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Vishal Retail needs investor to infuse Rs 100200 crIn an exclusive interview with CNBCTV18, RC Agarwal, Chairman of Vishal Retail spoke about the company and how things have progressed over the weekend.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 8:42 am Govt may sell 10% in unlisted cos: SourcesThe government may be looking at diluting 10% in unlisted companies, reports CNBCTV18 quoting finance ministry sources. The move may be followed by a 5% dilution every year. This is done with the purpose of diluting 25% stake in listed entities as envisaged by the government.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 8:23 am Capgemini sees no signs yet of sustained recovery: ReportEurope\'s largest computer consultancy, Capgemini, said on Monday demand was improving but it had yet to see signs of a sustained recovery. \"The exit movement from the crisis is very incremental,\" Chief Executive Paul Hermelin told Les Echos in an interview.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 8:13 am India close to taking coal from ARA Europe stocksCoal glutted Europe is close to shipping surplus material for the first time from Netherlands stockpiles to India, where import demand is booming, European and Indian traders said.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 8:13 am Tata Steel sees costs up by $140150/tonneTata Steel, the world\'s No. 8 steelmaker, expects costs to rise between $140 to $150 per tonne, once new annual contracts for raw material supplies are signed, Managing Director H.M. Nerurkar said.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 8:13 am Tata Motors Feb global sales up 59% to 89,768 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 89,768 units in February 2010, a growth of 59% over February 2009.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 7:57 am Ranbaxy settles Actos patent litigation with TakedaRanbaxy Lab has announced settlement of Actos patent litigation with Takeda, reports CNBCTV18. As per the settlement, Takeda has allowed Ranbaxy a non exclusive royalty free license for Ranbaxys generic version.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 7:44 am TCS gets Malaysia Airlines contractTop Indian softwareservices firm Tata Consultancy Services has signed a fiveyear contract with Malaysia Airlines.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 7:25 am Kiri Dyes pays 50 million euros for DyStar buyKiri Dyes and Chemicals Ltd said on Monday it has paid 50 million euro for the acquisition of German DyStar.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 7:25 am India illequipped to respond to Haitistyle disasterQuakeprone India\'s lack of preparedness to deal with a Haitistyle earthquake will result in a poor and chaotic response with tens of thousands of casualties, the former U.N. chief responsible for immediate international disaster response said on Friday.Source: Moneycontrol Top Headlines | 15 Mar 2010 | 7:25 am NMDC expects 40% hike in ironore rates supplied to Jap mills - Business Standard
Source: Business - Google News | 15 Mar 2010 | 4:03 am Inflation nears 10%; rate hike priced in - Moneycontrol.com
Source: Business - Google News | 15 Mar 2010 | 3:47 am GLOBAL MARKETS - Central bank, Brussels meetings prompt cautionLONDON (Reuters) - Concerns about monetary tightening in China and caution ahead of U.S. and Japanese central bank policy meetings this week weighed on financial markets on Monday, weakening stocks.Source: Reuters: Money News | 15 Mar 2010 | 3:47 am Reliance Communications now has 100 mn subscribers - Sify
Source: Business - Google News | 15 Mar 2010 | 3:45 am L amp T bags Rs 2 000 crore order from Managalore PetrochemicalsEngineering and construction major Larsen and Toubro on Friday said it has won a Rs 2,035-crore order from the state-run Managalore Petrochemicals, a unit of Oil and Natural Gas Corp.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 3:41 am L&T bags Rs 2000 cr project from ONGC M'lore - Business Standard
Source: Business - Google News | 15 Mar 2010 | 3:39 am ARSS Infra bags orders worth Rs 207 cr - Business Standard
Source: Business - Google News | 15 Mar 2010 | 3:36 am Gold rises above $1,100/oz on sovereign debt fearsLONDON (Reuters) - Gold prices rose back above $1,100 an ounce in Europe on Monday as concern over sovereign debt fuelled buying of the precious metal as a haven from risk, with technical factors also supporting the market.Source: Reuters: Money News | 15 Mar 2010 | 3:36 am Ranbaxy settles patent dispute with Takeda - NDTV.com
Source: Business - Google News | 15 Mar 2010 | 3:33 am Greek crisis may wound southeast EuropeBUCHAREST (Reuters) - The Greek debt crisis is poised to undermine already dwindling investment flows into south-eastern Europe's emerging economies, adding to barriers to recovery in one of the continent's most fragile regions.Source: Reuters: Money News | 15 Mar 2010 | 3:29 am March inflation seen at Feb level - govt adviserNEW DELHI (Reuters) - India's wholesale price inflation in March is expected to remain at a 16-month high, Kaushik Basu, the chief economic adviser in the finance ministry, said on Monday.Source: Reuters: Money News | 15 Mar 2010 | 3:25 am Tata Motors global sales grow by 59 pc - The Hindu
Source: Business - Google News | 15 Mar 2010 | 3:22 am Nifty lacklustre; TCS, HUL, Wipro, JP Asso top gainers - Moneycontrol.com
Source: Business - Google News | 15 Mar 2010 | 2:58 am Inflation nears 10 pct; rate hike priced inNEW DELHI (Reuters) - India's headline inflation topped expectations and came within touching distance of double digits in February, making a rate increase by the Reserve Bank all but inevitable at its scheduled April policy review.Source: Reuters: Money News | 15 Mar 2010 | 2:58 am Govt may provide more sops to exportersThe government is likely to provide more incentives to labour-intensive sectors such as textiles, leather and engineering goods that were affected badly by the global slump in demand.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 2:31 am Why Microsoft Azure is a game changerIn Indian politics, there is a saying that you can never write anybody off. I say the same for software. After catching up a bit on Microsoft’s official India launch of its cloud computing platform last week, I think it is time to take the company very seriously all over again, writes N Madhavan.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 2:30 am Gold buying extends for second dayMumbai: India gold buying continued for a second day on Monday ahead of an upcoming festival and wedding season as prices stayed in the vicinity of their two-week lows prompting traders to stock more, dealers said. “I did normal deals today at around $1,105-1,107 (an ounce), even Friday was good, when we sold about 100 kgs at 1,100-1,105 levels,” said a dealer from a state-run bullion dealing bank. International gold, which guides the domestic markets, was trading at $1,105.45/1,106.25 an ounce as against the previous close of 1,099.50/1,103.50 an ounce. Gold has struck a two-week low of $1,098.25 an ounce in the previous session, a level last seen on 25 February. Gold prices rose as concern over sovereign debt fuelled buying of the precious metal as a haven from risk, with technical factors also supporting the market. “A lot of orders are there at about $1,090 (an ounce),” said another dealer with a state-run bank. However a weak rupee, which makes the dollar-quoted asset expensive, weighed on sentiment. The Indian rupee weakened, weighed down by gains in the dollar against major currencies and losses in the local sharemarket. India celebrates Gudi Padwa, the Maharashtrian new year, on Tuesday and the weddings season starts from April. Source: LatestNews-Home - Livemint.com | 15 Mar 2010 | 2:27 am Markets back in green at mid-sessionNew Delhi: Erasing early losses, the Bombay Stock Exchange Benchmark Sensex recovered to trade over 12 points higher at mid-session on fresh buying in stocks such as Reliance Industries and Infosys Technologies. The 30-share Sensex, which lost over 105 points in the early morning trade, bounced back to trade 12.39 points, or 0.07% higher at 17,179.01 at mid-session. The wide-based National Stock Exchange index Nifty, however was remained in negative zone with a marginal fall of 3 points at 5,134. Brokers said covering-up of short positions by speculators and fresh buying in heavy-weight stocks helped Sensex to trade in positive territory. The most-weighted Reliance Industries traded 0.66% higher at Rs1,028, while Infosys Technologies recovered by 0.46% at Rs2,685 after dipping to Rs 2,635.05 in the opening trade. Markets were trading lower, tailing weak Asian markets, with financials leading the decline ahead of the inflation data for February. India’s wholesale price index probably rose 9.62% in February from a year earlier, a Reuters poll of 21 economists showed. Top lender State Bank of India dropped 0.9% while leading private sector lender ICICI Bank shed 1.8%. Mortgage lender Housing Development Finance Corp declined 0.9%. HDFC Bank bucked the trend and edged 0.3% higher. By 10:06am the 30-share BSE index was trading down 0.36% at 17,104.23, with 19 of its components declining. The 50-share NSE index was down 0.4% at 5,114.35. “Asian markets are weak. Also, there is no news flow to move the market,” said Neeraj Dewan, director of Quantum Securities. “Inflation and advance tax numbers should provide some cues,” he added. Corporate advance tax payment figures for the quarter ending March are expected to trickle in later in the day, giving a brief idea about their report cards in the period. Investors were cautious after the benchmark rose for five straight weeks to 12 March. IT bellwether Infosys Technologies declined 0.1%. The stock has outperformed the main index so far this year with a 2.5% rise while the latter dropped 2%. Top vehicle maker Tata Motors climbed 0.2% after a senior executive told Reuters the company plans to offset rising commodity prices through price increases and trimming costs. Oil and Natural Gas Corp was down 1.3% after a senior company official said the state-run explorer’s domestic oil output is seen at 24.9 million tonnes in the current financial year ending March, lower than the 25.76 million tonnes target. In the broader market, declining shares outnumbered advancing ones in a ratio of 1.2:1 in volume of 64 million shares. Asian stocks fell from near seven-week highs on Monday after weak US consumer confidence data overshadowed strong retail numbers and curbed demand for risky assets. Source: Home - Livemint.com | 15 Mar 2010 | 2:27 am eBay partners apparel companies for IPL merchandiseOnline marketplace eBay India today said that it has tied up with leading apparel companies for selling IPL merchandise of all the eight teams.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 2:19 am Tata Motors group global sales up 59 pct in FebMUMBAI (Reuters) - Top Indian vehicle maker Tata Motors' group global sales rose 59 percent in February from a year earlier, the company said in a statement on Monday.Source: Reuters: Money News | 15 Mar 2010 | 2:08 am Facebook to open office in HyderabadMUMBAI (Reuters) - Popular social-networking site Facebook will open an office in India, joining a long list of international firms that have looked to tap a skilled workforce that provides support services at relatively cheap wages.Source: Reuters: Money News | 15 Mar 2010 | 2:06 am Inflation rises to 9.89% yoy in February - Economic Times
Source: Business - Google News | 15 Mar 2010 | 2:04 am Oil lower on concerns over demandNew York's main contract, light sweet crude for April delivery, shed 44 cents to $80.80 a barrel. The benchmark futures contract had briefly topped $83 on Friday.Source: Daily News & Analysis: Money News | 15 Mar 2010 | 1:54 am Facebook to set up office in HyderabadNew Delhi: Popular social-networking site Facebook will open an office in India, joining a long list of international firms that have looked to tap a skilled workforce that provides support services at relatively cheap wages. Facebook’s office in Hyderabad will support users, advertisers and developers in India and around the world, the company said in a statement on Monday. Hyderabad also houses other foreign firms, including Internet powerhouse Google and software giant Microsoft, whose Indian employees work on everything from writing software codes to providing customer services at cheaper salaries than in developed nations such as the United States. Facebook, which lets users connect and share information with friends online, has emerged as one of the Internet’s most popular destinations, challenging established players like Yahoo Inc and Google. Facebook counts around 400 million users and has had large investments from Microsoft and from Russian investment company Digital Sky Technologies. More than 8 million of Facebook’s total users are in India, the company’s director of global online operations, Don Faul, said in a post on the Facebook blog. Around 70% of the people using Facebook are outside the United States and are accessing the service from more than 70 languages, he said. Facebook’s office in Hyderabad will supplement operations supported out ofPalo Alto, California, Dublin, Ireland and a recently announced location in Austin, Texas. “By having multiple support centres in a variety of time zones, we canprovide better round-the-clock, multi-lingual support,” Faul said. Facebook has increased its focus on its financial performance. In September, Facebook said it had become free-cash-flow positive -- meaningthat the company makes enough money to cover the costs associated withrunning the service -- ahead of schedule. Internet search engines run by Google and Microsoft are increasingly interested in incorporating the growing trove of user-generated content from social media websites such as Facebook and Twitter into their search results in a bid to boost online advertising revenue. Facebook will initially recruit a small team in India, and anticipates further growth as the office expands. It is hiring people to join the online sales and operations teams that it is forming in the Hyderabad and Austin offices, Faul said. Source: Tech News - Livemint.com | 15 Mar 2010 | 1:48 am Facebook to set up office in HyderabadNew Delhi: Popular social-networking site Facebook will open an office in India, joining a long list of international firms that have looked to tap a skilled workforce that provides support services at relatively cheap wages. Facebook’s office in Hyderabad will support users, advertisers and developers in India and around the world, the company said in a statement on Monday. Hyderabad also houses other foreign firms, including Internet powerhouse Google and software giant Microsoft, whose Indian employees work on everything from writing software codes to providing customer services at cheaper salaries than in developed nations such as the United States. Facebook, which lets users connect and share information with friends online, has emerged as one of the Internet’s most popular destinations, challenging established players like Yahoo Inc and Google. Facebook counts around 400 million users and has had large investments from Microsoft and from Russian investment company Digital Sky Technologies. More than 8 million of Facebook’s total users are in India, the company’s director of global online operations, Don Faul, said in a post on the Facebook blog. Around 70% of the people using Facebook are outside the United States and are accessing the service from more than 70 languages, he said. Facebook’s office in Hyderabad will supplement operations supported out ofPalo Alto, California, Dublin, Ireland and a recently announced location in Austin, Texas. “By having multiple support centres in a variety of time zones, we canprovide better round-the-clock, multi-lingual support,” Faul said. Facebook has increased its focus on its financial performance. In September, Facebook said it had become free-cash-flow positive -- meaningthat the company makes enough money to cover the costs associated withrunning the service -- ahead of schedule. Internet search engines run by Google and Microsoft are increasingly interested in incorporating the growing trove of user-generated content from social media websites such as Facebook and Twitter into their search results in a bid to boost online advertising revenue. Facebook will initially recruit a small team in India, and anticipates further growth as the office expands. It is hiring people to join the online sales and operations teams that it is forming in the Hyderabad and Austin offices, Faul said. Source: Home - Livemint.com | 15 Mar 2010 | 1:48 am NMDC fixes FPO issue price at Rs300 per shareNew Delhi: State-run mining major NMDC on Monday said it has fixed the issue price of its further public offer of 33.22 crore equity shares at the lower end of the price band at Rs300 a piece. Besides, the Navratna PSU has offered a 5% discount to retail investors and employees at Rs285 per share, NMDC said in a filing to the National Stock Exchange. The $2 billion follow-on public offer (FPO) of the country’s largest iron ore miner was subscribed 1.25, backed mainly by state run financial institution LIC. The mining giant’s public offer of 33.22 crore shares in the price band of Rs300-350 per piece was open between 10 March and 12 March. During the FPO, most of the bids came in at the lower end of the price band, which analysts feel, prompted the government to fix the issue price at the lower end. NMDC FPO is the third public offer in 2010 by the UPA government under its divestment plan. NTPC follow-on offer was subscribed 1.29 times, while the REC issue was subscribed over three times. The government is divesting 8.38% of its 98.38% holding in NMDC through the FPO. On the NSE, shares of NMDC Ltd were quoting at Rs348.55, down by 3.91%. Source: LatestNews-Home - Livemint.com | 15 Mar 2010 | 1:47 am 11th plan aims to create 58m new jobs: GovtThe government on Monday said 58 million new job opportunities are likely to be created during the 11th Five year plan (2007-12), thanks to various steps including three stimulus packages since December 2008.Source: India Business News | Business News - Times of India | 15 Mar 2010 | 1:45 am TCS signs 5 year deal with Malaysia Airlines New Delhi: The country’s largest software exporter Tata Consultancy Services (TCS) on Monday inked a five-year deal with Malaysia Airlines (MA) for an undisclosed amount. The five-year contract for end-to-end IT infrastructure services will transform the airline’s IT operations to deliver seamless internal customer experience, TCS said in a statement. However, the size of the deal was not disclosed. “One of the key initiatives include fine tuning our IT outsourcing strategy to deliver the required business results at lower cost. At the same time, we will continue to work with our key vendors to maximise service delivery and to proactively address other business requirements,” MA chief information officer Faridah Abdul Rahman said. TCS will undertake IT infrastructure management of the airline’s data centres, IT networks and IT security. It will also set up a service management organisation under a ‘build, operate and transfer´ methodology for MA. “We are delighted to partner with MA and will leverage our expertise and best practices to help them achieve their strategic business transformation objectives, enabling them to capture the growth in the global aviation market,” TCS head (Asia Pacific) Vish Iyer said. Source: LatestNews-Home - Livemint.com | 15 Mar 2010 | 1:38 am Reliance Comm mobile users top 100 mln execWireless users at Reliance Communications, India's No. 2 mobile services provider, have crossed 100 million by mid-March, a company official said, as demand remains robust in the world's fastest-growing mobile market.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 1:35 am 11th plan aims to create 58 mn new jobsNew Delhi: The government on Monday said 58 million new job opportunities are likely to be created during the 11th Five year plan (2007-12), thanks to various steps including three stimulus packages since December 2008. Replying to a supplementary during the Question Hour in Lok Sabha, Labour and Employment minister Mallikarjun Kharge said employment is projected to grow at an average rate of 2.73% annually. He informed the House that the government has released Rs27,368.76 crore till April-January period of 2009-10 under the Mahatma Gandhi National Rural Employment Guarantee Scheme. Similarly, in other employment generation schemes like Swarnajayanti Swarozgar Yojna and Shahari Rozgar Yojna, the government has been making funds available to different states to create new job opportunities. On whether the government would give unemployment allowance to youths, Kharge said, “As of now there is no such plan.” Source: Home - Livemint.com | 15 Mar 2010 | 1:33 am TCS signs 5-year deal with Malaysia AirlinesThe country's largest software exporter Tata Consultancy Services (TCS) on Monday inked a five-year deal with Malaysia Airlines (MA) for an undisclosed amount.Source: India Business News | Business News - Times of India | 15 Mar 2010 | 1:31 am Reliance pays 7 7 bln rupee tax in Jan MarchReliance Industries has paid 7.7 billion rupees ($169 million) as advance tax for the March quarter compared with 3.65 billion rupees a year ago, an income tax department source said on Monday.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 1:28 am Rupee trims fall in line with shares; dollar eyedMumbai: The Indian rupee trimmed its fall in afternoon session on Monday as domestic shares turned positive after a choppy start while the dollar also trimmed its gains versus majors. At 1:05pm, the partially convertible rupee was at Rs45.54/55 per dollar, off a low of Rs45.61 but still weaker than Rs45.43/44 at close on Friday. The main stock index was trading marginally higher after having been down so far in the session but trading was choppy tailing weak Asian sharemarkets. The index of the dollar against six major currencies was just marginally higher, trimming some of its earlier gains. One-month offshore non-deliverable forward contracts were quoted at Rs45.59, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar/rupee contracts on the National Stock Exchange and MCX-SX were both at Rs45.6175, with the total traded volume on the two exchanges at about $3.1 billion. Source: Home - Livemint.com | 15 Mar 2010 | 1:28 am Google says China talks continue, but pullout signs growSHANGHAI/BEIJING (Reuters) - Google said on Monday it remained in talks with the Chinese government about censorship of its Chinese-language search portal, despite mounting signs the company could soon shut the site.Source: Reuters: Money News | 15 Mar 2010 | 1:27 am POSCO breaks ground for steel plant in MaharashtraSouth Korea's largest steelmaker POSCO said it broke ground on Monday on a plant in Maharashtra that will produce galvanised steel sheets for automobiles and electronic goods.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 1:16 am Persistent Systems sets IPO band at 290 310 rupees per shareSoftware developer Persistent Systems Ltd on Monday set a price band of 290-310 rupees a share for its 5.4-million-share initial public issue, a company official said on Monday.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 1:15 am Tata Consultancy gets Malaysia Airlines contractTop Indian software-services firm Tata Consultancy Services has signed a five-year contract with Malaysia Airlines, the company said in a statement on Monday.Source: HindustanTimes.com - Top Business News Headlines | 15 Mar 2010 | 1:12 am Satyam scam case: SC refuses bail to Ramalinga RajuThe Supreme Court on Monday dismissed the bail application of disgraced Satyam founder, Ramalinga Raju, the main accused in a multi-crore fraud case.Source: India Business News | Business News - Times of India | 15 Mar 2010 | 1:06 am Inflation rises to 9.89% in FebruaryWholesale price-based inflation rose to 9.89 per cent in February from 8.56 per cent in the previous month due to increase in prices of certain food items.Source: India Business News | Business News - Times of India | 15 Mar 2010 | 12:59 am Satyam scam: Supreme Court refuses bail to founder Ramalinga Raju'When serious crimes are committed, people are bound to be in jail,' a bench headed by chief justice KG Balakrishnan observed.Source: Daily News & Analysis: Money News | 15 Mar 2010 | 12:55 am Cabinet approves foreign universities to open campuses New Delhi: The Cabinet on Monday approved a proposal to allow foreign universities to set up campuses, a minister said, in a move that could reduce the flow of Indian students abroad. Tens of thousands of students head to universities in the United States, Britain and Australia among others for quality education each year. The long-standing proposal to reform the education sector will now go to Parliament for ratification, Union road and transport minister Kamal Nath told reporters following the Cabinet meeting. Political parties have in the past opposed the entry of foreign universities, saying the poor will not be able to afford the fees. But experts have called for a revamp of the Indian education system, which focuses on learning by rote. Goldman Sachs counts the lack of quality education as one of the 10 factors holding India back from rapid economic growth. Analysts say it raises costs, including salaries as firms vie for the best recruits, and reduces firms’ competitive edge. The demand for graduates over the next five years is likely to be 13.8 million, analysts have estimated. But with only 13.2 million students graduating over the same period, India will face a shortfall of 600,000 graduates. India’s large English-speaking population and growing middle class are expected to make the country a desirable destination for top foreign universities. Source: Home - Livemint.com | 15 Mar 2010 | 12:53 am Govt allows foreign universities to open campusesNEW DELHI (Reuters) - The cabinet on Monday approved a proposal to allow foreign universities to set up campuses, a government minister said, in a move that could reduce the flow of Indian students abroad.Source: Reuters: Money News | 15 Mar 2010 | 12:51 am Aksh optifibre in revenue share pact with BSNL - Moneycontrol.com
Source: Business - Google News | 15 Mar 2010 | 12:45 am February inflation at 9.89%New Delhi: India’s headline inflation in February came within touching distance of the double digit mark, making rate action by the Reserve bank of India (RBI) very probable in its scheduled April policy review. Wholesale price inflation accelerated to 9.89% in February from a year ago, above the RBI’s end March projection of 8.5% and higher than the 8.56% level recorded in January this year. A Reuters poll had estimated headline inflation in February to be 9.62%. The inflation data comes on heels of a 16.7% annual increase in industrial output in January, signalling how a faster-than-expected economic pickup may pressure the central bank to raise key policy rates by at least 25 basis points. Markets have already priced in that possibility. “This seals the case for rate hike so we expect both reserve ratio and interest rate hike on or before April policy meeting,” Ramya Suryanarayanan, economist, DBS, Singapore said. “It worrying that inflation always turns out higher than expected and the fact that there is a huge backward revision is also not good.” The December WPI was revised to 8.10% compared with 7.31% previously. The partially convertible rupee was almost unchanged at 45.57/58 immediately after the news. It had closed at 45.43/44 per dollar on Friday. The 10-year bond yield edged up 1 basis point to 8.02%, matching a 17-month high touched last week. It had closed at 8.01% in the previous session. The 30-share BSE index was barely moved by the data and was trading down 0.4% at 17,091.49 points. Despite the strong inflation and industrial output numbers, most analysts expect the central bank to act only in its April policy review and not before that. The RBI will also be mindful that any hike in rates could add to the cost of the government’s record borrowing needs of about $100 billion next fiscal year. The high inflation number was mainly due to the continued rise in food prices. The food price index rose 17.79% in February. Inflation in manufacturing also accelerated to 7.42% in February from 6.55% in January, indicating that inflation has now spilt over to the broader economy and is now not just restricted to the food sector. Top policymakers including the deputy chairman of India’s planning commission and the chief economic adviser to the Finance Ministry have said that food prices and headline inflation will moderate over the next few months. Source: Home - Livemint.com | 15 Mar 2010 | 12:44 am Reliance Industries pays 7.7 bln rupee tax in Jan-MarchMUMBAI (Reuters) - Reliance Industries has paid 7.7 billion rupees ($169 million) as advance tax for the March quarter compared with 3.65 billion rupees a year ago, an income tax department source said on Monday.Source: Reuters: Money News | 15 Mar 2010 | 12:39 am HCC to acquire Swiss realty firm for Rs150 cr Mumbai: Hindustan Construction Company (HCC) on Monday said it will acquire 66% stake in Karl Steiner AG, the second largest operator in the Swiss real estate market, for 35 million Swiss Franc (about Rs150 crore) in an all-cash deal. The board of HCC approved the acquisition of 66% stake in cash through issuance of fresh shares in Karl Steiner AG (KSAG) worth 35 million Swiss Francs, HCC said in a filing to the Bombay Stock Exchange (BSE). As part of the deal, HCC would acquire the remaining 34% stake in KSAG from its sole owner Peter Steiner in 2014. The shares will be sold at a pre-agreed price based on KSAG’s earnings achieved between 2010-2013, HCC said. KSAG will utilise the fund to expand its Swiss operations and the growth of its core business in India’s real estate market, the filing added. The deal is expected to close in the first quarter of the next fiscal, HCC said, adding it is awaiting regulatory approvals in Switzerland and India. KSAG, headquartered in Zurich, was founded in 1915. The real estate player now has branches in Basel, Bern, Geneva, Lucerne, Lausanne and St Gallen. Shares of HCC were trading at Rs144.25, up 1.02% over previous close on BSE. Source: LatestNews-Home - Livemint.com | 15 Mar 2010 | 12:38 am Toyota, Nissan, others set up electric car group Tokyo: Toyota and three other Japanese automakers together with a power company have set up a group to promote electric vehicles by standardizing recharging machines and marketing the technology abroad. Representatives of Toyota Motor Corp., Nissan Motor Co., Mitsubishi Motors Corp., Fuji Heavy Industries and Tokyo Electric Power Co. gathered at a Tokyo hotel on Monday to announce the association, which includes about 160 businesses, some of them foreign, and government organizations. The officials said that the time may have arrived for electric vehicles to really take off not only in Japan but also around the world as concerns grow about emissions and dependence on oil. But the main hurdles that need to be overcome are better battery technology, costs and having recharging stations in convenient locations. “Automakers are competing in many aspects, but the entire industry needs to come together and offer convenience for our customers,” said Nissan chief operating officer Toshiyuki Shiga. Nissan is planning to start selling in limited numbers an electric vehicle called Leaf later this year, and Mitsubishi and Fuji Heavy already have electric vehicles on the market. Toyota has begun offering for rental a plug-in version of its gas-electric hybrid vehicles. But electric vehicles still remain largely experimental. The main users now are government-related groups with only a niche market among regular consumers. The Japanese government has made reducing greenhouse gases a pillar of its policy, and encouraging electric vehicle use is seen as a key way that can be achieved. “Please make this an all Japan effort,” Teruhiko Mashiko, the economy minister said. The group is still working out the details of its recharging platform. Standardization would require all makers to agree on the voltage, outlet and other aspects of the technology while also ensuring relatively speedy recharging. Although some participants expressed hopes the standard would spread internationally, Toyota executive Koei Saga said that was close to impossible because of different needs and uses overseas. Among the other businesses in the group are Pacific Gas and Electric Co., French carmaker PSA, Japanese electronics maker Toshiba Corp. and KDDI Corp., a major Japan telecommunications company. The association is called ‘CHAdeMo’ which comes from the words ‘charge’ and ‘move’, and sounds like Japanese for, ‘Care for some tea?’. Source: World Business - Livemint.com | 15 Mar 2010 | 12:20 am Toyota, Nissan, others set up electric car group Tokyo: Toyota and three other Japanese automakers together with a power company have set up a group to promote electric vehicles by standardizing recharging machines and marketing the technology abroad. Representatives of Toyota Motor Corp., Nissan Motor Co., Mitsubishi Motors Corp., Fuji Heavy Industries and Tokyo Electric Power Co. gathered at a Tokyo hotel on Monday to announce the association, which includes about 160 businesses, some of them foreign, and government organizations. The officials said that the time may have arrived for electric vehicles to really take off not only in Japan but also around the world as concerns grow about emissions and dependence on oil. But the main hurdles that need to be overcome are better battery technology, costs and having recharging stations in convenient locations. “Automakers are competing in many aspects, but the entire industry needs to come together and offer convenience for our customers,” said Nissan chief operating officer Toshiyuki Shiga. Nissan is planning to start selling in limited numbers an electric vehicle called Leaf later this year, and Mitsubishi and Fuji Heavy already have electric vehicles on the market. Toyota has begun offering for rental a plug-in version of its gas-electric hybrid vehicles. But electric vehicles still remain largely experimental. The main users now are government-related groups with only a niche market among regular consumers. The Japanese government has made reducing greenhouse gases a pillar of its policy, and encouraging electric vehicle use is seen as a key way that can be achieved. “Please make this an all Japan effort,” Teruhiko Mashiko, the economy minister said. The group is still working out the details of its recharging platform. Standardization would require all makers to agree on the voltage, outlet and other aspects of the technology while also ensuring relatively speedy recharging. Although some participants expressed hopes the standard would spread internationally, Toyota executive Koei Saga said that was close to impossible because of different needs and uses overseas. Among the other businesses in the group are Pacific Gas and Electric Co., French carmaker PSA, Japanese electronics maker Toshiba Corp. and KDDI Corp., a major Japan telecommunications company. The association is called ‘CHAdeMo’ which comes from the words ‘charge’ and ‘move’, and sounds like Japanese for, ‘Care for some tea?’. Source: Home - Livemint.com | 15 Mar 2010 | 12:20 am Narrow movement seen on PowerGridI bought Shree Renuka Sugars March futures at 173. Please recommend the target and stop-loss. Can I average here? – Mr Mangesh, Amalapuram, AndhraSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Gold glitters as investors gain 75% in six yearsIndians have for long been among the world's largest consumers of gold, representing about a quarter of the global demand for the yellow metal eachSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Gold to test support levelsComex gold futures ended lower on Friday, despite a weaker dollar mostly on China worries. Possible monetary tightening in China kept markets nervous. Profit-taking ahead of the weekend, worries about Chinese monetary tightening weighed onSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Day Trading GuideA move beyond Rs 316 level would be a positive sign for the stock to initiate long position, with tightSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Demand for gold steady as investors look for safe havenEven as the financial markets continue to gyrate, the broader macro-economic data releases signal of an expansion in economic activity. OECD composite leading indicators in January 2010 continue to suggest an improvement in economic activity forSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am End of STPI reliefs could hit Infosys BPO marginsInfosys BPO has said its margins could get affected once the STPI holiday ends from 2011 onwards and hence, it needs to focus more on SEZs to drive itsSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Demand for H-1Bs may rise this year on pick-up in bizA turnaround in business sentiment and improved demand are expected to drive Indian IT firms to apply for higher number of H-1B visas this year compared to 2009, when global uncertainty had lowered the appetite for the covetedSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Crew B.O.S Products – BuyInvestors with medium-term perspective can consider investing in the stock of Crew B.O.S Products (Rs 83.5). The company manufactures and exports fashion accessories and home decoration products. The stock's long-term downtrend that started inSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Govt counts on PSUs to drive mega solar projectsThe Centre is counting on the public sector brigade to execute capacity on large-scale grid connected solar power projects. ONGC, NHPC, BHEL, and NTPC are among the frontSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am What the new interest rate regime means for SB account holdersThe RBI Annual Policy Statement for 2009-10 announced by the Governor on April 21, 2009 proposed as under: “At present, interest on savings bank accounts is calculated on the minimum balances held in the accounts during the period from theSource: Business Line - Home Page | 15 Mar 2010 | 12:00 am Asian stocks fall after mixed US economic reportsHong Kong: Asian stock markets sank on Monday after mixed economic reports about the US economy inspired caution among investors. Major bourses were down as much as 1% after a lackluster session on Friday. Oil prices dropped below $81 a barrel and the dollar gained against the euro and fell against the yen. Investors found few reasons to buy after US economic data released Friday painted an uneven picture of recovery in the world’s largest economy. While retail sales were better than expected last month, a weaker report on consumer sentiment disappointed traders. Investors were also awaiting statements and policy decisions from central banks in the US and Japan expected later this week. Any fresh news about Greece’s debt woes could also steer markets higher or lower. In Japan, the Nikkei 225 stock average lost 19.26 points, or 0.2 %, to 10,732.00. Hong Kong’s Hang Seng was down 0.9 % at 21,026.92 and South Korea’s benchmark shed 0.8 % to 1,648.42. Elsewhere, Shanghai’s market fell 1.3 %, Australian stocks lost 0.7 % and India’s index dropped 0.5 %. Oil prices were lower in Asia, with benchmark crude for April delivery falling 42 cents to $80.82. The contract slipped 87 cents on Friday. In currencies, the dollar was lower at ¥90.61 from ¥90.65. The euro fell to $1.3741 from $1.3685. This week, the US Federal Reserve will be in focus when it wraps up its policy meeting Tuesday. As the Fed is widely expected to keep interest rates near zero, its outlook for the US economy and any clues to when rates will raise will bear greater importance. In Asia, Japan’s central bank is also seen keeping interest rates at rock-bottom levels Wednesday, though there’s growing speculation it will step up its policies to keep credit and liquidity loose as the world’s second-largest economy rebounds. In Europe, Greece is presenting the first results of its austerity measures to reduce its mountains of debt and whip its budget into stronger shape. The results, to be delivered Monday and Tuesday at a European Union finance ministers meeting, could lead ministers to decide to extend Greece financial aid, according to media reports. Friday in the US, the Dow ended up 12.85, or 0.1 %, at 10,624.69. The broader S&P 500 index slipped 0.25, or less than 0.1 %, to 1,149.99. The Nasdaq composite index fell 0.80, or less than 0.1 %, to 2,367.66. It stands at an 18-month high. Source: Home - Livemint.com | 14 Mar 2010 | 11:56 pm Rupee falls by 13 paise against dollar in early tradeForex dealers said besides strong dollar overseas, some demand from importers for the US currency also weighed on the rupee sentiment.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 11:49 pm Sensex falls by 77 points in opening trade on Asian marketsThe 30-share index, which shed 1.34 points in the previous session, drifted by 77.67 points, or 0.45% to 17,088.95 points in the opening trade.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 11:22 pm POSCO to invest $240 mn in India steel plant Seoul: South Korea’s POSCO, the world’s No.4 steelmaker, on Monday said that it would invest $240 million to build a galvanising steel plant in Maharashtra state, western India. The continuous galvanising line producing steel products for automobiles and electronic goods is set to be completed in May 2012 with an annual production capacity of 450,000 tonnes, POSCO said in a statement. Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 11:15 pm Godrej Consumer gains 4% on African acquisition plans Mumbai: Shares of Godrej Consumer Products on Monday surged over 4% on the Bombay Stock Exchange (BSE) on the first day of trading following the company’s announcement to buy Nigeria-based personal care products brand Tura. Shares of Godrej Consumer Products opened firm and rallied 4.22% to a high of Rs282.40 on the BSE, amid a flat broader market. The BSE key index Sensex was quoting 0.39% down at 17,099.36 points. Similar movement was seen on the National Stock Exchange (NSE) where Godrej Consumer gained 4.47% to Rs283. The Indian soap and hair colour maker on Friday said that it has agreed to acquire Tura for an undisclosed amount, as part of the Godrej Consumer’s strategy to sell its products in Nigeria and other Western African countries. Godrej Consumer, which manufacturers soaps, deodorants, hair color, among other products, has in the past few years made a couple of acquisitions to tap the South African hair care market. It acquired two South African companies—hair color company Rapidol in 2006 and hair accessory maker Kinky in 2008. Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 11:01 pm Sensex back in green at mid sessionErasing early losses, the Bombay Stock Exchange Benchmark Sensex recovered to trade over 12 points higher at mid-session on fresh buying in stocks such as Reliance Industries and Infosys Technologies.Source: HindustanTimes.com - Top Business News Headlines | 14 Mar 2010 | 10:55 pm Rupee falls by 13 paise against dollar in early tradeThe Indian rupee depreciated by 13 paise against the dollar in early trade today, following gains in the US currency against its rivals.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 10:27 pm Sensex down 77 points on weak Asian cuesThe Bombay Stock Exchange benchmark Sensex fell over 77 points to 17,088.95 in the opening trade on Monday as investors sold stocks amid weakening trend on the other Asian bourses.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 10:14 pm Oil eases below $81 on US data, eyes Fed decisionSingapore: Oil eased below $81 a barrel on Monday, extending the previous session’s losses, as data showing a drop in US consumer confidence fanned worries about flagging demand in the world’s top energy user. The market will scour US February industrial output data, due later, for further clues to the health of the world’s largest economy, and a statement from the Federal Reserve at the end of its two-day interest rate-setting meeting on Wednesday, for evidence the recovery is still on track. “Sentiment is a bit mixed today, with prices driven lower by profit-taking, as stronger-than-expected US February retail sales were offset by a decline in March consumer confidence,” said Ben Westmore, commodities analyst at the National Australia Bank in Melbourne. “The market will await further clues on demand outlook from the Fed’s rate decision on Wednesday.” By 8:03am, US crude for April delivery had fallen 47 cents to $80.77 per barrel, after settling at $81.24 on Friday. London Brent crude was down 39 cents at $79.00. US consumer sentiment declined slightly in early March, with Americans less positive about the job outlook, a survey released on Friday showed. But February retail sales rose unexpectedly, despite heavy snow storms that were thought to have kept shoppers at home and bolstered hopes of a sustainable economic recovery. At 6:45pm, the Federal Reserve will unveil industrial output and capacity utilisation data for February. Economists expect a 0.1% fall in production and capacity usage of 72.6%, compared with January’s rise of 0.9% in production and a capacity usage of 72.6%. The Fed is expected to hold benchmark rates near zero and reiterate its pledge to keep them low for an “extended period”, due to lingering weakness in the US jobs market and nagging doubts over the solidity of the economic rebound. But since US consumers are buying more and companies appear to be on the verge of hiring again, policymakers in the Fed may ponder on how long to keep its ultra-low rate pledge. Investors will try to tack another leg on to the year-long US stock rally, looking to this week’s economic data and statement from the central bank for cues. After tumbling during the fourth-quarter earnings season, the S&P 500 has climbed back to its mid-January levels, racking up a 17-month closing high last week. But the index’s hold on the key 1,150 level is tentative and closed just below it on Friday. Friday’s solid US retail sales data buoyed the greenback against the yen on Monday, but the Japanese currency hovered within striking distance of three-week lows on growing expectations the Bank of Japan could mull loosening monetary policy further this week. Sources have told Reuters Japan’s central bank is leaning towards easing monetary policy again at its two-day policy review that ends on Wednesday. On the supply front, the market will also eye the outcome of OPEC’s meeting later this week. The Organization of the Petroleum Exporting Countries, which pumps at least one in every three barrels of oil, meets in Vienna on Wednesday to discuss production policy. Officials have said they do not expect a change in targets while prices are within their desired range. Opec has restricted output since the onset of the financial crisis in a bid to support prices. But the group’s compliance with its officially targeted cut of 4.2 million barrels per day (bpd) has slipped to just 53% as prices have risen. Source: Home - Livemint.com | 14 Mar 2010 | 8:50 pm Microfinance now seeks to tap the loaded gentryMerchant bankers trying to lure the wealthy.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:53 pm Realtors back to share-pledgingPromoters keep shares as collateral as funding is hard to come by.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:51 pm More guests, sure, but room rates dragHotel sector claws above 2009 occupancy levels.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:49 pm JFE to buy Bengal Steel SPV stake, & not in ally JSWTalks for a stake in parent company off.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:47 pm 'And gold will be the last man standing'Bill Bonner speaks with DNA on fiscal deficits, central banks, gonoism, and that thing called gold.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:45 pm RIL, IMG join hands to develop sports in IndiaReliance Industries Ltd (RIL) and IMG Worldwide, the worlds leading sports marketing and management company on Sunday announced an equal joint venture, IMG Reliance Pvt Ltd to develop, market and manage sports and entertainment in India.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 2:41 pm MS, Google slug it out in local languagesIts difficult to say how many in India understand English. But it might be fair to say, as a Microsoft release recently did, that about 95% of the countrys population prefers working in their regional language.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 2:40 pm Govt mulls divesting 10% stake in NalcoGovt holds about 87.1% equity in the navratna company, while the rest is with public. It hopes to raise around Rs 2200 crore from the stake sale in Nalco, while the target for 2010-11 is Rs 40,000 crore.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 2:39 pm '2010 to reward bottom-up strategy'Mohit Mirchandani, head of equity investments, Taurus Mutual Fund, explains how he identifies companies, where the markets take their cues from and the sectors he is bullish on.Source: Daily News & Analysis: Money News | 14 Mar 2010 | 2:39 pm Port traffic keeps on surgingWith economic activity picking up in Europe and across many other countries, Indian ports have registered growth for the seventh consecutive month in February over the corresponding period last year.Source: India Business News | Business News - Times of India | 14 Mar 2010 | 1:57 pm Deccan record first win, outplay Chennai by 31 runsChennai: Chaminda Vaas (3/21) ripped apart the Chennai Super Kings’ top-order after Andrew Symonds and Herschelle Gibbs sparkled with the bat as Deccan Chargers beat the hosts by 31 runs to score their first win in the Indian Premier League here on Sunday. Symonds (50) and Gibbs (45) weaved together a crucial 95-run partnership for the third wicket to lift Chargers to a handsome 190 for four.  The defending champions then restricted Chennai for 159 for nine at M A Chidmabaram stadium. Skipper MS Dhoni (42) and Albie Morkel (42) were joint top scorers for the hosts. Chennai never recovered from the early blows landed on them by Vaas, who yet again gave his side a super start by ripping through hosts top order. Pragyan Ojha (2/28) and Symonds (2/29) took two wickets apiece as their contribution in team’s win. The Sri Lanka paceman dismissed Murali Vijay (3) and Suresh Raina (6) in his second over and returned to get rid of dangerous Matthew Hayden (17). They had hardly settled that Ojha sent back S Badrinath (5) to leave Chennai innings in tatters at 32 for our. Kemp (22) and Dhoni had an enormous task at hand but all they could manage was a 38-run stand. As the asking rate was touching sky, Kemp stepped out and lifted Ojha for a huge long-off six to break shackles but it was left-arm spinner who had the last laugh as two balls later he foxed the big hitter and had him stumped. Dhoni had Morkel as his new partner and they were left with no option but to got for the kill.  Deccan Chargers player Andrew Symonds in action during Indian Premier League 3 at MAC Stadium in Chennai on Sunday. R Senthil Kumar/PTI However, Deccan spinners bowled magnificently and did not let the two big hitters do much damage. Symonds clean bowled Dhoni to make the task all the more difficult for Chennai. Although, Morkel came up with some lusty blows in his unbeaten knock but that proved insufficient. Earlier, Symonds, who scored his second IPL fifty, and Gibbs joined forced after Deccan had lost two quick wickets, albeit after a fiery start. The two batsman dug in and placed the defending champions to a position from their bowlers could fight well. Both Symomds and Gibbs were run out in the fag end but Rohit together with T Suman (10) finished the innings splendidly, taking 22 runs from the last over. Sudeep Tyagi bowled the first five balls of the 20th over and was taken off the attack after bowling a beamer to Sharma. Kemp completed the over. Symonds’ 50-run knock came off 43 balls with three sixes and an equal number of boundaries while Gibbs took 36 balls for his 45 with the help of five fours and one six. Brief Score Deccan Chargers: 190 for 4 in 20 overs. (A Symonds 50, H Gibbs 45, A Gilchrist 38; R Ashwin 1/26)). Chennai Super Kings: 159 for 9 in 20 overs. (MS Dhoni 42, A Morkel 42 not out; C Vaas 3/21). Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 1:54 pm The implementation sideThe two major tasks that the finance minister has taken upon himself are the implementation of the direct tax code and the goods and services tax (GST), both by 1 April 2011. The draft tax code is already in the public domain, and the adjustments in personal taxation made in this year’s Budget will make it easier to implement the new code. Of these, the GST roll-out will fundamentally change revenue realization, the transparency of tax collection and the reduction of administrative costs. It is likely that there would be significant revenue gains to the Centre as well as the states once GST is in place, most of it coming out of capturing revenue leakages into the system. Implementation of GST, though, appears to be fraught with several obstacles. There are two reports on GST in the public domain—one put out by the empowered group of ministers and the other by the 13th Finance Commission. I have already commented that the latter has probably been contributed to and prepared by people who have no knowledge and experience of goods and services taxation and its implementation. Further, the recommended rates for GST—at 5% for the Centre and 7% for the states—are unrealistic now that the service tax, the Central excise and customs duty are all at 10%. The recommendations to include liquor excise and power tariff into GST are also unrealistic. Thus, it’s the discussion paper of the empowered committee that is the one that needs to be looked at from the point of view of implementation. That paper recommends a dual (the Centre and the state) model of GST, to cover all goods and services except those exempt, with separate payments to the Centre and the states. The paper recommends a uniform procedure for filing GST returns across the country. This outline needs to be fleshed out. The proper way to do this would be from the bottom up, so that implementation is smooth. For example, first, at the level of the assessee, if there are two forms to be filled (the state and the Centre) and two returns to be submitted, the first question is whether he would get two assessment orders for the same tax—and if so, whether there would be two appellate bodies for dispute resolution. In cases of misclassification, it is important to prescribe which of the two would have overriding jurisdiction. Second, if the procedures are to be uniform, then the state governments as well as the Centre need to agree on these formats and procedures and to enact rules for them; I am not sure whether any significant attempt has as yet been made towards this goal. All the states as well as the Central excise department need to come on board for this, since it means a massive rewrite of all existing procedures. Third is integrating the tax credits. The GST scheme, once in place, would require Central excise and service tax credits to be exchanged for state service tax and value-added tax (VAT) credits. For this exchange to occur seamlessly throughout the country, there is the need to create immense information technology (IT) architecture. This is neither difficult nor infeasible—we have the financial market architecture as well as the real-time gross settlement, or RTGS, system in banks already in place, something more complex—but we need to make a start. The important criterion should be to capture all input credits, so that tax evasion and tax avoidance disappears. The model must then be automatic, with easy user interface, incapable of being manipulated by the officials, and transparent. If we think through the IT requirement, one can visualize one or two central servers in each state to handle the transactions—much like the central server for income tax coming up in Bangalore. The important challenge is the interlinking of transactions and of credit, not just between the states but also between the Centre and the states. It is important that a new IT set up is created, rather than tinkering with existing ones—since there are ample differences among the states’ tax structures, not to mention between the Central excise and service taxes. Once the concept is in place, putting in the actual tariff numbers would be easy. And since Central excise as well as state VAT personnel are already using IT in several states, training the staff would also be easy. Working backwards, one should have a pilot project in place in a district within three months, which means that the IT suppliers need to start working now. Now that the Budget has made all Central tariffs converge at 10%, we are possibly looking at another 10% or 12% for the states, and a GST rate of between 20% and 22%. This rate is not unreasonable at all, given that a number of cesses and local levies would be subsumed. This narrative has become necessary, because everyone is talking only in terms of legislation, lists of goods and services and rates. While these are important, no one appears to be looking at how the system will actually work. Hence the need to sketch a feasible roll-out plan. S. Narayan, a senior research fellow at the Institute of South Asian Studies, Singapore, is a former finance secretary. We welcome your comments at policytrack@livemint.com Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 1:45 pm Rights issues are staging a comebackMumbai: Rights issues, or the sale of stock to existing shareholders, are making a comeback as a preferred fund-raising route for listed companies, opening up the opportunity for retail investors to increase the size of their holdings. With institutional money no longer cheap and as easy to come by as it was six months ago, many companies are tapping shareholders. At least eight companies, including Adani Enterprises Ltd and Uttam Sugar Mills Ltd, have received approval from the capital market regulator, the Securities and Exchange Board of India (Sebi), to raise a collective Rs2,400 crore through rights issues. Currently, six companies, including IBN18 Broadcast Ltd and Swaraj Mazda Ltd, are in the market raising around Rs700 crore. Three other large companies have announced plans to raise money through the route and many more are expected to join them, market intermediaries say. Consumer durables maker Videocon Industries Ltd said last week that it would raise Rs1,200 crore. It has filed a draft offer document with the market regulator. Earlier, India’s second biggest airline Kingfisher Airlines Ltd and biggest phone company Bharti Airtel Ltd had taken board approvals to raise money through rights issues. State Bank of India chairman O.P. Bhatt has also spoken of raising money through a rights issue although the bank has not yet sought Sebi approval. A rights issue offers existing shareholders the right to buy a proportional number of additional securities at a given price—usually at a discount—within a fixed period. Companies take the rights issue route for raising capital when equity markets are relatively stable and promoters seek to raise money without diluting their stake. This is because in a falling market, investors prefer to buy shares from the secondary market. According to investment bankers, companies prefer to take the rights issue route to raise funds when they find it difficult to attract enough institutional investors to fund their working capital requirements. “Typically, when it’s difficult to raise money from institutional investors, companies float rights issues. That is what’s happening now. Investors are more confident about putting (money) in rights issues as promoters also bring in money and provide equal opportunity of buying shares for all categories of shareholders,” said Naresh Kothari, president, Edelweiss Capital Ltd. Some companies are taking advantage of stable markets to raise capital from existing shareholders without having to offload shares from promoters’ holdings, said Prithvi Haldea, chairman and managing director of Prime Database, a Delhi-based primary market tracker. Rights issue had taken a back seat last year as companies preferred the quick and convenient route of qualified institutional placements (QIPs). From a peak of Rs29,786 crore in 2008, money raised through rights offerings fell by over 90% to Rs2,525 crore in 2009. According to V.R. Srinivasan, director, Brics Securities Ltd, a Mumbai-based brokerage, rights issues are attractive to small investors as they are usually at a discount to market price. QIPs, on the other hand, have a floor price that investors cannot breach. Cash-strapped Indian firms chose to raise money through QIPs last year. Unitech Ltd, India’s second largest real estate firm in terms of market value, took the lead to raise Rs1,621.1 crore in March last year and other firms, mostly in the realty sector, quickly followed suit to meet working capital needs. Overall, 48 QIPs raised Rs33,780.77 crore in 2009. Unlike public offers, QIPs do not require any offer document or regulatory clearances, allowing firms to quickly raise funds. QIPs, in which promoters of listed entities issue shares to institutional buyers without involving retail investors, had suffered a setback in 2008, amid a global credit crisis. Funds raised through QIPs amounted to Rs3,586.45 crore in 2008, a drop of around 80% from Rs23,338 crore in 2007, according to Prime Database. Early this month, the capital market regulator changed QIP norms and made it mandatory for firms to disclose the names of investors. They had been required to disclose the identities of only the underwriters of such issues. Because all investors are not comfortable with the idea of their identities being disclosed, many more companies may opt for rights issues, according to brokerage houses. n.subramanian@livemint.com Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 1:45 pm Ayurvedic drug makers struggle to promote herb cultivationChennai: Ayurveda, the age-old Indian system of healing, is looking for an alternative prescription for a wild addiction. Even as the traditional system of medicine dating back more than 2,600 years reinvigorates and cures patients using largely vegetable-based drugs, upwards of 80% of the leaves, stems, bark and roots that go into Ayurvedic concoctions are sourced from the wild—a majority from forests and the remaining from wastelands, roadsides and farm bunds.  Cost hurdle: Himalaya Drug Co. chief executive Ravi Prasad estimates the price of cultivated medicinal plants to be as high as five times that of those collected from the wild. Himalaya chief executive Ravi Prasad estimates the price of cultivated produce to be as high as five times that of those collected from the wild as farmers try to cover the cost of land, organic fertilizer, pesticides and labour. Farming expertise, such as the amount of space that has to be left between saplings or the best season to cultivate for a higher yield, is also not available for mass cultivation of wild herbs. So a majority of India’s marginal farmers, already reeling under debt and wide price fluctuations for regular harvests of rice, wheat or vegetables, are unwilling to risk herb cultivation. “The industry has been used to procuring medicinal plants through a network of traders who get their supply through collectors,” says Ranjit Puranik, chief executive of the 137-year-old, Mumbai-based Shree Dhootapapeshwar. “The sector needs to develop an intellect for contract cultivation.” Meanwhile, the number of people available to collect medicinal plants strewn across wastelands, growing in fields as weeds or within shrinking forests has declined, especially after the introduction of the Mahatma Gandhi National Rural Employment Guarantee Scheme that offers every rural family at least Rs60 a day for 100 days a year of relatively less risky manual work. The fall in collection of wild herbs threatens the growth of the industry. Export of herbal products, although worth only Rs1,000 crore according to the National Medicinal Plant Board, is growing at 50%—or double the pace of the roughly Rs90 billion domestic market. “Ageing populations in Europe or the US are moving towards herbal products for internal and topical health,” said Prasad of the Bangalore-based Himalaya, India’s second largest herbal drugs and nutrition company, behind only Dabur India Ltd. “But product quality depends on raw materials. In the open market, there are always batches that have lower alkaloid content.” Alkaloids are the naturally occurring chemical compounds in plants extracted for making Ayurvedic products. Lower alkaloid content requires processing of more raw materials to extract a certain amount of active ingredients. Around 960 species of medicinal plants are used by Indian Ayurveda companies where 178 species are required in excess of 100 tonnes annually, according to not-for-profit Foundation for Revitalisation of Local Health Traditions. Last month, Himalaya tied up with one of its key suppliers, Gram Mooligai Co. Ltd, to set up a 75-acre nursery of high active ingredient plant species near Madurai in Tamil Nadu. By 2015, Himalaya aims to source 70% of its raw materials through cultivation. Besides paying a one-time fee of Rs7.5 lakh to Gram Mooligai, which supplies 60% of its raw stock, Himalaya will foot the cost of testing mass cultivation of some herbs. Gram Mooligai, owned by medicinal plant gatherers and small cultivators logging sales of Rs86 lakh last year, will make seeds of tested herbs available for free to farmers who could grow them in between their regular crops and supply the produce to Himalaya. But Dhootpapeshwar’s Puranik doesn’t believe it will be that easy. “It would be sort of blasphemous for Ayurveda companies to say that I don’t wish to get into cultivation,” says Puranik. “But the truth is that for any company, cultivation of only two-four species is viable.” Growmore Bio-Tech Ltd’s director N. Barathi couldn’t agree more. Five years ago, Barathi’s company stepped into tissue culture of medicinal plants such as Aloevera—a succulent plant widely added in cosmetics for its moisturizing property—to create exact copies of one of its variants yielding a high level of active ingredient. But some Ayurveda manufacturers who bought such saplings and distributed them to farmers with a buy-back arrangement at a fixed price reneged on the contract as market prices slipped with increased supply. In 2005, amid sluggish demand as companies continued to source cheaply from medicinal plant gatherers and farmers remained unwilling to risk mass cultivation of herbs selling for a pittance, Growmore Bio-Tech steered away from herbs to commercial crops. “Companies feel if raw materials are available in the wild then why should we cultivate it?” says Barathi. “A lot depends on how strictly the government stops forest collections. Only then cultivation will pick up, quality will improve and costs will come down.” Source: LatestNews-Home - Livemint.com | 14 Mar 2010 | 1:45 pm We are planning a dedicated set-up in India for researchMumbai: French pharmaceutical firm Sanofi-Aventis SA, the world’s third largest drug maker by sales, is looking to India to expand its scientific capabilities and tap new business opportunities. That’s a path being taken by other international drug makers as well, as they come under pressure in their home markets in developed economies. Marc Cluzel, who became Sanofi’s global research head in November, was in India last week to meet at least a dozen scientific institutions and drug research firms and domestic drug makers in the public and private sectors. Cluzel, who is executive vice-president (research and development), met officials at scientific institutions such as the Indian Council of Medical Research, Indian Institute of Science, Bangalore, and regulatory agencies including the department of biotechnology and department of pharmaceuticals. Sanofi, which spends €4-5 billion (Rs24,920-31,150 crore) on research and development (R&D) annually, is expected to invest some €650 million over the next five years in India. In an interview, Cluzel said Sanofi plans to have a “dedicated set-up in India for discovery research”. Edited excerpts: Sanofi had in 2009 significantly restructured its research set-up worldwide, anticipating key changes in the pharmaceutical market. How important is India as a source of research skills? Very important. In India, there are a number of players, including government laboratories, universities and even private sector companies, who can contribute significantly to modern drug research. We are keenly looking for partnering with many in this area to take forward our research for the future.  Drug discovery: Sanofi’s global research head Cluzel says that since the future growth for big drug makers would be largely from the emerging markets, the firm will look at diseases specific to these regions. Kaushik Chakravorty/ Mint I had interesting meetings in the country, and I think there are many joint research projects possible through collaborations and public-private partnerships. Looking at the research opportunities in India, we are now planning to have a dedicated set-up in India for discovery research by appointing a dedicated officer to oversee these activities in India. What is the model you would follow in these partnerships? It will be like sharing investment, skills and results. What are the disease segments the company will on focus now? Sanofi is currently exploring new approaches, and develops products in the areas (such as) cardiovascular diseases, diabetes, cancer, central nervous system disorders and internal medicine. We will also look at anti-inflammatory and anti-infection areas. Since the future growth for big pharmaceutical companies would also be largely from the emerging markets, including India, we can look at diseases specific to these regions. There are unmet medical needs in these markets, and several diseases which were not in the focus for big pharma companies till now. What are the new challenges that top pharma companies such as Sanofi are facing in discovery research? We have to look back to science in the modern concept, which will only offer the products for future market needs. At the same time, managing cost is another big challenge that these companies are facing. There are about 20-25 successful drugs coming out of the research process that actually work on several candidates in the world a year, with a total cost of about $60 billion (Rs2.73 trillion). This means one new drug costs at least $1.5-2 billion on research. So reducing the attrition in the research pipeline is the key challenge for any drug company, including Sanofi. Are blockbuster drugs (drugs with sales of $10 billion and above annually) disappearing from the research portfolio of top drug makers? Blockbusters are largely disappearing in R&D in the process of increased safety and regulatory scrutiny. But there is still scope for such drugs by the expansion of science into the possibilities of genomic revolution and other capabilities. It will depend on how the researchers can articulate how differently the drug works in people to address a critical disease. But it will take time. ch.unni@livemint.com Source: Home - Livemint.com | 14 Mar 2010 | 1:45 pm Posco plans Rs 4,000-crore investment in MaharashtraKorean steel major Pohang Iron and Steel Company (Posco), the worlds fourth largest steel maker, will lay the foundation stone on Monday, March 15 for a Rs 4,000-crore steel processing plant in Maharashtra, underlining long-drawn delays over a greenfield steel manufacturing plant in Orissa.Source: Business Standard | Front Page Headlines | 14 Mar 2010 | 12:46 pm JLR to source 30% of parts from low-cost countriesTata Motors has put in place anaggressive cost reduction strategyfor its luxury brands Jaguar Land Rover (JLR), which it acquired from Ford in 2008, involving a substantial increase in sourcing vehicle parts from low-cost countries.Source: Business Standard | Front Page Headlines | 14 Mar 2010 | 12:44 pm Stalement in RBI, competition panel talks over bank M&AsBanking regulator Reserve Bank of Indias (RBI) attempts to keep anti-competitive practices watchdog Competition Commission of India (CCI) out of the merger and acquisition (M&A) business of banks seems to have hit a roadblock. The ministry of corporate affairs said it is not agreeable exempting the banking industry from the M&A norms that are expected to be put in place by CCI soon.Source: Business Standard | Front Page Headlines | 14 Mar 2010 | 12:43 pm M target firms may be asked to guide ShareholdersSebi panel may raise open offer trigger to 25%.Source: Business Standard | Front Page Headlines | 14 Mar 2010 | 12:40 pm 2 Russia projects remain in limboRussian Prime Minister Vladimar Putins latest visit to India will give birth to a slew of Indo-Russian business ventures. But two major joint ventures planned by Russian companies in Indias rich mineral sector remain just on paper, years after the signing of the cooperation agreements.Source: Business Standard | Front Page Headlines | 14 Mar 2010 | 11:18 am 87.37 mn new jobs likely by 2015: Assocham!The manufacturing sector is likely to generate 27.95 million jobs by 2015, according to a study.Source: Zee News : Business | 14 Mar 2010 | 6:57 am
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