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Don\'t expect hike in rates in next few qtrs: Bajaj FinservIn an interview with CNBCTV18, Sanjeev Bajaj, Managing Director of Bajaj Finserv spoke about the credit policy impact going ahead.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 7:17 am BPCL awards 1st Euro IVcompliant diesel tenderIndia\'s staterun Bharat Petroleum Corp (BPCL) has awarded its firstever tender to buy EuroIV diesel to European majors BP and Shell, trade sources said on Friday.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 6:37 am ING, OCBC complete Asian private banking dealING Group NV completed the sale of its Asian private banking unit to Singapore\'s OCBC, the biggest deal in the private banking sector since the financial crisis.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 6:37 am RBI on warpath against inflation; raises CRR by 75 bps!RBI on Friday raised CRR by 75 basis points to suck out the excess liquidity from the financial system.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Govt to aggressively sell cereals to check price rise: Montek!India`s Planning Commission Deputy Chairman Montek Singh Ahluwalia today said the government would "aggressively" sell cereals in the open market to rein in surging food prices.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Sundaram Fin Q3 profit soars 80 pc!The city-based non-banking finance company Sundaram Finance today reported a net profit of Rs 55.38 crore for the quarter ended December, registering an increase of 80.42% over the corresponding period previous fiscal.Source: Zee News : Business | 29 Jan 2010 | 5:34 am GMR Infrastructure Q3 profit plunges 85% to Rs 9.2 cr!GMR Infrastructure on Friday posted nearly 85 percent decline in consolidated net profit at Rs 9.2 crore for the third quarter ended December 2009.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Microsoft fiscal Q2 earns up 60 percent on PC rebound!Microsoft Corp said Thursday its earnings in the most recent quarter jumped 60 percent, as a rebound in the personal computer industry drove sales of the company`s latest Windows operating system.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Fed chief Bernanke wins 2nd term in closest vote!Embattled Federal Reserve Chairman Ben Bernanke won confirmation for a second term on Thursday, but only by the closest vote ever for the crucial post.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Climate deal unlikely unless economy lifts: India!UN climate talks will "probably not" agree an ambitious deal this year unless the economy improves and voters press for action, said India`s top climate official Shyam Saran.Source: Zee News : Business | 29 Jan 2010 | 5:34 am Sensex falls by 182 points ahead of RBI policy review!Sensex opened lower by 182 points on Friday on heavy selling by funds ahead of the Reserve Bank`s monetary policy review amid weakening global trend.Source: Zee News : Business | 29 Jan 2010 | 5:34 am All infra biz under one roof post Quippo merger: SREIHemant Kanoria, MD, SREI Infrastructure, says the market will gradually understand the benefits of the Quippo merger. \"The merger will bring all infrastructure businesses under one roof.\"Source: Moneycontrol Top Headlines | 29 Jan 2010 | 4:27 am JSW Steel pursuing global coal mining assetsIndia\'s thirdlargest steel maker JSW Steel Ltd is aggressively pursuing coal mining assets in Australia, the United States, Canada, Russia and Mongolia, executive director Tuhin Mukherjee said on Friday.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 3:36 am 3G auction may be postponed till December 2010: SourcesThe government\'s auction of thirdgeneration wireless spectrum doesnt seem to see the light of the day anytime soon. It is learnt that the auction is likely to be postponed further till December 2010. The Defence Ministry has also said that there would be no spectrum till September 2010, sources inform CNBCTV18.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 3:35 am NTPC net profit up 5% - Economic Times
Source: Business - Google News | 29 Jan 2010 | 3:07 am Vigilance Dept to file supplementary chargesheet against Koda - The Hindu
Source: Business - Google News | 29 Jan 2010 | 3:07 am CRR hike will not affect banks' credit growth: IDBI - Moneycontrol.com
Source: Business - Google News | 29 Jan 2010 | 2:45 am JSW Steel eyes coal mining assetsSingapore: India’s third-largest steel maker JSW Steel Ltd is aggressively pursuing plans to buy coal mining assets in either Australia, the United States, Canada, Russia or Mongolia, executive director Tuhin Mukherjee said on Friday. He said the company now primarily imports coking coal from companies Australia. But in the future it wants to meet 50% of coking coal supplies through internal sources. “We are actively looking for good quality coal mining assets,” he told Reuters on the sidelines of a coal conference in Singapore. “Investment bankers are approaching us and we are also doing direct buyer-seller talks.” Asked if the negotiations were at an advanced stage, Mukherjee declined to comment. He also declined to discuss an investment value range for any acquisitions under consideration. On Thursday, Alberto Migliucci, Credit Suisse’s head of Mining, Oil and Gas for Southeast Asia, said acquisitions of coal and mining assets are likely to increase this year as the global credit crunch eases and demand picks up. China and India are seen leading the chase. Mukherjee also said that JSW Steel plans to import 6 to 7 million tonnes of coking coal in its financial year ending 31 March 2011, up from 4.5 million tonnes in the previous financial year. The company aims to raise coking coal output at its two domestic plants to 12 million tonnes by the end of 2010 from 8 million tonnes currently. Last week, JSW Steel said it swung to a net profit of Rs514 crore for the third quarter ended 31 December, from a Rs128 crore loss in the same period a year ago - on strong volumes, foreign exchange gains and stringent cost-cutting. Indian steel consumption has risen faster than production from April, the start of India’s fiscal year, to November, led by demand from the housing, auto and infrastructure sectors. Shares in the company fell 3.7% to Rs952 each by 0442 GMT, while the Mumbai stock market dropped by 1.3%. Source: Home - Livemint.com | 29 Jan 2010 | 2:45 am RBI to set guidelines for benchmark rates: IBAMUMBAI (Reuters) – The Reserve Bank of India (RBI) would release the final guidelines for benchmark lending rates in 2-3 weeks, Indian Banks' Association chairman said on Friday.Source: Reuters: Money News | 29 Jan 2010 | 2:43 am Samsung jumps back to profit in Dec quarterSeoul: Samsung Electronics Co. returned to profit in the fourth quarter as demand for flat screen televisions and mobile phones helped push sales to a record high, underlining Samsung’s rise to the top tier of global technology companies. The company, a major producer of consumer electronics products and components that make them work, earned 3.05 trillion won ($2.64 billion) in the three months ended 31 December on a parent basis, it said in a statement on Friday. Samsung does not release a consolidated net profit figure. Samsung said, however, that sales on a consolidated basis, which includes the performance of its overseas and domestic subsidiaries excluding financial businesses, reached a record 136.29 trillion won or nearly $118 billion at Friday’s exchange rate. That places Samsung slightly above Hewlett-Packard Co., which in November reported sales for fiscal year 2009 ended 31 October of $114.6 billion. Palo Alto, California-based HP is considered the world’s biggest technology company. Such a comparison is not direct, however, as HP has yet to report results for the final two months of 2009 and movements in the often volatile South Korean won can influence the size of Samsung’s sales when converted into dollars. Still, Samsung’s sales figure highlights its emergence as one of the world’s top technology companies. The Suwon, South Korea-based corporation is the largest manufacturer of computer memory chips, flat screen televisions and liquid crystal displays. It ranks No. 2 in cell phones behind Finland’s Nokia Corp. Samsung’s profit was a huge turnaround from its net loss of 22 billion won in the fourth quarter of 2008. That red ink, its first net loss since it began reporting results on a quarterly basis in the third quarter of 2000, sent shockwaves through the company and came as the global economic slump hit demand. Samsung said its “strong performance” during the fourth quarter last year was bolstered by improving prices for memory chips and a seasonal increase in sales of consumer electronics. The company said it sold nearly 11 million flat screen TVs in the quarter, becoming the first manufacturer to exceed the 10 million mark. Mobile phone handset sales in the quarter jumped 16% from a year earlier to 69 million. Total 2009 sales reached 227 million. Looking ahead, Samsung said it expects “positive growth across its businesses in 2010,” citing stronger demand for flat screen TVs, mobile phones and laptop computers resulting from the ongoing economic recovery. Samsung said parent sales in the fourth quarter reached 25.32 trillion won, which was 37% higher than 18.45 trillion won reported a year earlier. In a separate regulatory filing, the company said that it earned 9.65 trillion won in all of 2009 on a parent basis, up 75% from 2008. Samsung also said sales last year rose 23% to 89.77 trillion won from 72.95 trillion won the year before. Shares in Samsung, which released its earnings results about 30 minutes after the stock market opened, fell 3% to close at 784,000 won. The company’s stock price rose 77% in 2009. Source: Home - Livemint.com | 29 Jan 2010 | 2:38 am Tata Comm Q3 net zooms three fold - Economic Times
Source: Business - Google News | 29 Jan 2010 | 2:28 am Venezuela gets bids for 3 Carabobo projectsVenezuela has received bids for all three projects in the Carabobo bidding round in the Orinoco heavy oil belt, sources said on Thursday.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 2:24 am Credit Suisse: Coal, mining buys to rise this yearAcquisitions of coal and mining assets are likely to increase this year, as the global credit crunch eases and demand recovers, with China and India seen leading the buying spree.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 2:23 am SCENARIOS - With image under fire, Toyota looks to shimTOKYO (Reuters) - Japanese automaker Toyota Motor Corp, revered in the industry for making reliable quality cars, is caught in a mass recall debacle that has spread from North America to Europe and China.Source: Reuters: Money News | 29 Jan 2010 | 2:22 am Ford halts production of China van with CTS pedalFord Motor Co and its joint venture partner Jiangling Motors Corp halted China production of fullsized Transit Classic diesel commercial vans equipped with CTS Corp pedals.Source: Moneycontrol Top Headlines | 29 Jan 2010 | 2:18 am Greek bailout would hurt eurozone - Germany's IssingBERLIN (Reuters) - A eurozone bailout of Greece would weaken the euro and deeply damage the reputation of the European monetary union, former European Central Bank chief economist Otmar Issing said in a newspaper article on Friday.Source: Reuters: Money News | 29 Jan 2010 | 2:15 am BSE Sensex turns positive; had been down 2 pctMUMBAI (Reuters) – The BSE Sensex turned positive in afternoon trades on Friday, reversing earlier sharp losses, with banks gaining after the Reserve Bank of India (RBI) raised reserve requirements but held short-term interest rates steady.Source: Reuters: Money News | 29 Jan 2010 | 1:57 am Banks rule out immediate hike in lending rates - Times of India
Source: Business - Google News | 29 Jan 2010 | 1:49 am Markets turn positive; had been down 2%Mumbai: Indian shares turned positive in afternoon trades on Friday, reversing earlier sharp losses, with banks gaining after the central bank raised reserve requirements but held short-term interest rates steady. At 2:10pm, the 30-share BSE Index which had extended losses to 2% after the Reserve Bank’s policy review, was up 0.05 percent at Rs16,315.82 points with 14 components gaining. The 50-share NSE Index was also up 0.5% at 4,869.95 points. Markets dropped more than 1% in opening deals, hurt by a slide in global stocks and led down by losses in Infosys Technologies and Reliance Industries. At 9:01am, the 30-share BSE index was down 0.91% at 16,158.05 points, with only two components advancing. Tata Steel, the world’s eighth largest steel maker by output, was down 1.8% at Rs575.20. It had rallied 4.8% on Thursday after forecast-beating third-quarter results. The 50-share NSE index was down 1% at 4,817.45. Source: Home - Livemint.com | 29 Jan 2010 | 1:48 am NTPC Dec qtr net rises 5.1 pctReuters - Three months ended Dec. 31. (Versus the same period a year earlier, in billion rupees unless stated)Source: Reuters: Money News | 29 Jan 2010 | 1:43 am Banks rule out immediate hike in lending ratesDespite a more than expected hike in the Cash Reserve Ratio, banks ruled out any immediate hike in the lending rates as they believe that liquidity is still abundant in the system to absorb the increased cash requirement.Source: India Business News | Business News - Times of India | 29 Jan 2010 | 1:36 am State Bank sees no upward pressure on ratesMUMBAI (Reuters) - The chairman of State Bank of India, India's leading bank, said on Friday he did not see any upward pressure on lending rates in the next six months, after the central bank had raised banks' reserve requirements.Source: Reuters: Money News | 29 Jan 2010 | 1:36 am Siemens operating profit up 125 percent - Sify
Source: Business - Google News | 29 Jan 2010 | 1:36 am ICICI Bank shares rise more than 5 pctMUMBAI (Reuters) - Shares in ICICI Bank rose more than 5 percent on Friday afternoon, after the Reserve Bank of India left key rates unchanged at its policy review.Source: Reuters: Money News | 29 Jan 2010 | 1:33 am RBI lifts cash reserve ratio, holds ratesMUMBAI (Reuters) – The Reserve Bank of India (RBI) surprised markets by raising banks' cash reserve requirements by more than expected and warned of mounting inflation, suggesting its next move may be an interest rate rise.Source: Reuters: Money News | 29 Jan 2010 | 1:25 am US EXIM Bank, Air India sign $1 billion financing dealThe Export-Import Bank of the US and NACIL, the holding company of national carrier Air India, have signed an agreement worth $1.1 billion to support financing of sale of Boeing airplanes to the Indian carrier.Source: India Business News | Business News - Times of India | 29 Jan 2010 | 1:24 am BMW sees 2010 sales growth, confirms 2009 profitFrankfurt: BMW, the world’s biggest premium automaker, forecast a modest rise in car sales this year and confirmed it expected a 2009 pretax profit despite the global economic crisis. “We fully intend to remain the world’s leading provider of premium vehicles in 2010 and plan to increase sales within the single-digit percentage range to over 1.3 million units,” Chief Executive Norbert Reithofer said in a statement on Friday. BMW, which is pinning special hopes on the latest version of the 5 Series which hits the market in late March, forecast record sales again this year in China, Brazil and India. It said it expected to return to growth in the United States this year. The group whose brands also include Mini and Rolls-Royce reiterated it expects a 2009 pretax profit thanks to cost cutting and other efficiency measures that helped offset a 10.4% decline in sales to just under 1.29 million vehicles. BMW said 2009 group revenue fell 4.7% to €50.68 billion ($71.2 billion). Revenue in its core automobiles segment fell 10.3% to 43.74 billion. DZ Bank analyst Michael Punzet said in a note to clients the revenue figures beat expectations, but BMW’s comments on the sales outlook struck him as “not really optimistic” and in line with his assumption of a small increase. Source: Home - Livemint.com | 29 Jan 2010 | 1:20 am Highlights RBI quarterly policy reviewThe Reserve Bank of India (RBI) on Friday raised the cash reserve ratio for banks by a higher-than-forecast 75 basis points but, as expected, left key interest rates unchanged.Source: HindustanTimes.com - Top Business News Headlines | 29 Jan 2010 | 1:18 am Scenarios: With image under fire, Toyota looks for fix - Reuters
Source: Business - Google News | 29 Jan 2010 | 1:12 am Swap rates edge up as focus turns to budgetMumbai: Indian one-year swap rates edged up on Friday after the central bank decided to absorb more cash from the banking system than expected, but the reaction was limited as it did little to clarify whether a policy rate hike was coming by April. Bank shares recouped early losses while the rupee was little changed after the Reserve Bank of India lifted the cash reserve ratio -- the amount of funds banks must hold at the central bank -- by 75 basis points to 5.75%, slightly more than expected. The RBI also raised its growth and inflation forecasts while calling on the government to roll back its borrowing, but its inflation-fighting tone did not convince market players that an increase in the reverse repo rate was a sure bet at its next quarterly policy review in April. Overnight indexed swaps show the market is bracing for about 100 basis points of hikes in the reverse repo rate, now at 3.25%, over the next year. Analysts said the RBI was playing a balancing act between trying to keep the economy’s robust growth on track while beginning to tighten loose monetary conditions, with an eye on rising inflationary pressures. “The central bank had prepared the market so well for a 50 basis points CRR hike that in order to make an impact, they had to do more than that. I think they will now wait to see how inflation and the budget pans out,” said Atsi Sheth, chief economist at Macro-Sutra. The government will announce its borrowing needs for the fiscal year 2010-11 in its 26 February budget, which could determine the RBI’s next steps. The one-year swap rate was at 4.92%, up 6 basis points on the day but falling back from a high of 4.97% struck immediately after the policy decision. The benchmark 10-year bond yield was at 7.55%, flat on the day after jumping as high as 7.59%. The partially convertible rupee was at Rs46.35 per dollar on the Reuters Dealing system, little changed from Rs46.40/41 before the decision and Thursday’s Rs46.35/36. Dealers said the rupee is broadly tracking the domestic equity market. The benchmark Sensex index was down 0.4%, outperforming broader Asia markets, after having slid as much as 1.7% after the policy news was released. Banks outperformed the main index, rising 1.8% by early afternoon on relief that policy rates were held steady, dealers said. Inflation vs fiscal deficit To help finance its stimulus without adding to an already large deficit, India has planned a series of stake sales in state-run firms and an auction of its 3G wireless spectrum. Dealers said the government would be keen that adequate liquidity was left in the system. Source: LatestNews-Home - Livemint.com | 29 Jan 2010 | 1:08 am Fin secy: cash reserve ratio hike appropriateNEW DELHI (Reuters) - A 75-basis point hike in banks' cash reserve requirements (CRR) by the Reserve Bank of India (RBI) is "appropriate and adequate", Finance Secretary Ashok Chawla said on Friday.Source: Reuters: Money News | 29 Jan 2010 | 12:50 am 3G spectrum auction put off to next fiscalNew Delhi: In a surprise move, the government has postponed to the next fiscal, the auction of spectrum for 3G telephony which was expected to bring in Rs35,000 crore to the exchequer. According to senior officials in the Department of Telecom, law minister Veerappa Moily, who is member of the EGoM, has opined that the auction should be held when the spectrum is available. Telecom minister A. Raja could not be contacted immediately for his comments. Officials however, said that the auction is expected to take place in August-September this year. It is pertinent to mention that the ministry of defence had agreed to vacate the spectrum only during middle of this year. The Empowered Group of Ministers, headed by finance minister Pranab Mukherjee, had decided to allow four private telecom firms for the next generation mobile telephone services (3G) and had made a provision for garnering up to Rs35,000 crore from the sale of airwaves in the current fiscal. The postponement of 3G spectrum auction to 2010-11 is likely to have some adverse impact on the government’s finances and the fiscal deficit which is pegged at 6.8% of the GDP. The EGoM on 3G spectrum held several meetings in the past two months showing urgency to hold auction for the airwaves despite differences between ministries of telecom and defence over the number of blocks to be auctioned. The EGoM had also decided that spectrum would be alloted to the winners simultaneously in August to maintain a level- playing field and the same was endorsed by all the members, including the law minister, sources said. Last week, the government had also allowed prospective 3G bidders to raise funds from domestic markets, which could later be refinanced through debts raised abroad making it easier for the firms to arrange finances. The external commercial borrowings (ECBs) norms were relaxed considering the short window available between the date of application for the 3G auction and the date of payment by successful bidders. Sources also said that some of the leading Indian telecom firms were pushing for 3G spectrum auction to next financial year in view of the global slowdown and increased competition which have put pressure on their revenues. Asked to name the companies who had approached the government to postpone the auction to next fiscal, sources declined to give details. The two telecom PSUs (BSNL and MTNL) have been given the 3G spectrum and both are offering services across the country. with MTNL in two metros of Delhi and Mumbai and BSNL in rest of India. Source: Home - Livemint.com | 29 Jan 2010 | 12:47 am Asia shares slide on resources, eurozone woesHong Kong: Stocks in Asia tumbled on Friday, hurt by weak technology and resources shares and fresh worries about Greece’s debt levels, which dragged the euro to a six-month low against the dollar. However, leading European shares were expected to inch higher, halting the market’s worst sell-off in a year, despite mounting worries about weak euro zone members. US stock futures pointed to a slightly weaker open after key Wall Street indexes fell by up to 1.9% overnight as poor earnings and outlooks from Motorola and Qualcomm dented optimism in the tech sector. A massive recall of millions of vehicles by the world’s top automaker Toyota Motor Corp added to concerns about corporate earnings, while falling commodity prices hurt miners such as BHP Billiton Ltd Samsung Electronics, the world’s top maker of memory chips and LCD screens, failed to lift the gloom despite its forecast-beating earnings as Asian shares head for their worst monthly decline since January 2009. Asia Pacific stocks outside Japan as measured by MSCI fell 2% to a 2-month low, with the materials index down 3.4% and the technology index off 1.8%. Concerns over public finances in Greece and Portugal pulled the euro down to a six-month low against the dollar and a nine-month low versus the yen, a trend which has gained momentum as investors cut risky trades which had been funded by borrowing in the yen and dollar. Investors have also been nagged this week by fears that the global economic recovery may be losing momentum, China’s steps to cool its surging economy and political and regulatory wrangling in Washington. “There is a general adjustment going on in risk appetite and risk sensitivity,” said Peter Redward, head of Emerging Asia Research, Barclays Capital. But he said the recent drop has been orderly and the sell-off has been notable because of the absence of panic. “It shows there hasn’t been a lot of large option-related, speculative position building. There isn’t a lot of gamma floating around in terms of equities or fx,” he added, referring to derivatives instruments which when triggered can lead to accelerated selling. According to data from fund tracker EPFR Global, emerging markets equity funds saw their first week of net outflows in the period ended Jan. 27 after 11 weeks of inflows as investors pared back their exposure amid fears of slowing growth in China, where authorities are reining in bank lending. equity funds saw their biggest weekly outflow since late June while European equity finds suffered net redemptions for the third week in five, the data showed. But bond funds saw inflows, particularly emerging market local currency-denominated bonds. The recent strength of the yen currency also hammered Japanese stocks, which received a further setback after Toyota announced it would extend to Europe and China a recall of millions of vehicles due to faulty accelerator pedals and floor mats. Japan’s Nikkei average fell 2% to a six-week closing low, hurt by negative earnings surprise from chip equipment maker Advantest Corp which came after Nippon Steel Corp’s warned of a first annual net loss in seven years. Advantest shares tumbled more than 10%. Toyota fell 2%, bringing its losses this week to around 14%. But analysts said broader market selling appeared to be largely driven by short-term investors, and funds with a longer-term horizon remained upbeat on the region’s fundamentals. “Some markets are quite oversold at the moment -- the 12 month fundamentals for economies and earning are likely to be reasonably good,” said Khiem Do, head of the Asia multi-asset group at Baring Asset Management, which oversees $50 billion. “Prices are getting cheaper as a result of the liquidation of trading position. Our view is positive over next 6-12 months.” Currencies linked to global growth such as the Australian dollar and the New Zealand dollar fell to multi-week lows as investors moved out of higher-risk assets and on caution ahead of fourth-quarter GDP data to be released later on Friday at 7:00pm. Even though data on Thursday showed durable goods orders rose and jobless claims fell in the world’s largest economy, analysts are wary it is not a strong recovery. Mixed economic data from the world’s other leading economies also continues to keep investors cautious. After Japan’s better-than-expected export growth earlier this week, data released on Friday showed the economy was in the grips of deflation with core consumer prices marking their tenth straight month of decline. In commodities markets, crude oil looked set for a possible fourth day of losses sparked by forecasts of tepid oil demand in rich industrialised nations. crude futures eased 20 cents to $73.44 a barrel. A firm dollar and concern over the pace and scope of credit tightening in China drove Shanghai copper down 3.5%, following a drop in London prices in the previous session. Source: Home - Livemint.com | 29 Jan 2010 | 12:19 am Sensex below 16,000 on RBI hiking CRRThe Bombay Stock Exchange benchmark fell below the 16,000 level by nosediving over 320 points, minutes after the Reserve Bank announced a hike in the mandatory cash reserve of banks held by the apex bank.Source: India Business News | Business News - Times of India | 29 Jan 2010 | 12:18 am 3G spectrum auction put off to next fiscalThe postponement of 3G spectrum auction to 2010-11 is likely to have some adverse impact on the government's finances and the fiscal deficit, which is pegged at 6.8% of the GDP.Source: Daily News & Analysis: Money News | 29 Jan 2010 | 12:11 am FUND VIEW - Fund managers comment on RBI policyMUMBAI (Reuters) – The Reserve Bank of India (RBI) on Friday left its short-term interest rates unchanged on Friday but raised banks' cash reserve requirements by a higher-than-expected 75 basis points, to be implemented in two phases, and warned of rising inflation.Source: Reuters: Money News | 29 Jan 2010 | 12:09 am Crude oil may be choppy this yearCrude oil recorded a spectacular rally from the first quarter of last year. But from October, the rally has lost momentum and it is struggling to move past the $85-mark since then. Doubts about a sustained global economic recovery and strength inSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am Day Trading GuideDLF found near-term support in the last trading session and rebounded. We recommend a buy with tight stop-loss at Rs 316. Utilise rallies to sell ICICI Bank and SBI while maintaining tight stop-loss at Rs 800 and Rs 2,021 respectively. Make useSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am Rising bad loans hit Bank of India net in Q3Lower treasury income and increase in bad loans pulled down Bank of India's net profit 53 per cent to Rs 405 crore for the quarter ended December 31, 2009, against Rs 872 crore in the same period of the previousSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am Tata Tea net dips 25% on rising input costsTata Tea has reported a net profit of Rs 36.75 crore for the quarter ended December 31, 2009, a 24 per cent drop from Rs 48.30 crore in the same period last year. Net sales were, however, up to Rs 447.44 crore (Rs 378.75Source: Business Line - Home Page | 29 Jan 2010 | 12:00 am Tata Steel Q3 net doubles on higher demand, cheaper inputsTata Steel net profit more than doubled to Rs 1,192 crore in the quarter ended December 31 (against Rs 466 crore in the same quarter the previous year) on the back of improved demand from the construction sector, including real estate,Source: Business Line - Home Page | 29 Jan 2010 | 12:00 am CST compensation package structure definedThe contours of the compensation package to the States for the Central Sales Tax (CST) revenue loss that may be incurred by them during 2009-10 was decided at a meeting here at North BlockSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am UBS in a fix over court rulingSwiss bank UBS is caught in a bind, facing the possibility of further legal battles with the US authorities, as Switzerland attempts to wrestle with its infamous bank secrecySource: Business Line - Home Page | 29 Jan 2010 | 12:00 am Watch not the interest, but the jobless, rateThe Fed has spoken. At its two-day meeting, which ended Wednesday, it left interest rates unchanged (and virtually promised not to raise them for an ‘extended period'), but decided to wind up in March its programme of buying mortgage-backedSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am Exide Industries (Rs 108.7): SellWe recommend a sell in the stock of Exide Industries from a short-term perspective. It is apparent from the charts that the stock had been on an intermediate-term uptrend from low of Rs 34.5 to a high of Rs 128, between March 2009 and mid ofSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am IT industry shrugs off Obama's rhetoric against outsourcingThe US President, Mr Barack Obama, has once again set the cat among the pigeons. In his first State of Union address, the US President reverted to the anti-outsourcing stance that he had adopted during his electionSource: Business Line - Home Page | 29 Jan 2010 | 12:00 am 3G spectrum auction put off to next fiscalIn a surprise move, the government has postponed to the next fiscal auction of spectrum for 3G telephony which was expected to bring in Rs 35,000 crore to the exchequer.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 11:58 pm RBI warns of further inflation lifts CRR by 75 bpsThe Reserve Bank of India hiked the cash reserve ratio (CRR) for commercial banks by an unexpected 75 basis points, in a clear bid to curb inflationary expectations in the economy and warned of mounting inflation. Highlights of policy reviewSource: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 11:40 pm Indian economy will grow 7.5% but with high inflation: RBIThe Reserve Bank of India has projected an impressive 7.5% growth for the Indian economy in the current fiscal even as it hiked the outlook for annual inflation rate to 8.5% by end-March.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 11:33 pm RBI lifts cash reserve ratio, holds ratesMumbai: Reserve Bank of India (RBI) left short-term interest rates unchanged on Friday, as expected, but surprised markets with a higher-than-forecast 75 basis point rise in banks’ cash reserve requirements and warned of mounting inflation. The central bank called on the government to get its fiscal house in order and said monetary policy would be ineffective unless the government rolls back its borrowing, which is on track to hit a record Rs4.5 trillion ($96.9 bn) this fiscal year. Despite increasing inflationary pressures, the central bank has been under pressure from senior government officials to hold off from raising its policy rates, which they argue would undermine the economic recovery. Analysts said Friday’s move would just be the start of monetary tightening this year. “Going forward, we expect an inter-policy hike in the reverse repo and a hike in the repo rate in the April policy,” said Shubhada Rao, chief economist at the Yes Bank in Mumbai. Bond yields rose and stock prices fell following Friday’s policy review release. “Though the inflationary pressures in the domestic economy stem predominantly from the supply side, the consolidating recovery increases the risks of these pressures spilling over into a wider inflationary process,” it said in its third quarter review. The central bank lifted its wholesale price index inflation forecast for the end of the fiscal year in March to 8.5% from its earlier forecast of 6.5%, but said it expected inflation to moderate from July, assuming a normal monsoon and global oil prices holding at current levels. The RBI said the CRR would be increased by 50 basis points from 13 February and a further 25 basis points to 5.75% from 27 February. It held its lending rate, or the repo rate unchanged at 4.75% and its reverse repo rate at which it absorbs surplus cash from banks, unchanged at 3.25%. It also lifted its forecast for GDP growth for Asia’s third-largest economy in the current year to 7.5% from an earlier target of 6%, and said that the current rate of growth is likely to be sustained in the financial year that ends in March 2011. The bank rate, used by banks to price long-term loans, remained unchanged at 6.0%. India’s benchmark 10-year bond yield rose 4 basis points and the rupee and stocks extended losses after the policy review. The partially convertible rupee extended losses to 46.40/41 per dollar, from 46.36/37 beforehand. The one-year swap rate rose 4 basis points to 4.97%. It had closed at 4.86/89 on Thursday. A Reuters poll last week showed 24 out of 25 economists expected the RBI to raise bank reserve requirements, or the cash reserve ratio by up to 50 basis points. Most economists had expected the central bank to keep core interest rates on hold, and Indian overnight indexed swap rates had ruled out a rate rise. The cash reserve ratio was cut by 4 percentage points in five moves between October 2008 and January 2009 as the central bank moved to support the economy during the global financial crisis. The RBI had cut the repo rate by 4.25 percentage points in six steps between October 2008 and April 2009. The reverse repo rate was cut by 2.75 percentage points in four steps since December 2008. The RBI joins other central banks in Asia in taking steps to start unwinding ultra-loose monetary policy. On Thursday, the Philippines raised a short-term lending rate, and this month China started to tighten policy by raising banks’ reserve requirements and accepting higher yields at bill auctions. Australia was the first Group of 20 country to begin raising rates as the global economy recovers from its worst downturn since the Great Depression. The Reserve Bank of Australia has raised its key cash rate by 75 basis points since October. Source: Home - Livemint.com | 28 Jan 2010 | 11:28 pm Obama to propose $33 bn tax credit to create jobsWashington: President Barack Obama will propose a $33 billion tax credit to encourage small businesses to hire workers and raise wages in 2010, an administration official said on Thursday. Democrat Obama will announce the plan on Friday at a small business in Baltimore en route to speak to a retreat there for House of Representatives Republicans, a bipartisan mission he is undertaking as he tries to rally from the damage done to his popularity by 10% unemployment. The plan was previewed by Obama in the State of the Union address, where he made jobs priority number one. It will grant a $5,000 tax credit for every net new worker hired in calendar 2010. The amount will be capped at $500,000 per firm to make sure that the bulk of the benefits go to small businesses. The official said the proposal had much in common with other plans being discussed on Capital Hill and the White House was ready to work with both parties to “get something done.” The House of Representatives approved a $155 billion jobs bill in December, the Senate is considering its own version, and Obama used his annual State of the Union address on Wednesday to call for a new jobs bill. A shocking win last week by an upstart Republican in an election to the U.S. Senate in traditionally Democrat-dominated Massachusetts has jolted the White House into concentrating its message on Obama’s strategy to boost jobs. In addition to the jobs credit, firms increasing wages or hours for their workers will be reimbursed for the social security payroll taxes they pay on the real increase in their payrolls. This measure is included in the $500,000 cap to make sure the benefits stay focused mostly on small businesses. So-called payroll tax credits are criticized by economists because it is hard to discriminate between jobs created due to the incentives, and hiring that would have happened anyway. The administration official said even though this might be the case, it was still worth doing. “Not every single tax credit will go to someone who created a job because of this, but we think that is good. Small businesses need tax cuts,” the official, who spoke on the condition of anonymity, told reporters in a conference call. Obama will propose to pay for the plan with savings from a $700 billion bank bailout fund, the official said, but made plain that this would be up to the Congress to decide. Expected losses on the Troubled Asset Relief Program, or TARP, have fallen by some $200 billion thanks to the improved health of banks, and the White House says this has created budget “space” to ease unemployment, now at a 26-year high. The $155 billion House jobs bill also included a provision for $75 billion of that money to come from TARP savings. In addition, Obama wants to use a further $30 billion from TARP to aid the flow of credit through community banks to small businesses. The White House said there would be more details on this aspect of Obama’s job strategy in the coming weeks. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 11:28 pm RBI hikes CRR by 75 bps, leaves key policy rates untouchedThe Reserve Bank of India on Friday increased mandatory cash reserve of banks held by it by 75 basis points in a bid to suck excess liquidity to combat rising inflation.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 11:24 pm Cost-cutting measures over: HCL - The Hindu
Source: Business - Google News | 28 Jan 2010 | 11:23 pm RBI raises Cash Reserve Ratio by 75 basis pointsThe CRR hike in two tranches will suck out liquidity to the tune of Rs36,000 crore from the system.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 11:15 pm Sensex falls by 182 points ahead of RBI policy reviewSensex opened lower by 182 points on Friday on heavy selling by funds ahead of the Reserve Bank's monetary policy review amid weakening global trend.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 11:02 pm Rupee flip-flops ahead of RBI policy reviewMumbai: The Indian rupee seesawed in early trade on Friday with losses in domestic shares and dollar gains pressuring it lower but expectations of a tighter monetary policy supporting the local currency. At 10:06am, the partially convertible rupee was at Rs46.36/37 per dollar, little changed from its Thursday’s close of Rs46.35/36. It has traded in a Rs46.32-46.42 band so far in the session. “Weaker stocks and a marginally stronger rupee is possibly some sort of a reaction to rate hike expectations. The disconnect today is some sort of position adjustment and that to me looks predicated on the rate expectations,” said R.K. Gurumurthy, head of treasury, at ING Vysya Bank. “If only cash reserve ratio is hiked, I see rupee testing Rs46.50. Much the same on rate hikes also, as I would imagine some amount of intervention to curb volatility; Rs46.20-46.50 looks like the range for the day,” he added. The central bank’s quarterly policy review is due at 0545 GMT, and most analysts expect an increase in banks’ cash reserve requirements, the proportion of deposits that banks must keep with the Reserve Bank of India as cash. However, recent strong economic data and the tone of the central bank’s macroeconomic review on Thursday evening, has increased the risk of interest rates also being raised, dealers said. The rate hike could cause a sell-off in stocks and thus weigh on the rupee in a knee-jerk reaction, dealers said. However, the longer-term outlook for the rupee would be positive, they added. In its macroeconomic review ahead of the policy, the central bank said there was a possibility of high food price pressure spilling over to other segments of the wholesale price inflation. The index of the dollar against six major currencies was up 0.2%. Asian currencies were trading weaker compared to the dollar. The euro hit a nine-month low on the yen and a six-month low on the dollar on Friday as concerns about Greece’s fiscal situation intensified, while the Japanese currency rose broadly as weaker stocks further clouded sentiment. Indian shares dropped more than 1.3% in opening deals on Friday, hurt by a slide in global stocks. One-month offshore non-deliverable forward contracts were quoted at Rs46.39/49, weaker than the onshore spot rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.4550, with the total traded volume on the two exchanges at about $680 million. Source: Home - Livemint.com | 28 Jan 2010 | 10:44 pm Oil steady near $74 as US growth forecast to quickenSingapore: Oil was steady near $74 on Friday, headed for a third consecutive weekly drop, as the recovery of the US economy has yet to boost fuel demand. The US economy probably grew at an annual rate of 4.6% in the fourth quarter, up from 2.2% in the third, a Reuters poll showed ahead of the data, due at 1330 GMT. US jobless claims fell less than expected last week, the government reported on Thursday. President Barack Obama said in his State of the Union address on Wednesday that job creation would be his top priority. “Even though the US economy is growing, the key figure is the unemployment rate,” said Clarence Chu, an energy trader at Hudson Capital Energy in Singapore. “Until I see that the US is consistently creating jobs for a few months in a row, I’m not convinced that demand will increase.” Oil demand in the US shrank 2% in the past four weeks from a year earlier. Japanese crude imports fell 2.6% in December and gasoline sales tumbled 2.4%, the Ministry of Economy, Trade and Industry (METI) said on Friday. US oil for March delivery gained 9 cents to $73.73 a barrel by 0504 GMT. Prices touched $72.65 on Wednesday, the lowest intra-day price since 21 December, and are still down 12% from a 15-month high of just under $84 on 11 January. London ICE Brent crude for March climbed 11 cents to $72.24. Prices fell on Thursday after the US dollar rose to its highest level in more than six months against the euro, which fell on concern over potential fiscal crises in European economies including Greece and Portugal. A stronger dollar often indicates investors are funneling cash away from riskier assets such as commodities. It also can curb demand for crude oil from buyers who hold other currencies, since oil is priced in dollars. More fuel efficiency, alternatives Oil use in OECD countries will never return to 2006 and 2007 levels because of more fuel efficiency and the use of alternatives, International Energy Agency chief economist Fatih Birol told Reuters on Thursday. “I would expect that the oil price will trade within the current range for the remainder of this year, (at) $60-80 per barrel,” BP chief executive Tony Hayward said on Thursday on the sidelines of the World Economic Forum gathering in the Davos Swiss ski resort. Thursday’s US economic data cast further doubt over the pace of economic recovery. More people than expected claimed for jobless benefits last week and durable goods orders increased less than forecast in December. “If you may lose your job next month, you are not going to spend, buy a house, buy a car; you try to save as much as possible,” Chu said. “That is not helping the whole sentiment. I am bearish in the near future.” Opec discipline in cutting output over the past 15 months is helping reduce an inventory surplus. Floating storage of crude and products has been declining and now stands at between 75 million and 80 million barrels, Barclays Capital said. “In a world where, in our view, $70 per barrel is increasingly being looked at as being a barely sustainable minimum, current prices are not generating much in the way of excess rents,” Barclays Capital analysts, headed by Paul Horsnell, said in a report on Thursday. “Key producing countries are increasingly signalling that $70 per barrel is a borderline below which, if sustained, the commitment to maintain capacity cannot be taken for granted,” Barclays Capital said. Source: Home - Livemint.com | 28 Jan 2010 | 10:28 pm Boost for Gujarat's industrial activityGujarat government announces aid to mega / innovative projects in state.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 9:52 pm Rupee slips by two paise against dollar in early tradeThe rupee today depreciated by two paise against the US currency in early trade following weak stock markets and mild dollar demand from importers.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 9:32 pm How does touch screen technology work?On Just to Clarify, we always pride ourselves on being on top of the news, and nothing is more on top of the news today than talking about the iPad. Released yesterday by Apple, the iPad is a larger version of the iPod Touch. It’s a new generation media consumption device, and its interface, just like that of the iPhone, is entirely via touchscreen. On the podcast today, we wanted to look at exactly how this touchscreen technology works. Joining us today are two executives from Cypress Semiconductors in India – Balaji Thirumalai, senior director of strategic marketing, and Balasubramanian Lakshminarayanan, senior product marketing manager. In 2008, Cypress became the first company to offer multi-touch, all-point functionality, and its TrueTouch is the industry’s most flexible touch architecture. It has a variety of touch offerings, and offers a touchscreen driver for Android Phones. Source: Home - Livemint.com | 28 Jan 2010 | 9:31 pm Intel employee linked to Galleon case left companyRajiv Goel is among more than 20 individuals accused in what is being called the largest-ever hedge fund insider trading scheme, generating more than $20 million in illegal profits over several years.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 9:16 pm Windows 7 sends Microsoft to record revenueThe successful launch of new operating system Windows 7 propelled Microsoft to record revenue in the fourth quarter of 2009, the software giant reported on Thursday.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 9:11 pm BSE Sensex falls at openTata Steel, the world's eighth largest steel maker by output, was down 1.8% at Rs575.20.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 9:05 pm US Congress to probe Toyota recallsCongressional investigators have sought documents from Toyota Motor Corp and US safety regulators about a pair of safety recalls the automaker was racing to address.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 9:00 pm 'Vibrant MoUs still wait for land promised by Gujarat government'Say banks who accuse the govt of being indifferent to fate of VGGIS-09 MoUs.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 8:45 pm NTPC Q3 net profit seen down 2% at Rs 2204.6 cr - Moneycontrol.com
Source: Business - Google News | 28 Jan 2010 | 8:30 pm Srei Infrastructure to merge Quippo InfrastructureSrei is a holistic infrastructure company, Quippo, the holding company for all the five Quippo business verticals, is into infrastructure equipment rentals.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:29 pm DLF to raise Rs 1,250 crore via exitsThe developer said it has visibility to raise Rs 1,000 crore as refunds from the Haryana government, resale of land plots from Gurgaon and exits from couple of projects by March end.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:29 pm Bharati Shipyard takes 1.63% more in Great OffshoreBharati Shipyard completed its open offer for ABG Shipyard last month and any acquisition of shares post the open offer amounts to creeping acquisition.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:24 pm 'Every click has a message'PV Kannan, co-founder and CEO, 24/7 Customer, who set up the first BPO outsourcing operations in India speaks up.Source: Daily News & Analysis: Money News | 28 Jan 2010 | 2:20 pm GSM majors being \'anticompetitive\': Rel Comm tells DoTReliance Communications has written to the Department of Telecom (DoT), expressing its anguish over the way major operators were suppressing competition by holding up excess spectrum.Source: Moneycontrol Top Headlines | 28 Jan 2010 | 1:47 pm RBI signals CRR hike as food prices rise againWith food inflation back on an upward trail, RBI is likely to hike key rates to suck out surplus liquidity from the financial system and check food inflation from spilling into the wider economy.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 1:10 pm 'Offshoring won't be impacted'Obama's reiteration of his administration's desire to create incentives for US companies to keep jobs at home instead of offshoring them elicited familiar reactions from Indian industry, most putting on a brave face.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 1:01 pm Pharma grows 17% in 2009The domestic pharma market registered a robust growth of 17%, the highest in two years after 2006, buoyed by a strong increase posted by all major companies and expansion into rural markets.Source: India Business News | Business News - Times of India | 28 Jan 2010 | 12:59 pm The Mint Report for 28 January 2010 New Delhi: Just one day before its monetary policy review, the RBI said the effects of high food prices could spill over to other parts of the Indian economy. Food prices have shot up after last year’s poor monsoon and flood in parts of the country. Figures released on Thursday show wholesale food inflation rose 17.4% in the week ending the 16 January. That’s higher than the previous week, when it had risen 16.8%. The deadline for the Goods and Services Tax or GST has been delayed. On Thursday the chairman of the committee of state finance ministers dealing with GST, Asim Dasgupta said it was no longer feasible to implement the tax by 1April. GST aims to unify several indirect taxes at the state and central levels into a single structure. A new survey on how the National Rural Employment Guarantee Scheme is working will give the government something to be happy about. According to the survey, nearly two-thirds of villagers say the effort to build awareness about NREGA has been ‘good’, while about 30% rate the effort as poor. Also on the downside, the survey found that social audits of NREGA, which help maintain transparency, were only happening in half the villages. The survey was conducted by national level monitors or NLMs across 3,400 villages in two separate 3-month session last year. And in corporate news, Tata Steel has beaten expectations for its third quarter numbers. Net profit for Indian operations shot up to Rs1,192 crore compared to just Rs466 crore in the same period last year. And net sales in Indian operations rose to Rs6,306 crore from Rs4,751 crore. Tata Steel will report consolidated figures that include its European unit Corus next month. Government-run company Hindustan Petroleum Corporation says it plans it invest Rs25,000 crore to set up a refinery with a capacity of 15 wmillion tonnes per year. The planned refinery is likely to be a part of the company’s existing Mumbai unit. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:24 pm Mukherjee flexible on GST negotiationsNew Delhi: Finance minister Pranab Mukherjee struck a fine balance in the ongoing negotiations on the transition to the proposed goods and services tax (GST) by showing some flexibility on states’ grievances but simultaneously asking them to widen their tax base. Thursday’s meeting between Mukherjee and the state finance ministers was dominated by talks on compensation to states on the revenue foregone on account of having reduced central sales tax (CST) preparatory to the transition to GST. According to West Bengal’s chief minister Asim Dasgupta, who also heads the body representing states in GST negotiations, the central government has promised to offset about 68%, or Rs9,676 crore, of the Rs14,181 crore of revenue states have forgone in 2009-10 on account of the CST rate cut. When merchandise manufactured in one state is sold in another state, CST accrues to the state where the manufacturing centre is located. Manufacturing states have cut CST to the current level of 2%, for which the Centre compensates them to offset forgone tax revenue. CST would be scrapped in a GST regime. The amount of compensation is similar to the amount Mukherjee offered states 20 days ago. But unlike the earlier meeting, Mukherjee showed flexibility on this occasion as he offered to discuss the possibility of the centre compensating states for the entire Rs14,181 crore revenue foregone at a later date, said a finance minister present at the meeting, who did not want to be named. On the previous occasion, Mukherjee suggested states bear third of revenue forgone in their budget, which some states said was unfair. According to Karnataka home minister V.S. Acharya, who was present at the meeting, Mukherjee suggested states bring textiles and sugar into the value-added tax (VAT) base. VAT is a tax on consumption levied by states and is to be folded into GST when the transition takes place. In the backdrop of high food inflation, Acharya felt states could not immediately bring sugar into the VAT net. Satya Poddar, partner at audit consultancy Ernst and Young, felt the move to get states to levy VAT on sugar and textiles was linked to an attempt to create a more comprehensive VAT base, which would lead to a better estimate of a fair GST rate. “In this context (GST negotiations), the Centre’s saying, let the base be comprehensive,” Poddar said. “I don’t see any technical difficulty in bringing textiles in VAT. If they haven’t done it, it’s inertia.” Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:23 pm Kerala looks to science to recreate miracle of natureKochi: Kerala’s fishing communities have mixed feelings about the monsoon—the rough weather spells off the coast of the Arabian Sea can make it too dangerous for the boats. But the rainy season that runs from June to September also causes the formation of the chaakara—a mudbank that builds up parallel to the shore, creating an area of calm that is rich in nutrients and draws abundant mackerel, prawns and sardine and acts as a natural barrier against sea erosion. The currents and monsoon winds churn the bottom of the sea, flushing out the silt and nutrient-rich slush to form the muddy pools that at times run several kilometres long, taking on the proportions of a lake. Easy pickings for fisherfolk who cannot put out to sea, the chaakara has become a part of the state’s folklore, celebrated in song and cinema as a miracle of nature.  Erratic phenomenon: A fishing boat off the coast of Mararikulam, Alappuzha, in Kerala. Scientists blame climate change and land use for the weak intensity and infrequent recurrence of mudbanks in recent years. AFP The government now wants to try and recreate the mudbanks using science. It will soon meet scientists of the Geological Survey of India, or GSI, who have floated a plan for the replication of the mud bank formation, along with other experts and environmentalists. GSI scientists A.C. Dinesh and C. Jayaprakash, who have been studying the composition of the mudbanks for four years, suggest in a research paper that the mudbanks can be created through the seeding of certain minerals in the right proportion. The GSI study holds great promise and the government proposes to take it forward, said Thomas Isaac, Kerala’s finance minister. The state government also wants to involve the Central Marine Fisheries Research Institute in Kochi, which was among the first to study mud banks back in the 1980s, in the project. “If there is a consensus, the government can ask GSI to artificially create mud banks on an experimental basis,” Isaac said. Dinesh and Jayaprakash say the phenomenon is unique to the Kerala coast because of the clay and its constituents. The mud banks are of two types—persistent and non-persistent—with the first kind found mainly off the coast of Alappuzha district. These are active during the monsoon and sustained throughout the year, albeit with decreasing intensity. The non-persistent ones are formed at several places north of Alappuzha and disappear by the end of the monsoon. An analysis of the sediment from the mudbanks showed the presence of the mineral zaherite, which has a high aluminium content, and gypsum, a common rock-forming mineral found in the sedimentary environment that spreads to produce massive beds. It has the quality of incorporating other minerals besides trapping bubbles of air and water. The non-persistent mudbanks revealed the additional presence of gibbsite, which is further facilitated by the presence of gypsum, while the persistent ones indicated the presence of the more active zaherite. The proposal of the GSI scientists is based on their experiment that involved the addition of 5% gypsum powder to clay sediment collected from non-mudbank areas. That resulted in a 25% volume increase in the sediment, indicating that mudbanks can be created artificially by introducing about 3–5% of a zaherite–gibbsite–gypsum mixture into the near-shore clay sediment, where waves exert maximum pressure below, Jayaprakash said. Their studies have led them to postulate that a 4% zaherite-gibbsite-gypsum mixture added to 10,000 tonnes of sediment can create a mudbank that’s a kilometre in length, 100 metres in width and a metre in depth. The mixture can be dropped in slurry form into the clay sediment from a vessel or barge. The scientists point out using concrete would cost more than twice as much and be an eyesore, apart from causing environmental havoc. The scientists assert that artificial mud banks will not have any adverse ecological impact and, on the contrary, contribute to increased marine life owing to the presence of minerals in the clay. While gibbsite and gypsum are easily available, zaherite-rich rocks in the Eastern Ghats can be mined in limited quantities, the scientists say. The other prerequisites for the formation of mudbanks—strong monsoon waves combined with suitable underwater depth and a gentle slope—are already present off the Kerala coast. If such conditions are available on other coasts, similar artificial mudbanks can be created, they assert. K.P. Thrivikramji, of Kerala University’s geology department, is sceptical about the GSI plan although he says it’s a “scientifically sound suggestion”. “But those who suggest this have never come up with even a conceptual or dynamic model at least in a lab,” he said. “We have several instances of creation of artificial reefs by dumping or sinking ships, cars and trucks to the shallow seabed. But the mud bank is a simple or complex suspension of mud in the coastal waters, maintaining physicochemical aspects.” The suggestions address one key concern—protection of otherwise eroding shores and beaches—but leave out the question of how the area would become rich in the nutrients that draw the fish. G.Vivekanandan, chief executive officer of the South Indian Federation of Fishermen Societies (SIFFS), says it remains to be seen whether artificially created mudbanks will be able to attract the fish. Balachandran of the National Institute of Oceanography, who is unsure about the success of artificially creating mudbanks, feels that any such move should be welcomed. “The artificial creation of such mudbanks is an aspect that has not been looked into seriously and there have not been any scientific experiments in this regard,” he said. He, however, also wants studies into why the phenomenon has been on the wane. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:22 pm MJ Akbar to launch Sunday GuardianNew Delhi: Veteran journalist M.J. Akbar is planning to launch a weekly newspaper called The Sunday Guardian in New Delhi. The website of the Registrar of Newspapers for India (RNI) shows that the title of the soon-to-be launched English daily has been accepted and that it will be published in the Capital by Akbar’s MJP Media Pvt. Ltd.  New venture: Journalist M.J. Akbar at his office in New Delhi. Vipin Kumar / Hindustan Times A person familiar with the development said the paper will be launched in February and that a team of 30 people was already in place. The paper isn’t associated in any way with the British newspaper The Guardian, which is owned by Guardian Media Group Plc and run by the Scott Trust, according to a spokesperson of the UK company. “Whilst we are always interested at exploring international opportunities, we have no specific plans to launch The Guardian in India at this stage,” she said in an emailed response to queries on the paper’s India plans. The market for weekend newspapers in India seems to have warmed up with Bennett, Coleman and Co. Ltd launching Crest in September as a brand distinct from its mass-market daily The Times of India. “Most media brands—print as well as television—give short, snappy news. The belief is that media consumption is polarized between weekdays and weekends with the latter allowing involved reading,” said C.V.L. Srinivas, media industry expert and former chief executive officer of the media buying agency Maxus. According to Bennett, Coleman chief marketing officer Rahul Kansal, Crest, priced at a premium Rs6, is targeted at the “evolved reader” who was not getting enough from The Times of India. “The primary aim of Crest was not to get advertising but to segment the market and cater to the readers looking for depth in perspective,” he said. Without divulging the total print order, Kansal said Crest is already available in Delhi, Mumbai, Bangalore and Pune. “This weekend, we are launching in Chennai.” However, not everyone is convinced about the weekend paper business model, which flourished for a few years in titles such as the Sunday Observer and the Sunday Mail but has been defunct since the 1990s. For a start, not many product categories are keen to advertise on weekends. “Print media advertisers such as financial products, consumer durables and automobiles prefer to publish their ads on weekdays,” pointed out Sanjoy Chakrabarty, chief executive officer (CEO) of media agency Last Minute Media Pvt. Ltd. According to his agency’s estimates, total English print media advertising in India is close to Rs7,000 crore. Besides, the Indian consumer, who currently pays between Rs1.50 and Rs3 a copy for a newspaper, is unlikely to shell out a premium for a weekend paper, argued Chakrabarty. “From a purely business point of view, weekend papers in India would be difficult to crack,” he said. Sanjay Gupta, CEO of Jagran Prakashan Ltd, which publishes the largest Hindi daily Dainik Jagran, does not discount the publishing trend, “but I can’t vouch that they would be profitable. Lower circulation will put off advertisers and even a slightly high cover price may not meet their editorial and production costs,” he explained. Early last year, Akbar launched a fortnightly political magazine Covert under MJP Media. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:21 pm Time to debate policy on sovereign fundsOne of the great economic changes of our age has been the dramatic surge in the external accounts of developing nations. Since the early part of this decade, developing nations have run giant surpluses of at least $500 billion (Rs23 trillion) a year. China, South Africa, Russia, the United Arab Emirates, Singapore and Kuwait are among the owners of giant claims against several of the Organisation for Economic Co-operation and Development (OECD) countries. Some of these such as Abu Dhabi’s investment in Citigroup Inc. and the China Investment Corp. Ltd’s acquisition of a stake in Morgan Stanley take the form of equity. This trend is not unusual.  There need be no moral ambivalence about the propriety of assertive resource acquisition by a sovereign entity. In the 16th century, the city-states of Venice and Florence issued tradable public debt to fight wars. The British crown was not averse to using the fund-raising skills of the Rothschilds to defeat Napoleon at Waterloo. History is, therefore, entwined with the story of opportunistic investment. Governments in the 21st century, too, must protect strategic economic interests through intelligent market plays. As India invests its substantial reserves in somewhat marginal securities, the question that inevitably comes to mind is whether a small fraction of this ought to be diversified into a more strategic form through a sovereign wealth fund with explicit criteria to manage sustained investments for the future. Among the concerns that seem to have held back a greater level of sovereign investment has been the lack of research about how well investments of SWFs have worked. In the absence of any real evidence of their success, there has been no real framework within which a potential fund could be created. This issue appears to have been addressed finally through an excellent paper titled The Investment Strategies of Sovereign Wealth Funds by Shai Bernstein, Josh Lerner and Antoinette Schoar published this year. The authors, who have been affiliated with Harvard Business School and Massachusetts Institute of Technology, have after examining several sovereign wealth funds come to some interesting conclusions. They observe that SWFs seem to invest when price-earnings multiples are relatively high; they seem to follow trends rather than create them. This is not unusual given that many sovereign funds are in the public eye and may feel the need to be seen to be following popular sectors rather than totally new ones where a poor investment might be questioned. The paper also observes that SWFs invest at a lower price to earning levels when investing at home and at higher private equity (PE) levels when investing abroad. This might suggest a willingness to undertake less promising but socially sensitive investments at home and more economically valuable investments overseas. It was also observed that when politicians were involved in fund management, SWFs tended to invest at home while professional fund managers tended to invest abroad, also consistent with the thesis that politicians may use SWF for non-economic ends—some of which may be quite valuable for the country. Finally and not surprisingly, the PEs of firms where investments were made by professional investment managers rose in the year after the investment, while for funds where politicians were involved, the opposite happened. Ideally, the governance structure of SWFs should separate political ownership from day-to-day investment management. Further, while the asset classes in which investments are made may be broadly guided by the governments’ priorities, the specific timings of investments and their mix should be generally chosen by professional fund managers. The quality of these decisions can be measured by means of the so-called Linaburg-Maduell index, which measures the transparency of a sovereign fund. As the wealth of developing economies increased, there has been a sustained demand for a broad range of commodities. The Morgan Stanley MSCI global commodity index has grown from around 1,000 a few years ago to 2,500 today. Moreover, developing countries not only increase real current consumption but also seem to go in for the same kind of commodity security that their developed counterparts used to indulge in by buying commodity assets in advance. Chinese and the West Asian funds appear to be consciously increasing their access to a variety of assets and increasing the concentration of ownership in a few industries. India is unique among large nations in not having an SWF policy. In the past few months we are again seeing substantial capital flows into the country. Given this background, it is surprising that there is so little discussion on whether we need to utilize a fraction of our sovereign wealth towards some form of resource insurance. There is no time like now for this debate to commence. Govind Sankaranarayanan is CFO, Tata Capital Ltd. He writes every other Friday on issues related to governance. The views expressed here are personal. Write to him at ruleofthumb@livemint.com Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:20 pm Sony expects Rs700 crore advertising revenue from IPL 3New Delhi: Broadcaster Multi Screen Media Pvt. Ltd (MSMPL), which operates Sony Entertainment Television, is set to reap a bonanza from the third edition of the Indian Premier League (IPL), which is expected to deliver Rs700 crore in advertising revenue for the network. That’s up more than half from the Rs450 crore it earned last year when the 20-overs-a-side cricket tournament, the country’s most valuable sports property, was shifted to South Africa to skirt security issues and avoid dates clashing with the Indian general election.  Clean wicket: Multi Screen Media has sold close to 90% of its inventory a full six weeks ahead of the tournament’s launch date of 12 March. Reuters MSMPL and World Sport Group Pte Ltd (WSG), a sports marketing company, paid Rs8,200 crore for the broadcasting rights to IPL until 2017. According to a senior executive from the WPP Group-owned Mindshare, a media buying agency, the network began selling its 10-second advertising spots at Rs4.5 lakh, which is 200% more than the initial ad rates in the IPL season 1 at Rs1.5 lakh per 10 seconds and 80% higher than the initial rate of Rs2.5 lakh in the second season. The executive did not wish to be identified because Mindshare manages the media buying business for IPL. In the past one week, the rates increased further to Rs5.25 lakh for 10 seconds. “We are all sold out in spite of the spiralling advertising rates,” said Rohit Gupta, MSMPL’s president of network sales, confirming the advertising rates. The broadcaster is now holding back 10% of the inventory to sell it at a premium during the final and semi-final matches. “These should be substantially higher than the Rs10 lakh per 10-second level of last year,” Gupta added. Mobile phone firm Vodafone Group Plc and electronic goods maker Videocon Industries Ltd have signed on as presenting sponsors on MSMPL’s SET Max channel, which will telecast the matches, for Rs50 crore each, a 66% increase from last year’s Rs30 crore sponsorship rate. Among the advertisers who have picked the associate sponsorship rights are Pepsico India Holdings Pvt. Ltd, LG Electronics India Pvt. Ltd, Hyundai Motor India Ltd, Samsung Electronics India Pvt. Ltd, Hindustan Unilever Ltd, Godrej and Boyce Manufacturing Co. Ltd and Tata Photon of Tata Teleservices Ltd. They paid Rs35 crore each, a 25% increase from the Rs28 crore that associate sponsors paid last year. A host of other brands such as Max New York Life Insurance Co., Tata DoCoMo, Havells India Ltd, Coca-Cola India Inc., Wipro Ltd, Sony India and ITC Ltd may have given the sponsorship rights a miss this year, but have booked large deals with the network, said Gupta. “If you notice, most of the brands that have signed on with us this year have been present on season 1 and 2 even though there’s been a tremendous increase in advertising rates. Clearly, IPL delivers more than just good ratings for advertisers,” Gupta said. Advertisers on board IPL agree with Gupta. “The IPL mileage has been tremendous for the brand, which is why we are putting in a lot of money into the tournament this year as well,” said George Menezes, chief operating officer of Godrej’s appliances division. Still, electrical goods manufacturer Havells, a prominent sponsor during IPL Season 1 and 2, has been content with spot purchases this year because of the steep rise in cost. “We are participating in IPL this year but the cost to be a sponsor has gone up substantially,” said Vijay Narayanan, vice-president for marketing at Havells. “Since the advertising budget is limited, one cannot put all the money in one property spread across just over a month.” Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:20 pm Survey shows most villages are happy with NREGA’s executionNew Delhi: The Congress-led United Progressive Alliance government’s flagship welfare programme to provide work to poor villagers has done well to provide job cards and ensure timely payments, a survey by independent monitors has found. The residents of nearly two-thirds of villages surveyed said efforts to build awareness about the Mahatma Gandhi National Rural Employment Guarantee Act (NREGA) have been good, but about 30% rated them as poor. NREGA promises 100 days of employment every year to the rural poor. Under the Act, the scheme has to provide work to job seekers within 15 days of their application and wages have to be paid within 15 days after the work is completed.  Job satisfaction: Villagers in Rajasthan build a channel and a wall for water harvesting. Workers in only 10.15% of the surveyed villages were found to be paid less than the government-stipulated minimum wage. Madhu Kapparath/Mint The survey was carried out by so-called national-level monitors in 1,013 villages across 227 districts in February-March, and in 2,387 villages across 249 districts in June-July. The rural development ministry, which oversees the scheme, appointed these monitors to independently evaluate the working of the programme. The findings of the survey were released last week. A ministry official said that most of the findings were similar across states. “There are some common problems like delays in payment of wages, absence of names from muster rolls, lack of awareness about the scheme and financial irregularities,” the official said, requesting anonymity. The monitors reported that payments were never delayed in 42.78% of the surveyed villages, sometimes delayed in 45.52% of the villages and always delayed in 3.39% villages. Workers in only 10.15% villages were found to be paid less than the government-stipulated minimum wage. However, the survey also found out that social auditing of the programme’s implementation was happening in only half the villages, affecting the scheme’s transparency and accountability. The ministry official said that the sample villages were selected in a way that the results were not lopsided. This was confirmed by an expert. “Different states perform differently. For instance, Rajasthan and Andhra Pradesh are doing very well while some others like Bihar and Uttar Pradesh are not. Since this study gives a national picture, all that has to be taken into account,” said S.L. Rao, former director general of the National Council of Applied Economic Research. ruhi.t@livemint.com Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:19 pm Debate | Government should not abdicate its core sector responsibilityMumbai: The public-private-partnership (PPP) model that has been driving infrastructure growth in India can gather momentum only if the government decides to play a more dynamic role as a facilitator and follows the rules of the game transparently, without compromising on the key issue of governance. This was the consensus reached at the Mint Clarity Through Debate Conclave on Infrastructure Challenges, held in Mumbai on Wednesday. Rajiv Lall, managing director and chief executive of Infrastructure Development and Finance Co. Ltd; Y.M. Deosthalee, chief financial officer of Larsen and Toubro Ltd; Sanjay Ubale, managing director and chief executive of Tata Realty and Infrastructure Ltd; Subba Rao Amarthaluru, group chief financial officer of GMR Group; Sonjoy Chatterjee, executive director of ICICI Bank Ltd and M.D. Mallya, chairman and managing director of Bank of Baroda participated in the panel discussion, which was moderated by Tamal Bandyopadhyay, deputy managing editor of Mint. The panellists agreed that there has been a lot of growth in the power sector, roads and ports, and infrastructure spending is rising, but things can move faster. The lack of dispute resolution mechanism, archaic land acquisition norms, a not-so-transparent bidding process and state level intervention, among other things, are slowing the pace of change. While the government needs to play a proactive role, the private sector too should tone down its expectations and look for “reasonable” rather than “extraordinary” returns from their investments.  Time for action: (from left) Subba Rao Amarthaluru, group CFO, GMR Group; M.D. Mallya, CMD, Bank of Baroda; Rajiv B. Lall, MD and CEO, IDFC; Tamal Bandyopadhyay, deputy managing editor, Mint; Y.M. Deosthalee, CFO, Larsen and Toubro; Sanjoy Chatterjee, executive director, ICICI Bank; and Sanjay G. Ubale, MD and CEO, Tata Realty and Infrastructure, participate in the Mint Clarity Through Debate Conclave on Infrastructure Challenges held in Mumbai on Wednesday. Abhijit Bhatlekar/Mint None of them sees any “bubble” as Indian corporations rush to set up power projects, but they caution the investors in this segment as success will depend on how well the projects are executed. Deosthalee set the tone of the discussion, saying there have been a lot of activities in road and power projects but the question is of pace. “While things are happening, it is possible (that) we can expedite a lot of things and there are challenges on that front…in the tendering space, in the execution space and, of course, in the funding space. We need an integrated comprehensive approach in infrastructure development,” L&T’s CFO said. According to Ubale, sectors such as power are witnessing development, but many other sectors remain neglected, especially at the local level. “There are certain vested interest which prevent them from happening,” said Ubale, a former bureaucrat in the Maharashtra government, without elaborating. Lall said infrastructure spending had increased to 7-8% of India’s gross domestic product (GDP) in 2009 from just 3% of GDP in 2003, mainly due to the private sector.  But Lall added that a lot of good work done by the private sector had been brought to nothing because of issues related to governance or government oversight. For example, the container handling capacity of ports has quadrupled and the share of private companies has gone from 35% to over 75%, improving the efficiency of the port sector dramatically. “But what is ironic is that over the same period that we are seeing these efficiency gains, ship turnaround time has actually been deteriorating because the moment you get out of the port and go into the hinterland it’s a complete mess—there is no planning, no coordination, no systematic anticipation on the type of issues that are required to be handled for this capacity to come up,” Lall said. The PPP model The PPP model, in which private companies build a project in association with the government, is unique to India, but the panel discussion revealed a feeling in the private sector that the government is using the model to abandon its responsibilities. Absence of a regulator in infrastructure projects also creates confusion. Ubale pointed out that the National Highway Authority of India often fails to resolve disputes because it is a party to a contract. “These disputes have to be settled in the courts. So, a strong dispute resolution is extremely important. Conflict of interest is another issue because of the tremendous amount of opaqueness in terms of the bidding process,” he said. Amarthaluru of the GMR Group said that it is important for the government to think that it is ultimately the owner of the project even if it is built by a private company. Amarthaluru did not agree with Ubale on the lack of transparency in the bidding process. “Sometime there could be accidents, but by and large it’s a transparent process,” he said. Ubale retorted: “A whole lot of people are trying to make it transparent, but if the accidents happen too frequently then it is a matter of concern.” Deosthalee of L&T said, “One year ago, there were very few accidents but since we had elections there have been far too many accidents.” Amarthaluru said, “The government has to take more responsibility to ensure that these projects are delivered on time... To set up a greenfield project, we are taking about six-seven years. Land acquisition alone is taking two-three years. What is the role of the government in facilitating land acquisition? The proactive role has to come from the government.” Land acquisition Mallya of Bank of Baroda said the PPP model had to evolve over a period of time. “The challenges are in the nature of land acquisition and dispute resolution. In the 11th Plan period, almost Rs20 trillion investment is planned, covering all segments. It cannot happen without the participation of the private sector. The government may not have the resources and execution capabilities. So PPP is relevant as a business model,” he said. Chatterjee of ICICI Bank said challenges on land, environment and funding had to be addressed and the government would have to play an important role. “We are talking about issues in Orissa and Jharkhand, the states that are richer under the ground are some of the poorest above ground. Then, environment is going to be a big challenge. That’s where the government has a key role to play,” he said. Mining, according to Chatterjee, would pose the biggest challenge. “We are talking about 60,000MW (of power generation) in the next three years...and to me the biggest challenge is coal. If you look at requirement of coal five to 10 years from now, we are looking at a gap anywhere between 200-400 million tonnes. I don’t believe that this can be imported,” he said. “There has to be a lot of cohesive work by the government and private sector to make sure environmental clearances are available; it’s built in a sustainable way and there is an inclusive process,” he added. Lall of IDFC said acquisitions should depend on what projects are coming up on the land. “If the land needs to be acquired to build a road then there is a public purpose and the government would want to acquire the land...but if the location is for power generation, I don’t know why the government would (want to) acquire the land. It should let the private party that wins the concession acquire the land,” he said. “The land law goes back to imperial times. It was an imperial government that would take away land for a higher purpose and get away with providing compensation at rates that were not questioned. But now we are what is being characterised as a rowdy democracy and it is a fundamental question, under what circumstances can the government acquire the land,” Lall said. Long-term investment  He also pointed out that by taking exposure to infrastructure projects, banks run the risk of asset-liability mismatches and interest rate mismatches. Besides, they cannot lend too much as there are prudential limits to what extent a bank can lend to a company or a group. Chatterjee of ICICI Bank said once the corporate bond market was developed, funding issues could be taken care of. Mallya wants takeout financing to be made more attractive and banks to be allowed to issue bonds which are long term in nature by giving appropriate sops in terms of relaxation in cash reserve ratio and statutory liquidity ratio. He also favours making use of pension and provident fund money for infrastructure financing. Ubale expects two things from the government and one from the private sector. “One is the overall governance framework. Within this, private sector has incentives to do things. But what drives the government? How do you arrive at incentives for governance? Second is technology. I think there has to be emphasis on technology. Finally, we keep on talking about government but the private sector should also get more transparent and open,” he said. Lall said the government has to be more practical in what it does and what it intends while inviting private sector to invest in infrastructure. The government should not over-regulate, at least “until we have severe surplus capacity” and it “must focus on reinvesting in development of infrastructure.” Finally, “linking fuel availability should be taken as absolute priority”, he said. Deosthalee’s priority is “speedy decision making and planned approach”. “Nobody is taking a comprehensive approach...Someone has to play a facilitating role to bring a holistic approach. And finally, we demand governance from the government,” he said. Source: LatestNews-Home - Livemint.com | 28 Jan 2010 | 12:19 pm RBI survey ups '10-11 growth forecastBut inflation still a worry.Source: Business Standard | Front Page Headlines | 28 Jan 2010 | 11:57 am Smaller IPOs face rough time as market slidesWith the stock markets falling, four initial public offers (IPOs) that opened this week are facing rough times and finding it difficult to get investors.Source: Business Standard | Front Page Headlines | 28 Jan 2010 | 11:55 am India China to be engine of global growth WEF expertsLed by India and China, Asia will not only become the global engine for growth but will also increasingly exercise its influence on the rest of the world, experts at the World Economic Forum (WEF) annual meeting here have said. Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 11:38 am Discovery launches two new channels in IndiaDiscovery Networks Asia-Pacific, a division of media firm Discovery Communications, today launched two new 24-hour channels in the country. Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 11:37 am Canara net up on marginsCanara Bank reported a 50 per cent jump in net profit at Rs 1,053 crore for the October-December quarter compared to Rs 702 crore in the corresponding period last year. Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 8:39 am Tata Tea net up at Rs 92 croreTata Tea reported a 21 per cent increase in its income to Rs 1,554 crore for the third quarter, against Rs 1,286 crore last year.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 8:38 am Apollo hosp net up 32 7Apollo Hospitals Enterprise posted a 32.7 per cent rise in net profit at Rs 43.9 crore for the quarter ended December 31, as compared to Rs 29.53 crore for the same quarter last year.Source: HindustanTimes.com - Top Business News Headlines | 28 Jan 2010 | 8:37 am Asia’s budget airlines eye growth, high fuel costs may hurt profitsSingapore: Asia’s budget airlines will prosper as the region’s economic recovery takes hold and its middle class grows, but rising fuel costs could hurt profits, the industry’s top executives said on Thursday. Low-cost airlines fared better during last year’s global recession than their full-service competitors as individuals and companies looked to cut costs by scaling back expensive business-class travel. Just last week, full-service carrier Japan Airlines Corp. filed for bankruptcy protection after years of heavy losses while Singapore-based low-cost airline Tiger Airways raised $178 million at an initial public offering. Budget carriers are now hoping broad regional economic growth can boost leisure travel in 2010. “The size of the travel market in this region is going to explode as economies come back,” said Garry Kingshott, chief executive adviser for Manila-based Cebu Pacific Air. The region’s growing population, especially in China and Southeast Asia, and high economic growth rates bode well for low-cost airlines as millions of Asians are lifted out of poverty and travel abroad for the first time, experts said. “The creation of first-time middle class households in emerging markets is continuing,” said Yuwa Hedrick-Wong, an economist for MasterCard Worldwide in Singapore. “If you look at the budget airlines, budget travel and so on, these are typical services that the newly-minted middle class use.” Industry executives said higher fuel costs could cut into profits and undermine the cost advantages they have over full-service peers. “I’m sure all of us have sleepless nights worrying about jet fuel prices, the one thing you don’t control,” said Sam Sridharan, chief commercial officer of India’s SpiceJet. Crude oil prices have traded $10 either side of $75 a barrel in recent months after hitting $147 and crashing to $32 in 2008. Most economists say prices could rise this year and breach $100 again during the next two years, straining budget carriers where fuel accounts for up to 40 percent of operating costs. “We all know it’s going to keep heading up and that’s one of the big risks of this industry,” said Brett Godfrey, chief executive of Australia’s Virgin Blue. To stay competitive, executives said low-cost carriers must use the latest technology to cut costs, become more efficient and satisfy customers. Jetstar Airways, based in Melbourne, Australia, plans next month to start sending boarding passes by text message to reduce check-in times. “We have to constantly innovate to stay ahead,” said Jetstar CEO Bruce Buchanan. Source: World Business - Livemint.com | 28 Jan 2010 | 4:01 am Google launches application to type in 14 languagesBangalore: Google on Thursday launched its Transliteration IME, a desktop application that allows users to type in 14 languages using a Roman keyboard with or without an Internet connection. “Users type the word the way it sounds using Latin characters and Google Transliteration IME will convert the word to its native script,” the Internet search engine said in a statement. Google’s Transliteration IME is available as a free download. It was conceived and developed in India at the company’s R&D Centre here and is currently available in 14 languages - Arabic, Bengali, Farsi (Persian), Greek, Gujarati, Hindi, Kannada, Malayalam, Marathi, Nepali, Punjabi, Tamil, Telugu and Urdu. The Google Transliteration IME currently supports Windows 7/Vista/XP. “Our IME enables Indian users whether they are businesses, students, or teachers to create content and communicate effectively in their local language,” Google India senior product manager Rahul Roy Chowdhury said. Google Transliteration is also available on gmail, orkut, Blogger and Knol. Source: Tech News - Livemint.com | 28 Jan 2010 | 3:28 am
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