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Consolidated revenues to grow 20% next year: Dishman PharmaIn an interview with CNBCTV18, VVS Murthy, Chief Financial Officer, Dishman Pharma, spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 8:43 am Sumeet Ind sees Rs 800cr turnover post expansionIn an interview with CNBCTV18, Shankar Lal Somani, Chairman of Sumeet Industries, spoke about his outlook for the company.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 8:41 am Jyothy Labs sees 30% YoY growth in mosquito repellant bizIn an interview with CNBCTV18, Ulhas Kamat, Deputy Managing Director of Jyothy Laboratories, spoke about his outlook for the business.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 8:23 am Gujarat plant to go on stream by mid\'11: Simbhaoli SugarIn an interview with CNBCTV18, Sanjay Tapriya, Chief Financial Officer, Simbhaoli Sugar Mills Ltd, spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 7:48 am Govt to look at lower fiscal stimulus: C RangarajanIndia would make efforts to bring down fiscal stimulus for the economy, and do so in a way that does not disrupt growth, C. Rangarajan, chairman of the prime minister\'s economic advisory council told reporters on Friday.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 7:29 am No dressing down for banker in TV supermodel email blunderAn Australian banker who became an internet sensation after he was caught on live television viewing images of a scantily clad supermodel on his computer will keep his job, Macquarie Bank said on Friday.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 7:20 am Rel Infra to complete Mumbai Metro phase II by 2013In an interview with CNBCTV18, Lalit Jalan, CEO Wholetime Director of Reliance Infra spoke about the companys plans going forward.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 7:08 am After recovery, phase out subsidies: IMF to India!IMF has asked India to phase out subsidies and introduce market-based pricing for petroleum products following its rapid recovery from the global financial crisis.Source: Zee News : Business | 5 Feb 2010 | 6:45 am Dishman Pharma plant receives US FDA approvalDishman Pharmaceuticals and Chemicals Ltd said on Friday its Naroda plant near Ahmedabad has received US FDA approval for producing active pharmaceutical ingredients (API) meant for the US market.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 6:08 am Credible program in place to cut deficit: Greece PMGreece will credibly apply a programme to tackle its fiscal deficit, Prime Minister George Papandreou said on Friday.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 6:08 am Citigroup seeking Chinese securities partner for JVCitigroup Inc Chief Executive Officer Vikram Pandit said the bank is seeking a Chinese partner to set up a local securities joint venture, the official Shanghai Securities News reported on Friday.Source: Moneycontrol Top Headlines | 5 Feb 2010 | 5:29 am Istithmar sells 13% in Spicejet for Rs 160 cr - Business Standard
Source: Business - Google News | 5 Feb 2010 | 3:18 am With Volvo, China eyes merger and acquisition abroad to win at homeThe 47-year-old son of a farmer, Li has been likened to Henry Ford for his ambition to build up a mass manufacturer of affordable cars.Source: Daily News & Analysis: Money News | 5 Feb 2010 | 3:17 am Reliance submits interest in Canadian firmReliance, India's largest listed company with interests in petrochemicals, refining, oil and gas exploration, and retail, is already looking to buy bankrupt petrochemicals maker LyondellBasell.Source: Daily News & Analysis: Money News | 5 Feb 2010 | 3:13 am Toyota woes mount as Prius recall consideredDamage to Toyota's image is growing by the day with the automaker now considering a US and Japanese recall of Prius hybrids - the vehicle that's a symbol of its technological prowess and green car ambitions.Source: HindustanTimes.com - Top Business News Headlines | 5 Feb 2010 | 3:08 am DBS chief seeks expansion in southeast Asia, IndiaSingapore: The new chief of Singapore’s DBS Group plans to earn more from Southeast Asia and India by broadening consumer and private banking services, even as analysts raised concerns about the bank’s latest quarterly earnings boost. In his first news briefing since taking over at southeast Asia’s largest bank late last year, Piyush Gupta, outlined plans to shift the bank’s focus, with southeast and south Asia to account for 30% of revenue in five years, with the same coming from greater China, while Singapore’s share would drop to 40% from 60%. Analysts had earlier said Gupta’s plans would be key in driving the outlook for DBS, which is 28% owned by state investor Temasek. “For the first time in a decade, DBS has a credible strategy in our view,” said Sanjay Jain, who heads research on Asian financials for Credit Suisse in Singapore. “It may not be very different from the path many others have taken (and many have failed), but it’s a good start and half the job is done.” DBS ambitions to build a business beyond its domestic borders have proved elusive in the past due to its reluctance to pay a rich premium for deals and its small presence in Indonesia and India. Last year, Greater China, primarily Hong Kong, accounted for 27% of revenues, and southeast Asia-south Asia just 7.5%. The bank has not been able to build a significant foothold in China, unlike rivals which have bought stakes in domestic lenders there. Greater China outside Hong Kong accounts for only 6% of its income. “Unlike its two major peers, DBS doesn’t have sizeable operations in the fast-growing emerging markets and its outlook largely hinges on the mature economies of Singapore and Hong Kong, which make it less capital-efficient,” Todd Dunivant, head of banking research at HSBC, said in a note. DBS reported a forecast-beating 67% rise in quarterly profit as fee income surged, it dodged larger losses on its exposure to Dubai World and gained from a tax writeback. Gupta, the former Southeast Asia head at Citigroup, said DBS would try to build its existing businesses in Taiwan and Indonesia and broaden consumer banking services in India and China, while focusing on large Asian corporates and the rich. DBS shares closed 1.1% lower at S$14.04, while the benchmark Singapore market lost 2.2%. Clouded By Dubai The bank’s fourth quarter was clouded by its exposure to a unit of Dubai World, which is trying to restructure some $22 billion in debt repayments. Gupta said the Dubai World loan had been classed as non-performing, but Dubai World was still servicing its debt and he was hopeful of a positive outcome to debt talks. “We have chosen to be conservative and taken some provisions,” he said. DBS took S$384 million in bad debt charges, but did not specify how much of that was from loans linked to Dubai World. Overall non-performing loans (NPL) jumped 43% from S$269 million a year earlier. October-December net profit was S$493 million ($348 million) versus S$295 million a year ago, the bank’s second straight quarter of earnings growth. The bank’s year-ago performance, hit by the global crisis, was its worst quarter in three years. Analysts were mostly unimpressed with the result because of the jump in bad debt charges and the boost to earnings from a S$47 million tax writeback. “Bottom line is all a tax adjustment,” said Morgan Stanley’s Matthew Wilson. Analysts had forecast net profit of S$372 million, factoring in big losses from DBS’s exposure to the Dubai World unit, according to the average of five forecasts in a Reuters survey. The outlook for Singapore banks in 2010 has improved on the back of an economic rebound in Asia, feverish capital market activity and a likely decline in bad debt charges. DBS shares have fallen about 7.8% so far this year, less than rival Oversea-Chinese Banking Corp’s 9.2% drop but more than a 6.4% fall in United Overseas Bank stock. Source: World Business - Livemint.com | 5 Feb 2010 | 2:57 am India should start taking steps to reduce deficit debt IMFThe International Monetary Fund has suggested that India should begin fiscal consolidation with the next budget as the deficit has entered into the double digits due to the stimulus measures taken to revive the economy.Source: HindustanTimes.com - Top Business News Headlines | 5 Feb 2010 | 2:54 am India China have major role in revival of global economy IMFThe International Monetary Fund has said India and China are playing a significant role in the revival of the global economy.Source: HindustanTimes.com - Top Business News Headlines | 5 Feb 2010 | 2:45 am Istithmar sells SpiceJet stake for $35 mnMumbai: Dubai World’s investment arm, Istithmar, has sold its entire holding in Indian budget airline SpiceJet, the airline’s spokeswoman said on Friday. Istithmar sold its stake in the airline via block deals to a couple of domestic mutual funds and a foreign institutional investor (FII), for $35.23 million, a source with direct knowledge of the deal told Reuters. “We have been informed that Istithmar World has sold its equity stake in SpiceJet. They remain invested in the company through FCCBs,” a spokeswoman for the airline said in New Delhi. Foreign currency convertible bonds, or FCCBs, are debt instruments with an option to convert into equity shares at a later stage. Istithmar could not immediately be reached for a comment. Bank of America Merrill Lynch was the sole arranger of the Spicejet deal, the source said. Dubai World is seeking to offload assets as part of a restructuring plan after the state-owned conglomerate rocked global markets last November when it asked for a delay on paying $26 billion in debt linked to its main property units. “The aviation sector is turning around in the last two quarters due to increased passenger traffic as well as improvement in the global economic front,” said Alex Mathews, head of research at Geojit BNP Paribas Financial Services. “It could be a better time to exit as Istithmar is trying to encash its assets. The stock has run up sharply after the company swung to profits this quarter” Mathews said. The block deals were struck at an average price of Rs52.12 per share - a 46% increase over the price at the end of September. Though the Asian skies are getting crowded and doggedly competitive, squeezing budget airlines, India may be one of the regions bucking the trend. The shares fell over 5% immediately after the block deals, but had recovered to be down 1.65 percent in afternoon trade, when the Mumbai market slumped 2.6%. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 2:43 am Volvo Q4 loss widens, cautious on market upturnStockholm: World number two truck maker Volvo stayed mired in losses in the fourth quarter as restructuring costs weighed, and it joined rivals in predicting only a gradual market recovery this year with Europe bringing up the rear. In contrast to domestic peer Scania, which churned out forecast-beating profits this week, Volvo lagged expectations. But its healthy cash flow cheered the market and the share price rebounded from initial losses to trade up 3.5% by 0900 GMT, beating a DJ Stoxx autos sector that fell 1.2%. Scania traded down 0.75%. As the truck sector emerges from its worst slump in decades, Volvo said its operating loss sank to 2.3 billion Swedish crowns ($316 million) from a loss of 999 million a year ago. Analysts in a Reuters poll had forecast 519 million. The firm, which has slashed thousands of jobs to bring down costs in the face of the downturn, booked 1.4 billion crowns of costs for restructuring, layoffs and inventory writedowns. Volvo, which makes heavy-duty trucks under the Renault, Mack, UD Trucks and Eicher brands, said it expected only a gradual upturn in fortunes during 2010. “Our current assessment, which is in line with the rest of the industry, is that both the European and U.S. markets for heavy trucks will start off weak and gradually improve during the year,” the company said in a statement. Europe would grow about 10% and the North American market around 20-30%. Mixed bag Volvo’s report drew a mixed reaction. “Operationally, they are just not really sorting out the profitability,” Handelsbanken analyst Hampus Engellau said. “But cash flow was twice as high as I had expected while net debt came down by 9 billion (crowns) during the quarter. That’s positive since it removes some of the talk concerning high net debt.” Volvo said cash flow was positive to the tune of 8.6 billion crowns versus a negative 1.4 billion in the previous quarter. The global financial crisis slammed the heavy-duty truck markets with full force in late 2008, ending years of easy credit for funding purchases of new vehicles and plunging major economies across the world into a tailspin. Demand has stabilised in recent months as government and central bank stimulus has helped economies limp out of recession, but a return to the boom market of only two years ago still looks distant. Truck makers across Europe have resorted to sweeping cost cuts to bolster earnings in the face of the downturn and earlier this week costs cuts helped Scania churn out a smaller-than-forecast fall in pretax profit. But Scania said it expected “a slow spring” for truck sales in Europe, the biggest market for both it and Volvo, amid excess transport capacity and lingering difficulties for customers in obtaining credit. Order boost Volvo, which also manufactures buses, construction equipment, engines and aerospace components, said order bookings for its trucks shot up 179% year-on-year, but the year-ago quarter was extremely weak due to a wave of cancellations. The company said it would gradually raise production to reflect the upturn in orders, but lingering uncertainty about the economic recovery meant the acceleration would be cautious. Among Europe’s other top truck makers, Germany’s MAN AG is due to report on Feb. 15, followed by market leader Daimler on Feb. 18. In a further bid to conserve cash in the face of the market weakness, Volvo proposed paying no dividend for 2009. Analysts had expected the group to set a payout of 1.00 crown per share, down from 2.00 crowns a year earlier. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 2:38 am NTPC FPO pricing could jolt divestment programme Tulsian - Moneycontrol.com
Source: Business - Google News | 5 Feb 2010 | 2:36 am Toyota eyes Prius recall; braking woes hit Ford hybridsTOKYO/DETROIT (Reuters) - Toyota Motor Corp is preparing to recall up to 300,000 of its latest model Prius hybrid cars due to braking problems, in a further blow to the reputation of the world's largest car maker.Source: Reuters: Money News | 5 Feb 2010 | 2:33 am UBS reorganizes US wealth businessThe changes are part of a months-long process McCann has undertaken to revive an 8,000-strong brokerage force battered by a US Internal Revenue Service tax-evasion probe.Source: Daily News & Analysis: Money News | 5 Feb 2010 | 2:32 am BA posts surprise Q3 operating profit, costs fallLONDON (Reuters) - British Airways posted a surprise third-quarter operating profit, reflecting the impact of deep cost cuts and capacity reductions, and said it had adapted to industry changes caused by the global recession.Source: Reuters: Money News | 5 Feb 2010 | 2:26 am Toyota mulling Prius recall after brake concerns - BBC News
Source: Business - Google News | 5 Feb 2010 | 2:25 am Nifty crawls back from 4700 HCL Tech Maruti in green - Moneycontrol.com
Source: Business - Google News | 5 Feb 2010 | 2:25 am FOREX-Euro pressured, dollar rises on risk aversion - Reuters
Source: Business - Google News | 5 Feb 2010 | 2:23 am Gold buying continues as prices hit 3-month lowMumbai: India’s gold buying continued on Friday afternoon, with limited quantities changing hands as prices hit a fresh three-month low, dealers said. “Demand is still coming in but not in big lots as it did yesterday. We must have sold 300-400 kgs yesterday and most of the orders got triggered at $1,060-1,075 (an ounce),” said a dealer with a state-run bank in Mumbai. Demand has slowly picked up from late Thrusday evening, dealers said. International gold was trading at $1,054.70/1,055.70 an ounce, after hitting an intra-day low of $1,050.50, the lowest level since 2 November. “I have orders in lots of 10 kgs and 40 kgs in between $1,045-1,050 (an ounce),” said another dealer with a private bank. However, a weaker rupee, which makes the dollar-quoted asset expensive, weighed on sentiment, dealers added. The Indian rupee weakened on the back of a strong dollar overseas and losses in domestic equities market. India has imported 35-40 tonnes of gold during 1-27 January, up from 9.8 tonnes in the whole of the same month last year, the head of a trade body and bank dealers said. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 2:23 am Kraft gets over 75% of Cadbury, to delist sharesKraft announced on February 2 that it had acceptances of almost 72% of Cadbury's stock to seal its £11.7 billion ($18.4 billion) takeover of Cadbury.Source: Daily News & Analysis: Money News | 5 Feb 2010 | 2:22 am Kraft gets 75% of Cadbury, to delist sharesLondon: Kraft Foods on Friday said it had 75.41% acceptances from Cadbury Plc shareholders on 4 February in its takeover of the British confectioner and will now move to delist Cadbury no earlier than 8 March. Kraft said in a statement that assuming it gets 90% acceptances from Cadbury shareholders it intends to move towards the compulsorily purchase of any outstanding shares of Cadbury. It added that its final offer remains open until further notice and urged all Cadbury shareholders to accept its takeover offer. Kraft announced on 2 February that it had acceptances of almost 72% of Cadbury’s stock to seal its £11.7 billion ($18.4 billion) takeover of Cadbury and create the world’s biggest confectionery group after a near five-month takeover battle. Source: World Business - Livemint.com | 5 Feb 2010 | 2:21 am Kraft gets 75% of Cadbury, to delist sharesLondon: Kraft Foods on Friday said it had 75.41% acceptances from Cadbury Plc shareholders on 4 February in its takeover of the British confectioner and will now move to delist Cadbury no earlier than 8 March. Kraft said in a statement that assuming it gets 90% acceptances from Cadbury shareholders it intends to move towards the compulsorily purchase of any outstanding shares of Cadbury. It added that its final offer remains open until further notice and urged all Cadbury shareholders to accept its takeover offer. Kraft announced on 2 February that it had acceptances of almost 72% of Cadbury’s stock to seal its £11.7 billion ($18.4 billion) takeover of Cadbury and create the world’s biggest confectionery group after a near five-month takeover battle. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 2:21 am Greece PM: credible programme in place to cut deficitNEW DELHI (Reuters) - Greece sought on Friday to overcome sceptics about its commitment to slashing its massive fisal deficit, promising to push through tax laws and other measures to achieve its debt reduction targets.Source: Reuters: Money News | 5 Feb 2010 | 2:20 am ANALYSIS - Aircraft engine makers hope for short-haul refit boostSINGAPORE (Reuters) - Aircraft engine makers will know within months if Airbus will launch a programme to fit more efficient engines to its top-selling single-aisle models, a step that might also prompt rival Boeing to follow suit.Source: Reuters: Money News | 5 Feb 2010 | 2:16 am Govt’s exit strategy must be gradual, says RangarajanMumbai: India is in no hurry to roll back economic stimulus measures in one go but efforts will be made in the budget later this month to lower the fiscal deficit, a top government adviser said on Friday. “It will be calibrated and done in a manner that stimulus in the economy continues to persist and at the same time some adjustment is made as far as the deficit is concerned,” said C. Rangarajan, chairman of the prime minister’s economic advisory council. He was speaking to reporters on the sidelines of a business conference in Mumbai. The government had launched two fiscal stimulus packages since October 2008 worth $4 billion, or 0.4% of GDP, to help Asia’s third-biggest economy cope with the global credit crunch after Lehman Brothers’ collapse. The Reserve Bank of India, which cut its key borrowing rate by 275 basis points in four moves between December 2008 and April 2009, raised the banks’ reserve requirement for the first time in nearly 18 months in its policy review on 29 January. It raised the cash reserve ratio for banks by a higher than expected 75 basis points to 5.75%, to be effective in two stages this month. ”It has been pointed out repeatedly that the process of exit must be gradual, coordinated and must not be sudden, should not disrupt the economy and efforts will be made to bring down the fiscal deficit in the coming budget,” Rangarajan said. India will present its annual budget on 26 February. The government’s fiscal deficit is estimated at 6.8% of gross domestic product for 2009-10 (April-March), higher than 6.2% in the previous year as the government cut tax rates and boosted spending. The economy grew 6.7% in 2008-09, slower than 9% or more in the previous three years. In last week’s policy review, the Reserve Bank raised its 2009-10 growth forecast to 7.5% from 6% projected earlier. Source: Home - Livemint.com | 5 Feb 2010 | 2:12 am With Volvo, China eyes M&A abroad to win at homeNINGBO, China (Reuters) - Once Li Shufu, head of China's Zhejiang Geely Holding Group, closes the deal to buy Ford Motor's Volvo unit for up to $2 billion, the sedate, safety-conscious Swedish brand may be in the running to replace the Audi A6 as Chinese state officials' car of choice.Source: Reuters: Money News | 5 Feb 2010 | 2:11 am Euro zone faces biggest strains since launchPARIS (Reuters) - Facing the most severe economic strains since its birth 11 years ago, the euro zone looks likely to hold together for now but the exit of some of its weaker members cannot be ruled out in the long term.Source: Reuters: Money News | 5 Feb 2010 | 2:08 am Cos eye new opportunities but still ‘nervous’ about recoveryNew Delhi: Amid improving business climate, companies across the globe are increasingly looking at pursuing new opportunities, even as most of them are still cautious about the recovery, says a survey by global consultancy Ernst & Young. According to the survey of senior executives at nearly 900 major companies worldwide, the business environment is quite different compared to a year ago, but most part of the corporate world is still “nervous about recovery”. The survey showed that the percentage of firms looking to pursue new market opportunities in 2010 has risen to 34% from just 19% last year. However, over half (53%) of companies still agreed that surviving 2010 would remain a challenge. “The spirit of optimism has increased, but it is essentially fragile in nature. A pick up in confidence is not surprising, given massive global government stimulus working its way through the economy and the larger developing and emerging economies beginning to rebound,” Ernst & Young Global managing partner - markets John Murphy said. “Companies may be less worried about survival over the next 12 months, but the return to a healthy operating environment is still some way off,” Murphy added. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 1:55 am Suzuki and Mazda lift forecasts on sales, cost cutsTOKYO (Reuters) - Suzuki Motor Corp and Mazda Motor Corp, Japan's fourth- and fifth-biggest car makers, hiked their annual profit forecasts on Friday as they enjoyed higher demand in some markets and cut costs.Source: Reuters: Money News | 5 Feb 2010 | 1:48 am Suzuki quarterly profit jumps, lifts outlookTokyo: Suzuki Motor Corp and Mazda Motor Corp, Japan’s fourth- and fifth-biggest car makers, hiked their annual profit forecasts on Friday as they enjoyed higher demand in some markets and cut costs. Suzuki and Mazda, like other automakers globally, have been slashing fixed costs and boosting production efficiencies to cope with the global economic slowdown, while getting a boost from government incentives on purchases of fuel-efficient cars. Suzuki, owned 19.9% by Germany’s Volkswagen AG following a deal struck in December, has profited from strong sales in India’s fast-growing market, where it is the top player through subsidiary Maruti Suzuki. Suzuki raised its operating profit outlook for the full year to March to ¥50 billion ($558.2 million) from ¥40 billion, though that falls short of the consensus of ¥66 billion from 14 analysts surveyed by Thomson Reuters. “We have a very cautious outlook for the January-March quarter because of concerns on the yen rate and an unclear economic outlook,” a Suzuki spokesman said. “The heavy reliance on India’s car market is a risk.” Suzuki, known for its Swift and Alto hatchback cars, reported a ¥17.99 billion ($201 million) operating profit for October-December, compared with a ¥5.78 billion profit a year earlier and roughly in line with market expectations. Maruti Suzuki said last month that its third-quarter net profit had more than tripled on improved sales. Suzuki holds 54.2% in Maruti and counts India as its single biggest market. Mazda slashes costs Mazda reported an operating profit of ¥11.1 billion for the October-December quarter, a large swing from its ¥24.2 billion loss a year earlier. Sales surged nearly 9% to ¥557.5 billion. The maker of the Mazda3 compact car lifted its full-year operating forecast to a profit of ¥5 billion from a loss of ¥12 billion, against the consensus from 11 analysts for a profit of ¥1 billion. Mazda said sales were strong in markets such as China, Australia and Israel, and that it got a boost from a softer-than-expected yen against the British pound and Australian dollar. Mazda has also been cutting costs by becoming more efficient at procuring raw materials, and slashing bonuses and labour costs by holding down overtime hours, a spokesman said. Prior to the results, Suzuki’s shares closed down 2.1% at ¥2,031 and Mazda fell 4.9% to ¥233, both underperforming a 1.3% fall in Tokyo’s transport equipment subindex. In the past 3 months Suzuki’s shares have fallen 5%, Mazda is up 10% and the sector index has been virtually flat. Source: Home - Livemint.com | 5 Feb 2010 | 1:46 am Markets touch 3-month low; global concerns weighMumbai: Indian shares fell more than 2% on Friday afternoon, as Europe’s sovereign debt, indications of weak US jobs data and a crash in commodity and energy prices raised fresh concerns over global economic recovery. The domestic markets have also taken the brunt of selling by foreign funds, which had earlier invested in emerging markets after borrowing in cheaper dollars. By 12:28pm, the 50-share BSE Index was down 2.46% or 400.62 points, to 15,826.35 points its lowest in three months, with only one component gaining. The 50-share NSE Index was trading down 2.6% at 4,719.65 points. Across-the-board selling was witnessed. Among the index stocks, heavyweight Reliance Industries led the losers and was down 2.4% at Rs994.60. Bank stocks such as private lender ICICI Bank and State Bank of India (SBI) were also among the top losers. ICICI Bank was down 3.8% at Rs797.75, while larger rival SBI was down 3.1% at Rs1,888. Among tech stocks, software bellwether Infosys Technologies was down 2.76% at Rs2,356.40, while larger rival Tata Consultancy fell 2.9% to Rs720.60. Drug maker Ranbaxy Laboratories was down 5.23% at Rs404 after The Economic Times newspaper reported that the US drug regulator asked it to immediately assess whether its plants making drugs for the US market met standards. “What we are seeing is dollar-carry-trade unwinding by foreign investors,” said Neeraj Dewan, director, Quantum Securities. “They borrowed when the dollar was cheap and now that the dollar is recovering, they are unwinding,” he added. The US dollar has surged after investor anxiety about sovereign debt in Greece, Portugal and Spain sparked a sell-off in the euro and growth-linked currencies such as the Australian dollar. “Its a fall-out of that,” said Naresh Kumar Garg, chief investment officer at Sahara Mutual Fund. He said rising inflation in India was also a worrying factor, especially food prices and how the government would tackle it. Dewan said that the current trend of buying on dips and selling on slight rises in the domestic market would continue to determine market trend for the next week or two. “There are some stocks which are still overvalued and we will continue to see selling there,” he said. In the broader market, losers led gainers 1,235 to 74 on a moderate volume of 370 million shares. Source: Home - Livemint.com | 5 Feb 2010 | 1:35 am BSE Sensex extends losses to 3 pct on dayMUMBAI (Reuters) - The BSE Sensex extended its fall to 3 percent in afternoon deals on Friday, as losses in European markets including Spain and Portugal weighed on sentiment.Source: Reuters: Money News | 5 Feb 2010 | 1:29 am Govt's exit strategy must be gradual - PM econ adviserMUMBAI (Reuters) - India is in no hurry to roll back economic stimulus measures in one go but efforts will be made in the budget later this month to lower the fiscal deficit, a top government adviser said on Friday.Source: Reuters: Money News | 5 Feb 2010 | 1:25 am IT raids in Bhopal yield huge amounts of cash - Hindustan Times
Source: Business - Google News | 5 Feb 2010 | 1:04 am India’s economic growth to drive Australian export: RBAMelbourne: Australia’s Reserve Bank has said that Indian economic growth will continue to work in favour of the country’s mineral exporters. Reserve Bank of Australia (RBA) said Indian economy has gradually strengthened over the past two decades and the Asian nation will continue to improve in the years ahead, The Australian daily reported. “The Indian economy looks likely to continue to expand at a relative rapid pace in coming decades and to become an increasingly important part of the world economy,” the daily quoted the bank as saying. RBA had released its quarterly statement on monetary policy on Thursday. The central bank said the rise in India’s prominence in the global economy has been a boost to the Australian economy. “Indian demand for Australia’s exports has risen sharply, with particularly rapid growth over the past decade,” it said, adding that “This has seen India’s share in Australia’s total exports increase to around 6.5 per cent, a four-fold increase in less than a decade.” As per the official data, “India was Australia’s fourth largest export market in the second half of 2009.” RBA said coal exports to India has risen strongly over the past decade is likely to rise in the next few years. It accounted for 40 per cent of total goods exports to India in 2008-09. Liquefied natural gas (LNG) is another likely source of future growth in Australia’s good exports to India. Source: LatestNews-Home - Livemint.com | 5 Feb 2010 | 12:59 am Volvo Q4 loss widens, cautious on market upturnSTOCKHOLM (Reuters) - World number two truck maker Volvo skidded to a wider than expected fourth-quarter loss on Friday, hit by restructuring costs and writedowns, but said its main markets would return to growth this year.Source: Reuters: Money News | 5 Feb 2010 | 12:45 am Ford India launches commercial production of 'Figo'Ford had signed an MoU with the Tamil Nadu government in September last year, under which it would invest an additional Rs1,500 crore to expand the facility.Source: Daily News & Analysis: Money News | 5 Feb 2010 | 12:40 am India, China have major role in revival of global economy: IMF - The Hindu
Source: Business - Google News | 5 Feb 2010 | 12:25 am US FDA makes public warning for Ranbaxy's US facility - Moneycontrol.com
Source: Business - Google News | 5 Feb 2010 | 12:15 am RBI projects big jump in India Inc profitsThe Reserve Bank of India's professional forecasters' survey has upped the projections for the corporate sector's profitability growth in the current as well as the nextSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am NTPC follow-on issue fails to attract retail interestRetail participants appeared to be shying away from the NTPC Follow-on Public Offering (FPO) even on the second day of the issue, their subscription at close of day being only 0.03Source: Business Line - Home Page | 5 Feb 2010 | 12:00 am Finally, industry clicks $50-b export markIf you aim for the sky, you may reach the treetops - and that may well be true of the Indian IT-BPO industry. The 1999 Nasscom-McKinsey report, which fired India's IT ambitions then, had fixed a target of $50 billion in IT and BPO exports bySource: Business Line - Home Page | 5 Feb 2010 | 12:00 am British civil nuclear industry gears up for Indian opportunitiesBritain and India have agreed on the text of a civil nuclear cooperation agreement, paving the way for British nuclear energy companies to access the IndianSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Israel court stops Sun from picking more Taro stakeThe Supreme Court of Israel has asked Sun Pharmaceutical Industries Ltd not to exercise a warrant to purchase additional Taro shares till the time an earlier temporary injunction is in effect, a note from TaroSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Beware too much money flow into commodity derivativesOver the last 5-6 years, commodity futures exchanges, bankers, chambers of commerce and sundry others including economists and analysts have been clamouring for allowing banks, mutual funds and foreign institutional investors to trade in theSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Jaiprakash Power (Rs 65.7): SellWe recommend a sell in the stock of Jaiprakash Power Ventures from a short-termSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Day Trading GuideFresh short position can be initiated if DLF falls below Rs 314, with stiff stop-loss. Utilise rallies to sell ICICI Bank while maintaining tight stop at Rs 840. Infosys fell below the key support at Rs 2,450 in the last trading session. WeSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Every Re 1 hike in diesel to cost Rlys Rs 234 cr annuallyIndian Railways – the single largest high speed diesel consumer in the country at 2.35 billion litres a year – will have to take a hit of about Rs 234 crore annually for every one rupee increase in price ofSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Software, services exports to grow 15% in FY11Bouncing back from the global slump, India's IT and BPO exports are projected to grow 13- 15 per cent in FY11 to $56-57 billion, the growth rate three times that of the current financialSource: Business Line - Home Page | 5 Feb 2010 | 12:00 am Suzuki quarterly profit jumps, lifts outlookSuzuki, like South Korean rival Hyundai Motor Co, has been a major beneficiary of a global shift in consumer preference towards smaller cars.Source: Daily News & Analysis: Money News | 4 Feb 2010 | 11:55 pm Ford India launches commercial production of ‘Figo’Chennai: Ford India launched the commercial production of its compact car ‘Figo’ on Friday at its Maraimalai Nagar plant here. Chief minister M Karunanidhi inaugurated the production of Figo, the company’s first compact car through which it aims to capture a big slice of the booming small car market. Ford had signed an MoU with the Tamil Nadu government in September last year, under which it would invest an additional Rs1,500 crore to expand the facility. The investments include ramping up operations to make new engines for production of Figo. After the expansion, the company would add 1,000 employees to the existing 2,100 at the facility. Ford India currently manufactures mid-size sedan ‘Fiesta’, ‘Ikon’ and SUV ‘Endeavour’ range of vehicles at the facility. Source: LatestNews-Home - Livemint.com | 4 Feb 2010 | 11:53 pm PM backs UN climate panelNew Delhi: Prime minister Manmohan Singh on Friday lent his support to the beleaguered UN climate change panel, saying a glaring error in the body’s key 2007 report did not change the science of global warming. The Intergovernmental Panel on Climate Change (IPCC) has been under fire since revelations last month that its landmark Fourth Assessment Report mistakenly predicted that Himalayan glaciers could disappear by 2035 as a result of global warming. The claim has been traced to the campaign group WWF, which in turn took the prediction from an article in New Scientist magazine in 1999. Addressing a summit on sustainable development, Singh acknowledged that “some aspects of science reflected in the work of the IPCC have faced criticism.” “But this debate does not challenge the core projections of the IPCC upon the impact of greenhouse gas accumulations on temperature, rainfall and sea level rise,” he said. “Let me reassert that India has full confidence in the IPCC process and its leadership and will support it in every way,” said Singh. Environment minister Jairam Ramesh, who questioned the 2035 prediction and earlier slammed the IPCC’s peer-review standards said the government backed the panel’s embattled chairman, Rajendra Pachauri -- an Indian -- “to the hilt.” The controversy has dented the credibility of the IPCC -- which does not carry out its own research -- and given new life to climate sceptics who have questioned the process by which the body publishes data. Pachauri has rejected calls to step down, saying he was not responsible for the error and that he was being targeted for being a vocal advocate of alternative energy and greener lifestyles. Source: Home - Livemint.com | 4 Feb 2010 | 11:42 pm Natuzzi to enter India; targets 70 points of sale by 2012New Delhi: Italian premium leather upholstery player Natuzzi Spa said on Friday it will enter the Indian market by June-July with plans to emerge as a leading player in the estimated $9.4 billion furnishing industry in the country. The company said it will open its first two flagship outlets in Delhi and Mumbai, and has set a target of opening 70 points of sale across the country by end of 2012. “We will introduce both our brands -- Natuzzi and Italsofa -- in the country and our aim is to have 70 points of sales across India of the two brands together by 2012. We will explore multiple formats like flagship stores, mono-brand smaller outlets and galleries in form of shop-in-shops,” Natuzzi country manager India Nitin Bahl told PTI. He said the company will enter the Indian market through the franchise route and investments will be made primarily by individual franchise operators. “Our target is the 12-lakh Indian households with an annual income of over Rs10 lakh. While the Natuzzi brand will be for the major metros, Italsofa will also target Tier I cities like Pune and Chandigarh,” Bahl said. He said the company is looking to clock a revenue of at least 25 million Euro (around Rs162 crore) from the Indian operations by 2012. The USD one billion firm is one of the few furnishing companies listed on the New York Stock Exchange. It currently has over 350 galleries and flagship stores in 123 countries. Source: LatestNews-Home - Livemint.com | 4 Feb 2010 | 11:35 pm Rupee down by 26 paise against dollar in early tradeThe rupee lost 26 paise against the US currency in early trade in line with a meltdown in stock markets.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 11:05 pm Crowded skies squeeze Asia’s budget carriersSingapore: Asian airlines, particularly budget carriers, may be taking off on a high-risk strategy — ordering hundreds of aircraft to offer new routes and more flights, just as growth in low-cost travel is seen slowing. Over the next five years, budget carriers from Malaysia’s AirAsia to Singapore’s Tiger Airways will take delivery of over 500 planes, meaning a capacity increase of 15% a year — double what some observers are forecasting. The real prospect that some budget carriers, and the full-service airlines they compete with, may not survive the dogfight could, in turn, mean billions of dollars of cancelled orders for Boeing and Airbus. Asia has become the largest market for the two big planemakers, accounting for a third of outstanding orders. “Not all airlines will survive,” said Terence Fan, assistant professor at Singapore Management University. “Mid-double-digit growth is a lot to achieve, and the aviation industry has had a lot of ups and downs.” “We’re already seeing Thai Airways, for example, reduce its short-haul flights from Bangkok because of competition from low-cost carriers,” Fan added. Fan, who last year published a paper on Europe’s passenger airline industry, noted around 130 airline start-ups there in the 10 years to 2006. Only about 50 survived, and that number has since fallen further. While Ryanair and Easyjet have thrived and become major players in Europe, others such as SkyEurope, described by consultancy Skytrax as the best low-cost carrier in Eastern Europe, have gone bankrupt, Fan said. Asian low-cost carriers have grown rapidly over the past decade and now account for 14% of intra-Asia travel, according to Airbus estimates. Indonesia’s Lion Air, for example, has outstanding orders and options for over 100 Boeing 737-900s, each with a list price of around $80 million. AirAsia will boost its Airbus A320 fleet to 175 planes by end-2015 from 70 now. Slowing growth But, while budget carriers achieved compounded growth of 38% between 2001-09, the overall intra-Asia market expanded at just 6%, Airbus figures showed. Boeing said this week it expects new orders for commercial aircraft to fall short of deliveries, with no increase in demand until 2012. Boeing had gross orders from airlines for 263 planes last year, but net orders of 142 planes after cancellations. Airbus had gross orders of 310 planes and net orders of 271. Alex Glock, Asia Pacific managing director for Brazilian planemaker Embraer, said the golden years for low-cost carriers ended with the global financial crisis, when many suffered falling demand, much like the full-service airlines. In the last two years, the number of low-cost carriers in Asia Pacific fell to 17 from 20, and the number of flights dropped to 11,956 from 12,034. Glock sees regional demand growing at an average annual rate of 7%, following a spike in the next two years as traffic returns to pre-recession levels. ”Even though low-cost carriers grew more than the regional average, the growth spurt has passed,” he said. Many of Asia’s budget airlines are also losing money. In India, a host of low-cost and conventional airlines have emerged to challenge state-owned Air India and Indian Airlines and, in Macau, Viva is seeking financial assistance from the government to stay afloat. Even so, analysts expect low-cost carriers to do better than the overall industry by opening new routes and picking up market share from second-tier flag carriers such as Indonesia’s Garuda. ”This sector will continue to gain market share particularly in Asia’s emerging economies. The region is dynamic, has huge populations with vast physical distances and enjoys rising incomes,” said Tan Teng Boo, CEO of Malaysian-based Capital Dynamics, which manages $300 million. But Tan said he does not own airline shares. ”The airline business, though glamorous, is very tough. The industry has loads of players and airlines don’t have pricing power. It’s essentially a commodity business with very high capital requirements and low margins.” Source: LatestNews-Home - Livemint.com | 4 Feb 2010 | 11:04 pm Sensex tanks 434 points on global cuesMarketmen said investors sold shares heavily after a steep fall in the US and Asian stocks markets over poor US job data.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 11:02 pm Ambuja Cements slips after weak earnings - NDTV.com
Source: Business - Google News | 4 Feb 2010 | 10:56 pm Istithmar sells SpiceJet stake for Rs1.6 billion rupeesIstithmar sold its stake via two block deals for a total consideration of around Rs1.6 billion to a couple of domestic funds and an FII.Source: Daily News & Analysis: Money News | 4 Feb 2010 | 10:55 pm Mitsubishi: may supply 'global car' to PeugeotMitsubishi is planning to introduce a new model called "global small car" in 2011 with a price tag of 1 million yen.Source: Daily News & Analysis: Money News | 4 Feb 2010 | 10:45 pm Oil rebounds from 2010 lows as dollar pares gainsSingapore: Oil edged up on Friday after its biggest one day fall since July the previous day, as intervention by the Swiss National Bank to buy euros pared dollar gains. The dollar index, a measure of the greenback’s performance against six major currencies, had earlier touched its highest in seven months as concern deepened about worsening fiscal problems in south European countries. But sentiment remains fragile ahead of key US non-farm payrolls number out later in the day, which could show unemployment continuing to rise in the world’s largest economy, especially after an unexpected increase in US jobless claims. US crude oil for March delivery gained 24 cents to $73.38 a barrel at 10:53am. On Thursday it touched a 2010 intraday low of $72.42 and closed down 5% London ICE Brent for March rose 8 cents to $72.21. “The dollar has weakened a bit from before and people tend to look to the dollar for guidance,” said Clarence Chu, an energy trader at Hudson Capital Energy in Singapore. “The crisis in Europe, Greece, Portugal, Spain is going to put downward pressure on the euro until they are able to sort it out and confidence returns.” The euro leapt against the Swiss franc on Friday following the Swiss intervention, after earlier plunging to a 15-month low against the franc and tumbling to its lowest level in more than eight months against the dollar. Investors sold off stocks in Portugal, Spain and Greece on Thursday as market fears over the fiscal problems of debt-laden southern members of the euro zone widened. The head of the International Monetary Fund called for painful steps to cut huge fiscal deficits across Europe, saying no country should be under the illusion it was possible to escape the financial crisis without paying the cost. Oils losses on Thursday came after the futures posted their biggest daily percentage gain in four months on Thursday, up 3.8%. But they are still about 50% lower than the record above $147 in July 2008, having shed about $11 from a 15-month high close to $84 on 11 January. Traders and brokers at several firms said they suspected Thursday’s sell-off in crude was also linked to a hedge fund quickly unloading a big oil position. A sudden rush of volume in front-month New York Mercantile Exchange (NYMEX) crude oil futures trading during the final moments of open-outcry trading on Wednesday was followed Thursday by the fifth-highest trading volume on record for the contract at nearly 500,000 lots. “If my fund had cash trouble and I needed the money, I would sell whatever I can,” Chu said. “It’s definitely possible that we’ll test oil’s lows for the year, especially if the employment number disappoints,” Chu said. Source: Home - Livemint.com | 4 Feb 2010 | 10:44 pm Rupee weak; share fall, strong dollar weighMumbai: The Indian rupee weakened on Friday on the back of a strong dollar overseas and losses in domestic equities market. At 11am, the partially convertible rupee was at Rs46.5450/5500 per dollar, weaker than Thursday’s close of Rs46.24/26. “There is global risk aversion and FII (foreign institutional investors) numbers are almost negative. Correspondingly, in the last few days, there has been a huge amount of dollar demand from oil companies,” said Madhusudan Somani, head of foreign exchange trading at Yes Bank. On Friday, the euro fell to its lowest in more than eight months against the dollar, at $1.3669 on trading platform EBS, on deepening investor concern about worsening fiscal problems in the euro zone. The dollar index, a measure of its performance against six major currencies, was up 0.30%. The benchmark BSE stock index was trading down 2.15% almost as low as its early fall on Friday. The subdued response to a $1.8 billion share sale by state-run NTPC, the country’s top power producer, added to the rupee’s weakness, dealers said. “The dollar-rupee was not rising as there was an expectation that NTPC flow will come. But the response to the NTPC issue was disappointing. The issue was not fully subscribed on the first day,” Somani said. NTPC’s share issue was three-quarters subscribed on its first day. “For the day, the negative sentiment due to poor appetite for NTPC, global market cues and dollar strength against majors will be key drivers,” R.K. Gurumurthy, head of treasury at ING Vysya Bank said. Yes Bank’s Somani expects the rupee to trade in a band of 46.40-46.60 in the day. “With 46.44-50 level broken, the next technical level is looking higher at 46.80, where the market should find some support,” Somani said. In morning trade, the rupee touched a low of 46.46 and a high of 46.57. Source: Home - Livemint.com | 4 Feb 2010 | 10:32 pm Ford offers fix for Fusion hybrid brake glitchThe Ford decision came the same day US safety regulators opened a formal probe into consumer complaints that brakes on Toyota's 2010 Prius had momentary problems.Source: Daily News & Analysis: Money News | 4 Feb 2010 | 10:31 pm Toyota seeking recall of Prius cars in JapanJapan's top automaker has sold about 200,000 units of the new Prius model since its debut last May in Japan.Source: Daily News & Analysis: Money News | 4 Feb 2010 | 10:27 pm Inox buys further 7.2% stake in Fame IndiaMumbai: Multiplex operator Inox Leisure Ltd said on Friday it bought 7.2% stake in rival Fame India Ltd through a block deal, two days after acquiring 43.3% in a similar way. Inox will now make an open offer for an additional 20% stake considering the latest deal, it said in a statment to the stock exchange. In early trade on the BSE, Inox bought 2.5 million shares in a block deal at a price of Rs50.75, it added. On Wednesday, Inox said it paid Rs664.8 million for the 43.3% stake in Fame. Source: LatestNews-Home - Livemint.com | 4 Feb 2010 | 10:12 pm Sensex tanks 434 points on global cues dips below 16000 markThe Bombay Stock Exchange benchmark Sensex today tanked 434 points to 15,790 points in early trade in line with the meltdown in overseas markets. Marketmen said investors sold shares heavily after a steep fall in the US and Asian stocks markets as poor US job data stoked concerns over the strength of an economic recovery.Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 10:04 pm Arun Sarin honoured with British awardNew Delhi: Arun Sarin, the former CEO of Vodafone has been honoured by the Queen with the British award for his services to communications industry. Other prominent winners for the 2010 British awards are Prof Dr Jürgen Karl Erich Schlaeger (for services to Anglo-German relations), Sister Mary Aengus Fitzpatrick (for services to the performing arts in Northern Ireland), Mrs Vera Heller de Bergengruen (for services to UK-Uruguay cultural relations), Dr Kranti Rajesh Hiremath (for services to the Police Service in Scotland), Mrs Margaret Mary McGovern (for services to Jersey Hospice Care), Mr John Simon Pinto (for services to Consular Section, British Deputy High Commission, Mumbai), Mr (Franz Konrad) Dieter Rollecke (for service to the British military community in Germany). The British honours system rewards individuals’ personal bravery, achievement, or service to the United Kingdom. More details are awaited. Source: World Business - Livemint.com | 4 Feb 2010 | 9:29 pm Arun Sarin honoured with British awardNew Delhi: Arun Sarin, the former CEO of Vodafone has been honoured by the Queen with the British award for his services to communications industry. Other prominent winners for the 2010 British awards are Prof Dr Jürgen Karl Erich Schlaeger (for services to Anglo-German relations), Sister Mary Aengus Fitzpatrick (for services to the performing arts in Northern Ireland), Mrs Vera Heller de Bergengruen (for services to UK-Uruguay cultural relations), Dr Kranti Rajesh Hiremath (for services to the Police Service in Scotland), Mrs Margaret Mary McGovern (for services to Jersey Hospice Care), Mr John Simon Pinto (for services to Consular Section, British Deputy High Commission, Mumbai), Mr (Franz Konrad) Dieter Rollecke (for service to the British military community in Germany). The British honours system rewards individuals’ personal bravery, achievement, or service to the United Kingdom. More details are awaited. Source: Home - Livemint.com | 4 Feb 2010 | 9:29 pm Fame India sees block deal for 7.3 pct shares - Reuters India
Source: Business - Google News | 4 Feb 2010 | 9:13 pm India may mull Shariah bankingUnion minister for corporate and minority affairs Salman Khurshid said that his ministry was open to seeking the views of experts on interest-free banking.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:49 pm Mumbai-Aamby Valley City flight service takes offCivil aviation minister Praful Patel on Thursday inaugurated the first non-scheduled flight service between Aamby Valley City - the countrys first integrated hill city spread over a 4,294 hectare expanse off Lonavla - and Mumbai.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:45 pm FDI inflows up 10% in DecIndia received $1.5 billion foreign direct investment in December 2009, an increase of over 10% over that in the same month of previous year, a government official said on Thursday.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:42 pm Indian economy set to grow at 8.5% in 2010-11Morgan Stanley raised its forecast for Indias economic growth to 8.5% in 2010/11 from 8% earlier, citing a pick-up in domestic consumption and said interest rates would climb as inflation accelerates.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:40 pm Ranbaxys corrective actions have been inadequate: FDAUS Food and Drug Administration (FDA) has said Ranbaxy is not taking adequate corrective measures to meet regulatory requirements even after receiving warning letters from it.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:37 pm NHAI seeks 60% increase in total expenditure in 10-11Aiming to award maximum number of projects to achieve the ambitious target of building 20 km of highways per day, NHAI has sought a significant hike in its total annual outlay on roads from the Centre for next financial year.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:34 pm Govt eyes Rs 1.20 lakh crore mop-up in direct tax in Q4Early trends of the direct tax collections for the last quarter of this fiscal (January-March) indicate that the government is likely to mop up an all-time high of anything above Rs 1.20 lakh crore.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:31 pm Sun Pharma barred from buying more Taro stakeIsraeli drug firm Taro, which is fighting a takeover battle with Mumbai-based Sun Pharma, on Thursday said that the Supreme Court of Israel has debarred the Indian firm from acquiring further stake in the company.Source: India Business News | Business News - Times of India | 4 Feb 2010 | 2:30 pm Pulses may douse the inflation fireAnnual food inflation has picked up for the second consecutive week, with the food price index rising 17.56 per cent in the 12 months to January 23, higher than an annual rise of 17.40 percent in the previous week, data released on Thursday showed.Source: Business Standard | Front Page Headlines | 4 Feb 2010 | 12:31 pm Sahara set to buy out Siva from Aamby ValleyThe Sahara Group is set to buy out C Sivasankaran, the billionaire serial investor, from its flagship project, Aamby Valley City, near Lonavala in Maharashtra.Source: Business Standard | Front Page Headlines | 4 Feb 2010 | 12:30 pm Parikh's flat tax deflates diesel car makers' plansManufacturers that mainly sell diesel cars like Mahindra & Mahindra, Tata Motors, Toyota, Mercedes, BMW and Volkswagen anticipate a significant fall in sales if the government accepts the Parikh committees recommendation of a flat tax of Rs 80,000 on diesel cars, because of a widening cost differential with petrol variants.Source: Business Standard | Front Page Headlines | 4 Feb 2010 | 12:28 pm IT spending bounces backBusiness spending on technology goods and services is returning as the economy mends, pumping new life into suppliers such as Cisco Systems Inc., though it has been slower to reach other sectors. The big maker of networking gear on Wednesday posted a 23% jump in quarterly profit and 8% gain in revenue, its first such increases in a year.  Road to recovery: Chambers says Cisco’s growth was too uniform across products, geographies for it not to signal a greater shift in the economy. Chris Ratcliffe / Bloomberg Cisco’s results add to a growing body of evidence that companies are starting to open their wallets after the recession. The commerce department last week said business spending on equipment and software rose at a 13.3% annual rate in the fourth quarter, adjusting for inflation. That was the fastest growth since early 2006. Still, spending was 18.5% below the level it reached in late 2007. Just to keep pace with depreciation, economists reckon companies will need to continue raising capital-spending levels in the quarters to come. That might happen, especially with improved corporate profits helping to fuel optimism. Through Tuesday night, with 255 companies in the Standard and Poor’s (S&P) 500 having reported, earnings were 47% higher than a year ago, excluding financial services companies whose troubles last year would skew the figures. Sales growth was 3.8% so far, excluding financial services companies, noted S&P. Chambers said that Cisco’s return to growth was partly a result of a rising tide. Cisco’s growth “was too uniform” across product lines and geographies for it not to signal a greater shift in the economy, he said in an interview. Companies appear particularly eager to spend on technology, which forms the backbone of many corporate infrastructures and can boost productivity. As a result, Cisco and its peers, which fell into a severe slump starting in the fourth quarter of 2008, have rebounded sooner than companies in other sectors, such as industrial equipment. While most of the tech sector’s initial gains came from selling products such as laptop computers and smart phones to consumers, recent results point to improvement in sales to business. Intel Corp. last month said revenue for the division that sells chips for corporate server systems rose 42%. Sybase Corp., known for database software that is popular among financial services companies, last week reported a 34% jump in profit for the period ended in December—which it characterized as the best quarter in its history. Signs of capital spending outside the tech sector have been gloomier. Though many companies are predicting a rebound, the evidence of a turnaround has been scant so far. General Electric Co.’s revenue fell 10% in the fourth quarter, on declining orders for industrial equipment and the shrinkage of GE Capital, for example, while hydraulic parts maker Parker Hannifin Corp. said revenue declined 12%. Telecommunications provider Verizon Communications Inc., for one, said sales to businesses fell in the fourth quarter and added it wasn’t seeing any significant pick-up yet in capital or technology spending by its largest customers. “The signs of recovery are slow,” John Killian, Verizon’s chief financial officer, said last week. Cisco is one of the first tech companies to report earnings that include January. The company is widely seen as a barometer for the tech industry because its customers span a variety of industries and sizes.  For its fiscal second quarter ended 23 January, Cisco’s profit was $1.85 billion (around Rs8,530 crore), up from $1.5 billion a year ago. Revenue rose to $9.8 billion from $9.1 billion a year earlier. Before these results, Cisco had experienced four straight quarters of declining sales and profits, including a 13% revenue drop in the October quarter. For the current quarter, Cisco forecast revenue would rise 23-26% from a year ago. The results sent shares of the company up 3.6% to $23.90 in after-hours trading, after closing at $23.07 in 4p.m trading on the Nasdaq on Wednesday. Cisco’s bullish outlook holds particular weight as it was among the first companies to say the downturn, once limited to the financial sector, was affecting the rest of the economy. Also, Cisco has a track record of emerging from recessions and continuing to grow. A high-flier during the dot-com era, Cisco suffered a revenue decline when that bubble burst and took several years to fully recover. But Cisco nearly doubled its revenue between 2004 and the start of the current recession, as businesses invested in their infrastructure as the Internet took on an increasingly important role in day-to-day business. Chambers said Cisco would “continue to be very aggressive” and didn’t plan to stop expanding. He added that Cisco, which trimmed its workforce last year, expects to hire between 2,000 and 3,000 new workers during the next several quarters. The company currently has just over 65,000 employees. wsj@livemint.com Justin Lahart and John Shipman contributed to this story. Source: Home - Livemint.com | 4 Feb 2010 | 11:45 am Low margins, high costs hit ACC A section of cement analysts say that while realizations are a bit higher than the year-ago period, it is lower than expectations by around Rs90-100 per tonne. Exposure to Uttar Pradesh and southern markets, where prices were lower, could be one of the reasons. Other expenditure, which analysts reckon to be payment towards consultancy charges as well as discounts, has increased total expenses. As a result, the operating profit, which was higher year-on-year (y-o-y) by around 6%, dropped 32% sequentially to Rs466 crore in the December quarter. Operating profit margins, too, fell sharply from 33% to 23% during the sequential periods.  Graphic: Ahmed Raza Khan / Mint It’s not surprising then that the net profit in the last quarter dipped both sequentially and y-o-y to Rs242 crore. ACC closed 2009 with earnings per share of Rs83, compared with Rs58 in the previous year. ACC’s share price fell 3% on Thursday to Rs856. While some analysts believe this could be the rock bottom in terms of performance for ACC, how soon it would recover depends on the revival in cement prices. January has indicated a marginal rise in prices across the country, but capacities are expected to be commissioned through the current year, which may lead to stagnation in prices. Write to us at marktomarket@livemint.com Source: Home - Livemint.com | 4 Feb 2010 | 10:38 am Foreign drug makers may lose monopolyMumbai: Foreign pharmaceutical firms may lose their monopoly over more than a dozen medicines in India this year unless they can prove the drugs are being manufactured locally and are available at reasonable prices. The intellectual property office wrote in December to all drug makers that have been awarded patents in India since 2006 under an amended law, asking them for information about the working of their patents by 31 March or face a penalty of up to Rs10 lakh. Similar notices were sent to patent holders across sectors—engineering, information technology and so on. If the drug makers cannot show they have met their obligations within the three-year window granted to them, the office can revoke monopoly rights over patented drugs and issue compulsory licences to local manufacturers. Since most of the product patents in the drug sector started in 2006, the window is closing now. The December notice was sent under the Patents Act, last amended in 2004 to bring Indian laws in line with the worldwide trade related intellectual property rights (TRIPS) agreement under the World Trade Organization. An important drug likely to come under immediate scrutiny is peginterferon alfa-2a, used to treat hepatitis C. Sold by the Indian subsidiary of Swiss drug maker F Hoffmann-La Roche Ltd under the brand name Pegasys, it was the first drug to get a product patent under the new legal regime in March 2006. Two other important medicines that will complete three years of patent protection in 2010 are erlotinib, used to treat lung cancer; and valgancyclovir, which works against the HIV infection. These are also sold by Roche, under the brand names Tarceva and Valcyte, respectively. The Indian subsidiary of the world’s largest drug maker, Pfizer Inc., sells two drugs that were granted Indian patents in 2007 and may soon come under patent scrutiny. These are sunitinib, sold as Sutent and used for treating kidney cancer; and maraviroc, sold as Selzentry to AIDS patients. All these drugs have been imported since they were launched in the local market soon after the patent grant. Some of them cost Rs1 lakh or more for a month’s treatment. The Act mandates patent holders to annually inform the granting authority, among other things, whether the patented product is being imported or manufactured locally, the quantity sold, and the price. P.H. Kurian, controller general of patents, designs and trademarks, said his office would make the information publicly available after its compilation. This will give the “interested parties” a chance to apply for compulsory licences to produce and sell products whose patents have not been worked locally, he told Mint. Ranjit Shahani, president of the Organisation of Pharmaceutical Producers of India (OPPI), which lobbies for foreign drug makers active in India, pointed to a loophole. “The Patents Act does not preclude importation...in explicit terms. It is, therefore, permissible to import the patented invention,” said Shahani, who is also the vice-chairman and managing director of Novartis India Ltd. Interpreting “working” as manufacturing in India, Shahani said, would violate the TRIPS agreement, which lays down that “patent rights will be enjoyed without discrimination according to...whether products are imported or produced locally”. Roche did not respond to emailed questions. A Pfizer executive said it shared OPPI’s views on the subject. But Dilip G. Shah, secretary general of the Indian Pharmaceutical Alliance, an industry lobby of Indian drug makers, said “working” the patent in the local market could only mean local manufacture. “Import can be considered as working of the intellectual property right in smaller markets, as it will be unviable,” he said. “But in the case of India, this provision cannot be applied. There are about 17 to 18 drugs, the so-called new chemical entities, under patent protection in India.” Shamnad Basheer, a professor of intellectual property law at the National University of Juridical Sciences, Kolkata, said the Patents Act stipulated that a patent cannot be used merely to enjoy a monopoly. India could argue its regime is geared towards creating employment and facilitating technology transfer. By importing drugs, drug makers are denying this to the country, he said. The accessibility of patented drugs is another contentious issue. In 2008, the Delhi high court ruled in favour of India’s generic drug maker Cipla Ltd selling a copycat version of Roche’s patented erlotinib (Tarceva), saying it enhanced patients’ access to the drug. OPPI director general Tapan Ray said only 35% of Indians had access to modern medicines, against 85% in China and 43% even in Africa. ch.unni@livemint.com Source: Home - Livemint.com | 4 Feb 2010 | 10:26 am Toyota s troubles spiral with US safety probeUS authorities ordered a probe into braking problems in Toyota's Prius hybrid, piling fresh woe on the world's top carmaker already facing a two-billion-dollar bill from massive safety recalls. Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:50 am Peek to launch its email device in India soon Bangalore: In an era of multi-tasking mobile phones, US-headquartered Peek Inc. intends to soon launch in India a hand-held device that would only access email.  The eponymously dubbed Peek is being currently test marketed and would be commercially launched in a few weeks, Peek India chief executive Siddarth Mangharam said. The instrument would cost Rs3,999 and monthly rental for the email service would be pegged at Rs299. It would initially be available only on Aircel Ltd’s service but would later include other cellular operators too, Mangharam said. There are some who aren’t sure whether Peek would have many takers. “Indian consumers typically want as many features as possible in the same device,” said Vivek Shenoy, an analyst at market research firm Valuenotes Database Pvt. Ltd. “So when an aspiring user can opt for a smartphone for about Rs7,000, which does so much more than just emails, I’m not sure how compelling will be the new gadget that only does email.” The so-called smartphones enable users to access short messaging service and email, besides plain vanilla voice calls. They also sport cameras, music players, FM radios, games and a variety of other applications. These phones, including Research In Motion Ltd’s BlackBerry, Nokia Oyj’s E-Series phones and Apple Inc.’s iPhone, are becoming increasingly popular across the world and in India due to their versatility. A BlackBerry can be bought in India for about Rs16,000 and its email service costs about Rs300 a month. Some experts are, however, unwilling to dismiss Peek’s chances. “India with its 542 million mobile subscriber base will always have a market for all kinds of gadgets,” said Harish Bijoor, chief executive officer of brand and business strategy firm Harish Bijoor Consults Inc. “Peek’s appeal is the fact that it does one thing but does it well.” The instrument sports a Qwerty keyboard, weighs about 100g and has an onboard 16MB memory. It supports POP (Post Office Protocol), IMAP (Internet Message Access Protocol) and Microsoft Exchange protocols and would sync seamlessly with popular email services such as Gmail, Yahoo or Hotmail. It can sync three email addresses at a time. Mangharam said the India operations of Peek will offer customized solutions to enterprise customers. “A sales representative could come out of a meeting and file the status report or update automatically on mail about the customer call.” He said Peek would be successful in India because a large user base is only now graduating to using email on the go. “There is a vast market between a basic functional device and the top end BlackBerry market, which will discover the joy of using mobile email,” Mangharam said. “Peek will succeed because of that market.” Lison Joseph contributed to this story. Source: Tech News - Livemint.com | 4 Feb 2010 | 9:43 am I can t comment on political takeEconomist Kirit Parikh, chairman of the committee on revision of fuel prices, submitted his report to the government on Wednesday. In an exclusive interview with the Hindustan Times, Parikh shared his views on the political and economic implications of his recommendations.Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:34 am CII to railways be investor friendlyIndia Inc wants the railways to become investor-friendly, so that the private sector can collaborate with it.Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:29 am Apex court grants bail to Satyam scam auditorThe Supreme Court granted bail to PriceWaterhouse auditor Talluri Srinivas, arrested for his alleged role in doctoring Satyam Computer's accounts in collusion with firm's founder B Ramalinga Raju and others to show a fictitious and fraudulent profit of Rs 7,136 crore.Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:29 am Infy changing pricing modelIT bellwether Infosys is making a major shift in the way it bills its clients. The company is gradually shifting from the employee-linked pricing model, in which the billing often takes place on the basis of time and material, to an outcome-based model, where the work done determines the rates, reports Vivek Sinha.Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:07 am India growth seen back on track IMFIndia's economic growth should be back on track by the next financial year even if the United States and other rich nations remain in the doldrums, the International Monetary Fund said Thursday. Source: HindustanTimes.com - Top Business News Headlines | 4 Feb 2010 | 9:06 am US Jan retail sales move into positive territoryNew York: January sales at top US retail chains moved into positive territory from last year’s decline as many avoided drastic clearance sales and shoppers redeemed holiday gift cards. Costco Wholesale Corp and Limited Brands, owner of Victoria’s Secret, were among the early reports on Thursday that came in ahead of Wall Street expectations. Apparel retailers Hot Topic and Wet Seal posted declines that were even worse than forecast. According to a preliminary tally of 12 retailers tracked by Thomson Reuters data, five retailers beat estimates, while six came in below forecast. An additional 18 store chains were due to report. Analysts on average had expected sales at stores open at least one year to rise 2.5% for the month, according to Thomson Reuters data, rebounding from a 5.7% drop in January 2009. The figures could mark the fifth consecutive monthly sales increase after a year’s worth of declines during the recession, as consumers slowly return to spending and retailers lower prices to match a more circumspect shopper. December same-store sales rose a stronger-than-expected 2.9%, helped by a late holiday shopping surge. January is seen as the least important month of the holiday fourth quarter, accounting for the smallest portion of its sales. But with retailers avoiding the drastic clearance sales that hurt January sales a year ago and consumers cashing in on gift cards received in December, analysts said some of these companies could raise their earnings forecasts. Signal for the quarter Retailers’ comments about sales trends - especially whether traffic weakened significantly at the end of January - may signal how consumers will spend this quarter. Some analysts worry that stronger-than-expected holiday sales pulled spending forward so that retailers could have a hard time luring shoppers in the first quarter, especially if cold weather crimps demand for spring merchandise. Costco said same-store sales rose 8% in January, better than the 7.8% increase expected by analysts, according to Thomson Reuters data. The wholesale club benefited from a 25% jump at its international divisions. Same-store sales at Limited Brands rose 6%, topping a Wall Street view for a 0.5% increase. Late on Wednesday, skate and snow-boarding inspired retailer Zumiez Inc posted a surprise 1.8% rise in January sales, while analysts forecast a 2.3% drop. At Hot Topic, January same-store sales fell 13.1%, missing Wall Street estimates for the third straight month. The teen clothing retailer also said it expected fourth-quarter earnings to be at the low end of its previous outlook of 18 cents to 20 cents a share. Sales at Hot Topic, which sells rock ‘n´ roll-inspired clothing as well as music and accessories, have weakened in the absence of new must-have products like its hugely popular “Twilight” merchandise. By category, analysts expected the worst performance to be from teen and children’s apparel retailers, with sales forecast to decline 0.8%. The segment is on track to post its 19th consecutive drop in same-store sales, according to Thomson Reuters data. Source: World Business - Livemint.com | 4 Feb 2010 | 5:25 am
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