|
|
|
|
BSNL's offer for customersBharat Sanchar Nigam Limited (BSNL) has come out with an offer on occasion of diwali - full waiver of rent and a discount of 10 to 25 per cent on arrear billsSource: Daily News & Analysis: Money News | 1 Nov 2008 | 1:44 pm RBI measures to induce rate cuts: BankersThe Reserve Bank's move to further cut reserve ratios and short term lending rate (Repo) would induce banks to cut lending ratesSource: Daily News & Analysis: Money News | 1 Nov 2008 | 1:41 pm RBI complements govt efforts to boost growthPaving the way for easing home, car and commercial loan rates, RBI announced steps on Saturday to pump in an estimated additional Rs 85,000 croreSource: Daily News & Analysis: Money News | 1 Nov 2008 | 1:37 pm RBI's move to help SMEs to get affordable credit - Economic Times
Source: Google News India - Business | 1 Nov 2008 | 1:07 pm GAIL, IOC ink deal - Sify
Source: Google News India - Business | 1 Nov 2008 | 1:02 pm Cavin Cares Chik plans to rekindle shampoo mkt\'Products are made in the factory, but brands are created in the mind.\' that\'s the mantra Chik shampoo has been chanting over the last 25 years. It entered the market at a time when shampoo was only for the elite. It lost no time in turning that premise on its head, by introducing shampoo in a sachet.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 12:43 pm China, India wary of taint of global economic crisisLONDON (Reuters) - Two powerhouse emerging market countries felt the sting of the global financial crisis on Saturday as India unexpectedly cut its main short-term lending rate again and China said it was now feeling a slowdown.Source: Reuters: Money News | 1 Nov 2008 | 12:36 pm Mkt meltdown hits Hyderabad infra cosHyderabad infrastructure companies are facing the heat of the market meltdown. Many of them are now worried about their future growth prospects. The valuations of companies have touched historic lows and thereby substantially eroding their ability to raise capital.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 12:28 pm Glivec war: SC asks panel to hear Novartis appeal on Nov 3This is a battle between Swiss drug major Novartis and Indian Pharmaceutical company Natco, and others, over Novartis\' 3.1 billion dollar cancer drug Glivec. The drug has been granted a patent in 40 countries including China, Russia and Taiwan, but in 2006, the Indian Patent Office refused to entertain Novartis\'s patent application.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 12:10 pm UK's Brown says Gulf states must help solve crisisLONDON (Reuters) - Oil-rich Gulf states should contribute to a fund to stabilise the financial system and help countries hit by the global economic crisis, British Prime Minister Gordon Brown said on Saturday.Source: Reuters: Money News | 1 Nov 2008 | 11:46 am Mercedes-Benz to shift to new plant early 2009Luxury car manufacturer, Mercedes-Benz India, would shift operations to a new plant at Chakon near Pune early next yearSource: Daily News & Analysis: Money News | 1 Nov 2008 | 11:25 am Thomas Cook India Q3 net dips 4 pc at Rs 11 cr - Hindustan Times
Source: Google News India - Business | 1 Nov 2008 | 11:17 am Industry welcomes RBI move; but more neededIndia Inc welcomed the RBI's move to inject about Rs 85,000 crore liquidity in the system, but said more is needed for benefits to be passed on to consumers.Source: Daily News & Analysis: Money News | 1 Nov 2008 | 11:08 am IDBI Bank cuts home, education loan ratesShortly after Reserve Bank cut its key rates, IDBI Bank reduced its home and educational loan rates by 0.5 per cent with immediate effect on Saturday.Source: Daily News & Analysis: Money News | 1 Nov 2008 | 11:02 am Travel agents boycott airlines offering no commission - Economic Times
Source: Google News India - Business | 1 Nov 2008 | 10:49 am CHRONOLOGY - Changes to Indian banks' cash reserve ratioMUMBAI (Reuters) - The Reserve Bank of India (RBI) said onSource: Reuters: Money News | 1 Nov 2008 | 10:38 am RBI cuts CRR, repo rate, SLRMumbai: After infusing Rs1,85,000-crore liquidity into the banking system, the RBI Saturday effected yet another 100 basis points cut in cash reserve ratio, or CRR, and a 0.5% reduction in key short-term lending repo rate, signaling softening of interest rates to prop up growth. The 1% point cut in CRR, the amount which banks have to park with the apex bank, has been brought down to 5.5% to infuse additional liquidity of Rs40,000 crore into the system. The CRR cut will be in two tranches and the first one of 0.5% will be effective retrospectively from 25 October and the second from 8 November. The RBI also cut the repo rate, the rate at which it lends to banks, by 0.5% to 7.5% with effect from 3 November. The central bank has also reduced the statutory liquidity ratio, or SLR, the amount which banks are mandated to park in government securities, by 100 basis points to 24%. Welcoming the decision, ICICI Bank Joint Managing Director Chanda Kochhar said, “It will release much needed liquidity into the system and signal reduction in interest rates.” The SLR cut would inject about Rs40,000 crore into the banking system. To provide further comfort on liquidity and to impart flexibility in liquidity management to banks, the central bank has introduced a special refinance facility to scheduled commercial banks. Under this facility, the banks will be able to borrow short-term funds from Reserve Bank up to a maximum period of 90 days. Source: Home - Livemint.com | 1 Nov 2008 | 10:35 am HIGHLIGHTS - Measures taken by RBI on SaturdayMUMBAI (Reuters) - Following are measures taken by the Reserve Bank of India (RBI) on Saturday in its latest move to shield the economy from the spillover effects of the global financial crisis and boost growth.Source: Reuters: Money News | 1 Nov 2008 | 10:32 am India's central bank cuts key rates, infuses liquidityIn a bid to lower the cost of borrowing for households and industry and infuse additional liquidity worth Rs.400 billion, India's central bank Saturday cut some key interest rates and reduced the minimum cash balance for commercial banks.Source: IndiaeNews.com: Business News | 1 Nov 2008 | 10:31 am CHRONOLOGY - Changes to India's repo rate since June 2000MUMBAI (Reuters) - The Reserve Bank on Saturday unexpectedly cut its repo rate or main short-term lending rate by 50 basis points to 7.5 percent and banks' cash reserve requirements by 100 basis points to 5.5 percent.Source: Reuters: Money News | 1 Nov 2008 | 10:25 am Remove liquor ads at airports: RamadossThe Union Health Minister, Dr Anbumani Ramadoss, has expressed disappointment over the display of alcohol advertisements at airports across the country and has written to the Civil Aviation Minister, Mr Praful Patel, for their removal.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 10:25 am \'Toyota, Kirloskar in equity talks for small car project\'Toyota Motor Corporation (TMC) is learnt to be in talks with its joint venture partner in India, the Kirloskar Group, for equity infusion into the Rs 2,600crore compact car project which is being developed in its plant near Bangalore.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 10:24 am GAIL, IOC ink deal for exploring petrochem projectGAIL (India) Ltd and Indian Oil Corporation Ltd (IOCL) on Friday signed an agreement for exploring the possibility of setting up a cracker complex (including downstream derivatives) at Barauni, Bihar. The two public sector undertakings are looking at setting up a Rs 10,000crore petrochemical plant at Barauni.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 10:21 am BIG Pictures releases Amritraj movie in AmericaReliance BIG Entertainment, the entertainment arm of Indian business conglomerate Reliance Anil Dirubhai Ambani Group has made a major distribution and marketing foray across N AmericaSource: Daily News & Analysis: Money News | 1 Nov 2008 | 10:19 am Promoters stake in Tata Motors rises to 42%Post the rights issue the promoters stake in Tata Motors rose to 42 per cent from 33 per cent. The promoters Tata Sons and group companies invested more than Rs 3,000 crore to pick up the unsubscribed portion of the rights issue.Source: Moneycontrol Top Headlines | 1 Nov 2008 | 10:18 am Travel agents boycott airlines offering no commissionAir travel agents in Kerala Saturday stopped selling tickets of those airlines which withdrew the five percent agent's commission on tickets.Source: IndiaeNews.com: Business News | 1 Nov 2008 | 10:00 am RBI cuts rates to ease cash squeeze, support growthMUMBAI (Reuters) - The Reserve Bank of India (RBI) on Saturday unexpectedly cut its main short-term lending rate for the second time in as many weeks to ease a growing cash squeeze, spur faltering economic growth and fend off damage from the global financial crisis.Source: Reuters: Money News | 1 Nov 2008 | 9:55 am Spain posts first GDP drop in 15 yearsSpain's gross domestic product (GDP) shrank 0.2 percent in the third quarter compared to the previous three months for the first time in 15 yearsSource: Daily News & Analysis: Money News | 1 Nov 2008 | 9:48 am Duties on steel, jet fuel changed: Experts react - Moneycontrol.com
Source: Google News India - Business | 1 Nov 2008 | 9:46 am Tata launches new vehicles in South AfricaTata Motors has unveiled two new passenger vehicles and a one-ton pickup at the ongoing Johannesburg International Motor ShowSource: Daily News & Analysis: Money News | 1 Nov 2008 | 9:16 am Diwali gives much needed impetus to falling market - Hindu Business Line
Source: Google News India - Business | 1 Nov 2008 | 9:10 am INSTANT VIEW - RBI cuts repo rate, bank reserve ratioMUMBAI (Reuters) - The Reserve Bank of India (RBI) on Saturday unexpectedly cut its repo rate or main short-term lending rate by 50 basis points to 7.5 percent and banks' cash reserve requirements by 100 basis points to 5.5 percent.Source: Reuters: Money News | 1 Nov 2008 | 9:07 am India's central bank cuts key rates to infuse liquidityIn a dramatic weekend announcement, India's central bank Saturday cut some key interest rates and reduced the minimum cash balance banks have to retain against deposits in a bid to infuse additional liquidity worth Rs.400 billion and reduce their cost of borrowing.Source: IndiaeNews.com: Business News | 1 Nov 2008 | 9:02 am Highlights of measures announced by India's central bankFollowing are the highlights of the measures announced by the Reserve Bank of India (RBI) Saturday in a bid to reduce the cost of borrowings of commercial banks and infuse additional liquidity:Source: IndiaeNews.com: Business News | 1 Nov 2008 | 9:00 am UPDATE 1-India cuts rates to ease cash squeeze, support growth - Reuters India
Source: Google News India - Business | 1 Nov 2008 | 8:53 am Battered Indian equities markets end week in greenWith Indian equities markets worshipping Lakshmi, the goddess of wealth, during Diwali this week, some wealth returned to the battered markets with a key share index ending with a gain of 12.5 percent after losing more than 35 percent in the first three weeks of October.Source: IndiaeNews.com: Business News | 1 Nov 2008 | 8:00 am Unitech Q2 net slips 12 pc at Rs 359 cr - Hindu
Source: Google News India - Business | 1 Nov 2008 | 7:53 am Exchange Rates Trigger Loss at Suzlon Energy - Wall Street Journal
Source: Google News India - Business | 1 Nov 2008 | 6:56 am Bharti to focus on cost efficiency, not cuts - Sify
Source: Google News India - Business | 1 Nov 2008 | 5:30 am Experiential holidays: Latest in Indian holiday circuitFifty-two-year-old Virender Singh, a Gujarat-based hotelier, can't stop raving about his holiday. He availed himself of the 'Sex and the City' tour of New York city that took him to all the places that feature in the popular American teleserial.Source: IndiaeNews.com: Business News | 1 Nov 2008 | 4:30 am Panasonic to start talks to buy Sanyo - NikkeiTOKYO (Reuters) - Japanese electronics maker Panasonic Corp plans to begin talks to take control of smaller rival Sanyo Electric Co, the Nikkei business daily reported on Saturday.Source: Reuters: Money News | 1 Nov 2008 | 2:34 am Wall St Week Ahead: Election, jobs to set tone for stocksNEW YORK (Reuters) - Wall Street hopes to turn a new page as it heads into November, but next week is littered with hurdles ranging from the U.S. presidential election to a likely gloomy jobs report.Source: Reuters: Money News | 1 Nov 2008 | 1:19 am U.S. consumers slash spending, world markets stabilizeNEW YORK (Reuters) - Americans slashed spending and the country's business outlook weakened but there were signs of stabilization in global markets on Friday, with interbank rates falling and U.S. stocks posting their best week in 34 years.Source: Reuters: Money News | 1 Nov 2008 | 1:11 am Banking on consumers in distressMumbai, Oct. 31 What do you do when the neighbourhood bank in which your hard-earned savings are parked seems to be in distress? Or when are you are unsure about the health of the financial institution whose bonds you have subscribedSource: Business Line - Home Page | 1 Nov 2008 | 12:00 am Forex reserves fall $15.5 bMumbai, Oct. 31 The foreign exchange reserves shrunk by $15.47 billion - the largest fall in a week - to $258.415 billion for the week ended October 24, according to the latest figures released by the Reserve Bank of India. The reserves hadSource: Business Line - Home Page | 1 Nov 2008 | 12:00 am Forex loss hits Tata Motors netMumbai, Oct. 31 A foreign exchange loss of Rs 285 crore dented auto-major Tata Motors’s profits, down 34 per cent at Rs 347 crore for the June-September quarter.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am Stocks lent by FIIs among the worst affected in slideMumbai, Oct. 31 The stocks in which foreign institutional investors have lent the most quantity of shares overseas are also among the worst affected in the recent stock marketSource: Business Line - Home Page | 1 Nov 2008 | 12:00 am IOC posts Rs 7,047-cr quarterly loss on under-realisations, weak rupeeIndian Oil Corporation Ltd (IOC) has registered a net loss of Rs 7,047.13 crore for the second quarter of the current fiscal against a net profit of Rs 3,817.75 crore in corresponding quarter of pervious fiscal.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am Basic customs duty on jet fuel goes; IOC cuts priceNew Delhi, Oct. 31 The basic customs duty of five per cent on aviation turbine fuel (ATF) has been completely removed. The sale price of ATF has also been reduced by 15-17 per cent across the four metros.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am FII buying lifts marketsMumbai, Oct. 31 Stocks rose on Friday as foreign institutional investors turned net buyers after a straight fortnight of fierce selling.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am India tops in world organic cotton outputChennai, Oct. 31 Call it compulsion or accident, the fact is India is now the world leader in production of organic cotton. The country’s organic cotton output increased 292 per cent during 2007-08 to 73,702 tonnes compared with theSource: Business Line - Home Page | 1 Nov 2008 | 12:00 am Emerging markets most hurt in bear runMumbai, Oct. 31 Investors across the globe are now sobbing at the sink, from singing in the shower just at the beginning of the year.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am PNB cuts prime lending, deposit rates by 50 bpsNew Delhi, Oct. 31 Punjab National Bank (PNB) on Friday announced a cut in its benchmark prime lending rate (PLR) by 50 basis points to 13.5 per cent.Source: Business Line - Home Page | 1 Nov 2008 | 12:00 am Mahindra Xylo to be retailed with Scorpio, LoganMahindra & Mahindra (M&M) has drafted an aggressive retail strategy for its new multipurpose vehicle (MPV).Source: Daily News & Analysis: Money News | 31 Oct 2008 | 10:36 pm Union Cabinet clears key insurance, education BillsNew Delhi: The Union cabinet has decided to table key Bills, including a controversial one that envisages raising the cap on foreign ownership of insurance firms, but this by itself doesn’t mean these Bills will be passed in the Parliament session that reconvenes on 10 December. Union finance minister P. Chidambaram expressed his doubts about clearance of the insurance Bills in the remaining term of the ruling United Progressive Alliance (UPA) government scheduled to end in May. Click here to watch video In a Thursday evening meeting, the Union cabinet cleared the long-pending Right to Education Bill, which promises free and mandatory education for children between the ages of six and 14, and the Insurance (Amendment) Bill, 2008, for amendment to the Insurance Act, 1938, the General Insurance Business (Nationalization) Act, 1972, and the Insurance Regulatory and Development Act, 1999, that seek to reform current laws governing the insurance business in the country. Briefing the media about the Union cabinet’s decisions Chidambaram, said: “These are comprehensive amendments to reflect the current needs of the insurance sector.” The government will table the insurance Bill when a “suitable opportunity” presents itself, Chidambaram said. A Union minister who did not want to be named said the Prime Minister was yet to decide on when to present these Bills and whether to introduce them in the Lok Sabha or Rajya Sabha. Bills introduced in the Lok Sabha, but not cleared, lapse when the House is dissolved and will have to go through the process of being approved by the Union cabinet all over again before being represented. Chidambaram said it was likely that the insurance Bill would end up being studied by a committee. “It will go to a committee (parliamentary standing committee on finance),” Chidambaram said. Typically, important Bills are sent by Parliament to a committee of parliamentarians who hold discussions with stakeholders and suggest changes to a Bill. At the end of this process, which takes at least a few months, the government can choose to either accept all or some of the committee’s changes or reject them and reintroduce the Bill. One of the insurance Bills seek to raise the government’s paid up capital in state-owned Life Insurance Corp. of India Ltd (LIC) to Rs100 crore from the current Rs5 crore, the same as that mandated by insurance regulator Irda (Insurance Regulatory and Development Authority) for the 19 private life insurers operating in India. Another seeks to enhance the cap on foreign direct investment (FDI) in private insurers to 49% from 26%. The Bill cleared by the Union cabinet does not split this between foreign portfolio investors (foreign institutional investors, or FIIs) and others, a government official familiar with the development said. It also removes the need for Indian promoters to dilute a part of their holding 10 years after a firm starts operations, added the official, who didn’t want to be named. “We welcome this announcement and are delighted that the increase in FDI to 49% has been approved by the Union cabinet and we look forward to the Bill being approved soon. A simple calculation shows that raising the FDI limit to 49% may increase the total FDI in the life insurance industry by almost 2.5 times from the current level of approximately Rs2,500 crore,” T.R. Ramachandran, designate managing director and chief executive officer, Aviva India, said. And one of the Bills makes a special reference to Lloyds, a cabinet member present at the meeting, but who did not wish to be named, told Mint. This allows Lloyds, one of the largest global reinsurers, to start operations in India as a foreign company without getting registered under the domestic Companies Act, the government official cited in the first instance said. Lloyds is a UK-headquart-ered society of insurers, which provides a highly specialized reinsurance facility. The Union cabinet member added that some of his colleagues felt a few of the insurance amendments, including those that sought to raise the cap on FDI and allow Lloyds to operate here, were politically risky. The Communist parties, which supported the UPA government till July when they withdrew support over the Indo-US civilian nuclear deal that they opposed, have been against several insurance reforms including raising the ceiling on FDI to 49%. On Friday, the Communist Party of India (Marxist) issued a media statement which said: “The Politburo of the Communist Party of India (Marxist) strongly disapproves the decision of the Union cabinet to increase the ceiling for foreign capital entry into the Indian insurance... For the last four years this was not allowed to be done by the Left parties on whose support the UPA government depended.” Prakash Javadekar, a member of the Bharatiya Janata Party, said his party would “take a decision only after seeing the Bill(s).” Among other key provisions of the insurance amendment Bill is one that allows the four state-owned general insurance firms to raise more capital. The government of the day would have to take a policy call on dilution of stake when any of the four companies want to raise capital, the same government official said. Right to Education The Right to Education Bill makes it the duty of the Union and state governments to provide free and compulsory education. Chidambaram said the human resource development ministry would release the text of the Bill after consulting the Election Commission in view of the assembly polls in some states. A group of ministers cleared the draft legislation in early October without diluting the content, including contentious provisions such as a 25% reservation in private schools for disadvantaged children from the neighbourhood at the entry level. sanjiv.s@livemint.com PTI contribued to this story. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 7:44 pm SpiceJet posts net loss of Rs198 crore for Q2New Delhi: Low cost carrier SpiceJet on Friday reported a net loss of Rs198 crore for the second quarter ended 30 September. The airline had posted a net loss of Rs37.7 crore in the corresponding quarter of the previous financial year. Total income of the carrier stood at Rs363.3 crore in the second quarter, up from Rs271.3 crore in the same quarter of the previous fiscal, the airline said in a statement. SpiceJet witnessed a 53% growth in operating revenue because of a 3% increase in number of flights in comparison to same quarter last year. The company reported a 43% growth in revenue per flight on account of increased passenger yield. On the revenue generated during the quarter, SpiceJet CEO Sanjay Aggarwal said: “We have been able to achieve a 43% growth in revenue per flight driven by a 77% enhancement in average fare realisation this quarter when compared to last year”. There has been a correction in ticket pricing in the first two quarter of the current fiscal. The revised prices are holding in the market place and that it will be the case moving ahead at least till the end of this fiscal year, he added. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 7:32 pm Beatles, AC/DC may have to accept itunesWhat do the Beatles and AC/DC have in common? Neither band sells songs on Apple’s iTunes, yet both are getting into video games. No, rock gods haven’t given up getting high and scoring in favour of getting high scores. The economics of games are just more compelling and create fewer piracy issues.  Both bands have famously refused to hand their songs over to iTunes. AC/DC’s front man even went as far as saying Apple’s service would “kill music”. Their reluctance is understandable—rock stars have a lifestyle to maintain—hotels to trash and Maseratis to crash. Fans often download a couple of songs for 99 cents each on iTunes, instead of spending $12 (Rs591.6) or more to buy an entire album. Yet last month AC/DC agreed to let the maker of the popular Rock Band video game create an updated version based entirely on its songs. Now the same company’s giving the Beatles their very own game. It’s easy to see why. Rock Band has sold 4 million copies, earning $600 million in revenues. And people can’t solely listen to music through the games, so it’s hard to see how it will cannibalize CD sales. Piracy is also less of an issue with video games. It’s a lot harder to download an entire illegal game than it is to rip and burn a couple of songs. At some point the groups will probably have to embrace iTunes. US album sales have fallen over 25% in the past two years as consumers flock to the convenience of buying songs online. But with their transformation to video game avatars, the Beatles and AC/DC may be able to rock for a little while longer on their own. Source: Home - Livemint.com | 31 Oct 2008 | 7:32 pm Motilal Oswal | When everyone knows your namePerhaps it is a sign of the times that Kandahar, the Northwest Frontier theme restaurant at The Oberoi, is deserted for lunch on a recent Saturday. The restaurant’s empty tables, gleaming plates and wait staff, suitably ethnic in salwar suits and waistcoats, enjoy the spectacular view of a placid Arabian Sea under the bright Mumbai sun with not a paying soul for company. Or perhaps one needlessly reads “economic meltdown” in every small thing nowadays. Motilal Oswal, the man, not the company, is not too reassuring later over lunch though. In 20 years of managing customers’ money—and seeing his fair share of domestic and international crises—Oswal confesses that this is probably the worst turmoil he has ever seen. “It will take a long time to come out of this mess,” he explains, “it is best if we all just wait and watch without panicking.”  Life lessons: Oswal is an obsessive reader of self-help books. The first thing that strikes me about Oswal is the complete absence of bling. When you meet someone who runs a diversified financial services firm, with broking and wealth management divisions among other things, that clocked Rs137 crore in revenues last quarter—“an understandably poor one under the circumstances”—and one named after themselves no less, you expect to see, at the very least, a chunky ring. Or, maybe one of those diamond-studded iPhones. Instead, Oswal wears a sober black-and-yellow T-shirt, corduroy pants, brown shoes and a Titan Edge watch. No jewellery. When he notices me look at his T-shirt he clarifies: “This is our company T-shirt. The staff wear casuals on Saturday, including me.” Oswal’s story starts from the village of Padru in Barmer near the Indo-Pak border, where his father was a grain trader. Despite always having the option of joining the family business, Oswal decided to first get a complete education and see what options the world had in store for him. “If things went bad, I could always go back and trade grain, no?” he says. It was while studying for chartered accountancy in Mumbai that Oswal met and befriended Raamdeo Agarwal, who stayed with him in the same hostel—Rajasthan Vidhyarthi Griha in Andheri. Agarwal, in Oswal’s words, was a hard-working fellow with a very bookish bent of mind. “He was always reading balance sheets and doing research and calculating numbers.” It was also around this time that Oswal discovered this “animal called the stock market”. Both friends immediately spotted an opportunity. After working with an audit firm for a while and then starting his own outfit, Oswal and Agarwal decided to try their hand at sub-broking themselves. Breaking into the Bombay Stock Exchange at the time was impossible. If it were not for some contacts that Agarwal had developed, Oswal remembers, they would have never made it. “The whole exchange was run by Gujaratis. The floor was full of Gujarati traders and all official circulars and documents were published in that language,” he says, smiling broadly. But partner Agarwal was able to get in touch with a broker who promised to get them a sub-broker’s position on the floor as soon as a position fell vacant. A few months later, the solitary sub-broker badge was made in the name of “Motilal Oswal”. The name of their enterprise has stuck ever since. While the waiter serves Oswal his coconut water and me my watermelon juice, I ask him about his equation with Agarwal—the pair has been together ever since 1987 when they met in their hostel. How is it possible for two people to work together for more than two decades? Have they ever thought of splitting up and going their separate ways? Without hesitation Oswal shakes his head: “No. Never. Raamdeo is now like family. I can’t think of him as anything less. We both have equal stakes in the company. It is actually something like a marriage now.” Oswal goes on to explain how, over the years, he and Raamdeo have demarcated their responsibilities. Raamdeo takes care of all the “finance stuff”—largely by heading a 40-member research team—while Oswal takes care of customers, human resources, operations and the franchise network. (Later, Oswal tells me that the company had nothing to do with a franchisee in Tiruppur who allegedly sent out text messages asking people to withdraw money from ICICI Bank. “We only tell our customers which stocks to buy or sell. Not what to do with their bank deposits”.) From their modest beginnings, the enterprise grew into a diversified company, with the latest additions being an investment bank in 2005—which involved poaching a team from Rabo India Finance Pvt. Ltd—and then a private equity fund in 2006. Today, the Motilal Oswal group has grown to 1,800 employees. When the waiter appears, we decide to share, without a glance at the menu, a rather domestic meal of rotis, yellow dal, two subzis and drink refills. And just as the waiter turns around, Oswal reminds him to also bring a plate of some cut cucumbers, tomatoes and carrots. As we break bread, I ask Oswal what he thinks of the current financial crisis. Did he have any inkling of the meltdown? I lean forward. “No idea whatsoever,” he says. “We did not expect this to happen at all. Who could have guessed that all these American banks would be so leveraged?” This candour is probably one reason he is not among the omniscient talking heads on business TV channels. He continues: “See…I don’t think anyone can speak with any authority on the stock markets. More than 80% of all the traders are speculators. Everyone is either greedy or afraid. Besides, if I speak with one channel, then everyone will begin to call you for quotes.” His explanation and criticism of the American financial system quickly segues into a discussion of his company’s two key principles: “Never speculate. Never borrow.” Oswal says that both partners try to uphold these beliefs in everything they do. From inception, he says, their idea was to sell their intellectual ability. “We always want to stay in an advisory capacity. Help other people invest money. If the American banks had stuck to their mandates, we would not be in this mess.” As our waiter assaults the tablecloth with an elaborate brass crumber, I ask him if he has ever contemplated changing the name of his company. “Many times. I used to think it sounded very unprofessional. But nobody lets me. Even Raamdeo and my senior team thinks that the brand recognition is too great. Once, we hired a branding consultant who also felt the same way.” And then, a moment later, he adds: “But then Goldman Sachs, Merrill Lynch, Morgan Stanley are all peoples’ names only, no? So, it’s not that bad…” Besides the occasional trip abroad with family, Oswal spends most of his free time catching up on his reading. He is an obsessive reader of self-help books—Og Mandino, Stephen Covey, Robin Sharma, et al.— and business books of the Jim Collins ilk. The Monk Who Sold His Ferrari was so good, he says, that he would wake up half an hour earlier than usual, at 5am, to get some extra time with the book before his daily yoga session. As we get up to leave after exchanging business cards, Oswal says he likes to email articles to friends and family. He skims my card for my email address and promises to include me on the list. “I send 12,000 emails every week in total!” he says with pride. As for parting wisdom on the markets, Oswal simply says: “Stay cool, yaar! And don’t speculate.” Three days later, I receive an email on “The Art of Letting Go”. It included several tips on successfully handling disappointment and betrayal. That could mean only one thing: Oswal had, indeed, added me to his list. Curriculum Vitae Motilal Oswal Born: 15 May 1962 Education: SPU Jain College, Falna, Rajasthan; Institute of Chartered Accountants, Mumbai Work Profile: Oswal briefly worked for an audit firm before starting his own accounting firm. He co-founded Motilal Oswal in 1989 Favourite Book: ‘The Ultimate Gift’ by Jim Stovall. Oswal liked it so much he bought 1,000 copies and distributed them among family, friends and employees First Impression: What people tell him when they meet him for the first time: “Mr Oswal, you don’t look old enough to have a company named after you!” Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 7:24 pm Tata Motors net falls; overseas fund-raising plans to be revisitedMumbai: Higher raw material costs and lower car sales took their toll on the net profit of Tata Motors Ltd, and the company said it is reconsidering plans to raise money in overseas markets in the backdrop of the ongoing global credit crisis. The company said net profit declined 34% in the second quarter ended September. Net profit in the quarter was Rs346 crore, or Rs8.17 a share, compared with Rs527 crore, or Rs12.43 a share a year ago, Tata Motors said in a release. The results, however, exceeded expectations: They topped a Rs261 crore median profit forecast in a Bloomberg survey of 11 analysts. The earnings don’t include Jaguar and Land Rover, which Tata bought from Ford Motor Co. for $2.4 billion (Rs11,832 crore) in June. Tata Motors’ spending on steel, aluminium and other materials rose 4.4 % last quarter after commodity prices gained, while seven-year-high interest rates and inflation sapped vehicle demand. Also See Blocked Wheels (Graphic) Chairman Ratan Tata aims to revive growth as the global credit crisis cuts demand for luxury vehicles and a plan to launch the world’s cheapest car in October has been delayed. “Demand is dying down,” said Jayesh Shroff, who helps manage the equivalent of $2.5 billion in equities at SBI Asset Management Co. Ltd in Mumbai. “It’s an environment where people don’t want to part with their money. The times are tough.” Tata Motors this month said it is ‘adjusting’ production of some models as vehicle demand slows in India Steel prices increased as much as 33% and rubber prices rose by 29% in the last quarter,according to Jinesh K. Gandhi, a Mumbai-based analyst at Motilal Oswal Securities Ltd. Forex loss The earnings were inflated by Rs429 crore of other income, which included profit from the sale of “long-term investments”, Tata Motors said without providing details. The company also registered a foreign exchange loss of Rs285 crore in the quarter compared with a gain of Rs30.85 crore in the year-ago period, the statement said. Sales of vehicle declined 1.1% during the quarter to 135,037 units, the statement said. Sales of cars and sport utility vehicles declined 7.3%, while commercial vehicle sales gained 4.4%. Sales revenue rose to Rs7,029 crore from Rs6,595 crore. “The automobile industry remains severely impacted with continued lack of financing and high interest rates,” Tata Motors said. “The quarter was also impacted by high input costs and the company is aggressively pursuing its cost reduction initiatives.” Share sale Tata Motors on 20 October closed a rights offering of shares aiming to raise Rs2,186 crore to partly fund the purchase of the luxury units. The issue was fully subscribed, chief financial officer C. Ramakrishnan told reporters. The rights issue, however, struggled due to a stock market slump and the offering was bailed out by the company’s promoters and underwriters. The company this month said it’s “adjusting” production of some models as vehicle demand slows in India. Industry-wide car sales fell in July and August for the first time in more than two and half years as expensive auto loan rates cut demand. Tata’s efforts to revive sales by selling the Tata Nano micro car for Rs100,000, set to be the world’s cheapest, were set back last month when the company had to stop construction of the car factory due to protest from farmers. The carmaker abandoned the factory in Singur in West Bengal and chose a new site in Gujarat to set up the Tata Nano factory. The car was to go on sale in the last quarter of this year. The company also said it will reconsider a plan to raise as much as $600 million from overseas markets due to the global credit crisis, Ramakrishnan said. Tata in May announced the plan to raise funds overseas to replace a $3 billion bridge loan it had taken to purchase the two UK-based units. Shares of Tata Motors rose 9.11% to close at Rs171.80 each on the Bombay Stock Exchange on a day when the exchange’s benchmark Sensex index gained 743.55 points or 8.22% to 9,788.06. The shares have lost 76.09% this year compared with the Sensex’s 52%. Reuters contributed to this story. Source: Home - Livemint.com | 31 Oct 2008 | 7:09 pm Suzlon reports group loss of Rs130 crore; sales up 33%The country’s biggest maker of wind turbines, Suzlon Energy Ltd, reported a group loss of Rs130 crore in the second quarter after currency fluctuations and expenses on turbine-blade failures in the US. Banks are comfortable dealing with us, because of our business model. Suzlon made a currency loss of Rs197 crore after restating its liability on convertible bonds. Restoration costs, including provisions and other warranty claims, from blade failures in the US and disruption of turbines in Dhule in Maharashtra increased to Rs47.8 crore in the quarter from Rs42.7 crore. The company this month suspended a rights offer to raise around Rs1,800 crore to buy an additional stake in REpower Systems AG after a slump in stock markets across the world. Suzlon has been dogged by concern that some of its equipment is faulty, which led to a drop in its shares this year. The stock declined 40% on October 24, the most since the company’s October 2005 listing, after a report of a broken blade in the US. Suzlon shares declined 3.8% to Rs44.40 at close in Mumbai. The stock has lost 89% so far this year. India’s benchmark sensitive index, which has declined 52% this year, advanced 8.2% on Friday. German wind turbine maker REpower Systems surged in Frankfurt trading after Suzlon said it may sell stakes to private equity firms to buy Martifer SGPS SA’s stake in the Hamburg-based company. Also See Winding Gains (Graphic) Suzlon’s results did not include subsidiaries such as Hansen Transmission, the gear box maker and REpower AG, the German subsidiary. Suzlon chief executive officer Tulsi Tanti spoke to Mint on his company’s plans. Edited excerpts: The rights issue has been dropped? Does Suzlon have a Plan B in place? If the conditions persist in the global market we will have to reduce our production as what we manufacture is a capital goods item. It is highly capital-intensive business and the wind turbine industry cannot hold stocks as inventory. You also have to fund the acquisition of REpower? We are financially healthy, our balance sheet is strong. Our net debt to equity ratio is below 1. In the next six months we will be making a repayment of €168 million (Rs1,055 crore). Are banks comfortable lending to you? Banks are comfortable dealing with us, because of our business model. We are vertically fully integrated. But in the stock markets, your share price among a few others have borne the brunt of the hammering. First of all, let me tell you my net worth is higher than the market capitalization of Suzlon Energy. So, this is not realistic. It is a extremely discounted valuation. Our three subsidiary companies’—SE Forge (recently IDFC’s private equity arm picked up a minority stake in this), Hansen Transmission and REpower (listed in London Stock Exchange and in Germany, respectively)—valuation is higher than the parent company’s. Risk assessment of our business by some of our investors is not what we have calculated. Two weeks ago, there was another blade crack in USA? The broken blade was found in a corn field. Such recurrences do not help your case. It is not recurring. The root cause analysis is going on. And we are completing this. During this period, we are continuously monitoring the Version 2 blades. Is it a design flaw? It is not a design flaw. There are no quality issues. It is because the required stiffness in the blade is not enough. The same blade made in earlier batches with the same composition and was tested and approved. (In) this particular lot of Version 2 blades, the stiffness was not enough. And it is not for all the blades only 100 blades out of 1,200 blades. feedback@livemint.com Thomas Kutty Abraham and Vipin Nair are with Bloomberg Graphics by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 31 Oct 2008 | 7:08 pm On the 7.27 from SrinagarSrinagar: The sleek red train speeds through a yellow-green landscape of harvested fields, neat stacks of straw, the Pir Panjal range and some fields of cannabis. Click here to watch video Kashmir Valley’s first train that was inaugurated by the Prime Minister on 11 October runs between Rajwansher and Anantnag, ferrying passengers on a 66km route, twice every day. The train has generated much excitement among locals and looks like the harbinger of greater things to come for the valley. As much a political statement as a development project, the train along with the gesture of opening up trade routes to Pakistan occupied Kashmir symbolizes the Congress-led United Progressive Alliance government’s efforts to tackle an entrenched sense of alienation among the valley’s people. “We protested for two months. I took part in those protests, but what came out of it? Nothing. About 50 people are dead. It was only a disruption to our normal lives,” says Yasir Altaf, a technician at a plywood factory in Anantnag, referring to the recent spate of separatist protests. He is among a growing number of people who have tasted the benefits of “development” and do not want to rewind to the period of political uncertainty. “This train is a boon to me, as I shuttle between Anantnag and Srinagar, where I live. I save on time and money.” The ticket on the first morning train from Srinagar to Anantnag costs Rs5. And on the day this reporter takes the train, reaches its destination in an hour, on time. By road, Altaf says, the journey takes an hour and a half and costs Rs175 for a return trip. Taxi drivers who previously benefited from the lack of options on this route say they have now been reduced to running feeder services. “Earlier, people used to run behind the Sumos (taxis, as the majority are Tata Sumo cars) shuttling between Srinagar and Anantnag for a place. Now, this business is pretty much over after the train services have started. We have started looking for work elsewhere,” says Yasir Ahmad, a taxi driver at the Srinagar station stand. The train itself is part of a larger project to connect Baramulla with Udhampur in Jammu, which, in turn, is connected with the pan-Indian rail network. The Badgam to Baramulla and Anantnag to Udhampur sections are still under construction. The entire project is expected to be completed by 2012. Also Read Stock and sale Large picture windows frame stunning scenery, installed LED tickers wait to announce station information when the project advances and reclining seats with foldable snack trays provide reasonable comfort—this train is more Delhi Metro than Indian Railways and may be a sign of things to come for rail travellers. As the train stops at Awantipora for a little more than three minutes, an old woman and a lady with her child walk towards the train from the fields, ducking under a broken fence on the way. It looks like they might miss the train. The army swoops into action—an army man in a black bandana, in charge of guarding the tracks, picks up the child and runs towards the train, while others delay departure. The day is saved for the women. This rail line is heavily guarded, with security personnel along the entire length of the track. The train itself is guarded by 20-25 security personnel from the Railway Protection Special Force, or RPSF. Overall, there is a sense among people that this train will bring positive changes to their lives, and many cannot wait for connectivity to the larger rail network. “This is my first time on this train, earlier I have been on a train to Ajmer. I think it is a good project and will bring employment,” says Abdul Mazeer Deva, a physical education teacher who is returning home after visiting his brother in Badgam. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 7:00 pm FM to talk credit growth at bank meetSoaring call rates, repo borrowing signal tighter liquidity again.Source: Business Standard | Front Page Headlines | 31 Oct 2008 | 6:55 pm PM to meet India Inc chiefs on MondayPrime Minister Manmohan Singh has invited top industry leaders for a meeting on Monday morning to discuss the current economic slowdown and seek their views.Source: Business Standard | Front Page Headlines | 31 Oct 2008 | 6:54 pm Cabinet okays Bill to raise FDI in insuranceAfter a four-year delay, the Union Cabinet today approved a Bill for comprehensive amendment of insurance laws, including a proposal to raise the foreign investment ceiling from 26 per cent to 49 perSource: Business Standard | Front Page Headlines | 31 Oct 2008 | 6:54 pm Hindalco Q2 net rises 12% to Rs720 croreMumbai: Hindalco Industries Ltd’s second quarter profit rose a better-than- expected 12%, boosted by higher metal prices and a weakening rupee that increased export earnings at India’s biggest aluminium producer. The company has tied up with 11 banks to refinance a $1 billion (Rs4,930 crore) loan taken to fund the purchase of Novelis Inc., chief financial officer Sunirmal Talukdar said. Deutsche Bank AG and three Japanese banks will be among the lenders to Hindalco, Talukdar said. Net profit rose to Rs720 crore in the three months ended 30 September from Rs640 crore a year earlier, the firm said on Friday in a statement to the Bombay Stock Exchange. Also See Lost Shine (Graphic) Five analysts surveyed by Bloomberg had estimated a median profit of Rs624 crore. Sales, including fees from smelting copper, rose 14% to Rs5,640 crore. The price of aluminium rose 17% on average in the period. Earnings may dip this quarter as demand from China, the biggest producer of the metal, wanes amid the global economic crisis and a deepening credit crunch, analyst Rakesh Arora said. “Things will get tougher for Hindalco as copper refining fees remain low and aluminium prices weaken,” said Arora, who has an “outperform” rating on the stock at Macquarie Group Ltd. Hindalco’s shares rose 13.26% to Rs60.20 each at close on the Bombay Stock Exchange. The shares have slumped almost 70% this year on concern the company’s borrowing costs will rise. Rival National Aluminium Co. Ltd said on Friday its profit this quarter rose marginally to Rs444 crore from Rs439 crore a year ago. Its revenue rose 12.36% to Rs1,654.5 crore. The firm had earlier warned of marginally lower profits unless aluminium rose to $2,200 a tonne on the London Metal Exchange. Aluminium for three-month delivery was trading at $2,052 a tonne in London. Hindalco needs funds to refinance a $1 billion loan taken to buy Novelis, the world’s largest maker of rolled aluminium products. It bought the company in February last year for $6 billion to expand and access US customers, including Coca-Cola Co. Hindalco said in June it will raise as much as $3 billion selling shares and bonds to repay the loan taken for the purchase. Hindalco, which floated a $1 billion rights offer this month, received only 17% demand, forcing the company’s owners and bankers to buy the remaining stock. Founders Aditya Birla Group and associated companies bought 39% of the offer, in line with their shareholding. The group will buy a further 10% and sale arrangers took 34% because of the poor response. Source: Home - Livemint.com | 31 Oct 2008 | 6:54 pm Sensex ends gloomy Oct with 744 pt jumpInvestors heaved a sigh of relief as October, the worst month for the benchmark indices, ended on a sparkling note.Source: Business Standard | Front Page Headlines | 31 Oct 2008 | 6:53 pm News, views, reviewsHelping run one of India’s hottest online travel start-ups means not just doing the daily stuff right but also keeping track of the latest developments in technology, marketing and the travel business. And especially in those specialist areas where all three meet. Thankfully, the Internet has enough content to satisfy even the most discerning specialist requirements. From legal information to cutting edge marketing insight, these are some of my favourite source points for news and information on the Internet:  Home page: Log on to MarketingSherpa for your research fix. news.google.com Google News is a great place to begin your day in the morning, catching up on news while sipping coffee. I really like their layout and the cool categorization of news based on interest and geography. The remarkably smart automatic news aggregator offers versions for several countries including India, which now also has Tamil, Telugu, Malayalam and Hindi avatars. www.law.com If you want to look up all things legal, law.com is the place to start. It does not cover Indian laws but since Indian legal philosophy is quite close to Western legal thought (specially in the domain of cyberlaws and e-commerce), it still serves as a nice reference site. The site also hosts a number of law blogs, legal sector news and, yes, fresh lawyer gossip. www.marketingsherpa.com A good site for “actionable” marketing ideas. MarketingSherpa is a marketing research firm that publishes reports accessible to the entire online community. While most of the content is open only to subscribers, there is a lot of free — and useful — content as well. Paid subscribers get access to case studies, surveys, research and frequent reports and handbooks on marketing. www.gigaom.com GigaOM is a superb blog for breaking news and incisive analysis in the tech space. Om Malik is a true pioneer in the blogosphere and I guess he really deserves the kudos that has come his way. The fact that he is an Indian makes it even better. Malik’s blog is a very serious player in the tech media scene and is co-authored by an experienced team of writers and journalists. www.hotelmarketing.com This 11-year-old website is a must-visit for anyone in the online travel domain. They aggregate travel-related news so one gets a pulse of the the industry. It’s also a great place to pick up ideas for Internet-based direct/social marketing professionals. Dharmendra Yashovardhan is chief operating officer of www.ixigo.com, a comprehensive travel search engine for Indian consumers that aggregates information on domestic flights, hotels and bus schedules. Ixigo will shortly expand to international flights and hotels. Write to lounge@livemint.com Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:48 pm A way out of the roomMost computer games are kinetic and forward-moving by nature, and don’t give the player enough time or motivation to stop and stare, look and notice or sit back and think. The genre of the “adventure game”, featuring masterpieces such as Funcom’s The Longest Journey or LucasArt’s Monkey Island series, tried this and met with uneven success.  Home page: Log on to MarketingSherpa for your research fix. Where, then, is the gaming equivalent of a meditative experience? The answer is up there, in the clouds of the Internet, in the smiling, beatific faces of online flash games. And not just any flash games, mind — we’re talking about the Room Escape. Room Escapes are a particularly odd breed of flash games: They’re calm and slow, and often unintrusive. Most are set in a single room, and end as soon as you find a way out. Some games use this basic structure to weave wonderful narratives and set pieces — a nuclear war survivor trying to leave his shelter, or an astronaut stuck in a seemingly desolate spaceship. Most exude a wonderful sense of atmosphere, and attempt to bring alive the time period or setting in which they’re based. Usually, the focus is solely on solving puzzles. Some favour an unsavoury variety of them called “pixel hunts”, requiring the player to examine every speck of dust on every wall to move forward. They’re gaming equivalents of an art film — beautiful artwork and imagery, but where are the explosions? In most cases you start in...well, a room. Sometimes, there’s a bit of exposition, a bit of backstory explaining how you got to the room. But usually, you’re just there, and just a few clicks away is the exit, usually locked or closed or barred or hermetically sealed. You move around by clicking at the edges of each screen; click on objects of interest to examine them or take a closer look. Some things you can pick up; These are then added to a bar on the bottom or top, your “inventory”, so to speak. Double-click on an object in your inventory, and you can take a closer look at it. Figuring out how to use these objects is a common puzzle tactic. Putting a chunk of metal on a wooden bar with a bit of glue, for example, makes a rudimentary hammer. Usually, the protagonist is silent, but there are room escapes with distinct characters. Other characters are rare and, even if present, usually have to be either rescued or woken up. The quality of puzzles ranges from the childishly simple to the fiendishly impossible. If you reach that point where you start combining everything you have with everything in the game, stop. Take a deep breath. Look at the locations carefully, examine everything, make sure whatever can be fiddled around with has been. Pay attention to visual cues. Always search for hidden spots — little gaps between the furniture, the space behind the strange gizmo. And if nothing else helps, swallow pride and google for the walk-through solution. These are some of our favourites: Mystery of Time and Space www.albartus.com/motas The game that kickstarted the Room Escape genre, from the very depths of time, back in 2002. Simplistic, compared to recent offerings, but worth playing for a blast from the past — also features multiple rooms! Gasp... The Fog Fall www.thefogfall.com Stunning, hand-drawn visuals, mechanical contraptions, excellent Cold War atmosphere and a few fiendish puzzles. Guest House http://terminalhouse.com A strange, oddly intriguing narrative, puzzles of the “make notes, lose sleep over solving complex codes” variety and blue aliens! Monster Basement http://godlimations.com/webfolder/monsterbasement.html A blend of survival horror and traditional Room Escape mechanics. A rumbling, edgy plot, some genuine scares and a wonderful sense of atmosphere. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:47 pm GVK Power & Infrastructure Q2 net profit plunges 23%Mumbai: GVK Power & Infrastructure reported a net profit of Rs30.47 crore for the second quarter ended 30 September, a decline of 22.88% from that in the corresponding period a year ago. The company had a net profit of Rs39.51 crore for the second quarter last fiscal, GVK Power & Infrastructure said in a filing to the Bombay Stock Exchange (BSE). Net sales rose to Rs109.49 crore for the quarter under review, from Rs96.05 crore for the same quarter quarter last year. For the half year ended 30 September, the company had a net profit of Rs71.02 crore, against Rs61.09 crore for the same period previous year. On the standalone basis GVK Power & Infrastructure posted a net profit of Rs4.76 crore, a 59% decline from Rs11.61 crore for the same period last fiscal. On 30 September, GVK Power & Infrastructure has divested the entire holding in GVK Aviation Private its wholly owned subsidiary, accordingly GVK Aviation Private is no longer a subsidiary of the company, the filing added. Shares of the GVK Power & Infrastructure closed steady at Rs11 on the BSE. Source: Home - Livemint.com | 31 Oct 2008 | 6:46 pm Not in public interestIt is quite curious. Just a week ago, science and technology minister Kapil Sibal acknowledged media and experts’ concerns and promised to review the flaws in a proposed new law. Yet, a cryptic official press release on Friday said the Union cabinet gave its approval to enact that very legislation —the public-funded R&D Bill, popularly known as the Indian Bayh Dole Act after its equally controversial US counterpart. So, the Bill is set to be tabled in Parliament without the official draft having been released and publicly debated. The sad significance of this stems from two factors. First, it is all about patenting output of research financed by public money. Second, it is strictly geared to exclusive licensing for commercial use of what could be crucial innovations for public health. The scientist will have no say here. So, CSIR would not have the power to repeat past decisions such as not patenting an antimalarial compound that could make a low-priced drug available. As we’ve argued before, this Bill needs to encourage open source and non-exclusive licensing, too. Yes, minister? Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:41 pm IOC posts Rs7047 crore loss, HPCL profits dipNew Delhi: India’s largest oil marketing and refining company, Indian Oil Corporation (IOC) posted a loss of Rs7047 crore in the second quarter due to reasons such as sale of fuel below cost, foreign exchange losses and inventory losses. Similarly, state-owned petroleum refiner and marketer Hindustan Petroleum Corporation Ltd (HPCL) posted a net loss of Rs 3,218.92 crore for the three months to September, swinging from a net profit of Rs853 crore in the year-ago period. This was due to high crude prices during the quarter and the firm’s inability to pass on the cost to consumers because of sales at government mandated rates. The government owned oil marketing companies including Bharat Petroleum Corporation Ltd (BPCL) posted an overall loss of Rs12891.19 crore for the second quarter of the year. IOC had posted a net profit of Rs3,818 crore in the three months ended 30 September last year, the state-owned company said. Turnover rose 46.5% to Rs79,528 crore from Rs54,292 crore a year earlier. “We may take a further hit on account of inventory losses,” said chairman Sarthak Behuria. “However, after a long time we will have a positive margin of around Rs4 on petrol sale from tomorrow based on the average crude price of second fortnight of October,” he added. IOC lost Rs3,578.95 crore due to foreign exchange variation and Rs12,271.03 crore as under recovery crore during April-September. Under-recovery is an industry term for selling refined petroleum products below the cost of buying crude oil. The losses were after including Rs14,473.54 crore subsidy sharing by upstream companies such as Oil and Natural Gas Corp and Oil India Ltd and Rs25,082.38 crore oil bonds from the government. IOC also stands to lose around Rs300 crore on account of easing the immediate financial concerns at loss-making domestic airlines by allowing them to square up in six equal instalments dues of Rs2,962 crore owed to state-run oil firms with no interest levied. In a related devlopment, the OMCs are expected to cut the jet fuel or aviation turbine fuel by Rs6,000 per kilo litre from midnight. Source: Home - Livemint.com | 31 Oct 2008 | 6:38 pm IOC, GAIL sign agreement for cracker complexIndian Oil Corp. Ltd and GAIL (India) Ltd Friday signed a memorandum of understanding for setting up a cracker complex at Barauni, in Bihar.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 6:33 pm Export duty on iron products, customs duty on ATF scrappedThe government has withdrawn export duty on certain iron and steel products and removed the basic customs duty on Aviation Turbine Fuel from Saturday.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 6:33 pm Wipro opens BPO centre in Brazil for Latin firmGlobal software major Wipro Ltd has set up a business process outsourcing (BPO) centre at Curitiba in Brazil to provide shared services to AmBev, the largest brewery in Latin America, the IT bellwether said here late Friday.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 6:32 pm Himachal Pradesh inks agreement with IT majorThe Himachal Pradesh government Friday signed an agreement with information technology (IT) major Samtech InfoNet Ltd for executing two projects in the state.Source: IndiaeNews.com: Business News | 31 Oct 2008 | 6:31 pm Ranbaxy loses Rs395 crore; Daiichi cuts profit forecastNew Delhi: Ranbaxy Laboratories Ltd, the Indian drugmaker controlled by Japan’s Daiichi Sankyo Co., posted a third-quarter loss on foreign-exchange fluctuations and a writedown of inventories because of a US import ban. The company made a loss of Rs395 crore in the three months ended 30 September compared with a profit of Rs 235 crore a year earlier, the company said. That compares with the Rs 19.75 crore median profit estimate of 10 analysts surveyed by Bloomberg. Earlier, Daiichi Sankyo Co., Japan’s third-biggest drugmaker, cut its annual profit forecast because of costs to buy control of India’s Ranbaxy Laboratories Ltd. and develop new medicines. Net profit will be 65 billion yen ($660 million) in the year ending March 31, 20 % less than expected, the Tokyo-based company said in a statement to the stock exchange today. Ranbaxy’s profit was crimped by a one-time writedown of the value of its foreign-currency convertible bonds as the Indian currency had its biggest quarterly decline in 16 years. Sales in the US, the world’s largest drug market, were hit as the US drug regulator blocked the import of more than 30 generic medicines made by Ranbaxy in India because of deficiencies in manufacturing processes. The Indian rupee fell 8.4% in the three months ended 30 September, its worst quarterly decline in more than 16 years, leading to a foreign-exchange loss of Rs 310 crore at Ranbaxy. The Indian currency dropped to 46.99 rupees against the dollar on 30 September compared with 39.84 rupees in the year earlier, a 15% decline. Ranbaxy posted a $73 million translation loss on its foreign currency debt because of the adverse movement of the rupee and wrote down the value of its inventories by $59 million after the U.S. import ban, Chief Executive Officer Malvinder Singh told reporters. US ban Sales rose 15% to Rs 1890 crore , less than the Rs 1990 crore rupee median estimate of analysts. The U.S. is probing whether Ranbaxy destroyed reports it was required to keep, falsified data and failed to meet quality- control specifications in manufacturing the generic drugs it sells. The Indian company has denied the allegations and has handed over documents sought by the government. In a separate move, the U.S. drug regulator on 16 September blocked the import of medicines made in two factories by Ranbaxy. The U.S. Food & Drug Administration said there was no evidence that Ranbaxy’s drugs were harmful. The Indian company has hired former New York City Mayor Rudolph Giuliani to help respond to the U.S. order. Sales in North America, the company’s biggest market, rose 9.2% to Rs 486 crore as sales in Canada more than doubled. U.S. revenue fell 7% to Rs 414 crore, Singh said. European sales rose 15% to Rs 365 crore. Acquisition plans Ranbaxy is planning to buy drug production facilities to supply to the U.S. market after the bar on imports from the Indian factories, Singh said. He declined to give more details. Ranbaxy fell 1.2% to Rs 168.75 each at close of Mumbai trading today. Earnings were announced after the market closed. Ranbaxy is challenging patents in the US, the world’s biggest drug market, because success will allow it to sell copies exclusively along with the patent holder for six months without generic competition. That’s when generic makers make the most money because prices plunge when rivals enter. In June, Ranbaxy agreed to keep copies of Pfizer’s cholesterol pill Lipitor off the U.S. market an extra 20 months, protecting $12 billion in sales for Pfizer. The agreement ensures that Ranbaxy can enter the market five years before patents on the process of making Lipitor expire without having to fight the issue in court. In Tokyo shares of Daiichi slumped the most in two weeks. They slumped 8.3% to 2,000 yen at the close in Tokyo, the steepest slump since 16 October The shares have declined 42% this year, versus a 24% drop in the MSCI World Health-Care Index of 113 companies. Ranbaxy is down 60%. “I want to see the earnings impact of the purchase,” Kenji Masuzoe, a Tokyo-based pharmaceutical analyst at Deutsche Bank AG, said by telephone. He rates the Daiichi stock “hold.” Kanoko Matsuyama in Tokyo contributed to this story. Source: Home - Livemint.com | 31 Oct 2008 | 6:28 pm Sensex nears 10,000; markets look to RBIMumbai: India’s bellwether stock index, the Bombay Stock Exchange’s (BSE) Sensex, soared towards the psychologically important 10,000 mark on Friday, powered by pent-up energy from traders who missed Thursday’s strong rally in Asian markets because Indian markets were closed on account of Bhai Dooj, a Hindu festival. The Sensex closed at 9,788, adding 8.22% or 743 points, but analysts said the rally will last if only the central bank steps in with aggressive support by cutting rates and releasing money into the system. After the recent spate of rate cuts by central banks across the globe, led by the US Federal Reserve, many more central banks are expected to announce rate cuts next week. This could see at least some of the funds parked in safe and liquid US treasury bonds coming back to Asian equity markets, according to global analysts. The allocation of such capital will favour those Asian markets where central banks are more focused on growth, these analysts add. Also See Fluctuating Trend (Graphic) Local brokerages and fund managers are hoping to see some support action by the Reserve Bank of India (RBI) in terms of a cut in its policy rate as well as cash reserve ratio (CRR) or the portion of deposits that commercial banks are required to keep with RBI. This expectation has increased with the overnight call money market rate shooting up sharply to at least 20% on Friday. The liquidity crunch in the financial system was evident as banks stashed cash ahead of a Rs10,000 crore government bond sale. RBI had earlier cancelled two bond auctions to stop draining liquidity. Apart from cutting its policy rate by 100 basis points, RBI slashed CRR by 250 basis points, releasing Rs1 trillion into the system, after overnight rates soared to 23% in the second week of October. The National Stock Exchange’s broader 50-stock Nifty index gained about 188 points or 7% to close at 2,885. The rupee also rose on Friday’s trade to 49.4 against the dollar, on expectations of some foreign funds buying local stocks. According to the provisional data of BSE, foreign institutional investors (FIIs) were net buyers of Rs1,237.21 crore as of today. So far this year, FIIs have pulled out $12.78 billion (Rs63,005 crore) from Indian equities after pumping $17.36 billion in 2007. US equities rallied on Thursday as credit worries eased, the economy shrank slower than expected and Exxon Mobil Corp. registered record quarterly profits. Earlier in the day, the US Fed’s rate cut and new credit swap lines with some Asian and South American economies drove up Asian markets. On Friday, the Dow Jones Industrial Average opened flat at 9,179.09 and was trading at 9,181.64 at 8.15 pm India time. Central banks in China, Hong Kong and Taiwan took their cue from the US Fed and cut interest rates. On Friday, Asia’s largest economy slashed a key interest rate by 20 basis points but the Bank of Japan’s measure fell short of market expectations, resulting in a 5% slump in the Nikkei. Other key markets such as China and Hong Kong also fell on Friday. Institutional investors and analysts are now expecting rate cuts in other regions and an announcement from the European Central Bank. Standard and Poor’s (S&P) Ratings Services’ affirmation of India’s long-term and short-term sovereign credit rating with a stable outlook on the former also contributed to Friday’s rally. The ratings reflect the country’s strong economic growth prospects and its deep government debt market, which helps accommodate its weak fiscal position. “India’s economic prospects remain strong with growth likely to average more than 7% in the medium term,” said S&P’s credit analyst Takahira Ogawa. “Underpinning that growth is the gradual deregulation of the industrial sector, continued trade liberalization, a dynamic service sector, and modest improvements in infrastructure.” “There is the potential positive news stemming from further coordinated interest rate cuts,” said Christopher Wood, chief strategist of CLSA Asia-Pacific Markets, in his research report on Thursday. With some Asian central banks taking an aggressive stance to support growth in their markets by cutting interest rates to combat deflation that is threatening the global financial system, institutional investors in Asia are allocating more capital to these markets. Mark Mathews, Merrill Lynch’s Asia strategist, is going overweight on countries such as Hong Kong, Australia and China, and expects to see in these the “largest rate cuts between now and the end of next year”. While many investors say that emerging markets equities are now witnessing irrational forced selling by Western investors scrambling to strengthen balance sheets and meet redemptions, according to Mathews, recent days have also revealed the soft underbelly of emerging markets, “with Iceland, Ukraine and Hungary going cap in hand to the IMF.” Many emerging markets including Brazil, Russia, India and China (Bric) markets are expected to continue being vulnerable to strong foreign portfolio capital outflow. “As recipients of large capital inflows in the past, the Brics are vulnerable to a capital pullback from developed countries,” said Thursday’s economic report by US-investment bank Goldman Sachs Group Inc. According to the report, China is the least vulnerable of the four countries owing to strong external reserves, a relatively better bank deposits:loan ratio, and a currency that does not appear to be misaligned. The vulnerability rankings of Asian countries by Merrill Lynch’s economics team indicates that currently India is the third most vulnerable in the region, next to South Korea and Indonesia. Reuters contributed to this story. Graphics by Ahmed Raza Khan / Mint Source: Home - Livemint.com | 31 Oct 2008 | 6:26 pm MNS chief may spell fresh trouble for CongressNew Delhi: Maharashtra Navnirman Sena, or MNS, chief Raj Thackeray’s fresh warnings against Chhat puja, the most popular festival of Bihar, and the recent attacks on north Indians in Mumbai have together posed the Congress party a new political challenge ahead of key state elections, including in Delhi —home to thousands of people from Bihar. The problem has compounded, with several allies in the ruling United Progressive Alliance (UPA) and Opposition parties accusing the Congress, which leads the coalition in Maharashtra, of not doing enough to reign in the MNS.  Against ‘tamasha’: A file photo of MNS chief Raj Thackeray in Mumbai. Shashank Parade / PTI “I have never opposed Chhat puja but only spoke against political tamasha (stunt) associated with it,” he said, adding that he would not tolerate disregard of the Marathi-speaking people in the state. Thackeray’s outbursts came a day after key ministers in the UPA government, including some from the Congress, had sought the Centre’s intervention to arrest the MNS chief under the National Security Act. The Congress allies—Bihar-based Rashtriya Janata Dal (RJD) and Lok Janshakti Party (LJP), and the Samajwadi Party (SP)—have been pressurizing it to advise the Maharashtra government for strong action against the violence against north Indians by the MNS. According to finance minister P. Chidambaram, Prime Minister Manmohan Singh has written a “strongly-worded letter” to the Maharashtra chief minister. MNS general secretary Shishir Shinde said in a telephone interview that the demand to arrest Thackeray was part of “politics of revenge”. “My leader has already asked whether Lalu Prasad was arrested when 1,200 murders took place during his chief ministership in Bihar. This is politics of revenge,” he said. Raj Thackeray, nephew of Shiv Sena supremo Bal Thackeray, broke away from the Shiv Sena when the former made his son Uddhav Thackeray the president of his party in 2005. Raj Thackeray’s MNS had grabbed attention when party workers attacked the Hindi-speaking people in Maharashtra. While some Congress leaders claim Thackeray’s emergence would create cracks in the support base of main opposition Shiv Sena in Maharashtra, other senior leaders say failure to protect Hindi-speaking people in the state would damage Congress’ prospects in the polls in Madhya Pradesh, Chhattisgarh, Rajasthan and Delhi. Bihar politicians expressed fear that there could be rise in attacks during Chhat puja—a ritual to worship the sun. It will be celebrated for three days beginning 2 November. The Bharatiya Janata Party (BJP), main rival of the Congress in the elections due by the end of the year in six states, and which shared power with Shiv Sena in Maharashtra from 1995-1999, alleged MNS’ activities were a “ploy” created by the Congress to divide Shiv Sena’s vote bank. “The Frankenstein created by the Congress out of Raj Thackeray to electoral benefit will boomerang,” said Prakash Javadekar, a BJP member of Parliament. “The Congress is committed to secularism and will do everything possible to see that secular programmes and rituals of all religion are conducted without disruptions,” said Gurudas Kamat, Maharashtra state Congress committee president. Taking exception to the LJP’s demand for the government’s dismissal, Kamat said, “Our allies, if they are genuine allies, should not make use of the opportunities to attack the party and the government.” However, some Congress leaders privately admitted that the Raj Thackeray-led violence against north Indians would benefit the state’s ruling coalition. Although there were efforts in the past to woo the around 15 million migrant population in Mumbai, the party also needs the Maratha support base. The community is a dominant political force. In the 2004 assembly elections, the Congress won 21.06% of votes, the NCP 18.75%, the BJP 13.67% and the Shiv Sena 19.97%. Sociologist Dipankar Gupta, a professor at the Jawaharlal Nehru University, said that Raj Thackeray turned from being a nobody to a hero, thanks to the Congress-NCP government. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:24 pm Govt scraps customs duty on aviation fuel, export duty on steelNew Delhi: In an attempt to bail out the aviation and steel industries, and keep its part of the bargain, the Congress-led United Progressive Alliance (UPA) scrapped the basic customs duty of 5% on jet fuel and withdrew the export duty on steel products, except scrap, on Friday. The government had earlier agreed to a rationalization of jet fuel duties if the country’s airlines did not resort to layoffs to protect their profits. The government is proactively seeking to mitigate the fallout of the international economic crisis on domestic companies. As part of this effort, Prime Minister Manmohan Singh has invited corporate leaders to a meeting on Monday. “Though there are no imports of ATF (aviation turbine fuel) and it is a freely priced petroleum product, the price of domestically produced ATF is based on import parity price factoring in the basic customs duty. The exemption would result in lowering of the base price of ATF and, consequently, lowering the incidence of excise duty and VAT (value-added tax), giving substantial relief to the aviation sector,” the finance ministry said in a statement. Jet fuel accounts for around 45-55% of the operating costs of airlines in India. Mint had reported on the government’s move to rationalize jet fuel and steel product levies on 17 October and 18 October, respectively. Oil marketers are expected to cut jet fuel price by Rs6,000 per kl. Together with the new duty structure, this would result in a further fall in its rate. “Though we have not calculated exact savings, we may reduce our cost by 6-7%,” said Parthasarathi Basu, chief financial officer, SpiceJet Ltd. “At this point of time we have no plans to review the fare structure or surcharge. First of all, we have to make profit,” said Wolfgang Prock-Schuaer, chief executive officer, Jet Airways (India) Ltd. Similarly, the government’s decision to withdraw export duties will make Indian steel exports more competitive internationally. It also replaced the 15% ad valorem (according to value) export duty on iron ore fines with a specific duty of Rs200 per tonne. Iron ore is traded in lumps or fines. The steel products include pig iron, iron and steel ingots, bars and rods, angles shapes, sections. The government also imposed a 5% customs duty on ferro-molybdenum and ferro-vanadium to protect the domestic industry. sanjiv.s@livemint.com P.R. Sanjai of Mint and PTI contributed to this story. Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:23 pm DLF misses forecast as dull market hurtsNew Delhi: DLF Ltd, India’s largest property firm by market value, posted a 4% decline in fiscal second quarter net profit on Friday on a slowing economy, higher construction costs and increased interest rates that reduced demand for new developments. The company’s net profit fell to Rs1,935 crore in the three months ended 30 September, from Rs2,018 crore a year earlier. Sales rose 15% to Rs3,744 crore, from Rs3,250 crore a year earlier. After five years of scorching growth, Indian developers are battling a slump in the real-estate market as a slowing economy, choppy financial markets and the rising cost of credit force buyers to put purchases of apartments and houses on hold. Banks have tightened lending to realty projects and buyers. “Real estate continues to face tight monetary conditions, which has had an impact on the sector,” said DLF, which has Rs14,000 crore of debt. “If restrictive conditions continue, we expect industry outlook to weaken further.” While the company may be able to protect its margins because of a decline in commodities, volumes may get hit because of the market conditions, the company said. “Reduction in construction costs with softening of raw material prices will help us maintain our product margins in challenging times,” Rajiv Singh, vice-chairman, said in a statement. “Our efforts are aimed at increasing liquidity and optimizing returns at acceptable levels through appropriate pricing of products offered across different product segments.” In the second quarter, DLF realized nearly 39% of revenue from a promoter-owned firm called DLF Assets Ltd, and the corresponding contribution to profit before tax was 47%. DLF Assets’ receivables during the quarter were Rs4,800 crore. Singh said DLF Assets would raise through a combination of debt and equity Rs5,000 crore by March next year. DLF Assets was to raise money through a planned overseas share sale that has been indefinitely postponed. Unitech Ltd , the country’s second-biggest listed property firm, was also due to report quarterly earnings on Friday, but hadn’t announced its results till the time this edition went to the press. Parsvnath Developers Ltd’s net profit declined 78.7% to Rs 21.90 crore on a 41% drop in revenue to Rs 226.35 crore. DLF’s earnings were short of analysts’ expectations. The company had been expected to report a net profit of Rs2,030 crore on sales of Rs4,030 crore, according to a Bloomberg survey of analysts. Shares of the firm, which declared the results after market hours, closed at Rs220.25 each on the Bombay Stock Exchange (BSE), up 8.8%. The stock has fallen 82% from the peak of Rs1,225 seen on 15 January. Unitech shares fell 3.71% to Rs48.05 on BSE. The stock is down 91% from its record close of Rs538.25 on 2 January. The 14-member BSE Realty index, which has declined 84.8% since 1 January,.closed up 2,30%. Bloomberg contributed to this story. Source: Home - Livemint.com | 31 Oct 2008 | 6:20 pm Sitting duckClick here to watch video Source: LatestNews-Home - Livemint.com | 31 Oct 2008 | 6:13 pm India Inc reluctant to spend on securityIndia Incs security is under threat. And this might well be because corporates are not willing to spend on security. India Inc\'s security concerns are being voiced loud and clear in these volatile times. But not much is being done to tackle them that\'s as per the latest figures released by International Data Corporation or IDC.Source: Moneycontrol Top Headlines | 31 Oct 2008 | 4:29 pm
|
