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After RIL, other suitors line up for Canada\'s VCICanadian oil sands company Value Creation Inc (VCI), which is said to have been approached by Indias Reliance Industries (RIL) for a takeover, has now seen other suitors line up, CNBCTV18 reports quoting sources.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 8:39 am Supreme Petrochemicals expects Rs 2200cr rev in next 1.5yrsIn an interview with CNBCTV18, MP Taparia, Chairman of Supreme Petrochemicals, spoke about his outlook for the company.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 8:21 am Whats buzzing in Avaya Global?Online Enterprise solutions provider Avaya Global Connect, the 59% arm Avaya, US, has reported its first quarter results for FY10. Revenues came in at Rs 137.18 crore, while it turned in a net profit of Rs 10.85 crore for the quarter.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 7:52 am HCL Tech plans to merge arms with itself, eyes new spotsEven after buying Axon, HCL Technologies Ltd is still hungry for acquisitions. Chief Executive Officer of the USD 2.3 billion offshore IT and software development company, Vineet Nayyar told CNBCTV18 in an exclusive interview defined the company\'s aggressive acquisition strategy.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 7:44 am See 1518% topline growth going forward: Sun TVIn an interview with CNBCTV18, Ajay Vidyasagar, Chief Operating Officer, Sun TV Network Ltd, spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 7:42 am GS Auto targets to double turnover going forwardSurendar Singh, Managing Director of GS Auto said the company plans to raise approximately Rs 1011 crore through the allotment of warrants.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 7:31 am Fight for Fame: Does ADAG have a case?In an interview with CNBCTV18, Shuva Mandal of ABZ and Abizer Diwanji of KPMG gave their views on the big fight for Fame.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 6:22 am Politics at play in Toyota woes; no trade wars seenUS politics look to be playing a role in Washington\'s harsh response to safety problems battering Toyota\'s reputation, but no one expects a replay of the bitter trade wars that frayed ties and jolted currencies decades ago.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 5:52 am Renault India to restructure Mahindra JVThe Indian unit of French carmaker Renault said on Tuesday its fouryearold joint venture with Indian utility vehicle maker Mahindra Mahindra to make the nofrills Logan sedan would be restructured.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 5:52 am Expect to complete Phase I of expansion by Dec:Sujana MetalIn an interview with CNBCTV18, S Hanumantha Rao, Director Finance, Sujana Metal Products, spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 9 Feb 2010 | 5:43 am Paypal suspends payment transactions in India!Online payment service provider Paypal has said it suspended certain types of payment transaction in India.Source: Zee News : Business | 9 Feb 2010 | 5:07 am Domestic car sales jump 32 percent in January!Domestic passenger car sales have increased 32.28 percent to 145,905 units in January from 110,300 units in the same month last year.Source: Zee News : Business | 9 Feb 2010 | 5:07 am Greek bailout speculation lifts euro - Reuters
Source: Business - Google News | 9 Feb 2010 | 3:14 am Rupee extends gains tracking shares; weak dollar - Economic Times
Source: Business - Google News | 9 Feb 2010 | 3:09 am Subscribe to ARSS Infrastructure IPO: SPA Securities - Moneycontrol.com
Source: Business - Google News | 9 Feb 2010 | 3:00 am Sensex hovers near 16000; Grasim, Infosys up - Economic Times
Source: Business - Google News | 9 Feb 2010 | 2:59 am Renault to build car distribution network in India - The Hindu
Source: Business - Google News | 9 Feb 2010 | 2:48 am ANALYSIS - In China, housing boom spreads to the poor centreXINYANG, China (Reuters) - Fan Wenbao swears he is not in the business of speculating on property. Already the owner of one home in Xinyang, a grimy city in the poor central province of Henan, he bought two more there last year.Source: Reuters: Money News | 9 Feb 2010 | 2:46 am GMR Infra wins road contract from National Highways Authority of IndiaGMR Infrastructure Ltd said on Tuesday its consortium has been awarded a road construction project from the National Highways Authority of India.Source: Daily News & Analysis: Money News | 9 Feb 2010 | 2:46 am BSNL 3G rollout crosses 300 cities aims 400 by FY 10State-run telecom operator BSNL said on Tuesday that it has rolled out 3G services in more than 300 cities in the country and plans to extend it to another 100 by the end of this fiscal.Source: HindustanTimes.com - Top Business News Headlines | 9 Feb 2010 | 2:44 am Google warns Chinese knock-off to stop using logoSHANGHAI (Reuters) - Google Inc has sent a cease and desist letter to the operators of a Chinese search website whose logo bears a close resemblance to its own.Source: Reuters: Money News | 9 Feb 2010 | 2:44 am Rupee extends gains tracking shares; weak dollarMumbai: The Indian rupee extended gains in afternoon trade on Tuesday tracking a largely weaker dollar overseas and also boosted by gains in the domestic sharemarket. At 3:00pm, the partially convertible rupee was at Rs46.65/66, stronger than its close of Rs46.83/84 on Monday. Dealers said there was also some exporter interest in selling dollars after the sharp fall in the rupee to seven-week lows in the previous session. The index of the dollar against six majors currencies was down 0.3%. Indian shares were trading about 0.8% higher. One-month offshore non-deliverable forward contracts were quoted at Rs46.63/73, little weaker compared to the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs46.69, with the total traded volume on the two exchanges at about $3.7 billion. Source: Home - Livemint.com | 9 Feb 2010 | 2:44 am Rupee extends gains tracking shares; weak dollarMUMBAI (Reuters) - The rupee extended gains in afternoon trade on Tuesday tracking a largely weaker dollar overseas and also boosted by gains in the domestic sharemarket.Source: Reuters: Money News | 9 Feb 2010 | 2:42 am Dec industrial output seen up 12 pct y/yREUTERS FORECAST: Industrial output to rise 12 percent in December from a year earlier, the median forecast in a poll of 21 economists shows. That is marginally higher than an annual rise of 11.7 percent in November.Source: Reuters: Money News | 9 Feb 2010 | 2:41 am Toyota adds new Prius to global recall listTOKYO (Reuters) - Toyota Motor Corp said it is recalling nearly half a million of its flagship Prius and other hybrid cars for braking problems as it seeks to address criticism over the handling of its worst safety crisis.Source: Reuters: Money News | 9 Feb 2010 | 2:24 am Aegon Religare gets Rs850 million infusionReligare Enterprises owns 44%, Dutch insurer Aegon 26% and Bennett, Coleman & Co Ltd 30% in the life insurance venture that began operations in India in July 2008.Source: Daily News & Analysis: Money News | 9 Feb 2010 | 2:15 am Acer Q4 net profit up 25%; lags forecastTaipei: Acer, the world’s No.2 PC brand, reported fourth-quarter earnings that lagged expectations, as it continued in its quest to expand its market share by aggressively selling low-cost netbook PCs. Acer said in a statement on Tuesday that it made a net profit of T$3.51 billion ($110 million) in the October-December quarter, below market expectations for T$4.08 billion but better than the T$2.81 billion recorded a year earlier. “We’re now watching to see how Europe is going to fare with the recent volatility in the euro,” said Vincent Chen, an analyst at Yuanta Securities. “Margins may come under pressure if the weakness continues, and that may hit Acer this year.” For the whole of 2009, Acer posted a net profit of T$11.35 billion, lower than the T$11.74 billion it recorded in 2008. The company did not give any guidance in the statement, but its chairman J.T. Wang has previously said he expects the company’s unit shipments to rise by between 35 and 40% this year, helped by growing demand in emerging markets. Fourth-quarter operating profit margin rose by 0.1 percentage points from a year earlier to 2.9%, Acer said, above the company’s previous guidance of 2.8 %. “Acer is being very aggressive in its quest to gain more market share,” said Jenny Lai, an analyst with CLSA. “It’ll have to keep watch very closely on price erosion, which is a big factor that may weigh very heavily on it.” Acer is the market leader in the low-cost netbook PC segment — low-power notebook PCs optimised for Internet surfing and other web activities. It overtook rival Dell as the world’s No.2 PC brand last year. Its shares have fallen about 10% so far this year, roughly in line with the benchmark TAIEX share index. Source: LatestNews-Home - Livemint.com | 9 Feb 2010 | 2:13 am Hathway Cables doesn't leave much of upside: Sharekhan - Economic Times
Source: Business - Google News | 9 Feb 2010 | 2:06 am Nissan returns to Q3 profit, lifts forecastYOKOHAMA, Japan (Reuters) - Nissan Motor Co, Japan's third-largest automaker, returned to quarterly profit on Tuesday and lifted its outlook for the second time, as brisk global sales signal the worst may be over for the auto industry.Source: Reuters: Money News | 9 Feb 2010 | 2:05 am Google may add social networking features to Gmail: reportNew York: Internet giant Google is looking to add new social features to its e-mail service, Gmail, in its bid to compete with popular social networking sites like Facebook and Twitter, a media report says. “Google Inc is taking a swipe at Facebook Inc and Twitter Inc with a new feature that makes it easier for users of Gmail to view media and status updates shared online by their friends,” The Wall Street Journal said. Attributing to people familiar with the matter, the report stated that Google could announce the new Gmail features as soon as this week. The change adds a module to the Gmail screen that would display a stream of updates from individuals a user chooses to connect with, it added. It is a format popularised by Facebook and Twitter. Last year, another internet major Yahoo Inc has added a similar feature to Yahoo Mail which allowed users to see whether friends have uploaded a photo to a site like Flickr. The new stream would eventually include content that a user’s connections share through Google’s YouTube video site and Picasa photo service, WSJ said citing a person familiar with the matter as saying. Google’s move comes after Facebook last week rolled out a new design with a message inbox that more closely resembles an email inbox like Gmail’s. The social-networking company said it had roughly 400 million users. Gmail had 176 million unique visitors in December, as per comScore data. Source: Tech News - Livemint.com | 9 Feb 2010 | 2:02 am Google may add social networking features to Gmail: reportNew York: Internet giant Google is looking to add new social features to its e-mail service, Gmail, in its bid to compete with popular social networking sites like Facebook and Twitter, a media report says. “Google Inc is taking a swipe at Facebook Inc and Twitter Inc with a new feature that makes it easier for users of Gmail to view media and status updates shared online by their friends,” The Wall Street Journal said. Attributing to people familiar with the matter, the report stated that Google could announce the new Gmail features as soon as this week. The change adds a module to the Gmail screen that would display a stream of updates from individuals a user chooses to connect with, it added. It is a format popularised by Facebook and Twitter. Last year, another internet major Yahoo Inc has added a similar feature to Yahoo Mail which allowed users to see whether friends have uploaded a photo to a site like Flickr. The new stream would eventually include content that a user’s connections share through Google’s YouTube video site and Picasa photo service, WSJ said citing a person familiar with the matter as saying. Google’s move comes after Facebook last week rolled out a new design with a message inbox that more closely resembles an email inbox like Gmail’s. The social-networking company said it had roughly 400 million users. Gmail had 176 million unique visitors in December, as per comScore data. Source: LatestNews-Home - Livemint.com | 9 Feb 2010 | 2:02 am Subex to raise Rs 48 cr by allotting shares to promoter - Business Standard
Source: Business - Google News | 9 Feb 2010 | 2:01 am Politics at play in Toyota woes; no trade wars seenTokyo: US politics look to be playing a role in Washington’s harsh responseto safety problems battering Toyota’s reputation, but no one expects a replay of the bitter trade wars that frayed ties and jolted currencies decades ago. That’s in large part because while Toyota Motor Corp as No.1 seems an easy target, Japan firms overall are no longer seen as the competitive threat that once rocked US confidence. “It is part of a US protectionist mood basically against foreign firms,” said Takuji Okubo, chief economist at Societe general Securities in Tokyo. “But it is different from the 1980s or the first term of (US president Bill) Clinton, when there were trade spats and the exchange rate moved according to political noise,” he said. “So far, it’s a Toyota problem. I think the US’ main target is still China and the Chinese exchange rate.” Toyota’s troubles deepened on Tuesday as the carmaker recalled its flagship Prius hybrid in Japan for braking problems, one day before a top executive was to testify to Congress at a hearing in front of the House Oversight Committee in Washington. US safety authorities and members of the administration have accused Toyota of responding too slowly to problems related to uncontrolled acceleration that have been linked to up to 19 deaths in the United States over the past decade. No one is suggesting a US conspiracy to topple Toyota. But many in Japan do see more than a hint of US domestic dynamics at work — from last year’s bankruptcies of General Motors and Chrysler and charges that lax bank regulation led to the financial crisis, to the tough spot President Barack Obama’s Democrats are in ahead of November mid-term elections. “Of course Toyota has some problems, but I feel like it is getting beaten on,” said Kazuo Akatsuka, who works at a factory making Prius hybrids in Toyota City, central Japan. “In the US, two car makers have gone under and I feel like some people might be using this as an opportunity. I might not go so far as to call it malicious, but there is something there,” said Akatsuka, who has worked for Toyota for 35 years. Fear Of Fraying Japanese media and analysts have been critical of Toyota’s handling of its quality problems, but have also pointed to signs of US protectionism that some fear could further fray ties already soured by a feud over a US airbase on Okinawa island.’ “For the Obama administration, which is worrying about its falling support rates, the best way of letting off steam about the jobless situation is to target Toyota, which has overtaken the Big Three,” wrote Kazutaka Oshima, president of Rakuten Investment Management. The US government now owns 60% of General Motors and nearly 10% of Chrysler. “This is a kind of show, so to speak,” said Koji Endo, managing director of Advanced Research Japan, referring to the Congressional hearings. “So it’s going to be a very, very difficult situation. We’re not talking about the pure recall-related business situation here. We’re probably talking about something else, and that’s not necessarily friendly political consideration against Toyota.” Tough talk by US Transportation Secretary Ray LaHood last week, including a pledge to “hold Toyota’s feet to the fire”, also fanned speculation that US regulators were trying to deflect criticism that they, too, had dropped the ball. Some analysts warn that assumptions of politically motivated Toyota bashing are overdone. “Secretary of Transportation LaHood’s inappropriate comments created an adversarial political climate that will take time to recede,” said Michael Auslin at the American Enterprise Institute in Washington. “However, there is no evidence that the US government would be so reckless as to try to intentionally harm Toyota to benefit the car company it now owns, GM,” he said. A huge imbalance in US auto trade with Japan is a longtime irritant that has received more attention of late. But few foresee a return of the mid-1990s friction, when Tokyo’s huge trade surplus sparked yen-boosting jawboning by US officials. Nor do they expect the sort of “Japan Bashing” symbolised by members of Congress smashing a Toshiba radio-recorder on Capitol Hill in 1987. Toyota’s status as a major employer in America could also dampen some of the fuss. “It’s not going turn into scenes of beating a Toyota Prius with a sledge hammer on Capitol Hill,” said Brad Glosserman, director of research at think tank Pacific Forum CSIS. Source: Home - Livemint.com | 9 Feb 2010 | 1:41 am Politics at play in Toyota woes; no trade wars seenTokyo: US politics look to be playing a role in Washington’s harsh responseto safety problems battering Toyota’s reputation, but no one expects a replay of the bitter trade wars that frayed ties and jolted currencies decades ago. That’s in large part because while Toyota Motor Corp as No.1 seems an easy target, Japan firms overall are no longer seen as the competitive threat that once rocked US confidence. “It is part of a US protectionist mood basically against foreign firms,” said Takuji Okubo, chief economist at Societe general Securities in Tokyo. “But it is different from the 1980s or the first term of (US president Bill) Clinton, when there were trade spats and the exchange rate moved according to political noise,” he said. “So far, it’s a Toyota problem. I think the US’ main target is still China and the Chinese exchange rate.” Toyota’s troubles deepened on Tuesday as the carmaker recalled its flagship Prius hybrid in Japan for braking problems, one day before a top executive was to testify to Congress at a hearing in front of the House Oversight Committee in Washington. US safety authorities and members of the administration have accused Toyota of responding too slowly to problems related to uncontrolled acceleration that have been linked to up to 19 deaths in the United States over the past decade. No one is suggesting a US conspiracy to topple Toyota. But many in Japan do see more than a hint of US domestic dynamics at work — from last year’s bankruptcies of General Motors and Chrysler and charges that lax bank regulation led to the financial crisis, to the tough spot President Barack Obama’s Democrats are in ahead of November mid-term elections. “Of course Toyota has some problems, but I feel like it is getting beaten on,” said Kazuo Akatsuka, who works at a factory making Prius hybrids in Toyota City, central Japan. “In the US, two car makers have gone under and I feel like some people might be using this as an opportunity. I might not go so far as to call it malicious, but there is something there,” said Akatsuka, who has worked for Toyota for 35 years. Fear Of Fraying Japanese media and analysts have been critical of Toyota’s handling of its quality problems, but have also pointed to signs of US protectionism that some fear could further fray ties already soured by a feud over a US airbase on Okinawa island.’ “For the Obama administration, which is worrying about its falling support rates, the best way of letting off steam about the jobless situation is to target Toyota, which has overtaken the Big Three,” wrote Kazutaka Oshima, president of Rakuten Investment Management. The US government now owns 60% of General Motors and nearly 10% of Chrysler. “This is a kind of show, so to speak,” said Koji Endo, managing director of Advanced Research Japan, referring to the Congressional hearings. “So it’s going to be a very, very difficult situation. We’re not talking about the pure recall-related business situation here. We’re probably talking about something else, and that’s not necessarily friendly political consideration against Toyota.” Tough talk by US Transportation Secretary Ray LaHood last week, including a pledge to “hold Toyota’s feet to the fire”, also fanned speculation that US regulators were trying to deflect criticism that they, too, had dropped the ball. Some analysts warn that assumptions of politically motivated Toyota bashing are overdone. “Secretary of Transportation LaHood’s inappropriate comments created an adversarial political climate that will take time to recede,” said Michael Auslin at the American Enterprise Institute in Washington. “However, there is no evidence that the US government would be so reckless as to try to intentionally harm Toyota to benefit the car company it now owns, GM,” he said. A huge imbalance in US auto trade with Japan is a longtime irritant that has received more attention of late. But few foresee a return of the mid-1990s friction, when Tokyo’s huge trade surplus sparked yen-boosting jawboning by US officials. Nor do they expect the sort of “Japan Bashing” symbolised by members of Congress smashing a Toshiba radio-recorder on Capitol Hill in 1987. Toyota’s status as a major employer in America could also dampen some of the fuss. “It’s not going turn into scenes of beating a Toyota Prius with a sledge hammer on Capitol Hill,” said Brad Glosserman, director of research at think tank Pacific Forum CSIS. Source: World Business - Livemint.com | 9 Feb 2010 | 1:41 am Trade ministry wants export incentives keptKOLKATA, India (Reuters) - Trade ministry has asked the finance ministry to continue providing incentives to exporters, the junior trade minister said on Tuesday.Source: Reuters: Money News | 9 Feb 2010 | 1:28 am Renault India to restructure Mahindra JVMUMBAI (Reuters) - The Indian unit of French carmaker Renault said on Tuesday its four-year-old joint venture with Indian utility vehicle maker Mahindra & Mahindra to make the no-frills Logan sedan would be restructured.Source: Reuters: Money News | 9 Feb 2010 | 1:20 am Toyota adds new Prius to global recall list - Reuters
Source: Business - Google News | 9 Feb 2010 | 1:19 am Aegon Religare gets Rs85 crore infusionMumbai: The founders of Aegon Religare Life Insurance has put in Rs85 crore of additional capital in the venture to fund expansion, it said on Tuesday. Religare Enterprises owns 44%, Dutch insurer Aegon 26% and Bennett, Coleman & Co Ltd 30% in the life insurance venture that began operations in India in July 2008. The additional capital, that would take the total paid-up capital in the company to Rs550 crore, was invested in accordance with the shareholding pattern, Aegon Religare Life Insurance said in an e-mailed statement. The additional capital would be used to support distribution network, it said without elaborating. Source: LatestNews-Home - Livemint.com | 9 Feb 2010 | 1:11 am Nissan returns to Q3 profit, lifts forecastYokohama: Nissan Motor Co, Japan’s No.3 carmaker, said it returned to profit in the third quarter from a year earlier and lifted its outlook for the second time this financial year, buoyed by brisk sales globally. Nissan joins Toyota Motor Corp and Honda Motor Co in raising annual forecasts, underscoring the recovery in the global auto market as government incentives spur sales and the global economy picks up following its worst downturn in decades. For the year ending in March, Nissan, in which France’s Renault SA holds a 44% stake, now expects an operating profit of 290 billion yen, up from the 120 billion yen profit it forecast in November. That compared with the average 210 billion yen estimate in a poll of 19 analysts by Thomson Reuters I/B/E/S. Nissan had initially projected a second straight year of losses, but it revised its outlook to a profit three months ago as government incentives helped ramp up sales in China. Nissan reported an operating profit of ¥134.07 billion ($1.5 billion) for the October-December quarter, swinging from a loss of 99.19 billion yen a year earlier. The result beat the average estimate of 80 billion yen from three analysts. It also posted a net profit of ¥44.97 billion, against a loss of ¥83.16 billion a year earlier. Shares of Nissan have risen 8.7% in the last three months, outperforming the Nikkei stock average’s 1.7% gain. Nissan shares closed up 2.4% at ¥731 before the results announcement, against a 0.2% fall in the Nikkei. Source: Home - Livemint.com | 9 Feb 2010 | 1:06 am Google to update Gmail status a la FacebookGoogle Inc. is all set to rival Facebook Inc. and Twitter Inc. with a new feature that makes it easier for users of Gmail to view media and status updates shared online by their friends according to a report on the Wall Street Journal website.Source: HindustanTimes.com - Top Business News Headlines | 9 Feb 2010 | 1:00 am Shares seesaw; techs rise, financials fallMumbai: Indian shares were trading 0.3% higher on Tuesday after flip-flopping as mixed Asian markets offered little comfort and euro zone’s sovereign debt troubles kept investors wary. Export-focused software stocks rose while financials were among the losers. By 10:37 a.m. (0507 GMT), the 30-share BSE index was trading up 0.27% at 15,978.66, with one-third of its components declining. The benchmark has dropped more than 8% so far in 2010, after rallying 81% in 2009. Traders said heavy selling by foreign funds in recent sessions, largely due to concerns in their home market, was keeping the market under pressure. Foreign funds have withdrawn around $1.7 billion from Indian equities in the last 10 sessions, after ploughing in about $17.5 billion in 2009. IT bellwether Infosys Technologies rose 1.5% and Tata Consultancy Services and Wipro climbed 1.7% and 1.6% respectively, after the rupee hit a seven-week low in the previous session. “Valuations have turned attractive for the IT sector. Also, depreciating rupee is helping to an extent,” said Harit Shah, a research analyst with Karvy Stock Broking. Private-sector lenders ICICI Bank and HDFC Bank shed 0.1% and 0.3% respectively. “For banks, things are not likely to improve this quarter,” said R.K. Gupta, managing director of Taurus Mutual Fund. “Treasury income is likely to be subdued and credit offtake and asset quality are still a concern.” Mortgage lender Housing Development Finance Corp dropped 0.2%, but top lender State Bank of India bucked edged up 0.1%. Energy giant Reliance Industries, which has the highest weight on the Sensex, dropped 0.4% to Rs992.05. Tata Steel, the world’s eighth-largest steel maker by output, gained 1.1% to Rs539.70, after declining 4.5% in the previous session. In the broader market, gainers led losers in a ratio of 1.7:1 on volume of 92 million shares. The 50-share NSE index was up 0.3% at 4,775.40. Stocks on the move Jet Airways was up 2.3% atRs484.70 , after the Mint newspaper reported the largest Indian private carrier was in initial talks with FedEx Corp to launch a dedicated cargo airline. Strides Arcolab was up 4.8% at Rs287.40 as the drug maker said it had received US Food and Drug Administration nod for its generic hypertension drug. Source: Home - Livemint.com | 9 Feb 2010 | 12:38 am Rising milk prices may fuel India inflation CitiRising prices of milk and dairy products are a potential pressure point for food inflation, Citigroup said in a recent note.Source: HindustanTimes.com - Top Business News Headlines | 9 Feb 2010 | 12:37 am After record Jan car sales, India seen steaming into FebNEW DELHI (Reuters) - Monthly car sales touched a record high in January as customers bought vehicles ahead of possible tax hikes in the Feb. 26 budget and experts said the momentum would continue until then.Source: Reuters: Money News | 9 Feb 2010 | 12:35 am After record Jan car sales,India seen steaming into Feb - Reuters
Source: Business - Google News | 9 Feb 2010 | 12:34 am Koutons Retail to open 200 stores by FY11Mumbai: Retailer Koutons Retail India plans to open 200 stores in FY11 in addition to its existing 1,400, a senior official said on Tuesday. Of the 200 stores, 100 would be family concept stores, which would include women and children’s wear, Akash Deep Sandhu, general manager of sales and marketing, said on the sidelines of the Asia Retail Congress Summit. “We are moving from the men’s model to the family concept model as it creates a bigger shopping basket,” he said, adding the family concept model was still in the initial stages. Koutons has 150 family store outlets across India at present. Sandhu said the expansion would not require any significant investment from the company’s side as it would be done primarily through the franchise route. “We have had major successes through the franchise route in the past, we do not want to disturb that,” he said. The firm will also consider opening stores in the Middle East and South East Asia in the next fiscal, he said. He did not provide details. He also said that banks were still tight in lending to the retail sector, adding the firm has not yet set a capex for the next fiscal. “Banks are currently tight on lending. They need to be more liberal and understand our potential so as to give a push to the retail sector,” he said. Sandhu said that it would take 6 months to a year for India’s retail sector to recover fully from the economic slowdown. “People are still wary and they will start evaluating their buying patterns after 6 months to 1 year. We see retail standing up (then) currently it is reclining,” he said At 1:05 p.m., shares in Koutons were up 2.55% at Rs382.75 in the Mumbai market that was up 0.85%. Source: Home - Livemint.com | 9 Feb 2010 | 12:23 am January car sales rise 32%New Delhi: Indian monthly car sales touched a record high in January as customers bought vehicles ahead of possible tax hikes in the 26 February union budget and experts said the momentum would continue until then. Market watchers expect finance minister Pranab Mukherjee to begin reversing cuts in factory gate taxes, which would increase prices of everything from soaps to cars, when he presents the budget for the 2010-11 fiscal year (April-March). Such expectations would give a more-than-normal lift to February sales, a month when consumer enthusiasm generally wanes in anticipation of tax cuts and lower prices, analysts said. “It’s a concern,” said Surjit Arora, autos analyst at brokerage Prabhudas Lilladher. “In February, the trend should continue,” he added, as people were advancing their purchases. In January, firms sold 145,905 cars, the highest-ever monthly figure, the Society of Indian Automobile Manufacturers (SIAM) said. They had sold 110,300 units a year ago. India, along with the world’s top car market China, is a bright spot for automakers, with SIAM forecasting vehicle sales growth of 12-13% for the fiscal year commencing on 1 April. Between April 2009 and January 2010, vehicle sales have expanded 24% to nearly 10 million units, on a low base and helped by tax cuts and softening loan rates. Making India more attractive to automakers is its domestic demand, coming from a large affluent population that is loosening its purse-strings, unlike in mature markets where government incentives have cushioned sales. Sales in the United States rose an annual 6% in January, while Japanese sales were up 37%. Chinese sales continued their robust expansion and scrappage incentives gave European markets strong growth. In 2009, the Indian auto index trebled in value, outpacing the Mumbai market’s 81% rise. So far in 2010, the sector index has declined slightly less than the broader market. Margin pressure But analysts and industry officials are concerned about rising commodity prices that threaten to shave off profit margins. Any hike in interest rates could dampen sentiment as auto loans would get pricier, they said. The Indian central bank is seen raising its key lending rate by April, after it moved to tighten liquidity by increasing banks’ reserve requirements. “All these factors should start impacting from the first quarter of fiscal 2010/11,” Prabhudas’ Arora said. Sales of trucks and buses more than doubled to 110,300 units, reflecting bustling economic activity. Motorcycle sales rose 43.7% to 650,633 units, SIAM said. Source: Home - Livemint.com | 9 Feb 2010 | 12:16 am Oil below US$ 72 in Asian tradeNew York's main futures contract, light sweet crude for delivery in March, was down 24 cents to US$ 71.65 a barrel.Source: Daily News & Analysis: Money News | 9 Feb 2010 | 12:10 am Renault India to restructure Mahindra joint venture"We are exploring all options. A final decision on this will be taken in 30 to 45 days," chief operating office Sudhir Rao, Renault India said.Source: Daily News & Analysis: Money News | 9 Feb 2010 | 12:03 am TRAI consultation paper on 4G policy soonThe auction for 3G spectrum may be delayed by over two years, but the Telecom Regulatory Authority of India on Monday said it was planning to bring out a consultation paper on introducing fourth-generationSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Govt wants ‘back-up' for Chinese power gearWorried at the prospect of well over 35,000 MW of new power generation capacity coming up using Chinese equipment, the Prime Minister's Office has directed the Power Ministry to come up with an action plan to ensure adequate support mechanism forSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Food inflation: Onus wholly on CentreThough the Conference of Chief Ministers on soaring food prices convened by the Prime Minister, Dr Manmohan Singh, at New Delhi on February 6, at times predictably degenerated into a hunt for scapegoats, with everyone pointing fingers at everyoneSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Nutrient-based subsidy system may take off in AprilThe much-talked-about nutrient-based subsidy (NBS) system for fertilisers may finally take off from AprilSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am SEZ exports more than double in Apr-Dec '09Despite the global financial crisis, exports from Special Economic Zones (SEZ) during April-December 2009 were Rs 1,51,785.49 crore, a 127 per cent growth from the same period last year. SEZ exports during April-December 2008 were Rs 66,638Source: Business Line - Home Page | 9 Feb 2010 | 12:00 am CSO pegs 2009-10 growth at 7.2% on industrial progressA lower-than-expected decline in agricultural output, and a robust recovery in industrial performance have led the Central Statistical Organisation (CSO) to peg the GDP growth estimate for 2009-10 at 7.2 per cent, substantially higher than theSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Day Trading GuideNote: In a buy recommendation, the resistances would be the targets and the nearest support would be the stop loss; In a sell recommendation, the supports would be the targets and the nearest resistance would be the stop loss; The recommendationSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Geographical divide in cement industry AP drags southern performanceThe South has proved to be a drag on the cement industry's performance during April-December 2009 over the same period in the previous year. In the southern region, cement despatches increased just five per cent compared to double digit growth inSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Rate hike fears kindle borrowers' appetiteWorried that borrowing costs will increase over the next few months, Central public sector undertakings, corporates and banks are likely to hurry with their borrowing programmes through bondSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Rolta India (Rs 179.4): SellWe recommend a sell in the stock of Rolta India from a short-term perspective. It is evident from the charts that the stock's intermediate-term uptrend which started in March 2009 low of Rs 40.7, encountered significant resistance in the band ofSource: Business Line - Home Page | 9 Feb 2010 | 12:00 am Ex-Intel executive pleads guilty to fraudNew York: A former Intel executive pleaded guilty Monday to charges he fed confidential information about the computer-chip maker to wealthy hedge fund manager Raj Rajaratnam, his old friend and central figure in a massive insider trading case. “I gave Raj Rajaratnam the information because of my friendship with him,” Rajiv Goel told a judge in federal court in Manhattan. “I cannot express how sorry I am.” Goel, 51, of Los Altos, Calfornia, became the ninth defendant to plead guilty out of 21 charged so far in the case. He faces up to 20 years in prison at sentencing on 28 May but could receive far less time because he agreed to cooperate with the investigation as part of a plea deal. Prosecutors allege Rajaratnam, the Sri Lanka-born portfolio manager for the Galleon Group hedge fund, pocketed up to $50 million through a network of cheating executives at financial firms and companies privy to inside information. He denies wrongdoing. Goel, a resident of Los Altos, California, was a director of strategic investments at Intel Capital, the investment arm of Intel Corp., until he left the company last year. He was arrested in October on conspiracy and securities fraud charges alleging that he supplied secret details about Intel’s investments to Rajaratnam — conversations prosecutors say were caught on wiretaps. Rajaratnam allegedly made a profit of $579,000 off the information and paid Goel through a personal brokerage account. In his plea, Goel said he met Rajaratnam after coming from India to attend the University of Pennsylvania’s Wharton School of Business in the early 1980s. After the two graduated and Rajaratnam built a hedge fund empire that made him one of the richest men in America, they remained close friends who sometimes took family vacations together, he said. “Though we lived very different lives, we maintained a strong connection,” he said. Goel admitted giving Rajaratnam inside tips about Intel’s investments and returns in 2007 and 2008. “I knew it was wrong to give Raj Rajaratnam confidential information,” he said. Goel remains free on $750,000 bail. Source: Home - Livemint.com | 8 Feb 2010 | 11:50 pm Ex-Intel executive pleads guilty to fraudNew York: A former Intel executive pleaded guilty Monday to charges he fed confidential information about the computer-chip maker to wealthy hedge fund manager Raj Rajaratnam, his old friend and central figure in a massive insider trading case. “I gave Raj Rajaratnam the information because of my friendship with him,” Rajiv Goel told a judge in federal court in Manhattan. “I cannot express how sorry I am.” Goel, 51, of Los Altos, Calfornia, became the ninth defendant to plead guilty out of 21 charged so far in the case. He faces up to 20 years in prison at sentencing on 28 May but could receive far less time because he agreed to cooperate with the investigation as part of a plea deal. Prosecutors allege Rajaratnam, the Sri Lanka-born portfolio manager for the Galleon Group hedge fund, pocketed up to $50 million through a network of cheating executives at financial firms and companies privy to inside information. He denies wrongdoing. Goel, a resident of Los Altos, California, was a director of strategic investments at Intel Capital, the investment arm of Intel Corp., until he left the company last year. He was arrested in October on conspiracy and securities fraud charges alleging that he supplied secret details about Intel’s investments to Rajaratnam — conversations prosecutors say were caught on wiretaps. Rajaratnam allegedly made a profit of $579,000 off the information and paid Goel through a personal brokerage account. In his plea, Goel said he met Rajaratnam after coming from India to attend the University of Pennsylvania’s Wharton School of Business in the early 1980s. After the two graduated and Rajaratnam built a hedge fund empire that made him one of the richest men in America, they remained close friends who sometimes took family vacations together, he said. “Though we lived very different lives, we maintained a strong connection,” he said. Goel admitted giving Rajaratnam inside tips about Intel’s investments and returns in 2007 and 2008. “I knew it was wrong to give Raj Rajaratnam confidential information,” he said. Goel remains free on $750,000 bail. Source: World Business - Livemint.com | 8 Feb 2010 | 11:50 pm Auto sales cross record 11 lakh units in JanuaryThe car manufacturers had earlier touched the peak at 1,29,358 units in March, 2009.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 11:48 pm UBS back to profit in Q4, outflows accelerateZurich: Swiss bank UBS posted its first quarterly net profit since Oswald Gruebel took the helm a year ago, but client withdrawals rose well above forecasts, signalling he may need more time to steady the ship. UBS, left damaged by the credit crisis and a bitter US tax row, is struggling to secure the sustainable recovery it needs to win back client and investor confidence, particularly as a US settlement is now in question and Swiss bank secrecy remains under attack. Pressure from an aggressive Italian tax amnesty in the final quarter of 2009 added to persistent brand damage that has hampered UBS’ performance in the last two years and Gruebel said the bleeding of client money would continue. “We are confident that the measures we are taking to address the causes of client asset outflows will be effective, but in the immediate future we still expect to report outflows,” Gruebel and chairman Kaspar Villiger, a former Swiss minister brought in to help clinch the US tax deal, said in a letter to investors. UBS posted quarterly net profit of 1.205 billion Swiss francs ($1.1 billion), partly helped by one-off tax credits of 480 million francs and a cut in bonuses, its second positive quarter in two years. Profit was ahead of expectations of 326 million francs in a Reuters poll. “The money outflows will dominate the discussion today so the share will likely come under pressure,” said Kepler Capital Markets analyst Dirk Becker. “The margin in private banking has dropped further. They beat expectations but it looks like it was only because of non-operational items.” “The one big (thing) they achieved was to get back into profit in the fourth quarter, but it was expected. Obviously it would have been worse if they had not managed to do this.” UBS’ investment bank, which had shown improvements in the previous two quarters, turned positive at pre-tax level with a gain of nearly 300 million francs after the bank cut its balance sheet by a further 11% and slashed personnel costs. “We expect that the Investment Bank’s performance for 2010 as a whole will improve, in part because its residual risk positions should have a much reduced impact on results,” Gruebel and Villiger said. Under Pressure UBS clients withdrew a hefty 56 billion francs in the fourth quarter, up from 37 billion in the previous quarter and confounding analysts’ expectations that outflows would slow after the Swiss bank settled a bitterly contested probe into help it had offered to rich Americans to dodge taxes. But that deal is in question after a Swiss court ruling in January and may prove a first tough challenge for Merrill Lynch veteran Robert McCann, who was hired by UBS in late October to revitalise its scarred US wealth franchise. While the largest withdrawals were seen at UBS’ key Wealth Management and Swiss Bank division, the US wealth management division also came under pressure, suffering net outflows of 12 billion francs, more than twice analysts’ expectations. Gruebel and Villiger said they were confident the Swiss government would find “alternative mechanisms” to ensure the US tax deal was honoured. McCann still has to unveil his strategy, with many analysts betting Gruebel may end up selling the division. Pressure from the Italian tax amnesty launched in September and due to run until April added to UBS’ woes on the wealth management front, triggering withdrawals of 8.5 billion francs from its large Italian client base. UBS’ direct rival Credit Suisse, which has fared better during the financial crisis, is expected to see a much healthier profit, although fourth quarter numbers should be down on the third quarter as trading profit slows. UBS is facing a more competitive environment in the United States as the crisis led to the emergence of brokerage giants Morgan Stanley Smith Barney, Bank of America-Merrill Lynch and Wells Fargo. Source: Home - Livemint.com | 8 Feb 2010 | 11:45 pm Oil below $72 in Asia amid economy doubtsSingapore: Oil prices lingered below $72 a barrel Tuesday in Asia as investors remained uncertain about the strength of global economic growth and demand for crude. Benchmark crude for March delivery was down 16 cents at $71.73 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract gained 70 cents to settle at $71.89 on Monday. Investors are staying cautious as swelling debt levels in Europe, high unemployment in the US and fears of Chinese monetary tightening continue to cast doubt over the global economic recovery. “Geopolitical tension, ongoing financial risks from Greece, Portugal and Spain and further liquidation of speculative long positions will continue to weigh on the oil price,” ANZ Banking Group said in a report. Crude demand remains sluggish despite support from cold weather in the U.S. northeast. Analysts expect US crude stocks to grow 2 million barrels, according to a survey released Monday by Platts, the energy information arm of McGraw-Hill Cos. In other Nymex trading in March contracts, heating oil fell 0.1 cent to $1.8845 a gallon, and gasoline was down 0.5 cent at $1.889 a gallon. Natural gas rose 3.9 cents to $5.44 per 1,000 cubic feet. In London, Brent crude was down 18 cents at $70 on the ICE futures exchange. Source: Home - Livemint.com | 8 Feb 2010 | 11:42 pm Sensex down 71 points in early trade on global cuesThe Bombay Stock Exchange benchmark Sensex today fell by over 71 points, or 0.44 per cent in opening trade on fresh selling by funds, triggered by a weak trend in the global markets.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 11:28 pm Boeing's new 747 takes flight near SeattleThe new plane, the biggest commercial jet Boeing has ever built, completed a 3-12 hour flight around the Puget Sound area from an airfield north of Seattle, Washington, without any hitches.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 11:19 pm Jet Air passenger traffic up 4th straight month in JanMumbai: Private carrier Jet Airways said on Tuesday it posted a 30% growth in international passenger traffic in January while domestic passenger traffic grew 26% compared with last year. Passenger traffic at Jet Airways rose for the fourth consecutive month in January with increased business and leisure travels during the winter months resulting in higher yields and network-wide passenger load factors, it said in a press release. “Several new strategic, marketing and network initiatives implemented during the economic downturn are also now beginning to pay dividend, enabling the airline to tap into demand revival,” Nikos Kardassia, chief executive officer, said. At 11:54am, shares in Jet were up 2.5% at Rs485.70 in a choppy Mumbai market. Source: Home - Livemint.com | 8 Feb 2010 | 11:16 pm Ghana blocks Exxon $4 billion deal for oil field stakeA Ghanaian official said state-run Ghana National Petroleum Corp would be the only entity allowed to buy Kosmos' stake in the field.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 11:09 pm Media Roundup for 09 February 2010Economic Times: Growth pegged at 7.2%, Centre looks to unwind Data from the government’s statistics arm showed on Monday that the economy is on track to meet growth projections for the fiscal to March 2010, setting the stage for gradual unwinding of the fiscal stimulus measures that were put in place to counter the slowdown. Hindustan Times: Recovery on track: GDP to grow at 7.2% India’s gross domestic product (GDP) — the total income of all economic entities in the country — will grow at 7.2 per cent in 2009-10, an official forecast said on Monday, confirming signs of a turnaround amid worries about the drought-hit farm sector. Business Line: Food inflation: Onus wholly on Centre Though the Conference of Chief Ministers on soaring food prices convened by the Prime Minister, Dr Manmohan Singh, at New Delhi on February 6, at times predictably degenerated into a hunt for scapegoats, with everyone pointing fingers at everyone else, it also provided an opportunity for heart-searching and fresh thinking. In that sense, it certainly was a worthwhile effort to arrive at a consensus for concerted action to meet a serious challenge confronting the nation. Economic Times: SEZ tax relief likely to stay even in new tax regime The government is likely to clarify in the budget that special economic zones or SEZs would continue to enjoy tax benefits in their current form even after the proposed direct taxes code is implemented, providing clarity over taxation of these special enclaves. Economic Times: Budget 2010 needs Pranabda’s banlancing act Finance minister Pranab Mukherjee will need to do some tightrope walking when he presents Budget 2010 on the 26th. On one hand, he has to ensure that the country returns to the path of fiscal consolidation and, on the other, that economic recovery is not stymied. Business Line: CSO pegs 2009-10 growth at 7.2% on industrial progress A lower-than-expected decline in agricultural output, and a robust recovery in industrial performance have led the Central Statistical Organisation (CSO) to peg the GDP growth estimate for 2009-10 at 7.2 per cent, substantially higher than the 6.7 per cent growth recorded in 2008-09. Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 11:09 pm Sensex up 90 points after initial lossesReversing early trend, the Bombay Stock Exchange benchmark Sensex moved up nearly 90 points in late morning trade good buying in stocks, primarily IT shares, on the back of recovery in the Asian market.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 11:06 pm PayPal halts payments to IndiaOnline payments' service Paypal has halted personal payments to India following new government regulations that were designed to crack down on money laundering.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 10:47 pm Toyota sued in California over Prius brakesToyota Motor Corp faced its first US class-action lawsuit stemming from complaints of faulty braking of its top-selling Prius hybrid model, which the automaker is to recall.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 10:38 pm BSE Sensex seesaws; techs rise, financials fallMUMBAI (Reuters) – The BSE Sensex was trading 0.3 percent higher on Tuesday after flip-flopping as mixed Asian markets offered little comfort and euro zone's sovereign debt troubles kept investors wary.Source: Reuters: Money News | 8 Feb 2010 | 10:23 pm Rupee pulls back from 7-week lowIndian shares fell 0.3% early before turning positive, but the debt worries in Europe kept investors cautious.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 10:13 pm Mukesh Ambani bidding for Liverpool Reliance says noReliance Industries Ltd has denied the media reports suggesting that Mukesh Ambani was bidding for Liverpool Football Club. Liverpool is presently owned by American duo George Gillett and Tom Hicks, who acquired the club in February 2007.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 9:57 pm Domestic car sales jump 32%, bikes up 44% in JanuaryDomestic passenger car sales have increased 32.28 per cent at 1,45,905 units in January from 1,10,300 units in the same month last year.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 9:51 pm Rupee gains six paise against dollar in early tradeThe rupee today appreciated by six paise to 46.75 a dollar in early trade largely in line with other firm Asian currencies.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 9:43 pm Sensex down 71 points in early trade on global cuesThe 30-share Sensex, which had gained 19.96 points in yesterday's choppy trade, fell by 71.54 points to 15,864.07 points in early trade.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 9:35 pm Hong Kong shares open 0.17% higherThe benchmark Hang Seng Index was up 32.90 points at 19,583.79.Source: Daily News & Analysis: Money News | 8 Feb 2010 | 9:31 pm Sobha promoter PNC Menon sells 4% stake in co - Economic Times
Source: Business - Google News | 8 Feb 2010 | 6:52 pm Quick Edit | Diminishing valueNew Delhi: The showing of the NTPC share sale is worrying not because the government almost didn’t find enough takers for shares in one of the country’s most valuable state-owned firms but because of what it means for planned share sales in other such companies. All along, the government has assumed that a ready market exists for any stake it is willing to sell in companies it owns. That doesn’t seem to be the case—although there are several extraneous factors involved in the case of the NTPC share sale, ranging from the state of global stock markets (which have had a horrid run over the past few weeks) to the lack of incentives for investment banks managing the issue. This could mean that the government will really have to work hard to raise the amount of money it wants to by divesting stakes in state-owned firms. With every passing day, the share of state-owned firms in the Indian economy is shrinking. Is it any wonder that their perceived value isn’t what it once was? Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 12:19 pm Currency futures: taxes, levies and liquidities One of the important factors that have aided the growth of the segment is that it has relatively low transaction costs. Securities transaction tax (STT) has been waived for the segment, resulting in substantial savings for traders. Besides, exchanges have continued to waive trading fees for members. And given the fact that currencies are far less volatile than equities, the margins involved are far lower, resulting in lower capital requirements. All of these put together mean that transaction costs for currency futures are far less vis-à-vis equity derivatives. Also Read | Mobis Philipose’s earlier columns There are other factors as well. Currency futures contracts are priced to the fourth decimal place and given the relatively low level of volatility in prices, traders need to bet a relatively large sum to make a decent profit. The average trade size on NSE’s near-month USD/INR (US dollar/Indian Re) futures contract stood at Rs29 lakh on Monday. In contrast, average trade size in the exchange’s equity cash segment stood at Rs22,000. Of course, the larger difference also has to do with a much higher level of retail participation in the equity market. Before getting into other factors that have supported the growth of the market, it’s important to note the positive effect of lower transaction costs on liquidity. One of the reasons traders have preferred Nifty options over Nifty futures in the past two years is the relatively low transaction cost. Options contracts entail relatively lower STT since the tax is now calculated only on the premium, instead of the earlier practice (about two years ago) of applying it on the notional value of the contract. Besides, capital outlay is also lower, at least as far as options buyers go since their downside is limited to the option premium. With the Budget approaching, the ministry of finance would do well to note the positive effect of liquidity when STT is lowered or is waived. One could always argue that the equity market’s turnover has grown manifold since 2004 when STT was first introduced. While that is true, it also needs to be noted that pricing efficiency through arbitrage activity is not entirely possible due to the fixed STT cost. Besides, given the differential treatment across asset classes such as equities, bonds, currencies and commodities, there is the possibility that traders would shift to assets where STT is not payable. Many traders are neutral about the assets they trade and would well prefer trading assets that have lower transaction costs.  Graphic: Ahmed Raza Khan / Mint At this rate, it won’t be long before currency derivatives become the largest product among exchange-traded derivatives in India. This would be quite a departure from developed markets where equity and interest-rate derivatives head the list of most-traded contracts. It’s interesting to note, however, that despite the success of the currency futures product, exchanges are yet to account for any income from this business, since the product is still offered free. In The Money runs every other Tuesday. We welcome your comments at inthemoney@livemint.com Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 12:15 pm GDP set to surge amid farm surpriseNew Delhi: A strong recovery in manufacturing and a less than anticipated contraction in farm output are expected to propel the economy to a faster growth pace of 7.2% in the year ending March, putting pressure on the government to partially withdraw stimulus measures. The advance estimate released by the Central Statistical Organisation (CSO) on Monday, while lower than government forecasts, exceeded market expectations and is faster than the year-ago growth rate of 6.7%. Also See Tracking Growth (Graphics) While a survey of professional forecasters by the Reserve Bank of India (RBI) pegged the gross domestic product (GDP) growth rate at 6.9%, both RBI and Prime Minister Manmohan Singh have forecast a 7.5% pace. In the first half of the fiscal, the economy grew 7%. Reacting to GDP growth data, Planning Commission deputy chairman Montek Singh Ahluwalia favoured an early withdrawal of the stimulus package. “We should say stimulus has succeeded and we should begin to phase it out now,” he told reporters. Also Read Estimates show weak investment demand Finance secretary Ashok Chawla evaded a direct reply. “In terms of what the future policy framework is going to be, I think you will have to wait for the Budget,” he said. The government is scheduled to announce the Union Budget for the next fiscal year on 26 February. Shubhada Rao, chief economist at Yes Bank Ltd, said the government may start a partial withdrawal of the fiscal stimulus with private demand beginning to pick up. “It may not withdraw fully the 4% excise duty reduction given to the industry,” she said. “However, it may close the gap.” The government’s estimate of a marginal 0.2% contraction in agricultural output, may have underestimated the impact of last year’s drought. “We were anticipating at least 1% contraction in farm output,” said N.R. Bhanumurthy, economist at the National Institute of Public Finance and Policy. “The farm output growth will be revised downward once we get the third-quarter GDP figure as the impact of drought will be fully reflected in the third quarter.” Bhanumurthy expects that the revised estimate of GDP for the current fiscal won’t be more than 7%. “The government should pare its 7.5% growth expectation for the current fiscal and base its budget calculations and expected revenue collection figures for next year on a lower GDP growth,” he said. Chief statistician of India Pronab Sen said he had been expecting a greater contraction in farm sector growth and was “a little surprised”. However, Sen reasoned that, as the share of foodgrains in total agriculture output has dropped to 12%, the contraction in food production has now little impact on overall farm production. The impact of the monsoon may take longer to percolate through. “They are anticipating strong growth in rabi (winter crop) output. One has to wait and see,” said Rao. The stock markets initially reacted negatively to the data, with the Bombay Stock Exchange’s benchmark Sensex falling more than 200 points before recovering to end in positive territory with a gain of 20 points. The data from the department of agriculture and cooperation which was used by CSO to estimate GDP showed production of foodgrains and oilseeds is expected to decline 8% and 5%, respectively from the previous agricultural year. According to the latest data, the size of the Indian economy is estimated at Rs61,64,178 crore. Per capita income is estimated at Rs43,749, growing 9% over the previous year. Consumption expenditure continues to boost the economy with growth in private consumption and investment demand being laggards. While government expenditure is expected to grow at 8.2%, private consumption expenditure and investment are seen expanding at 4.1% and 5.2%, respectively, over the previous year. Bhanumurthy said the government needs to start looking at growth vis-a-vis inflation now. “To control inflation, fiscal tightening should happen. The Reserve Bank of India has already started monetary tightening. You cannot have a loose fiscal policy and a tight monetary policy. There needs to be consistency,” he said. RBI warned the government that a stronger recovery increased the risk that already high food price inflation would spread to other commodities in its third quarter review. Food price inflation is hovering at around 17%. The anticipated recovery is led by a revival in industry but services continue to lag behind. While industry, including construction, is expected to grow 8.1% compared with 3.6% in the previous year, services are projected to expand 8.8% against 10.5%. “Services need to pick up if India has to achieve more than 8% growth,” said Gaurav Kapur, senior economist at ABN Amro Bank. Graphics by Ahmed Raza Khan/Mint PTI contributed to the story. Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 12:14 pm Former staff turned away from NTPCNew Delhi: NTPC Ltd, Asia’s largest power generation company, has reversed its decision to attract former employees. The utility has rejected the applications of 284 engineers who wanted to rejoin the organization, this after advertising for people who used to work for the company. “We have decided not to take them back since we are already hiring aggressively every year and have got a better man to megawatt ratio than other utilities,” said a senior NTPC executive who did not want to be identified. “We have no plans to take them back. We have our own talent pool which is capable of delivering our targets. We have been recruiting around 1,000 employees on a yearly basis, around 80% of our new intakes being engineers,” said NTPC human resources director R.C. Shrivastav. India’s biggest utility has a current workforce of around 25,000 employees of which around 18,750 are engineers. NTPC, which has a power generation capacity of 31,134MW, plans to increase this to 75,000MW by 2017. To achieve this ambitious target, the company plans to recruit 7,000 people—of which around 5,600 will be engineers—by March 2012. Even though the company has been losing engineers to private sector companies such as Tata Power Ltd, Reliance Power Ltd and Lanco Infratech Ltd, senior NTPC executives say they are happy to stay. While public sector units (PSUs) are governed by standardized pay structures, which are not as attractive as those offered by the private sector, the Union government recently rewarded the five million people it employs an average salary raise of 21%. Former executive director, human resources, G.K. Aggarwal had earlier told Mint that the utility was expecting 40-50 senior engineers to rejoin. Attrition levels, however, are expected to rise once the private sector power projects are operational and they start seeking operations and maintenance engineers. Fresh recruitments have curbed the need to get old employees back. “Talent crunch was a concern some time back when a lot of senior executives from NTPC had moved to the private sector,” said Hitul Gutka, an analyst at brokerage India Infoline Ltd. “With the new talent coming in, the requirement of the old hands to come back has eased.” NTPC returned a net profit of Rs7,827.40 crore on revenue of Rs42,182.40 crore in 2008-09. The government diluted 5% of its share in NTPC through a follow-on public issue last week that saw a muted response, bringing down its stake to 84.5% with investors bidding for 490.5 million shares compared with 412.3 million offered. The utility has received bids worth around Rs9,850 crore based on the floor price of Rs201 per share. Any policy to recruit former employees has to be seen as fair, valuing both loyalty and competence, said Hema Ravichandar, a Bangalore-based strategic human resources advisor. “Many reputed organizations have wooed back former employees. To succeed, this initiative should be part of a well-planned organizational recruitment strategy,” she said. “It should proactively address the sensitive issue of just what kind of parity will exist between returning employees and those who have stayed back in the organization,” Ravichandar added. Such a campaign should ensure that there is no nepotism or that employees who “separated in an unprofessional manner are not encouraged to return”, she said. Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 12:10 pm Divergent growth patterns of telcos Also Read Madhucon Projects faces profit squeeze A number of theories were proposed by analysts to make sense of the difference. Now that Vodafone Essar Ltd’s results are also out, there are some further clues. Vodafone’s revenue grew by 4.5% sequentially, again much higher compared with Bharti.  Graphic: Yogesh Kumar / Mint DoCoMo has since spread to other circles and is expected to roll out its services across the country. This would eliminate such variations in the future. Based on this reasoning, Idea’s growth rates won’t be substantially higher in future quarters. Of course, given its lower base and the fact that it is expanding into more circles, its growth rates are likely to be higher. But the extent of the difference will be far lower compared with the December quarter. Telecom companies also benefited from the seasonality factor in traffic. Traffic slows marginally during the monsoon, causing growth rates in the December quarter to look good. With this factor missing, plus the increased competition after the entry of Uninor, results are likely to be weak across the board in the March quarter. Write to us at marktomarket@livemint.com Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 12:08 pm Railways’ registers 8.5% rise in earningsNew Delhi: The Indian Railways posted earnings of Rs70,501 crore in the 10 months from 1 April 2009 to 31 January 2010, an 8.5% increase over the Rs64,943.32 crore it recorded during the same period the previous year. Goods earnings went up from Rs44,035 crore during to Rs47,763 crore while passenger revenue was Rs19,393 crore compared to Rs18,057 crore. The national transporter booked approximately 6 billion passengers, a 5% increase over last year, the railways said in an emailed press statement. Source: LatestNews-Home - Livemint.com | 8 Feb 2010 | 11:54 am Renault revs up for solo drive with 6-7 launchesFrances second-largest car maker Renault is ready to make an aggressive solo entry with seven or eight new models, ranging from a 1.1 litre hatcback to a luxury sedan.Source: Business Standard | Front Page Headlines | 8 Feb 2010 | 11:53 am Stimulus drawback likely on higher GDP growthAdvance estimates of national income growth released today by the Central Statistical Organisation (CSO) project it at 7.2 per cent in 2009-10, pegging it a notch below earlier forecasts of the Reserve Bank of India (7.5 per cent) and finance ministry (7.75 per cent). With economic growth back on track the government may initiate a phased withdrawal of the fiscal stimulus package.Source: Business Standard | Front Page Headlines | 8 Feb 2010 | 11:49 am Average income to rise, fiscal deficit to go downThe revival in the economic growth will not only push up average income of people but will also help the government reduce the fiscal deficit.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 11:27 am AI to focus on domestic routesThis could well be the ultimate irony of the controversial Air India-Indian Airlines merger that saw the domestic arm's identity getting lost.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 11:24 am Railway bonds will earn you a tax-free 6.5-7.25%The finance ministry on Monday approved issue of bonds by railways worth Rs 5,000 crore for the financial year ending March 31, 2010.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 11:20 am Economy to grow at 7.2%, says CSOThe Indian economy will grow at 7.2% in 2009-10, said the Central Statistical Organisation (CSO) on Monday in its advance estimate.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 11:16 am Data service yash birla co in deal with aussie firmYash Birla Group company Melstar Information Technologies has entered into a deal with Australia-based Mastersoft Research to foray into the Software as a Service (SaaS) arena. The application management organisation would implement Mastersoft’s customer information and data quality solutions in India.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 10:17 am SEBI panel to review structure of exchangesThe Securities and Exchange Board of India (SEBI) has formed a committee under Bimal Jalan to look into market reform issues. Jalan is a former governor of the Reserve Bank of India (RBI).Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 10:15 am Shareholders need quality informationA few days back I got an SMS that was pitching fixed deposits with a company. The returns promised were as high as 14 per cent for a three-year deposit. Nothing unusual about this. However, the SMS set me thinking about the quality of the information that shareholders get about their company, writes Dhirendra Kumar.Source: HindustanTimes.com - Top Business News Headlines | 8 Feb 2010 | 10:13 am Without Flash, Apple users aren’t well servedBangalore: Each time you fire up a video on YouTube or watch an episode of your favourite sitcom on Hulu, it uses software made by Adobe Systems Inc. which claims that 98% of all personal computers use at least some software made by it. The company’s president and chief executive Shantanu Narayen is one of the highest ranking executives of Indian origin in the Silicon Valley. The 46-year-old Narayen, who grew up in Hyderabad, runs a company that ended 2009 with revenue of $2.94 billion (Rs13,759.2 crore), a market value of $17.18 billion and which announced in late 2009, the acquisition of Web analytics company Omniture Inc. for $1.8 billion.  Well-positioned: Narayen says that emerging countries such as China and India will be big markets for Adobe. Hemant Mishra / Mint The last quarter was tough for most players including Adobe. Has the environment improved? I am coming here from Davos (after attending the World Economic Forum) where some of our customers were also present. The general consensus is that markets are stable at least, if not improving. Economic growth will come more from emerging markets. Particular to Adobe’s business almost from the middle of last year, revenues from North America were fairly stable. Japan tends to be strong. It is too early to predict where first quarter (in March) will end. But we are optimistic and as a company, which is still producing a lot of cash and very profitable, we will use this opportunity to get even stronger. We made an acquisition of Omniture. We are very well positioned for the economic recovery. Were you disappointed that iPad, like the iPhone does not run Flash. And what’s your response to Jobs’ comments on Adobe? First let me give you some facts. You cannot talk about providing a complete Internet experience without supporting Flash. If you think of rich advertising on the Web, it is Flash. If you think of video on the Web (like on) Hulu, YouTube, Rediff and I am sure even on (Live)mint, it will be on Flash. Casual gaming, social media sites like Facebook, they use Flash. B2B (business to business) or B2C (business to consumer) it will be either Flash or Flex (editor’s note : Flex is another Adobe product). If you want to provide a complete browsing experience, you have to support Flash. If you look at the adoption rate of Flash, it is faster than any software in the world. When we release a newer version of Flash within a year, 90% of the world’s computers including Macintosh (an Apple product) upgrade to it. It is the result of the ecosystem that we have built where content drives ubiquity and new features drive new enterprising content. We announced open screen project a few years ago and we changed the business model. We don’t charge royalty for Flash on a client. So that addresses the speculation in the press that whether (royalty payment) is the cause for the rift between Adobe and other partners. 19 of the top 20 OEMs (original equipment manufacturer) in the world have committed to using Flash on their smart phones. Apple has chosen not to allow us to deliver Flash on their devices. The real reasons for not allowing us, you will have to ask Steve (Jobs). (Apple’s) customers are not well served if they are not allowed to browse sites, which have Flash. It is not just Apple, even Google is pushing the adoption of HTML5… which could eventually make Flash redundant. What is interesting is that for the last 12 years that I have been at Adobe, I have had to respond to questions on software, which apparently would be the death knell of Adobe. Here we are, still selling billions of dollars worth of software. Specific to HTML: Flash and it have co-existed forever. There are things, which HTML does well, and there are some others, which Flash does well. So I don’t think one will replace the other. There is speculation that it will be only by 2022 that all browsers will support HTML5. If Adobe stands still, shame on us. So would Adobe itself launch a browser? No plans to build a browser. What about the charge that increasingly Adobe’s products are bloated and that security is an issue? We take security very seriously. Especially if we distribute the amount of software as we do, we will be a target. But we have responded very well and addressed vulnerabilities. We put in features that our customers ask for. How are you doing here? We employ around 1,600 people in India (little more than a quarter of the firm’s global workforce). India is both a resource base for our R&D (research and development) as well as a market. Piracy, however, is a big issue. Our revenue here is a fraction of the usage of our software here. Increasingly, emerging countries like China and India will be big markets for Adobe. venkatesha.b@livemint.com Source: Tech News - Livemint.com | 8 Feb 2010 | 9:55 am Rupee depreciates by 8 paise against dollarThe rupee today fell marginally by 2 paise against the US dollar in early trade on foreign fund outflows from the weak equity markets amid strengthening of the US currency against other units.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 8:13 am SAP CEO eased out, market ponders firm’s strategyFrankfurt: SAP AG shouldered aside its chief executive officer of just seven months, surprising a market he failed to win over during his tenure and leaving investors wondering where the world’s top business software firm heads next. SAP announced Leo Apotheker’s abrupt departure late on Sunday, replacing him with immediate effect with a new management team expected to inject a clearer sense of direction at the helm. “This step comes as an absolute surprise,” DZ Bank analyst Oliver Finger told clients in a research note. “It should increase short-term uncertainty about SAP’s future strategy and hit the firm’s shares,” Finger said. The stock was down 1.8% at 05.14 pm, while the DAX index rose 0.4% and the DJ Stoxx tech index was down 1.1%. SAP said that it was returning to its traditions of split leadership with Bill McDermott, head of the field organisation, and Jim Hagemann Snabe, product development chief, both already members of the SAP executive board, taking the helm. McDermott, who is based at SAP’s US headquarters in southeastern Pennsylvania, played a lead role in sharply raising SAP’s share of the key North American market. Snabe, a Dane, is a trained mathematician in charge of rolling out SAP’s Business ByDesign software suite after several missteps and delays. It said that the chief executive officer’s departure was by mutual consent and did not elaborate on why Apotheker—a experienced, multilingual salesman who lives in Paris—had been eased out. UNHAPPY CUSTOMERS We believe supervisory chairman and co-founder Hasso Plattner was likely dissatisfied with 2009’s weak licence performance and the—especially domestic—customer disquiet over Enterprise Support, UBS said in a note. “The client base has lost confidence largely because of the maintenance issue fees,” said Yvonne Genovese, head of software analysis at research firm Gartner. The software maker wanted to raise prices after 10 years of keeping them steady but customers complained the amount of services they need did not justify the planned mark-up, forcing SAP to back down and delay a decision on higher service fees. Software licensing and maintenance fees account for the bulk of revenues at SAP, whose main competitors include Oracle and IBM. Genovese said that SAP’s patchwork of messages on cloud computing and software as a service among other issues lacked a clear, cohesive strategy. “SAP’s strategy is currently not visible for staff or clients,” said German IT consulting firm Experton Group. SAP is solid and successful in its basic business but innovations regulary fail, communication internally as well as externally is a catastrophe and that explains an extreme uncertainty on all levels, the consultancy said. SLOWER DECISIONS? By appointing new co-chief executive officers, SAP is now trying to right the ship in a move supported by Plattner, who at the board’s request will advise the newcomers on technology and product development. SAP has a history of co-leadership to ensure a smooth transition from one chief executive officer to the next, though it is not yet clear whether McDermott or Snabe will eventually become sole top executive or if a third person will take over. Apotheker was named co-chief executive with Henning Kagermann in April 2008 and took over sole responsibility with Kagermann’s retirement in July 2009. He became the first executive unable to write software code to be elevated to such high office at SAP. Genovese said that both McDermott and Snabe had shown that they were very capable, though one worry is that the two new co-chief executive officers have never led. “We will see how they work together,” Genovese said. “We are concerned that the co-leadership might slow down the decision-taking process,” Merck Finck analyst Theo Kitz said. Danish Jyske Bank struck a more positive tone, reasoning that the co-chief executive officers were well known by customers and investors. “The net effect of the change of management should be a more visionary and clear communication towards the outside world,” said Jyske Bank, which kept its SAP recommendation at buy. “Leo Apotheker has had from time to time a tendency to appear arrogant which has made it more difficult to get his message across,” Jyske Bank said. Apotheker was instrumental in SAP’s $7.5 billion acquisition of business intelligence maker Business Objects, agreed in 2007 and completed 2008—SAP’s only acquisition to date on this scale. But his education in international relations and economics and subsequent career in management, consulting and venture capital set him apart from previous chief executive officers, who all had deep roots in computing, and marked a change in tradition at SAP. Source: World Business - Livemint.com | 8 Feb 2010 | 5:50 am Average income of Indians to rise to Rs 43,749 this fiscalAn Indian on an average is expected to earn Rs 43,749 in 2009-10, nine per cent more than what he would have received last fiscal if the national income were evenly distributed among the citizens.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 5:12 am Sensex fails to regain 16000-mark, ends in greenThe Sensex failed to regain the psychological 16,000-mark today, despite ending in the positive terrain for the second day with a gain of 20 points, as funds continued to their selling spree in heavy-weight counters.Source: India Business News | Business News - Times of India | 8 Feb 2010 | 4:15 am
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