO BUBBLE GROWS AS HOT MONEY CONTINUES TO FLOOD ASIA
Prasarn Trairatvorakul struggled for balance as the ferry taking him across a Bangkok river pitched in choppy waters. “It’s a bit like the world economy these days,” the Bank of Thailand governor deadpanned as he plopped down on a ferry deck chair. “Very hard to control.” Prasarn would certainly know. Thailand may offer the best example of a curious phenomenon: how the Federal Reserve’s ultralow interest rates are benefiting Asia more than America. Excess central-bank liquidity explains the disconnect. Asia is getting loads of it, US assets are getting little.
GOVERNMENT WON”T SET PRICE OF NATURAL GAS
Clearing air on marketing freedom on natural gas, the government(Oil secretary S Sundareshan) on Monday said companies will continue to have the right to discover the market price of the fuel and government will no way dictate rates.
Emami ok Rs 5000 CRORE fund raising
The board of Emami group has approved a plan to raise up to Rs 5000 crore through debt and equity dilution throwingthrowing open speculations kolkata based company may still consider for paras pharmaceuticals despite higher valuation.
POLITICAL THEATRE
BIHARI ROOTS NO LONGER EMBRASS NRB
One of the talking points in public meetings addressed by bihar chief minister Nitish kumar during assembly poll campaign trail has been restoration of self pride and respect among people of his state during his tenure.
SPLIT VERDICT ON DISQUALIFICATION\
BJP efforts to dispel the impression that its government in Karnataka was living on daily wages suffered setback when 2 judges bench of the high court failed to produce a verdict on the status of 11 disqualified MLA. The issue will now be assessed by a third judge.
SENSEX: 19983.13
NIFTY:6011.11
MUSKAN DHINGRA
NEEHAR MEHTA
Group - 13 (Section -E)
CORPORATE NEWS
RAVI UPPAL JOINS L&T BOARD
LARSEN AND TOURBO has appointed ravi uppal the head of its power arm director on the board of the parent engineering company.
Investor Jhunjhunwala reaps big with A2Z maintenance
Billionare investor Rakesh jhunjhunwala is set to make killing through his investment in engineering and construction service firms A2Z maintenance which will be going public shortly.The company plan come out with initial public offer of around Rs 1000 crores.
Bird group to invest Rs 2200 in India
Travel and hospitality company bird group on Monday said invest Rs 2200 on developing six luxury hotels
Indian oil hit street in jan Rs 19000 crore offer
IOC will start shortlisting mechant bankers next week for its public issue about Rs 19000 crore largest ever equity offer in the country.
Vodafone leads Rs 300 crore a year CUG deal
Cellular service provider Vodafone –Essar deal is leading the race of prestigious bid to connect 3.75 lakh Gujarat employees in the country largest closer user group(CUG) network.
R-Power among 4 more in list of KG gas recipients
Four power projects including Reliance power 2400 mw samalkot project in Andhra Pradesh and Torrent Power project in Gujarat figure list prepared by power ministry.
BANKING AND FINANCE
SBI First bond sale botched up on regulatory order
The SBI first bond issue were botched up as some investors eager to buy them due to attractive yields.
HDFC beats street with 22% jump in quarter 2 profit
HDFC the largest home loan provider 22% rise in net profit for the 2 quarter of this fiscal .The rise in profit is on account of increase in spread.
Morgan Stanley reduces its overbought rating in Asia
Global investment house Morgan Stanley is reducing major overweight position
on Asia and emerging market equities.Morgan Stanley had upgraded its rating in may this year MSCI EM index – a barometer comprising stocks from different emerging markets- has risen 31.8%.
Kalanithi maran buy 2.28% more in Spice jet
Sun TV founder Kalanithi Maran and his unlisted aviation firm, Kal Airways Pvt Ltd , have raised stake in low-cost carrier spice jet after acquiring an additional 9.22 million shares, or 2.28 percent, the airline said in a filing to the BSE on Tuesday.
In June, Maran and Kal Airways had agreed to buy 37.7 percent in the carrier from US investor Wilbur Ross and Royal Holdings Services, held by the Kansagra family, for 7.39 billion rupees at 47.25 rupees a share.
ECONOMY AND FINANCE
FEAR OF IPO BUBBLE GROWS AS HOT MONEY CONTINUES TO FLOOD ASIA
Prasarn Trairatvorakul struggled for balance as the ferry taking him across a Bangkok river pitched in choppy waters. “It’s a bit like the world economy these days,” the Bank of Thailand governor deadpanned as he plopped down on a ferry deck chair. “Very hard to control.” Prasarn would certainly know. Thailand may offer the best example of a curious phenomenon: how the Federal Reserve’s ultralow interest rates are benefiting Asia more than America. Excess central-bank liquidity explains the disconnect. Asia is getting loads of it, US assets are getting little.
GOVERNMENT WON”T SET PRICE OF NATURAL GAS
Clearing air on marketing freedom on natural gas, the government(Oil secretary S Sundareshan) on Monday said companies will continue to have the right to discover the market price of the fuel and government will no way dictate rates.
Emami ok Rs 5000 CRORE fund raising
The board of Emami group has approved a plan to raise up to Rs 5000 crore through debt and equity dilution throwingthrowing open speculations kolkata based company may still consider for paras pharmaceuticals despite higher valuation.
POLITICAL THEATRE
BIHARI ROOTS NO LONGER EMBRASS NRB
One of the talking points in public meetings addressed by bihar chief minister Nitish kumar during assembly poll campaign trail has been restoration of self pride and respect among people of his state during his tenure.
SPLIT VERDICT ON DISQUALIFICATION\
BJP efforts to dispel the impression that its government in Karnataka was living on daily wages suffered setback when 2 judges bench of the high court failed to produce a verdict on the status of 11 disqualified MLA. The issue will now be assessed by a third judge.
SENSEX: 19983.13
NIFTY:6011.11
20th October - BUSINESS STANDARD
NISHTHA SRIVASTAVA
PANKHURI KRISHNA
PALLAVI GOGOI
(SECTION G)
RATES:- DOLLOR Rs 44.35
YEN(100 yen) Rs 54.48
EURO Rs 61.59
GOLD(10 gm ) Rs 19735
DIVERSTMENT MAY NET Rs 59 CRORE
· Government is set to beat its target of Rs 40000 crore from divesting stake in public sector companies
· Stake has increased in this quarter from 2000 crore to 22000 crore in which 15000 is alone contributed by coal India (public sector).
· Government is planning to generate 59000 crore at the end of this financial year with the help of sale and ONGC.
CHINA RATE HIKE TO HIT MARKET , RUPEE.
· Indian stock market is under pressure after china announced a rate hike.
· Chinese central bank announced that it would raise the one year yuan landing rate 5.56 from 5.31%.
VASUDEVA TO HEAD ONGC
· PUBLIC ENTERPRISE SELECTION BOARD(PESP) selected Vasudeva as a managing director of ONGC in the place of R.S. Sharma who retire on January 31st 2011.
· He was selected on the basis as he has deployed innovative approach and new technology to the ageing.
AGIES TO BE LARGEST INDIAN EMPLOYER IN US
· A Mumbai headquarter BPO is set to become Indian employer in US.
· out of the 5000 Costarica have 500 hundred and rest are in US.
INDINBULLES FREEZES RETAIL EXPENSION PLANS
· the LN mittal backed Indiabulls groups has put its retail planes on the backburner focusing instead of its core business of financial services and real state.
· The 3$ billion Indiabull groups has stock broking non banking, non banking real state, real state and retail ventures.
· It has planes to open stores in Mumbai and delhi among other places.
ECONOMY
· September direct tax mop-up clients 26.12%
· Stands at 81647Rs crores fastest monthly growth this year.
· The growth came on account of the second installment paid by the government tax payer and first installment of advance income tax paid by non-corporate tax payer.
MONEY AND MARKET
SENSEX DORPS 0.9%
· Sensex fell 0.9 % on Tuesday in choppy trade as a 3.5 billion dollar IPO by coal INDIA.
· Coal India’s IPO the country’s largest ever drew strong investor interest was covered on the second day.
· Leading outsourcer TCS dropped 1.2% and 3.1% respectively while Wipro shed 0.8%.
FINANCE
· HDFC bank net profit up 33%
· HDFC bank reported a net profit of 912.1 crore for the quarter ended September, a 32.7% increase from 687.46 crores an year ago.
· Noninterest income decline 9% decline on year on year basis to Rs 96070 crore from 1053.54 crore.
VISA GETS RBI PERMISSION FOR FUND REMITTANCE
· The RBI permission makes VISA the only electronic card payment technology company in india to support over 40 banks including ICICI, cenera bank including HDFC bank, enabling their card holders the facility of receiving remittance on their VISA debits and prepaid cards.
COMODITIES
SPONGE IRON PRICES LIKELY TO RISE 10% IN NOVEMBER
· Increase is due to demand for long steel from infrastructure company.
· At present premium sponge iron costs Rs 18000 a tone.
· It rose sharply by Rs 1000 to 1200 a tone in the first week.
BRIEF NEWS:-
· New 2 G guidelines are expects to be submitting to the department of telecom.
· 75 thousand tourists came during common wealth games.
· Cannon eye $ 1 billion turn over in India.
· Opto circuits to buy US firm.
PANKHURI KRISHNA
PALLAVI GOGOI
(SECTION G)
RATES:- DOLLOR Rs 44.35
YEN(100 yen) Rs 54.48
EURO Rs 61.59
GOLD(10 gm ) Rs 19735
DIVERSTMENT MAY NET Rs 59 CRORE
· Government is set to beat its target of Rs 40000 crore from divesting stake in public sector companies
· Stake has increased in this quarter from 2000 crore to 22000 crore in which 15000 is alone contributed by coal India (public sector).
· Government is planning to generate 59000 crore at the end of this financial year with the help of sale and ONGC.
CHINA RATE HIKE TO HIT MARKET , RUPEE.
· Indian stock market is under pressure after china announced a rate hike.
· Chinese central bank announced that it would raise the one year yuan landing rate 5.56 from 5.31%.
VASUDEVA TO HEAD ONGC
· PUBLIC ENTERPRISE SELECTION BOARD(PESP) selected Vasudeva as a managing director of ONGC in the place of R.S. Sharma who retire on January 31st 2011.
· He was selected on the basis as he has deployed innovative approach and new technology to the ageing.
AGIES TO BE LARGEST INDIAN EMPLOYER IN US
· A Mumbai headquarter BPO is set to become Indian employer in US.
· out of the 5000 Costarica have 500 hundred and rest are in US.
INDINBULLES FREEZES RETAIL EXPENSION PLANS
· the LN mittal backed Indiabulls groups has put its retail planes on the backburner focusing instead of its core business of financial services and real state.
· The 3$ billion Indiabull groups has stock broking non banking, non banking real state, real state and retail ventures.
· It has planes to open stores in Mumbai and delhi among other places.
ECONOMY
· September direct tax mop-up clients 26.12%
· Stands at 81647Rs crores fastest monthly growth this year.
· The growth came on account of the second installment paid by the government tax payer and first installment of advance income tax paid by non-corporate tax payer.
MONEY AND MARKET
SENSEX DORPS 0.9%
· Sensex fell 0.9 % on Tuesday in choppy trade as a 3.5 billion dollar IPO by coal INDIA.
· Coal India’s IPO the country’s largest ever drew strong investor interest was covered on the second day.
· Leading outsourcer TCS dropped 1.2% and 3.1% respectively while Wipro shed 0.8%.
FINANCE
· HDFC bank net profit up 33%
· HDFC bank reported a net profit of 912.1 crore for the quarter ended September, a 32.7% increase from 687.46 crores an year ago.
· Noninterest income decline 9% decline on year on year basis to Rs 96070 crore from 1053.54 crore.
VISA GETS RBI PERMISSION FOR FUND REMITTANCE
· The RBI permission makes VISA the only electronic card payment technology company in india to support over 40 banks including ICICI, cenera bank including HDFC bank, enabling their card holders the facility of receiving remittance on their VISA debits and prepaid cards.
COMODITIES
SPONGE IRON PRICES LIKELY TO RISE 10% IN NOVEMBER
· Increase is due to demand for long steel from infrastructure company.
· At present premium sponge iron costs Rs 18000 a tone.
· It rose sharply by Rs 1000 to 1200 a tone in the first week.
BRIEF NEWS:-
· New 2 G guidelines are expects to be submitting to the department of telecom.
· 75 thousand tourists came during common wealth games.
· Cannon eye $ 1 billion turn over in India.
· Opto circuits to buy US firm.
20th October - THE ECONOMIC TIMES
Nishant Kumar
Pankaj Yadav
Pawan Kumar Sharma
Section -E (Group - 4)
Headlines:-
UIDAI shortlist TCS, Wipro, HCL, IBM for It infrastructure contract.
Wipro’s Azim Premji to launch billion-$ endowment trust.
Traders in a mad scramble for coal India, SBI issues.
Real Possibility India will grow faster then China: JP Morgan
China surprise with first rate hike since 2007.
Chechen Parliament comes under attack.
IBM net income up 12% boosted by BRIC sales.
SBI grant highest ever loan 300cr for a dairy firm of Punjab.
Sensex sheds 186 points
News related to:-
InfoTech
UIDAI shortlist TCS, Wipro, HCL, IBM for It infrastructure contract.
The unique identity Authority of India has selected 9 ITS’s company- Accenture, IBM, TCS, Wipro, FCL, HP & others for selecting a managed service provide for the unique id project.
The selected provider has to make 600 million unique id no. by 2014.The firm will be responsible for managing the entire IT of the UIDAI project.
Wipro’s Azim Premji to launch billion-$ endowment trust.
Wipro founder Mr. Azim Premji will launch an endowment trust modeled on the line of world famous Harvard Management Company. The trust having billion-$ capital, will be operational in January next year and could be funded by small chunk of promoter equity in Wipro. The trust will largely focus on leading the education initiatives strongly favored by Mr Premji, according to people close to the development.
Investors
Traders in a mad scramble for coal India, SBI issues.
The mega initial public offering (IPO) is expected to raise 15,000 crore, Coal India 63.16-crore share offering was subscribed 1.71 times on the second day While SBI Rs-1,000-crore bond issue was subscribed 17 times.
In the grey market, Coal India share are trading at rs.280 apiece, or 14% higher then the top & of the Rs.225-245 ranges is set by the Govt.
International News
China surprises with rate hike since 2007
It raised its benchmark lending and deposit rate from 5.31% to 5.56%. Inflation may climb up to 3.63%.The GDP (Gross domestic product) grew 9.5% in the third quarter.
Chechen Parliament comes under attack.
In a suicide attack on chechenya’s parliament left 7 people dead & 17 wounded.
The attack could have been timed to coincide with a visit to Grozny on Tuesday of Russia’s interior Minister Rashid Nurgaliyev.
Market news
Sensex sheds 186 points
Sensex on Tuesday closed below the psychological 20,000 mark plunging 186 points in the last hour trade. The IPO offering of state-owned coal India ltd. And a slow down in the foreign fund inflows contributed to the sensex’s fall.
- HDFC Bank net rises 32.7 pc on credit demand.
- Bajaj Auto profit up 69 pc, gains market share.
- Mutual funds may shun IPOs.
Sports News
- India’s 2nd ODI today with Australia at Visakhapatnam.
- Kiwi media hits out after Bangladesh whitewash.
- India oil trounce BSF 5-1.
Pankaj Yadav
Pawan Kumar Sharma
Section -E (Group - 4)
Headlines:-
UIDAI shortlist TCS, Wipro, HCL, IBM for It infrastructure contract.
Wipro’s Azim Premji to launch billion-$ endowment trust.
Traders in a mad scramble for coal India, SBI issues.
Real Possibility India will grow faster then China: JP Morgan
China surprise with first rate hike since 2007.
Chechen Parliament comes under attack.
IBM net income up 12% boosted by BRIC sales.
SBI grant highest ever loan 300cr for a dairy firm of Punjab.
Sensex sheds 186 points
News related to:-
InfoTech
UIDAI shortlist TCS, Wipro, HCL, IBM for It infrastructure contract.
The unique identity Authority of India has selected 9 ITS’s company- Accenture, IBM, TCS, Wipro, FCL, HP & others for selecting a managed service provide for the unique id project.
The selected provider has to make 600 million unique id no. by 2014.The firm will be responsible for managing the entire IT of the UIDAI project.
Wipro’s Azim Premji to launch billion-$ endowment trust.
Wipro founder Mr. Azim Premji will launch an endowment trust modeled on the line of world famous Harvard Management Company. The trust having billion-$ capital, will be operational in January next year and could be funded by small chunk of promoter equity in Wipro. The trust will largely focus on leading the education initiatives strongly favored by Mr Premji, according to people close to the development.
Investors
Traders in a mad scramble for coal India, SBI issues.
The mega initial public offering (IPO) is expected to raise 15,000 crore, Coal India 63.16-crore share offering was subscribed 1.71 times on the second day While SBI Rs-1,000-crore bond issue was subscribed 17 times.
In the grey market, Coal India share are trading at rs.280 apiece, or 14% higher then the top & of the Rs.225-245 ranges is set by the Govt.
International News
China surprises with rate hike since 2007
It raised its benchmark lending and deposit rate from 5.31% to 5.56%. Inflation may climb up to 3.63%.The GDP (Gross domestic product) grew 9.5% in the third quarter.
Chechen Parliament comes under attack.
In a suicide attack on chechenya’s parliament left 7 people dead & 17 wounded.
The attack could have been timed to coincide with a visit to Grozny on Tuesday of Russia’s interior Minister Rashid Nurgaliyev.
Market news
Sensex sheds 186 points
Sensex on Tuesday closed below the psychological 20,000 mark plunging 186 points in the last hour trade. The IPO offering of state-owned coal India ltd. And a slow down in the foreign fund inflows contributed to the sensex’s fall.
- HDFC Bank net rises 32.7 pc on credit demand.
- Bajaj Auto profit up 69 pc, gains market share.
- Mutual funds may shun IPOs.
Sports News
- India’s 2nd ODI today with Australia at Visakhapatnam.
- Kiwi media hits out after Bangladesh whitewash.
- India oil trounce BSF 5-1.
Tuesday, October 19, 2010
19th October - THE FINANCIAL EXPRESS
Mitali Rajput
Mohit Kumar
Monika Jhamb
Group - 13 (Section - I)
SOLAR MISSION HITS FINANCE WALL
India’s solar power mission which envisages investments of about Rs 3 lakh crore by 2022, a key component of the national action plan on climate change, has been put in serious jeopardy by bankers loath to lend to solar projects.
Public sector banks and financial institutions says that they have no way to assess the commercial viability of these projects and would tread warily.
Bankers want to know who will compensate for the short fall if these plants fail to achieve minimum load factor.
the government is meeting bankers and solar power developers on Tuesday to discuss ways to finance solar projects.
A Oriental Bank of Commerce official said, If the government gives subsidy in the form of higher tariffs,then these projects could become a little easier to finance.
2) CWG GRAPH REPORT IN 3 MONTHS; OC TENURE EXTENDED
The government extended the tenure of the officials in the CWG organising committee (OC) to helping the investigations of the controversial Commonwealth Games and related projects within three months.
3) RISE IN OPERATING MARGIN HELPS L&T LOG HIGHER NET
Larsen & Toubro (L&T) on Monday posted a profit after tax of Rs 765 crore for the second quarter ended September 30,2010, an increase of 18% compared to Rs 580.4 crore in the corresponding period of the previous year.
a cumulative growth of L&T was 29% during the first half of the current year. The order book as on September 30, 2010, was1,15,393 crore.
4)COAL INDIA’S IPO SUBSCRIBED 34%; BIG FIIS YET TO APPLY
Rs15,000-crore initial public offering(IPO)of Coal India (CIL) got off to a reasonably good start with more than a third of the issue being subscribed to on the opening day by the foreign institutional investors.
In coal India, another institutionals like QIB quota subscribed 63%, HNI18%and retail investors 10%
5)SBI GETS APPLICATIONS WORTH RS 5,000 CRORE FOR RETAIL BONDS
State bank of India received applications worth Rs5,000 crore in response to its retail bond issue through which it had planned to collect only Rs1,000 crore.
SBI had approved raising tierII capital by way of a public issue of lower tier-II bonds for an amount of Rs 500 crore with an option to retain 100% over subscription.
The bonds have been rated AAA by Crisil and have a face value of Rs10,000 and do not carry tax-break like infrastructure bonds offered by IDFC, L&T Infra and IFCI,which offered lower coupon rate.
6)DEMAND -SUPPLY GAP TO KEEP ONION PRICE ON HIGHER SIDE
Steady demand because of ongoing festive seasons and less than adequate arrivals have led to wholesale onion price stabilised at Rs 1,600-1,700 per quint at present against Rs700 prevailed
just two months back.
7)TIGHT CONTROL OVER IPHONE SOFTWARE MAY HURT APPLE
Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year,Android will have erased the iPhone’s once
enormous lead in the high end of the smart phone market.
Mohit Kumar
Monika Jhamb
Group - 13 (Section - I)
SOLAR MISSION HITS FINANCE WALL
India’s solar power mission which envisages investments of about Rs 3 lakh crore by 2022, a key component of the national action plan on climate change, has been put in serious jeopardy by bankers loath to lend to solar projects.
Public sector banks and financial institutions says that they have no way to assess the commercial viability of these projects and would tread warily.
Bankers want to know who will compensate for the short fall if these plants fail to achieve minimum load factor.
the government is meeting bankers and solar power developers on Tuesday to discuss ways to finance solar projects.
A Oriental Bank of Commerce official said, If the government gives subsidy in the form of higher tariffs,then these projects could become a little easier to finance.
2) CWG GRAPH REPORT IN 3 MONTHS; OC TENURE EXTENDED
The government extended the tenure of the officials in the CWG organising committee (OC) to helping the investigations of the controversial Commonwealth Games and related projects within three months.
3) RISE IN OPERATING MARGIN HELPS L&T LOG HIGHER NET
Larsen & Toubro (L&T) on Monday posted a profit after tax of Rs 765 crore for the second quarter ended September 30,2010, an increase of 18% compared to Rs 580.4 crore in the corresponding period of the previous year.
a cumulative growth of L&T was 29% during the first half of the current year. The order book as on September 30, 2010, was1,15,393 crore.
4)COAL INDIA’S IPO SUBSCRIBED 34%; BIG FIIS YET TO APPLY
Rs15,000-crore initial public offering(IPO)of Coal India (CIL) got off to a reasonably good start with more than a third of the issue being subscribed to on the opening day by the foreign institutional investors.
In coal India, another institutionals like QIB quota subscribed 63%, HNI18%and retail investors 10%
5)SBI GETS APPLICATIONS WORTH RS 5,000 CRORE FOR RETAIL BONDS
State bank of India received applications worth Rs5,000 crore in response to its retail bond issue through which it had planned to collect only Rs1,000 crore.
SBI had approved raising tierII capital by way of a public issue of lower tier-II bonds for an amount of Rs 500 crore with an option to retain 100% over subscription.
The bonds have been rated AAA by Crisil and have a face value of Rs10,000 and do not carry tax-break like infrastructure bonds offered by IDFC, L&T Infra and IFCI,which offered lower coupon rate.
6)DEMAND -SUPPLY GAP TO KEEP ONION PRICE ON HIGHER SIDE
Steady demand because of ongoing festive seasons and less than adequate arrivals have led to wholesale onion price stabilised at Rs 1,600-1,700 per quint at present against Rs700 prevailed
just two months back.
7)TIGHT CONTROL OVER IPHONE SOFTWARE MAY HURT APPLE
Americans now are buying more Android phones than iPhones. If that trend continues, analysts say that in little more than a year,Android will have erased the iPhone’s once
enormous lead in the high end of the smart phone market.
19th October - BUSINESS STANDARD
Nidhi Mishra
Namrata Medhi
Neeraj Kumar Singh
Section - G
DEUTSCHE POSTBANK ARM FOR SALE
1) The Indian piece, known as deutsche postbank home finance ltd (DPHF) has been identified as a non – crore assets is therefore being sold
2) Tata, L&T finance, India bulls & religare have evinced interest in the asset
3) At 0.77% the company clame to have reported one of the lowest gross non performing asset in the industry last fiscal
4) DPHF’s net worth is estimated at rs 500 crore
COAL INDIA’S IPO SUBSCRIBED 34%
1) The much awaited initial public offer (IPO) of coal india limited open for subscription today and was subscribed 34 % on the first day
2) The portion reserved for institutional investors has been subscribed 63% with bids received
For 178.06 million shares , of which FIIs accounted for 155.54 million shares in domestic institutions , excluding mutual funds put in bids for 22.45 million shares .
3) Mean while , the retail segment has been subscribed 10%,while that reserved for high net worth individuals has been subscribed 18%
L&T NET PROFIT RISES BY 32% AT RS 765 CRORE
1) Engineering major Larsen and turbo today posted a 32% growth in net profit at 765 crore for the second quarter compare to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18% to Rs 9260 crore from Rs 7866 in the same quarter last year. The company operating margins for the quarter stood at 10.8% as compared to 10.6 %
2) After excluding the reversal of provision made for Satyam, that accounts to Rs. 71 Crore, the net profit of the company grew by 22 % on a year –on –year basis.
3) L&T which has filed a draft red herring prospectus for its financial services business with the regulator, said it plans to go an IPO before the end of its calendar year
DTH FIRMS SMARTLY PROJECT LOW PRICE
1) Dish TV launched its Diwali offer STB at Rs 990 (Rs. 200 for installation) and recharge voucher worth Rs 990 free.
2) The company introduced 4 new packages on Monday ,with a movie –on –demand pack ,a recharge voucher priced at Rs 360 each, an a-la-carte voucher at Rs. 225 and an upgrade voucher Rs 45
3) Subscribers are forced to pay for content that they don’t watch or often do not understand.
BJP DEMANDS JOINT PARLIAMENTARY PROBE INTO CWG MESS
1) BJP has demanded a joint parliamentary committee to look into the alleged corruption charges in organizing the event
2) Party president Mr. Nitin gadkari had asked senior leaders for a plan on how the corruption issue could be raised in the parliament.
3) The BJP would not accept any action by the government because all the three agencies –the delhi government ,organizing committee and union government – where equally guilty of corruption
BP TO NET $1.8 BILLION FROM ASSET SALES
1) BP PLC agreed to sell assets in Venezuela & Vietnam to Russian oil venture TNK-BP for $1.8 billion as it raises money to help pay for the gulf of Mexico oil spill.
2) Bp, which own the TNK venture 50-50 with a group of Russian billionaires, will book the cash in full, London, based spokesman Mark Salt said.
3) BP has sold this year two more than $11 billion. It sold $7 billion of fields in the U.S, Canada & Egypt to Apache Corp.
CITI $ 2.2 BILLIONS Q3 PROFIT FUELS SECTOR CONFIDENCE
1) Citigroup Inc. reported its third straight quarterly profit, beating forecast & boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion
2) The gain in Citigroup shares helped fuel a broader rally in bank shares & lift U.S stock indexes.
3) Citigroup the third largest U.S bank by assets, also said it is looking at the home loans it bundled into bonds & sold to investors to make sure the paper work is in order.
HDFC NET UP 22%
1) Housing development finance corporation(HDFC), India’s biggest non-bank mortgage lender, has posted a net profit of Rs. 807.54 Crore in the quarter ended September, a 22% rise over Rs. 663.94 Crore in the corresponding period last year
2) The annual growth in the loan book, inclusive of loan sold, was 24%.
3) Net interest margin-the difference between the yield on loans & the cost of fund-was about 4.3% against 4% in the previous quarter.
4) For the second quarter, HDFC’s total assets stood at Rs. 126356 Crore, against Rs. 104545 Crore last year, thus registering 21% growth.
OBAMA VISIT TO HERALD A NEW RELATIONSHIP: SUMMERS
1) Just before U.S president Barack Obama’s maiden state visit to India, his top economic advisor, Lawrence H Summers, today said that the visit would be the “longest” & a different kind of a trip.
2) The Indian-U.S relationship would be more significant than befor in the coming century
3) The dates of Obama’s trip have not been announced yet, he is expected to be in India from November 5-9. Making his longest overseas stay in a country as a president of U.S.A.
4) Accompanied by the first lady, Michelle Obama, this would be her first visit to India.
Namrata Medhi
Neeraj Kumar Singh
Section - G
DEUTSCHE POSTBANK ARM FOR SALE
1) The Indian piece, known as deutsche postbank home finance ltd (DPHF) has been identified as a non – crore assets is therefore being sold
2) Tata, L&T finance, India bulls & religare have evinced interest in the asset
3) At 0.77% the company clame to have reported one of the lowest gross non performing asset in the industry last fiscal
4) DPHF’s net worth is estimated at rs 500 crore
COAL INDIA’S IPO SUBSCRIBED 34%
1) The much awaited initial public offer (IPO) of coal india limited open for subscription today and was subscribed 34 % on the first day
2) The portion reserved for institutional investors has been subscribed 63% with bids received
For 178.06 million shares , of which FIIs accounted for 155.54 million shares in domestic institutions , excluding mutual funds put in bids for 22.45 million shares .
3) Mean while , the retail segment has been subscribed 10%,while that reserved for high net worth individuals has been subscribed 18%
L&T NET PROFIT RISES BY 32% AT RS 765 CRORE
1) Engineering major Larsen and turbo today posted a 32% growth in net profit at 765 crore for the second quarter compare to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18% to Rs 9260 crore from Rs 7866 in the same quarter last year. The company operating margins for the quarter stood at 10.8% as compared to 10.6 %
2) After excluding the reversal of provision made for Satyam, that accounts to Rs. 71 Crore, the net profit of the company grew by 22 % on a year –on –year basis.
3) L&T which has filed a draft red herring prospectus for its financial services business with the regulator, said it plans to go an IPO before the end of its calendar year
DTH FIRMS SMARTLY PROJECT LOW PRICE
1) Dish TV launched its Diwali offer STB at Rs 990 (Rs. 200 for installation) and recharge voucher worth Rs 990 free.
2) The company introduced 4 new packages on Monday ,with a movie –on –demand pack ,a recharge voucher priced at Rs 360 each, an a-la-carte voucher at Rs. 225 and an upgrade voucher Rs 45
3) Subscribers are forced to pay for content that they don’t watch or often do not understand.
BJP DEMANDS JOINT PARLIAMENTARY PROBE INTO CWG MESS
1) BJP has demanded a joint parliamentary committee to look into the alleged corruption charges in organizing the event
2) Party president Mr. Nitin gadkari had asked senior leaders for a plan on how the corruption issue could be raised in the parliament.
3) The BJP would not accept any action by the government because all the three agencies –the delhi government ,organizing committee and union government – where equally guilty of corruption
BP TO NET $1.8 BILLION FROM ASSET SALES
1) BP PLC agreed to sell assets in Venezuela & Vietnam to Russian oil venture TNK-BP for $1.8 billion as it raises money to help pay for the gulf of Mexico oil spill.
2) Bp, which own the TNK venture 50-50 with a group of Russian billionaires, will book the cash in full, London, based spokesman Mark Salt said.
3) BP has sold this year two more than $11 billion. It sold $7 billion of fields in the U.S, Canada & Egypt to Apache Corp.
CITI $ 2.2 BILLIONS Q3 PROFIT FUELS SECTOR CONFIDENCE
1) Citigroup Inc. reported its third straight quarterly profit, beating forecast & boosting optimism that the banking sector is on track to recover even amid a tepid economic expansion
2) The gain in Citigroup shares helped fuel a broader rally in bank shares & lift U.S stock indexes.
3) Citigroup the third largest U.S bank by assets, also said it is looking at the home loans it bundled into bonds & sold to investors to make sure the paper work is in order.
HDFC NET UP 22%
1) Housing development finance corporation(HDFC), India’s biggest non-bank mortgage lender, has posted a net profit of Rs. 807.54 Crore in the quarter ended September, a 22% rise over Rs. 663.94 Crore in the corresponding period last year
2) The annual growth in the loan book, inclusive of loan sold, was 24%.
3) Net interest margin-the difference between the yield on loans & the cost of fund-was about 4.3% against 4% in the previous quarter.
4) For the second quarter, HDFC’s total assets stood at Rs. 126356 Crore, against Rs. 104545 Crore last year, thus registering 21% growth.
OBAMA VISIT TO HERALD A NEW RELATIONSHIP: SUMMERS
1) Just before U.S president Barack Obama’s maiden state visit to India, his top economic advisor, Lawrence H Summers, today said that the visit would be the “longest” & a different kind of a trip.
2) The Indian-U.S relationship would be more significant than befor in the coming century
3) The dates of Obama’s trip have not been announced yet, he is expected to be in India from November 5-9. Making his longest overseas stay in a country as a president of U.S.A.
4) Accompanied by the first lady, Michelle Obama, this would be her first visit to India.
19th October - BUSINESS STANDARD
Ashish Dutt
Arundeep Kaur
Section G
Group 4
Coal India's $3.5 bn IPO fully covered
On Second Day of the offer, Coal India's (CIL) initial public offer (IPO), expected to raise as much as $3.5 billion, was fully covered Today[19-Oct-2010]. The offering, the largest in India's corporate history, had received bids for over 637 million shares by 1000 GMT, according to exchange data, with foreign institutional investors putting in huge bids.
Coal India is selling more than 631.6 million shares in its IPO.
L&T net profit rises by 32% at Rs 765 crore(18% Growth)
Engineering major - Larsen and Toubro today posted a 32 per cent growth in net profit at Rs 765 crore for the second quarter, compared to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18 per cent to Rs 9,260 crore from Rs 7,866 crore in the same quarter last year. The company’s operating margins for the quarter stood at 10.8 per cent as compared to 10.6 per cent.
Bajaj Auto Sept qtr net jumps 69% to Rs 682 cr
Bajaj Auto today reported 69.32 per cent jump in its net profit for the quarter ending September 30 at Rs 682.08 crore – its highest ever quarterly motorcycle sales. The total income of the company during the second quarter of this fiscal stood at Rs 4,341.82 crore compared to Rs 2,887.51 crore in the year-ago period, up 50.37 per cent.
Gold regains 20k level on seasonal demand
Gold prices surged by Rs 135 to Rs 20,085 per ten grams in the national capital today on emergence of frantic buying by stockists and jewellers to meet ongoing festival and marriage season demand.
Gold is just Rs 35 short of the Rs 20,120 per ten grams record last seen on October 15.
Silver spurted by Rs 575 to its record high of Rs 37,000 per kg on hectic buying by industrial units and coin makers for the auspicious festival of 'Diwali.'
Biocon in $200-m pact with Pfizer
Biocon(Producer of insulin product: recombinant human insulin, glargine, aspart and lispro) has struck a $200-million deal with Pfizer, which will see the US pharmaceutical multinational sell the Bangalore-headquartered biotechnology company’s insulin products globally. Under the present deal, Biocon will clinically develop, manufacture and supply these biosimilars and assume responsibility for obtaining necessary approvals in various geographies. Pfizer will market these products in the designated geographies.
RIL's 4 trans-country gas lines well behind schedule
Reliance Industries Ltd’s (RIL) four gas pipelines are likely to be delayed. Envisaged with an investment of Rs 20,000 crore, these were scheduled to be completed by 2012.
The ministry of petroleum and natural gas had, in 2007, issued authorisation to Reliance Gas Transportation Infrastructure Ltd, an RIL group company, for four trunk pipelines :
1. Kakinada-Haldia (1,100 km)
2. Kakinada-Chennai (445 km)
3. Chennai-Bangalore-Mangalore (600 km)
4. Chennai-Tuticorin (670 km).
Infiniti Retail eyes Rs 1,700 cr turnover in FY11
Tata Sons subsidiary Infiniti Retail today said it is targeting an over 65 per cent growth in turnover to touch Rs 1,700 crore in the current fiscal, as it plans to enter new geographies and expand reach. The company that operates 56 'Croma' branded stores, sell a range of consumer electronics, appliances and IT products will invest about Rs 40 crore by March next year to have a total of 75 stores. It also plans to launch its own branded computers and notepads.
Infiniti Retail CEO and Managing Director: Ajit Joshi stated that; Croma is targeting a turnover of Rs 1,700 crore in the current fiscal, up from Rs 1,021 crore last year. The company will also invest up to Rs 40 crore on store expansion, also that label 'Croma' contributes between 6-8 per cent to the total sales, which he hopes will go up to ten per cent by March-end.
US lawsuit could delay VW takeover of Porsche
The head of VW, Martin Winterkorn said that; “US lawsuits brought by pension funds might delay but not prevent Volkswagen's takeover of the luxury German sportscar maker Porsche”
Porsche took on heavy debt as it tried to buy the much bigger VW but then had to be saved in turn by Europe's biggest automaker, which now owns 49.9 per cent of Porsche. VW expects to complete the takeover and make Porsche the VW group's 10th brand.
Arundeep Kaur
Section G
Group 4
Coal India's $3.5 bn IPO fully covered
On Second Day of the offer, Coal India's (CIL) initial public offer (IPO), expected to raise as much as $3.5 billion, was fully covered Today[19-Oct-2010]. The offering, the largest in India's corporate history, had received bids for over 637 million shares by 1000 GMT, according to exchange data, with foreign institutional investors putting in huge bids.
Coal India is selling more than 631.6 million shares in its IPO.
L&T net profit rises by 32% at Rs 765 crore(18% Growth)
Engineering major - Larsen and Toubro today posted a 32 per cent growth in net profit at Rs 765 crore for the second quarter, compared to Rs 580 crore in the corresponding quarter last year. Its net sales grew 18 per cent to Rs 9,260 crore from Rs 7,866 crore in the same quarter last year. The company’s operating margins for the quarter stood at 10.8 per cent as compared to 10.6 per cent.
Bajaj Auto Sept qtr net jumps 69% to Rs 682 cr
Bajaj Auto today reported 69.32 per cent jump in its net profit for the quarter ending September 30 at Rs 682.08 crore – its highest ever quarterly motorcycle sales. The total income of the company during the second quarter of this fiscal stood at Rs 4,341.82 crore compared to Rs 2,887.51 crore in the year-ago period, up 50.37 per cent.
Gold regains 20k level on seasonal demand
Gold prices surged by Rs 135 to Rs 20,085 per ten grams in the national capital today on emergence of frantic buying by stockists and jewellers to meet ongoing festival and marriage season demand.
Gold is just Rs 35 short of the Rs 20,120 per ten grams record last seen on October 15.
Silver spurted by Rs 575 to its record high of Rs 37,000 per kg on hectic buying by industrial units and coin makers for the auspicious festival of 'Diwali.'
Biocon in $200-m pact with Pfizer
Biocon(Producer of insulin product: recombinant human insulin, glargine, aspart and lispro) has struck a $200-million deal with Pfizer, which will see the US pharmaceutical multinational sell the Bangalore-headquartered biotechnology company’s insulin products globally. Under the present deal, Biocon will clinically develop, manufacture and supply these biosimilars and assume responsibility for obtaining necessary approvals in various geographies. Pfizer will market these products in the designated geographies.
RIL's 4 trans-country gas lines well behind schedule
Reliance Industries Ltd’s (RIL) four gas pipelines are likely to be delayed. Envisaged with an investment of Rs 20,000 crore, these were scheduled to be completed by 2012.
The ministry of petroleum and natural gas had, in 2007, issued authorisation to Reliance Gas Transportation Infrastructure Ltd, an RIL group company, for four trunk pipelines :
1. Kakinada-Haldia (1,100 km)
2. Kakinada-Chennai (445 km)
3. Chennai-Bangalore-Mangalore (600 km)
4. Chennai-Tuticorin (670 km).
Infiniti Retail eyes Rs 1,700 cr turnover in FY11
Tata Sons subsidiary Infiniti Retail today said it is targeting an over 65 per cent growth in turnover to touch Rs 1,700 crore in the current fiscal, as it plans to enter new geographies and expand reach. The company that operates 56 'Croma' branded stores, sell a range of consumer electronics, appliances and IT products will invest about Rs 40 crore by March next year to have a total of 75 stores. It also plans to launch its own branded computers and notepads.
Infiniti Retail CEO and Managing Director: Ajit Joshi stated that; Croma is targeting a turnover of Rs 1,700 crore in the current fiscal, up from Rs 1,021 crore last year. The company will also invest up to Rs 40 crore on store expansion, also that label 'Croma' contributes between 6-8 per cent to the total sales, which he hopes will go up to ten per cent by March-end.
US lawsuit could delay VW takeover of Porsche
The head of VW, Martin Winterkorn said that; “US lawsuits brought by pension funds might delay but not prevent Volkswagen's takeover of the luxury German sportscar maker Porsche”
Porsche took on heavy debt as it tried to buy the much bigger VW but then had to be saved in turn by Europe's biggest automaker, which now owns 49.9 per cent of Porsche. VW expects to complete the takeover and make Porsche the VW group's 10th brand.
19th October - ECONOMIC TIMES
Medha
Mansha Singh
Section - E
ECONOMY:
Hydrocarbon,infra sector defers Rs 40K cr worth projects in Q2
MUMBAI: Diversified group, Larsen & Toubro (L&T), today said that the Indian industry, mainly hydrocarbon and infrastructure , have deferred Rs 40,000 crore worth projects in Q2 FY 11.
Large contracts sometimes get deferred as the decision-making process is long. Lots of orders have been pushed towards Q4 FY 11, he said. However, there will be no major impact on L&T's performance as these orders are not cancelled and there are enough indications of orders fructifying in the remaining two quarters of current fiscal, Deosthalee said.The company said new orders rose 11 per cent in the quarter ended September from a year ago and said it expected to maintain its growth momentum in the medium-term. L&T's order back-log stood at Rs 1.15 trillion as of end-September. An eighty per cent of postponement of orders are in the domestic and 20 per cent in the international market, he said.
FINANCE:
Microfinance, macro problems?
Is it possible to make money while helping people out of poverty? In the last five years or so, one business, microfinance, seemed to suggest that the answer was yes. Look at the numbers: from merely $12 million in 2003, the market for lending tiny amounts of money mainly to groups of women has grown to more than $7 billion now. And analysts expect this to grow to a staggering $50 billion soon.It’s easy to understand why. Many people in rural India don’t have access to loans from formal banks. In any case, procedures are cumbersome, paperwork intimidating. That explains why people go to moneylenders, who charge them upwards of 50% for loans. Microfinance, based on a model borrowed from Bangladesh, was supposed to change all that.Micro-credit institutions would make small loans to groups of women at rates lower than what moneylenders charge. These would go into productive investments and defaults would be kept low because the entire community, or a group of women borrowers, would keep an eye on each other to make sure that the funds were used properly and repayments were on time.Today, it’s reckoned that women’s selfhelp groups (SHGs) reach about 50 million people. Another 20 million are covered by microfinance institutions (MFIs). That leaves about 100 million people who still rely on moneylenders or relatives for loans. That’s a huge untapped market, which explains why analysts are falling over each other to talk up microfinance.A few months ago, India’s largest micro-credit company, SKS Microfinance, had a hugely successful listing. But now, the whole micro-credit story seems to be fraying at the edges. And that’s even if you discount the churn at the top in SKS. What’s worrying many people is whether it’s possible to keep poor borrowers happy while growing profits fast enough to keep shareholders smiling as well.
MARKET:
Refining profits in cooking oil and sugar
All petroleum refineries make money by buying crude oil low and selling the final products for as much as possible. The really smart ones do the actual refining so cheaply that they always make money, no matter at what price they buy crude and sell the oil. Efficient refining lets oil companies survive in the cut-throat global market. So, why are Indian cooking oil and sugar companies now queuing up to take notes? ET helps you join the dots.For cooking oil companies, refining margin lies at the heart of the business model. There is a cost to turning crude palm oil (CPO) into refined palm oil that we can consume. Malaysia and Indonesia, the world’s two biggest palm oil producers, export both CPO and refined oil. The price difference between the two is equal to the processing cost of their best refineries that exploit economies of scale and supply-chain management to perform this task most efficiently.
India is already the world’s largest palm oil consumer and imports will continue apace. So, refiners have assured demand. Moreover, oils extracted from homegrown mustard, soya and groundnut are always more expensive than palm oil. So, local competition is zero.
POLITICS/NATION
Tax sleuths conduct search operations on CWG contractors
NEW DELHI: Officials of the Income Tax Department on Tuesday started search and investigative operations in at least 25 premises of companies and individuals who won lucrative contracts for the just-concluded Commonwealth Games. Among those whose premises were visited by the tax sleuths was senior leader of the opposition Bharatiya Janata Party (BJP) Sudhanshu Mittal, whose close relatives had won some Games contracts, a senior official of the department said.
The development follows a host of measures announced by the government since the 12-day Games drew to a close Oct 14 to look into allegations of misappropriation of funds and questionable procedures followed for award of contracts for various projects.
Pakistan rejects report about Bin Laden's presence on its soil
KABUL: Pakistan has rejected the report that the world's most wanted terrorists and Al-Qaeda's top leaders Osama bin Laden and his deputy Ayman al-Zawahiri have been living comfortably in the country's northwest region. "I categorically deny the report about the presence of Osama bin Laden or Ayman Al Zawahiri or even Mullah Omar in Pakistan," the Dawn quoted Interior Minister Rehman Malik, as saying to reporters. "Bin Laden... and all other terrorists are anti-Islam and anti-Pakistan and hired assassins. If we have any information we will take action against them," he added.
INDUSTRY
Vodafone leads race for Gujarat CUG deal
· AHMEDABAD: The country’s largest cellular service provider Bharti Airtel and telecom giant Vodafone Essar are in the final race for the prestigious bid to connect 3.75-lakh Gujarat government employees in the country’s largest closed user group (CUG) network. However, state government sources say, Vodafone is leading the tally with overall 91 points, followed by Airtel’s 79.5 points, Tata’s 55 points, BSNL’s 50 points and Idea’s 40 points. On Monday, the Gujarat administration department (GAD) opened financial bids that carries 40% weightage, a week after it opened the technical bids. The latest bid saw Airtel going for a kill by proposing the lowest tariff, over 40% discount to the base rates, beating Vodafone and Tata that offered 35% discount, Idea 30%, and BSNL 20%.
· SENSEX20290.48 121.59
· NIFTY6082.50 6.55
· INR-USD44.29 -0.87
· GOLD (Rs/10g.)19948.00 58.00
Stock exchange showed data that state run coal india's IPO which was expected to raise as much as $3.5 billion,was fully covered on tuesday i.e.the second day of the offer.BJP President Nitin Gadkari has asked for CBI investigation regarding giving the approval of the 'inflated budget'of various games projects by the PMO and Union Cabinet(these budgets were not verified).State owned Bharat Petroleum Corporation Ltd(BPCL) on tuesday said it has made a second natural gas discovery in a block off Mozambique but did not give the scale of reserves the finds may hold.Gold prices surged by rupees 135 to rupees 20,085 per ten grams in delhi today on emergence of frantic buying by stockists.SBI's public bond issue was subscribed 17.3 times and the country's biggest lender intends to close the issue on wednesday.Nifty ended at 6011.10,down 64.85 points or 1.07%.Bombay stock exchange's Sensex closed at 19929.08,down 239.81 points or 1.19%.Sun tv founder Kalanithi Maran and his unlisted aviation firm,Kal Airways Pvt.Ltd.,acquired an additional 9.22 million shares,or 2.28% in low cost carrier Spice Jet.Rajasthan Royals has alleged that BCCI was yet to pay them rupees 40 crore due from IPL 2 and 3.Technology giant Apple Inc has reported a 70% jump in net profit to $4.3 billion in the fourth quarter of the year,driven by robust sales of iPhones,iPads and Mac computers.According to the US Border Patrol figures,the number of Indian nationals entering illegally via Mexico has shot up from 204 in 2009 to 975 in 2010,a 475% increase.Now we can play Kaun Banega Crorepati online.
Mansha Singh
Section - E
ECONOMY:
Hydrocarbon,infra sector defers Rs 40K cr worth projects in Q2
MUMBAI: Diversified group, Larsen & Toubro (L&T), today said that the Indian industry, mainly hydrocarbon and infrastructure , have deferred Rs 40,000 crore worth projects in Q2 FY 11.
Large contracts sometimes get deferred as the decision-making process is long. Lots of orders have been pushed towards Q4 FY 11, he said. However, there will be no major impact on L&T's performance as these orders are not cancelled and there are enough indications of orders fructifying in the remaining two quarters of current fiscal, Deosthalee said.The company said new orders rose 11 per cent in the quarter ended September from a year ago and said it expected to maintain its growth momentum in the medium-term. L&T's order back-log stood at Rs 1.15 trillion as of end-September. An eighty per cent of postponement of orders are in the domestic and 20 per cent in the international market, he said.
FINANCE:
Microfinance, macro problems?
Is it possible to make money while helping people out of poverty? In the last five years or so, one business, microfinance, seemed to suggest that the answer was yes. Look at the numbers: from merely $12 million in 2003, the market for lending tiny amounts of money mainly to groups of women has grown to more than $7 billion now. And analysts expect this to grow to a staggering $50 billion soon.It’s easy to understand why. Many people in rural India don’t have access to loans from formal banks. In any case, procedures are cumbersome, paperwork intimidating. That explains why people go to moneylenders, who charge them upwards of 50% for loans. Microfinance, based on a model borrowed from Bangladesh, was supposed to change all that.Micro-credit institutions would make small loans to groups of women at rates lower than what moneylenders charge. These would go into productive investments and defaults would be kept low because the entire community, or a group of women borrowers, would keep an eye on each other to make sure that the funds were used properly and repayments were on time.Today, it’s reckoned that women’s selfhelp groups (SHGs) reach about 50 million people. Another 20 million are covered by microfinance institutions (MFIs). That leaves about 100 million people who still rely on moneylenders or relatives for loans. That’s a huge untapped market, which explains why analysts are falling over each other to talk up microfinance.A few months ago, India’s largest micro-credit company, SKS Microfinance, had a hugely successful listing. But now, the whole micro-credit story seems to be fraying at the edges. And that’s even if you discount the churn at the top in SKS. What’s worrying many people is whether it’s possible to keep poor borrowers happy while growing profits fast enough to keep shareholders smiling as well.
MARKET:
Refining profits in cooking oil and sugar
All petroleum refineries make money by buying crude oil low and selling the final products for as much as possible. The really smart ones do the actual refining so cheaply that they always make money, no matter at what price they buy crude and sell the oil. Efficient refining lets oil companies survive in the cut-throat global market. So, why are Indian cooking oil and sugar companies now queuing up to take notes? ET helps you join the dots.For cooking oil companies, refining margin lies at the heart of the business model. There is a cost to turning crude palm oil (CPO) into refined palm oil that we can consume. Malaysia and Indonesia, the world’s two biggest palm oil producers, export both CPO and refined oil. The price difference between the two is equal to the processing cost of their best refineries that exploit economies of scale and supply-chain management to perform this task most efficiently.
India is already the world’s largest palm oil consumer and imports will continue apace. So, refiners have assured demand. Moreover, oils extracted from homegrown mustard, soya and groundnut are always more expensive than palm oil. So, local competition is zero.
POLITICS/NATION
Tax sleuths conduct search operations on CWG contractors
NEW DELHI: Officials of the Income Tax Department on Tuesday started search and investigative operations in at least 25 premises of companies and individuals who won lucrative contracts for the just-concluded Commonwealth Games. Among those whose premises were visited by the tax sleuths was senior leader of the opposition Bharatiya Janata Party (BJP) Sudhanshu Mittal, whose close relatives had won some Games contracts, a senior official of the department said.
The development follows a host of measures announced by the government since the 12-day Games drew to a close Oct 14 to look into allegations of misappropriation of funds and questionable procedures followed for award of contracts for various projects.
Pakistan rejects report about Bin Laden's presence on its soil
KABUL: Pakistan has rejected the report that the world's most wanted terrorists and Al-Qaeda's top leaders Osama bin Laden and his deputy Ayman al-Zawahiri have been living comfortably in the country's northwest region. "I categorically deny the report about the presence of Osama bin Laden or Ayman Al Zawahiri or even Mullah Omar in Pakistan," the Dawn quoted Interior Minister Rehman Malik, as saying to reporters. "Bin Laden... and all other terrorists are anti-Islam and anti-Pakistan and hired assassins. If we have any information we will take action against them," he added.
INDUSTRY
Vodafone leads race for Gujarat CUG deal
· AHMEDABAD: The country’s largest cellular service provider Bharti Airtel and telecom giant Vodafone Essar are in the final race for the prestigious bid to connect 3.75-lakh Gujarat government employees in the country’s largest closed user group (CUG) network. However, state government sources say, Vodafone is leading the tally with overall 91 points, followed by Airtel’s 79.5 points, Tata’s 55 points, BSNL’s 50 points and Idea’s 40 points. On Monday, the Gujarat administration department (GAD) opened financial bids that carries 40% weightage, a week after it opened the technical bids. The latest bid saw Airtel going for a kill by proposing the lowest tariff, over 40% discount to the base rates, beating Vodafone and Tata that offered 35% discount, Idea 30%, and BSNL 20%.
· SENSEX20290.48 121.59
· NIFTY6082.50 6.55
· INR-USD44.29 -0.87
· GOLD (Rs/10g.)19948.00 58.00
Stock exchange showed data that state run coal india's IPO which was expected to raise as much as $3.5 billion,was fully covered on tuesday i.e.the second day of the offer.BJP President Nitin Gadkari has asked for CBI investigation regarding giving the approval of the 'inflated budget'of various games projects by the PMO and Union Cabinet(these budgets were not verified).State owned Bharat Petroleum Corporation Ltd(BPCL) on tuesday said it has made a second natural gas discovery in a block off Mozambique but did not give the scale of reserves the finds may hold.Gold prices surged by rupees 135 to rupees 20,085 per ten grams in delhi today on emergence of frantic buying by stockists.SBI's public bond issue was subscribed 17.3 times and the country's biggest lender intends to close the issue on wednesday.Nifty ended at 6011.10,down 64.85 points or 1.07%.Bombay stock exchange's Sensex closed at 19929.08,down 239.81 points or 1.19%.Sun tv founder Kalanithi Maran and his unlisted aviation firm,Kal Airways Pvt.Ltd.,acquired an additional 9.22 million shares,or 2.28% in low cost carrier Spice Jet.Rajasthan Royals has alleged that BCCI was yet to pay them rupees 40 crore due from IPL 2 and 3.Technology giant Apple Inc has reported a 70% jump in net profit to $4.3 billion in the fourth quarter of the year,driven by robust sales of iPhones,iPads and Mac computers.According to the US Border Patrol figures,the number of Indian nationals entering illegally via Mexico has shot up from 204 in 2009 to 975 in 2010,a 475% increase.Now we can play Kaun Banega Crorepati online.
19th October - BUSINESS LINE
Mohit Sharma
Menguphrezo
Mohd. Aamir
Group - 13 (Section - F)
1)Panel majority for scrapping eco nod to Posco's Orissa project -
Three members were of a govt. Panel proposed to review green clearence to its steel project in orissa and have recommened that “final forest and envirnment clearences be rewoked forthwith”. South korien steel maker proposes to set up a 12million ton per year intigrative steel plant and a captive port in orissa with an estimated investment of Rs.54,000 cr.
In a joint report of three members felt the MoEF shouldn't have granted environmental clearence on the basis of rapid EIA report. In a seperate report Ms. Gupta stressed the need for more comprehensive impact assessment but was against rewoking existing clearences immidiately.Now both the reports by the commity felt that provision under the forest rights act are posco's plant relooked by the orissa govt.
Biocon, Pfizer in $350-million insulin marketing deal -
Biocon ltd signed a mega marketing deal with the world's largest drug maker Pfizer yesterday to globally commercialized four of its insulin bio similar products in it. The deal would sweep a global market worth $14million. Pfizer will upfront pay $2million for the exclusive world rights.Biocon can also get an additional $150 million as development and regulatery mileston payments.
IT/BPO, auto sectors lead hiring urge in april-june :-
By strong empyoment trends in IT/BPO and the automobile sector overall employment across 8 manufacturing sector perked up an incremental 1.62 lac during the quarter.The latest survey report a maximum increase of 1.29 lac in employment in IT/BPO sector 0.51 lac in automobile sector and 0.45 lac in metal industry.
4)Coal india public issue subscribed 34% :-
Rs.15,000 cr. Initial public offering of coal india was subscribed 0.34 times on monday the 1st day of issue and it is a fairly good response. Of the 63.1 cr shares on offer the issue recieves bits for 21.3 cr. Shares according to N.S.E. Anaylist says that most of the bids will be coming on the last day and the response is encouraging although the coal issue was subscribed only 0.34 times and didn't do an NHPC or RELIANCE POWER on the 1st day.The coal india issue will close on oct.20 and retail portion will close on the next day.
5)Apex court stays sterlites tamilnadu plant closure till mid dec.:-
The apex court issues noticed to the centre the tamilnadu govt. And the state pollution control board regarding copper smelter at Tuticorin in southern tamilnadu directing them to reply them with in 2 weeks.The apex court was hearing a petition file wise sterlite the countries largest copper producer, against a sep.28th order of madras high court to immideaitely shut the smelter for violating pollution control and environmental regulation Serlite complains that the it had compiled with the green norms and opposes charges on contamination.Now the next hearing will be on mid dec.
6)Airbus military's arm in pact with mahindra for IAF contract:-
Airbus military subsidiary in poland,PZL, has entred into a initial MoU with mahindra and some other indian companies to meet the offset obligation of an indian air force contract the tender is for 75 aircraft with the first 12 being assembled in the facility of the counrty that wins the contarct while rest will be assembled in india.
Adani starts an australia operation:-
Mr. Gautam adani executive chairman and founder of Adani group announced that they are going to invest $6.9billion on mine,rail,ports projects in queensland australia.The investment in australia represent the largest investment in australia by any indian co. And important bench mark investment in low rank thermal coal assets.Additinally the Adani group would explore opportunities for down stream value additions including UCG and CTL technologies “within the framework of govt. Policy”.
Ambuja cements shuts Himachal units:-
Ambuja cements has stopped production at its Himachal pradesh unit
due to the transport strike the co. Informed the BSE that there was a transport strike by a transport union at its Sule and Rauri plants in himachal pradesh since oct.7.The co. Shares were down 1.3% at Rs.137 on monday.
9) MMTC pays dividend of Rs. 44.7 cr. :-
The public sector metal and mineral trading major MMTC have presented a dividend cheque of Rs.44.7 cr. Towards 90% dividend for the financial year 2009-10.
MMTC has achieved the highest ever profit after tax of rs. 216 cr. With turnover of Rs.45124 cr during the financial year 2009-10.
10) KITCO registers 25% growth in turnover:-
KITCO ltd. co. Has registerd 25% growth in its turnover for the financial year 2010 as the figures had crossed Rs. 20 cr. From that of previous year the co. Through the involvement in developing several infrastructure in the state of kerela was awarded with the preparation of retail project report and project management consultancies for the vytilla mobility hub in kochi. The co. Has also been awarded with the construction of 5 ROB's by the roads and bridges cooperation of kerela
19th October - BUSINESS LINE
Lalit Mohan Singh Rawat
Kitboklang Siyem
Kumar Shivanand
(Section - F)
Biocon, Pfizer in $350-million insulin marketing deal.
Bangalore- based biocon Ltd. Signed a mega marketing deal with the world largest drug-maker Pfizer on Monday to globally commercialise four of its insulin biosimilar product initially.
In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights. Mr Rakesh Bamzai, President (Marketing), Biocon, called the deal a world game changer in which these products would be challenging brands that have dominated the insulin world for years. Products would be introduced with some discounts. Biocon will remain responsible for the clinical development, manufacture and supply of these biosimilar insulin products, as well as for regulatory activities to secure approval for these products in various geographies.
Panel majority for scrapping eco nod to Posco's Orissa project.
The four-member panel appointed by the Ministry of Environment and Forest (MoEF) has submitted its report to the Environment Ministry on Posco's proposed steel Project. There has been no final decision on the project yet. The panel has submitted two separate reports where three members are suggesting cancellation of the existing environment laws. Headed by former environment secretary Meena Gupta, the central team probing alleged irregularities in the implementation of environment laws and forest rights acts in the Rs 51,000 corer project was initially scheduled to submit its report on October 12.
3. Apex court stays Sterlite's TN plant closure till mid-Dec.
The Supreme Court on Monday extended till the second week of December its earlier stay on closure of the company's copper smelter at Tuticorin in southern Tamil Nadu. The apex court also issued notices to the Centre, the Tamil Nadu Government and the State Pollution Control Board (PCB) directing them to file replies within two weeks.
IT/BPO, auto sectors lead hiring surge in April-June
Led by strong employment trends in the information technology and business process outsourcing (IT/BPO) and the automobile sectors, overall employment across eight manufacturing sectors perked up by an incremental 1.62 lakh during the quarter.
On comparing the cumulative results of the last four quarterly surveys period — June 2010 over June 2009 — the overall employment has increased by 13.58 lakh for the 12-month period, with highest increase seen in the IT/BPO segment at 8.54 lakh jobs, followed by 1.52 lakh in textiles, 1.37 lakh in metals, 1.10 lakh in automobiles and 0.93 lakh in gems and jewellery during the period
5. Coal India public issue subscribed 34%
HDFC Ltd posted a net profit of Rs 808 corer for the quarter ended September 30, 2010, up 22 per cent from Rs 664 corer in the corresponding quarter last year. The increase in profits was on account of strong loan growth and higher interest income. As on September 30, the outstanding loan book was Rs 1,06,287 corer, against Rs 89,519 corer in the same period last year, a growth of 19 percent.
Loan approvals grew by 29 per cent and disbursements rose 27 per cent. In individual loans, approvals grew by 49 per cent and disbursements by 42 per cent. Retail loan growth has been strong net interest income grew to Rs 1,189 corer (Rs 947 corer), an increase of 26 per cent.
Bharat Forge eyes coal mines overseas
Pune-based Bharat Forge is currently evaluating a few coal mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use, reports suggest. The company, already a maker of power equipment, hopes to enter the power generation business shortly, reports suggest.
Bharat Forge plans to set up around 10,000 megawatt (MW) of power generation capacity over the next 10 years. The company expects nearly 40% of its sales to come from the non-automotive business by the year ending March 2012 (FY 2012), reports added.
The company's net profit rose 6090.6% to Rs. 59.43 corer on 73.1% rise in sales to Rs.608.50 corer.
7. L&T profit surges 32% in Q2 on strong order book.
Larsen & Toubro has recorded a 32 per cent increase in net profit for the second quarter of this fiscal.
In infrastructure projects, there were structural delays such as finalisation of tendering documents, internal issues in companies assigning contracts, environmental issues and high commodity prices. Except for cement, prices of all commodities such as copper, aluminium and steel have gone up substantially forcing companies to delay their projects.
Revenue from the electrical and electronics segment was down five per cent to Rs 672 corer (Rs 708 corer) due to stiff competition in the domestic sector coupled with a slowdown in international markets. Margins in the segment fell by two percentage points. On the Vedanta project in Orissa, L&T has already finished 60 per cent of the Rs 550-corer order and has to recover Rs 20 corer from the company
Reliance Ind eyes Kerala-Konkan basin.
Reliance Industries may participate in the ninth round of the New Exploration Licensing Policy auctions, hinted Mr Mukesh Ambani, Chairman and Managing Director.
The Kerala-Konkan basin off the western coast, which is also included in the NELP-IX blocks, has sparked interest in RIL. Mr Ravi Bastia, Senior Vice-President, said in his presentation that the basin looks promising and needs more exploration to fully analyse its potential.
SBI Retail Bonds — Interest rate remains a major attraction.
Unlike infrastructure bonds from designated institutions such as IDFC and L&T Finance, the bonds issued by SBI will not be eligible for tax benefits. Therefore, it will be appropriate to compare the bonds with fixed deposits for investment purposes.
There is no tax deduction at source (TDS) on SBI bonds irrespective of the interest amount. This is because these bonds are offered in dematerialised form and listed on the stock exchange. The bonds allow investors to capitalise on future interest rate increases, if the bank does not exercise its call option, by offering a 0.5 per cent increase in interest rates at the end of fifth and tenth years.
The major attraction of the bonds is the interest rate offered on a fairly safe investment. Compared to the annual interest rate of 7.75 per cent prevailing on 8-10 year fixed deposits with SBI, the bond offers 9.25 per cent for a five-year term.
NIIT Techonologies posts 35.6% rise in Q2 profit
. Due to increasing demand for tech. after the global downturn
. Will help in salary hike
. consolidated revenue rise 43.5 per cent during the quarter
. operating margins were depressed (18.3 per cent versus 20.3 per cent)
Hewlett-Packard launches ePrint-enabled printers
. Hewlett-Packard's launched first ePrint-enabled and Web-connected printers” for business use
. “With an email address assigned to the printer, ePrint will work from any mobile device, including smartphones, laptops, and even the iPad
Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years
. leading diamond and jewellery export companies
. Mr Jatin R. Mehta, Chairman and Managing Director
. for long-term growth of value-added gem and jewellery industry
. The company intends to multiply its space in Kochi for future programme by 2-3 times at an investment close to Rs 40 corer.
. turnover of Rs 3,000 corer last year, which is expected to touch Rs 3,900 corer in the current fiscal.
. It had achieved a turnover of Rs 1,000 corer from domestic sales last year and the figure is expected to touch Rs 1,800 corer this year
HDFC Q2 profit rises 22% on higher interest income
. The increase in profits was on account of strong loan growth and higher interest income
. sold loans worth Rs 4,858 corer.
. Loan approvals grew by 29 per cent and disbursements rose 27 per cent.
. at September 30, deposits stood at Rs 26,881 corer, against Rs 20,530 corer in the corresponding date last year, registering a growth of 31 per cent.
Bharat Forge eyes coal mines overseas
Bharat Forge Ltd, a Kalyani Group company with diverse business interests, is now aiming to get into coal mining and, subsequently, the power generation business.
Industry sources said the Pune-based company is currently evaluating a few such mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use.
. The company official added that Bharat Forge plans to set up around 10,000 MW of power generation capacity over the next 10 years.
Bharat Forge, whose core business is manufacturing engine, transmission and chassis components for automotive use, has about 11 plants globally. It is also makes parts for marine, aerospace, construction equipment and railway applications.
The company expects nearly 40 per cent of its sales to come from the non-automotive business by 2011-12.
Bharat Forge has said that it is setting up a TG manufacturing capacity for about 5,000 MW a year, translating to potential annual revenues of about Rs 6,000-7,000 corer. This capacity will also include turbine generators required for nuclear power plants.
Airbus Military's arm in pact with Mahindra for IAF contract
Airbus Military's subsidiary in Poland, PZL, has entered into an initial memorandum of understanding with Mahindra and some other Indian companies to meet the offset obligations of an Indian Air Force contract.
The tender for 75 aircraft with the first 12 being assembled in the facility of the country that wins the contract while the rest will be assembled in India.
PZL manufacturers said the Orlik aircraft is expected at Jamnagar at the end of the month to participate in the IAF competition.
Airbus Military, a sister concern of Airbus, is also “assessing and evaluating” options in India, senior company officials said.
Ms Barbara Kracht, Vice-President, Media Relations, told that India is a potential market for Airbus Military, which is a young organisation based on long experience of design and manufacture of military transport aircraft.
Biocon, Pfizer in $350-million insulin marketing deal
. In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights
. Both companies sell their products in India, Malaysia and Germany separately.
Bharti eyes land in S. America, Africa to produce pulses, oil for India
. Bharti Enterprises, has expressed interest in taking over land in Africa and South America to engage in agro- and food-processing.
. Airtel, recently acquired Kuwait-based Zain's Africa assets for $10.7 billion and is now operating in 15 African countries.
Kitboklang Siyem
Kumar Shivanand
(Section - F)
Biocon, Pfizer in $350-million insulin marketing deal.
Bangalore- based biocon Ltd. Signed a mega marketing deal with the world largest drug-maker Pfizer on Monday to globally commercialise four of its insulin biosimilar product initially.
In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights. Mr Rakesh Bamzai, President (Marketing), Biocon, called the deal a world game changer in which these products would be challenging brands that have dominated the insulin world for years. Products would be introduced with some discounts. Biocon will remain responsible for the clinical development, manufacture and supply of these biosimilar insulin products, as well as for regulatory activities to secure approval for these products in various geographies.
Panel majority for scrapping eco nod to Posco's Orissa project.
The four-member panel appointed by the Ministry of Environment and Forest (MoEF) has submitted its report to the Environment Ministry on Posco's proposed steel Project. There has been no final decision on the project yet. The panel has submitted two separate reports where three members are suggesting cancellation of the existing environment laws. Headed by former environment secretary Meena Gupta, the central team probing alleged irregularities in the implementation of environment laws and forest rights acts in the Rs 51,000 corer project was initially scheduled to submit its report on October 12.
3. Apex court stays Sterlite's TN plant closure till mid-Dec.
The Supreme Court on Monday extended till the second week of December its earlier stay on closure of the company's copper smelter at Tuticorin in southern Tamil Nadu. The apex court also issued notices to the Centre, the Tamil Nadu Government and the State Pollution Control Board (PCB) directing them to file replies within two weeks.
IT/BPO, auto sectors lead hiring surge in April-June
Led by strong employment trends in the information technology and business process outsourcing (IT/BPO) and the automobile sectors, overall employment across eight manufacturing sectors perked up by an incremental 1.62 lakh during the quarter.
On comparing the cumulative results of the last four quarterly surveys period — June 2010 over June 2009 — the overall employment has increased by 13.58 lakh for the 12-month period, with highest increase seen in the IT/BPO segment at 8.54 lakh jobs, followed by 1.52 lakh in textiles, 1.37 lakh in metals, 1.10 lakh in automobiles and 0.93 lakh in gems and jewellery during the period
5. Coal India public issue subscribed 34%
HDFC Ltd posted a net profit of Rs 808 corer for the quarter ended September 30, 2010, up 22 per cent from Rs 664 corer in the corresponding quarter last year. The increase in profits was on account of strong loan growth and higher interest income. As on September 30, the outstanding loan book was Rs 1,06,287 corer, against Rs 89,519 corer in the same period last year, a growth of 19 percent.
Loan approvals grew by 29 per cent and disbursements rose 27 per cent. In individual loans, approvals grew by 49 per cent and disbursements by 42 per cent. Retail loan growth has been strong net interest income grew to Rs 1,189 corer (Rs 947 corer), an increase of 26 per cent.
Bharat Forge eyes coal mines overseas
Pune-based Bharat Forge is currently evaluating a few coal mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use, reports suggest. The company, already a maker of power equipment, hopes to enter the power generation business shortly, reports suggest.
Bharat Forge plans to set up around 10,000 megawatt (MW) of power generation capacity over the next 10 years. The company expects nearly 40% of its sales to come from the non-automotive business by the year ending March 2012 (FY 2012), reports added.
The company's net profit rose 6090.6% to Rs. 59.43 corer on 73.1% rise in sales to Rs.608.50 corer.
7. L&T profit surges 32% in Q2 on strong order book.
Larsen & Toubro has recorded a 32 per cent increase in net profit for the second quarter of this fiscal.
In infrastructure projects, there were structural delays such as finalisation of tendering documents, internal issues in companies assigning contracts, environmental issues and high commodity prices. Except for cement, prices of all commodities such as copper, aluminium and steel have gone up substantially forcing companies to delay their projects.
Revenue from the electrical and electronics segment was down five per cent to Rs 672 corer (Rs 708 corer) due to stiff competition in the domestic sector coupled with a slowdown in international markets. Margins in the segment fell by two percentage points. On the Vedanta project in Orissa, L&T has already finished 60 per cent of the Rs 550-corer order and has to recover Rs 20 corer from the company
Reliance Ind eyes Kerala-Konkan basin.
Reliance Industries may participate in the ninth round of the New Exploration Licensing Policy auctions, hinted Mr Mukesh Ambani, Chairman and Managing Director.
The Kerala-Konkan basin off the western coast, which is also included in the NELP-IX blocks, has sparked interest in RIL. Mr Ravi Bastia, Senior Vice-President, said in his presentation that the basin looks promising and needs more exploration to fully analyse its potential.
SBI Retail Bonds — Interest rate remains a major attraction.
Unlike infrastructure bonds from designated institutions such as IDFC and L&T Finance, the bonds issued by SBI will not be eligible for tax benefits. Therefore, it will be appropriate to compare the bonds with fixed deposits for investment purposes.
There is no tax deduction at source (TDS) on SBI bonds irrespective of the interest amount. This is because these bonds are offered in dematerialised form and listed on the stock exchange. The bonds allow investors to capitalise on future interest rate increases, if the bank does not exercise its call option, by offering a 0.5 per cent increase in interest rates at the end of fifth and tenth years.
The major attraction of the bonds is the interest rate offered on a fairly safe investment. Compared to the annual interest rate of 7.75 per cent prevailing on 8-10 year fixed deposits with SBI, the bond offers 9.25 per cent for a five-year term.
NIIT Techonologies posts 35.6% rise in Q2 profit
. Due to increasing demand for tech. after the global downturn
. Will help in salary hike
. consolidated revenue rise 43.5 per cent during the quarter
. operating margins were depressed (18.3 per cent versus 20.3 per cent)
Hewlett-Packard launches ePrint-enabled printers
. Hewlett-Packard's launched first ePrint-enabled and Web-connected printers” for business use
. “With an email address assigned to the printer, ePrint will work from any mobile device, including smartphones, laptops, and even the iPad
Su-Raj Group plans expansion, to invest Rs 200 cr in 3-5 years
. leading diamond and jewellery export companies
. Mr Jatin R. Mehta, Chairman and Managing Director
. for long-term growth of value-added gem and jewellery industry
. The company intends to multiply its space in Kochi for future programme by 2-3 times at an investment close to Rs 40 corer.
. turnover of Rs 3,000 corer last year, which is expected to touch Rs 3,900 corer in the current fiscal.
. It had achieved a turnover of Rs 1,000 corer from domestic sales last year and the figure is expected to touch Rs 1,800 corer this year
HDFC Q2 profit rises 22% on higher interest income
. The increase in profits was on account of strong loan growth and higher interest income
. sold loans worth Rs 4,858 corer.
. Loan approvals grew by 29 per cent and disbursements rose 27 per cent.
. at September 30, deposits stood at Rs 26,881 corer, against Rs 20,530 corer in the corresponding date last year, registering a growth of 31 per cent.
Bharat Forge eyes coal mines overseas
Bharat Forge Ltd, a Kalyani Group company with diverse business interests, is now aiming to get into coal mining and, subsequently, the power generation business.
Industry sources said the Pune-based company is currently evaluating a few such mines in Mozambique, Indonesia and South Africa, which may then be purchased and developed for captive use.
. The company official added that Bharat Forge plans to set up around 10,000 MW of power generation capacity over the next 10 years.
Bharat Forge, whose core business is manufacturing engine, transmission and chassis components for automotive use, has about 11 plants globally. It is also makes parts for marine, aerospace, construction equipment and railway applications.
The company expects nearly 40 per cent of its sales to come from the non-automotive business by 2011-12.
Bharat Forge has said that it is setting up a TG manufacturing capacity for about 5,000 MW a year, translating to potential annual revenues of about Rs 6,000-7,000 corer. This capacity will also include turbine generators required for nuclear power plants.
Airbus Military's arm in pact with Mahindra for IAF contract
Airbus Military's subsidiary in Poland, PZL, has entered into an initial memorandum of understanding with Mahindra and some other Indian companies to meet the offset obligations of an Indian Air Force contract.
The tender for 75 aircraft with the first 12 being assembled in the facility of the country that wins the contract while the rest will be assembled in India.
PZL manufacturers said the Orlik aircraft is expected at Jamnagar at the end of the month to participate in the IAF competition.
Airbus Military, a sister concern of Airbus, is also “assessing and evaluating” options in India, senior company officials said.
Ms Barbara Kracht, Vice-President, Media Relations, told that India is a potential market for Airbus Military, which is a young organisation based on long experience of design and manufacture of military transport aircraft.
Biocon, Pfizer in $350-million insulin marketing deal
. In a deal that would sweep a global market worth $14 billion at present, Pfizer will upfront pay $200 million (around Rs 900 corer) for the exclusive world rights
. Both companies sell their products in India, Malaysia and Germany separately.
Bharti eyes land in S. America, Africa to produce pulses, oil for India
. Bharti Enterprises, has expressed interest in taking over land in Africa and South America to engage in agro- and food-processing.
. Airtel, recently acquired Kuwait-based Zain's Africa assets for $10.7 billion and is now operating in 15 African countries.
Monday, October 18, 2010
18th October - BUSINESS STANDARD
MAMTA DHAND
MANIK SINGH
MANU PANWAR
SECTION G
MANIK SINGH
MANU PANWAR
SECTION G
LIFE INSURANCE MAY INVEST 4K CR COAL INDIA
IPO:
-India's largest ever,which opens on Monday.
Analysts say the issue may be subscribed 15 times ,given the high interest shown by FIIs.
Birla sun life to buy coal India shares in secondary market if it doesn't get enough from IPO.
RUSH AMONG THE STAFF TO OPEN DMAT ACCOUNTS:
Workers at south eastern Coalfeilds ltd in Chhattisgarh are scrambling
for a piece of the coal India IPO.
NO DEFENCE AGREEMENTS DURING OBAMA'S VISIT:
regarding the IAF'S first C-130 super Hercules of US made in Lockheed Martin in the US.
Defence minster A k Antony told that they are not going to may agreement on this note during the visit of Obama.
COMPANIES:
UPSTREAM OIL FIRMS GAIN FROM RETAIL PRICE RISES:
fuel price rise in june brings down subsidy burden by 45% .
while the OMCs purchase crude oil at internationally bench marked prices,the sale prices of products such as diesel,kerosene and LPG are not maintained in line with international prices. This causes a revenue loss for the companies.
REC TO ISSUE ZERO-COUPON, INFRA BONDS:
the company plans to issue 10year deep discount bonds, also known as
zero-coupon bonds,in the last quarter of 2010-11.The face value of
these will be 3,000-4000 crore.
COMPANIES FREE TO SOURCE EQUIPMENT FROM ANYWHERE:
Union power minster SUSHIL KUMAR SHINDEY, speaks on the
import of Chinese power equipment and other current issues.
POLITICS AND PUBLIC AFFAIRS
LANKA MULLS WITHDRAWAL OF VISA-ON-
ARRIVAL FOR INDIANS.
KALMADI HITS BACK AT SHEILA:OC WON'T BE
SCAPEGOAT NOW, LOOK AT YOUR OWN DEPTS.
BJP BY SIDE 'NITISH RETURNS PM'S BARB ON
CENTRAL FUNDS.
JAITLEY ,NITISH DARE PM FOR DEBATE ON
CENTRAL FUNDS.
HINDU TERROR TALK DONE TO APPEASE
MUSLIMS:RSS CHIEF.
INTERNATIONAL:
BoE TO INCREASED AID PLAN BY 100 BILLION.
NEWS CORP,CABLEVISION TO RESUME TALKS.
TRICHET CALLS FOR 'MORE AMBITIOUS' RULES FOR DEFICIT BREAKERS.
MARKETS:
MARKET RECOVER SHARPLY
renewed buying interest in select it stocks coupled with recovery in larsen & toubro have helped the markets cut losses.
the sensex is now down just 70 points at 20,054.
among the sensex 30 stocks, tcs has surged nearly 3% to rs 977. ntpc and infosys have advanced over 1% each to rs 206 and rs 3,111, respectively.
INFRSTRUCTURE BONDS SALES A DIFFCULT TASK.
DIGITAL CONSUMER:
GOING WIRELESS, THE WIFI WAY!!
FACEBOOK ADDS 3 NEW SECURITY FEATURES.
NOKIA APPLIES CAPACITIVE TOUCH IN SMART PHONES.
ISSUES AND INSIGHTS:
CLASH OF CURRENCIES:
it is politically simpler for the US to blame China's exchange rate policy for its ever-increasing unemployment.
THE TALE OF OUR CITIES:
a Mckinsey report on urbanization is awake up call for India.
The Mckinsey report predicts dire consequences if planned urbanization is allowed to drift.
BUSINESS EDUCATION:
BACK TO PRE-SLOW DOWN DAYS :IITs SEE SURGE IN PLACEMENTS:
IIT-B expects 200 companies on campus this year.
IIT-B graduates have job openings in japan,UK,taiwan,US and UAE.
The best offer yet at IIT-kgp higher than last years best of 22lakh.
Last year ,lack of jobs made student opt for higher studies.
12.5% RISE IN SALARY OFFERS FOR IMT STUDENTS.
THE STRATEGIST:
GARN(I)ERING VOLUMES:
the turning point came when loreal reposition garnier ultra doux gave way to the bubbly garnier frutics n garnier synergie to garnier skin naturals. The prices were set at a slight premium over mass brands such as HUL ,LAKME or SUNSILK.
WOODLAND'S ECO DRIVES:
while currently 60% of Woodland's 300+ stores are located in metro's
and 40% in small cities it wants to change this to 40% in metro's and 60%
in smaller cities in the next few years.
IPO:
-India's largest ever,which opens on Monday.
Analysts say the issue may be subscribed 15 times ,given the high interest shown by FIIs.
Birla sun life to buy coal India shares in secondary market if it doesn't get enough from IPO.
RUSH AMONG THE STAFF TO OPEN DMAT ACCOUNTS:
Workers at south eastern Coalfeilds ltd in Chhattisgarh are scrambling
for a piece of the coal India IPO.
NO DEFENCE AGREEMENTS DURING OBAMA'S VISIT:
regarding the IAF'S first C-130 super Hercules of US made in Lockheed Martin in the US.
Defence minster A k Antony told that they are not going to may agreement on this note during the visit of Obama.
COMPANIES:
UPSTREAM OIL FIRMS GAIN FROM RETAIL PRICE RISES:
fuel price rise in june brings down subsidy burden by 45% .
while the OMCs purchase crude oil at internationally bench marked prices,the sale prices of products such as diesel,kerosene and LPG are not maintained in line with international prices. This causes a revenue loss for the companies.
REC TO ISSUE ZERO-COUPON, INFRA BONDS:
the company plans to issue 10year deep discount bonds, also known as
zero-coupon bonds,in the last quarter of 2010-11.The face value of
these will be 3,000-4000 crore.
COMPANIES FREE TO SOURCE EQUIPMENT FROM ANYWHERE:
Union power minster SUSHIL KUMAR SHINDEY, speaks on the
import of Chinese power equipment and other current issues.
POLITICS AND PUBLIC AFFAIRS
LANKA MULLS WITHDRAWAL OF VISA-ON-
ARRIVAL FOR INDIANS.
KALMADI HITS BACK AT SHEILA:OC WON'T BE
SCAPEGOAT NOW, LOOK AT YOUR OWN DEPTS.
BJP BY SIDE 'NITISH RETURNS PM'S BARB ON
CENTRAL FUNDS.
JAITLEY ,NITISH DARE PM FOR DEBATE ON
CENTRAL FUNDS.
HINDU TERROR TALK DONE TO APPEASE
MUSLIMS:RSS CHIEF.
INTERNATIONAL:
BoE TO INCREASED AID PLAN BY 100 BILLION.
NEWS CORP,CABLEVISION TO RESUME TALKS.
TRICHET CALLS FOR 'MORE AMBITIOUS' RULES FOR DEFICIT BREAKERS.
MARKETS:
MARKET RECOVER SHARPLY
renewed buying interest in select it stocks coupled with recovery in larsen & toubro have helped the markets cut losses.
the sensex is now down just 70 points at 20,054.
among the sensex 30 stocks, tcs has surged nearly 3% to rs 977. ntpc and infosys have advanced over 1% each to rs 206 and rs 3,111, respectively.
INFRSTRUCTURE BONDS SALES A DIFFCULT TASK.
DIGITAL CONSUMER:
GOING WIRELESS, THE WIFI WAY!!
FACEBOOK ADDS 3 NEW SECURITY FEATURES.
NOKIA APPLIES CAPACITIVE TOUCH IN SMART PHONES.
ISSUES AND INSIGHTS:
CLASH OF CURRENCIES:
it is politically simpler for the US to blame China's exchange rate policy for its ever-increasing unemployment.
THE TALE OF OUR CITIES:
a Mckinsey report on urbanization is awake up call for India.
The Mckinsey report predicts dire consequences if planned urbanization is allowed to drift.
BUSINESS EDUCATION:
BACK TO PRE-SLOW DOWN DAYS :IITs SEE SURGE IN PLACEMENTS:
IIT-B expects 200 companies on campus this year.
IIT-B graduates have job openings in japan,UK,taiwan,US and UAE.
The best offer yet at IIT-kgp higher than last years best of 22lakh.
Last year ,lack of jobs made student opt for higher studies.
12.5% RISE IN SALARY OFFERS FOR IMT STUDENTS.
THE STRATEGIST:
GARN(I)ERING VOLUMES:
the turning point came when loreal reposition garnier ultra doux gave way to the bubbly garnier frutics n garnier synergie to garnier skin naturals. The prices were set at a slight premium over mass brands such as HUL ,LAKME or SUNSILK.
WOODLAND'S ECO DRIVES:
while currently 60% of Woodland's 300+ stores are located in metro's
and 40% in small cities it wants to change this to 40% in metro's and 60%
in smaller cities in the next few years.
18th October - BUSINESS STANDARD
Manveen Arneja
Md.Arshad khan
Mohita Agarwal
Md.Arshad khan
Mohita Agarwal
(Section - G)
LIFE INSURERS MAY INVEST RS 4K CRORE IN COAL INDIA IPO.
Life Insurance Companies are aiming to invest Rs 4000cr in Coal India ltd. Initial Public Offering(IPO)-India's largest ever IPO which will open today.These Insurance Companies look for a huge interest in this issue from a long term investment perspective.Of that estimated amount,it is believed that state owned LIC of India alone will pick up shares worth around Rs 3k Crore.The remaining 1k crore shares will be taken up by the private Insurance companies.
The Coal India IPO begins on 18th of October with an offering of 630 million shares with a face value of 10Rs each which amounts to Rs15,400 cr.The issue closes on 21st october.
UPSTREAM OIL FIRMS GAIN FROM RETAIL PRICE PRICES.
The subsidy burden on Oil & Natural Gas corporation(ONGC);Oil India limited(OIL) & GAIL Ltd. has been decreased by 45% in a single quarter which will enhance the financial performance of these Oil Companies.The decline in the subsidy burden of these companies will reflect positively on their bottom line.All these companies are expected to declare their quarterly results towards the end of october.Both ONGC & OIL had reported lower profits in the first quarter,due to higher subsidy burden.For ONGC the net profit of corresponding quarter for the previous was higher compared to the current year quarter.Thus increase in fuel price will act as an advantage for the upstream oil firms and will show its effect on the net profits in the second quarter.
15 MINUTES CALL AUCTION WINDOW FROM TODAY
Call auction sessions for Sensex & Nifty shares will last for 15 minutes from 9 am to 9:15am.According to Sebi circular issued the first eight minutes i.e. from 9am to 9:08am will be for order entry,modification & cancellation if any.The next four minutes i.e. 9:09am to 9:12am will include order matching & trade confirmation.The remaning three minutes will be to facilitate the transition from call auction to normal open session.
ONGC TO INVEST Rs8800 IN MUMBAI HIGH REDEVELOPMENT
ONGC will invest Rs8800 crore for redevelopment of the southern part of its Mumbai fields.They are planning to use a cost-effective technology to maintain output from the prime western offshore fields.The project will cost Rs8813.41 crore.In its production profile the field hit a peak of 400000 barrels per day before falling to current level of 210000,causing concerns.ONGC has initiated schemes and these schemes envisaged incremental gain of 18.31 million tonnes of oil and 2.70 billion cubic metres of gas through drilling of 75 new wells and intervention in existing wells.The work includes enhancement of Oil and Gas processing of capacity through installation of one process platform bridge connected to the existing ICP platform and installation of four new well head platform.
INDIA MOVES AT FULL THROTTLE.
· In recent weeks there have been concerns over the high level of foreign institutional inflows and their impact on the rupee.
· Foreign investment sensex incremented from 9,901.99 points in april 1,2009 to 20,069.12 points in September 30,2010.
· Overall increase in GDP growth from 6% in 2009-2010 to 8.8% in 2010-11.
NO DEFENCE AGREEMENT DURING OBAMA VISITS.
Next month i.e. November U.S. President Barack Obama will be visiting India and the officials who are looking after it are said to rule out the defence safeguard agreement that Washington has pressed for.A.K Antony during his visit to washington last month clearly stated that India would not sign the agreement which Washington calls the “foundation” for transferring high-tech communication equipments to India.Actually,this is a combined decision of Indian Military which A.K Antony has conveyed.According to Indian Airforce they don’t see any benefits out of it.
INFLATION AND APPRECIATION
There’s both good and bad news from the price front.The good news is that inflation seems to be stabilizing,with the september number only marginally higher than 8.5% in august.More importantly,manufacturing product inflation often described as crore inflation by economists,has continued its downward trend.From 6.4% percent in April,factory price inflation is down to 4.6% in september.A favourable base effect kicks in from november if food prices soften atad and manufacturing inflation sticks to the current path,inflation could end up around 5.5% by March 2011.
DOLLAR DECLINES FOR FIFTH WEEK.
· The dollar fell for the fifth week against the Euro.
· The US currency dropped this week to a 15 year low against the Yen and fell to parity with the Australian and Canadian dollars before next week’s fed report on regional economies.
8 OF TOP 10 FIRMS LOST Rs. 29K CR IN M-CAP LAST WEEK.
· The combined market capitalization(m-cap) of 8 of the coutry’s top 10 companies declined by Rs. 29,221.44 crore in the past week.
· State runned NTPC beared the highest loss with a wealth erosion of Rs. 8,946.33 crore.
· Reliance industries ruled the chart though t lost Rs. 2,405 crore from its m-cap.
INDIAN ADR’s ADD $1.76 BILLION IN A WEEK
Led by It major wipro ,Indian Stocks trading on American bourses added $1.76 billion to their market valuation last week.
Indian entities listed on the New York Stock Exchange and Nasdaq added dollar 1.76 billion to the market capitalization.
Tata motors & Pharma major Dr. Reddy laboratories surged by dollar 211 million & 174 million respectively.
Life Insurance Companies are aiming to invest Rs 4000cr in Coal India ltd. Initial Public Offering(IPO)-India's largest ever IPO which will open today.These Insurance Companies look for a huge interest in this issue from a long term investment perspective.Of that estimated amount,it is believed that state owned LIC of India alone will pick up shares worth around Rs 3k Crore.The remaining 1k crore shares will be taken up by the private Insurance companies.
The Coal India IPO begins on 18th of October with an offering of 630 million shares with a face value of 10Rs each which amounts to Rs15,400 cr.The issue closes on 21st october.
UPSTREAM OIL FIRMS GAIN FROM RETAIL PRICE PRICES.
The subsidy burden on Oil & Natural Gas corporation(ONGC);Oil India limited(OIL) & GAIL Ltd. has been decreased by 45% in a single quarter which will enhance the financial performance of these Oil Companies.The decline in the subsidy burden of these companies will reflect positively on their bottom line.All these companies are expected to declare their quarterly results towards the end of october.Both ONGC & OIL had reported lower profits in the first quarter,due to higher subsidy burden.For ONGC the net profit of corresponding quarter for the previous was higher compared to the current year quarter.Thus increase in fuel price will act as an advantage for the upstream oil firms and will show its effect on the net profits in the second quarter.
15 MINUTES CALL AUCTION WINDOW FROM TODAY
Call auction sessions for Sensex & Nifty shares will last for 15 minutes from 9 am to 9:15am.According to Sebi circular issued the first eight minutes i.e. from 9am to 9:08am will be for order entry,modification & cancellation if any.The next four minutes i.e. 9:09am to 9:12am will include order matching & trade confirmation.The remaning three minutes will be to facilitate the transition from call auction to normal open session.
ONGC TO INVEST Rs8800 IN MUMBAI HIGH REDEVELOPMENT
ONGC will invest Rs8800 crore for redevelopment of the southern part of its Mumbai fields.They are planning to use a cost-effective technology to maintain output from the prime western offshore fields.The project will cost Rs8813.41 crore.In its production profile the field hit a peak of 400000 barrels per day before falling to current level of 210000,causing concerns.ONGC has initiated schemes and these schemes envisaged incremental gain of 18.31 million tonnes of oil and 2.70 billion cubic metres of gas through drilling of 75 new wells and intervention in existing wells.The work includes enhancement of Oil and Gas processing of capacity through installation of one process platform bridge connected to the existing ICP platform and installation of four new well head platform.
INDIA MOVES AT FULL THROTTLE.
· In recent weeks there have been concerns over the high level of foreign institutional inflows and their impact on the rupee.
· Foreign investment sensex incremented from 9,901.99 points in april 1,2009 to 20,069.12 points in September 30,2010.
· Overall increase in GDP growth from 6% in 2009-2010 to 8.8% in 2010-11.
NO DEFENCE AGREEMENT DURING OBAMA VISITS.
Next month i.e. November U.S. President Barack Obama will be visiting India and the officials who are looking after it are said to rule out the defence safeguard agreement that Washington has pressed for.A.K Antony during his visit to washington last month clearly stated that India would not sign the agreement which Washington calls the “foundation” for transferring high-tech communication equipments to India.Actually,this is a combined decision of Indian Military which A.K Antony has conveyed.According to Indian Airforce they don’t see any benefits out of it.
INFLATION AND APPRECIATION
There’s both good and bad news from the price front.The good news is that inflation seems to be stabilizing,with the september number only marginally higher than 8.5% in august.More importantly,manufacturing product inflation often described as crore inflation by economists,has continued its downward trend.From 6.4% percent in April,factory price inflation is down to 4.6% in september.A favourable base effect kicks in from november if food prices soften atad and manufacturing inflation sticks to the current path,inflation could end up around 5.5% by March 2011.
DOLLAR DECLINES FOR FIFTH WEEK.
· The dollar fell for the fifth week against the Euro.
· The US currency dropped this week to a 15 year low against the Yen and fell to parity with the Australian and Canadian dollars before next week’s fed report on regional economies.
8 OF TOP 10 FIRMS LOST Rs. 29K CR IN M-CAP LAST WEEK.
· The combined market capitalization(m-cap) of 8 of the coutry’s top 10 companies declined by Rs. 29,221.44 crore in the past week.
· State runned NTPC beared the highest loss with a wealth erosion of Rs. 8,946.33 crore.
· Reliance industries ruled the chart though t lost Rs. 2,405 crore from its m-cap.
INDIAN ADR’s ADD $1.76 BILLION IN A WEEK
Led by It major wipro ,Indian Stocks trading on American bourses added $1.76 billion to their market valuation last week.
Indian entities listed on the New York Stock Exchange and Nasdaq added dollar 1.76 billion to the market capitalization.
Tata motors & Pharma major Dr. Reddy laboratories surged by dollar 211 million & 174 million respectively.
18th October - THE MINT
Arama Ipsita Swain
Atish Kumar Sahani
Azher Ali
Atish Kumar Sahani
Azher Ali
Section - H
2G Auction:
Multiple violation by DoT,says CAG:
§ Five new companies which got 2G licences were eligible to operate in telecom sector.
§ 77 out of 122 licences allocated in January 2008 are invalid.
§ Allocating spectrum in January 2008 at 2001 price not justifiable.
§ First-come-first served basis not transparent and did not have cabinet approval.
§ Firms had prior information on 2G policy which enabled them to arrange demand drafts in advance.
§ DoT has secured legal opinion that says CAG has no jurisdiction on policy as well as matters that come under CVC purview.
Banking sector:
RBI on rupee vigil as foreign funds line up dollars for Coal India IPO:
§ RBI may intervene to support the dollar and prevent a sharper rise in the rupee.
§ Rupee could rise to 43.20 per dollar in the first three trading days next week.
§ In 2010, foreign funds have invested $23.18 billion in Indian stocks.
§ The rupee may trade below 44 per dollar.
Climate change
Apec nations to boost agricultural output:
§ The 21 member countries of Apec also called for “responsible” agricultural investment as rising acquisition.
§ Phillip J. Glyde, deputy secretary, department of agriculture fisheries told a news conference that , “climate change will affect agricultural products a lot around the world in the foreseeable future.
§ He also said that, “Australia enjoyed a good harvest this year , but the real challenge will be in next 20,30 or 50 years when there will be less water.
Markets:
§ Post offices to sell insurance products along with IRDA.
§ Pre-open trade for 15 minutes to start from today in NSE and BSE.
§ According to CII survey the economy will grow by 8% in financial year 2011.
§ The government has projected GDP growth of 8.5-8.75 % this fiscal ,while RBI estimated it to be 8.5%.
§ Maruti Suzuki plans to introduce multipurpose vehicle model to increase its market share.
Corporate news:
Growing Stake - FII holding In BSE 500 Stocks highest in 5 years:
§ Stock Exchange 500 stocks to their highest level in five years
§ Analysts believe that India, which grew by 8.8% in the first quarter, is the third fastest growing economy in the world after Brazil and China.
§ Over two-thirds of the 33 Nifty firms saw their Foreign Institutional Investor (FII) holding go up in the September quarter by the average of 1% over the previous quarter
§ Foreign Investors have bought $23.1 billion of stock this year, upping their holding in BSE 500 firms to 14.52%.
Education:
IIMs should evolve like corporate entities:panel
§ The committee headed by R.C. Bhargaba ,submitted its report last week to HRD ministry proposing changes to how IIMs are managed and financed.
§ Government plans to bring in a law allowing foreign universities to set up branches and issue their own degrees in India.Private investment in management schools is growing rapidly.
Multiple violation by DoT,says CAG:
§ Five new companies which got 2G licences were eligible to operate in telecom sector.
§ 77 out of 122 licences allocated in January 2008 are invalid.
§ Allocating spectrum in January 2008 at 2001 price not justifiable.
§ First-come-first served basis not transparent and did not have cabinet approval.
§ Firms had prior information on 2G policy which enabled them to arrange demand drafts in advance.
§ DoT has secured legal opinion that says CAG has no jurisdiction on policy as well as matters that come under CVC purview.
Banking sector:
RBI on rupee vigil as foreign funds line up dollars for Coal India IPO:
§ RBI may intervene to support the dollar and prevent a sharper rise in the rupee.
§ Rupee could rise to 43.20 per dollar in the first three trading days next week.
§ In 2010, foreign funds have invested $23.18 billion in Indian stocks.
§ The rupee may trade below 44 per dollar.
Climate change
Apec nations to boost agricultural output:
§ The 21 member countries of Apec also called for “responsible” agricultural investment as rising acquisition.
§ Phillip J. Glyde, deputy secretary, department of agriculture fisheries told a news conference that , “climate change will affect agricultural products a lot around the world in the foreseeable future.
§ He also said that, “Australia enjoyed a good harvest this year , but the real challenge will be in next 20,30 or 50 years when there will be less water.
Markets:
§ Post offices to sell insurance products along with IRDA.
§ Pre-open trade for 15 minutes to start from today in NSE and BSE.
§ According to CII survey the economy will grow by 8% in financial year 2011.
§ The government has projected GDP growth of 8.5-8.75 % this fiscal ,while RBI estimated it to be 8.5%.
§ Maruti Suzuki plans to introduce multipurpose vehicle model to increase its market share.
Corporate news:
Growing Stake - FII holding In BSE 500 Stocks highest in 5 years:
§ Stock Exchange 500 stocks to their highest level in five years
§ Analysts believe that India, which grew by 8.8% in the first quarter, is the third fastest growing economy in the world after Brazil and China.
§ Over two-thirds of the 33 Nifty firms saw their Foreign Institutional Investor (FII) holding go up in the September quarter by the average of 1% over the previous quarter
§ Foreign Investors have bought $23.1 billion of stock this year, upping their holding in BSE 500 firms to 14.52%.
Education:
IIMs should evolve like corporate entities:panel
§ The committee headed by R.C. Bhargaba ,submitted its report last week to HRD ministry proposing changes to how IIMs are managed and financed.
§ Government plans to bring in a law allowing foreign universities to set up branches and issue their own degrees in India.Private investment in management schools is growing rapidly.
18th October - THE MINT
Manish Tanwa
Manoj Sharma
Maryrin Woleng
Group - 12 (Section - H)
AN INTERVIEW WITH PRANAB MUKHERJEE (FINANCE MINISTER)
In an interview, with Pranab Mukherjee, he spoke about his family's traditional Puja celebrations, and his hopes of bringing down inflation and breaking the double-digit economic growth barrier.
Ø Interviewer: Tell us something about the 115yearold tradition?
When this Puja was introduced about 115 years ago by my grandfather, he did not make it mandatory. “My grandfather did it, my father did it. After my father my elder brother did it.
My father was the only son of his parents. After the death of my elder brother in 1983, my father told me that “if you can do it, you try to do it“. It is not that he said that you will have to do it. It is not mandatory. So I thought that let me maintain the family tradition. That is the compulsion which brings me here every year.
Ø We are about a fortnight from Diwali, and as we move into the New Year, what are your aspirations, hopes and vision as finance minister?
As finance minister, my ambition is I must have some check on the prices right now, which is a matter of concern, particularly of the daily commodities. I must break the double-digit barrier, barrier to double-digit growth. So, my goal is to break the barrier of double- digit GDP (gross domestic product) growth, to contain prices, particularly of the food items and essential commodities, at a moderate level and to fulfil the tax reform exercises which we have begun.
Ø Do you think Indians have reacted with maturity to the Ayodhya verdict?
The initial reaction and response has shown the maturity. There are certain angles which will have to be looked into. But this judgment is not the final say in this matter because there is scope of making appeal to the higher court. So it is better to wait till the highest court gives its verdict.
Ø What are your hopes from people on both sides of the divide?
I think it will be better to accept the situation. If there can be an acceptable solution to both sides that is the best. But if it fails, then the court judgment has to be accepted.
ANOTHERGLOBELBREAKDOWN
All wars inflict collateral damage, so there is good reason for the rest of the world to watch the currency war between the US and China with trepidation. The two countries are gunning for eachother because an earlier economic arrangement between them shows signs of crumbling. China sold cheap goods to US consumers.The dollars the Chinese earned through exports wererecycled back into the US financial system. This money was eventually lent to indebted US consumers
China could keep growing its economy despite weak domestic demand.The interests of the US and China are no longer well aligned as far as currency policy goes. China wants to keep its export engine purring while the US has now developed a renewed interest in exports to drive growth.
Enter the currency war, with both the US and China trying to keep their respective currencies down. China continues to intervene in the foreign exchange market, buying dollars to prevent dollar decline. The US seems ready to print more money to debase its currency: a larger supply of anything usually reduces its price.
The US Federal Reserve is expected to decide in November for a second round of quantitative easing of at least $600 billion. China has increased its foreign exchange reserves by a re- cord $195 billion in the third quarter. A research firm Capital Economics, estimates that $108 billion of these additions came from outright foreign exchange purchases with the rest being accounted for by interest earned on existing holdings and foreign exchange fluctuations.
FINANCIAL INCLUSION FOR FIRMS: HASEEB A DRABU
If personal financial inclusion has to graduate from being a personal finance product to a self-sustaining process, it will have to be accompanied by financial inclusion for small- and medium- enterprises (SMEs).
And for that, it is not enough to stimulate regulated lending to or set up a distribution network for SMEs. SMEs will get access to effective finance only when SME lending is part of a larger financing system that comprises different types and tenors of lending, an SME-focused policymaker, an SME-focused bank, a credit guarantee mechanism, provisions for venture capital firms, and much else.
The new national financial architecture must reflect the capacity for and stage of development in India's financial markets, for instance, the mechanisms of providing loans, giving credit guarantees or infusing equity capital into SMEs.
The starting point has to be the recognition that almost half of the total manufacturing output in the economy is originating from a segment that is, first, spatially dispersed; second, operating on a small scale ; third, sectorally diverse with high credit risk; and, last, with no credit history..The listing agreement permits migration from an SME exchange to a main exchange (such as the Bombay Stock Exchange).
GROWING STAKE - FII HOLDING IN BSE 500 STOCKS HIGHEST IN 5 YEARS
Ø Stock Exchange 500 stocks to their highest level in five years
Ø Analysts believe that India, which grew by 8.8% in the first quarter, is the third fastest growing economy in the world after Brazil and China.
Ø Over two-thirds of the 33 Nifty firms saw their Foreign Institutional Investor (FII) holding go up in the September quarter by the average of 1% over the previous quarter
Ø Foreign Investors have bought $23.1 billion of stock this year, upping their holding in BSE 500 firms to 14.52%
MARUTIEYES-FAST GROWING MPV SEGMENT
Ø Maruti Suzuki India Ltd, plans to introduce a new multi- purpose vehicle(MPV) model to increase its market share in rapidly growing segment
Ø Maruti has increased from 42 models in 2002-03 to 104 models in 2009-10
Ø An expert said growth in the MPV segment looks good for the next 12 months
Ø Maruti may launch RIII, a compact multi-purpose vehicle, by the end of 2011
MUTIPLE VIOLETION BY DOT, SAYS CAG
Ø Five new companies which get 2G license were ineligible to operate in telecom sector
Ø 77 out of 122 license allocated in January 08 are in void
Ø Allocation spectrum in January 2008 at 2001 price not justifies
Ø First come first served basis not transport and did cabinet approach
Ø Firms had paid prior information on 2G policy which enable them to arrange demand draft in advance
IIM SHOULD EVOLVE LIKE CORPORATE ENTITIS
Ø Today IIM top business school in India and in future it improve his function and academic to comparison with foreign business school
Ø The foreign business school wants to open branches and universities and they have work with Indian partner USA alsothe Maruti Suzuki India chairman R C Bhargavsubmitted its report and say to HRD ministryand wants to change in managedand finance in IIM
Ø IIM should have corporate entities and according in India IIM also help in rural management agriculture and otherissues who is affecting the country
Ø The Bharagav committee who is include director of IIM Kolkata, Bangalore and Kozhikode have given the statement private investment management is growingand the ministry of HRD know attractingsign direction investment in education
In an interview, with Pranab Mukherjee, he spoke about his family's traditional Puja celebrations, and his hopes of bringing down inflation and breaking the double-digit economic growth barrier.
Ø Interviewer: Tell us something about the 115yearold tradition?
When this Puja was introduced about 115 years ago by my grandfather, he did not make it mandatory. “My grandfather did it, my father did it. After my father my elder brother did it.
My father was the only son of his parents. After the death of my elder brother in 1983, my father told me that “if you can do it, you try to do it“. It is not that he said that you will have to do it. It is not mandatory. So I thought that let me maintain the family tradition. That is the compulsion which brings me here every year.
Ø We are about a fortnight from Diwali, and as we move into the New Year, what are your aspirations, hopes and vision as finance minister?
As finance minister, my ambition is I must have some check on the prices right now, which is a matter of concern, particularly of the daily commodities. I must break the double-digit barrier, barrier to double-digit growth. So, my goal is to break the barrier of double- digit GDP (gross domestic product) growth, to contain prices, particularly of the food items and essential commodities, at a moderate level and to fulfil the tax reform exercises which we have begun.
Ø Do you think Indians have reacted with maturity to the Ayodhya verdict?
The initial reaction and response has shown the maturity. There are certain angles which will have to be looked into. But this judgment is not the final say in this matter because there is scope of making appeal to the higher court. So it is better to wait till the highest court gives its verdict.
Ø What are your hopes from people on both sides of the divide?
I think it will be better to accept the situation. If there can be an acceptable solution to both sides that is the best. But if it fails, then the court judgment has to be accepted.
ANOTHERGLOBELBREAKDOWN
All wars inflict collateral damage, so there is good reason for the rest of the world to watch the currency war between the US and China with trepidation. The two countries are gunning for eachother because an earlier economic arrangement between them shows signs of crumbling. China sold cheap goods to US consumers.The dollars the Chinese earned through exports wererecycled back into the US financial system. This money was eventually lent to indebted US consumers
China could keep growing its economy despite weak domestic demand.The interests of the US and China are no longer well aligned as far as currency policy goes. China wants to keep its export engine purring while the US has now developed a renewed interest in exports to drive growth.
Enter the currency war, with both the US and China trying to keep their respective currencies down. China continues to intervene in the foreign exchange market, buying dollars to prevent dollar decline. The US seems ready to print more money to debase its currency: a larger supply of anything usually reduces its price.
The US Federal Reserve is expected to decide in November for a second round of quantitative easing of at least $600 billion. China has increased its foreign exchange reserves by a re- cord $195 billion in the third quarter. A research firm Capital Economics, estimates that $108 billion of these additions came from outright foreign exchange purchases with the rest being accounted for by interest earned on existing holdings and foreign exchange fluctuations.
FINANCIAL INCLUSION FOR FIRMS: HASEEB A DRABU
If personal financial inclusion has to graduate from being a personal finance product to a self-sustaining process, it will have to be accompanied by financial inclusion for small- and medium- enterprises (SMEs).
And for that, it is not enough to stimulate regulated lending to or set up a distribution network for SMEs. SMEs will get access to effective finance only when SME lending is part of a larger financing system that comprises different types and tenors of lending, an SME-focused policymaker, an SME-focused bank, a credit guarantee mechanism, provisions for venture capital firms, and much else.
The new national financial architecture must reflect the capacity for and stage of development in India's financial markets, for instance, the mechanisms of providing loans, giving credit guarantees or infusing equity capital into SMEs.
The starting point has to be the recognition that almost half of the total manufacturing output in the economy is originating from a segment that is, first, spatially dispersed; second, operating on a small scale ; third, sectorally diverse with high credit risk; and, last, with no credit history..The listing agreement permits migration from an SME exchange to a main exchange (such as the Bombay Stock Exchange).
GROWING STAKE - FII HOLDING IN BSE 500 STOCKS HIGHEST IN 5 YEARS
Ø Stock Exchange 500 stocks to their highest level in five years
Ø Analysts believe that India, which grew by 8.8% in the first quarter, is the third fastest growing economy in the world after Brazil and China.
Ø Over two-thirds of the 33 Nifty firms saw their Foreign Institutional Investor (FII) holding go up in the September quarter by the average of 1% over the previous quarter
Ø Foreign Investors have bought $23.1 billion of stock this year, upping their holding in BSE 500 firms to 14.52%
MARUTIEYES-FAST GROWING MPV SEGMENT
Ø Maruti Suzuki India Ltd, plans to introduce a new multi- purpose vehicle(MPV) model to increase its market share in rapidly growing segment
Ø Maruti has increased from 42 models in 2002-03 to 104 models in 2009-10
Ø An expert said growth in the MPV segment looks good for the next 12 months
Ø Maruti may launch RIII, a compact multi-purpose vehicle, by the end of 2011
MUTIPLE VIOLETION BY DOT, SAYS CAG
Ø Five new companies which get 2G license were ineligible to operate in telecom sector
Ø 77 out of 122 license allocated in January 08 are in void
Ø Allocation spectrum in January 2008 at 2001 price not justifies
Ø First come first served basis not transport and did cabinet approach
Ø Firms had paid prior information on 2G policy which enable them to arrange demand draft in advance
IIM SHOULD EVOLVE LIKE CORPORATE ENTITIS
Ø Today IIM top business school in India and in future it improve his function and academic to comparison with foreign business school
Ø The foreign business school wants to open branches and universities and they have work with Indian partner USA alsothe Maruti Suzuki India chairman R C Bhargavsubmitted its report and say to HRD ministryand wants to change in managedand finance in IIM
Ø IIM should have corporate entities and according in India IIM also help in rural management agriculture and otherissues who is affecting the country
Ø The Bharagav committee who is include director of IIM Kolkata, Bangalore and Kozhikode have given the statement private investment management is growingand the ministry of HRD know attractingsign direction investment in education
18th October - FINANCIAL EXPRESS
Manish Dubey
Manmeet Kaur
Section- I
Manmeet Kaur
Section- I
STRICTER LAW TO LET CONSUMERS TAKE MANUFACTURERS TO COURT
National Consumer Production Court Authority to be set up
The government is creating a new law to amplify consumer rights. The idea is to empower consumers to sue manufacturers and service providers to dupe them by the conceiving information.
The new system is the brainchild of the consumer affairs, food and public distribution ministery. It will work on the US Federal Trade Commission(FTC).
The Consumer Protection (Ammendment) Bill will replace the Consumer Protection Act , 1956 which will help in faster disposal of the consumer cases.
There are 35 state consumer disputes redressal commissions and 610 district consumer forums in the country. There is 1 National Consumer Disputes redressal commission at the apex level. About 29000 cases were filed in these forums up to 2008.
PETROL DEREGULATION HELPS HALVE OMC's LOSSES IN Q2
Petrol price deregulation in June and a moderate fall in crude oil price since the beginning of the fiscal have helped fuel retailers to reduce their losses from selling products below cost in the second quarter of the fiscal by a nearly half,compared with the first quarter.
These under recovery losses of the firms IOC, HPCL and BPCL have fallen to about Rs. 11,000 crore in quarter ending September 2010, from the Rs.20,072 crore recorded in Q1.
The government on June 25, freed the pricing of petrol from its administrative control. It also hike the price of diesel Rs. 2 a liter, that of kerosene by Rs. 3/ litre and the price of LPG was upped Rs.3 per cylinder.
Petrol prices are deregulated now.
GOVT MULLS COMMON RATING SYSTEM ACROSS ALL PLATFORMS\
I & B(Information and Broadcasting) keen on tech-neutral measurement for mobile, DTH, IPTV & radio
Government is bringing a new common rating system for measuring the ratings across media platforms including mobiles, DTH, IPTV and radio and other future technologies.
The ministry is looking to put in place policy guidelines for the delivery of multimedia services through the wireless platform under the 3G mobile technology.
The I & B ministry will invite the stakeholders from the various industries including broadcasting, films, telecom, research agencies and others to work out an all-inclusive audience measurement solution.
Finally, in order to give a big push to the film industry I&B ministry converting Sri Fort Auditorium into a national film auditorium will look at ways and means to promote India as the soft power in the world through the films and broadcasting.
LALIT MODI LIKELY TO BE BOOKED BY ED(ENFORCEMENT DIRECTRATE) UNDER ANTI-MONEY LAUNDERING ACT
The FIR filed by BCCI secretary N Srinivasan against Modi under the Foreign Exchange Management Act(FEMA) for alleged misappropriation of funds to tune of Rs 470 crore.
The directorate had earlier also issued a blue notice against Modi for alleged “serious contraventions” of the foreign exchange law.
SENSEX IS 3 TIMES MORE VOLATILE IN FIRST 15 MINS
New call auction mechanism from today likely to tame volatility
According to Bloomberg data, around 9-9.15 am, the Sensex moves on an average by 0.17% every 15-20 seconds, as compared to 0.06% during the rest of the trading session.
From a hundred point gain, it is not uncommon to find Sensex sleeping into the red over the next few seconds. To do away with such fluctuations during the initial trading period, a call auction mechanism is being introduced on the NSE and BSE from October 18. this is expected to attract more institutional participation during the opening session and aid in better price discovery.
This price recovery system is already prevelant in major overseas stock exchange like Nasdaq, NYSE, LSE, Duetsche Bourse, Hong Kong and the Australian Stock Exchange.
National Consumer Production Court Authority to be set up
The government is creating a new law to amplify consumer rights. The idea is to empower consumers to sue manufacturers and service providers to dupe them by the conceiving information.
The new system is the brainchild of the consumer affairs, food and public distribution ministery. It will work on the US Federal Trade Commission(FTC).
The Consumer Protection (Ammendment) Bill will replace the Consumer Protection Act , 1956 which will help in faster disposal of the consumer cases.
There are 35 state consumer disputes redressal commissions and 610 district consumer forums in the country. There is 1 National Consumer Disputes redressal commission at the apex level. About 29000 cases were filed in these forums up to 2008.
PETROL DEREGULATION HELPS HALVE OMC's LOSSES IN Q2
Petrol price deregulation in June and a moderate fall in crude oil price since the beginning of the fiscal have helped fuel retailers to reduce their losses from selling products below cost in the second quarter of the fiscal by a nearly half,compared with the first quarter.
These under recovery losses of the firms IOC, HPCL and BPCL have fallen to about Rs. 11,000 crore in quarter ending September 2010, from the Rs.20,072 crore recorded in Q1.
The government on June 25, freed the pricing of petrol from its administrative control. It also hike the price of diesel Rs. 2 a liter, that of kerosene by Rs. 3/ litre and the price of LPG was upped Rs.3 per cylinder.
Petrol prices are deregulated now.
GOVT MULLS COMMON RATING SYSTEM ACROSS ALL PLATFORMS\
I & B(Information and Broadcasting) keen on tech-neutral measurement for mobile, DTH, IPTV & radio
Government is bringing a new common rating system for measuring the ratings across media platforms including mobiles, DTH, IPTV and radio and other future technologies.
The ministry is looking to put in place policy guidelines for the delivery of multimedia services through the wireless platform under the 3G mobile technology.
The I & B ministry will invite the stakeholders from the various industries including broadcasting, films, telecom, research agencies and others to work out an all-inclusive audience measurement solution.
Finally, in order to give a big push to the film industry I&B ministry converting Sri Fort Auditorium into a national film auditorium will look at ways and means to promote India as the soft power in the world through the films and broadcasting.
LALIT MODI LIKELY TO BE BOOKED BY ED(ENFORCEMENT DIRECTRATE) UNDER ANTI-MONEY LAUNDERING ACT
The FIR filed by BCCI secretary N Srinivasan against Modi under the Foreign Exchange Management Act(FEMA) for alleged misappropriation of funds to tune of Rs 470 crore.
The directorate had earlier also issued a blue notice against Modi for alleged “serious contraventions” of the foreign exchange law.
SENSEX IS 3 TIMES MORE VOLATILE IN FIRST 15 MINS
New call auction mechanism from today likely to tame volatility
According to Bloomberg data, around 9-9.15 am, the Sensex moves on an average by 0.17% every 15-20 seconds, as compared to 0.06% during the rest of the trading session.
From a hundred point gain, it is not uncommon to find Sensex sleeping into the red over the next few seconds. To do away with such fluctuations during the initial trading period, a call auction mechanism is being introduced on the NSE and BSE from October 18. this is expected to attract more institutional participation during the opening session and aid in better price discovery.
This price recovery system is already prevelant in major overseas stock exchange like Nasdaq, NYSE, LSE, Duetsche Bourse, Hong Kong and the Australian Stock Exchange.
Sunday, October 17, 2010
FINANCIAL EXPRESS 17th October
RBI seen stepping up intervention of forex market
With the rupee continuing its relentless rise as foreign capital seeks out higher interest rates and strong fundamentals in India, banks and money market players expect the Reserve Bank of India (RBI) to intervene frequently in the foreign exchange market.
In 2010 so far, overseas investors have pumped in close to $23.18 billion into the Indian economy . On Friday, the Indian currency surged to its highest level since late August 2008,buoyed by record foreign portfolio investments and a shaky dollar. During the day , the rupee touched 43.95/96 against the dollar, its highest since August 29, 2008 and above its previous close of 44.11/12 on Thursday.
C Chandrasekhar, senior vice-president, Mecklai Financial said: "The RBI may come up with some kind of cap on the capital flows like many other countries have done. The bank will encourage more inflows on the long term. We believe this kind of strong gain in the rupee is temporary . It may go back to 44.50 levels soon."
According to V Balakrishnan, CEO, Infosys Technologies, a stronger rupee will hurt the company's operating margin by 1.5% and the year margin may narrow by 130 basis points.
By the information given by central bank country's foreign-exchange reserves rose by $1.6 billion to $295.8 billion in the weekended October 8. While foreign currency assets rose by $1.6 billion to $268 billion but gold reserves remained unchanged at $20.5 billion in the week.
If we go with Expert's believe that the impact of a stronger rupee will be seen in the next quarter since foreign inflows have been quite large in September and October on which RBI governor D Subbarao said on Friday that the bank was watching the exchange rate situation and will intervene in the forex market if inflows are lumpy and volatile.
Obama against tax sops for cos creating jobs overseas
US President Barack Obama said the US tax code shouldn’t benefit companies that create jobs in other countries, as he criticised Republicans for “rewarding corporations that create jobs and profits overseas.”
Obama said that “For years,our tax cde has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries,but now We should be using our tax dollars to reward companies that create jobs and businesses within our borders.”
About 8 million jobs have been lost during the recession and the unemployment rate,after reaching a 26 year high of 10.1% in October 2009, was 9.6% last month. Obama said the nation remains in a “tough fight” to help the economy recover. He said government has an “important responsibility” to help business grow.
In the Republican address,U S Representative Mike Pence,o fI ndiana, said Congress should take immediate steps to extend current income-tax rates to remove doubts that are damaging the economy.
“No American should see a tax increase in January,and Republicans are determined to oppose any effort to raise taxes on any American in this difficult economy, ” Pences aid.
IOC hikes petrol price by 72 paise
This is the second increase in petrol prices since June this year. Now petrol in delhi will cost rs 52.55 a litre ater the hike and price in other cities will vary depending on local taxes and levies.
Indian Oil Corporation, the nation's largest fuel retailer, today hiked petrol prices by 72 paise a litre effective midnight tonight.
As there is increase in international oil prices which rose over 80$ per barrel due to which companies are having Rs. 1 per litre lose.
Oil companies no longer revise petrol prices intandem to avoid being accused of acting as a cartel. The other companies also do not have a uniform price for petrol with IOC selling the fuel three paise.
Sources said the three companies are losing about Rs 1 per litre on petrol after international oil prices rose to over $80 per barrel this month. The government had in June freed petrol pricing from its administrative control,allowing the state companies to fixratesinlinewiththecost of production.
Post-suicides, SKS Microfinance willing to cut loan rates
SKS Microfinance today said it is willing to reduce the rate at which it lends money, if the RBI or the government asks it to do so. The statement comes within hours of Andhra Pradesh promulgating Special Ordinance to rein in microfinance institutions (MFI) in the state.
SKS Microfinance Founder and Executive Chairman Vikram Akula said that "We are willing to reduce our rate of interest if the RBI or Finance Ministry asks us to do so. We reduced rate of interest in the past, voluntarily. We are ready to lend at 24 per cent."
SKS Microfinance currently charges 26 per cent interest rate.The issue of capping of interest rate charged by MFIs has divided the stakeholders.
When asked about the ordinance, Akula said, "As an NBFC, SKS is under the purview of RBI and is regulated by it. The state government will have to take up (the issue) with RBI and Finance Ministry as far as interest rates are concerned."
Since the microfinancers take loans from the banks and lend it to customers at a hefty interest rate of as much as 36 per cent, the government is now insisting that public sector lenders must ask MFIs to cap their lending rates in the range of 20-24 per cent as a precondition to access bank finance.
CWG-2010: INDIAN HEROES MELDED INTO HISTORY
"THE GAMES belong to the athletes and athletes will perform." When 'gold-finger' Abhinav Bindra said this at the start of the 19th Com monwealth Games, we weren't in a position to predict a second place for India in the games and that the host nation would clinch its biggest-ever gold medal tally with its best performance ever. But the Indian contingent rose beyond all that to make their nation proud.
Be it the first Commonwealth gold for India in athletics after a yawning gap of 52 years, or the great medal haul in wrestling and shooting, or the inspirational display by the crisis-ridden hockey team that won its first-ever medal, a silver, at the CWG--it has been smiles all the way in the arenas. Picking up 101 medals in all at one single international sporting even was something of a dream till the start of CWG 2010 for this cricket-worshiping nation.
Even the Test series with Australia turned out to be an epic victory for the In cricket team, our athletes in the CWG ceived as much attention, interest and sup port from the spectators, if not more, as the men in blue of Indian cricket. If thinking beyond cricket was ever a problem in this country, it just wasn't so over these 11 days.
While these games would be remembered for rather avoidable reasons and controversies, spanning from corruption and delays in preparation to mismanagement of volunteers and from empty stands in the stadia to the mad scramble for tickets, they would also be remembered for the Indian contingent's stellar performance.
Govt could add loan products in fin inclusion plan
The government is planning to reach out to the unbanked segments in the country by including loan products under its financial inclusion plan, Department of Financial Services secretary R Gopalan said.
Earlier, Gopalan had reviewed the financial inclusion plan process that is being carriedoutby10PSUbanks intheSouthincludingIndian Bank, Andhra Bank, Corporation Bank, Canara Bank, Indian Overseas Bank, Syndicate Bank, Vijaya Bank, State Bank of Mysore, State Bank of Tranvancore and State Bankof Hyderabad. "Corporation Bank is already undertaking such initiatives by opening credit lines to unbanked segment customers to start small businesses like saloon and cycle shops by granting a small value loans of Rs 10,000 to Rs 15,000. This can be replicated by all banks after the ministry approves it at the national scale.
Finance minister also said "We are focusing on providing facilities including deposits, withdrawals, remittances, micropension, micro-insurance in the identified FIP pockets."
The banking sector is up against a huge HR challenge with about 3-4 lakh staff expected to retire in the next three to four years, he said. "New age banking workers has to reorient themselves for new situation. In the modern day banking, more work will be handled at the back offices with conventional banking adopting Business Process Re-engineering at the front-end to stay relevant. We need people with indepth skills in areas like Risk Management, Forex management, Treasury Management, Credit appraisal.,etc to meet the demands of the modern era banking".
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Kushal Shrivastava
Mahendra Singh
Manas Mishra
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