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HCL EAS makes open offer to Axon shareholdersHCL EAS has made an open offer to Axon shareholders, reports CNBCTV18. It has acquired 0.47% equity of Axon. The company will post its offer document to Axon shareholders by October 24.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 7:17 pm Hindalco rights to be oversubscirbed: Kumar Mangalam BirlaKumar Mangalam Birla, Aditya Birla Group, feels Hindalco\'s rights issue was wrongly timed. \"Its a great stock, its a great company with very strong fundamentals. If not the lowest cost producer, its one of the lowestcost producers of aluminium in the world and the intrinsic value of the share is much higher than the rights price.\"Source: Moneycontrol Top Headlines | 10 Oct 2008 | 4:43 pm Cadbury India to triple investments in contract farmingChocolate and confectionary major Cadbury India is betting big on contract farming. The company wants to source all the cocoa for its Indian products from within the country. The company has plans to increase acreage for cocoa cultivation.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 3:10 pm IMF calls for guarantees to unfreeze money mktsLONDON/BEIJING (Reuters) - Central banks pumped huge amounts of short-term funds into paralysed money markets on Friday as the world's attention turned to Washington where global finance leaders meet this weekend to discuss the deepening crisis.Source: Reuters: Money News | 10 Oct 2008 | 2:45 pm HCL EAS makes open offer to Axon shareholders - Moneycontrol.com
Source: Google News India - Business | 10 Oct 2008 | 2:44 pm Financial crisis may pressure interest rates in India: RBI - Press Trust of India
Source: Google News India - Business | 10 Oct 2008 | 2:42 pm RBI: macro impact of crisis muted so farMUMBAI (Reuters) - The macro effect of the global financial crisis on India has been muted due to domestic demand, but risks to the economy mainly arise from a reversal of capital flows, a deputy governor of the Reserve Bank of India (RBI) has said.Source: Reuters: Money News | 10 Oct 2008 | 2:41 pm Hyundai offers discounts for govt employeesHyundai announced a special discount of up to Rs 31,000 on its various cars for government employees aiming to cash in on the higher salaries and arrears under the Sixth Pay Commission.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 2:36 pm PSU banks gain on surprise CRR cut - Economic Times
Source: Google News India - Business | 10 Oct 2008 | 2:34 pm India's small e-car to hit the road - Economic Times
Source: Google News India - Business | 10 Oct 2008 | 2:34 pm Wells Fargo Gains After $12 Billion Bid for Wachovia Beats Citi - Bloomberg
Source: Google News India - Business | 10 Oct 2008 | 2:27 pm India-China trade to touch $100 bn in five years - Economic Times
Source: Google News India - Business | 10 Oct 2008 | 2:22 pm Infosys cautious about future; stock recovers to end down 2.20% - Economic Times
Source: Google News India - Business | 10 Oct 2008 | 2:20 pm Metro gets West Bengal licence, with conditionsKOLKATA (Reuters) - Germany's Metro AG on Friday received a new licence for its cash and carry wholesale arm in West Bengal, with the communist government limiting its activities to protect farmers and small traders.Source: Reuters: Money News | 10 Oct 2008 | 2:15 pm Lehman attorneys seek up to $950 per hourThe largest bankruptcy case in the American history could prove to be a windfall for attorneys and advisors representing Lehman Brothers, who are demanding a fee up to $950 per hour.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 2:03 pm BSE Sensex tumbles, biggest weekly fall in 18yrsMUMBAI (Reuters) – The BSE Sensex tumbled 7 percent on Friday and posted its biggest weekly fall in nearly 18 years as panicky investors joined a global selloff on recession worries,Source: Reuters: Money News | 10 Oct 2008 | 2:02 pm Dow Jones falls to lowest level in five yearsThe US benchmark index Dow Jones Industrial Average has plunged to its lowest level in five years, amid negative market sentiments in the world economySource: Daily News & Analysis: Money News | 10 Oct 2008 | 1:59 pm Value of funds' holdings of ICICI seen down sharplyMUMBAI (Reuters) - Indian funds may have seen the value of their combined holdings in ICICI Bank drop by around 21 billion rupees ($430 million) in six weeks, based on their holdings at the end of August and the fall in the bank's share price since.Source: Reuters: Money News | 10 Oct 2008 | 1:57 pm Wall St slides on global rout, bank woesNEW YORK (Reuters) - U.S. stocks slumped at the open on Friday, with the benchmark S&P 500 falling below the 900 mark, as fears that tighter credit may send the global economy into recession slashed the appetite for risk.Source: Reuters: Money News | 10 Oct 2008 | 1:49 pm Markets tumble, Sensex sheds 800 points on panic selling - Hindu
Source: Google News India - Business | 10 Oct 2008 | 1:49 pm Liquidity adequate, global exposure small: ICICI BkChanda Kochhar of ICICI Bank, said the bank has adequate rupee and global liquidity of Rs 12,000 crore. \"We have no international investments, only loans on our balance sheet. We do not use rupee liquidity to fund global activities.\"Source: Moneycontrol Top Headlines | 10 Oct 2008 | 1:43 pm Citigroup lets Wells Fargo grab WachoviaCitigroup has abandoned its fight for Wachovia bank, letting it go to Wells Fargo, but said it will seek compensatory and punitive damages for bad faith and breach of contract.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 1:32 pm Foreign funds pump out $883 mn in four sessionsForeign funds were net sellers of Indian equity to the extent of $883 million during four days of trading for the week ended Friday, shows the latest data with the markets watchdog.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 1:30 pm Jet to stop Mumbai-Shanghai-San Fransisco flightHit by the global economic downturn and its impact on the aviation sector, Jet Airways on Friday announced stoppage of its Mumbai-Shanghai-San Fransisco service from mid-January.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 1:24 pm Mkts to see further downside ahead: MIC Investments - Moneycontrol.com
Source: Google News India - Business | 10 Oct 2008 | 1:23 pm India Inc hot on MA trail despite financial crisis: StudyThe global financial crisis may have created ripples across the world, but it does not seem to be stopping cashrich Indian companies from going after acquisitions. This is because target companies are significantly cheaper now than just six months ago. That\'s according to a report by Indusview Advisors.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 1:20 pm Rediff wins dispute over domain name at WIPORediff.Com India has won a legal dispute at WIPO which has held that a Canadian company has no legitimate rights to register a domain name using the word "Rediff".Source: Daily News & Analysis: Money News | 10 Oct 2008 | 1:15 pm Weaker rupee makes Infosys poorer by $28 millionA sharp depreciation of the Indian rupee against the US greenback during the July-September quarter of the 2008-09 fiscal has made IT bellwether Infosys Technologies Ltd lose $28 million (Rs.1.25 billion) on hedging in the forex market.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 1:02 pm 'Save Nano Committee' to meet Governor - Hindu
Source: Google News India - Business | 10 Oct 2008 | 1:01 pm REC to fund two power projects in Tamil NaduThe Rural Electrification Corporation (REC) will partly fund -- to the tune of Rs.56.12 billion -- two power projects in Tamil Nadu with a total capacity to generate 1,600 MW.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 1:01 pm Tyson Foods to double sales; may partner fast food chainsThe USbased meat processor, Tyson Foods, is firming up its plans for the Indian market. Apart from more investments in its joint venture with Godrej Agrovet, it also plans to partner fast food chains and five star hotels to double its revenue.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 12:59 pm 'Country cannot escape global economic crisis'The country cannot escape the impact of the current ecnomic global crisis and the government is doing its best to safeguard the interests of the people and steer it out of its adverse effects.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 12:58 pm Bollywood relaxed despite liquidity crunchCould the current global market meltdown, directly or indirectly, affect Bollywood's finances and the production of its hugely mounted movies?Source: Daily News & Analysis: Money News | 10 Oct 2008 | 12:56 pm CRR cut: Realty players see light at the end of the tunnelLeading industry players expressed optimism that RBI's move to cut CRR will help new funds coming into the sector and boost demand with possible softening of interest rates.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 12:56 pm Inflation moderates to 11.8 percentAmidst a liquidity crunch and a slowdown in industrial growth, India's inflation moderated slightly to 11.8 percent for the week ended Sep 27, compared to 11.99 percent the week before.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:31 pm Uttar Pradesh school dropouts to be given industrial trainingThe Uttar Pradesh government has decided to allow people with basic reading and writing skills to enroll for industrial training programmes that are at present open only to those who have studied upto Class 10, an official said Friday.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:30 pm ICICI plunges almost 27 percent during intra-day tradingIndia's largest private sector lender ICICI Bank shares suffered heavy hammering on the bourses Friday due to its overseas exposure.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:30 pm Wacorp Hyundai to invest Rs 60 crore in IndiaWacorp Hyundai India Ltd on Friday said it will invest Rs 60 crore in the next three years for setting up manufacturing units and on promotions.Source: Daily News & Analysis: Money News | 10 Oct 2008 | 12:30 pm Bentley to compensate global slowdown with India, ChinaPTI New Delhi: One of the world’s most expensive carmakers Bentley today said it will focus on emerging market such as India to boost sales to compensate for the slowdown in developed economies. “There has been a slowdown in the global automobile market and we are expecting to compensate this slowdown by demand in emerging markets like India, China and Middle East,” Bentley Motors Regional Director (Middle East, Africa and India) Chris Buxton told reporters here. The UK-based firm, which started its operation in India in 2003, has so far sold over 100 cars in the country, he said, adding “... we are expecting to sell about 30-35 units this year”. “India is a strong growing economy and a further growth in the Indian auto market was a key part of the company’s overall future growth, Buxton said. In Asia, the company sold maximum number of cars in China and the US is its biggest global market. The company today launched the high-speed variant of its existing model, Continental Flying Spur, in the Indian market, priced at about Rs2.5 crore (ex-showroom). With the launch of the speed variant, the company is targeting to sell about 10 units of Flying Spur family a year, he added. The Volkswagen group company, which at present offers all of its models to Indian consumers, is also planning to bring a new model into the country in two years that is being at present developed in the UK. Bentley sold over 10,000 units globally in 2007 and its current order backlog is 30 cars. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 12:15 pm PM inaugurates Baglihar hydel projectPrime Minister Manmohan SIngh inaugurated the first phase of the Baglihar hydel project over the Chenab river in Jammu and Kashmir here Friday afternoon.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:03 pm Market slump to hit auto sector, two-wheelers may beat trendThe domestic auto sector as a whole will be affected by the slowing down of the economy and stock market crash, but the two-wheeler segment may just beat the trend, say analysts.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:01 pm Fashion shows to be cut short on Karva ChauthThe late night schedules of two major fashion events this month have been cut short thanks to Karva Chauth - when Hindu wives fast all day for the wellbeing of their husbands - falling right in the middle of the two big shows - the Wills Lifestyle India Fashion Week (WIFW) and the Delhi Fashion Week (DFW).Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:01 pm Indian equities tank seven percent in day-long mayhemAs fears over the impact of the global financial crisis on the Indian economy escalated Friday, a key Indian equities index closed with one of its steepest losses in recent months, with interventions by the government, the central bank and the markets watchdog having little impact to lift the battered sentiments.Source: IndiaeNews.com: Business News | 10 Oct 2008 | 12:00 pm Sensex tumbles, biggest weekly fall in 18yrsMumbai: Shares tumbled 7% on Friday and posted their biggest weekly fall in nearly 18 years as panicky investors joined a global selloff on recession worries, with weak industrial data adding to the gloom. ICICI Bank plunged as much as 28% to its lowest in almost four years, before trimming losses after the No. 2 lender’s joint managing director said the bank’s exposure to the global financial crisis was small and it had sufficient liquidity. Sliding stocks sent the rupee to an all-time low against the dollar, while a cash crunch lifted overnight cash rates to their highest in 19 months. Alarmed by the turn of events, the central bank slashed its cash reserve requirement for banks to free up some $12 billion in funds, but the move failed to calm jittery nerves. Shares in ICICI Bank, which have lost 44% since the mid-September Lehman Brothers’ collapse, ended down 19.7% at Rs364.10 rupees - their biggest single-day fall, and down 27.8% on the week. The stock was the most heavily traded on the Bombay Stock Exchange, clocking volume of 11.6 million shares. The 30-share BSE index ended down 7.1% or 800.51 points, at 10,527.85 points, its lowest close since July 2006. It was the sharpest one-day percentage fall since January this year. All but two components were in the red. In the broader market, losers swamped gainers 5:1 on volume of 317.3 million shares. For the week, the benchmark lost 15.95%, its worst performance since December 1990. Infosys Technologies fell as much as 17% after the No. 2 software exporter cut its forecast in dollars for the full year citing the global economic turmoil even as its quarterly profit rose 30%. The BSE index, among the worst performer in Asia, fell as much as 9.6 at one stage to more than half below its record high of 21,206.77 hit in January, before trimming losses on domestic institutional buying. Source: Home - Livemint.com | 10 Oct 2008 | 11:40 am Ahtisaari wins Nobel Peace Prize for pacifying disputesOslo: The Nobel Peace Prize was awarded on Friday to Martti Ahtisaari, the former Finnish president who has spent 30 years ending conflict in troublespots ranging from Kosovo to Namibia and Indonesia. The Norwegian Nobel Committee hailed the 71-year-old Ahtisaari “for his important efforts, on several continents and over more than three decades, to resolve international conflicts.” “These efforts have contributed to a more peaceful world and to ‘fraternity between nations´ in Alfred Nobel’s spirit,” committee head Ole Danbolt Mjoes said. Ahtisaari, a quiet, portly man now afflicted by rheumatism, told Norwegian broadcaster NRK that his work as the UN special envoy to Namibia had been the highlight of his career. “Of course Namibia is the most important since it took so long,” he said, adding that he was “very pleased” to win the prestigious prize. As the UN secretary general’s special envoy, Ahtisaari guided Namibia towards a peaceful independence in 1990 after more than a decade of negotiations. He also oversaw the 2005 reconciliation between the Indonesian government and Free Aceh Movement (GAM) rebels, ending a three-decade conflict that killed some 15,000 people. In Europe, he helped Kosovo, which declared its independence in February, even though his mediation efforts failed to clinch an agreement between Serbia and Kosovo. And in May 2000 the British government appointed Ahtisaari to co-head, with Cyril Ramaphosa of South Africa, the inspection of IRA arms’ dumps in Northern Ireland. “Throughout all his adult life, whether as a senior Finnish public servant and president or in an international capacity, often connected to the United Nations, Ahtisaari has worked for peace and reconciliation,” Mjoes said. Although he most recently displayed his talents as a mediator in Europe, Ahtisaari cut his diplomatic teeth in Africa. He was appointed Finland’s ambassador to Tanzania in 1973, at the age of 36. He became UN Commissioner for Namibia in 1977 and in 1978 was named the UN envoy to Namibia. In 1994 Finland’s Social Democratic Party nominated him to run for the presidency and Ahtisaari became the first directly elected Finnish president. Made fun of by the press for his large size and his limp, Ahtisaari was ill at ease with the largely ceremonial role of president. With his true passion in foreign affairs, Ahtisaari likened his tour in domestic politics, which lasted until 2000, to “an extramarital affair”. At the end of 2005, Ahtisaari was appointed the UN special envoy for talks on Kosovo, seven years after he played a key role in bringing an end to hostilities in the Serbian province. He recommended independence for the breakaway Serbian province, where there is an ethnic Albanian majority, but his inability to get the two sides to agree was a blow for him. With its decision to hand the 2008 prize to Ahtisaari, the Nobel committee has returned to a more tradition interpretation of the award, after several recent prizes expanded its boundaries to take in environmental work, for instance. Last year’s Peace Prize went to former US vice president Al Gore and the United Nations panel on climate change. Ahtisaari will receive a Nobel diploma, medal and a cheque for $1.42 million at a ceremony in Oslo on 10 December. The announcement of the prize came a day after the Nobel Literature Prize was awarded to French author Jean-Marie Gustave Le Clezio. French and German scientists credited with the discovery of the viruses behind AIDS and cervical cancer won the medicine prize, while the physics prize was awarded to Makoto Kobayashi and Toshihide Maskawa of Japan and Yoichiro Nambu of the United States for groundbreaking theoretical work in fundamental particles. Osamu Shimomura of Japan and US duo Martin Chalfie and Roger Tsien won the chemistry prize for a fluorescent jellyfish protein that has become a vital lab tool. The Nobel Economics Prize wraps up the awards on 13 October. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 11:33 am Global crisis claims Japan insurer, markets panicTOKYO (Reuters) - The global credit crisis claimed its first Japanese financial institution on Friday and the government looked to prop up smaller banks, as Tokyo shares suffered their biggest rout since a 1987 crash.Source: Reuters: Money News | 10 Oct 2008 | 11:32 am Japan’s Yamato Life Insurance files for bankruptcyLondon: Japan’s Yamato Life Insurance has filed for bankruptcy with $2.7 billion in liabilities, to become the first financial sector casualty of US credit crisis in Japan, according to media reports. “Yamato Life Insurance on Friday became the first direct financial sector casualty in Japan of the US sub-prime mortgage crisis, filing for bankruptcy with ¥269.5 billion in liabilities,” the Financial Times reported. According to the report, the failure of Yamato Life, which is a medium-sized life insurance company, is the first collapse of a Japanese insurance company in seven years. The insurance firm’s bankruptcy follows the collapse of Japan’s first listed real estate investment trust (Reit), New City Residence Investment, which failed with ¥112.3 billion in debts yesterday. “The failure of Yamato and New City Residence highlights the impact that the global credit turmoil is having on Japan, even though the country is not suffering from the liquidity problems that have beset other major markets,” it said. Financial Times quoting analysts said that Yamato Life failed largely because of its problematic investments in securitisation products, rather than as a direct result of problems in the domestic insurance market. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 11:02 am DoP launches electronic money order facilityPTI New Delhi: The Department of Post today launched an electronic money transfer facility across the country that would make remittance of money through the postal route faster. This facility would be offered to customers without any extra cost, a Department of Post statement said. However, the existing paper format money order facility would also be available along with the electronic service, it added. Booking facilities of electronic money order (eMO) would be available in a phased manner from post offices, where Internet or broadband connectivity is available. Post offices would book money orders electronically for all other post offices connected through Internet or broadband, it added. Initially, the facility would be launched across 2,500 post offices. The eMO facility would have similar tariffs and limits of remittance that the existing money order service has. However, once the process stabilises, the department may consider raising the maximum limit of remittance, the statement said. A trial run of this facility has already been carried out at head offices and GPOs in New Delhi, Bangalore, Mysore, Indore and Tiruchirapalli, the statement said. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:57 am Govt to inject more funds through supplementary demands: FMNew Delhi: Finance Minister P Chidambaram assured the cash-strapped markets that government will inject more funds into the system within 10-12 days through the supplementary demands for grants which will come up for approval before Parliament later this month. “In about 10-12 days from today when the supplementary is passed by the Parliament, a substantial amount of liquidity will be infused into the market,” he said in an interview to private TV channel CNBC TV18. RBI has already announced the decision to cut the mandatory deposits that banks keep with it by 150 basis points to infuse Rs60,000 crore into the financial system and also the government cancelled sale of Rs10,000 crore bonds to ease liquidity pressure. These decisions, which were announced in the morning, calmed down the stock market which plunged by 1,000 points in the early trade at Bombay Stock Exchange (BSE). The supplementary demands for grants will be taken up for discussion and passage during Parliament session beginning on 17 October. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:50 am Russia clears $86 bn rescue package for banksLondon: In an effort to rescue the country’s banks troubled by credit crisis, Russia has approved a host of measures worth $86 billion, a media report said. “Russia’s lower house of parliament, the Duma, has approved a raft of measures worth $86 billion to assist banks hit by the credit freeze,” BBC said in a report published online. The Russian government would make $50 billion available to banks and firms that need to refinance foreign debt while the rest would be available as loans to banks, the report said. The package is designed to restore confidence in Russian banks and revive shares, which have seen steep falls, it added. Meanwhile, trading on Russian stock exchanges has been suspended. The trading on the exchanges were stopped after the country’s key index Micex plunged over 10% on Wednesday. “The falls in Russia and elsewhere have been blamed on panic selling by global investors fearful of a deep worldwide recession,” BBC said. According to the report, Russian shares were also hit in August amid concerns about the conflict between Russia and Georgia. The steep decline in oil prices has also taken its toll with energy firms accounting for about two-thirds of the Russian stock indexes, it added. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:42 am DLF, Unitech say no impending deals with StanchartNew Delhi: Real estate developers DLF Ltd and Unitech denied media reports that a foreign bank has held back disbursement of loans sanctioned to them and termed the news as ‘false and baseless’. In a communique to the Bombay Stock Exchange (BSE), DLF Ltd said, “There has been no impending transactions by DLF with Standard Chartered Bank or any other bank, and as a result, the question of refusing disbursement does not arise”. A section of the media reported that Standard Chartered Bank, the second largest foreign bank in India after Citigroup, has held back disbursement of loans sanctioned to DLF and Unitech. DLF and Unitech were trading lower on the BSE at 2.45 pm. While the Sensex scrip DLF was ruling at Rs297.75, down 3.58%, Unitech’s declined 8.57% at Rs86.40. Unitech in a separate filing to BSE clarified that the company has not been sanctioned any loan by Standard Chartered Bank and, therefore, the contents of the said news that the disbursement of loans sanctioned to the company has been held back is completely false and baseless. “The company completely denies the news reported and the same appears to be fabricated and the handiwork of certain vested interests,” Unitech said. Echoing Unitech’s views, DLF said in a release that the story is totally motivated and mischievous, and issued at behest of some vested interests. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:33 am Sintex Industries Q2 PAT up 86%PTI Mumbai: Plastics product maker Sintex Industries today announced a profit after tax of Rs83.80 crore for the second quarter ended 30 September, a 86.22% growth over the corresponding period a year ago. The company had a net profit of Rs45 crore in the September quarter of FY’08, Sintex Industries said in a filing to the Bombay Stock Exchange. The consolidated net income from operations rose 85% to Rs719.80 crore for the quarter under review, from Rs389.30 crore in the same quarter last fiscal. For the half-year ended 30 September, the company reported a PAT of Rs140.60 crore, a growth of 78%. Further, the company said that its building material business is witnessing growth, driven by better capacity utilisation. “We have been able to deliver a strong growth in the quarter on the back of a global turmoil and gradual slowdown in domestic markets,” Sintex Industries Managing Director Amit Patel said. Shares of the company were trading at Rs 194.50, down 14.37 per cent on the BSE. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:30 am JSW to become India’s largest pvt sector steel makerNew Delhi: Metal and mining company JSW Steel is set to become India’s largest private sector steel producer post-capacity augmentation of its plant at Vijaynagar in Karnataka by end of the calendar year. “On commencement of the expansion project in Q3 of the FY ‘09, JSW Steel will be the largest steel plant in private sector in India with a total crude steel production capacity of 7.8 million tonnes (including one MTPA at Salem)" JSW Group Chief Financial Officer Sheshagiri Rao said. Presently, SAIL is India’s largest steel producer in the public sector with annual production hovering close to 15 million tonnes, while in private sector Tata Steel tops the list with installed production capacity of 6.8 million tonnes. Sajjan Jindal-led JSW Steel is in process of expanding its finished steel capacity at Vijaynagar plant in Karnataka to 6.8 million tonnes, against the present 3.8 million tonnes. It has already commissioned a sinter plant and two blocks of coke-oven batteries as part of the company’s Rs 5,300 crore expansion project at Vijaynagar. The steel major has also lined up two greenfield projects of 10 million tonnes capacity each in West Bengal and Jharkhand with a cumulative investment of about Rs70,000 crore. It plans to commence construction work for its West Bengal project in November this year, while that in Jharkhand by early next year. Rao said JSW Steel intends to reach 32 million tonnes of steel capacity by 2020 for which the company would invest a whopping Rs85,000 crore. “As of now, we have secured financial resources for capacity expansion at Vijaynagar plant as also adding another three million tonne to it by March 2010,” he said. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:29 am RBI cuts reserve ratio, scraps bond as markets tankMUMBAI (Reuters) - Indian authorities slashed banks' reserve requirement on Friday and pledged more funds to ease a credit squeeze that drove short-term borrowing rates to 19-month highs and forced the government to scrap a bond sale.Source: Reuters: Money News | 10 Oct 2008 | 10:24 am Infosys crosses 100,000 employee markBy PTI New Delhi: Nothwithstanding the pressure on the IT job market from fears of an economic slowdown, IT company Infosys has become the second technology firm in the country to cross the one-lakh employee mark after industry leader TCS. Infosys and its subsidiaries added 10,117 employees in the second quarter of this fiscal that ended on 30September, taking the total head-count to 1,00,306 employees, Infosys said today after announcing its quarterly results. TCS too had close to 1,16,308 employees on its payrolls at the end of the previous quarter. The net addition for Infosys stood at 5,927 during the second quarter. During the quarter, the IT job market was under pressure due to the global financial crisis. Many IT firms had also postponed some of the new recruitments for next quarter. Analysts feel that due to a slowdown in the US economy, Indian IT companies, who mostly depend on the US market for their revenue, had postponed joining dates of new recruits, raising doubts about their future. The company announced a consolidated net profit of Rs1,432 crore for the second quarter, a 30.18% growth over the corresponding period a year-ago. However, the results failed to cheer up its shares, which dipped to an intra-day low of Rs1,040, down over 17% from its previous closing price. Source: LatestNews-Home - Livemint.com | 10 Oct 2008 | 10:24 am Asia stocks plunges on financial crisis panicHong Kong: Asian stocks plunged on Friday, with Japan’s Nikkei down more than 10%, while the yen and US Treasuries rose, as panic ripped through markets and investors shrugged off efforts so far to unlock credit markets. A synchronised cut in borrowing costs by central banks around the world this week is seen as too little, too late, and investors doubt a meeting of the Group of Seven rich nations later on Friday can achieve much, with fears growing that the global economy is shifting towards recession. US government debt and the yen have become refuges from the worsening financial crisis that overnight knocked the US S&P 500 stocks index down 7.6% to a 5-year low. But cash was ultimately king, with even Japanese government bonds being liquidated for funding. Fears of a looming world recession that would sap demand for raw materials dragged oil prices down to a 12-month low below $84 a barrel. “No one is buying. Fundamentals don’t matter any more and there’s no explanation for such a plunge,” said Yoshinori Nagano, chief strategist at Daiwa Asset Management in Tokyo, of the selloff in Japanese stocks. The Nikkei share average was down 10.6%, bringing the week’s losses to more than 20%. Unlisted Yamato Life Insurance Co filed for bankruptcy protection because of market turmoil, shocking investors who had thought Asia’s financial sector, especially Japan’s, was relatively stable compared with Europe and the United States. The MSCI index of Asia-Pacific stocks excluding Japan was down 5.7% to the lowest since June 2005, and has fallen 19% this week alone. Singapore’s Straits Times index fell more than 7%, its seventh consecutive day of falls, after data confirmed one of Asia’s richest economies was in a recession. The Chicago Board Options Exchange’s Volatility index (VIX), seen as a fear index, hit an all-time high of 64.92, as investors scrambled to buy increasingly expensive protection against erratic price action. With global equity markets declining with brutal swiftness, investors have rushed to US Treasury debt despite weakness in recent days on expectations for a glut of new issuance. The 10-year note rose 21/32 in price, taking its yield to 3.70% from 3.78%. Rates on one-month T-bills fell to just 0.045%, from 0.080 on Thursday and 1.55% as recently as 11 September, as the very short end of the market continued to act as a source of funding with other avenues all but shut down. What More Can Be Done? Credit markets were nearly broken. The cost of protection against defaults in Asia’s sovereign and corporate debt soared to record highs, traders said. The iTRAXX Asia ex-Japan high-yield index, a key measure of risk aversion for the region’s “junk”-rated credit, soared about 90 basis points to a record 890/940 bps, a Singapore-based fund manager said. But traders warned of little activity in the credit markets, which tends to magnify price differences. Extreme market volatility stoked talk that the major central banks would have to reduce interest rates again, just days after a concerted round of cuts led by the Federal Reserve and European Central Bank. There were also reports the US Treasury was under intense pressure to inject funds directly into commercial banks. “It highlights the enormity of the issue and the problem faced by the G7,” said Adam Carr, a senior economist at broker ICAP. “Given the muted response in markets, certainly I think more rate cuts are to come, as ineffective as they are proving. Lets hope the G7 propose a good dose of fiscal medicine to the real economy as well.” Whether or not global policymakers have anything more planned, time was running thin. The spread of 3-month London interbank offered rates over the 3-month US Treasury bill yield widened to 426 bps, increasing more than 300 bps in the last month, with cash being hoarded and practically no lending between banks. Japanese government bonds plunged as much as 1.99 points to 136.47, with investors in a frantic rush to secure cash with domestic money markets succumbing to the freeze around the world. Source: Home - Livemint.com | 10 Oct 2008 | 10:04 am RBI cuts CRR by additional 1% to 7.5%Mumbai: Taking swift action to inject about Rs60,000 crore into the cash-strapped system, the Reserve Bank on Friday announced additional one per cent cut in mandatory requirements for banks to keep cash with the central bank over and above 0.50% reduction announced earlier. With this, a total 1.50% cut in Cash Reserve Ratio (CRR) to 7.50 per cent will come into effect from tomorrow. “Accordingly, on a review of the evolving liquidity situation in the context of global and domestic developments it has been decided to reduce CRR by 150 basis points to 7.50% with effect from the fortnight beginning 11 October instead of 50 basis points reduction announced on 6 October,” RBI said in a statement here. Both the measures - a 1% and a 0.50% cuts in CRR - came ahead of RBI’s mid-term review of monetary policy slated for 24 October. In the context of the abrupt changes in the international financial environment, it is important to note that the economic fundamentals of the Indian economy are strong and resilient and that India’s financial system is sound, well-capitalist and well-regulated,” RBI said. The central bank said money in forex markets in India have been operating in a relatively orderly manner. “The current domestic market conditions are essentially a reflection of the adverse developments and extreme uncertainty in international financial markets,” the statement said. The Reserve Bank also said that it would ensure price stability along with the growth process. “The Reserve Bank is monitoring developments closely and continuously and would respond swiftly and even preemptively to any adverse external developments impinging on domestic financial stability, price stability and inflation expectations and the continuation of the growth momentum of the Indian economy,” it said. Finance Minister P Chidambaram had already assured the nation that liquidity will be injected into the system if the need arises. Besides RBI’s measures, certain other steps like lifting of curbs on Participatory Notes by market regulator Sebi and relaxation in overseas borrowing norms by the government have already been taken to inject money flow into the system. Welcoming the RBI decision to reduce the CRR by 150 basis point, Assocham president Sajjan Jindal said “ it was high time that the Central Bank should consider reducing the benchmark lending rate to ensure adequate liquidity in the system. He said though these measures were long over due, the action should not be taken as a ‘panic signal’ as non performing assets (NPAs) of the banks are even lower than 2%. The industry chamber’s membership has requested for a removal of ceiling of interest rate of external commercial borrowings. With inputs from livemint.com Source: Home - Livemint.com | 10 Oct 2008 | 9:57 am HIGHLIGHTS - Chidambaram comments on markets, banks and dataNEW DELHI (Reuters) - Following are comments by India's Finance Minister Palaniappan Chidambaram to local television channels on Friday about liquidity in local markets, Indian banks, and industrial production data.Source: Reuters: Money News | 10 Oct 2008 | 9:51 am Exporters not to gain from rupee depreciation soonThe rupee has depreciated to nearly 48 to a dollar but garment exporters will have to wait for some more time to enjoy windfall gains. Earlier, when the rupee had appreciated to around 38 to a dollar, most exporters had hedged their positions by signing forward contracts with banks at roughly 41 rupees to a dollar.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 9:37 am Govt to take more steps to ease tight cash - ChidambaramNEW DELHI (Reuters) - Government will take more steps to infuse liquidity in the banking sector and the situation will improve once government gets parliament's approval for spending, the finance minister said on Friday.Source: Reuters: Money News | 10 Oct 2008 | 9:34 am Apple to unveil new laptops on 14 OctSan Francisco: Apple Inc will unveil its updated laptops on 14 October and they may cost less, but analysts say the company’s drooping stock has already taken any change into account. “I think it’s already factored into the stock. People have been expecting this announcement for well over a month,” said Andy Hargreaves of Pacific Crest Securities in Oregon. The company’s stock was up 1% at $90.64 in midday trading, but closed down 1% at $88.74 and, overall, it has lost about 56% of its value since closing at a year high of $202.96 on 27 December, 2007. Apple enters the fourth quarter against a background of continuing headlines about falling stocks and failing banks, and a September in which retail sales dived beyond expectations. At minimum, Apple will use the event at its Cupertino, California, headquarters to refresh its laptop line by updating to the latest chips and it may also offer new designs. The Apple invitation said only: “The spotlight turns to notebooks.” Occasionally, Apple unveils revolutionary new approaches at such events, but analysts shrugged when asked about the possibility. “You won’t know that until the day of the event,” said Tim Bajarin of Creative Strategies in Campbell, California. Analysts also raised the possibility of a drop in the sticker price for laptops that now start at $1,099, more than twice the cost of the cheapest of the Window-based laptops. Apple chief financial officer Peter Oppenheimer opened the door to speculation as long ago as 21 July during a discussion of the company’s computer line. The executive said the company introduces “new products that initially cost more because they deliver an entirely new level of value to the customer. Then we ride the cost curves down with value engineering and volume manufacturing, leaving us far ahead of our competitors.” Bajarin was cautious and stopped short of forecasting price cuts. “It’s a possibility. We don’t know that for sure,” he said. He said Apple emphasizes design and functionality, “but clearly they have become more price conscious as they have become more competitive.” Source: Tech News - Livemint.com | 10 Oct 2008 | 9:08 am Talks between Citigroup, Wells Fargo hit an obstacleTalks between the Citigroup and Wells Fargo have hit an obstacle. CNBC has learnt the roadblock came as the parties negotiated which bank will take ownership of Wachovia\'s branches in the midAtlantic region.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 8:55 am Auto rickshaws to form 10% of TVS Motors revenuesAuto rickshaws will contribute to around 10 per cent of TVS Motor Companys revenues in three years, said Mr K. Srinivasan, Vice President, Sales and Service (three wheeler), at the sidelines of the launch of the TVS King zx.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 8:44 am Cairn yet to get right of use for Rajasthan pipelineCairn India, which aims to pump out oil from its Rajasthan fields in a years time, has run into fresh trouble, this time with the Rajasthan government. The latter is yet to grant the crucial Right of Use (ROU) for the part of the pipeline that will pass through the State.Source: Moneycontrol Top Headlines | 10 Oct 2008 | 8:42 am Annual inflation at 11.80% on 27 SeptNew Delhi: India’s wholesale price index rose 11.80% in the 12 months to 27 September, below the previous week’s annual rise of 11.99%, government data showed on Friday. The rate was below a median forecast of 11.98% in a Reuters poll of analysts. Inflation for the week ended 2 August was revised up to 12.91% from 12.44%. The annual inflation rate was 3.36% during the corresponding week of the previous year. The wholesale price index is more closely watched than the consumer price index, which is published monthly, because it covers a higher number of products and is released weekly. Source: Home - Livemint.com | 10 Oct 2008 | 8:28 am Rupee hits all-time low on global crisisMumbai: The Indian rupee fell to a record low past Rs49.07 per dollar on Friday as the spreading global financial crisis hurt sentiment in Asian stock markets, leading to concerns of a large outflow of foreign funds from India. At 9:08am, the partially convertible rupee was at Rs49.10 per dollar according to Reuters data, compared with Wednesday’s close of Rs47.99/48.01 per dollar. The currency market was shut on Thursday due to a local holiday. The previous all-time low was Rs49.07 hit in May 2002. Source: Home - Livemint.com | 10 Oct 2008 | 6:54 am Snowballing sell-off drives Dow down 679 ptsNew York: A runaway train of a sell-off turned the anniversary of the US stock market peak into one of the darkest days in Wall Street history on Thursday, driving the Dow Jones industrials down a breathtaking 679 points and deepening a financial crisis that has defied all efforts to stop it. Stocks lost more than 7%, 872 billion of investments evaporated, and the Dow fell to 8,579. When the average crashed through the 9,000 level for the first time in five years in the final hour of trading, sellers had only begun to hit the gas pedal. As bad as the day was, even worse was the cumulative effect of a historic run of declines: The Dow suffered a triple-digit loss for the sixth day in a row, a first, and the average dropped for the seventh day in a row, a losing streak not seen since 2002. “Right now the market is just panicked,” said David Wyss, chief economist at Standard & Poor’s in New York. “Nobody wants to take on any risk. Everybody just wants to get their money and put it under the mattress.” It all took place one year to the day after the Dow closed at its record high of 14,164. Since that day, frozen credit, record foreclosures, cascading job losses and outright fear have seized the market and sapped 39% of its value. Paper losses for the year add up to an staggering $8.3 trillion, according to figures measured by the Dow Jones Wilshire 5000 Composite Index, which tracks 5,000 US-based companies representing almost all stocks traded in America. It was the second straight day that Wall Street was rocked by a final-hour sell-off, but this one was particularly shocking. Most of the day was relatively calm, and the trading floor was quieter than usual because of the Jewish holiday of Yom Kippur. Wall Street awoke to news the federal government was brandishing a new weapon against the financial crisis considering seeking an equity stake in major US banks in order to stabilize them. But that step appeared to be as ineffectual as the others Washington has rolled out in recent weeks, including a $700 billion bailout of the financial industry, a coordinated interest rate cut by central banks around the world and direct lending by the Federal Reserve to private companies to provide them with short-term cash. Acquiring a stake in the banks would be yet another startling intervention by the government in the free market, but economists said President George W Bush was left with little choice because of the credit markets, where tight lending has choked off the everyday cash that is the lifeblood of the economy. “In normal times, this would be out of the question, but in the present dire situation, I think the government should be employing all the powers that it can,” said Sung Won Sohn, an economics professor at California State University, Channel Islands. After the closing bell, shellshocked traders and bankers gathered at Bobby Van’s Steakhouse and downed beers and drinks to chase the ghastly numbers. One Wall Streeter joked things had gotten so bad that he should apply for a job as a waiter. “It was an ugly day, there’s no ways to put it,” said another customer, Alan Valdes, director of floor operations for Hallard, Lyons. “Guys were frustrated, just fed up. ... We’re in an area no one has been in since 1930.” Wall Street has been teetering on the brink of panic for a month now, vulnerable to any bad news. Thursday’s sell-off was triggered when a major credit rating agency put General Motors Corp. and its finance affiliate under review to determine whether it should be downgraded. Stock in GM, one of the 30 components of the Dow Jones industrials, lost 31% of its value and closed at $4.76 its lowest in more than half a century, since the Korean War began. Source: Home - Livemint.com | 10 Oct 2008 | 6:26 am Infosys Q2 net rises 30%, beats forecastBangalore: Infosys Technologies beat expectations with a 30% rise in quarterly profit helped by a weaker rupee, but cut its forecast for the full year citing global financial crisis, knocking its shares down 17%. India’s No. 2 information technology services exporter said it would not increase its takeover offer for British Consultancy Axon, after smaller rival HCL Technologies trumped its bid offering 8.3% more. Click here to read highlights of the results Infosys forecast revenue for the year to March would grow 13.1-15.2% in dollar, down from July’s forecast of 19-21%. It also cut earnings per share to $2.24 from $2.32-$2.36 projected in July. “We have revised our US dollar revenue guidance to reflect the current economic situation and the drastic depreciation of major global currencies against the US dollar,” Chief Executive S. Gopalakrishnan said. Shares in Infosys slumped to their lowest in nearly 3-“ years to Rs1,040 in a Mumbai market that tumbled more than 9% early. Average billing rates fell 0.3% in the September quarter, but Infosys is not seeing any big project cancellations and expects optimistic about the medium- to long-term business growth, Gopalakrishnan said. “In the last four weeks, we have seen lot of changes in the market place....” he said. “We want to be cautious and that is why we have revised our guidance.” India’s export-driven software service firms, who were used to a scorching pace of growth, have been badly hit by a slowdown in their key United States market, which contributes more than half their revenue, and the spreading global financial turmoil. The company, which develops applications, designs supply chains and offers back-office services, said on Friday consolidated net profit rose to Rs1432 crore ($291 million) in July-September, its fiscal second quarter, from 1100 crore reported a year ago. Source: Home - Livemint.com | 10 Oct 2008 | 4:53 am Oil hits 1-year low on fears of demand slumpSingapore: US crude oil futures tumbled by more than $4 a barrel on Friday, extending losses to fresh one-year lows, as traders feared the credit crisis would send the global economy into recession and hurt fuel demand. US light, sweet crude for November delivery fell $4.26 to $82.33 a barrel, having earlier fallen to $82.10 a barrel. Oil prices earlier fell by $3 to a fresh one-year low below $84 a barrel, as fears that market turmoil will send demand for fuel slumping outweighed news that Opec will hold an extraordinary meeting in November. With the financial crisis now almost a month old, Japan’s Nikkei stock index plunged 11% on Friday, while the yen and gold rose on growing concerns that no government effort so far has kept the global economy from a path to recession. Investors, who earlier this year piled into oil and other commodities as a hedge against inflation and the weak dollar, are putting cash into safer havens and have sent oil plummeting by more than $60 from its record high above $147 in July. US light crude for November delivery fell $2.77, or 3.2%, to $83.82 a barrel, just above its earlier low of $83.78 and extending oil’s more than $20 drop during the past two weeks alone. London Brent crude shed $2.26 to $80.40 a barrel, matching the previous session’s 12-month low. “The decline in oil prices was despite Opec indicating that it will hold an extraordinary meeting on 18 November,” said David Moore, a commodity strategist at Commonwealth Bank of Australia. Opec said it will hold the emergency meeting in Vienna to discuss the impact of the financial crisis on the oil market. The statement came after calls from Opec ministers this week for action to halt a slide in oil prices. Investors will also look to Washington, where finance ministers and central bankers from the Group of Seven major industrial nations will meet amid expectations that the group will present a united front on policy to contain the crisis. The International Energy Agency (IEA) releases its monthly report on the oil market at 0900 GMT, and investors are expecting another cut in demand expectations for this year and next. The slumping economy has already prompted analysts to revise downwards their global oil demand growth target, with the US Energy Information Administration this week dropping its 2009 projection by 140,000 barrels per day. Source: Home - Livemint.com | 10 Oct 2008 | 3:24 am Bank bailouts: Cost of inaction far greater, says IMF official!US and European government bailouts of ailing banks may be unpopular with taxpayers but the cost of doing nothing would be far greater, a senior International Monetary Fund official said on Thursday.Source: Zee News : Business | 10 Oct 2008 | 12:23 am Oil prices drop despite news of emergency OPEC meet!Oil prices sank on Thursday as plunging stock markets outweighed news that OPEC will hold an emergency meet next month to discuss the impact of the chaos on world markets.Source: Zee News : Business | 10 Oct 2008 | 12:23 am US can never regain its status in global market: Putin!Endorsing the views of the Russian Communist Party that the US is not a "trustworthy financial leader", Russian Prime Minister Vladimir Putin on Thursday said America, hit by a financial turmoil, can never regain its status in the global market.Source: Zee News : Business | 10 Oct 2008 | 12:23 am India becomes less competitive: WEF!India has dropped in its global competitiveness ranking to the 50th place, while neighbouring China has improved its ranking to the 30th spot in the latest list compiled by the World Economic Forum.Source: Zee News : Business | 10 Oct 2008 | 12:23 am India 2nd most vulnerable economy: Citi!Global financial giant Citigroup has ranked India as the second most vulnerable Asian economy after Thailand, while terming dragon economy China as the most resilient to external uncertainties.Source: Zee News : Business | 10 Oct 2008 | 12:23 am Dollar may touch Rs 50 in two months, feel experts!Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.Source: Zee News : Business | 10 Oct 2008 | 12:23 am Ranbaxy Laboratories (Rs 279.25): BUYWe recommend a buy in Ranbaxy Laboratories from a short-term perspective. It is evident from the charts of Ranbaxy that it has been on an intermediate-term downtrend from its June high of Rs 613. This downtrend accelerated in the early part ofSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Global Indians: There’s no stopping themQuestion: Where in the world would you find the highest number of ‘People of Indian Origin’? Give yourself a few minutes to make a good guess.Answer: Myanmar. Not less than 2.5 million ethnic Indians liveSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am TCS to retain entire team of Citi’s BPO unitTata Consultancy Services (TCS) will not only retain each of the more than 12,400 employees currently working with Citigroup Global Services Ltd (CGSL), but also scale up hiring for its BPO operations, a top company official said.Source: Business Line - Home Page | 10 Oct 2008 | 12:00 am Bankers anticipate another cut in CRRMumbai, Oct. 9 As the rupee fell to a six-year low on account of huge amount of capital outflows from the domestic equity markets and with the RBI continuing to sell dollars, liquidity conditions are expected to remain tight in the coming monthsSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Are MFs facing redemption pressure?Mumbai, Oct. 7 The mutual fund industry seems to be facing some redemption pressure now, which could be the reason why they have been net sellers of equity so far this month. According to the data available on the Web site of the Securities andSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Wartsila hopes to ride tough times on strong order bookChennai, Oct. 9 With an order book of €7.5 billion (Rs 48,750 cr) that would keep it busy up to and through most of 2010, the multinational Wartsila Corporation expects to come through the international financial turmoil relativelySource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Market jitters persistMumbai, Oct. 9 Worried investors in Indian equity markets hoping for a turn of sentiment in the global markets following coordinated rescue efforts by governments across the globe had little to cheer them on Thursday.Source: Business Line - Home Page | 10 Oct 2008 | 12:00 am More downside risks for metals in Q4Mumbai, Oct 9 While commodity prices have fallen across the board, metals seem to have taken the biggest hit, primarily because of growth concerns and slowing consumption demand. From the highs of first and second quarters of 2008, the currentSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Day Trading GuideThe analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop-loss level isSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Banks see further tightening of liquidity; hike deposit ratesBangalore, Oct. 9 Banks have begun pushing up deposit rates anticipating a further tightening of liquidity, despite the Reserve Bank’s 50 basis points cut in the Cash Reserve RatioSource: Business Line - Home Page | 10 Oct 2008 | 12:00 am Nuclear power to cost Rs 4 a unit, half industry estimatesContrary to perception, the cost of nuclear power based on imported fuel and equipment will be comparable to that from the conventional power plants, says Shreyans Kumar Jain, chairmanSource: Business Standard | Front Page Headlines | 9 Oct 2008 | 6:54 pm PE funds trapped in falling marketsFalling equity markets have trapped major private equity (PE) investors such as Warburg Pincus, Blackstone Group, Carlyle, Apax Partners, Chrys Capital and Citigroup.Source: Business Standard | Front Page Headlines | 9 Oct 2008 | 6:54 pm Banks stop lending to oil companiesFunds dry up owing to liquidity crunch, high debt.Source: Business Standard | Front Page Headlines | 9 Oct 2008 | 6:53 pm Private carriers ask for Rs 4,700-crore bailoutThe countrys leading private airlines have sought a Rs 4,700-crore bailout package from the government to counter slowing passenger traffic, rising costs and an industry-wide liquidity crunch.Source: Business Standard | Front Page Headlines | 9 Oct 2008 | 6:52 pm Fear and mayhem in the capital markets As the tide ebbs, it has uncovered shoddy banks that relied heavily on short-term funding and lent irresponsibly. Perhaps the poster child of poor decision making was Iceland, a country of 300,000 and gross domestic product (GDP) of less than $20 billion (Rs97,480 crore). In the heyday of loose global monetary policy, Iceland saw its household and non-financial corporate debt go from about 200% of GDP to over 400%. Meanwhile, banks lent heavily in overseas markets. The banking system so outsized the economy that banks had to borrow extensively overseas—their external debt went from 55% of GDP in 2002 to 468% in 2007. Iceland has already nationalized two of its largest banks. With or without a declining currency amplifying the external debt, it’s looking increasingly unlikely that the gargantuan external debt will be serviced. Ireland is not far behind. The government recently guaranteed deposits and debt of six wholly Irish-owned banks. In a worst-case scenario, this could cost the government $575 billion—twice its GDP and nine times its national debt. Again, poor decision making was behind the mess. The banks carry loan books that are highly unseasoned and most of the recent loans have gone to a now slumping real estate market. Credit outstanding was twice the country’s deposits in 2007. Some 70% of the lending between 2004 and 2007 was wholesale-funded, and as a result the banks now face punitive debt refinancing. In India, ICICI Bank Ltd was caught in rumours and had some depositors rushing to take their money out. Such a crisis of confidence is the Achilles heel for any bank. As it stands, Rs1 lakh of an individual’s bank deposit is insured. Meagre as this amount may sound, it actually covers 58% of the deposits in India as per the Deposit Insurance and Credit Guarantee Corp. The insured amount, set in 1993, should be increased to reflect current times. It is easily possible to do so given the soundness of the Indian banking system. Ironically, the statutory liquidity ratio, which mandates banks to hold at least 25% of their deposits in government bonds, and is a great funding source for fiscal mismanagement by the government, itself serves as a protection for the depositors. Laudably, the Reserve Bank of India has over the years, with a variety of monetary tools, protected Indian banks from falling prey to financial contagion. Speaking of regulators, markets regulator Securities and Exchange Board of India retraced its steps on participatory notes just a year after it unveiled a complicated plan to cherry-pick foreign investors. Aside from increasing paperwork and costs, this plan has achieved nothing. Now, this band-aid solution seeks to prevent stock market gyrations caused by foreign institutional investors’ reversals. Again, we remain unimpressed with the regulators’ fascination with stock market moves. Coming back to the stock market carnage, much of the US market sell-off has also been exacerbated by hedge funds. Met with redemption calls, hedge funds are liquidating across the board. There are stocks and then there are “hedge fund stocks”—stocks widely held by hedge funds, which are selling irrespective of fundamentals. These stocks are not restricted to any one sector but happen to be favourites in the hedge fund community and, for the past month, have been lambs led to the slaughter. Goldman Sachs Groups Inc. had compiled an index of these names—suffice to say the index has been an outstanding short. Hedge funds liquidation has also hit some of the “hedge fund hot spots” such as Brazil, Russia and, of course, India. Global markets have been in a seizure of sorts. So when does this all end? What is forgotten in this panic is that the stock market is just a headline, albeit a really colourful one. The real story is in the credit markets where fear is running amok. Frozen credit markets are merely a manifestation of the real problem, namely the US housing market. House prices have to stabilize for any kind of normalcy to return to the credit markets. In the meantime, as the economic downturn hits, a handful of money shufflers go unscathed while the broader population is hung out to dry. Rajeshree Varangaonkar and Bharat Indurkar have day jobs with US-based hedge funds. They will write every other Thursday. Send your comments to globalbeat@livemint.com Source: Home - Livemint.com | 9 Oct 2008 | 6:30 pm TCS’ exposure to banking sector The difference is that the valuation of Citigroup Global Services seems more reasonable. Adjusted for the cash on its books, Citigroup’s captive BPO (business process outsourcing) firm is valued at a little more than eight times estimated earnings before interest and tax for 2008. That’s slightly lower than TCS’ own battered-down valuation of about 8.5 times estimated 12-month earnings till December. In Axon’s case, however, HCL Technologies has valued the target firm higher than its current valuation. For a captive BPO firm, Citigroup Global Services has surprisingly high operating margins of 20%. Normally, when a third party runs back-office operations, it’s able to extract higher margins. But it remains to be seen if TCS is able to improve margins, given the troubles faced by the whole banking industry currently. But the greater risk is the increased exposure to the financial services sector and one client within the sector. According to an analyst, TCS would now generate revenue worth $400 million from Citigroup Inc., or about 5.5-6% of its annual revenue. Its exposure to the financial services sector is already rather high at 42.5%. The underperformance of TCS’ shares vis-a-vis Infosys in the recent past shows that the markets aren’t happy with this high level of exposure. Source: Home - Livemint.com | 9 Oct 2008 | 6:30 pm Indian moon mission to test Isro’s capabilitiesBangalore: On 22 October, India joins Japan and China in an all-Asian race to explore the moon, even as the US, which put the first man on the moon in 1969, plans to repeat the feat by 2020. That is the scheduled date for the launch of Chandrayaan-1, India’s first moon mission. Click here to watch video “We’re exploring a region (moon) where we believe is a place humans may go (and live),” says G. Madhavan Nair, chairman of the Indian Space Research Organisation (Isro). A human settlement on the moon is a few decades into the future, but for now, there is little known about the earth’s satellite and its atmosphere, mineral resources, evolution and — the Rs386 crore (the approximate cost of the mission) question — whether it has enough water to sustain a human colony. Over the next two years, the 590kg spacecraft, fitted with cameras and sensors, will hover 100km over the moon to map its entire surface, particularly its polar regions, and send the chemical, soil and mineral characteristics to earth. The spacecraft, fitted with 11 scientific instruments, including five from the US, Sweden, Japan, Germany and Bulgaria, will also explore and identify deposits of helium-3 or He-3, a clean nuclear fuel that can potentially solve all of the world’s energy problems. The highly unstable He-3 is found in abundance on the moon. India’s moon mission will follow that of Japan, which launched its Selene spacecraft in September 2007, and China, which launched Chang’e-1 in October 2007. For Isro, which has till now only sent a satellite up to 36,000km over earth, its first scientific mission is also the toughest. The spacecraft needs to travel nearly 400,000km, and the mission will test the agency’s expertise in rocket technology, guidance and navigation of the spacecraft. “This has to be achieved (with) the precision of few kilometres at the meeting point in the lunar orbit,” says Nair. “Now the capability of instruments (are) much better... So we can do better work than what we did 30 years back,” adds M. Annadurai, project director of the Chandrayaan-1 mission. Isro has built a deep space network, with a 32m antenna in Bangalore, to receive data from the spacecraft. Data from the moon mission will also be received at the three deep space complexes of the US’ National Aeronautics and Space Administration, or Nasa, which are located in California, Spain and Australia, a Nasa spokesperson said in an email statement. Meanwhile, preparations for the launch are on in Sriharikota, Andhra Pradesh, the site from which India has launched several satellites. Source: Tech News - Livemint.com | 9 Oct 2008 | 6:29 pm
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