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Overcharging claims not tenable from NPPA: CiplaNational Pharmaceutical Pricing Authority (NPPA) has said that top drug companies have to pay Rs 2,100 crore for overcharging, of which Rs 1,500 crore has to be paid by pharmaceutical major Cipla alone. Commenting on the issue, Amar Lulla, Chief Executive Officer, Cipla said that the claims were not tenable from NPPA.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 8:14 am FY10 revenues seen at Rs 375cr: Globus SpiritsIn an interview with CNBCTV18, Ajay Kumar Swarup, Managing Director, Globus Spirits, spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 8:05 am Thermax expects to maintain current margin in FY11Thermax has been a complete outperformer for this year. In an exclusive interview with CNBCTV18, MS Unnikrishnan, Managing Director, Thermax, speaks about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 7:34 am ICICI Bank sees 2010 infrastructure growthInfrastructure, telecoms and health are expected to be among growth sectors for the economy next year, ICICI Bank Ltd Chief Executive Chanda Kochhar said in an interview published on Tuesday.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 7:30 am ArcelorMittal unit issues $750 million convertible bondArcelorMittal subsidiary issues a USD750 million privately placed mandatory convertible bond.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 7:30 am NMDC to sell 8.4% stake before endMarchStaterun NMDC Ltd said on Tuesday the government will sell 8.38 percent in the firm through a followon public offer by the end of March.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 7:25 am Green milestone: ITC Royal Gardenia gets LEED PlatinumITCs new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia was conferred the highest rating for green buildings in the world the LEED India Platinum Rating.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 6:41 am Ranbaxy shares fall on FDA letter to unitShares in Ranbaxy Laboratories fell as much as 4 percent on Tuesday morning on news the US FDA had warned a US unit about violations of good manufacturing practices.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 5:47 am BHEL eyes internal accruals to fund Rs 1600 cr capexCapital goods players have had a topsyturvy year with capex from public and private players just thawing in 2009. Will 2010 be a better year?Source: Moneycontrol Top Headlines | 29 Dec 2009 | 5:39 am 7 political moves to watch out forCurrent developments that could open up new fronts for India In early December 2009, President Barack Obamas administration finally committed 30,000 additional troops in a bid to intensify its engagement in Afghanistan.Source: Moneycontrol Top Headlines | 29 Dec 2009 | 5:00 am Jindal Power to raise Rs 72 bn via IPO - Economic Times
Source: Business - Google News | 29 Dec 2009 | 3:20 am Rupee changes little; equities lift sentimentDollar demand from importers tends to peak at the end of each month, when they are required to make payments for their imports.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 3:19 am India's Bonds Decline as Central Bank Flags Inflation Concern - Bloomberg
Source: Business - Google News | 29 Dec 2009 | 3:16 am PricewaterhouseCoopers Executive Director Resigns - Wall Street Journal
Source: Business - Google News | 29 Dec 2009 | 3:15 am Sebi panel for recovering gains made by IPO scamstersScamsters gained Rs 95.69 crore by rigging IPOs between 2003 and 2005, a regulatory panel has found.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 3:12 am Sensex ends flat; power, telecom gain, pharma, IT slip - Moneycontrol.com
Source: Business - Google News | 29 Dec 2009 | 3:10 am ONGC strikes new gas well in TripuraThe gas reserve is huge, and the new discovery would form a considerable reserve base of hydrocarbon.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 3:08 am Employers see uptick in hiring in 2010 - SurveyNEW YORK (Reuters) - U.S. employers expect to hire more new workers in 2010 than they did in 2009, a sign the U.S. recession may be easing its grip, research showed on Tuesday.Source: Reuters: Money News | 29 Dec 2009 | 3:05 am Divine Solitaires to inscribe diamonds with unique identification numberThe unique identification number protects customers from being cheated, because often the purchased diamond is different from the quality as per certificate shown to them.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 2:55 am Jindal Power to raise 72 bln rupees via IPOMUMBAI (Reuters) - Jindal Steel & Power Ltd (JSPL) said on Tuesday its unit Jindal Power plans to raise 72 billion rupees via an initial public offering (IPO) and has filed offer papers with the market regulator.Source: Reuters: Money News | 29 Dec 2009 | 2:51 am Ruchika's family files complaints against Rathore - IBNLive.com
Source: Business - Google News | 29 Dec 2009 | 2:47 am Ranbaxy exits from Chinese joint venture - Economic Times
Source: Business - Google News | 29 Dec 2009 | 2:46 am ICICI sees infrastructure growth in 2010 : ReportIndia's three-year investment of about $250 billion for industrial and infrastructure development will be a 'growth multiplier'.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 2:45 am Japan wants India to sign CTBTNew Delhi: Pressed by Japan to sign the Comprehensive Test Ban Treaty (CTBT), India on Tuesday clearly put the onus on the US and China for taking a lead in this direction by ratifying it. Japan, however, promised to relax restrictions on hi-tech trade as the two countries sought to impart greater depth to their ties by unveiling an action plan covering defence and counter-terrorism exchanges and vowing to step up two-way trade. After his wide-ranging talks with his Indian counterpart Manmohan Singh, Japanese Prime Minister Yukio Hatoyama remained non-committal on civil nuclear cooperation with India although he observed that it would be an “important agenda for future”. At a joint press conference with Singh after the talks, Hatoyama said the two countries have “differences” over the issue of CTBT and Nuclear Non-Proliferation Treaty (NPT). Noting that he had discussed the issue with Singh, he said, “I expressed the hope that along with the US and China, India will sign and ratify the (CTBT) treaty. Hatoyama said, “In response, Prime Minister Singh said should the US and China ratify the CTBT, a new situation will emerge. I believe he has stated it as a matter of fact. We firmly have to engage in these endeavours.” Singh said India was committed to “universal, voluntary and non-discriminatory” disarmament and voluntary moratorium on nuclear testing. Hatoyama said he had also referred to Fissile Material Cut-off Treaty and contended that negotiations for that should be launched as soon as possible. “Japan and India should cooperate for its early conclusion,” he said, adding the suggestion was welcomed by Singh. The Japanese Prime Minister added that his country continues to “seek cooperation from India” for “total elimination of nuclear weapons”. On his part, Singh said India is “deeply interested” in working with Japan and other like minded countries to “promote the cause of universal, verifiable and non-discriminatory disarmament.” He said he “explained” to Hatoyama “the circumstances in which India had to go the nuclear weapon” way in 1998. “I also mentioned India has unilaterally declared moratorium on conducting nuclear explosive testing and that is a commitment we will honour,” Singh said, adding he had also pointed to India’s “impeccable record” with regard to non-proliferation. Noting that the two leaders had “fairly extensive” discussions on prospects of civil nuclear cooperation, Singh referred to the waiver given by the 45-nation Nuclear Suppliers Group to India to conduct trade in nuclear material and technology. Asked about the prospects of civil nuclear cooperation between the two countries, Hatoyama did not respond. Earlier, in his opening statement, he said the issue of nuclear energy was discussed “because it is going to be an important agenda for future.” Hatoyama said the two countries have common interest in disarmament and non-proliferation in and around the world and Singh assured him that “India will work at its best for disarmament and non-proliferation.” “We strive for the ultimate goal of elimination of nuclear weapons. We have been able to confirm that point,” the Japanese Prime Minister said. Singh said in his discussions with Hatoyama, the two sides undertook a comprehensive review of bilateral ties, as well as of major regional and international issues. The two sides unveiled an action plan to advance the security cooperation, which provides for a framework for regular cabinet or senior official level dialogue. The plan entails strategic cooperation mechanism involving strategic dialogue at Foreign Minister and National Security Advisor level. The action plan covers cooperation in defence, counter-terrorism, fight against trans-national crimes, anti-piracy action, UN reforms, disarmament and non-proliferation. The two sides also vowed to step up two-way trade, particularly considering that Japanese investment in India was less than that in China except for the last year. In this regard, they emphasised the importance of early conclusion of negotiations for Comprehensive Economic Partnership Agreement (CEPA). “We have decided to expedite our negotiations on the Comprehensive Economic Partnership Agreement in order to conclude a high quality and balanced agreement. We are hopeful that this can be completed in time for the next Annual Summit meeting,” Singh said. Source: Home - Livemint.com | 29 Dec 2009 | 2:37 am RIL board member R Ravimohan dies after cardiac arrest - Times of India
Source: Business - Google News | 29 Dec 2009 | 2:24 am India, Russia setting up $600 million aircraft joint ventureHindustan Aeronautics Limited will fork out $300 million, Russia's United Aircraft Cooperation will invest a similar amount for the joint venture which will start rolling out the aircraft by 2017.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 2:20 am Daimler says sees market stabilisation for trucks and buses in 2010* Says Daimler trucks and bus units see stabilisation in 2010Source: Reuters: Money News | 29 Dec 2009 | 2:15 am RIL board member R Ravimohan dies after cardiac arrestR Ravimohan, executive director or Reliance Industries who was appointed to its board earlier this year, died here late on Monday after a massive cardiac arrest, a company statement said.Source: India Business News | Business News - Times of India | 29 Dec 2009 | 2:13 am Rupee little changed; equities lift sentimentMumbai: The Indian rupee traded in a tight range on Tuesday afternoon as stronger local equities offset dollar demand from importers. At 2:50pm, the partially convertible rupee was at Rs46.67/68 per dollar, almost steady from its close of Rs46.65/66 on Thursday. Financial markets were closed on Friday and Monday for holidays. India’s benchmark BSE index traded 0.6% higher. Dollar demand from importers tends to peak at the end of each month, when they are required to make payments for their imports. One-month offshore non-deliverable forward contracts were quoted at Rs46.67/77, close to the spot rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were quoting at Rs46.78 on both the exchanges. Source: Home - Livemint.com | 29 Dec 2009 | 2:10 am No interest rate hike likely in six months: State Bank of IndiaThere will be no increase in the interest rate on loan in the next six months, because of surplus liquidity in the market and rising deposits, SBI chairman OP Bhatt said.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 2:06 am NMDC to sell 8.4% stake before end-March - Moneycontrol.com
Source: Business - Google News | 29 Dec 2009 | 2:00 am Vodafone launches unlimited text messages offer in MumbaiWith this, Vodafone prepaid customers can now avail 500 free local or national SMS daily with a bonus card of Rs89 with a validity of 30 days.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 1:57 am China eyes Asean resources from free trade pactBeijing: A free trade agreement between China and its Southeast Asian neighbours, which takes full effect from 1 January, will help China fill its urgent need for natural resources, a senior commerce official said on Tuesday. The pact with the Association of South East Asian Nations (Asean) will help China feed its humming manufacturing sector with resources from those countries, Zhang Kening, a director from the ministry of commerce, told a news conference. The agreement will form an economic bloc of 1.9 billion people, with trade worth around $200 billion. Asean is China’s fourth biggest trade partner, accounting for about 10% of China’s total trade. “China and Asean countries have many products that complement each other,” Zhang said. “With the establishment of the free trade area, we can see great potential to adjust our trade patterns by importing more from Asean countries.” China signed an initial free trade agreement with the 10 members of Asean in November 2002, and both sides have been phasing in tariff reductions. Indonesia last month sought to delay final implementation of the pact after some industries, including the steel and petrochemical sectors, raised concerns they would face a flood of Chinese imports. “That is only talk from some industrial sectors but does not represent the Indonesian government’s view,” Zhang said. Competition with other regional manufacturers could be a sticking point if China seeks, as promised, to expand its free trade networks to include Japan and South Korea. It is already in negotiations with Taiwan. The Chinese Ministry of Commerce is in the final phase of studying a free trade area pact with South Korea, but has not yet started official negotiations, Zhang said. Source: LatestNews-Home - Livemint.com | 29 Dec 2009 | 1:48 am Agricultural growth in country is cause of concern: Economic expertEconomic advisor to the prime minister, Dr C Rangarajan today said that the country would like to see a growth rate of 8% in 2010-'11 and 9% in 2011-'12.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 1:41 am Focus on managing inflation, growth, says RBIMumbai: The focus of India’s monetary policy is shifting to managing recovery and containing inflation from one concentrated on fostering growth after the global downturn, a deputy governor at the Reserve Bank of India (RBI) said. “The near-term policy challenges are clearly conditioned by the evolving growth-inflation outcome that supports shifting the balance of policy focus on managing the recovery and on containment of inflation,” Shyamala Gopinath said in a speech delivered in Bangalore on Monday. The comments, which reinforced market expectations of monetary tightening in January, pushed the 10-year benchmark bond yield up 3 basis points to 7.67%. It had closed at 7.68% on Thursday. Financial markets were closed on Friday and Monday for holidays. “Surely they will tighten policy, but the question is whether they will due it before the January policy or at policy,” said Piyush Wadhwa, senior vice president at ICICI Securities Primary Dealership. The next scheduled policy review is on 29 January, but the central bank can change policy at any time. Gopinath’s comments follow those from fellow deputy governor Subir Gokarn on Thursday, who said the January policy review would focus both on growth and inflation, instead of the previous policy focus on growth. Most economists polled by Reuters early this month expected the Reserve Bank to raise banks’ cash reserve ratio or the proportion of deposits that banks’ must set aside with it as cash by the end of January. Investors are also counting on the increasing possibility of a hike in interest rates in January or soon thereafter. India and South Korea are expected to be among the first Group of 20 nations to follow Australia and raise rates. “Overall, all statements are hawkish. Rangarajan also made comments on CRR hike,” said Bekxy Kuriakose, head of fixed income at DBS Cholamandalam Asset Management, referring to C Rangarajan, who is the prime minister’s economic adviser. Gopinath said rising food prices were fuelling concerns of broader price pressures in India and the policy challenge was to address the supply-side constraints. She said effective assessment of the inflation process and using monetary policy actions at the right time would be critical. “Since supply shocks take time to taper off, there is a risk that high inflation in essential commodities could affect inflation expectations over time and give rise to generalized inflation,” she said. Source: Home - Livemint.com | 29 Dec 2009 | 1:40 am Sumitomo to buy stake in Nufarm as Sinochem dumpedSydney: Sumitomo Chemical Corp agreed to buy a $590 million stake in Australian farm chemicals maker Nufarm Ltd on Tuesday, in a surprise deal that knocked out a rival bid from China’s Sinochem. While the deal evoked a tepid response from Nufarm and Sumitomo shareholders on Tuesday, it is seen by some as helping stabilize the Australian company and setting a floor for its shares after a series of profit downgrades. The move would offer joint development and distribution opportunities for Sumitomo in agrochemicals, which the Japanese company sees as a global growth business. The deal, however, is a blow to Sinochem’s growth ambitions. Nufarm rejected a bid from state-owned Sinochem that had been cut to $2.3 billion, or A$12 per share, after the Chinese firm completed due diligence following six months of talks. Sumitomo lost no time in striking a deal, agreeing to pay A$14 a share to buy up to a 20% stake in Nufarm and effectively setting a floor for Nufarm shares after predictions they could fall to as low as A$8.50 if the Sinochem deal fell through. “As it were, Sumitomo turned out to be the white knight waiting in the wings happy to give shareholders the opportunity to sell out part of their stake ... while retaining a decent percentage to benefit from a turnaround in performance,” said Cameron Peacock, markets analyst with IG Markets. Nufarm has cut its earnings forecasts three times this year, reflecting a slump in the price of its key herbicide, glyphosate, in the US market and weaker sales volumes than it had expected. “Sumitomo’s proposal places an appropriate value on the company and provides all Nufarm shareholders with the opportunity to realise a fair price for some of their shares,” Nufarm chairman Kerry Hoggard said. Investors in Australia and Japan, however, were lukewarm to the deal. Nufarm shares rose as much as 5.1% to A$11.10 after the announcement, but trimmed gains to close at A$10.86, valuing the company at A$2.4 billion ($2.1 billion). The benchmark S&P/ASX 200 index finished 1.1% higher. Sumitomo shares ended flat at ¥403. “The fact that it’s not a full takeover and that they are only buying a 20% stake could be a concern for investors,” said Steve Robinson, a fund manager with Alleron Investment Management, which does not own Nufarm shares. Distribution Network Eyed Sumitomo had not decided on whether it might in the future look to raise its stake in Nufarm beyond 20%, spokesman Toshihiro Yamauchi said. The firm was considering business ties with Nufarm, including joint development of agricultural chemicals and mutual use of each other’s sales channels. “We believe this market has growth potential, and we have been considering ways to increase the scale of our business,” he said. Sinochem had hoped to gain from Nufarm’s global distribution network that includes Asia, South America and Europe. “Given the challenging and complicated environment in which Nufarm is operating in the future, Sinochem strongly believes that the revised offer was fair and in the best interests of all parties,” Sinochem said in a statement on Tuesday. “On this basis, Sinochem sincerely regrets the decision of Nufarm’s board of directors to decline the offer,” it added. Nufarm is being advised by UBS, while Royal Bank of Scotland had advised Sinochem. French bank SocGen advised Sumitomo on the deal, sources familiar with the matter told Reuters. The sources declined to be identified because they were not authorized to talk to the media. Nufarm also said on Tuesday it would raise A$250 million in equity. Nufarm managing director Doug Rathbone owns an 11% stake in the company. The end of the Sinochem talks marks the second time since 2007 that Nufarm has failed to strike a deal with a Chinese company. Two years ago, Nufarm was approached by China National Chemical Corp, which led to an A$3 billion approach with US private equity firms, but no formal offer emerged. Source: Home - Livemint.com | 29 Dec 2009 | 1:33 am Sumitomo to buy stake in Nufarm as Sinochem dumpedSydney: Sumitomo Chemical Corp agreed to buy a $590 million stake in Australian farm chemicals maker Nufarm Ltd on Tuesday, in a surprise deal that knocked out a rival bid from China’s Sinochem. While the deal evoked a tepid response from Nufarm and Sumitomo shareholders on Tuesday, it is seen by some as helping stabilize the Australian company and setting a floor for its shares after a series of profit downgrades. The move would offer joint development and distribution opportunities for Sumitomo in agrochemicals, which the Japanese company sees as a global growth business. The deal, however, is a blow to Sinochem’s growth ambitions. Nufarm rejected a bid from state-owned Sinochem that had been cut to $2.3 billion, or A$12 per share, after the Chinese firm completed due diligence following six months of talks. Sumitomo lost no time in striking a deal, agreeing to pay A$14 a share to buy up to a 20% stake in Nufarm and effectively setting a floor for Nufarm shares after predictions they could fall to as low as A$8.50 if the Sinochem deal fell through. “As it were, Sumitomo turned out to be the white knight waiting in the wings happy to give shareholders the opportunity to sell out part of their stake ... while retaining a decent percentage to benefit from a turnaround in performance,” said Cameron Peacock, markets analyst with IG Markets. Nufarm has cut its earnings forecasts three times this year, reflecting a slump in the price of its key herbicide, glyphosate, in the US market and weaker sales volumes than it had expected. “Sumitomo’s proposal places an appropriate value on the company and provides all Nufarm shareholders with the opportunity to realise a fair price for some of their shares,” Nufarm chairman Kerry Hoggard said. Investors in Australia and Japan, however, were lukewarm to the deal. Nufarm shares rose as much as 5.1% to A$11.10 after the announcement, but trimmed gains to close at A$10.86, valuing the company at A$2.4 billion ($2.1 billion). The benchmark S&P/ASX 200 index finished 1.1% higher. Sumitomo shares ended flat at ¥403. “The fact that it’s not a full takeover and that they are only buying a 20% stake could be a concern for investors,” said Steve Robinson, a fund manager with Alleron Investment Management, which does not own Nufarm shares. Distribution Network Eyed Sumitomo had not decided on whether it might in the future look to raise its stake in Nufarm beyond 20%, spokesman Toshihiro Yamauchi said. The firm was considering business ties with Nufarm, including joint development of agricultural chemicals and mutual use of each other’s sales channels. “We believe this market has growth potential, and we have been considering ways to increase the scale of our business,” he said. Sinochem had hoped to gain from Nufarm’s global distribution network that includes Asia, South America and Europe. “Given the challenging and complicated environment in which Nufarm is operating in the future, Sinochem strongly believes that the revised offer was fair and in the best interests of all parties,” Sinochem said in a statement on Tuesday. “On this basis, Sinochem sincerely regrets the decision of Nufarm’s board of directors to decline the offer,” it added. Nufarm is being advised by UBS, while Royal Bank of Scotland had advised Sinochem. French bank SocGen advised Sumitomo on the deal, sources familiar with the matter told Reuters. The sources declined to be identified because they were not authorized to talk to the media. Nufarm also said on Tuesday it would raise A$250 million in equity. Nufarm managing director Doug Rathbone owns an 11% stake in the company. The end of the Sinochem talks marks the second time since 2007 that Nufarm has failed to strike a deal with a Chinese company. Two years ago, Nufarm was approached by China National Chemical Corp, which led to an A$3 billion approach with US private equity firms, but no formal offer emerged. Source: World Business - Livemint.com | 29 Dec 2009 | 1:33 am RBI says focus on managing inflation, growthMUMBAI (Reuters) - The focus of India's monetary policy is shifting to managing recovery and containing inflation from one concentrated on fostering growth after the global downturn, a deputy governor at the Reserve Bank of India said.Source: Reuters: Money News | 29 Dec 2009 | 1:21 am ‘ICICI sees 2010 infrastructure growth’Milan: Infrastructure, telecom and health are expected to be among growth sectors for the economy next year, ICICI Bank Ltd chief executive Chanda Kochhar said in an interview published on Tuesday. India’s three-year investment of about $250 billion for industrial and infrastructure development will be a “growth multiplier”, she told business daily Il Sole 24 Ore. “In terms of organic growth, cement, steel and everything involved in infrastructure looks good, from power plants to highways,” Kocchar said. “In terms of inorganic growth, the spectrum is very broad. The first things that come to mind are health and telecommunications.” She said rural India was the next factor for growth by private banks such as ICICI, India’s No. 2 lender. “But new banking methods are needed to lower the cost per transaction. I am thinking of biometric smart cards and mobile phones.” Source: Home - Livemint.com | 29 Dec 2009 | 1:19 am India gold futures steady tracking global cuesInternational gold was little changed on Tuesday in light trading as investors were slow to return from the holidays.Source: Daily News & Analysis: Money News | 29 Dec 2009 | 1:05 am Max India to sell 9.4% to Goldman unit for $115 mn - Economic Times
Source: Business - Google News | 29 Dec 2009 | 1:01 am ICICI sees 2010 infrastructure growth - reportMILAN (Reuters) - Infrastructure, telecoms and health are expected to be among growth sectors for the economy next year, ICICI Bank Ltd Chief Executive Chanda Kochhar said in an interview published on Tuesday.Source: Reuters: Money News | 29 Dec 2009 | 12:58 am Ranbaxy sells entire stake in China JVMUMBAI (Reuters) - Ranbaxy Laboratories said on Tuesday it had transferred its entire shareholding in a Chinese joint venture firm to state-owned Chinese firm HNG Chembio Pharmacy Ltd.Source: Reuters: Money News | 29 Dec 2009 | 12:57 am NMDC to sell 8.4% stake before end-MarchMumbai: State-run NMDC Ltd, India’s largest iron ore exporter, said on Tuesday the government will sell 8.38% in the firm through a follow-on public offer by the end of March in a deal that would raise about $3 billion based on the firm’s current market value. NMDC shares jumped on the news, rising as high as 4.6%. At 1.00pm, the stock was trading at Rs427.60, still up 3.3%. The public offer for NMDC, which the market values at $35.3 billion, could raise as much as $2.96 billion for the Union government and would bring the public float in the company to 10%. The government owns over 98% in the company. India aims to sell shares of about 60 state-run firms in the coming years, as the government races to raise funds for speedier reforms and to cover a widening fiscal deficit. Since August, the government has raised $1.8 billion by selling shares in NHPC and Oil India, while it has approved the sale of shares in NTPC, Satluj Jal Vidyut Nigam and Rural Electrification Corp. Source: Home - Livemint.com | 29 Dec 2009 | 12:55 am NMDC to sell 8.4 pct stake before end-MarchMUMBAI (Reuters) - State-run NMDC Ltd, India's largest iron ore exporter, said on Tuesday the government will sell 8.38 percent in the firm through a follow-on public offer by the end of March in a deal that would raise about $3 billion based on the firm's current market value.Source: Reuters: Money News | 29 Dec 2009 | 12:54 am Ranbaxy shares fall on FDA letter to unitNew Delhi: Shares in Ranbaxy Laboratories fell as much as 4% on Tuesday morning on news the US Food and Drug Administration (FDA) had warned a US unit about violations of good manufacturing practices. Ranbaxy said after the market close on Thursday it had received a letter dated 21 December about violations at its Ohm unit’s liquid manufacturing facility in New York. Stock markets were closed on Friday and Monday, and in the first market reaction to the news, Ranbaxy shares fell as much as 4%. At 0600 GMT the shares were down 1% at Rs514.80 in a Mumbai market up 0.1%. “It will have some impact on the stock but not a devastating impact,” said Sarabjit Kour Nangra, a pharmaceuticals analyst with Mumbai’s Angel Broking. Ohm has two other plants in the US from where it can make key drugs such as the generic version of GlaxoSmithKline’s Valtrex, Nangra said. Citigroup analysts said in a note the FDA warning was a dampener for the stock but would have “negligible” financial impact as the facility accounts for under a tenth of Ranbaxy’s US sales. They also said Ranbaxy’s first-to-file pipeline appeared to be secure and there was no fresh risk to its valuations. “We would view any dip as an enhanced buying opportunity,” the analysts said, who have a “buy” rating on the stock. Ranbaxy is majority owned by Japan’s Daiichi Sankyo. Late last year, Ranbaxy shares had plummeted after a US ban on some of its products from two of its plants in India. The FDA in February said Ranbaxy had sold misbranded or adulterated drugs in the US, its largest market. Source: Home - Livemint.com | 29 Dec 2009 | 12:10 am BSE Sensex extends gains; power, telecoms leadMUMBAI (Reuters) – The BSE Sensex rose to two-month highs on Tuesday to be not far from its highest since May 2008, led by power and telecoms as sentiment remained positive on hopes of global economic recovery and robust December quarter earnings.Source: Reuters: Money News | 29 Dec 2009 | 12:05 am 3G winners may have to pay bid amount upfrontMobile operators winning the auction for third generation mobile spectrum may be asked to pay the entire bid amount upfront within 20 days after the bidding process is completed.Source: Business Line - Home Page | 29 Dec 2009 | 12:00 am BL Kashyap and Sons (Rs 447.9): BuyWe recommend a buy in the stock of BL Kashyap and Sons from a short-term horizon. It is evident from the charts of the stock that on December 24 it made an upward break through of a narrow sideways consolidation band between Rs 375 and Rs 420Source: Business Line - Home Page | 29 Dec 2009 | 12:00 am Metals, IT stocks turn outperformers in 2009In a role reversal, the sector underdogs of 2008 emerged as the biggest outperformers inSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Bengal, Gujarat, Rajasthan to play major role in solar powerWest Bengal, Gujarat and Rajasthan will be the major participants in the National Solar Mission (NSM) as these three States together will produce nearly 30 per cent of the targeted 20,000 MW solar power in the country by 2022, according to Mr SPSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Hardware: Riding out of downturnThe global downturn and weak buying sentiments dented sales of computers and IT products in the country during the first half of 2009, although renewed consumer confidence backed by domestic growth lifted flagging demand ahead of the festiveSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Japanese PM wants bilateral trade to grow with investmentsThe visiting Japanese Prime Minister, Mr Yukio Hatoyama, on Monday called for measures to step up bilateral trade between India and Japan, even as Japanese direct investment in India has gone up substantially.Source: Business Line - Home Page | 29 Dec 2009 | 12:00 am Lower realisations may hit steel cos' profits in Q3Third quarter profits for steel companies may come in lower compared with the same period lastSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Nabard employees decry move to transfer RBI stakeThe All-India Nabard Employees Association (AINEA) has strongly expressed its dissent against the Centre's proposed move to transfer Reserve Bank of India's stake in Nabard (National Bank for Agriculture and Rural Development) on toSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am PowerGrid plans 7 transmission corridorsPower Grid Corporation of India Ltd (PGCIL) has identified seven high-capacity transmission corridors, for wheeling power from a number of private generation projects coming up in the eastern and southernSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Markets ignore Govt farm support prices time and againIn January, the Union Government raised the minimum support price (MSP) for wheat to Rs 1,080 aSource: Business Line - Home Page | 29 Dec 2009 | 12:00 am Markets extend gains; power, telecoms leadMumbai: Indian shares rose to two-month highs on Tuesday to be not far from their highest since May 2008, led by power and telecoms as sentiment remained positive on hopes of global economic recovery and robust December quarter earnings. Top power producer NTPC rose 1.4% to Rs233.20, and K.K. Mital, head of portfolio management services at Globe Capital, said there was huge interest in the state-run firm ahead of an expected follow-on share sale in early 2010. Telecom majors Bharti Airtel and Reliance Communications rose 1.4% and 0.7% respectively, as some investors saw value in the main index’s worst performing stocks this year. At 11:10am, the 30-share BSE Index was up 0.21% at 17,396.67, with 18 components gaining, as trade resumed after holidays on Friday and Monday. The index rose to 17,441.71 in early trade, its highest since 20 October. It hit its 2009 peak of 17.493.17 on 17 October. “There is no bad news on the domestic or international front which could bring our market down,” said Mital, adding Chinese and Indian GDP data and US retail sales figures were signs of global improvement. The benchmark index has risen 80% in 2009, helped by foreign funds inflows of $17 billion in Indian equities. Copper producer Sterlite Industries climbed 0.9% to Rs867.05 after London copper prices leapt almost 2% to a 16-month peak. Drug maker Ranbaxy was down 0.9% at Rs515.20. It said on Thursday the US Food and Drug Administration (FDA) had warned a US unit about violations of good manufacturing practices. “While this development, by itself, does not appear to have a material impact on financials or the key drivers, it is likely to affect recently rising confidence levels with respect to the stock among investors, given its past issues with the FDA,” Citigroup analysts said in a note. In the broader market, gainers led losers in the ratio of 2.4:1 on volume of 115 million shares. The 50-share NSE index was up 0.2% at 5,190.75. Source: Home - Livemint.com | 28 Dec 2009 | 11:42 pm Reliance Industries board member Ravimohan diesMUMBAI (Reuters) - Reliance Industries said R. Ravimohan, an executive director who joined the company's board in August 2009, died at the age of 52 on Monday evening, a company statement said.Source: Reuters: Money News | 28 Dec 2009 | 11:07 pm Max India to sell 9.4% to Goldman unit for $115 mnMumbai: Max India Ltd said on Tuesday it will sell 9.4% stake in the company to Goldman Sachs Capital Partners for a rupee equivalent of around $115 million on preferential basis. Goldman Sachs Capital Partners is the private equity arm of Goldman Sachs. Max India will issue Fully and Compulsorily Convertible Debentures (FCDs) of the face value of Rs867 to Goldman through its wholly owned subsidiary Xenok Ltd, Max India informed the Bombay Stock Exchange. The FCDs will carry a coupon rate of 12% per annum and will have to be converted to equity before 15 months from the date of allotment. Max India has convened an extra-ordinary general meeting on 22 January 2010, to obtain shareholders’ approval for the FCD and warrant. The issuance would be at Rs46.77 per US dollar, it said. The company also said it will issue 2 million warrants to promoter Analjit Singh for Rs1.73 billion. Max India is a diversified firm with interests in healthcare, information technology and financial services. Source: Home - Livemint.com | 28 Dec 2009 | 11:03 pm Dangerous pitch threatens New Delhi’s World Cup venue hopesChennai: New Delhi is in danger of losing its hosting rights for the 2011 World Cup following a scathing report on the Feroz Shah Kotla pitch after a one-day international was abandoned, media in India reported on Tuesday. The fifth and final one-day international between Sri Lanka and India in New Delhi was called off after 23.3 overs on Sunday due to a dangerous pitch upon which the tourists had toiled to reach 83 for five before play was halted. Match referee Alan Hurst had classified the pitch “unfit”, the Hindustan Times reported, quoting from the official’s report to the International Cricket Council. The classification was the worst of six possible categories, the newspaper said, and attracts a suspension of the status to host international matches for a period between 12-24 months. The International Cricket Council’s stringent new rules governing venues came into effect in October this year. The stadium is due to stage four matches of the World Cup to be jointly hosted by India, Sri Lanka and Bangladesh from 19 February to 2 April 2011. “The pitch did not meet the requirements for an ODI match,” the paper quoted Hurst’s report as saying. “This meant the players were unsure of what the ball would do. However, of more concern was the dangerous bounce that occurred randomly and accounted for batsmen being struck on a number of occasions. “The pitch did not allow players to play with any confidence and was totally unsuitable for international cricket.” The Board of Control for Cricket in India had received a notice classifying the pitch as “unfit” and has been given 14 days to respond, the paper said. The BCCI’s response along with the match footage will be reviewed by the ICC’s chief referee Ranjan Madugalle and the governing body’s cricket operations manager Dave Richardson before a decision is pronounced. Sports minister Manohar Singh Gill said the fiasco was shameful for the country. “It is very unfortunate and a great embarrassment for the country. It should not have happened,” he told domestic media. Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 10:48 pm No immediate plan to up fuel prices: GovtNew Delhi: The government has no immediate plans to raise fuel prices, the country’s petroleum secretary said on Tuesday, after a newspaper report that auto fuel prices could be raised early next year. The Hindustan Times newspaper, without citing any sources, said in a report that prices of auto fuel could increase “anytime early next year.” “There is no such proposal yet,” petroleum secretary R S Pandey told Reuters, when asked to comment on the news report. India previously raised fuel prices by as much as 10% in July, when global crude oil prices were hovering at about $70 a barrel. US crude for February delivery fell 28 cents to $78.49 a barrel by 0332 GMT. State-run refiners sell petrol, diesel, kerosene and cooking gas at low government-fixed rates to control inflation and help the poor, and receive partial compensation from the government. Source: Home - Livemint.com | 28 Dec 2009 | 10:47 pm Vampires rule, ‘Transformers’ divides movie fansLos Angeles: The Twilight vampire franchise topped a survey of 2009 moviegoers’ favourites, but film fans were divided over whether they loved or hated this year’s Transformers sequel. A poll on the AOL movie website Moviefone.com ranked Transformers: Revenge of the Fallen both the worst of 2009 and the year’s best action movie, as well as the second-most disappointing film of the year -- after Bruno. And Transformers star Megan Fox was overwhelmingly voted both the year’s sexiest female actress, and the actress who gave the worst performance of the 2009, according to the poll released on Monday. Whatever the views of Moviefone.com followers, Transformers: Revenge of the Fallen grossed more than $834 million in ticket sales worldwide to make it the third-most commercially successful movie of 2009, behind Harry Potter and the Half-Blood Prince and Ice Age: Dawn of the Dinosaurs, according to Boxofficemojo.com. Voters showed no such ambivalence about New Moon, the sequel to 2008’s blockbuster Twilight, based on the best-selling young-adult novels by Stephenie Meyer. Although it ranks No. 6 in 2009 global box office receipts with $662 million so far, New Moon was named best movie in the Moviefone poll, drawing 41.1% of the vote. It also was named the year’s best chick flick. Robert Pattinson was chosen sexiest male star, with 46.5% of the vote, followed by co-star Taylor Lautner (20.1%), who also was voted best male breakout star of 2009. The next movie in the vampire teen romance series -- The Twilight Saga: Eclipse -- topped the list of coming attractions Moviefone fans are most excited about seeing in 2010, soundly beating Iron Man 2 and Harry Potter and the Deathly Hallows: Part I. Summer comedy The Hangover was rated the funniest movie of 2009, taking 51.8% of vote, while Disney-Pixar’s Up was voted best animated film and Sandra Bullock won for best performance by an actress in the surprise hit The Blind Side. Full results of the poll, which received more than 238,000 votes, can be seen at Moviefone.com. Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 10:33 pm Sensex up 81 pts; Nifty crosses 5,200 levelThe Bombay Stock Exchange benchmark Sensex on Tuesday rose by 81.10 points to 17,441.71 points on buying by funds in auto and consumer durables stocks.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 10:13 pm Rupee falls by 4 paise against dollar in opening tradeThe rupee on Tuesday depreciated by 4 paise to 46.69 a dollar in the opening trade on demand for the US currency, which rose against other Asian currencies.Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 9:59 pm Govt says has no immediate plan to up fuel pricesNEW DELHI (Reuters) – The government has no immediate plans to raise fuel prices, the country's petroleum secretary said on Tuesday, after a newspaper report that auto fuel prices could be raised early next year.Source: Reuters: Money News | 28 Dec 2009 | 9:30 pm JAL shares touch record low on bankruptcy worriesTokyo: Shares of Japan Airlines Corp fell as much as 11% to renew a record low on Tuesday as investor worries mount the carrier will be restructured in bankruptcy court as part of a state bailout. The stock slide was prompted by media reports that a state-backed turnaround fund now weighing whether to support JAL with loans and investments was considering a bankruptcy filing as one component of its restructuring plan. Sources told Reuters on Monday the Enterprise Turnaround Initiative Corp of Japan has told creditors it may look to have JAL use Japan’s Corporate Rehabilitation Law, a process similar to Chapter 11 that could wipe out the value of JAL’s shares. The ETIC has not ruled out an out-of-court restructuring in coordination with JAL’s main creditors, the sources said. No one at JAL could be immediately reached for comment. “There’s a lot of concern about what might happen if JAL does end up going through bankruptcy court, what will happen to shareholders if the stock basically becomes worthless,” said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Securities. Shares of JAL were down ¥9 at ¥87 in midafternoon in Tokyo, after renewing a record low of ¥85 marked in late November. The stock has lost nearly 60% of its value this year. The chances of bankruptcy appeared to increase last week when finance minister Hirohisa Fujii said the state would not back any more loans to JAL. Banks are wary of extending fresh loans to JAL unless the state insures them against losses. A bankruptcy could complicate talks with American Airlines and Delta Air Lines, which are courting JAL with rival offers of investment to gain access to its network in Asia and closer ties on US-Japan routes. JAL, choking on ¥1.5 trillion ($16 billion) in debt and crippling pension costs, applied for assistance from the ETIC in late October. The ETIC is expected to decided whether JAL is worthy of public funds in January. Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 9:30 pm India to delay 3G auction - papers - Reuters
Source: Business - Google News | 28 Dec 2009 | 9:11 pm Rupee falls by 4 paise against dollar in opening tradeThe rupee on Tuesday depreciated by 4 paise to 46.69 a dollar in the opening trade on demand for the US currency, which rose against other Asian currencies.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 9:04 pm Wall Street edges up to 2009 highs as holiday sales helpNew York: US stocks edged higher for a sixth straight day on Monday as data indicating improved consumer spending lifted shares of retailers, offsetting a drop in airline shares amid security worries. Indexes hit fresh closing highs for 2009, but volume was light in what was expected to be a slow last week of trading for 2009, with investors attempting to hold on to solid profits for the year. Sales at US retailers rose 3.6% for the period from 1 November to Christmas Eve, but gained only 1% when an extra shopping day this year was excluded, data from MasterCard Advisors unit SpendingPulse showed. Still, the data was enough to bolster shares of leading retailers, including Macy’s Inc, up 1.1% at $17.76. “A few people were looking for a disaster, so that’s a little bit of a boost,” said Fred Dickson, market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon. “It looks like we’re drifting into year end with a modest rally on light volume.” Airline stocks fell as the United States tightened airline security after a Nigerian man was charged with smuggling explosives aboard a trans-Atlantic flight and attempting to blow up the plane. The Dow Jones industrial average gained 26.98 points, or 0.26%, to end at 10,547.08. The Standard & Poor’s 500 Index inched up 1.30 points, or 0.12%, to 1,127.78. The Nasdaq Composite Index rose 5.39 points, or 0.24%, to 2,291.08. The S&P 500 is up about 25% for the year. AMR Corp, the parent of American Airlines, lost 4.8% to $7.75, while Delta Air Lines Inc dropped 4.1% to $11.29. The NYSE Arca Airline index shed 1.8%. On Monday afternoon, a branch of Al Qaeda said it was behind the failed Christmas Day attack, according to a Web statement. “The airlines security concerns from the weekend certainly added a little heightened anxiety,” said Micheal James, senior trader at Wedbush Morgan in Los Angeles. US oil futures rose 72 cents to settle at $78.77 a barrel, after hitting $79.12, a five-week high. Energy shares advanced, picking up their cue from climbing oil prices. Shares of Exxon Mobil Corp rose 0.6% to $69.08. Among other retailers, Amazon.com Inc rose 0.6% to $139.31 on Nasdaq after it said customers bought more e-books than physical books for the first time ever on Christmas Day. The S&P Retail Index added 0.3%. Volume was exceptionally light on the New York Stock Exchange, with only about 705.31 million shares changing hands, compared with last year’s estimated average daily volume of 1.49 billion. On the Nasdaq, about 1.25 billion shares traded, also well below last year’s daily average of 2.28 billion. Advancers outnumbered decliners on the NYSE by a ratio of about 16 to 15. On the Nasdaq, though, the opposite trend held sway, with about five stocks falling for every four that rose. Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 8:54 pm Abu Dhabi signs billion dollar gas deal with HyundaiAbu Dhabi Gas Liquefaction Company (ADGAS) and South Korea's Hyundai Heavy Industries Company (HHI) have signed a pact worth $1 billion to develop a gas field in the United Arab Emirates (UAE), WAM news agency reported.Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 8:00 pm Analysts counsel caution for investorsMumbai: On 22 December, Michael J. Enabler, chief investment officer at Franklin Templeton Investments’ Mutual Series, wrote in a note: “We are seeing some of the best companies in the world trading at prices that we thought we could never get to see as value investors.”  Also See Taking a beating (PDF) All but two of 12 sectoral indices on BSE have lost at least 50% in value as they took a relentless beating from the global financial crisis and economic slowdown, with the 30-stock Sensex shedding at least 54% of its value in 2008. While investors are often advised to spot low-cost, high-value opportunities in firms with solid credentials when the markets are being pummelled, analysts this time are telling them to adopt a defensive approach given the volatility that is likely to continue into 2009. “The markets will continue to be volatile next year, too,” said Sandeep Kothari, a fund manager at Fidelity International’s India arm, who manages three equity funds, in a research note. Worse, a 17 December note on the global emerging markets fund manager survey by Merrill Lynch and Co., Inc. ranks India as its least preferred market among the Bric (Brazil, Russia, India and China) countries.  Banks Indian banks have been watched closely for exposure to overseas toxic assets such as subprime mortgage-based derivatives since the September collapse of US investment bank Lehman Brothers Holdings Inc. But Anup Bagchi, executive director of ICICI Securities Ltd, says they are likely to be the first off the block as soon as markets return to a semblance of normalcy. With interest rates starting to cool off, and falling inflation paving the way for more interest cuts by the Reserve Bank of India, banks, which have 24% of their deposits statutorily parked in government securities, will have huge gains in their investment portfolios. In fact, a report from Macquarie Research names HDFC Bank Ltd among its “diamonds in the rough”, meaning that the bank offers huge upside potential. But some naysayers advise investors to avoid bank stocks. Credit Suisse recommends staying away from bank stocks despite the monetary easing, basing its assessment on a likely rise in non-performing assets (NPAs), which are currently at a historical low of 2.3%. Two sectors that until recently were seen as icons of the “India story”—real estate and retail—are now being shunned. In fact, the two sectors are believed to constitute a large chunk of the banking sector NPAs and are to be kept at arm’s length, analysts said. BSE index representing the real estate sector has fallen the most during the year, having lost 82.71%. “One can cannot write off real estate, but the sector will take two-three years to realign itself,” said Bagchi, who added that the immediate concern for companies in this sector is to generate cash flows to meet interest payments in a market where demand for new projects has slackened. Real estate stocks, which thrived during the height of the bull run in 2007 because of valuations based on the land the companies held, suffered in 2008 as investors started focusing on the speed of execution of projects. Retail, too, will have to realign and renegotiate rentals and contracts with suppliers before it can get off the block, Bagchi said. Information techonology Ironically, the fortunes of India’s most respected, and recognized sector globally, information technology (IT), are umbilically bound to the dollar, the currency of the country where the financial crisis originated, and to which investors flocked as they invested in US treasury bills, seen as the safest bet in an uncertain world. This led to a sudden hike in the dollar’s value even as the US economy officially entered recession, pushing the IT industry’s earnings down, given its largely export-oriented business model. While most analysts say the recent dollar appreciation is an aberration waiting to correct, there is little clarity on the extent of the correction or when it will take place. “Longer term, we expect the INR (rupee) to marginally strengthen, but the timing of the reversal is difficult to estimate and depends on the normalization of global risk appetite,” said Rohini Malkani, economist at Citigroup Global Markets Inc., in a research note. The energy sector, especially oil refining and marketing companies, may benefit from lower crude prices, but Bagchi warns that the sector will likely continue to contend with political volatility, something it has been doing for long. Reliance Industries Ltd, which last week commissioned its 590,000 barrels per day refinery at Jamnagar in Gujarat, may be the best positioned to capitalize on any gains for the sector. “Despite assumed margin squeeze, we expect profits to double over three years, purely from massive gas volume growth priced at only $25 (Rs1,197.5)/bbl,” said a Macquarie Research report. Autos As for the auto industry, which until earlier this year held out promise but has experienced a slowing in sales of both commercial and passenger vehicles, analysts suggest steering clear of the sector. “Auto companies are stuck with inventories, and they need to clear that first to perform,” said Bagchi. sanat.v@livemint.com Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 5:03 pm Fares high but flights full this New YearThis year-end, even sky-high airfares have failed to dampen the enthusiasm of Indian fliers. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 1:05 pm Funds bounce back with better showMany funds that were battered in last year's market downturn have bounced back even more sharply, generating over 100% return.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:53 pm NTPC inks deal with BhutanNTPC has entered into a preliminary agreement with Bhutan government to construct a 600 mw reservoir-based hydel project on the Amo Chhu river in the neighbouring country as part of its plans to expand into hydel sector.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:52 pm Investors a happier lot in 2009Most equity investors have had happy returns this year. However, some investors, who chose to bet big on certain sectors such as auto, metal and IT, are happier because they are harvesting bumper profits.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:51 pm NTPC FPO set to be 1st auction issueThe follow-on public offering (FPO) of state-run power giant NTPC Ltd is likely to be the first public issue that would use the auction route through capital markets.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:49 pm Satyam effect? 16 PwC EDs quit to join KPMGSixteen of PwC executive directors (ED) from the tax practice division, including top ED Dinesh Kanabar, resigned to join rival firm KPMG.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:49 pm Deregulate oil pricing, says IIM-AAn IIM-A study on the oil sector has suggested radical reforms, including complete deregulation, where private and public sector firms are free to price fuel as they deem fit.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:48 pm Workers of Colgate strike at AurangabadWorkmen at Colgate-Palmolive (India)'s Aurangabad toothpowder factory have gone on strike effective December 26.Source: India Business News | Business News - Times of India | 28 Dec 2009 | 12:46 pm Europe, Asia stocks advance on economyParis: European stocks climbed to the highest level since October 2008 and Asian shares advanced after China raised its economic growth forecast and Japan’s industrial production increased. US index futures also gained. Infineon Technologies AG, which gets more than 40% of annual sales from the Asia-Pacific region, added 1.1%. ArcelorMittal-led basic-resources companies higher as metals prices rose. Seadrill Ltd, the drilling company founded by billionaire John Fredriksen, and Aker Solutions ASA gained at least 1% as crude oil traded above $78 (Rs3,650) a barrel. Europe’s Dow Jones Stoxx 600 index added 0.4% to 252.89 points as of 12.46pm in Paris. The gauge is heading for its biggest annual increase in a decade, having climbed 27% this year, on mounting evidence that the global economy is recovering from its worst recession since World War II. Markets in Europe were closed on 25 December for the Christmas holiday. China on 25 December raised its 2008 growth estimate to 9.6% from 9% and said this year’s quarterly figures will also increase, narrowing the gap with Japan, the world’s second biggest economy. “Emerging markets’ economies will support global growth,” said Arnaud Scarpaci, a fund manager at Agilis Gestion in Paris, which oversees about $150 million. “That’s good for stocks. We expect another year of gains in 2010.” Japan’s cabinet office said on 25 December that the economy will expand for the first time in three years and on Monday said industrial production improved for a ninth month in November. A 60% rally in the Stoxx 600 since March has been spurred by record-low interest rates in the US and Europe and as governments committed about $12 trillion worldwide to revive credit markets and stimulate economic growth. US stocks rose last week, pushing the Standard and Poor’s 500 index to a 15-month high. Futures on the benchmark for US equities increased 0.1% on Monday, and the MSCI Asia Pacific Index advanced 0.7%. Infineon, Europe’s second biggest semiconductor maker, climbed 1.1% to €3.83 (Rs257). ArcelorMittal rose 1.5% to €31.77. Basic-resources shares were the best performers among 19 industry groups in the Stoxx 600. Copper in Shanghai climbed to the highest price in more than 15 months on optimism demand is improving in the world’s largest user after domestic stockpiles dropped. Zinc jumped to the highest since April 2008. Seadrill rose 1.1% to 149.1 kroner (Rs1,198). Aker Solutions, Norway’s biggest maker of oil platforms and equipment, advanced 1% to 76.15 kroner. Tenaris SA, the world’s largest maker of seamless pipes used to extract oil and gas, added 1.8% to €15.04. Crude oil climbed for a fourth day as forecasts of colder-than-normal weather in the US increased demand for heating fuels. PSA Peugeot Citroen SA, Europe’s second biggest car maker, added 0.9% to €23.67. French new car sales increased by about 40% between 1 December and 23 December, helped by scrapping incentives, French daily Les Echos reported, without citing anyone. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 12:45 pm FII fund flows set to top 2007 levelsMumbai: The year 2009 began with a whimper but has ended with a bang, at least as far as portfolio investments by foreign institutional investors, or FIIs, into the Indian stock market go. Foreign money moves markets in India, and the huge FII inflows after March inevitably helped equity prices bounce back from their panic-stricken lows. FIIs have already pumped in $17.13 billion (around Rs80,000 crore) till 24 December and they are on course to surpass the levels seen in 2007, at the height of the bull market. This gush of money in 2009 comes after FIIs sucked out $12.18 billion in 2008 by selling Indian shares, the most in 15 years, in the aftermath of the global financial meltdown after the collapse of investment bank Lehman Brothers Holdings Inc. FIIs continued to head for exits in January and February as well. Also See Increasing Foreign Funds (Graphics) Market experts expect strong inflows to continue in 2010, as the Indian economy outperforms most other national economies. The huge capital needs of Indian companies as they try to repair balance sheets and fund capacity additions with money raised from share sales are also expected to act as magnets for foreign equity investors. “India has recovered faster than other emerging markets. As long as the Western economies do not call for an exit from the stimuli packages and the pressure on the local currency is kept under control, there will not be any significant change in FII inflows during 2010,” said Ullal Ravindra Bhat, managing director of the Indian arm of Dalton Strategic Partnership Llp, a global fund registered as an FII in India. FIIs have invested at least $72.39 billion in India since 1993, when the government opened the doors to foreign portfolio capital. However, foreign investors may be a bit watchful in the first quarter of 2010 as they figure out how soon the government and the Reserve Bank of India will withdraw the accommodative policies put in place to keep growth on track during the global economic collapse at the end of 2008. A growth revival and renewed inflation make tighter monetary and fiscal policies very likely in 2010. According to a report by Deutsche Bank AG, India Outlook 2010, “…Wholesale Price Index inflation could readily exceed 7% by the second quarter. So far the central bank has refrained from tightening monetary policy as the economic recovery has been at a nascent stage, but we expect liquidity tightening measures from January onward and rate hikes from April onward.” A report by Citigroup Global Markets cautions against two polar risks. “A bout of risk aversion triggered by negative global events could lead to a fast reversal of such flows and is the key risk to our positive stance... Conversely, a strong positive catalyst could attract large inflows, which can trigger a liquidity-driven rally and take markets into an overvaluation zone.” Even as the existing FIIs stepped up investments into India, new players came to sniff out opportunities in 2009, which saw 110 new FII registrations and 432 new FII sub-accounts. “Money will chase growth. The FIIs are confident about domestic growth and the abundant liquidity for money market instruments. Also, a lot of this FII money will be absorbed by IPOs and QIPs during the coming year,” added Bhat. IPOs are initial public offers and QIPs are qualified institutional placements. The good times may roll on, but there is an important difference in the way FII money has come into India in 2007 and 2009—a difference that may offer some clues about 2010. While a majority of FII inflows came via participatory notes, or PNs, till 2007, fund managers have opted for the sub-account route in 2009. Till 2007, FIIs were mostly using the PNs, derivatives used by foreign funds not registered in India to trade local shares while the actual investors remained anonymous. Capital market regulator Securities and Exchange Board of India (Sebi) had banned PNs in October 2007, amid concerns that volatile foreign exchange inflows were fuelling an asset bubble. A year later, the credit freeze forced the regulator to lift the ban as part of its efforts to keep capital within India. But foreign investors now prefer to park their funds through the sub-account route as there is an uncertainty whether Sebi will continue to allow FIIs to issue PNs or not. A sub-account, an actively managed investment book, is run in the name of registered FIIs, but managed by separate fund managers. From the peak of 55.7% in June 2007, PNs now account for 16.5% of total assets managed by FIIs in October 2009. This proportion has remained almost constant since January, despite the surge in FII inflows. Meanwhile, according to a report by Citigroup Global Markets, a combination of external factors such as global liquidity, a weak dollar and higher risk appetite coupled with the domestic story of higher growth and interest rates sets the environment for a continuation of dollar inflows in 2010. Graphic by Ahmed Raza Khan/Mint anirudh.l@livemint.com Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 12:45 pm In South-East Asia, unease over new free trade zoneKuala Lumpur: When the clock strikes midnight on New Year’s eve, China and 10 South-East Asian nations will usher in the world’s third-largest free trade area. While many industries are eager for tariffs to fall on everything from textiles and rubber to vegetable oils and steel, a few are nervously waiting to see whether the agreement will mean boom or bust for their businesses. Trade between China and the 10 states that make up the Association of Southeast Asian Nations (Asean) has soared in recent years, to $192.5 billion (Rs9 trillion now) in 2008, from $59.6 billion in 2003. The new free trade zone, which will remove tariffs on 90% of traded goods, is expected to increase that commerce still more. The zone will rank behind only the European Economic Area and the North American Free Trade Area in trade volume. It will encompass 1.9 billion people. The free trade area is expected to help Asean countries increase exports, particularly those with commodities that resource-hungry China desperately wants. The China-Asean free trade area has faced less vocal opposition than the European and North American zones, perhaps because existing tariffs were already low and because it is unlikely to alter commerce patterns radically, analysts say. But some manufacturers in South-East Asia are concerned that cheap Chinese goods may flood their markets once import taxes are removed. Indonesia plans to ask for a delay in removing tariffs from items like steel products, petrochemicals and electronics. “Not everyone in Asean sees this FTA as a plus,” said Sothirak Pou, a visiting senior research fellow at the Institute of South-East Asian Studies in Singapore. Asean and China have gradually reduced many tariffs in recent years. However, under the free trade agreement, signed in 2002, China, Indonesia, Thailand, the Philippines, Malaysia, Singapore and Brunei will have to remove almost all the tariffs in 2010. Asean’s newest members—Cambodia, Laos, Vietnam and Myanmar—will gradually reduce tariffs in coming years and eliminate them all by 2015. Most of the goods that will become tariff-free in January, like manufactured items, are now subject to import taxes of about 5%. Some agricultural products and parts for motor vehicles and heavy machinery will still face tariffs in 2010, but will gradually be phased out. In recent years, China has overtaken the US to become Asean’s third-largest trading partner after Japan and the European Union. The overall trade balance has shifted slightly in China’s favour, although there are significant differences among South-East Asian countries’ trade balances, said Thomas Kaegi, head of macroeconomic research for the Asia-Pacific region at UBS Wealth Management Research. Singapore, Malaysia and Thailand have only small trade deficits with China, while Vietnam’s has grown sharply. In 2008, Vietnam exported items worth $4.5 billion to China but imported about $15.7 billion worth of Chinese goods. While competing with more Chinese imports may pose new challenges for Asean manufacturers, increasing their access to China’s 1.3 billion people could give significant benefits, say analysts. © 2009 / NEW YORK TIMES Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 12:22 pm House-rich, cash-poor? Now get income for lifeIt is the last solution for a retired person. But one that many, who are in the unfortunate position of being house-rich but cash-poor, are being forced to consider. The reverse mortgage product has been in India for more than three years now, but it is still in its early stages of development. Also See Which Works? (Graphic) However, a new product to hit the market shows that the product is evolving and may be more friendly to the customer than the ones that are currently in the market. Central Bank of India’s reverse mortgage loan annuity (RMLA) product, called Cent Swabhiman Plus, combines annuity with a plain-vanilla reverse mortgage product for an old couple to overcome the risk of living too long. What’s new? In a regular reverse mortgage, the owner borrows against the equity in his house and gets regular monthly payments from the bank, usually for 15 to 20 years. If the borrower outlives the tenure, he is not asked to move out of the house, but payments stop. Under RMLA, you get regular income throughout your life. Says Arun Kaul, executive director, Central Bank: “We pass on the value of the house to the insurance company by paying premiums. The insurer, in turn, makes regular payments to the beneficiary through the bank.” Unlike regular reverse mortgage, where the banks make the payment, here the bank merely acts as an interface between the insurer and the customer. Scheme details It’s cheaper: Look at a reverse mortgage product as a loan against the house on which you have to pay interest. So, the lower the rate, the better it is for you. RMLA comes with a fixed rate of 9.50% with a reset option every two years. On the other hand, most other products in the market are more expensive (you get less income)—at 10.25-12%. Flexibility: Most products allow you to access income on a monthly, quarterly, half-yearly or annual basis. RMLA also gives the option of taking 25% of the amount as lump sum loan and the remaining as annuity. Annuity options RMLA has two options that come with the annuity product it buys from Star Union Dai-chi Life Insurance Co. Ltd. Option 1: Called, “without return of premium”, this gives annuity till you die. After that, your heirs can repay the entire amount you received (premium and interest) to get back the house. Since you get more money under this as compared with the other option, it works best for those who don’t have an heir. For a property worth Rs1 crore, the annuity for a person aged 60-65 years will be Rs39,600 per month, according to Central Bank. Option 2: This option is called “with return of premium”. Under this, after your death, the insurer will repay the premiums to the bank. If your heirs want to get back the property, they will have to repay only the interest. You get lower annuity, but your kids need to pay less to recover the house. For a house worth Rs1 crore, you will get a monthly annuity of Rs28,880. Tax angle The difference between a regular product and this one is in the tax treatment. Says Gautam Nayak, chartered accountant, Contractor, Nayak and Kishnadwala: “All payments under reverse mortgage loan are exempt under section 10(43) of the Income-tax Act. But, monthly or periodic annuity payments are defined as ‘salaries’ under section 17 and are taxable.” This means that you will have to pay income-tax on the annuity on RMLA. For a house worth Rs1 crore, the product will give you a loan of Rs60 lakh, on which you will get a monthly payout of Rs39,600 for lifetime if you go for Option 1 or an annual income of Rs4.75 lakh. You will pay a tax of about Rs5,000 (assuming you exhaust all tax deductions available under section 80C and section 80D) and still get a disposable monthly income of Rs39,171. Compare this with State Bank of India’s reverse mortgage product that comes at an interest rate of 10.75%, promising regular income for 15 years. It gives just Rs22,500 per month or Rs2.7 lakh annually. This tax-free income is less than the tax paid for RMLA. What should you do? Reverse mortgage products are still in their infancy in India. If you are really pushed for cash and must give up your house, the Central Bank product looks to be the most consumer friendly as of now. Illustrations by Shyamal Banerjee / Graphic by Yogesh Kumar/Mint bindisha.s@livemint.com Source: LatestNews-Home - Livemint.com | 28 Dec 2009 | 12:18 pm Indian advertising has a long way to go on the digital highwayMumbai: Despite forecasts that growth in Internet advertising would outpace other media such as television and print in the year starting 1 April, marketeers are still cautious in allocating it a bigger share in the pie of ad spending.  Tiny share: Students browsing the Web. Advertising on the Internet currently accounts for only 3% of the country’s total ad spending. Rajkumar / Mint Online advertising in India will grow at 16% in the year to March 2011, ZenithOptimedia has predicted in a recent report. Digital advertising currently accounts for a mere 3% of the country’s ad spending. “TV is a visually literate medium,” says Ajay Kakkar, chief marketing officer, ICICI Prudential Life Insurance Co. Ltd. “I can reach out to mass India and I can focus wherever I want.” But when it comes to the Internet, Kakkar evaluates potential based on the volume of the target audience he can reach out to. “If the medium delivers, people will find a way (to increase spending),” says Sashi Sinha, chief executive officer of Lodestar Universal, a marketing consultancy. “Today, the way advertising decision-making has been fragmented is a concern. It will always be that the heavier media, print or television, will get the bigger weights. The medium has to speak for itself. Television came 20 years back, (but) it spoke for itself.” Sinha also believes the dependence on print and television will be reduced only if an advertiser is convinced about the effectiveness of new media. Also, the job of promoting the medium rests largely with the advertising agencies. Kakkar says there is a strong need to sell the concept. “The agency world has to realize they have a role to play to pitch their great product, have it understood, have it appreciated and thereafter there will be smooth sailing,” he says. “But till then the buyer may not choose to make the first move.” It is crucial for agencies to take an integrated approach to a brand’s needs and not segregate traditional media from digital, according to Karl Gomes, who has set up the digital function for many agencies including Leo Burnett and Rediffusion Y&R. “When we get a brief, we are not thinking of random solutions. The specialist who can do that solution well should do it and should be driven by somebody who can think across media,” Gomes says. “I think brands can move from just a positioning to a purpose if they use all mediums of interaction.” For this to happen, an integrated brief is necessary. Today, digital advertising is almost always an afterthought. Agencies are often given a brief for a print campaign, which they need to convert into a digital campaign at the last minute. There are, however, some companies that are recognizing the need to include digital in the media mix from day one. Ankush Arora, marketing head at General Motors India, holds that a large number of people shopping for information online led to the fact that the launch of the Chevrolet SRV in 2006 included a digital campaign from the start. “It took us about six weeks to get the agency to understand what we wanted to do with the car in the digital space,” Arora says. “Because when you talk of creative, even when you put down a brief, the first thing that comes to your mind is a TV creative or a print creative, and the same thing is plastered as a banner onto the digital space. We said no, lets change that,” Arora adds. The result, he says, was an interactive website, which suggested weekend spots for the prospective customer. General Motors will spend up to 10% of its marketing budget on the digital space by end of 2010, up from 6% this year. The company says the digital plan for the launch of the Beat hatchback car reiterates the point. Says Karthik Iyer, managing director, Carat Media, “Digital would have come of age when the advertiser doesn’t have to brief the agency about digital. He just briefs the agency for the brand. Today, no one briefs the agency separately for a TV spot or a print ad.” “I believe 2009-2010 is a huge cusp. That’s the attitudinal shift that’s taking place, and...digital will grow beyond 3%, actually,” says Srikanth Sastri, who heads Digitas in India. Digitas provides technology and marketing services. The success of some online ads would provide an impetus for others, according to Manish Vij, co-founder and chief business officer at Quasar Media Pvt. Ltd, an online interactive agency. “Brands would like to emulate other brands when successes do happen.” Storyboard airs on Tuesdays at 7pm. cnbctv18@livemint.com Source: Tech News - Livemint.com | 28 Dec 2009 | 12:00 pm Metro to moon amidst bust and boomPrime Minister Manmohan Singh calls the 21st century Indias century. If the trends of the first decade are anything to go by, the seeds have certainly been sown.Source: Business Standard | Front Page Headlines | 28 Dec 2009 | 11:47 am Record raising of funds in 2010India Inc could set a new fund-raising record in 2010. Even before the year starts, companies have lined up equity raising plans of Rs 1,50,000 crore, close to two-and-a-half times of what they raised through share sales this year.Source: Business Standard | Front Page Headlines | 28 Dec 2009 | 11:46 am Japan factory output jumpsJapan’s industrial output rose for the ninth consecutive month in November, driven by strong exports and domestic subsidies, but swelling inventories and falling wages threaten to end the longest climb in more than 12 years. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 9:06 am China industrial profit up in NovProfits at Chinese industrial companies returned to growth in January through November, ending a year of declines and offering clear evidence of a stronger recovery for the country’s businesses. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 9:05 am Empty auto showrooms find new life in USIn Lane County, Oregon, Joe Softich from Catholic Community Services helps erect shelves and unload boxes for a new food bank warehouse inside a former auto showroom. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 9:04 am Avatar rules as N American moviegoers set a recordBox office ticket sales in North America hit a record high for the Christmas weekend, a ticket sales tracking company said on Sunday, with Avatar topping the pack of hit films. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 9:02 am Fuel prices poised for a hikeAfter being insulated from an increase in the domestic fuel prices during the current financial year, consumers can expect an increase in the prices of auto fuels (petrol and diesel) anytime early next year following a steady increase in the global crude oil prices in the last nine months. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 8:59 am Reliance s Rosa plant starts producing powerReliance Power on Monday kicked off power generation at its coal-based Rosa Power Project at Rosa, Shahjahanpur in UP. Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 8:57 am Small cars way to boost India salesThe world's largest car-maker, Japan’s Toyota Motor Corp, on Monday said it is targeting an eight fold jump in sales in India by 2015-16.Source: HindustanTimes.com - Top Business News Headlines | 28 Dec 2009 | 8:54 am Hansen eyes China after Suzlon cuts stakeBrussels: Wind turbine gearbox maker Hansen Transmissions sees opportunities in the Chinese market after Suzlon Energy sold its controlling stake, its chief executive said in an interview published on Monday. CEO Ivan Brems told De Standaard newspaper Hansen had an advantage in the Chinese market as a result of loosening its ties with India’s Suzlon. Suzlon sold a 35% stake in November, leaving it with 26% of the company. Manufacturers of solar technology, a sister industry to wind power, have struggled to compete with cheaper imports from countries like China. However Brems said that competition from China was not such a grave concern for Hansen because of the level of technical knowledge required. “It requires a very large mechanical knowledge and it is not so obvious to set up production. The biggest Chinese manufacturer was able to make 92 copies with a yearly capacity of 2 megawatts. Hansen can build 2,000 per year.” Brems added that he expected sales for the year to reach the level of last year. Source: World Business - Livemint.com | 28 Dec 2009 | 2:49 am
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