Economy to grow by around 7 pc in FY'09, hopes FM

NEW DELHI: Revival in steel and cement sectors and ample funds available with states for spending on Saturday gave the centre the confidence that the country will grow by around 7 per cent in the current fiscal.

For the first nine months of this fiscal, the economy grew by 6.9 per cent and the government's advance estimates pegged the growth at 7.1 per cent for the entire 2008-09.

Replying to a question on economic growth, Mukherjee said, "All these are estimates and of course between 6.9 and 7.1 (there is) not much difference, but I do hope when the final figures come out it would be around seven per cent."

The economy grew by 5.3 per cent in the third quarter of current fiscal.

To a query whether market is losing confidence due to slackening growth, he said, "I don't agree with your (interviewer's) contention." He said exact numbers could be known only after it becomes clear how will economy respond to stimulus packages.

"All these things...have to be seen for example slow revival of steel and cement industry has started, housing industry have been made adequate allocations, states have been provided funds, they themselves have good cash reserves of about Rs 91,000 crore, quite a few of them would like to spend a substantial quantum of money this year... all this would be available after March 31," he added.

Soruce:http://timesofindia.indiatimes.com/Business/Economy-to-grow-by-around-7-in-09/articleshow/4203968.cms

Slowdown pulls down India's growth to 5.3%

NEW DELHI: Impacted by the global economic meltdown, the Indian economy has clocked slowest quarterly growth in over five years, at 5.3 per cent, in October-December of this fiscal as agriculture and manufacturing contracted, despite a stimulus package.

Against the whopping 8.9 per cent growth in the same period a year ago, economists said it is now the Reserve Bank's turn to provide stimulus to the economy by cutting rates, as inflation is already down to 3.36 per cent.

While the fall in manufacturing, by 0.2 per cent, in the third quarter was expected, as was evident in negative industrial production numbers for October and December, contraction in farm output by 2.2 per cent was a bit surprising.

"What has come as a surprise is agriculture. There is a turnaround but we can be optimistic that the figures will improve," Chief Statistician Pronab Sen said.

For the nine months of this fiscal, the economy grew by 6.9 per cent against nine per cent a year ago, which may make it difficult to attain the 7.1 per cent growth this fiscal, as was pegged officially.

The Government put up a brave front, saying the third quarterly growth is not much off the mark.

"We had maintained seven per cent with a downward bias. That much has been said, but (there is) still a quarter to go. Even with 5.3 per cent, it still comes around seven per cent, maybe a shade below that," Minister of State for Finance P K Bansal said here.

However, others are not as sure about the possibility of attaining 7.1 per cent growth this fiscal. "It is unlikely that the growth is going to be 7.1 per cent (for the entire 2008-09)," Sen said.

In December, the Government provided the first stimulus package, cutting excise duty by four per cent across the board and increasing planned expenditure by Rs 20,000 crore among other things.

However, stimulus packages, also provided in January, and then the interim Budget, would take some time to work their way through the system, economists said.

"(The) Government will not be able to achieve over 7 per cent growth. The stimulus packages will take 6-8 months (to lift the economy) and (it will take) 8-9 months to get about 7 per cent (growth)," Crisil Principal Economist D K Joshi said.

It was only services that provided a sliver lining to the otherwise gloomy situation on the growth front.

Source:http://timesofindia.indiatimes.com/Business/India-Business/Sensex-Nifty-end-in-red/articleshow/4201061.cms

Sensex up further by 52 pts on fall in inflation

Mumbai, Feb 26: On the back of fag-end buying amid short-coverings mainly in auto, refinery and IT counters due to a fall in inflation as well as firm European cues, the benchmark Sensex reversed its initial weak trends and ended up by another 52 points, despite sustained capital outflows.

Brokers attributed the recovery in share values mainly to the covering of short positions on the last day of the February derivatives contract today.

The Bombay Stock Exchange 30-share Sensex initially touched a low of 8,788.32 but rebounded sharply to settle the day at 8,954.86, a rise of 52.30 points or 0.59 per cent over its previous close. Yesterday it was up by over 80 points.

The 50-share Nifty of the National Stock Exchange too rose by 23.15 points or 0.84 per cent to 2,785.65 from its last close.

Asian indices, however, gave a mixed performance with a downward bias due to fall on Wall Street yesterday on warning given by the US government about the financial institutions.
However, a smart rally in European markets at the opening also helped the late recovery in the index.

Gold to touch Rs 17K by August: Assocham

Date : Feb-26-2009 09:24
Gold prices are expected to touch Rs 17,000 per 10 grams by August, an industry body said on Feb 25. In the same way, silver prices would also climb to Rs 24,000 a kg by the same time, as assessment study by industry body Assocham said. Since global financial crises has diminished investment opportunities in stocks, mutual funds, government securities and bonds, investments in gold and silver would continue to grow and restrict at Rs 17,000 per 10 grams and Rs 24,000 a kg, respectively by August 2009, it said.

Nevertheless, gold and silver would subside to fall to realistic levels of Rs 12,000 per 10 gram and less than Rs 17,000 a kg by January 2010 onwards, it pointed out. The assessment on ''Prospects of Bullion Trade'' for the next six months, carried out by Bullion Trade Committee headed by bullion expert S K Jindal, anticipated that peak crisis in stocks, realty and other secured markets would gradually start fading away by August and until then, gold and silver will continue to lure investors for their surpluses. In March, the average gold price would go up to Rs 15,750 per 10 gram, while silver would stray at around Rs 23,000 a kg, it said.

Rupee falls for 3rd session, ends at 49.94

Date : Feb-26-2009 12:24
The rupee continued its southward journey for the third straight session and closed lower by another seven paise to 49.94/95 as compared to the greenback In fairly active trade at the Interbank Foreign Exchange (Forex) market, the rupee resumed higher at 49.72/75 a dollar from the earlier close of 49.87/88. Forex dealers attributed the initial smart recovery in the rupee to rally in global equity markets. The announcement of Rs 30,000-crore rescue package by the government to support the sagging economy mainly helped the recovery in local bourses, which support the rupee, forex dealers said.

The local currency grew against the pound sterling to close at Rs 72.06/08 from its last close of Rs 72.51/53 and along with this it also advanced against the Japanese yen to Rs 51.75/77 per 100 yen from the earlier close of Rs 52.17/19. On the other hand, it declined against the euro to Rs 64.11/13 from previous close of Rs 63.88/90.

Indian oil marketing companies hold investment plans in Brazil

Date : Feb-25-2009 10:00
Indian oil marketing companies like State-run Indian Oil Corporation (IOC), Hindustan Petroleum Corporation (HPCL) and Bharat Petroleum Corporation (BPCL) have held their plans to invest in sugarcane farms in Brazil for producing ethanol. These three firms had planned to jointly buy or lease plantations and related units for producing ethanol. Ethanol is a by-product of sugarcane that is added in petrol to reduce dependence on imported oil.

Petroleum Minister Murli Deora in the Rajya Sabha said the three oil-marketing companies (OMC) had explored the possibility of acquiring sugarcane acreage and putting up ethanol manufacturing units in Brazil.

"The project was found to be feasible and strategic for the Indian oil industry. However, in view of economic slowdown and resource crunch, OMCs are not contemplating any investment in Brazil to set up an ethanol project at present," he said.

These three firms were planning to acquire 15-35% stake in two of the largest Brazilian integrated ethanol players -- Louis Dreyfus Commodities Bioenergia and Infinity -- and 50% equity in new plantations/projects of smaller firm Rezek.

Market traded in red despite fall in inflation data: Sensex below 9K mark

Date : Feb-26-2009 13:32
The key benchmark Indices plunged on concern over global financial sector crisis and recession in key global economies has pushed economic growth in India down to a six-year low. Further, concerns about rising borrowing costs for Indian corporate pondered on the market as fears a downgrade of India’s sovereign rating by global rating agencies worries larger segment of the market.

Now all eyes are waiting for the RBI to reduce its key rates that would pump in more liquidity into the system and prompt the banks to reduce their respective PLRs to enhance the credit growth.

Volatility is likely to remain as rollover of Nifty positions from February 2009 series to March 2009 series stood at 62% while market wide rollover of positions was 57%, as on Wednesday, 25 February 2009.

On the sectoral front, traders off-loaded position across the sectors. Metal stocks declined on concerns a weakening domestic and global economy will have negative impact on demand. Banking stocks fell on fears of rising defaults in a weakening economy. Realty stocks plummeted on recent reports falling rates have failed to boost housing demand.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,207 stocks traded so far, 821 shares advanced while 1,285 shares declined. Nearly 101 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 45.37 points at 8,857.18 and NSE Nifty is down by 13.50 points at 2,749.00.

The BSE Mid Cap is trading lower by 2.28 points at 2,754.70 and Small cap is trading down by 26.03 points at 3,108.65.

Major losers from the BSE Sensex pack are Ranbaxy Labs deteriorated 16.55% to Rs. 172.95 along with ICICI Bank tumbled 5.65% to Rs. 321.25, Housing Development Finance by 4.09% to Rs. 1,203.15, Hindalco Ind by 2.00% to Rs. 39.25, Jaiprakash Associates by 1.94% to Rs. 65.75 and HDFC Bank by 1.75% to Rs. 849.00 among others.

Major gainers from the BSE Sensex pack are Tata Motors advanced by 1.89% to Rs. 142.50 along with Larsen & Toubro Ltd by 1.31% to Rs. 620.45, Grasim Industries Ltd by 0.98% to Rs. 1,421.00, ACC by 0.28% to Rs. 559.70 and Infosys Tech by 0.23% to Rs. 1,219.00 among others.

The BSE Bankex index is lower by 136.78 points or 3.20% at 4,140.25. Stocks trading in red are ICICI Bank fell by 5.65% to Rs. 321.25, Karnataka Bank by 4.43% to Rs. 61.45, Punjab National Bank by 4.38% to Rs. 326.50, Axis Bank 4.37% to Rs. 350.25, Canara Bank by 3.58% to Rs. 156.25, IDBI Bank3.45% to Rs. 47.60 and Yes Bank by 3.27% to Rs. 51.80 among others.

Ranbaxy Laboratories deteriorated 16.55% to Rs. 172.95 after US regulators raised questions against falsified data and test results.

Reliance Industries fell by 0.01% to Rs. 1,265.90 on fears a worsening global economy will hit demand for petrochemicals.

ONGC rose 0.06% to Rs. 697.20 and Cairn India gained 1.25% to Rs. 162.50 as crude oil prices surged over 6% on the New York Mercantile Exchange on Wednesday, 25 February 2009.

Piramal Healthcare rose 16.65% to Rs. 208.40 on report French drug maker Sanofi-Aventis has emerged as the front-runner to buy a substantial stake in the Indian firm.

Matrix Laboratories advanced 2.92% to Rs. 91.60 after the company said it got approval from the World Health Organisation for generic version of a HIV drug.

Larsen & Toubro rose 1.31% to Rs. 620.45 on bagging new orders aggregating to Rs. 1,162 crore.

Madras Aluminium Company was locked at 5% upper limit at Rs. 94.95 after Twin Star Holdings set a price of Rs. 105 for acquiring 20% stake in the Indian aluminium maker as part of a delisting offer.

Strides Arcolab jumped 6.99% to Rs. 71.90, on reporting strong financial performance for CY2008.

Petron Engineering Construction gained 0.82% to Rs. 67.55, after the company said it bagged two orders aggregating to Rs. 72.55 crore.

DLF slumped 3.62% to Rs. 149.00 on reports the Income-Tax department has ordered a special audit of the accounts of the real estate giant for the assessment year 2006-07.

HDFC MF launches 13 months plan

Date : Feb-25-2009
HDFC Mutual Fund house has commenced initial offering period of HDFC Fixed Maturity Plan 13 Months March 2009 (1) under HDFC Fixed Maturity Plans-Series X. The NFO will open for subscription on March 3 and close for subscription on March 24, 2009. The face value of new issue is Rs 10 per unit.
It is a close-ended income scheme. The objective of the fund is to generate regular income through investments in debt as well as money market instruments and government securities. The scheme offers wholesale plan and retail plan with growth and dividend option.

The minimum application amount under the retail plan will be Rs. 5,000 and in multiples of Rs. 10 thereafter. On the other hand, the minimum investment amount is Rs. 25 lakh under the wholesale plan and in multiples of Rs. 10 thereafter. The scheme will invest 60%-100% in debt as well as money market instruments, with low to medium risk profile. The scheme will also invest up to 40% in government securities with low risk profile. The FMP will not charge an entry and exit load. As the scheme is being listed, the investors during the tenor of the Scheme will not be able to redeem their units and there will be redemption by the fund only on the maturity of the scheme.

Tata Cap NSD issue over subscribed 6 times

Date : Feb-26-2009
Tata Capital's non-convertible debenture (NSD) issue was oversubscribed six times of the offer. It received bids worth above Rs 3,000 crore on vigorous response from all categories of investors. The Rs 500 crore issue had opened for subscription on February 2 and closed on February 24.
Tata Capital said in a statement that the company would retain subscriptions worth Rs 1,500 crore from the issue of secured NCDs. The instrument would be listed on the National Stock Exchange (NSE).

MR Praveen P Kadle, Tata Capital managing director, said, "The issue has gained significant acceptance and this re-instates investor confidence in Tata Capital. Based on the good response we feel such bonds will become an instrument of choice for investors and other corporates leading to the development of a strong corporate bond market."

Amount raised from the issue is planned to use for company's various activities including lending and investments, for capital expenditure and to repay existing loans, he added.

Sensex gains 134 pts in early trade

MUMBAI: The Bombay Stock Exchange benchmark Sensex gained over 134 points in the opening trade on Wednesday due to buying of funds on firm global markets amid covering up of short positions by speculators ahead of Thursday's expiry in the derivatives segment.

The 30-share barometer gained 134.02 points to 8,956.08 with the banking, realty and metal sector stocks leading the recovery. The index had lost nearly 220 points in the previous two sessions.

The broad-based National Stock Exchange Nifty also moved up by 35.80 points to 2,769.70.

Stock brokers said apart from short-covering by speculators in view of Thursday's monthly expiry in the derivatives segment, fresh buying by funds driven by overnight rally on the US markets and firming trend in other regional bourses, helped sentiments improve to some extent.

They said the market also got a boost after the government announced that the 4 per cent across-the-board excise duty cut would continue beyond March 31, 2009, and also reduced excise duty rates by two per cent to bring it down to 8 per cent.

Soruce:http://timesofindia.indiatimes.com/Business/Sensex-gains-134-pts-in-early-trade/articleshow/4187110.cms

Reliance opposes gas supply to NTPC

NEW DELHI, Feb 23: Reliance Industries Ltd has opposed supplying its Krishna-Godavari basin gas to NTPC as its legal dispute with the nation’s largest power generator, previously cited by the state-owned firm to block the sale of KG-D6 gas, is still pending at the Bombay High Court.
The Power Ministry has identified NTPC plants to take nearly half of the 18 million standard cubic metres per day of KG-D6 gas earmarked for the power sector.
This prompted RIL to question the logic of supplying gas to the state-owned firm that cited the court case not only to refuse participation in the process of discovering the price of KG-D6 gas but also blocked moves to sell the fuel to the Dabhol power plant.
"In the backdrop of continuing litigation it is completely inappropriate for the Government to require Reliance to enter into commitments for sale of gas with NTPC," Reliance wrote to the Petroleum Ministry earlier this month.
Reliance had in 2007 offered gas from its KG-D6 fields to Ratnagiri Gas & Power Pvt Ltd (earlier Dabhol) but NTPC, which is half owner of the country's largest gas-fired unit, blocked the move even though this gas is cheaper than imported-LNG being used to fire the plant.
The Government has now decided that KG-D6 gas, priced at a cap of USD 4.20 per million British thermal unit, will meet the entire fuel requirement of Dabhol. (PTI)

Hinduja Group prefers taking 51% stake in Satyam: CFO

NEW DELHI: The Hinduja Group, one of the interested parties in acquiring a stake in Satyam Computer, today said it would prefer taking 51% in the IT major.

"It will be preferred if somebody can get 51%. Suppose the open offer does not come to 20%, then it will be less than 51%. Also, till the time proper restated account is available or crystallisation of liability is happened, no bidder can really put a value on that company," Hinduja Group CFO Prabal Banerjee said.

Last week, the board of Satyam approved the stake sale process as directed by the Company Law Board and said it would release the process of the sale after getting due approvals.

Earlier, another suitor Spice Group's chairman B K Modi had said that his company would be interested in Satyam only if the entire 51% stake is offered through the preferential route.

"The entire money should go into Satyam. The CLB has already laid down the broad framework of the process to be followed. They have also recognised that any strategic investor would like to have adequate equity shareholding, which would enable the investor to constitute its own board," Modi had said.

L&T, the 12% stakeholder in Satyam has already said it needs to know the details of the stake sale process before commenting.

Soruce:http://timesofindia.indiatimes.com/Business/Hinduja-eyes-51-stake-in-Satyam/articleshow/4183410.cms

Will Mukesh and Anil unite on mom's birthday?

On a day when a story about two estranged brothers making their peace was sweeping the Oscars and A R Rahman was singing an ode to his mother, Indian business circles were abuzz with talk of India's best known siblings possibly getting ready to bury the hatchet — on their mother's birthday.

The Ambani brothers are coming together at least for a day on Tuesday. Mukesh and Anil Ambani will jointly celebrate their mother Kokilaben's 75th birthday at Sea Wind, their Mumbai residence, fuelling fresh speculation of a rapprochement.

About 100 members of the extended family will gather for the celebrations, as will some ``close family friends'', including ICICI chairman K V Kamath, and petroleum minister Murli Deora. Each brother is believed to have invited his own set of friends, some of whom are common to both.

Not everyone think today's bash will lead to anything more substantive. ``Don't read too much significance into it. It's not just the brothers who are hosting it. Their two sisters (Dipti and Nina) are also closely involved,'' said a family friend.

But that hasn't stopped expectations from running high, especially given the importance of the occasion. ``Who doesn't hope it will happen?'' said a businessman close to the family. ``The mother is very keen to make it happen. But mind you, she's been trying to bring her sons together ever since they went their separate ways. And by the way, this isn't the first time that the brothers are coming together for a family function.''

The brothers first shook hands, after their acrimonious split, at the presentation ceremony of The Economic Times Awards four years ago. Ever since, there has been speculation about them burying their differences. These expectations have amplified in recent times, especially whenever the two have been together.

The frequency of the two brothers being in the same place at the same time, whether a coincidence or by design, has also increased in recent times. Examples: when BJP leader L K Advani had a meeting with corporate leaders to discuss the global financial meltdown, or when they met on December 28 for Dhirubhai Ambani's birth anniversary and three days later for the silver wedding anniversary of sister Dipti and Raj Salgaocar on December 31. They are also reported to have both attended the 21st birthday of one of their nieces. All this, in the space of a few months.

It's learnt that the two brothers would be jointly performing several functions, including a puja , on their mother's birthday. And, they may be together to receive and see off guests. ``Will this make the chemistry between the two work once more? I don't know,'' said a person known to the family. ``All I know is that in addition to Kokilaben, every family member, including all in-laws, have been pressing for a patch-up.''

Soruce:http://timesofindia.indiatimes.com/

India Inc''s M&A value dips 53% in 4 yrs

Continuous downfall in the stock market has led the current market valuation of corporate India''s mergers and acquisitions losing behind by a whopping $24.04 billion, in just four years time. During 2005-08, listed Indian companies have been involved in M&A activities worth $45 billion, but the current mark-to-market value of such M&As is down to $20.96 billion, with a loss of 53 per cent, SMC Capital said in a report. Though M&As are meant more for long-term strategic reasons, a loss of $24.04 billion is lot of money to totally ignore. However, the overall M&A experience by Indian corporates turning sour, raising questions about the very rationality of such aggressive M&As, SMC Capitals CEO Jagannadham Thunuguntla said.

Fast and aggressive M&As by Indian corporates on unprecedented bull market, was also one of the key reason for fall in its valuations, as during the four-year time (2005-08) the equity market went through a rough patch. A yearly comparison shows that the listed M&As of 2005 are performing relatively better with current mark-to-market return of negative 6.68 per cent. However, the listed M&As of 2006, 2007 and 2008 are bleeding severely with losses as high as 62.84 per cent, the report said.

Nearly 85 per cent of the listed M&As during 2005-08 are posting losses. There were 54 deals in the period under review, out of which as many as 46 are in losses. Only eight deals representing 15 per cent have been able to post profits and these deals were from sectors like energy, manufacturing, oil and gas and telecom. Deals that reported profits were NTPC-Ratnagiri Gas, GAIL-Ratnagiri Gas, Vodafone-Bharti, Tata Power-Arutmin, Holcim-HCC, Bharat Petroleum-Encana, Indian Oil-IBP Company.

All the other sectors under review, barring telecom, that posted negative returns are aviation (69.94 per cent), Banking, Financial Services and Insurance (44.09 per cent), energy (37.07 per cent), hospitality (75.72 per cent), IT and ITeS (57.87 per cent), manufacturing (62.71 per cent), media and entertainment (78.66 per cent), oil and gas (16.81 per cent), pharma and healthcare (67.10 per cent).

Bihar gets Rs 16k crore from the Planning Commission

Date : Feb-24-2009 12:41
The Planning Commission on Monday approved its annual plan outlay worth Rs 15,900 crore for the fiscal year 2009-10. For the year 2008-09 the plan size was Rs 13,500 crore. The new plan also includes Central assistance of Rs 4,798.96 crore out of which Rs 110 crore will be used to fund the special projects of the state. The new grant was approved between Planning Commission deputy chairman Montek Singh Ahluwalia and chief minister Nitish Kumar at Vikas Bhavan in New Delhi.

Montek Singh Ahluwalia however has complimented Bihar for the plan aimed at accelerating infrastructure development. He has also stressed the need for better plan realisation and provision of land for power sector infrastructure.

The planning commission panel has also advised the Bihar Chief Minister to engage financial institutions in skill development and avail itself of the benefits on offer under the Jawaharlal Nehru Urban Renewal Mission for upgradation of civic amenities.

The Bihar Chief Minister however said that since Bihar is a development deficit state, it needs higher plan size. He also said that the state has plans for private investment at different stages in the sugarcane and thermal power sectors. "We have created an investment-friendly climate. Four sugar mills will be opened soon, and they include two by HPCL," he said, adding Bihar expects to spend 24% of the allocated amount on basic infrastructure, including roads and bridges.

Bharti AXA MF extends NFO closing date

Date : Feb-23-2009
Bharti AXA Mutual Fund has published corrigendum to notice mentioned that closing date of New Fund Offer (NFO) period of Bharti AXA Regular Return Fund. The new issue will close for subscription on February 26, 2009 instead of February 27, 2009. The NFO was opened for subscription on January 28, 2009.

Bharti AXA Regular Return Fund, an open-ended income scheme that seeks to generate regular income through investments in fixed income securities as well as to generate long term capital appreciation by investing a portion in equity as well as equity related instruments.

Inflation rate dips to 3.92%

Inflation rate dips to 3.92%

New Delhi, Feb 19: India’s annual rate of inflation dipped further in the week ended February 7 to 3.92 per cent from 4.39 per cent the week before, official data showed on Thursday. The inflation rate, based on the official wholesale price index (WPI) stood at 4.98 per cent for the corresponding week of the previous fiscal, showed the statistics released by the Industry Ministry here. The WPI for all commodities declined 0.2 per cent to 228 (provisional) from 228.4 (provisional) the week before. The index for primary articles declined 0.2 per cent to 248.0 (provisional) from 248.5 (provisional) for the previous week, while that for manufactured products declined 0.4 per cent to 199.7 (provisional) from 200.6 (provisional) the week before. (IANS)

Gold is scaling new highs

Gold is scaling new highs

New Delhi, Feb 19: Make hay while the sun shines seems the mantra for gold customers as they are rushing to the bullion market in hordes to sell scrap gold and old jewellery at a time prices are ruling at record high levels. Gold’s upward march gaining Rs 1,600 per 10 gram this month so far has attracted a heavy rush of gold customers to sell their scrap gold and old fashion ornaments to replace with new designs once the prices decline and make good profit in the interim, said Rakesh Anand of R K Jewellers. The precious metal rose to a record high of Rs 15,800 per 10 gram in the bullion market here today during intra-day. It, however, pared a marginal Rs 50 to close at Rs 15,700. In a three-day record-setting spree, gold price yesterday touched an all-time high of Rs 15,750. While customers are eager to sell and make quick profit when prices are scaling new high every day, there is no physical buying for the same reason. “Expectations are running sky high but no one willing to purchase at existing higher levels,” Anand said and added the buying for the ongoing marriage season is confined to sovereign coins only as it is seen as a solid asset. The bull-run is purely on speculation and more corelated with the global trend, with hardly any physical buying in last few days, said All India Sarafa (Bullion) Association President Sheel Chand Jain. (PTI)

Sensex up 27 points; IT stocks gain on weak rupee

Mumbai, Feb 19: In lacklustre trading, the benchmark Sensex on the Bombay Stock Exchange today snapped its three-day losing string by posting a moderate 27-point gain on buying support in IT stocks, chiefly Wipro and Infosys.

Mirroring narrowly mixed trend on the Wall Street yesterday and Asian markets this morning, the BSE barometer moved in a narrow range throughout the day, which marketmen said are signs of consolidation at 9,000-level.
The bellwether index closed the day at 9,042.63, a gain of 27.45 points or 0.30 per cent over its previous close.
The broader 50-issue Nifty of the National Stock Exchange also rose by 13.20 points or 0.48 per cent to 2,789.35.
IT shares attracted good buying support. Market participants said after a steep fall yesterday in the value of rupee against the US dollarIT stocks looked appealing. The domestic currency breached the 50-mark yesterday for the second time in two months before closing lower at 49.92.

According to market participants, inflation falling to 14-month low of 3.92 per cent for week ending February 7 is likely to induce the RBI to signal further key interest rates cut to prop up demand.
However, gloomy outlook for the global economies made investors wary of stock markets, they added. After a disappointing interim Budget, the players are now expecting from the Reserve Bank of India (RBI) some monetary measures to boost the economy, particularly after a decline in inflation to 14-month low.
With rupee recording a sharp fall against the greenback, IT blue-chips Wipro at 5.41 per cent and and Infosys and 2.50 per cent were the best two index gainers. Grasim Ind, Maruti Suzuki and HDFC also gained in the range of over 2 per cent.

Reflecting the gain in IT counter, the sectoral index spurted by 50.17 points or 2.45 per cent. However, the BSE-CG index dropped by 57.20 points or 0.93 per cent.

Among the Sensex losers, Hindalco topped the list at 3.49 per cent. ICICI Bank and L&T also lost over 2 per cent each. ACC was the second worst loser at 2.43 per cent. Although the Sensex ended in positive terrain, the total market breadth was negative as 1,299 counters ended with losses as against 1,073 that finished with gains on the BSE.

The trading volume remained low at Rs 2,428.97 crore. Educomp topped the list of highest traded securities with a turnover of Rs 235.36 crore followed by RIL (Rs 148.85 crore).
On global front, Asian markets ended mixed while European indices opened firm which helped Sensex to end in the green.

American markets yesterday ended flat as it ignored government moves to revive the waning housing industry and focused on data highlighting depressed state of the economy. (PTI)

JM Financial MF declares dividend for JM-QIF-6

JM Financial MF declares dividend for JM-QIF-6

JM Financial Mutual Fund has declared dividend under JM Interval Fund-Quarterly Plan 6 (JM-QIF-6) dividend option. The record date for the same is fixed as February 23, 2009. The fund house has decided to distribute realized appreciation in the NAV of the plan/option till the record date as dividend (inclusive of dividend distribution tax) in both regular as well as institutional plan under the scheme. The scheme as on February 17, 2009 recorded a NAV of Rs 10.1175 per unit in regular plan and Rs 10.1209 per unit under institutional plan. JM Interval Fund-Quarterly Plan 6 is a debt oriented interval fund with an objective to seek to generate predictable returns by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans.

JM Financial MF declares dividend for JM-QIF-5

JM Financial Mutual Fund has declared dividend under JM Interval Fund-Quarterly Plan 5 (JM-QIF-5) dividend option. The record date for the same was fixed as February 23, 2009. The fund house has decided to distribute the realized appreciation in the NAV of the plan/option till the record date as dividend (inclusive of dividend distribution tax) in both regular as well as the institutional plan under the scheme. The scheme as on February 17, 2009 recorded a NAV of Rs 10.1174 per unit in regular plan and Rs 10.1208 per unit under institutional plan. JM Interval Fund-Quarterly Plan 5 is a debt oriented interval fund with an investment objective to seek to generate predictable returns over a predetermined period by investing in a portfolio of fixed income securities normally maturing in line with the time profile of the respective plans.

HDFC MF declares dividend in HDFC FMP 90D November 2008 (3)

HDFC Mutual Fund has announced dividend under the dividend option of retail as well as wholesale plan of HDFC FMP 90D November 2008 (3), which is a fixed maturity plan under HDFC Fixed Maturity Plans-Series X. The record date of the same is February 24, 2009. The fund house has decided to distribute 100% of distributable surplus as on the record date. The scheme as on February 17, 2009 recorded a NAV of Rs 10.2117 per unit under the retail plan and Rs 10.2145 per unit under wholesale plan. The objective of the scheme is to generate regular income through investments in debt/money market instruments as well as government securities.

SBI MF declares dividend for 90 days debt fund

SBI Mutual Fund has declared dividend under dividend option of SBI Debt Fund Series-90 days -32. The record date for the same is February 24, 2009. The quantum of dividend will be 100% of the distributable surplus of the scheme as on the record date on the face value of Rs 10 per unit. The NAV under the scheme as on February 11, 2009 was at Rs 10.1953 per unit.

SBI Debt Fund Series-90 days -32 is a close-ended debt scheme with an investment objective to provide regular income as well as the liquidity and returns to the investors through investments in a portfolio comprising debt instruments and money market instruments.

Mutual funds' selling slows down

On 18 February 2009, mutual funds (MFs) sold shares worth a net Rs 107.40 crore, much lower than Rs 483.40 crore on 17 February 2009. MFs' net outflow of Rs 107.40 crore on 18 February 2009 was a result of gross purchases Rs 240.30 crore and gross sales Rs 347.70 crore. The BSE Sensex lost 19.82 points or 0.22%, to 9,015.18 on 17 February. MFs were net seller of shares worth Rs 1582.50 crore in this month, till 18 February 2009.

Corporate governance may weigh more in future IPO grading

There are expectations that in coming time rating agencies will consider corporate governance as a key aspect of grading in initial public offers (IPO). According to rating agencies official, importance to corporate governance is increasing as a parameter in IPO grading for assigning a higher weightage. This is mainly due to potential investors, especially retail, in an IPO have very little information about the company's or its promoter's background and track-record.

Corporate governance issue came in limelight especially after the accounting scandal in Satyam and charges of irregularities in Maytas Infra, which was listed during the peak of the bull run.

In a study of 29 IPOs by CRISIL graded by the ratings agency since May 2007, corporate governance structures were found to be 'weak' in close to 50% of the companies evaluated.

Head-equities, CRISIL Research, Chetan Majithia said in a statement, "While not the sole determining factor, the quality of corporate governance as assessed by CRISIL may significantly influence the CRISIL IPO grade, beyond what the company's business prospects and financials may suggest,". source: livemint.com

Government is planning divestment in five PSUs

Government is planning divestment in five PSUs through Initial Public Offers. Rahul Khullar, disinvestment secretary, said a decision to launch the IPOs will be taken by the new government in May-June, while all preparations have been made. Last year the government had approved dozen-odd PSUs to go public and all of them had initiated steps to disinvest.

The PSUs had started early in 2008-09 to launch their public issues. However, by the time they were to launch the issue, the market had already tanked, Khullar added.

On 16th February 2009, government also said that oil bonds would not be issued during the next financial year and whole amount of subsidy of Rs 95,579 crore estimated under various heads and would be paid in cash. Ashok Chawla, economic affairs secretary, ruled out oil bonds, based on oil ministry estimation that oil marketing companies would not suffer losses on motor fuels even if international crude prices average $70 a barrel during 2009-10. source: livemint.com

Gold continues upward march in early trade

Mumbai, Feb 20 (PTI) Gold prices continued their upward march in early trade on the bullion market here today and rallied further to an all-time high of Rs 15,570 on safe-haven buying due to fall in equity markets even as gold declined marginally in the overseas market.
However, silver eased on lack of demand at higher levels.

Uncertainty in equity shares and worsening worldwide recession boosted gold prices as investors preferred to park their funds in this metal as a risk free, a dealer said.

Gold futures ended slightly lower on Thursday in New York, holding firm near USD 980 an ounce as investors adjusted their positions after the metal ended a seven-month high in the last session.

Gold for February delivery ended down by USD 1.60 an ounce to USD 976.10 on the Comex Division of the New York Mercantile Exchange. Silver for March delivery lost to USD 13.935 an ounce.

Turning to the local market, standard gold (99.5 purity) rallied by Rs 80 per ten grams to resume at Rs 15,570 from Wednesday's closing level of Rs 15,490.

Pure gold (99.9 purity) also rose to Rs 15,635 from Rs 15,560.

However, silver ready (.999 fineness) eased by Rs 50 per kilo to Rs 23,040 from Rs 23,090. PTI

Thursday, February 19, 2009

Jazz legend Herbie Hancock to perform with A R Rahman

New Delhi, Feb 18 (PTI) Jazz pianist Herbie Hancock who "absolutely loves" the music of the Oscar-nominated film "Slumdog Millionaire' is now readying to perform with composer A R Rahman in Chennai later this month.
Hancock who is part of the official US delegation accompanying Martin Luther King III on a 11-day tour of India would perform on a special composition by Rahman the theme of non violence.

"I absolutely loved the music of Slumdog. It combines the influence of several cultures," Hancock said referring to the British Danny Boyle rags-to riches film with music by A R Rahman which is in the running for multiple Oscars this year.

Alhough the Chicago-based piano legend has not seen the film he said he is looking forward to performing with Rahman in Chennai scheduled on February 24.

Hancock, accompanied by vocalist-actor Dee Dee Bridgewaters and diva singer Chaka Khan and keyboard player George Duke on his India tour said, "The spirit of music is firebrand and amazing. More and more artists and musicians are now crossing invisible boundaries of countries and continents and becoming cultural ambassadors." The 12-time Grammy winner who was greeted with resounding applause after his performance of the "Living Dream" concert in the capital said, "We are here to celebrate peace and music is all about bringing people together." PTI

VOIP - New challenge to cyber cops

Anurag Sharma
New Delhi, Feb 19 (PTI) Terrorists relying on newer technologies like proxy internet servers and Voice over Internet Protocol (VOIP) as indicated by Pakistan's probe into the recent Mumbai attacks pose a new challenge to police investigations, feel cyber experts.

"There is so much data communication on the internet at all times that it is very difficult to detect VOIP that is malicious in nature. Even if it is detected, decoding the communication, tracing the locations of the terrorists, monitoring them, etc, is very difficult," says Ankit Fadia, a cyber security expert.

VOIP software usually encrypts or encodes the communication, hence making it very difficult for police to decode intercepted calls.

"Most VOIP software companies like Skype or Google Talk are based outside India. This is a further hindrance to investigation, since it takes a long time to get response from these companies abroad," says Fadia, winner of Indo-American young achiever award.

Cyberlaw experts say there are many loopholes that makes it difficult to keep track of terror transactions.

"At the time when different countries have come up with distinct legislation they have an impact of Cyber Terrorism, having a single provision on Cyber Terrorism, is not likely to help India in the long run," says Pavan Duggal, a cyber law expert. PTI

I was fascinated by the conspiracy in Valkyrie: Cruise

Los Angeles, Feb 20 (PTI) Actor Tom Cruise, who plays Colonel Claus von Stauffenberg in Nazi drama "Valkyrie" says he was fascinated with the plot of the film that revolves around a true life incident.
The film is based on a real-life story about Colonel Claus von Stauffenberg, who had plotted to kill Hitler and end the Nazi government's rule.

"I was fascinated by the conspiracy. It was dynamic and suspenseful from the opening to the end. Then finding out it was based on a true story it's even more mind-blowing. That combination made it very interesting for me," the 'Mission Impossible' star said in a statement issued here.

The film is releasing in India today.

The actor said he always wanted to work with director Bryan Singer.

"Bryan is someone I've always wanted to work with. I think he's an extraordinary filmmaker. Bryan is someone who even as a kid was making World War II movies," he said.

"He had an obvious fascination with this time period, and with that kind of interest and dedication you could feel all of us (cast and crew of 'Valkyrie') coming together and saying, 'Okay, let's make this'". PTI

Valkyrie is not a documentary: director

Los Angeles, Feb 20 (PTI) Director Bryan Singer has denied that his Nazi war drama "Valkyrie" starring actor Tom Cruise is a documentary.
"We weren't making a documentary. The important thing was getting the truth of the story across in the most engaging way," said Singer.

The director of Academy award winning film "The Usual Suspects" wanted to depict the determination of the German officers.

"When the film begins, you're transported to this world of German soldiers in the mid-1940s, and the thing that draws you into that world are the characters these proud military men who saw that they had a monstrous leader and felt they had to get rid of him," he said.

Singer first gained widespread attention in 1995 with the mystery thriller 'The Usual Suspects', which won two Academy Awards followed it with three blockbusters 'X-Men', its sequel 'X-Men 2' and 'Superman Returns'.

The director was so fascinated with the story that he began doing his own research, reading extensively about every aspect of life during the Third Reich.

He also met with a number of people who could give him an inside perspective. PTI

UNSC reform: India presses for 'actual negotiations'

Dharam Shourie
United Nations, Feb 20 (PTI) Pressing for "actual negotiations" on the issue of UN Security Council expansion, India has asked the General Assembly for discussions to be held in an interactive format, as representatives of the world body met here to launch parleys on reforms.

"We have to have actual negotiations and not waste time on yet another round of set statements," Indian UN Ambassador Nirupam Sen told an informal meeting of the 192-member UN General Assembly, called to discuss the timetable for talks to formally begin in March.

Referring to the format followed by Open-Ended Working Group (OEWG) on UNSC reforms which has been hearing statements for 15 years, Sen said the process has made no real progress.

The member States have decided to move to inter- governmental negotiations, virtually rejecting the suggestion of Uniting for Consensus (UFC) led by Pakistan which wanted OEWG to continue the discussions.

Sen said the minority that does not want real progress looks forward to wasting March and April simply making statements and turning the assembly into OEWG.

"We cannot accept this," he said.

Speaking at the informal meeting ahead of the inter- governmental negotiations, Sen, without naming the UFC, criticized the "minority" for continuing efforts to ensure that "history does not turn." PTI

SBI slashes rate on car loans to 10%

NEW DELHI: After cutting its home loan rate by almost 3 percentage points to 8%, the country's biggest bank, State Bank of India has cut its car loan rate also by 1.5 percentage points to 10% under the floating interest rate scheme. The bank also announced massive cuts of up to 6.5 percentage points in interest rates to farmers against their produce, bringing the new rate to 8%.

The reduction in the car loan rate should act as a major boost to the auto industry, which had been facing a slowdown compounded by high interest rates. "As SBI is the leader in the car loan segment, other banks will be forced to follow suit to remain competitive," said a public sector bank chairman.

The new offer, a senior SBI official said, would be for a limited period between February 23 and May 31, 2009.

After that, the rate would be reset to the then prevailing rate on car loans. The official said that at present the bank was offering car loans at 11.5% in the normal course. As the prime lending rate of the bank is 12.25%, the present floating rate on car loans is 75 basis points lower than the PLR. After one year, the interest rate on the car loan borrowed today at 10% will be reset at the then prevailing PLR minus 75 basis points.

In 2008-09 so far, SBI has emerged as the biggest player in the car loan segment financing over one lakh cars. In 2009-10, the official said the bank is aiming at financing 2 lakh cars. The SBI car loan scheme offers the longest repayment period of up to eighty four months (7 years) without any advance EMI.

In the farm loan segment too, SBI has cut interest rates very steeply. In what it said was a bid to save farmers from falling prey to distress sale of their farm produce, SBI has reduced the rate of interest for loans to farmers against cold storage and warehouse receipts to 8% per annum with immediate effect. These loans, till now, were being charged interest ranging from 10.5% to 14.25%, depending on the quantum of loan sanctioned.

Soruce:http://timesofindia.indiatimes.com/Business/Gold-breaches-Rs-16000-level/articleshow/4165792.cms

Gold breaches Rs 16,000 level in futures trade

NEW DELHI: Breaking all previous records, gold prices on Saturday surged to a new peak at Rs 16,349 per 10 gram in futures trade, as traders increased their exposure in the precious metal following melting stock and forex markets.

The metal, which had been on a record-setting spree for the last one week, spurted to an all-time high of Rs 16,349, by adding 2.55% on the Multi Commodity Exchange, as funds preferred to park their funds in gold amid deepening global recession.

The August contract for gold climbed 2.55% to touch Rs 16,349 per 10 gram. It clocked two lots.

The bullion market received a major booster from the firming global trend as the gold in the US markets surged to 1,007.20 dollar an ounce last night.

"Funds around the world indulged in picking gold as a safe investment during current financial turmoil," said Galipelli Harish, head of research with Karvy Comtrade.

The firmness was also witnessed in spot market as gold prices climbed much close the market expectations of Rs 6,000 per 10 gram in all domestic bullion markets.

In Delhi, the metal traded at Rs 15,750, in Chennai at Rs 15,775 per 10 gram, respectively.

Buying by jewellers and retail customers almost dried up at existing higher levels, said a Delhi-based jeweller Rakesh Anand.

Soruce:http://timesofindia.indiatimes.com/Business/India-Business

Principal Pnb changes asset allocation of Ultra Short Term Fund

Principal Pnb Mutual Fund has announced changes in asset allocation pattern of Principal Ultra Short Term Fund (PUSTF) with effect from March 24, 2009. The scheme accordingly will invest its entire corpus in debt instruments as well as money market instruments with low to medium risk profile.

The scheme would invest in such instruments, which have an average maturity of upto one year. The amount of investment in securitised debt may be upto 50% of the net assets of the scheme. It may also invest upto 50% of net assets of the scheme in such derivative instruments. However, the fund's existing asset allocation pattern is as follows:- The scheme invests 50%-100% of net assets in the fixed rate debt instrument as well as money market instruments while 50-100% in floating rate debt instruments and money market instruments.

Principal Pnb changes asset allocation of Ultra Short Term Fund

Principal Pnb Mutual Fund has announced changes in asset allocation pattern of Principal Ultra Short Term Fund (PUSTF) with effect from March 24, 2009. The scheme accordingly will invest its entire corpus in debt instruments as well as money market instruments with low to medium risk profile.

The scheme would invest in such instruments, which have an average maturity of upto one year. The amount of investment in securitised debt may be upto 50% of the net assets of the scheme. It may also invest upto 50% of net assets of the scheme in such derivative instruments. However, the fund's existing asset allocation pattern is as follows:- The scheme invests 50%-100% of net assets in the fixed rate debt instrument as well as money market instruments while 50-100% in floating rate debt instruments and money market instruments.

Fortis MF launches FTP-Series 14 C

Fortis Mutual Fund has launched initial offer period of Fortis Fixed Term Plan - Series 14 C on February 19, 2009. The new issue will be closed for the subscription on March 16, 2009. The NFO price for the fund is Rs 10 per unit. The scheme offers two plans- regular as well as institutional plan and along with this will have two sub-options of growth and dividend options. The dividend option offers dividend payout and dividend reinvestment facilities.
Under the regular plan, the minimum amount of investment is Rs. 5,000 and in multiples of Rs 10 thereafter. While under the institutional plan, the minimum amount of investment is Rs. 25 lakh and in multiples of Rs 10 thereafter.

Fortis Mutual Fund is a close-ended income scheme with an objective to achieve growth of capital through investments made in a portfolio of fixed income securities maturing on or before the maturity of the scheme.

Oil falls below $39, reversing big gain overnight

SINGAPORE: Oil prices fell below $39 a barrel Friday in Asia as investor concerns about weak crude demand lingered after lower-than-expected inventory numbers sparked a big gain overnight.

Light, sweet crude for March delivery fell 63 cents to $38.85 a barrel by midday in Singapore on the New York Mercantile Exchange. The contract on Thursday surged $4.86, or 14 per cent, to settle at $39.48.

Most trading volume was with the April contract, which fell 68 cents to $39.50 after jumping $2.77 to settle at $40.18.

The jump in prices on Thursday was fueled by an Energy Information Administration report that showed crude stocks decreased 200,000 barrels for the week ended Friday.

Analysts had expected stocks to grow by 3.5 million barrels, according to Platts, the energy information arm of McGraw-Hill Cos. Inventories have risen more than 30 million barrels in the prior six weeks.

The report's four-week moving average showed that gasoline consumption rose 0.8 per cent.

But investors were skeptical of a sustained recovery in crude demand.

``It was a significant move last night, but there's not much out there that can create a bullish story,'' said Toby Hassall, an analyst with Commodity Warrants Australia in Sydney. ``The demand outlook is very weak, and there's nothing to suggest that it will improve in the near term.''

Some evidence from Thursday suggested demand remained weak. The Department of Transportation said Thursday that motorists drove 3.8 billion fewer miles in December than they did a year earlier. The 1.6 per cent decline in driving marks the 14th consecutive month of declining driving with the decline totaling 115 billion miles.

Rising U.S. joblessness continues to drag on demand amid the worst recession in decades. The Labor Department said Thursday that the number of unemployed workers receiving unemployment benefits jumped to an all-time high near 5 million, while new jobless claims remain well above 600,000.

Crude investors look to stock markets for sense of overall sentiment on the economy, and the Dow Jones industrial average fell to a six-year low Thursday, sliding 1.2 per cent. Most Asia stock index also fell at the open on Friday.

The Organization of Petroleum Exporting Countries has pledged to cut 4.2 million barrels a day since September, and the group's leaders have said recently they may reduce output more at a meeting on March 15.

Investors have so far brushed off OPEC supply cuts, sending prices down about 73 per cent from a record 147.27 in July.

``What OPEC is encountering is a very significant drop in demand in the last six months,'' Hassall said. ``Another big cut might support prices, but they're mindful that they don't want a surge in prices to slowdown a recovery.''

In other Nymex trading, gasoline futures fell 2.36 cent to $1.08 a gallon. Heating oil dropped 1.83 cents to $1.19 a gallon, while natural gas for March delivery was steady at $4.08 per 1,000 cubic feet.

In London, the March Brent contract fell 48 cents to $41.51 on the ICE Futures exchange.


Soruce:http://timesofindia.indiatimes.com/Business/Oil-falls-again-below-39/articleshow/4158590.cms

Sensex closes above 9000; IT, auto gain

MUMBAI: Indian equities ended choppy session on a higher note led by gains in IT and auto space. Capital goods, realty and banking sectors ended subdued.

Bombay Stock Exchange’s Sensex ended at 9043.56 up 28.38 points or 0.31 per cent. It touched an intra-day low of 8977.66 and high of 9111.95.

National Stock Exchange’s Nifty closed at 2789.35, up 13.20 points or 0.3 per cent. The index touched an intra-day low of 2767.60 and high of 2802.15.

Broader markets ended little changed. BSE Midcap Index was down 0.19 per cent and BSE Smallcap Index edged 0.37 per cent lower.

Amongst the sectoral indices, BSE IT Index was up 2.34 per cent and BSE Auto Index moved 0.83 per cent higher. BSE Capital Goods Index fell 0.99 per cent and BSE Realty Index declined 0.77 per cent.

Biggest Sensex gainers were Wipro (5.67%), Grasim Industries (2.52%), Infosys Technologies (2.4%), Maruti Suzuki (2.27%) and Reliance Infrastructure (2.1%).

Hindalco Industries (-2.89%), ACC (-2.29%), ICICI Bank (-2.21%), Larsen & Toubro (2.16%) and DLF (1.89%) were the losers.

Market breadth on BSE was negative with 1287 declines against 1085 advances.

Source:http://timesofindia.indiatimes.com/default1.cms

Sensex gains 96 pts in early trade on short-covering

MUMBAI: The benchmark Sensex rose by over 96 points in the opening trade on Thursday after sliding for three straight sessions, on covering up short positions by speculators and selective buying by funds.

The Bombay Stock Exchange barometer gained 96.77 points to 9,111.95 with the banking, realty and metal sector stocks leading the recovery in early trade. The 30-share index had lost nearly 620 points in the previous three sessions.

The broad-based National Stock Exchange Nifty gained 26.00 points to 2,802.15.

Stock brokers said apart from short-covering by speculators, emergence of buying by funds as well as retail investors at prevailing prices, helped sentiments to improve to some extent.

They said banking stocks were in some demand on expectations of a cut in interest rates by the central bank.

Among banking stocks, state-run SBI traded 1.61 per cent higher to Rs 1,088.05, ICICI Bank by 2.27 per cent to Rs 377.75, HDFC Bank by 1.02 per cent to Rs 885.50.

Other gainers which also supported the Sensex were Reliance Industries by 0.82 per cent to Rs 1,305.40, Tata Steel by 2.37 per cent to Rs 175.10, Sterlite Industries by 1.85 per cent to Rs 259.10, Larsen and Toubro by 1.06 per cent to Rs 661 and Infosys by 0.52 per cent to Rs 1,184.90.

Stocks of realty giant, DLF Ltd, were up 1.20 per cent to Rs 160.60.

Soruce: http://timesofindia.indiatimes.com/Business/Sensex-gains-96-pts-in-early-trade/articleshow/4153288.cms

Gold crosses Rs 15,500-level in early trade

MUMBAI: Gold prices crossed Rs 15,500-level in the early trade on the bullion market here on Wednesday on persistent safe-haven buying triggered by overnight rally in New York market.

The world wide recession mainly pushed up the gold prices in global market as investors preferred to park their funds in this metal as a risk free, a dealer said.

Gold futures rose to their highest level in seven months, near $970 an ounce, as investors seeking a safe-haven against economic troubles.

Gold for February delivery rose by $25.50 an ounce to $967.00 on the Comex Division the New York Mercantile Exchange.

Turning to the local market, standard gold (99.5 purity) rallied by Rs 315 per ten grams to resume at Rs 15,545 as against yesterday's highest closing level of Rs 15,230.

Pure gold (99.9 purity) also rose to Rs 15,605 from Rs 15,295 on Tuesday.

Silver ready (.999 fineness) firmed by Rs 835 per kilo to Rs 23,150 from Rs 22,315 previously.


Soruce:http://timesofindia.indiatimes.com/

Sensex dips below 9,000 level; down 112 pts in early trade

MUMBAI: The benchmark Sensex lost another 112 points in early trade on Wednesday, extending weakness for the third session in a row, on heavy selling by funds, taking cues from melting global markets on worsening economic situation.

The Bombay Stock Exchange index, which had lost nearly 600 points in the past two sessions, moved further down by 112.69 points to 8,922.31 in early trade with stocks of the realty, banking and metal sectors suffering major losses.

The 50-share National Stock Exchange Nifty also lost 33.85 points to 2,736.65.

Stock brokers said selling pressure gathered momentum in line with weakening trends in the global markets and lacklustre interim budget on Monday, which failed to provide any major booster to revive the economy.

Major losers, which dragged the Sensex down, are DLF Ltd that fell by 1.52 per cent to Rs 145.60, SBI by 0.41 per cent to Rs 1,095.45, ICICI Bank by 1.53 per cent to Rs 380, HDFC Ltd by 2.28 to Rs 1,399.80, Sterlite Industries by 0.16 per cent to Rs 253.30, BHEL by 0.37 per cent to Rs 1,376 and Grasim Industries by 1.52 per cent to Rs 1,308.

Soruce: http://timesofindia.indiatimes.com/

Sensex nudges 9000 as weakness persists

MUMBAI: Indian equities fell sharply for a second consecutive session Tuesday, wiping out the gains recorded in the five-day run ahead of the interim budget. But with vote-on-account offering little to corporate India, the across-the-board selloff sparked Monday spilled over to today as well. Global markets were also under pressure on account of renewed financial concerns, which further affected sentiment.

Another worry is a likely downgrade of India's sovereign by rating agencies over the government’s deteriorating finances. In the interim budget, acting Finance Minister Pranab Mukherjee revised the Centre's fiscal deficit to 6 per cent of GDP for the current fiscal against earlier projection of 2.5 per cent.

Standard & Poor's has said it would monitor fiscal deficit among other factors to review India's sovereign ratings which currently stands at the lowest investment grade. If India's rating is downgraded, it will significantly raise the cost of borrowing for Indian firms in global markets.

At close today, National Stock Exchange's Nifty was at 2770.50, down 78 points or 2.74 per cent. The broader index recovered from an intra-day low of 2757.30. Bombay Stock Exchange's Sensex ended at 9,035, down 270.45 points or 2.91 per cent. The index broke the crucial support of 9000 to hit an intra-day low of 8994.34 but crawled back as some buying emerged at lower levels.

"The market is moving sideways in a narrow range of 2750-2950 (on Nifty) for the past few sessions. The index needs to successfully break out on either side for a decisive trend. The global trend continues to be negative and the Dow has breached its crucial support of 8000. With the budget now out of the way, the Indian market will have to rely on the global markets. However, there are no positive signals emerging overseas and some more pain is likely," said Neera Jain, chief technical analyst, CRNIndia.com.

Significant losses in Tata Steel (-6.74%), ICICI Bank (-5.69%), DLF (-5.19%), Mahindra & Mahindra (-5.01%) and Hindalco Industries (-4.74%) dragged the key indices lower. ITC, which ended with fractional gains, was the lone gainer in the 30-share index.

There was no respite for the midcap space either. The broad-based selloff shaved 2.31 per cent off the BSE Midcap Index and 2.35 per cent from the BSE Smallcap Index.

Sectorwise, realty was the worst hit, followed by consumer durables, banking and the metal space. Market breadth on BSE remained extremely weak through the day with 1,722 declines outnumbering 682 advances.

Meanwhile, world stocks fell to a two-week low as concerns about economy and corporate profits intensified. Among European markets, the FTSE 100 lost 1.49 per cent, DAX 30 fell 1.49 per cent and CAC 40 was down 1.76 per cent. In the Asia-Pacific, the Nikkei dropped 1.5 per cent, Hang Seng tumbled 3.79 per cent, Straits Times declined 2.5 per cent and S&P/ASX was down 1.5 per cent.

Soruce: http://sports.timesofindia.indiatimes.com

Market extends loss on concern of interim budget outlay: Sensex below 9,400 mark

Date : Feb-16-2009 13:31

Market extended loss as investors are not sure whether the interim budget would live up to the expectation for a stimulus plan. The nervousness was seen into couple of heavy weight stocks on the back of concern of weakening economy. Further, most Asia-pacific markets were trading lower, after data revealed Japan’s economy shrank as recessions in the US and Europe triggered a record dip in exports.

On the sectoral front, traders off-loaded position across the sectors. Banking stocks fell on weak sentiment for financial sector stocks globally. Realty stocks declined on fear that interim budget may not include sops to the housing sectors. Textile stocks advanced on hopes the government may unveil some sops in the interim budget to revive the troublesome sector. Tyre stocks fell on reports the government has started issuing licenses to allow import of truck and bus radial tyres.

The market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,261 stocks traded so far, 771 shares advanced while 1,407 shares declined. Nearly 83 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 299.63 points at 9,335.11 and NSE Nifty is down by 91.50 points at 2,856.85.

The BSE Mid Cap is trading lower by 65.44 points at 2,947.51 and Small cap is trading down by 49.04 points at 3,346.53.

Losers from the BSE Sensex pack are Jaiprakash Associates plunged by 7.15% to Rs. 70.10 along with Reliance Infra down by 5.82% to Rs. 536.15, State Bank of India by 5.07% to Rs. 1,133.50, R. Com by 5.04% to Rs. 172.50, Larsen & Toubro by 5.01% to Rs. 666.00, Sterlite Ind 4.65% to Rs. 262.70, Reliance Industries fell 4.53% to Rs. 1,328.00, ICICI Bank by 4.45% to Rs. 415.00, Tata Steel by 4.35% to Rs. 185.70 and BHEL by 4.30% to Rs. 1,403.75 among others.

The BSE Realty index is lower by 71.64 points or 4.50% at 1,520.72. Stocks trading in red are Indiabulls Realty by 7.75% to Rs. 100.65, Unitech by 5.49% to Rs. 30.10, Housing Dev by 4.39% to Rs. 83.80, Ansal Infra by 4.07% to Rs. 28.25, DLF by 3.24% to Rs. 155.40 and Orbitco by 1.64% to Rs. 54.10 among others.

Reliance Communication fell 5.04% to Rs. 172.50 as it reportedly entered into a Rs. 50 crore deal with US-based Ditech Networks to deploy the latter`s voice enhancement solution on its recently unveiled GSM network.

Reliance Industries fell 4.53% to Rs. 1,328.00 on profit booking.

NTPC fell 1.80% to Rs. 179.60 as it entered in to an MOU with Nuclear Power Corporation of India (NPCIL) and formed a joint venture company for setting up Nuclear Power Projects.

Cairn India fell 1.83% to Rs. 161.00, despite crude oil prices spurted 10% on the New York Mercantile Exchange on Friday, 13 February 2009.

Satyam Computer Service spurted 3.89% to Rs. 48.10 after the stock market regulator relaxed takeover rules in certain conditions, which should make it easier for fraud-hit Satyam Computer to find a buyer.

Bartronics India jumped 8.40% to Rs. 83.25, after the company said it secured a project from the Municipal Corporation of Delhi for setting up 2000 kiosks.

Jain Irrigation Systems surged 0.32% to Rs. 377.00, on signing a pact with National Bank for Agriculture and Rural Development for village development programme in Maharashtra.

Titagarh Wagons tumbled 8.93% to Rs. 209.70, after the stock rose almost 40% in a run up to interim railway budget that held on Friday, 13 February 2009.

Govt may peg fiscal deficit at 5% to battle slowdown

Date : Feb-16-2009 11:05
The interim budget by the UPA government is likely to step up the expenditure on its flagship programmes along with rural development and housing that doubling the fiscal deficit to 5% in 2009-10. The interim budget is to be presented by External Affairs Minister Pranab Mukherjee who is currently holding the charge of Finance Ministry. The government in the last Budget has fixed the fiscal deficit for the current fiscal at 2.5 per cent of GDP, which is likely to be raised to 5 per cent for the next fiscal, primarily on the back of higher allocations towards the government''s flagship schemes like the Bharat Nirman and the National Rural Employment Guarantee Scheme.

The government to provide focus on the urban infrastructure may expand the ambit of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to include more districts. Besides this, the other focus of the Budget is likely to be on rural development which may witness some more allocations. The interim Budget may also provide a token allocation for kick starting the Unique Identification (UID) scheme to provide a specific number to every citizen.

In line with this, the infrastructure finance company IIFCL may be authorized to raise money through tax-free bonds. With the last two-stimulus package announced by the government due to slowdown, the fiscal deficit has already crossed four per cent till December. The total gross budgetary support (GBS), which represents the expenditure towards Plan schemes and transfer of resources to states, may be increased.

New IT policy by March-end

Date : Feb-13-2009 10:45

The State Government of Karnataka will come out with a new information technology (IT) policy by March-end, said Katta Subramanya Naidu, Minister for IT has said. While speaking at a meet-the-press programme here on Thursday, he said: "I will discuss the pros and cons of the draft policy with a team of experts before placing it before the Cabinet for approval."

He added that the global recession has impacted the IT&BT sector, and hence there is a need to review the policies. However, the new IT policy seeks to set up innovation hubs in satellite towns, offering concessions in power supply to house small as well as medium enterprises. The policy also envisages VAT reduction on a wide range of IT products, besides halving the stamp duty on setting up IT industries in Bangalore and 100 per cent exemption in Tier II and Tier III cities. Besides this, a land bank will be created in and around Bangalore and other IT destinations in the State to offer companies land either on lease or outright sale for start-ups.

The Minister also said that the policy also proposed to bring down charges of police charges to Rs. 500 from Rs. 3,000 for the verification of antecedents of local individuals seeking blue-collared jobs in the IT sector.

UK bank spent 200m pounds on Sachin, other stars: Report

LONDON: The Royal Bank of Scotland blew up as much as 200 million pound on top sports stars, including Indian cricket maestro Sachin Tendulkar, under the bank's former chief executive Fred Goodwin, media report said.

"Royal Bank of Scotland (RBS), bailed out with billions of pounds of taxpayers money, hired top sports stars on "reckless" contracts to entertain clients as part of a 200 million pound sponsorship binge," the Sunday Times said.

Sir Fred Goodwin, the bank's former chief executive, agreed contracts of up to five years just weeks before he was ousted last October, the Sunday Times said adding that "Sachin Tendulkar, the Indian cricket hero, signed a five-year deal just weeks before Goodwin was ousted."

RBS, which announced a 28 billion pound loss last month, the biggest in British commercial history, said it was obliged to honour deals agreed under Goodwin.

This news follows a row over RBS's plan to defy public opinion by paying almost one billion pound in bonuses.

Reacting to this John Mann MP, a member of the Treasury select committee, said: "They (RBS) have been reckless yet again. This doesn't seem to be a bank that could do anything in moderation. It now needs to realise the golden days are over."

Soruce: http://timesofindia.indiatimes.com/Business/RBS-spent-200m-on-Sachin-stars/articleshow/4132434.cms

Industry disappointed, says interim budget a non-event

NEW DELHI: India Inc gave a thumbs-down to the interim budget 2009-10, proposed by Finance Minister Pranab Mukherjee, saying it is a non-event and more of a political statement.

"It was completely (a) non-event. It was (more a) political statement than (an) interim budget. There was nothing for any sector, forget about real estate," Parsvnath Developers Chairman Pradeep Jain said.

Expressing similar sentiments, Kotak Mahindra Bank Managing Director Uday Kotak said, "Acting finance minister Pranab Mukherjee has stuck to what is good convention."

TCS ED and CFO S Mahalingam said there were two stimulus packages given in the past couple of months and they were going to stay as they were. "I am disappointed," he added.

Stating that the government did not have much of a choice, Hinduja Group CFO Prabal Banerjee said: "They did what they could best do."

Soruce: http://timesofindia.indiatimes.com/Industry-disappointed-says-interim-budget-a-non-event/articleshow/4135924.cms

Railways earnings go up by 13.17%

Date : Feb-12-2009 10:46
The railways earnings between April 2008-January 2009 stood at Rs 64,876.34 crore as compared to Rs 57,327 crore in the corresponding period last fiscal registering a growth of 13.17 per cent. In line with this, the total goods earnings have gone up to Rs 44,016.26 crore during April to January this fiscal as against Rs 38,734.12 crore for the same period last fiscal, posting a growth of 13.64 per cent.

The total passenger earnings during the period stood at Rs 18,042.82 crore from Rs 16,134.94 crore during the same period last fiscal, registering a growth of 11.82 per cent. The earnings from other coaching were Rs 1639.42 crore during the period compared to Rs 1539.31 crore during the same period last fiscal, an increase of 6.50 per cent. The total sundry earnings grew to Rs 1,177.84 crore from Rs 918.63 crore during April-January 2008, showing an increase of 28.22 per cent.

Reliance announces change in SIP registration process for new investors

Date : Feb-12-2009
Reliance Mutual Fund has announced the change in the Systematic Investment Plan (SIP) registration process for the new investors, with effect from February 11, 2009. For the new investors an additional feature has been decided to introduce wherein the investors can start an SIP directly without any initial investment. In line with this, the investors in this option can submit the application for SIP on any working day but the subsequent installment date of SIP shall be 2nd/ 10th / 18th /28th with a minimum gap of at least 21 working days between the submission of application form and the 1st SIP as may be specified by RCAM from time to time. The subsequent installments should have a gap of atleast a month or a quarter depending upon the frequency chosen. If the installments date is a non-working day for the scheme then the units shall be allotment on the next working day. The said feature shall be made available in all the schemes where as the SIP facility is available as per the offer document/scheme information document/addendum of Reliance Mutual Fund.

Sensex gains 169 pts on interest rate cut hopes

MUMBAI: Snapping a two-day falling streak, the Bombay Stock Exchange benchmark Sensex on Friday gained nearly 169 points on fund-based buying in bluechip stocks led by metals, banks and auto firms on hopes of interest rate cuts.

The Sensex, which remained weak in the last two trading sessions, bounced back by 168.91 points at 9,634.74 as major banking stocks surged on expectations that the central bank may cut interest rates to boost growth. The key index touched the day's high of 9,695.59 and a low of 9,540.60 points.

Similarly, the 50-share National Stock Exchange index Nifty rose 55.30 points to 2,948.35. It moved between 2,969.75 and 2,896.85 points.

Trading sentiment turned bullish after inflation figures on Thursday showed a one-year low, prompting speculation that borrowing costs will be lowered as industrial output declined in December.

The market also propped up on hopes of fiscal incentives in the interim budget on Monday, earning index-heaviest Reliance Industries handsome gains.

State Bank of India, the largest, PSU bank and a member of the Sensex group, rose to a month's high. HDFC Bank and ICICI Bank, two Sensex constituents, further fuelled the uptrend by recording fresh gains.

Source; http://timesofindia.indiatimes.com/Business/Sensex-up-169-pts-to-close-at-963474/articleshow/4124869.cms

Nokia to unveil app store, E75

HELSINKI: The world's top cellphone maker Nokia will unveil its new application store next week, hoping to follow the runaway success of Apple's App Store, two industry sources told Reuters.

One of the sources also said Nokia would unveil a new E75 cellphone model at the Mobile World Congress trade show in Barcelona. The phone, already on sale on the website of online retailer Expansys, will be available next month in Britain.

The smartphone, with a sideways slide-out full keyboard, will sell for 390 pounds ($563.6), while with an operator contract it will be free in Britain.

Nokia promised in early December to launch 'soon' its own download store, as the Finnish firm merges its current software Download store with free media sharing site Mosh and widget service WidSets.
"This will provide consumers an easy way to get mobile media for their device," Nokia said in December.


Soruce: http://infotech.indiatimes.com/News/Nokia_to_unveil_app_store_E75/articleshow/4123670.cms

Gold at record high of Rs 14,900 on marriage demand

NEW DELHI: Maintaining its record making spree, gold on Thursday scaled a new high of Rs 14,900 per 10 gram on the bullion market here on aggressive buying by jewellers amid firming trend in the global markets.

Gold prices spurted by Rs 350 to close at record Rs 14,900 per 10 gram.

Marketmen said heavy buying by jewellery fabricators to meet the marriage season demand pushed up the gold prices. A significant support from the overseas markets where gold rose to 948.60 dollar an ounce, a level never seen before July 23, also support the trend, they added.

Gold prices in overseas markets, which set trend in domestic markets, climbed in day-to-day trading on fears that US government's rescue plan may not revive the economy.

"Presently, there is investment buying at existing higher levels joined by actual users for the marriage season," All India Sarafa Bazar president Sheel Chand Jain said.

There were several positive factor behind the current rally and the precious metal climbing in the futures market remained additional boosting reason, Rakesh Anand, a Multi Commodity Exchange trader, said.

The weakening equity and forex markets left no other option for investors but to buy gold, he added.

Source: http://timesofindia.indiatimes.com/Business/Gold-at-record-high-of-Rs-14900/articleshow/4118227.cms

Industrial growth turns negative by 2%

NEW DELHI: After October, industrial growth has turned negative again in December, by 2% over the year-ago period.

Earlier, minister for external affairs Pranab Mukherjee said the Indian economy will grow by 7 per cent this fiscal even as recent projections by global agencies like the International Monetary Fund (IMF) say that advanced countries' economies would shrink by 2 per cent.

"I am proud to say that in 2008-09 India will still grow by 7 per cent," said Mukherjee while addressing the 81st annual general meeting of the Federation of Indian Chambers of Commerce and Industry (FICCI).

He referred to the latest projections for growth by IMF that says advanced countries would shrink by 2 per cent.

However Mukherjee also said that it was not going to be a smooth ride for India.

"India faces a special challenge from the international financial crisis. In a globalised economy while India cannot be immune to the impact of the crisis, we have to address this on many fronts," he said.

Maintaining that the government would be looking at several avenues to spur growth, Mukherjee said: "There is a need to sustain our foreign trade, revive foreign investment and generate domestic demand in order to maintain our growth rate which is essential to the uplift of the multitude below poverty line."

"India remains committed to work with its friends including the G20 for devising a new global financial structure," he added.

Soruce: http://timesofindia.indiatimes.com/Industrial_production_down_by_2/articleshow/4116900.cms

Govt may announce export sops in interim budget

Date : Feb-07-2009 12:54
The government will take further steps to ensure that labour intensive sectors are less adversely affected, said Pranab Mukherjee, the External Affairs Minister, who is also holding the charge of the finance portfolio.

The biggest beneficiaries are likely to be the export-oriented units. However, on the taxation front, the focus are going to be the indirect taxes and the export sops are being mulled. The extension of tax relief for export oriented units as well as the software technology parks are also on the cards. Besides this, on the expenditure side, the spending on schemes like the ''sarva shiksha abhiyan'' and mid day meal may see growth of 20 per cent.

Bank credit growth rate is in good health: RBI

Date : Feb-07-2009 13:04
The Reserve Bank of India on Feb 6 said that the credit growth in the banking system is good and the lenders need to enhance their disbursals of loan to the productive sectors to support the growth.

RBI Deputy Governor Usha Thorat said, we are seeing a growth in credit. RBI has cut its rates and taken other steps to improve the liquidity conditions in the system ... there is a need to ensure adequate credit flow to priority segments. We need to see how things pan out. Apart from this, she also said rather than relaxing the NPA norms, the banks should be given time to restructure their MSME (micro, small and medium enterprises). Along with this, the banks need to ensure the credit quality while lending.

The RBI in order to improve the liquidity along with to ease the bank lending rates has slashed its the CRR to 5 per cent followed by repo rate to 5.5 per cent and reverse repo rate to 4 per cent, since October. The monetary actions by RBI were intended to the ensure adequate credit-flow to productive sectors, Thorat said. Besides this, she also said that the banks need to enhance their operations in the rural sector.

Impact of economic meltdown less severe in India: ILO

Date : Feb-09-2009 13:29
The impact of economic downturn in India and South Asian countries would be less severe as they are less exposed to the economy of US and the financial market, said Duncan Campbell, Director of ILO''s Department of Economics and Labour market analysis. He also said that India should focus on imparting education to continue its future growth. In India in fact, only education can ensure the equal distribution along with access to economic opportunities and brisk growth path for everyone. He said that India''s rural employment guarantee scheme (NREGA) was helping India in reducing the poverty in rural areas.

Besides this, he also said "The time for India is to look inwards. Though it has achieved considerable reduction in the level of acute poverty, the economic crisis can result in increase in levels of working poverty in India,".

"Recession is an opportunity for India to rethink the structure for future and the future for India is in green jobs. We are in consultation with ministries of Environment and Forest, Medium and Small Industries, Labour and Employment, Agriculture and others to arrive at certain common policy platforms on this," Campbell said.

NASSCOM Releases Indian IT Software and Services Trends for 2009

NASSCOM released the performance for FY 2008-09, for the Indian IT Software and Services sector. According to the findings, the aggregate revenues of the sector are expected to reach USD 60 bn (including domestic revenues, excluding hardware) by FY 09. Besides this, the export revenues for the Indian IT-BPO industry (excluding domestic market and hardware exports) in FY09 is expected to registered growth of 16-17% and clock revenues of USD 47 bn in 2008-09.

According to Dr. Ganesh Natarajan, Chairman, NASSCOM and Global CEO, Zensar Technologies said, "2008-09 has been challenging for economies across the globe, however the Indian IT-BPO industry has exhibited a balanced growth. The Indian IT-BPO industry is a major contributor to the economy and has a multiplier effect in terms of export earnings, investment, employment and overall economic and social development. We are hopeful that the government will continue to recognize the contribution of this sector and will stimulate investor confidence and growth by extending fiscal incentives to this industry and boosting domestic IT spend through the allocated IT budgets."

"We have seen Europe, Asia Pacific and rest of the world grow more than US, reaffirming geographical diversification as an encouraging trend for this industry. In the last year we have seen an increase in the global footprint of the Indian industry, which now has over 400 delivery centres across 52 countries. This strategy of geographical diversification will also help the industry take forward its competitive edge. In the next 20-24 months, we see a strong focus by organizations on productivity, benchmarking, and enhanced operational efficiencies. From a customers'' point of view, the focus will remain on consolidation, integration and regulation - all of which will drive newer business opportunities for the industry."

Mr. Som Mittal, President, NASSCOM said "Due to our strong fundamentals and as a derivative of the value we add to our global customers, the Indian industry will continue to grow inspite of global slowdown. Besides cost savings, customers derive great value from transformation of processes, access to critical resources, quality trained workforce and reduced reaction time, from the Indian industry. India offers the best solution to manage resources and IT budgets and improve competitiveness, even in today''s difficult environment. However, factoring the impact of the global economic crisis in the second half of 2008-09, the industry is expected to grow by16-17% by March 2009. Despite an uncertain economic environment, the Indian IT-BPO industry will see sustainable growth over the next two years and our estimates indicate the industry will clock revenues of USD 60-62 billion by FY 11."

Edserv Softsystems opens for subscription

Mumbai: Edserv Softsystems Ltd, an e-learning company is is entering the capital market after a long respite. Recently Gemini Engi-Fab Ltd has cancelled its issue due to bleak economic outlook and directionless secondary market, whose IPO was to open on Feb 3.
Edserv's initial public offering of Rs 39.7 lakh equity shares opens on February 5. The price will be decided through 100% book-building process. The company has fixed a price band of Rs 55-60 per share of face value Rs 10 The issue closes on February 9. The company plans to rise between Rs 23.8 crore and Rs 21 crore to expand humanware education & deployment system business up to 200 centers.

The issue has received poor grading of 'grade 1' from rating agency CARE. After the issue the promoters holding will come down to 61% from 91.2%. Qualified institutional buyers will be allotted 50% of the issue, institutional investors 15% and the remaining 35% will be allotted to the retail investors. The company has reserved 2 lakh shares for the employees.

Wipro eyeing European buyouts

PARIS: India's No. 3 software services exporter, Wipro Ltd, which has a cash chest of $500 million, is looking for acquisition opportunities, notably in Europe, its chairman and founder told French daily Les Echos.

Azim Premji said in the interview that he was eyeing "a few acquisition opportunities, notably in Europe in software or services companies with a revenue of at least $100 million.”

Wipro, which wanted to generate 40 per cent of its revenue in Europe within three years, planned to beef up its positions in France and Germany, he said.

The company recently reported its third quarter results with a 8.7 per cent rise, but gave a muted forecast due to the global economic downturn and growing pressure from Western clients to cut its fees.

The company forecast its information technology services revenue, including revenue from its acquisition of Citi Technology Services, at $1.05 billion in the March quarter, down 7 per cent from $1.13 billion in October-December.

Wipro, which counts Citigroup, Credit Suisse and Cisco among its clients, said net profit rose to Rs 8.98 billion ($183 million) in October-December under US accounting rules, up from Rs 8.26 billion a year ago.

“Our price realisation improved sequentially in constant currency through higher productivity, while absorbing impact of lower working days during the quarter," executive director and chief financial officer Suresh Senapaty said in a statement.

Total revenue rose 25 per cent to Rs 65.4 billion, as its IT services business added 31 clients during the December quarter. Its margins during the quarter were impacted by 60 basis points due to one-time provision of receivables from a large customer, he said.

Source: http://infotech.indiatimes.com/News/Internet/articlelist/2689148.cms

Markets open higher; Sensex, Nifty up 0.5%

MUMBAI: Key indices opened higher on Monday riding on positive cues from global shores buoyed by expectations from the US stimulus package.

Bombay Stock Exchange's 30-share Sensex rose 58 points or 0.42 to 9359. National Stock Exchange's benchmark Nifty climbed 13 points or 0.5 to 2856 from its previous close.

US stocks rallied for a second day on Friday on hopes Washington's stimulus package and a bank rescue plan will bolster the ailing economy, even as data showed the biggest one-month job losses in 34 years.

The Dow Jones Industrial Average rose 217.52 points, or 2.70%, to 8,280.59. The Standard & Poor's 500 Index gained 22.75 points, or 2.69%, to 868.60. The Nasdaq Composite Index was up 45.47 points, or 2.94%, at 1,591.71.

Asian stocks rose for a second day on expectations a surge in unemployment will push the US to expedite recovery plans, and after Japanese domestic machinery orders beat some economists' estimates. The Nikkei rose 0.5%, Topix climbed 0.2%, Hang Seng advanced 0.93% and China's CSI 300 surged 2%.

Back home, the National Stock Exchange will kick off the cross-margin facility across the cash and derivatives segments across all categories of market participants from Monday.

The facility will allow the market participants to see their overall position as a basket of cash and derivatives positions as against the existing practice of treating the cash & derivatives positions separately.

http://economictimes.indiatimes.com

First optical fibre link between India, Myanmar opened

Mandalay (Myanmar), Feb 9 (PTI) India and Myanmar today operationalised their first optical fibre telephone link, a USD seven million state-of-the-art network that will bring the two countries closer and give a boost to bilateral economic cooperation.

Watched by Vice President Hamid Ansari, Myanmar's Communication Minister Brig Gen Thein Zaw made the first call to Indian Telecom Minister A Raja in New Delhi, applauding the quality of the project funded by India and executed by public sector Telecommunications Consultants India Limited (TCIL).

The high-speed broadband link for voice and data transmission connects Mandalay, Myanmar's second most important commercial hub after Yangon, and the border town of Moreh in Manipur.

The two towns are separated by a distance of 500 km.

TCIL Chairman-cum-Managing Director Rakesh K Upadhyay later told PTI that the call rates between India and Myanmar are bound to fall sharply with the installation of the optical fibre link between Mandalay and Moreh.

Myanmar announced it was planning to construct optical fibre network in the entire area along its border with India which could then have another direct link also with China, Laos and Thailand.

Source: PTI

Private airline not submitting TDS to govt’

BANGALORE: In a path-breaking investigation, with all-India ramifications, sleuths from the Income Tax department (Bangalore circle) have found that a private airline had not remitted to the government a part of the tax it has been deducting at source for over the past eight years. The TDS default and the interest on it amounts to around Rs 37 crore.

Taking a cue from this investigation, the IT department has now initiated a survey into the accounts of all the airlines in the country.

The investigation — conducted by Pradeep P Aspatwar, assistant commissioner of income tax (TDS), Bangalore, last year — has been adjudged one of the 10 best cases of TDS order and survey conducted across the country. It was presented the appreciation award by the finance ministry in Delhi on Wednesday. Since 2001, the airline has been deducting tax at source on payments of salaries, interest, rent, professional fees and payments made to the contractors. However, this money had not been remitted to the government account.

The account statements of the airline were taken up by Aspatwar for investigation. A 15-day audit revealed that company had been defaulting for eight years. The company had evaded TDS remittance of around Rs 18.5 crore. This attracted an equal interest of Rs 18.5 crore, bringing the amount due to Rs 37 crore. Notices have been served on the airline for non-remittance of tax to the government under Income Tax Act, TDS provisions.

Source: http://timesofindia.indiatimes.com/Business/Private_airline_not_submitting_TDS_to_govt/articleshow/4090513.cms

Kiran Karnik appointed Satyam chairman

NEW DELHI: Kiran Karnik has been appointed chairman of the board of fraud-hit Satyam Computer Services, a day after the firm appointed its new chief executive, corporate affairs minister Prem Chand Gupta said on Friday.

He also said the government's probe had extended to cover 325 companies and 25 individuals linked to Satyam, as well as auditor Price Waterhouse.

The minister also said there was nothing wrong in Satyam's new CEO A S Murty selling about 40,000 shares of the company days ahead of an acquisition announcement.

"What's wrong in that... even if you have shares, you will sell them," Gupta told reporters here.

The minister was replying to a query whether sale of shares by Murty, between December 12-16, 2008, was a matter of concern and could have been a case of insider trading as the sale preceded an abortive acquisition deal —now at the centre of the accounting scam in Satyam.

Satyam had announced on December 16 its plans to acquire Maytas Properties and Maytas Infrastructure - promoted by its founder Ramalinga Raju's family — but had to withdraw the plans within hours after intense opposition from investors.

Murty, who has been with Satyam for about 15 years, was named as new CEO of the scam-hit company on Friday by its government-appointed board.

He sold 40,000 shares at an estimated Rs 90 lakh, as per the regulatory disclosures made by Satyam to bourses. He sold 21,000 shares between December 12 and 15 and 19,000 more on December 16, the day Satyam made a failed USD 1.6 billion (Rs 8,000 crore) bid for the two Maytas firms.

Source": http://timesofindia.indiatimes.com/Kiran_Karnik_appointed_Satyam_chairman/articleshow/4089048.cms

Eaton signs transmission supply pact with Tata Motors

Eaton signs transmission supply pact with Tata Motors
NEW DELHI: Diversified industrial manufacturer Eaton Corporation on Wednesday said it has signed an agreement with Tata Motors to supply heavy duty synchronised transmissions.
"Eaton's Truck Group will supply heavy duty synchronised transmissions to Tata Motors for use in its World Truck program in India as well as global markets," the company said in a statement.
"This is a very important achievement for Eaton in meeting our significant growth goals for India and the Asia-Pacific region in general. Our relationship with Tata is an excellent indicator of our commitment to India's commercial vehicle market and its long-term prospects for growth," Eaton' Truck Group President James E Sweetnam said.
Initial transmission production will take place at Eaton plants in Tczew, Poland, and Wuxi, China, with production moving to its new facility in Pune, India, as volumes increase, it added.
With 2008 sales of 2.5 billion dollars, Eaton's Truck Group is a global leader in the design, manufacture and marketing of powertrain systems and components for commercial vehicles.
Source : Economic Times (2/4/2009)

Eaton signs transmission supply pact with Tata Motors
NEW DELHI: Diversified industrial manufacturer Eaton Corporation on Wednesday said it has signed an agreement with Tata Motors to supply heavy duty synchronised transmissions.
"Eaton's Truck Group will supply heavy duty synchronised transmissions to Tata Motors for use in its World Truck program in India as well as global markets," the company said in a statement.
"This is a very important achievement for Eaton in meeting our significant growth goals for India and the Asia-Pacific region in general. Our relationship with Tata is an excellent indicator of our commitment to India's commercial vehicle market and its long-term prospects for growth," Eaton' Truck Group President James E Sweetnam said.
Initial transmission production will take place at Eaton plants in Tczew, Poland, and Wuxi, China, with production moving to its new facility in Pune, India, as volumes increase, it added.
With 2008 sales of 2.5 billion dollars, Eaton's Truck Group is a global leader in the design, manufacture and marketing of powertrain systems and components for commercial vehicles.
Source : Economic Times (2/4/2009)

Fiat Australia: Fiat Fun And Economy Equals A 196% Sales Increase!
HOMEBUSH, Australia : In these troubled economic times, with the car industry struggling to cope with a massive 18.5 per cent decline in sales, what the car buyers want is car that its fun, cheerful and the most economical car available on the market, namely, the Fiat 500 and its this fact that explains why against all market trends, Fiat car sales rocketed by 196.2 per cent in January according to VFACTS figures released today (4 February 2009).
When it comes to a car being recession-proof, forget the million dollar supercars, says Andrei Zaitzev, General Manager for Fiat in Australia. The Fiat 500 has what it takes to succeed in a market that is being hit by an economic downturn. On one hand, its a car that brings a smile to the face of everyone who sees it, regardless of their economic gloom, and driving it brings even more pleasure from its chic interior and its exuberant character. When it comes to owning a Fiat 500, its a pain-free experience. For a start the Fiat 500 JTD uses less fuel than any other car available on the market right now and with prices starting at $22,990 for the 500s unique blend of fun, chic style and economical motoring its easy to see why Fiat dealers are enjoying an almost unique experience a queue of people at the showroom door!
The new Fiat 500 is a reincarnation of the classic Fiat 500 Bambino and, like its famous predecessor, the new 500 has generated unprecedented demand since its launch and despite Fiat expanding production twice to try and meet demand, its still a sell-out. Following its launch the Fiat 500 has collected a trophy cabinet full of awards, lead by the 2008 European Car of the Year and, most recently this week, the BusinessCar City Car of the Year, all of which demonstrate that the Fiat 500 is much more than a pretty face, with a real depth of ability to match its cherubic good looks.
Nor does Fiats success only come in small packages.
Playing a very strong supporting role in Fiats marketing-beating January sales performance is the Fiat Ritmo, the Italian car makers mid-size hatch that has all the flair and pizzazz of Fiat 500, but with additional space, two extra doors and, thanks to the choice of a highly economical diesels and efficient, light weight turbo charged petrol engines, excellent levels of fuel economy. With the remarkable economy of the Fiat Ritmo Dynamic JTD available $24,990 Driveaway, the Ritmos combination of value and exhilaration makes the Ritmo another Fiat recession-buster.
Source : www.theautochannel.com (2/5/2009)

Sensex breaches 9100; Sterlite, M&M, Maruti drag

MUMBAI: Selling intensified in frontline stocks as wary traders were reluctant to take long positions in a directionless market. Auto, capital goods and oil&gas stocks were the worst hit while metal space showed some strength.

Decline in inflation failed to lift market sentiment. Inflation for the week ended January 24 fell to 5.07 against 5.64% a week ago

At 1 pm, Bombay Stock Exchange's Sensex was at 9070.55, down 131.30 points or 1.43%. The index touched an intra-day low of 9069.64 and high of 9247.09.

National Stock Exchange's Nifty was at 2766.30, down 1.31% or 36.75 points. The broader index touched a low of 2764.75 and high of 2816.80.

Broader markets remained lacklustre. BSE Midcap Index was down 0.51% and BSE Smallcap Index slipped 0.57%.

Amongst sectoral indices, BSE Auto Index was down 2.16%, BSE Realty Index fell 1.92% and BSE IT Index tripped 1.74%. BSE Metal Index bucked the trend and was up 0.49%.

Sterlite Industries (-7.52%), Mahindra & Mahindra (-5.07%), Maruti Suzuki (-4.83%), DLF (-4.19%) and TCS (-2.98%) were the top Sensex losers.

Tata Steel (2.04%) and Grasim Industries (0.16%) were the only gainers.

Asian markets had turned red and European markets were also expected to open lower.

http://economictimes.indiatimes.com

Satyam has support at Rs 48

Satyam has support at Rs 48: Sukhani Technical Analyst, Sudarshan Sukhani is of the view that Satyam has support at Rs 48.. Sukhani told CNBC-TV18, “Satyam has given us some kind of a support. So, anyone who says, I believe in this news and I want to go long in Satyam can have a stoploss of Rs 48. Earlier, we did not have an exit strategy, so just entering this stock without knowing how to get out was dangerous. But now there is a decent amount of support at Rs 48, if that breaks something has gone wrong, now it is difficult to say whether it will go up because a lot of this is new driven but long position can be taken with that exit in mind.”

Ambanis up on Forbes' richest CEO list, Lakshmi Mittal slips

NEW YORK: They have lost more than USD 13 billion from their combined wealth, but still the two Ambani brothers have moved higher on Forbes' latest list of the world's ten richest CEOs, while Sunil Mittal has joined the league and Lakshmi Mittal has slipped two places.

Legendary American investor Warren Buffett has retained his top position on the annual list, but Indian-born steel tycoon Lakshmi Mittal has been toppled from his last year's second position by software major Oracle chief Larry Ellison.

Mittal has moved down to fourth position, while Mukesh Ambani, the elder of the two warring brothers, has jumped three positions to grab third rank this year.

The younger Ambani, Anil, has also moved up one place to sixth rank on this year's 'Forbes list of ten wealthiest CEOs'.

While another Indian business chief, Azim Premji, has moved out of the top-ten list, compatriot Sunil Mittal of Bharti Airtel has joined the league at ninth position.

IT major Wipro Chairman Premji was ranked ninth on the previous year's list. The total number of Indians on the list has remained unchanged at four on this year's list.

"Being a CEO isn't what it used to be. Crackdowns on corporate frills like private jets and over-the-top offices have become the norm, taking some of the fun —but none of the stress —out of running billion-dollar businesses," Forbes said.

"While some chief executives' jobs may be in peril, these 10 have stuck it out long enough to partake in what's left of the global economy. These have made our annual list of the world's wealthiest CEOs," it added.

About India's presence on the list, Forbes said there are four Indians on its list this year: "two industrialists, Mukesh Ambani and Lakshmi Mittal; and two telecom tycoons, Anil Ambani and Sunil Mittal."

"(The) Ambani brothers owe their hefty fortunes, in part, to inheritance. Following their father's death in 2002, they took over his industrial empire ... and attempted to run it together.

"The collaboration soon soured. After coming to blows over who ran the company, the two reached a bitter compromise, deciding that they and the company would best be served by spinning off and divvying up its various businesses.

"Today Mukesh runs petrochemicals giant Reliance Industries Ltd, while Anil oversees an array of companies including Reliance Communications, a phone and Internet outfit with 60 million customers," it added.

The magazine said that its list of the world's wealthiest CEOs was based on analysis of their financial stakes in firms controlled by them, as on January 23.

Buffett has been ranked first with USD 35.9 billion worth of shareholding, it said, adding that "there are not many people who can lose USD 25 billion in four months and still top the list of the world's wealthiest CEOs."

Oracle's Ellison has been ranked second with USD 19.7 billion, followed by Mukesh Ambani (USD 16.8 billion), Lakshmi Mittal (USD 13.2 billion), luxury goods major LVMH's Bernard Arnault (USD 12.2 billion), Anil Ambani (USD nine billion), Arabian bank Mashreq's Abdul Aziz Al Ghurair (USD seven billion), and Microsoft's Steve Ballmer (USD seven billion).

Sunil Mittal (USD 6.9 billion) and Japanese fashion retail major Fast Retailing's Tadashi Yanai (USD six billion) follow.

"We estimated ownership by sifting through each company's most recent financial filings and, where information was not readily available, talking to industry sources," Forbes said, adding that both CEOs and Managing Directors of public companies across the world were considered for the list.

About Mukesh Ambani, the report said he made it to third position despite a 62 per cent plunge in the shares of his group's flagship firm RIL since January last year.

Source: http://timesofindia.indiatimes.com/Ambanis_up_on_Forbes_richest_CEO_list_Lakshmi_Mittal_slips/articleshow/4076560.cms?TOI_latestnews

Nifty ends above 2800

MUMBAI: Equities witnessed a dull trade on Wednesday as investors chose to stay away in a directionless market. Metal and realty space ended higher while healthcare closed marginally lower.

National Stock Exchange’s Nifty ended at 2803.05, up 19.15 points or 0.69 per cent. The broader index hit an intra-day high of 2842.20 and low of 2780.70.

Bombay Stock Exchange’s Sensex closed at 9201.85 up 52.55 points or 0.57 per cent. The index touched an intra-day high of 9338.21 and low of 9164.16.

BSE Midcap Index was down 0.45 per cent and BSE Smallcap Index ended flat.

Tata Steel (5.15%), Zee Entertainment (5.01%), DLF (4.97%), Sterlite Industries (4.63%) and SAIL (3.87%) were the biggest Nifty gainers.

Mahindra & Mahindra (-2.61%), Suzlon Energy (-2.21%), Power Grid (-2%), HDFC Bank (1.37%) and Hindalco Industries (-1.34%) were the losers in the 50-share index.

(All figures are provisional)

http://economictimes.indiatimes.com

Panasonic cuts 15K jobs, 27 plants go

TOKYO: Japan's Panasonic Corp said it was cutting up to 15,000 jobs and closing 27 plants worldwide as it braces to fall deep in the red due to the global economic crisis.

The company tumbled to a loss for the fiscal third quarter as a global downturn squelched demand, gadget prices plunged and a strong yen eroded overseas earnings, the Japanese electronics maker said.

Panasonic, the world's largest maker of plasma display TVs, said it expects more red ink for the full year ending March 2009, which would be its first yearly net loss in six years. The company, which had previously forecast a full year profit of 30 billion yen, now expects to rack up losses of 380 billion yen ($4.2 billion).

The Osaka-based manufacturer of digital cameras, flat-panel TVs, cell phones and batteries reported a 63.1 billion yen ($709 million) loss for the October-December period. It had posted a 115.2 billion yen profit the same quarter the previous year.

Quarterly sales dropped 20 per cent to 1.880 trillion yen from 2.345 trillion, with overseas sales decreasing 29 per cent, and Japanese sales down 10 per cent.

The company blamed a global slowdown set off by the US financial crisis, the rapid surge of the yen and sudden price drops for the dismal results. Sales slid in a wide range of products, including flat-panel TVs, DVD recorders, microwaves, lamps and semiconductors, it said.

“The company's business conditions have worsened particularly since last October, due mainly to the rapid appreciation of the yen, sluggish consumer spending worldwide and ever intensified price competition,” Panasonic said in a statement.
The last time Panasonic reported a loss was for the fiscal year ended March 2002, when a global electronics slump and massive restructuring costs
contributed to 431 billion yen in red ink.

Since then, the company has been shedding money-losing businesses and focusing on key products such as plasma display TVs to turn itself around.

The company, formerly named Matsushita Electric Industrial Co, for its founder, also lowered its sales forecast for the fiscal year ending March 31, to 7.75 trillion yen from an earlier 8.5 trillion yen.

Japan's other export-reliant electronics makers are also seeing their profitability sorely hurt, including Panasonic's longtime rival Sony Corp.

Sony is forecasting a 150 billion yen net loss for the fiscal year through March. The last and only time Sony reported a loss -- the fiscal year ending March 1995 -- the red ink came from one-time losses in its movie division, marred by box office flops and lax cost controls.

Hitachi Ltd, NEC Corp and Toshiba Corp are also all forecasting big losses for the fiscal year.

Source: http://infotech.indiatimes.com/News/Hardware/Panasonic_cuts_15K_jobs_27_plants_go/articleshow/msid-4074595,curpg-2.cms

Indian software industry to log $60bn revenue: Nasscom

NEW DELHI: The Indian software and services industry is expected to grow 16 percent this fiscal and log revenues of $60 billion despite the global slowdown, a top lobby for the industry said on Wednesday.

The National Association of Software and Service Companies (Nasscom) said together with the business process outsourcing (BPO) sector, the revenues are expected to top $71.7 billion with a growth of 17 percent.

Of this, the export of software and services will account for $47 billion, growing by 16-17 percent. The association also said that the domestic BPO industry would log a growth of as much as 40 percent this fiscal.

“The current financial year has been challenging for economies across the globe. But the Indian IT-BPO industry has exhibited a balanced growth,” said Ganesh Natarajan, chairman of Nasscom and global chief executive of Zensar Technologies.

“We have seen Europe, Asia Pacific and rest of the world grow more than US, reaffirming geographical diversification as an encouraging trend for this industry,” Natarajan told reporters, while releasing the association's report.


Source: http://timesofindia.indiatimes.com/Business/Software_Inc_to_log_60bn_revenue/articleshow/4074761.cms

Defaulting credit cards will attract 49% interest now

NEW DELHI: Supreme Court on Tuesday allowed MNC banks to charge hefty penal interest up to 49% on defaulted credit card payments, ending the respite that lakhs of card holders have had since September last year when the National Consumer Disputes Redressal Commission capped the penalty at 30%.

The SC stayed the apex consumer forum's directive to banks not to charge more than 30% interest on defaulted payments on credit card purchases. The SC had last year refused to heed the appeal of banks against the NCDRC's order.

A Bench comprising Justices B N Agrawal, G S Singhvi and Aftab Alam suspended on Tuesday the relief to card holders on a plea by a coalition of foreign banks — Citibank, HSBC, American Express and Standard Chartered — that their business was suffering immensely because of the "unwarranted" cap on the quantum of penal interest.

Ironically, the plea of banks may have been allowed because of a lapse by the very same NGO `Awaz' that was instrumental in getting the NCDRC order pegging the penal interest at 30% last year.

Though the Bench had issued notice to the NGO four months ago, it has yet not put in its response, possibly helping the court to see merit in the argument of the banks that no penal interest rate, they were only following the guidelines issued by the statutory regulator, Reserve Bank of India (RBI).

The banks teamed up to apprise the apex court of their compulsions to charge between 36% to 49% interest on defaulted payments on credit cards. "No bank as a credit card issuer would charge undue interest rate as, apart from the regulatory framework that applies, the market would not sustain the same by reason of competitive force," Citibank said.

In its application, filed through counsel Rupinder Suri, it said facility of credit cards could be availed without any interest for a certain stipulated period and it was only after the expiry of that period that penal interest was levied on default of payments.

"The credit card holder is aware of the same at the time of applying for it. It is also relevant to note that credit card transactions de-facto constitute unsecured credit availed of," the bank said justifying the high interest rate permitted by RBI on defaulted payments.

The July 7, 2007 order of NCDRC had ruled that "charging of interest rates in excess of 30% per annum from credit card holders by banks for the former's failure to make full payment on the due date or paying the minimum amount due, is unfair trade practices."

It had also said that penal interest could be levied only once for the period of default and should not be capitalised while terming the practice of computing interest on monthly basis as "unfair trade practice".

The banks justified the high interest rate on default payments by credit card holders by listing as many as 27 factors that included even the SMS alerts it sends to the card holders.

Even the cost of acquiring a new customer, that is the cost of calls made randomly by authorised call centres urging people to take credit cards, is also taken into account for realisation through charging of penal interest from a defaulting card holder.
"The National Commission has failed to appreciate that the rate of interest on defaulted or partial payments of credit card dues is determined by taking into consideration various factors, including the risks of default, and therefore, this commission may not determine the issue as to whether the interest at the rates of 36% to 49% per annum is excessive," the banks said.

Source: http://timesofindia.indiatimes.com/Business/49_interest_as_credit_card_penalty/articleshow/4072018.cms

Sensex up 156 pts in opening trade on firm global cues

MUMBAI: Continuing its upward trend for the second straight day today, the Bombay Stock Exchange benchmark Sensex moved up by another 156 points in opening trade on increased capital inflows by funds, driven by firming trends in global equity markets.

The 30-share index, which had gained 82.60 in yesterday's trading, gathered another 156.74 points, or 1.71 per cent to 9,306.04 in opening trade as all the sectoral indices were trading in positive zone with gains up to 2.66 per cent.

Similarly, the broader National Stock Exchange Nifty rose by 46.35 points to 2,830.25 in opening trade.

Marketmen said overnight gains on the US markets and firming trend in other Asian stock markets, sparked off buying on the domestic bourses.

They said a rise of up to six per cent in Indian companies ADRs on the US markets also influenced the trading sentiment.

Among major gainers which supported the Sensex were RIL by 1.19 per cent to Rs 1,318, SBI by 1.39 per cent to Rs 1,106.45, ICICI Bank by 1.99 per cent at Rs 399.50 and HDFC Bank by 1.37 per cent at Rs 911.25.

Among software exporters stocks, Infosys gained 0.71 per cent to Rs 1,291.50, Tata Consultancy by 1.54 per cent to Rs 507.60 and Wipro by 1.49 per cent to 227.40 but fraud-tainted Satyam's stocks fell 6.94 per cent to Rs 51.65.

Besides, Larsen and Toubro rose 1.38 per cent to Rs 667, BHEL by 1.15 per cent to Rs 1354.10, Bharti Airtel by 1.33 per cent to Rs 633.20, Sterlite Industries by 3.03 per cent to Rs 275.65 and Tata Steel by 2.02 per cent to Rs 174.15.

Meanwhile, US's Dow Jones Industrial Average closed 1.78 per cent higher yesterday, while Japan's Nikkei moved up 2.57 per cent and Hong Kong's Hang Seng gained 2.47 per cent in early trade today.

Source: http://timesofindia.indiatimes.com/Business/Sensex_up_156_pts_on_firm_global_cues/articleshow/4073560.cms

Oil prices higher in Asian trade

SINGAPORE: World oil prices rose in Asian trade today in a cautious market still confronted by weak global demand, dealers said.

New York's main futures contract, light sweet crude for March delivery, gained 27 cents to USD 40.35 a barrel.

Brent North Sea crude for March delivery rose 58 cents to USD 44.40.

"There's a fair level of caution still on the market," said Mark Pervan, senior commodities analyst for ANZ bank in Melbourne, Australia.

He said the market was buoyed partly by the impact of strikes in Britain, snowstorms in Western Europe and strike threats in the United States.

Wildcat strikes against foreign workers resumed at energy plants across Britain yesterday, while in the United States US oil industry representatives and union negotiators extended talks on a new contract. The threat of a nationwide strike loomed.

Snow storms brought travel chaos to Western Europe yesterday, closing London's Heathrow airport after one jet slid off a taxiway. At least five people were killed in storm incidents.

Cold weather traditionally boosts oil prices because countries ramp up their demand for heating fuel.

"What I think these events are doing is holding prices up... creating some kind of support," Pervan said.

Source: http://timesofindia.indiatimes.com/Business/Oil_prices_higher_in_Asian_trade/articleshow/4068225.cms

Have home loan? EMIs are set to fall

NEW DELHI: If fresh home loan borrowers had reason to celebrate on Saturday when State Bank of India (SBI) cut its rate to 8%, existing borrowers too can look forward to paying lower EMI very soon.

On Monday there were strong signals of public sector banks cutting their prime lending rates (PLR) in response to further prodding from the government - this time in the form of Pranab Mukherjee - to cut interest rates. As floating home loan rates are tied to PLR, any cut in PLR will mean lower rates for existing customers too.

Banks like Uco Bank and Corporation Bank have already announced cuts in PLR ranging from 0.75 to one percentage point and others have indicated they are likely to do so within a week. SBI chairman O P Bhatt has also indicated that the bank will cut its PLR soon. So, it’s a question of time before loan takers from PSU banks get relief on their EMIs.

But what about those who've borrowed from private sector banks like ICICI or HDFC - who between them have more than half of the home loan market - and are currently paying rates of 11-13%? They need not despair. It's likely that these banks too will cut interest rates.

But if they don't, existing borrowers could use the lower rates being offered by public sector banks to shift. Even if they have to cough up the usual pre-payment charge of 2% of the outstanding amount, they would still benefit significantly from such a shift. Someone with a Rs 50-lakh loan, for instance, could save more than Rs 50,000 in the next 12 months alone.

Home loan rates may fall to 7% by April

NEW DELHI: Most analysts and banking experts agree that interest rates in the home loan segment could fall to as little as 7% by March-April.

This makes sense given the RBI's recent projection that inflation would be down to below 3% by March. So, if you are now paying 12% and shift to 7%, the net savings in one year would be almost Rs 1 lakh.

Even those with loans from the public sector banks would stand to gain by shifting to the new scheme if they are paying rates of 10% or more. In their case, the one-time charge for the shift would be 1.25-1.5% rather than the 2% applicable when you shift from one bank to the other. Waiting for a few weeks before you decide to switch also makes sense for another reason. While SBI is offering 8% today, that rate will stay fixed for one year. If the rate comes down further, as expected, you would end up locked-in at 8%.

Source: http://timesofindia.indiatimes.com/Business/Home_loan_EMIs_set_to_fall/articleshow/4067499.cms

Markets extend gains in afternoon trade

MUMBAI: Indian equities markets extended gains on Tuesday afternoon, with key index ruling 1.14% higher than its previous close about 90 minutes before the closing bell.

The Bombay Stock Exchange’s Sensex was at 9,170.51 points, 1.14% or 103.81 points higher than its previous close.

At the same time, the S&P CNX Nifty index of the National Stock Exchange (NSE) was at 2,797.6 points, up 1.12% from its Monday close of 2,766.65 points.

However, the BSE midcap index was down 0.39%, while the BSE smallcap index lost 0.14%.
Soruce: http://timesofindia.indiatimes.com/Business/Markets_extend_gains/articleshow/4068377.cms

Progressive Announces Record Date for Annual Meeting

Progressive Announces Record Date for Annual Meeting MAYFIELD VILLAGE, Ohio : The Board of Directors of The Progressive Corporation on January 30, 2009 fixed the close of business on February 27, 2009 as the record date for the determination of shareholders entitled to notice of, and to vote at, the Annual Meeting of Shareholders scheduled to be held on April 24, 2009. Source : www.theautochannel.com (2/2/2009)

Elena Ford to Head New Global Marketing Division

Elena Ford to Head New Global Marketing Division Ford Motor Co. today announces the establishment of a new Global Marketing, Sales and Service Operations organization in an effort to create a “more consistent and compelling” connection with its worldwide customer base. The new division is in line with CEO Alan Mulally’s “One Ford” strategy, which is focused on better leveraging the auto maker’s global resources. Heading up the division will be Elena Ford, 42, the cousin of Chairman Bill Ford and great-great granddaughter of company founder Henry Ford. Prior to accepting her new post, Elena Ford served as executive vice president of Ford Motor Credit Co.’s global brand and marketing division. She begins her new assignment Feb. 1 and will report directly to Jim Farley, director-marketing and communications. “Elena brings a wealth of experience to the new position and is the ideal leader to drive a coordinated approach to our worldwide marketing efforts,” Farley says in a statement. In her new post, Elena Ford will be responsible for driving commonality and standardization of marketing resources; developing a common strategy for global marketing, sales and service; creating a greater presence of the Ford brand at global auto shows and consumer events; and expanding the offering of Ford-branded licensed merchandise. Source : wardsauto.com (2/2/2009)

Honda special bids farewell to S2000

Honda special bids farewell to S2000 Honda will unveil a limited edition S2000 roadster at next month’s Geneva motor show – before ceasing production of the car later this year. The Edition 100 S2000 combines white paintwork, dark alloy wheels and black badging, with a red leather interior and numbered kick-plates. The car’s trademark high-revving 2.0-litre, 240bhp engine remains unchanged. As the Edition 100 name implies, just 100 of the cars will be sold in the UK. Prices will start from £29,086 – around £1000 more than the standard car. Source : www.whatcar.co.uk (2/2/2009)

SEBI to amend open offer rules; Satyam suitors may benefit

SEBI to amend open offer rules; Satyam suitors may benefit
Mumbai, Feb 2 (PTI) Satyam Computer's potential suitor may get to control the IT company at an affordable price, with market regulator SEBI today saying it would amend regulations governing open offer to ensure transparent pricing.The SEBI move comes on a request from Satyam board to relax the norm of 26-week average price to make an open offer."It was decided to appropriately amend the regulations to enable a transparent process for arriving at the price for such acquisition," SEBI Chairman C B Bhave told reporters here after the board meeting.The amendments will be made not only for the Satyam-case, but for all similar situations that may arise in the future, he said.The board recognises that the issue needs to be dealt with in a general context and not as a specific case, Bhave said, referring to the Satyam request.Though Bhave declined to give any timeframe for the amendments in pricing rule, he said: "We are aware about the urgency of the situation." Engineering major Larsen & Toubro has increased its stake in Satyam to over 12 per cent. If it crosses 15 per cent, the company would have to make an open offer to purchase another 20 per cent from the market.Among the other decisions taken today, SEBI made it mandatory for listed companies to declare dividend on per share basis instead of percentage basis followed at present.Besides, the regulator has reduced the timeline for the completion of bonus issue to 15 days if the shareholder approval is not required and to 60 days where the approval is required. At present, the timeline for this procedure is six months. PTI

M&M net profit plummets 99%

Mumbai, Feb 1: Auto major Mahindra and Mahindra (M&M) Saturday said its stand-alone net profit dipped over 99 percent to Rs 11.96 million (Rs 1.19 crore/$242,757) for the quarter ended December 31, from Rs 4.05 billion in the same period the previous year. The company’s total income decreased to Rs 25.62 billion for the third quarter from Rs 29.8 billion in the corresponding period last year, M&M said in a statement. The company blamed exchange losses to the tune of Rs 1.82 billion, high inflation of earlier months and lukewarm consumer sentiment in the wake of global financial turbulence for the bad performance. (IANS)

Marker tumbled on weak corporate results & global cues: Sensex below 9,200 mark

Date : Feb-02-2009 13:33
Key benchmark indices are trading in red on weak global cues and concerns about the deteriorating state of the US economy. Further, fresh selling in index pivotals pulled the market down. In addition to this, FII are in selling mood. Meanwhile, Indian manufacturing activity shrink further for a thirst month in January 2009 as deteriorating business, weak consumer confidence and sharp global slowdown eat up the demand.

On the sectoral front, traders off-loaded position across sectors. Banking stocks fell as fears of rising default in a weakening economy. Realty stocks slipped on recent reports falling interest rates have failed to boost housing demand. Metal stocks declined by on investors worries after weak results posted by the metal firms on fall in demand round the globe. Capital goods stocks fell on worries a deteriorating economy will eat up the prospective orders.

The Market breadth, indicating the overall strength of the market, was weak. On BSE, out of 2,311 stocks traded so far, 905 shares advanced while 1,309 shares declined. Nearly 97 shares are unchanged.

At 1.30PM, the BSE Sensex is trading lower by 278.32 points at 9,145.92 and NSE Nifty is down by 88.00 points at 2,786.80.

The BSE Mid Cap is trading lower by 22.77 points at 2,918.70 and Small cap is trading down by 25.05 points at 3,313.99.

Losers from the BSE Sensex pack are DLF deteriorated by 11.85% to Rs. 156.20 along with Jaiprakash Associates by 9.70% to Rs. 68.85, Hindalco ind by 6.22% to Rs. 46.00, Housing Development Finance Co by 5.96% to Rs. 1,445.10, Reliance Infra by 5.77% to Rs. 548.70 and Tata Motors fell 5.31% to Rs. 141.70 among others.

Gainer from the BSE Sensex Pack is Maruti Suzuki by 0.88% to Rs. 576.00.

The BSE Realty index is lower by 125.62 points or 7.53% at 1,542.46. Stocks trading in red are DLF down by 11.85% to Rs. 156.20, Housing Development by 9.17% to Rs. 87.70, Indiabulls Realty by 6.62% to Rs. 108.65 and Unitech by 5.29% to Rs. 30.45 among others.

Satyam Computer Services advanced 7.03% to Rs. 57.85 on reports India''s market regulator will consider relaxing takeover rules for an open offer in Satyam Computer Services to help the fraud-scarred outsourcer attract suitors.

Spice Communication jumped 45.24% to Rs 69.35, on the report that industrialist BK Modi''s firm joined the fray to buy out the troubled IT firm Satyam Computer Services.

Moser Baer India fell 0.47% to Rs. 63.45 despite the company said its unit won a contract from government of Gujarat for installing roof top photovoltaic at Surat.

Kamat Hotels India slipped 0.14% to Rs. 35.00 despite its board has approved selling 60% stake in its subsidiary, Concept Hospitality.

Unitech fell 5.29% to Rs. 30.45 after it announced weak quarterly result.

Bajaj Auto fell 0.77% to Rs. 470.25 after the company said its total vehicle sales declined 31% at 1,32,348 units in January 2009 over January 2008.

Tata Motors fell 5.31% to Rs. 141.70 after the company reported weak quarterly performance.

Hero Honda Motors gained 0.20% to Rs. 878.70 after the company''s two-wheeler sales rose 5.8% in January 2009 over January 2008

Maruti Suzuki (India) rose 0.88% to Rs. 576.00 after the company said its vehicle sales rose 5.4% in January 2009 over January 2008.

DLF tumbled 11.85% to Rs. 156.20 after the company reported phenomenal decline in quarterly performance.

Mega US economic stimulus package on track

WASHINGTON, Jan 31: The White House has said the $819 billion mega economic stimulus package, passed by the House of Representatives amid opposition from Republicans, is on track and exuded confidence it would be signed into law before February 16, a deadline set by President Barack Obama, reports PTI. The American Economic Recovery and Reinvestment Act, which pumps $819 billion into the US market so as to boot up its fast sinking economy, was passed by the House early this week; with all Republicans lawmakers voting against it. The stimulus package is now scheduled to come up before the Senate next week, wherein the opposition Republicans, though in minority, have vowed to block it. They have, in fact, brought out their own version of the bill. Obama’s presidential rival, Senator John McCain, yesterday announced that he is working on an alternative package. White House spokesman, Robert Gibbs, hoped that it would be cleared by the Senate next week and soon it would be on the President’s desk.