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Not looking at aggressive price hikes: Harsh MariwalaMarico\'s Harsh Mariwala has said that the company is not looking at aggressive price hikes. \"We may consider a marginal price hike,\" he said.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 7:07 am Bilpower to spinoff unit; gives one share for each heldBilpower Ltd said on Tuesday its board has approved spinning off its manufacturing unit into Bil Energy Systems and would allot one share for every one held in the parent.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 7:00 am Ford India to export compact Figo to S.AfricaFord Motor\'s India unit will export its compact car Figo to South AfricaSource: Moneycontrol Top Headlines | 9 Mar 2010 | 7:00 am ABB gets orders worth $22 million from Haryana utilityABB Ltd said on Tuesday it won orders worth USD 22 million from Haryana Vidyut Prasaran Nigam Ltd for four turnkey substations.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 7:00 am China says committed to US debt, wary on goldChina, the world\'s biggest holder of foreign exchange reserves, renewed its commitment to the US Treasury market on Tuesday but said it would be wary of substantially boosting its gold holdings.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:35 am South Korea transport goes green on recharging roadSouth Korea is trying a new way to turn public transport green by using a technology popular in electric toothbrushes and razors to power buses and cars.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:11 am Citi Private Bank hires two Barclays Wealth execsCitigroup Inc\'s private bank unit has hired two senior Barclays Wealth advisers to help expand its high net worth business across more US cities.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:11 am Swiss BSI aims to triple Asia assets in 5 yearsSwiss wealth manager BSI aims to more than triple its clients assets to 10 billion Swiss francs (USD 9.3 billion) in five years, after a recruitment binge in which it attracted about half of its new staff from RBS Coutts.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:11 am No US word on Reliance\'s fuel sale to Iran: MinisterJunior oil minister Jitin Prasada on Tuesday said the US government has not raised the issue of gasoline sales by Indian firms to Iran.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:11 am Raid by IT dept only a survey, says Bhushan SteelThere has been news about an income tax (IT) raid on Bhushan Steel Strips. In an interview with CNBCTV18, Nitin Johri, Chief Financial Officer of the company, spoke about it.Source: Moneycontrol Top Headlines | 9 Mar 2010 | 6:04 am India "associates" with Copenhagen Accord: minister - Reuters India
Source: Business - Google News | 9 Mar 2010 | 3:04 am Audi sees clear rise in 2010 revenueAudi's net cash flow rose 21% to 2.32 billion euros. Audi finance chief Axel Strotbek forecast "clearly" higher revenue and operating profit as the brand exceeds the 1 million mark in vehicle sales this year.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 3:01 am China car sales rise 55% in February; policy supportsBuoyant consumer spending in China, the world's largest auto market, has helped global car manufacturers combat a downturn in their traditional markets.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 2:57 am Ford launches Figo priced at Rs3.5-4.48 lakhNew Delhi: US carmaker Ford on Tuesday launched its much anticipated global small car ‘Figo’ in the Indian market, priced at Rs3.5 lakh to Rs4.48 lakh. The company said it will be exporting the car from India to various markets across the globe, with South Africa being the initial target. “For years, we have been seen as offering only premium priced products in India, and that has kept us as a small player operating in only 20% of the market. With Figo, customers will see a premium product offered to the mainstream market at an affordable price,” Ford India executive director (Marketing, Sales and Service) Nigel Wark told reporters here. The car would be available with a 1.2 litre petrol and a 1.4 litre diesel engine. While the entry-level version of the petrol variant will come at Rs3.5 lakh, the diesel one is priced at Rs4.48 lakh. The company claimed that the car would give a mileage of 15.6 kilometre and 20 kilometre in every litre in the petrol and diesel versions, respectively. The company is also looking at making India an export hub for the small car. “We are preparing for export and South Africa will be the first market where Figo will go out of India. We will be adding more markets to Figo’s list later,” Ford India managing director Michael Boneham said. The Figo would be produced at Ford India’s Chennai plant which has an annual capacity of two lakh units. “Other variants of the petrol engine are slated to be produced at the plant for eventual use in the global markets,“ Ford India said. The company started work on the small car in 2007 and the global unveiling of the Figo was done in September last year during the India visit of Ford Motor Company president and CEO Alan Mulally. “We will become a significant player in the compact car segment with this car,” Mulally had said during the occasion. He had further added: “Our plan for India involves accelerating development of fuel efficient small cars. The small car market in India will double in the next one decade.” Currently small cars account for over 72% of the 1.22 million units sold in India. Source: LatestNews-Home - Livemint.com | 9 Mar 2010 | 2:40 am Audi sees clear rise in 2010 revenue, oper profitINGOLSTADT, Germany (Reuters) - German luxury carmaker Audi delivered the bulk of earnings and cash to Volkswagen's group results in 2009 and forecast better results this year.Source: Reuters: Money News | 9 Mar 2010 | 2:37 am India 'associates' with Copenhagen Accord - ministerNEW DELHI, March 9 (Reuters) - India has agreed to formally associate itself with the climate accord struck in Copenhagen last year, one of the last major emitters to do so, the environment minister said in a statement to parliament.Source: Reuters: Money News | 9 Mar 2010 | 2:36 am Angel Broking advises avoid on NMDC FPO issue - Moneycontrol.com
Source: Business - Google News | 9 Mar 2010 | 2:31 am Taxes account for 51.5 per cent of petrol price in Delhi - The Hindu
Source: Business - Google News | 9 Mar 2010 | 2:31 am Tayals not promoters of Bank of Rajasthan, says CEO - Business Standard
Source: Business - Google News | 9 Mar 2010 | 2:24 am China car sales rise 55 pct in Feb; policy supportsSHANGHAI (Reuters) - China's passenger car sales in February rose 55 percent from a year earlier, the official industry association said on Tuesday, as policy incentives continued to lure buyers into showrooms during the holidays.Source: Reuters: Money News | 9 Mar 2010 | 2:22 am World stocks off 6-week high; oil tumblesLONDON (Reuters) - World stocks inched lower on Tuesday from the previous day's six-week high and oil tumbled, while the yen rose broadly as investors grew cautious after a recent rally in riskier assets.Source: Reuters: Money News | 9 Mar 2010 | 2:12 am Govt to continue reforms to strengthen economy - minNEW DELHI (Reuters) - The government will continue with economic reforms to strengthen the economy, Minister of State for Finance Namo Narain Meena told parliament in a written reply on Tuesday.Source: Reuters: Money News | 9 Mar 2010 | 2:08 am RIL made 20 visits to facilities;revised offer twice: Lyondell - Business Standard
Source: Business - Google News | 9 Mar 2010 | 1:57 am Sensex choppy; HDFC, TCS, Wipro, Maruti shine - Moneycontrol.com
Source: Business - Google News | 9 Mar 2010 | 1:55 am Honda India bike unit plans $103 mil second plantMUMBAI (Reuters) - Japan's Honda will invest 4.7 billion rupees ($103 million) to build a second production plant in India, with an annual capacity of 600,000 units, to meet rising demand in the world's second-largest motorcycle market.Source: Reuters: Money News | 9 Mar 2010 | 1:50 am Bosch declares lockout at Bangalore plantAuto parts maker Bosch Ltd said on Tuesday it has declared a lockout at its plant in Bangalore effective March 8.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 1:40 am Tyre cos hold prices despite rubber rally, hits marginsMUMBAI (Reuters) - India's top tyre firms are reluctantly holding prices, risking a hit on profit margins, despite a recent surge in input costs as they wait for prices of natural rubber to stabilise from a current record high.Source: Reuters: Money News | 9 Mar 2010 | 1:38 am Ford India to export compact Figo to South AfricaFord Motor's India unit will export its compact car Figo to South Africa, its India head Michael Boneham said on Tuesday at a news conference while launching the car in India.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 1:34 am India most optimistic on hiring in Q2: ManpowerNew Delhi: India continued to be the most optimistic nation in terms of hiring plans for the next three months, driven by strong job opportunities across all sectors including finance and realty sectors, global staffing services firm Manpower said. According to the quarterly ‘Employment Outlook Survey’, India Inc’s hiring outlook improved by four percentage points for the April-June period compared to the previous quarter. “With Net Employment Outlook of 39%, Indian employers report the most optimistic forecast among all 36 countries and territories participating in the survey,” it said. “Employers remain optimistic on account of strong domestic growth. We are witnessing improved opportunities for job seekers across all industry sectors with employers indicating that hiring in India’s Services and Finance, Insurance & Real Estate sectors will accelerate in the months ahead, ” Manpower India managing director Sanjay Pandit said. India has been reporting the strongest hiring plans globally since the third quarter of 2008. The survey stated that job seekers in the services industry sector --finance, insurance, realty, manufacturing sector and mining & construction, can look forward to the most favourable hiring environment in the April-June time frame. Moreover, job prospects in the Asia Pacific region remain strong, with the exception of Japan, and hiring outlook continue to improve modestly in most of the American region. Employer hiring intentions are strongest in India, Brazil and Taiwan, while in the US they are similar to three months ago period, but more optimistic compared to last year at this time, Manpower said. “Growing confidence could be attributed to robust industrial output, a continuous surge in demand in consumer goods, auto sector and bounce back in IT and ITES sectors,” Pandit said about India. Employers in finance, insurance and real estate sector also report a four percentage point improvement in net employment outlook over the last quarter. The softest hiring pace in India is reported by employers in the transportation & utilities sector (28%). Employers in the manufacturing sector (38%) report substantial improvements in their quarter-over-quarter hiring outlook. Moreover, companies in all four regions in the country expect year-over-year hiring activity to improve considerably. Employers in various regions -- East (42%), West (40%) and South (40%) report the country’s strongest hiring expectations. The survey is conducted quarterly to measure employers’ intentions to increase or decrease the number of employees in their workforce during the next quarter. Globally, the Manpower survey shows employers in 27 of 36 countries and territories expect some positive hiring activity in Q2, while those in eight report negative outlook. Source: Home - Livemint.com | 9 Mar 2010 | 1:32 am Gold barely moves after 1% drop; stuck in rangeChina's gold output jumped 11.34 percent to a record of 313.98 tonnes in 2009, the China Gold Association has said, securing the country's position as the world's largest producer of the yellow metal.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 1:25 am China says it will consider investing more forex in goldSending a clear message to the US not to act against its "core interests", China, sitting on a mountain of US debt said today it would consider investing more forex reserves in gold "cautiously" based on market conditions than American bonds.Source: HindustanTimes.com - Top Business News Headlines | 9 Mar 2010 | 1:21 am Microsoft completes 'cloud stack' - Financial Express
Source: Business - Google News | 9 Mar 2010 | 1:17 am Citi Private Bank hires two Barclays Wealth executivesMichael Smith will be the bank's Midwest regional executive, and Mark Connally will lead the bank's Southwest region, Citi said on Monday. Citi's private bank focuses on individuals with net worth of at least $25 million.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 1:06 am BSE Sensex barely changed, Tata Motors dropsThe BSE Sensex treaded water on Tuesday after climbing more than 5 percent over the past 10 days, but Tata Motors was in reverse gear after a series of block deals.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 12:50 am Japanese carmakers studying brake override systemUnder fire after recalling more than 8 million vehicles globally for problems of uncontrollable acceleration, Toyota said last month it would add the function to all future vehicles worldwide.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 12:48 am China says committed to U.S. debt, wary on goldBEIJING (Reuters) - China, the world's biggest holder of foreign exchange reserves, renewed its commitment to the U.S. Treasury market on Tuesday but said it would be wary of substantially boosting its gold holdings.Source: Reuters: Money News | 9 Mar 2010 | 12:47 am Rupee rangebound mirroring sharesMumbai: The Indian rupee was little changed on Tuesday afternoon closely tracking the seesawing domestic sharemarket, but the bias was on the weaker side after the sharp gains seen in recent sessions. At 1:30pm, the partially convertible rupee was at Rs45.54/55 per dollar, marginally weaker than Rs45.53/54 at close on Monday, when it hit Rs45.38 during trade, its strongest since 12 January. The rupee gained 1.1% last week, its best since a 1.9% rise in the week to 8 January. The Malaysian ringgit fell on Tuesday as investors took profits from its recent rally, while the Chinese yuan eased in offshore markets in line with movements in the euro and regional stocks. The index of the dollar against six major currencies was 0.1% higher. The yen rose broadly on Tuesday on dollar and euro selling by Japanese exporters, while sterling faltered on weak data and after Moody’s said Britain faces a dilemma over its support for the banking sector. Dealers said they would watch shares for direction on capital flows. Indian shares were seesawing in afternoon trade, taking cues from weak Asian peers and on caution after rising more than 5% in about 10 days. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at Rs45.6275, with the total traded volume on the two exchanges at about $3.3 billion. Source: Home - Livemint.com | 9 Mar 2010 | 12:41 am Vodafone to cut 500 jobs in UK ReportVodafone Group, the world's largest mobile operator by sales, is set to slash up to 500 jobs in the UK, says a media report.Source: HindustanTimes.com - Top Business News Headlines | 9 Mar 2010 | 12:40 am Oil falls from 8-week high on US stock-build forecastSingapore: Oil slid on Tuesday as forecasts for growing US crude inventories tempered bullish sentiment about the global economic recovery, which had driven prices to an eight-week high above $82 a day earlier. US crude for April fell 29 cents to $81.58 a barrel by 12:52pm, after touching $82.41 on Monday, the highest level since prices jumped to a 15-month high of $83.95 on 11 January. London ICE Brent for April declined 24 cents to $80.23. A report on Friday showed US unemployment is growing, although at a slower pace than expected. The country’s crude inventories probably rose for a sixth straight week, a Reuters survey showed. The Organisation of the Petroleum Exporting Countries (Opec) will keep oil production targets on hold when it meets in Vienna on 17 March, but could raise output later this year as the world recovers from recession, pushing up demand for fuel, a Reuters poll showed on Monday. “The whole market picture is still very weak, but sentiment has been very bullish,” said Clarence Chu, an energy trader at Hudson Capital Energy in Singapore. “I expect that if eventually we get up to $83.95, people will take profit and get off their longs. I don’t think the market can go past that point.” US crude inventories gained 1.9 million barrels in the week to 5 March, the poll showed, while gasoline stockpiles may have increased by 300,000 barrels. Distillates, a fuel category that includes heating oil and diesel, were expected to have dropped 900,000 barrels because of lingering winter weather conditions in the US Northeast, the biggest heating market. The industry-funded American Petroleum Institute (API) will publish inventory data on Tuesday at 3:00am, followed by government statistics from the Energy Information Administration (EIA) on Wednesday at 9:00pm. Looking at price chart patterns, oil was unlikely to fall below $80.50, Chu said. “It was a resistance for long, and after we broke through it, it became a support level.” “But according to fundamentals we should look at $75 or even $70 because we are loosing jobs every month,” Chu said. “GDP is coming up, but it’s not that healthy a recovery unless jobs return.” The dollar, which for months has been inversely correlated with oil prices, edged up on Tuesday against a basket of currencies. But some traders said the currency has recently influenced crude prices less, especially at times when economic data releases enter the spotlight. The euro rose slightly against the US dollar on Monday as concerns about Greece’s indebtedness eased, while US equities ended little changed after last week’s rally. Source: Home - Livemint.com | 9 Mar 2010 | 12:33 am BSE launches Sensex mobile streamerThe country's premier bourse, Bombay Stock Exchange (BSE), today launched its Sensex mobile streamer, a platform that would allow investors to access streaming Sensex data at their fingertips.Source: India Business News | Business News - Times of India | 9 Mar 2010 | 12:13 am BSE launches Sensex mobile streamerThe mobile streamer can be accessed on the BSE's website. The software is easily downloadable on GPRS-activated SIM cards and Java-enabled handsets.Source: Daily News & Analysis: Money News | 9 Mar 2010 | 12:11 am Aries Agro (Rs 105.4): BuyAries Agro was among the top gainers on Monday as the stock surged 10 per cent higher. This spike was accompanied by volume that was the highest in the past three months. Monday's rally has also aided the stock to record its highest close in theSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Gear-maker L&T turns power producerLarsen & Toubro plans to generate 5,000 MW of coal-based power by March 2015 and also achieve financial closure for another 5,000Source: Business Line - Home Page | 9 Mar 2010 | 12:00 am SBI equity dilution may raise Rs 22,000 crThe SBI (Amendment) Bill, 2010, introduced in Parliament on Monday may allow State Bank of India to raise more capital to support loan bookSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Govt fixes NMDC issue at Rs 300-350The Empowered Group of Ministers (EGoM) on Monday has pegged the price band for the Further Public Offer (FPO) of the National Mineral Development Corporation Ltd (NMDC) at Rs 300-350 aSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Daimler to shed stake in Tata MotorsDaimler AG is believed to have sold its 5.34 per cent stake in Tata Motors for $430 million (around Rs 2,000 crore). This marks an exit from a company it has had an association with for nearly fiveSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Auto sales continue on fast lane in Feb tooThe domestic auto industry posted, in February this year, the highest-ever overall unit sales in a single month, surpassing a similar record set in just the previous month ofSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Day Trading GuideAs long as DLF trades above Rs 310, the near-term stance stays positive. We recommend a buy with tight stop at RsSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Savings cards for villagers project gets international recognitionA project in India to encourage savings among the rural poor has attracted international recognition. The plan to use savings cards to help villagers access savings accounts by the Chennai and Delhi-based Centre for Innovative Financial Design,Source: Business Line - Home Page | 9 Mar 2010 | 12:00 am Greece & the European disunionThe Greek Prime Minister, Mr George Papandereou, will meet the US President, Mr Barack Obama, in Washington D.C., on Tuesday — the latest sign that the much trumpeted unity between the European Union members has failed to emerge or deliverSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Man Ind: There's potential in pipelineThe stock of pipe producer Man Industries ended the day 7.5 per cent higher at just over Rs 64 as it secured an order to supply Rs 950 crore worth of oil pipes toSource: Business Line - Home Page | 9 Mar 2010 | 12:00 am Nikkei set to edge higher, oil-linked shares to gainToyota Motor Corp is set to be in focus after Toyota's president said on Monday he believed that sales in North America could recover in March after a sharp decline last month when the automaker suspended sales of some recalled models.Source: Daily News & Analysis: Money News | 8 Mar 2010 | 11:42 pm Tata Motors shares fall as Daimler exits - Reuters
Source: Business - Google News | 8 Mar 2010 | 11:34 pm IPL won’t run beyond seven weeks: ModiNew Delhi: Two new franchises are set to be added next season but despite the increased number of matches, the Indian Premier League will not run beyond seven weeks as extending it would “hurt other forms of cricket”, says IPL chairman Lalit Modi. “We are going to have the current limitation (in the IPL’s duration), and we are happy to live with that. Then (if we make it a longer tournament) you are going to starting to hurt the other forms of the game,” Modi said. “We chose the window specifically to be off-season in India, April-May are typically off season in India ... I don’t think we are going to be able to change that,” he added. The IPL will have 94 matches in the 2011 season but Modi said the tournament will only be 51 days long. “It’s (next season) only over seven weeks instead of six, it’s over 51 days instead of 46, we have done the scheduling, we just have to announce it.” Modi reiterated that Test cricket remains a priority for the BCCI. “Test cricket is our bread and butter which people don’t understand, we are never going to compromise on Test cricket,” he told ‘Cricinfo’. When I talked about, you know, (how) we have to do something about Test cricket, it’s in the other countries that Test cricket is going down. In India, our ratings are going up, we have been tracking that year by year, in fact, we get paid highest for Test cricket,“ Modi said. Modi also defended the financial clauses put in place for buying new IPL franchises despite the fact that the stringent rules kept some interested parties away from the auction. The auction ultimately had to be put off till 21 March and new tenders were invited for the process as no one could match the $1 billion net worth clause. “We wouldn’t want that (clubs getting into a debt trap). When we did the 50m numbers, we projected certain revenue going forward, 80% of the revenue (we earn) goes back to the franchises,” he said. “When we did our numbers, it was on a business plan. Our business plan is already four times of what we had planned then. “The idea is that everybody should survive and make money on it, then only can somebody grow, because of the confidence, whatever we have done, we have no regrets,” he added. Source: Home - Livemint.com | 8 Mar 2010 | 11:30 pm Tata Motors shares fall as Daimler exitsMUMBAI (Reuters) - Shares in Tata Motors fell nearly 6 percent on Tuesday morning after a series of block deals, which one source said was German carmaker Daimler AG selling its holding in the Indian vehicle maker.Source: Reuters: Money News | 8 Mar 2010 | 11:28 pm India US to ink framework pact on trade investmentIndia and US are set to sign a framework agreement on trade and investment here next week during a three-day visit by Commerce and Industry Minister Anand Sharma. Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 11:08 pm Tata Motors shares fall as Daimler exitsMumbai: Shares in Tata Motors fell nearly 6% on Tuesday morning after a series of block deals, which one source said was German carmaker Daimler AG selling its holding in the Indian vehicle maker. Exchange data showed more than 25 million shares changed hands at a weighted average price of Rs758.45 each, a discount of 4.8% to Monday’s close at Rs796.75. “It had a negative impact because of the huge chunk of shares which were sold all at once,” said Ambareesh Baliga, vice president at Hyderabad-based brokerage Karvy Stock Broking. Sources had told Reuters on Monday that Daimler was selling its entire 5.34% stake, or 25.6 million shares, in Tata Motors for up to $429 million. Shares in Tata Motors, which has a market value of $9.1 billion, were trading down 3.6 percent at Rs767.85 by 0534 GMT after hitting 750. One source with direct knowledge of the transaction said Daimler was the seller. It could not be immediately confirmed who had bought the shares. The Tata Group had said it was not interested in buying the stake. Analysts said there would be no long-term impact from the stake sale as Tata Motors and Daimler were no longer working together in India. “Their joint operations ceased long back. This was just a minority stake and it was known that it would be sold,” said Umesh Karne, auto analyst with Brics Securities. Tata initially started by manufacturing trucks in collaboration with Daimler from 1954 till 1969, when their agreement ended. Tata, which owns the luxury Jaguar Land Rover (JLR) brands and also makes the ultra-cheap Nano, is India’s largest vehicles maker. Vehicle sales, excluding JLR, between last April and February this year were 567,535 units, up 28% from a year earlier. Shares in Tata Motors had nearly quadrupled percent in 2009, outpacing the main index’s 81% rise. They are up 0.5% this year, compared with a 2% decline in the benchmark. Source: Home - Livemint.com | 8 Mar 2010 | 11:07 pm Women’s Bill | PM meets Yadav troikaNew Delhi: Showing no signs of relenting on the Women’s Reservation Bill in its present form, the Yadav trio on Tuesday asked Prime Minister Manmohan Singh to defer the measure and call an all-party meeting to evolve a consensus. SP chief Mulayam Singh Yadav, RJD supremo Lalu Prasad and JD(U) president Sharad Yadav met the Prime Minister at his official Race Course road residence on Tuesday morning, a day after the bill was stalled in the Rajya Sabha which witnessed unprecedented pandemonium. “We have asked the Prime Minister to defer the Bill. We have also requested him to call an all-party meeting on the issue. He listened to us patiently,” Prasad told reporters after the 45-minute meeting. He maintained that his party is not against the reservation for women but only wants the “real needy women” of the society to be represented through it. Sharad Yadav, in whose JD(U) there are sharp divisions on the Bill with Bihar chief minister Nitish Kumar coming out in its support, said they had apprised Singh of their apprehensions if the Bill providing for 33% reservation of seats in Lok Sabha and state assemblies was passed in its present form. “We expressed our views, our pain particularly for Muslim, backward and dalit women. These communities comprise 80% of the population. We thank him for inviting us,” he said. The three leaders refused to answer a question on whether Singh had given any assurance to them on their demand. Meanwhile, the government said it would hold a discussion on the Women’s Reservation Bill in the Rajya Sabha and not bulldoze the passage of the evolutionary measure involving amendment of the Constitution. “A Constitution amendment Bill of this dimension is evolutionary in nature and (the government) does not want to just bulldoze it. It is not just to by-pass a discussion,” law minister M Veerappa Moily told reporters here. “Tomorrow, after 50 years someone will question that such an important Bill was passed without a discussion, without a dialogue. We never wanted to be intolerant about it. There are people who opposed it... that was a national shame,” the minister said. Source: Home - Livemint.com | 8 Mar 2010 | 11:02 pm Asian stocks mixed after lackluster US finishHong Kong: Asian stocks were mixed Tuesday, taking a breather after sharp gains the day before as investors awaited more clues about the health of the world economy. A number of markets were little changed, fluctuating in line with Wall Street’s mixed finish. Oil prices fell modestly, while the dollar weakened against the yen and strengthened against the euro. The region’s markets jumped Monday as investors expressed relief a key US job report proved better than expected and eased worries about recovery in the world’s largest economy. Growing optimism about Greece’s debt troubles also helped confidence. Henry Chan, a fund manager at Baring Asset Management, said the sideways trade Tuesday showed investors were still readjusting their expectations for the economy and government policies as the recovery gathers pace. “We’re still going to get volatility in the markets, but gradually people are gaining more confidence,” said Chan, who helps manage around $10 billion in Asian equities. In Tokyo, the Nikkei 225 stock average was little changed, off 3.92 points to 10,582.00. Elsewhere, Hong Kong’s Hang Seng added 0.2% to 21,236.53 and South Korea’s main benchmark lost 0.1% to 1,657.81. Shanghai’s index added 0.5% and Australia’s benchmark was up 0.2%. Markets in India and Thailand fell. Oil prices slipped to near $81 a barrel in Asia, losing momentum after a monthlong run-up fueled by growing investor optimism about global economic growth. Benchmark crude for April delivery was down 40 cents to $81.47 a barrel after adding 37 cents overnight. In currencies, the dollar was lower at 89.98 yen from ¥90.28. The euro weakened to $1.3610 from $1.3631. Monday on Wall Street, the Dow Jones industrial average fell about 14 points, or 0.1%, to finish at 10,552.52 a year after hitting bottom. The other major indexes were narrowly mixed as stocks stalled after a big rally on Friday. Source: Home - Livemint.com | 8 Mar 2010 | 10:44 pm Markets barely change, Tata Motors dropsMumbai: Indian shares treaded water on Tuesday after climbing more than 5% over the past 10 days, but Tata Motors was in reverse gear after a series of block deals. German carmaker Daimler was the seller of stock in Tata Motors, one source with direct knowledge of the transaction said, after exchange data showed large deals for more than 25 million shares. Tata Motors fell as much as 5.9%, before trimming losses to 3.2% at Rs771.20 by 10:02am. On Monday, sources had said Daimler was selling its 5.34% stake in Tata Motors for up to $429 million. The 30-share BSE index was trading up 0.01% at 17,103.68, with 12 of its components gaining. It had climbed to a six-week closing high in the previous session, extending a rally kicked off the national budget on 26 February. The 50-share NSE index was down 0.1% at 5,119.95. “We had run up a lot after the budget. What we are seeing now is a pause,” said Rajen Shah, chief investment officer at Angel Broking. Foreign funds have poured in more than $900 million in the four sessions to March 4, latest data showed. Non-ferrous metals producer Sterlite Industries was down 0.8% on softer copper prices. Aluminium maker Hindalco and Tata Steel, the world’s eighth-largest steel maker by output, dropped 1.4% each. Software companies led the gainers as business momentum remained good, analysts said. Sector leader Tata Consultancy Services was up 1.3%, while rivals Infosys Technologies and Wipro gained 1.2% and 1.8% respectively. Late on Monday, Wipro Infotech, a unit of Wipro said it had received a turnkey project to set up a financial intelligence network for the finance ministry. In the broader market, losers led gainers in the ratio of 1.2:1 on volume of 126 million shares. Asian stocks drifted lower as investors paused in their recent chase for riskier assets. Source: Home - Livemint.com | 8 Mar 2010 | 9:57 pm Lyondell restructuring plan includes Apollo roleMUMBAI/NEW YORK (Reuters) - LyondellBasell filed a restructuring plan on Monday, rejecting a takeover bid from India's Reliance Industries Ltd in favor of commitments from investors, including Apollo Management LP and Access Industries, to help the chemicals maker exit bankruptcy.Source: Reuters: Money News | 8 Mar 2010 | 9:48 pm Rupee falls 3 paise to 45.55 a dollarThe rupee eased by 3 paise against the dollar in early trade on Tuesday after a six-day rally on fresh capital outflows by foreign funds and a firm US currency.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 9:34 pm Sensex falls over 41 points on profit takingSensex shed over 41 points in the opening trade today, snapping the two-session winning streak as investors sold stocks to book profits at existing levels amid a mixed global trend.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:33 pm Sensex falls over 41 points on profit takingSensex shed over 41 points in opening trade on Tuesday, snapping the two-session winning streak as investors sold stocks to book profits at existing levels amid a mixed global trend.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 9:28 pm L&T Power plans 5000 mw capacity by 2015 - Moneycontrol.com
Source: Business - Google News | 8 Mar 2010 | 8:40 pm Daimler to sell Tata Motors stakeGerman auto major Daimler, which holds a 5.34% stake in Indian automobile giant Tata Motors, is soon expected to sell its entire stake, consisting of nearly 2.56 crore shares.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 2:07 pm AstraZeneca takes Sun Pharma to courtAstraZeneca, UK's second-biggest drug maker, has dragged Sun Pharmaceuticals to court in a bid to prevent the Indian company from selling a generic form of the ulcer medicine Nexium IV in the US before 2014.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 2:05 pm SUUTI sells 9.4% NSDL stake to NSEThe Specified Undertaking of The Unit Trust of India (SUUTI) has sold 9.42% from the 25% it held in National Securities Depository (NSDL), the country's leading depository, to the National Stock Exchange (NSE).Source: India Business News | Business News - Times of India | 8 Mar 2010 | 2:03 pm 'Don't recycle your investments to save taxes'Recycling may be a great idea when it comes to environment. However, in the world of finance, it is often met with disapproval.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 2:02 pm Auto sales zoom a record 35%Fear of price hikes after Budget and easier interest rates pushed car sales to record highs in February, with volumes increasing by 33%.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 2:00 pm Govt to reduce its holding in SBI to 51%The government on Monday started the process to bring down its stake in SBI to 51% from the existing level of 59.4%.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 1:58 pm Bank of Rajasthan promoters bannedStock market regulator Sebi has banned 100 entities related to the Bank of Rajasthan (BoR), including several members from the Tayal family, the promoters of the bank, from all stock market-related activities.Source: India Business News | Business News - Times of India | 8 Mar 2010 | 1:57 pm Weekly FII inflows highest in five monthsMumbai: Foreign institutional investors, or FIIs, purchased Indian stocks worth $1.35 billion (Rs6,213.8 crore) in the last one week, the highest in five months and the best in any week after a Union budget since 2001, as the fiscal consolidation plans outlined in the annual government financial statement boosted sentiments and fears of a Greek debt default receded. This category of investors is one of the largest in the Indian markets and strongly influences index movements. “Investments into India will continue,” said Christoph Avenarius, director, alternative investments, at Swiss bank Credit Suisse Group AG which, along with its units, owned Indian shares worth at least Rs728 crore at the end of December. “There are attractive investment opportunities in India because of the strong growth potential.” India is the second fastest growing $1 trillion-plus economy in the world and the government is focused on pushing economic growth to double-digit levels. On Monday, provisional data from the Bombay Stock Exchange said FIIs invested a further $248.62 million, or Rs1,132.01 crore. This pushed the exchange’s benchmark index Sensex 108.11 points, or 0.64%, up to 1,7102.6. India’s most widely followed index had gained 4.1% since the Budget was presented. The 50-stock broader Nifty rose 4.1% in the same period. “The worst fears have been put aside; there is a road map for fiscal consolidation,” said Deepak N. Lalwani, director of India Investments at London-based stock brokers Astaire and Partners Ltd. “The government is still talking about growth and trying to say that rates should be benign as long as possible.” According to a recent note from Emerging Portfolio Fund Research, Inc. or EPFR, “flows into India Equity Funds hit a six-week high (for the week till 4 March), as service sector data supported predictions of strong growth.” This happens at a time when “flows into all emerging market equity funds only amounted to $240 million, the third straight week of inflows, albeit subdued”, the funds tracker said. In the Union Budget presented on 26 February, finance minister Pranab Mukherjee said the fiscal deficit would be reduced to 4.1% of gross domestic product (GDP) in the next three years. The projected deficit for the next fiscal is 5.5%. A higher fiscal deficit increases government borrowing, crowds out private investment and spooks equity investors. According to data with the markets regulator, the Securities and Exchange Board of India, last week’s inflow is the highest in a week after the budget since 2001. So far, in 2010, FIIs have invested $1.35 billion, on top of some $17.64 billion in 2009. “Investors are closing their underweight positions in India now,” said a Singapore-based hedge fund manager, who didn’t want to be identified. “The Budget is not dramatically negative and there is less fear around Greece.” FIIs pulled out money in early February, hammering the Sensex to a three-month low, fearing that some European nations may default on their debt payments and that the Budget in India may fully roll back the fiscal stimulus. At that time, the main concern was that Greece would default on its debt payments and this contagion would spread to other countries such as Ireland, Italy and Spain, which had similarly precarious fiscal positions. But the situation reversed in March on a string of positive news flow around the world. According to a 5 March report from Franklin Templeton Asset Management (India) Pvt. Ltd, Greece announced fresh austerity measures that could lead to a further reduction in its deficit and the 10-year bond auction was well subscribed. This, along with expectations that the European Union could provide support to Greece, boosted investor sentiment. What has also helped is positive news from the US. Last week, US employment data showed that employers cut only 36,000 jobs in February, much better than the consensus estimates of 50,000. The US Federal Reserve’s Beige Book report also said consumer spending there increased and the economy continued to grow at a “modest” pace. Source: Home - Livemint.com | 8 Mar 2010 | 12:45 pm Having more IPL teams means newer markets for franchiseesNew Delhi: Between the first and the third season of the Indian Premier League (IPL) cricket tournament, the sponsorship revenue for Chennai Super Kings has more than doubled from seven to 18 brands on board, says Rakesh Singh, marketing head of the franchise owned by India Cements Ltd. He attributes the strong interest not just to the success of the IPL format, but also to the regional advantage the team provides for advertisers targeting audiences in the south. In an interview, Singh shares his strategy. Edited excerpts: How is this season critical, given that IPL is returning to India, and we will have more teams from the next season?  Sports entertainment: Chennai Super Kings’ Singh says the coming season will test the popularity level of the cricket tournament. Sharp Image What would it mean for the existing teams to have two new ones from next season? It would mean entry into new cities and, thereby, extending our brand in those regions. It would mean possible opportunities to build on our fan base and more sponsors coming on board. On another level, extra teams mean extra matches and, therefore, the time we get with players for brand-building, sponsorship activity within the IPL window becomes more. With IPL moving venues, how easy is it to build brand loyalties among fans? From the Chennai Super Kings perspective, there has been no changing of match venues. Amongst most teams, we have always maintained that we are “fearless entertainers who play to win” and this maxim has reflected in our performances over two seasons, which in turn has resulted in more fan following for us. Tamil Nadu has always been cricket-passionate and our promotions in year one, where we touched base with the common people, have cemented a very strong and endearing relationship with our fan base. IPL successfully drew entire households away from the 8pm and 9pm serials and brought them to the stadium. A new form of entertainment, never before seen or experienced was presented to them at the grounds. There has been no turning back since. With nearly 100 matches from season 4 over 45 days, will it lead to spectator fatigue?  With more players possibly coming up for auction from the next season, what are the strategies to keep the formation consistent for subsequent seasons or will teams have to completely rebuild? Each franchisee has spent a huge sum on their team and then on various brand-building initiatives and, therefore, it stands to reason that the brand-building initiatives undertaken cannot be broken off midway. Therefore, the IPL board has rightly said that each team will be able to keep four Indian players and two foreign players. The nucleus of each team is a blend of some international stars and a sizeable local contingent. Similarly for us, the nucleus will remain the same and the core team will not see too much of chopping and changing. How much does India’s success as the No. 1 Test team mean for IPL’s popularity? I am not too sure it plays any role, primarily, since it’s a mix of international players. The first season’s popularity had no bearing on our status in any form of the game. IPL is country- and form-neutral. The first season created a new audience. Will this be sustained? They definitely will sustain simply because our package remains the same. They came to be entertained and they were. The reason why it will sustain is because each franchisee is now adding to that entertainment factor along with serious preparations on the team front. Once hooked, there is no looking back. Are there any new routes being explored for sponsorships? Yes, it’s an ongoing process. We are currently thinking of opening sports cafes themed around the team but nothing is finalized yet. This is the fifth in a series of interviews of IPL team owners and executives. On Wednesday: Royal Challengers, Bangalore. priyanka.m@livemint.com Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 12:45 pm AI seeks to spin off two units, cut salariesNew Delhi: Air India proposes to spin off two units as part of a plan to be sent to the Union cabinet that will also propose wage cuts and set out the financial state of the troubled national carrier, said two civil aviation ministry officials. Air India wants to turn its maintenance, repair and overhaul (MRO) business and cargo operations arm into separate units, said one of the two officials. The separate balance sheets may lower losses on Air India’s books.  In the wings: Air India planes at the Mumbai airport. The carrier may turn its MRO and cargo operations into separate units. Abhijit Bhatlekar/Mint The proposed pay cuts may help Air India, run by the National Aviation Co. of India Ltd (Nacil), meet cost reduction targets. “There has to be a cut, it could mean a saving of Rs500-700 crore depending on the cuts made,” the first official said. The airline, weighed down by accumulated losses and debt, had in 2006 placed a Rs50,000 crore order for 111 aircraft. It owes Rs16,000 crore towards working capital loans. Air India was granted Rs800 crore in equity infusion by the government but was denied an additional Rs 1,200 crore by a group of ministers (GoM) this year because it failed to meet cost-cutting targets. The matter was then referred to the Union cabinet by the GoM. One view in the ministry is to look at the possibility of a “consortium of public sector banks, financial institutions or industries” being brought in as strategic investors, the officials said. Whether this proposal would be contained in the draft plan to be placed before the cabinet isn’t known. Over the next four years, Air India needs to repay the principal and interest on aircraft loans besides the working capital loan of Rs 16,000 crore, according to an airline official who asked not to be named. tarun.s@livemint.com Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 12:19 pm Prometric to address CAT glitchesNew Delhi: Promteric Testing Pvt. Ltd, which conducted the first online test for admission to the eight Indian Institutes of Management (IIMs), said on Monday that the technical snags that marred the test were unacceptable and promised to put improved systems in place for the next edition. Charles Kernan, chief operations officer of Prometric Inc., the US-based parent of Prometric Testing, said 13% of the network showed problems in the first three days of the Common Admission Test (CAT), which opened for a 10-day window in November-December last year. “Eighty-seven per cent of the network ran from Day One perfectly fine. But the fact is that this is certainly not an acceptable standard for me, (and) I wouldn’t expect it to be an acceptable standard for anybody,” Kernan said at a news conference in New Delhi. CAT is a qualifying exam for the IIMs, among other business schools. Technical glitches and constant rescheduling forced the window for the first computer-based CAT to be extended to an 11th day in December. More than 215,000 candidates took the test, including around 4,500 who were retested in January because of the technical problems. Test preparation companies said Prometric test centres were ill-prepared to handle the load of test-takers. Kernan said the company would work to secure computers in public institutions—private colleges which worked as CAT centres—for the next test but indicated that it was too early to move to a system of continuous testing or testing round-the-year. “We have to sit down and talk with the IIMs how to spread the 10-day window,” Kernan said. aparna.k@livemint.com Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 12:14 pm NSE hikes stake in NSDL to 25.05%Mumbai: The Specified Undertaking of Unit Trust of India (SUUTI) on Monday sold 9.42% of its existing stake in National Securities Depository Ltd (NSDL) to National Stock Exchange (NSE). Following the sale, SUUTI has a 15.58% stake in the depository. IDBI Bank Ltd, SUUTI and NSE are the three promoters of NSDL, which currently manages over 10 million investor accounts. NSE’s shareholding in NSDL will go up from 15.63 % to 25.05% after this transaction, while IDBI will continue to be the largest stakeholder with 30%. Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 12:05 pm Markets | Exide to sell up to 50 mn shares to large fundsMumbai: Exide Industries Ltd plans to sell as many as 50 million shares to institutional investors, according to a share sale document filed to the Bombay Stock Exchange. The shares will be sold for at least Rs107.86 each, according to the filing. —Bloomberg *********** IL&FS Transportation plans Rs700 crore IPO Mumbai: IL&FS Transportation Networks Ltd, a developer of road projects, plans to sell shares at Rs242 to Rs258 each in an initial public offer (IPO) opening 11 March, managing director K. Ramchand said on Monday. The Mumbai-based company will determine the number of new shares to be sold in the IPO depending on demand, Ramchand said. Trikona Trinity Capital Plc, a UK-based fund, will sell 4.28 million shares in the offer. IL&FS expects to raise Rs700 crore from the sale, including stock being sold by Trikona. The offer closes on 15 March. The firm will use the proceeds to repay half of its Rs1,000 crore debt. —Bloomberg Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 12:00 pm Daimler to sell 5.34% stake in Tata MotorsGerman car major Daimler AG is exiting Tata Motors, Indias largest commercial vehicles maker. Daimler, which held 5.34 per cent stake in the company, plans to raise around Rs 1,950 crore from the share sale.Source: Business Standard | Front Page Headlines | 8 Mar 2010 | 11:58 am Government tense on Budget after Women's bill fracasPM to meet SP, RJD and JD(U) as Congress managers fear for passage of Finance Bill.Source: Business Standard | Front Page Headlines | 8 Mar 2010 | 11:56 am Alternative energy bloomsBloom Energy has excited techno-watchers. Led by K.R. Sridhar, a graduate of Madras University, who developed comparable technology for National Aeronautics and Space Administration’s space missions, this stealth clean-tech start-up—which raised $400 million in venture capital—hit the airwaves with an awe-struck report on American national TV last month. Its vision is compelling: a solid-oxide fuel cell based on a high-temperature chemical reaction between oxygen and hydrogen or a hydrocarbon fuel, with no combustion. A box the size of a toaster could eventually power a home at twice the efficiency of a traditional gas-burning system, with 60% fewer emissions. A small-truck-sized server supplies 100kW, enough for an office building. Several have been installed at beta test sites such as eBay and Google. The key technology is a stack of floppy-disk-sized zirconium-oxide electrodes, coated with proprietary inks. The electrodes are not made of precious metals, but from sand using a low-end semiconductor process. There are many reasons why this idea has great potential. One, it can be “off-grid”, that is, it can be used remotely with no infrastructure. Two, it is “fuel-agnostic”, that is, it can run on any hydrocarbon such as propane, natural gas, ethanol, bio-diesel, or biogas or farm waste (for instance, methane). Three, remarkably, the process is “reversible”, which means it can take in renewable energy from solar or wind and create storable oxygen and hydrogen, which can then be combined to generate electricity at night or when there is no wind (or used in a hydrogen-powered vehicle). Especially for energy-starved India, the implications are huge: Without expensive transmission networks, and at reduced emission levels, it may be possible to produce power at grid-comparable prices. This could be a technological leapfrog, just as in cellular telephony where India bypassed the expense of copper wire in the ground. India could avoid large infrastructural sunk costs while providing hitherto unreached citizens with electricity. The current Indian grid is unreliable and is prone to frequent power failures and voltage fluctuations, forcing many to depend on diesel generators. And replacing dirty, noisy generators with Bloom servers could be a good idea. Even better, rural users could harness gobar gas and other local by-products instead of imported hydrocarbons. Bloom also brings the robustness and reliability of a distributed network compared with a centralized one. One nightmare scenario strategic planners worry about is cyber-attackers hijacking the energy grid of a nation and bringing it to its knees. There are other possibilities: providing electricity on-demand, comparable to “cloud computing” using server farms. Bloom uses the terminology of servers and farms; and Google, cloud computing pioneer and early adopter of Bloom’s technology, has received a licence to sell energy. Google Power may soon compete with national grids. There is enthusiasm about the possible benefits, but there are also obstacles in Bloom’s path. The most significant is cost, now running at $750,000 for a 100kW server; although Sridhar estimates that larger volumes can bring this down to $3,000 for a home unit in 5-10 years. Even though they have had beta sites for some time, some issues do remain: Can it deal with India’s dust? How do you store generated hydrogen without it exploding? The proof will be in the pudding. However, there are bad precedents: the fabled Segway was supposed to transform personal transport; Motorola’s 77-satellite Iridium project was meant to revolutionize wireless telephony—both were expensive flops. But scepticism aside, if Bloom can drive down costs, this technology could well be a boon. It could be the proverbial game changer. Rajeev Srinivasan is a management consultant focusing on innovation and energy. Comments are welcome at otherviews@livemint.com Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 11:48 am Delhi offers the best 'Quality of Life': CII-IFC Liveability Index 2010 - Business Standard
Source: Business - Google News | 8 Mar 2010 | 11:47 am Congress stakes UPA survival, credibilityNew Delhi: By first seeking to pass the Women’s Reservation Bill on Monday, International Women’s Day, and then, in the face of expected opposition from some erstwhile allies, abruptly deferring proceedings till Tuesday, the Congress-led United Progressive Alliance (UPA) government may have put at stake both its political survival as well as credibility. Though the Bill was tabled in the Rajya Sabha, continuous interruptions by members of the Rashtriya Janata Dal (RJD) and the Samajwadi Party (SP) forced deferment of a vote. With the Bharatiya Janata Party (BJP), a vocal supporter of the initiative first introduced 14 years ago, continuing to insist on a debate, it is not clear whether the Bill would be put to vote as yet. Political fault lines deepened on Monday with both the RJD and the SP withdrawing their support, from outside the government, to the UPA, reducing the ruling coalition’s majority in the Lok Sabha. That may turn out to be crucial since the government needs to get the Finance Bill, a money Bill, approved by Parliament for Budget 2010 to be implemented. Failure to do so would be tantamount to a no-confidence motion against the government and lead to its dismissal. To be sure, this is a remote possibility at this stage. At the least, the UPA will become politically vulnerable, especially at a time when the government is busy fending off criticism for its failure to contain food price inflation. Congress president Sonia Gandhi, who was the key proponent of the Bill, may also be politically vulnerable if the UPA fails to carry the vote. “The day’s developments have further endangered the women’s Bill. The government’s aggressive reform agenda could be derailed with friendly parties like the SP and the RJD withdrawing support,” said Badri Narayan, political analyst and senior faculty member at the GB Pant Social Science Institute, Allahabad. Further, the government is also receiving flak from other parties that support the Bill for its failure to anticipate the aggressive resistance from the RJD and the SP and put in place effective floor coordination. “The government did not do any homework and came unprepared. They should have called an all-party meet and discussed the issue, especially when they knew that parties such as the RJD and the SP have been opposing it for the last 14 years... This just shows the Congress lacks the political will and social commitment to get the Bill passed,” said CPI leader and women’s activist Annie Raja. BJP leader Arun Jaitley echoed the sentiment: “The government completely lacked a proper strategy on the floor of the House.” In an attempt to curtail the damage, Prime Minister Manmohan Singh has called an all-party meet to discuss the Bill on Tuesday, even as the Congress refused to retreat. “The Women’s Reservation Bill is a subject where the only question is when and not if. It is an idea whose time has come,” party spokesman Abhishek Singhvi said. Both SP chief Mulayam Singh and RJD supremo Lalu Prasad attacked the Congress for its move to “unilaterally” go ahead with the Bill which seeks 33% reservation for women in the Lok Sabha and state assemblies. “This is political dacoity. We will not tolerate it. We are withdrawing support to the government,” said Prasad. Some analysts believe there has been no proper discussion on the Bill. “The deeper issue in the Bill is the rotation of constituencies which would mean there is democracy but no democratic accountability. Unfortunately, the RJD and the SP’s opposition on grounds of a quota for backward classed has completely hijacked the debate,” said Pratap Bhanu Mehta, president, Centre for Policy Research, a Delhi-based think tank. The SP and the RJD, which were outside supporters of the government, have 22 and four seats respectively. Together with the Congress (208), the Trinamool Congress (19), the Dravida Munnetra Kazhagam (18), the Nationalist Congress Party (9), the National Conference (3), and the Muslim League (2), the UPA has a total strength of 259 in the 543-member Lok Sabha. ruhi.t@livemint.com PTI contributed to this story. Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 11:39 am Banking on your mobile phonePurchasing an airline ticket with Rs30 in the wallet at 2am was considered nigh impossible a few years back. But it is now a distinct reality made possible by mobile phones. Is cash on the brink of extinction? Well, not yet. With the explosion in mobile telephony, many thought that mobile payments would overtake cash and card-based transactions in a similar wave. Mobile phones have been used for mobile banking, fund transfers and even retail payments. Several mobile-based service offerings have been launched spanning financial inclusion to buying coffee. But few have evolved scale. The reasons have been attributed to challenges in economic viability, regulatory restrictions, technological limitations or consumer apprehensions. Then, there aren’t many relevant value propositions—analyses of costs and benefits—out there, while key stakeholders have been unable to evolve participatory business models—those involving more than the banking system—within the regulatory framework.  Illustration: Jayachandran/Mint In the Indian context, there are two waves that will sweep the payments landscape in the next decade. In the first, several large banks and independent processors will be making significant investments in expanding the point of sale and automatic teller machine networks across India. This will stimulate the usage of 163 million debit cards and 22 million credit cards. The second wave would be in processing small-ticket transactions—below Rs250—that are economically unviable for card-based systems, but that constitute over 98% of retail payments. The mobile channel can give rise to the service offerings that will fuel this wave. The primary motivators for the regulator and the government in propagating mobile or electronic payments would lie in suppressing the grey economy, reducing the high costs of cash management and in realizing the impact of electronic payments in fuelling growth. This impetus, according to a 2006 book The Economics of Online Markets and ICT Networks, can provide 2 percentage points more growth. But what is next in this game? Existing card-based payment systems were designed in the 1970s, when the Internet and mobile did not exist. A lot has changed since then. The Internet and mobile channels now offer a unique opportunity. The challenge, however, lies in the aspirations of mobile operators and banks to maximize their share in the value chain. Though banks have traditionally been the custodians of currency, the new models in the second wave would be challenging this tenet, with mobile operators seeking to monetize their large customer and retailer bases. According to a report in 2006 by M. Stomar at Finland-based Mobey Forum, two broad categories of models should emerge. 1) Bank-centric models: Here the mobile operator would play the role of carrier and user interface, as in the case of mobile banking today. 2) Transformational models, which involve a change from the above. Three sub-models that will emerge within this construct: • Partnership model: The bank and mobile operator would jointly manage the business; • Independent service provider model: A non-banking or telecom entity would set up a mobile payments ecosystem; • Operator-centric: The mobile operator would take the lead, with the banking entity addressing regulatory requirements of funds, clearing and settlement. These models would succeed in the long term if they manage to establish a set of standards that allow multiple banks, operators and service providers to operate across groups, and solidify consumer trust over time. Though possible solutions are emerging for domestic remittances and remote payments, the challenge remains in evolving a workable and convenient face-to-face payment solution and in traversing today’s complex mesh of multiple SIM cards, handsets and operating systems. These models will also need prudent regulation. The Reserve Bank of India has gradually widened the playing field to fuel radical innovations in electronic and mobile payments over the last three years: • The 2007 Payments and Settlements Act permitted third party clearing and settlement systems • Prepaid cards can now be issued by non-banking entities • The transaction sizes permitted for mobile payments and transfers have been enlarged • The vast retailer network can be leveraged for cash deposit and withdrawal points within the business correspondent framework, as undertaken successfully in Brazil. The government and regulator can further accelerate this. First, it could extend the purview of electronic payments—this should include payments through non-banking entities too. Second, it should extend tax rebates to consumers and retailers for electronic payments, proportionate to the payments made annually. A similar approach for card-based payments has yielded significant results in South Korea since 1997. Third, it should identify focus sectors. Payments for utilities, tourism and paying government taxes could be three areas where the government can offer more incentives. As India enters the new decade, at least 180 million payment cards and 500-millon-plus mobile phone connections offer a unique opportunity to create a new wave of payment systems to stimulate growth. Upendra Namburi is a Gurgaon-based senior banking and financial services professional. Comment at theirview@livemint.com Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 11:30 am Quick Edit | The roads not takenThe numbers speak for themselves. In 2009, the Chinese government built or renovated 35 airports, threw open 4,640km of highways, laid out 5,200km of new rail lines, upgraded 264,000km of power lines and renovated 800,000 buildings for good measure. This information was provided by Chinese Prime Minister Wen Jiabao in the course of his speech to his country’s parliament, National People’s Congress, on Friday. India has started to close the gap with China on many parameters such as growth rates and foreign direct investment. But there are few signs that the infrastructure gap is getting narrower. Wen’s speech is one reminder of this uncomfortable truth. The year 2009 was an important one. China stimulated its economy with a huge burst of capital inves-tments while India chose to spend more on salaries and subsidies. The quality of the fiscal stimulus in the two countries was thus drastically different. India continues to nurture a massive revenue deficit while it cuts essential capex. Source: LatestNews-Home - Livemint.com | 8 Mar 2010 | 11:20 am Govt moves to dispel fiscal doubtsNew Delhi: To support its claim of being committed to fiscal rectitude, the Congress-led United Progressive Alliance (UPA) will, later this month, place in Parliament documents to show that the revenue deficit, a key measure of fiscal excess, has been overstated because of accounting classification. This is because some items classified as revenue expenditure actually go towards capital creation. Correcting this impression, the government believes, is important as it will improve prospects of India receiving a more favourable sovereign rating which, in turn, would mean Indian companies can raise foreign debt at lower interest rates and add momentum to the ongoing economic recovery. Revenue deficit is a measure of the excess of current consumption over current revenue, while fiscal deficit is the excess of total expenditure over revenue, that is bridged by borrowing. “Sovereign rating is one of the parameters by which creditworthiness of a corporate borrower is assessed,” said macroeconomic expert Renu Kohli, who was earlier with the Reserve Bank of India and the International Monetary Fund.  Graphics: Yogesh Kumar/Mint Prior to the Budget announced on 26 February, the finance ministry ordered other ministries to start highlighting the end-use of their spending. For instance, if the end-use would result in creation of infrastructure, it would have to be highlighted in the detailed demand for grants, two officials familiar with the development, said. The detailed demand for grants would be tabled in the Lok Sabha later in the session when Parliament votes on the Budget’s expenditure proposals. The ministry’s order is expected to counter doubts which might arise on the UPA’s commitment to fiscal consolidation as recommended by the 13th Finance Commission (TFC). The medium-term fiscal plan presented on 26 February showed that the government would overshoot the revenue deficit milestones prescribed by TFC over the next three years, while it would simultaneously better the milestones on fiscal deficit and debt stock. TFC suggested that the government eliminate revenue deficit in four years, with annual milestones. The government’s medium-term plan said it would be unable to meet annual milestones for revenue deficit till March 2013; the plan’s projections end that year. According to the two officials, the revenue deficit milestones will not be met due to accounting classification issues and not the lack of desire to push through fiscal consolidation. The order to introduce classifications in the detailed demand for grants are to make sure any one reading the budget documents understands why there is an overrun on revenue deficit the officials added. There is some background to the finance ministry’s desire to improve its communication on deficits and debt stock. Soon after the July 2009 Union budget, international credit rating agencies such as Standard and Poor’s were given a presentation in the finance ministry on the assumptions underlying the budget proposals. During the discussions that followed, both sides were unable to agree on a common number for a key measure as India’s debt stock. On account of inadequate clarity, government officials felt rating agencies double count debt such as that raised through small savings schemes. In the 2010-11 Budget, the document set the record straight by counting small savings only once. Accounting issues are at the root of the dilemma over revenue deficit as spending on infrastructure such as building rural roads (Rs10,886 crore for 2010-11) are accounted as revenue expenditure, or expenditure on current consumption. Ideally, this should be classified as capital expenditure as the spending is on infrastructure to catalyse the local economy and contribute to overall economic growth, the officials said. But till such time the government reworks its accounting classification, it is necessary to clearly explain the spending pattern, they added. The end-use details of spending might influence rating agencies. Fitch, for example, announced last month that it would stick to a negative outlook on India’s long-term domestic currency rating as structural issues affect its public finances. The structural issues are typically sudden spurts in current consumption, which occur at intervals. The UPA’s fiscal plan said it would reprioritize spending to enhance the level of public investment, a pattern which was also suggested by TFC. The government’s responsiveness to TFC’s suggestions are critical to the way a rating agency such as Fitch would judge the seriousness of the move towards fiscal consolidation. Source: Home - Livemint.com | 8 Mar 2010 | 11:09 am Essar Oil stock zooms 6 4 per centEssar Oil stock rose 6.4 per cent on Monday on news of the international listing of Essar Group’s power and energy business. The stock emerged as the top gainer among the BSE 100 companies, ending the day at Rs 149 reports Sandeep Singh.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:40 am Deloitte to probe Bank of RajasthanThe Reserve Bank of India has ordered a special audit of private sector lender Bank of Rajasthan’s accounts, suspecting violation of operational norms.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:38 am Track record not NFOs will draw MF investorsThe last couple of months have seen a revival of activity in the mutual fund industry. I’m talking here of individual investors and equity products aimed at them. From August to December, investors had only pulled out money from equity funds and not put in any fresh funds on a net basis, writes Dhirendra Kumar.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:29 am Upset Shinde wants a say in green panelUnion Power Minister Sushil Kumar Shinde is seemingly unhappy over Montek Singh Ahluwalia’s selection of the expert group, under economist Dr Kirit Parikh, for working out a strategy for a low carbon pathway for India, reports Anupama Airy.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:11 am Qatar Airways scaling up ops to outpace rivalsQatar Airways is ramping up capacity both in the India-Qatar sector as well as in other long haul routes to become West Asia’s preferred airline, outbidding rivals in the region, reports Lalatendu Mishra.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:08 am Global stocks rally on US jobs dataBourses worldwide on Monday sustained a rally that began late last week, with the Bombay Stock Exchange’s benchmark Sensex ending the day on a six-week high of 17,102 points.Source: HindustanTimes.com - Top Business News Headlines | 8 Mar 2010 | 9:03 am MetLife to buy AIG’s Alico unit for $15.5 billionNew York: AIG is selling its foreign life insurance unit to MetLife Inc for about $15.5 billion, in a deal that would help the US government recover billions in bailout funds. MetLife said on Monday that it would pay American International Group Inc $6.8 billion in cash and about $8.7 billion in equity securities for the American Life Insurance Co (Alico) unit, confirming an earlier Reuters report. The deal for Alico will help MetLife expand globally. MetLife, which is already the largest life insurer in the US and Mexico, will get a boost in Japan, the world’s second-largest life insurance market. Alico will also strengthen MetLife’s position in Europe and move it into a top five market position in many emerging markets in Central and Eastern Europe, the Middle East and Latin America. AIG will use the cash from the deal to redeem the Federal Reserve Bank of New York’s $9 billion preferred interest in a special purpose vehicle that holds Alico. It will also sell the securities over time to repay its debt to the US government after a $182.3 billion taxpayer-funded rescue. Source: World Business - Livemint.com | 8 Mar 2010 | 7:50 am Nomura rejigs management, Asian equities head quitsHong Kong: Siggi Thorkelsson has quit his post as Asian head of equities at Nomura Holdings, as the Japanese brokerage on Monday announced a management shake-up that included a new US chief to drive growth there. Nomura said Naoki Matsuba will take over as CEO for the Americas to drive its build out in the US. Matsuba, currently head of global equities, will also continue to manage that business as co-head. Nomura has been building up in the Americas and the region will play a key role going forward, it said in a statement. It has been on a hiring spree in the US, a top official told Reuters in an interview last week. Nomura named Hiromasa Yamazaki as global markets CEO to oversee operations including equities, fixed income and asset finance globally, moving up from deputy CEO of the unit. The current global markets CEO, Akira Maruyama, will become deputy president of Nomura Securities with responsibilities for the public sector. All of the changes will take effect on 1 April. Nomura said the changes were part of an annual review of its business conducted each March to put in place for its new fiscal year starting in April. Thorkelsson told Reuters he resigned on Friday to join another firm, declining to elaborate. “I will stay in the region,” he said. A career Lehman banker, Thorkelsson joined Nomura after it picked up the Asian and European businesses of Lehman Brothers in late 2008. Thorkelsson’s departure comes soon after Nomura’s co-head of fixed income Thomas Siegmund quit the firm. Nomura said Rachid Bouzouba, currently head of equities for Europe, the Middle East and Africa (EMEA), will be co-head of global equities to work on further developing the company’s equities business. The Japanese firm said it would establish a group risk management planning department and also set up a new government affairs and risk advisory group that will be overseen by Shigesuke Kashiwagi, currently CEO for the Americas. It also named Yasuaki Ogiwara as president and CEO of Nomura Italia and Albert Weng will be appointed as head of the Taipei branch of Nomura International. Masahiro Goto will move to London from Tokyo to take up the position of co-head of investment banking for EMEA. Source: World Business - Livemint.com | 8 Mar 2010 | 4:12 am
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