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NTPC plans capex of over Rs 29,000 cr in FY`11!Country`s largest power producer NTPC on Wednesday said it plans to spend over Rs 29,000 crore in the next fiscal to augment its power generation capacity.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Sensex gains 203 pts in opening trade on global cues!Sensex on Thursday surged by 203 points, or 1.05 percent, in opening trade on fresh buying by funds, driven by rally on the global bourses.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Sarkozy calls for tighter regulation at Davos!French President Nicolas Sarkozy has called for bonus curbs, tighter banking regulations and new bookkeeping rules.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Toyota expands massive recall by million vehicles!Toyota Motor has expanded its massive recall in the United States by more than a million vehicles to replace floor mats that could trap accelerator pedals, in a fresh blow to the Japanese manufacturer.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Gold prices hit near 3-month low as dollar weighs!India gold futures edged lower on Thursday morning to hit a near three-month low, weighed by a stronger dollar overseas, dimming the yellow metal`s appeal as an alternative investment, analysts said.Source: Zee News : Business | 28 Jan 2010 | 5:24 am PNB may raise Rs 6,800 cr from bonds!The country`s second largest public sector lender Punjab National Bank on Wednesday said it could raise up to Rs 6,800 crore from bonds to fund growth plans.Source: Zee News : Business | 28 Jan 2010 | 5:24 am NALCO Q3 profit drops 29% to Rs 155.18 cr!State-run aluminium major National Aluminiun Company Ltd (NALCO) on Wednesday posted a decline of 29.29 per cent in its net profit at Rs 155.18 crore for the third quarter ended December 31, 2009, over the same period a year ago.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Satyam`s Ramalinga Raju declared `pauper` in US court!Ramalinga Raju, former chairman of Satyam Computers, who last year confessed to have inflated his company`s assets by over USD one billion, was declared a pauper by a court here exempting him from paying court costs.Source: Zee News : Business | 28 Jan 2010 | 5:24 am HCL Tech bags USD 50 mn contract from UK-based Meggitt!HCL Technologies on Thursday said it has received a contract worth around Rs 231 crore from UK-based defence equipment maker Meggitt for providing engineering services.Source: Zee News : Business | 28 Jan 2010 | 5:24 am Infosys rides early recovery wave as clients up outsourcingInfosys Technologies finds itself in a sweet spot as recovery hopes take hold, with customers showing a new urgency to outsource operations, its chief executive said on Wednesday.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 4:57 am Aptech to acquire Maya Ent\'s animation education bizAptech said on Thursday it will acquire up to 100% of Maya Entertainment following execution of definitive agreements.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 4:50 am Morgan Stanley\'s India head resignsThe Chief Executive of the Indian operations of US investment bank Morgan Stanley, Narayan Ramachandran, has stepped down from his position but will remain a senior advisor to the firm, the company said in a statement.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 4:40 am HCL Tech wins $50 mn deal from UK\'s MeggittHCL Technologies on Thursday said it won aUSD 50 million contract from British aeroplane parts supplier Meggitt.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 3:24 am Wipro launches greenware computersBased on the Intel Core 2 Duo processor, Wipro Greenware range of desktops were free from carcinogenic materials such as PVC and BFRs.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 3:07 am Tata Steel standalone Q3 net soars; beats forecastThe company said standalone net profit rose to Rs11.92 billion ($258 million) for the fiscal third quarter to end-December from 4.66 billion a year ago.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 3:06 am UPDATE 1-Tata Steel India Q3 net soars on strong demand - Reuters India
Source: Business - Google News | 28 Jan 2010 | 3:02 am Tata Steel Q3 net soars on strong demandMumbai: Tata Steel Ltd, the world’s No.8 steelmaker by output, glided past forecasts with quarterly profit more than doubling at its Indian operations on strong demand from the auto and construction sectors. Tata Steel’s first rise in quarterly profit for its Indian operations this fiscal year comes on the back of a 49% jump in sales volumes, which account for a quarter of its global capacity of about 30 million tonnes. Tata Steel will report consolidated quarterly results, including its European unit Corus, next month. Tata Steel shares extended gains to 5.3% to the day’s high of Rs588.4 after the results. The stock, valued at $11.7 billion, nearly trebled last year, easily beating an 81% gain on the main index. Tata Steel said standalone net profit rose to Rs1,192 crore ($258 million) for the fiscal third-quarter to end-December, from Rs466 crore a year ago. Net sales rose to Rs6,307 crore from Rs4,751 crore a year earlier. A Reuters poll of 12 analysts had estimated standalone net profit of Rs1,000 on net sales of Rs5,830 crore. Global steel production fell 8% in 2009 as demand from key industries shrank amidst a global economic downturn. As economies improve and steel stocks are run down, demand is forecast to rise about 10% this year. Earlier this month, POSCO, the world’s fourth-ranked steelmaker, reported a 14% rise in quarterly operating profit. On Thursday, the South Korean firm said it would raise prices of its stainless steel products due to rising raw material prices. But world’s No. 2 steel producer Nippon Steel earlier on Thursday halved its full-year profit forecast to well below market consensus, squeezed by weak demand and pricing for construction-use steel in Japan. Source: Home - Livemint.com | 28 Jan 2010 | 2:57 am Rupee off day’s high; monetary policy eyedMumbai: The Indian rupee came off the day’s high on Thursday, tracking losses in the domestic sharemarket following a rise in the food price index but the weaker dollar overseas supported the local unit. At 2:38pm, the partially convertible rupee was at Rs46.2475/26 per dollar, stronger than its previous close of Rs46.3650/3750, but weaker from Rs46.1850 reached earlier in the day. Indian shares turned negative on Thursday afternoon, with Larsen & Toubro and ITC leading the losses, after the food price index rose 17.40% in the 12 months to 16 January. The index of the dollar against six major currencies was down 0.12%. Dealers are awaiting the Indian central bank’s quarterly monetary policy review on Friday, with markets expecting an increase in banks’ reserve requirements. A Reuters poll showed 24 out of 25 economists expected the Reserve Bank of India (RBI) to raise the CRR, the proportion of deposits that banks must keep with the central bank as cash, by up to 50 basis points in its policy meeting. Statements from the central bank in its macro-economic review due at 1130 GMT on Thursday would be watched as it will provide final clues on the policy outlook. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.3475, with the total traded volume on the two exchanges at about $3.4 billion. Source: Home - Livemint.com | 28 Jan 2010 | 2:44 am Gold demand abates after early week pick-upMumbai: India’s wholesale gold demand abated on Thursday afternoon as traders eyed a further fall in prices, while a stronger rupee aided sentiment, after the offtake picked up since the start of the week, dealers said. “It’s (gold demand) all quiet today, I had orders till yesterday, We must have done about 100 kgs at $1,085 (an ounce) late last evening,” said a dealer with a state-run bullion dealing bank in Mumbai. International spot gold was trading at $1,092.30/1,093.00 an ounce as against the previous close of $1,087.25/1,088.25. “I have a lot of orders below $1,085,” said another dealer with a private bank. Gold for February delivery on the Multi Commodity Exchange (MCX) was 0.23 percent lower at Rs16,403 per 10 grams, weighed by a stronger rupee. The Indian rupee strengthened, backing further away from a more-than-three-week low touched in the previous session, boosted by gains in global stock markets following the Fed’s decision to keep rates near zero. Dealers said lower prices and volatility have spurred purchases at the start of 2010, after witnessing a lacklustre performance last year. India imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said on Wednesday. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 2:41 am Atul Ltd Q3 net down, sees profit at Rs 83cr for FY10 - Moneycontrol.com
Source: Business - Google News | 28 Jan 2010 | 2:40 am Narayan Ramachandran to resign as Morgan Stanley country headRamachandran held senior global positions within Morgan Stanley Investment Management, notably heading the firm's global emerging markets and asset allocation businesses.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:38 am Fitch: Retail sector outlook now stable(The following statement was released by the ratings agency)Source: Reuters: Money News | 28 Jan 2010 | 2:37 am Aptech acquires MAAC for Rs76 croreThe acquisition is through the takeover of 100% equity shares of Maya Entertainment Ltd, the parent company of MAAC.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:35 am Sensex in topsy-turvy trade, up 135 points - Times of India
Source: Business - Google News | 28 Jan 2010 | 2:30 am Dena Bank expects NIM to rise 15-20 bps in MarchMUMBAI (Reuters) - State-run Dena Bank expects net interest margin to rise 15-20 basis points in March quarter from 2.53 percent in the December quarter due to repricing of cost of deposits, Chairman and Managing Director D.L. Rawal said on Thursday.Source: Reuters: Money News | 28 Jan 2010 | 2:24 am Sensex in topsy-turvy trade, up 135 pointsA benchmark index of the Indian equities markets was ruling volatile Thursday about an hour before closing bell, ruling 135 points higher than its previous close.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 2:21 am Tata Steel standalone Q3 net soars, beats forecastMUMBAI (Reuters) - Tata Steel Ltd, the world's No.8 steelmaker by output, reported quarterly profit from its Indian operations more than doubled, beating forecasts, on strong demand from the auto and construction sectors.Source: Reuters: Money News | 28 Jan 2010 | 2:17 am Central bank's third quarterly monetary review Friday - Sify
Source: Business - Google News | 28 Jan 2010 | 2:06 am BPCL Q3 net profit down at Rs 379 cr - Moneycontrol.com
Source: Business - Google News | 28 Jan 2010 | 2:05 am Hyundai Motor's Q4 profit nearly quadruplesSouth Korea's largest auto maker and a growing force in the global market, earned 945.5 billion won (USD820 million) in the three months ended December 31, it said in a statement today.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:01 am Union Bank of India to raise $300500m by FebStaterun Union Bank of India plans to raise USD 300500 million by February through medium term notes of 5year tenure, a top official said on Wednesday.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 2:00 am Google now coverts words in 14 languages into native scriptGoogle Transliteration IME is available as a free download, and offers features, including offline support, word completion, personalised choices, easy-to-use keyboard and customisation options.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 1:53 am No tax breaks to firms that outsource jobs, says ObamaWashington: In a move that could shake the foundations of India’s IT services industry, US President Barack Obama on Wednesday said he will end tax breaks to American firms that ship out jobs abroad. “To encourage ... businesses to stay within our borders, it is time to finally slash the tax breaks for companies that ship our jobs overseas, and give those tax breaks to companies that create jobs right here in the United States of America,” he said in his first State of Union address. “Now, the House has passed a jobs bill that includes some of these steps. As the first order of business this year, I urge the Senate to do the same... People are out of work. They’re hurting. They need our help. And I want a jobs bill on my desk without delay,” he said. “But the truth is, these steps won’t make up for the seven million jobs that we’ve lost over the last two years,” Obama said. India, which has earned the name ‘world’s back-office’, could suffer the most by this move. According to software services industry body Nasscom, IT sector’s revenue accounted for 5.8% of India’s gross domestic product (GDP) in 2008-09, up from 1.2% in 1997-98.  US President Barack Obama delivers his State of the Union address, as vice president Joe Biden and house speaker Nancy Pelosi listen, in Washington on Wednesday. Molly Riley / Reuters Obama, who delivered his first State of the Union address against a backdrop of an American public worried about the fallout of the meltdown, said the “worst of the storm has passed. But the devastation remains.” He also said one in 10 Americans still could not find work, many businesses have shuttered and small towns and rural communities have been hit especially hard. The recession has also compounded the burdens of American families, he added. “So, I know the anxieties that are out there right now. They’re not new,” he said, adding “Some are frustrated; some are angry”. “Because of the steps we took, there are about two million Americans working right now who would otherwise be unemployed,” Obama said. He said job creation would be the country’s number-one focus in 2010, and called for a new jobs bill. The bill will provide for taking $30 billion of the money Wall Street banks repay and use it to help community banks give small businesses the credit they need. “Now, the true engine of job creation in this country will always be America’s businesses. But government can create the conditions necessary for businesses to expand and hire more workers,” he said. He also announced that US would invest massively in skills and education of its people. “Still, in this economy, a high school diploma no longer guarantees a good job...To make college more affordable, this bill will finally end the unwarranted taxpayer-subsidies that go to banks for student loans,” he said. “Because in the United States of America, no one should go broke because they chose to go to college. The US President also announced that he intends to double US exports in the next five years, sending an indirect message to China and other export-reliant economies that they are not the only ones aggressively seeking new markets. “We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores,” Obama said. Won’t accept ’second place’ for US Citing India and China as countries that are going ahead with economic revamp, Obama said the US cannot accept “second place” and should get serious about fixing its problems since the worst of the financial crisis is over. “Washington has been telling us to wait for decades, even as the problems have grown worse. Meanwhile, China’s not waiting to revamp its economy. Germany’s not waiting. India’s not waiting,” Obama said. “These nations aren’t standing still. These nations aren’t playing for second place. They’re putting more emphasis on maths and science. They’re rebuilding their infrastructure. They are making serious investments in clean energy because they want those jobs,” he said in his 69-minute-long prime-time speech. Obama, who took over as the first black-American President on 20 January last year, said he will not accept a second place of America, the only superpower. “Well, I do not accept second-place for the United States of America. As hard as it may be, as uncomfortable and contentious as the debates may be, it’s time to get serious about fixing the problems that are hampering our growth,” he said. On Afghanistan, he said US is increasing troops and training for Afghan security forces so they can begin to take the lead in July of 2011 and American troops can return home. On Iraq, Obama said the US will support the Iraqi government will continue to partner with the Iraqi people to promote regional peace and prosperity. “This war is ending, and all of our troops are coming home.” “We are working through the G-20 to sustain a lasting global recovery. We are working with Muslim communities around the world to promote science, education and innovation,” he said pointing out his country’s pledge to reach out to the Islamic world. India, China emphasize more on maths & science Noting that nations like India, China and Germany emphasize more on maths and science and fast catching up with America, Obama said: “These nations aren’t standing still. These nations aren’t playing for second place. They’re putting more emphasis on maths and science. They’re rebuilding their infrastructure. They are making serious investments in clean energy because they want those jobs”. “Well I do not accept second-place for the United States of America. As hard as it may be, as uncomfortable and contentious as the debates may be, it’s time to get serious about fixing the problems that are hampering our growth,” said the US President. Source: Home - Livemint.com | 28 Jan 2010 | 1:37 am Food inflation accelerates, RBI action imminentNew Delhi: India’s annual food price inflation accelerated for the first time in four weeks, with the Reserve Bank of India (RBI) looking set to tighten its policy on Friday to prevent it spilling over to the broader economy. Economists widely expect a 50-basis point rise in banks’ cash reserve ratio (CRR), the proportion of deposits lenders must keep with the central bank in cash. “Even as food supply is expected to normalise in the coming months, higher energy costs and strong consumer demand will ensure (headline) inflation inches towards 9% by March 2010, with risks clearly to the upside,” said Rahul Bajoria, an economist with Barclays Capital in Singapore. The food price index rose 17.40% in the 12 months to 16 January, higher than an annual rise of 16.81% in the previous week, data released on Thursday showed. The index rose 0.4% from a week earlier. The fuel index rose to an annual 5.70%, lower than an annual rise of 6.34% in the previous week. Higher food prices following a bad harvest of summer-sown crops are expected to keep headline inflation elevated, with some analysts forecasting the wholesale price index to touch double digits by March from 7.3% in November. Rate Worries The debt markets have already priced in a 25-50 basis point increase in the CRR, with some dealers also hedging in anticipation of a 25-basis point rise in policy rates on Friday. However, 24 out of the 25 economists polled by Reuters do not foresee any change in policy rates on Friday and expect a rise in key rates only in March. “Current inflationary pressures are not driven by excessive aggregate demand,” Rajiv Malik, an economist with Macquarie Securities, said in a note on Wednesday. “So hiking of policy rates now will be relatively less helpful in checking food inflation, but could cause a negative impact on growth.” Dealers expect bond prices to rally and yields to touch 7.45% if the RBI hikes only the CRR and keeps interest rates unchanged. India’s economy is expected to expand at 7% in the current fiscal year to end-March, faster than 6.7% last year, helped by a recovering global economy and rapid expansion in domestic industrial output, a Reuters poll showed. The economy grew 7.9% in the quarter through September, its fastest in 18 months, while industrial production grew in November at its fastest pace in more than two years at 11.7%. That growth, however, has largely been fuelled by government stimulus spending and cheap credit following policy rate cuts totalling 425 basis points between October 2008 and April 2009. Non-oil imports, which foretell production and capacity creation in the economy as India primarily imports capital goods and basic raw materials, fell an annual 5.9% in November. The growth in bank loans, a barometer for private investment in the economy, continues to be sluggish. Bank loans grew an annual 13.7% as of 1 January compared with the RBI’s forecast of 18% for the current fiscal year ending March. Source: Home - Livemint.com | 28 Jan 2010 | 1:28 am Apple iPad lays claim to computer tablet marketApple is shaking up the gadget world with an iPad that redefines the tablet computer and threatens with obsolescence electronic readers, digital photo frames and other mono-purpose gizmos.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 1:25 am Former Satyam chief Raju declared pauper in US courtRamalinga Raju, former chairman of Satyam Computers, who last year confessed to have inflated his company's assets by over $ one billion, has been declared a pauper by a court in New Year exempting him from paying court costs.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 1:24 am Food inflation accelerates, RBI action imminentNEW DELHI (Reuters) - India's annual food price inflation accelerated for the first time in four weeks, with the Reserve Bank of India (RBI) looking set to tighten its policy on Friday to prevent it spilling over to the broader economy.Source: Reuters: Money News | 28 Jan 2010 | 1:24 am Mercedes Benz launches luxury sedan 'S350' - Business Standard
Source: Business - Google News | 28 Jan 2010 | 1:22 am Delhi Metro officials unsure when to start Gurgaon line - Economic Times
Source: Business - Google News | 28 Jan 2010 | 1:13 am Rental operators remove Toyota cars from fleetThe affected vehicles represent about 4% of the fleet of Alamo Rent A Car, Enterprise Rent-A-Car and National Car Rental brands, owned and operated by Enterprise Holdings.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 1:13 am Obama pushes jobs, vows to fight on after tough yearWASHINGTON (Reuters) - U.S. President Barack Obama pushed job creation to the top of his agenda and vowed not to abandon his struggling healthcare overhaul after a political setback that raised doubts about his leadership.Source: Reuters: Money News | 28 Jan 2010 | 1:13 am Sales shutdown rocks Toyota recall broadensToyota Motor Corp shut down sales of its best-selling vehicles on Wednesday under pressure from the Obama administration to address a product safety crisis that threatens its image in its largest market.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 1:12 am Toyota suffers as recall grows; rivals benefitTOKYO/DETROIT (Reuters) - Toyota Motor Corp could face an unprecedented recall of 8 million cars over problems with sticking acclerators in the biggest ever blow to the reputation of the world's largest auto maker.Source: Reuters: Money News | 28 Jan 2010 | 1:01 am Food inflation shoots up RBI action imminentIndia's annual food price inflation accelerated to 17.40 per cent for the first time in four weeks, with the RBI looking set to tighten its policy on Friday to prevent it spilling over to the broader economy. Special on price riseSource: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 1:00 am Hyundai posts record Q4, may gain on Toyota woesSEOUL (Reuters) - Hyundai Motor posted a record quarterly operating profit as its small cars proved popular with recession-weary buyers and, with Toyota facing an image crisis, the South Korean firm should keep its edge over rivals this year.Source: Reuters: Money News | 28 Jan 2010 | 12:56 am Former Satyam chief B Ramalinga Raju declared 'pauper' in US courtAccording to court documents, the accused stated they are 'unable to engage an attorney in the US to defend (themselves) in the class action litigation.'Source: Daily News & Analysis: Money News | 28 Jan 2010 | 12:53 am Food inflation rises to 17.40%The wholesale price-based food inflation was 16.81% in the previous week.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 12:38 am Sales shutdown rocks Toyota, recall broadensDetroit: Toyota Motor Corp shut down sales of its best-selling vehicles on Wednesday under pressure from the Obama administration to address a product safety crisis that threatens its image in its largest market. Shares of Toyota fell another 2% in Tokyo trading as concern deepened about the knock-on effects from a recall to fix millions of vehicles. Toyota said late on Wednesday that it had determined that it would have to fix another 1.1 million vehicles to address the risk that floor mats could trap accelerator pedals and cause bursts of sudden acceleration. Separately, Toyota said it believed it had found a mechanical fix for a problem that has forced it to recall 2.3 million vehicles for sticky accelerators. Taken together, Toyota now has recalled nearly 6 million vehicles for problems with the accelerators used across its lineup, a sweeping safety action that has tarnished its reputation for quality and emboldened its rivals. “Toyota’s got the resources to bounce back from this, but this is the biggest crisis that they have ever faced, and Ford and Hyundai and others are coming on strong,” said Jim Ziegler, an auto dealer consultant in Atlanta. US transportation secretary Ray LaHood said in an interview with Chicago’s WGN Radio that regulators had asked Toyota to take the unprecedented step of halting production of affected vehicles as it worked to address the problem. In a move that underscored the depth of the crisis, major car rental agencies including Enterprise Holdings, Avis Budget Group Inc and Hertz said they were pulling Toyota vehicles from their rental fleets. Looking to gain from Toyota’s slip, General Motors Co said it was offering Toyota customers payouts of up to $1,000 or zero-percent financing for up to five years on most of the GM line-up. US representative Bart Stupak, a Michigan Democrat and chairman of the House Energy and Commerce subcommittee on investigations, said the panel would continue to monitor the Toyota situation and “press for answers.” “I am very concerned about the safety issues,” he said in a statement. “Members of Congress and consumers need to know exactly what the problem is, how to fix the problem and what must be done to protect drivers of Toyota vehicles.” Toyota executives, meanwhile, huddled with US dealers in a series of hastily arranged conference calls on Wednesday. One of the key issues: how to deal with thousands of Toyota cars now stranded on dealer lots that are banned from being sold because of the faulty accelerator pedals. Dealers in contact with Toyota said the automaker had provided assurance that it would help them address the financial fallout from the recall and increase sales incentives to win back lost business in the weeks ahead. Toyota spokeswoman Celeste Migliore said the automaker was in the process of reviewing its incentives and “all of our advertising” in response to events. CTS Corp, which supplies the accelerator pedals at the centre of the crisis, said late on Wednesday it had a fix for the safety issue and had begun to ship redesigned parts to Toyota factories. Shares of CTS fell as much as 20% on Wednesday, before closing down just 2.4%. ‘Devastating Blow’ The most recent troubles for Toyota began on Tuesday when it said it would suspend sales in the United States of eight models, including versions of its top-selling Camry sedan made in North America. Toyota is also halting production at six plants in the United States and Canada for the first week of February. Analysts said the financial damage to Toyota from the recalls would depend on how long it has to shut production on key models and how badly consumer confidence is shaken as reflected in pricing of both new and used cars. “It’s a devastating blow to Toyota and Toyota’s reputation,” said Dennis Virag, president of the Automotive Consulting Group. “Toyota is the new General Motors in terms of experiencing quality glitches, over-expansion and the proliferation of new product models. The production halt comes at a time when major automakers are ramping up output as the US industry recovers from its worst downturn since the recession of the early 1980s. For Toyota, the setback occurs as the carmaker rolls out a marketing campaign intended to reverse a recent slide that sent its 2009 sales down 20%. These are also critical days for Toyota management. Akio Toyoda, grandson of Toyota’s founder, took over as president of the automaker in June with a vow to address missteps in the U.S. market and elsewhere. In 2008, Toyota overtook GM as the world’s leading automaker. But rivals such as Ford, Hyundai and Honda Motor Co have been seen as catching up to Toyota on quality and reliability. Risks Abound “You can’t just stop selling these models and not expect some impact to your market share -- at least in the short term,” Deutsche Securities analyst Kurt Sanger told Reuters Insider. “I’m sure every Hyundai dealer in the US is letting customers know about their improvement in quality, ‘and by the way, guess what happened across the street?´” Sanger said. Toyota said its decision to shut down production next week would idle about 14,000 workers. Toyota spokesman Mike Goss said those workers would remain employed and would work on plant improvements while assembly lines are shut down. Analysts said there was a risk that Toyota would be forced to extend that production shutdown. Meanwhile, Toyota’s problems threatened to pull down industry-wide auto sales for January and hit resale values for used cars, analyst said. US auto sales in January, due out next Tuesday, are expected to show the market has softened from the 10.8 million-unit sales pace of the fourth quarter of 2009. Source: Home - Livemint.com | 28 Jan 2010 | 12:31 am Sales shutdown rocks Toyota, recall broadensDetroit: Toyota Motor Corp shut down sales of its best-selling vehicles on Wednesday under pressure from the Obama administration to address a product safety crisis that threatens its image in its largest market. Shares of Toyota fell another 2% in Tokyo trading as concern deepened about the knock-on effects from a recall to fix millions of vehicles. Toyota said late on Wednesday that it had determined that it would have to fix another 1.1 million vehicles to address the risk that floor mats could trap accelerator pedals and cause bursts of sudden acceleration. Separately, Toyota said it believed it had found a mechanical fix for a problem that has forced it to recall 2.3 million vehicles for sticky accelerators. Taken together, Toyota now has recalled nearly 6 million vehicles for problems with the accelerators used across its lineup, a sweeping safety action that has tarnished its reputation for quality and emboldened its rivals. “Toyota’s got the resources to bounce back from this, but this is the biggest crisis that they have ever faced, and Ford and Hyundai and others are coming on strong,” said Jim Ziegler, an auto dealer consultant in Atlanta. US transportation secretary Ray LaHood said in an interview with Chicago’s WGN Radio that regulators had asked Toyota to take the unprecedented step of halting production of affected vehicles as it worked to address the problem. In a move that underscored the depth of the crisis, major car rental agencies including Enterprise Holdings, Avis Budget Group Inc and Hertz said they were pulling Toyota vehicles from their rental fleets. Looking to gain from Toyota’s slip, General Motors Co said it was offering Toyota customers payouts of up to $1,000 or zero-percent financing for up to five years on most of the GM line-up. US representative Bart Stupak, a Michigan Democrat and chairman of the House Energy and Commerce subcommittee on investigations, said the panel would continue to monitor the Toyota situation and “press for answers.” “I am very concerned about the safety issues,” he said in a statement. “Members of Congress and consumers need to know exactly what the problem is, how to fix the problem and what must be done to protect drivers of Toyota vehicles.” Toyota executives, meanwhile, huddled with US dealers in a series of hastily arranged conference calls on Wednesday. One of the key issues: how to deal with thousands of Toyota cars now stranded on dealer lots that are banned from being sold because of the faulty accelerator pedals. Dealers in contact with Toyota said the automaker had provided assurance that it would help them address the financial fallout from the recall and increase sales incentives to win back lost business in the weeks ahead. Toyota spokeswoman Celeste Migliore said the automaker was in the process of reviewing its incentives and “all of our advertising” in response to events. CTS Corp, which supplies the accelerator pedals at the centre of the crisis, said late on Wednesday it had a fix for the safety issue and had begun to ship redesigned parts to Toyota factories. Shares of CTS fell as much as 20% on Wednesday, before closing down just 2.4%. ‘Devastating Blow’ The most recent troubles for Toyota began on Tuesday when it said it would suspend sales in the United States of eight models, including versions of its top-selling Camry sedan made in North America. Toyota is also halting production at six plants in the United States and Canada for the first week of February. Analysts said the financial damage to Toyota from the recalls would depend on how long it has to shut production on key models and how badly consumer confidence is shaken as reflected in pricing of both new and used cars. “It’s a devastating blow to Toyota and Toyota’s reputation,” said Dennis Virag, president of the Automotive Consulting Group. “Toyota is the new General Motors in terms of experiencing quality glitches, over-expansion and the proliferation of new product models. The production halt comes at a time when major automakers are ramping up output as the US industry recovers from its worst downturn since the recession of the early 1980s. For Toyota, the setback occurs as the carmaker rolls out a marketing campaign intended to reverse a recent slide that sent its 2009 sales down 20%. These are also critical days for Toyota management. Akio Toyoda, grandson of Toyota’s founder, took over as president of the automaker in June with a vow to address missteps in the U.S. market and elsewhere. In 2008, Toyota overtook GM as the world’s leading automaker. But rivals such as Ford, Hyundai and Honda Motor Co have been seen as catching up to Toyota on quality and reliability. Risks Abound “You can’t just stop selling these models and not expect some impact to your market share -- at least in the short term,” Deutsche Securities analyst Kurt Sanger told Reuters Insider. “I’m sure every Hyundai dealer in the US is letting customers know about their improvement in quality, ‘and by the way, guess what happened across the street?´” Sanger said. Toyota said its decision to shut down production next week would idle about 14,000 workers. Toyota spokesman Mike Goss said those workers would remain employed and would work on plant improvements while assembly lines are shut down. Analysts said there was a risk that Toyota would be forced to extend that production shutdown. Meanwhile, Toyota’s problems threatened to pull down industry-wide auto sales for January and hit resale values for used cars, analyst said. US auto sales in January, due out next Tuesday, are expected to show the market has softened from the 10.8 million-unit sales pace of the fourth quarter of 2009. Source: World Business - Livemint.com | 28 Jan 2010 | 12:31 am Annual food inflation up at 17.4%India's annual food inflation based on wholesale prices rose to 17.4% for the week ended January 16 from 16.81% the week before, according to official statistics released on Thursday.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 12:27 am BSE Sensex turns negative; L&T, ITC fallMUMBAI (Reuters) – The BSE Sensex turned negative on Thursday afternoon, with Larsen & Toubro and ITC leading the losses, after the food price index rose 17.40 percent in the 12 months to Jan. 16.Source: Reuters: Money News | 28 Jan 2010 | 12:17 am Aptech to buy animation, education biz of MAAC - Moneycontrol.com
Source: Business - Google News | 28 Jan 2010 | 12:14 am Toyota recalls another 1.1 million cars in US - BBC News
Source: Business - Google News | 28 Jan 2010 | 12:11 am Kerala women preferring trendy diamond jewelleryThe diamond jewellery business has seen about 30% growth in sales in 2009-10 fiscal, top jewellers in Kerala say.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 12:02 am Banks, FIs look to borrow $1.5-2 b abroadBanks and financial institutions are on a resource mobilisation spree overseas to take advantage of the current low interestSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am Imports of sensitive items up 34.5%Imports of sensitive items rose 34.5 per cent in April-October 2009 at Rs 35,487 crore from Rs 26,378 crore during the corresponding previous period, according to official data released onSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am Syndicate Bank (Rs 83.1): SellWe recommend a sell in the stock Syndicate Bank from a short-term perspective. It is evident from the charts that the stock was on an intermediate-term uptrend from March 2009 low to October 2009, from Rs 37 to Rs 105. However, experiencingSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am It is a win-win deal for both brokeragesPutting to rest months of speculation, institutional broking firm Edelweiss Capital has finally announced its decision to buy unlisted retail broking outfit Anagram Capital in an all-cash deal valued at about Rs 164Source: Business Line - Home Page | 28 Jan 2010 | 12:00 am Day Trading GuideThe near-term stance is bearish for DLF. We recommend a sell. Both ICICI Bank and SBI witnessed 5 per cent decline in the last trading session, experiencing selling interest. We recommend a sell in these two counters with tight stop-loss. FreshSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am STP scheme: Raja seeks 15-year tax holiday sans sunset clauseThe Ministry of Communications and Information Technology has pitched for a modified Software Technology Park (STP) Scheme in the forthcoming Union Budget (2010-11) in order to facilitate the uninterrupted growth IT and IT Enabled ServicesSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am SAIL Q3 net profit doubles on higher sales, lower input costsSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am Market melts on global cues, monetary policy fearsSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am GDP growth in 2009-10 to be at 6.9%, says FICCI SurveyThe latest Economic Survey Outlook carried out by FICCI has put the GDP growth forecast for 2009-10 at 6.9 per cent. The survey was carried out amongst economists from the banking and financialSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am Demand from infrastructure, construction helps SAILSAIL, India's largest steel producer, posted stellar third quarter results with net profits growing by close to 99 per cent to Rs 1,675 crore, compared with the same quarter lastSource: Business Line - Home Page | 28 Jan 2010 | 12:00 am Markets turn negative; L&T, ITC fallMumbai: Indian shares turned negative on Thursday afternoon, with Larsen & Toubro and ITC leading the losses, after the food price index rose 17.40% in the 12 months to 16 January. Trade was also choppy ahead of expiry of derivatives contracts on the National Stock Exchange, dealers said. At 12:39pm, the 30-share BSE index was down 0.34% at 16,234.53 points. The 50-share NSE index was down 0.1% at 4,848.45. Markets rose more than 1% in the morning, trimming some of their 7.7% fall over the past six sessions, as Asian and US markets rose on the US Federal Reserve’s cautious confidence about a recovery. Software companies led the gains, after the recent sharp fall. The sector index rose 1.7% after declining 6.7% in four previous sessions. IT bellwether Infosys Technologies and Tata Consultancy were up 1.5%, each while Wipro climbed 2.5%. At 10:01am, the 30-share BSE Index was up 1.02% at 16,455.19, with 27 components gaining. The 50-share NSE index .NSEI was up 1.1% at 4,903.90. “It is just a bounce-back after the fall we saw in last few sessions,” said Rajen Shah, chief investment officer at Angel Broking. “It seems like FIIs (foreign institutional investors) had been booking profits after the rally in 2009,” he said, adding the recent decline was healthy. The benchmark rallied 81% in 2009, powered by net foreign fund inflows of more than $17 billion. Energy giant Reliance Industries which has the highest weighting on the Sensex, was up 1.1% at 1,037.50 rupees. The stock is down 4.7% so far in 2010. Largest-listed property firm DLF climbed 2.2% after its December quarter consolidated net profit rose form the September quarter, suggesting a recovery in the sector was gaining momentum. Tata Steel, the world’s eighth-largest steel maker by output, was up 2.25% at Rs571. It is forecast to report later on Thursday a standalone net profit of Rs1,000 crore on net sales of Rs5,830 crore a Reuters poll showed. In the broader market, gainers led losers in a ratio of 1.8:1 in a volume of 84 million shares. Source: Home - Livemint.com | 27 Jan 2010 | 11:55 pm Features of Apple s new iPadApple Inc unveiled its "iPad" tablet computer in the company's biggest product launch since the iPhone three years ago.Source: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 11:53 pm Hyundai Motor Q4 net profit quadruples, outlook brightSeoul: Hyundai Motor posted a record high quarterly operating profit, adding to hopes that South Korea’s top automaker will hold its edge over its rivals this year despite a firmer won and fewer state incentives for car buyers. Hyundai, the world’s No.4 car company with its affiliate Kia Motors Corp, is expected to enjoy healthy sales growth this year as the global economic recovery and new car models will bolster demand, analysts said. Hyundai was a big winner in 2009 with the shift to smaller cars and government incentives worldwide for car buyers. Popular, low-cost models and catchy marketing helped it grab market share in the United States and in China, now the world’s biggest auto market, where its Elantra is the best-selling foreign car. Hyundai’s booming earnings came as shares in Japanese rival Toyota Motor Corp tanked on growing concerns about its image and profits after it halted sales of its top models in the United States to fix an accelerator fault. The expected rise in demand for Hyundai’s cars on improving brand image and quality is likely to offset a stronger won currency and an end to tax breaks in Korea and smaller tax cuts in China for car buyers. Hyundai said it aims to increase sales this year by 11% to 3.46 million cars, trucks and buses and was not complacent about its rivals, like General Motors Co. “Competition in the global auto market will steepen as U.S. makers start again with only competitive brands and Japanese makers line up for a counterattack,” the company said. Later this year, it plans to launch the new Accent and a revamped Elantra, its best selling compact car, which competes against Toyota’s Corolla and Honda Motor Corp’s Civic. Hyundai shares more than trebled in 2009, far outperforming a 50% gain in the wider market, reflecting its rapid growth against global rivals like Toyota, which booked losses. For 2010, Hyundai is expected to post a 1.4% rise in net profit to 3 trillion won ($2.60 billion), according to a poll by Thomson Reuters I/B/E/S. The key risk this year is that a stronger Korean won could dent sales offshore. The currency has strengthened more than 35% against the US dollar from its low in March. The maker of the Sonata sedan posted an October-December operating profit of 837.2 billion won, up 44% from a year earlier and 29% above the consensus forecast on Thomson Reuters I/B/E/S. Net profit nearly quadrupled in the 2009 fourth quarter to 945.5 billion won, also well above analysts’ forecasts. Sales grew 9.3% to 9.65 trillion won. Shares in Hyundai were trading 4.1% higher at 113,500 won after the results, beating the broader Korean market. After zooming up last year, its shares have fallen 10% so far this year on worries about the rising won. Source: Home - Livemint.com | 27 Jan 2010 | 10:59 pm Nippon Steel halves profit outlook, shares fallTokyo: Nippon Steel Corp halved its full-year profit forecast to below the market consensus on sluggish demand and prices for construction-use steel and higher raw materials costs, pushing its stock down nearly 4%. The company, the world’s second-largest steel maker after industry leader ArcelorMittal, said it now expects a ¥10 billion ($111 million) recurring profit, or profit before tax and one-offs, for the year to the end of March. The new forecast is below the market consensus for an annual profit of ¥33.48 billion in a poll of 20 analysts for Thomson Reuters I/B/E/S, and a fraction of the ¥336.14 billion profit booked in 2008-09. “The weaker results are due to the slow demand for construction in Japan. The downward revision was a surprise,” said Akira Kishimoto, a steel analyst a JPMorgan Securities. “But I still belive the company’s export business will grow in the next fiscal year and going forward.” Nippon Steel, which vies with China’s Baoshan Steel and South Korea’s POSCO in Asia, booked October-December recurring profit of ¥43.3 billion ($479.4 million) versus ¥148.2 billion a year ago. “We have been able to secure shipping volumes but we were forced to reduce construction steel prices because of weak construction activity in Japan,” Shinichi Taniguchi, executive vice president at Nippon Steel, told a news conference. “I don’t expect a sharp recovery in domestic construction activity for next fiscal year either. It would probably be about the same as this year. Even if we see a recovery, it would be a minor pickup.” Domestic rival JFE Holdings Inc, the world’s sixth-ranked steelmaker, is due to announce its third-quarter results on Friday, while India’s Tata Steel Ltd reports later on Thursday. POSCO on 14 January posted a 77% increase in quarterly net profit, benefiting from lower contract prices for iron ore and coking coal - key ingredients in making steel. Shares in Nippon Steel were down 3.8% at ¥334 in afternoon trade after the results. The benchmark Nikkei average was up 1.8%. Source: World Business - Livemint.com | 27 Jan 2010 | 10:41 pm Nippon Steel halves profit outlook, shares fallTokyo: Nippon Steel Corp halved its full-year profit forecast to below the market consensus on sluggish demand and prices for construction-use steel and higher raw materials costs, pushing its stock down nearly 4%. The company, the world’s second-largest steel maker after industry leader ArcelorMittal, said it now expects a ¥10 billion ($111 million) recurring profit, or profit before tax and one-offs, for the year to the end of March. The new forecast is below the market consensus for an annual profit of ¥33.48 billion in a poll of 20 analysts for Thomson Reuters I/B/E/S, and a fraction of the ¥336.14 billion profit booked in 2008-09. “The weaker results are due to the slow demand for construction in Japan. The downward revision was a surprise,” said Akira Kishimoto, a steel analyst a JPMorgan Securities. “But I still belive the company’s export business will grow in the next fiscal year and going forward.” Nippon Steel, which vies with China’s Baoshan Steel and South Korea’s POSCO in Asia, booked October-December recurring profit of ¥43.3 billion ($479.4 million) versus ¥148.2 billion a year ago. “We have been able to secure shipping volumes but we were forced to reduce construction steel prices because of weak construction activity in Japan,” Shinichi Taniguchi, executive vice president at Nippon Steel, told a news conference. “I don’t expect a sharp recovery in domestic construction activity for next fiscal year either. It would probably be about the same as this year. Even if we see a recovery, it would be a minor pickup.” Domestic rival JFE Holdings Inc, the world’s sixth-ranked steelmaker, is due to announce its third-quarter results on Friday, while India’s Tata Steel Ltd reports later on Thursday. POSCO on 14 January posted a 77% increase in quarterly net profit, benefiting from lower contract prices for iron ore and coking coal - key ingredients in making steel. Shares in Nippon Steel were down 3.8% at ¥334 in afternoon trade after the results. The benchmark Nikkei average was up 1.8%. Source: Home - Livemint.com | 27 Jan 2010 | 10:41 pm Apple pitches $499 iPad, takes on AmazonSan Francisco: Apple Inc CEO Steve Jobs took the wraps off a sleek tablet that it called the iPad, pitching the new gadget at a surprisingly low price to bridge the gap between smartphones and laptops. A buoyant Jobs took the stage at a packed theater on Wednesday to show off the 9.7-inch touchscreen tablet, which looks like a large iPhone, and to introduce a new iBook electronic reader service that will compete with Amazon.com Inc’s Kindle. The iPad is Apple’s biggest bet on a new product since the iPhone three years ago, and seeks to tap an unproven market for tablets. Analysts, while impressed by the iPad’s seamless functionality, also pointed out that consumers already have smartphones and laptops for their mobile computing needs. Jobs described the iPad as a “third category” of devices, a do-everything media gadget that can surf the Web, and play movies and video games. He also left little doubt that Apple was going after the e-book market that Amazon had popularized. “If there’s going to be a third category of device, it’s going to have to be better at these kinds of tasks than a laptop or a smartphone; otherwise it has no reason for being,” said Jobs, who still appeared thin following his liver transplant last year. “Now Amazon’s done a great job of pioneering this functionality with their Kindle. And we’re going to stand on their shoulders and go a bit further,” he said. Famous for his skills as a pitchman, Jobs, dressed in his trademark blue jeans and black turtleneck, created plenty of drama as he waited until late in the event to discuss the cost of the iPad, which analysts had expected to be up to $1,000. Apple elected to price it for as little as $499 for 16 gigabytes of storage, starting in late March. An extra $130 is needed to equip the iPad with third-generation (3G) wireless capability. Higher-capacity models will sell for $599 and $699. “Pricing is very aggressive, so it’s pretty positive from a mass adoption perspective,” said Brian Marshall, an analyst with Broadpoint Amtech. Research group IDC said it expects Apple to ship 4 million iPad units in 2010, with about 2 million in the United States. Shares of Apple rose to as high as $210.58 after the pricing news, up 5.5% from their session low. The stock closed up 0.94% at $207.88 on Nasdaq, within reach of its all-time high of $215.59 logged on 5 January. The half-inch thick, 1.5-pound iPad features Apple’s own processor and 10 hours of battery life. It runs a version of the iPhone’s operating system and can use virtually all of the 140,000 apps currently available for the smartphone. “What once occupied half your living room can now be dropped in a bag,” said Outsell Inc analyst Ned May. “It’s pulling together a variety of needs (in) a universal entertainment device.” Apple announced a data plan deal with AT&T Inc, which appeared to have beaten out Verizon Wireless. AT&T will offer two monthly data plans for the iPad, a limited one for $14.99 and an unlimited one for $29.99. iPhone-like anticipation Other technology companies, including Microsoft Corp and Toshiba Corp, have launched tablets that failed to take off in recent years. But analysts said they were impressed with the technology that Apple showed off. The iPad has a near life-size touch keyboard, and comes with all the expected features, including a calendar, an address book and maps. “One thing Apple has proven is that they can consumerize new concepts, new technologies,” said Tim Bajarin, president of Creative Strategies, a consulting firm. “That will probably be their claim to fame again with this.” However, some also mentioned potential cannibalization of other Apple products. “If it’s doing all these things and does it better than a notebook then they’d have to tell me why I’d want a MacBook,” said NPD analyst Steve Baker. Some industry watchers said the iPad, with its multimedia bells and whistles, will be a tough competitor for Amazon’s Kindle. The iBooks store will let users buy from publishers including Pearson Plc’s Penguin, News Corp’s HarperCollins, and Hachette Book Group. But other analysts noted that the Kindle costs less -- $259 for the cheapest version -- and was more tailored for long-form reading, at least for now. “This is not an e-reader -- this is a device that can be used to read books,” Cowen & Co analyst James Friedland said of the iPad. “This doesn’t change the game -- at the same time, Apple is a formidable competitor and our view is that over time, Apple and Amazon will emerge as the two largest players” in e-books. Shares of Amazon took a brief hit but recovered to end 2.7% higher at $122.75 on Nasdaq. In an online poll on reuters.com before Wednesday’s media event, 37% of more than 1,000 respondents said they would pay $500-$699 for the tablet. Nearly 30 percent weren’t interested, while 20% said they would pay $700-$899. Source: Tech News - Livemint.com | 27 Jan 2010 | 10:38 pm Apple pitches $499 iPad, takes on AmazonSan Francisco: Apple Inc CEO Steve Jobs took the wraps off a sleek tablet that it called the iPad, pitching the new gadget at a surprisingly low price to bridge the gap between smartphones and laptops. A buoyant Jobs took the stage at a packed theater on Wednesday to show off the 9.7-inch touchscreen tablet, which looks like a large iPhone, and to introduce a new iBook electronic reader service that will compete with Amazon.com Inc’s Kindle. The iPad is Apple’s biggest bet on a new product since the iPhone three years ago, and seeks to tap an unproven market for tablets. Analysts, while impressed by the iPad’s seamless functionality, also pointed out that consumers already have smartphones and laptops for their mobile computing needs. Jobs described the iPad as a “third category” of devices, a do-everything media gadget that can surf the Web, and play movies and video games. He also left little doubt that Apple was going after the e-book market that Amazon had popularized. “If there’s going to be a third category of device, it’s going to have to be better at these kinds of tasks than a laptop or a smartphone; otherwise it has no reason for being,” said Jobs, who still appeared thin following his liver transplant last year. “Now Amazon’s done a great job of pioneering this functionality with their Kindle. And we’re going to stand on their shoulders and go a bit further,” he said. Famous for his skills as a pitchman, Jobs, dressed in his trademark blue jeans and black turtleneck, created plenty of drama as he waited until late in the event to discuss the cost of the iPad, which analysts had expected to be up to $1,000. Apple elected to price it for as little as $499 for 16 gigabytes of storage, starting in late March. An extra $130 is needed to equip the iPad with third-generation (3G) wireless capability. Higher-capacity models will sell for $599 and $699. “Pricing is very aggressive, so it’s pretty positive from a mass adoption perspective,” said Brian Marshall, an analyst with Broadpoint Amtech. Research group IDC said it expects Apple to ship 4 million iPad units in 2010, with about 2 million in the United States. Shares of Apple rose to as high as $210.58 after the pricing news, up 5.5% from their session low. The stock closed up 0.94% at $207.88 on Nasdaq, within reach of its all-time high of $215.59 logged on 5 January. The half-inch thick, 1.5-pound iPad features Apple’s own processor and 10 hours of battery life. It runs a version of the iPhone’s operating system and can use virtually all of the 140,000 apps currently available for the smartphone. “What once occupied half your living room can now be dropped in a bag,” said Outsell Inc analyst Ned May. “It’s pulling together a variety of needs (in) a universal entertainment device.” Apple announced a data plan deal with AT&T Inc, which appeared to have beaten out Verizon Wireless. AT&T will offer two monthly data plans for the iPad, a limited one for $14.99 and an unlimited one for $29.99. iPhone-like anticipation Other technology companies, including Microsoft Corp and Toshiba Corp, have launched tablets that failed to take off in recent years. But analysts said they were impressed with the technology that Apple showed off. The iPad has a near life-size touch keyboard, and comes with all the expected features, including a calendar, an address book and maps. “One thing Apple has proven is that they can consumerize new concepts, new technologies,” said Tim Bajarin, president of Creative Strategies, a consulting firm. “That will probably be their claim to fame again with this.” However, some also mentioned potential cannibalization of other Apple products. “If it’s doing all these things and does it better than a notebook then they’d have to tell me why I’d want a MacBook,” said NPD analyst Steve Baker. Some industry watchers said the iPad, with its multimedia bells and whistles, will be a tough competitor for Amazon’s Kindle. The iBooks store will let users buy from publishers including Pearson Plc’s Penguin, News Corp’s HarperCollins, and Hachette Book Group. But other analysts noted that the Kindle costs less -- $259 for the cheapest version -- and was more tailored for long-form reading, at least for now. “This is not an e-reader -- this is a device that can be used to read books,” Cowen & Co analyst James Friedland said of the iPad. “This doesn’t change the game -- at the same time, Apple is a formidable competitor and our view is that over time, Apple and Amazon will emerge as the two largest players” in e-books. Shares of Amazon took a brief hit but recovered to end 2.7% higher at $122.75 on Nasdaq. In an online poll on reuters.com before Wednesday’s media event, 37% of more than 1,000 respondents said they would pay $500-$699 for the tablet. Nearly 30 percent weren’t interested, while 20% said they would pay $700-$899. Source: World Business - Livemint.com | 27 Jan 2010 | 10:38 pm Sensex gains 203 pts in opening trade on global cuesThe Bombay Stock Exchange benchmark Sensex on Thursday surged by 203 points, or 1.05 per cent, in opening trade on fresh buying by funds, driven by rally on the global bourses.Source: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 10:34 pm Mint 50: mutual funds to invest inMutual funds in the US manage around $11 trillion (around Rs509 trillion) in assets, serving at least 50 million households; 66% of households have more than half their savings in mutual funds. India is at the threshold of a big boom in retail participation in managed funds through the mutual fund route. Regulatory action has made funds one of the most transparent and low-cost options for retail investors. Performance history of more than a decade has proved that managed funds can deliver cost-plus returns, that beat the benchmark by at least 3-5 percentage points.  With clarity as its core mandate, Mint has worked the last three years to remove the fog of obfuscation around business, economy and finance. Mint 50 is yet another step in this direction. The personal finance team, lead by mutual funds editor Kayezad E. Adajania, has put together a list of 50 funds that are investment worthy. As a first filter, we used star ratings from global mutual fund tracker Morningstar and shortlisted 292, three-, four- and five-star rated funds. A qualitative process that includes portfolio, fund manager and expense ratio analysis, got us down to 50 across equity, balanced and debt funds. We’ll audit the portfolio every quarter for rogue funds or managers and churn it once a year, if needed. Do send us your comments at mint50@livemint.com Source: Home - Livemint.com | 27 Jan 2010 | 10:04 pm Apple pitches $499 iPad, takes on AmazonSAN FRANCISCO (Reuters) - Apple Inc CEO Steve Jobs took the wraps off a sleek tablet that it called the iPad, pitching the new gadget at a surprisingly low price to bridge the gap between smartphones and laptops.Source: Reuters: Money News | 27 Jan 2010 | 9:58 pm Fed, techs lift Wall St on futures cheer ObamaNew York: US stocks rose on Wednesday after the US Federal Reserve pledged to keep interest rates near zero and stock futures signaled more gains ahead after President Barack Obama struck a conciliatory tone on banks in his State of the Union speech. Stock index futures shot up in late after-hours trading as Obama pushed job creation to the top of his agenda to bring down high unemployment, proposing the use of $30 billion of bank bailout repayments to boost lending to small businesses. Analysts said investors were relieved that Obama’s speech did not slam banks and Wall Street anew after days of heightened unease about restrictions on bank risk-taking that Obama proposed last week, which helped fuel a global market sell-off. Financial shares were poised to be among the standouts heading into Thursday’s session. “In my opinion he articulated the crowning achievement of his administration so far, which is the stabilization of our banking system. I think he articulated that very well and why that’s important and that this country’s banking system is no longer on the brink,” said Haag Sherman, co-founder and chief investment officer of Salient Partners, an investment firm in Houston. “As it relates to pushing stock futures higher tomorrow, I think that maybe there’s some degree of relief that there weren’t more radical proposals that came out of this State of the Union address. It was largely conciliatory and somewhat balanced.” S&P 500 futures rose about 0.7% or 8 points and were above fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration of the contract. Dow Jones industrial average futures gained 0.5% or 55 points, and Nasdaq 100 futures added 0.6% or 10.50 points. Obama also promised not to abandon his struggling overhal of the healthcare sytstem, making it likely that healthcare stocks would also be in the spotlight on Thursday. The backdrop for the speech was the Democrats’ loss of the 60-vote hold in the Senate after a Republican upset victory in Massachusetts last week. Ahead of Obama’s speech, US stocks had garnered a late surge as technology shares advanced after Apple Inc, a technology bellwether, unveiled the iPad, its new portable computer. Market analysts said the Fed’s rate decision was not surprising, but the somewhat more optimistic tone of its accompanying statement shifted sentiment after a wave of unexpected news from Washington the past two weeks caused the stock market to buckle. The Fed offered a more guardedly upbeat view of the U.S. economy than previously, and appeared to put more faith in the sustainability of a nascent economic rebound. “The market rallied because there wasn’t anything overtly negative that could be taken from the Fed statement,” said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. The Dow Jones industrial average gained 41.87 points, or 0.41%, to end at 10,236.16. The Standard & Poor’s 500 Index rose 5.33 points, or 0.49%, to 1,097.50. The Nasdaq Composite Index climbed 17.68 points, or 0.80%, to 2,221.41. After the closing bell, Qualcomm Inc tumbled 8.9% to $43.00 after the biggest maker of cellphone chips cut its revenue estimate for the first quarter and current fiscal year, citing a slow economic recovery. During the regular session, Apple’s shares rose 0.9% to $207.88, reversing course from a drop of more than 3% earlier in the day after the company unveiled its iPad tablet computer. The Nasdaq also got a boost from Gilead Sciences Inc, which jumped 7.1% to $48.04 after the biotech company posted fourth-quarter earnings that topped Wall Street’s estimates and forecast a sales increase of about 10% for 2010. The NYSE Arca Biotech index gained 1.3%. Boeing was the Dow’s top advancer, up 7.3% at $61.93, after the world’s second-largest aircraft manufacturer reported stronger-than-expected quarterly results and forecast a profitable 2010. But Dow components Caterpillar and United Technologies Inc slipped after giving cautious forecasts. Caterpillar’s shares slid 4.3% to $53.44, while United Tech’s stock lost 1.3% to $67.61. Volume was light on the New York Stock Exchange, with about 1.3 billion shares changing hands, below last year’s estimated daily average of 2.18 billion. On the Nasdaq, about 2.49 billion shares traded, above last year’s daily average of 1.63 billion. Advancing stocks just barely outnumbered declining ones on the New York Stock Exchange, with 1,517 shares rising and 1,515 falling. On the Nasdaq, the winner’s advantage was more pronounced, with about 16 stocks rising for every 11 that fell. Source: Home - Livemint.com | 27 Jan 2010 | 9:44 pm Rupee gains 12 paise against dollar in early tradeThe rupee today appreciated by 14 paise to 46.24 a dollar in early trade on capital inflows into stocks by foreign funds.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 9:26 pm Satyam's Raju declared pauper by US courtA US court has declared former Satyam Computers chairman Ramalinga Raju, who last year was jailed after admitting to falsifying his company's accounts by over $1 billion, a pauper, thereby exempting him from paying court costs.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 9:24 pm Sensex gains 203 points in opening trade on global cuesThe Sensex today surged by 203 points, or 1.05%, in opening trade on fresh buying by funds, driven by rally on the global bourses.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 9:04 pm Fed renews vow to keep rates low, with a dissentWASHINGTON (Reuters) - The Federal Reserve on Wednesday offered a guardedly upbeat view of the U.S. economy and renewed its pledge to keep interest rates near zero despite the objection of one policy maker.Source: Reuters: Money News | 27 Jan 2010 | 4:24 pm Vandana to import Sout Africa coal, eyes minesVandana Global Ltd expects to soon start importing 1 million tonnes of coal a year from South Africa to secure fuel for two power stations it owns, the company\'s chief executive said on Wednesday.Source: Moneycontrol Top Headlines | 27 Jan 2010 | 4:09 pm Air India-Indian merger irrevocable: Ministry - Economic Times
Source: Business - Google News | 27 Jan 2010 | 2:42 pm See telecom industry consolidating in 2 yrs: Sunil MittalSunil Mittal, Chairman, Bharti Enterprises expects consolidation in the telecom sector in the next two years.Source: Moneycontrol Top Headlines | 27 Jan 2010 | 2:00 pm Sensex tanks 491 on global cuesAround the world, Japan's Nikkei ended 0.7% down, Hong Kong's Hang Seng was off 0.4%, UK's FTSE 1.3% and Germany's Dax 1%.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 1:55 pm More time for filing I-T return onlineThe Central Board of Direct Taxes (CBDT) extended the time limit for submitting ITR-V (Income Tax Return Verification Acknowledgement) form to the department up to March 31.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 1:54 pm DLF net dips 30% to Rs 468crThe consolidated net profit of realty major DLF declined by 30% for the quarter ended December 2009 to Rs 468 crore as against Rs 671 crore in the corresponding period of the last year.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 1:52 pm SAIL profit jumps 2-foldThe net profit of government-owned SAIL nearly doubled to Rs 1,675.5 crore for the October-December quarter due to improved sales, cheaper input cost and low base as against Rs 843.3 crore in the same period last year.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 1:51 pm Govt may allow Islamic banking, eyes $1tn fundsAggressively pitching for $1 trillion worth of Sharia-compliant funds from the Gulf countries for investments in its infrastructure development, the UPA government has drafted a report on Islamic banking.Source: India Business News | Business News - Times of India | 27 Jan 2010 | 1:49 pm The mysterious Apple iPadApple had sent out a invite to media for an event on Jan 27, 2010 promising a surprise. "Come and see our latest creation," said the invite. This slight hint was enough to send the Internet in tizzy. For this maybe the long awaited, even longer speculated launch of the Apple tablet, reports Shakeel Sobhan.Source: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 1:17 pm Apple CEO unveils new tablet computer the iPadApple Inc Chief Executive Steve Jobs took the wraps off the "iPad" tablet on Wednesday, looking to define a new category of wireless device that will play video, games and all sorts of other media. The mysterious Apple iPadSource: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 1:05 pm No room for tall claimsAd awareness: The ad watchdog, Advertising Standards Council of India, is actively pursuing complaints and raising awareness about misleading ads, forcing companies to change tack, reports Rachit Vats.See graphics | The ABC of ASCI Source: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 12:48 pm Govt approves $888 mn shipping projects: FinMinGovt approves $888 mln shipping projects fin minSource: Moneycontrol Top Headlines | 27 Jan 2010 | 12:45 pm Patel Engg sees revenue growing 2025% in FY10Patel Engg sees revenue grow 2025% in FY10Source: Moneycontrol Top Headlines | 27 Jan 2010 | 12:45 pm KEC Int\'l hopes big BSNL order may boost FY10 orderbookKEC Intl hopes big BSNL order boosting FY10 orderbookSource: Moneycontrol Top Headlines | 27 Jan 2010 | 12:45 pm The Mint Report for 27 January 2010The civil aviation ministry’s plan to get Air India off the ground has received criticism from an unexpected source. Mint has learnt that home minister P Chidambaram questioned the revamping plan during a group of ministers meeting in November. At that time, the group of ministers had decided to infuse Rs2,000 crore of capital into Air India over several months, even though Chidambaram wanted the airline to come up with a proper plan to get its balance sheet in order. Air India is demanding Rs5,000 crore in equity to cope with losses and to pay off loans. In banking, Punjab National Bank or PNB has seen only a marginal increase in third quarter numbers. Its net profit reached Rs1,011 crore, an increase of just 0.5%. And treasury income fell dramatically to Rs157 crore compared to Rs341 crore in the same period last year. PNB is not alone in registering low third quarter growth. State Bank of India also announced only marginal growth in the period. And ICICI Bank saw its profits fall because of higher bond yields and bad loans. Also in results on Wednesday, London-based mining company Vedanta has posted a major rise in its third quarter earnings. Its EBITDA went up to $662.5 million in the three months ending in December, compared to just over $10 million for the same quarter a year ago. Vedanta is India’s biggest copper producer and its numbers have been helped by a jump in prices of the metal. Infrastructure Development Finance Corporation or IDFC also announced its third quarter numbers. Net profit rose 46% to Rs270 crore for the quarter. In other new, India’s economy might not be growing as much as the government thinks it is. A new survey of economists by industry body Ficci has estimated GDP growth in the current fiscal will only be 6.9%. The government has projected a growth of 7.75%. The main reason for the expected low performance is India’s agricultural sector, which the survey predicts will contract by 1%. Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 12:25 pm Apple unveils iPad tablet deviceSan Francisco: Apple Inc CEO Steve Jobs took the wraps off the “iPad” tablet on Wednesday, making a big bet on a new breed of gadgets that aim to bridge the gap between smartphones and laptops. Jobs, who returned to the helm last year after a much-scrutinized liver transplant, took the stage before a jam-packed theater and showed off a sleek, half-inch thick tablet computer with a 9.7-inch touchscreen that can run movies, books, games and a plethora of media applications. “What once occupied half your living room can now be dropped in a bag,” said NPD analyst Ned May. “It’s pulling together a variety of needs (in) a universal entertainment device.” Apple hopes to sell consumers on the value of tablet -- which will have a price tag starting at $499 — computing after other technology companies, including Microsoft Corp and Toshiba Corp, have failed to do so in recent years. Called the “iPad,” the tablet is Apple’s biggest product launch since the iPhone three years ago, and arguably rivals the smartphone as the most anticipated in Apple’s history. Culminating months of feverish speculation on the Internet and among investors, Jobs took the stage at a jam-packed theater in San Francisco and, with his famed showman’s flair, began displaying the device’s features. Jobs said there was a need for a new type of device that would sit between a smartphone and laptop computer, and that can perform tasks like browse the Web, play games and display electronic books. “If there’s going to be a third category of device, it going to have to be better at these kinds of tasks,” he said. The iPad has a near life-sized touch keyboard and supports Web browsing. It comes with a built-in calendar and address book, Jobs said, calling it “awesome.” Despite the buzz surrounding the launch and Apple’s storied golden touch on consumer electronics, the tablet is not necessarily an easy sell, analysts say. Consumer appetite for such a device category has yet to be proven, though plenty of devices such as Amazon.com’s Kindle e-reader are vying for that market. Shares of Apple have generally risen ahead of Wednesday’s event. The stock slid rose 0.5% to $206.92 at mid-afternoon, within reach of its all-time high of $215.59 logged on 5 January. As iPod sales wane, Apple is looking for another growth engine and hopes to find one in the tablet. But the move is not without risk. Consumers have never warmed to tablet computers, despite many previous attempts by other companies. In an online poll on reuters.com, 37% of more than 1,000 respondents said they would pay $500-$699 for the tablet. Nearly 30% weren’t interested, while 20% said they would pay $700-$899. Analysts’ sales predictions for the tablet vary widely, with many believing Apple can sell 2 million to 5 million units in the first year. Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 12:21 pm Apple unveils iPad tablet deviceSan Francisco: Apple Inc CEO Steve Jobs took the wraps off the “iPad” tablet on Wednesday, making a big bet on a new breed of gadgets that aim to bridge the gap between smartphones and laptops. Jobs, who returned to the helm last year after a much-scrutinized liver transplant, took the stage before a jam-packed theater and showed off a sleek, half-inch thick tablet computer with a 9.7-inch touchscreen that can run movies, books, games and a plethora of media applications. “What once occupied half your living room can now be dropped in a bag,” said NPD analyst Ned May. “It’s pulling together a variety of needs (in) a universal entertainment device.” Apple hopes to sell consumers on the value of tablet -- which will have a price tag starting at $499 — computing after other technology companies, including Microsoft Corp and Toshiba Corp, have failed to do so in recent years. Called the “iPad,” the tablet is Apple’s biggest product launch since the iPhone three years ago, and arguably rivals the smartphone as the most anticipated in Apple’s history. Culminating months of feverish speculation on the Internet and among investors, Jobs took the stage at a jam-packed theater in San Francisco and, with his famed showman’s flair, began displaying the device’s features. Jobs said there was a need for a new type of device that would sit between a smartphone and laptop computer, and that can perform tasks like browse the Web, play games and display electronic books. “If there’s going to be a third category of device, it going to have to be better at these kinds of tasks,” he said. The iPad has a near life-sized touch keyboard and supports Web browsing. It comes with a built-in calendar and address book, Jobs said, calling it “awesome.” Despite the buzz surrounding the launch and Apple’s storied golden touch on consumer electronics, the tablet is not necessarily an easy sell, analysts say. Consumer appetite for such a device category has yet to be proven, though plenty of devices such as Amazon.com’s Kindle e-reader are vying for that market. Shares of Apple have generally risen ahead of Wednesday’s event. The stock slid rose 0.5% to $206.92 at mid-afternoon, within reach of its all-time high of $215.59 logged on 5 January. As iPod sales wane, Apple is looking for another growth engine and hopes to find one in the tablet. But the move is not without risk. Consumers have never warmed to tablet computers, despite many previous attempts by other companies. In an online poll on reuters.com, 37% of more than 1,000 respondents said they would pay $500-$699 for the tablet. Nearly 30% weren’t interested, while 20% said they would pay $700-$899. Analysts’ sales predictions for the tablet vary widely, with many believing Apple can sell 2 million to 5 million units in the first year. Source: Tech News - Livemint.com | 27 Jan 2010 | 12:21 pm 'Chatwal was not on original Padma list'The tale of how Sant Singh Chatwal, US hotelier, Democrat sympathiser and widely considered an arriviste by Delhis social circle, was awarded the Padma Bhushan, got curiouser and curiouser.Source: Business Standard | Front Page Headlines | 27 Jan 2010 | 12:09 pm SEZ Act needs overhaul: CBECThe Central Board of Excise and Customs (CBEC) has recommended an overhaul of the Special Economic Zone (SEZ) Act 2005 saying it has detected gross violations of duty and tax concessions causing it to suffer a revenue loss of Rs 1,75,000 crore to date.Source: Business Standard | Front Page Headlines | 27 Jan 2010 | 12:04 pm Sensex spooked by China, CRR hike fears, down 490 ptsGlobal cues and fears of tightening monetary measures by the central bank pulled down the benchmark BSE Sensex 490.6 points (2.92 per cent), marking the sixth day the market has been in a bear grip.Source: Business Standard | Front Page Headlines | 27 Jan 2010 | 12:02 pm Quick Edit | Not yet an asset bubbleHas a new emerging markets bubble been inflated? This answer affects both investors, who saw stock prices tumble on Wednesday, and policymakers, who are due to announce monetary and fiscal policies over the next month. The International Monetary Fund (IMF) has shot down the idea of a new asset bubble, in an update to its semi-annual Global Financial Stability Report. It has said that “the rise in asset prices cannot yet be considered excessive and widespread”. Indian valuations, too, seem stretched, compared with the average price-earnings multiples the local stock market has supported over the past 15 years, but overvaluation is not as evident as it was in late 1999 and mid-2007. IMF has also said the initial surge in portfolio inflows into emerging markets in mid-2009 was the result of push factors as risk appetite returned. But the subsequent inflows came from pull factors such as company earnings and economic growth. That means money will pour in this year only if the economic recovery stays on track. Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:54 am 50 curated mutual fund schemes to choose from Timing the market—entering at lower levels and exiting at higher levels—is always a dream. But investors seldom get it right and usually either miss the bus or board from the wrong end—trip, fall and get hurt. What we need is a system that would encourage us to invest systematically and regularly. We need to invest across assets and in a way that meets our returns expectations, at the same time not getting exposed to too much risk. But with at least a thousand schemes in the Rs7.94 trillion Indian mutual funds (MF) industry, how do we choose the right fund? Money Matters bring you a choice of 50 schemes across equity and debt to help you zero in on a scheme that suits your needs and help you meet your investment goals. Here’s what we like and why:  Equity Large-cap equity funds A part from the fund management’s pedigree and style, we looked at two statistics: performance consistency and cash holdings. Performance consistency is crucial to choosing a good fund. There is a view that India’s funds industry is still in nascent stages, however, a number of funds have completed 10 years. Thirty funds—and still counting—out of 146 are more than 10 years old. We checked out the 10-year and five-year returns of each of these 30 funds to see the their long-term track record. Then, we checked out the performance in the falling market of 2008 as well as the rising market of 2009. A fund that does well in falling markets as well as rising markets is, typically, a good fund. It also shows the fund manager’s quick adaptability to changing markets. Also Read Mint 50: mutual funds to invest in  Illustration: Shyamal Banerjee / Mint Also See Mutual Fund Schemes To Invest In According to the fund’s mandate, the common holding between its own holdings and that of its benchmark index (BSE 200) should be at least 60%. For instance, if Infosys Technologies Ltd constitutes 5% of BSE 200 and 7% of the fund, the common holding is 5%. It’s a mandate that doesn’t hug the benchmark index, but also restricts the risks a typical equity fund can take on. A high cash holding is not bad, though, if your fund manager is able to get his cash calls right; exit it before markets begin to fall and deploy it back in time before stock prices start to rise again, the way UTI Opportunities Fund (UOF) did in early 2009. From around 30% of cash in January and February 2009 when markets were down, UOF swiftly deployed its cash by the time equity markets started to rise in March and April. Fund manager Harsha Upadhyaya had also smartly reduced the fund’s allocation to mid-cap scrips from around 30% in August 2007, down to 17% in December 2007, when the markets were high. In more ways that one, UOF lives up to its name and is an opportunistic fund. It focuses on five to six sectors at a time and then invests in scrips within these sectors. Its tight portfolio of around 35 stocks makes it ideal for the fund manager to shift between sectors as and when he sees opportunities. Its timely investments in Hindalco Industries Ltd and Tata Steel Ltd, as well as its early investments in information technology sector helped the fund in 2009. “We consciously invest in liquid scrips because it makes it easier for us to enter and exit quickly”, says Upadhyaya who also takes active exposures in the derivatives segment to hedge the portfolio. Though DSP BlackRock Top 100 (DT100) did well when equity markets fell in 2008 (46% loss against a category loss of 53%), it was a little slow in deploying its cash in March and April when equity markets started to rise. Besides, this is a strictly large-cap fund that limits its investments to the 100 largest companies in the market and does not invest in mid-caps; a segment that also did well in 2009. For investors who don’t like too much risk and do not want to trust fund managers, there are exchange-traded funds (ETFs) such as Benchmark Nifty BeES that give a smart option. No fund manager risk and buying all the scrips in exactly the same proportion, as the index chosen gives investors index returns at a tiny cost. As ETFs are listed only on the stock market, you can’t go for a systematic investment plan (SIP) yet. Enter index funds, and we suggest Franklin India Index Fund–Nifty if you wish to do an SIP. Mid- and small- cap equity funds It’s a good strategy to invest in mid- and small-cap funds once you’ve got your large-cap investments in place, as it pays to have a returns kicker to your portfolio. We’ve kept Birla Midcap (BMF) and DSP BlackRock Small Midcap (DSM) fund in our portfolio as both are consistent performers. Despite aiming to invest in mid-cap scrips whose market capitalization is in the range of the highest and lowest market capitalization scrips in CNX Midcap index and also in the range of Rs3,500 crore and Rs4,000 crore, BMF doesn’t take unnecessary risks. It holds a diversified portfolio and 50-60% of its portfolio is steady. Mint 50 has two DSP BlackRock’ funds in the mid-cap space, but we suggest you choose one out of them. While DSM aims to invest in scrips below 100th largest company by market capitalization, DSP BlackRock Equity Fund invests around half of its portfolio in large-cap scrips too. With returns of 53% and 145% in the last six months and one year, respectively, DSM was one of the best performing equity funds, thanks to its successful holdings in Cadila Healthcare Ltd, EID Parry (India) Ltd and Gujarat State Petronet Ltd. What’s common between BMF and DSM is that they lower your risks by holding a diversified portfolio, typically around 50-60 scrips. “Between all our funds, we try not to limit our stake in a company to 5%, hence we restrict buying big quantities”, adds fund manager Apoorva Shah, DSP BlackRock Investment Managers Pvt. Ltd. Equity ELSS A must for any portfolio, ELSS schemes give the section 80C tax break of Rs1 lakh deduction. Apart from long-term performers, we have included Religare Tax Plan (RTP). This is a dark horse, since Morningstar has not rated it yet as the fund did not complete three years till the end of December. But we like the fact that the fund protected the downslide in falling markets and did well when markets swung back upwards again. In 2008, RTP lost just 50% against 55% that the category lost on an average. If fund manager Vetri Subramaniam leverages his past track record and plays his cards well, this could emerge as a steady option. But take a minimal exposure to this fund if you must invest in it. HDFC TaxSaver is making a silent comeback and did well in 2009, thanks to a chunk of its investments in selective mid-cap scrips. Hybrid These are funds that invest in a mix of equity and debt instruments. While some funds invest as much as 65% in equities and the rest in debt (Morningstar classifies these funds as moderate equity allocation), others invest between zero to 40% in equities and the rest in debt. Among the ones that invest a substantial portion in equities, we like fund houses that come with good pedigree and good management in equities. While the debt portion of these funds carries very low average maturity since they primarily provide cushion, the equity portion is used to provide a returns kicker. Among the funds that invest zero to 25% in equities—also referred to as monthly income plans (MIP)—we like HDFC MIP and Reliance MIP. While the debt component of these plans aims to give steady returns, the equity portion gives the returns kicker. Birla Sun Life MIP Savings5 is also a fund you can look at. The fund lost heavily in 2009 when the government securities market had a sharp fall in February. But we think the fund is back on track. Against a 1.57% return it clocked in calendar 2009, it clocked a one-year return of 10.13% between March and December. With an exit load of 1% before a year, the fund now aims to avoid large and corporate investors. Debt Stick to short-term bond funds as interest rates are expected to inch upwards this year. Even among this lot, it’s best to look at funds whose average maturity is on the lower side. Kotak Short Term Debt Fund prefers to invest 60-65% in instruments that earn the fund a steady interest and the rest in scrips above six months’ maturity where fund manager Laxmi Iyer expects to earn a returns kicker. Iyer takes focused bets on non-banking finance companies where she feels the risks are lower but with a potential to earn a slightly higher yield. Of late, the fund has become conservative and has aggressively brought down its average maturity. A lower expense (0.62% against the category average of 0.83%) also bodes well for you as expenses eat into your fund’s returns. Graphics by Yogesh Kumar / Mint Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:52 am Chidambaram wades into Air India’s revamp programmeNew Delhi/Mumbai: Union home minister P. Chidambaram has criticized the civil aviation ministry’s plan to revamp Air India, saying that a proposed equity infusion into the loss-making and debt-laden flag carrier would not go far enough to ensure its survival. Chidambaram, a former finance minister, questioned the revamp plan at a November meeting of the group of ministers (GoM) that deals with Air India issues, according to the minutes of the meeting reviewed by Mint.  Critical note: Union home minister P. Chidambaram. Madhu Kapparath / Mint The GoM, headed by finance minister Pranab Mukherjee, decided in November to infuse capital into the airline in tranches of Rs400 crore, based on monthly reviews of cost-cutting measures by the airline, run by the National Aviation Co. of India Ltd (Nacil). A final clearance from the finance ministry, which had been expected by January-end, is yet to come. Going by a monthly infusion of Rs400 crore, the state-owned firm was expecting Rs2,000 crore from the government this fiscal, which has been capped at Rs800 crore now. According to the minutes of the November meeting, Chidambaram wants the airline to put together a proper plan to reform its balance sheet. The home minister said the proposed equity infusion may not be sufficient for the survival of the airline, which he thought might even need to declare a moratorium on debt repayments, according to the minutes. Chidambaram said that in three years the company will only be Ebitda-positive, and that the statistics provided did not present a “correct picture” and “true state of Nacil as a company”. Ebitda, or earnings before interest, taxes, depreciation and amortization, is an approximate measure of a company’s operating cash flow. “Home minister commented on the slide in the airline finances and desired an extrapolation of the cumulative losses as they would reach in 2012-13,” according to the minutes. Air India had demanded an equity infusion of Rs5,000 crore. The beleaguered airline has struggled with mounting losses and needs money to pay off loans taken to purchase aircraft. It inducted 29 new planes in 2009, part of a 2005 aircraft order to Boeing Co. and Airbus SAS worth $11 billion (around Rs50,000 crore). In 2010, the carrier plans to add at least half-a-dozen aircraft. It posted a loss of Rs5,548 crore in 2008-09, has outstanding debt of as much as Rs16,000 crore and runs a monthly cash deficit of Rs400 crore. The airline has an equity base of Rs145 crore and has been seeking a cash infusion since last year. At the November GoM meeting, the aviation ministry was led by civil aviation minister Praful Patel, aviation secretary Madhavan M. Nambiar and Air India chairman and managing director Arvind Jadhav. Air India did not offer any comments for this story. A senior civil aviation ministry official, who did not want to be identified, said Chidambaram had not criticized the revamp plan of Air India, but only sought a clear-cut plan for savings of up to Rs1,800 crore to justify the capital infusion. “GoM had deliberated various issues and concerns regarding the financial position of not just Air India, but all airlines in the country. GoM members, including Chidambaram, wanted a strong plan of action,” the official said. “Following that, we have made a well-articulated plan for the restructuring (of) Air India. We will be presenting this in the next GoM meeting.” At the November meeting, finance minister Mukherjee also called for a time-bound action plan for revamping Air India that would be monitored at subsequent meetings of the GoM. Meanwhile, the civil aviation ministry said in a statement on Wednesday that there was no plan to demerge the two domestic carriers, Air India and Indian Airlines, which were united under Nacil in 2007. The Times of India reported on Wednesday that the finance ministry, nervous over the viability of bailout plans for the flag carrier, is considering such a plan. “The Ministry of Civil Aviation has no move afoot for the AI-IA demerger,” the civil aviation ministry said in a statement. “The merger was a carefully thought out process and a collective decision of all agencies of the government of India.” The 2007 union of Air India and Indian Airlines was aimed at achieving benefits through reduced costs and leveraging network strength, which were “expected to translate into better prospects for all the employees”, the statement said. An Air India official, who asked not to be named, however, said the merger lacked a well-thought-out execution framework. For instance, the merged airline lacks an integrated passenger reservation system, delaying Air India’s entrance into Star Alliance, the global airline network, for which such a system is a prerequisite. “Why did you give $10 million to Star Alliance (for membership) if you knew that you didn't have a reservation system?” asked the official. “It (merger) happened in the minds of the cabinet and the ministry only.” Separately, Air India said its operating loss fell 25% in the December quarter to Rs864.33 crore from a year ago and the net loss declined 9.7% to Rs1,473.85 crore as passenger traffic improved. The number of passengers who flew the airline rose 24.8% to 3.17 million in the quarter from a year ago. sangeeta.s@livemint.com Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:49 am Is this the start of the double-dip? Also Read HUL’s strategy shows initial success  Graphic: Yogesh Kumar / Mint Analysts have been warning for months about overvaluations, the clogged initial public offering pipeline, rising interest rates and the withdrawal of fiscal sops in the Budget. Those are all valid concerns, but equally valid has been the recovery so far. Will the tightening of liquidity affect markets? During the last cycle when markets fell on fears of the first round of rate tightening in the US, conditions in India were worsened due to a Left-supported government coming to power and there was a crash in all markets, including India, in May 2004. It wasn’t until October 2004 that the benchmark Sensex index, was able to get back to the highs it reached in May. This time, relatively speaking, India is much better placed than most of the world and it’s unlikely to take that long. Write to us at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:41 am Stocks slump, spooked by rate rise fearMumbai: Indian stocks fell for the sixth day in a row tracking global markets as investors were spooked about monetary tightening slowing growth in the world’s two fastest growing $1 trillion-plus (Rs46 trillion) economies—China and India. While analysts and fund managers say that Indian equities are still a great long-term investment powered by growth in the underlying economy, they expect the volatility to continue for some more time—at least until the Union Budget at the end of February.  Graphics: Ahmed Raza Khan / Mint “The markets were priced for good news at the beginning of the year, but the good news is not forthcoming,” said V. Anantha Nageswaran, the Singapore-based chief investment officer of wealth management firm Julius Baer Group and a Mint columnist. “The Chinese (monetary stimulus withdrawal), US employment and home sales numbers, the loss of popularity of (US President Barack) Obama—all played up to the uncertainty.” US unemployment is at a 26-year high, and existing home sales in that country fell 17% in December, leading investors to fear that the recovery in the world’s largest economy might take a long time. In China, the benchmark Shanghai Composite Index fell to a new three-month low, down 1% for the day, as investors expect a rate hike. China had raised bank reserve requirements by 50 basis points a fortnight ago. European markets opened weak on Wednesday, with the UK’s FTSE trading 1.4% down at 9.30pm. A basis point is 0.01 percentage point. “Indian markets have suffered more because they’ve run significantly more than the rest of the world last year,” said N. Sethuram, chief investment officer at Shinsei Asset Management (India) Pvt. Ltd.  Apart from the weakness in the global markets, Indian investors are nervous about inflation, the government’s exit policy and the supply of paper (new share sales), according to Jyotivardhan Jaipuria, head of research at Bank of America-Merrill Lynch. “As we move closer to the Budget, the news flow—about excise rate hikes and interest rate hikes—will be negative,” he said. Jaipuria expects a recovery by mid-year and has an 18,000-points Sensex target for the year ending December. The immediate trigger for the selling is the monetary policy review coming up on Friday. An inflation rate that rose 7.31% in December will add to pressure on the Reserve Bank of India, which hasn’t hiked rates since 2006, analysts said. While any such move will have a negative impact on interest-rate sensitive stocks in sectors such as real estate, banking and automobiles, analysts say most of these concerns have been priced in. Real estate led the decline, with the Bombay Stock Exchange Realty index falling 17.66%. Auto companies followed closely losing 10.3%, while banks dropped 8.51%. “We are still at the bottom of the interest rate cycle,” said G. Chokkalingam, head of equities at wealth manager Barclays Wealth India. “What can cause more concern is the reversal of the (fiscal) stimulus.” In fiscal year that ended in March, the government cut excise tax and hiked spending to boost economic recovery. The low excise rates in particular have helped makers of cars and motorcycles to post robust gains in profits and show increased profitability. Any stimulus rollback plans could be announced in the Budget. “Investors would also like to see some fiscal correctives in India,” said Nageswaran. “Until the Budget is out of the way, there will be some more volatility.” Indeed, the National Stock Exchange’s volatility index has been steadily climbing in the past week since it touched a low of 20.98 a fortnight ago. On Wednesday, it jumped 12% to close at 28.92. Ashwin Ramarathinam contributed to this story. ravi.k@livemint.com Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:26 am Half a million chasing 3,400 homesBangalore: For Vishakha Patil, 52, who has lived in a one-room rented shanty in suburban Mumbai for most of her life, the sale of homes by Maharashtra’s housing authority is a rare chance to buy a property in the city, where at least 60% of the people live in makeshift residences. The Maharashtra Housing and Area Development Authority (Mhada) is selling 3,394 homes in central and suburban Mumbai in areas such as Sion and Malad. At least 70% of these are reserved for the poor. Patil is among some 500,000 people who have bought application forms for Mhada’s sale, which comes a year after its previous such effort, although a chunk of that was for people with higher incomes. The sale of the forms ended Wednesday. Many of the homes in this year’s sale are one- or two-bedroom apartments or just a room with a kitchen, priced up to Rs10 lakh. A small number of homes, set aside for higher-income buyers, are priced at Rs40-45 lakh each. The buyers are selected through a lottery. Patil is eyeing a 180 sq. ft unit that will cost her around Rs3.6 lakh, or Rs2,000 per sq. ft, in Malad, a western suburb in Mumbai. That’s a bargain in an area where property prices hover at Rs7,000-8,000 a sq. ft. Of course, there are no private properties there in the size Patil is looking for. A Mhada spokeswoman said the agency has received around 260,000 applications so far. With three more days to go, she expects the total number of people participating in the lottery to exceed 350,000. “By the kind of reaction it has got, there would be about 80-100 families applying for each home on sale,” said Gautam Chatterjee, vice-president of Mhada. The sale is unlike the many new low-cost but distant housing projects developers are pushing to boost demand for homes. Tata Housing Development Co. Ltd, for example, recently launched its Shubh Griha brand of cheaper homes, priced at Rs3.9-6.7 lakh, around 60km away from central Mumbai. Sion, on the other hand, is in central Mumbai and Malad around 15km from there. Both areas are well networked by rail. “Demand is back but at a certain price,” said Chirag Negandhi, an analyst at Enam Securities Pvt. Ltd. “Such housing schemes would get a great response in cities such as Mumbai and Delhi because of their high property prices.” He added that the onus of developing low-cost housing projects in the heart of the city lies with government agencies as they already have land in such places. In mid-2008, the Delhi Development Authority (DDA) sold around 5,000 flats in one of its housing schemes. About 860,000 people bought the application forms and another 400,000 downloaded the forms from the Internet. “We don’t have any immediate plan of a sale but we may think of one later in the year,” said Neemo Dhar, a spokesman for DDA. The City and Industrial Development Corporation (Cidco), a government agency that operates in Navi Mumbai, is planning to sell around 2,000 homes in March. The housing scheme is close to CBD Belapur, around 40km from central Mumbai, and the flats would be priced at Rs6-10 lakh, said a Cidco spokesperson who didn’t want to be identified. madhurima.n@livemint.com Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:15 am Vedanta net up after jump in copper priceMumbai: Vedanta Resources Plc., the largest copper producer in India, said its fiscal third quarter profit surged after prices of the metal jumped. Earnings before interest, tax, depreciation and amortization rose to $662.5 million (Rs3,067 crore) in the three months ended 31 December from $10.1 million a year earlier, the company said in a statement on Wednesday. Sales expanded 64% to $2.15 billion. Source: LatestNews-Home - Livemint.com | 27 Jan 2010 | 11:10 am NIIT inks training pact with Colombia s SENAIT training firm NIIT today said it has signed an agreement with Colombia-based Servicio Nacional de Aprendizaje (SENA) for providing IT/ITeS, English and Professional Life Skills training in Colombia.Source: HindustanTimes.com - Top Business News Headlines | 27 Jan 2010 | 8:41 am
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