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Total capacity to reach 241000 tn by FY10end: AP PaperIn an exclusive interview with CNBCTV18, E Sairam, Chief Financial Officer of Andhra Pradesh Paper Mills, spoke about the companys growth prospects and his outlook for the sector.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 8:41 am IOL Chem sees revenues hitting Rs 550cr in FY11In an interview with CNBCTV18, Rakesh Mahajan, President Finance, IOL Chem Pharma spoke about the company\'s business and the road ahead.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 8:09 am BofAMerrill cuts Bharti Airtel to underperformBank of AmericaMerrill Lynch has cut Bharti Airtel to underperform from buy after the top Indian mobile operator began USD 10.7 billion exclusive talks to buy Kuwaiti telecom Zain\'s Africa assets, a note seen by Reuters showed on Monday.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 8:07 am See inflation near 9.3% in Feb: Kotak Institutional EqIn an interview with CNBCTV18, Mridul Sagar, Chief Economist, Kotak Institutional Equities and Dhawal Dalal, Sr VP Head of Fixed Income, DSP BlackRock Investment Managers, discuss the inflation numbers and give their outlook going forward.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 7:45 am Tata Motors Jan global sales up 93% at 85,714 unitsThe Tata Motors Group global sales, comprising of Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with distributed brands in India, and Jaguar and Land Rover, were 85,714 units in January 2010, a growth of 93% over January 2009.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 7:22 am Tata Motors: January global sales nearly doubleTata Motors, India\'s largest vehicles maker, said on Monday its global vehicle sales for January nearly doubled to 85,714 units from a year earlier.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 7:20 am Reliance Comm adds 2.8 million mobile users in JanuaryReliance Communications, India\'s No. 2 mobile operator, said on Monday it added 2.8 million mobile subscribers in January.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 7:12 am Oil India to invest $500600m in Venezuela proj over 6 yrsA consortium that included Oil India recently won the development of two oil blocks in Venezuela. In an interview with CNBCTV18, NM Borah of Oil India spoke about the massive project and the road ahead for the company.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 6:59 am Bharti\'s Mittal redials Africa as India growth slowsWill it be thirdtime lucky for Indian telecoms czar Sunil Mittal? As he makes his third bid in as many years for a big acquisition in Africa.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 6:28 am Fiscal stimulus needs to continue for growth: GodrejIn an interview with CNBCTV18, Adi Godrej, CEO of Godrej Industries spoke about the latest happenings in his company and sector.Source: Moneycontrol Top Headlines | 15 Feb 2010 | 6:00 am Inflation rises to 8.56 percent in January !India`s wholesale price index rose 8.56 percent in January from a year earlier, driven by higher food prices, government data showed on Monday.Source: Zee News : Business | 15 Feb 2010 | 5:48 am Gold gains on positive global cues, buying supportBuoyed by a firming trend overseas and seasonal buying, gold prices rose by Rs 65 to Rs 16,705 per ten grams on the bullion market here today.Source: Daily News & Analysis: Money News | 15 Feb 2010 | 3:23 am Sensex ends near 16000; oil & gas, PSU, banks down - Economic Times
Source: Business - Google News | 15 Feb 2010 | 3:17 am Not willing to concede an inch of our territory: Antony - Zee News
Source: Business - Google News | 15 Feb 2010 | 3:15 am India rupee extends gains as shares pare some losses - Reuters India
Source: Business - Google News | 15 Feb 2010 | 3:02 am Jan WPI inflation at 8 56 - Moneycontrol.com
Source: Business - Google News | 15 Feb 2010 | 2:45 am Zain deal to strain Bharti's finances; stock down 10% - Economic Times
Source: Business - Google News | 15 Feb 2010 | 2:44 am ANALYSIS - Software key risk for Korean smartphone pushSEOUL/BARCELONA (Reuters) - Software could become a stumbling block for the ambitious plans of Korean mobile phone heavyweights Samsung and LG Electronics to win a bigger share of the booming and lucrative smartphone market.Source: Reuters: Money News | 15 Feb 2010 | 2:43 am Zain shareholder Kharafi confident of Bharti deal - TVNEW DELHI (Reuters) - A leading Zain shareholder said he was confident of sealing a $10.7 billion deal to sell most of the firm's African assets to Bharti Airtel, ET Now television showed on Monday.Source: Reuters: Money News | 15 Feb 2010 | 2:31 am World stocks, euro steady before euro zone meetingLONDON (Reuters) - World stocks were largely steady on Monday while the euro held near a nine-month low against the dollar as uncertainty grew over whether euro zone policymakers could agree on details of a Greek rescue package this week.Source: Reuters: Money News | 15 Feb 2010 | 2:22 am How proposed base rate changes life for banks, borrowers - Moneycontrol.com
Source: Business - Google News | 15 Feb 2010 | 2:10 am Adani Power bags 1320 MW power project in MP; stk down - Moneycontrol.com
Source: Business - Google News | 15 Feb 2010 | 2:10 am Rupee extends gains as shares pare some lossesMUMBAI (Reuters) - The rupee extended gains in afternoon trade on Monday as domestic shares pared some losses with little direction from other regional markets, most of which are shut for the Lunar New Year.Source: Reuters: Money News | 15 Feb 2010 | 2:10 am Bharti Airtel shares extend fall to 9 pct on Zain offerNEW DELHI (Reuters) - Shares in Bharti Airtel extended losses to more than 9 percent by Monday afternoon on concerns the leading Indian mobile firm's $10.7 billion offer for Kuwaiti Zain's African assets could strain its finances.Source: Reuters: Money News | 15 Feb 2010 | 2:08 am Reliance Comm says adds 2.8 mln mobile users in JanuaryThe company had 93.8 million mobile users as of end-December, according to the telecoms regulator.Source: Daily News & Analysis: Money News | 15 Feb 2010 | 1:59 am Tata Motors Jan global sales up 93% at 85714 units - Moneycontrol.com
Source: Business - Google News | 15 Feb 2010 | 1:55 am Gold demand cools off as prices inch higherMumbai: India’s wholesale gold demand cooled off on Monday afternoon as the yellow metal prices edged higher nearing the most-watched $1,100 an ounce-mark, after offtake picked up for the most part of last week, dealers said. “Today the demand is dull, there was big offtake last week, when gold ferried below $1,075 (an ounce),” said a state-run bullion dealing bank dealer. International spot gold, which guides the domestic market, was trading at $1,095.75/1,096.55, after hitting an intra-day high of $1,097.85 an ounce. The previous close was at $1,092.40/1,094.40. “My order sheet is showing unexecuted deals below $1,050 levels,” said the bank dealer. However, a strong rupee, which makes the dollar-quoted asset aided sentiment, dealers added. The Indian rupee strengthened on some bunched up dollar inflows in early Monday trade, but the lack of directional cues from other regional peers and a choppy domestic stock market capped further gains. Source: Home - Livemint.com | 15 Feb 2010 | 1:48 am Inflation hits 14-month high, tops RBI forecastNEW DELHI (Reuters) - India's headline inflation in January accelerated to its fastest pace in more than a year, vaulting above the Reserve Bank's end-March inflation forecast and putting more pressure on the bank to raise borrowing rates.Source: Reuters: Money News | 15 Feb 2010 | 1:45 am Bharti confirms $10.7 bln bid for Zain Africa assetsNEW DELHI (Reuters) - Bharti Airtel began exclusive $10.7 billion talks to buy most of Kuwaiti telecom Zain's African cellular assets, Bharti's third try to gain a foothold in a continent that offers the last opportunity for major subscriber growth.Source: Reuters: Money News | 15 Feb 2010 | 1:35 am Tata Motors global sales grow by 93% in JanuaryNew Delhi Homegrown auto major Tata Motors today said its global sales jumped by 93% in January to 85,714 units, on the back of robust demand for both commercial and passenger vehicles. Sales of luxury brands from Jaguar Land Rover were at 16,269 units during January, up 195% from the same period last year, the company said in a statement. It said total passenger vehicles sales were 45,380 units, in January 2010, a growth of 76 per cent from the corresponding month last year. Commercial vehicles sales stood at 40,334 units, up 115% from the year-ago month, it added. For the ongoing fiscal, total cumulative sales between April 2009 to January 2010 were at 681,480, up 13% compared to the corresponding period a year ago, it said. Passenger vehicles sales during the fiscal were down by 0.31% at 359,010 units. Cumulative sales of commercial vehicles for the fiscal were at 322,470 units, a growth of 32%. The Tata Motors Group global sales, comprises Tata, Tata Daewoo and Hispano Carrocera range of commercial vehicles, Tata passenger vehicles along with the distributed brands in India, and Jaguar and Land Rover. Source: LatestNews-Home - Livemint.com | 15 Feb 2010 | 1:31 am Political inertia may trump vision in budgetNEW DELHI (Reuters) - The government's first full-year budget since its resounding re-election may signal that increasing populism and ruling coalition infighting will triumph over policies to liberalise the economy and cut record borrowing.Source: Reuters: Money News | 15 Feb 2010 | 1:28 am Rupee up on bunched up dollar inflowsMumbai: The Indian rupee strengthened on some bunched up dollar inflows in early Monday trade, but the lack of directional cues from other regional peers and a choppy domestic stock market capped further gains. At 11:20 a.m. (0550 GMT), the partially convertible rupee was at 46.37/38 per dollar, stronger than its 46.50/51 previous close last Thursday. Financial markets were shut on 12 February for a local holiday. Most Asian markets are shut on Monday and Tuesday for Lunar New Year holidays, while New York is shut on Monday for the Presidents Day holiday. “Rupee is stronger due to lack of outflows due to New York being shut and also some bunched up dollar inflows on account of Friday’s holiday, that is causing some selling in the market,” a senior dealer with a private bank said. Dealers said the market would be rangebound in lacklustre trade in the absence of fresh triggers, with inflation data for January due around noon watched for further direction. India’s annual wholesale price inflation in January is seen at 8.21%, according to a Reuters survey. This compares with an annual rise of 7.31% in December. Fuel costs in India flared up in late January and food prices rose for a third straight week, data last Thursday showed, while last Friday’s data revealed India’s industrial output smashed forecasts to grow at its fastest pace on record in December. Shares were choppy in early trade providing little direction to the rupee. The euro hovered near 9-month lows against the US dollar on Monday, as doubts whether policymakers in the eurozone will help debt-laden Greece intensified, prompting investors to add to long positions in the greenback. One-month offshore non-deliverable forward contracts were quoted at 46.34/44, little changed from the onshore spot rate. In the currency futures market, the most traded near-month contracts on the National Stock Exchange and MCX-SX were both quoting at 46.40, with the total traded volume on the two exchanges at about $975 million. Source: Home - Livemint.com | 15 Feb 2010 | 1:16 am Vascon interested in developing non-major airports'We plan to develop upcoming airports in the country with foreign JV partners. This will add value to our propositions,' Vascon Engineers chairman, R Vasudevan said.Source: Daily News & Analysis: Money News | 15 Feb 2010 | 1:10 am Doubts on Greece, China haunt euro, stocksSydney: The euro huddled near 9-month lows against the US dollar on Monday and share markets fell as investors feared coming meetings of euro zone policymakers would yield nothing quick or concrete on Greece. Euro zone finance ministers meet on Monday and Tuesday to discuss the crisis of confidence in debt-laden Greece and are expected to insist on more painful medicine. European shares were expected to open slightly higher, bucking weakness in Asian stocks, as investors awaited the finance ministers’ meeting. On Sunday, European Central Bank president Jean-Claude Trichet said Greece needed to take necessary extra measures to make its recovery plan credible. Yet various media reports say Athens will resist any new measures until mid-March, when officials from the EU, ECB and International Monetary Fund are due to dissect Greece’s deficit-cutting plans. The European Cental bank and European Commission agreed last week to work together to monitor Greece but EU leaders failed to come up with a concrete rescue package. Euro zone officials appear adamant that the hard work must be done primarily by Greece at this stage, rather than by the EU. “A pledge of solidarity and promises of a tough stance on Greece are a certainty. As will be the hope from those making the promises that commitment alone will be sufficient to soothe market nerves,” said Michael Blythe, chief economist at Commonwealth Bank in Sydney. “Then investors can ponder what spread to charge a sovereign with a weak balance sheet, poor public administration, structural shortcomings and looming demographic challenges,” he added. Worries over Greece’s ability to fund its debt and weakness elsewhere in the euro zone have hammered the euro in recent weeks, dragging it to a nine-month trough of $1.3533 last Friday. On Monday, the single currency was pinned at $1.3600 and in danger of testing a major chart bulwark down around $1.3483. The euro’s woes have been a boon to the dollar, which hit a seven-month high against a basket of major currencies last week. On Monday the US currency was holding firm at 80.416 on the index and at ¥90.15 Figures from the Commodity Futures Trading Commission showed speculators had amassed record short positions in the euro, essentially betting it had further to fall, while piling up huge long positions in the US dollar. Japan grows as prices fall Trade was very thin on Monday with markets on Lunar New Year holiday in China, Hong Kong, Singapore, Taiwan and South Korea. The United States is also off for President’s Day. Investors offered only a muted cheer for news that Japan’s economy grew at a surprisingly brisk 4.6% annualised pace last quarter. However, inflation-adjusted growth was only so high because economy-wide prices fell even faster than expected, down 3.0% compared to the fourth quarter of 2008. The benchmark Nikkei lost early gains to end 0.8% lower, while the broader Topix fell 1%. The Australian ASX 200 fell 0.36%. Markets were still reverbating from China’s decision late on Friday to lift reserve requirements at banks for the second time this year. The surprise move stoked concerns it could slow robust growth there, which has largely led the global recovery, though most analysts argue such worries are overdone. “While monetary tightening has begun in China, we continue to view this as a positive, pre-emptive effort to avoid a more pronounced boom-bust cycle that would otherwise occur further down the line,” Larry Kantor, head of research at Barclays Capital, wrote in a note. Crude oil futures were steady above $74 after Japanese growth data eased concerns that energy demand would taper off as China tightens policy. Gold edged up 0.2 percent to above $1,095 per ounce, with traders watching moves in currency markets. On Thursday, spot gold rose to a session high of $1,097.75 an ounce, the highest since Feb. 4, as investors turned to the metal as a hedge against currency volatility after news that European governments had agreed in principle to support Greece. (Editing by Kim Coghill) REUTERS Source: Home - Livemint.com | 15 Feb 2010 | 1:09 am Japanese company planning rs 150 crore investment in IndiaTokyo based Kao Corporation, an FMCG major, is planning a Rs 150 crore investment in Kerala.Source: Daily News & Analysis: Money News | 15 Feb 2010 | 1:08 am Inflation rises to 8.56% in JanuaryWholesale price-based inflation rose to 8.56%, shooting past the RBI's forecast of 8.5%, as food items such as sugar, potatoes and pulses turned costlier.Source: Daily News & Analysis: Money News | 15 Feb 2010 | 1:02 am Govt considering framing policy on open schooling systemNew Delhi: In a step aimed at enhancing the acceptability of open schooling system, the government is considering framing a policy which will enable regular schools adapt distance education programme. “A national policy will be evolved under which regular schools will embrace distance education. This will make distance schooling more acceptable,” human resources development minister Kapil Sibal said in his address to the annual meeting of National Consortium for Open Schooling. Of the 1 crore children in the age group of 14-18 years who currently pursue secondary education, 16 lakh are doing it through open schooling system. “This number (16 lakh) is not good enough. It should be increased to about 70-80 lakh by the end of the 11th Five Year plan and should be 1.5 crore by 2020,” he said. The major problem in distance education is its non- acceptability among the people as an effective and efficient alternative of the regular schooling system. Sibal said if the regular schools could adapt distance education programmes it will upgrade the quality of distance schooling and make it more acceptable. The regular schools should be able to assess the drawbacks in the open schooling system, he said. The distance education in schooling is offered by National Institute of Open Schooling. 14 states in India have decided to start their own open schooling institutes. Source: LatestNews-Home - Livemint.com | 15 Feb 2010 | 1:02 am Political inertia may trump vision in budgetNew Delhi: The government’s first full-year budget since its resounding re-election may signal that increasing populism and ruling coalition infighting will triumph over policies to liberalize the economy and cut record borrowing. This could be the year for India. The world is looking for motors of growth in Asia, the $1.2 trillion Indian economy is recovering faster than expected and the Congress-party led coalition also enjoys a clear majority in Parliament. In theory, the budget could allow Union finance minister Pranab Mukherjee to cut a record $97 billion government borrowing, and streamline taxes and push sales of state firms and a 3G mobile phone licence auction to bring in billions of dollars. Instead, the 74-year-old Congress party stalwart may ignore all that and produce a simple statement of accounts on 26 February. It would send a signal Congress increasingly broadcasts in its second term -- don’t rock the boat. It underlines that while Prime Minister Manmohan Singh preaches reforms, pressure from Congress rank and file to focus on social programmes combined with Mukherjee’s own reputation as a safe, if uninspiring, pair of hands may overshadow any vision. “This is a government that really does not have a mission,” said D H Pai Panandikar, head of the private think-tank RPG Foundation. “It is reactive. Don’t expect vision in the budget.” But one senior government official cautioned that the budget speech was not yet written, and there were some signs of pressure for the finance minister to present a more reform-driven budget. “People are trying to persuade him (Mukherjee) to go beyond an AFS (annual financial statement),” the official said. Social spending The budget could push new social programmes such as offering subsidised wheat and rice to the poor. Another programme, the rural employment guarantee scheme that provides jobs for millions of villagers, costs India about 1% of GDP. With little will to cut spending, government borrowing may remain at a record Rs4.51 trillion ($97 billion) and possibly put further pressure on interest rates. The government debt-to-GDP ratio is just under 80%, almost double the norm for emerging Asian markets. “Clearly there is a concern in the market over the political constraints,” said Vineet Malik, head of interest rates at HSBC India. It should not have been like this. In Congress’s first term, the communist parties it relied on for parliamentary support were blamed for the government’s slow progress in liberalizing Asia’s third-largest economy. Since its election win, those communist shackles have disappeared. But Congress, which oversaw a heavily state-run economy for decades after Independence in 1947, now seems prisoner to its leftist roots despite flirtation with reform under Singh. The government’s first deficit-laden interim budget in July, just after its election victory, disappointed many investors with a 36% spending hike funded by record borrowing. With the opposition organising protests in numerous states against food inflation at an 11-year-high, the government is under pressure from Congress party stalwarts to tone down hikes in state-regulated fuel and food prices. “The budget will signal how Mukherjee balances the economic needs of the government with the political agenda of Congress,” said Delhi-based political analyst Mahesh Rangarajan. The government’s recent decision to delay the launch of its first genetically modified (GM) vegetable was also criticized as pandering to its farmer voter base rather than science. Reform? No thanks At the crux of the problem, though, is that Congress may just not have its heart in market reform. “The problem was never the communists. The problem was within Congress itself,” said Jahangir Aziz, a JP Morgan economist in Mumbai. ”There is no real consensus within the party on these issues. Mukherjee is a wily old-timer who is one of the most powerful men in India. He knows how to balance the competing needs of India’s 28 disparate states -- a complex cauldron representing 1.2 billion people and a myriad of castes and ethnicities. “The finance minister is not gung-ho about liberalism. He’s the old school of Congress,” said economic analyst Paranjoy Guha Thakurta. ”He believes that India’s socialist past was not an unmitigated disaster.” There have been some initiatives, including announcing more sales of stakes in state companies and a streamlining of taxes. Mukherjee is also no reckless fiscal populist. He is reported to be pushing the delayed 3G auction for this fiscal year that could raise more than $7 billion for his strained accounts. “They don’t have political will to do anything,” said Surjit Bhalla, head of Oxus Investments in New Delhi, referring to efforts to cut spending and borrowing. ”But they will pay more than lip service. They have become disciplined by markets. Mukherjee knows he faces a double whammy of higher borrowing and the RBI if nothing gets done.” And if anything is going to get done, 2010 is the year. It will be perhaps the only time that Congress has almost no important state elections to worry about. In 2011, there will be elections in two key states, West Bengal and Tamil Nadu, further adding populist pressures on the government in Delhi. But with the economy possibly growing 7% this fiscal year, policies to make the Asian giant reach the kind of growth seen in rival China appear to play second fiddle to short-term political needs. “As long as the economy grows at more than 7%, Mukherjee will be happy,” said Aziz. ”He doesn’t have the 9% vision like the PM has.” Source: Home - Livemint.com | 15 Feb 2010 | 12:35 am Titagarh Wagons sees private orders swellMumbai: Railway wagon maker Titagarh Wagons, whose revenues come mostly from Indian Railways, hopes to earn more from private players on a surge in new orders, a top official said. “Most of the private companies had deferred their buying decisions. And now, with the economy looking up ... the offtake has started increasing and it will have a spiralling effect,” vice chairman Umesh Chowdhary told Reuters over the weekend. “Revenues from private sector is down to 20-30% in the current year from almost 80% a couple of years ago. So there is a lot of potential,” he added. Titagarh Wagons, which also makes heavy earth-moving and mining equipment, hopes to increase market share in India to 30-35% from about 18 % now, upping capacity at Cimmco Birla, a sick unit it jointly controls with the SK Birla Group. Cimmco, maker of similar products, is co-promoted by Titagarh and the SK Birla group through a equal joint venture (JV) signed last year. The JV is infusing funds to revive Cimmco under a scheme filed with the Board for Industrial & Financial Reconstruction. Titagarh Wagons is expecting to double capacity to more than 7,000 wagons annually after Cimmco becomes operational. “As the private wagon offtake increases, it will definitely impact our revenues because with the combined capacity of Cimmco and Titagarh, we would look at filling up our shops.” Contracts pipeline Titagarh, which sells bulk of its wagons to Indian Railways, has submitted two tenders for about 24,000 wagons in all, and expects them to be finalised shortly, Chowdhary said. The Indian Railways had registered 9% revenue increase in April-November and this could result in an increased spending towards equipment and wagons. It got orders for 1,800 wagons from the Railways this fiscal year to March, he said. “The next big tenders are under finalisation. There is a tender already open for about 18,000 wagons and there is another under finalisation for 6,000 wagons”. It has also jointly bid with ABB Ltd to make railway equipment, he added. “It’s a bid we have put in now, whether we convert it into a JV or consortium has to be seen,” Chowdhary said, declining to disclose the value. Titagarh’s JV with US-based FreightCar America to make aluminium rail cars — lighter wagons with more pay load — for the local market is yet to start production. “It’s at a design stage, this is a new concept we are introducing to the market. When you have to sell a concept to the system, there are a lot of apprehensions. Nobody wants to disturb the applecart.” At 1:04 p.m., Titagarh Wagons shares were up 1.64 percent at Rs471.1in a Mumbai market down 0.63%. Source: Home - Livemint.com | 15 Feb 2010 | 12:34 am Mittal redials Africa as India growth slowsBANGALORE (Reuters) - Will it be third-time lucky for telecoms czar Sunil Mittal? As he makes his third bid in as many years for a big acquisition in Africa, analysts say Mittal has a strong chance of realising his dreams of taking Bharti Airtel into the international arena.Source: Reuters: Money News | 15 Feb 2010 | 12:31 am Political inertia may trump vision in budgetIn theory, the budget could allow finance minister Pranab Mukherjee to cut a record $97 billion government borrowingSource: Daily News & Analysis: Money News | 15 Feb 2010 | 12:21 am Inflation rises to 8.56% in JanuaryWholesale price-based inflation rose to 8.56% in January, shooting past the RBI's forecast of 8.5% for this fiscal end, as food items such as sugar, potatoes and pulses turned costlier.Source: India Business News | Business News - Times of India | 15 Feb 2010 | 12:16 am Inflation rises to 8.56% in JanuaryNew Delhi: Inflation in January accelerated to its fastest pace in more than a year, putting more pressure on the central bank to raise borrowing rates to check rising price pressures after it already raised banks’ reserve requirements in January. But analysts say the central bank’s next move is expected only after the 26 February federal budget and could depend if the government starts to roll back its stimulus measures. The wholesale price index rose 8.56% in January from a year earlier, its highest since November 2008 and accelerating from a 7.3% gain in December, data showed on Monday. The reading beat analysts’ forecast of an 8.2% annual rise in a Reuters poll. The rise was driven by a 17.4% jump in food prices, which rose on weak monsoon rains and flooding from last year. Inflation in manufacturing picked up to 6.55% from about 5% in December, a sign that inflationary pressures were spreading to other sectors of the economy. The Reserve Bank of India (RBI) is widely expected to raise borrowing rates at its April review after it surprised markets with a stronger-than-expected rise in banks’ cash reserve requirements in January. A higher-than-expected government borrowing in the budget might hold off the central bank from raising rates as it would push up borrowing costs. The RBI governor Duvvuri Subbarao also said over the weekend the large government borrowing influences monetary policy. The government completed its market borrowing of Rs4.51 trillion ($97 billion) for the current fiscal year to end-March early this month and the RBI expects its gross market borrowing next year to be slightly higher than this year. In January, the RBI had raised the wholesale price inflation forecast for the current year to end-March to 8.5% from 6.5% with an upward bias earlier. Source: Home - Livemint.com | 15 Feb 2010 | 12:12 am Nomura to buy Nexen’s European commodities opsTokyo: Nomura Holdings Inc, Japan’s largest brokerage, said it plans to buy the European natural gas and power trading businesses of Canadian company Nexen Inc, in a deal reportedly worth about $55 million. The move comes as several other banks have expanded their commodity trading desks to replace revenues from more traditional areas of investment banking such as equity underwriting and advising on mergers and acquisitions. Nomura, which is looking to expand globally using operations bought from the bankrupt Lehman Brothers, hopes the acquisition of Nexen Energy Marketing London will bolster its existing commodities operations in Europe and Asia, expanding its presence in the fast-growing commodities sector. NEML has trading activities in Belgium, Britain, Germany and the Netherlands, and would offer Nomura access to a physical commodities trading platform, not just futures or derivatives. Nomura officials declined to provide details of the acquisition but the Financial Times reported earlier on Monday that the deal would likely to cost Nomura some $55 million. Nomura’s shares lost 1.4% to close at ¥632, while the benchmark Nikkei average fell 0.8%. Banks and investment funds have been looking to expand their commodity and energy businesses in recent years partly to capitalise on growing demand for hedges against volatile prices. JP Morgan Chase is in exclusive talks to buy the RBS Sempra commodities joint venture in a deal worth about $4 billion. Credit Agricole Corporate and Investment Bank also told Reuters this month that it plans to expand its commodity trading operations and enter the European physical gas and power markets by the end of March. Source: LatestNews-Home - Livemint.com | 15 Feb 2010 | 12:09 am Nomura to buy Nexen’s European commodities opsTokyo: Nomura Holdings Inc, Japan’s largest brokerage, said it plans to buy the European natural gas and power trading businesses of Canadian company Nexen Inc, in a deal reportedly worth about $55 million. The move comes as several other banks have expanded their commodity trading desks to replace revenues from more traditional areas of investment banking such as equity underwriting and advising on mergers and acquisitions. Nomura, which is looking to expand globally using operations bought from the bankrupt Lehman Brothers, hopes the acquisition of Nexen Energy Marketing London will bolster its existing commodities operations in Europe and Asia, expanding its presence in the fast-growing commodities sector. NEML has trading activities in Belgium, Britain, Germany and the Netherlands, and would offer Nomura access to a physical commodities trading platform, not just futures or derivatives. Nomura officials declined to provide details of the acquisition but the Financial Times reported earlier on Monday that the deal would likely to cost Nomura some $55 million. Nomura’s shares lost 1.4% to close at ¥632, while the benchmark Nikkei average fell 0.8%. Banks and investment funds have been looking to expand their commodity and energy businesses in recent years partly to capitalise on growing demand for hedges against volatile prices. JP Morgan Chase is in exclusive talks to buy the RBS Sempra commodities joint venture in a deal worth about $4 billion. Credit Agricole Corporate and Investment Bank also told Reuters this month that it plans to expand its commodity trading operations and enter the European physical gas and power markets by the end of March. Source: World Business - Livemint.com | 15 Feb 2010 | 12:09 am Bharti bid for Zain gets green signalBharti Airtel's quest to become an international telecom player got a boost with the Kuwait-based Zain Telecom agreeing to sell most of its African assets for about $10.7 billion. This would be one of the biggest cross-border deals by an IndianSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Unveil your Dream Budget 2010Business Line invites you to tell the Finance Minister your Budget expectations. Send in your Budget wish list (in about 200 words) to , along with reasoning. Attach yourSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am TCS, Reliance Capital ruling at crucial levelI am holding TCS February futures, which I purchased at 741.20. Should I continue or exit the position? – Mr M.C.S.Source: Business Line - Home Page | 15 Feb 2010 | 12:00 am ‘Copper prices likely to go up gradually'V-Guard Industries, a well-known manufacturer of voltage stabilisers, has, over a period of time diversified into other related products, catering to the ever-growing demand of the country's consumer market. The company posted a 73 per cent salesSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Gold remains vulnerable; base metals offer buying opportunityBroader market concerns have once again begun to impact commodities in the short-term even as fundamentals are showing signs of improvement. Last week, the market's concern centred on risks associated with changes in monetary and fiscal policy inSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Day Trading GuideInitiate fresh long position only if DLF moves above Rs 315, with stiffSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am 'In the US, people use properties as ATMs'As the world grapples to shake off economic recession there is no evidence to show that massive household debts are due to credit cards. On the other hand, in places such as the US, “people tend to use their properties as ATMSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Consolidated Construction Consortium - BuyInvestors with medium-term horizon can consider investing in the stock of Consolidated Construction Consortium (CCCL, RsSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am South India planters' income drops Rs 1,479 crYou may have paid more for coffee, tea, cardamom, pepper and tyres last year. If you think the producers of these commodities would have earned more, it is notSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Cane farmers to reap bonanzaCane farmers in Maharashtra are set to rake in at least Rs 4,000 crore of additional income in the current 2009-10 season due to better prices paid by sugarSource: Business Line - Home Page | 15 Feb 2010 | 12:00 am Vascon Engg lists with 3% premium; Syncom with 17% on BSE - Business Standard
Source: Business - Google News | 14 Feb 2010 | 11:57 pm Rupee gains 20 paise/$ in early trade - Business Standard
Source: Business - Google News | 14 Feb 2010 | 11:35 pm Bharti Airtel confirms $10.7 bln bid for Zain Africa assetsBharti, controlled by billionaire chairman Sunil Mittal, said its agreement for exclusive negotiations with Zain lasts until March 25 for a potential deal.Source: Daily News & Analysis: Money News | 14 Feb 2010 | 11:23 pm Shares down; Bharti sheds more than 5%Mumbai: Indian shares edged lower after fluctuating on Monday morning, as Bharti Airtel slipped on talks to buy the African assets of Kuwaiti telecoms Zain or $10.7 billion. Bharti Airtel said it was in talks to buy Zain’s African assets for $10.7 billion, a deal that would give India’s leading mobile operator a foothold in a largely untapped region with significant growth potential. This looks a bit expensive for Bharti considering these are not extremely profitable operations,” said Ambareesh Baliga, vice president at Karvy Stock Broking in Mumbai. “No doubt, those are future growth areas. But the growth will come only in 5-8 years time and in the short-term there is a risk of straining Bharti’s balance sheet,” said Baliga. Bharti was down 5.5% at Rs297.20. By 11:33 a.m., the 30-share BSE Index was trading down 0.52% at 16,068.44, with 21 of its components declining. “Even though good IIP (Index of Industrial Production) data could have helped our market, we declined due to weakness in Bharti,” said Deven Choksey, managing director & CEO of KR Choksey Shares. Industrial output in Asia’s third-largest economy grew at its fastest pace on record in December, smashing forecasts, in further evidence of a strong economic recovery that could allow the government to follow the central bank in withdrawing stimulus. “Market is also more sceptical as liquidity is not forthcoming into the system,” he added. Foreign funds have withdrawn nearly $950 million over the last 10 sessions, on concerns in their home countries. The benchmark, which had risen 81% in 2009, is down nearly 8% so far in 2010. Financials were trading lower ahead of inflation data for January which was due at around 0630 GMT. Top lender State Bank of India was down 1.2%, while private lender ICICI Bank shed 1%. Annual wholesale price inflation in January is seen at 8.21%, the median forecast in a Reuters poll of 20 economists showed. In the broader market, gainers outnumbered losers in a ratio of 1.2:1 in a volume of 135 million shares. The 50-share NSE index was down 0.5% at 4,803.75. Source: Home - Livemint.com | 14 Feb 2010 | 11:03 pm Omnifone signs music deal for Google's AndroidOmnifone, the digital music service provider, is to make its MusicStation offering available to all mobile handsets which carry Google Inc's Android operating platform.Source: Daily News & Analysis: Money News | 14 Feb 2010 | 10:58 pm Samsung, Sony Ericsson roll out new smartphonesSamsung Electronics and Sony Ericsson unveiled their new top smartphone models, both hoping to improve their positions in the more lucrative part of the phone market.Source: Daily News & Analysis: Money News | 14 Feb 2010 | 10:54 pm Bharti confirms $10.7 bn bid for Zain Africa assetsNew Delhi: Bharti Airtel launched its third attempt to gain a foothold in Africa, entering exclusive $10.7 billion talks to buy most of Kuwaiti telecom Zain’s cellular assets in a continent that offers the last opportunity for major subscriber growth. Bharti, controlled by billionaire chairman Sunil Mittal, said on Monday its agreement for exclusive negotiations with Zain lasts until 25 March for a potential deal that excludes the Kuwaiti firm’s Morocco and Sudan operations. It said any deal was subject to due diligence and required regulatory approvals. Bharti’s move comes after two failed attempts to agree a possible $24 billion deal with South Africa’s MTN Group. “The competitive pressure in the Indian telecoms sector is so high that players such as Bharti will have to redefine themselves and look for overseas expansion,” said Rishi Sahai, director at Cogence Advisors, an M&A advisory firm. “The chances of a deal happening this time is very high unless some regulatory issues come up.” Bharti’s 119 million mobile users in India account for about 23% of the world’s fastest-growing mobile market, but margins in India have been hit by a vicious price war which has seen some call charges slashed to a fraction of a US cent. Also Read | Zain accepts Bharti’s bid for Africa ops Norway’s Telenor launched Indian operations in December and 6th-ranked Tata Teleservices, part owned by Japan’s NTT DoCoMo has outpaced Bharti in recent months. Shares in Bharti, India’s eighth-most valuable firm at about $25 billion, were trading down 5% at Rs298.70 at 10.50 a.m., in a flat Mumbai market. Zain’s board has approved the sale to Bharti, which is 30%-owned by Singapore Telecommunications Ltd, a person familiar with the issue said on Sunday. Africa represents about 62% of Zain’s 64.7 million customers, but only 15% of group net profit. “It’s going to be a big challenge for Bharti to make money out of Zain’s African assets and some may think it’s not a value acquisition, but the key factor is there are not enough sellers available in the global telecoms market,” said Sahai of Cogence. The person familiar with the development said Bharti put forward the “most compelling offer”, but there were other suitors for the assets who could come back if the Indian firm fails to deliver a deal. Third time lucky? Bharti has been hunting for emerging market acquisitions as its home market becomes increasingly competitive. It reported its slowest profit growth in more than three years for the December quarter. “In three to four years, the Indian operations will be saturated and they need new markets,” said RK Gupta, managing director at Taurus Asset Management in New Delhi. Bharti’s planned tie-up with MTN failed in September, for a second time, with political rather than commercial factors seen as the deal-killer. Africa is seen as a natural fit for Bharti, which has thrived in an Indian market with low incomes and tariffs and a heavily rural population — characteristics shared by African countries. Mobile phone penetration in half of Africa’s countries was below 40% as of August, and a dozen countries had penetration below 30%, according to a research report. Last month, Bharti agreed to buy 70% of Bangladesh’s Warid Telecom for an initial investment of $300 million. It also set up a new unit and said current CEO Manoj Kohli would head the international business unit from April to drive foreign expansion, focused on emerging markets, where it can replicate its low-price, high-volume model. Bharti, the only cash generating firm among listed Indian telecom firms, has a low gearing, which should help it take more debt on its books. As of end-December, Bharti had net debt of Rs1,931 crore ($416 million) at a debt-equity of 0.05 and cash balances of Rs504 crore, according to its quarterly report. Reversal Offloading the African operations would mark a strategic reversal for Zain, which has spent more than $12 billion expanding in Africa since 2005. Its reach from Burkina Faso to Zambia and its ubiquitous logo transformed it into a symbol of national pride synonymous with Kuwait’s faltering aspirations to diversify beyond oil. Analysts have pointed to Zain’s underperforming assets in Nigeria and Kenya as a burden on the group, but note its presence in sub-Saharan Africa harbours valuable growth. Zain pulled back from an expansion spree last year and rejected an offer from France’s Vivendi for its African assets. It then halted talks to sell the assets to appease potential buyers of a 46%t stake in the parent company. A consortium of Asian investors has been trying to buy that 46% stake from Kuwaiti family conglomerate Kharafi Group for about $13.7 billion. The sale of the African operations would likely end that initiative. Zain last week appointed Nabil bin Salama as chief executive, replacing Saad al-Barrak, seen as the driving force behind the growth into around a couple of dozen African and west Asia markets. Source: Home - Livemint.com | 14 Feb 2010 | 10:43 pm China tycoon Huang Guangyu charged with insider tradingHuang, founder of GOME Electrical Appliances, will face trial in the Beijing Second Intermediate People's Court.Source: Daily News & Analysis: Money News | 14 Feb 2010 | 10:39 pm Oil steady above $74; Japan growth eases demand concernSinapore: US crude was steady above $74 on Monday after stronger-than-expected Japanese growth data eased concerns that energy demand would taper off as China tightens monetary policy. Crude fell for the first time in four days on Friday, touching an intra-day low of $72.66, after China’s central bank increased the percentage of cash banks must keep as reserves, the second such increase this year. US crude for March delivery rose 14 cents to $74.27 a barrel at 0326 GMT. London ICE Brent for April climbed 25 cents to $73.15. “When you look at prices I don’t see much more downside,” said Mark Pervan, senior commodities analyst at ANZ in Melbourne. “China, Japan, Korea, Taiwan and other Asian economies are going to perform very well this year notwithstanding what the Chinese government is doing to control growth.” Japan’s economy expanded at the fastest pace in two quarters, and more than expected, in October-December as an export recovery spurred capital spending. Asia, US holidays Holidays around the world are set to curb liquidity in oil markets on Monday. China’s markets are closed this week for the Lunar New Year holiday, as are markets in Taiwan, Hong Kong, Vietnam, Malaysia and Singapore. In the United States markets are closed for Presidents’ Day. European markets are still open, and it is action there on debt-laden Greece that could set the tone for the euro and US dollar. The euro was near nine-month lows against the dollar on Monday as doubts intensified about whether policymakers in the euro zone will help Greece, prompting investors to add to long positions in the greenback. Euro zone finance ministers, scheduled to meet Monday and Tuesday, are expected to call on Greece to fully implement planned budget deficit cuts so that the euro area would never have to deliver on its pledge last week of support for Athens. Demand for distillates in the US, a fuel category that includes heating oil and diesel, was down 8% in the four weeks to 5 February from a year earlier, government data showed on Friday. The nation’s crude oil and gasoline inventories rose more than forecast in the first week of February, while distillates fell much less than expected. Source: Home - Livemint.com | 14 Feb 2010 | 10:03 pm Rupee gains 11 paise against dollar in early tradeThe rupee appreciated against the dollar by 11 paise to 46.39 on the forex market in early trade today on fresh inflow of overseas funds amid rising domestic equity market.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 9:53 pm Bharti Airtel in exclusive talks with Zain for Africa unitA day after Kuwait's Zain Telecom approved the bid by Bharti Airtel, the Indian telecom operator today said it has entered into exclusive talks with Zain for acquiring its African operations based on an enterprise value of $10.7 billion.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 9:49 pm Sensex opens higher on investment buyingThe Bombay Stock Exchange benchmark Sensex today opened higher over 74 points on emergence of buying by investors and funds in heavy weight stocks available at an attractive low level.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 9:44 pm Samsung, Sony Ericsson roll out new smartphonesBARCELONA (Reuters) - Samsung Electronics and Sony Ericsson unveiled their new top smartphone models on Sunday, both hoping to improve their positions in the more lucrative part of the phone market.Source: Reuters: Money News | 14 Feb 2010 | 8:07 pm Some rollback of stimulus likelyFinance minister Pranab Mukherjee may be propitiously placed to deliver a feel good Budget that does not tinker with direct taxes, aims to nurture growth and still slips in a dose of fiscal medicine by way of a small rollback of stimulus incentives.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 3:47 pm No decision yet on fuel price hike, Deora saysNew Delhi: Union petroleum minister Murli Deora on Sunday held an inconclusive meeting with finance minister Pranab Mukherjee regarding fuel prices and mounting under-recoveries of oil marketing firms as the United Progressive Alliance (UPA) government continued to hedge its political bets on the issue. “No decision has been taken till now,” Deora told reporters after the meeting. Petroleum secretary S. Sundareshan said, “The meeting was about under-recoveries and the Kirit Parikh Committee report.” The petroleum ministry’s proposals, based on the recommendations of a panel led by former Planning Commission member Kirit Parikh, could increase inflationary pressure on the economy. It entails raising the prices of diesel, petrol, kerosene and cooking gas by as much as Rs2 per litre, Rs3 per litre, Rs3 per litre and Rs50 per cylinder, respectively, overturning decades of control by the government to shield consumers from global market fluctuations. Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 12:18 pm IT biggies set to hire 1 lakhSwitching over to robust recruitment mode after a dormant 2009, Indian IT players will hire nearly one lakh people in the coming months amid improving global economic conditions.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 12:17 pm MTS eyes growth from mobile dataMTS, Russia's largest mobile phone operator, which launched CDMA mobile services in India a little over a year ago, is daring to be different by focusing on the data segment rather than voice for increased market penetration.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 12:15 pm PMEAC to up growth target for 2009-10The Prime Minister's economic advisory body is all set to revise its GDP outlook for 2009-10 from the earlier estimate of 6.75%, as it feels that the economic expansion would beat even the official projection of 7.2%, on the back stunning industrial recovery.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 12:10 pm Taking Stock for 14 February 2010Monday, 8 February 2010 The Sensex gained marginally Monday, February 8th after swinging between gains and losses at least 15 times as investors remained cautious on news of Europe’s sovereign debt issues. Stocks ended the day mixed. Franchisee of Domino’s Pizza, Jubilant Foodworks, debuted on the BSE jumping 58% on its first day of trading. Tuesday, 9 February 2010 Stocks rose on Tuesday as concerns that Europe’s deficit could impact a global economic recovery eased. IT services providers, which get a third of their sales from Europe climbed for the day. Cement makers also rose after reporting a 15% surge in January sales. Wednesday, 10 February 2010 The Sensitive Index fell for the first time in 4 days on speculation that the government could withdraw its fiscal stimulus package. Larsen & Toubro, Mahindra & Mahindra and BHEL all took a hit. Tata Steel also retreated after ArcelorMittal, the world’s largest steel maker, said its Q1 profits would fall. Thursday, 11 February 2010 The gauge advanced on Thursday after Trade Minister Anand Sharma announced that exports climbed in January. DLF rose after it announced good January sales. Infrastructure stocks and other real-estate companies followed suit. The Sensex has fallen 8.8% from its January 6th high. Top gainers for the day were Hero Honda, Jaiprakash Associates, ICICI Bank, Mahindra & Mahindra and Reliance Industries. Top losers included Tata Power and Bharti Airtel. All sector indices ended the in the green. Markets were closed on Friday on account of Maha Shivratri Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 12:09 pm Domestic carriers close in on their international rivalsDomestic airline companies Jet Airways, Kingfisher and Air India are starting to overtake international carriers on certain key global routes and challenge their decades of domination.Source: Business Standard | Front Page Headlines | 14 Feb 2010 | 12:09 pm Sebi wants breather on 25% public holding normMarket regulator Securities and Exchange Board of India (Sebi) has told the government that it favours giving companies five years to increase their public shareholding to 25 per cent.Source: Business Standard | Front Page Headlines | 14 Feb 2010 | 12:06 pm Day after, Singh seeks quick probe into Pune bomb blastNew Delhi/Pune: Prime Minister Manmohan Singh on Sunday sought a quick probe of the bomb blast in a Pune restaurant that left at least nine people dead, as the government came under fire from opposition parties that said the attack resulted from an intelligence failure. Singh directed the Union and Maharashtra governments to coordinate efforts and take effective action so that “the culprits responsible for this heinous act are identified and brought to justice at the earliest”, a spokesman for the Prime Minister’s Office (PMO) said. The bomb, left in a backpack under a table at the popular German Bakery in Pune’s Koregaon Park area on Saturday night, also wounded 57 people. The first big attack in the country since the 2008 Mumbai massacre, the blast appeared to target both Indian and foreign tourists. Koregaon Park is the location of the Jewish Chabad House and the Osho Ashram.  Picking up the pieces: Firefighters remove debris from the site of the bomb blast in Pune, which left at least nine dead and 57 wounded. Reuters Pakistan Prime Minister Yousuf Raza Gilani condemned the Pune blast and sought a “meaningful dialogue” with India. “We condemn terrorism in all its manifestations,” Gilani said in Rawalpindi. Both the Bharatiya Janata Party (BJP) and the Left parties raised questions about the efficacy of the government’s intelligence-gathering machinery. The government “must seriously introspect whether our intelligence collection and security responses are still inadequate”, the BJP said. The main opposition also asked the government not to go ahead with “misconceived and adventurist steps” such as resuming a dialogue with Pakistan. “Terror and talks cannot co-exist,” said the leader of the Opposition in the Rajya Sabha, Arun Jaitley. Home minister P. Chidambaram told reporters in Pune that the blast wasn’t the result of an intelligence failure. German Bakery was a soft target in an area that had been on the radar of intelligence officials, Chidambaram said. “This particular area has been on the radar for quite some time. But this was not an overt attack by a gunman, but an insidious attack with a bomb planted in a soft target.” He declined to speculate on the impact of the Pune blast on India- Pakistan talks. (‘Reuters’ contributed to this story.) feedback@livemint.com Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 12:01 pm Is the govt trying to talk up the economy?Two events that took place last week provide food for thought. Literally.  On the other hand, participants at a meeting of the Commission on Growth and Development, which consists of government officials, business executives and policymakers supported by a few countries and institutions such as the World Bank, met in New Delhi and concurred that the global economic meltdown was not an aberration and instead was a game changer; worse, none of them was willing to predict how the new world economic order would look or behave. Taking the two together, the implicit conclusion is that India has delinked from the world. The government’s spin doctors have already begun to talk up the economy; they are suggesting that the recovery in India is for real and very soon the economy would revert to the 8%-plus growth trajectory that it averaged in the last decade. Not necessarily, if we review the economic data put out by the government with the desired objectivity. Also Read | Anil Padmanabhan’s earlier column Agricultural growth, according to the latest projections, is expected to stage a partial recovery that dramatically mitigates the damage from drought—as a result, the overall decline would be only about 0.2%. This claim is premised on certain assumptions or bets, which in such challenging economic times can be termed potentially dangerous. The national income data is based on advance estimates submitted by the ministry of agriculture. Here again, there are crops that can be forecast—foodgrains, fibres, oilseeds and sugar (that have a collective weight of 56% in total agricultural output)—and those cannot be forecast and are simply guesstimates—fruits and vegetables; medicinal crops; kitchen garden produce (with a collective weight of 44%). The advance estimates, conforming to the estimates included in national income, on agriculture put out by the ministry reveal that the items that can be forecast decline by 7%. In the case of items that cannot be forecast, we have to simply go by the residual method. Fruits and vegetables, which have a 24% weight in overall agricultural output, the government claims, are growing at 4% (an interesting aside is that this implies no supply-side constraint and yet prices of fruits and vegetables are growing at 10%-plus). In net, agricultural output, which has 80% weight, is declining at 3%. In other words, the residual portion, which accounts for 20% of agricultural output, has to grow by at least 10% to return an overall decline in agriculture of 0.2%. This seems to be an improbable assumption, especially since a portion of this output, such as straw, is a by-product of foodgrain output, which even the agriculture ministry accepts has been affected. Given the tricky circumstances of the global economy, it would be better to err on the side of caution and assume, as some economists suggest, that the agricultural sector will decline by about 3%. (More realistic, given that during the last drought in 2002-03, which was less severe than last year’s, agriculture output declined by 7.2%.) Given its share in total national income of about 17%, this should translate into growth in the range of 6.8%; more modest than the 7%-plus projection, but will at least not trigger hubris—which would be logical given the 16-year-high headlines that the December industrial output drew from the media. Although almost every media outlet flagged the fact that this had a base effect—since industrial output declined by 0.2% in December 2008, exaggerating the spurt dramatically—the headlines, especially in light of the earlier good news on national income projections for 2009-10, would have overshadowed references of circumspection. What then is the fallout of reading too much optimism into the growth numbers of last week? Most obviously it would be tantamount to talking up the economy. At this stage it can only mean that the government is preparing the ground to effect a partial rollback of the fiscal stimulus—such that the government signals its return to the path of fiscal rectitude. I am not sure you need to justify the end outcome; it is a credible objective and now a mantra that the country largely accepts. However, the more damaging fallout is being prey to hubris. This is the very same characteristic that allowed Wall Street high-fliers to lure the entire world into an unprecedented economic disaster; not only will we never return to a normal state of affairs, the new normal, as the economists spelt out in New Delhi last week, is anybody’s guess. To quote philosopher George Santayana: “Those who cannot remember the past are condemned to repeat it.” In this case, it is a very recent past. Anil Padmanabhan is a deputy managing editor of Mint and writes every week on the intersection of politics and economics. Comments are welcome at capitalcalculus@livemint.com Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 11:59 am Tatas spark price war in purifier marketThe entry of Tatas in the low-end water purifier market with 'Swach' has created ripples. Eureka Forbes and Hindustan Unilever (HUL), too, have swung into action with their low-priced innovations.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 11:57 am Zain accepts Bharti offerIn one of the largest cross-border deals, Kuwait-based telecom company Zain, the third-largest operator in the Arab world, is said to have accepted a $10.7 billion offer (around Rs 49,700 crore) from Bharti Airtel for Zains African assets.Source: India Business News | Business News - Times of India | 14 Feb 2010 | 11:55 am Acquisitions to drive ArcelorMittal’s growthNew Delhi: Global steel firm ArcelorMittal NV has said that it is likely to continue to expand its base by acquiring companies worldwide, even though it maintains that an inorganic growth route could harm its financials. “ArcelorMittal has grown through acquisitions and will likely continue to do so. Failure to manage external growth and difficulties integrating acquired companies could harm ArcelorMittal’s future results of operations, financial conditions and prospects,” the firm said in a regulatory filing to the US Securities and Exchange Commission. The world’s largest steel maker, formed after the merger of Mittal Steel and Arcelor in 2006, has been growing mainly through acquisitions. The company, however, said it was also banking on the organic route for capacity expansion, which also suffers from operational risks. “...its growth strategy includes greenfield and brownfield projects that are inherently subject to completion and financing risks, which, if realized, could adversely affect ArcelorMittal’s results of operations and financial condition,” it said under “risk factors” in the filing. “As a part of its growth strategy, the company plans to expand its steel-making capacity and raw material self-sufficiency through a combination of brownfield growth, greenfield projects and acquisition opportunities, mainly by entering markets such as India, Africa and Brazil”, it added. ArcelorMittal chairman L.N. Mittal had last month criticized the country’s investment climate and rued the delays of his proposed projects—one each in Jharkhand and Orissa, which are yet to take off even after four years—entailing an estimated investment of around Rs 1 trillion. The company is also considering setting up a 6 mtpa integrated steel plant in Karnataka along with a 750MW power plant. The steel company marked its first operational presence in the country by entering into a joint venture with domestic steel maker Uttam Galva Steels Ltd . ArcelorMittal acquired 28.8% stake in the company and is in the process of buying an additional 4.9% stake in this Mumbai-based steel producer. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 11:54 am RIL, BP in race to buy Canadian oil firm: reportLondon: British oil firm BP Plc is in talks to pay about $1.2 billion (Rs5,580 crore) for a majority stake in a privately held Canadian company with large reserves of oil-rich sand deposits, the ‘Sunday Times’ reported. A deal to take a stake in Value Creation Inc. could anger environmentalists and some BP shareholders who fiercely oppose the oil sands business, which they say is expensive and environmentally damaging, the paper said. Value Creation is in financial trouble and faces being put into receivership on Monday, it reported. BP declined to comment. Reliance Industries Ltd (RIL), which operates the world’s biggest oil refining complex in India, is thought to have made a rival $2 billion takeover bid but BP is understood to be the preferred partner, the paper said. Value Creation’s largest block of leases, Terre de Grace, covers about 290 square miles in the Athabasca region of Alberta. feedback@livemint.com Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 11:42 am UPA set to roll out new fiscal reformsNew Delhi: Fiscal discipline will be one of the themes of the Budget that the finance minister will present to Parliament on 26 February.  The cabinet’s decision means the government, in effect, has accepted TFC’s blueprint for fiscal consolidation that revolves around a new expenditure management strategy which ensures commercial viability of projects and also tackles the problem of burgeoning subsidies. It also means a reaffirmation of the government’s disinvestment agenda and an endorsement of a three-year transition to a single goods and services tax (GST) regime. The acceptance of TFC’s recommendations signal the government’s return to fiscal rectitude, a move that is significant in the context of the dramatic fiscal slippage in 2009-10—to 6.8% of gross domestic product (GDP). While one dimension of the Budget will reflect the recommendations of TFC, another will reaffirm the government’s inclusive agenda, particularly with respect to financial inclusion—a recent study of the Reserve Bank of India found that nearly 70% of rural households do not have access to institutional credit of any kind—and food security. TFC is a statutory body tasked with suggesting ways in which taxes should be shared between the federal government and the states. The report is expected to be tabled in Parliament on 25 February. Also Read All of Mint’s Budget Coverage The commission, chaired by former finance secretary Vijay Kelkar, was constituted in 2007 and its terms of reference expanded in August 2008 to “suggest a suitably revised road map with a view to maintaining the gains of fiscal consolidation through 2010 to 2015”. TFC’s recommendations cover a five-year period beginning April 2010. At present, based on the 12th Finance Commission’s recommendations, 30.5% of the Union government’s tax revenues are transferred to states with a greater share to poorer states. Significantly, as Mint had reported on 5 January, TFC has fashioned a Rs50,000 crore incentive-cum-safety net package for states to transition to GST. If the states do suffer a revenue loss, then this corpus will be used to compensate them; alternatively, it would be paid out to states based on the new devolution or sharing formula being laid down by TFC. The incentives, the same government official said, would hopefully break the deadlock between the Centre and states and begin the transition to GST. The two sides differ on the structure, with the states wanting a dual-rate GST. TFC has endorsed what it describes as a “flawless” GST that will include all items and have a single rate; it has however not recommended any rates, leaving it to the Union and state governments. To create the enabling legal environment for the “right kind of” GST, TFC has suggested that Article 278 of the Constitution be restored. This will allow the Centre and states to sign a tax treaty, which could then signal their joint intent of moving ahead on GST. This, the same person said, was necessary so that businesses and other economic entities have sufficient time to undertake the transition. Article 278 allowed erstwhile princely states to enter into an agreement with the Union government with respect to levy and collections of a Central tax within the state. This section of the Constitution was removed in 1956 to bring about a reorganization of states based on a linguistic framework. TFC has also recommended a fresh approach to disinvestment of government stakes from public sector units. The recommendations argue for a review of the country’s “public capital assets”—look to exit from existing public sector assets, where the private sector is either a significant or dominant player, and invest the proceeds in creating new public goods such as rural roads. This would signal a substantive ideological shift in the government’s approach to disinvestment. Source: Home - Livemint.com | 14 Feb 2010 | 11:41 am Irda wants Sebi to keep off UlipsMumbai: India’s insurance and stock market regulators are engaged in a turf war over the regulation of unit-linked insurance plans, or Ulips, insurance products that mimic mutual funds. The Securities and Exchange Board of India (Sebi) fired the first salvo last month when it sent a show-cause notice to all life insurance companies, including state-owned Life Insurance Corp. of India, or LIC, asking them to explain why they hadn’t taken its prior approval before launching Ulips. The Insurance Regulatory and Development Authority, or Irda, hit back on Saturday. “Ulips, globally, are managed by insurance regulators, and under no circumstance will we let Ulips to be taken over by Sebi,” R. Kannan, a member of Irda, said in an interview. Also See Insurance or Investment? (PDF) Sebi’s argument is that since Ulips generate a return on investment, they are similar to collective investment schemes such as mutual funds, which come under its jurisdiction. Ulips are hybrid products; the premiums collected from Ulips are predominantly invested in equities and bonds while a portion of the fund is kept aside as insurance. Section 11AA of the Sebi Act defines a collective investment scheme as any scheme or arrangement offered by a company under which payments made by investors are pooled and utilized to receive profit, income, produce or property, and is managed on behalf of the investors. The Act specifies that these are schemes where investors do not have day-to-day control over management and operation. The Act, however, mentions that any scheme or arrangement being a contract of insurance, to which the Insurance Act applies, is not included under the definition of a collective investment scheme. Irda has held several discussions with the top management of all life insurers following Sebi’s notice. Kannan said that while some life insurers had already responded to Sebi’s notice, the rest would send their replies in the next few days. Irda’s position is that since Ulips also provide mortality benefits along with returns on investments, the product should continue to remain under the insurance regulator’s jurisdiction. “Ulips are licensed by Irda and the companies have been selling these products for the past 10 years,” said S.B. Mathur, former chairman of LIC and the present secretary of Life Insurance Council, an industry body. “Even internationally, Ulips are sold by insurance companies and are regulated by insurance regulators,” added Mathur, who, however, declined to comment specifically on the turf battle between Irda and Sebi. India, where the life insurance industry was opened up about a decade ago with the dismantling of LIC’s monopoly, has 23 life insurers with assets worth Rs10 trillion. Ulips are popular among investors and for some private insurers, as much as 90% of premiums come from Ulips. In the first nine months of the current fiscal, Ulips accounted for new business premiums worth Rs35,722 crore. The jump in Ulip sales could be explained by the fact that most insurance agents make extra efforts to sell Ulips to get commissions that are higher than those earned from selling a conventional insurance plan, such as an endowment plan or a term assurance plan. Ulips come in different forms—assured return, balanced and growth. In assured return plans, a majority of the premium paid is invested in fixed-income securities such as government bonds, while in a growth plan, up to 100% of the premium could be allocated to equities, depending on a policyholder’s choice. Returns on Ulips depend on the market value of the securities in which the premium money is invested, similar to mutual funds. Expenses and commission charges towards management of assets under Ulips are modelled on mutual funds. They are deducted from the premiums paid by policyholders. In fact, the charges deducted as agent commissions from a Ulip premium can be as high as 40%. Although Sebi’s show-cause notice to insurers is a relatively recent development, the turf battle on Ulips has been in the making for about a year. The issue has also been discussed at a meeting of the high-level coordination committee on capital markets, of which the chiefs of both Irda and Sebi are members. According to data from the Life Insurance Council, total new business premiums rose by 29% to Rs67,438 crore during April-December, from Rs52,215 crore in the year-ago period. The renewal premium increased from Rs79,168 crore to Rs96,917 crore, an increase of 22%. In the case of Ulips, renewal premiums increased by 41% to Rs37,543 crore from Rs26,638 crore. The industry’s investments in equities were to the tune of Rs44,358 crore. In recent years, life insurers have emerged as the biggest institutional investors in the equity markets. The value of equity assets under the life insurance industry was Rs4.15 trillion at the end of December. LIC alone announced plans to invest at least Rs50,000 crore in the current fiscal year. Source: LatestNews-Home - Livemint.com | 14 Feb 2010 | 11:40 am No electronics fault in vehicles recalled, says Toyota MotorTokyo: Toyota Motor Corp. has submitted a letter to the US Congress denying there was a fault with the electronics in millions of vehicles it has recalled due to problems with the accelerator, reports said on Sunday.  Embattled head: Toyota president Akio Toyoda surrounded by journalists. Toyoda was reportedly prepared to testify at US congressional hearings if formally asked to do so, as pressure mounted over the rash of recalls. Haruyoshi Yamaguchi / Bloomberg Toyota also referred to its plans to expand the number of vehicles equipped with computerized brake override systems designed to prevent unintended acceleration, stressing its drive to improve safety measures on its vehicles, the Yomiuri said. The reports came as embattled Toyota president Akio Toyoda was reportedly prepared to testify at US congressional hearings if formally asked to do so, with the automaker facing intense pressure in the US over the rash of recalls. The Japanese car company has recalled millions of vehicles worldwide in past months due to problems linked to accelerator and brake functions, sullying the company’s safety reputation. A separate report by TheWall Street Journal said Toyota commissioned a study into the electronics in its vehicles, which supports the carmaker’s assertion that there is no evidence of problems in the electronics. “Exponent has so far been unable to induce, through electrical disturbances to the system, either unintended acceleration or behaviour that might be a precursor to such an event, despite concerted efforts toward this goal,” concludes the study being carried out by engineering research firm Exponent, the US business daily said online. The preliminary study has been shared with US lawmakers planning hearings on Toyota’s safety record, it said. Toyota officials were not immediately available to comment on the reports. Source: World Business - Livemint.com | 14 Feb 2010 | 10:09 am
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