The Financial Express

Forex reserves fall by USD 1.12 million

noreply@blogger.com (PressMart Team) — Sat, 07 Nov 2009 05:33:00 +0000

The forex reserves have fallen by $1.12 million to $284.39 billion in the week ended on October 30. The rupee rose for a third day, the longest stretch of gains in a month, assigns of the global economy is recovering from a recession buoyed demand for then ation's assets.

India's 10-year bonds fell for a third day, the longest losing streak in almost four weeks, as some investors sold their holdings to buy securities at an auction on Friday . The yield on the 6.90 % note due July 2019 climbed two basis points,or 0.02%,to7.31%.

The yield on the benchmark note maturing in 2019 rose to the highest in more than a week as the government sold $1.92 billion of debt.

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Demand up but Genpact net falls 2 percent

noreply@blogger.com (PressMart Team) — Fri, 06 Nov 2009 05:56:00 +0000

The country's largest business process outsourcing (BPO) company , Genpact, on Thursday reported a 1.7% drop in its net profit at $33.1 million for the quarter ended September, compared to the same period last year.

However, on back of a slightly better demand situation, the company's revenues were up 5% to $284.4millionagainstthesameperiod last year and up 4% sequentially .

In line with the other top IT companies, Genpact said it is seeing less of volume contraction and more ramp-ups. The company has maintained its revenue guidance of a growth of 6-9% in the current financial year over 2008.

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Gold crosses USD 1,095 as dollar wilts

noreply@blogger.com (PressMart Team) — Thu, 05 Nov 2009 05:37:00 +0000

Gold hit record highs above $1,095 an ounce on Wednesday as dollar weakness added to momentum lent to the market by India's purchase of 200 tonne of gold from the IMF to push prices through key technical resistance levels.

Gold is now poised to target the psychological $1,100 an ounce level, dealers said. Spot gold struck a high of $1,095.05 an ounce and was bid at $1,093.55 an ounce at 1055 GMT, against $1,084.50 late in New York on Tuesday .US gold futures on the Comex division of the New York Mercantile Exchange also hit record highs at $1,096.20 anounce.

At the moment, there is technical buying on the back of Tuesday's rally in the aftermath of the IMF India transaction, said Alexander Zumpfe, a trader at Heraeus

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Sell-off, telecom meltdown continue

noreply@blogger.com (PressMart Team) — Wed, 04 Nov 2009 05:30:00 +0000

The stock market saw the steepest fall after August on Tuesday as benchmark indices fell for the sixth straight trading session on huge sell-off in heavy weight stocks and weak cues from global markets.

The pressure on telecom stocks continued as Reliance Communications fell 5.7% to close at Rs 165.8, in it seventh straight day of losses. Though its rival Bharti Airtel closed on the positive zone, the pressure on telecom stocks persisted. In the current year, RComm slid by 27% and Bharti by 16% when the benchmark Sensex jumped 64%.

Analysts like Arup Misra of Elara Captial said RComm could face more selling pressure if the first 3G auction is held only for the GSM players,which the company is not. This will delay its entry into the new field.

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Car-makers ride the festive spirit: Maruti sales up 21 percent

noreply@blogger.com (PressMart Team) — Tue, 03 Nov 2009 04:35:00 +0000

Car-makers have reported healthy numbers for the festive month of October, courtesy new launches and discounts. Domestic sales of Maruti Suzuki India, the country’s largest passenger car producer, jumped by 21% to 71,551 units compared with 59,127 units in October last year the month that followed the Lehman Brothers’ collapse.

Sales of Hyundai Motor India, the second largest carmaker, surged 41.4% in the domestic market in October this year at 28,301 units vis-à-vis 20,009 units.

Tata Motors, the third largest player, reported a 17.6% increase in its October sales at 20,011 unit vis-à-vis 17,014 units in October

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Uttar Pradesh cane farmers burn raw sugar import from Brazil

noreply@blogger.com (PressMart Team) — Mon, 02 Nov 2009 04:53:00 +0000

Hundreds of farmers from the Bharatiya Kisan Union, the Rashtiya Kisan Mazdoor Sangathan and Kisan Mazdoor Sangathan on Sunday set fire to a consignment of raw sugar at Shamli railway station in Muzzafar nagar.Hundreds of agitating cane farmers, who had laid seige to Shamli railway station in Muzaffar nagar on Saturday night and set fire to a raw sugar consignment imported from Brazil, allowed the goods train they had blocked to leave the station on Sunday evening after the authorities agreed to send back the imported sugar.

The farmers, belonging to the Bharatiya Kisan Union, Rashtiya Kisan Mazdoor Sangathan and Kisan Mazdoor Sangathan, were protesting against the sugarcane purchase policy of the Centre and Uttar Pradesh government.

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Air India pilots to get Sep pay in two days

noreply@blogger.com (PressMart Team) — Fri, 30 Oct 2009 05:15:00 +0000

With an impending stir threat by its pilots, Air India is likely to pay the September salaries of its employees in two days and incentives and allowances by November 10, airline sources said on Thursday.

Talks were held with banks and financial institutions for working capital loans to arrange the amount for payment of salaries, productivity-linked incentives (PLIs) and flying allowances to the employees,including the pilots,they said.

Sources also said the management of the cash-strapped airline was making all efforts to pay the dues of the employees very soon, including the salaries by October 31 and PLI and allowances by November10.

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PE funds' exit could shake up BPO space

noreply@blogger.com (PressMart Team) — Thu, 29 Oct 2009 05:23:00 +0000

The coming months could see a spate of mergers & acquisitions in the Indian business process outsourcing (BPO) space, with several private equity funds looking at exercising the exit option.

Investment banking officials said PE firms generally invest for 5-7 years and then cash out. In some of their current investments, the normal investment cycle is either over or coming to an end. Last year, several funds had to postpone their exit because of the global meltdown.

Sources said several PE funds have opened channels with top IT firms, exploring the exit options.

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Wipro net profit rises 19 percent in Q2

noreply@blogger.com (PressMart Team) — Wed, 28 Oct 2009 04:28:00 +0000

Wipro Ltd on Tuesday reported a 19% jump in its net profit for the second quarter. Its revenue increased 6% year-on-year.

The company, the country’s third largest software service exporter which also makes soaps, light bulbs and hydraulic equipment, earned a net profit of Rs 1,162 crore for the quarter ended September 30, 2009 against Rs 978 crore earned in the same quarter last year. Its revenue stood at Rs 6,917 crore in Q2 against Rs 6,507 crore a year ago.

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Free branching tops banking reform plan

noreply@blogger.com (PressMart Team) — Tue, 27 Oct 2009 05:04:00 +0000

The government is considering far-reaching reforms in the banking sector, including giving banks the freedom to open branches in Tier-3 and Tier-4 cities, and granting 15 new licences to smaller banks for the first time in almost 11 years.

Prime Minister Manmohan Singh is learnt to have discussed several reform measures with Reserve Bank of India governor D Subbarao in the second week of October. They also discussed the idea of giving foreign banks full national treatment by suggesting they incorporate in India as wholly owned subsidiaries.

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Raja faced objections from then DoT secy Mathur

noreply@blogger.com (PressMart Team) — Mon, 26 Oct 2009 05:07:00 +0000

Communications and IT minister A Raja, who is under fire with the CBI conducting an enquiry into the alleged irregularities in licensing and spectrum allocation to eight new operators in January 2008, had faced severe opposition from his then secretary DS Mathur over the entire process.

The opposition from Mathur, most of which are recorded in files, was so strident that he refused to sign any files on the matter till his retirement. Mathur retired on December 31, 2007 and licences were granted towards the end of January 2008. One of the main objections of Mathur was that no new licence and spectrum could be granted without an “equitable and transparent policy”.

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It's two out of three for the Congress

noreply@blogger.com (PressMart Team) — Fri, 23 Oct 2009 09:30:00 +0000

The Congress coasted to power in Maharashtra for the third consecutive term and won a landslide victory in Arunachal Pradesh, but its gamble in Haryana failed to pay off, with the party falling short of a majority. Overall, the Congress victory will help the UPA consolidate further and push for more economic reforms.

The Congress-NCP combine, which has been ruling Maharashtra for the past ten years, got 144 seats out of a total 288, needing one more for a simple majority. With rebels of both parties and independents winning 49 seats, the ruling alliance may not have difficulty in mustering up the required number. The Congress-NCP combine marginally improved upon its performance of the last state elections, when it got 140 seats.

The Congress, which will continue to have the chief minister’s post, secured 79 seats

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United Spirits QIP raises Rs 1,600 crore to pare debt

noreply@blogger.com (PressMart Team) — Thu, 22 Oct 2009 04:59:00 +0000

United Spirits Ltd (USL), the world’s third-largest spirits maker by volumes, has raised Rs 1,615 crore through the placement of shares with institutions at Rs 913.70 each. The issue was launched on October 14 and closed on Wednesday.

The company issued 17.68 million additional shares, accounting for 16.4% of the existing capital, and will take its current share capital to 125.59 million after the issue, which was at a 0.9% discount to the Rs 921.75 closing price on the NSE on opening day.

Fund raising by USL follows the failure of its recent talks to sell a minority stake to Diageo Plc and private equity players.

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Air India, Indian Airlines call centres set to merge

noreply@blogger.com (PressMart Team) — Wed, 21 Oct 2009 04:50:00 +0000

Even as Air India's demand for equity infusion of Rs 5,000 crore is expected to be considered by a group of ministers on Wednesday, along with its financial restructuring plan, the state-owned carrier has inched a step closer towards integration of the IT platforms of Air India and the erstwhile Indian Airlines.

After being embroiled in legal battles, the call centre operations of Air India and Indian Airlines will finally be serviced by InterGlobe Technologies (IGT), which was awarded the contract for the common call centre in January this year.

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Win 7 launch may need finmin update first

noreply@blogger.com (PressMart Team) — Tue, 20 Oct 2009 04:57:00 +0000

India could miss the worldwide launch of Microsoft’s new Windows 7 operating system on Thursday, as the retail consignment of the software has not been cleared by the customs authorities, which is demanding physical proof of the software licence. Windows 7 is one of the most anticipated launches in recent times from Microsoft.

Ironically, the problem stems from an industry-friendly move in Budget 2009-10, which changed the tax structure on packaged software by partially exempting it from excise duty. As a result, packaged software is taxed in two parts. While the cost of the media (the CD containing the program) would attract excise duty, the license would attract only service tax.

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Re rally helps FII returns zip past Indian peers

noreply@blogger.com (PressMart Team) — Mon, 19 Oct 2009 05:27:00 +0000

The steady slide of the greenback has seen foreign institutional investors in India laughing their way to the bank. As the rupee is appreciating, FIIs have more than doubled their returns from the Indian market this festive season compared to their domestic counterparts. In the last one month Dollex-30, the dollar-denominated version of the BSE Sensex, has gained over 7.62% compared to the benchmark Sensex’s gain of 3.68%. On a yearly basis too, FIIs have earned 10% more than domestic investors since the Sensex has given a return of just 73.69% compared to the 83.35% gain in Dollex-30.

The Dollex-30 reflects the change in stock prices as well as currency values, and enables foreign investors to measure their equity returns in real terms, both in respect of domestic and international currencies.

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Anil blasts `biased' report but auditor stands firm

noreply@blogger.com (PressMart Team) — Fri, 16 Oct 2009 04:13:00 +0000

Two days after the government-appointed auditor's report that rapped Reliance Communications Ltd for inflating revenues to the stock exchanges and under-reporting revenues to the government came to light, chairman Anil Ambani on Thursday charged the audit firm, Parakh & Co, of professional misconduct and playing into the hands of corporate rivals.

In an audio-call, Ambani said he would approach the Institute of Chartered Accountants of India (ICAI) about the alleged professional misconduct of the auditor and the Securities and Exchange Board of India (Sebi) for a probe into the hammering of his group's stocks over the past few days.

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HDFC Bank profit rises 30%

noreply@blogger.com (PressMart Team) — Thu, 15 Oct 2009 05:14:00 +0000

Despite slower credit offtake, HDFC Bank, the country’s second largest private sector lender, reported a 30.21% rise its quarterly net profit, helped by non-interest income. The bank recorded a net profit of Rs 687.46 crore for the second quarter ended September 2009 against Rs 527.98 crore in the same quarter last year.

The bank’s net profit followed a 32% jump in the quarterly profit for Axis Bank, another private bank.

HDFC Bank’s gross advances rose 9% to Rs 1, 15,104 crore. Its gross and net non-performing assets,

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Platinum hikes UB Holdings stake to 11%

noreply@blogger.com (PressMart Team) — Wed, 14 Oct 2009 05:16:00 +0000

Australian fund manager Platinum Investment Management Ltd has increased its stake in United Breweries Holdings Ltd, the investment arm of Vijay Mallya’s UB group, to a tad under 11%. The fund reportedly mopped up the shares from the open market. Platinum Investment manages close to $14.55 billion through various investment vehicles.

The stake hike comes close on the heels of the UB group’s decision to call off talks with Diageo and a clutch of private equity majors to offload shares in flagship United Spirits Ltd to raise over $300 million and mitigate its overwhelming debt burden. United Spirits has a total debt of over Rs 6,500 crore on its books.

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No takers for half the new Nelp blocks, global majors shy away

noreply@blogger.com (PressMart Team) — Tue, 13 Oct 2009 07:25:00 +0000

The spat between the Ambani brothers, the global meltdown and financial & technical constraints including a shortage of rigs have affected the bidding process for Nelp-VIII and CBM-IV. On the last day of bidding, on Monday, the directorate general for hydrocarbons (DGH) has received bids for only 36 of the 70 blocks that were on offer. Australia’s BHP Biliton and UK’s BG and Cairn Energy were the only notable foreign companies that joined the bid.

Mukesh Ambani-led RIL, which recently pleaded for a three-year moratorium on exploration citing unavailability of deepwater rigs, shunned the auction, though it showed interest in one coal-bed methane block that is on auction separately. RIL has surrendered 14 blocks to the government after spending Rs 1,400 crore in unsuccessful exploration. RIL had won 45 blocks in the new exploration licensing policy (Nelp) rounds.

Essar Oil was the most aggressive bidder, placing bids for six coal-bed methane (CBM) blocks.

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Anil offers olive branch, but Mukesh sceptical

noreply@blogger.com (PressMart Team) — Mon, 12 Oct 2009 05:03:00 +0000

Anil Ambani sprang a surprise in India’s biggest corporate battle on Sunday by sending out a letter to estranged brother Mukesh Ambani suggesting a rapproachment just a week before the Supreme Court heard the two companies.

However, RIL, while welcoming the statement, urged Anil Ambani to put his sentiments into action. “(we hope) it is a positive change in the negative and malafide campaign launched by R-ADAG… RIL sincerely hopes that any overture for rapproachment to end acrimony is sincere and in no way related to the ongoing hearing of the case in the honorable Supreme Court,” a statement issued by RIL said.

Anil Ambani’s Reliance Natural Resources Ltd is locked in a legal battle with RIL over the price and terms of supply for natural gas from the offshore K-G D6 fields. In his suo moto

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Per second plan optional: Trai to vet new schemes

noreply@blogger.com (PressMart Team) — Fri, 09 Oct 2009 05:19:00 +0000

The Telecom Regulatory Authority of India (Trai) will examine the recently launched low-tariff schemes of the mobile operators to ensure that the schemes do not have hidden charges that would dupe consumers. The tariff war sparked off by these schemes and reports of a seconds-based billing plan by the regulator had led to a crash in telecom shares this week.

Upon his return from Geneva from an international conference on Thursday, Trai chairman JS Sarma clarified that he does not intend to make operators shift form the current per minute pulse rate billing system to a per second system. An interpretation along these lines of his statement in Geneva earlier this week had appeared in a section of the media.

The Trai chairman said he would come out with a consultation paper to examine the feasibility

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Banks expect rates to remain stable this year

noreply@blogger.com (PressMart Team) — Wed, 07 Oct 2009 05:13:00 +0000

RBI Governor D Subbarao’s statement on Tuesday about an early exit from the accommodative monetary policy sent bond yields soaring and it seemed to have belied bankers’ expectation that the rate would remain unchanged in the near term.

Speaking at the G-30 international banking seminar in Istanbul, Subbarao said policy rates (in India) may have to be tightened ahead of those in advanced economies. Yields on the 10-year benchmark paper closed at 7.24% against 7.16% on Monday as treasury managers anticipated a hike in the benchmark rates and a resultant fall in bond prices. Yields on bonds move inversely to their prices. The yields also moved as state governments borrowed another Rs 9,000 crore from the markets. The rupee too jumped 1.3% to 46.88 a dollar, the strongest level since Oct. 1, 2008.

Bankers, however, said they do not expect a rate hike anytime soon. The RBI will announce its mid-year review of the monetary policy on October 27.

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National survey for job data and forecast to begin

noreply@blogger.com (PressMart Team) — Tue, 06 Oct 2009 05:41:00 +0000

Starting this month, the Centre is kicking off an unprecedented employment survey to capture employment data across all sectors as well as generate future projections for the job market based on employers' outlooks. The decision to undertake an annual employment survey comes on the back of the global slowdown, which forced the Centre to order quick quarterly surveys to assess the extent of joblosses in the worst-hit industries.

While employment is a key economic indicator and moves markets across the world, India's official economic statistics, included in reports such as the Economic Survey, simply skip the job numbers. The only official report on employment comes out every five years, when the National Sample Survey Organisation (NSSO) releases data on employment and unemployment. The NSSO and Central Statistical Organisation also reveal employment trends in the Annual Survey of Industries, but this only includes formal manufacturing jobs and the findings are released after a few years'lag.

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Lessons from crisis: ECBs now need insurance cover against default

noreply@blogger.com (PressMart Team) — Mon, 05 Oct 2009 06:08:00 +0000

Companies raising overseas loans are being asked to buy insurance cover against loan default, which raises their borrowing costs by at least 150 basis points. Despite a drastic improvement in the liquidity situation globally, lenders are reluctant to lend long-term funds to foreign firms.

Bankers arranging overseas loans for Indian companies said a majority of the ECB deals that have been cut in the past few months are in the form of export credit agency or ECA loans. These agencies, which can be government-owned or private companies, provide an insurance cover against default on a credit taken by a company from overseas lenders.

This helps in transferring the risk of default from overseas lenders—who are otherwise flush with liquidity but do not want to take chances to the ECAs.

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