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Anand Mahindra to be appointed MM Chairman: SourcesAnand Mahindra is likely to be appointed as Chairman, Mahindra Mahindra, reports CNBCTV18, qouting sources. He is currently the ViceChairman and Managing Director of MM.Source: Moneycontrol Top Headlines | 12 Jul 2010 | 8:26 am Gitanjali Gems to develop real estate in MumbaiJeweller Gitanajali Gems plans to develop 100,000 square feet of commercial real estate in addition to the 400,000 square feet land it is already developing in Mumbai\'s suburbs, Managing Director Mehul Choksi said on Monday.Source: Moneycontrol Top Headlines | 12 Jul 2010 | 7:17 am Social networking more popular than Demat a/cs: SMC CapSMC Capital is of the view that India as a consumer needs to open up, but India as an investor is yet to be opened.Source: Moneycontrol Top Headlines | 12 Jul 2010 | 6:22 am See price decontrol in next 69 months: Balrampur ChiniVivek Saraogi, President, Indian Sugar Mills Association, feels there are high chances of sugar prices being decontrolled. \"We are hopeful that the chances of its decontrol are the brightest this time around due to a better supplydemand situation in sugar year 201011.\"Source: Moneycontrol Top Headlines | 12 Jul 2010 | 5:36 am Industry growth slips to 11.5%, still good: Chawla - Business Standard
Source: Business - Google News | 12 Jul 2010 | 4:00 am Gold retreats as dollar firms, investment wanesLONDON (Reuters) - Gold slipped in Europe on Monday, surrendering some of the previous session's more than 1 percent gains, as the dollar firmed and fresh investment flows into the metal dried up and concern over euro zone risk receded.Source: Reuters: Money News | 12 Jul 2010 | 3:35 am Cash crunch to ease by July-end - bankersMUMBAI (Reuters) - A cash crunch in the banking system, which drove the one-year overnight indexed swaps to a 20-month high on Friday, should begin to ease by the end of July, bankers said on Monday after a meeting with the Reserve Bank of India (RBI).Source: Reuters: Money News | 12 Jul 2010 | 3:31 am Nifty hovers around 5400 Idea Unitech Tata Motors up - Moneycontrol.com
Source: Business - Google News | 12 Jul 2010 | 3:18 am Shell plans to sell some India fuel stationsNew Delhi: The Indian arm of Royal Dutch Shell plans to sell of some fuel stations in the Asian country while continuing to build new ones to cover more regions, a company official said on Monday. Shell India is the only foreign fuel retailer in India’s restricted market, which got a boost in June after the government freed pricing of petrol from state control and raised prices of diesel and other fuels. “We are realigning our portfolio as part of an ongoing business strategy,” spokesman Deepak Mukarji told Reuters. “We are not exiting India fuel retail business.” The company operated about 80 fuel stations in India, he said. “There are fuel stations we want to continue with and some we are looking at selling. Also we continue to acquire new sites in new regions to expand,” he said. The Business Standard newspaper on Monday reported state-run refiners Indian Oil Corp and Bharat Petroleum Corp were planning to bid for Shell’s retail outlets. “Shell approached Indian Oil and we have given bids for some of the outlets,” Indian Oil chairman B M Bansal told the paper. He was quoted as saying taking over stations in urban areas made business sense because of difficulty in acquiring land there. Hindustan Petroleum Corp, another state refiner, was not in the race for buying Shell’s fuel stations, an official said. “Last year they (Shell) were keen to sell some of their retail outlets. In recent times we have not received any proposal from Shell,” S Roy Choudhury, director for marketing, told Reuters. Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 3:18 am More affluent smaller homesIn the last two weeks, we dealt with the G3 and H1 segments, in which the chief wage earners were in their middle years, married with young children, and had very low skills and education levels. This week we move to the top of the spectrum in the same life-stage—segment A2, comprised of households whose chief wage earners are married with young children and are all businessmen with a college-level education. The A2 segment is much more affluent than the ones seen in the past few weeks, and a much smaller one as well. With nearly 400,000 households, it stands 25th in size but has the sixth highest income among all 33 in this series. These are households where the chief wage earners are second- or third-generation urban residents. With good access to education, more than three-quarters have completed graduate degrees while 12% of the chief wage earners have moved on to earn postgraduate qualifications. Also See |Indicus Analytics Research (Graphic
) As all the chief wage earners in this category are self-employed, the sectors of employment are quite diverse—wholesale and retail trade, manufacturing and construction each account for more than 20% of the sectoral employment. While the first two have traditionally been sectors where entrepreneurs have struck out into after graduation, the third—construction and real estate—has attracted larger numbers in the past decade. The insatiable demand in cities spans a range of opportunities—apartment complexes, row houses, townships, office complexes, farmhouses for the high net-worth individuals, etc. Being a “builder” or a real estate developer is a career move that has attracted those with the inclination to work independently and the capacity to move through the maze of regulations in local urban bodies. Access to finance is relatively easier than before, and not just from financial institutions. With soaring real estate prices, funding is also available from relatives and friends with money to spare for what is seen to be an opportunity to make a quick buck. There are some in this segment who may have been hit the hardest by the 2008 crisis, being over-extended on their projects. But this still hasn’t taken away from the essential demand-supply dynamics of urban real estate; this is still a profitable sector for those with business instinct. A2 household sizes are small, fitting in with the higher education and income levels. Though this segment includes both joint and nuclear families, the latter form the majority, following the trend of urban families. Most homes have just three-four members, and just 14% have more than two children. Though there is a wide range of income segments within A2, children would be high-priority when it comes to consumption decisions—be it schooling or entertainment, parents try to give their children the best they can afford. Aspiration levels are very high and set to global standards in many of the households—whether they be vacations abroad, eating out, international baccalaureate schooling or the latest gadgets, the children get them all. These are parents who have made it at a young age, and they don’t want to see their children lack anything now. Also See | A2 segment Around 13% of the households earn more than Rs15 lakh a year, and though one-third are still at the lowest end, earning less than Rs3 lakh a year, this could be because they are just starting out in their ventures or are very small families. Whatever may be the income levels for now, these households are set to work their way upwards to even higher levels. Indicus Analytics Research graphic by Shyamal Banerjee/Mint A2 segment graphic by Ahmed Raza Khan/Mint —Indicus Indian Consumer Spectrum Series-XXX This series is brought to you by research firm Indicus Analytics Pvt. Ltd Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 3:11 am Cash crunch to ease by July-end: bankersBy * - bankers * Mumbai: A cash crunch in India’s banking system, which drove the one-year overnight indexed swaps to a 20-month high on Friday, should begin to ease by the end of July, bankers said on Monday after a meeting with the central bank. Cash available with banks have been tight after telecom companies pulled out more than $21 billion to pay for 3G licences and broadband spectrum in late May and June. “Liquidity is expected to improve by July-end and beyond,” said O.P. Bhatt, chairman of State Bank of India, the country’s largest lender. He was speaking with reporters after customary talks with the Reserve Bank of India (RBI) ahead of 27 July monetary policy, when the central bank is widely expected to raise rates by a quarter point in its fourth such move since mid-March. Industrial output grew at a slower-than-expected 11.5% from a year earlier, but expectations of a central bank rate hike for the second time this month remain unchanged due to inflationary pressures. “Both bankers and the RBI agree that the current tightness is only a temporary thing and government spending will ease the tightness by this month end,” said another banker. Bhatt said bankers had told the central bank that a 20% loan growth target was achievable in the current fiscal year to March. Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 3:10 am Apple chief is the ’smartest CEO’ in Fortune tech listNew York: Apple’s iconic chief Steve Jobs has emerged as the ‘smartest CEO’ in the field of technology, says Fortune, which has published a list of ‘50 smartest people in tech. According to Fortune, Amazon CEO Jeff Bezos, Demand Media CEO Richard Rosenblatt, Alibaba Group CEO Jack Ma and Dendreon CEO Mitch Gold lag behind as runners-up in the ‘smartest CEO’ category. “Jobs is a pop culture icon like no other business executive,” the magazine said, adding, “He is a visionary, a micromanager and a showman who creates such anticipation around new products that their releases are veritable holidays.” The magazine further said, “When Steve Jobs returned to Apple in 1997 after a 12-year exile, the company was close to bankruptcy. Thirteen years later, it has a market cap of $250 billion and is the world’s most valuable tech company, transforming whole industries along the way.” The smart iPhone maker also made its mark in the field of designing with the lead designer at Apple, Jonathan Ive, gaining the top spot in the ‘smartest designer’ category. Fortune’s list incorporates several categories such as designers, analysts, engineers, academics, hybrids, investors, founders, executives and scientists. “None of Fortune’s smartest get by on brains alone. They are disciplined, hard-driven perfectionists,” the magazine said. In addition, other prominent persons on the list were Google’s Sergey Brin and Larry Page, Jack Dorsey of Twitter, Facebook’s CEO Mark Zuckerberg and Netscape’s Marc Andreessen. The list of ‘50 smartest people’ was compiled by 100 advisors and experts, who were asked for nominations, followed by analysts’ evaluation of each nominee’s contributions in 2010. Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 3:04 am BEL to sell 10.8% stake to IFC, others for Rs 230 cr - Business Standard
Source: Business - Google News | 12 Jul 2010 | 2:59 am Titagarh Wagons buys French co in first overseas buyMUMBAI (Reuters) - Titagarh Wagons Ltd said on Monday it will invest 15 million euros to buy French rail wagon maker IGF Industries-Arbel Fauvet Rail (AFR), its first overseas buy as it looks to tap new markets.Source: Reuters: Money News | 12 Jul 2010 | 2:52 am Titagarh Wagons buys French company in first overseas buyMumbai: Titagarh Wagons Ltd said on Monday it will invest €15 million to buy French rail wagon maker IGF Industries-Arbel Fauvet Rail (AFR), its first overseas buy as it looks to tap new markets. The deal will give Titagarh an additional capacity of up to 5,000 wagons a year and help the Indian wagon maker tap the European as well as global markets, it said. AFR is based in Douai, in northern France, and designs and makes tank cars, containers, bogies and wagons. “We have committed an investment of €15 million, of which about €2 million is for the assets,” Dinesh Arya, Titagarh’s company secretary, told Reuters. “We are expecting an order for about 300-odd wagons for this French unit. Once we get that order, manufacturing can start,” he said. Arya said the order is expected to come within a week to 10 days, adding “but it can take longer too”. Once the manufacturing begins the firm would invest the remaining €13 million, he said. “AFR has large number of patented designs of specialised wagons which will help the group gain a leadership position in India,” Titagarh chairman J P Chowdhary said in the statement. Axis Bank was the sole financial adviser fro Titagarh on the bid. The Kolkata-based firm also has a joint venture with US-based FreightCar America to make lighter aluminium rail cars with more pay load for the local market. Titagarh plans to jointly bid with ABB and Stadler Rail AG to build rail coaches for the Indian Railways. Two analysts with coverage on this stock has rated Titagarh as a ‘strong buy’, according to ThomsonReuters I/B/E/S, with average target price of Rs424. At 2:17 p.m., Titagarh shares were up 0.44% at Rs378.95 in a firm Mumbai market. Source: Home - Livemint.com | 12 Jul 2010 | 2:47 am Tata Mid Cap Fund declares dividend - Moneycontrol.com
Source: Business - Google News | 12 Jul 2010 | 2:38 am World stocks hit 2-week high on earnings optimismLONDON (Reuters) - World stocks briefly hit a two-week peak on Monday as expectations rose that U.S. corporate earnings this week would point to a sustainable economic recovery in the world's biggest economy.Source: Reuters: Money News | 12 Jul 2010 | 2:35 am Roundtable of Malaysian Indian parties mooted - Sify
Source: Business - Google News | 12 Jul 2010 | 2:32 am RBI says enough liquidity - Canara Bank chiefMUMBAI (Reuters) - The Reserve Bank of India has told bankers that there is enough liquidity in the banking system, A.C Mahajan, chairman Canara Bank told reporters on Monday after a meeting with the cental bank officials ahead of the July. 27 policy review.Source: Reuters: Money News | 12 Jul 2010 | 2:01 am ANALYSIS - Japan growth plan may hurt, not boost, economyTOKYO (Reuters) - If history is anything to go by, Japan's plan to boost the sluggish economy by pouring cash into so-called growth sectors could do more harm than good by adding a drag on the country's already relatively low productivity.Source: Reuters: Money News | 12 Jul 2010 | 1:47 am Piramal Healthcare denies talks to sell diagnostics bizPiramal Healthcare is all set to sell off its diagnostic business arm, reports CNBCTV18, quoting sources. Malvinder Singh\'s Super Religare Laboratories is likely to be the buyer.Source: Moneycontrol Top Headlines | 12 Jul 2010 | 1:44 am DEALTALK - BP's Vietnam gas project in dealmakers' radarsHONG KONG (Reuters) - Of all the BP units that Asian buyers may be eager to scoop up across the globe, an asset closer to home in southern Vietnam could evoke the most immediate interest.Source: Reuters: Money News | 12 Jul 2010 | 1:39 am IMF chief sees risks from surge in capital flowsDAEJEON, South Korea (Reuters) - Asia has emerged as a global economic powerhouse but is faced with policy challenges from rising capital inflows and needs to watch out for possible shocks from Europe, the IMF's chief said on Monday.Source: Reuters: Money News | 12 Jul 2010 | 1:35 am Gold buying retreats as prices inch upMumbai: India gold buying retreated on Monday afternoon as global prices recovered and traders sought lower rates to stock for the second round of festivals starting August, dealers said. A weak rupee also made the dollar-denominated yellow metal expensive, they added. “It’s a totally dull scenario, there was activity last week on dips below $1,200 (an ounce),” said Pinakin Vyas, assistant vice-president, with IndusInd Bank, a gold importer. International gold, which guides the domestic market, was trading at $1,208.50/1,209.25 an ounce, recovering from a low of $1,185.05 struck last week. Prices were still below the last close of 1,211.85/1,212.85. “A dip below $1,200 could re-activate the market,” said a dealer with a state-run bullion dealing bank. The Indian rupee weakens after data shows May factory output grew at 11.5%, below 165 that was forecast in a Reuters poll. India, which accounts for more than 20% of global demand, will celebrate the Hindu festival of Raksha Bandhan on 24 August, and Janmasthami and Ganesh Chaturthi in September. Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 1:34 am NRIs to get voting rights: MoilyLondon: Indian government is planning to provide voting rights to Non-Resident Indians and steps are being taken to make it a reality, law and justice minister Veerappa Moily has said. “The law ministry has initiated a scheme to provide voting rights to NRIs and it will become a reality soon,” Moily told members of the Indian Overseas Congress (UK) London on Sunday evening. Replying to a representation made by D L Kalhan, president of the Indian Overseas Congress, at the Indian Gymkhana here that the NRI’s demand for right to vote in India was pending for long, the Law Minister said “necessary legislation for that purpose would be enacted soon.” Answering queries at the reception hosted in his honour, Moily said NRIs would have to visit India at the time of the elections. Efforts would also be made to provide voting facilities at the concerned Indian Missions abroad. There are an estimated over 22 million NRIs spread all over the world. He said for the purpose of registration as voters in India, their last address in India would be taken into consideration. The right to vote would, however, not be available to NRIs who have acquired citizenship of other countries, he said. Moily also assured the UK-based NRIs that he would take up the issue of providing visa-free travel facilities to them in the European Union. Kalhan also urged the Indian government to withdraw “the black list” issued against some of the NRIs after the assassination of the late prime minister Indira Gandhi. The IOC chief also wanted a fresh probe to find perpetrators of the Kanishka aircrash - Air India flight AI-183, in 1985. Source: LatestNews-Home - Livemint.com | 12 Jul 2010 | 1:28 am Copper futures down on profit-booking, weak overseas cues - Business Standard
Source: Business - Google News | 12 Jul 2010 | 1:27 am BP puts oil leak bill at 3.5 billion dollarsThe continuing oil leak caused by the April explosion of a Gulf of Mexico oil rig has cost BP 3.5 billion dollars (2.78 billion euro), the British petrol giant said today.Source: HindustanTimes.com - Top Business News Headlines | 12 Jul 2010 | 1:08 am Telecom services industry growth slows to 2.5% in 2009-10 - NDTV.com
Source: Business - Google News | 12 Jul 2010 | 1:00 am PSLV launch successful, 5 satellites placed in orbitSriharikota: In a textbook launch, India’s Polar Satellite Launch Vehicle (PSLV) on Monday successfully placed into orbit remote sensing satellite Cartosat-2B and four other satellites after a perfect lift off from the spaceport here. At the end of an over 51-hour countdown, the 44.4 metre-tall four-stage PSLV-C-15, costing Rs260 crore, blasted off from a launch pad at the Satish Dhawan Space Centre with ignition of the core first stage and placed the satellites in orbit one after the other. Visibly relieved scientists, headed by Isro chairman Dr K Radhakrishnan, cheered as Isro’s workhorse PSLV soared into clear skies at 9.22 AM from the spaceport in the East Coast in Andhra Pradesh, about 100 km north of Chennai. The PSLV launch assumes significance as it comes about three months after Isro suffered a major setback on 15 April when the Geosynchronous Satellite Launch Vehicle (GSLV-D3), which was launched using an Indian-designed and built cryogenic engine for the first time, failed and fell into the Bay of Bengal. Cartosat-2B is an advanced remote sensing satellite built by Isro. This is the latest in the Indian remote sensing satellite series and the 17th in this series. Cartosat-2B is mainly intended to augment remote sensing data services to the users of multiple spot scene imagery with 0.8 metre spatial resolution and 9.6 km swath in the panchromatic. Cartosat-2 and 2A, two Indian remote sensing satellites in orbit, are currently providing such services. A set of four satellites including Studsat built by students of seven engineering colleges in Andhra Pradesh and Karnataka, Alsat from Algeria, two nano satellites from Canada and Switzerland, and a pico (very small) satellite called Oceansat 2 accompanied Cartosat 2 on its trip to orbit. Planning Commission deputy chairman Montek Singh Ahuluwalia, and former Isro chief Dr K Kasturirangan witnessed the launch. “It has been a wonderful experience. The Isro has made the country proud,” Ahluwalia said, congratulating the scientists after the perfect take off. Attributing the success of PSLV C-15 to the entire team behind the mission, Isro chairman K Radhakrishnan said, “We had an excellent flight. It injected precisely the five satellites. The entire Isro team is behind the success”. In an apparent reference to the failure of GSLV D3 cryogenic stage, the space agency’s first mission after he took over as its chief, he said his team of scientists were inspired to work “especially after the last few weeks after a serious problem that we faced.” “And I also want to say we have understood the problem with regard to the indigenous cryogenic engine and stage. We will confirm it in a few weeks with a few tests and then we will come back”, he said. Source: Home - Livemint.com | 12 Jul 2010 | 12:59 am PSLV launch successful, 5 satellites placed in orbitSriharikota: In a textbook launch, India’s Polar Satellite Launch Vehicle (PSLV) on Monday successfully placed into orbit remote sensing satellite Cartosat-2B and four other satellites after a perfect lift off from the spaceport here. At the end of an over 51-hour countdown, the 44.4 metre-tall four-stage PSLV-C-15, costing Rs260 crore, blasted off from a launch pad at the Satish Dhawan Space Centre with ignition of the core first stage and placed the satellites in orbit one after the other. Visibly relieved scientists, headed by Isro chairman Dr K Radhakrishnan, cheered as Isro’s workhorse PSLV soared into clear skies at 9.22 AM from the spaceport in the East Coast in Andhra Pradesh, about 100 km north of Chennai. The PSLV launch assumes significance as it comes about three months after Isro suffered a major setback on 15 April when the Geosynchronous Satellite Launch Vehicle (GSLV-D3), which was launched using an Indian-designed and built cryogenic engine for the first time, failed and fell into the Bay of Bengal. Cartosat-2B is an advanced remote sensing satellite built by Isro. This is the latest in the Indian remote sensing satellite series and the 17th in this series. Cartosat-2B is mainly intended to augment remote sensing data services to the users of multiple spot scene imagery with 0.8 metre spatial resolution and 9.6 km swath in the panchromatic. Cartosat-2 and 2A, two Indian remote sensing satellites in orbit, are currently providing such services. A set of four satellites including Studsat built by students of seven engineering colleges in Andhra Pradesh and Karnataka, Alsat from Algeria, two nano satellites from Canada and Switzerland, and a pico (very small) satellite called Oceansat 2 accompanied Cartosat 2 on its trip to orbit. Planning Commission deputy chairman Montek Singh Ahuluwalia, and former Isro chief Dr K Kasturirangan witnessed the launch. “It has been a wonderful experience. The Isro has made the country proud,” Ahluwalia said, congratulating the scientists after the perfect take off. Attributing the success of PSLV C-15 to the entire team behind the mission, Isro chairman K Radhakrishnan said, “We had an excellent flight. It injected precisely the five satellites. The entire Isro team is behind the success”. In an apparent reference to the failure of GSLV D3 cryogenic stage, the space agency’s first mission after he took over as its chief, he said his team of scientists were inspired to work “especially after the last few weeks after a serious problem that we faced.” “And I also want to say we have understood the problem with regard to the indigenous cryogenic engine and stage. We will confirm it in a few weeks with a few tests and then we will come back”, he said. Source: Tech News - Livemint.com | 12 Jul 2010 | 12:59 am Pakistan June inflation up 12.69 pct yr/yrPakistan's consumer price index, a key indicator of inflation, rose 12.69 per cent in June from a year ago, the Federal Bureau of Statistics said today.Source: HindustanTimes.com - Top Business News Headlines | 12 Jul 2010 | 12:58 am India June wholesale inflation seen at 10.8 per cent - Economic Times
Source: Business - Google News | 12 Jul 2010 | 12:33 am Indian investments to rise post trade pact: Malaysian ministerIndian investments in Malaysia are expected to surge with trade pacts expected to be inked between the two sides later this year, a Malaysian minister told a newspaper.Source: HindustanTimes.com - Top Business News Headlines | 12 Jul 2010 | 12:32 am Gitanjali Gems to develop real estate in MumbaiBy (Recasts and adds details, quote, share price) * - MD * To develop 100,000 sq ft additional commercial space * Mumbai: Jeweller Gitanajali Gems plans to develop 100,000 square feet of commercial real estate in addition to the 400,000 square feet land it is already developing in Mumbai’s suburbs, managing director Mehul Choksi said on Monday. “All of this land is what we own and we have factories on this. We are moving out our factories out of the city and are unlocking the value. All of this will be developed into commercial real estate,” he told reporters. The company expects to earn Rs1,250 crore in revenue in the current fiscal from the development of 100,000 square feet in Andheri in western Mumbai, he said. Gitanjali currently has 400,000 square feet of land in Andheri. The firm is already developing 400,000 sq ft in Borivli, another suburb in western Mumbai, which is expected to yield around Rs3,750-4,000 crore revenue in the current fiscal, Choksi added. At 11:40 a.m., shares in the firm were down 1.14% at Rs143.25 in a Mumbai market that was up 0.4%. Source: Home - Livemint.com | 12 Jul 2010 | 12:32 am Fin secy sees double-digit industrial growth in FY11NEW DELHI (Reuters) - India's industrial output is expected to maintain double-digit growth in the current 2010/11 fiscal year, Finance Secretary Ashok Chawla said on Monday.Source: Reuters: Money News | 12 Jul 2010 | 12:13 am Rupee eases as data disappoints; stocks eyedMumbai: The Indian rupee reversed direction and weakened in late morning trade on Monday after data showed India’s factory output in May rose at a much slower-than-expected pace lagging analysts’ and market forecasts. At 12:00pm, the partially convertible rupee was at Rs46.73/74 per dollar, weaker than Friday’s close of Rs46.66/67. The unit had earlier risen to as much as Rs46.61. India’s industrial output grew at a slower-than-expected 11.5% from a year earlier, but expectations of a central bank rate hike for the second time this month remain unchanged due to inflationary pressures. Indian shares climbed to their highest in more than three months on Monday, with Infosys Technologies racing to an all-time high for the second session ahead of its earnings, but trimmed gains following the factory data. Gains in other Asian currencies however underpinned rupee sentiment. The index of the dollar against six majors was 0.5% higher and would be watched for direction, dealers said. One-month offshore non-deliverable forward contracts were quoted at 46.96, 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 Rs46.8450, with the total traded volume on the two exchanges at about $1.4 billion. Source: Home - Livemint.com | 12 Jul 2010 | 12:13 am Industry grows by 11.50 pc in MayIndustrial output rose by 11.5 per cent in May, growing in double digits for the eighth straight month, on good showing by manufacturing, particularly capital and consumer goods.Source: HindustanTimes.com - Top Business News Headlines | 12 Jul 2010 | 12:09 am May industrial output up, but below forecastNEW DELHI (Reuters) - India's industrial output grew at a slower-than-expected 11.5 percent from a year earlier, but expectations of a Reserve Bank of India (RBI) rate hike for the second time this month remain unchanged due to inflationary pressures.Source: Reuters: Money News | 12 Jul 2010 | 12:02 am Vegoils: Fundamentals point to bearish phaseLast week, crude palm oil futures (July contracts) fell below the crucial support of 2,330 Malaysian ringgits (MYR) or $730 a tonne on Bursa Malaysia or the Malaysian DerivativesSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am All eyes on panel report on Hyundai workers' dismissalIn about a week's time, the fate of the 35 workers who were dismissed by Hyundai Motor India, over which a section of the workers went on a strike, would be known when a six-member committee finalises and submits itsSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am New Delhi's distance from IndiaOn the evening of the nation-wide shut-down call by the opposition parties last Monday, a prominent news channel found that 68 per cent of its viewers, responding to its inquiries on the bandh, called it a “wake-up call”, while someSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am Narrow movement seen for SAILI have 5 lots AB Nova at an average price of Rs 860. Should I hold this or exit to minimise loss? - V.T. ThomasSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am One in five equity schemes beats 2008 peaksThe bellwether stock indices may still be struggling to go beyond the peaks reached in January 2008 (they are roughly 16 per centSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am IFRS transition could be costlier for unlisted cosThe transition to International Financial Reporting Standards (IFRS), from the Indian Accounting Standards, effective April 1, 2011, would require companies to incur direct and indirect costs in areas such as training employees, hiringSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am Gold futures may test resistanceComex gold futures ended higher on Friday on bargain hunting, but gains were limited. For now, $1,185-1,215 an ounce seems to be the range that gold will continue to trade until there is something offering gold, greater direction. A recoveringSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am Day Trading GuideThe stock gained almost 5 per cent accompanied with good volume on Friday. We recommend a buy with stop at Rs 287Source: Business Line - Home Page | 12 Jul 2010 | 12:00 am Ahmednagar Forgings (Rs 128.7): BuyInvestors with medium-term horizon can consider buying the stock of Ahmednagar Forgings. After recording a multi-year low of Rs 19.9 in November 2008, the stock started to trend upwards. Since then, the stock has been on an intermediate-termSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am Bank deposit growth slackensApart from the developments in the Euro zone, which continue to cast a shadow over the stock market, there could be trouble from the liquidity situation, in the face of bank deposit growth slowing and lending pickingSource: Business Line - Home Page | 12 Jul 2010 | 12:00 am Spain grab World Cup with extra-time goalJohannesburg: Spain midfielder Andres Iniesta’s nerveless finish in extra time delivered a knockout blow to Netherlands in a bruising final to clinch a 1-0 win and their first World Cup triumph at the first African finals. With a shootout looming, the peerless Iniesta controlled a ball from substitute Cesc Fabregas four minutes from time and found the coolness that had eluded forwards on both sides to fire the ball past the helpless Maarten Stekelenburg. The Dutch, who ran fuming to referee Howard Webb convinced the goal was illegal on at least two counts, were already down to 10 men following John Heitinga’s red card seven minutes earlier and there was little realistic hope of a comeback. Spain succeeded in keeping their opponents at arm’s length and their players wept with joy as they celebrated becoming the first European team to win the World Cup on another continent and the first to triumph after losing their opening game. “Euphoria, joy, everything positive,” Spain midfielder Xabi Alonso told reporters. “The only thing that counts in finals is to win them.” There followed a firework celebration but the soccer itself had fizzled rather than sparkled as Spain became the lowest scoring team to win the World Cup. They managed only eight goals in their seven games — three fewer than the previous lowest total in a winning campaign. For the Dutch, who knocked Spain out of their cultured stride for long periods and should have taken the lead with one glorious chance for Arjen Robben in the second half of normal time, defeat was an all too familiar disappointment. While Spain were triumphant in their first final, the Dutch have now lost three, following defeats in 1974 and 1978. Brutal tackling The Dutch tactic on Sunday was clearly to frustrate the superior Spanish midfield with some brutal tackling. There were 13 yellow cards as well as the red, eight of the cautions for the Dutch and five for Spain, who got dragged into a street fight in front of a raucous crowd when they would have preferred a more gentlemanly contest. So a match billed as one for the purists turned out to be anything but — it was tense, bad-tempered and had little of the skill the two technically accomplished sides had demonstrated throughout the tournament. Spain briefly showed some of the precision passing and artful movement that made them such worthy European champions two years ago, Xavi, Iniesta and forward David Villa combining effortlessly in what was a nightmare start for every Dutch fan. The standard was soon a distant memory, though, as the rest of the first half degenerated into an ugly affair. Bert van Marwijk’s Netherlands side had chances to take the lead, notably when Robben cut in and tested Spain’s captain and goalkeeper Iker Casillas with a low shot to his near post. Robben missed a better chance from Wesley Sneijder’s precise pass, Casillas saving with a foot, and the winger appeared to be manhandled by Carles Puyol when racing through again. Robben stayed on his feet when he might have gone down. Centre-back Puyol, already yellow-carded, escaped what might easily have been a sending-off and Spain breathed again. More dangerous The Spaniards had been creating a few problems themselves following the introduction of Jesus Navas for Pedro after an hour and they looked even more dangerous once Fabregas replaced Xabi Alonso towards the end of normal time. However, Fabregas missed a great chance to put Spain ahead when Stekelenburg made a vital save in an echo of Robben’s earlier miss before central defender Heitinga’s sending off finally tilted the game Spain’s way late in extra time. With forwards on both sides failing to deal with the intense pressure, it was almost inevitable that it would fall to a midfielder or defender to break the deadlock. Iniesta, a candidate for player of the tournament, found the calm head and dead aim required to settle the match. The Dutch were angry there had been no offside call and could not understand why a deflected free kick moments earlier had not resulted in a corner in their favour. English referee Webb waved away their claims and was booed by the huge orange-clad contingent in the crowd, scarcely able to believe they had come so near and yet so far once again. “That decision should have been a corner for us,” said Netherlands midfielder Nigel de Jong. “The goal resulted from the next attack. That’s football. We’re very disappointed.” Victory sees Spain join Brazil (five times winners), Italy (four), Germany (three), Uruguay (two), Argentina (two), England and France as world champions and they are only the third side to hold the European Championship at the same time. They were not able to produce the metronomic passing of previous performances but that scarcely matters to the millions of fans back home who were ecstatic that their team of talents had finally made an indelible mark on the World Cup. Source: Home - Livemint.com | 11 Jul 2010 | 11:53 pm May industrial output up 11.5%, maintaining rate pressureNew Delhi: India’s industrial output grew at a slower-than-expected 11.5% from a year earlier, but expectations of a central bank rate hike for the second time this month remain unchanged due to inflationary pressures. Factory output rose in double digits for the eighth straight month in May, helped by robust domestic consumer demand, expanding exports, and higher infrastructure spending. The median forecast in a Reuters poll was for an annual rise of 16%. The Reserve Bank of India (RBI) is widely expected to raise rates by another 25 basis points at its policy review on 27 July, after it surprised markets early this month with a quarter-point rate hike. The partially convertible rupee eased to 46.70/71 per dollar, from 46.66/67 just before the factory data. It had closed at 46.66/67 on Friday. The 10-year bond yield edged lower to 7.61% from 7.63% before the data. It had closed at 7.65% in the previous session. Manufacturing production in Asia’s third-largest economy rose 12.3% in May from a year earlier, while mining output was up 8.7% and power generation rose 6.4%. Production of capital goods rose 34.3% year-on-year after an annual rise of 72.8% in April, while consumer durables output grew 23.7%, down from a 37% rise in the previous month. Indian economy is forecast to grow 8.5% in the current fiscal year that started on 1 April, after expanding 7.4% last year. Inflationary Pressure But, a robust economic growth is also seen stoking demand-side inflationary pressures. Most central banks in Asia have now started tightening monetary policy as inflation is beginning to become a major worry in a region that leads the world in recovering from the global crisis. On Friday, the Bank of Korea raised interest rates for the first time since the outbreak of the global financial crisis, joining regional peers from Australia, New Zealand, India, Taiwan and Malaysia in the campaign to return policy to pre-crisis mode. In India, the RBI has raised rates thrice by a total of 75 basis points since mid-March to battle against headline inflation that stood at 10.16% in May after hitting 11.04% in March. The government’s decision to free up petrol prices and raise other state-subsidised fuel prices is expected to further stoke inflationary pressures and immediately push up headline inflation by around one percentage point. Source: Home - Livemint.com | 11 Jul 2010 | 11:42 pm Oil holds above $76 in Asian tradeNew York's main contract, light sweet crude for delivery in August, was up six cents at $76.15 a barrel and Brent North Sea crude also for August gained three cents to $75.45.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 11:32 pm Rupee gains 4 paise against dollar in early tradeDealers said the rupee strengthened against the US currency after fresh capital inflows by foreign funds into equities and gains in other Asian currencies against the dollar.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 11:30 pm Sensex up 0.9%; Infosys hits all-time highMumbai: The Sensex climbed to their highest in more than three months on Monday, with Infosys Technologies racing to an all-time high for the second session ahead of its earnings. Firmer Asian markets, expectations for robust factory output growth due around 11 a.m. and hopes for upbeat quarterly earnings bolstered investor confidence. “There is good momentum with earnings season round the corner. People are optimistic about June quarter results,” said Kunal Sukhani, manager of institutional equities at Asian Markets Securities. Infosys, the second-largest software exporter, rose as much as 1.4% to Rs2,911.55, its highest, on expectations it would raise its dollar revenue forecast for the full year when it unveils results on Tuesday. Rivals Tata Consultancy Services and Wipro rose 1.3% and 0.8% respectively. By 10:51 a.m., the 30-share BSE index was trading up 0.87% at 17,998.47, with 25 of its components gaining. It rose to 18,010.07 early, its highest is more than three months. The benchmark is up 2.9% so far in 2010, with foreign funds investing a net of $6.8 billion in Indian equities. In 2009, foreigners had bought a record $17.5 billion of stocks and powered the index up 81%. Factory output in May probably rose 16% from a year earlier, lower than an annual growth of 17.6% in April, a Reuters poll showed. Commerce and industry minister Anand Sharma said on Friday India’s gross domestic product growth is expected to return to “9% plus” this year, led by strong corporate performance and rising savings levels, is also expected to support sentiment. Financials led the gainers on expectations of a pick up in loan demand. Top lender State Bank of India rose 0.5% while rivals ICICI Bank and HDFC Bank were up 1.2% and 1.8% respectively. Mortgage lender Housing Development Finance Corp climbed 1.5%. In the broader market, gainers were thrice the number of losers with 123 million shares changing hands on the BSE. The 50-share NSE index was up 0.8% at 5,392.55. Source: Home - Livemint.com | 11 Jul 2010 | 11:27 pm Rupee inches up as shares start stronger - Economic Times
Source: Business - Google News | 11 Jul 2010 | 11:06 pm Sensex surges 153 points in early tradeThe broad-based National Stock Exchange index Nifty gained 40.65 points, or 0.75%, to 5,393.10.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 10:49 pm Oil hovers at $76 after China trade dataTokyo: US crude oil futures hovered at around $76 a barrel on Monday as China’s bigger-than-expected trade surplus in June eased worries about a slowdown for the global economic recovery and oil demand. Chinese exports in June rose 43.9% from a year earlier, while crude imports in the world’s second-largest energy user rose by a quarter to hit a record high above 22 million tonnes. Crude for August delivery was trading down 13 cents at $75.96 a barrel by 0445 GMT, after closing last week with a gain of more than 5% — its biggest jump since the week to May 28. Crude hit an intraday high of $76.48 on Friday, the highest since 30 June. “Because oil closed higher than expected last week, we are seeing some short-covering in Asia,” said Ken Hasegawa, a commodity derivatives sales manager at broker Newedge in Tokyo. “Amid a lack of major news in particular, I have to attribute the rise to China data.” US crude remains below a 19-month peak above $87 reached in early May, having rebounded sharply from a trough below $65 on 20 May. London Brent crude was trading 17 cents lower at $75.25 a barrel. Stock markets in Asia edged higher, after the best week in a year for US equities. The driver this week will be quarterly earnings, which kick off on Monday with the results of aluminium producer Alcoa. US June retail sales data due on Wednesday will be pivotal to gauge the country’s economic recovery, Stephen Schork, president of energy advisory firm the Schork Group, said in a note. “If we are to see serious gains from the bulls this week, we will need to see strength in equities, strong retail sales figures and a weaker dollar would not hurt,” he said. The yen eased on Monday after election results showed political uncertainty lay ahead for Japan after a poor showing for the ruling party in upper house elections. Weather forecasters reported no new signs of foul weather brewing that could hit the Gulf of Mexico, after Tropical Depression No.2 hit Mexico’s coast near the border with Texas on Thursday, missing energy production platforms. Source: Home - Livemint.com | 11 Jul 2010 | 10:24 pm Fare wars to block profit flight -- againA senior airline executive, who did not want to be named, said "irrational fare competition" continues to keep yields low even as load factors have soared to record levels in recent months.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 4:44 pm Analysts presage cement firms booking losses in June-SeptThey believe that South-based companies can face losses for the second quarter after the dream run they had in the last 3 years.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 4:19 pm Solar companies struggle for fundsDespite solar energy being seen as a low hanging fruit by many developers, the solar PV companies are finding it hard to get funding for their projects.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 4:16 pm Yields will fall post inflation dataWPI inflation seen touching 11% for June on the back of a rise in the fuel price index.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 4:09 pm Direct taxes code will make NPS even betterThe post-retirement safety tool enables capital protection and provides growth opportunities.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 3:55 pm Taxman says many companies don't comply with TDSIt's all in the TAN number, according to S S N Moorthy, chairman of the Central Board of Direct Taxes.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 3:36 pm Topping 5380 would mean Nifty 5470Very low implied volatility means traders are confident of upmove.Source: Daily News & Analysis: Money News | 11 Jul 2010 | 3:29 pm Sensex futures to trade on Deutsche BorseIndias benchmark equity index, the Sensex, will soon be available for trading outside the country. The Bombay Stock Exchange (BSE) is in the process of listing Sensex futures on Europes largest stock exchange by market value, the Frankfurt-based Deutsche Borse AG.Source: Business Standard | Front Page Headlines | 11 Jul 2010 | 1:16 pm Tax code change to hit payeesDTC likely to apply highest rate at a much lower slab than the proposed Rs 25 lakh.Source: Business Standard | Front Page Headlines | 11 Jul 2010 | 1:12 pm PPSS rejects Posco package, vows to intensify stir - Business Standard
Source: Business - Google News | 11 Jul 2010 | 12:37 pm Sebi wants MFs to charge single levyMumbai: The Securities and Exchange Board of India, or Sebi, is set to ban asset management companies (AMCs) from launching multiple investment plans catering separately to different classes of investors under a single scheme, in a move that could alter the country’s investment landscape. A Sebi official, who did not want to be named as he’s not authorized to talk to the media, told Mint that the regulator will not allow any AMC to launch such multiple plans under one fund going forward, to ensure that fund houses give up the practice of levying different expense structures for different categories of investors.  Graphic: Ahmed Raza Khan / Mint Liquid funds and liquid-plus funds (later renamed ultra short-term funds) typically have separate plans under single schemes. The charges are different under different plans, though the portfolio under the scheme remains the same. The move may administer another shock to the Rs6.75 trillion mutual fund industry, already reeling from the ban on entry loads imposed in August. Nearly Rs3.5 trillion, or 50% of the industry’s assets, are managed under liquid and liquid-plus schemes. “Sebi wants AMCs to stop launching different plans with non-uniform expense structures under a single scheme,” the official said. “Single-plan schemes with single expense structures are required to ensure that there is no discrimination between small and big investors.” Recently, the regulator sent letters to the AMCs, saying, “It is observed that some mutual fund schemes have different expense structures for different investor classes, e.g. retail/institutional/super-institutional plans, while there are other schemes that charge a single expense structure for the scheme. This practice has led to concerns of subsidization of one investor class by another and charging of different fees for managing the same portfolio of securities.” The letter adds, “In light of these concerns, we are in process of reviewing different expenses charged within the same scheme with same portfolio.” Experts said Sebi’s move will hurt the profitability of fund houses, significantly impact the commissions of distributors, and may also disincentivize large institutional clients who have parked money across hundreds of liquid and liquid-plus schemes. Liquid and liquid-plus schemes are those where the corpus is allocated in short-term papers and money market instruments such as certificates of deposit, commercial paper, pass-through certificates, and collateralized borrowing and lending obligations. Maturities range from overnight to 90 days, and give 3.75-5% returns. Institutional investors park money in such schemes to benefit from tax arbitrage. Officials at three AMCs said that Sebi restrained them from launching separate plans under ultra short-term funds when they approached the regulator in recent months for filing offer documents. “Sebi refused to approve multiple plans under a single scheme when we approached them with offer documents for a liquid fund and an ultra-short term fund. So, we’ve launched the liquid scheme with a single plan,” said the official at one of the three AMCs. Officials at the other two AMCs said, “Sebi wants single plans with single expense structure under a given scheme.” All existing schemes with multiple plans will also be required to conform to the new norms, and do away with varying expense ratios. According to the CEO of a foreign AMC, if fund houses are forced to launch single plans under single schemes, all class of investors will be required to pay the same expense ratio under a given scheme. “To have a single expense ratio structure, retail investors will be required to pay much lower than what they are paying now and large institutional investors will be required to pay higher than what they are paying now,” he said on condition of anonymity. If institutional investors are required to pay higher expenses, it may lead to huge outflows of institutional money parked in liquid and liquid-plus schemes. On the flip side, it may attract more retail investors as they will be paying lower expense fees. With average maturities narrowing after 1 August when new valuation norms for debt funds come into force, a lower expense ratio will bode well for retail investors. Following Sebi’s move, AMCs may hike the minimum investment for such schemes to avoid paying high distribution commission for small ticket-size plans. Also, exit loads may be imposed for ultra short-term funds to attract long-term money from the investors. “Sebi wants us to bring more retail investors into such liquid and liquid-plus schemes. Lower expense ratio will ensure this,” said the chief marketing officer at a domestic fund house. Most of the officials did not want to be identified as the matter involves the regulator and is sensitive. Typically, AMCs launch liquid and liquid-plus schemes with three different plans—retail, institutional and super-institutional. While retail plans cater to the small investor who can invest as low as Rs5,000, institutional plans cater to large investors that can invest Rs50 lakh to Rs5 crore. Super-institutional plans cater to those who can invest over Rs5 crore. These three plans have three different expense ratios, the charge that AMCs levy on investors, on an annual basis, for managing their money as well as other costs such as brokerage, fees paid to the fund’s registrar and transfer agent (RTA), bank charges, custody charges, trustee fee, distributor charges, etc. Sebi’s concern is over the practice of charging retail investors more than large investors. While retail plans typically charge an expense ratio of 60-70 basis points (one basis point is one-hundredth of a percentage point) annually, the institutional plan levies a charge of only 40-50 bps. Investors in super-institutional plans pay only 25-30 bps. Most of the liquid and liquid-plus or ultra short-term schemes have a large difference in the cost structures of retail and super-institutional plans. For instance, in the HSBC Ultra Short Term Bond Fund, the institutional-plus plan charges an expense ratio of 0.4%, as against 1.05% under scheme’s institutional plan, and 1.3% under the retail plan. Under all such schemes, only about 10 bps account for expenses against RTAs, bank charges, custody and trustee fees combined. The rest is shared between the AMC and its distributors, with most of the money going to the distributors. The regulator may issue new norms banning multiple plans under a single scheme shortly after gathering feedback from the industry. anirudh.l@livemint.com Source: LatestNews-Home - Livemint.com | 11 Jul 2010 | 11:13 am Food bill: NAC asserts itselfFew things have been as contentious between the Congress-led coalition and the Congress party as the contours of the proposed Food Security Act. Later this week, a crucial facet of this debate, extending the scope to the entire population instead of only those living below the poverty line (BPL), is likely to be settled at the meeting of the National Advisory Council (NAC) scheduled for 14 July. Also Read Anil Padmanabhan’s earlier columns The battle lines of the debate have already been drawn. Providing universal food security was an electoral pledge made by the Congress before the 2009 polls, which it won handsomely. However, the initial draft of the Bill put out by the United Progressive Alliance (UPA) maintained, in view of the fiscal constraints, that this would be restricted to those living below the poverty line. Predictably, Congress president Sonia Gandhi and also now chairperson of NAC—the conscience keeper of the UPA —rejected the Bill in this form, forcing the government to set up an empowered group of ministers (eGoM). The eGoM in turn asked the Planning Commission to rework the contours of the draft Bill. The new draft Bill seeks to bridge the political ground by accepting in principle the concept of universalization, but, however has dug its heels in by arguing that it should be based on differential pricing—one for BPL families and another for above the poverty line (APL) segments of the population—and a cap of 25kg per household (while several state governments are already providing 35kg). It also proposes to index prices of foodgrains distributed through the public distribution system (PDS), both for the poor and those living, to the minimum support price (MSP)—the floor price offered to farmers after harvest—and determine entitlement on a per capita basis. It has also proposed, with a view to avoiding leakages, the PDS should shift towards a smart-card-based system that ties in with Aadhaar, the government’s programme to provide a unique identity to all residents. It is their argument that since the identity is based on biometric verification, it would eliminate the problem of bogus cards. Whether Aadhaar can be a fix or not is not clear, but the fact is that while the official estimate of BPL households is 65.2 million, state governments have issued as many as 112 million BPL cards. Though the new draft Bill is a step forward, a compromise on the contours of the Food Security Act is not apparent. It is still in the nature of a polemic. In the last one week, two opeds, one in The Indian Express on 7 July and another the following day in The Hindu captured this divide. The Indian Express piece was written by T. Nandakumar, former secretary in the ministry of agriculture, and the one in The Hindu was by Jean Drèze, a key member of NAC. Nandakumar, in what is evidently a strong defence of the establishment view, argued that consumer subsidy of universalization on the exchequer could add up to Rs120,000 crore —three times of what the government has set aside for its marquee rural employment guarantee scheme. Saying that universal PDS was not “feasible”, the former bureaucrat, maintains that there would be leakages “and the squeezing of private trade could adversely affect farmers’ incomes and agricultural growth.” In a rejoinder as it were, Drèze, makes out a politically compelling case for universalization even while underlining the risks of “exclusion” errors while pursuing targeting—through differential pricing and Aadhaar—as proposed in the new draft Bill. “Every family will have food assured in the house, month to month. Gone will be the days of cold hearths and empty stomachs. For those at risk of hunger, the PDS will be a lifeline.” After this, it is a no-brainer as to which way NAC will go. But, at the same time, there is a line in Drèze’s piece which suggests that the resistance from the government is serious. This is apparent when he concedes that there are “resource constraints”, but then very cleverly suggests that the programme should, like the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), be restricted only to the poorest 200 districts initially. However, if the programme is successful, it is very unlikely that the government will be able to contain it at this level. And by then, closer to the next general election, NAC, particularly its political leadership, will be less amenable. To be sure there is still some way to go before the idea of food security can be implemented. This is because, operationally, it is linked to the BPL census that will conclude only by next March. At the same time, the government is yet to arrive at a final consensus on the contours of the Food Security Act. It is likely though that by the end of the year the draft legislation should be ready to be introduced in Parliament—where it is unlikely to face any serious opposition. Once in place, it would put India in enviable territory. After having already provided employment as an entitlement in rural India, followed up with a right to education, it would be very impressive if it managed to provide universal food security. In a country burdened by nearly 500 million poor, this is an idea whose time has come. Anil Padmanabhan is a deputy managing editor of Mint and writes every week on the intersection of politics and economics. Comments are welcome at capitalcalculus@livemint.com Source: LatestNews-Home - Livemint.com | 11 Jul 2010 | 11:12 am Bitten by the e-bugA breather in the middle of a “Big Fat Indian Wedding” in Italy and I’m relaxing at the piazza with a glass of Brunello, Pecorino and olives, watching the world go by. A fellow guest, a media professional from Mumbai, wanders past and sits down, and the conversation drifts from wedding gossip to the IPL drama and other matters of national importance before he comes to the point. In his late 40s, he’s successful, aggressive, has a role with Asia-Pacific responsibility and is now itching for action; he’s been bitten by the entrepreneurship bug and is considering chucking his job and setting out on his own, in a related space. So what do I think? I counter-question him: But why? We discuss the pot at the end of the rainbow and we agree that now companies do afford a reasonable opportunity to create enough wealth to afford a home in Alibaug and shopping at the Ponte Vecchio, but perhaps not what he calls “serious money”. Is it a desire to make his mark on the world, and the belief that his business idea will be transformational? Or does he want to be the master of his own destiny, to be his own boss, to build something? Does he want to be free from corporate shackles, to prove that he can do it? Or perhaps, is it just the good old-fashioned desire to better-thy-banker-neighbour, who listed at the peak of the capital market boom? Well, all are good reasons. We run through the big idea, whether it’s been done before, the market potential and what’s different. Why he is well positioned, well skilled to take this on and why now, when his star is rising and his credibility is high, is this potentially the best time to do it. We take a realistic look at roadblocks—regulatory, competitive and financial. We discuss the potential, the cash flows, the value versus valuation proposition, the base business plan. He reveals that he’s had initial commitments around base funding. Six months ago. And yet he is still on the fence. So then, why doesn’t he make the leap? Clearly, there is risk. Of losing one’s shirt, of not being able to scale up, of running out of money, of the economy tanking again, of a “big brother corporation” copying the idea and blowing him out of the water. Perhaps, more importantly, given his position, the social and possibly very public risk of failure. Then there is the lifestyle change, I remind my friend. Club class travel, red carpet events, business club memberships, the World Economic Forum passes. And the risk that he may not be able to climb back on the carousel, if it doesn’t pan out. Does he find this conversation scary or inconsequential? Given that he has the management breadth and the industry knowledge, does his own core skill really lie in galvanizing and growing large corporate platforms and doing big-ticket deals or could he bootstrap, readjust himself to a small company or a start-up mindset? Does he have the self-confidence and the discipline? His family’s support? The ability to weather the loneliness of the journey? But most importantly, I asked him to look within and assess if he had an entrepreneur’s DNA, that bug, the burning desire? The sheer bloody-mindedness and doggedness that it takes to keep believing when the chips are down, to get up and rejig, rebuild, try again—or know when to quit? While he clearly wants to operate independently, was he ready to also carry all the responsibility and risk? Could he carry people, make them believe the dream? The acceptance that there would be no work-life balance, that work would became life if he become an entrepreneur? I told him of an entrepreneur I first met in the early 1990s, when he ran a small clothing store with a funny name, who described his grand plan to me at a coffee shop. At first I was sceptical—shopping malls, department stores, discount stores in India, and him? And then, as he drew out his dream, eyes shining, I began to believe that if anyone could do it, he could. And almost a decade later, when he called to say he was ready to hire professionals, we were right there. However, it took him 15 years, in a booming—and protected—market to become the king of retail. I asked my friend if he had the patience, the planning skills and the energy for that? There are no right answers to my quiz, but as they say about those Fratelli shoes across the piazza, if you have to ask, you probably can’t afford them. If all these questions don’t sit well, then you’re probably not yet ready to become an entrepreneur. And that’s not necessarily a bad thing at all. But the dholkis are sounding out at the Duomo, so that’s for another time. Sonal Agrawal is chief executive, Accord Group, an executive search firm. Write to Sonal at careercoach@livemint.com Source: LatestNews-Home - Livemint.com | 11 Jul 2010 | 11:01 am India moves closer to Iran over Afghan concernsNew Delhi: Wary of Pakistan’s increasing influence in Afghanistan, India is tweaking its foreign policy and growing closer to Iran in a bid to protect its strategic stakes in the war-ravaged nation.  Boosting relations: External affairs minister S.M. Krishna looks on as minister for new and renewable energy Farooq Abdullah (right) and Iranian minister for economic affairs and finance Seyed Shamseddin Hosseini (left), sign an MoU on cooperation in new and renewable energy on Friday. Kamal Singh / PTI India hosted an Iranian delegation led by finance minister Seyed Shamseddin Hosseini last week, and signed bilateral pacts on energy, air services and anti-terror cooperation. New Delhi also used warm words to describe ties with Iran and publicly admonished the US for imposing a new set of economic sanctions on the Islamic Republic. Foreign secretary Nirupama Rao, in a speech to Indian and Iranian think tanks, spoke of the “unique” civilizational ties between India and Iran before highlighting shared strategic interests. “If we consider the specific areas where our interests converge and potential for cooperation is the greatest, the most important is regional stability,” she said, adding energy and maritime security to the list of common interests. Ties between India and Iran had cooled in recent years due to New Delhi’s warming relations with Washington. India angered Iran by voting alongside the US and its allies at least twice to censure Iran on its controversial nuclear programme at the International Atomic Energy Agency. So Rao’s rebuke to Washington for a separate set of strictures against Iran last week, on top of UN sanctions, came as a surprise. A senior foreign ministry official, requesting anonymity, described this as “recalibration” of policy—a nuanced change allied to the “scenario unfolding in Afghanistan and India’s determination to secure its national interests”. But former ambassador to Washington Lalit Mansingh said Rao’s remarks were an indication to Washington that “there are certain red lines they cannot push us beyond” and of the “importance of Iran in India’s Afghani plans”. “India and Iran can play a big role (together in Afghanistan) if they join hands. It is not in Iran’s interest to have the Taliban dominate Afghanistan. Logic dictates that Iran cooperate with India,” Mansingh said. Rao’s comments also signal that “India is ready to be considered a global player, in the big league”. That has been the thrust of India’s foreign policy for more than a decade, he said. “Part of that role is in India’s extended neighbourhood—Afghanistan.” India’s moves to improve its relations with Iran are understandable as it tries for “a flexibility in relation to its options vis-a-vis Afghanistan,” said Rahul Roy-Chaudhary, senior fellow for South Asia at the London-based International Institute for Strategic Studies (IISS), in emailed comments. In recent months, New Delhi has been feeling left out despite its $1.3 billion (Rs6,084 crore) assistance to rebuild Afghanistan since the overthrow of the Taliban by US-led forces in November 2001. While India and the US, which has 140,000 troops fighting a resurgent Taliban in Afghanistan, agree on the need to defeat the Taliban and strengthen democracy, there are differences on how to achieve this. “India is keen that US forces stay on in Afghanistan... There are differences on the growing influence of Pakistan in Afghanistan in terms of its links with the Afghan Taliban… and, on occasion, differences over India’s role in Afghanistan, with elements in the Pentagon (US defence department) seeking a reduced Indian role to placate Pakistani sensitivities,” Roy-Chaudhary said. Pakistan, whose military spy agency Inter-Services Intelligence (ISI), is alleged to have channels of communication with the Taliban, has offered to broker a power-sharing deal between the group and the US-backed regime in Kabul. This will end the war in Afghanistan and allow battle-weary troops from the US and other countries to return home beginning July 2011—a key US foreign policy goal. But the return of the Taliban—with links to the ISI and the larger ruling establishment in Islamabad—to power in Kabul is not how India wants the war to end. New Delhi has bad memories of the earlier Taliban rule, when Afghanistan was used as a base for training camps for militants fighting in Kashmir. That the India-friendly Afghan President Hamid Karzai has also been recently lending a ear to senior Pakistani military and intelligence officers is worrying New Delhi. Hence the call by Rao to have “structured, systematic and regular consultations with Iran on the situation in Afghanistan”. “Neither of our countries wish to see the prospect of fundamentalist and extremist groups once again suppressing the aspirations of the Afghan people and forcing Afghanistan back to being a training ground and sanctuary for terrorist groups. Our vision of Afghanistan as a hub for economic activity, trade and transit linking south and central Asia is shared by the Iranian side,” she said. India is developing Iran’s Chabahar port project, which will link the India-built Zaranj-Delaram highway in Afghanistan. This will open up an alternative trade route for India and Afghanistan to access each other’s markets—other than through Pakistan—besides transporting Indian goods further to Central Asia. Should India and Iran team up again, it could be a repeat of the cooperation between the two between 1996 and 2001, when the Taliban controlled Kabul. Shia-dominated Teheran shares uneasy ties with Sunni-majority Pakistan and its pro-American military. It is also wary of Islamabad’s close ties with Saudi Arabia besides being opposed to the Taliban after the 1998 killing of many of its diplomats in Afghanistan. But some are sceptical about whether the same degree of cooperation is possible a decade since then. “Today, India’s top foreign policy priority is its relationship with the US which is not acceptable to Teheran,” IISS analyst Roy-Chaudhury said. “In effect, it is unlikely that India will cooperate with Iran in a manner that makes it difficult for the US to operate in Afghanistan.” elizabeth.r@livemint.com Source: LatestNews-Home - Livemint.com | 11 Jul 2010 | 11:00 am RIL may take WiMax route to offer broadband servicesMumbai: As an “interim measure,” Infotel Broadband Services Pvt. Ltd, the vehicle that will launch billionaire Mukesh Ambani’s dream project to offer broadband services across India, may opt for WiMax as the core technology and not LTE, two persons involved in the discussions said. This is at a time when telecom operators in India are trying to choose between worldwide interoperability for microwave access (WiMax) and long-term evolution (LTE) as the core technology for offering wireless broadband services. Both technologies are backed by strong lobbies. Intel Corp., which makes electronic chips for WiMax-enabled phones or laptops, has been backing WiMax, while Qualcomm Inc. that makes chips for LTE-enabled devices, has been betting on LTE. In India, where broadband penetration is less than 1% and the subscriber base is a mere nine million, a service provider’s choice of technology means mass market opportunities for such companies. After Reliance Industries Ltd (RIL) acquired a 95% stake in Infotel for Rs4,800 crore, it was expected the company would tilt towards LTE, a promising technology that’s still evolving. A spokesperson for RIL declined to comment on Mint’s queries. However, at an analyst conference, a senior RIL official had given a sense of how the company would place its orders, a move that is being watched by rivals as well as global hardware suppliers. “We will adopt a technology, which can alternate between WiMax to LTE,” the official told analysts at a conference, a day after the company swept rival bids and won a government organized auction for spectrum for broadband wireless access in 22 circles. One of the contenders wooing Infotel is South Korea’s Samsung Electronics Co. Ltd. A week after Infotel won the bids, Samsung sent a senior official from South Korea to renew old connections at RIL. The official is said to have worked with the old team— Manoj Modi and Jyotindra Thacker at Reliance Infocomm Ltd—before the business moved into the Anil Ambani fold and was renamed Reliance Communications Ltd. Samsung, one of the leading vendors at that time, supplied the first CDMA handsets along with LG when the company launched mobile operations in India. Vendors such as Samsung are offering a commitment to allow the migration of WiMax seamlessly to LTE once the technology matures. “LTE is a technology that is a future technology. It is expected to come in two years. What is available today is WiMax,” said Hung Song, vice-president, global sales and marketing, telecom systems, Samsung Electronics. “The answer is a natural progression.” Companies such as Samsung and China’s Huawei Technologies Co. Ltd expect the assurance of seamless integration will be attractive for RIL. Companies such as Samsung are active in LTE development, including trial networks, Song says. The company is the only device provider for the technology for companies such as TeliaSonera of Norway, he said. TeliaSonera rolled out the first commercial mobile broadband network using LTE technology in late 2009. Sweden has also introduced services using LTE technology. NTT DoCoMo Inc., the largest telecom operator in Japan, and Verizon Wireless, one of the largest carriers in the US, are both set to follow by December. AT&T Inc. has awarded equipment contracts to Alcatel-Lucent and Ericsson for LTE commercial deployment in the US in 2011. Song’s colleague, Deepak Bhatnagar, vice-president, network business at Samsung Electronics’ Indian subsidiary, who’s been interacting with Reliance for more than a decade, said his company was an active partner in some of the governing bodies setting LTE standards. “The point with LTE is the question of timing, whether you can get technology today with a ready-made ecosystem (handsets and routers),” he said. For this reason, LTE is not ready to be rolled out commercially. “WiMax has come along in five years, while GSM technology has taken over 10 years to stabilize and 3G took almost five years. It takes five years for any technology from simulation to commercial roll-out,” Bhatnagar said. Mobile WiMax has a stable ecosystem (with Wi-Fi routers and handsets) as it started in 2003 and South Korea was among the first countries to launch services in 2006. Still, an RIL press statement did mention LTE as the technology with better spectral efficiency. “When a person like Mukesh Ambani, chairman of Reliance Industries, talks, he is referring to his vision, which is 10 years ahead of others,” said Bhatnagar. “Ten years later, everyone will talk LTE, including us. Among the other big issues going against LTE would be capex for a technology that is still progressing.” Other Indian operators haven’t picked the system they will use, probably waiting for RIL to make a move. “We are still evaluating both technologies and haven’t made a final call yet,” said Gurdeep Singh, chief operating officer of Aircel Ltd. Aircel has a licence to offer wireless broadband in eight telecom circles. Tikona Digital Networks Pvt Ltd, which has licences for five telecom circles, also hasn’t made its choice. Mint reported last week that Tikona plans to choose the same technology that RIL’s Infotel chooses for wireless broadband. “A lot would depend on the question of easy migration from Wimax to LTE and what kind of offers vendors are able to offer on that front,” said Prakash Bajpai, chief executive officer at Tikona. Qualcomm, which has licences to offer broadband wireless services in four telecom circles, said interoperability with existing technologies deployed in India will be critical for the success of BWA. “We expect the majority of Indian players to address the demand for mobile broadband with 3G now and 3G plus LTE in future,” a Qualcomm spokesperson said. Some analysts say LTE isn’t all that distant. “I don’t quite buy the LTE-is-so-far-away argument,” said Nareshchandra Singh, principal research analyst with technology researcher Garter Inc. Two weeks ago, telecom equipment maker Ericsson announced that it successfully conducted a trial of LTE technology in the 2.3GHz spectrum allotted for wireless broadband services in India. “This is not a decision that companies will make in haste, given the nature of capital expenditure involved in getting things up and running,” Singh said. “More so, when there is a possibility of all that becoming obsolete in the near future.” satish.j@livemint.com Source: Home - Livemint.com | 11 Jul 2010 | 10:48 am Nairs ring-fence Leela against takeover bidMumbai: The promoters of premium hotels company Hotel Leelaventure Ltd are bolstering their defence against a possible takeover bid by ITC Ltd, according to a top company official as well as investment bankers, lawyers and analysts.  Graphic: Ahmed Raza Khan / Mint The Nair family has increased its stake in Leelaventure to 53.32% over the past year, after ITC and its fully owned investment arm Russel Credit Ltd began purchasing shares from the market. ITC owns 10.02% in the company, while the size of the controlling stake held by the Nairs is expected to fall by around 5 percentage points when a foreign convertible bond is converted into equity in April. Leelaventure told the Bombay Stock Exchange on 6 July its board will meet on 13 July to discuss the issue of preferential warrants to the promoters. “It is a sort of ring-fencing,” conceded Leelaventure’s vice-chairman and managing director Vivek Nair in a phone interview from Kerala. “We always wanted to keep our stake at above 51% and we do not see a takeover threat from ITC Ltd.” A promoter has to make an upfront payment of only 25% of the total value of the warrants and has an 18-month window to convert the rest. “The company has proposed to the board to issue preferential warrants to maintain our stake above 51% as the stake will fall to 46% after foreign bond-holders convert $66 million (Rs308.88 crore) into equity in April 2011,” Nair added. ITC has also been buying shares of East India Hotels Ltd, which runs the Oberoi chain. The Oberois have brought in Analjit Singh as a white knight in that battle. An investor buying more than 14.9% in a company must make an open offer for an additional 20%, according to takeover rules. “The investment in Leela is part of our routine treasury operations and reflects our strategic intent to invest in businesses in which we have knowledge and expertise,” said an ITC spokesperson, when asked if his company would ramp up its holding to 15% and make an open offer. Besides the foreign currency convertible bonds (FCCBs), Leelaventure has a euro bond worth €39.2 million (Rs232.8 crore) due in September. “We will purchase the euro bond in September with the money we raise from preferential warrants and use the remaining amount to build hotels in Delhi and Chennai,” Nair said. Investment bankers, analysts and lawyers said the promoters have already pledged 46.10% of Leelaventure’s shares. They also noted that the firm had a market value of only Rs1,845 crore on 9 July, largely on account of high debt of Rs2,450 crore at the end of fiscal 2010, and expansion plans that need more capital. Preferential warrants are the most straightforward way to increase promoters’ stake in case of a takeover threat, said a senior lawyer, who advises companies on takeovers and acquisitions. While preferential warrants do not carry voting rights, once the promoter stake crosses 55%, they can enter into an agreement with top investors on the board to vote for them in case of a takeover bid in the 18-month window. “The promoters chose this route as Sebi (Securities and Exchange Board of India) limits share purchase through creeping acquisitions at 5%,” said the lawyer, declining to be named because he has a business relationship with Hotel Leelaventure. Preferential warrants are like an insurance policy to an extent, said an investment banker with a foreign bank, adding that it was a route for firming up control. He did not want to be named. “It is not unusual for companies to issue preferential warrants to promoters as an alternate means to raise money,” said analyst Himani Singh of brokerage Elara Securities. Leelaventure had earlier planned to raise money through a qualified institutional placement (QIP), but that was shelved as the price didn’t match the company’s expectation. According to an 11 June report by Angel Broking Ltd, the hotels firm has approved a proposal to raise funds of up to Rs750 crore—Rs250 crore through a QIP and the rest from FCCBs—to reduce debt and part-finance expansion plans. For the fiscal year ended March, Hotel Leelaventure had a net profit of Rs410.2 crore, while the net debt to equity ratio rose to 1.4 from 1.3 in fiscal 2009. “The aim for ITC now is to enter the premium segment where they are weak,” said Singh of Elara Securities. “Leela, its rival, is well positioned, especially in Bangalore and Goa, and this could be something evolving at a later point in time”. baiju.k@livemint.com Aniek Paul from Kolkata contributed to this story. Source: Home - Livemint.com | 11 Jul 2010 | 10:48 am BlackBerry maker RIM in push to tap China marketResearch in Motion, maker of BlackBerry smartphone, said it is preparing to launch an applications store and consumer Internet services in China as part of its push into the world\'s top mobile market.Source: Moneycontrol Top Headlines | 11 Jul 2010 | 5:21 am
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