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RComm audit case: ADAG says \'vicious campaign\' at workAnil Ambani has hit out at the government and \'corporate rivals\' and charged them with running a misinformation campaign to defame ADAG. Ambani said nonissues were being raised ahead of the gas case hearing.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 9:33 am See 5060% jump in H2 FY10 sales due to base effect: ALLIs there really any growth on ground in the CV segment? K Sridharan, CFO of Ashok Leyland answersSource: Moneycontrol Top Headlines | 15 Oct 2009 | 9:18 am Cognizant buys UBS\' Indian BPOUSbased tech company Cognizant has acquired the Indiabased captive business process outsourcing (BPO) of UBS. UBS currently employs 2,000 people at its BPO. Cognizant has entered a multiyear services agreement with UBS.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 8:18 am Patel Engg\'s QIP book may open today: SourcesPatel Engineerings qualified institutional placement (QIP) book is likely to open today, reports CNBCTV18 quoting sources. According to sources, the QIP size is at USD 100 million and the QIP floor price is at Rs 477. It is believed that Antique is the bookrunner for Patel Engineerings QIP issue.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 7:57 am Shree Precoated Steel relists on exchanges todayMaharashtrabased Shree Precoated Steel relisted on the bourses after demerger. Essar Steel acquired Shree Precoated Steel for Rs 600 crore. The share listed at Rs 50 on the BSE.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 5:16 am FCS Software to raise Rs 110cr via GDR issueFCS Software Solutions is looking to raise Rs 110 crore via global depositary receipt (GDR), says its CMD Dalip Kumar.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 4:34 am R-Comm audit case: ADAG says 'vicious campaign' at work - Moneycontrol.com
Source: Business - Google News | 15 Oct 2009 | 4:29 am Sensex ends flat; Metals, banks up - Economic Times
Source: Business - Google News | 15 Oct 2009 | 4:25 am Colors posts highest GRP ever by a Hindi GECColors channel has seen an above 80 points, or 30%, lead over rivals Star Plus and Zee in the general entertainment category last week. It has registered a huge jump of 338 GRP for the week ended October 10 versus last week\'s 270.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 4:20 am See key support level for rupee at 45.67/$: BNP Paribas - Moneycontrol.com
Source: Business - Google News | 15 Oct 2009 | 4:19 am BRIEF - Nokia sees Q4 handset market share flat vs Q3* Interim report Nokia Q3 2009 net sales EUR 9.8 billion, non-ifrs EPS EUR 0.17 (reported EPS EUR -0.15)Source: Reuters: Money News | 15 Oct 2009 | 4:12 am Indiabulls Power IPO subscribed 17 times - Business Standard
Source: Business - Google News | 15 Oct 2009 | 4:00 am Reliance Industries adopts capped structure of executive compensation - India Infoline.com
Source: Business - Google News | 15 Oct 2009 | 3:59 am ANALYSIS - Pawn lenders may shine as gold soarsBANGALORE (Reuters) - Soaring gold prices are expected to benefit U.S. pawn lenders as more people turn to one of the most ancient methods of borrowing -- pledging gold for cash.Source: Reuters: Money News | 15 Oct 2009 | 3:56 am Gold buyers throng shops for auspicious buysMUMBAI (Reuters) - Buyers in India, the world's largest consumer of gold, thronged shops to buy the yellow metal to invoke prosperity for Dhanteras, the biggest gold buying festival, as prices fell for a second straight session.Source: Reuters: Money News | 15 Oct 2009 | 3:54 am Cairn Plc sells 2.3% stake in Cairn IndiaCairn Plc has sold 2.3% stake in Cairn India to Petronas at Rs 260 per share. It has raised USD 240 million by selling 2.3% stake.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 3:45 am Allied Digital\'s QIP book opens, to raise $3550mAllied Digital\'s qualified institutional placement (QIP) book has opened, reports CNBCTV18, quoting sources.Source: Moneycontrol Top Headlines | 15 Oct 2009 | 3:44 am Bajaj net profit more than doubles in Q2 - Economic Times
Source: Business - Google News | 15 Oct 2009 | 3:42 am Bankers, India Inc doesn\'t see int rate hike in near termIntrest rate hike possibility is one of the key nearterm worries for the market. KV Kamath of ICICI Bank, said, \"Looking at the global context, monetary policy is in an easy state. Liquidity situation globally is not going to change.\" He expects India to start tightening rates by early next year. \"But till then, dont see too much happening.\"Source: Moneycontrol Top Headlines | 15 Oct 2009 | 3:34 am Diamond sales keep interest in gold aliveThe fact that people are opting for diamonds as gold prices are skyrocketing has actually kept interest in the yellow metal alive -- to an extent.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 3:32 am Soaring vegetable, fruit prices dampen Diwali spirit in BangaloreRuma Thakur, a homemaker in Bangalore, is clueless on how to manage the household budget this Diwali as prices of vegetables and fruits soar towards the sky.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 3:31 am Agriculture ministry will not oppose Bt brinjal blindly: Junior ministerThe agriculture ministry would not 'blindly oppose' the introduction of Bt brinjal, a genetically modified variety of the vegetable, after its commercialisation was approved by the Genetic Engineering Approval Committee (GEAC), Minister of State for Agriculture K.V. Thomas said here Thursday.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 3:30 am Bajaj net profit more than doubles in second quarterTwo-wheeler major Bajaj Auto Thursday reported a 117.85 percent rise in net profits to Rs.402.83 crore for the quarter ended Sep 30 from Rs.184.91 crore in the like period last fiscal.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 3:30 am NDTV to buy back 26% in subsidiary from NBC - Business Standard
Source: Business - Google News | 15 Oct 2009 | 3:17 am OCBC buying ING Asia private bank for $1.5 blnHONG KONG/SINGAPORE (Reuters) - Singapore's third-biggest bank, OCBC, announced its arrival as a serious wealth player on Thursday after clinching a surprise deal to buy Dutch-based ING's private banking unit in Asia for $1.5 billion.Source: Reuters: Money News | 15 Oct 2009 | 3:15 am Inflation close to 1 pct, RBI may hold ratesNEW DELHI (Reuters) - India's headline inflation rose at a slower-than-expected pace at the start of October, easing pressure on the Reserve Bank to tighten its monetary stance at its policy review later this month.Source: Reuters: Money News | 15 Oct 2009 | 3:06 am Petronas just short of open offer trigger for Cairn: Udayan - Moneycontrol.com
Source: Business - Google News | 15 Oct 2009 | 3:03 am Gold expensive by 34% over last DhanterasGold prices have jumped by 34% to Rs 16,200 per 10gm here on Dhanteras, a day considered auspicious for buying the precious metal, today.Source: Daily News & Analysis: Money News | 15 Oct 2009 | 3:02 am NDTV to buy back 26% from NBC UniversalMumbai: Media firm New Delhi Television (NDTV) on Thursday said it will buy back NBC Universal’s entire 26% stake in its subsidiary NDTV Networks Plc. In a filing to the Bombay Stock Exchange NDTV said the company, through its subsidiary, has agreed to buy back NBC Universal’s 26% stake in its subsidiary NDTV Networks Plc with an aim to consolidate its position. NDTV Networks Plc is the holding company of the non-news business of the broadcaster. However, the company has not disclosed the financial details of the transaction. In May last year, NBC Universal had entered into a strategic partnership with NDTV for an indirect 26% stake in NDTV Networks Plc. Shares of NDTV were trading at Rs161.55 on the BSE, up 2.57% from previous close Source: Home - Livemint.com | 15 Oct 2009 | 2:58 am GLOBAL MARKETS - Buoyant earnings boost stocks, hit dollarLONDON (Reuters) - Buoyant corporate earnings lifted investors sentiment again on Thursday, sending world stocks to near 13-month highs.Source: Reuters: Money News | 15 Oct 2009 | 2:57 am Meeting the GST deadlineWith less than six months to go, there is considerable concern that the Congress-led United Progressive Alliance will not be able to deliver on its promise of implementing a single goods and services tax (GST) by 1 April. Not without reason. In the last two months, we have gone from a situation of no return with the state governments effectively checkmating the Centre’s proposal by proposing a three-tier GST and then pulling back from the brink last week. That the states are willing to rethink is a good sign. The GST is the single biggest tax reform initiative since 1991, when the then Congress government had embarked on an accelerated phase of reforms. It will, among other things, ensure equitable sharing of the tax burden among manufactured goods and services (at present, while services accounts for 55% of the gross domestic product, its share in tax revenues works out to a little over 10%); lower the tax rate, encouraging compliance and widening the tax base; and, most importantly, unify the country into one single market—a powerful notion that would also work as a very effective political glue.  Illustration: Jayachandran / Mint Most state governments are convinced of the in-principle advantages of a GST, but baulk at the thought of incurring revenue losses in the transition and at the same time paying the political price of giving up their right to tax. These are legitimate fears and the Centre needs to provide the right assurances. Now, the Finance Commission—which has a stake in the debate since one of its terms of reference is GST—has offered to lend a helping hand by providing compensation to states suffering a revenue loss, provided, of course, they went through with the so-called flawless model. A significant reassurance that would hopefully nudge the reluctant among the flock to make the leap of faith. Can India implement a GST that does not distort markets? Tell us at views@livemint.com Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 2:57 am 26 killed as militants ambush Pakistani policeLahore: Militants unleashed coordinated attacks on Pakistani police in which 26 people died on Thursday, storming offices in Lahore and bombing a northwest station to escalate 11 days of carnage. The sophisticated assaults underscored the weakness of security forces seemingly unable to stop thwart high-profile attacks in the heart of Pakistan, despite promises of a new offensive against the Taliban near the Afghan border. Nuclear-armed Pakistan, which borders Afghanistan and is a key ally in the US-led fight against terror, is reeling from Taliban-linked attacks in which at least 149 people have died since 5 October. More than 20 gunmen stormed a commando academy in Bedian, on the outskirts of Lahore, a police school in the suburb of Manawan and the city branch of the Federal Investigation Agency (FIA) before security forces wrested back control. Pakistan’s weak civilian government said the country was facing a new war after a slew of militant attacks in the country’s political heartland of Punjab, away from the hotbed of insurgency in the northwest tribal region. “They are involved in guerrilla war. First they were active in NWFP (North West Frontier Province), now they are engaged in Punjab. They are terrorists paid to destabilize Pakistan,” interior minister Rehman Malik told reporters. Security officials said 10 attackers were either shot dead or blew themselves up in the attacks around Lahore, Pakistan’s cultural capital, and that they were investigating reports that women were among the assailants. Lahore city police chief Pervez Rathor said four attackers died at Manawan, and one assailant and six security officials perished at the FIA. The siege at Bedian dragged on around four hours before the army announced it was in full control. A senior commander said five attackers were either shot dead or blew themselves up. “The situation inside Bedian centre is completely under control,” said Major General Shafqat Ahmad, the top military commander in the eastern city. The commander denied that the gunmen had taken hostages during the siege, but said mothers and wives who lived on the academy grounds may have themselves locked doors and hunkered down during the exchanges of fire. US President Barack Obama is poised to sign a bill giving $7.5 billion to build schools, roads and democratic institutions in Pakistan as part of a strategy to discredit extremists in the nation and in Afghanistan. Thursday’s attacks underscored poor police security. The training center at Manawan was attacked on 30 March. Eight police recruits died before security forces finally overpowered the multi-pronged assault after nearly eight hours. The FIA building in Lahore was bombed in March 2008, killing 16 people. In the northwest town of Kohat near Peshawar, regional police chief Abdullah Khan said 10 people were killed on Thursday. “It was a van suicide attack,” Khan told AFP. Police said the bomber rammed his vehicle into the outer wall of the police station in Kohat and that the building was badly damaged. Tens of thousands of people have fled the lawless tribal region ahead of an expected army offensive. Warplanes are pounding Taliban positions and a US missile strike killed the head of the Pakistani Taliban in August. At least 52 civilians were killed on Friday last week when a suicide bomber blew up his car in a packed market in Peshawar. The following day, Taliban-linked gunmen staged an audacious raid on army headquarters near Islamabad with 23 people killed in a day-long siege that also saw 39 hostages freed by commando troops. After the militants’ brazen headquarters assault, speculation has intensified that the military is preparing to go into the militant stronghold of South Warizistan, months after the government promised a ground operation. On Thursday, a US drone missile attack on a suspected militant hideout in remote North Waziristan killed at least four people, security officials said. The pre-dawn strike targeted the suspected militant compound in Dandey Darpa Khel near the Afghan border, a security official said. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 2:50 am EU may take India to WTO again; seeks cut on levies on winesThe European Union (EU) has warned that it will drag India to the World Trade Organisation (WTO) if New Delhi does not slash taxes on wines and spirits imported from EuropeSource: Daily News & Analysis: Money News | 15 Oct 2009 | 2:47 am LG Display posts record profit, mild downturn aheadSEOUL (Reuters) - The world's No.2 maker of liquid crystal display screens, LG Display, offered an upbeat outlook after posting a record profit on higher prices, saying an industry downturn would be milder than expected.Source: Reuters: Money News | 15 Oct 2009 | 2:45 am Birthday boy Raman Singh says Chhattisgarh to be power hubChhattisgarh Chief Minister Raman Singh, celebrating his 57th birthday Thursday, says the state is set to become the power hub of the country in the next seven years, given the Rs.250,000-crore investment it has lined up in the sector.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 2:32 am Oriental Insurance asked to pay Rs.6.77 lakh compensationOriental Insurance has been asked by the consumer forum here to pay Rs.6.77 lakh as compensation and Rs.5,000 as litigation cost to Makhan Singh, a sector 45 resident, who had got his car insured by the company.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 2:31 am Morgan Stanley lifts India’s growth view to 6.4%Mumbai: Morgan Stanley raised India’s FY10 growth forecast to 6.4% on a higher-than-expected August industrial output and said if the data continue to surprise on the upside policy rates could be lifted before end-2009. Morgan Stanley had previously forecast growth of 5.8% and expected policy rates to be lifted by January 2010. “However, we believe a rate hike would be unlikely to derail the recovery, as we see a potential increase as a move towards normalisation rather than tightening that would hurt growth,” economists Chetan Ahya and Tanvee Gupta wrote in an Oct. 14 note. Morgan Stanley expects the Reserve Bank of India (RBI) to hold rates at its 27 October quarterly monetary policy review, but sees a “more than even” chance of a hike in banks’ cash reserve ratio as a tool to sterilize rising capital inflows. Industrial production rose 10.4% in August from a year earlier, its fastest pace in 22 months, beating the median forecast in a Reuters poll, and July’s annual growth was revised up to 7.2% from 6.8%. Morgan Stanley also lifted its industrial production growth forecast for India to an average 8% year-on-year in fiscal year 2009-10 from 6.4% earlier, and its services sector growth view to 8.4% from 8.1%. It sees 8% economic growth in fiscal year 2010-11. On a calendar year basis, it expects India to grow 5.9% in 2009 and 7.9% in 2010. Morgan Stanley attributed the “strong recovery in growth” to aggressive fiscal policy and loose monetary policy. The RBI has slashed its key interest rate by 425 basis points between October 2008 and April and the government cut import and factory gate duties and boosted spending to shield India from the worst of the global downturn. The RBI governor, Duvvuri Subbarao, has said there was broad agreement India needed to step back from its easy policy stance, but he did not set a timeframe. Source: Home - Livemint.com | 15 Oct 2009 | 2:12 am Stocks drop; outsourcers fall on firm rupeeMumbai: Indian shares faltered after an early rise to a fresh 17-month high on Thursday met with resistance, as export-focused outsourcers fell on the back of a strengthening rupee. Reliance Industries climbed more than 1% after a senior company official said the energy giant was in advanced talks to acquire refinery and petrochemical units in the United States and Europe and could finalize a deal by end-2009. State Bank of India, the country’s top lender, was among the big gainers on hopes the Reserve Bank of India (RBI) would hold rates at its policy review on 27 October to help boost consumer spending. The central bank is expected to talk tough on inflation but hold off for now on an inevitable increase in interest rates when it reviews policy as fostering a recovery in growth takes precedence. Leading software services exporters Tata Consultancy Services and Infosys Technologies dropped around 2% each as the rupee raced to a near 13-month high against the dollar. The outsourcers get more than half their revenue from North America. By 1:33 pm, the 30-share BSE Index Sensex was down 0.77% at 17,098.96. It rose as much as 17,350.39 in early deals, its highest since 20 May 2008. “The way we have risen this year, some amount of resistance and portfolio churning will always come in at higher levels,” said Neeraj Dewan, director of Quantum Securities. “Though fundamentally the market looks expensive, global liquidity is likely to keep pouring in and driving it up as we have seen,” he said. Robust foreign fund inflows of $13 billion so far this year have lifted the benchmark index over 78% in 2009. Reliance, which has the heaviest weight in the index, was up 1% at Rs2,201. The company owns the world’s largest refinery complex in Gujarat, where it is looking to expand capacity at a new refinery to 720,000 barrels per day from 650,000 bpd, an executive told Reuters on Wednesday. State Bank was up 1.3% at Rs2,298.15. Annual inflation was at 0.92% in the 12 months to 3 October, higher that previous week’s annual rise of 0.7%, but lower a median forecast of a 1.46% in a Reuters poll. Infosys fell 2.1% to Rs2,208, while larger rival Tata Consultancy shed 1.8% to Rs582.17. In the broader market, gainers beat losers in the ratio of 1.4:1, with 201 million shares changing hands. The 50-share NSE index was 0.71% lower at 5,118.20. Source: Home - Livemint.com | 15 Oct 2009 | 2:06 am Inflation close to 1 pct, RBI may hold rates - Reuters India
Source: Business - Google News | 15 Oct 2009 | 2:01 am Rupee off near 13-month high as stocks shed gainsMumbai: The rupee came off a near-13-month peak in afternoon trade on Thursday as local shares pared gains on profit-taking and as oil refiners bought dollars to meet import requirements. At 1 pm, the partially convertible rupee was at 46.01/02 per dollar, off an early high of 45.80, its strongest since 24 September 2008 and above its previous close of 46.13/14. Shares fell 0.77% in afternoon trade as profit-taking kicked in following their rise to 17-month high the previous session. The dollar fell to a 14-month low against a basket of currencies on Thursday as comments by the head of Australia’s central bank encouraged investors to buy the higher-yielding Australian dollar, which helped other currencies gain. One-month offshore non-deliverable forward contracts were quoting at 45.80/90, stronger than the onshore spot rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at 46.05 and 46.0525 respectively, with the total traded volume on the two exchanges at about $1.7 billion. Source: Home - Livemint.com | 15 Oct 2009 | 2:00 am Inflation close to 1%, RBI may hold ratesNew Delhi: India’s headline inflation rose at a slower-than-expected pace at the start of October, easing pressure on the Reserve Bank to tighten its monetary stance at its policy review later this month. The widely watched wholesale price index rose by 0.92% in the 12 months to 3 October, well below market forecasts but above the previous week’s 0.7% annual rise. “Over the last couple of weeks this data has been coming in below consensus, and this reassures us that inflationary expectations, which were building up, may now be assuaged,” said Atsi Sheth, chief economist at Reliance Equities in Mumbai. “We still expect inflation to continue rising, however we don’t believe the rise will be worrying enough for the RBI to tighten aggressively over the next 12-month period,” she said. Prices of food, fuel and manufactured products fell on a weekly basis, which will give comfort to policy makers ahead of the Reserve Bank of India’s (RBI) monetary policy on 27 October. “The headline inflation is lower than expected. While some moderation was anticipated in line with lower prices of energy-related products, the decline in food article prices is welcome,” said Gunjan Gulati, economist at JPMorgan Chase in Mumbai. Analysts expect no change in interest rates at an 27 October policy review although some expect the RBI to take steps to mop up excess liquidity in the financial system. Top government officials have repeatedly outlined the need to continue with fiscal stimulus and an accommodative monetary stance to encourage a recovery in the pace of growth. RBI governor Duvvuri Subbarao has said there was broad agreement that India needs to retreat from its easy monetary stance, but warned of the risks in mistiming such a move. India’s worst monsoon since 1972, followed by floods in parts of the country have hurt crops, pushing up prices of food items by an annual 13.34% by early October and denting the broader economic recovery. Faster industrial expansion, reflecting rising consumer demand, is also expected to fan inflation in the coming months. Analysts expect inflation to rise at an accelerating pace and many predict it will surpass the Reserve Bank’s comfort level of 5% well before the end of the fiscal year on 31 Mach. The WPI has already risen close to 6% from 28 March, the last reading of the 2008-09 fiscal year, and annual consumer price inflation in August stood at 11.72%. The RBI left its key policy rate unchanged at its last quarterly review after cutting it by 425 basis points to 4.75% between October 2008 and April to support recovery in Asia’s third-largest economy. The RBI expects the economy to grow about 6% in the 2009-10 fiscal year, compared with 6.7% last year and 9% or more in between 2005-06 and 2007-08. The finance ministry’s chief economic adviser, however, expects 7% expansion in 2009-10 on the back of a robust factory output and receding global uncertainties. Source: Home - Livemint.com | 15 Oct 2009 | 1:46 am Inflation up at 0.92%; prices of food items softenInflation rose to 0.92% during the week ended October 3 from 0.75% a week ago even as prices of major food items declined.Source: Daily News & Analysis: Money News | 15 Oct 2009 | 1:42 am Polaris Software to acquire Laser Soft for Rs 52 cr - Economic Times
Source: Business - Google News | 15 Oct 2009 | 1:40 am Morgan Stanley lifts India growth view to 6.4 pctMUMBAI (Reuters) - Morgan Stanley raised India's FY10 growth forecast to 6.4 percent on a higher-than-expected August industrial output and said if the data continue to surprise on the upside policy rates could be lifted before end-2009.Source: Reuters: Money News | 15 Oct 2009 | 1:40 am Rupee off near 13-month high as stocks shed gainsMUMBAI (Reuters) - The rupee came off a near-13-month peak in afternoon trade on Thursday as local shares pared gains on profit-taking and as oil refiners bought dollars to meet import requirements.Source: Reuters: Money News | 15 Oct 2009 | 1:36 am BRIEF - Cognizant buys UBS India Service Center* Acquires UBS India service center, enters multi-year services agreement withSource: Reuters: Money News | 15 Oct 2009 | 1:34 am NREGA will work only when states implement it: RahulThe Congress-led government's job guarantee programme under the National Rural Employment Guarantee Act (NREGA) may be pro-poor but it will work only if state governments implement it well, Congress general secretary Rahul Gandhi said Thursday.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 1:31 am Runaway Canadian currency at near parity with dollarThe Canadian dollar has almost reached parity with the US greenback, with the loonie, as the Canadian currency is known, touching 98 cents US Wednesday. This is the highest level the Canadian currency has gained against the sinking greenback in 14 months.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 1:30 am Sensex falls steeply, down 0.43 percentA key index of the Indian equity markets was trading on a volatile note early Thursday afternoon and fell sharply to be 0.43 percent below its previous close.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 1:30 am Polaris Software to buy Laser Soft for Rs52 crMumbai: IT firm Polaris Software Lab on Thursday said it will acquire software product company, Laser Soft, for Rs52 crore. The company has signed a definitive agreement with Chennai based-Laser Soft and its principal shareholders to acquire its 100% equity shares, Polaris Software said in a filing to the Bombay Stock Exchange (BSE). “The value of the deal is about Rs52 crore all in cash, linked to performance,” it further said. The deal is subject to the regulatory approvals, Polaris said. Laser Soft is a software product company offering an entire range of banking operations, which includes core banking and specialized products like treasury, trade finance and cash management. Shares of Polaris Software Lab were trading at Rs149.20 on the BSE, up 0.74% from its previous close. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 1:09 am LG Display posts record Q3 operating profit, beats forecastSeoul: Flat-panel maker LG Display reported a record quarterly operating profit on Thursday, beating market forecasts, as strong demand and raw material shortages boosted prices for TV and computer screens. The world’s No. 2 maker of liquid crystal display (LCD) screens posted 904 billion won ($780.5 million) in operating profit in the third quarter to September, higher than a forecast of 893 billion won from Thomson Reuters. The result more than tripled the year-earlier operating profit of 254 billion won and topped the previous record of 889 billion won set in the second quarter of 2008. July-September net profit came in at 559 billion won, lower than a forecast of 798 billion won but still a sharp improvement from 295 billion won in the year-earlier quarter. The LCD industry has managed to recover quickly from a severe slowdown in late 2008, riding largely on the popularity of flat-screen TVs, while a shortage of key glass input sped a rebound in panel prices. A seasonal slowdown will probably weigh on the sector’s profits until the first quarter of next year, but analysts say the downturn will be milder than in previous years, thanks to low inventories and expected control of supplies by manufacturers. Shares of LG Display have fallen 10% since the end of August, against the wider market’s 4% gain, because of investors’ concerns over weakening earnings momentum. Source: Home - Livemint.com | 15 Oct 2009 | 1:05 am Polaris Software to acquire Laser Soft for Rs.52 crorePolaris Software, which caters to the banking, financial services and insurance space, is acquiring Laser Soft Infosystems, a competitor, for Rs.52 crore in a cash deal.Source: IndiaeNews.com: Business News | 15 Oct 2009 | 1:00 am India to convey to US anger over delay in action against HafizNew Delhi: India is expected to convey its unhappiness over the dilly-dallying by Pakistani authorities in taking action against JuD chief Hafiz Saeed to US Under Secretary of State William Burns, who has arrived here for a two-day visit. New Delhi considers Saeed as the mastermind of the 26/11 attacks though Pakistan has been claiming that there is not much evidence against him, as a result of which he continues to be a free man. The status of investigation into the Mumbai terror strikes is expected to be discussed when the two sides review bilateral ties. Burns will meet external affairs minister SM Krishna and national security advisor MK Narayanan and hold talks with foreign secretary Nirupama Rao. During the meetings, the two sides will also discuss aspects related to Prime Minister Manmohan Singh’s visit to Washington next month. While sharing India’s concern over the terrorist threat that could emanate from Pakistan, US ambassador Timothy Roemer on Wednesday sought prosecution of seven suspects of the Mumbai attacks, including Saeed. “It is very important that Pakistan prosecutes successfully the seven suspects of the Mumbai attacks, take the facts and evidence about Hafiz Saeed and prosecute him,” he had said. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 12:59 am Result preview: Bajaj AutoBajaj Auto is scheduled to announce its Q2 FY10 results today. The auto maker is expected to record a 16% y-o-y growth in its top-line to Rs2,842 cr, largely due to a 7.3% y-o-y growth in volumes for the quarter. Average realisation is also estimated to improve by around 8% y-o-y in Q2 FY10. A substantial decline in the raw material prices of steel and aluminum would help the operating margin improve by 592bps y-o-y to 19.4%. Thus, net profit is expected to grow by 90.6% y-o-y to Rs352.5 cr. At the CMP, the stock is trading at 15.3x its FY2011E EPS of Rs105. The stock is under review. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 12:55 am Result review: HDFC BankHDFC Bank announced its Q2 FY10 results on Wednesday, reporting a net profit growth of 30% y-o-y to Rs688 cr, in line with our estimates. While core balance sheet growth was low on a y-o-y basis, reflective of sectoral trends, there were initial signs of improving growth on a sequential basis. Advances increased 10% sequentially to Rs1,13,672 cr. On a YTD basis, the Bank’s Advances grew 14.8% in 1HFY2010, as against a growth of 3.7% for the banking system as a whole. Deposits reached Rs1,49,805 cr in 2QFY2009, up 12% y-o-y. Notably, total CASA deposits registered a strong growth of 28% y-o-y and 15% sequentially, leading to a sequential improvement in the CASA ratio to 50% (45%). On account of this, as well as an increase in the CD ratio to 76%, NIMs improved to 4.2% in 2QFY2010, as against 4.1% in 1QFY2010, driving a moderate 5% sequential growth in Net Interest Income. The Bank’s Fee income grew at a reasonably strong 18% y-o-y to Rs692 cr. The Bank also booked large treasury gains of Rs163 cr, and Forex and Derivative linked income of Rs151 cr. The Asset quality of the bank improved sequentially, with Gross NPAs at 1.8% (2.1% in 1QFY2010) and net NPAs at 0.5% (0.6% in 1QFY2010). The NPA coverage ratio based on specific provisions was at 70% in 2QFY2010 as compared to 65% as of 2QFY2009. The Bank also continued its focus on cost control, with operating expenses remaining flat sequentially, even though the Bank opened 90 branches and 191 ATMs during the quarter. We believe that HDFC Bank is among the most competitive banks in the sector and is poised to maintain its profitable growth over the long term. With its strong capital adequacy and substantial branch expansion, the Bank is well-placed to take advantage of the imminent revival in GDP growth. We believe that the bank’s competitive advantages are set to drive further gains in CASA market share and traction in multiple fee revenue streams, going forward, as the economic environment continues to improve. However, at current valuations, a large part of this growth already appears priced in. At the CMP, the stock is trading at 20.9x its FY2011E EPS of Rs81.4 and at 3.4x its FY2011E ABV of Rs505.8. We maintain an Accumulate on the stock, with a 12-month Target Price of Rs1,770, implying an upside of 4%. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 12:51 am Money market updateG-sec Market: The 10-year G-sec 6.90% GOI 2019 opened at a same yield at 7.37%. The 10-year US Treasury yield hardened from 3.34% to 3.45%. The 3-month Interest Rate Future is trading at a level of 7.97%. The 10-year G-sec 6.90% GOI 2019 is likely to be volatile and trade between 7.32% and 7.42%. Money market: The Call Rate and CBLO rate opened at 3.30% and 3.05% respectively. The money market rates are expected to remain rangebound. Swap Market: The 5Y OIS swap rate is trading in the range of 6.96% - 7.01%, compared to previous closing levels of 6.95%. The OIS swap rates are expected to trade rangebound tracking G-sec yields. Forex Market: The INR opened at Rs45.92 compared to the previous closing level of Rs46.50. Rupee is expected to trade in the range of Rs45.75 – Rs46.25. Source: LatestNews-Home - Livemint.com | 15 Oct 2009 | 12:32 am Oil jumps to fresh 1-year high near $76 a barrelOil prices reached a fresh one-year high near $76 a barrel today in Asia on a weaker US dollar and growing investor optimism about an economic recovery.Source: Daily News & Analysis: Money News | 15 Oct 2009 | 12:10 am Gold futures extend losses as rupee weighsMumbai: The gold futures extended losses for a second day on Thursday weighed by a strong rupee, making the dollar-quoted yellow metal cheaper, analysts said. However, a strong crude oil, which enhances the appeal of the yellow metal as a hedge against oil-led inflation, could support later in the day, they added. The most-traded December contract on the Multi Commodity Exchange (MCX) was 0.28% lower at Rs15,877 per 10 grams, after losing 0.7% in the previous session. The contract had rallied to its record high of Rs16,048 earlier in the week. “The bias is still on the upside and crude may come in support,” said Kunal Shah, an analyst with Nirmal Bang Commodities. Gold might trade in between Rs15,830-15,990, added Shah. Open interest for December gold on MCX was at 13,175 lots, up from 13,047 a day earlier. Volume on Wednesday was 40.55 kg. Source: Home - Livemint.com | 15 Oct 2009 | 12:08 am HDFC Bank net grows 30% on ‘other income’Mumbai, Oct. 14 HDFC Bank’s net profit grew by 30 per cent to Rs 687 crore in the second quarter ended September 30, 2009, against Rs 528 crore in the same period last year.Source: Business Line - Home Page | 15 Oct 2009 | 12:00 am Crude oil rise no cause for panic, yetMumbai, Oct. 14 Even while crude touched $75 a barrel on Wednesday, oil sector executives in India reiterated there is no cause for alarm on the fuel pricingSource: Business Line - Home Page | 15 Oct 2009 | 12:00 am Edible oils import in Sept rises 39%Chennai, Oct 14 A record 9.05 lakh tonnes (lt) of vegetable oils were imported in September taking the total shipments into the country to nearly 80 lt for the oil season that ends thisSource: Business Line - Home Page | 15 Oct 2009 | 12:00 am Bt brinjal gets biotech regulator’s approvalMumbai, Oct. 14 In a significant development, the Indian biotechnology regulator Genetic Engineering Approval Committee (GEAC) has given its green signal to the environmental release of Bt brinjal, the first genetically modified food crop to beSource: Business Line - Home Page | 15 Oct 2009 | 12:00 am Sensex at 17-month highStrong corporate earnings, encouraging Index of Industrial Production numbers and bullish sentiment across the globe pushed the benchmark indices to a 17-month high.Source: Business Line - Home Page | 15 Oct 2009 | 12:00 am Day Trading GuideFresh long-position can be initiated only if DLF exceeds Rs 442, with stiff stop-loss. Utlise rallies to sell ICICI Bank as the stock is experiencing selling interest at higher levels. Initiate freshSource: Business Line - Home Page | 15 Oct 2009 | 12:00 am New GSM operators steal the thunderThe tariff war unleashed by newer players of mobile services is starting to take its toll on the incumbent operators.Source: Business Line - Home Page | 15 Oct 2009 | 12:00 am Rupee nearly breaches 46Mumbai, Oct. 14 The rupee gained 35 paise against the dollar on Wednesday and came very close to breaching the 46 level, on the back of sustained FII inflows.Source: Business Line - Home Page | 15 Oct 2009 | 12:00 am Nilkamal (Rs 163.6): BuyWe recommend a buy in the stock of Nilkamal from a short-term perspective. It is evident from the charts that the stock took support around Rs 43 that is a significant long-term support level in March and has been in an intermediate-term uptrendSource: Business Line - Home Page | 15 Oct 2009 | 12:00 am Tata Motors launches Manza at Rs 5 lakhMumbai, Oct. 14 Tata Motors launched its new generation sedan, Indigo Manza, here on Wednesday.Source: Business Line - Home Page | 15 Oct 2009 | 12:00 am Singapore’s OCBC buys ING’s Asian private banking assetsSingapore: Singapore’s Oversea-Chinese Banking Corp (OCBC) on Thursday announced the purchase of Dutch lender ING’s Asian private banking business for $1.46 billion. “OCBC Bank announced today that it reached agreement with ING Bank N.V. to acquire its Asian private banking business... for 1.463 billion US dollars in cash,” the Singapore bank said in a statement. It said ING’s assets comprised Singapore-based ING Asia Private Bank Limited and its affiliated entities across the region. OCBC, one of three homegrown Singapore banks, said its acquisition “marks a transformational step” in its private banking business, which involves managing the assets of the region’s growing ranks of millionaires. It will also “more than triple the bank’s private client assets under management to 23 billion US dollars” and make it one of Asia’s leading private banks, the statement said. OCBC said Asia is the fastest growing private banking market in the world, with assets under management in the region projected to grow 12.8% a year between 2008 and 2013, higher than the global growth of 8.1%. In Singapore, assets under management have risen from $50 billion in 2000 to $300 billion in 2009, the bank said. OCBC shares, which had earlier been halted pending the announcement, were up six cents to 7.74 Singapore dollars (5.58 US) within minutes after trading resumed. Source: Home - Livemint.com | 14 Oct 2009 | 11:51 pm Sensex gains 119 points to touch 17-month highThe Bombay Stock Exchange benchmark Sensex rose by 119 points in the opening trade on sustained buying by funds following strong global cues.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 11:32 pm Rupee gains 33 paise against dollarThe Indian rupee strengthened by 33 paise against the dollar to breach the 46 level after nearly 13 months in opening trade today.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 11:16 pm Dull diwali for Delhi tradersThe downturn may have receded but this has failed to bring smiles on the faces of traders who are ruing the lack of enthusiasm among Diwali revellers.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 11:06 pm Asia shares hit 14-month peak, dollar slumpsHong Kong: Asian shares rose to 14-month highs on Thursday as upbeat retail sales and surprisingly bullish earnings reports in the United States buoyed risk appetite, pushing the US dollar to a 14-month low. Shares in Japan jumped more than 2% as investors bought exporters who might benefit from rising US demand and stocks in the rest of Asia firmed to their highest levels since last August. Positive sales and earnings data from the United States -- including from Intel Corp and JP Morgan Chase & Co -- pushed the Dow Jones up 1.5% on Wednesday and above 10,000 points for the first time in a year. US government data showed that retail sales, excluding autos, rose for a second straight month in September. Growing confidence that the United States can fuel a global economic recovery encouraged investors to buy riskier assets, such as higher-yielding currencies, including the Australian and New Zealand dollars, which were additionally boosted by rising expectations for interest rate hikes. Authorities in Taiwan, Korea and the Philippines were spotted buying US dollars to curb strength in their currencies. Several Asia countries have intervened in recent weeks to cap their currencies and keep them competitive in export markets. The Aussie dollar hit a 14-month high at $0.9183 to the US dollar after the Reserve Bank of Australia pointed to more rate rises. Last week, it became the first central bank in the Group of 20 to tighten policy as the global financial crisis eases. “We have said that, over time, interest rates will need to be adjusted towards a more normal setting as the economy recovers,” governor Glenn Stevens said in a speech. “A step in that direction was taken last week.” In New Zealand, data showing stronger-than-expected inflation raised the likelihood of a rise in interest rates in coming months and sent the Kiwi to a 15-month high of $0.7485. The flow of cash into riskier assets has knocked the US dollar, a trend that pushed the currency to a 14-month low of 75.284 against a basket of currencies and against the euro at $1.4958. Expectations of healthy global growth prodded Nymex crude futures to a one-year high near $76 a barrel after US industry data showed a surprise drop in inventories. Gold held above $1,060 an ounce, just below Wednesday’s record high above $1,070. Japan exporters gain Tokyo’s Nikkei average rose 2.1% to 10,272.62, helped by auto maker Honda Motor Co, which gained 2.5%. The MSCI index of Asia Pacific stocks traded outside Japan rose 1.4% to 414.96, its highest level since August last year. The Thomson Reuters index of regional shares was up 0.8%. Shares in Hong Kong rose 1.6% and those in Shanghai increased 0.8%. Bullish US earnings reports boosted technology shares in Taiwan, lifting Taiwan’s benchmark stock index by nearly 1%. Shares in Acer Inc, which surpassed Dell Inc in the third quarter to become the world’s No. 2 PC maker behind Hewlett-Packard, rose 1%. Source: Home - Livemint.com | 14 Oct 2009 | 9:53 pm Oil rises towards $76 on US inventories, economySingapore: Oil rose for the sixth straight session to near $76 a barrel on Thursday, touching its highest in a year after US industry data showed a surprise fall in crude stockpiles, suggesting that demand in the world’s top oil consumer is recovering. Further evidence for economic recovery came from the Dow industrials piercing the 10,000 level for the first time in a year, while the dollar slumped to a fresh 14-month low against the euro as surprisingly robust corporate results cheered investors and whetted appetite for higher yielding currencies. Traders will scour weekly jobless claims and the US Energy Information Administration (EIA) inventory data later in the day for confirmation that consumption in the world’s largest economy is on the mend. US crude for November delivery rose 62 cents to $75.80 a barrel by 0220 GMT, after surging as high as $75.90 earlier in electronic trading, its highest since October 2008. London Brent crude was unchanged at $73.10. Crude, up 1.8% on the year, is now in positive territory on a year-on-year basis for the first time since 10 October 2008. The six straight days of gains mark its longest winning streak since July. “What’s driving oil’s rally is basically the weaker dollar and Wall Street, so if we get a collapse in the stock market, all bets could be off,” said Tony Nunan, risk manager at Tokyo-based Mitsubishi Corp. “I think the market has gotten ahead of itself, because inventories are still too high, and there’s no shortage of crude.” Earnings are due this week from several major US companies, and the oil market is tracking results for signs of an economic rebound. JPMorgan Chase & Co reported a sharp rise in third-quarter results, helping to bump up US stocks on Wednesday. US crude stocks fell 172,000 barrels last week against expectations of a 700,000 barrel rise, according to data from the American Petroleum Institute (API) on Wednesday. The EIA is due to release its report at 1500 GMT. US weekly jobless claims due at 1230 GMT will shed more light on the economy’s pace of recovery. Economists polled by Reuters forecast a total of 525,000 new filings compared with 521,000 in the prior week. “The market will continue to be choppy going forward, depending on the kind of economic data that we get. We’ve had a week of gains, I think we’re due for a correction soon, with some support at $70,” Nunan said. Source: Home - Livemint.com | 14 Oct 2009 | 9:19 pm Major US firms on route to award record pay in `09: Report!Major US banks and securities firms are on track to pay employees about $140 billion in total compensation and benefits this year.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm AI to cut cost by Rs 3,000 cr; equity infusion likely!The government is likely to infuse additional equity into ailing Air India, which has evolved a major revamp plan to cut costs by Rs 3,000 crore and increasing revenue by Rs 2,000 crore every year, Civil Aviation Minister Praful Patel said on Wednesday.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Rio Tinto to be lead sponsor of diamond jewellery promotion!Rio Tinto, a leading international mining group, today announced its support as lead sponsor to the new and innovative India Diamond Jewellery Promotion campaign (IDJP), a company statement said.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm RBI may not signal rise in interest rates: PMEAC!The RBI is not likely to hike interest rates in its monetary policy review on October 27 even as inflation is expected to rise to 6 per cent this fiscal-end from 0.7 per cent at present, the Prime Minister`s Economic Panel said.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Central bank may raise interest rate in Oct 27 meet: Moody`s!With double digit industrial output figures, India`s central bank may raise rates in the first half of next year and cash reserve ratios at the end of this month, says the research arm of global rating agency Moody`s.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm NTPC, Coal India to form JV to develop coal mines!State-owned NTPC and Coal India would form a 50:50 joint venture to develop coal mines for feeding the power major`s Farakka and Kahalgaon thermal projects.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Cairn India ties up USD 1.6 bn to repay debt, fund Raj project!Cairn India on Wednesday said it has tied up USD 1.6 billion funds from domestic and overseas lenders to repay old debt and to accelerate the Rajasthan project where crude oil production started a few weeks back.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Bloomberg to buy US magazine BusinessWeek!The 80-year old American magazine BusinessWeek is getting a new owner with global financial news and data provider Bloomberg, majority owned by New York city mayor Michael Bloomberg, agreeing to buy the publication.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Maruti surpasses last fiscal`s exports in just over 6 months!The country`s largest car maker, Maruti Suzuki India today said its exports in the first six and-a-half months of this fiscal have surpassed what it managed to do in the whole of the previous year, touching 72,550 units.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Switzerland to amend law; India will get black money back!Agreeing to India`s demand about providing it with the list of tax evaders, Switzerland said it will amend its laws.Source: Zee News : Business | 14 Oct 2009 | 5:48 pm Tata Motors to phase out old Indigo; drive in ManzaThe entry-level mid-size sedan will compete with the likes of Logan and Swift Dzire.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 4:10 pm Praj to diversify into chemicals, oil & gasPraj Industries, estimated to have around 75% share of the domestic biofuel and distillery equipment market, will diversify into other industry verticals.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 4:07 pm Daimler trucks delayed by 18 monthsDaimler AG will postpone the start of truck production in India by as long as a year and a half because of a drop in demand.Source: Daily News & Analysis: Money News | 14 Oct 2009 | 4:04 pm Special audits for five telcos may be extended to FY09The department of telecommunications, or DoT, is considering extending the period of special audits for five telecom service providers to include fiscal year 2008-09, according to officials familiar with the development.  Beleaguered: On Monday, RCom was accused by a government-appointed auditor of under-reporting revenue to save on licence fees. Hemant Mishra / Mint In June, Bharti Airtel, India’s biggest mobile phone company by subscribers, voluntarily offered its fiscal year 2009 accounts as well for the special audit, a request that DoT did not initially agree to. The department is now considering extending the audit once the evaluation of all the reports is completed, the officials mentioned earlier said. The exercise is expected to take till the year-end, they added. A final decision on including audits for 2008-09 will be taken after consulting the Telecom Regulatory Authority of India, or Trai. “We may consider the extension of the audit once the current phase is over,” the officials said. On Monday, RCom was accused by a government-appointed auditor of under-reporting revenue to save on licence fees and inflating numbers to the stock exchanges. Officials said RCom will be given a copy of the report so it can respond to the findings. Other authorities such as Trai will also be given a copy of the audit report and asked to comment and take whatever action is required. RCom’s statutory auditors—KPMG and Chaturvedi and Shah—will also be asked for their response. cnbctv18@livemint.com Source: LatestNews-Home - Livemint.com | 14 Oct 2009 | 3:07 pm India finds itself awash in foreign investmentMumbai: Six months ago, it looked as if India was in for a bumpy recession. Factories were laying off workers and construction sites were grinding to a halt as foreign investment slowed to a trickle. But in the last few months India has hit a gusher, as investors around the world have turned away from the dollar, the global refuge during the crisis, and rediscovered their optimism in the world economy and India’s place in it.  Back in favour: Labourers work at the construction site of a commercial complex in Mumbai. In the last few months, investors have rediscovered their optimism in the world economy and India’s place in it. AFP Nearly $7 billion (Rs32,347 crore) more foreign direct investment flowed into India than left the country from April through June, nearly twice as much as in the previous six months combined. Including cash invested in the stock and bond markets, India received about $15 billion in foreign investment, the most it has received in any quarter except the last three months of 2007, according to Macquarie Securities. If the current surge continues—and sceptics doubt that it can—the Indian economy could start growing at 8-9% a year as early as 2010, far sooner than forecasts by the International Monetary Fund and many independent analysts. "Clearly after the big shock of last year, things are back on track," said Surjit S. Bhalla, who runs Oxus Research and Investments, based in New Delhi. “People are seeing the recovery to be lot more robust than what many of the naysayers are saying.” While many say the good times are here to stay, some analysts worry that the renewed ebullience will be fleeting if global financial markets take another turn down. Confidence in India’s potential could also falter if the government does not address some long-standing problems, namely, improved infrastructure, investment in education and economic reforms, as it has promised to do to lift hundreds of millions out of poverty. Another big concern is that the foreign money might re-inflate bubbles in stock and real estate markets. Indian stocks are less than 20% shy of their 2008 peak, even though corporate profits and the economy as a whole are growing more slowly now. “Because we are a fairly large attractor of capital, the possibilities of bubbles building up in sectors like real estate are very real,” said Abheek Barua, chief economist at HDFC Bank Ltd, who is nonetheless upbeat about the economy. “It has clearly happened in China and there is some of that sort of problem here as well.” For a country that quarantined its economy from the rest of the world for much of the last 60 years, India has increasingly relied on foreign investment in recent years. It has helped bridge the gap between domestic savings and the growing capital needs of the private sector and the government, which is borrowing money to pay for welfare programs and subsidies. In the fiscal year ended in March, growth slowed to 6.7% from 9% a year earlier, in part because of lower foreign cash flows. Most analysts estimate the economy will grow more than 6% this year, but some, su ch as Bhalla, say growth will be as high as 8%. Rising foreign investment should help offset some of the economic impact of erratic monsoon rains. The agricultural sector makes up around 17% of India’s economy but sustains more than half its population. India’s economy lacks some of the handicaps present in other countries. For instance, domestic demand never collapsed to the extent it did in the US, and yet consumer spending is picking up now. Car sales were up 13% in the five months that ended in August, compared with the same period last year. Builders say sales of affordable apartments—priced from $10,000 to $30,000—are up, too. Even retailers, who were forced to close hundreds of stores last year after overexpanding, are talking about opening new outlets. Some Western companies are eager to get a piece of this market. Last month, Ford Motor said it would build and sell a new hatchback here. McDonald’s announced that it would open 120 more restaurants. And Baltimore-based T Rowe Price, according to local news reports, is in talks to buy a stake in an Indian mutual fund firm. T Rowe Price declined to comment. At the same time, thanks to strong overseas demand for Indian stocks and bonds, companies here are raising billions of dollars. In a recent initial public offering for Oil India Ltd, a government-owned company, demand outstripped available shares by 31 times. “There is a large amount of liquidity in the world,” said A. Murugappan, executive director at ICICI Securities Ltd. The money is flowing here, because “people see that India and China are the two growth areas.” Still, the rising flow of foreign funds poses challenges. India's currency has appreciated 11% since early March, to Rs46.13 to the dollar, because of rising demand for rupees and the broad decline in the dollar. That will make Indian garment and jewellery exports less competitive in the world market at a time when the industries are still recovering. “That is a cause of worry,” Vasant Mehta, chairman of India's Gem and Jewellery Export Promotion Council, said about the appreciating rupee. “Profit margins are being squeezed, and in such a period we cannot expect to raise prices.” The governor of the Reserve Bank of India recently said that to control inflation, his central bank might have to raise interest rates before developed countries, where rates are at historic lows. But he said that doing so could encourage overseas investors to move even more money into India, driving the rupee even higher. And that could be too much of a good thing. ©2009/THE NEW YORK TIMES feedback@livemint.com Source: LatestNews-Home - Livemint.com | 14 Oct 2009 | 2:21 pm Global slowdown, competition hit Concor Also Read Parsvnath benefits from recovery Container traffic at major ports in the country fell 6.3% in April-September period, according to Indian Ports Association data. During April-August, government data show that non-oil imports fell 25.6% and exports 31%, both in dollar terms. That’s a difficult operating environment for a logistics player such as Concor. In this backdrop, it’s commendable that the company managed to grow its revenues by 6.2% to Rs 960 crore on the back of a 4% increase in exim revenues and a 16% rise in domestic business. However, since the exim business is a more profitable one, the change in mix has affected its margins. Besides, the declining market and growing competition are making it difficult for higher costs to be passed on. Operating profit margin during the quarter fell to 26.4%, compared with 29.9% in the corresponding period last year. A combination of higher depreciation and lower other income further hit profit, which fell 8.9% to Rs204 crore. Concor’s performance has improved compared with the April-June quarter. Revenues rose 5.8% and net profit 1.7% on a sequential basis. It must be noted here that the business had rebounded smartly in April-June period, and hence the improvement in revenues last quarter is a good sign. Having said that, competition in the multi-modal market has been rising, with nearly 15 new container train operators in the market. According to the company’s annual report, 13 of these have started train services. Concor has realigned its strategy, focusing on providing total logistics and transport solutions. It is entering into strategic alliances to make better use of its infrastructure and boost income growth. For instance, two of the 13 providers have a tie-up with Concor to use its facilities. It remains to be seen if Concor is able to retain its competitive edge. In the medium term, investors will await a recovery in global trade that will lead to better performance. The second half will see an improvement due to the base effect, since the slump in global trade was pronounced in the second half of fiscal 2009. Concor’s shares have done well in the recent rally, rising, up 90%-plus from its lows in early March this year. But the stock gets a rich valuation of 18 times estimated earnings for the current fiscal. Nomura’s research analysts pointed out in a recent note that at current valuations, the stock is trading above the cycle mean of 14 times earnings, even as Concor risks market share losses with competition strengthening on the back of easing liquidity. Gains for shareholders, therefore, may be limited. Write to us at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 14 Oct 2009 | 2:12 pm Exporters keep fingers crossed over rising rupeeThe rupees relentless rise (it closed at 46.14 to a dollar today after touching 46.08 a12-month high) has left Rajendra Hinduja worried.Source: Business Standard | Front Page Headlines | 14 Oct 2009 | 1:00 pm SpiceJet plans to fly overseasLow-cost carrier SpiceJet Airlines, promoted by a group of investors led by the Kansagra family and Delhi-based Ajay Singh, is working on a plan to start international operations next year, making it the third private Indian carrier after Jet Airways and Kingfisher to fly overseas.Source: Business Standard | Front Page Headlines | 14 Oct 2009 | 12:57 pm RIL ranked fifth among 25 sustainable value creators globallyNew Delhi: Mukesh Ambani-led Reliance Industries Ltd (RIL) has been named as the world’s fifth biggest ‘sustainable value creator’ in a list of 25 top companies globally in terms of investor returns over a decade. The petrochemicals giant is the only Indian company on the list, which has been topped by US-based pharma major Gilead Sciences and has been compiled by Boston Consulting Group (BCG) in an annual report from its Value Creators series. RIL is ranked even higher than NRI billionaire Lakshmi Mittal-led global steel major ArcelorMittal, and also many other global giants like BHP Billiton, Samsung, Tesco, Rio Tinto, BASF, McDonald’s, Colgate-Palmolive and Procter&Gamble. In the top five, Gilead Sciences is followed by IT major Apple (2nd place), British American Tobacco (3rd), Brazilian mining major Vale (4th) and RIL (5th). The report, ‘Searching for Sustainability: Value Creation in an Era of Diminished Expectations’ has identified 25 firms, with a market capitalization of at least $30 billion, that have consistently outperformed their local stock-market average during the 10 years from 1999 to 2008. “Companies suffering a massive decline in stock market valuation in the wake of the global economic crisis should learn the lessons of an elite group of so-called sustainable value creators that have generated sizable and sustainable shareholder returns over a decade,” the BCG report stated. Source: World Business - Livemint.com | 14 Oct 2009 | 7:57 am Twitter still seeking ways to cash inSeoul: Micro-blogging pioneer Twitter is still looking for ways to make money despite taking much of the world by storm, co-founder Biz Stone said on Wednesday. Stone, a former Google employee who helped set up the social networking site two years ago, said the service is still “figuring out” the correct business model even with more than 50 million users. “Google is very much of a role model for us,” he told the World Knowledge Forum in Seoul, according to Yonhap news agency. “What is most important for us is not to focus on that (profits) but to focus on building value for our users.” Stone said the introduction of fee-based commercial accounts before the end of the year was part of efforts to find ways to generate profits. The company confirmed in March that it was looking at such accounts, a way for corporate users to better target their Twitter interaction with potential customers. Despite the search for revenue, Stone said his main interest at present was the open and transparent exchange of information. “That’s higher on our list of priorities than creating revenues because we still have time,” he was quoted as saying. Twitter’s simplicity, he said, would also give it an edge over other social networking sites or search engines. Twitter users send “tweets” -- messages no longer than 140 characters -- over the Internet through computers and mobile devices which are picked up by “followers”. “Met some great people at the World Knowledge Forum,” Stone said in his latest update. “Now I’m fighting Seoul traffic to catch the last flight out to Tokyo.” Source: Tech News - Livemint.com | 14 Oct 2009 | 5:56 am LG Display to set up JV for $4 bn China LCD plantSeoul: South Korea’s LG Display said on Wednesday that it would set up a joint venture for a proposed $4 billion LCD plant in China, as Asian panel makers rush to increase their presence in the fast-growing Chinese TV market. LG Display, the world’s No.2 maker of liquid crystal display (LCD) screens, signed a non-binding agreement in August with the Chinese city of Guangzhou to build the plant. Details, including LG Display’s ownership in the joint venture and the timing of the investment, had not been decided, but LG Display aimed to start mass production from the plant in 2012, a company spokesman said. The plant will use eighth-generation motherglass, capable of making large panels for popular LCD TVs. Leading LCD makers in South Korea, Taiwan and Japan are considering or have began negotiations to manufacture panels in China, while in the past they only kept back-end assembly lines in the country to protect advanced technologies. China was expected to overtake North America to become the world’s biggest TV consumer in 2-3 years, Taiwan’s AU Optronics said last month. LG Display CEO Kwon Young-soo said on Tuesday that he hoped the company could start producing panels in China before other rivals. LG Display is running panel assembly plants in the Guangzhou and Nanjing areas in China. Source: World Business - Livemint.com | 14 Oct 2009 | 4:08 am
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