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No plan for third stimulus pkg at present: Eco SecyEconomic Affairs Secretary Ashok Chawla said the stimulus measures would boost the manufacturing sector, reports CNBCTV18. The focus is on reviving the manufacturing sector. The government will roll out fresh stimulus as and when needed, but is not mulling a third stimulus package as of now.\"Source: Moneycontrol Top Headlines | 9 Feb 2009 | 5:55 pm Yamaha\'s bikes create a splash, Bajaj goes on the defensiveThe world\'s second largest twowheeler maker Yamaha and India\'s second biggest bike maker Bajaj are in for some interesting competition. Even though they may be miles apart in sales, Bajaj is working on a new strategy to defend its position in the premium bike market and protect itself from the Japanese onslaught.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 4:00 pm Delisting postponed due to cash crunch: TTK PrestigeTT Jagannathan, Chairman, TTK Prestige informed CNBCTV18 that the company had shelved it plans to delist due to the current cash crunch that most companies were facing. He said this was only a temporary setback as of now and would look into delisting at a later point. He added that the company went in for delisting only with Sebis permission.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 3:49 pm Kalindee Rail to raise Rs 100cr through FCCB, GDR issueRD Sharma, Chairman and MD, Kalindee Rail Nirman, said the company is planning to raise Rs 100 crore through FCCB or GDR to fund its ongoing Delhi Metro project. Meanwhile, commenting on LT planning to increase its stake in Kalindee Rail, Sharma said these are rumours.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 3:45 pm Tata Capital\'s debenture issue: An analysisTata Capital\'s secured nonconvertible debentures hit the market on February 2. The issue, listed on the National Stock Exchange, is open till February 24. CNBCTV18\'s Haresh Soneji analyzes the offering.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 3:29 pm Tata Steel may face refinancing risk going ahead: SPYasmin Wirjawan, DirectorRatings, Standard Poor\'s, said Tata Steels liquidity is weak on a consolidated basis. The company could face significant refinancing risk considering the near term pressure on Tata Steel UKs financial covenants which involves about more than GBP 3 billion of debt.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 2:53 pm See 2730% YoY credit growth: Yes BankRana Kapoor of Yes Bank sees a pick up in loan demand starting January. He sees credit growth at 2730% yearonyear and 1112% quarteronquarter. He feels banks should refrain from consumer lending and plans to hold consumer lending at 0.15% of the total loan book. He added that there are no issues with regard to restructuring.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 2:45 pm Bhushan Power\'s Orissa Sponge open offer to cost Rs 125crBhushan Power Steel, an unlisted entity, is making an open offer for Orissa Sponge at Rs 300 per share while the current market price stands at Rs 157 per share. Sanjay Singhal of Bhushan Power said the company supports current management and sees synergies working with Orissa Sponge.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 2:36 pm GSK wants to buy Piramal Health for $1.5 bn: WSJGlaxosmithkline is in early stages of discussions to acquire Indian generic drug maker Piramal Healthcare for around USD 1.5 billion. On the other hand, Piramal Chairman has denied any such news.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 2:25 pm Govt okays levy of development fee by DIAL wef March 1e government has okayed a levy of a development fee by Delhi International Airport (DIAL) effective March 1 for 36 months only, reports CNBCTV18.Source: Moneycontrol Top Headlines | 9 Feb 2009 | 2:07 pm Founders pledge nearly 50 pct of Tata Tele equityMUMBAI (Reuters) - Tata Teleservices (Maharashtra) Ltd said on Monday its founders have pledged 942.8 million shares or 49.7 percent of its total equity capital.Source: Reuters: Money News | 9 Feb 2009 | 1:23 pm China warns India on banning toy importsBeijing: China today voiced “serious concern” to India over its blanket ban on importing Chinese toys, asking New Delhi to show “prudence”, since its intensive use of trade remedies could pose a “serious threat” to booming bilateral trade ties. “China hoped that India could show prudence and restraint in using trade remedies in the face of the global economic situation, as it could pose a threat to bilateral trade,” the Chinese Ministry of Commerce (MoC) said in a statement. The statement came after Chinese Deputy Commerce Minister Zhong Shan met Indian Ambassador to China Nirupama Rao here on 3 February here on the issue. Expressing “serious concern” over India’s intensive trade probes, the ministry said it hopes to avoid substantial impacts on bilateral trade. On 23 January, India announced a six-month ban on all imports of Chinese-made toys. The Indian commerce ministry has alerted the customs authorities to ensure that Chinese toys do not enter the Indian ports through a third-country route. Prohibition shall be applicable on all such toys that have originated from China, irrespective of the country of import. “Originated shall mean manufactured in China,” the Directorate General of Foreign Trade said in a directive to all commissioners of customs and the licensing authorities. Indian Commerce and Industry Minister Kamal Nath had said that the ban on Chinese toys was on grounds of public health and safety and the action was in consonance with the rules of the World Trade Organisation. MoC Spokesman Yao Jian said that during the bilateral consultation with Rao, Zhong expressed China’s concern on the issue and said it hoped to ease trade friction through discussion at both governmental and industry levels. Toy imports from China each year accounted for more than 50% of the retail market in India, with an estimated value of more than $500 million in 2007, according to the All India Toy Manufacturers Association. India launched 17 trade investigations into Chinese- made goods since October last year, involving products worth $1.5 billion. These included sodium nitrite, sodium carbonate and tyre, the official Xinhua news agency reported. Trade between China and its 10th largest trade partner, India, was up 34% at $51.78 billion last year, it said. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 1:18 pm Indian Bonds Drop Before Officials Meet Tomorrow on Borrowing - Bloomberg
Source: Google News India - Business | 9 Feb 2009 | 1:07 pm Key indices march higher; Nifty above 2900 - Economic Times
Source: Google News India - Business | 9 Feb 2009 | 1:06 pm Aspiring designers looking forward to design based reality showShruti Khare, a final year student of a course in fashion design and technology, is very happy because her dream of working with an established designer - and fame - is just a show away.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 1:00 pm Raju financed business of YSR's son: Chandrababu Naidu - Times of India
Source: Google News India - Business | 9 Feb 2009 | 12:59 pm Bond yields jump on borrowing concernsMumbai: The bond yields rose sharply on Monday as investors pared positions ahead of a meeting of government and Reserve Bank of India officials, expected on Tuesday, to finalize a schedule for extra borrowing. Economic affairs secretary Ashok Chawla said a cash and debt management group would meet to work out the funds needed for the remainder of the current 2008-09 fiscal year ending in March. The yield on the most traded 8.24% 2018 federal bond ended at 6.33%, after hitting a fresh one-week low of 6.13% in early trade. On Friday, it closed at 6.19%. The yield on the 2018 bond hit an eight-week high of 6.53% last week. It had touched an all-time low of 4.86% in January, after the apex bank cut rates aggressively. The RBI has already borrowed Rs620 billion above the budget estimate and will auction bonds for Rs80 billion more on Friday, completing the extra borrowing announced so far. It will also issue treasury bills worth Rs80 billion on Wednesday. Tuesday’s meeting will decide how much more the government would borrow after this week’s auction is out of way. “There was a need to borrow more due to higher expenditure and lower revenue receipt,” said Chawla, a senior official in the finance ministry. Suresh Tendulkar, the chairman of Prime Minister’s Economic Advisory Council, said the fiscal deficit situation was not comfortable and that it was the right time to end state subsidies on fuel prices. The federal government’s finances have deteriorated sharply in 2008/09, in part due to higher salaries for civil servants and a massive write off of loans held by small farmers. The fiscal packages announced in the wake of the global financial crisis to keep the economy from slowing too sharply have also increased the gap between revenue and spending. The RBI estimates the federal government fiscal deficit for 2008-09 at 5.9%, way above the budget estimate of 2.5%. Data released on Monday showed the economy is estimated to have expanded by 7.1% in 2008-09, its slowest pace in six years, compared with the previous year’s 9.0% growth. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 12:58 pm India's fiscal deficit not comfortable - PM adviser - Reuters India
Source: Google News India - Business | 9 Feb 2009 | 12:57 pm India's fiscal deficit not comfortable - PM adviserNEW DELHI (Reuters) - India's current fiscal deficit situation is not comfortable, a top economic adviser said on Monday, while adding the economy was expected to grow at least 7 percent in the 2009/10 fiscal year.Source: Reuters: Money News | 9 Feb 2009 | 12:48 pm Led by lenders, Sensex rises to a month’s highMumbai: The Bombay Stock Exchange’s (BSE) key index rose to the highest in a month on Monday, led by ICICI Bank Ltd and other lenders after the government forecast the economy will expand more than economists predicted and the central bank suggested interest rates may drop. ICICI Bank rose 5.2%, its highest in three weeks. HDFC Bank Ltd added 2.3%. Housing Development Finance Corp. Ltd (HDFC) added 5.7%, its biggest gain in two months. “We may see one more interest rate cut before March,” said Shashank Khade, who helps manage $400 million (nearly Rs1,950 crore) at Kotak Securities Ltd in Mumbai. The Sensex rose 283.03 points, or 3%, to 9,583.89, the highest since 7 January. The S&P CNX Nifty index on the National Stock Exchange (NSE) advanced 76.80 points, or 2.7%, to 2,919.90. Central bank governor D. Subbarao said on Sunday that there’s room to adjust interest rates further to spur the economy. Borrowing costs were left unchanged at the bank’s 27 January meeting, after they were lowered to a record in early January to shield India from the global slump. ICICI gained 5.2% to Rs428.35, its highest since 14 January. HDFC Bank added 2.3% to Rs919.45. HDFC rose 5.7% to Rs1,492.05, the most since 10 December. The share prices are composite of BSE and NSE rates. India’s economy may grow at the slowest pace since 2003 this year, probably expanding 7.1% in the year ending 31 March, the statistics office said in a statement in New Delhi on Monday. The median forecast of 24 economists in a Bloomberg survey was for a 6.8% gain. “We do have room for interest rate adjustments and we will make all adjustments as deemed appropriate,” Subbarao said at an event organized by the Malaysian central bank. He didn’t elaborate further. The economy will have a more difficult year in the 12 months ending March 2010, compared with expected growth of 7% in the current period, Subbarao told reporters in Kuala Lumpur. Oil and Natural Gas Corp. Ltd added Rs41.15, or 6%, to Rs724.40 after the stock was raised to “outperform” from “neutral” at Credit Suisse Group. Tata Steel Ltd gained Rs13.15, or 7.1%, to Rs199.65, the most since 10 December. The company said January sales increased 26% because of a rebound in demand. Source: Home - Livemint.com | 9 Feb 2009 | 12:48 pm RBI for restructuring of loans, says interest rates to fallRather than seeking relaxation in non-performing assets (NPA) norms, the banks might be given more time to restructure such loans.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 12:46 pm Weal and woe: Markets ride high, Satyam dips 3%Mumbai: Beleaguered firm Satyam Computer on Monday dipped nearly 3% on the bourses even as the market settled in a positive territory with benchmark index Sensex gaining 3.04%. Shares of Satyam on Monday settled with a drop of 2.74% at Rs 46.10 on the Bombay Stock Exchange. During the day the scrip remained volatile and tumbled touched an intra-day low of nearly 6% to Rs 44.60. “Momemtum is going down in the scrip after its expiry from the Futures and Options (F&O) segment. The initial euphoria of the scrip is gone as the investors are waiting for some buyback announcement or takeover offer,” Ashika Stock Brokers Research Head Paras Bothra said. On the National Stock Exchange, the scrip settled with a loss of 2.53% at Rs46.30. Over 3.75 crore shares changed hands on the bourses. The scrip has been on a downslide after the expiry of its January contract. The scrip which was trading at a high of Rs54.05 on 30 January has since then lost nearly 15%. The two prime bourses had removed Satyam from the F&O segment on 30 Januaryafter the BSE and NSE removed the scrip from their benchmark indices - Sensex and Nifty, respectively. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 12:46 pm Govt should end fuel price controls - PM adviserNEW DELHI (Reuters) - A top policy adviser in the Indian government said on Monday that state controls on fuel prices should end.Source: Reuters: Money News | 9 Feb 2009 | 12:45 pm RINL cuts production by 30% amid dip in demandState-run steel maker RINL has cut its production by nearly 30% due to slackening demand of the commodity from consuming sectors like automobile and manufacturing.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 12:44 pm Bhushan bros lock horns over acquiring stake in Orissa Sponge - Economic Times
Source: Google News India - Business | 9 Feb 2009 | 12:39 pm GDP growth projected at 7.1%!Amid financial meltdown, govt projected economic growth at 7.1 per cent in the curent fiscal.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Oil holds above USD 40 as stimulus, bank plans mulled!Oil prices hovered near USD 40 a barrel on Monday in Asia as investors weighed a massive stimulus package and a bank rescue plan from the US this week against soaring unemployment and falling demand for crude.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Jan car sales down by 3.2%, bikes by 5.8%!Domestic passenger car sales declined by 3.2 per cent in January 2009 to 110,212 units, from 113,894 units in the same month last year.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Sensex up 90 pts in opening trade!The Sensex on Monday opened higher by over 90 points in early trade on increased buying by funds.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Nissan to slash 20,000 jobs and sees annual loss!Nissan says it sank into a net loss for the fiscal third quarter and will cut 20,000 jobs, or 8.5 percent of its global work force, over the next year to cope with the global downturn.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm LG Elec to cut $2.2 bn costs!South Korea`s LG Electronics Inc aims to cut USD 2.2 billion in costs and expects about a 20 percent sales decline in dollar terms this year amid the spreading global recession, its chief executive said on Monday.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Obama to urge public on rescue plan!US Prez Barack Obama would take his case for a huge economic rescue plan directly to public.Source: Zee News : Business | 9 Feb 2009 | 12:37 pm Indian equity fund to raise $800 mn by MarchPrivate equity (PE) firm India Value Fund Advisors will complete raising around $800 million (about Rs.40 billion/Rs.4,000 crore) for the fourth series of its India Value Fund by next month, a partner of the company said here Monday.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 12:31 pm Air Passengers from Delhi to pay additional fee from March 1The government Monday approved additional fee of Rs.200 on all domestic passengers and Rs.1,300 per head on those going abroad from the airport in the national capital as access development charges to its developer.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 12:31 pm Barclays lands big profit; US rescue plans drag onLONDON/TOKYO (Reuters) - British bank Barclays booked a 6.1 billion pounds ($9 billion) profit on Monday while carmakers floundered, but investors focused squarely on the fate of a U.S. stimulus bill worth more than $800 billion.Source: Reuters: Money News | 9 Feb 2009 | 12:30 pm GDP prediction brings cheer to equities marketsIndian equities markets made smart gains Monday as the central government announced estimates of economic growth at 7.1 percent, higher than what was predicted by other agencies like the International Monetary Fund. A key index closed 3.04 percent higher than its previous close.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 12:30 pm India, Bangladesh sign trade deals, talk terrorDhaka: Bangladesh and India signed two deals on Monday to boost trade and discussed ways to prevent cross-border militant attacks, an official said. The pacts on bilateral trade and investment were signed after meetings between foreign ministers Pranab Mukherjee of India and Dipu Moni of Bangladesh. Mukherjee, on a short visit to Dhaka, said the deals would reduce the South Asian neighbours’ trade gap, which has soared to around $3 billion in favour of India. “I am aware of the trade imbalance. Every time we discuss, we try to explore possibilities as to how that gap can be reduced. Surely what is possible is to reduce the gap and keep it within manageable limit,” Mukherjee said. His Bangladeshi counterpart said the two sides had a “comprehensive discussion” on security issues, with Dhaka pledging not to allow its soil to be used by terror groups to attack India. Mukherjee is the highest-ranked foreign official to visit Bangladesh since Sheikh Hasina’s Awami League party won a landslide victory in Bangladesh’s general elections six weeks ago. Source: Home - Livemint.com | 9 Feb 2009 | 12:19 pm Indian rupee at 3-week highs as stocks rally - Reuters India
Source: Google News India - Business | 9 Feb 2009 | 12:16 pm Plane, presidential chopper avoid collision - Reuters India
Source: Google News India - Business | 9 Feb 2009 | 12:13 pm Rupee at 3-week highs as stocks rallyMumbai: As the Bombay Stock Exchange (BSE) Sensex surged 3% and prompted some banks to sell their dollar holdings, the rupee climbed to a three-week highs on Monday, while a marginally weaker dollar overseas also helped. The partially convertible rupee closed at Rs48.57/58 per dollar, 0.2% stronger than its previous close of Rs48.67/68. During the session it touched Rs48.56, its strongest since 19 January. “The market was very quiet today, there was not much happening, but some custodial banks sold dollars in late trade,” a senior dealer with a private bank said. Dealers said the rupee opened stronger on expectations of gains in shares, and stayed in a Rs48.56 to Rs48.65 band later. Domestic stock markets rallied 3% on Monday to their highest close in a month, as hopes for further stimulus were reinforced by official estimates showing the economy was expanding at its slowest pace in six years. The economy is expected to grow 7.1% in 2008-9, sharply lower than 9% last fiscal year, boosting hopes for interest rate cuts and other measures. A top official said growth could be helped if fiscal stimulus was sustained. The rupee’s fortunes in recent years have been largely driven by capital flows into and out of the economy. So far in 2009, foreign investors have sold about $1 billion worth of shares after selling more than $13 billion last year. Dealers said the dollar’s weakness against some currencies overseas also helped sentiment. The dollar index, a gauge of the US unit’s performance against the majors, was 0.2 % lower. One-month offshore non-deliverable forward contracts were at Rs48.61/71, weaker than the onshore spot rate. Source: Home - Livemint.com | 9 Feb 2009 | 12:11 pm RINL cuts production by 30% amid dip in demandBy PTI New Delhi: State-run steel maker RINL has cut its production by nearly 30%due to slackening demand of the commodity from consuming sectors like automobile and manufacturing, a top company official said today. “Our current level of production is restricted to 70% in view of the global financial crisis that has led to a dip in demand from automobile and manufacturing sectors,” RINL chairman and managing director P K Bishnoi told PTI. RINL, a mini-ratna PSU under the administrative control of the Steel Ministry, has an annual production capacity of about 3 million tonnes. Owing to the dip in demand over the months, the steel major is left with a huge 6 lakh tonnes of inventory worth about Rs1,800 crore. Bishnoi said the company managed to clear about 33% (2 lakh tonnes) of its stockpiles in January by way of “aggressive selling and foregoing the premium” that it used to charge on its products earlier. During April-January period of the current fiscal, the company’s saleable steel production stood at 2.35 million tonnes, which it claims is 93% above the planned target and 106% of the rated capacity. The company’s turnover for the ten-month period stood at Rs7,994 crore, up 2% compared to Rs7,827 crore of the corresponding period in the last financial year. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 12:11 pm Markets close in the greenIndian equities markets closed in the green Monday, with a key index gaining 3.04 percent over its previous close.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 12:01 pm Europe shares down, led by oils; Barclays soarsLondon: European stocks fell in early trade on Monday, dragged by oils which plunged on lower crude prices and by cautious sentiments ahead of the US economic stimulus package. By 0932 GMT, the pan-European FTSEurofirst 300 index of top shares was down 0.3% at 823.78 points after gaining 2% on Friday. Top aides to President Barack Obama on Sunday urged Democratic and Republican lawmakers to set aside political differences and quickly approve a massive economic stimulus package this week. The Democratic-led Senate, with the help of a few Republicans, will vote on Monday to end debate on an $827 billion rescue package and clear the way for its passage on Tuesday. “This week is very important because you’ve got the (G7) nations meeting at the end of the week, you’ve got the Obama bill going through, and you’ve got the second TARP proposal coming out,” said Justin Urquhart Stewart, director at Seven Investment Management. Energy stocks took the most points off the index as crude fell 0.6%. Britain’s BG Group lost 1.9% after it offered A$796 million ($538 million) for Australia’s Pure Energy, trumping a bid by Arrow Energy, in the latest deal in Australia’s coal seam gas sector as firms seek to boost their gas reserves. BP, Royal Dutch Shell and Total were down 1-1.9%. Across Europe, the FTSE 100 index was down 0.8%, Germany’s DAX was 0.7% lower and France’s CAC 40 was down 0.9%. Banks were also in the doldrums, but stocks within the sector were mixed. Britain’s Barclays soared 11.5% after reporting a 2008 profit of £6.1 billion, ahead of forecasts but down 14% on the year following 5.4 billion of charges on bad debts and other credit. Unicredit gained 2.2% after the group said the bank’s €3 billion of capital measures will be fully subscribed. Its advisers Mediobanca have obtained commitments from institutions to take up €500 million. HSBC was 1.3% lower after UBS said that it expects to build capital ratios via a dividend cut, and through an $11 billion rights issue or over-funding an acquisition. Automobiles rose after French newspapers said that French President Nicolas Sarkozy will announce that the government will lend around €6 billion on two carmakers to help them cope with the financial crisis. Renault and Peugeot were up 3.3% and 3.7% respectively. Investors also turned to defensive drugmakers. Roche, Sanofi-Aventis and Shire were up 0.4-1%. Source: Home - Livemint.com | 9 Feb 2009 | 12:01 pm Raju financed business of chief minister's son, alleges NaiduThe Satyam Computer Services fraud rocked the Andhra Pradesh assembly Monday with Leader of Opposition N. Chandrababu Naidu alleging that IT firm's former chairman B. Ramalinga Raju financed the business of Chief Minister Y.S. Rajasekhara Reddy's (YSR) son.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 12:00 pm Market extends gains; JP Associates, Tata Steel lead - Economic Times
Source: Google News India - Business | 9 Feb 2009 | 11:58 am Religion, terror shadow economy in election campaignsNew Delhi: India’s election campaign has effectively kicked off, with hawkish comments on Pakistan and demands a Hindu temple be built over a former mosque charging the political atmosphere. The Election Commission is still discussing the final election dates, although the polls must be held by May. That has not stopped India’s most powerful politicians from joining the fray in rallies that could set the tone of the campaign between the Congress-led government and the opposition Hindu-nationalist Bharatiya Janata Party (BJP). The elections come as Prime Minister Manmohan Singh battles a combination of an economic slowdown, higher consumer prices and jittery security after the militant attacks in India’s financial hub in November that killed 179 people. The head of ruling Congress party has upped the rhetoric against Pakistan in the past week as part of a campaign to show a tough stance on terrorism. India blames the Mumbai attacks on militants linked to Pakistan’s spy agency. “Those who are aiding and abetting terrorism from across the border will get a fitting reply,” Sonia Gandhi, told a party meeting at the weekend. Hundreds of BJP leaders met in Nagpur at the weekend, making headlines after senior leader Rajnath Singh said the party would push for the construction of a temple that has been a flashpoint of tension between Hindus and Muslims. The BJP had sought the construction of a Ram temple in Ayodhya on the site of a 16th century mosque torn down by mobs in 1992. They were forced to abandon plans during their last 1999-2004 government after opposition from secular allies. The religious crowd Hindu hardliners say the mosque was built by Muslim invaders after destroying a Ram temple on the site of the Hindu god’s birth. About 3,000 people were killed after Hindu mobs destroyed the mosque in some of India’s worst Hindu-Muslim riots. Rajnath Singh’s speech was later played down by BJP’s prime ministerial candidate L K Advani, but the message highlighted what may become more common in the campaign - the playing of the Hindu religious card by the party to win voters and energise its grassroots supporters. The Pakistan and the Hindu religious cards have so far overshadowed the slowing economy, one of voters’ major worries. Economic growth is expected to slow to 7% in 2009, and hundreds of thousands of jobs may be lost in the export sector. “Given the problems of the economy, the platform of Congress is going to be national security,” said political analyst Mahesh Rangarajan. “For the BJP it’s going to be Ram. Their leaders don’t seem to know how to fire up voters over the economy.” The BJP has also slammed Rahul Gandhi, the 38-year-old heir to the family dynasty, who is seen by many as a potential prime minister capable of infusing Indian politics with young blood. Election posters have started to appear on streets featuring portraits of Rahul Gandhi showcasing his youth. Narendra Modi, chief minister of Gujarat and touted as a future BJP leader, attacked Gandhi’s family connections. It was a sign how the BJP may see Gandhi’s age as a threat to the 81-year-old Advani. “The conspiracy to promote one family’s past threatens the future of the country,” Modi was quoted as saying by The Indian Express. Source: Home - Livemint.com | 9 Feb 2009 | 11:56 am Job losses in India may rise in coming months: CitiAccording to a latest report by Citigroup, the country does not appear to have remain unscathed from the massive layoffs witnessed worldwide.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 11:54 am ANALYSIS - What the stimulus battle tells us about ObamaWASHINGTON (Reuters) - President Barack Obama showed he is willing to cast aside talk of bipartisanship and flex Democratic muscle to push opposition Republicans out of the way in the battle over a U.S. economic stimulus.Source: Reuters: Money News | 9 Feb 2009 | 11:50 am BEML bags Rs 1672 cr order from Bangalore Metro - Hindu Business Line
Source: Google News India - Business | 9 Feb 2009 | 11:49 am H1B visa curbs: IT outsourcing cos 'seemingly' not impacted - Hindu Business Line
Source: Google News India - Business | 9 Feb 2009 | 11:48 am Sukhoi opens office in New Delhi for fifth generation jetsMoscow: Ahead of the signing of a contract for the joint development of fifth generation fighter aircraft (FGFA), the leading Russian manufacturer Sukhoi has opened its office in the Indian capital. “India and Russia are to shortly sign the general contract for the joint development of fifth generation fighter and the New Delhi office will facilitate speedy implementation of the project,” Sukhoi CEO Mikhail Pogosyan said. The FGFA based on Sukhoi’s secret PAKFA project is expected to make its maiden flight later this year. This will be the second major Indo-Russian joint venture after the supersonic cruise missile BrahMos. In October 2007, India and Russia signed the FGFA agreement under which keeping in view the Indian Air Force’s specific requirements a lighter version would be developed for India. Indian experts will take part in all the developmental stages, including the development of new generation weapon systems for the combat aircraft. In the fifth generation fighter aircraft, Russia and Indian would invest 50% each. Though yet no final cost figures have been made public, the joint venture project is estimated to cost over $5 billions. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:47 am IT cos ‘seemingly’ not impacted by H1B visa curbs: NasscomNew Delhi: Information technology companies can take a breather as the US Senate vote for imposing stringent conditions on the hiring of H1B visa workers by the American firms receiving Federal bailouts would not hit them. “From the reading of the provisions, it seems the impact is only on the people directly employed by the Troubled Asset Relief Program (TARP) companies. Outsourcing firms including those from India are seemingly not impacted,” Nasscom president Som Mittal told PTI. The amendment Bill is yet to go through reconciliation in the House before it is enacted, he said. None of the top Indian IT companies commented on the possible impact of the decision on them. He said a Nasscom delegation which will visit the US to meet customers, analysts, Government officials is going to raise the issue to state how protectionism is not good for the global world. Mittal said, G-20 has already endorsed that protectionism is detrimental. Referring to the amendment, he added that it means the US companies that are receiving ‘Troubled Asset Relief Program´ funds will be deemed to be H1B visa dependent. Of the total workforce if 15% staff carry H1B visa then they can be said ‘dependent´. Source: Tech News - Livemint.com | 9 Feb 2009 | 11:39 am Hyundai launches new VernaNew Delhi: Country’s second largest car maker Hyundai Motor India Ltd (HMIL) on Monday launched its mid-size sedan-- Verna -- with some additional features, priced between Rs6.38 lakh and Rs8.65 lakh (ex-showroom, Delhi). “Hyundai Verna is a proven success in India and the new variant which also comes with an automatic transmission -- a first for this segment will further enhance customer delight and satisfaction,” HMIL managing director H.S. Lheem said in a statement. Besides launching an automatic transmission version in diesel, HMIL has launched the car in both petrol and diesel variants, which would come with additional features, including aerodynamic exteriors, full wheel cover, ABS and advanced audio system. Verna was launched in India in September 2006 with both petrol and diesel engine. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:39 am IT cos ‘seemingly’ not impacted by H1B visa curbs: NasscomNew Delhi: Information technology companies can take a breather as the US Senate vote for imposing stringent conditions on the hiring of H1B visa workers by the American firms receiving Federal bailouts would not hit them. “From the reading of the provisions, it seems the impact is only on the people directly employed by the Troubled Asset Relief Program (TARP) companies. Outsourcing firms including those from India are seemingly not impacted,” Nasscom president Som Mittal told PTI. The amendment Bill is yet to go through reconciliation in the House before it is enacted, he said. None of the top Indian IT companies commented on the possible impact of the decision on them. He said a Nasscom delegation which will visit the US to meet customers, analysts, Government officials is going to raise the issue to state how protectionism is not good for the global world. Mittal said, G-20 has already endorsed that protectionism is detrimental. Referring to the amendment, he added that it means the US companies that are receiving ‘Troubled Asset Relief Program´ funds will be deemed to be H1B visa dependent. Of the total workforce if 15% staff carry H1B visa then they can be said ‘dependent´. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:39 am BSE Sensex rallies 3 pct on stimulus hopesMUMBAI (Reuters) – The BSE Sensex rallied 3 percent on Monday to its highest close in a month, as hopes for stimulus plan was reinforced after official estimates showed the economy was expanding at its slowest pace in six years.Source: Reuters: Money News | 9 Feb 2009 | 11:34 am France to unveil $7.7 bn automakers aid measuresParis: France is set to unveil details of a plan to support its ailing car industry later on Monday, as both Renault and PSA Peugeot Citroen are set to announce weak 2008 results later this week, President Nicolas Sarkozy will meet the heads of the car firms and the prime minister on Monday. The French carmakers employ many thousand of workers in France and jobs and factories are at risk due to the global credit crisis that has pulled car sales down sharply. French newspapers said Sarkozy will announce on Monday that the government will lend around €6 billion ($7.7 billion) to two carmakers to help them cope with the financial crisis. The credit would be extended on the basis of preferential rates to Renault and Peugeot Citroen, French daily Le Figaro said, without citing a source, on the front page of its Monday edition. A spokesman for Renault declined to comment. The shares of the companies rose on the expected plan, with Peugeot adding 3.7% and Renault 1.35%. Each of the companies would receive €3 billion, daily Les Echos reported, also in its Monday edition. In exchange, Renault head Carlos Ghosn and PSA chief executive Christian Streiff would commit to keeping all of their production sites in France running and safeguarding jobs, according to Le Figaro. The French government had said it would pump up to €6 billion of aid into the embattled auto industry and stressed that car firms would have to pledge to protect French jobs and scrap bosses’ bonuses in return. On Monday, Renault’s alliance partner Nissan Motor Co announced 20,000 job cuts by March 2010 and said it expected to report its first annual loss for 14 years. Car sales have plummeted as the credit crunch and the worsening economic climate put the brakes on consumer spending. Blighted by stretched cash flow and bloated inventories, industry watchers have forecast a wave of consolidation in the European automobile sector. Major European automakers have already trimmed their full-year earnings targets to reflect the deteriorating outlook and analysts say they may still miss these lowered objectives. Peugeot has been silent on its strategy, raising the prospect that it may not survive the worsening car sector crisis in its current form. The car manufacturer, which is number two in terms of sales in Europe behind Germany’s Volkswagen AG, has faced a string of difficulties in recent months and more bad news is expected as economic conditions deteriorate. Peugeot and Renault are due to report full-year results on 11 February and 12 respectively. Both have already reported a slump in full-year unit sales and cut profitability targets. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:31 am British business sees tighter credit squeeze: surveyLondon: British businesses feel the credit squeeze is tightening and conditions will worsen without action by the government, a new survey of lending to industry found on Monday. The Confederation of British Industry, the main body representing employers, has set up a new survey called “Access to Finance” to monitor the flow of credit to businesses. It found that 63% of British businesses believed their access to credit had worsened in the last three months, and that 59% of them expected the squeeze to get tighter in the next few months. Among big businesses surveyed, 82% said their access to credit had become more difficult in the last three months and 94% of those which negotiated new credit reported the interest rates charged had risen. Among smaller firms, 60% of those seeking new credit reported a rise in the charge. The survey also showed that 37% of businesses had cut jobs in the last three months because of problems connected with the availability of credit, and that they continued to encounter problems in insuring trade. The director general of the industry body, Richard Lambert, said: “We have urged the government to move as quickly as possible to set out when the various support packages to tackle the credit crunch will come into effect, and to implement them quickly.” The British government, in common with governments and central banks in other leading industrialized countries, has launched crisis measures not only to relieve the financial sector of some of its most crippling problems, but also to ensure that banks continue to lend to businesses on normal terms. These measures are part of wide-ranging programmes to combat the economic downturn caused by the financial crisis and prevent recession from turning into depression. In the last quarter of last year, the British economy contracted by 1.5% to mark the sharpest slowdown since 1980. The survey of 131 businesses was carried out between 14 and 22 January. “This survey clearly shows that obtaining investment capital is the most challenging and that the credit crunch is affecting firms’ ability to operate,” the confederation’s chief economic adviser Ian McCafferty commented. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:27 am Australian fire zone a crime scene; 131 killedWhittlesea: Suspicions that some of Australia’s worst wildfires ever were deliberately set led police to declare crime scenes in incinerated towns on Monday, and a clearly emotional prime minister likened the alleged arson to mass murder. The death toll stood at 131. The scale of the carnage, growing daily, has shocked a nation that endures deadly firestorms every few years. There were no quick answers, but officials said panic and the freight-train speed of the firefront probably accounted for the unusually high toll. Prime Minister Kevin Rudd, visibly upset during a television interview, reflected the country’s disgust at the idea that arsonists may have set some of the 400 fires that devastated Victoria state, or helped them jump containment lines. “What do you say about anyone like that?” Rudd said. “There’s no words to describe it, other than it’s mass murder.” The country’s top law officer, Attorney General Robert McClelland, said that people found to have deliberately set fires could face murder charges. Murder can carry a life sentence. More than one dozen fires still burned uncontrollably across the state, though conditions were much cooler than on Saturday, which saw record-high heat and winds of up to 60 mph (100 kph). At least 750 homes were destroyed on Saturday, the Victoria Country Fire Service said. Some 2,200 kilometers of land were burned out. Officials said both the tolls of human life and property would almost certainly rise as they reached deeper into the disaster zone, and forecasters said temperatures would rise again later in the week, posing a risk of further flare-ups. More than 4,000 people registered themselves with the Australian Red Cross, which posted lists of names at some 20 emergency relief centers, the agency said. At one such center in Wittlesea, 12 kilometers from Kinglake, survivors scoured the lists looking for missing relatives. Victoria Police Commissioner Christine Nixon said investigators had strong suspicions that at least one of the deadly blazes known as the Churchill fire after a ruined town was deliberately set. And it could not be ruled out for other fires. Nixon said the investigation would be long and complex, and cautioned against jumping to conclusions. John Handmer, a wildfire safety expert at the Royal Melbourne Institute of Technology, said research had shown that people in the path of a blaze must get out early or stay inside until the worst has past. Even if a house is set ablaze, it will burn more slowly and with less intensity that a wildfire and residents have a better chance of escape, he said. Extraordinary survival tales were also told. Jack Barber described how he fled his house in Pheasant Creek near Kinglake with his wife and spent Saturday night on a sports field dodging flames that licked at them from different directions as wind gusts blew around. They drove out of the disaster zone to Wittlesea on Sunday. “There were dead horses, live horses, kangaroos bouncing down the road with flames at their back. It was horrific,” Barber said. Daryl Hogan of Wandong, 20 kilometers north of Wittlesea, said he leapt into his pool to escape the flames as they roared over his house, leaving it unscarred but razing the neighbor’s. Nine Network television reported that one woman, Nesh Sinclair, sheltered with her children in the burrow of a wombat as the worst of the fire passed. Victoria state Premier John Brumby on Monday announced a royal commission would be held. A royal commission is among the highest-level investigations that can be called under Australian law. Usually, a former judge is appointed to take extensive evidence and make formal findings that can lead to charges or changes in the law. Blazes have been burning for weeks across several states in southern Australia. A long-running drought in the south the worst in a century had left forests extra dry and Saturday’s fire conditions in Victoria were said to be the worst ever in Australia. In New South Wales state on Monday, a 31-year-old man appeared in court charged with arson in connection to a wildfire that burned north of Sydney at the weekend. No loss of life was reported there. He faces up to 10 years in prison. Source: LatestNews-Home - Livemint.com | 9 Feb 2009 | 11:23 am Govt sees growth at 6-year low, sparks rate hopesNEW DELHI (Reuters) – The government predicted on Monday that economic growth would slow to a six-year low in the current fiscal year, boosting expectations for more interest rate cuts as a top official pointed to sustained stimulus measures.Source: Reuters: Money News | 9 Feb 2009 | 11:22 am Slower GDP at 7.1% for FY’09 could soften ratesNew Delhi: India’s economy is expected to expand by 7.1% in 2008-09, slower than last year’s 9%, as the global financial crisis hammered manufacturing, financial services and farm sector output. Mining and other services may, however, act as a prop to the economy, say the estimates released today by the Central Statistical Organisation. Whether or not growth will slow down further next year would depend on continuation of fiscal stimulus, Planning Commission Deputy Chairman Montek Singh Ahluwalia said. “We can continue the fiscal stimulus in the next year. It can be done as part of the full budget...In my view there would be a continuing need for fiscal stimulus and I hope we can do that,” he said. Farm sector output is projected to grow by 2.6% in FY’09, slower than last year’s 4.9%, manufacturing by 4.1%, down from 8.2%, construction by 6.5% against last year’s 10.1% and financing, insurance, real estate, business services by 8.6% against 11.7%. Commenting on the outlook for the Indian economy, Ahluwalia said, “The Indian economy should not be slowing down like the rest of the world.” The estimates match the one projected by the Prime Minister’s Economic Advisory Council and are a tad higher than what the Reserve Bank has estimated. Commenting on the outlook for the Indian economy, Ahluwalia said, “The Indian economy should not be slowing down like the rest of the world.” The estimates are identical to the one projected by the Prime Minister’s Economic Advisory Council and a tad higher than what the Reserve Bank has forecast. “The possibility of agriculture figures revising is there. There will be some upward revision in the agriculture figures. There is possibility that there will be some downward revision in services,” HDFC Bank chief economist Abheek Barua said. Already, exports have taken a knock and so have jobs tied to the sector. Commerce Secretary G K Pillai had earlier this month, quoting various estimates, said that about 1.5 million people employed in export sector would be out of jobs by March this year. The country’s total national income is likely to be Rs29,61,249 crore in the current fiscal, showing a rise of 7.1%. Although the Gross Domestic Product (GDP) growth rate during the current fiscal is estimated to drop, per capita income is expected to soar by Rs4,801 to Rs38,084. Per capita income, which is an important indicator of economic development of a nation, was Rs18,885 during 2002-03. GDP numbers exude optimism; indications of softening rates: FS Finance Secretary Arun Ramanathan said there are indications of softening interest rates. “There is room for optimism. That is what (GDP) numbers indicate,” Ramanathan told reporters here. When asked whether interest rates would soften, he said indications are there. Queried on whether banks would cut interest rates, he said that is for bankers to decide. “Let us see,” he said when asked whether PSU banks would further cut interest rates as they have been aggressive in doing so. Source: Home - Livemint.com | 9 Feb 2009 | 11:15 am Jet to phase out some expat pilots; not to fill other vacanciesThe country's largest private airline, Jet Airways, has firmed up plans to "phase out" some of its expatriate pilots and not fill other vacant positions.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 11:06 am CPI-M ministers meet to work towards rural developmentThe Communist Party of India-Marxist (CPI-M) ministers in West Bengal met here Monday to discuss ways to strengthen coordination between state government departments and to focus on rural development.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 11:01 am IAF to showcase vintage aircraft at Aero IndiaAmidst the thunderous din of the modern-day supersonic fighter jets at Aero India 2009 beginning here Wednesday, aviation enthusiasts will also be able to savour a slice from the glorious past of the Indian Air Force (IAF).Source: IndiaeNews.com: Business News | 9 Feb 2009 | 11:00 am May sell stake but no declaration of bankruptcy: SubhikshaNew Delhi: Cash-strapped retail chain Subhiksha Trading Services on Monday ruled out declaring bankruptcy and said it may consider selling stake to raise funds as it struggles to arrange Rs300 crore to meet immediate operational requirements. The company is currently undergoing a corporate debt restructuring (CDR) exercise with lenders reviewing its books. “No, not at all, as that (declaring bankruptcy) is not a solution. We have a viable business which is cash-starved and CDR will help us revive this,” Subhiksha Trading Services managing director said. He said the company, which has a total debt of around Rs750 crore, may have to look to the equity route to raise money in order to find cash for preventing the company from stopping its operations. “If there is no money, we can’t run operations but if there is no debt, we have to look at options like equity,” he said. The company’s lenders, including 12 foreign and Indian private sectors banks, have sought a review of its balance sheet to speed up fund raising process. “As part of CDR, the banks would need to get a current balance sheet rather than a 31 March 2008 balance sheet and they also want to ensure that events of the kind that happened in the last three-four months do not recur,” he said. The company would be able to raise Rs300 crore, required for meeting operational expenses, only after completion of the CDR process, managing director R. Subramanian said. “We are coordinating this review as this helps us as well...We are wholly part and parcel of this review and the idea is to ensure that the revival plan (for the company) is well crafted with learnings from the review,” he said. The company’s accounts are audited till 31 March 2008, and a review would take into account the period after it. On the issue of payment of employees and property owners, he said the company was “trying for emergency cash”. Subhiksha’s operations have come to a standstill for the past few weeks due to non-payment of employees salaries, huge debt burden and arrears to suppliers, and the company is seeking liquidity infusion to the tune of Rs300 crore to revive its operations. In many parts of the country, the company’s stores and warehouses have been subjected to vandalisation and ransacking by unidentified elements for the past one week. Subhiksha had expressed helplessness in the matter saying non-payment of dues to security agencies have left its assets unguarded and vulnerable. Subramanian said the company is taking steps to protect its stores and assets but it has been crippled due to shortage of staff. Source: Home - Livemint.com | 9 Feb 2009 | 10:53 am India's GDP expansion to be slower at 7.1% in FY'09India's economy is expected to expand by 7.1% in 2008-09, as the global financial crisis hammered manufacturing, financial services and farm sector output.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 10:50 am Satyam to announce long-term plan next week - chairmanNEW DELHI (Reuters) - The board of Satyam Computer will decide on a long-term action plan by next week, including a possible sale of the company, its chairman said, as the fraud-marred outsourcer struggles for survival.Source: Reuters: Money News | 9 Feb 2009 | 10:31 am Air India flight, military chopper in near collision scareNearly 170 passengers and 10 crew members of an Air India flight had a close shave Monday when a military chopper came in its path just as the passenger jet was about to take-off. The helicopter was part of President Pratibha Patil's entourage, an Air India spokesperson said.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 10:31 am Rajus pledged entire stake to lenders, says Maytas InfraMaytas Infra said that three of its promoters, including the Rajus, have pledged their entire holding of 15.14% in the company to lenders.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 10:27 am Slowdown hits China toy export, half of companies wiped outShrinking markets amid the global meltdown have forced nearly half of China's toy companies, the world's largest sellers, to down shutters, media report said.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 10:23 am Bharat Heavy Electricals wins orders worth Rs.70 bnState-run engineering and manufacturing major Bharat Heavy Electricals Ltd (BHEL) has won four contracts worth Rs.70 billion (Rs.7,000 crore) for the supply and installation of electrical equipment for thermal power projects, the company announced Monday.Source: IndiaeNews.com: Business News | 9 Feb 2009 | 9:33 am Speed thrill for auto exports, rise 63%New Delhi: Carmakers may have failed to enthuse domestic customers but the thrust of many global auto majors making India an export hub has led to a rise of 63.01% in passenger car sales in the overseas markets during April-January period of the current financial year. Exports of passenger cars during the 10-month period of the fiscal stood at 271,999 units compared with 166,859 units in the year-ago period, according to the Society of Indian Automobile Manufacturers (Siam). For the month of January, car exports from India grew by 12.49% to 21,530 units against 19,140 units in January last year. This is in contrast with a 3.23% sales dip in the country, which stood at 110,212 units compared with 113,894 units in the year-ago period. The export growth in the 10-month period is led by Hyundai Motor India, followed by others like Maruti Suzuki India, Mahindra Renault, Fiat India Automobiles, General Motors India and Honda Siel Cars India. The country’s largest car exporter, Hyundai Motor India’s, exports increased by 91.13% in the current fiscal to 214,900 units against 1,12,439 units in the corresponding period last fiscal. However, as the global slowdown started hitting, HMIL had said 25% of its export had gone down since December. In January it had exported 21,015 units against 24,296 units in the same month last year. It had earlier spoken about lesser orders for February and March at 11,000 units and 4,000 units, respectively. Maruti Suzuki India also pushed forward its overseas sales by 16.6% to 48,689 units from 41,756 units during the period under review, Siam said. Honda Siel Cars India’s exports rose by 93.1% to 56 units in April-January period compared with 29 units in the corresponding period last fiscal. Mahindra Renault has so far exported 1,360 vehicles, while Fiat India Automobiles sold 601 units in the overseas markets this fiscal, the society said. However, the country’s largest automaker, Tata Motors, registered a decline of 43.05% in the 10-month period to 5,880 against 10,324 units in the same period last financial year. The total passenger car sales in the domestic market, however, fell marginally to 9,74,661 units during the current financial year from 980,754 units in the corresponding period in 2007-08. Source: Home - Livemint.com | 9 Feb 2009 | 9:31 am RBI expects lending rates to drop furtherMumbai: The Reserve Bank of India (RBI) expects the banks to slash the lending rates further over a period of time but non-performing loans could rise in a slowing economy, a top RBI official said on Monday. Anand Sinha, an executive director at the RBI, said the RBI would continue to maintain ample liquidity in the banking system using conventional and unconventional tools. He said lending rates have come down in recent weeks. “Over a period of time we expect the lending rates to come down,” he added. At its quarterly monetary policy review in January, the RBI kept its key rates steady and said banks had significant room for cutting lending and deposit rates. Sinha said the central bank will maintain the overnight cash rate between the reverse repo rate, through which it absorbs surplus cash from the banking system, and the repo rate, which infuses cash. The apex bank has eased its policy aggressively since mid-October. The repo rate has been cut by 350 basis points to 5.5%, while banks’ cash reserve requirements have been reduced by 400 basis points to 5%. Prime lending rates of many state-run banks range between 12.5% and 14%, while that of private sector banks were higher. Asia’s third largest economy is estimated to have expanded by 7.1% in 2008-09, compared with 9.0% in the previous year and its slowest growth in six years, as demand shrank due to the knock-on effects of the global financial crisis, data showed on Monday. The RBI estimated non-performing loans were 2.3% of banks’ gross advances in 2007-08 but Morgan Stanley, in a recent note, said they would rise to 6.1% by 2010-11. “In a downturn, yes, NPA (non-performing assets) levels can be expected to rise but, let us see,” said Sinha. Sinha said its recent measures to allow banks to restructure their loans were not aimed at just reducing non-performing loans but to provide timely assistance to economically viable units. Last week, the RBI said banks could restructure assets, which had turned bad between September 2008 and January 2009, by 31 March. Source: Home - Livemint.com | 9 Feb 2009 | 9:10 am Satyam to declare long-term plan next week: KarnikNew Delhi: The board of fraud-hit Satyam Computer Services Ltd will decide on a long-term action plan, including a possible sale, in the next 7 to 10 days, its chairman said on Monday. Kiran Karnik, who was last week appointed by the government as the chairman of the Satyam board, told Reuters a clear picture would be available by the middle of next week. Satyam has been battling for survival after founder and former chairman Ramalinga Raju disclosed last month that profits had been overstated for years in the country’s biggest corporate scandal. The fund-starved outsourcer firm, whose clients include General Electric and Coca Cola, has borrowed Rs600 crore ($123 million) from banks to meet short-term capital needs. “Now the short-term crisis has been taken care of. Once the fire-fighting is over, everybody is curious to know where things are moving,” Karnik said. “We will chart out a long-term roadmap in the next 7 to 10 days and make a recommendation to the government that may include all possibilities. The government has to decide.” Top engineering firm Larsen & Toubro controls about 12% of Satyam and has not ruled out raising its stake, while diversified Indian business houses Spice Group and Hinduja Group have also shown interest. The board has appointed Goldman Sachs and another Indian investment bank to find a strategic bidder for the company. The Economic Times newspaper said earlier on Monday Satyam would trim its sales staff in overseas locations to help cut costs and to repay debts to creditors, but Karnik said they were not in a hurry to shed workforce. Source: Home - Livemint.com | 9 Feb 2009 | 8:50 am RBI expects lending rates to drop furtherMUMBAI (Reuters) - The Reserve Bank of India expects the lending rates in the banking system to drop over a period of time but non-performing loans could rise in a slowing economy, a top official said on Monday.Source: Reuters: Money News | 9 Feb 2009 | 8:34 am India needs stimulus next FY for growth - AhluwaliaNEW DELHI (Reuters) - The Indian economy, which is estimated to grow at its slowest pace in six years in the fiscal year ending March, needs more stimulus to sustain growth, a top government official said.Source: Reuters: Money News | 9 Feb 2009 | 8:05 am Sensex up 90 pts in opening trade on firm global cuesContinuing its upward march, the Bombay Stock Exchange benchmark Sensex on Monday, opened higher by over 90 points in opening trade.Source: Daily News & Analysis: Money News | 9 Feb 2009 | 5:23 am Gold prices gain traction despite strong dollarCommodity markets continue to be buffeted by worsening global macro-economic environment. Economic data that come out from time to time bring little cheer.Source: Business Line - Home Page | 9 Feb 2009 | 12:00 am Small, mid-size IT cos face greater pricing pressureBangalore, Feb. 8 Small and mid-sized IT companies are at a risk of facing greater pricing pressures due to higher dependency on fewer customers, and could be forced to step up their marketing expenses to clinch deals in an uncertain businessSource: Business Line - Home Page | 9 Feb 2009 | 12:00 am Promoters’ pledged shares now worth over Rs 5,000 crChennai, Feb. 8 Promoters of listed Indian companies have pledged shares worth over Rs 5,000 crore at current market value, as security for loans availed from banks and financial institutions.Source: Business Line - Home Page | 9 Feb 2009 | 12:00 am Coal India shortlists 9 cos for developing underground minesKolkata, Feb. 8Coal India may invite nine shortlisted private parties from India and abroad for turnkey development and long-term operation of high capacity underground mines in seven virgin blocks, in a pre-bid meeting later this month. TheSource: Business Line - Home Page | 9 Feb 2009 | 12:00 am Global cues at playThe recent Credit Policy of the RBI was preceded by a report on the third quarter review of macroeconomic and monetary developments for 2008-09. While many comments have been made on the interest rate policy and the price situation, let us,Source: Business Line - Home Page | 9 Feb 2009 | 12:00 am Day Trading GuideSource: Business Line - Home Page | 9 Feb 2009 | 12:00 am Sugar defies general commodity trend, on the riseNew Delhi, Feb. 8 Sugar appears to be a real oddball among all commodities, defying the general direction of movement inSource: Business Line - Home Page | 9 Feb 2009 | 12:00 am HCL Technologies (Rs 125.85): BuyWe recommend a buy in HCL Technologies from a short-term trading horizon. It is evident from the charts of HCL Technologies that it had been on an intermediate-term downtrend from its September 2008 high of Rs 261 till its January 2009 low of RsSource: Business Line - Home Page | 9 Feb 2009 | 12:00 am GSPC to relocate LNG terminal within Mundra portKolkata. Feb. 8The Gujarat State Petroleum Corporation (GSPC) and Adani group combine has finalised partial re-location of the site for the proposed 7.5-million tonne LNG terminal within the Mundra Port and SEZ area.Source: Business Line - Home Page | 9 Feb 2009 | 12:00 am RIL to begin talks with buyers soon for KG gasNew Delhi, Feb. 8 Reliance Industries Ltd (RIL) will soon initiate discussions with buyers for its Krishna Godavari Basin field (D6 block) gas.Source: Business Line - Home Page | 9 Feb 2009 | 12:00 am Raju land may be twice estimatesWhile the property documents seized during various search operations are still being put together, rough estimates show the land bank to be in excess of 15,000 acres.Source: Daily News & Analysis: Money News | 8 Feb 2009 | 10:29 pm Re-$ pair may remain range-boundLast week, appetite for risk among investors and market participants improved due to hopes of a speedy passage of US president Barack Obama's economic stimulus package.Source: Daily News & Analysis: Money News | 8 Feb 2009 | 10:24 pm HAL to hand over first export DhruvsVisitors to Hindustan Aeronautics Limiteds (HALs) high-security helicopter hangars in Bangalore nowadays confront a startling sight. Dominating the tarmac are five shiny new Dhruvs, the HAL-manufactured Advanced Light Helicopters (ALH), emblazoned with the insignia and the roundels of the Ecuadorian Air Force.Source: Business Standard | Front Page Headlines | 8 Feb 2009 | 6:51 pm First Global uses RTI to set the record straightEight years after it was indicted by the market regulator for profiting from advance knowledge of news website Tehelkas market-moving exposs, brokerage house First Global says it has procured documents under the Right to Information (RTI) Act that show how the regulator fabricated a case against it.Source: Business Standard | Front Page Headlines | 8 Feb 2009 | 6:50 pm Lenders seek Subhiksha books reviewTo take up debt restructuring of cash-strapped retailer.Source: Business Standard | Front Page Headlines | 8 Feb 2009 | 6:47 pm Focus on the banking system, then the stimulus package; forget about revenge — Srini Mahadan, Virginia We don’t blame you for asking. Times don’t just feel tough, they feel unprecedented—even for Jack, who managed a company through three recessions (1973-75, 1980-82 and 1990-91). During each of those downturns, on any given day in February, even with the economy in decline, you could still predict your April sales figures within a couple of percentage points. Today it’s as though a blanket of fog has dropped over commerce: Visibility is near zero. No wonder managers are in a frenzy of institutional preservation, doing everything they can to unload costs. But is the economy beyond saving? Of course not. Too many smart, dedicated people are on the case. The real unknown is how soon a recovery can start, and how fast it will take hold once it does. And that, we believe, depends on policymakers’ coming to terms with three contentious, but inexorable, facts. Fact No. 1: Focusing on the details of the stimulus package before fixing the banking system is backward. Also See Jack and Suzy Welch’s earlier videos Healthy banks are to the economy as healthy hearts are to people: They keep them alive with the “lifeblood” of credit. Right now, however, while the patient is having a heart attack, policymakers are busy talking about how much to spend on a suit he’s going to wear next year. The Troubled Asset Relief Program and other early initiatives appear to have stabilized the markets, but more needs to be done, as unpalatable as that may sound to bailout-weary Main Street. Falling housing prices remain a serious problem, and the government still needs to install an aggressive programme to get foreclosures under control. It also needs to get toxic assets off the balance sheets they continue to contaminate. In 1989, the Resolution Trust Corporation’s “good bank/bad bank” approach worked effectively, but the recent Citigroup rescue suggests that government asset guarantees are also a potential option. Our purpose, though, is not to dwell on the details. It’s to make the point that policymakers will be wasting their political capital fighting over the stimulus package if they don’t first invest their energies in saving the financial system. Fact No. 2: The stimulus package is turning into a big, opaque mess with questionable potential for job creation. The package flew through the House, but that doesn’t mean most people trust it or think that it includes the best set of ideas our government can offer. We’re in the crowd hoping that the Senate debate will move the Bill in the direction of transparency and good sense. But we believe that will only happen if policymakers start talking about the stimulus package as they should, in terms of three distinct “buckets” of proposals. The first should contain all the plans intended to spur employment, with each expenditure linked to detailed projections about how many jobs, and what kind, will result. The second bucket should contain all the proposals for expenditures designed to help those hurt by the economic collapse. And the third should contain all the measures that are in the stimulus package because...well, because they’re pork and partisan payback. That third bucket is unfortunate, of course, but that’s politics. It would be naive to deny its existence. But it would be worse still for policymakers to keep discussing the stimulus package as though it’s just one big mass of initiatives. The package will restore much needed confidence and ultimately be more effective if the debate about it concerns what really matters: creating jobs and providing support to those who’ve lost them. Fact No. 3: Revenge may be tempting, but it’s a losing strategy. The list of people that could have prevented or mitigated this economic disaster is long, and recent reports about the billions paid in bonuses to Merrill Lynch bankers have only exacerbated feelings that someone has to pay for this capitalism-run-amok. But policymakers need to accept that we are all now investors (“we” meaning the taxpayers) in the companies that the government is helping. Within limits, we must let these companies do what it takes to thrive in a globally competitive world, even including, yes, paying for performance and courting customers with sales events. If we don’t, we will all soon be investors in carcasses. We don’t mean to minimize the challenge ahead; your question correctly suggests its magnitude. But if we’re guided by a shared understanding of the banking system’s priority status, the real contents of the stimulus package, and the self-destructive cost of revenge, we’ll find a way out together. ©2008/BY NYT SYNDICATE Write to Jack & Suzy Jack and Suzy are eager to hear about your career dilemmasand challenges at work, and look forward to answering some of your questions in future columns. Jack and Suzy Welch are the authors of the international best-seller, Winning. Campaign readers can email them questions at winning@livemint.com. Please include your name, occupation and city. Only select questions will be answered. Source: World Business - Livemint.com | 8 Feb 2009 | 3:57 pm First optical fibre link between India, Myanmar openedMandalay: India and Myanmar today operationalised their first optical fibre telephone link, a $7 million state-of-the-art network that will bring the two countries closer and give a boost to bilateral economic cooperation. Watched by Vice President Hamid Ansari, Myanmar’s Communication Minister Brig Gen Thein Zaw made the first call to Indian Telecom Minister A Raja in New Delhi, applauding the quality of the project funded by India and executed by public sector Telecommunications Consultants India Limited (TCIL). The high-speed broadband link for voice and data transmission connects Mandalay, Myanmar’s second most important commercial hub after Yangon, and the border town of Moreh in Manipur. The two towns are separated by a distance of 500 km. TCIL Chairman-cum-Managing Director Rakesh K Upadhyay later told PTI that the call rates between India and Myanmar are bound to fall sharply with the installation of the optical fibre link between Mandalay and Moreh. Myanmar announced it was planning to construct optical fibre network in the entire area along its border with India which could then have another direct link also with China, Laos and Thailand. Source: Tech News - Livemint.com | 8 Feb 2009 | 12:30 pm
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