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See robust growth in FY10: Sanghvi MoversSanghvi Movers\' net profit, one of the largest craneowning company in India, has grown by 7.8% YoY. Commenting on it, CP Sanghvi, CMD of Sanghvi Movers, said they will be able to overcome the low figure in the next 23 quarters and they see a robust growth for the next full year.Source: Moneycontrol Top Headlines | 26 May 2009 | 4:13 pm Pharma cos\' margins to be under pressure ahead: CiplaThe Pharmaceutical sector has seen strong movement in the stock prices but has nothing has changed fundamentally says Amar Lulla, CEO of Cipla. I think there is going to be a complete change of scene and the margins going forward are going to be under tremendous pressure.Source: Moneycontrol Top Headlines | 26 May 2009 | 3:10 pm India suspends launch of new sugar contractsMUMBAI (Reuters) - India's Forward Markets Commission (FMC) has suspended the launch of new sugar futures contracts until the end of 2009, a senior official said on Tuesday.Source: Reuters: Money News | 26 May 2009 | 12:47 pm POLL - Oil to average over $52 a barrel in 2009LONDON (Reuters) - U.S. crude oil is expected to average over $52 a barrel in 2009, a Reuters poll showed on Tuesday, as analysts raised their consensus forecast for the second consecutive month.Source: Reuters: Money News | 26 May 2009 | 12:43 pm Pranab Mukherjee says more stimulus needed for growthNEW DELHI (Reuters) - The government is ready to deliver further fiscal stimulus to arrest a slowdown in growth, the finance minister said on Tuesday, but added that fiscal prudence was also a priority.Source: Reuters: Money News | 26 May 2009 | 12:42 pm More stimulus needed for growth: FMNew Delhi: The Indian government is ready to deliver further fiscal stimulus to arrest a slowdown in growth, the finance minister said on Tuesday, but added that fiscal prudence was also a priority. Pranab Mukherjee said stimulus steps taken since late 2008, including cuts in duties and extra spending, were having an impact and the government would take further measures to revive activity, although some sectors such as textiles were badly hit. “What is needed right now is the stimulus to the growth. But at the same time, we cannot lose our sight, that we cannot indulge in fiscal profligacy,” Mukherjee told CNBC-TV 18 when asked if more stimulus measures were planned. On Saturday, Mukherjee had said efforts would be made to insulate the economy from the global financial crisis and slowdown, and media reports have said the additional spending could be equal to 0.5-1.0% of gross domestic product. Finance secretary Ashok Chawla told Reuters finance ministry and Reserve Bank of India officials would meet on Saturday to finalise a revised borrowing plan for June, sending bond yields higher on concerns of more supplies. According to its borrowing calendar, the government is expected to borrow Rs48,000 crore ($10 billion) of bonds between 29 May and 26 June. Appropriate After a resounding victory in general elections, Mukherjee said the Congress party-led coalition was likely to detail its 2009-10 (April-March) budget in the first week of July. While extra spending could give a welcome boost to growth, economists are worried that it may not be affordable given the consolidated central and state deficits have already topped 11% to be among the highest in the world. Growth has slowed sharply as the global downturn hit harder than expected. Growth is expected to hit a seven-year low under 6%, down from about 7% in 2008-09 and rates of 9% or more in the previous three years. “Considering all these aspects, whatever is appropriate, I will take the appropriate measure,” Mukherjee said. “We are saying whatever the economy needs, will be done.” In an interim budget in February ahead of the elections, Mukherjee outlined plans for a record 3.6 trillion of gross market borrowing. Of that, two-thirds was scheduled for the first six months of 2009-10. In early May, the RBI raised the size of weekly bond auctions for the third and fourth week of May by a quarter each to Rs15,000 crore ($3.1 billion), raising concerns that borrowing needs had increased. Senior traders said the pressure on government borrowing was evident from the huge overdrafts on its short-term funding line, the Ways and Means Advances (WMA), for five consecutive weeks. “It’s a huge negative, before the budget the government is already running a large negative WMA, planning a stimulus package and revising borrowing. The revision can only be upward and also frontloaded,” a senior dealer at a foreign bank said. At the day’s high of 6.58%, the 10-year yield was up 35 basis points in May, with the bulk of the rise coming in the past four days. It is up 133 basis points from end-2008, but it is 79 basis points below a high of 7.37% hit in March when fears about the government’s borrowing needs peaked. “The market has discounted the overshooting in government borrowing, they want to know to what extent they will overshoot,” said J Moses Harding, head of global markets at IndusInd Bank. ‘Bharti-MTN deal a welcome move’ The finance minister said Bharti Airtel’s proposed deal aimed at a merger with South Africa’s MTN was a welcome move. “It is a welcome move, I must say,” Mukherjee told television CNBC TV18. Bharti and MTN said on Monday they were mulling a deal which could create one of the world’s biggest cell phone groups by subscribers. Source: Home - Livemint.com | 26 May 2009 | 12:32 pm “India is a highly visual country”| Peter NagyOn this weeks edition of the expat show, we talk to US citizen Peter Nagy, owner and curator of the Nature Morte art gallery.  The Nature Morte gallery was originally in New York, from 1982 - 1988, but then shut down and reopened in New Delhi in 1997.  Nagy who has been living in India since 1992, has been widely credited as being one of the driving forces behind India’s burgeoning art scene. In this show, he talks to Melissa A. Bell about the development of the art scene in India , his own experiences, and why “India will be his home for the rest of this life” Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:21 pm Centre rushes 2500 troops for relief work in cyclone hit West BengalNew Delhi: The Centre on Tuesday dispatched 2500 personnel of the central paramilitary forces to assist in the relief and rescue operations in cyclone hit areas of West Bengal. “We have rushed 25 companies of CRPF, BSF and RPF to help in the aid and rescue operations in the cyclone hit areas of West Bengal,” a home ministry official said. The home ministry is in constant touch with the state governments and ready to provide more help if required by the two states, the official said. “We are monitoring the situation closely. It is improving and things are settling down now,” the official said. The Centre had already dispatched 200 personnel of the riverine units of BSF based in Sundarbans, West Bengal. About 1000 personnel of the National Disaster Response Force have also been pressed into relief operations. Some of the forces have already reached the spot to help local authorities in rescue operations. “NDRF and BSF officials are in constant touch with relief commissioners of West Bengal. We are very prepared and ready to meet any situation,” Union home minister Chidambaram had said on Monday. Monday’s storm ripped through Kolkata, North and South 24 Parganas, Howrah, Hooghly, Burdwan and East Midnapore affecting a population of 1.10 lakh and killing 45 people. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:21 pm Pranab's comments dampen markets; Sensex down 324 ptsFinance minister Pranab Mukherjee's comments on economic growth and fiscal consolidation failed to enthuse markets which after a buoyant start closed with a mammoth loss of over 320 points.Source: India Business News | Business News - Times of India | 26 May 2009 | 12:15 pm Pakistan hopes new Indian govt will resume composite dialogueIslamabad: Pakistan hopes India’s new government would resume the composite dialogue process stalled in the aftermath of the Mumbai terror attack, foreign minister Shah Mahmood Qureshi said as he met the Indian envoy here. The meeting, first of any Pakistani official with Indian High Commissioner Sharad Sabharwal after elections in India, covered issues like Indo-Pak relations, investigation into Mumbai attacks and formation of a new government in India. Qureshi said “cordial and better” relations between Pakistan and India would be beneficial, not only for the region but also for the people of both countries, the Online news agency said, quoting sources said. He hoped the new Indian government under the leadership of Prime Minister Manmohan Singh would resume composite dialogue with Pakistan, it said. During the meeting that lasted over an hour on Monday, Qureshi said: “Pakistan is committed to bringing the perpetrators of Mumbai attack to justice at all cost”. The confidence building measures between Pakistan and India “can remove a sense of deprivation among the citizens of both countries,” the report said. Pakistan intends to resolve all outstanding issues with India through dialogue for sustainable and lasting peace in the region, he said, pointing out that the Kashmir issue should be resolved “in accordance with the aspirations of Kashmir people”. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:15 pm Northern Railway restore rail traffic in PunjabNew Delhi: In a big relief to passengers, the rail traffic in north India was restored this afternoon after 36 hours following protests in Punjab over the killing of a Sikh sect leader in Vienna. “Rail traffic was restored in Punjab at 3.30 pm this afternoon and the first train left from Jammu Tawi to Varanasi via Punjab,” said a Northern Railway spokesperson. Rail traffic was badly affected in Punjab because of the spiralling violence. The Northern Railway had to cancel as many as 30 trains on Monday and four trains Tuesday afternoon. Over 14 trains were also left stranded midway at several stations in the state as protesters squatted on rail tracks. Thousands of passengers were stranded at railway stations because of the halted train service and they were provided shelter at Gurudwaras and railway colonies. Food was also being provided free of cost by the Northern Railway Women’s Welfare Organisation, he said. The violence also caused large scale damage to railway properties, with sources saying properties worth crores were destroyed due to burning of coaches and stone pelting at the locomotives. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:08 pm Nikon to cut about 1,000 jobs in precision equipment divisionTokyo: Major Japanese camera maker Nikon Corp on Tuesday said it will realign its precision equipment division and cut some 1,000 out of the division’s 4,600 jobs due to the fast economic deterioration. The job cuts include some 800 out of about 2,900 domestic production jobs and some 200 of about 1,700 jobs for overseas and domestic sales and services for the division that builds photolithography machines for semiconductors and liquid crystal displays. In the realignment, four domestic production subsidiaries for the division will be reorganized into two. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:08 pm Russia recession may be deeper than 1998Moscow: Russia’s recession this year may be 50% deeper than during the 1998 crisis, a senior finance ministry official said on Tuesday, a day after President Dmitry Medvedev called for a conservative approach to forecasts. Russia’s once buoyant economy has been undermined by lower oil prices, the fall in world demand for its commodities, and the worldwide credit crunch which has left companies struggling to refinance foreign loans secured in better days. Under a pessimistic scenario, the economy could shrink 6.0-8.0% this year, deputy finance minister Oksana Sergiyenko told reporters - significantly weaker than previous official forecasts. Such a contraction would cut budget revenues by up to an extra 300 billion roubles ($9.66 billion) and raise the deficit to 9% of gross domestic product (GDP). The current budget is based on a deficit of 7.4% and an economic contraction of just 2.2%. But Medvedev said on Monday the slowdown will likely be deeper than that and the Economy Ministry has already forecast it could reach 6%. “It doesn’t necessarily mean that the economy will develop in this way, but we must take risks into account,” Sergiyenko said. At 8.0%, the contraction would be about 50% sharper than the 5.3% during the last recession in 1998, but Russia’s economy is much bigger now. The International Monetary Fund forecasts suggest it will end the year at least four times bigger in dollar terms than it was a decade ago. A survey by Russian pollsters Levada showed this week that 42% of Russians are struggling to make ends meet or living beyond the poverty line, but this compares with nearly 70% in 1998-1999. The slowdown accelerated to 10.5% year-on-year in April from 9.5% in March, deputy economy minister Andrei Klepach said on Tuesday. The overall performance was probably dragged down by a record contraction in industrial output and a continued slowdown in retail sales as Russians face job cuts and salary reductions. “Clearly, despite the bounce back in oil prices, the Russian economy is proving slow to respond,” said RBS analyst Tim Ash. The price of its export Urals oil blend has averaged $44.6 a barrel in the first four months of this year - less than half of its price tag in the same period of 2008 but better than the $41 level factored into the budget. On Monday, Medvedev said official forecasts for the resource-focused economy should be based on conservative assumptions about the price of its commodity exports. There was some encouragement for investors looking for the first green shoots showing that the slowdown has bottomed. May likely saw net capital inflows of $2 billion, marking the first month of inflows since July 2008, Sergiyenko said. The April trade surplus hit a 3-month high of $7.5 billion as exports picked up - perhaps thanks to a slight recovery in crude prices - while imports were reined in, Klepach said. “We are working on the basis that the economy is near the bottom,” Klepach said. “The depth of the slowdown, the scale of the fall is still increasing, but the pace is slowing down.” He added that inflation could be as low as 0.6% in May after 0.7% in April and 1.3% in March. Lower inflation gives Russia more room to cut interest rates in a bid to encourage commercial banks to offer more affordable loans. “I don’t think there is a silver lining (in the GDP data), but I really think that the economy has reached a stable level but at a low equilibrium,” said Ivan Tchakarov, economist at Nomura in London. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 12:06 pm Aviophobia? Divine help soon at Delhi airportFor those suffering from aviophobia, the fear of flying, divine help will be at hand soon with a grand temple with south Indian architecture coming up just outside the airport here.Source: IndiaeNews.com: Business News | 26 May 2009 | 12:02 pm RCom shareholders okay demerger of optic fibre businessReliance Communications (RCom), India's second largest telecom operator, Tuesday said it has received approval from its shareholders for the demerger of its optic fibre division and subsequent merger with wholly-owned subsidiary Reliance Infratel.Source: IndiaeNews.com: Business News | 26 May 2009 | 12:02 pm Punjab unrest: 25,000 passengers stranded in JammuOver 25,000 stranded passengers, including pilgrims to the Vaishno Devi shrine, were battling scorching heat at the railway station here Tuesday following disruption of train service due to the violent unrest in neighbouring Punjab.Source: IndiaeNews.com: Business News | 26 May 2009 | 12:01 pm Mahindra launches CNG pick-up truckAuto major Mahindra and Mahindra (M and amp;M) Tuesday launched a CNG variant of its existing pick-up truck Maxx Maxi.Source: IndiaeNews.com: Business News | 26 May 2009 | 12:00 pm Oil pulls back to $60 - CNNMoney.com
Source: Google News India - Business | 26 May 2009 | 11:54 am NCDEX inks pact with Singapore bourse - Business Standard
Source: Google News India - Business | 26 May 2009 | 11:52 am Mamata Banerjee assumes office as railway ministerKolkata: In a break from tradition, Mamata Banerjee on Tuesday took over as railway minister in The Eastern Railway headquarters in the West Bengal capital instead of Rail Bhavan in New Delhi and announced special monthly travel passes for people with income below Rs500. Stating the railways is the lifeline of India, Banerjee said,“My ministry will provide special monthly travel passes for people in the unorganized sector, especially those coming from villages to the city for work and having a monthly income of less than Rs500.” The passes would cost Rs20 and for a distance of 100km, the minister said. A special identity card will be issued to them, she said. The technicalities of issuing the passes will be worked out by the Railways, Banerjee said. She also announced introduction of the Howrah-Digha Kandari Express to mark the birth anniversary of rebel poet Kazi Nazrul Islam. “My taking charge from Bengal does not mean that my work will be limited to Bengal only. There is a natural disaster here and I can’t leave the people,” she said referring to cyclone Aila which hit West Bengal on Monday preventing her from reaching the national capital to assume office. “We will work for the entire country,” Banerjee, who is also the Trinamool Congress chief, said in the presence of Railway Board chairman S.S. Khurana and other senior railway officials. “Under my supervision, the Railways will take special care for passenger amenities, cleanliness, safety and for freight from the commercial point of view and with a human face,” she said. The railway minister said the modernization and introduction of new technology in major stations and yards will also be taken up. Besides, the railways will take up the upgradation of employees. The Railways will also take measures to improve tourism and other sectors, she said. Stating the railway budget was ‘knocking at the door´, Banerjee said,“Let us start our process from today. We cannot say about the budget now. It is totally the prerogative of Parliament. But we have to do it within July 31.” Banerjee said all pending railway projects in Jammu and Kashmir will be given special care and attention. “We want to develop all parts of India,” she said. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 11:49 am MTN deal funding won’t be onerous: BhartiNew Delhi: Bharti Airtel, which has restarted merger talks with South Africa’s MTN, said on Tuesday it did not anticipate funding requirements for the deal would be onerous, but its shares fell sharply for a second day. Fears of equity dilution and a stretched balance sheet knocked shares in Bharti down 5.1% to Rs770.40, worse than a 2.3% fall in the broader market and taking their losses over the past two days to 10.2%. In Johannesburg, MTN shares had fallen 3.8% to 125.01 rand by 0943 GMT as investors questioned the value of the deal. Finance minister Pranab Mukherjee welcomed the proposed deal, under which Bharti would pay cash and shares for 49% of the South African firm, and MTN and its shareholders would pay cash and stock for a 36% stake in the Indian firm Brokerages estimate a net cash outflow of about $4 billion from Bharti in the deal, which would create one of the top global telecoms firms with operations in Asia, Africa and the West Asia. Bharti, which plans to fund the deal through cash and shares, on Tuesday said it had not yet decided how to raise any funds. “We do not anticipate the funding requirements to be onerous,” the company said in an emailed response to questions sent by Reuters, without saying how much it expected to raise. Banking sources said Bharti might raise $3 billion to $4 billion in debt if the merger talks succeed. Bharti, which will issue new shares to part fund the deal, said on Monday its earnings-per-share would be diluted in the first year after the deal and pick up after that. Not Stretched Singapore brokerage CIMB said Bharti’s balance sheet would not be overstretched by the net payment of $4 billion to MTN and its shareholders, as it could consolidate MTN’s accounts and use the African firm’s strong cash flows and balance sheet. Bharti’s net debt to EBITDA ratio would increase to 0.74 after the merger from 0.25 currently, while net debt would be 1.9 times equity post merger from 0.25 times now, the brokerage said. The finance minister on Tuesday said the deal was a welcome move, which one analyst said was “a vote of confidence” in its success. India caps foreign investment in telecom companies at 74%, and the investments need to be cleared by the finance ministry’s Foreign Investment Promotion Board (FIPB). “I think the deal should not face any major hurdles here. Still there are regulatory issues, they need FIPB approval,” said Harit Shah, a telecom analyst at Mumbai brokerage Angel Broking. Source: Home - Livemint.com | 26 May 2009 | 11:48 am Bharti says MTN deal funding will not be onerousNEW DELHI (Reuters) - Bharti Airtel, which has restarted merger talks with South Africa's MTN, said on Tuesday it did not anticipate funding requirements for the deal would be onerous, but its shares fell sharply for a second day.Source: Reuters: Money News | 26 May 2009 | 11:40 am Gold continues its upward march as equity dropsMaintaining its upward march gold prices rose for the sixth straight day surging by Rs 130 to close at Rs 14,890 per ten gram in the bullion market here as funds shifted from melting equities to rising bullion.Source: India Business News | Business News - Times of India | 26 May 2009 | 11:39 am Tata Power focuses on energy conservationMumbai: Tata Power Energy Club (TPEC), a social initiative by private utility Tata Power, aims to educate and sensitize one million people in India about energy conservation this year. The energy conservation club, by educating school children to further spread the message, focuses on bringing about a first-hand realization of the energy crisis in the country. The initiative, launched in 2007 as a pilot project with 12 schools, is a part of Tata Power’s corporate social responsibility (CSR). “The idea is to imbibe in this young generation the idea of energy conservation. Saving one unit of power is equal to saving four rupees,” said Tata Power Company chief sustainability officer Avinash Patkar. “With TPEC, we have so far reached 28 schools in Mumbai and sensitized 11,000 children in the last academic year,” a Tata Power spokesperson said. The school-children, in turn, share information on energy conservation with at least two others and their families. “We’ve had 38,339 people as part of this initiative so far. For the next (academic) year, our target is one million people,” the spokesperson said. Tata Power has already initiated the awareness programme in three schools in Belgaum, Karnataka. “We are going to 10 city colleges this year. Besides, we’ll be taking up this project in Pune, Ahmedabad, National Capital Territory, Jamshedpur and Bangalore by February 2010,” the spokesperson said. Educated through audio-viusal presentations, students from the sixth to eight standard then spread the word in their localities and among family members. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 11:32 am Funds await right time to deploy surplus cash in equity marketNew Delhi: Awaiting the right opportunity to deploy their funds into the equity market, the mutual fund industry is sitting on a huge cash pile of Rs20,109 crore, even as foreign institutional investors (FIIs) are pouring funds into equities. “The fund houses are waiting for the desired correction to take place as there is a gap in the market right now. MFs plan to enter the market when the fundamentals are good,” Taurus Mutual Fund managing director R K Gupta said. According to Mutual Fund Monthly Performance Report by Reliance Money, the fund houses were sitting on a cash pile of Rs20,108.92 crore at the end of April, 2009. Sitting on a huge cash pile, the fund houses are well equipped to maintain buying interest in equities and propel the market forward, analysts said. “The surplus cash with the MFs will get absorbed very soon as the equity schemes are the best way to maximize returns of the fund houses. Going forward they would cash in on the rock-bottom valuations in the equities,” Gupta added. Marketmen said fund houses were waiting for a correction post the general elections, however, the market went up after the decisive verdict in the polls. This led fund houses to seek more time for deploying their cash resources. In April, FIIs invested a net Rs6,508 crore in equities while MFs made net purchases to the tune of Rs38.90 crore. At the end of April, Reliance Mutual Fund’s cash as a percentage of its total equity assets was the highest at over 27.58%. The ratio was 20.86% for ICICI Prudential Asset Management, 16.42% for UTI Mutual Fund and 7.66% for HDFC Mutual Fund, the report noted. Besides, an analysis of the buying trend of the MFs in April shows that the fund houses have increased their exposure substantially in the banks, real estate and power sectors, while they have reduced their holding in petrochemical, pharmaceutical and auto sectors. The top five sector held by the MFs at the end of April was banks, pharmaceuticals petrochemicals, computers - software, electrical equipment and power. At the end of April, the combined average Assets Under Management (AUM) of the 35 fund houses in the country increased to Rs5,51,299.95 crore, an increase of Rs58,013 crore, or 12% which analysts believe was mainly due to the recovery in equity markets and investment by banks. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 11:29 am Gold demand dull on high pricesMumbai: India gold futures prices edged lower on Tuesday tracking weak international markets, but traders stayed away from the local spot market due to unaffordable prices, dealers said. The most active June contract was 0.17% lower at Rs14,563 per 10 grams at 3:53pm. Gold eased in Europe on Tuesday as the dollar recovered from the lows it hit late last week versus a basket of currencies, curbing interest in the metal as an alternative asset. “Futures prices are down just a little but spot continues to stay high..this is not going to attract demand,” said a dealer with a private bank. “Besides, a weak rupee will continue to support prices,” he said. The Indian rupee held at the day’s low in afternoon trade on Tuesday, mirroring losses in domestic shares, while gains in the dollar versus major currencies also added to the downward pressure. Most traders expect demand coming in at sub-14,000 rupee levels. “We expect buying interest coming in at prices less than Rs14,000,” said Haresh Acharya, head of bullion desk, at Parker Agrochem, Ahmedabad. Dealers said gold demand has receded after having picked up for two weeks following better-than expected Akshaya Tritiya sales, an auspicious day to buy gold, as traders replenished stocks for the wedding season. India’s wedding season lasts till June end. Source: Home - Livemint.com | 26 May 2009 | 11:25 am Suzlon has no plans to raise equity as of nowSumanth Sinha of Suzlon Energy said the company was working on signing the domination agreement with REpower. It had no specific plans to raise equity as of now. He further said, the company will meet future debt repayment via internal accruals.Source: Moneycontrol Top Headlines | 26 May 2009 | 11:16 am National identity cards to be issued to citizens by 2011: ChidambaramNew Delhi: To keep a tab on terrorists often mixing with common people, the government has initiated war footing measures to ensure availability of multipurpose identity cards to all citizens by 2011. “The national population register will be ready by 2011 and the multipurpose national identity cards (MNIC) will be issued to all residents in 2011,” Union home minister P Chidambaram said. The project aims at providing a unique national identity number to each person in the national population register, he said here Monday evening after assuming office. However, keeping in view the complexities involved in both the process and technology, a pilot project has been under implementation on an experimental basis covering a population of 30.95 lakhs in selected areas in 12 states and one union territory. “The coastal districts and in Andaman and Nicobar Islands, the work has already started,” he said. The identity card is a smart card having a microprocessor chip. This is a secure card for which recommendation was made by the technical committee constituted by the government having representatives from National Informatics Centre, IIT Kanpur, Bharat Electronics Limited, Indian Telephone Industries Limited, Electronics Corporation of India Limited, Intelligence Bureau and others. Sources said the implementation of the scheme in the entire country would be based in the light of the experiences gained and lessons learnt from the pilot project. The identity smart cards are being issued to citizens of 18 years and more under the pilot project. The decision to implement the pilot project in the coastal areas has been taken keeping in view the aspects relating to enhancement of security in coastal areas following the Mumbai terror attack as the terrorists came using the sea route. The creation of national population register might usher in the era of register-based census in the country and would help in future to have the estimates of population on a real time basis by combining it with the system of registration of births and deaths in the country. Expecting the population of the country to reach 1.20 billion by 2011, the government is also taking precaution to identify difficult areas and difficult populations in advance so that no person in any household is left unrecorded and no area is left untouched. Source: LatestNews-Home - Livemint.com | 26 May 2009 | 11:11 am Pranab's comments dampen markets; Sensex down 324 pts - Times of India
Source: Google News India - Business | 26 May 2009 | 11:10 am NIIT Tech March qtr net dips 58.50% - Hindu Business Line
Source: Google News India - Business | 26 May 2009 | 11:08 am Sensex dives 2.3%, lowest close since post-poll rallyMumbai: Markets ended near day’s low on Tuesday, tracking weak European and Asian markets. The Bombay Stock Exchange benchmark Sensex fell by 2.3%, its lowest close since 17% circuit-breaking rally after UPA’s sweeping victory in the 15th LS polls. Trading began on positive note but lost ground immediately, influenced by mixed sentiments from Asian markets. Trading continued to remain choppy for most of the day on profit-booking and short-covering ahead of this month’s derivatives on Thursday 28 May. However, markets made some recovery during midsession but weak opening of Europe sent it hovering in red territory. Off-loading was seen across sectors barring IT index. Most of the selling was experienced in realty, capital goods, power, consumer durables, oil & gas and bank segments. The 30-share BSE index closed lower by 323.99 points at 13,589.23 and the 50-share NSE Nifty ended down by 120.85 points at 4,116.70. Leading the losers from the BSE pack was Reliance Communication by 9.56% to Rs291.45, Ranbaxy Laboratories by 8.36% to Rs244.40, Tata Motors by 5.91% to Rs325.50, NTPC Ltd by 5.33% to Rs201.40, ICICI Bank by 5.25% to Rs666.60, Bharti Airtel by 5.05% to Rs770.40, DLF Ltd by 4.30% to Rs336.90 and Larsen & Toubro by 3.83% to Rs 1,254.75. Among the few gainers Hindalco was up by 3.23% to Rs79.90, Infosys Technology by 2.34% to Rs1,543.20, Wipro Ltd by 1.54% to Rs 372.30 and Sterlite Industries by 0.33% to Rs539.90. In the Asian front, indices ended lower as North Korea tested its nuclear missile. Japan’s Nikkei fell by 0.44% and Hong Kong’s Hang Seng was down by 0.76%. Source: Home - Livemint.com | 26 May 2009 | 11:06 am Heavy government borrowing may dry liquidity for firmsNew Delhi: Indian companies, which are increasingly turning to a liquidity-flush domestic debt market for funds, may find that window drying up as the government mops up money through its already bloated borrowing plan. A series of interest rate and cash reserve ratio cuts as well as bond buybacks by the Reserve Bank of India (RBI) has left the system flush with cash and yields comfortably low, encouraging companies to borrow through bonds. But the Union government, struggling to boost economic growth amid a global slowdown, is resorting to heavy bond sales to bridge a widening deficit, triggering fears that it may crowd out private debt investments. “Companies are managing (despite heavy government borrowing) due to the liquidity situation. As the government borrowing progresses....the condition won’t remain the same,” said Siddarth Rath, senior vice-president, capital markets, Axis Bank Ltd. Indian companies have raised Rs1.51 trillion via bonds between October and March, according to Securities and Exchange Board of India, to take advantage of lower yields. The yield on the Reuters benchmark five-year corporate bond has come down to 7.50-8% levels from 11% in September, before the central bank began lowering rates. Indian Railway Finance Corp. (IRFC), a key seller of corporate bonds, has seen its cost of funds shrinking to 8.05% from 8.98% in 2008, R. Kashyap, managing director, told Reuters in an interview on 15 May. Since October, the RBI has cut its key lending rate by 425 basis points and cash reserve requirements by 400 basis points to negate the effect of a global credit crunch and recession. The government, on its part, has cut factory gate duties and committed additional expenditure, widening its 2008-09 fiscal deficit to 6% of GDP from the budgeted 2.5%, triggering concerns it will lead to higher cost of funds. It plans to sell Rs2.4 trillion of bonds by September, which is two-thirds of the annual target. Earlier on Tuesday, finance secretary Ashok Chawla told reporters finance ministry and central bank officials will meet on Saturday to discuss revising June’s borrowing target from the scheduled Rs48,000 crore between 29 May and 26 June. Other Sources “... with every percentage point increase in the fiscal deficit, maintaining adequate liquidity in the system becomes much more difficult...,” RBI governor D Subbarao said last week. Some economists say the impact of heavy borrowing on corporate funding will be seen only in the absence of alternate sources of money such as equity or overseas loans. “If other sources are not there and the government comes out with heavy borrowing programme and it frontloads, then it may have some impact,” said Vibha Batra, ICRA’s co-head financial sector ratings. A few companies, which routinely tap the domestic bond market for money, are also looking elsewhere for funds as the government’s relentless borrowing threatens to send yields up. State-run Rural Electrification Corp’s (REC) , which plans to raise about Rs30,000 crore through different sources in 2009-10, may look overseas for fund-raising, finance director HD Khunteta said. “We don’t see any difficulty in raising the resources. We have the approval for $500 million ECB also,” he said. However, Crisil’s economist DK Joshi believes the government’s heavy borrowing will not be an issue in the near-term as liquidity is “decent” in the system and the RBI is taking measures to pump liquidity by buying back bonds. “Right now the crowding out may not take place, but once the economy starts recovering, it will become a central issue.” Source: Home - Livemint.com | 26 May 2009 | 11:05 am NIIT Tech Q4 net falls 15% on hedging lossesNew Delhi: NIIT Technologies Ltd’s net profit for the quarter ended March slipped 15% on hedging losses and a tough business environment, its chief executive officer said on Tuesday. On a consolidated basis, its profit stood at Rs263 million, down from Rs310 million last year. Revenue fell 8.8% to Rs2.27 billion from Rs2.49 billion last year. “Every organisation is cutting costs, so the expectation from every customer - our(s) as well as for the whole industry - is to provide more for less,” Arvind Thakur told a news conference after announcing the firm’s results. There were ‘serious price negotiations´ with retail and manufacturing clients, Thakur told reporters, adding travel clients were extending their contracts. India’s export-oriented software-service firms, long accustomed to a scorching pace of growth, face a gloomy year as clients slashed technology spending after the financial crisis chomped profitability or even bankrupted some of them. Currency fluctuations saw the firm logging Rs221 million in hedging losses for the March-quarter, Thakur said. The rupee declined 3.8% against the dollar in the March quarter. Against the pound, it fell 1.9%. The software firm posted a 58% fall in March-quarter standalone net profit to Rs227 million. Margins erode The software firm’s operating margins fell by 102 basis points to 17.8% for the March-quarter, Thakur said. “We are seeing an erosion of 1 percentage point in offshore contracts and 3 percentage points on onshore, in new contracts,” he said. The software firm has $97 million in orders executable over the next 12 months, NIIT Technologies said in a statement. For fiscal 2008/09, NIIT Technologies signed orders worth $312 million, up 36% from last year. For the March quarter, it signed deals worth $46 million, adding five new clients. Close to half of the firm’s revenue comes from Europe, the Middle East and Africa, while the Americas contribute another 31%. NIIT Tech has said it is tapping its existing clients for contract extensions and new orders to counter the slowing deals from potential and new clients. Shares in NIIT Tech, currently valued at close to Rs6.1 billion, had lost nearly a quarter of their value in the March quarter, compared with a 2.6% rise in the sector index and a 0.6% uptick in the broader market. The shares ended down 2.8% at Rs104 rupees, while the Sensex was down 2.3%. Source: Home - Livemint.com | 26 May 2009 | 11:05 am K\'taka Bk seeks shareholders nod to raise Rs 500cr via QIPThe Karnataka Bank board is seeking shareholder nod to raise up to Rs 500 crore via the qualified institutional placement (QIP) route. Confirming the development, Ananthakrishna, the bank\'s chairman, said the QIP issue was an enabling resolution, details of which would be worked out later.Source: Moneycontrol Top Headlines | 26 May 2009 | 10:58 am NIIT Tech Q4 net falls 15 pct on hedging lossesNEW DELHI (Reuters) - NIIT Technologies Ltd's net profit for the quarter ended March slipped 15 percent on hedging losses and a tough business environment, its chief executive officer said on Tuesday.Source: Reuters: Money News | 26 May 2009 | 10:58 am Communists put brakes on industry after voteKOLKATA (Reuters) - India's communists will limit land acquisition for industry in their heartland state after voters angry over seizures of fertile farmland rebuffed them in a general election this month.Source: Reuters: Money News | 26 May 2009 | 10:56 am Will need QIP funds for capex, other infra projects: HCCPraveen Sood, CFO of Hindustan Construction Company (HCC) said that the companys current order book stood at Rs 16,000 crore. Adding to this, he said, qualified institutional placement (QIP) will be needed for capital expenditure, build, operate and transfer (BOT) projects and three other infrastructure projects.Source: Moneycontrol Top Headlines | 26 May 2009 | 10:54 am Jet Airways slips 8% on weak FY09 results - Business Standard
Source: Google News India - Business | 26 May 2009 | 10:47 am Indian shares fall 2.3 pct on weak Asia, Europe - Reuters
Source: Google News India - Business | 26 May 2009 | 10:40 am BSE Sensex falls 2.3 pct on weak Asia, EuropeMUMBAI (Reuters) – The BSE Sensex snapped a two-day rise and fell 2.3 percent on Tuesday as tensions arising from North Korea's nuclear test dented investor confidence across Asia and Europe amid renewed jitters about the global economy.Source: Reuters: Money News | 26 May 2009 | 10:39 am Bata keen to enter defence, paramilitary segmentFootwear manufacturer Bata India Limited plans to enter the defence and paramilitary segments, for which it has put in place a dedicated team to secure contracts.Source: Daily News & Analysis: Money News | 26 May 2009 | 10:39 am Bharti-MTN deal to add new dimension to South-South Co-opFinance Minister Pranab Mukherjee said the proposed 23 billion dollar Bharti-MTN deal will add a new dimension to South-South cooperation.Source: Daily News & Analysis: Money News | 26 May 2009 | 10:37 am Seafood exporters want separate fisheries ministryA seafood exporters' lobby in Kerala has urged the government to create a separate ministry for fisheries and wants K.V. Thomas, a Congress party parliamentarian from the state, to head it.Source: IndiaeNews.com: Business News | 26 May 2009 | 10:31 am Mamata takes charge, spells out thrust areasRailways Minister Mamata Banerjee, who broke convention Tuesday to take charge of her portfolio here instead of the national capital, identified the speedy completion of eastern freight corridor as being crucial to her scheme of things.Source: IndiaeNews.com: Business News | 26 May 2009 | 10:31 am Markets in red, Sensex sheds 324 pointsIndian equities markets ended trade in the red Tuesday, with a key index closing 324 points lower than its previous close.Source: IndiaeNews.com: Business News | 26 May 2009 | 10:30 am Fiscal deficit ceiling needs fresh look: Pranab MukherjeeAccepting that the two financial stimulus packages and a relaxed monetary policy have put pressures on India's fiscal deficit, Finance Minister Pranab Mukherjee Tuesday hinted the fiscal deficit ceiling could be raised, saying it neded a 'fresh look'.Source: IndiaeNews.com: Business News | 26 May 2009 | 10:30 am Karnataka Bank Q4 net rises 3%, stock pares gains - Business Standard
Source: Google News India - Business | 26 May 2009 | 10:29 am Govt set to allow France's Dassault in fighter dealNEW DELHI (Reuters) - India may reverse a decision blocking France's Dassault Aviation from bidding for a $10.4 billion fighter jets deal after the company clarified technical details, an Indian military official said on Tuesday.Source: Reuters: Money News | 26 May 2009 | 10:25 am Bharti-MTN largest global telecom deal this yearThe Bharti Airtel and MTN group's proposed USD 23-billion mega deal is the largest global telecommunications transaction this year.Source: Daily News & Analysis: Money News | 26 May 2009 | 10:20 am Daiichi\'s role in Ranbaxy more defined now: Pharma AsiaVikas Dandekar of pharmasianews.com said that the 20% upsurge not expected. This act brings a lot of clarity on Daiichis role and that created confidence.Source: Moneycontrol Top Headlines | 26 May 2009 | 10:15 am Bharti to need $4bn to fund MTN deal: KPMGBhartiAirtel, the Indian telecommunication company and MTN, the African telecommunication company, are talking for a strategic partnership, which will see Bharti acquire a 49% shareholding in MTN. MTN and its shareholders would acquire an approximate 36% economic interest in Bharti.Source: Moneycontrol Top Headlines | 26 May 2009 | 10:13 am AI pilots to meet CMD on Thursday to discuss eco-class travelThe Indian Pilots' Guild plans to meet the Air India CMD to put across its stand on the management's directives on economy-class travel.Source: Daily News & Analysis: Money News | 26 May 2009 | 10:11 am Cabinet expansion likely on ThursdayNew Delhi: The Union council of ministers is expected to be expanded on Thursday during which representatives of Dravida Munnetra Kazhagam (DMK) and other United Progressive Alliance (UPA) allies would be among those inducted in the government. The indications of the second phase of swearing-in taking place on Thursday came after a Congress core group meeting chaired by party president Sonia Gandhi here on Tuesday. The meeting, which was attended by finance minister Pranab Mukherjee, defence minister AK Antony, political secretary to the Congress president Ahmed Patel, discussed threadbare allocation of ministerial berths and portfolios. Sources said issues related to allocation of ministerial berths and portfolios have been sorted out with all allies. There was speculation that Trinamool Congress (TMC) leader Mamata Banerjee wanted eight ministerial berths -- one Cabinet and seven ministers of state -- against the seven -- one Cabinet and six MoS -- already allocated to her party. However, sources said there were no issues with TMC. Nationalist Congress Party (NCP) leader Praful Patel will retain civil aviation, the sources said after the meeting. Even in Congress, there have been pulls and pressures over the ministerial berths and portfolios, but sources said such matters have been addressed. Prime Minister Manmohan Singh and Sonia Gandhi on Monday had a four-hour-long meeting to discuss expansion of the council of ministers which was initially expected on Tuesday. Source: Home - Livemint.com | 26 May 2009 | 10:07 am Heavy govt borrowing may dry liquidity for firmsNEW DELHI (Reuters) - Indian companies, which are increasingly turning to a liquidity-flush domestic debt market for funds, may find that window drying up as the government mops up money through its already bloated borrowing plan.Source: Reuters: Money News | 26 May 2009 | 9:47 am Jet Airways warns of ‘challenging’ 2009Mumbai: India’s largest private-sector airline, Jet Airways, forecast on Tuesday that business conditions will remain “challenging” due to recession after reporting it had swung to a fourth-quarter profit. Jet announced on Monday a net profit of Rs529.9 million ($11.04 million) in the three months to March, helped by cost-cutting and lower fuel prices, after posting a Rs2.21 billion loss in the same period last year. “We expect the year ahead to be challenging in terms of continued sluggish demand for air traffic on local and international routes,” Jet Airways said in a statement issued on Tuesday. “The global recession will continue to impact corporate travel as earnings slow down,” the statement said. “With the upcoming lean (monsoon) season, load factors and yields will continue to be under severe pressure,” it added. Jet shares were down Rs14.5 or 4.64% at 291.1 in early afternoon trade on the Mumbai stock exchange. For the full year ending March, the carrier announced its net loss had widened to Rs4.02 billion from a net loss of Rs2.53 billion the previous year. To lower costs, Jet has leased out long-haul aircraft and pared international and local routes. Jet, which runs budget carrier Jet Lite, earlier this month introduced another no-frills airline, Jet Airways Konnect, to boost passenger traffic. “The company is adapting to new market realities and intends to capture price sensitive markets,” the airline said in Tuesday’s statement. The number of domestic flyers in India dropped 15% in April from a year earlier, according to civil aviation figures. Sector losses for the fiscal year ending in March 2009 are estimated to have nearly doubled from the previous 12-month period to $1.75 billion, Kapil Kaul, India head of the consultancy Centre for Asia Pacific Aviation said recently. Source: Home - Livemint.com | 26 May 2009 | 9:47 am Sensex may touch 19,500 mark this year: analystsNew Delhi: Driven by the election outcome, the Bombay Stock Exchange benchmark sensitive index, or Sensex, could catapult to 19,500 level this year, provided the government pushes through the reform agenda, analysts said. Market experts believe that the reforms expected to be carried out by the Congress-led government may keep the market sentiment upbeat and propel the Sensex to regain the levels, it had seen in 2007, in the months ahead. “Our upside target for the Sensex is 19,500 this year which the index may climb if the government surprises us with a phenomenal budget,” Morgan Stanley managing director Ridham Desai said in an investor summit arranged by television channel CNBC-TV 18 here. However, more probability for the index is to remain in mid-15,000 levels or about 10% higher than current levels, he said. The financial sector reforms which are there before the government include raising FDI cap from present level of 26% from 49% through amendment in Insurance Act, pension reform and banking sector reforms. Echoing similar view, Reliance Capital Asset Management equities head Madhusudan Kela said 19,500 levels were possible this year but would depend if the government aggressively carries out the expected reforms. Meanwhile, if the global market turn downwards and the government fails terribly to keep up public expectations, the BSE index may see a level of 8,500 on the downside, Desai added. Further, if the S&P 500 index falls below the 666 points level then the domestic stock indices may give in to pressure and plunge into negative territory, analysts said. The Sensex has climbed around 40% to 13,800 levels, so far, this fiscal year. Besides, foreign institutional investors have also turned bullish on Indian equity markets and have made net investments to the tune of Rs14,586 crore (around $3 billion) in May so far. According to Ramesh Damani, member BSE, financial sector reforms as well as disinvestment should take place as it will be good for the sector and the economy as a whole. The coming Budget should give some signal as far as reforms are concerned, Damani said. Last year, the government tabled the Insurance Reforms Bill in the Rajya Sabha aimed at increasing the cap on foreign investment in private companies in the sector from 26% to 49%. Source: Home - Livemint.com | 26 May 2009 | 9:46 am WalMart ready to launch its Indian avatarWalMart is all set to launch its cash and carry store in India. But don\'t expect to find a WalMart store because its Indian avatar is a bestprice modern wholesale. WalMart India President Raj Jain said, WalMart would offer much cheaper products. In commodities, it could be 23% lower, in branded goods it could be as much as 10% lower.Source: Moneycontrol Top Headlines | 26 May 2009 | 9:41 am Dishman Pharma locked at 20% upper circuit - Moneycontrol.com
Source: Google News India - Business | 26 May 2009 | 9:34 am Bidders make final push for GM unit OpelBerlin: Germany denied it was considering a possible breakup of carmaker Opel ahead of a crucial final round of meetings on Tuesday between the government and top executives from Italian suitor Fiat. Fiat chief executive Sergio Marchionne was due to meet Chancellor Angela Merkel on Tuesday morning to try to address Berlin’s concerns about his bid for Opel, the Ruesselsheim-based unit of US carmaker General Motors. Fiat vice chairman John Elkann was also in the German capital and due to meet economy minister Karl Theodor zu Guttenberg. Guttenberg’s ministry denied a report in German daily Bild that he had evoked the possibility of an Opel liquidation in an internal paper after deciding that none of the three offers for the carmaker was economically sustainable. In addition to Fiat, Canadian car parts group Magna and Belgium-listed industrial holding RHJ International have also submitted offers for Opel. “There is no such economy ministry document,” a ministry spokesman said. The document in question was provided by an external consulting firm and did not reflect Guttenberg’s view, the spokesman added. The German government has made clear that GM will have the final word on who buys Opel, but Berlin will play a crucial role in that decision because it is being asked to cough up billions of euros worth of loan guarantees as part of any deal. Opel has 25,000 workers at four plants in Germany and the carmaker’s fate has become a politically charged topic of debate in Berlin ahead of a federal election on 27 September. Merkel said on Monday that pressure to choose a preferred bidder was building ahead of a 1 June restructuring deadline for GM set by the US government, which could lead to a Chapter 11 bankruptcy filing by the Detroit-based carmaker. Merkel is due to host a top-level meeting on Wednesday evening where the German government is expected to settle on a preferred bidder. Last week top ministers said the Magna bid, which is backed by Russian investors, looked to be the best of the three. But since then, all three of the bidders have improved their offers, the government said, leaving a down-to-the-wire race for control of Opel, a group that traces its roots in Germany back to the 19th century. Magna and RHJ are expected to present their plans to Opel’s European labour representatives at the carmaker’s headquarters in Ruesselsheim later on Tuesday. Magna has said that under its plan, Opel’s employees would receive a 10% equity stake in the company, and sources familiar with the matter have said that RHJ has a similar proposal. Source: Home - Livemint.com | 26 May 2009 | 9:30 am Gujarat-based pharma firms in pink of healthIn the time of economic slowdown when major companies are facing pressure on their balancesheets, Gujarat-based pharmaceutical firm have registered a healthy growth.Source: Daily News & Analysis: Money News | 26 May 2009 | 9:03 am Facebook gives serious competition to Google searchTokyo: Google has long been the king of search, dominating rivals including Yahoo Inc. and Microsoft Corp. But it increasingly sees social networks such as Facebook as challengers to its search engine, a company official said on Monday. As people search out advice online for everyday, personal decisions, the standard list of links served up by Google is not seen as intimate or trustworthy. For decisions such as choosing a restaurant or a day care provider, social networking sites or known review sites have an advantage, said Google Group Product Manager Ken Tokusei. Such sites offer information from friends or acquaintances, and Tokusei said users tend to trust that information more. This puts Google’s results at a disadvantage. “We haven’t gotten to the point where results are seen as if they come from someone you know,” said Tokusei. The search giant has begun to offer tools for users to rate results and delete unrelated links, but it still has work to do, he said. As Internet users gain savvy and experience, they also expect better-honed answers to queries. Sites such as WolframAlpha, launched earlier this month, comb the Internet for data, and analyze it to provide specific answers to queries, rather than a list of sites. Google Inc. does something similar for some searches, providing price quotes for “Sony stock” or an answer for “Tunisia capital.” But it also provides the familiar list of sites to dig further, a strategy it is unlikely to change. Google has developed a host of expanding tools and services, from a mobile operating system to an online word processor, but it devotes 70% of its employees and resources to search. The company still faces fresh competition from its traditional rivals, which are regrouping in an attempt to take back market share. Microsoft has failed to make much headway in repeated Internet ventures. But the deep-pocketed company, which has poured hundreds of millions of dollars into improving its search engine, continues to develop a new search technology, part of which is called “Kumo” internally. Yahoo, which has seen its market share plummet to Google, is tweaking its search results, cutting out some links and emphasizing images and video. Microsoft Chief Executive Steve Ballmer has said he is still interested in buying part of Yahoo, after a proposed deal was turned down last year. Source: Tech News - Livemint.com | 26 May 2009 | 8:58 am Honda unveils `CBF Stunner`- new version of sports bike - Myiris.com
Source: Google News India - Business | 26 May 2009 | 8:57 am Parsvnath board approves proposal to raise up to Rs 2500 crParsvnath Developers announced on Monday that its board of directors have approved a proposal to raise up to Rs 2,500 crore by issuing fresh shares to institutional buyers.Source: Moneycontrol Top Headlines | 26 May 2009 | 8:50 am IPL2 finals score record ratingsA grand finale with a nailbiting finish on a Sunday evening led to the highest TVRs recorded at IPL2 at 8.3 with 11.3 million viewers watching the tournament.Source: Moneycontrol Top Headlines | 26 May 2009 | 8:43 am Sensex may touch 19,500 level this year: AnalystsDriven by the election outcome, the Sensex could catapult to 19,500 level this year, provided the government pushes through the reform agenda.Source: Daily News & Analysis: Money News | 26 May 2009 | 8:36 am Mamata take charge of railway ministry in KolkataConcerned over the plight of people in cyclone-hit West Bengal, Mamata Banerjee broke tradition Tuesday to formally take charge of her railways portfolio at the Eastern Railway headquarters instead of New Delhi.Source: IndiaeNews.com: Business News | 26 May 2009 | 8:33 am Bharti, Del Monte launch food products rangeBharti group, promoted by the Delhi-based Mittal family, has ventured into food and beverage products in partnership with the Singapore-based Del Monte Pacific at an initial investment of Rs.1 billion ($20 million/Rs.100 crore).Source: IndiaeNews.com: Business News | 26 May 2009 | 8:32 am Karnataka Bank seeks shareholders' nod to raise Rs 500 crKarnataka Bank said it will seek shareholders' approval to raise Rs 500 crore through qualified institutional placement (QIP).Source: Daily News & Analysis: Money News | 26 May 2009 | 6:03 am GM, Chrysler restructuring reaching govt deadlineDetroit/Washington: United Auto Workers’ officials will gather on Tuesday to hear how many more US factory jobs GM will cut as the embattled automaker enters what could be its last week outside bankruptcy. Union officials representing 54,000 General Motors Corp workers are scheduled to meet in Detroit to prepare for a quick ratification vote on a cost-cutting labor deal negotiated last week. The union aims to complete those votes by Thursday. Approval of the contract, which would change payment terms on $20 billion owed to a UAW trust fund, represents one of the hurdles for GM to clear before a 1 June deadline set by the Obama administration. GM, which has received $19.4 billion in government funding since the beginning of the year, has been struggling to cut costs and reduce debts in order to continue to receive more government aid. The company on Friday said it expected to need another $7.6 billion from the US Treasury after 1 June. Across the border in Canada, GM workers at plants in Ontario on Monday ratified concessions negotiated last week with a vote of 86 percent in favor. “This has been a grueling restructuring process, and no one has felt that more than our members and retirees,” Canadian Auto Workers President Ken Lewenza said in a statement. The new contract cuts GM’s hourly labor costs in Canada by almost 30%, including an earlier round of concessions. Meanwhile, GM and the US autos task force worked through the weekend on a restructuring expected to send the automaker into bankruptcy. “We have routine and frequent contact with the task force,” GM spokesman Greg Martin said of the White House-appointed panel overseeing the overhaul of GM and bankrupt Chrysler. GM faces a series of interim deadlines through this week. That includes a decision expected this week by the German government on the preferred bidder for GM’s Opel unit. GM will also learn on Wednesday how much of its $27 billion in bond debt was tendered in exchange for shares. GM has set a target of slashing 90% of its bond debt, a goal analysts see as unreachable. Wednesday’s bondholder deadline for GM coincides with an equally crucial turning point for its smaller rival Chrysler, which has been operating in bankruptcy since 30 April. Bankruptcy Judge Arthur Gonzalez could rule as early as Wednesday on whether Chrysler will be allowed to sell its most valuable assets to a new company that would be under the operational control of Italy’s Fiat SpA. If that approval is granted, a deal to create a merged Chrysler-Fiat with the backing of the US government could be closed by the middle of next month. The fiercest opposition has come from the ranks of the 789 dealers that Chrysler wants to drop from its retail network. “Instead of allowing the free market to determine which dealers survive, Chrysler and the government are effectively playing the roles of judge, jury and executioner,” a committee of dealers opposed to the action said in an e-mail seeking support for their position on Monday. About 330 Chrysler dealers from 47 states have joined the group, lawyers for the group said in a court filing on Monday. Rushing on government time A US Treasury spokeswoman declined to comment on the status of GM negotiations. GM and the UAW reached a tentative contract last week but details of the proposed pact have not yet been released. Local UAW bargaining units posted notices for workers to be prepared to vote on the new contract within a day after they were briefed on its details. That fast-track schedule is needed “to meet the United States government-issued deadline,” UAW Local 276 President Enrique Flores said in posting on the local’s website. A key question is whether GM rolled back on plans to cut 21,000 UAW-represented factory jobs at the same time that it presses ahead with increased imports to the United States from its factories in China, Mexico and South Korea. Under pressure from the Obama administration, GM has been rushing to complete plans to cut costs and debt and spin off brands including Saab, Opel, Hummer and Saturn. But bondholders have balked at proposals that they forgive debt in exchange for a 10 percent stake in a restructured company. Under GM’s current plan, a UAW trust fund for health care would get about a 39% GM stake. The US Treasury would hold a 50 percent stake. Current shareholders would be left with just 1% of a restructured company. The standoff between GM and its bondholders sets the stage for a bankruptcy filing, analysts have said. A person familiar with Obama administration thinking on the matter said the administration was continuing to engage with GM bondholders to reach agreement on restructuring. The person, who was not authorized to speak publicly on the situation, reiterated that there were no plans to steer GM into a bankruptcy filing before 1 June. Shares of GM, which the automaker has warned could be worthless in a bankruptcy, fell 36% from their highs in volatile trade last week to $1.43. The US government has provided a combined $36.6 billion to GM, Chrysler and their financing units since December. Source: World Business - Livemint.com | 26 May 2009 | 5:49 am Rupee Slides Most in Three Months on Stocks, Technical Factor - Bloomberg
Source: Google News India - Business | 26 May 2009 | 5:07 am Sensex up 78 points at 13,991.46 in early tradeThe Bombay Stock Exchange benchmark Sensex moved up over 78 points in early trade, extending its gains for the third session.Source: Daily News & Analysis: Money News | 26 May 2009 | 4:27 am Rupee down 16 paise against dollar in early tradeThe Indian rupee weakened 16 paise against the US dollar in early trade on Tuesday on capital outflow by foreign funds in anticipation that the domestic markets may open down, in tandem with other Asian bourses.Source: India Business News | Business News - Times of India | 26 May 2009 | 3:59 am Crunch time looms for GM, Chrysler restructuringDETROIT/WASHINGTON (Reuters) - United Auto Workers' officials will gather on Tuesday to hear how many more U.S factory jobs GM will cut as the embattled automaker enters what could be its last week outside bankruptcy.Source: Reuters: Money News | 26 May 2009 | 12:45 am Day Trading GuideNote: In a buy recommendation, the resistances would be the targets and the nearest support would be the stop loss; In a sell recommendation, the supports would be the targets and the nearest resistance would be theSource: Business Line - Home Page | 26 May 2009 | 12:00 am Bharti, MTN set to ring new $23-b merger toneNew Delhi, May 25 Bharti Airtel Ltd and South Africa’s MTN Group have restarted merger talks to create a $20-billion (in revenue terms) emerging markets telecom entity, a year after previous talks broke down over who would control theSource: Business Line - Home Page | 26 May 2009 | 12:00 am HCL Info nets Rs 240-cr BSNL system integration orderHCL Infosystems on Monday said it has bagged a Rs 240-crore system integration order from state-run Bharat Sanchar Nigam Ltd (BSNL).Source: Business Line - Home Page | 26 May 2009 | 12:00 am Jet Air posts Rs 53-cr profit in Q4Mumbai, May 25 Thanks to a reduced fuel bill and a jump in other operating income, Jet Airways has posted a net profit of Rs 53 crore in the fourth quarter ended March 31, 2009 against a net loss of Rs 221 crore in the same period a yearSource: Business Line - Home Page | 26 May 2009 | 12:00 am 25 kg grain at Rs 3 a kg unlikely to be a costly dealNew Delhi, May 25 The Congress Party poll manifesto’s pledge to provide 25 kg of rice or wheat a month at Rs 3 a kg to every family living below the poverty line (BPL) by law will not entail any extra food subsidy outgo for theSource: Business Line - Home Page | 26 May 2009 | 12:00 am Cenvat rate taxes MinistryThere is a difference of opinion in the Finance Ministry on the way the Cenvat rate (excise duty rate) should move in the coming days. Different groups are pulling in differentSource: Business Line - Home Page | 26 May 2009 | 12:00 am Global auto-makers tap Indian talent for overseas design centresNew Delhi, May 25 Global auto-makers are picking up talent from their Indian research and development centres for deputation to their headquarters.Source: Business Line - Home Page | 26 May 2009 | 12:00 am Gas from PY-1 likely to be available by July-AugustChennai, May 25 The decade-and-a-half wait is coming to an end. Natural gas from the PY-1 field in the Bay of Bengal will be ready for consumption by the end of July, or at least by August, according toSource: Business Line - Home Page | 26 May 2009 | 12:00 am Overseas investors indulge in profit bookingMumbai, 25 May The FIIs who have been net buyers of equity for Rs 11,580 crore in May so far, have sold equities for a net amount of Rs 1,750 crore in the last three trading sessions of last week. (On Monday though, they were net buyers for RsSource: Business Line - Home Page | 26 May 2009 | 12:00 am Orchid Chemicals (Rs 129.95): BuyWe recommend a buy in the Orchid Chemicals & Pharmaceuticals from a short-term horizon. It is evident from the charts of Orchid Chemicals that after recording a multi-year low of Rs 56 in early March, it began to trend up. Since then, theSource: Business Line - Home Page | 26 May 2009 | 12:00 am India set to have 1bn mobile users by '14DoT, in a first ever forecast of mobile penetration across India for the next six years, has projected a billion mobile phones by 2014.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:34 pm India now a player in M&A premier leagueIndia will enter the global pecking order of the largest M&A's done so far this year with the proposed Bharti Airtel-MTN deal. It will be the third largest deal so far in 2009.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:31 pm The rise and rise of BhartiIf there is one sector that exemplifies the success of Indias reforms, it is probably telecom.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:30 pm Watch out for more dealsEven as the fine print of Bharti's proposed share-swap deal with MTN is being finalised, it is bound to be watched by a lot of other Indian telecom companies with great interest.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:27 pm VC, PE funds cashing in on market rallyThe buoyant markets have helped private equity to gain some lost ground in their investments and book handsome profits.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:24 pm 'MTN will be open to compromise'Soon after the failure of talks with Bharti in May last year, MTN held discussions with rival Reliance Communications, but they too failed.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:20 pm Bharti scrip dips 5% on fears of EPS declineThe proposed deal between Bharti Airtel and MTN is being weighed down by the latter's past overtures for merger to most of world's top telecom companies only to back out mid-way through.Source: India Business News | Business News - Times of India | 25 May 2009 | 10:18 pm Short-term debt funds are the new FMPsWhile their returns are impressive, fears of a rise in interest rates loom.Source: Daily News & Analysis: Money News | 25 May 2009 | 9:29 pm Will Bharti connect this time around?Telecom giant Bharti Airtel and South African major MTN are locked in talks for a possible cross-border transaction valued at over $23 billion.Source: Daily News & Analysis: Money News | 25 May 2009 | 9:27 pm 6 months after 26/11, modernisation of police stalled by PSU infightingExactly six months ago, on what has come to be known as 26/11, Indian security men in Mumbai, clutching antiquated rifles, fled shamefully before a handful of well-armed terrorists. Now, documents available with Business Standard reveal that if a similar attack were to take place today, much the same might happen. The reason: infighting within the government has scuttled the Ministry of Home Affairs bid to equip its police with modern weaponry.Source: Business Standard | Front Page Headlines | 25 May 2009 | 6:37 pm Short of cash, govt plans to revive disinvestment ministryThe government plans to resurrect the ministry of disinvestment in a bid to raise resources by selling its shareholding in public sector companies.Source: Business Standard | Front Page Headlines | 25 May 2009 | 6:35 pm Bharti, MTN talk merger after one-year hiatusIndian companys share price tanks on news of complex cash and share-swap deal.Source: Business Standard | Front Page Headlines | 25 May 2009 | 6:33 pm Samsung may win dual-SIM patent caseMumbai: The Mumbai commissioner of customs has ruled that importers of dual-SIM mobile phones, such as Samsung India Electronics Pvt Ltd and Chennai-based Hansum India Ltd, have not infringed a patent held by Madurai-based engineer S. Ramkumar. SIM, or subscriber identification module, is the technology that uniquely identifies a mobile phone connection. After hearing Samsung as well as the patent holder on a petition filed by the Korean firm at Mumbai Customs last week, Mumbai commissioner of customs (imports) Mathew John ruled that the claim made by Ramkumar was “vexatious.” The imports did not infringe the patent granted to him, John said. The Chennai patent office had in January 2008 granted a patent to Ramkumar for mobile phones with the capability of using two SIM cards. Under the patent, Ramkumar appealed to customs officials at all airports to seize the imports of such phones unless they are licensed by the patent holder for a fee ranging between Rs35 and Rs50 a handset. These phones are imported by at least 15 companies including Samsung, LG Electronics India Ltd and several domestic importers. While the patent has been challenged by Samsung, Spice Mobile Ltd and a few members of the Indian Cellular Association at the Indian patent dispute redressal forum Intellectual Property Appellate Board (IPAB) by post-grant opposition, customs authorities had already seized imports at a number of airports. “Demurrage and other warehousing charges arising due to suspension of clearance are liquidated amounts and are to be borne by the patent holder,” John said in his ruling. The Chennai commissioner of customs had also ruled in favour of the importers early last week. This is the first time that the customs officials have ruled in a patent case. A Samsung Electronics spokesperson in India said, “We welcome the decision of the Customs authority, and our position on this issue has been upheld.” Ramkumar was not available for comment on Monday. Source: Tech News - Livemint.com | 25 May 2009 | 5:12 pm Toyota denies report on possible GM hybrid deal!Toyota denied a Japanese media report Monday that it was studying a possible deal to offer its hybrid technology to General Motors Corp. if the US automaker expresses any interest.Source: Zee News : Business | 25 May 2009 | 12:26 pm Sensex rises 121 pts in early trade!Sensex rose over 120 pts in early trade on the back of increased buying by funds as well as retail investors on hopes of an acceleration in economic reforms by the new Government, although other Asian bourses are in the negative.Source: Zee News : Business | 25 May 2009 | 12:26 pm Oil holds above $60 in Asia!Oil held above USD 60 a barrel in Asian trade on Monday ahead of a meeting this week of the Organisation of Petroleum Exporting Countries (OPEC).Source: Zee News : Business | 25 May 2009 | 12:26 pm PetroChina buys 45.5% of Singapore refiner!PetroChina, the listed unit of China`s biggest oil and gas producer, said it had agreed to buy a stake in refiner Singapore Petroleum Co. for USD 1.02 billion.Source: Zee News : Business | 25 May 2009 | 12:26 pm Toshiba to cut costs by $3.5 bn!Japanese electronics giant Toshiba plans to reduce fixed costs 10 percent more than previously announced, a news report said on Sunday.Source: Zee News : Business | 25 May 2009 | 12:26 pm US not moving toward socialism: Geithner!US Treasury Secretary Timothy Geithner dismissed as ridiculous charges that the administration of President Barack Obama was moving the United States toward socialism.Source: Zee News : Business | 25 May 2009 | 12:26 pm MTN deal value more than $23 bn: Bharti!Sunil Mittal-promoted Bharti Airtel renewed its effort for acquiring 49 per cent stake in South African telecom giant MTN and the two companies have agreed to discuss the potential transaction exclusively by July 31 this year. The potential value of the deal is said to be in excess of USD 23 billion.Source: Zee News : Business | 25 May 2009 | 12:26 pm World Bank chief warns about economic crisis!The global economic crisis could lead to dangerous social upheaval if certain steps are not taken, World Bank chief Robert Zoellick warned in an interview Sunday.Source: Zee News : Business | 25 May 2009 | 12:26 pm
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