|
|
|
|
Securities lending and borrowing scheme has a long way to go - Livemint
Source: Google News India - Business | 26 Oct 2008 | 5:11 pm The message RBI missed - Livemint
Source: Google News India - Business | 26 Oct 2008 | 5:08 pm What’s a systematic transfer plan?The insurance business in India isn’t just growing, but also becoming more sophisticated in terms of product offerings. To help readers keep ahead of developments in this business, Mint features a Q&A on insurance every Monday. Recently, while going through the key features of a Ulip (unit-linked insurance plan), I read about the “systematic transfer plan”. Can you explain this in detail? A systematic transfer plan is a feature in Ulips that provides the policyholder with an option to phase out his/her entry into the equity market at different times and at different levels. This has an effect of averaging out the risks associated with the equity market, reducing the overall risk to the policyholder’s portfolio. I have decided to take a term policy, but came to know that there is no cover for the first three years in these policies. Is this true? Can you please explain term insurance? I am glad to be able to tell you that this is incorrect. The life cover in term insurance is available from the day the policy comes into force. Term insurance is designed for those who are interested solely in death benefit. Term assurance offers pure protection without any investment element. A person can buy term insurance that covers him till he reaches a certain age, which is usually 60-65 years. Term assurance policies expire at the end of the term. If one dies at any time (even during the first three years) before the term ends, his beneficiaries will get the sum assured. If he is still alive at the end of the term, the policy expires, and there is no payment. Readers are welcome to write in with their queries to askmint@livemint.com. The questions will be answered by senior executives from leading insurance firms. This week’s expert is Bert Paterson, managing director and CEO, Aviva India. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:47 pm Digging for word roots Not all flowers have such pleasant names. If daisy gave me a pleasant surprise, orchid gave me a shock. The root of the word is Latin orchis and refers to a male body part not generally mentioned in mixed company. The study of word origins can be both entertaining and embarrassing. Coming across the word “senator” several times in the news of the day, I decided to trace its origin. It did not make pleasant reading. The root of the word can detract from the prestige we attach to the office. The word contains the Latin root sen, and means “old man”. “Senior” has the same root. A senate in Latin is a council of old men. One of the US presidential candidates is a senator in both the Latinate meaning and the modern meaning of the word. Besides senator, there are several election-related words that have interesting origins. “Candid” is from Latin candidum, meaning white, pure, shining. In ancient Rome, people who contested elections to high office were called candidates, from the white togas they wore in public. My study of word origins has led me to the conclusion that in our use of election-related terms, we are still in the Stone Age. The word “ballot” itself referred to a little ball made of stone or metal. Voters cast these balls in one of several boxes to favour a candidate of their choice. The dictionary traces it to 1549, when it was adopted from the Italian ballotta, “little ball”. “Poll” is a very interesting word: Its basic meaning (1290) was “human head”, especially the part on which hair grows. Soon, the meaning expanded to counting the heads of persons or animals, as in the expression, “20 head of cattle”. From the idea of head-counting arose the idea of counting the number of people recording their choice or casting their vote. Polling can mean eliciting or receiving a vote, recording a vote or getting someone to vote. The word has today developed a new meaning, which is perhaps its best-known meaning now. An opinion poll is a survey of the views of a representative sample to gauge the preferences of the public and predict the likely outcome of an election. People who conduct such studies are called pollsters. Around 1952, a Latinate name was suggested by David Butler. “The word was coined purely in jest”, said Butler, who began to call himself a “psephologist”. Robert McKenzie popularized the word among the British public. He also propagated the idea of “swing votes”. Psephology has the root psephos, pebbles or stones. In ancient Athens, votes were recorded by putting a pebble in a ballot box. The same root is found in the word “psephomancy”, the art of divining or predicting by drawing a number of stones from a heap and studying symbols marked on them. Indian astrology has something similar: A handful of cowrie shells is drawn from a heap and then divided into smaller piles. The astrologer then interprets the result. “Ostracize” is another stone-based word from Athenian democracy. Ostracon meant a tile or a fragment of pottery. Athenian democracy had a procedure by which a citizen who became too powerful or dangerous in some other way could be expelled from the city for 10 years. The “ballot” for this consisted of cheap pieces of pottery and voters would scratch the name of the citizen whom they wanted to be ostracized. The name at the top of the list would be exiled from Athens for 10 years. Psephologists use statistics to calculate the results. “Calculus” itself means stone, and renal calculus, for example, is the medical term for stone in the kidney. Since pebbles were used in ancient times to count, the word calculate came to refer to various arithmetic operations. V.R. Narayanaswami, a former professor of English, has written several books and articles on the usage of the language. He will look at the peculiarities of business and popular English usage in his fortnightly column. Also Read V.R. Narayanaswami’s earlier columns Comments can be sent to plainspeaking@livemint.com Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:47 pm IT in for slower growth over next few quartersBangalore: Indian information technology (IT) service firms will witness slower growth over the next few quarters according to experts and analysts because of continuing recession in the US, the largest market for their services.  Losing ground: The TCS campus in Noida. The firm delivered results below market expectations because of forex losses of Rs261 crore..Harikrishna Katragadda / Mint With the slowdown spreading to Europe—the other main market for Indian IT services firms—revenue and earnings are likely to be muted for the next two quarters at least, according to one analyst. According to the results of the five firms, the US accounted for 60% of their business in the quarter ended September and Europe, 27%. The July-September results of most firms except TCS were broadly in line with the street expectations, mainly aided by a weaker Indian currency during the quarter. But the slash in forecast in dollar earnings—the currency Indian firms bill most customers—by sector bellwether Infosys and smaller rival Satyam, and a flat third quarter guidance by Wipro reflect the uncertainty in business environment. TCS, India’s largest software services firm, actually delivered results below market expectations because of forex losses of Rs261 crore. “The downturn will continue to affect service providers until the bottom of the cycle is actually reached,” said Siddharth Pai, managing director of the India unit of technology sourcing advisory firm TPI Inc. “I expect that there will be weakness at least for another two-three quarters”. The uncertainty for Indian IT firms has increased due to the bankruptcy of financial institutions in the US and Europe. “No one knows what is happening. Customers can come out for renegotiations (on existing contracts), (and) the shortlisted firms (for new contracts) may be asked to submit new bids,” said Nimesh Mistry, equity analyst with Man Financials Ltd, a Mumbai brokerage. Banking, financial services and insurance companies account for between 26% and 44% of the revenue of the five biggest Indian IT firms. On 13 October, technology researcher Gartner Inc. said IT spending in 2009 would grow by just 2.3%, more than halving its earlier projection of 5.8%. India’s software lobby, National Association of Software and Services Companies, or Nasscom, has said that it may revise downwards, in December, its July growth estimates of 21-24% growth for the current fiscal. In its latest quarterly audit of September for global outsourcing contracts, TPI has said only 128 deals were signed for a total consideration of €11.5 billion (Rs73,255 crore) —the weakest quarter for total contract value of outsourcing deals in the past six years. “The issue is that we have thought the bottom of the cycle was near quite often in the past few months, only to realize it is not really in sight just yet! We really are in uncharted waters,” said Pai in an email. In April, vendors such as Infosys and Satyam had forecast growth in the current fiscal would be backended or would come in the third and fourth quarters, but both firms cut their dollar guidance this month for the year by as much as 5% due to mix of currency fluctuations and slowing demand environment. “It is worrying... The slow growth could be there in third quarter or the next fiscal. We can’t say till we have a clear picture on the IT budgets,” said Anurag Purohit, equity analyst with Religare Securities Ltd, a Mumbai brokerage. All the turbulence in the US has meant that major clients for IT services are yet to draw up budgets for the year ahead. Some clarity is expected by the end of December or the beginning of January as the budgetary cycle for the year ahead begins, say analysts and experts. At the least, that could mean a repeat of last quarter’s performance in the current one too. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:46 pm Securities lending and borrowing scheme has a long way to go Johnny: One of my friends wants to know how the securities lending and borrowing scheme works. Can you tell us about that, Jinny? Jinny: Sure, why not? Under the securities lending and borrowing scheme, an owner of securities can lend the same to a borrower through an approved intermediary that acts as a central counterparty. An approved intermediary has to be registered with the Indian stock market regulator—the Securities and Exchange Board of India, or Sebi.  At present, the securities can be borrowed for seven days, after which the borrower has to return securities of the same type and class. So, if you have borrowed the shares of company A, you have to return the shares of company A only. You can’t return the shares of company B in their place. The approved intermediaries provide an automated screen-based platform where the transactions of borrowing and lending take place by order-matching on price and time priority with the first leg settlement on T+1 day and reverse leg settlement on T+8 day. Borrowers and lenders can place their orders through clearing members of the stock exchanges, including banks and custodians that are registered as “participants” as per the terms of the scheme. “Participants” have to enter into separate agreement with each client as per the format specified by the stock exchanges. In case the borrower fails to return the securities, the approved intermediary shall be liable to make good the loss of the lender. At present, securities traded in the futures and options, or F&O, segment of the stock exchanges are eligible for lending and borrowing under the scheme. Johnny: What are the advantages of the new scheme for borrowers and lenders? Jinny: The main advantage of this scheme is that it nicely complements short-selling in the stock market. As you may be aware, short-sellers enter into sale transactions even without owning securities. Short-sellers believe that the prices of securities will fall in future so they can meet their settlement obligations by purchasing securities subsequently at a lower price. They temporarily use the facility of borrowing securities for meeting their settlement obligations and subsequently return the securities to lenders after purchasing these from the market. In this whole transaction, the lenders of securities get paid for lending securities which otherwise would have remained idle. Johnny: What happens to corporate benefits that accrue to the securities during the period of borrowing and lending? Jinny: As per the Sebi securities lending scheme, 1997, all corporate benefits such as dividends, rights, bonus, redemption benefits, interest or any other right or benefit accruing on the securities lent would remain with the lenders of the securities. So, for all practical purposes, the lender of the securities will continue to be the beneficial owner. But, you may ask, what happens to voting rights? Who exercises voting rights during the period of borrowing and lending? Well, the practice in many countries seems to be in favour of transfer of voting rights from the lender to the borrower. For instance, the UK’s Securities Borrowing and Lending Code of Guidance provides that the borrowers should make it clear to lenders that any voting rights will be transferred along with the securities and hence the lenders would not be able to exercise their voting rights until the securities are delivered again. By putting such a clause into contracts, borrowers can actually use security borrowing for temporarily acquiring voting rights which they can exercise at any crucial meeting of the company. The Sebi scheme, on the other hand, does not talk about voting rights. So, it can be presumed that voting rights remain with the lenders. But presumptions always leave room for dispute. The use of the borrowing facility purely to exercise voting rights has large implications on corporate governance. At present, stock exchange guidelines provide that borrowing and lending of securities undergoing corporate actions shall remain suspended. But that may not be enough. It would be better if we could make things clear by suitably incorporating changes in the whole scheme. Johnny: That’s true, Jinny. I think we have a long way to go before the securities lending and borrowing scheme starts roaring in the Indian stock market. What: The securities lending and borrowing scheme enables the owner of securities to lend these to a borrower through an approved intermediary. How: Borrowers and lenders can place their orders through clearing members of the stock exchanges, including banks and custodians registered as “participants”. When: Borrowing and lending remains suspended during corporate actions. Shailaja and Manoj K. Singh have important day jobs with an important bank. But Jinny and Johnny have plenty of time for your suggestions and ideas for their weekly chat. You can write to both of them at realsimple@livemint.com Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:46 pm NTPC can only be a minority partner in setting up plantsNew Delhi: State-run NTPC Ltd can only be a minority stakeholder in a proposed venture with Nuclear Power Corp. of India Ltd, or NPCIL, to build nuclear power plants on safety and strategic considerations, government officials said. Click here to watch video “NTPC will remain a minority partner. It is very clear that NPCIL will have to be in the driver’s seat due to fuel supply, safety and strategic considerations,” said Jairam Ramesh, minister of state for power and commerce. India’s Atomic Energy Commission, too, is of the view that NTPC can jointly set up nuclear power projects with NPCIL, where the latter will hold majority stake. Currently, only NPCIL, a public sector undertaking of the department of atomic energy, is mandated to set up such plants. NTPC’s chairman and managing director R.S Sharma declined to comment on the issue citing ongoing discussions, merely saying, “We will enter the (nuclear) sector.” Power secretary Anil Razdan, however, said, “NTPC will have to go as a minority partner for its nuclear joint venture. While NPCIL has huge experience in the nuclear sector, NTPC has vast experience in project management and generation.” The country’s largest power generation firm has been lobbying for a role bigger than that of an investor for its nuclear plans and aims to build two such projects of 2,000MW each. After the signing of the Indo-US nuclear deal, the atomic power sector is expected to be opened up to private and public sector firms. “As long as there is no exclusivity condition that prevents NTPC from independent development or other JVs, even being an investor will still be of some value to NTPC,” said Anish De, chief executive of Mercados Asia, an energy consulting firm. “However, given that private developers have been implicitly encouraged till now, a security threat perception from NTPC defies logic.” Private-sector firms such as Jindal Steel and Power Ltd, Tata Power Ltd, Vedanta Resources Plc. and Reliance Power Ltd have shown interest in building atomic power plants. Overseas nuclear power technology providers such as Alstom SA, Areva SA, Siemens AG and General Electric Co. are eyeing Indian orders estimated to be worth $14 billion (Rs70,000 crore). Out of India’s installed power generation capacity of at least 140,000MW, nuclear energy accounts for only 4,120MW. NPCIL plans to create additional generating capacity of 3,160MW by 2012. According to KPMG’s India Energy Outlook report, the department of atomic energy hopes to build 250,000MW nuclear capacity by 2050 to meet power requirements. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:46 pm Banks may need more fund injectionBanks have raised $250 billion (Rs12.5 trillion) of capital on their own this year already. Billions more from governments has been or is being injected too. But is it enough? Hopefully, yes—but maybe not. When considering new tier 1 capital ratios, financial institutions and their regulators tried to anticipate the reserves necessary to cushion against all sorts of horrible scenarios involving interest rates, inflation and economic growth. But it’s not clear those stress tests factored in a range of other late-breaking horrors. That could mean second helpings of capital will be in the offing.  Click here for breakingviews.com First, there’s the meltdown in Iceland. The country’s collapsed banking system owes $46 billion to lenders in 26 countries, it emerged on Thursday. German banks alone held $21 billion of that debt. Iceland’s central bank chief reckons creditors will be paid just 10 cents in the dollar. Next, there are emerging markets fast becoming submerging markets. Take eastern Europe, where currencies and growth are tumbling. Banks from Austria, France, Germany and Italy dominate the region, after they flooded in for the post-communist boom. As the news worsens, bank subsidiaries there are likely to need recapitalizing, putting further pressure on parent groups. All of Asia isn’t immune, either.  Lifeline? A file photo of people protesting the Icelandic government’s handling of the financial crisis in Reykjavik. The IMF has agreed to lend Iceland $2 billion to bail out its banking system. Finally, the default lines are being redrawn. Credit rating agencies keep expecting more and more companies will be unable to repay their debts. Standard & Poor’s now says there could be as many as 353 defaults by non-investment-grade, non-financial US borrowers from 2008-10. That would put the three-year cumulative default rate at 23%, the worst since 1981. There are likely to be savage defaults in Europe, too. This combination of calamitous events would easily tot up to at least another $100 billion of losses for banks. Those that raised capital early could need more still. For the banks still mulling or resisting their first helpings, they’d better get their skates on. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:45 pm Life insurers holding 20% of funds in cashNew Delhi: With sharp falls in the stock markets, Indian life insurance companies have become cautious, holding nearly 20% of around Rs8.67 trillion of funds under management in cash, managers said. “Before January we didn’t hold much in cash, but now since markets are highly unpredictable, we have become conservative,” said Jyoti Vaswani, fund manager of private insurer Aviva Life Insurance Co. India Ltd, a venture between consumer goods firm Dabur India Ltd and London-based insurer Aviva Plc. “We are holding around 20% in cash, much higher than before.” Among insurance firms, LIC invests the most in equities; it has invested Rs2.5 trillion in the markets “These are tough times,” said a senior official at Max New York Life Insurance Co. Ltd, a venture of US-based New York Life Insurance Co. and Max India Ltd. “We are cautious to invest in the markets as it is very difficult to predict which way the market is moving,” he said. “We are keeping around 20% in cash,” he said, asking not to be named as he is not authorized to speak to the media. Life insurance funds consist of assets under unit-linked insurance plans, or Ulips, and endowment plans. While most Ulip assets are invested in equities according to investor risk appetite, the insurance regulator’s norms in the country allow only about 20% of endowment fund assets to be invested in stocks. “We have slightly increased our cash levels to 12-15% from the earlier levels of 10%. But the investment pattern of the Ulips is largely a mandate of the policyholders,” said Sashi Krishnan, chief investment officer, Bajaj Allianz Life Insurance Co. Ltd, a venture of Germany’s Allianz SE and Bajaj Auto Ltd. Some life insurers, however, consider the current decline as a buying opportunity. “In the past couple of weeks we have invested around Rs2,000-2,500 crore in the market to pick up value stocks,” said a senior official of Life Insurance Corp. of India, or LIC. “We plan to invest around Rs40,000 crore by the end of this fiscal (March 2009),” he said on condition of anonymity because he is not authorized to discuss internal matters. Among insurance firms, LIC invests the most in equities, given that it accounts for more than three-quarters of total assets under management by insurers. LIC has so far invested nearly $50 billion (Rs2.5 trillion) in the markets. The state-run LIC, however, said on 17 October that it sold a 6.91% stake (Rs2.57 crore) in drug maker Ranbaxy Laboratories Ltd at Rs737 a share. This could also mean money invested in the past couple of weeks can be reallocated with no fresh money entering into the stock market. “We are investing to pick up value stocks with strong basics. From April to now we have invested higher than our last year’s investment during this period,” said U.S. Roy, managing director of SBI life Insurance Co. Ltd, a venture of State Bank of India and France’s BNP Paribas Assurance SA. Last year, the company invested around Rs1,000 crore between April and September. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:43 pm The Great Depression again? These are pointless, even dangerous comparisonsHow does today’s financial crisis compare with that of the 1930s and the beginning of the Great Depression? —Landon Romano, Johannesburg Without doubt, you can pick a statistic here and a data point there, lump them together and cook up a case that it’s 1929 all over again.  Again, we know that real pain lies ahead. But we also believe that when the pain eases—and it will—the global economy will be stronger and sounder than ever before. We just have to get there, which we will, provided we stop fixating on, well, the exact question posed in your letter. Not to criticize you for asking! You’re far from alone. And we’re glad to have the opportunity to counter some financial journalists and all-purpose pundits who, like weather forecasters during a hurricane, are becoming somewhat giddy as they forecast the biggest “storm” of their careers. Their excitement is understandable, but perhaps some perspective has been lost in the fray. Let’s start with all the comparisons to the conditions that surrounded the economy’s prolonged collapse some 80 years ago. Sure, current times hold similarities to the 1929-33 period, but they’re dwarfed by the differences. In 1930, for instance, the Smoot Hawley Act ushered in a decade of restrictive tariffs and international discord. Today’s crisis is marked by a high degree of free trade and global cooperation. In 1933, the National Industrial Recovery Act encouraged labour and industry cartels. The result was decreased domestic competitiveness—again, hardly the current situation, as US companies have never been in better fighting form. Finally, a second Great Depression is highly unlikely today because of the very institutions created to prevent one, the most prominent example being the Federal Deposit Insurance Corp., with its authority to insure deposits, which is critical to stabilizing the banking system. Not all doomsayers are raising the spectre of the Great Depression. Some assert we’re headed into a deep recession like the early 1980s, when the US had negative gross domestic product in five of eight quarters, with the worst quarter being down 7.8%. Inflation approached 15%, the prime rate was at 21.5%, and unemployment peaked at 11%. As noted, our economic indicators are sure to worsen, but such numbers are miles from where we stand today. Still other doomsayers predict we’re marching straight into French-like socialism. Au contraire. The US government has a long history of handling interventions with a fast-in, fast-out approach. In 1984, to take a recent example, it bought 80% of Continental Illinois Bank, held it for 10 years, then sold it to Bank of America Corp. In 1989, it created the Resolution Trust Co., which cleaned up the savings-and-loans crisis, then quickly closed up shop. The Troubled Asset Relief Program looks to be no exception to this line of attack, as its loan terms give banks operating flexibility and strongly incentivizes them to get free of the government’s investment within five years. Our bottom line: Managers should stop looking back to find out what the future holds. It’s a pointless exercise given the facts. Worse, it’s counterproductive, if not dangerous. To get through this crisis, as with every crisis, leaders need to talk about reasons for confidence. America is a country filled with energy and creativity; it’s a culture that exalts entrepreneurs, the source of every recovery. Its system of higher education is the envy of the world. The country is filled with thousands of strong companies with sustainable cash flows. And as daunting as the downturn is sure to become, it will also spawn vast opportunity, as people begin to heed Warren Buffett’s famous advice, “Be fearful when people are greedy, and greedy when people are fearful.” We’re not Pollyannas. It’s the human condition to claim your own difficulties are “the worst of times”. Consider, however, a different take. We’re experiencing a painful but necessary correction, which will eventually result in a healthier, deleveraged society with a renewed focus on productivity, intensified innovation and improved governance. The end is not here. A new beginning awaits. ©2008/BY NYT SYNDICATE Write to Jack & Suzy Jack and Suzy are eager to hear about your career dilemmas and challenges at work, and look forward to answering some of your questions in future columns. Jack and Suzy Welch are the authors of the international best-seller, Winning. Mint readers can email them questions at winning@livemint.com Please include your name, occupation and city. Only select questions will be answered. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:43 pm Increase reach of LIC schemes, panel suggestsNew Delhi: Concerned over low insurance cover among women, a parliamentary committee has asked the finance ministry to take immediate steps to increase the reach of Life Insurance Corp. of India (LIC) schemes among poor sections. The ministry should take “urgent” steps to promote such schemes in Union territories and states lagging behind in implementation of these, said the committee on empowerment of women. It also suggested that the ministry should devise a mechanism for timely disbursement of the allocated amount under the scheme. According to a report submitted by the committee to the Lok Sabha, there has been a decrease in coverage of women under the Janshree Bima Yojana, from 593,324 in 2004-05 to 478,050 in 2005-06. The panel said the scheme has not been designed in conformity with the need of the changing times. Further, the committee said the amount provided as scholarship under the Aanganwadi Karyakartri Bima Yojana, which is Rs300 per quarter per child, is “inadequate to meet the educational requirements of a child for three months”. Expressing displeasure over the reply given by the finance ministry, the committee said that “instead of taking any concrete step in this regard, ministry and LIC have brushed aside the issue by merely stating that the matter would be considered at an appropriate time”. Besides, the ministry has also not been able to disburse the amount allocated for the scheme during 2006-07, the committee said. The committee further said that the response to the Aanganwadi Karyakartri Bima Yojana has been low from Union territories, besides Delhi and Chandigarh. The committee suggested that the ministry should find out the reasons for low coverage of women and take steps to make the schemes more innovative. Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:43 pm Money MattersDo I need a demat account to buy mutual funds online? What is the process for this? —JAMIE If you buy mutual fund (MF) schemes from any MF’s website, you do not require a demat account. You will still get a physical certificate. However, if you buy from an online broker such as www.icicidirect.com or www.hdfcbank.com, you require a demat account. Once you open an account with them, you will automatically be required to open a demat account, too. You can then buy and sell shares as well as other securities, in addition to MFs. Contact your nearest bank branch and ask for an online trading three-in-one account. You will then have to open three accounts—a trading account, a bank account and a demat account.  I invested in Reliance Natural Resources Fund online (new fund offer period 1-30 January 2008). My account statement shows the name of an unknown agent and entry load of 2.25%. When I contacted the fund house, I was issued a new account statement showing direct investment, but the entry load was still there. The fund house said the NFO period had ended and so the entry load was charged. Is it right? What should I do? —PARAMVIR GILL The Securities and Exchange Board of India (Sebi) guidelines that exempted investors from paying entry loads on direct investments in MFs was applicable for all schemes launched after 4 January. The same date was also applicable for all the schemes existing then. However, the NFO period of your scheme—Reliance Natural Resources Fund—began on 1 January. Since the scheme was launched before the deadline of the Sebi mandate, it could charge entry load. However, the scheme became an “existing” one soon after its NFO closed (30 January). Therefore, investors who entered the scheme after 30 January were exempt from paying the entry load. Since you invested before this date you will have to pay the entry load of 2.25%. I have invested in Franklin Templeton’s High Growth Companies Fund, but its performance has not been good lately. What is your advice? Should I stay invested or switch to another fund of Franklin? Which fund should I switch to? —NIRAT SHETH Franklin India High Growth Companies Fund (FIHGCF) is an aggressive scheme that will invest in a blend of large- and mid-cap companies where the fund manager sees high growth potential. The scheme is barely a year old and its performance has not been too good. It lost 23.44% and 13.17% over the past one year and six months, respectively. Unfortunately, market conditions turned volatile almost six months after the fund was launched. This is one reason for the scheme’s poor performance. The story is not much brighter in other equity funds, although this applies to different degrees in each case. Another reason for FIHGCF’s poor show in 2008 is its asset allocation. Being an aggressive scheme, FIH has invested around 43% of its portfolio, on an average, in small and medium-sized companies in 2008. In volatile or falling markets, this segment gets hit more than larger and better established counterparts. As FIH hasn’t yet got a decent chance to perform, it’s unfair to advise redemption. A one-year time frame for investments is too short for equity funds. Besides, the story isn’t much brighter in other equity funds as the current dry run has impacted all equity funds. Stay invested for now. Write to us at moneymatters @livemint.com Source: LatestNews-Home - Livemint.com | 26 Oct 2008 | 4:42 pm Wall St Week Ahead: Ugly October can't end soon enoughNEW YORK6 (Reuters) - Whichever way this week plays out on Wall Street, the market is likely to close out an October that stock investors would rather forget.Source: Reuters: Money News | 26 Oct 2008 | 4:24 pm Porsche owns 74 pct of Volkswagen, aims to dominateFRANKFURT (Reuters) - Porsche SE plans to gain control of over 75 percent of Volkswagen in order to pass a domination and profit transfer agreement that would grant it full control of VW's cash flows, Porsche said on Sunday.Source: Reuters: Money News | 26 Oct 2008 | 4:20 pm Banks seek rate cuts to help infra - Business Standard
Source: Google News India - Business | 26 Oct 2008 | 4:06 pm Markets at a glance - Business Standard
Source: Google News India - Business | 26 Oct 2008 | 3:09 pm RBI wants lower deposit rates to aid loans - Hindustan Times
Source: Google News India - Business | 26 Oct 2008 | 3:05 pm Air India begins daily flight from Bangalore to DubaiState-run national carrier Air India (AI) Sunday began a daily flight to Dubai from here, via Panaji in Goa five days and Pune in Maharashtra two days a week, an airline official said.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 3:00 pm How to restore faith in a failed economic systemThe trouble with telling nervous customers you have solved their problem is that you first have to admit there is one.Source: Daily News & Analysis: Money News | 26 Oct 2008 | 2:52 pm India's 7.5% growth forecast healthy: JP MorganJP Morgan India has said if India managed a 7.5 per cent GDP growth this fiscal, it could be considered as healthySource: Daily News & Analysis: Money News | 26 Oct 2008 | 2:47 pm ICICI Bank, SBI Q2 results on MondayThe markets will keenly look forward on Monday to the second quarter report cards of the country's two largest lenders -- SBI and ICICI Bank.Source: Daily News & Analysis: Money News | 26 Oct 2008 | 2:44 pm Motorola launches GPS-based touchscreen phoneUS-based mobile handset maker Motorola has launched its touchscreen GPS-enabled phone offering navigation maps and landmarks of 30Source: Daily News & Analysis: Money News | 26 Oct 2008 | 2:40 pm Emirates to increase cargo capacity from IndiaDubai-based international air carrier Emirates is planning to take its cargo capacity from India to 2,647 tonnes by February 2009Source: Daily News & Analysis: Money News | 26 Oct 2008 | 2:39 pm India Inc's valuation slips below its revenue baseThe meltdown at the bourses has left corporate India not even worth its revenue baseSource: Daily News & Analysis: Money News | 26 Oct 2008 | 2:36 pm Bangladesh to cut fuel prices from Sunday midnightBangladesh will cut fuel prices by at least 12 percent, effective from Sunday midnight, in the wake of the fall in global oil prices.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 2:30 pm Vodafone wants Dot to defer 3G spectrum auctionEven as DoT is under pressure from finance ministry to complete the 3G auction process fast, UK-based mobile gaint VodafoneSource: Daily News & Analysis: Money News | 26 Oct 2008 | 2:26 pm Adlabs posts 49 percent revenue growthAdlabs Films Ltd, belonging to the Reliance Anil Dhirubhai Ambani Group (R-ADAG), logged an overall revenue increase of 49 percentSource: Daily News & Analysis: Money News | 26 Oct 2008 | 2:25 pm Fearing global recession, c.banks poised to actSINGAPORE/LONDON (Reuters) - Central banks are likely to launch new coordinated emergency action this week to calm the panic sweeping financial markets, which could be rocked further by data pointing to global recession.Source: Reuters: Money News | 26 Oct 2008 | 1:36 pm 'Release arrears of Gujarat's anganwadis workers'A Congress parliamentarian from Gujarat has asked the Narendra Modi government to release arrears of nearly 70,000 anganwadi employees before the festival of Diwali.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 1:31 pm Four northeast power projects to be ready by 2012Four mega power projects with a total generation capacity of 4,076 MW would be commissioned in the northeast by 2012, officials said Sunday.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 1:30 pm Cotton farmers asked not to sell crop in hasteThe central government's biggest achievement has been turning around the Indian textiles industry from sunset to sunrise sector, said Textiles Minister Shankersinh Vaghela here Sunday, and asked farmers not to offload their crop in a haste.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 1:30 pm Unitech Blames `Criminal' Speculators For 50% One-Day Decline - Bloomberg
Source: Google News India - Business | 26 Oct 2008 | 12:38 pm Probe clears IMF chief; says he made serious errorIMF's Executive Board has concluded its enquiry into allegations of improper conduct of its Managing Director and has said that though he made serious error of judgement.Source: Daily News & Analysis: Money News | 26 Oct 2008 | 12:22 pm Gold sales shoots up phenomenally in this festive season - Livemint
Source: Google News India - Business | 26 Oct 2008 | 12:09 pm Indian economy bound to experience pain, says PMAfter discussing the financial crisis with world leaders in Beijing, Prime Minister Manmohan Singh declared early Sunday that India's economy was bound to feel the pain 'sooner or later'.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 11:30 am Adlabs posts 49 percent revenue growthAdlabs Films Ltd, belonging to the Reliance Anil Dhirubhai Ambani Group (R-ADAG), logged an overall revenue increase of 49 percent, taking its income to Rs.2.17 billion, in the quarter ended Sep 30 this year, the company said.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 11:30 am Spread betting boom as Britons gamble on turbulent marketsLondon: The credit crunch has sparked a surge in spread betting in Britain, as people speculate tax-free on the financial markets rather than sink their capital into turbulent stocks. With no taxes to pay and no commission charges, spread betting has increased in popularity as nervous investors worry about expanding their portfolios of company shares. Rather than regular betting on a precise outcome, spread betting allows punters to gamble on a range of outcomes, with the accuracy of the wager determining how much is won - or lost. “We have seen a significant increase in betting numbers and trades in alignment with the volatility in the market,” Peter O’Donovan, head of financial spread betting at PaddyPowertrader.com, told AFP. “We have certainly been busy since July 2008. The turmoil in the market certainly seems to have stimulated our business. “Equities and indices are among the busiest sectors,” he said, adding that applications for spread betting accounts have almost doubled over the past 12 months. Financial spread betting sees punters betting on the rise or fall of currencies, stock markets, shares, futures and metals, without having to pass through stockbrokers and share purchasing paperwork. The closer the bet is to the result, the bigger the gain, but the further off the mark it is, the higher the loss. Punters, who must hold accounts with the bookmaker, could even lose more than their original stakes. However, limits are put in place to avoid extreme gains or catastrophic losses. “Spread betting carries a high level of risk and you may lose more than your initial investment,” said a spokesman for the spread betting information website CleanFinancial. He added: “It may not be suitable for all investors. People should speculate with money that they can afford to lose.” Financial spread betting “is a tax-free, commission-free alternative to trading shares and financial markets,” O’Donovan said. “You are essentially betting on the performance of a share, index or commodity. You don’t own the share itself, you merely use it as an underlying instrument for your betting.” The nine-percent betting tax was scrapped in 2001, but in contrast people buying shares still have to pay stamp duty upon purchase and tax on their dividend at either 10% or 32.5%. Bookmaker Ladbrokes takes bets on market changes on a five-minute, hourly or daily basis, on currencies, commodities and indices. “Turnover varies from day to day but on average the figure is approximately 75,000 pounds per day. The five-minute markets are the most popular,” a Ladbrokes spokesman told AFP. Professor Chris Brady and Doctor Richard Raymar, from the Cass Business School in London, said in a 2006 report that 400,000 spread betting accounts were open in Britain at the time. They predicted the figure would hit the million mark in 2011. CleanFinancial said spread bettors are typically men aged 35 to 55 who work in financial circles, often self-employed. Big banks ban some of their employees from spread betting, the spokesman for the site said. Irish bookmaker Paddy Power, one of the largest in Britain and no slouch on offering novelty bets, was taking bets on which bank would be next to fall, but suspended such betting in mid-September. At the time, the largest bet - 5,000 euros - was on Washington Mutual at odds of 4-9. The savings bank collapsed on 25 September. Its closure and receivership is the largest bank failure in US financial history. Source: Home - Livemint.com | 26 Oct 2008 | 10:37 am DoP in pact with Rel Money to sell gold coins on Diwali eve - Economic Times
Source: Google News India - Business | 26 Oct 2008 | 10:29 am Ambani brothers feud over gas sharing reaches SCNew Delhi: A petition has been moved in Supreme Court seeking vacation of stay granted by Bombay High Court, which restrained Mukesh Ambani-owned Reliance Industries from selling gas to any company other than Anil Ambani group and NTPC. The petition filed in public interest by one B A Aloor, a practising advocate from Pune, alleged that the feud between two brothers is affecting people at large who are being deprived of “the most-efficient and environment-friendly fossil fuel”. The matter is coming up for hearing on 10 November. While challenging the High Court order dismissing its intervention application, the petition said vacation of stay would help early gas production from Krishna-Godavari basin. Contesting the interim stay order, Aloor said the delay in using the gas from the RIL-controlled KG basin gas fields was against public interest, as the gas could be used as a cheaper alternate source of energy. According to the petition, the national resources entrusted to private companies cannot be allowed to be wasted due to family feud and it casts an obligation on the company entrusted with the exploration of petroleum resources to consider national interests while discharging its duties. “Natural gas found in the KG basin has not been produced to its optimum level due to family disputes between the Reliance group of companies... Some gas reserves could be lost permanently in the process,” the petition filed through advocate Rukhsana Chaudhury stated. “The finding of natural gas in Krishna Godavari Basin is a watershed in the history of petroleum exploration efforts and the gas starved customers had been waiting for production of gas,” it stated, adding the gas supply had not kept pace with the surging demand. If the huge deposits of natural gas in KG basin were fully utilised, the import from foreign countries of petrol, diesel and other products can be substantially reduced, the petition stated. The Bombay High Court is, at present, hearing the ongoing case dispute over implementation of a gas supply agreement between RIL and RNRL on day-to-day basis. Source: Home - Livemint.com | 26 Oct 2008 | 10:09 am Overseas firm to take Indian real estate investors abroadReal estate investors in India have reasons to be happy as very soon they can invest in properties abroad with the help of a consultant.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 10:01 am Motorola launches GPS-based touchscreen phoneNew Delhi: US-based mobile handset maker Motorola has launched its touchscreen GPS-enabled phone offering navigation maps and landmarks of 30 cities priced at Rs15,847 in this festive season. The phone has satellite based GPS which offers consumers lifetime free GPS navigation maps and landmarks of 30 cities, Motorola Mobile Devices India and South West AsiaLloyd Mathias said. It also allows voice-guided navigation across major national and state highways. “MOTOMING A 1600, is the first GPS-enabled mobile phone. The navigation service is free with no activation charges, independent of mobile networks and can be used even without inserting the SIM card,” Mathias said. The touchscreen phone offers 1 GB MicroSD card and an expandable memory capacity of up to 4 GB and a 3.2 megapixel camera. Powered by MapmyIndia, India mapscome preloaded on the memory card of the phone. Source: Tech News - Livemint.com | 26 Oct 2008 | 9:27 am Fed likely to cut rates again to help sentimentWashington: The Federal Reserve is widely expected to cut key interest rates further at its upcoming two-day meeting, hoping to offer a psychological boost to panic-stricken financial markets, analysts say. The US central bank, which led a coordinated global rate cut earlier this month that pushed its target rate down a half-point to 1.50%, is seen as trimming the rate another 25 to 50 basis points. The Federal Open Market Committee headed by chairman Ben Bernanke is expected to announce a decision around 1815 (GMT) on Wednesday at the close of a two-day meeting. Yet analysts say the move would be largely symbolic because the actual rate of overnight interbank loans is in fact well below the Fed target because of the extraordinary efforts to pump liquidity into a strained banking system. “The cut is already in the market,” said John Ryding, economist at RDQ Economics. Ryding said a fresh rate cut is virtually certain “and the question is whether it’s 25 or 50 basis points.” Still, Ryding said the Fed target rate is largely “irrelevant” during the current market turmoil, with the actual overnight rate since 16 October between 0.60 and 0.93% for these types of interbank loans. On Friday, the futures market was implying an 86% chance of a half-point cut in the funds rate to a historic low of 1.0% and a 14% chance of a cut of three-quarters of a point that would leave the rate at 0.75%. “The market is convinced the Fed will do something,” said Cary Leahey, senior economist at Decision Economics. “We lean toward 25 basis points but we wouldn’t be surprised to see 50. I think there would be resistance to lowering the rate below 1.0%.” Cutting below 1.0% could be seen as a sign of panic, according to some analysts, and also would remind markets of the low rates in 2003 that fueled the massive housing market bubble. Also, a low funds rate could pressure some investment firms’ money market funds, which might be unable to pay interest to investors after management expenses. Joseph LaVorgna, economist at Deutsche Bank, said he expected a half-point cut that “should embolden some investors to take risk” that would help ailing markets. Avery Shenfeld, senior economist at CIBC World Markets, said turbulent financial markets will be looking for something from the Fed to calm the intense volatility. Shenfeld said the market will likely get more downbeat economic news, and that under the circumstances, “We see the Fed as having no reason to go light on its rate cut.” “So while we favor a 50 basis point move as more likely than a 25 point trimming, markets may worry that the central bank is running out of ammo,” Shenfeld added. Leahey said the Fed will remind markets that it stands ready to take further actions if needed to stabilize conditions. With rate cuts largely ineffective, the central banks could buy longer-term Treasury bonds in an effort to “twist the yield curve” and bring down rates affecting mortgages, Leahey said. Fed members “feel that righting the economic and monetary ship is job number one,” Leahey noted. Source: Home - Livemint.com | 26 Oct 2008 | 8:57 am Ambani siblings overtake Mittal in wealth erosionThe focus is always on who is the richest among Ambani brothers and Lakshmi Mittal but Mukesh and Anil are ahead of the India-born steel tycoon in terms of lossesSource: Daily News & Analysis: Money News | 26 Oct 2008 | 8:41 am Industry lobby recommends interest rate cutLeading industry body Confederation of Indian Industry (CII) Sunday came up with a set of recommendations, including further cut in key interest rates, to help the economy tide over the current financial crisis.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 8:31 am Financial crisis hits global merger and acquisition dealsOutbound merger and acquisition (M and amp;A) deals have been hit by the global financial crisis, losing their valuation by 76 percent this year, according to an industry lobby study.Source: IndiaeNews.com: Business News | 26 Oct 2008 | 8:30 am Indian cos’ overseas M&As value nosedives: AssochamNew Delhi: India Inc has certainly been on a high when it comes to the number of M&A deals on foreign shores but the global financial crisis has led to a sharp decline of over 76% in the valuation of such transactions in April-August this fiscal. According to a new study by industry chamber Assocham, the slowdown has severely hit deal valuations in the ITeS, telecom, power and pharma sectors, where Indian companies recorded 72 outbound M&A deals worth $3.72 billion between April-August this fiscal. This marks an increase in terms of number of deals from 54 in the same period last year, but in terms of valuation it has dropped to nearly one-fifth from $15.54 billion between April-August 2007, Assocham said. Despite the global slowdown, which has adversely affected IT and ITeS sector the most, a total of 32 M&A activities happened between April-August 2008. Of this 5 were inbound, 18 outbound and 9 domestic. This was followed by pharmaceutical sector, in which 5 inbound, 11 outbound and 5 domestic M&A took place, Assocham President Sajjan Jindal said. In telecom, of the total 15 M&A activities, three are inbound, nine outbound and three domestic. In power sector, only two outbound and one domestic M&A happened during the period, the chamber said. The study added that the number of M&A activities in the past five months shows that the pharmaceutical industry is all set to take on the global markets. There were 21 M&A deals in the sector from April-August, valued at $5.25 billion, representing 38.69% share in total valuation of the M&A deals that occurred during the period. Source: Home - Livemint.com | 26 Oct 2008 | 8:15 am Top 10 firms lose Rs1.5 trillion, RIL worst hitMumbai: The bloodbath on the bourses has wiped off a whopping Rs1.50 trillion from market valuations of country’s of 10 most valued firms in the past week, with Reliance Industries suffering the worst blow. The meltdown at the bourse washed away a big chunk from the market valuation of corporate behemoth Reliance Industries even as others like IT major Infosys Technologies and diversified conglomerate ITC Ltd managed to swim against the tide. The combined market cap of the elite club saw an erosion of Rs1,50,730 crore in the past week, dropping to Rs8,94,000 crore from the previous week’s Rs10,44,000 crore. With the market going for a free-fall last week, the country’s most valued firm Reliance Industries lost Rs45,600 crore in its market value dipping below the crucial Rs2,00,000-crore mark. RIL, which announced its second quarter results last week, registered its profit up by 7.4% at Rs4,122 crore, while its revenue rose by 39.4% to Rs44,938 crore. Shares of RIL plummeted for three days in row last week to settle at Rs1,015.50 on BSE on Friday, wiping off as much as Rs29,038 crore or about 16% of its market value in a single day. However, Infosys defied negative market trend and managed to add Rs2,645 crore to its market cap of Rs71,491 crore at the end of Friday’s trading last week. ITC gained Rs245 crore to stand at Rs60,019 crore. Notwithstanding the fall in valuation, however, Mukesh Ambani-led firm stood at the numero-uno position with Rs1,59,818 crore of market cap on Friday, against Rs2,05,419 crore in the week-ago period. The Bombay Stock Exchange benchmark Sensex on Friday plunged 1,070 points to end at 8,701, the second biggest fall in this fiscal. The barometer Sensex, which was quoting at 9,975.35 points on 17 October, lost over 1,200 points last week. Besides, the elite club of top 10 firms, comprising four private sector entities and six public sector units, witnessed a shuffle in the rankings, with PSU firm NTPC regaining the third slot from telecom major Bharti Airtel. Also Infosys rose to the sixth position, displacing MMTC which slipped to the seventh slot. While ITC moved ahead of NMDC to the eighth rank. State-run ONGC witnessed a drop of Rs24,886 crore falling to Rs1,41,069 crore at the end of trade last week. Also Bharti Airtel lost over Rs27,000 crore to stand at Rs1,01,446 crore, while SBI lost Rs16,354 crore. Source: Home - Livemint.com | 26 Oct 2008 | 7:58 am China's economy sound, but challenges loom - ZhouBEIJING (Reuters) - China must prepare for the challenges sure to be brought about by the global financial crisis, though the economy is generally in good shape, central bank governor Zhou Xiaochuan said on Sunday.Source: Reuters: Money News | 26 Oct 2008 | 7:50 am Union Bank`s reverse mortgage plan has few takers - Zee News
Source: Google News India - Business | 26 Oct 2008 | 7:08 am Global crisis hits India where it hurts most: Dip in exportsPTI New Delhi: Global economic crisis has hit India where it hurts the most as over a dozen job-oriented export sectors slipped into disarray showing up to 70% negative growth last month over a year-ago period. Alarmed by sharp decline in export value in tea (-20%), handicrafts (-70%), carpets (-32%), oil meals (-50%), man-made yarn (-17%), cotton yarn (-19%) and marine products (-19%), the Commerce Ministry is likely to recommended lifting of export curbs on items like steel and agro products. At a high-level meeting, convened by Commerce Secretary G K Pillai on 24 October, it was pointed out that the government needs to “re-look” at all the export restrictions. “The global financial crisis is significantly impacting the Indian exports and the impact could be more in the coming days,” an official involved in stock-taking exercise told PTI. With several sectors putting up a dismal show, the overall export growth in September this fiscal plunged to a little over 10% from 26.9% in August. Exports for the April-August period had shown growth of 35.1%. The US and the 27-nation European Union bloc, two of the largest markets for Indian exports, are in the midst of the worst economic crisis since Great Depression of the 1930s. The volume of decline in the international trade is also reflected in the crash in the shipping rates. Rates for bulk cargo have dropped by nearly 50%. Ironically, dismal export performance in September - figures for which are yet to be officially released - has come about in the face of close to 25% depreciation in rupee value. A declining rupee results in better realisations for the exporters. Source: Home - Livemint.com | 26 Oct 2008 | 6:48 am Grasim to cut viscose staple fibre output - Reuters India
Source: Google News India - Business | 26 Oct 2008 | 6:30 am India’s 7.5% growth forecast healthy: JP MorganPTI Mumbai: JP Morgan India has said if India managed a 7.5% GDP growth this fiscal, it could be considered as healthy, especially when compared to the flat growth expected in several other economies. “When large parts of the globe are seeing negative or a flat growth, I am happy that my (India’s) growth is at 7.5%,” JP Morgan India CEO Kalpana Morparia told PTI. On Friday, the Reserve Bank forecast a 7.5-8% GDP growth for this financial year (FY’09). “These are extraordinary circumstances the world over. There will be a (growth) slowdown,” she said. India has been growing at 8% in the last three years. However, with the present global financial meltdown coupled with the world’s largest economy, the US, witnessing a recession, India is expected to miss the 8% target this fiscal. The country needs to target 9-10% growth over a period of time, she said. “The long-term structural story of India is so strong that medium-term returns are going to be fairly significant,” Morparia said. India, which has emerged as a low-cost hub for many developed nations, would make a strong impact in the manufacturing sector, she said. “The manufacturing sector in India will emerge in a big way because of its managerial talent,” she said, referring to many global auto companies looking at India as a manufacturing hub for their small cars. Source: Home - Livemint.com | 26 Oct 2008 | 6:25 am Grasim to cut viscose staple fibre outputMUMBAI (Reuters) - Grasim Industries Ltd, part of the Aditya Birla Group, said late on Saturday it would curtail its production of viscose staple fibre (VSF) by 30 percent.Source: Reuters: Money News | 26 Oct 2008 | 6:19 am KEC Intl eyeing orders worth Rs800 cr in Q3 FY 09PTI Mumbai: RPG group company KEC International, a leading player in the power transmission engineering, procurement and construction business is eyeing orders worth more than Rs800 crore in the next quarter and expects a major chunk of it to come from overseas market. “We expect orders worth more than Rs800 crore in the next quarter (third quarter of this fiscal). Of this, more than 60% would be from overseas markets,” KEC International Managing Director & CEO Ramesh Chandak told PTI here. The overseas orders would mainly emanate from its traditionally strong markets of Africa and the Middle-East, Chandak said. “We expect our overseas orders in the next quarter of this fiscal to be at over Rs500 crore,” he said. The company has in the past secured prestigious orders from South Africa and Namibia in Africa and from Oman, Saudi Arabia and the UAE in the Middle-East. “These are our traditional markets and we are well recognised here,” Chandak said. KEC is increasingly focusing on railway and village electrification and telecom. The company expects the remaining part of this fiscal to be brighter than the second quarter, mainly on account of increased execution of projects in the next quarters. “In the second quarter, we posted a lesser net profit of Rs17.80 crore against Rs 33.89 crore in the year-ago period. This was mainly on account of translation loss (foreign exchange) and rising input costs,” he said. Input costs have begun declining from this month onwards and this should help boost our performance, he said. Source: Home - Livemint.com | 26 Oct 2008 | 6:04 am Asia, Europe close ranks to ease financial crisisBEIJING/LONDON (Reuters) - Asian and European leaders closed ranks on Saturday to try to bolster confidence among investors who fear that a global credit crunch has ushered in a deep and damaging world recession.Source: Reuters: Money News | 26 Oct 2008 | 3:57 am Probe clears IMF chief Strauss-Kahn in affairWASHINGTON (Reuters) - The International Monetary Fund's board on Saturday cleared Managing Director Dominique Strauss-Kahn of harassment, favoritism and abuse of power following an inquiry into his affair with an IMF economist.Source: Reuters: Money News | 26 Oct 2008 | 3:55 am 8% growth will be achieved this year: FM!Finance Minister P Chidamabram on Saturday said the government will take care to see that the global recession did not have any direct impact on the Indian economy that will continue to grow at 8 per cent this fiscal.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Sun Pharma Q2 net up 2-fold at Rs 513 cr!Drug maker Sun Pharmaceutical on Saturday said its net profit grew over two-fold to Rs 512.77 crore for the second quarter ended September 30.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Jet Airways sees Rs 384.5 cr loss in Q2 !Naresh Goyal-led Jet Airways on Saturday said it suffered a net loss of Rs 384.5 crore in this fiscal`s second quarter ended September 30, as against a net profit of Rs 28.3 crore in the year-ago period.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Despite slump, Yahoo plans new operations !Yahoo Inc says it will invest at least USD 100 million in a new data center and a new service center in Nebraska, creating at least 100 jobs.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Mitsubishi Motors to cut production: Report!Mitsubishi Motors Corp will cut production at its factories in Japan by up to 100,000 units in five months from November due to slow sales, Kyodo news reported on Saturday.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Hit by slowdown, corporate houses cut down on Diwali gifts!The economic slowdown has dampened the festive mood this season, with even business houses slashing their budget for corporate gifting by almost 25 per cent.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Asia, Europe reach consensus on financial crisis !Asian and European leaders said on Saturday they have reached a broad consensus on ways to deal with the global financial meltdown and will present their views at a crisis summit next month in Washington.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Jet defers aircraft delivery but does not cancel any order!Naresh Goyal-owned private air carrier, Jet Airways, on Saturday said that it would defer delivery of aircraft by at least a year, but has not cancelled any aircraft order as yet.Source: Zee News : Business | 26 Oct 2008 | 12:02 am Weekly News Round-upSEBI has cautioned FIIs that overseas lending and borrowing of Indian securities could attract sterner measures. The regulator said it disapproved of this particular activity of FIIs, which caused selling pressure in the cash market in India. TheSource: Business Line - Home Page | 26 Oct 2008 | 12:00 am Jet Air posts Rs 384-cr loss in Q2Mumbai, Oct. 25 Hit by higher fuel costs and the lean season drop in passenger traffic, Jet Airways reported a net loss of Rs 384.5 crore for the second quarter ended September 30 against a net profit of Rs 28.3 crore in the year-agoSource: Business Line - Home Page | 26 Oct 2008 | 12:00 am TN plant is Nokia’s fastest growing handset-makerNew Delhi, Oct 25 Riding on a surge in mobile usage in the country, Nokia’s handset manufacturing unit in Tamil Nadu this week reached production volume of 200 million handsets.Source: Business Line - Home Page | 26 Oct 2008 | 12:00 am Grasim cuts viscose staple fibre productionMumbai, Oct. 25 The financial crisis has finally hit the manufacturing sector where it hurts. Grasim Industries, an Aditya Birla Group company, has decided to curtail production of viscose staple fibre by about 30 per cent of its total capacitySource: Business Line - Home Page | 26 Oct 2008 | 12:00 am Earnings picture not so bleakBL Research Bureau The slowdown in India Inc’s profit growth is now old news.Source: Business Line - Home Page | 26 Oct 2008 | 12:00 am Auto cos slam the brakes on expansionNew Delhi, Oct. 25 With India Inc in the grips of a slowdown, the auto sector is also feeling the pinch. Companies are both deferring their hiring plans and holdingtheir capacity expansionSource: Business Line - Home Page | 26 Oct 2008 | 12:00 am Buy a flat and get another flat, BMW, Merc freeWithin months of charging the moon, Indian real estate firms are now offering buy-back of properties, free cars and even free apartments to tide over the current slump which has seen sales halve fromSource: Business Standard | Front Page Headlines | 25 Oct 2008 | 7:24 pm Truck sales hit rough patch in OctoberAll is not well with the commercial vehicles market, which along with steel and cement is considered a barometer of industrial activity in the country.Source: Business Standard | Front Page Headlines | 25 Oct 2008 | 7:23 pm Import duty on steel likelyGovernment may also roll back steel export duty.Source: Business Standard | Front Page Headlines | 25 Oct 2008 | 7:22 pm Centre moves to calm India Inc's nervesA raft of policy measures will be taken by the Manmohan Singh government in the coming days to help the corporate sector which has started feeling the pangs of the global slowdown.Source: Business Standard | Front Page Headlines | 25 Oct 2008 | 7:19 pm Tata Communications Q2 net dips 63% at Rs32.64 crMumbai: Ratan Tata-led Tata Communications, which was formerly known as Videsh Sanchar Nigam Limited, Saturday said its net profit for the second quarter ended 30 September fell by 62.77% at Rs32.64 crore over the corresponding period a year ago. The company had a net profit of Rs87.69 crore for the September quarter last fiscal, Tata Communications Ltd said in a filing to the Bombay Stock Exchange. Total income rose to Rs1,028.08 crore for the quarter under review from Rs836.24 crore for the September quarter previous year. While, for the six months ended 30 September, 2008, the Tata Group firm posted a net profit of Rs130.97 crore, a 39.73%decline compared with Rs217.34 crore for the same period last year. Shares of the company fell by 15.69%on Friday and closed at Rs364.35 on the BSE. Source: Home - Livemint.com | 25 Oct 2008 | 5:28 pm Jet defers taking aircraft deliveryMumbai: Naresh Goyal-run private air carrier, Jet Airways, Saturday said it would defer taking delivery of aircraft by at least a year, but has not cancelled any aircraft order as yet. “We have deferred our expansion plan and are postponing (taking) our aircraft deliveries by at least a year. We will be phasing out four B-737 aircraft and not replacing them,” the company said in its outlook for the coming financial quarters. The airline, which posted its biggest loss in three years (Rs384.5 crore in Q2 FY’09), however, said on expiry of all future leases, it would take a call on replacements around the lease expiry date. Though oil prices have cooled down in the past few weeks, the company’s Q2 results were impacted by higher fuel prices, the airline said. Crude oil prices peaked at $147.27 per barrel on 11 July. The average rate of aviation turbine fuel (ATF) for second quarter of FY’09 was Rs 67.18 per litre, higher than rates in Q2 of fiscal 2008 by close to 69 per cent, and higher than rates in first quarter of FY’09 by 112%, it said. The quarter ended 30 September as historically the weakest quarter of the year in terms of demand, Jet said, adding that it expects “the impact of the recent reduction in crude oil prices to be passed on to the industry in the ensuing quarter”. The depreciation of rupee from around Rs43 against the US dollar in Q1 to close to Rs47 in end-Q2 has also affected the company’s performance as nearly one-third of its operating expenses are in dollars, but only 15% of the revenue is in the same currency, the airline said. Source: Home - Livemint.com | 25 Oct 2008 | 5:11 pm Slowdown affects recruitment in engineering collegesA survey by CLSA across 45 engineering colleges finds that there has been a 17.7% fall in job offers this year over the last year. The big four IT companies made 7,278 job offers last year as against 5,835 offers this year.Source: Moneycontrol Top Headlines | 25 Oct 2008 | 4:25 pm Tatas to invest in Hyderabad aerospace SEZAndhra Pradesh might have lost the race to win the Nano, but it is still getting some Tata investment. The State Government has unveiled plans for an aerospace and precision engineering SEZ in Hyderabad.Source: Moneycontrol Top Headlines | 25 Oct 2008 | 3:55 pm
|
