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Telenor India offers calls at as low as 20 paise/minTelenor\'s Indian unit on Friday said it was launching a new \"dynamic pricing\" call plan under which mobile phone calls would cost as low as 20 paise (around 0.5 UScent) per minuteSource: Moneycontrol Top Headlines | 30 Apr 2010 | 7:43 am MFs plan to buy more stocksDomestic fund managers plan to further increase their exposure to equities in the next three months, with financials and capital goods topping their list of sector picks, a Reuters poll showedSource: Moneycontrol Top Headlines | 30 Apr 2010 | 7:43 am To acquire 3 biz in Nelco worth Rs 92cr: Crompton GreavesCrompton Greaves is set to acquire three businesses in Nelco for Rs 92 crore. In an interview with CNBCTV18, SM Trehan, Managing Director of the company, discusses it.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 7:33 am HCL Tech says in pact with Melbourne IT for IWS projectHCL Technologies Ltd has signed an agreement with Melbourne IT to support the latter\'s integrated web services (IWS) business transformation project.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 5:56 am See Parikh panel reco implementation in FY11: ONGCThe government is seriously considering all recommendation made by the Kirit Parikh Committee, believes ONGC chairman RS Sharma. Speaking to CNBCTV18, Sharma said he expects the recommendations to be implemented in FY11 itself.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 5:20 am Eurozone finmins to confer over Greece rescue - Reuters
Source: Business - Google News | 30 Apr 2010 | 3:56 am Sensex lacklustre realty auto IT pharma surge - Moneycontrol.com
Source: Business - Google News | 30 Apr 2010 | 3:53 am Jindal Steel Power to buy Oman`s Shadeed IronJindal Steel and Power is close to acquiring Omanbased Shadeed Iron Steel for nearly USD 500 million, Economic Times newspaper said quoting three persons with direct knowledge of the development.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 3:53 am Firstsource FY10 PAT up 343% at Rs 136.1 cr - Business Standard
Source: Business - Google News | 30 Apr 2010 | 3:40 am 'Essar Energy cuts London IPO price to 420 pence' - Livemint
Source: Business - Google News | 30 Apr 2010 | 3:35 am India, China to produce most multinationals: Report - Economic Times
Source: Business - Google News | 30 Apr 2010 | 3:29 am Wounded Nokia chief to face frustrated investorsHELSINKI (Reuters) - Nokia Chief Executive Olli-Pekka Kallasvuo faces a long list of grievances from shareholders next week as he fights to save his career.Source: Reuters: Money News | 30 Apr 2010 | 3:24 am Panacea sees income up by 18-20 pct in FY11MUMBAI (Reuters) - Panacea Biotec Ltd is expecting 18-20 percent growth in revenue during FY11, a top official said on Friday after the company received U.S. FDA approval for its drug formulation facility in Himachal Pradesh.Source: Reuters: Money News | 30 Apr 2010 | 3:24 am ICICI Bank's Sanjoy Chatterjee quits, R Sabharwal appointed ED - Economic Times
Source: Business - Google News | 30 Apr 2010 | 3:20 am Massive oil spill in Gulf of Mexico nears landfallHOUSTON (Reuters) - A massive oil spill in the Gulf of Mexico neared wildlife refuges and seafood grounds along the Louisiana coast on Friday, as efforts redoubled to avert what could become one of the worst U.S. ecological disasters.Source: Reuters: Money News | 30 Apr 2010 | 3:19 am Ashok Leyland Q4 net leaps, sees margin fall aheadTruck and bus maker Ashok Leyland said March quarter net profit more than quadrupled on higher sales, but warned of supply constraints and margin pressure in the future on higher raw material costs.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 3:18 am Gold hits 2010 high in dlr, record peak in Swiss francsLONDON (Reuters) - Gold prices hit 2010 highs in Europe on Friday as investors turned to the metal as a haven from sovereign risk in the euro zone, with a recovery in the euro and other commodities like oil adding to buying momentum.Source: Reuters: Money News | 30 Apr 2010 | 3:18 am White House Takes a Bigger Role in the Oil Spill Cleanup - New York Times
Source: Business - Google News | 30 Apr 2010 | 3:17 am Samsung Elec plans $17 bn chip spendingSamsung Electronics Co Ltd, the world\'s top maker of memory chips and flat screen TVs, plans to invest 19.3 trillion won (USD 17.31 billion) in semiconductors until 2011, a local newspaper said on Friday.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 3:16 am India, China to produce most multinationals: PwCMumbai: Indian and Chinese firms, seeking resources and new overseas markets as they expand, will lead a host of new multinational firms from emerging economies over the next 15 years, according to PricewaterhouseCoopers. The number of companies from emerging markets that have set up operations overseas has increased over the last five years as their economies expanded, and with the easing of trade barriers, enabling them to outpace sluggish developed markets, it said. “This is further evidence that companies from emerging markets will play an important role in the post-recession global economy,” said Jairaj Purandare, PWC’s India leader for markets and industries. The report counted 613 new multinational companies from 15 key emerging economies in the year 2008, up from 352 in 2005. China, with its increasing economic clout, had the most MNCs. Russia, south-east Asia and Korea also added multinationals in large numbers and will continue to do so, the report said. “Size matters; the countries with the largest economies in the sample, China, India and Korea ... also produced the most new multinationals,” Purandare said, adding that trade openness also matters, with Singapore and Malaysia outpacing Brazil and Russia. Indian companies including automakers such as Tata Motors and Mahindra and Mahindra, as well as Tata Tea have entered overseas markets through a series of big-ticket acquisitions in recent years. More than 2,200 Indian companies are expected to open operations overseas over the next 15 years, overtaking China because of easing foreign investment rules, Purandare said. “The key drivers are the relative increase in investment intensity and the openness the Indian economy offers,” he said. While some recent deals, including mobile operator Bharti Airtel’s with South Africa’s MTN have been in other emerging markets, there will be a shift away from this trend, with firms favouring developed markets, Purandare said. And, despite the current race for oil and mining assets, more firms will operate in high-value manufacturing and services. China and India will still account for 42% of the new multinationals over the next 15 years, perhaps because of the projected fast pace of economic growth for both, with India overtaking China in producing multinationals from 2018, he said. “The reason that India edges out China, despite slower forecast growth, is its likely relative increase in both investment intensity and openness, which (we) have found to be key drivers of the creation of new multinationals,” he said. By contrast, China’s current level of investment intensity is unlikely to be sustainable in the long term, he said, with domestic demand also expected to help hold down trade openness. Source: Home - Livemint.com | 30 Apr 2010 | 3:15 am Info Edge sees more than 20 pct sales growth in FY11NEW DELHI (Reuters) - Info Edge (India), owner of jobs-classifieds site naukri.com on Friday said it expected a sales growth of more than 20 percent in 2010/11.Source: Reuters: Money News | 30 Apr 2010 | 3:10 am March industrial output seen up around 15 pct y/y: secyNEW DELHI (Reuters) - India's industrial output in March is expected to maintain around 15 percent year-on-year growth, industry secretary R.P. Singh said on Friday.Source: Reuters: Money News | 30 Apr 2010 | 3:02 am Govt blocking Chinese-made telecom gear - reportNEW DELHI (Reuters) - The government is blocking the purchase of telecoms equipment from Chinese vendors on national security grounds, the Financial Times reported on Friday.Source: Reuters: Money News | 30 Apr 2010 | 2:58 am India blocking Chinese-made telecom gear - report - Reuters
Source: Business - Google News | 30 Apr 2010 | 2:57 am Samsung Q1 net profit surges to record highSeoul: Samsung Electronics said net profit surged more than six-fold in the first quarter to a record high on strong demand and higher prices for memory chips as well as increased sales of mobile phones and flat screen televisions. Samsung earned 3.99 trillion won ($3.59 billion) in the three months ended 31 March, the company said on Friday. It recorded net profit of 582 billion won the year before. The latest figure was an all-time high for the company, said spokesman Jason Kim, surpassing 3.81 trillion won in the third quarter of last year. The company also said sales in the first quarter totaled 34.64 trillion won. That was 20.8% higher than the 28.67 trillion won reported a year earlier. Samsung Electronics Co. is a major force in the global technology industry, ranking as the largest manufacturer of computer memory chips, flat screen televisions and liquid crystal displays. It also stands No. 2 globally in mobile phones behind Finland’s Nokia Corp. Samsung said in a release that sales in its semiconductor business jumped 57% to 8.2 trillion won in the first quarter. The company said tight supply and strong demand caused prices for DRAM, or dynamic random access memory, chips to rise. DRAM are used mostly in personal computers. The company also cited steady demand for NAND flash memory chips in line with consumer purchases of smart phones and mobile application products. NAND are used in devices such as digital cameras, music players and smart phones. “Strong demand for mobile products continued despite weak seasonality,” Samsung said in presentation materials for investors. In mobile phones, Samsung sold 64.3 million of the devices in the first quarter, up 40% from the year before. It predicted demand will increase in the current second quarter in line with the global economic recovery. The company also sold 8.4 million flat screen TVs in the first quarter, an increase of 47% from the year before. Samsung said it expects demand to grow 34% in the second quarter. “In the TV business, we launched aggressive marketing activities focusing on 3D TV as well as LED TV,” Robert Yi, Samsung’s head of investor relations, told analysts on a conference call. “As a result, our shipment and profit margin improved significantly year on year.” Investors cheered the results, sending Samsung shares 2.9% higher to close at 849,000 won. Samsung’s stock price, which surged 77% in 2009, hit a record high of 870,000 won on 5 April this year. Source: Home - Livemint.com | 30 Apr 2010 | 2:52 am ‘Essar Energy cuts London IPO price to 420 pence’Mumbai: Essar Energy has lowered the price for its London IPO to 420 pence per share, sources familiar with the matter said on Friday, below the targeted range of 450-550 pence. The company, which had planned to raise up to $2.5 billion, has sent a term sheet to investors with the new price, one of the sources said. The number of shares to be sold in the deal was yet to be determined. An Essar spokesman declined to comment. The IPO was fully covered within the indicated range, with most bids coming in at the lower end of the band, sources familiar with the matter had told Reuters earlier. All of the sources declined to be identified as the information was not yet public. The deal was being priced in a difficult week for markets globally, with investors skittish after Greece’s sovereign debt rating was downgraded. Essar Group, controlled by billionaire brothers Shashi and Ravi Ruia, plans to sell a 20-25% stake in Essar Energy and will use the proceeds to fund projects including the acquisition of coal mines and the development and exploration of oil and gas blocks, the company said earlier this month. The group’s energy and power operations, including four existing plants with a total installed capacity of 1,220 megawatts, will have a market capitalisation of about $8.5 billion upon listing, the sources said on Friday. The company was previously expected to have a market value of $9.5 billion to $11 billion. A rush of energy IPOs in India from firms such as JSW Energy, Oil India, NHPC and Indiabulls Power in recent months, and more in the pipeline, has crowded the market, prompting Essar to look overseas. A London listing also gives Essar access to a much deeper investor base, sources close to the deal have told Reuters. Source: Home - Livemint.com | 30 Apr 2010 | 2:51 am To invest Rs 700750cr in JV with Bupa: Max IndiaMax India, healthcare major and Bupa, UKbased healthcare company, on April 28 launched Max Bupa health insurance, a standalone health insurance company with an initial capital investment of Rs 150 crore. While Max India holds 74% stake in the company, Bupa would hold 26% in the joint venture (JV).Source: Moneycontrol Top Headlines | 30 Apr 2010 | 2:47 am India, China to produce most multinationals - reportMUMBAI (Reuters) - Indian and Chinese firms, seeking resources and new overseas markets as they expand, will lead a host of new multinational firms from emerging economies over the next 15 years, according to PricewaterhouseCoopers.Source: Reuters: Money News | 30 Apr 2010 | 2:31 am Sebi moves SC over ULIP; notices issued to Centre, 14 insurersThe Supreme Court today issued notices to the Centre and 14 life insurers on a petition by market regulator Sebi seeking transfer of cases from High Courts relating to Unit Linked Insurance Products (ULIPs).Source: India Business News | Business News - Times of India | 30 Apr 2010 | 2:23 am Gold demand tepid, traders at bay for 3rd dayMumbai: India gold demand remained slack for a third session on Friday as prices traded near their four-month high, dealers said. “Demand is not much as prices are very high, it was slack yesterday as well. People are waiting for $1,160 (an ounce),” said a dealer with a state-run bank in Mumbai. International gold, which guides the domestic market, was trading $1,171.85/1,172.85 an ounce against its previous close of $1,166.10/1,168.10 an ounce, after hitting an intra-day high of $1,175.4, a level last seen in early December. Gold rose in Europe as dollar weakness and a recovery in the price of other commodities added to safe-haven buying linked to concern over the euro zone’s fiscal health. However a firm rupee, which makes the dollar-quoted asset cheaper, helped sentiment, dealers said. The Indian rupee strengthened as early gains in domestic shares and firm regional peers cheered sentiment, but a further upside was capped by month-end dollar demand from refiners and importers. Source: Home - Livemint.com | 30 Apr 2010 | 2:21 am Samsung's smartphone hurdle could put brake on profitsSEOUL (Reuters) - How long can Samsung Electronics' dream run last? Investors in Samsung might overlook that question as the South Korean company repeatedly beats estimates as sales from its mainstay businesses boom in a global economic recovery.Source: Reuters: Money News | 30 Apr 2010 | 2:02 am Spanco, GTL highest bidders for Maharashtra circlesSpanco Ltd and GTL Ltd have emerged as the highest bidders to distribute power in two cities of Maharashtra, officials said, outbidding a host of other established players.Source: Moneycontrol Top Headlines | 30 Apr 2010 | 1:49 am Fund managers plan to buy more stocks: pollNew Delhi: Domestic money managers plan to further increase their exposure to equities in the next three months, with financials and capital goods topping their list of sector picks, a Reuters poll showed. All nine respondents to the Reuters Asset Allocation Poll conducted between 20 April and 29 April said Indian equities are fairly valued at current levels, while five said they would buy stocks and reduce their cash holdings “The liquidity situation is pretty good and the FII flow continues to remain robust,” said Jayesh Shroff, fund manager at SBI Mutual Fund. “The second call I’m taking is that monsoon will be normal. With normal monsoon, economy can see a significant pick-up.” The benchmark index climbed above 18,000 points earlier this month, for first time since Feb 2008, largely on foreign fund buying, although recent global worries on Greece and fear of a contagion have eaten into some of the gains. Foreign funds have invested a net of $6.3 billion in Indian stocks in 2010, after pumping in a record $17.5 billion in 2009. Global factors have “more of a sentimental impact on India rather than fundamental,” said Sanjay Sinha, chief executive at L&T Mutual Fund. Five of the nine fund managers see the stock market rising further in the next three months, with two of them predicting gains in excess of 5%. However, two respondents see the Indian market falling more than 5%. None of the respondents plan to increase their exposure to small-cap stocks, but five managers said they would increase mid-cap holdings while four favour raising their bets on large-caps in their portfolios. Financials, capital goods favourite Financial services, the top bet of fund managers since August 2008, will continue to be on the radar, with seven out of nine managers looking at increasing their investments as two of the top three banks have announced forecast-beating earnings. “The results that have come out from especially private sector banks so far have shown that the concern on asset quality is not as much translating into actual NPAs as it was feared to be,” Shroff said. Bank credit in India grew an annual 17.05% in early April, according to the Reserve Bank’s provisional data, and analysts expect loan demand to pick up further in the first half of 2010-11. Indian banks trade at 12 times their one year-forward price to earnings ratio, according to data from Thomson Reuters StarMine which accords a higher weightage to analysts with a better track record of predicting earnings. That compares with 14.7 times for local shares. Engineering and construction stocks will also be favoured by managers, as the 11th five-year plan backlog would accelerate spending in these sectors, experts said. Six fund managers said they would increase their bets in engineering and five said they will look at investing more in construction companies. Money managers may also eye technology stocks in the next three months, the poll showed, with five of the nine respondents looking at increasing their exposure to the sector. Leading IT firms like Tata Consultancy Services beat profit estimates, whereas Infosys met profit forecasts when they declared their quarterly earnings earlier this month. Some bond funds may increase their portfolio maturity in the next three months, while balanced funds would look at reducing their cash exposure, the poll showed. Source: Home - Livemint.com | 30 Apr 2010 | 1:11 am Corrected story | Sebi moves apex court - Livemint
Source: Business - Google News | 30 Apr 2010 | 1:07 am Corrected story | Sebi moves apex courtNew Delhi: The Securities and Exchange Board of India (Sebi) has independently moved the Supreme Court through a transfer petition asking the court to settle its dispute with insurance regulator, Insurance Regulatory and Development Authority (Irda), over jurisdiction. Sebi’s petition sought the transfer of two pending cases before the Allahabad and Bombay high courts, which had named the insurance regulator and the Union government among the respondents. Sebi’s move precluded the need to approach the judiciary jointly with Irda, as envisaged in the temporary truce hammered out by the finance ministry that had stepped in to sort out the dispute between the two regulators over jurisdiction over (Unit-linked insurance plans) Ulips, a hybrid product sold by insurers. The matter is to come up for hearing on Friday and the court will either provide immediate relief or seek a detailed hearing, wherein status quo will prevail. This will be the first instance in which the court will intervene in a dispute between two regulators. Mint had reported on 23 April that the legal battle between Sebi and Irda over the regulation of Ulips is set to be fought in the country’s highest court. In its petition, Sebi has argued that since different high courts across the country could rule differently in the cases, it made sense for the regulators to escalate matters to the apex court. Accordingly, it has requested the apex court to pass appropriate orders restraining the high courts from entertaining any cases over the regulation of Ulips. The long-festering controversy erupted after Sebi directed that insurers selling Ulips will have to be registered with it and sought to act against 14 insurers for issuing Ulips. Irda reacted adversely and claimed that since the hybrid product included insurance, it had jurisdiction over it and the insurer; the regulator then issued a statement challenging the Sebi order. After the finance ministry brokered peace, Sebi issued another order saying that the registration condition would apply only for the sale of new Ulip schemes. Ulips are hybrid products that comprise investments in both debt and equity and life insurance cover. The existing law permits insurers to pay commissions of up to 40% to their agents for selling Ulips, motivating insurance agents to aggressively sell Ulips. In fact, Ulips account for up to 90% of the new business premium for some of the private sector life insurers. The Sebi move comes at a time when its efforts to jointly move the courts with Irda was not making headway. While Sebi believes the existing civil code does not permit a joint permission before a high court, Irda argues otherwise. Advised by its legal counsel, Sebi chairman C.B. Bhave on Wednesday wrote to Irda saying the plan to jointly move a high court to settle the dispute was not legally feasible as under Section 90 of the Civil Procedure Code, regulators cannot do so. This section deals with special proceedings if any particular law or regulatory decision affects the public at large. The capital markets regulator had sought the views of the attorney general, the highest law officer of the country, on this. Irda has not yet formally responded, but seems to be disputing the Sebi claim. A senior Irda official, who did not want to be identified, said: “There is still a valid case of filing a joint application with a high court, according to our legal counsel.” “If that’s the case, why hasn’t Irda shared with us its legal counsel’s opinion?” asked a Sebi official, who, like the Irda executive, did not want to be identified. Meanwhile, Irda chairman J. Harinarayan said in Hyderabad: “Sebi has written a letter to us that, according to their legal counsel, the joint application is not valid in this (Ulip) case under Section 90 of Civil Procedure Court.” Even as the Sebi-Irda disagreements continued, on 13 April, Mumbai-based investor Rajendra Thacker filed a public interest litigation (PIL) in the Bombay high court over the Irda-Sebi spat. The PIL seeks the reversal of the Sebi ban on the sale of Ulips. The PIL has been filed on the ground that several hundred thousand investors were suffering from anxiety and uncertainty about their investments due to the Sebi order. On the same day, finance minister Pranab Mukherjee brokered a temporary truce between the two regulators, asking them to maintain status quo and approach the courts. A day later, Sebi said its ban on the sale of new Ulips remained. Dhruv Kumar, a lawyer and former insurance professional, filed a second PIL in the Allahabad high court against Irda, seeking Sebi’s intervention and regulation of Ulips. Anirudh Laskar in Mumbai and PTI contributed to this story. Source: Home - Livemint.com | 30 Apr 2010 | 12:29 am Markets rise 0.5% led by financial stocksMumbai: Indian shares were trading up 0.5% on Friday, putting them on course to notch their third monthly rise in a row on the back of rising foreign portfolio investment. Financial stocks led the rise on expectations the world’s fastest growing major economy after China will boost demand for loans and rising incomes will slow down consumer defaults. Foreign funds have pumped a net $6.3 billion into Indian stocks in 2010, mostly since the start of March, riding forecast for 8.5% economic expansion in the fiscal year 2010-11 that started on 1 April. Investor confidence was also underpinned by stronger world markets that were driven by hopes the European Union will agree a bailout for debt-stricken Greece. By 10:59am, the 30-share BSE index was trading up 0.52% at 17,595.26 points, with 24 components advancing. If the gain is maintained till close, the benchmark will eke out a rise for April. The index had risen 0.4% in February and 6.7% in March. The benchmark had jumped 81% in 2009, boosted by foreign fund investments of a record $17.5 billion. Traders said pricey stocks and concerns the debt problems in the euro zone may dampen foreign risk appetite temporarily were limiting the market’s rise. “So far, so good,” said Naresh Kumar Garg, CEO of Sahara Mutual Fund, referring to the quarterly earnings. “But cost pressures have started showing up. I am worried that could be the case for the June quarter too.” Two initial public offerings -- state-run utility Satluj Jal Vidyut Nigam and road builder Jaypee Infratech -- to raise a combined $770 million saw most bids coming towards the low end of their respective price ranges as they kicked-off book-building on Thursday. Top lender State Bank of India rose 1.3%, while rivals ICICI Bank and HDFC Bank climbed 1.2% and 0.6% respectively. Mortgage lender Housing Development Finance Corp, whose board is set to consider a stock split on Monday, was up nearly 0.4%. Reliance Industries, which has the highest weight on the Sensex, climbed 0.1% to Rs1,035.20. The Economic Times reported the energy major plans to sell gas to retail consumers in the United States. Non-ferrous metals maker Sterlite Industries climbed 0.6% as copper prices rose in London. In the broader market, gainers were more than double the number of losers on volume of 156 million shares. The 50-share NSE index was up 0.5% at 5,278.25. Source: Home - Livemint.com | 30 Apr 2010 | 12:02 am Barclays profits jump 29% in Q1London: British bank Barclays announced Friday that its net profit soared 29% in the first quarter of 2010, boosted by falling bad debts and signs of economic recovery. Net earnings rose to £1.07 billion ($1.64 billion) in the three months to March from £826 million in the same period of 2009, Barclays said. Pre-tax profit jumped 47% to £1.82 billion, with revenues up four percent to £8.07 billion. Impairment charges and other credit provisions tumbled 35% to £1.51 billion. “I am pleased with the strong growth in profits which we have delivered this quarter,” chief executive John Varley said. “Diversification of our business and risk, and good underlying performance, have combined to produce this result,” he said. “The improvement that we have seen in impairment (levels) reflects the signs of economic recovery now evident in many of the markets in which we operate.” Source: Home - Livemint.com | 30 Apr 2010 | 12:02 am Food inflation inches down on base effectThe annual food price inflation, based on the wholesale price index (WPI), rose 16.61 per cent during the week ended April 17, slower than an annual rise of 17.65 per cent in the previous week, mainly on lower inflation in vegetables such asSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am NSE defers gold ETF futures on regulatory wrangleNSE has deferred its decision to introduce futures and options (F&O) trading in Gold ETF from Friday after the commodity market regulator Forward Markets Commission (FMC) raised an objection over regulatorySource: Business Line - Home Page | 30 Apr 2010 | 12:00 am Day Trading GuideDLF is experiencing selling interest at higher levels. Utilise rallies to sell the stock with stop at RsSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am Rs 363-cr relief package for small coffee growersIn a move that is expected to benefit small growers, the Union Finance Minister announced a Rs 363-crore debt relief package for the coffee sector in New Delhi on Thursday. The Centre and banks will bear the burden in the ratio ofSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am Rlys' assured transit time service comes a cropperContainer train operators have refused to bite the Railway Ministry's bait of paying higher rates for the “assured transit time” (ATT)Source: Business Line - Home Page | 30 Apr 2010 | 12:00 am UltraTech buys Dubai co ETA Star CementUltraTech Cement, an Aditya Birla group company, has reported a 26 per cent drop in net profit at Rs 229 crore (Rs 309 crore) in the fourth quarter ended March 31. This is largely due to lower sales realisation in the southern region where it hasSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am Ucal Fuel Systems (Rs 81.9): BuyInvestors with a short-term trading perspective can consider buying the stock of Ucal Fuel Systems. The down-trend from the January peak of Rs 110 halted at Rs 64 after the stock retraced 50 per cent of the previous up-move. A steady short-termSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am SEBI seeks to move all ULIP cases to Supreme CourtSEBI has approached the Supreme Court seeking transfer of all public interest litigations filed against its order on ULIPs in different courts to the Apex Court.Source: Business Line - Home Page | 30 Apr 2010 | 12:00 am Pranab hands out tax concessions to India IncThe Finance Minister, Mr Pranab Mukherjee, today made a number of amendments to the Finance Bill including raising the export duty on iron ore lumps and increasing the standard rate on raw cottonSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am ArcelorMittal steels itself for soaring costsSteel major ArcelorMittal is in discussions with customers on about how it can pass on some of the huge increase in raw material costs it is expecting, starting in the current quarter, as iron ore producers transition to a new pricingSource: Business Line - Home Page | 30 Apr 2010 | 12:00 am Rupee gains on firm shares, dollar weaknessMumbai: The Indian rupee strengthened on Friday as early gains in domestic shares and firm regional peers cheered sentiment, but a further upside was capped by month-end dollar demand from refiners and importers. At 11:30am, the partially convertible rupee was at Rs44.44/45 per dollar, 0.2% stronger than Rs44.5150/5250 at close on Thursday. On Wednesday, the unit hit an intra-day low of Rs44.7650, its lowest since 5 April. “The rupee has been pretty volatile lately but overall bullishness continues. Equities too are positive and there are conflicting signals in terms of Greece,” said Naveen Raghuvanshi, an associate vice president with Development Credit Bank. “44.70 is a good resistance for the dollar in the near-term, so unless another major global shock comes up, we should hold in a range of 44.10-44.70. If the Greece bailout happens, then we could be at around 44.10 levels by end of next week.” Investors remained uneasy about the outlook for Greece even as the debt-stricken country took steps to secure an aid package. Moody’s Investors Service could become the second major rating agency to downgrade Greece’s ratings to “junk” status in the next few days, an analyst with the firm said on Thursday. Dealers said there was some month-end demand in the market which was limiting the rupee’s upside. Oil is India’s biggest import and refiners are the largest buyers of dollars in the local currency market with their demand tending to peak at the end of each month when they are required to make payments for their imports. Most Asian currencies rose versus the dollar. The index of the dollar against six major currencies was down 0.1%. The euro extended gains on Friday, as hopes of a quick Greek rescue package spurred investors to cover short positions, while the Australian dollar rallied on growing talk of an interest rate hike next week. Indian shares were on track to post their third straight monthly gain and were trading up 0.7% mirroring the rise in global stocks, with financials leading gains. Foreign fund inflows into the domestic share market have reached $6.3 billion so far in 2010, on top of the record $17.5 billion inflows logged in 2009. These inflows have helped the rupee rise 4.4% so far this year. One-month offshore non-deliverable forward contracts were quoting at 44.51, 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 quoted at 44.5375, with the total traded volume on the two exchanges at about $1.9 billion. Source: Home - Livemint.com | 29 Apr 2010 | 11:47 pm Citi hires Goldman banker to head China private bankingSingapore: Citigroup has hired a Goldman Sachs banker to head its China private banking business in another sign of cut-throat competition for private banking talent in Asia. UBS and Citigroup, the two leaders of Asia’s wealth management business, are facing intense competition from boutiques and Asia-focused players. But the two are trying to raise their game by hiring experienced bankers and the latest move shows Citi more keen on serving the super rich as Goldman focuses on such clients. Citigroup’s private bank in Asia, which is led by Aamir Rahim, said the hiring underscores its moves to build and grow its offshore China private banking business, according to an internal memo seen by Reuters. Citi’s private bank, which handles clients who have at least $10 million in assets, manages its private banking for China offshore. In China it serves affluent clients through the consumer bank. The note said China’s rapid economic growth has created significant private wealth and it sees exciting business opportunities in helping mainland Chinese entrepreneurs manage their offshore assets. China’s population of millionaires surpassed that of the United Kingdom in 2008, according to Merrill Lynch-Capgemini’s Asia-Pacific Wealth Report in 2009. It had 364,000 millionaires at the end of 2008 with wealth of $1.7 trillion. The global financial crisis saw the wealth of its millionaires decline by 20.7% in 2008, according to the report. Hitsch, an executive director at Goldman, was a senior member of the private wealth management team that covered clients in China, according to a source with knowledge of the move. Harvey Lee, a managing director, heads Goldman’s private wealth management China business. Hitsch, who gained a doctorate in forestry in his home country of Austria and has MBA from New York University, is a fluent Mandarin speaker. He a permanent resident of Hong Kong. Goldman Sachs declined to comment. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 11:35 pm Clarification by Mint editor R Sukumar on Sebi-Irda storyMint carried a story on the ongoing Sebi-Irda spat referring to several demands made by the stock market regulator of the Supreme Court. It emerges that these demands were merely a summation of the demands made in two public interest litigations filed in Allahabad and Mumbai and Sebi’s main petition to the court involved a transfer of these cases to the apex court. As such, inferences made by the Mint story regarding Sebi’s new harder stance were incorrect and stemmed from an incorrect reading of the Sebi petition. We apologise for this error. The story on Mint’s website has been taken down and a new one with the corrections will be posted soon. Mint is also sending out a release to some wire agencies and TV stations that may have carried the story. —R. Sukumar Source: Home - Livemint.com | 29 Apr 2010 | 11:27 pm Yamaha aims double digit market share in current fiscalTwo wheeler manufacturer India Yamaha Motor, 100% subsidiary of Japan's Yamaha Motor Corporation, aims to achieve a double digit market share in the current financial year, according to a company official.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 11:22 pm HCL Infosystems Q3 net up 3%IT firm HCL Infosystems on Friday said its consolidated net profit rose by 3.44% to Rs 60 crore for the quarter ended March 31, 2010, over the same period last year.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 11:02 pm Asian markets rally as Greek bailout nearsHong Kong: Asian stocks rallied on Friday at the end of a tough week, with sentiment boosted by hopes that a bailout for debt-laden Greece is in sight. The news also lifted the euro from its one-year lows, sending the yen down to the benefit of Japanese exporters. Greek Prime Minister George Papandreou, warning that Greece was in “a battle for survival”, said it would complete talks on getting tens of billions of euros from the European Union and International Monetary Fund “in coming days”. “We will do whatever it takes to save the country,” he said. Tokyo shares were 1.35% higher by the break, Hong Kong up 1.30% and Singapore advanced 0.68%. Investors followed a rally on Wall Street, where the Dow rose 1.10% on the news out of Europe. Athens has called on the EU and IMF to activate a three-year rescue package worth €45 billion this year as it faces a 19 May deadline to repay €9 billion in old debts. If it misses this date the country will default, which would have a devastating effect on the economy and could ripple across the entire 16-nation eurozone. The euro, which had hit a year low of 1.3202 dollars on Wednesday, bought $1.3242 in quiet Tokyo morning trade, compared with $1.3244 in New York late Thursday. It was also trading at ¥124.59 against 124.46. The dollar was trading at ¥94.07 in line with New York levels. Concerns over Greece’s fiscal health and that of the eurozone hammered markets earlier in the week after the country’s sovereign debt rating was downgraded to “junk” by Standard & Poor’s. The US credit risk appraiser also downgraded two other eurozone members, Spain and Portugal, stoking speculation that the crisis was becoming contagious and rocking global markets. Greece has been crippled by demonstrations and faces general strikes as the bailout nears completion due to the harsh conditions many believe will be imposed on ordinary people. Seoul’s stock market was 0.86% higher after electronics giant Samsung announced net profit surged more than six-fold year-on-year to $3.6 billion in the first quarter. The company, the world’s largest maker of computer memory chips and flat-screen televisions, said sales were boosted by stronger demand and higher memory chip prices. Sydney rose 0.6% following a positive earnings report from Australia’s largest investment bank Macquarie. Shares in Macquarie Group surged 4.18% to 50.37 Australian dollars, after it said full-year profit was up 21% due to improved market conditions. However, Shanghai was 0.67% lower on concerns the Chinese government will introduce further measures to rein in property prices during the three-day May Day holiday. Tokyo was unmoved by economic data showing Japanese unemployment rose to 5% in March from 4.9% the previous month, while industrial output grew 0.3% year-on-year following a fall in February. Markets were looking ahead to the announcement of first-quarter US gross domestic product figures later Friday, while US jobs data for April are to be released on 7 May. Oil was higher with New York’s main contract, light sweet crude for delivery in June, up 29 cents to $85.46 a barrel. Brent North Sea crude for June rose seven cents to $86.97. Gold opened at $1,172.40-$1,173.40 an ounce in Hong Kong, up from Thursday’s close of $1,167.50-$1,168.50. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 11:00 pm Patni: Both demand, supply sides face headwinds - Economic Times
Source: Business - Google News | 29 Apr 2010 | 10:59 pm Samsung 1Q net profit surges to record highSamsung Electronics said net profit surged more than six-fold in the first quarter to a record high on strong demand and higher prices for memory chips as well as increased sales of mobile phones and flat screen televisions.Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 10:58 pm Aims to achieve double-digit market share in current fiscalTwo-wheeler manufacturers India Yamaha Motor, 100 per cent subsidiary of Japan's Yamaha Motor Corporation, has aimed to achieve a double-digit market share in the current financial year, according to a company official. Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 10:55 pm US economy likely grew 3.4% in Q1Washington: US economic growth probably slowed in the first quarter, data is expected to show on Friday, but resurgent consumer spending should offer evidence of a sustainable recovery. The economy expanded at a 3.4% annual rate in the first three months of the year, economists polled by Reuters believe. That would mark a slowdown from the 5.6% pace logged in the fourth quarter when the economy got a big lift as businesses curbed efforts to cut inventories. The advance report on US gross domestic product from the commerce department due at 8:30 am (1230 GMT) should mark three straight quarters of growth as the economy digs out of its worst recession since the Great Depression. GDP measures total goods and services output within US borders. Though the economy took a step back from its brisk pace in late 2009, Friday’s report should show areas such as consumer and business spending proved more robust in the first quarter, analysts said. The bulk of the growth in the fourth quarter came as businesses met more demand with new production and less by selling off goods sitting on the shelf. Inventories are expected to play a lesser role in the first quarter, when consumers are seen taking up the baton. “The key thing for sustaining and growing the US economy is consumer spending. Everything we know about the first quarter is looking very strong in that area,” said Kurt Karl, head of economic research at Swiss Re in New York. Data that has already come in on consumer spending has been robust. Analysts expect consumer spending during the quarter grew at a rate anywhere between 3.2% and 4%. Consumer spending, which normally accounts for about 70% of US economic activity, grew only at a 1.6% pace in the fourth quarter. There have been worries the US recovery, which has been led by the manufacturing sector as businesses begin to rebuild inventories, could sputter if consumers did not come on board. These concerns are beginning to take a back seat. Handoff To Consumers “There is growing evidence of a handoff from stimulus and inventory-driven growth to broader sources of demand, although we still look for overall moderate growth,” said Julia Coronado, an economist at BNP Paribas in New York. The US Federal Reserve on Wednesday noted economic activity had continued to strengthen in recent week and the labor market was starting to improve. However, saying it sill expects a modest recovery, it left benchmark overnight lending rates near zero and renewed its vow to keep them low for an extended period. While inventories will still contribute to first quarter growth, it will be far less than the 3.8% percentage points of US growth it accounted for in the fourth quarter. Excluding inventories, the economy is expected to have expanded at a 2.1% rate, up from 1.7% in the fourth quarter. Boding well for the recovery is business spending on software and equipment, which is expected to have continued its upward trend in the January-March period. “If they are spending on equipment already, it shows a lot of confidence for the future hiring which supports consumer spending. If we continue to have employment growth, we will have a good year,” said Swiss Re’s Karl. Last month the economy enjoyed the strongest jobs growth in three years as private employers stepped up hiring. Investment in new homes, which showed some hesitancy early this month, is expected to be a drag on growth in the first quarter — after two quarters of gains. Spending on structures likely subtracted from GDP for a seventh straight quarter. With some of the rise in domestic demand being met through imports, a wider trade deficit will chip at growth in the first quarter. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 10:38 pm Rupee gains 7 paise against dollar in early tradeThe Indian rupee appreciated by 7 paise to 44.44 a dollar in early trade today on the back of continued capital inflows by foreign funds into equities and the US currency's weakness against other Asian units.Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 10:35 pm Sensex surges 128 points in opening trade on funds buyingThe 30-share index, which rallied by 123.39 points in the previous session, gathered another 128.38 points, or 0.73% at 17,631.85 points in opening trade.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 10:34 pm Rupee gains 7 paise against dollar in early tradeThe Indian rupee appreciated by 7 paise to 44.44 a dollar in early trade on Friday on the back of continued capital inflows by foreign funds into equities and the US currency's weakness against other Asian units.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 10:27 pm Reliance plans to sell gas in US market - reportReliance Industries Ltd plans to sell gas to retail consumers in the United States, the Economic Times reported on Friday, giving the Indian energy major a foothold in the world's biggest market.Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 10:26 pm Sensex up 0.48 per cent in early tradeA benchmark index for Indian equities on Friday was ruling 0.48 per cent higher than its previous close during opening trade.Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 10:12 pm Apparel company says Nike infringes Milkcrate markThe Nike footwear uses the words 'milk crate' and designs based on milk crate grids that could 'cause confusion and deceive customers' and dilute the value of Milkcrate's trademark.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 10:11 pm Sensex up 0.48% in early tradeA benchmark index for Indian equities on Friday was ruling 0.48% higher than its previous close during opening trade.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 10:09 pm Wall Street rallies on earnings, Greece aid hopesNew York: US stocks chalked up their best day in nearly two months on Thursday as investors welcomed a string of robust earnings reports, while Greece appeared close to a bailout deal, easing fears about a wider sovereign debt crisis. News that Greece was readying severe austerity measures to secure a multibillion-euro aid package spurred widespread relief, and the more beaten-down sectors, like banks, recouped recent losses for a second day running. Continuing the generally favorable earnings season, cellphone maker Motorola Inc beat forecasts and its stock gained 3.5% to $7.16. Visa Inc, reported higher-than-expected profits and raised its revenue outlook, spurring hopes of a revival in consumer spending. “There is a continuation of this tug of war between the negative bias put into the market by sovereign debt worries out of Europe,” said Craig Peckham, equity trading strategist at Jefferies & Company in New York. “Right now, the US corporate fundamental story is winning the battle.” The S&P 500’s percentage gain marked its largest daily advance in nearly two months. After spiking sharply this week, the CBOE volatility index, Wall Street’s index of choice for gauging market volatility, fell 12.5% -- its steepest drop in 14 months. The Dow Jones industrial average gained 122.05 points, or 1.10%, to 11,167.32. The Standard & Poor’s 500 Index rose 15.42 points, or 1.29%, to 1,206.78. The Nasdaq Composite Index added 40.19 points, or 1.63%, to 2,511.92. The Dow and the S&P 500 posted their biggest one-day gains since 5 March while the Nasdaq rose the most since 4 January. Bank of America rose 2.9% to $18.30, while the KBW bank index rose 2.4%. Visa’s stock slid 0.8% to $92.82 after hitting an all-time high at $97.14 on Monday. In a sign the mood was still cautious, the Dow and the S&P 500 came off session highs after ratings agency Moody’s said a multi-notch credit downgrade for Greece is likely. S&P cut its debt ratings of Greece and Portugal on Tuesday, sparking a sharp sell-off in equities. Boosting the Nasdaq, Palm Inc surged 26.1% to $5.84 after Hewlett-Packard Co agreed to buy the smartphone maker for $1.2 billion. HP slipped 0.8% to $52.88. In the health sector, Aetna Inc reported better-than-expected quarterly profit and raised its forecast. The health insurer’s stock rose 2.4% to $31.24, and the Morgan Stanley Healthcare Payors index .HM0 rose 2.7%. Higher oil prices during the quarter boosted profits for Exxon Mobil Corp and ConocoPhillips, though Exxon said its earnings were hurt by the health reform legislation. Exxon’s stock slid 0.8% to $68.66, but shares of ConocoPhillips gained 0.9% to $59.10. But the energy sector’s gains were limited by fallout from the sunken Deepwater Horizon rig and the oil leak that followed in the Gulf of Mexico. Shares of oilfield services companies Cameron International Corp and Halliburton Co tumbled on fears about their ties to the rig, owned by Transocean Ltd and contracted out to BP Plc. Cameron International fell 13% to $38.70, Halliburton lost 5.3% to $31.60, while BP’s New York-traded stock lost 8.3% to $52.56. Transocean fell 7.5% to $78.51 in New York. In a sign more investors are starting to warm to equities, US fund managers increased their already heavy investment in stocks in April and decreased bond allocations, a Reuters poll showed. Initial claims for unemployment benefits fell slightly less than expected in the latest week, the government said, but the numbers were less than the previous week. About 10.67 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, above last year’s estimated daily average of 9.65 billion. Advancing stocks outnumbered declining ones on the NYSE by a ratio of 3 to 1, while on the Nasdaq, nearly three stocks rose for every one that fell. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 9:25 pm US starts criminal probe into Goldman tradingA spokesperson for the office of the Manhattan US Attorney said she could "neither confirm nor deny" any Goldman investigation.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 9:19 pm U.S. starts criminal probe into Goldman trading - reportNEW YORK (Reuters) - U.S. federal prosecutors are conducting a criminal probe into whether Goldman Sachs Group Inc or its employees committed securities fraud in connection with its mortgage trading, the Wall Street Journal reported on its website on Thursday.Source: Reuters: Money News | 29 Apr 2010 | 9:11 pm UltraTech Cement buys ETA Star Co of DubaiThe acquisition will be carried out by capitalising UltraTech Cement Middle East Investments, a wholly-owned subsidiary of UltraTech Cement in the UAE.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 6:14 pm Sensex rebounds, up 123 on global recoveryThe BSE sensex recovered from two days of losses on Thursday with a 123-point rally to touch 17,503 as foreign funds again turned net buyers.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 6:13 pm Bring MNP by June 30, DoT tells telcosThe government on Thursday directed mobile operators to stick to the June 30 deadline for launching mobile number portability and made it clear that there would be no further extension.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 6:11 pm Sebi, IRDA differ over legal recourseContrary to their earlier stand to move court jointly for settling the issue of control over ULIPs, differences have surfaced between insurance regulator IRDA and market watchdog Sebi on the legal recourse.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 6:10 pm India paves way to ink DTAA with HKIn order to facilitate information flow from jurisdictions such as Hong Kong for purposes of tracking cases of money laundering and tax evasion, the government on Thursday notified Hong Kong, a special administrative region of China, as specified territory.Source: India Business News | Business News - Times of India | 29 Apr 2010 | 6:08 pm Railways plans n-power plant with NPCILThough the plan is still in an initial stage, NPCIL is said to be in active consultations with the Railways to take the project forward shortly.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:56 pm Sebi moves Supreme Court for clubbing Ulip casesRegulator wants the two PILs to be moved to Supreme Court or any one high court.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:40 pm Genpact Q1 net dips 6%, says GE stays a clientBPO reaffirms 14-17% guidance for 2010.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:35 pm Oracle working on SaaS super marketDNA caught up with Michel Van Woudenberg, Oracle's director for Asia Pacific for their cloud-based CRM solution, to get a lowdown on the company's plans.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:31 pm Patni in Japan joint ventureFirm says close to a very large dealSource: Daily News & Analysis: Money News | 29 Apr 2010 | 3:31 pm Health insurers face heat as corporate claims soarPremiums were raised 15-40% in the last year, but claims have increased much more.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:22 pm Core income lifts Bank of Baroda netThe bank saw a net profit growth of 37.32% in 2009-10 at Rs 3,058.33 crore as against Rs 2,227.20 crore in FY09.Source: Daily News & Analysis: Money News | 29 Apr 2010 | 3:19 pm Normal rain forecast cools food inflationIndia’s food inflation slowed as finance minister Pranab Mukherjee said agriculture prices may cool further on prospects of sufficient rains this year. An index measuring wholesale prices of agriculture products including lentils, rice and vegetables compiled by the commerce ministry rose 16.61% in the week ended 17 April from a year earlier. It gained 17.65% the previous week, according to a statement in New Delhi on Thursday. Mukherjee on Wednesday vowed to almost halve the benchmark inflation rate to 5.5% by 31 March on optimism of increased food output. The weather office said last week the June-September monsoon rains, the main source of irrigation in India, will be normal after the showers last year were the weakest since 1972. A favourable monsoon outlook augurs well for calming any inflation fears arising out of food, said Shubhada Rao, chief economist at Yes Bank Ltd in Mumbai. She said food inflation may slow to between 5% and 6% by July. The Bombay Stock Exchange’s Sensex gained 0.7% to close at 17,503.47 points, while the yield on the 10-year government bond dropped 0.01 percentage point to 8.08%. Rainfall will be 98% of the 50-year average in this year’s monsoon season, according to the India Meteorological Department. Last year’s scanty rains caused a drop in the production of rice, wheat and sugar, keeping the food-price inflation at above 15% since November. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:45 pm News Notes | Property prices move up: Makaan.com studyPROPERTY PRICES in India have moved up in the last 12 months, according to a March report released by property research firm Makaan.com. Makaan.com’s property index, which covers six cities, stood at 1,117 compared with 954 in the corresponding month last year, an increase of over 17%. The rise is attributed to the hardening of property prices in Mumbai and Pune, which rose by 29.4% and 28.1%, respectively. Prices in Delhi rose by 6.8% during the same period. Hyderabad, Bangalore and Chennai that corrected by 3.2%, 2.5% and 1.4%, respectively, over the last one year also put pressure on the index. The report said, “Prices fell in the first half (January-June period) of 2009 when the index dropped from 1,000 to 946. This period was marked by complete lack of interest among investors and homebuyers in making long-term high-value purchase decisions. As the economy started reviving, consumers became more confident about their future earnings. Property prices, too, started rising (July-December period) with the index reaching 1,128 in December 2009.” November and December saw two interesting trends, the report said. First, developers in Mumbai, Bangalore and Delhi increased the prices of existing projects. Second, new launch prices were significantly higher than prevalent rates. On the January to March period, Aditya Verma, business head and vice-president, Makaan.com, says, “This steep rise led to crowding out of homebuyers as they were caught off guard with this unexpected jump. This led to lower transactions during the January-March 2010 period.” Various panels in the country are working on a property index to benchmark rates. The Reserve Bank of India has recently initiated an exercise to set up a housing start-up index to track new projects in 31 cities and measure the changes in construction activities. The National Housing Bank already has a property index that tracks residential rate movement in 15 cities. ********** ‘Bancassurance is becoming important’ BANCASSURANCE, WHEN banks sell insurance, will play a major role in the overall development of the Indian insurance sector, says a survey released this week by leading global professional services company, Tower Watson. The new bancassurance benchmark survey, 2009-2010, says new business premium will rise to 40% of the total premiums collected by private insurers by 2012 from the current 25%. Buying insurance at banks is becoming important compared with buying from individual agents. As per the survey, contribution of individual new business for life insurance increased from 5.4% in 2006-07 to 9.6% 2008-09 via bancassurance, while that sold by individual agents saw a decline from 88.6% in 2006-07 to 79.5% in 2008-09. Even as bancassurance has shown a steady increase, the survey also specified lack of motivation among bank staff to obtain a licence from the Insurance Regulatory and Development Authority (Irda). Steve Watson, director, product distribution and markets (London), Tower Watson, says “The true potential of bancassurance has not yet been reached and increased vigilance is needed as the channel expands to avoid the problems experienced in the other market expansion.” The survey also states that banks predominantly sell unit-linked insurance plans (Ulips) to customers and do not show any significant interest in selling traditional or pure term covers. In fact, sale of Ulips through bancassurance channels has generated 85% of premiums. Given the potential of bancassurance channels, a committee is working on the distribution strategy and talks are being held on whether to allow banks to sell policies of a single insurer or more than one insurer. Moreover, Irda is contemplating a different set of remuneration model for the bancassurance channel, where the commission on policies sold through banks may be lowered. The final recommendations are part of a draft Bill to amend the Insurance Act. — Bindisha Sarang and Deepti Bhaskaran Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:45 pm Nano sales low, belie early hypeBookings for the Tata Nano may be officially closed, but it is not that difficult to get hold of the world's cheapest car. The Nano is not only readily available, with dealers holding unsold stocks, but it also hit the used car market around three months ago. HT reports. Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 1:18 pm GE to tap demand for smart meters in $200 billion marketBangalore: General Electric Co. (GE) is poised to tap the $200 billion (Rs8.92 trillion) smart-meter market as nations upgrade more power meters to improve electricity use and lower costs. More than a billion electricity measuring units may be changed to smart meters in the next two decades, said Luke Clemente, general manager for GE Energy’s digital energy business. A smart meter system may cost $100-200 a unit, depending on the technology used, and the business may be worth as much as $200 billion excluding add-on systems and devices, based on calculations from GE data. “Smart meter is a beachhead for smart grid development,” Clemente, who oversees smart meter business globally for GE, the world’s biggest maker of power-generation equipment, said by phone from Singapore. “They help delay adding incremental (power) capacity and reduce electricity losses.” Electricity networks equipped with so-called intelligent meters may improve efficiency and squeeze more out of ageing grid networks in developed nations while helping cut losses from thefts and inefficiencies in Asia. Smart meters transmit consumption patterns to the utility and allow customers to tap cheaper power during off-peak periods. GE may spend $1.5 billion on research and development in its so-called clean products businesses this year, doubling its investment since 2005. GE, whose first quarter profit fell 18%, is deploying smart grid networks on a commercial scale in the US and Australia, conducting trial runs in China and South Korea, and tying up in a meter-making venture with Fuji Electric Holdings Co., Clemente said. The company is targeting the UK, Portugal, Spain, Germany and France as the European Union plans to replace 80% of its meters by 2020, the Atlanta-based GE official said. Smart grid installations may grow at double digits every year, he said, without giving details. The US, which announced an $8 billion upgrade to the nation’s grid in October, plans to replace around 40 million of its 120 million meters with smart ones over three years. China, where GE built a smart grid demonstration center in Yangzhou, plans to replace 400 million meters in five years, Clemente said. The cost of installing smart meters may be a deterrent to some individual consumers as the savings accrue over a longer duration while lack of broadband access and costs may slow development in countries such as India, said Saifur Rahman, a professor at Virginia Tech College of Engineering. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:17 pm European markets rebound as Greek deal nearsLondon: European shares rallied and the euro clawed back from one-year low levels against the dollar on Thursday on news that a Greek debt bailout was close and positive results from top companies. The markets and the single currency were pounded for two straight days after ratings agency Standard & Poor’s downgraded debt from Greece, Portugal and Spain, fuelling fears of contagion from the crisis in Athens. But major European bourses returned to positive territory on Thursday after a top European Union official said talks on a multi-billion-euro bailout for Greece were nearing completion. “Expectations of an announcement about a joint EU-IMF bailout of Greece within days have also helped soothe investor anxiety about an imminent Greek default,” said analyst Michael Hewson at CMC Markets. “A number of positive corporate announcements and trading statements have also helped boost risk appetite, and seen leading shares across Europe push higher,” he said. The markets were energised by positive earnings from German industrial group Siemens, chemical company BASF, Spanish bank Santander, British pay-TV giant BSkyB and global steel giant ArcelorMittal. London won 0.56%, while Frankfurt added 1.0% and Paris rose 1.42%. In the countries hit by the downgrades, Athens soared by more than 7%, Lisbon jumped by more than 4.5% and Madrid was up 2.69%. Wall Street was also up in morning trading with the Dow Jones Industrial Average, the tech-heavy Nasdaq index and the S&P 500 each rising by more than one percent. US shares had rallied overnight as the US Federal Reserve looked unlikely to raise interest rates in the very near future, after keeping borrowing costs ultra-low on Wednesday. On the foreign exchange market, the European single currency rose to 1.3357 dollars, one day after striking 1.3115 — a level last seen in late April 2009. The euro also regained ground against the Japanese currency, rising to ¥124.78 from ¥124.28 late Wednesday. “Decent earnings data has helped support sentiment despite the ongoing crisis in Greece,” said analyst Jane Foley at online trading site Forex.com. “That said, yesterday’s downgrade of Spain’s credit rating has heightened fears that contagion will spread potentially resulting in Spain and Portugal needing financial support.” In Brussels, the EU’s commissioner for economic and monetary affairs Olli Rehn said that marathon talks with Greece were nearly complete. But he insisted that Athens had to take effective action. “We are about to conclude the talks,” he said. Pressure on Greek borrowing costs eased on Thursday in response to fresh pledges of support for an EU-IMF loan package worth up to €45 billion ($60 billion) in the first year alone. The yield on the 10-year Greek sovereign bond slid to 9.04% from nearly 10% late Wednesday. The rate, which indicates the interest the Greek government would have to offer to raise new money, had shot up above 11% at one point on Wednesday as fears of Greek debt default gathered momentum. The yield on Spain’s 10-year sovereign bond also eased off to 4.07% from 4.127%. At the same time, equities were boosted by news that business and consumer confidence in Europe struck a two-year high. The Economic Sentiment Indicator hit 100.6 points in April across the 16 countries that share the euro currency, rising substantially from 97.7 in March, the European Union said. The figure of 100 is described as the long-term average, which means anything above it represents optimism and anything below indicates concern for where the economy is going. “The sharper-than-expected increase in eurozone economic confidence in April contrasts sharply with growing market concern that the Greek crisis may be spreading to other eurozone economies,” noted ING economist Martin van Vliet. The eurozone debt crisis weighed more heavily in Asia on Thursday, with Hong Kong falling 0.81% and Sydney sliding 0.77%, while Tokyo was shut for a public holiday. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:17 pm Corporate | Nas Air to start flightsto India by JuneMumbai: Riyadh-based low-fare carrier Nas Air will launch India services beginning 1 June with flights to Kochi, while Kozhikode, Mumbai and New Delhi will start later. Nas Air, a subsidiary of aviation firm Saudi National Air Services (NAS), is offering promotional fares starting at Rs4,500 to attract Indian passengers. In November 2008, another Saudi Arabia-based low-fare carrier, Sama Airlines, had started Indian operations connecting Mumbai, but suspended operations in a month. ****** HNGIL in joint venture with Belgian firm Kolkata: India’s leading glass container manufacturer by market share, Hindusthan National Glass and Industries Ltd (HNGIL) on Thursday entered a 50:50 joint venture with Belgian firm Omco International NV to make glass moulds in India. The new company, Omco HNG Engineering Ltd, will manufacture glass moulds and neck rings using Omco’s technology that would primarily be purchased by HNGIL for making glass containers. —Aveek Datta ****** Crompton Greaves to buy Nelco businesses Mumbai: Electrical equipment maker Crompton Greaves Ltd on Thursday signed an agreement to buy Nelco Ltd’s three businesses—traction electronics, SCADA and industrial drives—for Rs92 crore, it said in a statement to the Bombay Stock Exchange. The acquisition was made on a slump sale basis, which refers to the transfer of only a division of a company to another. The purchase will enable Crompton Greaves to bid for more contracts for railway track electrification and signalling contracts by leveraging its existing portfolio. —Baiju Kalesh ****** Energy | Railways in talks with NPCIL for captive plant Hyderabad: Public sector firm Nuclear Power Corp. of India Ltd (NPCIL) is in initial talks with Indian Railways to set up a captive power plant for the latter. “They (Railways) are big consumers of power. They want to set up a power plant for their own consumption,” NPCIL chairman and managing director S.K. Jain said on Thursday. —C.R. Sukumar ***** Energy | CESC to revive Balagarh power project Kolkata: Faced with mounting power shortage, CESC Ltd, which generates and supplies power in Kolkata, has decided to revive a project that has been hanging fire for the last 10 years despite land being allotted to the company. CESC’s board on Thursday approved plans to build in two phases a 1,320MW power plant at Balagarh in West Bengal. The projected investment for the first phase, in which the company will create a generation capacity of 660MW, is Rs3,200 crore, CESC vice-chairman Sanjiv Goenka said. On Thursday, CESC announced its net profit in the quarter till 31 March had gone up 6.3% over the corresponding period in the previous fiscal to Rs100 crore, while revenue rose 2% to Rs770 crore. —Aveek Datta Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:15 pm UltraTech to buy Star Cement; net falls 26% in Q4Mumbai: UltraTech Cement Ltd, owned by the $24.5 billion (Rs1.09 trillion) conglomerate Aditya Birla Group, said on Thursday that it will acquire Dubai-based ETA Star Cement Co. Llc as Mint had reported on 28 April. The purchase will be made through the United Arab Emirates (UAE)-based subsidiary UltraTech Cement Middle East Investments Ltd for an enterprise value of Rs1,700 crore. Enterprise value is the market value of the entire business, including all its debt. Star Cement, a part of ETA Star Group—one of Dubai’s largest conglomerates that has interests in real estate development to trading—has a capacity of 2.3 million tonnes (mt) through two plants in the UAE along with 0.4 mt in Bahrain and 0.5 mt in Bangladesh. The acquisition will be completed by the end of June, UltraTech said in a statement. The Aditya Birla Group, which has interests ranging from metals to mobile services, said it will acquire “management control and equity stake”, but did not disclose the size of the stake or the amount it paid for it. O.P. Puranmalka, whole-time director of UltraTech Cement, said the acquisition will give the company “immediate scale and footprint in the Indian Ocean rim without disturbing the market matrix”. The firm did not specify where the money will come from. “We will use a judicious mix of internal accrual and borrowings for funding this acquisition,” said K.C. Birla, chief financial officer at UltraTech Cement. At the end of March, UltraTech Cement had cash and bank balances of Rs83.73 crore, with loans and advances of Rs351.13 crore, the company’s results, also released on Thursday, showed. The company reported that profit for the quarter ended March fell 26% to Rs229 crore from Rs309 crore in the corresponding quarter of the previous year, dragging the stock down. UltraTech shares shed 5.19% on the Bombay Stock Exchange to end at Rs1,018 each, compared with a marginal 0.71% gain by the exchange’s benchmark 30-share Sensex index, which started to climb out of a two-day slump to close at 17,503.47. UltraTech currently exports cement and clinker to West Asia, and with this acquisition, “it will gain direct access to markets in the Middle East and adjoining regions”, the company said in a media statement. It will get a 20% market share in the UAE market, said Jagdish Bajaj, president (finance) of UltraTech. Crunching the numbers, Rajan Kumar, equity analyst with Centrum Broking Pvt. Ltd, said the acquisition cost the Aditya Birla Group around $125 per tonne of cement. “The price is neither expensive nor cheap because the Middle East market is going through a slump and traditionally it is always good to enter a new market when it is not doing that well,” he said. Kumar said that selling finished cement in the UAE will improve the company’s prospects in the years to come. The Aditya Birla Group is currently awaiting approval from the Bombay high court to merge its other cement company Samruddhi Cement Ltd—which was first demerged from Grasim Industries Ltd—with UltraTech. “This acquisition together with the Samruddhi amalgamation will enhance UltraTech’s capacity to 52 million tonnes per annum,” said Puranmalka, who took over as whole-time director on 1 April. Meanwhile, reacting to its financial performance, the company on Thursday blamed the lower profit to a drop in realizations in both domestic as well as export markets. Analysts put the realization at Rs3,000 per tonne, down from Rs3,260 per tonne in the same period last year. “The results pulled down the stock today. The domestic cement outlook is weak and with costs like coal likely to rise, the stock may remain subdued at around Rs950-1,025 per share. The acquisition will only reflect in the long term,” an analyst from a private brokerage said on condition of anonymity. Source: LatestNews-Home - Livemint.com | 29 Apr 2010 | 1:15 pm Pranab's tax breaks to make housing, air travel cheaperYour air travel may have got a tad cheaper. The house you were saving up to buy may not cost as much as you expected. Anti-cancer and anti-AIDS drugs, scented supari and medical equipment will also cost less than before. HT reports. Basket of goodiesSource: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 1:14 pm UltraTech gets Dubai ETA unitThe Aditya Vikram Birla Group on Thursday made a decisive overseas push in its ambition to be a global cement player as its UltraTech Cement announced it would acquire control of Dubai-based ETA Star Cement at a valuation of $380 million, or nearly Rs 1,700 crore. Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 1:04 pm Japan Tobacco raises investment in Indian unitThe worlds third largest tobacco company by sales volume, Japan Tobacco Inc, has invested $65 million (Rs 293 crore) in its Indian unit without increasing its shareholding, just days ahead of a government decision to ban foreign direct investment (FDI) in cigarette manufacturing.Source: Business Standard | Front Page Headlines | 29 Apr 2010 | 1:02 pm Mutual fund scorecard for investorsA scorecard to help mutual fund investment decisions and track fund performances was launched jointly by Standard & Poor’s (S&P) and Crisil on Thursday. Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 1:00 pm Sebi to get strict with FII sub-accountsThe Securities and Exchange Board of India (Sebi) plans to tighten the rules for transfer of sub-accounts by foreign institutional investors (FIIs).Source: Business Standard | Front Page Headlines | 29 Apr 2010 | 12:59 pm House approves Finance BillFinance Minister Pranab Mukherjee today announced several tax exemptions and sops before putting the Finance Bill, 2010, to vote in the Lok Sabha.Source: Business Standard | Front Page Headlines | 29 Apr 2010 | 12:58 pm Afghan air route hotter with Safi entrySafi airways, a private Afghan carrier, could soon become the fourth airline from that country to operate flights to India.Source: HindustanTimes.com - Top Business News Headlines | 29 Apr 2010 | 12:56 pm Isro delays PSLV launch,waits for analysisBangalore: India’s space agency has put off the 9 May launch of its homegrown polar satellite launch vehicle (PSLV) after it found a drop in pressure in the second stage of the rocket. “The new date for the launch of (the) PSLV-C15 mission will be decided after preliminary results of the analysis are obtained,” the Indian Space Research Organisation (Isro) said in a statement on Thursday. The rocket will carry remote sensing satellites—India’s Cartosat-2B and Algeria’s ALSAT-2A—as well as small university satellites. Source: Tech News - Livemint.com | 29 Apr 2010 | 12:50 pm 2,200 Indian cos may go MNC way by 2024: PwCNew Delhi: India may overtake China as the largest source of new MNCs from the emerging markets, with over 2,200 domestic firms forecast to open overseas operations over the next 15 years, says a PricewaterhouseCoopers report. According to the report titled the Emerging Multinationals, the competitive landscape is set to be transformed over the next decade as Indian and Chinese multinationals lead the way in seeking new markets outside their home markets. “India is expected to produce the most new multinational companies, overtaking China as the emerging world’s largest source of new multinationals. Over 2,200 domestic companies are projected to open operations outside over the next 15 years (between 2010 and 2024),” the report says. Driven by the rapid pace of globalisation and revolution in information and communications technologies, the number of companies from the emerging markets choosing to set up operations abroad has increased in the past five years. The report suggests this trend is expected to continue over the next 15 years, as new multinationals from emerging economies rise in prominence on the global economic stage. “It is encouraging to know that India will replace China as the largest source of new MNCs in the emerging world from 2018 onwards. The key drivers for this are the relative increase in both investment intensity as well as openness that the domestic economy offers,” PwC India leader for markets and industries Jairaj Purandare said. India and China would also be joined by an array of companies from Singapore, Russia, Malaysia and South Korea in terms of setting up MNCs. According to the report, some of these new MNCs would become international powerhouses and would require services all over the world; for example, to support their IT and telecom networks. PwC report says more and more new MNS are moving straight into the developed economies as opposed to setting up their first foreign operation in a neighbouring emerging market. The global consultancy major used econometric techniques to project the number of new multinationals arising from a sample of 15 emerging economies over the next 15 years. The countries analysed are --Argentina, Brazil, Chile, China, Hungary, India, Malaysia, Mexico, Poland, Romania, Russia, Singapore, South Korea, Ukraine and Vietnam. Source: World Business - Livemint.com | 29 Apr 2010 | 6:41 am RIL, others stop gasoline sale to Iran, but China replaces themWashington: Under mounting global pressure, especially from the US, several companies, including India’s Reliance and Russia’s LUKOIL, have stopped selling gasoline to Iran, but the place has been quickly occupied by some firms from China, a Congressional report has said. Several US lawmakers - both from the House of Representatives and the Senate - had in the past had raised question over Reliance Industries’s business ties with Iran and had urged the Export Import Bank of the US to rescind loan guarantees to Reliance. “India’s Reliance has been a major supplier of gasoline to Iran. However, in January 2009, Reliance reportedly agreed to terminate gasoline sales to Iran once its current contractual obligations expire,” said a latest report of the Congressional Research Service (CRS). CRS is the independent and bipartisan research wing of the US Congress that prepares periodic report for US lawmakers on issues of their interest. “Previously, some members of Congress called on the US Export-Import Bank to rescind two loan guarantees worth USD 900 million authorized to RIL, in support of RIL’s petroleum refinery equipment and services (USD 500 million) and for gas development and exploration in India’s Bay of Bengal region (USD 400 million),” the report said. In fact, Reliance is not the only company to have terminated its gasoline supplies to Iran, the CRS report said. “The Swiss-based wholesalers Vitol, Glencore, and Trafigura have been longstanding suppliers of gasoline to Iran. While they reportedly sold gasoline to Iran in 2009, these companies have since stopped shipments due to the mounting political and commercial risks of doing business with Iran,” it said. “The termination of shipments follows a trend in recent years of scaling back business with Iran. For instance, in December 2007, Vitol reportedly declined to renew long-term contracts with Iran, but still provides gasoline to Iran on the spot market,” it said. “In the first half of 2010, Malaysia’s Petronas, Russia’s LUKOIL, and Royal Dutch Shell reportedly stopped selling gasoline to Iran. “Iran’s longtime suppliers of gasoline from Europe are being succeeded by smaller Dubai-based and Chinese companies,” it said, adding that China’s ZhenHua Oil, which began selling gasoline to Iran in 2009, reportedly now provides Iran with one-third of its gasoline imports. “A number of factors contribute to Iran’s high gasoline consumption rates. Many analysts contend that high energy subsidies do not give Iranians an incentive to conserve. In addition, there has been an increase in vehicle sales, particularly of fuel-inefficient older models. Import levels are also high because Iran has limited domestic refinery capacity to produce light fuels,” the CRS said. Some analysts predict that Iran could become a net exporter of gasoline by 2013 if the government achieves its targets for domestic gasoline refinery projects and eliminates gasoline subsidies. Oil consumption also is declining as consumers are moving more toward natural gas use. Source: World Business - Livemint.com | 29 Apr 2010 | 5:33 am Acer to sell new smartphones after HP-Palm dealTaipei: Acer Inc, the world’s No.2 PC vendor, plans to introduce four new smartphone models later this year to help boost profits, a day after rival HP set its sights in the fast-growing smartphone market. As the global economy shows more signs of recovery, Acer also said on Thursday it expects new laptop PCs to drive its profit margins higher after posting a 62 percent rise in first-quarter earnings. “Competitive advantage of new products can help us boost profitability from the third quarter,” Acer chairman J.T. Wang told an investor conference even though smartphones make up only a very small amount of Acer’s sales now. Analysts say Asian technology firms vying for a bigger share of the hot smartphone market now face an uphill battle after the world’s top PC maker Hewlett-Packard snapped up Palm. But Acer also sees growth in its traditional PC market, forecasting 30 percent annual growth in global laptop shipments over the next two years, though some analysts say a shortage of key components remains a concern and could hurt PC makers’ margins in the coming months. “Its second quarter margin might be affected but the impact should be limited,” said Yuanta Securities analyst Vincent Chen, referring to rising prices of key parts such as memory chips. “Acer has scale and knows how to control costs very well, and third-quarter sales might be growing faster,” Chen said. PC sales typically grow into the third quarter thanks to back-to-school and pre-Christmas demand. Acer, one of the few internationally recognisable Taiwan computer brands, booked a net profit of T$3.29 billion ($105 million) in January-March, versus T$2.03 billion a year ago and T$3.52 billion in the fourth quarter of 2009. First-quarter operating profit margin rose to 2.7 percent from 2.2 percent the same period a year ago. The profit was largely in line with a consensus forecast of T$3.23 billion made by Thomson Reuters. “Q1 was quite good and we’ve seen PC demand coming back very strong,” Acer CEO Gianfranco Lanci told the same conference. For Acer, getting bigger is a survival issue: Acer acquired PC rivals Gateway and Packard-Bell over the past few years, dramatically expanding its footprint in the US. Global personal computer shipments rose sharply in the first quarter, according to industry estimates released earlier this month, as businesses finally began to spend again on technology equipment. Fast-growing Acer had a 13.6% share in the global PC market in the first quarter, while No.1 HP grabbed nearly 20% in the same period, according to IDC. Acer’s results came after the Taipei stock market closed on Thursday. The stock fell 1.35%, larger than the main TAIEX’s 0.34% drop. The stock hit a two-month high in mid-March but has headed south since then amid worries over rising parts prices. Source: Tech News - Livemint.com | 29 Apr 2010 | 3:44 am
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