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Capt Gopinath wants to buy back Air DeccanGR Gopinath, who currently is the Vice Chairman of Kingfisher Airlines, today feels his Air Deccan model now becomes a feasible one to do business in the wake of rising fuel costs, job cuts and consolidation.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 4:47 pm 3G auction may be delayed due to FM pressure: DoT SourcesSources from the Department of Telecom, or DoT, say 3G auctions could be delayed if Finance Minister P Chidambaram pressurises them, reports CNBCTV18. The Finance Minister has sighted global liquidity crunch for delaying the 3G auction, they added.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 4:35 pm See steel prices nearing bottom: Macquarie ResearchSteel cycle has changed substantially from what was prevalent in first half of the year. Meanwhile steel major Tata Steel sees impact on steel prices and production numbers as demand has softened. Rakesh Arora feels there could be some more pressure on the steel prices. He added the prices may near to bottom than declining further.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 2:41 pm JetKF alliance fine if within rules: Praful PatelCivil Aviation Minister Praful Patel said he would have no objection to the KingfisherJet alliance as long as it was within the Directorate General of Civil Aviation (DGCA) guidelines. The Civil Aviation Ministry and DGCA will take action if the airlines were found taking advantage.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 1:34 pm Don\'t want govt to intervene in RILRNRL gas pricingAs per the MoU, signed between RILRNRL for division of Reliance group companies, RNRL said gas has to be given to it on the same terms as NTPC, reports CNBCTV18. \"We intend to file an affidavit in response to the governments role. Any government price fixing, apart from the production sharing agreement, is not required.\"Source: Moneycontrol Top Headlines | 15 Oct 2008 | 1:12 pm TN govt to hold talks with ind on power situationTamil Nadu Electricity Minister Arcot N Veerasamy said he will hold talks with various industry associations which have called for a one-day strikeSource: Daily News & Analysis: Money News | 15 Oct 2008 | 12:23 pm BSE Sensex drops 5.9 pct; Reliance, L&T lead fallBANGALORE (Reuters)- The BSE Sensex dropped 5.87 percent on Wednesday, unwinding most of a 9 percent rise over the previous two days as concerns grew about corporate earnings and tight liquidity conditions in Asia's third-largest economy.Source: Reuters: Money News | 15 Oct 2008 | 12:15 pm New and renewable energy is energy of future: OfficialRenewable and new energy should be considered as development-imperative and energy of future as the country has a potential to generate about 84,000 MW of grid interactive renewable powerSource: Daily News & Analysis: Money News | 15 Oct 2008 | 12:14 pm Govt outlines steps to increase mkt fundsNEW DELHI (Reuters) - Indian authorities will disburse immediately 250 billion rupees ($5.2 billion) to banks for a farm waiver scheme, and increase a cap on foreign investment in Indian corporate debt as part of steps to ease tight cash conditions, the finance minister said on Wednesday.Source: Reuters: Money News | 15 Oct 2008 | 12:10 pm Markets in red again, Sensex closes below 11000 level - Hindu
Source: Google News India - Business | 15 Oct 2008 | 12:09 pm Crisis calls for U.N. reform, BRIC nations sayNEW DELHI (Reuters) - The leaders of India, Brazil and South Africa said on Wednesday the global credit crisis showed the need for reforming institutions such as the United Nations to reflect their growing economic clout.Source: Reuters: Money News | 15 Oct 2008 | 12:05 pm Indian equities slip after two days of gainsAfter two days of impressive gains, Indian equities ended lower on Wednesday on cues from other boursesSource: Daily News & Analysis: Money News | 15 Oct 2008 | 12:03 pm Realty index slips 3.7 pc on BSEWith the domestic bourses taking cues from global markets, the realty stocks dipped 3.70 per cent on Wednesday as bearish sentiments gripped the market.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 12:02 pm Reuters Summit - Private banks take on India "informal" wealth mktSINGAPORE (Reuters) - Foreign private banks in India, which have seen business stall amid the global financial crisis, are looking to poach new business from the country's dominant informal wealth managers, industry players said on Wednesday.Source: Reuters: Money News | 15 Oct 2008 | 12:00 pm Confidence is greatest casualty of market crisisIn its desperate attempt to rescue Russia's crisis-ridden financial market, the government adopted a massive rescue package Oct 7Source: Daily News & Analysis: Money News | 15 Oct 2008 | 12:00 pm Post offices to sell gold coinsIndia Post, the country's postal services, will start selling 24-carat gold coins through its post offices, the government announced here Wednesday.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 11:59 am SpiceJet reduces fares - Times of India
Source: Google News India - Business | 15 Oct 2008 | 11:55 am Real estate hit in several parts of GujaratSteep increase in Jantri rates, rising costs of construction materials and economic meltdown after collapse of financial institutions in the US have impacted real estate in Gujarat.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 11:55 am FM keen on early spectrum auction to enrich Govt coffers - Hindu Business Line
Source: Google News India - Business | 15 Oct 2008 | 11:46 am Tata Sky pulls out new trick as DTH war heats upThe DirecttoHome (DTH) war in India is seeing a new strategy emerge. Established players are latching on to television recording from television viewing.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 11:36 am RBI’s steps will ease up liquidity pressures: UTI MF - Moneycontrol.com
Source: Google News India - Business | 15 Oct 2008 | 11:31 am Infosys to increase focus on India market - Economic Times
Source: Google News India - Business | 15 Oct 2008 | 11:31 am FM keen on early spectrum auctionFinance Minister P Chidambaram is likely to meet DoT soon to discuss schedule for the auction process.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 11:31 am India gold demand to pick up on volatile stocks - WGC - Reuters India
Source: Google News India - Business | 15 Oct 2008 | 11:30 am Jet Airways staff cries foul after pink slips to 850Agitated employees of Jet Airways cried foul Wednesday after the services of 850 staff were terminated, following a strategic and operational alliance with rival Kingfisher Airlines. The airline also warned more jobs were on the block.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 11:30 am Raj Thackeray warns Jet: Reconsider staff retrenchment - Times of India
Source: Google News India - Business | 15 Oct 2008 | 11:24 am Markets in red again, Sensex below 11k levelMumbai: Stock markets on Wednesday slipped into the negative territory again after two days of gaining, with the benchmark Sensex nosediving over 670 points to close below 11,000 level on across-the-board selling by funds and general investors. After notching up more than 950 points in the past two days, the BSE barometer on Wednesday plunged to 10,809.12 points, a steep fall of 674.28 points. The markets opened on particularly weak note and the key index never recovered from its loss of 250 points at the outset. National Stock Exchange index Nifty also tumbled by 180.25 points at 3,338.40. Marketmen said buying of the past two day could not be sustained on Wednesday as sentiment was weak on concerns that deepening financial crisis could lead to a global recession. The fears were were mirrored in other Asian bourses as well, they noted. Major indices like Hang Seng Index and Singapore Strait Times Index closed lower in the range of 3-5% taking cues from marginal in US overnight. On BSE selling pressure was felt across the board and there on Sensex scrip could post any gain while all sectoral indices closed in the red. Capital goods, consumer durables and metal segment recorded hefty losses and topped the list of big sectoral losers. Capital goods segment index suffered a loss of 788.19 points at 8088.01. Larsen and Toubro dropped Rs 110.50 at Rs 893.15, BHEL Rs 93.40 at Rs 1394.30 and Areval Rs 151.75 at Rs 903.95. Metal sector index fell by 535.86 points at 6315.85, with stocks of Sterlite Industries, leading copper and zinc producer, dropped 10.11% at Rs292.15, after metals prices dropped in global markets. Tata Steel fell by 10.35% at Rs273.25, Jindal Steel 10.56% at Rs777.30 and Hindalco 6.70 per cent at Rs79.40. Oil and gas index by 392.53 points at 7230.87, as the index heavy Reliance Industries dropped by Rs100.45 at Rs1519.25, Aban Offshore by Rs158.10 at Rs1037.10, ONGC by Rs42.10 at Rs838.60 and Essar Oil by Rs19 at Rs98.10. IT index lost 159.68 points at 2780.19. Sensex heaviest Infosys Technologies dropped Rs65.80 at Rs1331.25, Satyam Computers Rs 16.65 at Rs272.35, Tata Consultancy Rs50.10 at Rs542.05 and Moser Baer Rs19.10 at Rs105.40. Consumer durables index fell by 204.91 points at 2125.85, Teck index 143.18 points at 2230.60, power index 122.15 points at 1905.72, realty index 129.26 points at 2675.48, FMCG index 70.92 points at 1870.08, PSU index 203.36 points at 5555.49, Auto index 119.29 points at 3309.46, Bank index 196.47 points at 5841.50 and Healthcare index 76.28 points at 3328.35. As selling pressure spread over a wide-front, smallcap index dropped by 222.44 points at 4393.45 and midcap index by 171.55 points at 3720.48. Source: Home - Livemint.com | 15 Oct 2008 | 11:22 am Jet Air dismisses 1000 staff, Kingfisher may follow suit - Moneycontrol.com
Source: Google News India - Business | 15 Oct 2008 | 11:20 am Volvo to introduce premium SUV in IndiaBullish on the Indian market despite global economic downturn, Swedish luxury carmaker Volvo on Wednesday said it will enhance its product portfolio in the country.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 11:19 am Big Asia oil consumers resist fuel price cuts at $80SINGAPORE (Reuters) - Asia's fastest-growing oil importers are resisting for now the political lure of cutting domestic fuel prices after crude costs nearly halved since July, helping keep a tight lid on consumption already being curbed by an economic slowdown.Source: Reuters: Money News | 15 Oct 2008 | 11:12 am Jet Airways employees protest against retrenchmentAbout 300 Jet Airways employees, including cabin-crew, staged a protest outside the airline's office here against the management's move to retrench nearly 1,000 staffers.Source: Daily News & Analysis: Money News | 15 Oct 2008 | 11:12 am Gopinath says keen to buy back budget carrierReuters Mumbai: Kingfisher Airlines Ltd Vice Chairman G.R. Gopinath said on Wednesday he is interested in buying back the budget airline of Kingfisher if Chairman Vijay Mallya exits the low-cost carrier model. On Monday, Kingfisher and top private carrier Jet Airways agreed on a cost-saving alliance involving code-sharing, sharing of ticketing, ground services and joint fuel management. But Gopinath, who was the founder of budget airline Air Deccan, told news channel NDTV Profit the code-sharing alliance between Kingfisher and Jet Airways would create a monopoly, hurting the interests of the industry as a whole. “A long-term monopoly is not good for the country, not good for the consumer, neither is it good for the airline industry itself,” he told the channel, adding he would continue to be against any such monopoly. Gopinath said he would want to buy back Air Deccan, which was rechristened Kingfisher Red following the merger of Kingfisher with Deccan Aviation Ltd, which ran Air Deccan. “If both Vijay Mallya and Naresh Goyal ...want to exit the low-cost model because they think it is embarrasing for them, then let me buy it back,” he told the news channel. “It can’t be a hostile takeover since Vijay Mallya owns more than 60 percent stake, but if he wants to exit the space then it (Air Deccan) should be spun off into a separate entity. Even he (Mallya) will get the money that he needs,” Gopinath said. Though he did not have finances for the purchase at the moment, Gopinath said he was confident many investors would be interested in backing him in the effort. “Even when I started Air Deccan, I did not have any money, still people put money in my airline,” he added. Gopinath, a pioneer of the low-cost carrier model in India, said the budget carrier model was sustainable, adding that occupancy rates had gone down due to repeated fare hikes. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 11:09 am Gopinath says keen to buy back budget carrierMUMBAI (Reuters) - Kingfisher Airlines Ltd Vice Chairman G.R. Gopinath said on Wednesday he is interested in buying back the budget airline of Kingfisher if Chairman Vijay Mallya exits the low-cost carrier model.Source: Reuters: Money News | 15 Oct 2008 | 11:08 am Tata Steel says Corus' pension funds not at riskTata Steel Wednesday said the pension fund surplus of its British subsidiary, Corus group, has risen in the last quarter ended Sep 30, compared to the previous quarter, and that these funds did not face any risk.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 11:03 am Himachal Pradesh sells 20 mn apple boxesThe apple season in Himachal Pradesh is almost over with more than 20 million boxes having been transported out of the state so far.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 11:00 am Indian equities slip after two days of gainsAfter two days of impressive gains, Indian equities ended lower Wednesday on cues from other bourses, even as investors' mood was dampened by the way the central bank's proposal to help mutual funds found few takers.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 11:00 am Corus Pension Fund significantly derisked: Tata SteelIn an official statement, Tata Steel has clarified that the Pension Funds of Corus were in aggregate surplus in excess of GBP 500 million (USD 1 billion) as on June 30, 2008. Tata Steel has said that the UK Pension Funds of Corus are significantly derisked with around 70% of the portfolio in debtrelated instruments.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 10:59 am India, Brazil, South Africa fin mins to meet on crisisNEW DELHI (Reuters) - The finance ministers and central bank heads of India, Brazil and South Africa will meet to discuss the current global financial turmoil, Prime Minister Manmohan Singh said on Wednesday.Source: Reuters: Money News | 15 Oct 2008 | 10:57 am Govt may provide Air India Rs2,500 cr to face crisisHyderabad: The government may provide flag carrier Air India up to Rs2,500 crore in the absence of funds from the market route, to help it stay in the skies right through the global financial crisis. “It is owned by the government and as like any owner of a company, government should be ready to infuse liquidity into it. Air India has a very small liquidity base of Rs 145 crore and with an estimated aircraft of Rs40,000 crore it is absolutely unacceptable. “There is need to infuse further liquidity to make Air India a viable entity,” Civil Aviation Minister Praful Patel said. The 77-year-old airline, which initiated a fleet renewal programme three years ago and merged with its sister airline Indian last year, has proposed infusion of Rs1,000-1,500 crore of equity capital. It is also looking for soft loans to the tune of Rs1,000 crore from the government that can be repaid over a period of time. The airline like its private sector competitors has been facing a drop in traffic, especially premium air travellers - a fallout of the global economic slowdown. Asked about plans for the Air India IPO, Patel said there is no discussion on public listing and that there was “no point in talking about that at this juncture.” Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 10:50 am Govt to bail out Air India with Rs 1000-cr package - IBNLive.com
Source: Google News India - Business | 15 Oct 2008 | 10:49 am Consumer response to climate change puts onus on brands: studyNew Delhi: Consumers are calling on brands to take responsibility for reducing the impact of climate change as governments fail to make progress on the critical issue, according to a global study launched by Havas Media. Based on interviews with more than 11,000 respondents in India, Brazil, China, France, Germany, Mexico, Spain, UK and US, the study unearthed both local and global characteristics that develop current theories on a number of widely-debated issues. The objective of the research was to understand the impact of ‘Climate Change’ on business seen through the eyes of consumers and provide guidance on how brands and companies can address this issue. It brings to light the chasm between attitudes of the richest countries and those in the developing world. Anita Nayyar, CEO, Havas Media India says, “The survey suggests that consumer awareness of the damage done by some companies and sectors is growing increasingly sophisticated, and those which fail to act responsibly can no longer expect to hide behind generally positive perceptions of the sector in which they operate.” When it comes to actually buying green, 80% would be willing to buy more if more were on offer. The report concludes that companies should not make the mistake of confusing loyalty with a lack of consumer choice Key Findings *Globally, findings revealed that 79% consumers would rather buy from companies doing their best to reduce their impact on environment; 89% are likely to buy more green goods in the next 12 months; and 35% are willing to pay premium for those goods * Brazil, China and India claim to be most alarmed by climate change, while respondents in US, UK and Germany demonstrate far lower levels of concern * Consumers in China, Brazil, Mexico and India are more willing than their North American, British and German counterparts to spend extra on environment-friendly products * 86% Indians would rather buy from companies that are trying to reduce their contribution to global warming. Another 50% of Indian respondents would be more likely to buy environmentally-friendly goods in the next 12 months, if they were at the same price and standard as their usual brands * 43% are willing to pay a little extra for these goods. Indians believe the oil and fuel sector is the most damaging of all economic sectors in terms of the environment, while banking is the least damaging * 57% agree their government is making significant effort to combat climate change – the second highest proportion, behind only China * 90% agree that climate change will affect them and their family and 88% believe they can contribute to solving the problem, making India one of the most positive countries in the report in terms of its willingness to change * 89% are of the view that tackling the issue of climate change means changing the way we live our lives, whereas 50% can be said to be eco-absorbed, those who are very focused on the issue of climate change and India has the third-highest proportion in the world after Brazil (58%) and Mexico (56%) but far ahead of countries such as Germany (15%) and the UK (17%) * Only 12% are eco-apathetic, compared to 34% in UK and US and 32% in Germany, marginalizing the issue of climate change, recognizing the concept but sharing none of the responsibility Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 10:49 am E&C order inflow 81%, margins stable: L&T’s Deosthalee - Economic Times
Source: Google News India - Business | 15 Oct 2008 | 10:42 am SpiceJet to offer 15 pct discount on advance bookingsNEW DELHI (Reuters) - Budget carrier SpiceJet on Wednesday said it will offer upto 15 percent discount on advance bookings and withdrew a so-called congestion charge.Source: Reuters: Money News | 15 Oct 2008 | 10:28 am Jet Airways cuts 800 jobs, to cut flightsMUMBAI (Reuters) - Jet Airways, India's top private airline, said on Wednesday it had retrenched 800 flight attendants and suspended its expansion programme, and will cut flights and lay off more staff due to a slowdown in demand.Source: Reuters: Money News | 15 Oct 2008 | 10:20 am Trade Union seeks grounding of Jet flights till it revokes sack orderPTI New Delhi: Terming the dismissal of 1,000 employees by Jet Airways as “illegal and atrocious”, CITU today sought Government’s intervention in the matter and said the all flights of the company should be grounded pending withdrawal of the order. In a statement, CITU said it was surprising that the company resorted to such an action without consulting the ministry or any other tri-partite machinery. “These dismissals are illegal and unwarranted...The CITU demands that the Labour Ministry to direct the company for immediate withdrawal of the these dismissal orders. “The CITU further demands that pending such withdrawal of dismissal orders, government issue orders for grounding all flights of Jet Airways,” the statement said. The CITU also said the decision was “atrocious and unheard” in the recent history of industrial relation in the country resorting to dismissal in a such a mass scale. The Jet Airways has last night laid off up to 1,000 employees to rationalise its operations. The entire force of unconfirmed staff is being laid off on a 30-day compensation package, a top Jet Airways had official said. Source: Home - Livemint.com | 15 Oct 2008 | 10:20 am Sat upholds Sebi rap on codeviolating Strides promotersA recent judgment by the Securities and Appellate Tribunal upheld Sebi\'s imposition of a Rs 25lakh fine on the promoters of Strides Arcolabs LtdSource: Moneycontrol Top Headlines | 15 Oct 2008 | 10:19 am EU leaders seek tighter hold on financial crisisBrussels: EU heads of state will try to step up their attack on the global financial crisis at a summit from Wednesday, as leaders of the continent’s largest economies acknowledged that tough times lay ahead. Buoyed by the positive reaction of markets emergency talks in Paris last Sunday, leaders from the 15 countries sharing the euro agreed to follow Brown’s lead and prop up the hardest-hit banks through cash injections and underwriting loans between financial players. Until the Paris talks, Europe had struggled to convincingly coordinate its response to the financial crisis, which only sapped confidence in the system all the more. “Europe is leading the global response. We must continue to do so,” European Commission chief Jose Manuel Barroso told journalists alongside Brown. “An urgent priority is to further deepen coordination at international level and specifically with the US,” said Barroso, who is due to hold weekend talks near Washington with US President George W. Bush and French President Nicolas Sarkozy. Brown said that it was time for a complete overhaul of global financial regulations and institutions, such as the International Monetary Fund, as the world’s economy was now far more interdependent than ever before. “It becomes obvious now that we are dealing with global financial markets... what we do not have is anything other than national or regional supervision.” Speaking before the release of official figures showing unemployment jumped to an eight-year high of 5.7% in the three months to August, Brown indicated that his government may have to refocus its employment programmes. “We will come forward with programmes that are necessary to make sure that there are jo that does not disappear because of the financial crisis.” Last year the European Union adopted the target of reducing greenhouse gas emissions by 20% in 2020 from 1990 levels. Included in that package was an engagement to bring renewable energy sources up to 20% of the total and to make 20% energy savings. On Thursday, leaders are due to endorse sweeping new guidelines to manage immigration with a greater focus on selecting migrants for their labour skills while cracking down on illegal immigrants. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 10:18 am BSE Sensex provisionally closes down 6 pctBANGALORE (Reuters) – The BSE Sensex provisionally fell 5.99 percent on Wednesday, led by Reliance Industries Ltd, as fears resurfaced about tight liquidity condition and looming global economic recession.Source: Reuters: Money News | 15 Oct 2008 | 10:07 am Fertiliser Ministry has asked for Rs65,000 cr subsidyPTI New Delhi: The fertiliser ministry has requested the finance ministry to provide it about Rs65,000 crore in supplementary grants for disbursal of subsidies to the manufacturing companies. “We have sought about Rs65,000 crore in supplementary budget as the next phase of fertiliser subsidies,” Chemicals and Fertiliser Minister Ram Vilas Paswan told reporters here today. After receiving Rs31.83 crore as dividend from National Fertilizers Ltd (NFL), Paswan said the fertiliser subsidies would be only in cash, and assured manufacturers that there would not be any problems for them. The Centre subsidises the cost of fertilisers as there is a huge gap between selling price and production cost. The minster said fertiliser subsidies may fall to around Rs1,00,000 crore this year from the earlier estimate of Rs1,20,000 crore because of fall in the global prices of urea and DI-Ammonium Phosphate (DAP). “Had there been no rupee depreciation, we could have saved more,” he added. The Centre had provided Rs31,000 crore in the budget 2008 -09 as fertiliser subsidy and later made available Rs22,000 crore as loan from banks. “Out of Rs22,000 crore, fertiliser companies have received about Rs15,000 crore and the remaining amount would be given by 30 November,” he said. Paswan added he would meet Petroleum Minister Murli Deora next week to sort out operationalisation problems as fertiliser units are yet to get gas on a priority basis as decided by the empowered Group of Ministers (eGoM). The eGoM on gas pricing, headed by External Affairs Minister Pranab Mukherjee has already decided that fertiliser plants would receive gas as first priority. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 10:01 am JetKF alliance not a marriage of convenience: Naresh GoyalJet Airways Chairman Naresh Goyal said that consolidation (in the aviation sector) is inevitable, reports CNBCTV18, adding that market share was not the answer to profitability. His companys alliance with Kingfisher Airlines is not marriage of convenience, he clarified.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 9:56 am Airtel in outsourcing pact with IBMPTI Bangalore: Telecom major Bharti Airtel today announced a strategic outsourcing agreement with IBM to further enhance its customer service experience for its top-end platinum customers through process and technology innovation. The six-year Q3 contract for outsourcing contact services to IBM’s Managed Business Process Services (MBPS) unit would involve augmentation of Airtel’s sales, customer service, and back office capabilities, an IBM release said. “IBM MBPS combines IBM’s deep industry and process expertise with innovative technologies and a talented employee force to offer client’s repeatable processes and assets that can improve process productivity and deliver cost savings and reduced risk”, the release said. IBM Daksh Business process Services, a wholly-owned subsidiary of IBM Corporation, would provide a suite of services covering both voice and back office in areas such as customer service, collections, customer retention and the like to Airtel Platinum customers from its centres. IBM Daksh expects to have over 700 employees in the first year focused on providing services in over 11 languages to elite Airtel customers across the country, it said. Source: Home - Livemint.com | 15 Oct 2008 | 9:53 am More NRI deposits for Indian PSU banksMost public sector unit banks with international branches are seeing a substantial increase in the number of new NRI deposits.Source: Moneycontrol Top Headlines | 15 Oct 2008 | 9:52 am Sensex tanks 723 pts in pre-close tradeNew Delhi:The Bombay Stock Exchange benchmark Sensex on Wednesday plummeted by over 723 points in pre-close trading on major sell-off by funds as well as retail investors, taking cues from melting global markets. The 30-share Sensex nosedived by 723.10 points, or 6.40%, to 10,760.30 at 3:15pm, while the wide-based Nifty was down by 194.10 points, or 5.25% at 3,324.55 as all the index-linked stocks traded lower. Selling pressure gathered momentum after the London Stock Exchange’s FTSE fell sharply by over 3% in opening trade and Hong Kong’s Hang Seng index sank by over 4%. The markets continued to take a beating in the afternoon, with the sensex losing 497.25 points at around 12:35pm to 10,986.15, and the top 500 scrips on the Bombay Stock Exchange shedding as much as 3.93%. As many as 1,849 stocks declined, compared with 469 advances, while 49 scrips remained unchanged. The capital goods, consumer durables and metals counters led the decline, shedding 8.33%, 6.41% and 6.10% respectively. Larsen and Toubro topped the list of losers, shedding as much as 10.81% to Rs896.40, followed by Zee telefilms, which lost 8.69% to Rs147.05. Others losers of the afternoon included BHEL (7.93%, Rs1377.00), Sterlite Industries (7.75%, Rs300.05) and Tata Steel (7.49%, Rs282.10). In comparison, GAIL topped the list of gainers, rising 1.59% to Rs259.55, followed by Sun Pharma (1.37%, Rs1,403.00) and Bharat Petroleum (1.08%, Rs352.20) Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 9:50 am India may levy import duty, cut export tax on steelReutere New Delhi: India may impose an import duty on steel and withdraw a 15% export tax to help domestic firms like Tata Steel Ltd and Steel Authority of India Ltd following a slump in prices, the steel minister said on Wednesday. Ram Vilas Paswan told reporters the government would consider the proposal on Friday. Global steel prices have fallen more than a fifth from this year’s peak in June and July, hurting firms such as South Korea’s POSCO, the world’s No. 4 steelmaker, which has given a grim business outlook due to slowing demand growth. “Tata and SAIL met me and said: ‘International prices are falling. So we have a problem.´ They suggested export duty should be scrapped and import duty should be imposed. We are meeting on 17 October to consider this,” Paswan said. India’s steel imports in April-September, the first half of the fiscal year, rose by half to about 3 million tonnes, according to media reports. Shares in Tata Steel were down 7.3% at Rs282.50 by 1:52 p.m. (0822 GMT) in a weak Mumbai market that was down 4.8%. The stock has fallen about 70% this year. State-run SAIL shares were trading down 1.3A% at Rs105.9. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 9:46 am Fourteen more items go off small-scale exclusive domainPTI New Delhi: Government today announced it has de-reserved 14 more items meant to be exclusively manufactured by the small scale units, in a move to enable them compete globally. With the latest tranche of de-reservation, only 21 items remain exclusive for the SSI units. The process of dereservation, which was accelerated since 2005, is nearing completion. “From 2005 onward, government has de-reserved 579 items,” a commerce ministry statement said here adding the decision has been taken to “enable Indian industry to compete with imports and to achieve economies of scale”. After removal of the quantitative restrictions in 2001, India opened imports of all but a few strategic goods, making the SSI reservation redundant. This resulted in a situation where an item could not be made by a large-scale firm, but the domestic SSI unit was made to compete against cheap imports from countries like China, which enjoy economies of scale. A manufacturing unit, with investment between Rs25 lakh and Rs5 crore in the plant and machinery, is termed as small- scale enterprise. The items removed from the list last week, include ground and processed spices (other than spice oil and Oleo resin spices), full PVC footwear chappals, sandals and shoes, polythylene films (with less than 0.1 mm thickness), metallic doors, windows and ventilators among others. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 9:32 am India's civil aviation offers $300 bn investment opportunityIndia's aviation sector offers investment opportunity of $200 billion to $300 billion by 2020, and it is confident of overcoming the 'temporary hurdles' to continue the growth, Civil Aviation Minister Praful Patel said here Wednesday.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 9:31 am Airtel in tie-up with InfosysBangalore: Bharti Airtel announced it has entered into an innovation and technology partnership with Infosys Technologies Limited to deliver superior customer experience to the customers of Airtel digital TV, its Direct-To-Home (DTH) TV service. As part of its Digital Convergence Platform, Infosys would provide a suite of products including devices, application servers and interactive applications that will focus on providing an enhanced digital lifestyle to Airtel digital TV customers, a joint statement said. Airtel’s digital TV technology in combination with Infosys’ digital Convergence Platform will bring digital lifestyle applications offering interactivity and personalisation into the living room, it said. “This will include interactive and non-intrusive applications like widgets that can be invoked by the user to view relevant and customised information”, the statement said. For the first time in the country, TV-viewers will now be able to access local city information through interactive applications such as iCity, enjoy hassle-free Internet-like experience on their televisions with iNet, and get live and personalised stock quotes, breaking news, horoscopes, cricket scores and shopping deals in the city without interrupting their TV-viewing experience, it was stated. With this offering, Airtel digital TV customers will also have select websites packaged suitably for TV viewing, in an application called tPortal. In addition, a host of other innovative applications are slated for release over a period of time, the statement said. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 9:18 am Tatas propose Rs500 cr aerospace hub in APPTI Hyderabad: The Tata Group, which pioneered air travel in the country, has proposed to set up a Rs500 crore defence and civil aerospace hub in Andhra Pradesh for manufacture of allied equipment, radar and satellite systems. Tata group Chairman Ratan Tata has written a letter to Chief Minister Y S Rajasekhara Reddy indicating that Tata Advance Systems was keen to invest in the hub in the proposed Special Economic Zone in Adibhatla village, on the outskirts of the state capital. “The AP government is making 50 acres of land available for the Tatas at the proposed SEZ that will come up near the hardware park,” Reddy announced at the inauguration of India Aviation-2008 at the Begumpet airport here today. Besides, the Lepakshi Aerospace Station and Academy will also come up at Chilamattur in Anantapur district. The hub by Tata Advance Systems will be the first-of- its-kind in the country. Tatas are credited with launching the first scheduled airlines (Tata Airlines) in 1932 that was nationalised as Air India in 1953. The Lepakshi Aerospace Station and Academy, on the other hand, will have largest integrated ecosystems for design, manufacture and maintenance of space vehicles and satellites, both civil and defence. The LASAA will also be a support station for global space tourism adventures. Source: LatestNews-Home - Livemint.com | 15 Oct 2008 | 9:17 am L&T Q2 net up 32% at Rs460 crPTI Mumbai: Engineering firm Larsen and Toubro today announced a profit after tax of Rs460.26 crore, a 32.25% growth over the corresponding period a year-ago. The company had a net profit of Rs348.02 crore for the second quarter of FY’08, L&T said in a filing to the Bombay Stock Exchange. The total income rose 40% to Rs7,842.26 crore for the quarter under review, from Rs5,614.51 in the same period last fiscal. For the six months ended on 30 September, L&T reported a net profit of Rs962.7 crore, a 32.87% growth over the same period a year-ago. It had a net profit of Rs724.87 crore in the corresponding period in FY’08. Further, net sales during the six month ending 30 September, increased 46% to Rs14,583.63 crore. Shares of the company were trading at Rs904.95, down 9.83% in the afternoon trade on the BSE. Source: Home - Livemint.com | 15 Oct 2008 | 8:51 am India's central bank extends scheme to fund mutual fundthe Reserve Bank of India (RBI) Tuesday said the auction of bonds to release Rs.200 billion ($4.18 billion) toward the needs of mutual fund industry would be extended till such time it was fully subscribed.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 8:31 am India's anti-monopoly body watching Jet, Kingfisher dealAction will be initiated against Kingfisher Airlines and Jet Airways under India's anti-trust laws if they hike fares in tandem after their recent strategic and operational alliance, a top official of a quasi-judicial watchdog said here Wednesday.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 8:30 am Bharti Airtel, Infosys tie up for digital TV serviceLeading integrated telecom services provider Bharti Airtel and IT bellwether Infosys Technologies Ltd Wednesday announced a strategic partnership to provide digital TV viewing on a DTH (direct to home) platform.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 8:02 am Central Coalfields earns Rs.1.8 bn from e-auctionsPublic sector firm Central Coalfield Ltd (CCL) has earned Rs.1.8 billion from e-auction in the first half of the current financial year, an official said.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 8:01 am Alliance needed to avoid bankruptcy: Jet, KingfisherThe code-sharing and operational alliance between Jet Airways and Kingfisher Airlines were needed to avoid bankruptcy and ensure profitability, said the chiefs of the two airlines Wednesday at the end of a chief executives' conclave here at the India Aviation 2008 air show.Source: IndiaeNews.com: Business News | 15 Oct 2008 | 8:00 am India’s domination of BPO sector continues, China catching upPTI Kolkata: India’s domination in the business process outsourcing (BPO) sector continues with six of its cities featuring among the top eight emerging global outsourcing cities. Bangalore, Chennai, Delhi (National Capital Region), Hyderabad, Mumbai and Pune are the six Indian cities among the eight global outsourcing cities, says a study by CyberMedia Global Services and Tholons, a global investment advisory firm. Dublin (Ireland) and Makati City (The Philippines) are the two other cities. India’s representation in the top 50 Emerging Global Outsourcing cities has grown to four, from last year’s three, with the addition of Jaipur to the list at number 31. The other Indian cities in the list include Kolkata at number six, Chandigarh at 12 and Coimbatore at 17, says the study. Cebu City (The Philippines), Shanghai and Beijing lead the list of top 50 Emerging Global Outsourcing cities. Though India’s domination of the BPO sector continues, the Chinese are fast catching up. Six of its cities figured in the list of top 50 Emerging Global Outsourcing cities compared to India’s four, the study points out. The six Chinese cities are - Shanghai, Beijing, Shenzhen, Dalian, Guangzhou and Chengu. The study says that with a supportive government and favourable outsourcing condition, China’s outsourcing industry is set to flourish further. Some new Chinese cities might make entry into the list next year or some of the top emerging cities might move to the top outsourcing cities’ list, it says. Cities like Guangzhou are known for engineering services, while application development and maintenance and business analytics are now being offered from Shenzhen and Shanghai respectively, it pointed out. Source: Tech News - Livemint.com | 15 Oct 2008 | 6:52 am India’s National Spot Exchange goes liveMumbai: India’s National Spot Exchange Ltd started live trading from Wednesday, its Chief Executive Anjani Sinha told Reuters. The exchange has started trading in gold, gold mini and silver with Ahmedabad, in the western Gujarat state, as the delivery centre. Trading in agri commodities began in cotton with Mumbai as the delivery centre, Sinha said. The physical commodities electronic exchange started operations after a delay of more than a year. National Spot Exchange Ltd, founded by a consortium including Financial Technologies India Ltd and National Agricultural Cooperative Marketing Federation of India (NAFED). Financial Technologies also promotes Multi Commodity Exchange of India, the country’s biggest commodity bourse by trade turnover by value and contracts traded. Source: Home - Livemint.com | 15 Oct 2008 | 6:38 am Indian gold futures up on higher foreign mkts, weak rupeeMumbai: India’s gold futures were up on the Multi Commodity Exchange of India Ltd (MCX) on Wednesday tracking higher foreign markets with a weaker rupee adding to the gains, analysts said. Gold for delivery in December gained Rs66 to Rs13,145 per 10 grams at around 10:38am, while the February contract rose Rs66 to Rs13,246. “Because of the rupee, the trend is sideways-to-up,” said an analyst at Karvy Comtrade Ltd. “In the evening there is a lot of data that could be supportive for gold.” The market would be noting the outcome of the Producer Price Index, retail sales and the Beige Book that has a summary of economic conditions in the US later in the day. Foreign gold, that guides the local market, was higher with investors buying the metal in the face of stock market declines and renewed fears of a recession. In the local market, the rupee weakened against the dollar on falls in the stock market. The rupee’s value against the dollar determines the landed cost of precious metals as most of it is imported and paid for in the US currency. The benchmark December gold is expected to trade within Rs13,300 per 10 grams and Rs13,600, said Somnath Dey, incharge of metals and energy research at Religare Commodities Ltd. December silver is expected to trade within Rs18,500 per kg and Rs19,000, Dey added. December silver traded at Rs18,755. Following are gold prices in rupees per 10 grams on the Multi Commodity Exchange of India Ltd. at 10:38 a.m. <0#MAU:>: Contract Current price Net change =============================================== December 13,145 66 February 13,246 66 For a technical look at international spot gold, double click www.reutersindia.net/gold.htm) (Reporting by Ruchira Singh; editing by Sunil Nair) REUTERS Source: Home - Livemint.com | 15 Oct 2008 | 6:15 am Rupee turns weak, down 38 paise vs dollar in early tradePTI Mumbai: In sync with local equity markets, the Indian rupee fell sharply by 38 paise to $48.46/47 against the greenback in early trade on heavy dollar demand from foreign banks. Foreign exchange dealers said foreign banks, this morning, heavily bought dollars in non-delivery forwards (NDF) blocking the rupee’s surge in the last two days. The domestic currency had hit the Rs47.00-level against dollar yesterday after government and the central bank took measures to infuse liquidity in the banking system. The Indian unit resumed weak at Rs48.38/40 a dollar from its previous close of Rs48.09/10 and later moved down to Rs48.46/47 in late morning deals as equity markets again turned weak after a two-day rally. Yesterday, the RBI had conducted a special fixed rate 14- day repo at nine per cent per annum against eligible securities for a notified amount of Rs20,000 crore to enabling banks to meet the liquidity requirements of mutual funds. However, banks utilised Rs3,500 crore of this facility. Source: Home - Livemint.com | 15 Oct 2008 | 6:11 am Poor response prompts RBI to extend loan facility for MFsPTI Mumbai: Lukewarm response from banks to the special short-term lending (repo) facility today prompted the Reserve Bank to extend the scheme till Rs20,000 crore is fully subscribed for on-lending to mutual funds. “The 14 days special facility will now be conducted everyday until further notice up to a cumulative amount Rs20,000 crore for the same purpose,” RBI said in a release. The facility introduced for a day generated limited response as only bids worth Rs3,500 crore from banks and primary dealers were received by the RBI yesterday. In view of the poor response, the RBI announced the decision to extend the validity period of the scheme without indicating any time frame. The special window was introduced with the objective of providing liquidity to the mutual fund industry facing redemption pressure on account of withdrawal from their debt instruments and money market instruments. Source: Home - Livemint.com | 15 Oct 2008 | 5:59 am Researchers expect hackers to prey on cell phonesAP San Francisco: Some of the most vicious Internet predators are hackers who infect thousands of PCs with special viruses and lash the machines together into “botnets” to pump out spam or attack other computers. Now security researchers say cell phones, and not just PCs, are the next likely conscripts into the automated armies. The mobile phone as zombie computer is one possibility envisioned by security researchers from Georgia Tech in a new report coming out Wednesday. The report identifies the growing power of cell phones to open a new avenue of attack for hackers. Of particular concern is that as cell phones get more computing power and better Internet connections, hackers can capitalize on vulnerabilities in mobile-phone operating systems or Web applications. Botnets, or networks of infected or robot PCs, are the weapons of choice when it comes to spam and so-called “denial of service attacks,” in which computer servers are overwhelmed with Internet traffic to shut them down. For example, botnets were used against Estonia’s government and financial Web sites in a devastating wave of attacks last year. Botnets are so troubling because they have massive computing power and a seemingly endless supply of newly infected PCs to replace old ones that are wiped clean or taken offline. Millions of PC have fallen victim. The owners typically never know. The Georgia Tech researchers say that if cell phones become absorbed in botnets, new types of moneymaking scams could be born. For example, infected phones could be programmed to call pay-per-minute telephone numbers or to buy ringtones from companies set up by the criminals. “The question is, can they do it effectively _ make a lot of money without much risk?” said botnet expert Joe Stewart, director of malware research with SecureWorks Inc. “And if they can, then they will do it.” The Georgia Tech researchers say a big appeal of cell phones for hackers is that the devices are generally always on, they’re sending and receiving more data, and they typically have poor security. Antivirus software would suck up massive amounts of battery life, which is a killer on a mobile device. “This is the perfect platform (for hackers),” said Patrick Traynor, an assistant professor of computer science at Georgia Tech and a contributor to its Emerging Cyber Threats Report. One big hurdle hackers will face is learning how the cellular networks work and adapting their attacks. Unlike the wide-open world of Internet providers, cell phone operators have tighter control over their networks, which means they could shut down the lines of communication between infected phones much easier. Traynor noted that researchers have very little hard evidence that hackers are already targeting cell phones. But successfully attacking cell phones requires that people do a lot of Internet browsing and downloading programs onto their phones, and that is just starting to happen now. “There are some challenges for the adversaries, but we’ve seen them overcome the challenges in their way before,” Traynor said. Source: Tech News - Livemint.com | 15 Oct 2008 | 5:32 am MySpace Karaoke puts amateur crooners on cameraAFP San Francisco: MySpace on Tuesday launched an overhauled karaoke channel that lets amateur crooners post online video of themselves in all their vocal glory. The MySpace Karaoke redesign includes improved recording, upload and website navigation capabilities. In the six months since its launch the channel has attracted more than four million visitors and amassed a half-million recordings “making it the largest karaoke venue in the world,” according to MySpace general manager Nimrod Lev. MySpace has arranged licensing deals with music publishers to spare users of its karaoke channel from hassles regarding song copyrights. Those licensing restrictions have resulted in MySpace Karaoke only being available in Canada and the United States. MySpace bills its online video recorder as innovative, custom-built technology that lets people record themselves singing by using computers equipped with microphones, Web-cameras and Internet connections. MySpace is promoting the redesigned channel with karaoke contests that call on people to submit their best renditions of songs by musicians Seal and Jesse McCartney. The artists will choose the winning entries. Source: Tech News - Livemint.com | 15 Oct 2008 | 5:17 am India’s Aravind Adiga wins Man Booker prize 2008London: Beating predictions by bookies and others, debutant Indian novelist 33-year-old Aravind Adiga’s book “The White Tiger” was today declared the winner of the prestigious Man Booker Prize for Fiction for 2008.  Aravind Adiga with a copy of his book, The White Tiger, for success in the big city. Alastair Grant / AP Adiga’s novel was described as a “compelling, angry and darkly humorous” novel about a man’s journey from Indian village life to entrepreneurial success. It was described by one reviewer as an “unadorned portrait” of India seen “from the bottom of the heap”. Adiga, who wanted to be a novelist since he was a boy, was born in Madras (now known as Chennai) and now lives in Mumbai. He becomes the fifth Indian author to win the prize, joining V S Naipaul, Salman Rushdie, Arundhati Roy and Kiran Desai who won the prize in 1971, 1981, 1997 and 2006 respectively. In addition, “The White Tiger” is the ninth winning novel to take its inspiration from India or Indian identity. His book, “The White Tiger”, has been published by Atlantic Books and has already won rave reviews. Michael Portillo, chairman of the judges, said: “In many ways it was the perfect novel. “The judges found the decision difficult because the shortlist contained such strong candidates. In the end, The White Tiger prevailed because the judges felt that it shocked and entertained in equal measure. Source: Home - Livemint.com | 15 Oct 2008 | 4:43 am Cervical cancer vaccine enters Indian marketNew Delhi: Merck Sharp and Dohme (MSD), a wholly owned subsidiary of pharma major Merck and Co. Inc.launched a vaccine to prevent cervical cancer, the most common form of the condition in India with more than 130,000 women diagnosed with it every year. The vaccine is the first of its kind and has been approved by the US Food and Drugs Authority. The vaccine Gardasil was launched in 2006 and is available in 108 countries. Regulatory approvals and immunogenity studies delayed its launched in India. Currently, trials are being done by the Indian Council of Medical Research and “could take up to three years, but once they are done, the vaccine will be made available by the government as well,” said Naveen A. Rao, managing director, MSD India. Gardasil is priced at Rs 2,800 a shot with three doses prescribed for efficacy. According to a World Health Organization study, the risk of the cancer in India is 2.4% compared with an average of 1.3% for the world. Source: Home - Livemint.com | 15 Oct 2008 | 4:21 am Virgin slashes STD and local call rates to half!Taking the competition from GSM players head on, Tata Teleservices`s Virgin Mobile on Tuesday slashed STD rates on pre-paid services by half to 50 paise per minute from Re 1 per minute.Source: Zee News : Business | 15 Oct 2008 | 12:12 am Crisil retains ratings on the debt, fixed deposits of ICICI!Domestic credit rating agency Crisil on Tuesday said ICICI Bank continues to carry top investment grade ratings for its debt instruments and fixed deposits - becoming the third major rating agency to endorse strong credit fundamental for the lender.Source: Zee News : Business | 15 Oct 2008 | 12:12 am RBI allows MFs to raise funds via pledge, buyback of CDs!The Reserve Bank on Tuesday allowed the mutual funds to raise funds against the Certificate of Deposits (CDs), a move that will help the MFs tide over liquidity problems.Source: Zee News : Business | 15 Oct 2008 | 12:12 am US plans $250 bn injection to shore up system: Reports!The United States is expected to inject USD 250 billion to shore up the banking system and take stakes in nine top financial institutions, media reports said on Tuesday.Source: Zee News : Business | 15 Oct 2008 | 12:12 am PM, FM, RBI, plan panel review liquidity options!In a clear message that government would not let its guard down even though markets responded favourably to measures to impart liquidity, Prime Minister Manmohan Singh on Tuesday reviewed the situation with the Finance Minister P Chidambaram and RBI Governor D Subbarao.Source: Zee News : Business | 15 Oct 2008 | 12:12 am Govt likely to relax ADR/GDR pricing norms!The government is considering to relax the pricing norms for American Depository Receipts (ADRs) and Global Depository Receipts (GDRs), a move that will encourage Indian firms to seek listing on overseas bourses.Source: Zee News : Business | 15 Oct 2008 | 12:12 am Sensex up 174 pts, closes at 11,483!Stock markets on Tuesday opened strongly with benchmark Sensex rising by over 500 points after another pep talk by Finance Minister P Chidambaram but came off day`s high level to close the day with a gain over 174 points amid a surge a Asian and European bourses.Source: Zee News : Business | 15 Oct 2008 | 12:12 am India`s growth brought about positive changes: Comm Secy!Enhancing employment opportunities in India through international trade is a development objective and is being addressed through appropriate trade policies and focused programmes, said G.K. Pillai, Commerce Secretary. Inaugurating an International Conference on `How are the poor affected by trade`, organised by the United Nations Conference on Trade and Development (UNCTAD) today, he stated that India`s surging export performance has, inter alias, created new employment benefiting also the youtSource: Zee News : Business | 15 Oct 2008 | 12:12 am Jet Airways lays off 600 cabin crew and executives!Saddled with mounting losses, private air career Jet Airways today laid off more than 600 cabin crew and customer care executives to `service` its expansion plan.Source: Zee News : Business | 15 Oct 2008 | 12:12 am FM hopes markets will show optimism like global bourses!Finance Minister P Chidambaram On Tuesday expressed hope that Indian capital markets will show the same "optimism" as was displayed by the US, European and East Asian markets.Source: Zee News : Business | 15 Oct 2008 | 12:12 am RBI moves to inject liquidity to MFs; banks not enthusedMumbai, Oct 14 The scheme announced by the Reserve Bank of India on Tuesday to provide liquidity to mutual funds, which are facing redemption pressure, turned out be a damp squib.Source: Business Line - Home Page | 15 Oct 2008 | 12:00 am Northeast monsoon winds fan into South China SeaThiruvananthapuram, Oct 14 The northeast monsoon current has established itself over the South China Sea and parts of the adjoining Indo-China landmass packing winds gusting to 20 to 35 knots (37 to 64 km/hr) on Tuesday according toSource: Business Line - Home Page | 15 Oct 2008 | 12:00 am ‘Domestic factors to pressure Indian banks’Mumbai, Oct. 14 The prevalent domestic factors are more responsible for the pressures on the Indian banking system rather than global factors, says rating agency Crisil.Source: Business Line - Home Page | 15 Oct 2008 | 12:00 am Tata Motors buys majority stake in Norwegian firmMumbai, Oct. 14 Tata Motors has picked up a majority stake in Norway-based Miljo Grenland/Innovasjon, which specialises in developing solutions for electric vehicles.Source: Business Line - Home Page | 15 Oct 2008 | 12:00 am Tata Communications (Rs 494.85): BuyWe recommend a buy in Tata Communications from a short-term horizon. It is apparent from the charts of Tata Communications that it has been on an intermediate-term uptrend from its 52-week low of Rs 332 recorded in early July. The stock’sSource: Business Line - Home Page | 15 Oct 2008 | 12:00 am Markets pare early gains on State polls announcementMumbai, Oct 14 The Sensex and the Nifty shed most of their early gains on Tuesday and closed with a moderate rise of 1.5 and 0.8 per centSource: Business Line - Home Page | 15 Oct 2008 | 12:00 am Day Trading GuideThe stock has formed a spinning top candlestick pattern indicating indecisiveness in the last trading session. Desist trading in this counter for the day.Source: Business Line - Home Page | 15 Oct 2008 | 12:00 am Liquidity situation is comfortable: SubbaraoNew Delhi, Oct. 14 The Reserve Bank of India Governor, Dr Duvvuri Subbarao, on Tuesday said that the liquidity situation was comfortable and that financial markets were under control following measures in the past few days to infuse liquiditySource: Business Line - Home Page | 15 Oct 2008 | 12:00 am Gartner sees cut in IT budgets in 2009Bangalore, Oct. 14 Research firm Gartner Inc said global economic problems could impact next year’s IT budgets while lowering growth forecast by more than half from its earlier estimates.Source: Business Line - Home Page | 15 Oct 2008 | 12:00 am The travails of 3G servicesIt was way back in 2004 that the Telecom Regulatory Authority of India (TRAI) gave its recommendations to the Government on the need to promote broadband services in the country and outlined how this could be done. A key recommendation wasSource: Business Line - Home Page | 15 Oct 2008 | 12:00 am Few takers for MF support planBanks submit four bids for Rs 3,500 crore in RBI's Rs 20,000 crore special repo auction.Source: Business Standard | Front Page Headlines | 14 Oct 2008 | 7:19 pm Jet Airways to lay off 800 staffersFinancially strapped Jet Airways has decided to lay off over 800 of its employees on Wednesday.Source: Business Standard | Front Page Headlines | 14 Oct 2008 | 7:03 pm NextGen, a GPS-driven tech that could save airlines time and fuelChicago: A World War II-era air traffic network that often forces planes to take longer, zigzagging routes is costing US airlines billions of dollars in wasted fuel while an upgrade to a satellite-based system has languished in the planning stages for more than a decade. The $35 billion (Rs1.67 trillion) plan would replace the current radar system with a kind of Global Positioning System (GPS) technology that has become commonplace in cars and cellphones. Supporters say it would triple air traffic capacity, reduce delays by at least half, improve safety and curb greenhouse gas emissions.  Clearer skies: A file photo of the Newark Liberty International Airport in the US. Experts say the new system can help triple air traffic capacity, reduce delays, improve safety and curb greenhouse gas emissions. Steve Hockstein / Bloomberg “The United States has been to the moon and back. I think the public deserves that same level of effort for our national airspace system,” Robert Sturgell, the acting administrator of the Federal Aviation Administration (FAA), said in a recent interview. The planned satellite-driven network, dubbed NextGen, would save fuel by ditching radar technology that is more than 50 years old and enables GPS-equipped planes to fly the shortest route between two points: a straight line. NextGen could save airlines at least 12.5 billion litres of fuel a year—or more than $10 billion annually by 2025, based on today’s fuel prices, according to FAA projections obtained by AP. Currently, jetliners move in single-file lines along narrow highways in the sky marked by radio beacons. Many of the routes gently zigzag from one beacon to the next, sometimes forcing cross-country flights to follow sweeping arcs and waste hundreds of litres of fuel. It’s “the equivalent of using an electric typewriter when others are using computers”, said David Castelveter, a spokesman for the Air Transportation Association. “It’s a huge, huge drag on productivity.” Some private and commercial aircraft are already equipped with GPS devices that pilots use to determine their position, but the NextGen system would dramatically expand use of the technology by creating a nationwide GPS network for air traffic. Building the network involves gradually putting together the new system while still relying on radar for day-to-day operations. Gerald Dillingham, director of civil aviation issues at the US Government Accountability Office, likened the process “to changing a tyre on a car that’s going 60 miles (97km) an hour”. Hank Krakowski, FAA’s head of the air traffic system, called it “one of the largest project management challenges the federal government has had since we put somebody on the moon”. Airports also have to make improvements to accommodate the expected increase in air traffic. US airlines have struggled in recent years, in part because of rising fuel prices. Ten airlines have shut down and others are facing bankruptcy. Their financial troubles mean less-frequent flights and fewer amenities for air travellers, who must pay more for tickets, luggage, drinks, even pillows. A report on NextGen released last month by the government accountability office said major problems remained, including a lack of detail about just how the system would work and a shortage of the kind of highly skilled managers needed to see the project through. Critics have said the Bush administration, while expressing support for a satellite-based system, never pushed hard enough for it. “The next president needs to make the NextGen initiative a national priority and ensure that it is given the resources, management attention and sense of urgency that it warrants,” said representative Bart Gordon, a Democrat from Tennessee and chairman of the House science and technology committee. Airlines are expected to contribute $15 billion towards the $35 billion project, and they must equip their fleets with GPS at a cost of more than $200,000 per plane. But most carriers—which are otherwise enthusiastic about NextGen—are reluctant to retrofit planes years, maybe decades, before the satellite network is fully operational. “It’s like you buying a new car and the dealer saying, ‘How would you like to buy this nifty GPS technology—but it won’t be available in your area for years,’” Air Transportation Association’s Castelveter said. The NextGen system could offer airlines a 10% savings in fuel costs per year. If the network were in place today, it would essentially pay for itself in just seven years. GPS is already used in many parts of the aviation world. Many European countries, China and even Mongolia have established some GPS networks or plan to do so soon. NextGen would also help airliners fly, land and take-off closer together, minimizing delays. Even though the technology would allow more planes into the sky, FAA and pilots agree that the technology would actually reduce the risk of accidents such as midair collisions and runway incursions. To FAA’s consternation, Congress has failed to pass a Bill giving the agency permission to dip into the nation’s aviation trust fund to spend nearly $6 billion on NextGen over the next five years. Robert Poole, an aviation expert with the free market-oriented Reason Foundation, said some legislators are reluctant to vote for a satellite system that would eliminate hundreds of jobs at radar stations in their districts. Meanwhile, the air traffic controllers’ union, which is often at odds with FAA brass over labour issues, accuses the agency of seeing the whiz-bang satellite technology as a cure-all for aviation problems. It says some of the millions of dollars earmarked for NextGen would be better spent maintaining the current system, citing an FAA computer glitch in August that delayed 650 flights at airports from Orlando to Chicago. Source: Tech News - Livemint.com | 14 Oct 2008 | 6:50 pm Mark To Market: is it Jekyll or is it Hyde?Mark-to-market (let’s call it M2M) accounting has come under attack from critics in the wake of the global financial crisis that started in the US. What was thought to be a reasonable way of accounting for financial assets has become the villain overnight. M2M accounting values financial assets on a balance sheet at their prevailing market value. In good times (Dr Jekyll for us), the practice is friendly to all because unrealized profits buoy everyone. In difficult times, such as now, the practice can turn into a Mr Hyde and wreak havoc. The criticism has been on broadly two tracks: First, when housing prices tumble, a company holding the related mortgages, wishing to mobilize capital, may be constrained to sell the security at a distress price. This is because the underlying collateral has turned worthless. As a consequence, under M2M, every corporate entity holding a similar investment is obliged to mark that investment to market using this rock-bottom price as the benchmark. This sets off a downward spiral of losses, whether or not those losses are real (never mind that nobody questioned the M2M profits when those profits weren’t real either). This is said to set off a chain reaction of panic among corporate entities obliged to book huge losses, creditors who do not wish to lend, or worse, call in their loans to such companies, investors who hasten to sell the stocks of such companies and the mortgage owners who rush to sell their properties before they lose further value, resulting in a downward spiral in mortgage-backed security prices. A second criticism of M2M accounting raises the issue of a company being rewarded for issuing risky debt paper! According to this view, imagine a company issuing a bond that, having turned extremely risky, is priced at deep discount to the par value in the asset side of the books of the investors, recognizing a suitable loss. In the issuer’s balance sheet on the other hand, under the M2M rule, the bond value appears on the liability side, but at the drastically reduced market price. In effect, this results in increasing the value of owners’ equity, which is nothing but the value of assets minus liabilities. The worse your paper gets, the more profit you show. Apparently big financial firms such as Lehman Brothers Holdings Inc., Citigroup Inc., Merrill Lynch and Co., JPMorgan Chase and Co., Morgan Stanley and Goldman Sachs Group Inc., between them, booked a profit of $12 billion (Rs57,240 crore) in their books on this count alone in 2007 (not that it helped Lehman or Merill in a big way). Of the two arguments against M2M accounting, the second one is simpler to fix. The corporate bond as referred to in the above case may be held for trading or sale by the investors, but it is certainly a security “held for maturity” by the issuer of the bond. If so, any reasonable accounting standard should stipulate that when a paper is held to maturity (especially on the liability side) the market value of the paper is irrelevant. Ideally, it would be wrong to blame the principle of M2M accounting in such a case, because such a paper should not have been marked to market in the first place. What may be blamed is the manner in which the related accounting standard is framed. Let us now revert to the first of the criticisms. Rather than attack M2M, the accounting community should take a leaf from the standard banking classification of financial assets, namely those available for sale, those available for trading and those held for maturity. This is a classification that even the rest of the industry will do well to follow. But more importantly, to protect against a cascading write-down of assets during times of distress, companies may be allowed the option of moving their assets from “available for sale” or “available for trading” category to “held for maturity” category as a one-time measure. As the securities held for maturity are not marked to market, this will provide an escape clause to the companies from having to recognize losses when they do not in fact wish to sell or trade in an asset. However, if a company proposes to sell or trade in the asset, it can really have no case against marking the security to market. Some arrangement along these lines is where the answer to the M2M conundrum lies. The author is a former professor of accounting and finance, IIM Ahmedabad, and a former member of the National Accounting Standards Board of ICAI. Respond to this column at feedback@livemint.com Source: World Business - Livemint.com | 14 Oct 2008 | 6:47 pm
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