Sensex jumps 201 points to two-month high

MUMBAI: In a five-day long rising streak, the BSE benchmark index Sensex climbed to a two-month high adding over 201 points on buying by funds on expectations of better economic growth, shrugging off inflationary concerns.

The 30-share index, which had gained nearly 943 points in last four sessions, advanced further by 201.41 to 18,693.86, a level last seen on May 2.

Investors covering their pending short positions ahead of the ending of June month contract expiry in the derivatives segment tomorrow, further also fuelled the uptrend, marketmen said.

A firming trend in global markets on easing concerns of European sovereign debt crisis also boosted the sentiments.

Trading sentiment turned bullish as Finance Minister Pranab Mukherjee stood by his economic growth target even after the longest string of monetary tightening measures in a decade, brokers said.

Mukherjee said the economy will grow by 8.5% in 2011-12 and the recent hike in prices of petroleum products will not have much impact on the fiscal deficit.

In similar fashion, the broad-based National Stock Exchange index Nifty traded above 5,600 mark level by adding 55.15 points to settle at 5,600.41.

The rally was mostly contributed by FMCG, metal, banking, IT and realty stocks. The FMCG sector index gained the most by 2.58% to 3,972.89, followed by the metal index that rose by 1.52% to 14,987.98.

Market heavyweights Reliance Industries and Infosys Technologies closed with handsome gains. RIL rose by Rs 14.75 to Rs 885.30 and Infosys by Rs 17.90 to Rs 2,881.75.

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Rupee gains 4 paise against US dollar

MUMBAI: The rupee appreciated by 4 paise to Rs 44.99 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 fell by 4 paise to close at 45.03/04 against the American currency in Monday's trade despite bullish domestic equities.

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

TOI

Sensex down 19 pts after 3-week high

MUMBAI: The BSE benchmark sensex surged to a three-week high in early trade on Tuesday but failed to maintain the initial gains and was trading down by 19 points at 10.15am on profit-booking in oil&gas, IT, realty, FMCG and PSU counters.

The BSE benchmark sensex resumed higher at 18,493.59 and shot up further to a three-week high to 18,527.45 amid strong buying in healthcare, consumer durable, power, capital goods and metal stocks on the back of strong inflows from foreign institutional investors (FIIs).

However, the sensex declined immediately to 18,379,78 before quoting at 18,393.56 at 10.15am, showing a loss of 18.85 points, or 0.10 per cent.

The NSE's 50-share Nifty index also declined marginally by 4.40 points, or 0.08 per cent, to 5,522.20 at 10.15am.

Major losers from the sensex pack include Jaiprakash Associates (down 2.75 per cent), DLF (2.23 per cent), Wipro (1.80 per cent), ITC (1.16 per cent) and TCS (1.01 per cent).

Asian stocks rose in early trade on speculation that Greece may be allowed to roll over some of its bonds, easing concerns that the nation's sovereign debt crisis will spread across Europe, one of Asia's biggest export markets.

Key benchmark indices in Hong Kong, Indonesia, South Korea, Japan and Taiwan were up by between 0.05 per cent and 1.14 per cent. The key benchmark indices in China, Singapore and Taiwan fell by between 0.01 per cent and 0.6 per cent.

TOI

Rupee depreciates by 6 paise against dollar

MUMBAI: Ignoring smart rise in local equities, the rupee depreciated by six paise to close at 44.95/96 against the US currency on the back of a firm dollar overseas and continued funds outflow.

Dealers said that the main reason behind the fall in the rupee was firm dollar overseas.

Moreover, persistent dollar demand from some banks and importers, mainly oil refiners, put pressure on the rupee, they said.

Some dollar sale by exporters, however, capped the fall in the rupee, they added.

FIIs remained net sellers for the ninth straight session and sold shares worth Rs 287.4 crore Wednesday as per provisional data.

The Bombay Stock Exchange benchmark Sensex shot up 177 points to 17,727 as investors ignored spurt in food inflation and a string of concerns over domestic as well as global economic growth, buying heavyweights like RIL and Infosys.

"Globally Dollar gained against the major currencies like EUR, GBP & JPY. It also traded strong against Rupee and touched a major resistance of 45.00. Local equities traded bullishly which helped rupee to end below 45 levels. Expect Rupee to trade above its resistance in coming days," Alpari Forex ( India) CEO Pramit Brahmbhatt said.

"The trading range for the USD/INR will be 44.70 to 45.20 tomorrow," he added.

At the Interbank Foreign Exchange (Forex) market, the local unit opened lower at 44.92/93 a dollar from previous close of 44.89/90 and moved in a range of 44.80 and 45.00 before concluding at 44.95/96.


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India's super rich club 12th largest in the world

NEW DELHI: Number of high net worth individuals (HNWI) is growing in India. HNWI population of the country grew by 20.8% to 1.53 lakh in 2010 compared to 1.26 lakh in 2009, according to the 15th annual World Wealth Report, released by Merrill Lynch Global Wealth Management and Capgemini. Now, India's HNWI population is the world's 12th largest, replacing Spain which dropped to the 14th position.

And the growth of Indian millionaires is fuelled by robust economic and equity-market performance, the report added. "With a GDP growth rate of 9.1% in 2010 and an increase in market capitalization by 24.9%, India offers a great opportunity and continues to remain an important market for wealth management providers worldwide," said Atul Singh, MD and head, Merrill Lynch Global Wealth Management , India.

Indian millionaires also showed growing interest in investments like luxury collectibles (luxury cars, boats and jets), as also in sports, the survey found.

The world's HNWI population expanded and wealth accumulation in 2010 surpassed 2007 pre-crisis levels in nearly every region. Population of HNWIs increased by 8.3% to 10.9 million in 2010 and financial wealth of HNWIs grew 9.7% to reach $42.7 trillion compared to 17.1% and 18.9% respectively in 2009.

Asia-Pacific region has surpassed Europe in terms of HNWI population. It expanded by 9.7% to 3.3 million, while Europe grew 6.3% to 3.1 million, said the report. Wealth of HNWIs in Asia Pacific rose 12.1% to $10.8 trillion, exceeding Europe's 7.2% growth to $10.2 trillion.

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Sensex regains 18k level after 9-days as crude falls

MUMBAI: The BSE benchmark sensex added over 356 points to regain the 18,000-level after nine-days during intra-day trade today on heavy buying in blue-chips after a steep fall in crude prices and easing concerns on fuel prices hike.

The Bombay Stock Exchange benchmark index climbed 356.08 points to 18,083.57 at 1145 hrs, with most oil company stocks rising.

The National Stock Exchange's broader Nifty index rose by 94 points to 5,414.

The trading sentiment improved after oil minister S Jaipal Reddy said his ministry has made no specific proposal on increasing auto and cooking fuel prices for consideration by the EGoM on fuel prices later today, easing concerns of more monetary tightening to curb inflation.

Crude oil prices dropped by 4.6% to $91.02 a barrel in New York yesterday.

The largest state-owned oil explorer, Oil and Natural Gas Corp, surged by 3.18%, the most in a month, to Rs 272.90, while Gas Authority of India gained 2.20% to Rs 446.50.


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Sebi plans to regulate MF distributors

MUMBAI: Market regulator Sebi plans to start regulating mutual fund distributors to make the industry safer and bring down incidences of miss-selling. The plan, now in its formative stage, is to start regulating large distributors, or those who are above a threshold limit, and then based on the experience slowly expand to include other distributors.

"We are looking into distributor regulation, but this will be in a non-disruptive manner," UK Sinha, chairman, Sebi, said at a mutual fund industry conference. "To begin with, this might be for a limited number of large distributors," Sinha added. He was addressing the plenary session at CII's annual Mutual Fund Summit here.

The regulator also plans to look into the stringent advertisement rules that fund houses have to adhere to, which will have lesser but more relevant disclosure than now. Sinha, who during his tenure in the finance ministry had worked on the pension fund regulations bill, advised the fund industry to come out with proposals on how they can tap the pension market in India.

The Sebi chief also said that the regulator was working on having a uniform know your client (KYC) standard for all the market intermediaries under his regulatory purview. Sebi is also planning to look at the track record of fund managers and disclose the same to investors, which could help, especially the retail investors, in taking an informed decision while investing in MF schemes.

To bring in first time investors and grow the mutual fund business, Sebi plans to find some way to remunerate MF distributors. For the top officials of the fund industry who were present at the conference, it was a welcome break, with the regulator assuring it all the support to develop the industry and penetrate deeper into the country. Last year, when former Sebi chief CB Bhave had addressed the same event, some had hoped for a reversal of the entry load, at least partially. However, there was not much from Sebi's side. This year, however, as the Sebi chief extensively cited global fund industry data to put forward his point that the Indian fund industry has a long way to go, chiefs of fund houses came out on a positive note.

"Two things stand out in today's speech. For one, there is a huge need to get new investors into the MF category which is being addressed in the form of distributors' remuneration," said Jaideep Bhattacharya, group president & CMO, UTIMF. "And the proposal for common KYC across all capital market products will bring in lot of convenience to investors," he added.


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Sensex down 41 points in opening trade on weak global cues

MUMBAI: The BSE benchmark Sensex fell by over 41 points in opening trade on Thursday, extending Wednesday's losses on continued selling by foreign funds and retail investors amid weak cues from global markets.

High inflation and rising interest rates also kept the trading sentiment weak.

The 30-share barometer, which lost 9.67 points in Wednesday's see-saw session, moved down further by 41.49 points, or 0.23 per cent, to 17,509.14 in opening trade on Thursday.

Stocks of banking, realty, auto and metal companies remained under pressure.

Similarly, the wide-based National Stock Exchange Nifty index shed 16.30 points, or 0.30 per cent, to 5,262.00.

Market experts said the trading sentiment remained bearish amid a subdued trend on other Asian bourses, tracking overnight losses in the US market.

In addition, high inflation and rising interest rates dampened the trading sentiment, they said.

In the Asian region, Hong Kong's Hang Seng index was trading 0.78 per cent lower and Japan's Nikkei shed 0.74 per cent this morning. In the US, the Dow Jones Industrial Average ended 0.66 per cent lower in Wednesday's trade.

Rupee down 5 paise against US dollar in early trade

MUMBAI: The Indian rupee lost 5 paise to Rs 44.91 per US dollar in early trade on the Interbank Foreign Exchange on Monday, weighed down by dollar gains against the euro and a weak trend in the stock market.

Dealers said strengthening of the dollar against the euro and some other currencies and a lower opening in the stock market mainly put pressure on the rupee.

The rupee rose by 4 paise to close at Rs 44.86/87 against the US dollar in the previous session on Friday on mild selling of dollars.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell by 72.15 points, or 0.40 per cent, to 17,798.38 in early trade on Monday.

TOI

Sensex tumbles by 384 points on sustained selling

MUMBAI: The BSE benchmark Sensex dropped sharply by 384 points in early trade on Monday, extending its losses for the fourth straight session on sustained selling by foreign funds and retail investors amid mixed global cues.

IT stocks extended their recent losses on weak economic data from the US and the continuing sovereign debt crisis in Europe.

The major losers in early trade were RCom (down 7.10 per cent), Reliance Infra (6.80 per cent), Jaiprakash Associates (4.66 per cent), Cipla (4.37 per cent), M&M (3.59 per cent), Wipro (3.55 per cent) and TCS (3.49 per cent).

Market experts said the trading sentiment remained bearish on concerns of rising interest rates and reports of lower advance tax collections by the government.

The BSE benchmark Sensex resumed higher at 17,925.17, but later it dropped sharply to a low of 17,314.38 before quoting at 17,486.10 at 1015 hours, showing a sharp loss of 384.43 points, or 2.15 per cent, from its last close.

The NSE's 50-share Nifty index fell by 126.60 points, or 2.36 per cent, to 5,239.80 at 1015 hours.

Asian stocks were mixed early on Monday. The key benchmark indices in Japan, Indonesia, Hong Kong and Singapore, rose by between 0.2 per cent to 0.53 per cent. However, the key indices in China, South Korea and Taiwan fell by between 0.08 per cent to 0.88 per cent.

Trading in US index futures indicated that the Dow could fall by 39 points at the opening bell on Monday.

TOI

RCOM and R-Infra out of sensex

MUMBAI: The BSE has decided to take two Anil Dhirubhai Ambani Group stocks-Reliance Infrastructure and Reliance Communications (RCOM)-out of the elite sensex index, which analysts say could lead to a selling pressure on the two stocks. In a late evening development on Friday, the BSE's index maintenance committee simultaneously replaced these two ADAG group scrips on the sensex with Coal India and Sun Pharma.

While Coal India is the most valued PSU and the second most valued company in India with a market capitalization of Rs 2.5 lakh crore, Sun Pharma, with a market cap of nearly Rs 50,000 crore is the most valued pharma company now. The changes are effective August 8, a BSE release said. The exclusion of R-Infra and RCOM is sure to add pressure on these stocks, since fund managers who have benchmarked their funds, including passive sensex-based exchange traded funds, will now be forced to sell these stocks and buy the two scrips which have now been included in the index.

Lately the RCOM stock has been under tremendous selling pressure as it failed to meet the growing challenges in the telecom space with its peers competing fiercely on tariffs, customer service and also acquisition of new clients. The company in particular and the ADA group in general faced another setback when the government agencies investigating the 2G telecom spectrum scam arrested three of its top executives and grilled the group's chairman Anil Ambani. Over the last one year, while RCOM has lost nearly 50% of its value to Rs 95 on the BSE now, R-Infra too lost over 50% to its current level of Rs 580.

RCOM was included in the BSE sensex in June 2006, within months of it being listed on the BSE after the company was demerged from Reliance Industries. It had then replaced Tata Power. Data on the BSE website does not show when R-Infra was included in the elite 30 stocks. The inclusion of Coal India was expected since its blockbuster IPO last November. However, BSE's rules for inclusion in the sensex, among others, required a continuous trading history of six months.

For Sun Pharma, this is the second entry into the sensex, but on both the occasions the same has been dramatic. The stock was first included in the index in January 2009 when it replaced Satyam Computer, soon after the accounting fraud in the software major was revealed. And this time, it is replacing RCOM, which was one of the most talked about stocks on Dalal Street just a few years ago.

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New in-ads notice label and icon

You've probably noticed that AdWords ads appearing on your site have a special "i" icon that expands to an "Ads by Google" label in the bottom corner of the ad. Users who click this label are taken to a page where they learn more about online advertising and the ads they've seen. Giving users clear notice about the ads they see is a high priority for Google and for many in the online advertising industry at large.

We'll soon start to change our in-ads notice icon to a new icon that expands to an "AdChoices" label. These notifications were developed by the online advertising industry’s Self-Regulatory Program for Online Behavioral Advertising to more proactively give users notice and choice about the ads they see. With the change from our "i" icon and "Ads by Google" label to these new notifications, we hope to show our support for this cross-industry initiative, and to increase our users' understanding about ad choices through adoption of an icon they'll see on ads across the web.



In a few weeks, we'll begin to show the new icon and label on most ad formats across the majority of English-language sites. Over time, we’ll expand the notice to ensure that all English-language publisher sites in the Google Display Network come within the Self-Regulatory Program (until then, these sites will show the existing “i” icon and “Ads by Google” label). This will be the single most widespread rollout of the "AdChoices" label to date, and we're encouraged that others in the industry are similarly adopting it. We’re also looking at ways to increase transparency and control in other languages and countries. In the meantime, those languages and countries will continue to see the “i” and “Ads by Google” notice.

Just like before, users who click on the "AdChoices" label will be taken to a page where they can learn more about online advertising and the ads they've just seen. This page will also provide a link to the Ads Preferences Manager, where users can control the types of interest-based ads they see. Our tests of this new icon and label showed that they should not have any effect on ad performance. We think this rollout will help users better understand the ads they're seeing, and we look forward to seeing widespread adoption of this label throughout the industry.

Posted by Katrina Kurnit - Inside AdSense Team

Sensex gains 84 points on firm Asian cues

MUMBAI: The Bombay Stock Exchange benchmark sensex gained over 84 points in opening trade on Tuesday, snapping a four-session losing streak on the back of a fresh spell of buying in oil and gas, metals and banking stocks amid a firming trend on other Asian bourses.

The 30-share index of the Bombay Stock Exchange, which has lost over 228 points in the previous four sessions, recovered by 84.37 points, or 0.45 per cent, to 18,350.40 in the first few minutes of trade, with select blue-chips leading the recovery.

The wide-based National Stock Exchange Nifty index regained the 5,500 points level by rising 27.20 points, or 0.46 per cent, to 5,510.00.

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

Japan's Nikkei index was trading 0.16 per cent higher, while Hong Kong's Hang Seng Index rose 0.27 per cent in early trade on Tuesday. The US Dow Jones Industrial Averaged ended 0.01 per cent higher in yesterday's trade.

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Inflation rises to over 9%, RBI may hike interest rates again

NEW DELHI: Driven by rising prices of fruits, milk, petrol and manufactured goods, headline inflation surged past the 9 per cent mark in May, raising the expectations of another hike in key policy rates by the Reserve Bank of India later this week.

Inflation rose to 9.06 per cent in May from 8.66 per cent in April, prompting Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan to describe the trend as "upsetting" and pitch for tightening of the monetary policy by the RBI to cool rising prices.

The central bank, which has raised key interest rates nine times since March, 2010, to check rising prices, is slated to conduct a mid-quarterly review of the monetary policy on Thursday. The RBI would try to balance the need to tame inflation and promote industrial growth, which has slipped to 6.3 per cent in April from 13.1 per cent a year ago.

"I think the inflation numbers are in a sense upsetting... We need to address the issue of inflation even more strongly. We need to use more monetary and fiscal policy to contain inflation," C Rangarajan told reporters here.

According to Wholesale Price Index (WPI) data released by the government today, several essential items, including rice, fruits, petrol, edible oils, cotton textiles and iron and steel products, became more expensive during May in comparison to April.

Inflation, according to Planning Commission Deputy Chairman Montek Singh Ahluwalia, "is a problem (but) we still remain hopeful... It has gone up, which is not unexpected, because the preliminary indications said it would go up."


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Sebi mulls demat, IPO norm recast

MUMBAI: In a bid to ensure greater participation of retail investors in the stock market, Sebi is planning a series of changes to the existing demat, IPO and secondary market trading rules. These changes will not only make the stock market a safer place but also streamline the entire process of investing, Sebi chairman U K Sinha told TOI in an interview. Separate committees have been set up to work on these initiatives, he added.

"We have been able to identify a number of irritants (for investors). And we will spend the next few months removing them," Sinha said. However , he added, the changes being planned will in no way be at the cost of diluting the antimoney laundering rules and the policies of Financial Action Task Force (FATF), an international body that helps in combating terror financing.

Sebi also plans to overhaul the 'Know Your Client' (KYC) process to make it simpler for investors and modify IPO forms. The KYC process identifies each investor and helps the regulator and other market intermediaries track down transactions from start to completion. Sinha underlined the need for streamlining the KYC procedure as various market-related agencies have different standards which often duplicate work and inconvenience investors. "The next thing we are going to do is to have not only a uniform standard but a common and inter-operable KYC," Sinha said. Which means if an investor has fulfilled his KYC requirements at any of the Sebi-authorized places, that will be valid at all points of the market, like depository , mutual fund, brokers, etc.

"The new regime will be 100% compliant with Prevention of Money Laundering Act (PMLA) and with FATF, of which India is a full member . The idea is to make it standardized but simple," he said. A public sector body or companies from the private sector may be roped in to provide this standardized service , he added.

The regulator is also working to simplify the demat account opening process. Currently, while opening a demat account, an investor has to fill in a booklet which is over 50 pages and has to sign more than 50 times.

"We are working to simplify the form," Sinha said. Besides , Sebi also believes that IPO documents and the information given to investors in the form of disclosures are voluminous and they do not communicate anything significant . "Investors usually want to know at what price an IPO is offered and compare it to its peers, what multiple is it as per its known earnings, and at the same time what is the sectoral ratio, etc." Sinha believes such useful information is either not provided or is lost in the voluminous offer documents.

Sebi has also found that often investors would like to know about the track record of merchant bankers who bring an issue to the market. Such information seems to be necessary for ordinary investors and hence would be made available to retail investors once the IPO rules are changed. "These are much more important information than the 150-200 pages of information that we are giving ," the Sebi chairman said. "We have set up a group and I'm hopeful that very soon we will be able to modify these forms. The idea is to provide relevant information and disclosure to the investor in a manner that he can understand ," he added.

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Sensex ends flat; down 3 pts on inflation worries, global cues

MUMBAI: The BSE benchmark Sensex closed almost flat on Monday, losing over three points at 18,266.03, as heavy-weights like Reliance Industries (RIL) and country's largest lender State Bank of India (SBI) came under selling pressure amid high inflation and weak global cues.

Carrying forward its losses into the fourth day, the Bombay Stock Exchange's Sensex eased by 2.51 points as RIL, the topper among the 30-scrip index, tumbled 1.84% on reports of oil sector regulator rejecting three new gas finds by the Mukesh Ambani-led company in KDG-6 fields.

Broad-based National Stock Exchange index Nifty also eased by three points to 5,482.80 on inflationary concerns as rising commodity prices indicated a possibility of another hike in interest rate.

Food inflation in May-end, which shot up to a two-month high, has increased pressure on the RBI to raise interest rates in its policy meeting on June 16. If the central bank were to rise rates, it will be for the 10th time in last 15 months.

RIL, largest lender SBI, country's biggest software exporter TCS, Tata Steel, Hindalco, Tata Motors and Maruti Suzuki were among the major losers on Sensex. However, gains by Infosys Technologies cushioned the market from any major fall.

Infosys, the Sensex most valuable stock after RIL, rose by 0.56% to Rs 2,877.55 while infrastructure major Larsen and Toubro gained 0.84% to Rs 1,707.90 a piece.

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World stocks hit 12-week low on growth jitters

LONDON: World stocks fell to a 12-week low on Monday as Chinese data highlighted concerns about weaker global growth momentum, prompting investors to unwind positions in higher-risk assets and buy government bonds.

The euro was a touch lower, weighed down by the lack of progress on how to get commercial banks involved in a second bailout for Greece.

Chinese stocks ended at a 4-1/2 month low, hit by worries about the impact of monetary policy tightening in an economy which is a key driver of world growth.

China's money growth slowed to a 30-month low in May and banks extended fewer new loans than expected, while exports to the United States and EU hit their weakest since late 2009.

Uncertainty over future U.S. monetary policy after the Federal Reserve's $600-billion bond buying programme ends this month also added to investor aversion to taking on more riskier assets, especially going into the thinner summer months.

"The bears are very much out in force across equity markets and with more downbeat economic data expected in the days ahead, it seems that they may retain the upper hand for some time yet," IG Markets dealer Terry Pratt said. The MSCI world equity index fell 0.2 percent to its weakest since mid-March. The index has lost nearly 8 percent since hitting a three-year peak in late April and is very close to erasing all of its 2011 gains.

The FTSEurofirst 300 index was broadly steady while emerging stocks lost a third of a percent.

The euro eased just 0.1 percent to $1.4336 against the dollar and fell towards record lows versus the Swiss franc, but remains supported by expectations that the European Central Bank will raise interest rates in July.

The key risk remains the effect of any kind of restructuring or reprofiling of Greek debt.

There were signs over the weekend that German and French banks were leaning towards contributing to a Greek rescue, but it remained unclear how they could do so without triggering a default or credit default swap contracts.

That issue has pitted the ECB against Germany, which has proposed a bond swap, and a raft of other EU political decisionmakers.

"What the euro needs is a resolution to the Greek crisis and the politicians and the central bankers do not appear to be close to finding one," said Kit Juckes, currency strategist at Societe Generale.

"That uncertainty is weighing on the euro and I expect it to be stuck in a $1.40-$1.47 range."

US crude oil fell 0.4 per cent to $98.92 a barrel. Saudi Arabia will raise output to 10 million barrels per day (bpd) in July, Saudi newspaper al-Hayat reported on Friday, as Riyadh goes it alone in pumping more outside official OPEC policy, aiming to place additional supplies among Asian buyers.

The bund futures rose 17 ticks. The dollar was steady against a basket of major currencies

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Sensex starts on quiet note

MUMBAI: Sensex started trade on a quiet note with a benchmark index on Thursday flat in opening trade and broader indices nudging up.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 18,394.57 points, was ruling at 18,412.21 points -- up 17.92 points or 0.1 percent from its previous close at 18,394.29 points.

The 50-scrip S&P CNX Nifty of the National Stock Exchange was also trading lacklustre at 5,533.05 points, up 0.13%.

Broader markets were ruling moderately up with the BSE midcap index rising 0.3% and the BSE smallcap index up 0.25%.

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IMF chief's selection on merit: Lipsky

BEIJING: Acting IMF managing director John Lipsky said he was confident that selection of the fund's next chief would be based on merit, as French finance minister Christine Lagarde made her case in China.

The goal of the selection process is "to be open -- open means open to everyone -- transparent, and merit-based. We are confident that that will be the result of this process," Lipsky told a news conference on Thursday.

Lipsky, in Beijing for the International Monetary Fund's annual policy talks on the Chinese economy, also said it was "a complete coincidence" that his visit was at the same time as Lagarde, a frontrunner to lead the global lender.

Lagarde, in the Chinese capital to drum up support for her IMF bid, said on Thursday that she felt "very positive" about her talks in Beijing, and backed China's right to fill a top job at the Washington-based fund.

Lipsky said he was "highly confident that our membership will choose a leader who is talented, experienced, energetic and effective".

On China's economy, Lipsky said the country continued to be a "bright spot" for global growth and the IMF maintained its forecast for the world's second-largest economy to grow around 9.5 percent this year and next.

He also expects inflation, which has been hovering above five percent, to ease to around four percent by the end of 2011.

But Lipsky warned China faced financial risks from a massive credit binge in recent years, increased off-balance sheet lending -- apparently referring to a surge in local government debt -- and soaring property prices.

A rebalancing of China's export-dependent economy was critical for the stability and growth of the world economy, and a stronger and more flexible yuan was "absolutely part of that", he said.

Lipsky added that the yuan needed to become more freely convertible and more widely used for it to be included in the basket of currencies that determine the value of the IMF's Special Drawing Rights, an international reserve asset.

"It is certainly agreed that over time, the yuan is likely to become a candidate for inclusion in the SDR basket," he said.

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Govt open to more fuel subsidy: Pranab

NEW DELHI: Finance minister Pranab Mukherjee on Tuesday suggested that the government was open to increasing the fuel subsidy beyond the budgeted level, if needed.

The statement made during an interaction with over 30 institutional investors is likely to provide comfort to oil marketing companies which are saddled with mounting losses due to their inability to align the retail prices of diesel, cooking gas and kerosene oil to global prices. Even the fuel buyer can draw breathe a little easy as the pending hikes might not be as sharp as expected.

Though this does raise questions over the government's ability to meet the annual fiscal deficit target of 4.6% of GDP, Mukherjee tried to allay investor fears saying that despite the increased liability the government would be able to stick to its estimate.

Rising global crude oil prices have fuelled expectations that the government's fuel subsidy bill may mount. Oil marketing firms have raised prices of petrol by Rs 5 a litre and there has been talk of an increase in diesel and cooking gas prices to reduce the losses of state-run oil firms.

While a ministerial panel was scheduled to meet this week to discuss ways to reduce the burden on oil marketing companies, which are selling subsidised diesel and cooking fuel with no government support, the deliberations have been postponed. The move comes as international crude prices are off their recent highs.

Oil companies are losing nearly Rs 18 on every litre of diesel that they sell, while the loss on selling cooking gas is over Rs 300 a cylinder. Although a duty cut is virtually ruled out, oil marketing companies are expected to be allowed to increase retail prices marginally and the government might have to bear a higher subsidy burden to cushion what were the most profitable companies in the country until the policy flip flop on oil subsidy emerged during UPA rule.

Mukherjee told a group of more than 30 leading Indian and foreign institutional investors that the government was committed to reducing the fiscal deficit to the targeted 4.6% of gross domestic product. The fiscal deficit is the gap between the government's revenues and spending. He said the provisional data for 2010-11 which pegged the fiscal deficit at 4.7% of GDP, lower than the estimated 5.1%, had stirred hopes that the government would be able to meet its target set for the current fiscal year which ends in March 2012.

The finance minister also sought to convey a message that the government remained committed to further liberalisation and said consultations were on with regard to further opening up the insurance and retail sectors to greater foreign participation and the centre would make all efforts to build a consensus on these issues. An inter-ministerial group had recently recommended opening up the closely policed multi-brand retail sector to foreign companies as an inflation busting measure.

The veteran Congress leader also assured the investors that inflation was likely to moderate in the months ahead on the back of good monsoon rains which is expected to raise the economic prosperity of farmers. Stubbornly high inflation has emerged as a key policy challenge for the government and the central bank. The Reserve bank of India has raised interest rates nine times since March 2010 to tame inflation.

Mukherjee said it would be premature to judge the success of the disinvestment programme based on only two months of the current financial year and said the centre was committed to pursuing its divestment programme. He said the public issue of the Power Finance Corporation had helped raise Rs 1,145 crore. He said the government did not pursue the share sale programme in the previous financial year as it had received higher than expected revenues from the sale of 3G spectrum.

Volatile stock markets and the global economic situation had fuelled speculation that the government may not be able to meet its target of raising Rs 40,000 crore from share sales in the 2011-12 financial year. The government has plans to sell stakes in several blue-chip state run firms such as BHEL, SAIL and others.

Mukherjee assured the investors that the India growth story was intact and growth would be around 8.5% in the current financial year and there would be no decline in revenue receipts.He said there should not be any undue fear over the fiscal deficit. Economists expect growth to moderate in 2011-12 due to the impact of the aggressive interest rate increases and say growth could be around 8%.

TOI

Sensex down 95 points on profit-booking, weak Asian cues

MUMBAI: The BSE benchmark sensex opened over 95 points lower on Wednesday as speculators booked profits made after two sessions of gains amid a weakening trend on other Asian bourses.

The 30-share barometer, which gained nearly 120 points in the previous two sessions, fell by 95.18 points, or 0.51%, to 18,400.44, with FMCG, banking, IT and capital goods stocks leading the decline.

Similarly, the wide-based National Stock Exchange Nifty index moved down by 29.65 points, or 0.53%, to 5,526.50 points.

According to market experts, the fall in stock prices was mostly due to the emergence of profit-booking following two sessions of gains, besides the absence of positive cues.

In addition, a subdued trend on other Asian bourses following overnight losses in the US market dampened the market sentiment at home.

In Asia, Hong Kong's Hang Seng index shed 0.93% and Japan's Nikkei was trading 0.32% down this morning. In the US, the Dow Jones Industrial Average ended 0.16% lower in yesterday's trade.

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Rupee opens 8 paise lower against US dollar

MUMBAI: The Indian rupee depreciated by 8 paise to Rs 44.92 against the US dollar in early trade on the Interbank Foreign Exchange on Thursday, tracking dollar gains against other currencies overseas and a weak trend in the equity market.

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

The rupee strengthened by 22 paise to close at Rs 44.84/85 against the US currency in yesterday's trade on the back of firm equities amid heavy selling of the American currency.

Meanwhile, the Bombay Stock Exchange benchmark Sensex fell by 192.27 points, or 1.03%, to 18,416.54 in opening trade today.

Sensex slumps 192 points in opening trade on weak global cues

MUMBAI: The BSE benchmark Sensex fell sharply by over 192 points in opening trade on Thursday as foreign funds and retail investors booked profits made during the previous two sessions, taking cues from weak global markets.

Profit-booking by speculators after two sessions of gains also dragged the Sensex down.

The 30-share barometer, which gained over 376 points in the previous two sessions, fell by 192.27 points, or 1.03%, to 18,416.54 in the first few minutes of trade on Thursday.

Stocks of banking, realty, metals and auto companies suffered the most in the fresh sell-off.

Similarly, the wide-based National Stock Exchange Nifty index slid by 60.10 points, or 1.07%, to 5,531.90.

Market experts said the trading sentiment was bearish amid a subdued trend on global markets following weak US economic data.

In addition, the cautious approach adopted by investors ahead of the release of food inflation data later today also dampened the sentiment, they said.

In the Asian region, Hong Kong's Hang Seng index was trading 1.69% lower and Japan's Nikkei shed 1.64% this morning. In the US, the Dow Jones Industrial Average ended 2.22% lower in Wednesday's trade.

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Diesel demand spikes ahead of price hike

NEW DELHI: The rate of growth in diesel demand spiked to 14%-15% in May from a mere 1.7% in April as vehicle owners tanked up with the government taking time to revise its price, early sales trend for the month available with state-run oil companies show.


A senior marketing executive of IndianOil Corporation, which controls nearly half of the fuel retail market, said even after petrol price was raised by Rs 5 a litre, demand for the fuel has shown a growth rate of 9%. In April, or before the price revision, demand had grown at 7.4%.


Cumulatively, overall demand for all petroproducts in May stood at 6%, or nearly double the 3.9% seen in April. In 2010-11, overall petroproducts demand grew at 4.2%, whereas petrol registered a growth of 10.8% and diesel 6%. "This paints a stark picture for diesel. It also shows that price increase does not affect demand," the IndianOil executive said, requesting anonymity.


One dealer in Delhi said even those who normally buy fuel for Rs 500 or Rs 1,000 at a time are tanking up, including diesel vehicle owners. "Even normally you find long queues at petrol pumps on the eve of price hikes announced by TV channels. This time the period has got longer."


"Think of transporters and other commercial establishments, in addition to private vehicle owners, who are tanking up and you have a huge inventory building up in private domain. Thruputs of our storage depots have increased and oil companies' infrastructure is being stretched," the IOC executive said.


After the petrol price hike, the government said it would decide on raising diesel price by up to Rs 4 a litre and cooking gas price by Rs 25-50 per refill. The government keeps prices of these fuels artificially low and pays state-run oil marketing firms money to make up their retail losses.


Diesel price was revised almost a year ago. The present pump price corresponds to roughly $70 a barrel of crude, which averaged $109 in the second fortnight of May, down from $112 in the preceding fortnight. Concerned over diesel price hike fuelling inflation and pushing up farming costs, the government is taking its time to see if crude falls further. This will help it to keep the increase at a minimum.


Industry figures, however, show government's concerns could be misplaced. Only 10% or so of the 45 million tonnes of the fuel is consumed by the farm sector and 30-35% is used for goods movement. Large volumes go to railways and state transport utilities, while the remaining is used by private vehicles and commercial establishments. "Except the farm and goods movement, none of the consumers are linked to price index. Why should they enjoy subsidy," the executive said.

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