Rupee gains 10 paise against US dollar in early trade

MUMBAI: The Indian rupee appreciated by 10 paise to Rs 44.98 per dollar in opening trade on the Interbank Foreign Exchange on Tuesday, supported by dollar weakness against the euro and other Asian currencies and a higher opening in the stock market.

The rupee had strengthened by 8 paise to close at Rs 45.08/09 against the US currency in yesterday's trade amid sustained dollar selling and renewed capital inflows.

Forex dealers said dollar weakness against the euro and other Asian currencies overseas and a better start in the stock market kept the rupee sentiment firm against the American dollar.

Meanwhile, the Bombay Stock Exchange Sensex was up by 104.58 points, or 0.57 per cent, at 18,336.65 in opening trade today.

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Sensex starts trade on firm note

MUMBAI: A benchmark index for Indian equities markets on Tuesday rose in early trade with healthy buying seen in healthcare and banking scrips.

The 30-scrip sensitive index ( Sensex) of the Bombay Stock Exchange (BSE) which opened at 18,266.61 points, was ruling at 18,321.08 points, up 89.02 points or 0.49 percent from its previous close at 18,232.06 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading higher at 5,498.25 points, up 0.46 percent.

Broader markets too were ruling in the green with the BSE midcap index ruling 0.38 percent up and the BSE smallcap index up 0.33 percent.

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Rupee gains 10 paise against US dollar in early trade

MUMBAI: The Indian rupee appreciated by 10 paise to Rs 45.20 per dollar at the Interbank Foreign Exchange today, supported by a higher opening in the stock market and dollar weakness against the euro and other Asian currencies.

The rupee had gained 2 paise to close at Rs 45.30/31 against the US currency in yesterday's trade on the back of a recovery in equities amid dollar weakness overseas.

Forex dealers said dollar weakness against the euro and other Asian currencies overseas and a higher opening in the stock market kept the rupee sentiment firm.

Meanwhile, the Bombay Stock Exchange Sensex was up by 163.56 points, or 0.91%, at 18,208.20 in opening trade on Friday.

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Sensex advances further by 142 points on higher Asian cues

MUMBAI: The BSE benchmark sensex advanced further by 142 points in early trade today on persistent buying by investors in realty, oil and gas, banking and metal stocks on the back of higher Asian cues.

The BSE benchmark sensex resumed higher at 18,105.61 and hovered in a range between 18,224.18 and 18,087.16 before quoting at 18,186.69 at 1015 hours, showing a net gain of 142.05 points, or 0.79%, from its last close.

The NSE's 50-share Nifty index also rose by 37.20 points, or 0.69%, to 5,449.55 at 1015 hours.

Index heavyweight Reliance Industries ( RIL) nudged higher in early trade today, while banking stocks gained for the second straight day. The market breadth was strong.

Reliance Infrastructure (R-Infra) and Reliance Power (RPower) rose ahead of their Q4 results due today.

Among the major gainers from the Sensex pack, Hindalco Industries firmed up by 3.43 per cent, ICICI Bank by 2.48 per cent, Jaiprakash Associates by 2.45 per cent, R-Infra by 1.96 per cent, M&M by 1.81 per cent, DLF by 1.71 per cent, Reliance by 1.16 per cent and RCom by 1.68 per cent.

Most Asian stocks rose yesterday, tracking overnight gains in US stocks. The key benchmark indices in Hong Kong, Indonesia, Singapore, South Korea and Taiwan rose by between 0.05% and 0.74%. However, the key benchmark indices in China and Japan fell by between 0.04% and 0.1%.

Trading in US index futures indicated that the Dow could gain 20 points at the opening bell.

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DLF gets Rs 1,700 crore tax notice

NEW DELHI: Realty major DLF has said income tax authorities have slapped additional tax notices for over Rs 1,700 crore pertaining to 2008-09 assessment year after being disallowed its profits in SEZ projects. The company said it is challenging the orders with appropriate authorities and hopes that these demand notices will be revoked. SEZs enjoy tax benefits.

"Subsequent to the quarter ended March 31, 2011, the company received an assessment order for AY 2008-09 from the Income Tax Authorities, creating an additional demand of Rs 546.85 crore.

"Out of this Rs 487.23 crore pertains to demand on account of disallowance of SEZ profit under section 80IAB of Income Tax Act," DLF said in a note in its annual result.

"During the year, the group had also received similar demands on account of disallowance of SEZ profits in two of its subsidiaries totalling Rs 1,156.19 crore," it added. Without naming the units, DLF said those firms are challenging the orders.

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Pepsi, Hero Honda win WC brand war

MUMBAI: Even as we await the verdict on the brand battle being fought around the Indian Premier League (IPL-4), cola major Pepsi and two-wheeler maker Hero Honda have emerged as the two sponsors with the highest consumer recall during the cricket World Cup.

According to a brand effectiveness survey conducted by the country's largest media agency, Mindshare, a part of the WPP group, besides these two brands, real estate player DLF was also recalled as one of the sponsors of the tournament despite being associated with the IPL and not the World Cup.

The survey, released recently and shared exclusively with TOI, had a sample size of 2,500 respondents across ten cities and was aimed at understanding the consumer's brand awareness during the ongoing chock-a-block cricket season.

When asked as to which brand was associated with cricket, the answer was Pepsi again with nearly 40% votes while the next brand stood at 10%. The same impact was registered when asked about the advertising association. PepsiCo launched an advertising campaign "Change the game" to capture and celebrate the changes in cricket over the years with a 360 degree marketing activity right before the World Cup.

According to the survey 61% of the respondents said they had watched the entire match from start to finish during the course of the World Cup which ran from February 19 till April 2, 2011.

"Our objective was to assess the movement in brand relationships with cricket over a period of 100 days which included two heavyweight events, World Cup and the IPL that took place back to back-a rare sequence till 2015. This is an ongoing research and it will be interesting to know how these associations change during the course of IPL" said R Gowthaman, leader, South-Asia, Mindshare.

As far as the IPL goes, the survey said that the fourth edition of the Twenty20 tournament will have more audiences in the stadium compared to the last edition with respondents from cities like Bangalore, Jaipur, Kochi and Mohali being most inclined to watching the matches in the stadium. On the television viewership front, 82% of the participants said their viewership habits will be impacted during the course of the IPL.

Mumbai Indians were the most popular team outside their home city while the Kochi team, which was included in the IPL this year, had instant loyalty said the survey findings. Sachin Tendulkar, not surprisingly, emerged as a clear number one when respondents were asked to pick their favourite players, while the India skipper MS Dhoni who also captains Chennai Super Kings was next in line. Yuvraj Singh, who moved to the Pune team from Kings X1 Punjab this year still enjoys a strong support base in the Chandigarh/Mohali area said the survey.

"It is quite evident that top of the mind awareness will sustain for a longer period for big brands for more than the duration of the tournament because of the high level of involvement with the match," Gowathaman added.

TOI

Rupee off 2-month low on strong shrs, stable euro

MUMBAI: The Rupee pulled back on Tuesday from the two-month low touched in the previous session comforted by positive local shares and absence of any further big fall in the euro.

At 9:21 am, the partially convertible rupee was at 45.14/15 per dollar against 45.23/24 at close on Monday, when it had dipped to 45.3225, a level not seen since March 15.

The euro was at $1.4059 and the index of the dollar against six major currencies was at 76.102 points. On Monday, when the local market closed the euro was at $1.4017 and the dollar index at 76.231 points.

But month-end payments by domestic oil refiners, the biggest purchasers of dollars in the local forex market, could be key for the rupee's direction and is likely to prevent a sharp recovery, traders said.

Indian shares climbed more than 0.3 percent early on Tuesday tracking gains in Asian peers and helped by lower oil prices that could provide some relief to offset negative sentiment.

TOI

Sensex regains 18k level, up 113 points

MUMBAI: The BSE benchmark Sensex regained the 18,000 points level in opening trade on Tuesday, shooting up by over 113 points on a fresh spell of buying by funds and retail investors, taking cues from the firming trend on other Asian bourses.

The 30-share index of the Bombay Stock Exchange, which lost 332.76 points in the previous session, recovered by 113.45 points, or 0.63 per cent, to 18,106.78 in the first few minutes of trade, with oil and gas, auto, banking, realty and consumer durable stocks leading the recovery.

Similarly, the wide-based National Stock Exchange Nifty index also moved up by 28.50 points, or 0.53 per cent, to 5,415.05.

Brokers attributed the recovery in stocks to fresh buying by funds and retail investors, driven by a firming trend on other Asian bourses.

TOI

Investors lose big money in 9 of 12 IPOs this year

MUMBAI: The current weak market conditions have taken a heavy toll on investors of initial public offering (IPO). Of the 12 IPOs that closed this year and have been listed, investors of only three are still in the black. The combined loss to investors in the nine loss-making public offers is over Rs 2,100 crore, or nearly 19%, data from NSE and BSE showed. In the three IPOs in which investors have made money, the combined gain is about Rs 433 crore.


So far in 2011, IPO investors have made money in three offerings-Midvalley Enetrtainment, Sudar Garments and Lovable Lingerie-in which appreciations have been 72%, 61% and 51% respectively. On the other hand, they have lost money in nine IPOs, including highly publicized ones like Muthoot Finance and Future Ventures, besides one from the PSU stable-PTC Financial Services. The biggest loss-making IPO so far in the year has been Acropetal Technologies, where the stock has lost 72% from its IPO price of Rs 90 to its current price of Rs 25, its all-time low. Incidentally, within two weeks after the stock was listed, it had peaked at Rs 156, but since then it has been on a downhill journey.

Market watchers said that of late, due to weak market conditions, while good companies are deferring their plans to go public, little-known companies are hitting the market. "Quality of the offerings is definitely an issue in these offerings," said an industry analyst. One indication about the quality of the offerings is that of the 12 IPOs which have been analysed for post-listing returns, none had the highest, that is 5 out of 5, IPO rating. Only two-PTC Financial Services and Muthoot Finance-had ratings of 4, while most had 2 or 3 ratings and three IPOs even had 1 out of 5 ratings, that is the lowest grade. These gradings are given credit rating agencies like Crisil, CARE and Icra.

Often investors come into these IPOs for listing gains and if they can not exit at the right time, they are stuck, market players said. They also warned investors from getting lured by the prospects of quick gains.

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Sensex up 112 points in opening trade

MUMBAI: The Bombay Stock Exchange benchmark Sensex recovered by over 112 points in opening trade on Thursday on fresh buying in metals, banking and oil and gas stocks, driven by a firming trend on other Asian bourses.

The 30-share barometer, which has lost nearly 445 points in the previous three sessions, rose by 112.25 points to 18,198.45 in the first few minutes of trade today.

In a similar manner, the wide-based National Stock Exchange Nifty index rose by 32 points to 5,452.60.

Brokers said the emergence of buying in heavy-weight stocks by funds as well as retail investors was triggered by a firming trend in other Asian markets following overnight gains in the US, which gave a boost to the trading sentiment.

In the Asian region, Hong Kong's Hang Seng index rose by 0.25 per cent, while Japan's Nikkei edged higher by 0.51 per cent in morning trade today. The US Dow Jones Industrial Average ended 0.65 per cent higher in yesterday's trade.

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Sensex opens 78 points higher on Asian cues

MUMBAI: The Bombay Stock Exchange benchmark Sensex recovered by over 78 points in opening trade on Wednesday on emergence of selective buying by funds and retail investors amid a firming trend on other Asian bourses.

The 30-share barometer, which has lost almost 394 points in the previous two sessions, recovered by 78.54 points, or 0.43 per cent, to 18,215.89 in opening trade, with stocks of the metals, capital goods, realty and banking sectors leading the recovery.

The wide-based National Stock Exchange index Nifty also moved up by 17.85 points, or 0.33 per cent, to 5,456.80.

Brokers said fresh buying by funds and investors at prevailing levels and a firming trend on other Asian bourses mainly helped the trading sentiment to improve, but rising interest rates remained a dampening factor.

Meanwhile, Hong Kong's Hang Seng Index rose by 0.03 per cent and Japan's Nikkei by 0.88 per cent in early trade on Wednesday. In the US, the Dow Jones Industrial Average ended 0.55 per cent lower in yesterday's mixed trade.

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Sensex gains 47 points in opening trade

MUMBAI: The Bombay Stock Exchange benchmark Sensex rose by nearly 47 points in opening trade today on bargain buying by funds and retail investors in select stocks available at attractive levels.

The 30-share barometer, which lost 186.25 points in yesterday's trade, recovered by 46.92 points, to 18,391.95 in the first few minutes of trade today.

Stocks of the healthcare, consumer durables, metals and banking sectors led the recovery.

In a similar manner, the wide-based National Stock Exchange Nifty index rose by 10.45 points to 5,509.45 points.

Brokers said selective bargain buying by funds and retail investors in stocks that are available at attractive levels helped the Sensex trade in the positive zone, but a weakening trend on other Asian bourses capped the gains.

In the Asian region, Hong Kong's Hang Seng index was down by 0.27%, while Japan's Nikkei shed 0.47% in morning trade today. The US Dow Jones Industrial Average ended 0.38% lower in yesterday's trade.

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April inflation at 8.66%, seen higher in months ahead

NEW DELHI: The country' widely watched wholesale prive index rose 8.66% in April, lower than the 9.04% in March but economists say inflation will creep up higher in the months ahead given the expected increase in diesel prices.

The worrying aspect of the data released on Monday was that the government revised the February inflation number to 9.54% from the previously reported 8.31%. Economists say this highlights the inflationary pressures in the economy and the impending increase in diesel prices will further add to the pressure.

Some economists say the WPI inflation is expected to hit double-digit by September. The Reserve Bank of India is widely expected to again raise interest rates in its June policy review. It has already said that it stands ready to sacrifice some growth to tame inflation.

On Saturday, oil firms raised petrol prices by Rs 5 per litre which is expected to upset household budgets.

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Sensex down 120 points in opening trade

MUMBAI: The BSE benchmark Sensex lost nearly 120 points in opening trade today on fresh selling by funds and retail investors amid a weak trend on other Asian bourses and a hike in petrol prices by state-run oil companies.

The 30-share barometer, which had gained 195.49 points in the previous session, fell by 119.88 points to 18,411.40 within the first few minutes of trade, with auto, banking, metals and realty sector stocks coming under pressure.

Similarly, the wide-based National Stock Exchange Nifty index declined by 35.15 points to 5,509.60 points.

Brokers attributed the downslide on the bourses to a fresh round of selling by funds and retail investors in tandem with a weakening trend on other Asian bourses and the biggest-ever hike in petrol prices of Rs 5 a litre by state-run oil companies.

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IMF chief New York court appearance postponed

NEW YORK: A New York court appearance by IMF chief Dominique Strauss-Kahn to face charges he sexually assaulted a hotel maid has been postponed until Monday so he can undergo an examination, his lawyers said on Sunday.

"Our client willingly consented to a scientific and forensic examination tonight ... at the request of the government and in light of the hour we have agreed to postpone the arraignment until tomorrow morning," lawyer William Taylor told reporters outside Manhattan Criminal Court .

"He's tired but he's fine," Taylor said when asked about Strauss-Kahn.

ET

Sensex drops 0.5 pc; Suzlon up nearly 4 pc

MUMBAI: Indian markets dropped 0.5 percent in early trade on Monday, taking cues from weak Asian peers.

Wind turbine maker Suzlon Energy rose nearly 4 percent to 55.25 rupees after the company on Saturday reported a fourth quarter net profit of 4.32 billion rupees compared with a loss of 1.88 billion in the year ago period.

State-run oil marketing companies Indian Oil , Bharat Petroleum and Hindustan Petroleum rose between 2.3 and 3.6 percent after they raised petrol prices by about 5 rupees a litre on Sunday.

At 9:17 a.m. (0347 GMT), the 30-share BSE index was down 0.55 percent at 18,430.70 points, with 24 components declining.

The 50-share NSE index was down 0.5 percent at 5,517.80 points.

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Sensex up 72 pts on delay in fuel price hike and global cues

MUMBAI: The Bombay Stock Exchange benchmark Sensex on Wednesday gained over 72 points to 18,585 as investors bought heavyweights in view of the government move to defer a meeting to raise fuel prices and a firm global trend.

The Sensex, which ended on a flat note in the past two sessions, moved up 72.19 points or 0.39 per cent to 18,584.96, as stocks of State Bank of India, Tata Motors, Tata Steel, Hero Honda and Infosys recorded smart gains.

Similarly, the broad-based National Stock Exchange index Nifty rose by 23.80 points or 0.43 per cent to 5,565.05.

Stocks of Ranbaxy, the largest drugmaker by revenue, surged 6.37 per cent to Rs 477.70 after reporting first quarter earnings yesterday that beat market estimates. The healthcare index rose by 0.51 per cent to 6,088.95.

Brokers said investor sentiment improved somewhat after yesterday's meeting to hike fuel prices was postponed.

The imminent hike has been weighing heavy on the stock markets, as investors fear that the move would stoke inflation, leading to a further rise in interest rates.

They said a mixed trend in the Asian region and higher openings in Europe helped the market.

Realty, metal, auto and consumer durables remained on the fore-front and drove up the market.

Tata Steel rose 0.73 per cent to Rs 593.35, and Sterlite Industries by 1.47 per cent to Rs 176.60.

Metal stocks gained on firming trend in the London Metal Exchange Index.

The most beaten realty sector index gained 1.40 per cent at 2,143.12, followed by metals index, up 1.01 per cent at 15,647.74. Auto sector index gained 0.95 per cent to 9,189.82 and consumer durables by 0.72 per cent to 6,201.43.

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Home loans 25% costlier in 2 yrs, SBI’s now at 10.25%

MUMBAI: A large number of home loan customers with floating rates are in for some tough times ahead, with major banks and housing finance companies (HFCs) raising mortgage rates.

Over the last two years, interest on home loans has gone up by at least 200 basis points (100 basis points = 1%), from about 8% to above 10% for even the best-rated customers. That is a hike of about 25%. In some cases, industry experts said, such hikes could well have taken the tenure of home loans to beyond 20 years. This in turn raises the possibility of banks and HFCs now asking some customers to partpay the principal amount of home loans.

On Tuesday, State Bank of India, the country's largest bank, raised both its deposit and lending rates, taking its effective home loan rate to 10.25%. Last week, ICICI Bank, the second largest bank, raised its rates. HDFC Bank and HDFC are both expected to follow soon.

After the latest round of rate hikes, SBI's home loan customers would pay 100 basis points (bps) above its base rate of 9.25%; thus the effective rate becomes 10.25%. "With the banking leader in double digits, others will have to be above this level," an official with an HFC said.

Now consider a situation where a 40-year-old home loan customer had taken a loan about 2-3 years ago. As rates go up, banks usually increase the number of EMIs, rather than the amount of the EMI. If in this case, the number of EMIs go beyond 240 (that is 12 EMIs for each of 20 years), the customer will have to continue paying beyond his retirement age. In such a situation, the bank or the HFC, would "call and counsel" the customer and give him two options: Either increase the EMI so that the its number comes down to below 240, or pay a lumpsum which would reduce the borrower's outstanding principal amount and leave the EMI amount unchanged. "Increasing the EMI is best option, but at times, looking at the customer's financial position, we ask for some one-time part-payment of principal," official at a housing finance company said.

A back of the envelope calculation shows that home loan rates have increased by about 25% over the last few years, that is from about 8% to above 10% now.

On Tuesday, in addition to raising its base rate by 75 basis points to 9.25%, SBI also raised its fixed deposit rates by as much as 225 basis points (100 basis points=1%), all of which were in maturities of up to six months. The bank also raised its prime lending rate (PLR) by 75 bps to 14% now. All these hikes are effective Thursday.

The hike in FD rates is sure to cheer those who prefer the safety of bank FDs. From May 12, SBI will pay at the rate of 6.25%.

Rupee gains 7 paise against US dollar in early trade

MUMBAI: The Indian Rupee appreciated by 7 paise to Rs 44.67 per dollar at the Interbank Foreign Exchange today, supported by a higher opening in the stock market and dollar weakness against the euro and other Asian currencies.

The rupee had depreciated by 2 paise to close at Rs 44.74/75 against the US currency in yesterday's trade due to dollar demand from banks and importers in view of a firm trend overseas.

Forex dealers said dollar weakness against the euro and other Asian currencies overseas and a higher opening in the stock market helped the rupee gain some ground against the American dollar.

Meanwhile, the Bombay Stock Exchange Sensex was up by 62.23 points, or 0.33%, at 18,575.00 in opening trade today.

TOI

Sensex gains 62 points in opening trade on firm Asian cues

MUMBAI: The BSE benchmark Sensex opened over 62 points higher today on selective buying by funds and retail investors, taking cues from a firming trend on other Asian bourses after yesterday's losses.

The 30-share index of the Bombay Stock Exchange, which lost 16.19 points in the previous volatile session, recovered by 62.23 points, or 0.33%, to 18,575.00 in the first few minutes of trade today, with auto, metals, banking and realty stocks leading the recovery.

Similarly, the wide-based National Stock Exchange Nifty index also moved up by 15.60 points, or 0.28%, to 5,556.85.

Brokers attributed the rise in select stocks to fresh buying by funds and retail investors, driven by a firming trend on other Asian bourses following overnight gains in the US market.

Japan's Nikkei index was trading 0.65% higher, while Hong Kong's Hang Seng Index gained 0.28% in early trade today. The US Dow Jones Industrial Averaged ended 0.60% higher in yesterday's trade.

TOI

Gold prices in India slip despite heavy buying on Akshaya Tritiya; oil falls by $5

NEW DELHI: Even as buying activity remained high on the auspicious day of 'Akshaya Tritiya', both the precious metals tumbled today on weak global cues. Silver nose-dived by Rs 6,000 to Rs 53,200 per kg and gold plummeted by Rs 225 to Rs 22,120 per 10 grams.

Retail customers resorted to active gold buying to mark the day of Akshaya Triitya, considered to be an auspicious occasion in Hindu mythology to make token purchases.

Traders said the demand among retailers for the festival had hardly any impact of the sliding precious metals prices despite the ongoing weakening trend in domestic as well as overseas markets.

"The weakening trend has hardly impacted retailers activity as they are dedicatedly making token buying in gold on every fall in the market," said Suresh Verma, a Delhi-based jeweller.

"At least the buying has capped any major fall in gold prices, while silver remained unattended, losing substantial ground," he said.

Trading sentiments remained weak in silver as its prices recorded a steepest weekly fall since 1975 in global markets after impositions of higher margins. Gold also had its biggest weekly drop since February 27, 2009.

Silver in global markets, which normally sets a price trend on the domestic front, fell 12.01 per cent to USD 34.66 an ounce, taking losses to 28 per cent this week and gold by USD 43.40 to USD 1,473.10 an ounce in New York.

The Standard and Poor's GSCI index of 24 commodities sank 6.5 per cent on concern that slower global growth may crimp demand and investors sold to book-profits and shift their funds to surging equity markets.

On the domestic front, silver ready nose-dived by Rs 6,000 to Rs 53,200 per kg and weekly-based delivery by Rs 5,900 to Rs 53,100 per kg. Silver coins lost Rs 4,000 to Rs 59,500 for buying and Rs 60,500 for selling of 100 pieces.

In line with a general weakening trend, gold of 99.9 and 99.5 per cent purity plunged by Rs 225 each to Rs 22,120 and Rs 22,000 per 10 grams, respectively.

However, sovereigns, found scattered buying support from retailers and gained Rs 100 to Rs 18,300 per piece of eight grams.

Oil prices also fell 5 percent on Friday, after a 10 percent crash on Thursday, as fears about global economic recovery pushed investors to further unwind commodities positions.

Brent crude shed just over $5, recovering to trade at $107.16, $3.64 down, at 0848 GMT

Brent settled more than $10 lower on Thursday at $110.80 a barrel, the second biggest drop on record. At one point it gave up $12, its biggest fall ever.

US crude futures were $3.62 lower at $96.20 a barrel, up from as low as $95.25 a barrel earlier in the session.

The fall on Thursday was part a global dive over all commodities, driven by factors including a stronger dollar and weak economic data from Europe and the United States.

Goldman Sachs said it saw a further downside risk for oil prices in coming days but added the prices could return to or surpass recent highs by next year as supplies may reach critically tight levels.

"It is important to emphasize that even as oil prices are pulling back from their recent highs, we expect them to return to or surpass the recent highs by next year," Goldman Sachs' analysts said in a research note.

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Sensex snaps 9-session losing streak, up 225 points

MUMBAI: The BSE benchmark Sensex snapped its nine-session losing streak by gaining 225 points in early trade on Friday on renewed buying on easing of macroeconomic worries in view of a sharp fall in crude oil prices.

Bargain hunting emerged after the last nine days losing streak. The market breadth was strong. PSU OMCs rose as crude oil prices slumped.

Crude oil prices slumped the most in the early trade falling below USD 100 a barrel.

Among the 30-member Sensex pack, 21 stocks, advanced while the rest declined. ICICI Bank, Tata Motors and TCS rose by between 1.48% to 2.99%.

India's state-run Oil & Natural Gas Corp gained 1.25% on reports company will launch a follow-on public offering on July 5, 2011.

HPCL, Indian Oil Corporation and BPCL rose by between 1.6% to 2.35%.

The BSE benchmark Sensex resumed higher at 18,289.78 and shot up further to 18,480.93 before quoting at 18,435.63 at 1015 hours, showing a net gain of 225.05 points, or 1.24%.

The NSE 50-share Nifty also moved up by 57.65 points, or 1.06%, to 5,517.50 from its last close.

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Sensex loses 1,400 pts in nine sessions

MUMBAI: A statement by the CBI counsel in the Supreme Court, which is hearing the 2G telecom spectrum allocation scam around Thursday noon, unnerved the stock market and led to a 1.4% slide in the sensex, its ninth consecutive session of losses and the longest such stint in a decade.

K K Venugopal, the CBI lawyer, said the agency could seek further details from business tycoons Ratan Tata and Anil Ambani. The statement triggered further jitters among investors on Dalal Street, leading to panic selling in the second half of the session with the sensex finally settling at 18,211, down 259 points. Over the last nine sessions, the sensex has lost nearly 1,400 points, or 7.1% while investors wealth, measured in terms of BSE's market cap, is down by about Rs 4.30 lakh crore to Rs 66 lakh crore now.

The slide was again prompted by foreign fund selling, with real estate, software and FMCG stocks leading the laggards. BSE data showed that FIIs were net sellers at Rs 780 crore, taking the current month's net outflow figure to about Rs 3,200 crore ($700 million). Institutional dealers said most of this selling is coming from exchange traded funds of European origin which invest here through the FII route.

The main reasons for foreign fund selling are rising inflation, which is leading to higher interest rate, increasing crude prices, which could force the government's fiscal calculations to go haywire and expectations of moderation in growth rates, dealers said. On Thursday, the CBI counsel's statement led to a 5.5% slide in RCOM, which closed at Rs 89. Among other companies allegedly involved in the 2G scam, Unitech lost 3.4% to Rs 35 while DB Realty closed 3.3% down at Rs 86.

Among the sensex stocks, other than RCom, which was the top loser, Tata Power lost 5.2% to Rs 1,229 and Reliance Infra closed 4.2% off at Rs 617. Of the 30 sensex stocks, 27 ended in the red.

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Essar becomes first Indian co to supply plates for warships

NEW DELHI: Essar Steel on Thursday said it has become the first Indian producer of steel plates approved by the government for supply to the Indian Navy for building strategic war ships.

"Essar Steel's plate mill became the first primer plate producer in the country to be recognized for indigenous development of steel for building ships for the Indian Navy ... Company has received a prestigious order from Mazagoan Dock (MDL) to supply 13,000 tonnes of heavy plates," the company said in a statement.

The heavy plates will be used for manufacturing state-of-the art ships for defence and this is for the first time that MDL has placed an order for such a large consignment of steel plates from a domestic steel mill.

The order, the company said, follows a "stringent mill audit of Essar Steel's recently commissioned wide-plate mill conducted by teams from the Directorate of Naval Architecture (DNA), Defence Metallurgical Research Laboratory (DMRL) and the Director General of Quality Assurance (DGQA) of the Ministry of Defence."

Set up at a cost of about Rs 2,000 crore, the plate mill has an annual production capacity of 1.5 million tonnes. "Equipped with state-of-the-art equipment and controls -- along with cutting edge technology sourced from Siemens Voest Alpine -- the mill is the only one of its kind in the country capable of producing 5-metre wide plates conforming to global standards," it said.

The plates find applications in diverse segments, including defence, oil and gas, boilers and pressure vessels, heavy duty earth-moving machines, wind towers, mine protective vehicles and construction.

Claiming that its products are ultra-strong and all-weather resistant, the company said until now, these products were largely imported.

It said Essar has also become the country's only steel plant with integrated facilities and items ranging from heavy plates to hot rolling and cold rolling products, with a full distribution business under the brand Essar Hypermarts.

The plate mill has unique finishing facilities that include normalised rolled, furnace-normalised, direct quenched, quenched and tempered (QT) plates and accelerated direct cooling (ADCO).

Essar Steel, a part of the Ruias-led Essar Group has a production capacity of 14 million tonnes per annum (MTPA).

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Food inflation at 8.53% year-on-year on April 23

NEW DELHI: The country's food price index rose an annual 8.53% in the year to April 23 while the fuel and power index stood at 13.53% in the same period, data released by the commerce ministry showed on Thursday.

Food inflation in the year to April 23 was a shade lower than the previous week's 8.76%.

Food prices have moderated in the past few weeks but have stayed above 8% while the wholesale price index has remained around 9% for March. WPI inflation data for April is likely to be released next week.

The primary articles price index rose 12.11%, marginally higher than the previous week's of 12.08%.

The Reserve Bank of India (RBI) has raised interest rates nine times since March 2010 to tame inflation and has said it is ready to sacrifice growth to tackle price pressures.

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Fuel price hike likely next week

NEW DELHI: Your motoring and cooking bills look set to rise next week. The ministerial panel on fuel prices is scheduling a meeting on May 11 to consider raising fuel prices after polling in five states gets over on May 10.

An increase of Rs 2-2.50 per litre in the price of diesel and at least a Rs 25 per cylinder increase in the cost of a cooking gas refill looks imminent.

Simultaneously, the government is also expected to give state-run oil marketers the cue to raise petrol price by at least Rs 3 a litre.

The government sets prices of diesel, cooking gas and kerosene. Oil marketers are free to revise petrol price but seldom act without government nod, which had been held back in view of the polls.

An indication of the government's resolve to finally bite the bullet came from a statement by the Congress that aimed at distancing the party from the decision and signals moderation in the quantum of increase.

Describing diesel price revision as a "sensitive issue", spokesperson Jayanthi Natarajan said the party wants that "the life of the common man should not be affected by any oil price hike."

The rise in global crude prices has left little room for the government to manouevre. It has not allowed state-run oil marketers to revise petrol price since January 15 to avoid upsetting voters ahead of the state polls. Diesel has been left untouched since June last year.

The net result is that the oil marketers are estimated to have run up a loss of Rs 180,000 crore in 2010-11. Last heard, they were losing about Rs 8.50 a litre on petrol, Rs 16.76 a litre on diesel, Rs 29.69 on kerosene and Rs 329.73 on a cooking gas refill.

In spite of crude's fall over the last to days on the news of Osama bin Laden's killing, the mix of crude state-run refiners buy has averaged over $120 a barrel. On the other side, pump prices of petrol price corresponds to about $100 per barrel and diesel around $90-95 a barrel of crude.

Politically, this appears to be the time to raise fuel prices. State polls would be over and the next Parliament session would be two months away, allowing enough time for Opposition voices to trail off on the streets.

UPA coalition partners such as Trinamool Congress and DMK, who would have received the people's verdict in West Bengal and Tamil Nadu, respectively, would not have much reason to oppose an increase in fuel prices.

But the high rate of inflation, about 9% in March, may still weigh down the ministerial panel. Diesel and cooking gas together have a weightage of 5% in the index of prices. An increase in diesel price is also bound to push up prices of most essential items since it is the main transportation fuel. This would adversely impact food inflation, that somehow refuses to come down.

The panel can, however, take comfort from Reserve Bank of India governor D Subbarao's call on Tuesday for an immediate hike in petrol and diesel prices. Subbarao had said such a move was required even if it were to add to inflationary pressure and moderates economic growth.

Banks hike lending rates by 0.5%

CHENNAI: A day after the Reserve Bank of India raised its policy rates, banks on Wednesday were quick to take the cue and responded by increasing their lending rates. Punjab National Bank (PNB), Oriental Bank of Commerce (OBC) and Yes Bank have raised their base rate and the BPLR (bench mark prime lending rates by 50 basis points or 0.50%, thereby making loans costlier both for their new as well as the existing borrowers.


IDBI Bank was the first to raise its interest rates. The bank increased both its lending and deposit rates by 0.5% on Tuesday soon after RBI's announced rate increases. PNB's new base rate and BPLR are 10% and 13.5% and are effective Thursday. OBC has revised its base rate to 10% and the BPLR from 13.75% to 14.25%.In an unexpected move the RBI in its monetary policy announced on Tuesday increased its key policy rates by 0.50%. The repo rate -- the rate at which the central bank lends to the banks -- now is 7.25% while the reverse repo rate -- the rate at which it borrows from the other banks is 6.25%. The latest hike, ninth in the past year, is aimed at cooling headline inflation.


"Rate hike is inevitable now. We will decide about increasing our interest rates in the next two days," S C Bansal, executive director, United Bank of India, said.


Bank of Baroda, too, hinted at a rate hike. "We will take a call in a day or two. We may not hike our deposit rates, as we have already raised it 2.50% (over the past few months) while our lending rates have gone up by 1.5%," R K Bakshi, ED, Bank of Baroda said.

According to T M Bhasin, CMD of Indian Bank, the bank's senior brass is meeting on Thursday to consider rate increases. There is a possibility of a 0.50% increase in its base rate as well as BPLR. However, the bank is not keen to raise it deposit rates. "Deposit rates are already high. We are not going to raise our deposit rates for the time being," he said.

However, some banks like OBC may raise deposit rates. "We will take a call on deposit rates in couple of days. We may increase our deposit rates by 0.25% to 0.5% on deposits schemes with less than 1-year maturity," said S C Sinha, ED, OBC .

Sensex recovers by 51 points in opening trade

MUMBAI: The BSE benchmark Sensex gained 51 points in opening trade on Thursday on the back of bargain buying of select stocks by funds and retail investors.

The 30-share index of the Bombay Stock Exchange, which has lost 1,133 points in the previous eight straight sessions, rebounded by 51 points, to 18,520.36 with oil and gas, PSUs, banking and capital goods sector stocks staging a partial recovery.

Similarly, the wide-based National Stock Exchange Nifty index also moved up by 12.00 points, to 5,549.15 points.

Brokers attributed the recovery in opening trade to emergence of buying by funds and retail investors as several stocks turned attractive at prevailing levels after the recent slide.

Covering-up of short positions by speculators in some stocks also supported the recovery, they said.

Meanwhile, Hong Kong's Hang Seng Index shed 0.44% in early trade on Thursday.

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20 basic rules for investing in mutual funds

- Important

1. Having an investment goal before investing is very significant. Investing without any goal doesn't help much. Be clear about objective what you are trying to achieve.


2. Don't start investment in mutual funds by investing in sectoral funds. Choose quality large cap mutual fund or a balanced fund like HDFC Balanced Fund as the starting point.


3. Choose index funds for hands-off investment and balanced fund to diversify across asset classes.


4. Large cap funds add stability to the portfolio while small cap funds can generate better risk-adjusted returns.


5. For retail investors, systematic investment plan is the way to go (investing in staggered manner). Don't try to time the market. Time spent in the market is more critical for your portfolio than timing the market.


6. Review progress of your mutual fund investment portfolio once every quarter. Additionally rebalance the portfolio to align it with your asset allocation once in 12 months. Look at the portfolio, look at the benchmark returns, and look at the peer returns and whether they are comparable. If there is something which is not in consonance with these benchmarks or the peer performances, you should certainly look at the fund more closely and find out why they are either, performing, under performing or outperforming.


7. Do not look at ratings only of a mutual fund as a sole criterion for selection: they tend to change very fast. Other points to consider while investing in a mutual fund could be: (a) How big is the fund? (b) How often does it buy or sell? (c) What are the risks involved? (d) What are the costs (e) Track the fund house record


8. The most significant aspect is to be able to start early even with small amounts. Compounding of returns will do wonders to your portfolio.


9. Since risk and return are two sides of same coin, inflation is eroding your wealth silently and hence its significant to outperform that through appropriate balance between risk and return.


10. Don't over-diversify your mutual fund portfolio. Don't choose so many funds which can make it difficult for you to manage them. Ideally don't have more than 5 funds in your portfolio.


11. Try to diversify your mutual fund investments across various asset management companies (AMCs) to de-risk your investments. Fund houses like HDFC, Franklin Templeton, Birla Sun Life are pretty creditable ones.


12. Don't panic during market downturn and don't stop your SIPs and don't sell your mutual funds unit. It will enable you to get more units at same SIP price.


13. Always evaluate tax liabilities before redeeming your mutual funds investments.


14. A fund size can have an impact on performance but a lot depends on actual investment pattern.


15. Avoid investing lump sum amount in mutual fund. Instead invest in a staggered manner using systematic investment plans. Withdrawing money systematically through systematic withdrawal plans is a good option as it ensures you minimise the chances of missing out on any market surge and reduce vulnerability to a sudden stop.


16. If you are investing in sectoral funds ideally you should understand sectoral cycles and understand the tenure before investing. Timely profit booking can be a good strategy.


17. Mutual funds give best returns in the long term if you don't churn (buy and/or sell) them regularly. Any transaction within one year of buying a fund also attracts short-term capital gains tax at 20 per cent


18. High risk doesn't always guarantee high returns.


19. Discipline and commitment are the buzzwords while investing in mutual funds through systematic investment plans (SIP).


20. If you are a savvy investor and are in a position to take risks, then get into equity funds. Otherwise don't get into equity funds.

Sensex closes 65 pts down amid volatility

MUMBAI: In volatile trading, the BSE Sensex fell for the eighth session in a row on Wednesday to close at 18,469, down 65 points, as investors continued to offload stocks in view of RBI's hiking key rates and projecting lower GDP growth for this fiscal.

The 30-share Bombay Stock Exchange index, Sensex, which lost 1,068 points in the last seven sessions, fell another 65.33 points to close at 18,469.36.

However, gains in the most-heaviest Reliance Industries saved it from a bigger loss.

The gauge remained volatile throughout the session moved between 18,604.36 and 18,339.53.

Similarly, the broad-based National Stock Exchange index Nifty fell 28.10 points to 5,537.15 as stocks of auto, IT, metal and healthcare suffered heavy losses amid a weak Asian trend and lower openings in Europe.

The Reserve Bank on Tuesday raised lending (repo) rate by 50 basis points to tame inflation and projected 8 per cent economic growth for this fiscal, as against the government's forecast of 9 per cent.

RBI also hinted at further tightening, saying that inflation is likely to stay at "elevated levels" until September and it would give priority to taming the rate of price rise.

The auto sector index suffered the most, falling 1.33 per cent to 8,988.12. Hero Honda fell 3.63 per cent to Rs 1,600.10 while Bajaj Auto plunged the most since August 2009 by losing 4.82 per cent to Rs 1,301.10. Tata Motors lost 0.25 per cent to Rs 1,160.50.

However, a firming trend in the oil and gas sector, led by Reliance Industries, saved the market from a major fall. RIL stocks, with nearly 13 per cent weightage on the Sensex, gained 0.32 per cent to Rs 947.

As selling spread over a broad front, smallcap index eased by 0.54 per cent to 8,390.30 and midcap index by 0.45 per cent to 6,865.96.
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Sensex tanks 463 pts as RBI hikes rates, projects lower growth

MUMBAI: The BSE Sensex plunged 463 points to 18,534 on Tuesday as investors dumped interest-sensitive stock after RBI hiked key policy rates by 50 basis points to tame inflation, and projected low growth for this fiscal.

In its longest losing stint since November 2008, the 30-share Bombay Stock Exchange index, Sensex, which had lost 604 points in last six trading sessions, tanked another 463.33 points to close the day at 18,534.69.

The plunge was triggered by banking and other interest sensitive stock.

Similarly, the broad-based National Stock Exchange index Nifty dipped 136.05 points to 5,565.25 -- below psychological mark of 5,600.

After a weak start, the market tumbled as the Reserve Bank of India hiked short-term lending (repo) rate by 50 basis points to 7.25 per cent, while lowering the economic growth projection to 8 per cent for 2011-12.

The Sensex has declined 8.2 per cent this year on fears that high inflation and interest rates to tame it will make borrowing costly, crimping corporate earnings.

The banking sector index plunged by 3.11 per cent to 12,406.67, as State Bank of India lost 4.03 per cent at Rs 2,583.10.

The auto sector index was the worst performer and dropped by 3.74 per cent to 9,108.98 as on fears that high interest rates will hit sales.

Tata Motors dropped 5.30 per cent at Rs 1,163.45 and Mahindra and Mahindra fell 4.47 per cent to 707.85.

Another interest-linked realty sector index fell 2.91 per cent to 2,140.90 as DLF, the biggest developer, slid 2.56 per cent to Rs 220.80 and Jaiprakash Associates, a builder of dams, roads and bridges fell 8.05 per cent to Rs 85.05.

The two most-heaviest on the Sensex, with 23 per cent weightage - Reliance Industries and Infosys Technologies - closed with losses.
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Car sales growth slows in April

NEW DELHI: Car sales started the new fiscal on a modest note as rising interest rates and fuel prices are set to moderate demand from the scorching 30%-plus growth rate of 2010-11.

Companies are already concerned about the "negatives" that are building up at a time when vehicle prices have gone up due to higher input costs, hitting affordability and sentiments. Maruti and Hyundai both spoke of decline in footfalls. And with the central bank

RBI expected to tighten key interest rates further in its monetary policy review on Tuesday, the industry remains nervous.

"Higher prices of fuel and rising interest rates are already creating a pressure in the market. Footfalls in showrooms have come under pressure," Maruti's managing executive officer (sales and marketing) Mayank Pareek said. Hyundai's marketing and sales director Arvind Saxena said the bearish trend was likely to continue. "The rising interest rates have led to reduced enquires and the conversion rate too has slowed down," Saxena said.

The after-effects of the Japanese quake, that has forced companies like Honda and Toyota to slash production, are likely to put further pressure on sales. Maruti's sales in April grew in single digit. The company said domestic volume stood at 87,144 units, up by 9%. For Hyundai, the growth was 11% as it sold 31,636 units in the first month of this fiscal.

The biggest disappointment came from Japanese giant Honda, which saw volumes fall by as much as 44% at 2,012 units. "As announced earlier, the Japan issue prompted us to reduce production at our Greater Noida plant to 50% from this month. However, production adjustments for a smooth transition began from mid-April," said Jnaneswar Sen, sales and marketing head at Honda Siel Cars.

New models from Ford, Volkswagen and Toyota had led the charge last year.

However, a strong base caught up with Ford that saw volumes decline by 2.5%. It will launch its new global sedan Fiesta in the market soon as it goes ahead with its plans to bring in eight new models by 2015.

Analysts said any big push in demand will come only from the new models that would hit the market later this fiscal. However, doubts have surfaced even on this as the Japanese quake and tsunami have impacted the plans of Honda and Toyota, both of whom are slated to get in new small cars. While Toyota has to launch the Liva compact, Honda is to get the Brio hatchback. "The situation remains fluid as we speak," Sen said.

The analysts said that despite the negatives, the economic growth is expected to keep demand going. "So long as the economy continues its pace, there is not a big worry for companies as salaries will rise and jobs created. This will keep the momentum going, although at a slower pace," an analyst with a brokerage firm said.


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Rupee opens 8 paise lower against US dollar

MUMBAI: The Indian rupee depreciated by 8 paise to Rs 44.41 against the US dollar in early trade on the Interbank Foreign Exchange on Tuesday, weighed down by dollar gains against other currencies overseas and a weak trend in the equity market.

Forex dealers said the strengthening of the dollar against major currencies overseas and a weak start in the stock market mainly put pressure on the rupee.

The rupee fell by 11 paise to close at Rs 44.33/34 against the US currency in yesterday's trade due to dollar demand from banks and corporates.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell by 97.39 points, or 0.51%, to 18,900.63 in opening trade on Tuesday.

Sensex down 138 points; below 19,000

MUMBAI: The BSE Sensex on Monday closed below the 19,000 mark, down 138 points, declining for the sixth straight session as investors remained cautious ahead of RBI meeting tomorrow, expecting a hike in key rates.

Interest-sensitive banking stocks fell the most. Global stock markets also exhibited a weak trend.

The 30-share Bombay Stock Exchange index, Sensex, which had lost 466 points in the last five trading sessions, fell further by 137.94 points to close at 18,998.02.

It has closed below the 19k mark in over a month. Similarly, the broad-based National Stock Exchange index Nifty lost 48.20 points to 5,701.30 as banking, consumer durables and refinery sector stocks suffered major losses.

Brokers said market participants turned cautious on fears that the Reserve Bank might adopt a hawkish stance at its annual monetary policy meeting, in view of high inflation amid soaring crude oil prices.

They said state-owned banks, led by SBI, declined after Morgan Stanley downgraded them on fears that any further hike in borrowing rates would reduce their interest margins.

However, a rise in the second most-heaviest stock Infosys Technologies on reshuffling its top management, amid growth concerns, saved the market from any major fall, they added.

The decline was also partly capped following reports that the six core sector industries grew by 7.4 per cent in March and by 5.9 per cent during 2010-11.

The banking sector index suffered the most by losing 2.08 per cent to 12,804.48, followed by consumer durables, shedding 1.76 per cent at 6,280.29 points.

The BSE Oil and gas index too ended 1.34 per cent lower at 9,873.71, while metals index declined by 1.04 per cent to 16,021.55.

Infosys chairman-elect KV Kamath profile

MUMBAI: When Kundapur Vaman Kamath takes over the chairmanship at technology major Infosys in August this year, it will be a rare occasion for one of India Inc's most respected managers to head simultaneously two companies which have re-defined businesses in their own fields.

While ICICI Bank, where Kamath took over as the non-executive chairman about two years ago, is the leading private sector bank in the country, Infosys, over the years, has played a leading role in building the respect that Indian IT professionals command in every corner of the world.

The professional world will look at Kamath to guide Infosys through one of its toughest times in its 30-year history when its peers are competing with it in every sub-segment in the IT sector like never before and analysts are questioning if it could maintain its position as the country's technology bellwether. For, the IIM-A alumnus has the credentials to transform a development finance institution and a pure-bred government body into a technology-driven private sector banking major that its competitors emulated, be it products, technology or aggression.

The question now is: can he repeat his magic once more?

"He (Kamath) has the ability to see the future trend and keep the company ready for the same,'' said Chanda Kochhar, MD & CEO, ICICI Bank, who has worked with Kamath for several years. Over the years he showed his skills in guiding ICICI Bank to become the early bird in areas like insurance, retail lending, internet banking, online trading, business process outsourcing and commodities trading.

Kamath had shown India Inc how to leverage on technology to take banking to the masses, brought in best practices from industries like auto, hospitality and aviation into banking, and also demonstrated how to manage mergers successfully. He is also known for his ability to spot talent early and nurture them. Currently, in the countrys financial sector, nearly a dozen top CEOs have spent a few years in ICICI Bank and have worked with Kamath.

The engineer-turned-banker also showed his negotiating skills when he brokered a deal between the two Ambani brothers, both of whom, individually, are among the richest people in the world.

Sensex opens over 60 points higher

MUMBAI: The Bombay Stock Exchange benchmark Sensex recovered by over 60 points in opening trade on Monday on emergence of buying in fundamentally strong shares at attractive low levels.

However, market participants kept their commitments restricted ahead of the RBI's monetary policy review this week.

The 30-share barometer, which has lost 466 points in the previous five sessions, recovered by 60.73 points, or 0.32 per cent, to 19,196.69 points in the first five minutes of trading.

Similarly, the wide-based National Stock Exchange Nifty index also moved up by 8.85 points, or 0.15 per cent, to 5,758.35.

Brokers said the emergence of buying by funds and investors, taking positive cues from other Asian markets in line with gains in the US market, mainly influenced the trading sentiment.

In the Asian region, Japan's Nikkei index rose by 1.16 per cent in morning trade today. The US Dow Jones Industrial Average ended 0.37 per cent higher in the previous session.

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