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US Stocks - Futures lower before data, GM shares fallNEW YORK (Reuters) - U.S. stock index futures fell on Friday, with the Dow headed for its worst month in more than two decades, as investors braced for economic data and news that the General Motors-Chrysler merger is on hold.Source: Reuters: Money News | 31 Oct 2008 | 12:03 pm BSE Sensex rises 8 pct but ends month down 24 pctBANGALORE (Reuters) – The BSE Sensex rose 8.2 percent on Friday to its highest close in more than a week as investors bet on a possible rate cut, but still posted its biggest monthly fall in at least since mid-1992 after fears of a sharp global economic slowdown triggered a flight from risky assets.Source: Reuters: Money News | 31 Oct 2008 | 11:57 am HPCL posts net loss of Rs 3218.92 crore for Q2 - Hindu
Source: Google News India - Business | 31 Oct 2008 | 11:54 am Tata Motors net dips 34.1 per cent, volumes hit - Hindu
Source: Google News India - Business | 31 Oct 2008 | 11:54 am Capex for 2nd half of FY09 Rs 5000 cr: Bharti Airtel - Moneycontrol.com
Source: Google News India - Business | 31 Oct 2008 | 11:53 am Mkts see strong pullback; Metal, Oil, Bank indices up 7-10% - Moneycontrol.com
Source: Google News India - Business | 31 Oct 2008 | 11:48 am Markets buoyant, Sensex up 744 pointsPTI Mumbai: Extending gains for the third day in a row, stock markets today staged an impressive come back rally with the benchmark Sensex closing the day higher by nearly 750 points on brisk buying by funds. Marketmen said slew of favourable factors boosted investor sentiment which was at its lowest ebb after sustained heavy selling in bourses across the world for about a month. The 30-share index settled the day higher by 743.55 points at 9,788.06, after opening strong and even posted a gain of over 825 points during intra-day. The wide-based National Stock Exchange index Nifty also rose by 188.55 points at 2885.60. Brokers said besides a fall in inflation to below 11%, anticipation of rate cut by the central bank revived invesotrs’s interest in buying as they feel that both lower lending and inflation rates bode well economic growth. Inflation has come down to 10.68% for mid-October. Besides, US central bank Federal Reserve and the Bank of Japan have massively cut rates, prompting many to believe that RBI will follow suit. Rating agency Standard & Poor’s reaffirming stable outlook for India also intensified buying support, they said. Analysts said the bellwether index still recovering from the 23% massive drop it has seen this month, the most on record, which saw the Sensex pluning below 8,000 level. IMG decision to almost double borrowing limits for emerging markets and waive demands for economic austerity measures also helped turn around the sentiments on bourses. The rally came after a day’s break, when the MSCI Asia Pacific Index added 9%, after the US Federal Reserve cut interest rate by 0.50 basic points and agreed to provide $30 billion each to central banks in Brazil, Mexico and South Korea. Source: Home - Livemint.com | 31 Oct 2008 | 11:46 am Kotak Mahindra Bank Q2 PAT dip 33% at Rs161 crMumbai: Kotak Mahindra Bank said that its consolidated profit after tax (PAT) declined by 33.33% at Rs160.97 crore for the second quarter ended 30September over the corresponding period a year ago. The bank had a PAT of Rs241.45 crore in the second quarter of FY’08, Kotak Mahindra Bank said in a filing to the Bombay Stock Exchange (BSE). Total income rose to Rs1,849.51 crore in the quarter under review, from Rs1,811.78 crore in the same period last fiscal. On a consolidated basis, the bank reported a net profit of Rs47.86 crore in the September quarter, a 36.50% dip over the corresponding year-ago period. The Kotak Mahindra Bank had a net profit of Rs75.38 crore in the same quarter last year. The bank’s standalone income rose to Rs806.77 crore in the second quarter, from Rs714.16 crore in the same period previous year. Shares of the bank were trading at Rs320.50, down 1.73% on the BSE. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 11:41 am HPCL posts net loss of Rs3,218.92 cr for Q2Mumbai: Stat-run Hindustan Petroleum Corporation Ltd reported a net loss of Rs3,218.92 crore for the second quarter ended 30 September. The oil marketing firm had a net profit of Rs853 crore in the September quarter last fiscal, HPCL said in a filing to the Bombay Stock Exchange (BSE). The net sales rose 46.33% to Rs35,462.22 crore for the quarter under review, from that of Rs24,234.44 crore in the corresponding period last fiscal. For the half year ended 30 September, the company reported a net loss of Rs4,107.04 crore. The firm had a net profit of Rs766.10 crore in the year-ago period. The company’s net sales rose to Rs70,211.54 crore during the first half of current fiscal from Rs46,116.14 crore in the year-ago period. Shares of HPCL closed at Rs190.85, down 0.21% on the BSE. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 11:28 am SAS launches flights between Copenhagen and DelhiNew Delhi: Foraying into the Indian aviation market, Scandinavian Airlines (SAS) launched flights between Copenhagen and Delhi, making the Indian capital its eleventh global destination. The new service would operate three times a week and have a flying time of seven and a half hours. “The flight has been started in response to a strong demand among the Scandinavian customers, especially several companies, which have established themselves in India,” SAS International CEO Lars Sandahl Sorensen said. Maintaining that the demand from India had also grown along with the expanding corporate links with Scandinavian firms in the recent past, he said that the new route was a direct response to satisfy their demands. He further added that the airline would deploy an Airbus A-340 with 245 seats in three-class configuration. “We are pleased to offer Indian travelers the unique Scandinavian way of flying,” General Manager and Director (India) Lennart Paulsson said. Scandinavian Airlines International has a fleet comprising 11 A-330s and A-340s, which currently serve 10 destinations — New York, Chicago, Washington, Seattle, Bangkok, Beijing, Dubai, Beijing, Copenhagen and Stockholm. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 11:21 am NTPC may exit Dabhol project if LNG terminal is sold-offPTI New Delhi: State-run power producer NTPC Ltd is likely to exit the beleaguered Dabhol power project in Maharashtra if the government hives-off the adjacent LNG import terminal and sells it to a third party. NTPC Board is learnt to have taken the decision after a Committee of Secretaries headed by Cabinet Secretary K M Chandrasekhar virtually decided to sell the 5 million tonnes a year LNG import facility to stem massive cost overrun. “NTPC wants the 2,150 MW gas-fired power plant and the LNG terminal to stay together and is against its hive-off,” a source familiar with the development said. Project revival cost of Rs8,700 crore at the time of takeover of Dabhol, now stands at Rs23,640 crore. The state-run company has won the right of first refusal on the facility when it had approved additional equity infusion of Rs500 crore last year. Now, if the government decides to ignore its claim and invites bids from private firms like Reliance Industries, Anil Ambani Group, BG Group of UK, Essar Oil and Adani, the company would exit the venture, the source said. NTPC and gas utility GAIL India hold 28.33% equity stake each in Ratnagiri Gas and Power Pvt Ltd, the company that now runs Dabhol power plant. While NTPC Chairman R S Sharma was not available for comments, GAIL Chairman and Managing Director U D Choubey said his company favoured an integrated Dabhol power plant. “We had invested in RGPPL on the premise that the power plant and LNG terminal would stay together. I am not aware of the decision to hive-off LNG terminal but if that happens, I will have to go to my Board to seek approval for staying invested in the changed project structure,” he said. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 11:20 am Eicher Motors hits upper circuit on buyback planNEW DELHI (Reuters) - Shares of Eicher Motors on Friday rose 20 percent, its upper circuit, after its board approved plans to buy back shares at four times its last closing price.Source: Reuters: Money News | 31 Oct 2008 | 11:17 am Bharti Airtel's net profit up 27% in Sep quarterBharti Airtel, India's major mobile operator, has posted a 27 per cent increase in consolidated net profit during the July-September quarter at Rs2,046 crore. It had reported a net profit of Rs1,614 crore in the corresponding quarter last year.Source: Daily News & Analysis: Money News | 31 Oct 2008 | 11:15 am Ranbaxy posts Q3 loss as forex hurtsNEW DELHI (Reuters) - Ranbaxy Laboratories, India's top drug maker by sales, on Friday reported standalone net loss of 3.53 billion rupees ($71.5 million) for the September quarter, on foreign exchange losses.Source: Reuters: Money News | 31 Oct 2008 | 11:14 am Reliance Capital Q2 net up 15% at Rs229 crPTI Mumbai: Anil Dhirubhai Ambani Group firm Reliance Capital today said its net profit grew by 15% to Rs229.4 crore and total operating income rose by 38% to Rs1,313 crore for the second quarter ended 30 September, compared with the year-ago period. The company had a net profit of Rs200.10 crore in the September quarter last fiscal, Reliance Capital said in a filing to the Bombay Stock Exchange. As on 30 September, Reliance Capital’s net worth stood at Rs7,068.20 crore, making it one among the top three Indian private sector financial services groups in terms of net worth, it added. The company’s total assets stood at Rs22,133 crore, while its earnings per share rose by 15% to Rs9.34 during the quarter. During the half year ended 30 September, Reliance Capital reported a net profit of Rs572.50 crore, a 9% growth over the year-ago period. The firm had a net profit of Rs525.30 crore in the corresponding period last fiscal. The total operating income rose by 34% to Rs2,856.30 crore in the first half of the current fiscal. The investment portfolio as on 30 September amounted to Rs7,287 crore at cost, it said. The company does not have exposure to money and forex derivative market, the filing added. Further, the group’s financial products distribution firm Reliance Money’s net profit for the September quarter stood at Rs19 crore, while its revenue rose by 128% at Rs93 crore. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 11:11 am BBC to produce next season of 'Jhalak Dikhhla Jaa'The third season of the dance reality TV show "Jhalak Dikhhla Jaa" will now be produced by its original format owner BBC.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 11:04 am Revenue, job loss stare Karnataka in faceKarnataka will celebrate its 53rd Formation Day Saturday amid fear of revenue loss to government in the wake of global financial meltdown and warning of job loss because of non-friendly investment policies.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 11:02 am Revenue, job loss stare Karnataka in faceKarnataka will celebrate its 53rd Formation Day Saturday amid fear of revenue loss to government in the wake of global financial meltdown and warning of job loss because of non-friendly investment policies.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 11:02 am Airtel revenue up 42 percent, touches Rs.90 bnTelecom major Bharti Airtel Friday said its consolidated revenue has grown 42 percent to Rs.90.2 billion (Rs.9,020 crore) in the quarter ended Sep 30.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 11:01 am S&P reaffirms stable outlook rating on India - Hindu
Source: Google News India - Business | 31 Oct 2008 | 10:57 am S&P reaffirms stable outlook rating on IndiaPTI New Delhi: Global rating agency Standard & Poor’s today reaffirmed investment grade ratings ‘BBB-´long -term and ‘A-3´ short-term on India, saying the country’s economic growth prospects and debt markets are strong. The outlook on the long-term rating remains stable, the rating agency said. The ‘BBB´ rating category means an entity has adequate capacity to meet its financial commitments in the long-term. However, negative means that a rating may be lowered, while A-3 rating means the entity has adequate capacity to meet financial obligations in the short-term. The ratings on India reflect the country’s strong economic growth prospects and its deep government debt market that helps accommodate its weak fiscal position, S&P said in a statement today. “Given the buoyant private and public investments with some progress in economic reforms, India’s business environment is likely to improve in the years ahead, notwithstanding the current dislocations in global credit markets,” said S&P’s credit analyst Takahira Ogawa. Monetary and fiscal reforms, coupled with strict fiscal financing regulations, have led to more robust financial and government securities markets, reinforcing fiscal discipline. “The ratings on India remain constrained by a weak fiscal profile, mainly the high government debt burden and deficit, which are still among the largest for rated sovereigns.” Commitment to fiscal consolidation across all levels of government has been one of the supporting factors for the sovereign credit rating in the past several years. “However, higher oil prices and populist measures for the coming general election have weakened the government’s efforts in fiscal consolidation,” he said. Source: Home - Livemint.com | 31 Oct 2008 | 10:50 am Nestle India Q3 net up 14% at Rs131.76 crMumbai: Food processing and dairy products major Nestle India said that its net profit for the third quarter ended 30 September grew 13.52% at Rs131.76 crore over the corresponding period a year ago. The firm had a net profit of Rs116.06 crore for the July-September quarter last fiscal, Nestle India Ltd said in a filing to the Bombay Stock Exchange (BSE). Total income rose to Rs1,115.79 crore for the quarter under review from Rs912.40 crore for the same quarter previous year. For the nine-month ended 30 September, Nestle India registered a net profit of Rs412.99 crore, a 29% growth over the corresponding period a year ago. The company had a net profit of Rs320.20 crore for the same period last fiscal. While, its net income rose to Rs3,234.14 crore for the nine months ended 30 September from Rs2,608.70 crore for the same period a year ago. Further, Nestle India announced the second interim dividend for this year at Rs14.80 per equity share. It has also approved the distribution of special dividend of Rs7.50 per equity shares under the scheme of arrangement between the company and the shareholders and creditors. The company took a decision in this regard during the meeting of board of directors, Nestle India said in a separate filing to the BSE. The company has fixed 17 November as the record date for the purpose second interim dividend and special dividend on the equity shares, it added. Shares of Nestle India closed at Rs1,450, up 1.99% on the BSE. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 10:49 am Growth in volumes seen compensating for fall in Bharti's Q2 ARPU - Economic Times
Source: Google News India - Business | 31 Oct 2008 | 10:48 am Rise in input costs, expenses eat into India Cements' net - Economic Times
Source: Google News India - Business | 31 Oct 2008 | 10:48 am Divided Bank of Japan trims rates as crisis bitesTOKYO (Reuters) - A divided Bank of Japan cut interest rates for the first time in seven years on Friday, under pressure to join the global response to the worst financial crisis in 80 years, and some analysts saw further cuts ahead.Source: Reuters: Money News | 31 Oct 2008 | 10:48 am Assocham withdraws job-loss report after Govt reprimand - Business Standard
Source: Google News India - Business | 31 Oct 2008 | 10:34 am Mahindra to launch new multi-use vehicle this yearAuto major Mahindra and Mahindra (M and amp;M) Friday said it would launch a multi-utility vehicle (MUV) within the next two months.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 10:33 am Syndicate Bank net up 15% at Rs261.91 crMumbai: Syndicate Bank said that its net profit grew by 15% to Rs261.91 crore for the quarter ended 30 September. The lender had a net profit of Rs227.58 crore for the quarter ended 30 September, 2007, Syndicate Bank said in a filing to the Bombay Stock Exchange (BSE). Total income rose to Rs2,527.02 crore for the July-September from Rs2,155 crore for the same quarter last fiscal. For the six months ended 30 September, Syndicate Bank registered a net profit of Rs349.80 crore, a 22% decline over the corresponding period a year ago. It had a net profit of Rs448.61 crore in the same period previous year. While, total income rose to Rs4,805.82 crore for the six months ended 30 September from Rs4,154.34 crore a year ago. Syndicate Bank was trading at Rs48.75, down 2.79% cent in the late afternoon trade on the BSE. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 10:33 am Govt pushing ahead on insurance FDI reformNEW DELHI (Reuters) - The Indian government is pushing ahead with delayed plans to increase the cap on foreign direct investment in insurance companies to 49 percent from 26 percent and other reforms, the finance minister said on Friday.Source: Reuters: Money News | 31 Oct 2008 | 10:32 am Indian Oil profit falls 285 percent to Rs.70 bnIndia's largest oil marketing company, the state-run Indian Oil Corp, has slipped into the red in the second quarter due to the depreciation of the rupee and falling petroleum product prices.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 10:31 am British, Indian works come together in Tiranga art showThe Union Jack met the Indian tricolour at Tiranga, an exhibition of Indian and British contemporary art at the Art Mall here, said to be the country's biggest art display house.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 10:30 am Demand forecast after seeing sentiments, credit state: M&M - Moneycontrol.com
Source: Google News India - Business | 31 Oct 2008 | 10:26 am Japan joins wave of global interest rate cutsAFP Tokyo: The Bank of Japan cut its super-low interest rates for the first time in seven years as central banks worldwide step up the fight against the worst financial crisis in decades. The Bank of Japan (BoJ) reduced its key lending rate by 20 basis points to 0.30% as part of its efforts to calm volatile markets and ward off a deep recession in Asia’s largest economy. The monetary policy board was evenly split on whether to lower interest rates, so the final decision was taken by governor Masaaki Shirakawa. “Adjustments in the world economy stemming from financial crises in the United States and Europe have further increased in severity,” the bank said in a statement. “Increased sluggishness in Japan’s economic activity will likely remain over the next several quarters with exports levelling off and the effects of earlier increases in energy and materials prices persisting,” it added. The BoJ also decided to start paying interest on commercial bank reserves held on account as part of efforts to ease pressure in the money market. It was the first interest rate cut by the Japanese central bank since March 2001, when it introduced an unprecedented policy of almost free credit to try to pull the economy out of the deflationary doldrums. The Japanese economy shrank in the second quarter of this year and there are increasing fears that it is once again in recession, which is usually defined as two straight quarters of economic contraction. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 10:04 am See 10-20% dip in H1 FY09 margins: Nalco - Moneycontrol.com
Source: Google News India - Business | 31 Oct 2008 | 10:00 am Reliance Comm Q2 net up 17 pct, beats forecastNEW DELHI (Reuters) - Reliance Communications, India's No. 2 mobile operator, on Friday reported a 17 percent rise in quarterly profit, beating expectations, on higher subscribers in the world's fastest-growing wireless market.Source: Reuters: Money News | 31 Oct 2008 | 9:53 am Indian stocks surge, bonds look for rate cutMUMBAI (Reuters) – Indian shares soared and bond yields fell as a rise in overnight lending rates to 21 percent on Friday stoked expectations the Reserve Bank of India (RBI) would lower interest rates or take liquidity-boosting steps to ease the strain.Source: Reuters: Money News | 31 Oct 2008 | 9:52 am Cabinet okays UCO Bank capital revampReuters New Delhi: The Indian cabinet has approved restructuring the capital base of state-run UCO Bank, the finance minister said on Friday, as the government tries to improve valuations before the lender taps the capital market. The government will convert Rs2.5 billion of UCO’s equity into perpetual non-cumulative preference shares, Palaniappan Chidambaram told reporters. Last week, the government sought parliament’s approval for equity restructuring of two state-run banks - UCO as well as Punjab & Sind Bank - as part of the Rs1.06 trillion extra spending proposal. Chidambaram said UCO Bank has an equity capital of Rs7.99 billion, highest among all the listed state banks, which was suppressing the bank’s earning per share (EPS) and making it difficult for the bank to service the high proportion of equity. “Reduction in pure capital will improve the EPS and other financial (indicators) so that the bank has more attractive capital structure,” the minister said. “If and when it approaches the capital market it can have an attractive capital structure and it can raise Tier-I capital.” Chidambaram however did not give a timeframe for the bank’s follow-on public offer. UCO Bank shares were up 5.87% at Rs26.15 at 11.00 a.m. local time in a firm Mumbai market. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 9:49 am Tata Motors Q2 net falls 34 pct, beats forecastMUMBAI (Reuters) - Tata Motors Ltd, India's top vehicle maker, reported a lower-than-expected 34 percent fall in quarterly profit on Friday, as higher interest rates dented demand for its trucks and buses and costlier raw materials hit margins.Source: Reuters: Money News | 31 Oct 2008 | 9:44 am Reliance Comm Q2 net up 17%, beats forecastNew Delhi: Reliance Communications reported a 17% rise in quarterly profit, beating expectations, on higher subscribers in the world’s fastest-growing wireless market. The Mumbai-based company said net profit rose to Rs15.31 billion ($310 million) for its fiscal second quarter ended September, from Rs13.05 billion reported in the year-ago quarter. Revenue rose to Rs55.35 billion from Rs45.53 billion. Analysts polled by Reuters had expected net profit of Rs14.04 billion on revenue of Rs55.94 billion. Reliance added 5.1 million mobile users during the quarter to take its total to more than 56 million users at the end of September, up 55% a year earlier. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 9:38 am IOC Q2 net loss at Rs7,047 crPTI New Delhi: Indian Oil Corp, the nation’s biggest oil firm, today reported a net loss of Rs7,047.13 crore for the second quarter ended 30 September, 2008, mainly on account of huge revenue loss on sale of petrol, diesel, LPG and kerosene. IOC posted a net loss of Rs7,047.13 crore in July-September quarter as against a net profit of Rs3,817.75 crore in the same period previous year, the company said in a statement here. The losses were despite the company receiving Rs14,473.54 crore by way of discounts on purchase of crude oil and produced from companies like Oil and Natural Gas Corp (ONGC) and Oil India Ltd and Rs25,082.38 crore by way of oil bonds from the government. Government compensates refiners IOC, Bharat Petroleum and Hindustan Petroleum for half of their revenue loss on sale of petrol, diesel, domestic LPG and kerosene below the production cost by way of oil bonds. Another one-third of the losses are met by companies like ONGC and OIL. Despite these, BPCL yesterday posted a net loss of Rs2,625.17 crore in second quarter on top of Rs1,066.70 crore in April-June. HPCL ended Q1 with a loss of Rs888.12 crore. “Consequent to non-revision of retail selling prices in line with international prices, the company has suffered net under-realisation (net revenue loss after taking bonds and upstream assistance into account) of Rs12,271.03 crore during April-September,” IOC said. It had suffered Rs3,507.74 crore net under-realisation in the same period last year. IOC said net sales or income from operations grew by 50% to Rs74,322.01 crore in July-September quarter on increased fuel sales. Source: Home - Livemint.com | 31 Oct 2008 | 8:55 am Videocon looking at repositioning brandsWith its consolidation phase getting over, durables major Videocon is looking at repositioning its brands by focusing more on individual brands rather than adopting a multibrand strategy.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 8:54 am HCL Infosystems bags order from Delhi PoliceIT company HCL Infosystems announced on Thursday that it has bagged a multiyear contract from Delhi Police to provide solutions and technologies that would enable the police force to access automated information.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 8:51 am Hindujas to set up 4th foundry with Rs 150 cr outlayHinduja Foundries Ltd, on Thursday, laid the foundation stone for their fourth foundry unit in the country slated to come up at Toopran about 40 km from here with an outlay of Rs 150 crore.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 8:50 am Mall rentals drop 1520% due to mkt crashMall rentals have become cheaper especially for anchor tenants. The drop is of course market specific. In certain markets, experts say, rentals have corrected by 1520% in the past three months.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 8:50 am Railway cash registers jingle as airlines bleedThe aviation industry is bleeding, but the railways have found something to cheer about. Many airline passengers, including executives, are now migrating to trains as they try to keep budgets on track.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 8:40 am Indian Oil posts second quarter loss of Rs.70.4 bnIndia's largest state-run oil marketing company, Indian Oil Corp, has slipped into the red in the second quarter, posting a loss of over Rs.70.4 billion compared to Rs.38.17 billion the corresponding period last year.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 8:30 am Govt approves Horizontal Aviation Agreement with EUPTI New Delhi: Government today said it has approved an agreement with the European Union to bring all 26 bilateral air services agreements with member nations in conformity with legal requirement. “The new arrangement will bring all the existing bilateral air services agreements between EU member states and India in line with the European Commission law at one go, thereby obviating any threat of legal challenge,” Finance Minister P Chidambaram told reporters here today. The Union Cabinet gave an ex-post facto approval last night to the Horizontal Aviation Agreement, signed in Marseilles on 28 September during Prime Minister Manmohan Singh visit to France at the India-EU Summit, he said. The landmark pact on civil aviation would work like an ‘open skies´ agreement, encouraging more airlines to offer services between the continents. Nearly 5.7 million passengers travelled between India and the EU in 2007, with India ranking 11th in terms of passenger traffic between the EU and non-EU countries. Over the past three years, passenger traffic on this sector has grown by 75%. The liberal aviation deal ends nearly six years of legal uncertainty, which began when the European Court in November 2002 decided that bilateral deals on civil aviation services between EU member states and third countries discriminated against airlines from other EU states. Source: Home - Livemint.com | 31 Oct 2008 | 8:13 am Gail, IOC in pact to set up Rs10,000 cr petrochemical plantPTI New Delhi: After teaming-up with Reliance Industries, state-run gas utility GAIL India today signed an agreement with refiner Indian Oil Corp to explore possibility of setting up a Rs10,000-crore petrochemical plant at Barauni in Bihar. The proposed chemical plant will use 2,50,000 tons of naphtha produced by IOC’s Barauni refinery and the natural gas that GAIL plans to bring from eastern offshore and imported LNG through the planned Jagdishpur-Haldia pipeline. “We (GAIL and IOC) have today signed a memorandum of understanding (MoU) for exploring the possibility of setting up of cracker complex including downstream derivatives at Barauni,” GAIL Chairman and Managing Director U D Choubey told reporters after inking the agreement here. The two firms by the fiscal year would prepare a techno- economic feasibility study for the unit that would take up to five years for construction. “Naphtha prices in India and world-over are on a downturn. It is selling below fuel oil (price) as demand is not there. We are forced to export naphtha and the proposed unit will enable us to extract value from the fuel,” IOC Chairman Sarthak Behuria said. Project structure and equity participation has not yet been decided. “It could be a 50:50 joint venture between GAIL and IOC... it may also be a public-private partnership,” Choubey said indicating that the alliance had room to induct a strategic partner. A 130-km spur line from Gaya to Barauni would be laid to transport gas to Barauni fertiliser plant, IOC’s refinery and the proposed petrochemical unit. GAIL’s Jagdishpur-Haldia pipeline would transport gas found in eastern offshore. Source: Home - Livemint.com | 31 Oct 2008 | 7:56 am Airtel revenue up 42 percent to Rs.90 bnTelecom major Bharti Airtel Ltd Friday said its consolidated revenue grew 42 percent to Rs.90.2 billion (Rs.9,020 crore) for the quarter ended Sep 30, 2008.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 7:30 am Indian equities surge, bounce back from bear excessesIndian equities opened strong Friday and two hours into trading were showing signs of a sharp but expected bounce back following the bear market excesses of the last few weeks, analysts said.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 7:30 am Computer makers recall 100,000 Sony batteriesAFP Tokyo: Computer manufacturers are recalling 100,000 laptop batteries made by Sony Corp after 40 incidents of overheating, the Japanese electronics giant said today. Some users reported smoke or flames. Four of the incidents resulted in minor skin burns while 21 of the cases caused damage to property, Sony said. Hewlett-Packard, Toshiba and Dell are involved in the global recall. Sony said the defect appeared to have been caused by a problem with a production line during October 2004 and June 2005. Its own VAIO notebook computers are not affected by the recall. The US Consumer Product Safety Commission said that about 32,000 batteries were being recalled voluntarily in the United States, mostly by Hewlett-Packard. It said consumers should stop using the recalled products immediately because they can overheat, posing a fire and burn hazard to consumers. Toshiba spokeswoman Yuko Sugahara said that about 14,400 of its laptops worldwide would be affected by the recall. In 2006 Sony was hit by recalls of almost 10 million of its batteries for laptop computers because of fears they could catch fire, burning a deep hole in the Japanese giant’s profits. Source: Tech News - Livemint.com | 31 Oct 2008 | 7:29 am Motorola posts $397 mn Q3 loss; more job cutsBy AP New York: Motorola Inc. has posted hefty losses in Q3, citing continued troubles of its cell phone division. The company will postpone the planned spin-off of the unit, and cut more jobs. The maker of communications gear said it would get rid of 3,000 jobs by April, with about 2,000 of them coming from the cell phone unit. The company last announced 2,600 job cuts in April. Dip in share price Motorola lost $397 million, or 18 cents per share, in the July-September period. It had earned $60 million, or 3 cents per share, in the same period a year ago. Sales fell 15% to $7.48 billion. The loss included 23 cents of charges, mostly for restructuring costs. Without the charges, Motorola would have earned 5 cents a share, reflecting unexpectedly strong results in its non-cell phone operations. Analysts polled by Thomson Reuters had on average expected the company to earn 2 cents per share on revenue of $7.82 billion. For the fourth quarter, Motorola said it expects to earn 2 cents to 4 cents per share. Analysts polled by Thomson Reuters had expected the company to earn 7 cents per share in the quarter, excluding items. Shares of Motorola fell 31 cents, or 5.7%, to $5.15 in afternoon trading, even as the broader market rallied. Plans to cut costs by $800 mn in 2009 The job cuts are part of efforts to cut costs by $800 million next year, chief executive Greg Brown said. Motorola sold 25.4 million cell phones in the third quarter, down from the 28.1 million it sold in the second quarter. The company had said it expected a slight decline. With an 8.5% market share, it lost the spot as No. 3 cell phone maker worldwide to Sony Ericsson in the quarter, according to research firm IDC. Nokia Corp. and Samsung Electronics Co. are No. 1 and No. 2, respectively. Cell phone unit sales dip The cell phone unit lost $840 million, including a $370 million write-down of inventory. Revenue was $3.1 billion. Sanjay Jha, who was appointed in August to lead the handset division, said the weak economy and stresses in the financial market were main reasons for the postponed spin-off. He said the unit would slim down its product portfolio and become a leaner organization. Jha said the company had 20 major platforms for cell phones, making development unwieldy yet leaving Motorola with few products in the two categories that have been in demand this year: “smart” phones and very cheap phones. Designers at Motorola have been too focused on making “bright shiny objects,” Jha said. In the future, he wants them to focus more on making phones easy to use. The troubles of the cell phone division stem from its inability to produce a follow-up to a phone that was, for a while, the “bright shiny object” everyone had to have: the Razr phone. Jha also said Motorola will pull back from the cell phone markets of Europe and parts of Asia, though Jha said China will remain a focus for the company, along with the Americas. Motorola is not alone in seeing a decline in cell phone sales. IDC said Thursday that global handset shipments declined 0.4% from the second quarter to the third, even though the quarter normally sees a pre-holiday ramp-up. Source: World Business - Livemint.com | 31 Oct 2008 | 6:53 am Motorola posts $397 mn Q3 loss; more job cutsBy AP New York: Motorola Inc. has posted hefty losses in Q3, citing continued troubles of its cell phone division. The company will postpone the planned spin-off of the unit, and cut more jobs. The maker of communications gear said it would get rid of 3,000 jobs by April, with about 2,000 of them coming from the cell phone unit. The company last announced 2,600 job cuts in April. Dip in share price Motorola lost $397 million, or 18 cents per share, in the July-September period. It had earned $60 million, or 3 cents per share, in the same period a year ago. Sales fell 15% to $7.48 billion. The loss included 23 cents of charges, mostly for restructuring costs. Without the charges, Motorola would have earned 5 cents a share, reflecting unexpectedly strong results in its non-cell phone operations. Analysts polled by Thomson Reuters had on average expected the company to earn 2 cents per share on revenue of $7.82 billion. For the fourth quarter, Motorola said it expects to earn 2 cents to 4 cents per share. Analysts polled by Thomson Reuters had expected the company to earn 7 cents per share in the quarter, excluding items. Shares of Motorola fell 31 cents, or 5.7%, to $5.15 in afternoon trading, even as the broader market rallied. Plans to cut costs by $800 mn in 2009 The job cuts are part of efforts to cut costs by $800 million next year, chief executive Greg Brown said. Motorola sold 25.4 million cell phones in the third quarter, down from the 28.1 million it sold in the second quarter. The company had said it expected a slight decline. With an 8.5% market share, it lost the spot as No. 3 cell phone maker worldwide to Sony Ericsson in the quarter, according to research firm IDC. Nokia Corp. and Samsung Electronics Co. are No. 1 and No. 2, respectively. Cell phone unit sales dip The cell phone unit lost $840 million, including a $370 million write-down of inventory. Revenue was $3.1 billion. Sanjay Jha, who was appointed in August to lead the handset division, said the weak economy and stresses in the financial market were main reasons for the postponed spin-off. He said the unit would slim down its product portfolio and become a leaner organization. Jha said the company had 20 major platforms for cell phones, making development unwieldy yet leaving Motorola with few products in the two categories that have been in demand this year: “smart” phones and very cheap phones. Designers at Motorola have been too focused on making “bright shiny objects,” Jha said. In the future, he wants them to focus more on making phones easy to use. The troubles of the cell phone division stem from its inability to produce a follow-up to a phone that was, for a while, the “bright shiny object” everyone had to have: the Razr phone. Jha also said Motorola will pull back from the cell phone markets of Europe and parts of Asia, though Jha said China will remain a focus for the company, along with the Americas. Motorola is not alone in seeing a decline in cell phone sales. IDC said Thursday that global handset shipments declined 0.4% from the second quarter to the third, even though the quarter normally sees a pre-holiday ramp-up. Source: Home - Livemint.com | 31 Oct 2008 | 6:53 am India Cements Q2 net dips 40% at Rs134 crPTI Mumbai: India Cements today said its net profit fell by 39.69% to Rs134.27 crore for the second quarter ended 30 September. The cement maker had a net profit of Rs222.65 crore in the same quarter last fiscal, India Cements Ltd said in a filing to the Bombay Stock Exchange. Total income rose to Rs1,096.59 crore for the quarter under review from Rs891.35 crore a year-ago. For the six months ended 30 September, India Cement posted a net profit of Rs276.41 crore, against Rs406.05 crore in the same period last fiscal, down by 32%. While, net sales rose to Rs2,063.67 crore for the six months ended 30 September, from Rs1,721.83 crore in the same period a year ago. Shares of the company were trading at Rs80.75, up 7.45% in afternoon trade on the BSE. Source: Home - Livemint.com | 31 Oct 2008 | 6:43 am American Express to cut 7,000 jobsBy AP New York: In a stark acknowledgment of the tough times ahead in the credit card industry, American Express Co. plans to cut 7,000 jobs, or about 10% of its worldwide work force, in an effort to slash costs by $1.8 billion in 2009. The New York-based credit card issuer which has reported four straight quarters of profit, declines as an increasing number of consumers struggle to pay off debt and is also suspending management-level salary increases next year besides instituting a hiring freeze. The job cuts will be across various business units, but will primarily focus on management positions, the company said. Additionally, American Express said it plans to scale back investments in technology and marketing and business development, and streamline costs associated with some rewards programmes. The company will cut expenses for consulting and other professional services, travel and entertainment and general overheads. Restructuring on the anvil As a result, American Express plans to take a restructuring charge of between $240 million and $290 million in the fourth quarter. The company has been gearing up for a big restructuring for some time, first announcing in July that it planned to reduce overall costs and staffing levels, and take a related charge during the second half of the year. 24% drop in Q3 profit Last week, American Express reported a 24% decline in third-quarter profit. The report echoed recent results from JPMorgan Chase & Co., Citigroup Inc. and Capital One Financial Corp. showing that the credit card environment is worsening as cardholders have trouble paying off debt and pull back their spending. Even a company like American Express, which prides itself on catering to a more well-heeled clientele, is not immune. The company’s customers tend to be more affluent than those of other card companies, but they are more heavily concentrated in California and Florida, where the slumping housing market is taking a toll. American Express also has a higher percentage of small-business customers, and small businesses tend to miss payments more than individuals, executives have said. American Express has been able to finance its operations amid the tight credit markets, but the efforts have been tougher and more costly. Shares rose 60 cents, or 2.4%, to $25.81 in afternoon trading. Shares have traded between $20.50 and $61.55 in the past 12 months. Source: World Business - Livemint.com | 31 Oct 2008 | 6:26 am Rupee up on stronger Asian units, stocksReuters Mumbai: Indian rupee rose to its highest in a week on Friday, tracking gains in other Asian currencies and a rally in the local stock market but dollar demand from oil refiners may prevent a further rise. At 10:25 a.m. (0455 GMT), the partially convertible rupee was at Rs49.36/37 per dollar, its strongest since 22 October , and 0.7% stronger than its close of Rs49.69/70 on Wednesday. The market was shut on Thursday for a local holiday. “The rupee opened stronger in line other Asian currencies. Even stocks have opened stronger, but there is some month-end demand expected to creep in,” said a senior dealer with a private bank. The yen rose against the dollar and euro as a drop in Tokyo share prices renewed investor concern over riskier assets, while players cautiously awaited the Bank of Japan’s policy decision later in the day. India’s main share index rose more than 8% early, catching up with sharp rises overseas on Thursday when the domestic market was closed. Foreign funds have sold a net $12.9 billion worth of Indian stocks in 2008 after buying a record $17.4 billion last year. The outflows had sent the rupee to a record low of Rs50.29 on Monday, at which point it had lost more than 7% in October and 21.6% in 2008. UBS said in a note this week it expected the rupee to close 2008 at Rs52. Source: Home - Livemint.com | 31 Oct 2008 | 5:49 am Bill to raise LIC equity to Rs100 cr to be tabled in ParliamentPTI New Delhi: A bill to increase the paid-up capital of state-run Life Insurance Corporation to Rs100 crore from the current Rs5 crore and to bring it at par with private insurers, will be tabled in Parliament. “LIC (Amendment) Bill, 2008 is being tabled...This is one short bill that raises equity from Rs5 crore to Rs100 crore,” Finance Minister P Chidambaram told reporters while briefing on decision taken in the Cabinet last night. The bill will be tabled in the Lok Sabha on the recommendations made by the Group of Ministers, an official statement said. It will be tabled separately from other insurance bills like Insurance (amendment) Bill, 2008, General Insurance Business (nationalisation) Act, 1972, and Insurance Regulatory and Development Authority (IRDA) Act, 1999. Currently, insurers have to maintain minimum paid-up capital of Rs100 crore as per the IRDA Act, but LIC was the exception since it is covered by a separate Act. LIC policies are also guaranteed by the government, which also raises objections from the private players for not creating level-playing field vis-a-vis government-run company. The Parliament session, which was suspended on 24 October, would be reconvened on 10 December. Source: Home - Livemint.com | 31 Oct 2008 | 5:39 am Govt approves insurance bill; to hike FDI cap to 49%New Delhi: The government Friday approved the much-awaited comprehensive insurance bill, which seeks to raise foreign direct investment cap in private sector to 49% from 26%, and said it would be tabled in the Parliament in December. “The Union Cabinet gave its approval for introduction of the Insurance (Amendment) Bill, 2008 for amendment to Insurance Act 1938, General Insurance Business Act, 1972, and Insurance Regulatory and Development Act, 1999, in the Rajya Sabha on the basis of recommendations made by GoM,” Finance Minister P Chidambaram told reporters. However, the Bill is unlikely to be passed in this Parliament mainly due to lack of time, Chidambaram said while briefing on decision taken in the Cabinet Thursday night. The amendments, he said, will remove archaic and redundant provisions in the legislations and would incorporate certain provisions to provide IRDA with flexibility to discharge its functions effectively and efficiently. The Cabinet also decided to introduce the Life Insurance Corporation (Amendment) Bill, 2008 in the Lok Sabha, he said. Source: Home - Livemint.com | 31 Oct 2008 | 5:06 am Global slowdown to indirectly affect India - ChidambaramNEW DELHI (Reuters) - The global slowdown will have an indirect effect on the Indian economy, Finance Minister Palaniappan Chidambaram told reporters on Friday.Source: Reuters: Money News | 31 Oct 2008 | 4:07 am `Dark years` ahead for Asian airlines: Conference!Asian airlines face bleak business in the next two years amid a global recession and must deal with the challenges or risk extinction, an industry conference was told on Thursday.Source: Zee News : Business | 31 Oct 2008 | 12:11 am World oil prices tumble on US economic gloom!Oil prices slipped back on Thursday in volatile trade, reversing early gains as the market reacted to news of shrinking economic growth in the United States, the world`s top energy consumer.Source: Zee News : Business | 31 Oct 2008 | 12:11 am Deora for more oil bond aid to retailers!Petroleum Minister Murli Deora on Thursday met Finance Minister P Chidambaram, seeking an increase in the quantum of oil bonds issued to fuel retailers to partly compensate their losses on account of selling fuel below cost price.Source: Zee News : Business | 31 Oct 2008 | 12:11 am ArcelorMittal`s workers told French plants will shut!ArcelorMittal workers in France and Belgium said Thursday the company has told them it would stop steel output at some plants this winter as demand drops.Source: Zee News : Business | 31 Oct 2008 | 12:11 am RBI needs to slash CRR, repo rate further: IEG!The RBI should further cut Cash Reserve Ratio, the mandatory deposit that banks are required to keep with it, to stimulate the economy and infuse liquidity in the money market, suggests a new report.Source: Zee News : Business | 31 Oct 2008 | 12:11 am World moving towards zero interest rate?!The latest interest rate cut in the US has sparked speculations that a number of major economies across the world, including the US, Japan, England and Australia, are moving towards a zero-percent regime, but bankers differ about India.Source: Zee News : Business | 31 Oct 2008 | 12:11 am Inflation not a serious concern as two months ago: Montek!Observing that inflation is not serious problem now, Planning Commission Deputy Chairman Montek Singh Ahluwalia on Thursday said the aim should be on high growth track of nine percent.Source: Zee News : Business | 31 Oct 2008 | 12:11 am No immediate threat to large-scale job layoffs: FICCI!Industry chamber FICCI on Thursday said India faces no immediate threat of large scale job layoffs by companies, a comment that is opposite to an assessment on job losses by another business body Assocham.Source: Zee News : Business | 31 Oct 2008 | 12:11 am DoT sets up committee for strict WiFi security!Stumped by terrorists who get away with sending e-mails about blasts using open WiFi networks, the government has set up an inter-ministerial panel to find ways to beat them.Source: Zee News : Business | 31 Oct 2008 | 12:11 am Vodafone enters into partnership with Russia`s MTS!British telecom giant Vodafone on Thursday said it has entered into a strategic partnership with Russia`s Mobile TeleSystems OJSC which includes collaboration on future technological developments.Source: Zee News : Business | 31 Oct 2008 | 12:11 am Religare plans 2:3 rights; promoters to pick up unsubscribed portionMumbai, Oct. 30 Broking firm Religare Enterprises, promoted by Mr Malvinder Singh of Ranbaxy, announced on Thursday that it planned to go in for a rights issue of shares to raise Rs 1,802 crore.Source: Business Line - Home Page | 31 Oct 2008 | 12:00 am Revenues from maintenance deals upMumbai, Oct. 30 The global financial crisis seems to have prompted client companies to outsource IT projects of a more traditional nature as is evident from the September quarter numbers of major ITSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am KPMG positive on IndiaGlobal consultancy and auditing major KPMG recently revamped its operations in India, strengthening its management team and nominating new heads along business lines. Notwithstanding the current concerns of slowdown and possible impact on businessesSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am Are we in for a Mexican standoff?“Operation successful, patient dead” is an old chestnut. It is also like playing a perfect hook-shot — everything looks wonderful until you get caught on the fine leg boundary. Therefore, it seems to me that the time has nowSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am Insurers move into T-bills, certificates of depositsBangalore, Oct. 30 With the downturn in the equity market, insurance companies have shifted investments to certificates of deposits and short-term Treasury bills.Source: Business Line - Home Page | 31 Oct 2008 | 12:00 am Day Trading GuideThe analysis and opinion expressed in these columns are based on the technical analysis of the past price behaviour. The stop-loss level provided with the recommendation is important. The original view would stand negated if the stop-loss level isSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am Sesa Goa (Rs 79.40): BuyWe recommend a buy in Sesa Goa from a short-term perspective. It is evident from the charts of Sesa Goa that it has been on an intermediate-term downtrend from its early May high of Rs 220. Since then, the stock has been forming lower troughs andSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am BPCL posts Rs 2,625 cr loss in Sept quarterMumbai, Oct. 30 Public Sector oil refining and marketing company Bharat Petroleum Corporation Ltd (BPCL) has reported a loss of Rs 2,625.27 crore for the second quarter ended September 30, 2008. The company had made a profit of Rs 1,038.16Source: Business Line - Home Page | 31 Oct 2008 | 12:00 am Inflation rate eases to below 11%New Delhi, Oct 30 The annual wholesale price index-based inflation rose 10.68 per cent during the week ended October 18, slower than the previous week’s annual rise of 11.07 per cent, the Commerce Ministry said in a statement in New DelhiSource: Business Line - Home Page | 31 Oct 2008 | 12:00 am ONGC net dips 6% on subsidy burdenNew Delhi, Oct. 30 ONGC has reported a 6 per cent dip in net profit and a 13 per cent increase in sales revenue for the second quarter of this year over the same period last year.Source: Business Line - Home Page | 31 Oct 2008 | 12:00 am Small IT firms abusing H1-B visas, alleges USA new government report now catalogues H1-B visa transgressions aimed at smuggling cheap workers into the US, but it does not name the companies involvedSource: Daily News & Analysis: Money News | 30 Oct 2008 | 11:20 pm Give yourself the 90/10 edgeToday, the equity market has been discounted by more than 50% from its peak. Investors are reluctant to enterSource: Daily News & Analysis: Money News | 30 Oct 2008 | 10:33 pm How to pick stocks based on m-capThe market capitalisation (m-cap) of a company is defined as "the number of outstanding shares multiplied by the market price of each share."Source: Daily News & Analysis: Money News | 30 Oct 2008 | 10:32 pm Nano on information highwayAfter dominating newspaper headlines for long, Nano, the yet-to-be-out small car from the Tata stable, is now driving fast and furious on the information highway.Source: Daily News & Analysis: Money News | 30 Oct 2008 | 10:26 pm With slowdown looming, PE firms eye juicier picksWhile most of the firms have been focusing on early- to mid-stage investments in the past, the trend is slowly shifting towards later-stage investments.Source: Daily News & Analysis: Money News | 30 Oct 2008 | 10:23 pm Dismal Q2 performance shows cement still on shaky groundIf its second quarter results are to be believed, the cement sector desperately needs a shot-in-the-arm.Source: Daily News & Analysis: Money News | 30 Oct 2008 | 10:22 pm Funding cools, but logistics still hotLogistics seems to be the preferred investment domain for private equity (PE) funds, even as PE funding has declined in IndiaSource: Daily News & Analysis: Money News | 30 Oct 2008 | 10:21 pm Food inflation eases for 2nd wk, at 8.3%For the fifth straight week, the official wholesale price index in absolute terms has been on a downhill path and the inflation rate too has shed 131 basis pointsSource: Daily News & Analysis: Money News | 30 Oct 2008 | 10:19 pm CII moots $6-7 bn fund to invest in local stocksWorried about the impact of the global financial crisis on Indian industry, the Confederation of Indian Industry (CII) has asked the government to create a $6-7 billion fundSource: Daily News & Analysis: Money News | 30 Oct 2008 | 10:17 pm Sensex slips 55%, but Indian stocks are still expensiveIndias benchmark stock market index, the Sensex, may have fallen 55 per cent this year, but India is still not the worlds cheapest market.Source: Business Standard | Front Page Headlines | 30 Oct 2008 | 6:51 pm Road projects hit by costly moneyHighway construction and infrastructure projects worth over Rs 10,000 crore hang in the balance with companies struggling to achieve financial closure after banks began raising interest rates to 14-16Source: Business Standard | Front Page Headlines | 30 Oct 2008 | 6:49 pm BSNL to raise 3G phone lines purchase eightfoldNew Delhi: India’s largest phone firm by revenue, Bharat Sanchar Nigam Ltd, or BSNL, is increasing the purchase of so-called third generation, or 3G, phone lines eightfolds as it bets on the new data-rich service to increase its market share in the world’s fastest growing wireless market. The state-owned firm is finalizing the purchase of 93 million phone lines of which half will be rolled out offering 3G service by mid-2009, said a senior BSNL executive, asking not to be named because he is not authorized to speak to the media.  Headstart: BSNL headquarters, New Delhi. As a state-run firm, BSNL is given preference over private rivals in offering new technologies. Rajeev Dabral / Mint BSNL plans to start offering 3G service in some of the largest cities where it operates by January by installing equipment capable of serving up to 5.75 million customers. That’s part of a contract for installing 23.5 million lines based on the GSM, or global system for mobile, technology awarded earlier in the year to telecom equipment manufacturers Ericsson AB, Alcatel-Lucent SA, Nortel Networks Corp. and state-run ITI Ltd. The 3G rollout under the contract will be completed before June 2009. BSNL hopes to leapfrog competitors and improve its market share with an early rollout of 3G service, which enables high-speed data access on mobile phones and allows users to surf the Internet or download content, including music and video, at speeds faster than those supported by current cellular technologies. The firm had about 12.82% of India’s 300 million mobile-phone user base in August this year. India, the biggest wireless market after China, is adding up to 10 million customers a month, making it also the world’s fastest growing phone services market. Operators such as Bharti Airtel Ltd, Reliance Communications Ltd and Vodafone-Essar Ltd lead BSNL in customer numbers with market shares of as much as 24.9%, 18.8% and 17.57% respectively. “The early roll-out of 3G services by BSNL well ahead of its competitors will definitely give the state-owned telco some key advantages,” said Kevin Trindad, telecom analyst with brokerage KR Choksey Ltd. “BSNL, being state-owned, is not profit-oriented and traditionally provides low-cost services in loss-making rural areas,” he said. “The 3G services give BSNL a huge advantage mainly to be able to compete with the foreign players who have more flexibility than the state-owned firm. They can use the services to garner higher Arpu (average revenue per user) in the rural areas as well as from the high-end users...” Under India’s 3G rules, private phone firms will have to participate in an auction for the right to offer the service and supporting spectrum expected to be held in January next year, which some analysts say could be further delayed. Even if it takes place on schedule, the service launch by private phone firms is not expected to take place before the summer or the third quarter of fiscal 2009. BSNL has already received a licence and spectrum rights to roll out 3G services in most parts of the country because it is one of the two state-run phone firms which by policy have to be given preference over private rivals in offering new technologies. The firm will have to match the licence fee bid by private operators that eventually win the right to offer the service. New Delhi-based BSNL, which also runs some 30.44 million fixed-line phones and broadband services, expects mobile number portability, or MNP, a facility that will allow customers to migrate their connection from one phone firm to another without changing the number, to help it gather customers for its 3G service. MNP is expected to be introduced in India by mid-2009. MNP will help BSNL sign up high-spending customers who do not want to wait until later in 2009 when private phone firms roll out their 3G services, the senior BSNL executive said. “We entered the mobile market in 2002 when most of the high-end users had already been taken by the private telecom firms like Airtel and Reliance,” he said. “The high-end users will be the first to experiment with 3G services and will migrate to BSNL due to our first mover advantage.” Such an advantage could be substantial, a Mumbai-based analyst said. “Even without MNP they are launching a nationwide urban network (that) will help immensely in retaining higher end subscribers and attracting newer ones. And the launch of a new service also helps in getting higher (customer billings),” said Sourabh Kaushal, analyst with research firm Frost and Sullivan. shauvik.g@livemint.com Source: Tech News - Livemint.com | 30 Oct 2008 | 5:37 pm Doubleclick: Local merchants can now go globalWhat started as a hobby to blog and to connect Indians worldwide has now become an enterprise called Sulekha. Started in 2001, with an initial investment of USD 4 million, it is Indias largest online classifieds and yellow pages.Source: Moneycontrol Top Headlines | 30 Oct 2008 | 3:39 pm Oil Min sees no case for fuel price cut at retail levelThe Oil Ministry said there is no case yet for a fuel price cut at the retail level, reports CNBCTV18, quoting sources. The underrecoveries for oil marketing companies will breakeven at around USD 57 per barrel for the Indian crude basket.Source: Moneycontrol Top Headlines | 30 Oct 2008 | 12:44 pm
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