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Mitsubishi may buy Hindustan Motors\' South India plantJapan\'s largest auto manufacturer Mitsubishi Motors is planning to buy Indian car major Hindustan Motors plant in South India, reports CNBCTV18 quoting Dow Jones.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 8:16 am Tata Consultancy sees Europe rev share at 3035%Tata Consultancy Services, India\'s top software earner, expects Europe to account for 3035% of its revenue in 35 years as outsourcing demand increases, its chief executive said on Friday.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 7:23 am Bharti adds 3m mobile users in JuneBharti Airtel, India\'s top mobile operator, signed up 3 million mobile subscribers in June, taking its total to 136.6 million subscribers, data from an industry body showed on Friday.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 7:23 am Godrej may sell Geometric to raise Rs 200400cr: SourcesWith an intention of selling its noncore assets, Godrej is learnt to be in exploratory talks to exit Geometric Software by selling the 38.4% stake it holds in the latter.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 4:39 am Facebook announces India team - Times of India
Source: Business - Google News | 16 Jul 2010 | 4:05 am Sensex turns choppy; M&M, HDFC, Reliance down - Economic Times
Source: Business - Google News | 16 Jul 2010 | 4:05 am Not discussing Hindustan Motors stake: Mitsubishi MotorsMitsubishi Motors Corp said on Friday it was not discussing taking an equity stake in partner Hindustan Motors, denying media reports that pushed the Indian automaker's shares up 10%.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 3:56 am Midcap IT cos to see margin squeeze in AprJunIndian midcap technology firms are seen posting muted quarterly numbers in AprilJune, with a recovery in the US aiding a moderate sales rise, but margins could be squeezed by wage hikes and currency fluctuations.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 3:50 am Citi`s Srikanth to join Reliance as deputy CFOEnergy major Reliance Industries is set to appoint V. Srikanth, formerly with Citigroup, as deputy chief financial officer, two sources with direct knowledge told Reuters on Friday.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 3:50 am POSCO to invest $162mn in Australian iron orePOSCO, the world\'s No.3 steelmaker, said on Friday it would spend 194.7 billion won (USD 162 million) to buy a 24.5% stake in the Australian Premium Iron Ore project, as it seeks to raise resource self sufficiency.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 3:50 am Technofab Engg debuts with 15% premium at Rs 276 - Moneycontrol.com
Source: Business - Google News | 16 Jul 2010 | 3:45 am Pawar confident of better production despite monsoon hiccups - Business Standard
Source: Business - Google News | 16 Jul 2010 | 3:36 am Diesel to be cheaper in Delhi, as VAT reduced - Sify
Source: Business - Google News | 16 Jul 2010 | 3:32 am Sensex up 43 pts; TCS, Tata Motors sparkle - Sify
Source: Business - Google News | 16 Jul 2010 | 3:32 am Banks' profits to accelerate on economic growthMUMBAI (Reuters) - Leading banks are set to post higher quarterly profits on strong corporate and retail loan demand, and a rebounding economy will bring down consumer defaults and improve their asset quality.Source: Reuters: Money News | 16 Jul 2010 | 3:31 am Mitsubishi, HM deny talks for stake saleTOKYO/MUMBAI (Reuters) - Mitsubishi Motors Corp and India's Hindustan Motors both denied being in talks for the Japanese firm to pick up a stake in the Indian car maker on Friday.Source: Reuters: Money News | 16 Jul 2010 | 3:27 am Food price inflation seen slowing in 2 weeks - adviserNEW DELHI (Reuters) - India's food price inflation will substantially ease in next two weeks, Kaushik Basu, chief economic adviser at the finance ministry, said on Friday.Source: Reuters: Money News | 16 Jul 2010 | 3:24 am SPECIAL REPORT - AgBank's Easter surprise showed China IPO lureHONG KONG (Reuters) - Hong Kong investment bankers were just wrapping up work ahead of the long Easter weekend in early April when they were hit with a proposition that would upend their holiday plans.Source: Reuters: Money News | 16 Jul 2010 | 3:18 am Basel Committee says agrees bank buffer strategyLONDON (Reuters) - Banking supervisors published draft rules on Friday that will force banks around the world to build up extra capital in good times, but gave no hint of what level of funds banks would be required to hold.Source: Reuters: Money News | 16 Jul 2010 | 3:12 am Sony Ericsson reports profits bounce, but short of estimatesMobile phone manufacturer Sony Ericsson reported a second quarter running of net profits today after a period of loss last year, saying it had pushed up prices by focusing on the top end of the market.Source: HindustanTimes.com - Top Business News Headlines | 16 Jul 2010 | 3:12 am India hopes to resolve Chinese telco gear issue soonNew Delhi: India expects to resolve in a couple of weeks the restrictions on import of China-made telecom equipment, which the government had barred on security concerns, telecom minister Andimuthu Raja said on Friday. India is concerned that Chinese equipment may have spying technology embedded to intercept sensitive conversations and government documents. “We do hope that it will be resolved with the home ministry within a couple of weeks,” Raja said, adding that he has already discussed the issue with the interior minister. “Some of the issues were there. We wanted to find out some solutions (on) how it can be amicably settled.” Earlier this year, India had barred Indian mobile phone operators from placing orders with China’s Huawei Technologies and ZTE Corp because of security concerns, Indian telecom industry officials have said. However, in June a government source had told Reuters that India might allow Chinese telecom equipment imports after putting in place security checks, indicating a softening of India’s position on an issue that has clouded ties between the two Asian powers. Source: Home - Livemint.com | 16 Jul 2010 | 3:10 am A 380 lands at Delhi's T3 today - NDTV.com
Source: Business - Google News | 16 Jul 2010 | 2:59 am Tata Consultancy jumps 6 pct after outlook, strong Q1BANGALORE/MUMBAI (Reuters) - Investors drove Tata Consultancy Services (TCS) shares up more than 6 percent on Friday, following forecast-beating results by the No. 1 Indian outsourcer that sparked a slew of price-target hikes by analysts.Source: Reuters: Money News | 16 Jul 2010 | 2:53 am Mercedes launches super sports car in IndiaGerman luxury car maker Mercedes today launched a super sports car SLS AMG in India, priced between Rs 2 crore and Rs 2.5 crore.Source: HindustanTimes.com - Top Business News Headlines | 16 Jul 2010 | 2:52 am Rupee weakens on defence related dollar demand - Economic Times
Source: Business - Google News | 16 Jul 2010 | 2:44 am IDBI appoints additional debt arrangers'Barclays and HSBC are mandated lead arrangers for the MTN programme,' Melwyn Rego, executive director and head of IDBI's international banking business said.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 2:34 am BP stops flow of oil into Gulf of MexicoHouston: Oil is no longer spewing into the Gulf of Mexico - at least temporarily - as BP Plc said it choked off the flow from its undersea well that ruptured in April and caused the worst offshore oil spill in US history. BP said it stopped the leak on Thursday with the tight-sealing containment cap installed three days earlier atop its blown-out well, and awaited on Friday the results of tests on whether the well remains intact. That’s a key issue as the British energy giant moves to plug the leak permanently with a relief well intended to intersect the ruptured well -- which extends 4 kms under the seabed -- and seal it with mud and cement next month. BP’s US shares closed up 7.6% on Thursday after it announced it had shut off the flow of oil from the well, and traders were eager to see if the rally would continue in Friday trading in London. Oil had spurted from the well a mile (1.6 km) below the ocean surface for more than three months, causing a massive oil spill that led to an economic and environmental catastrophe along the US Gulf Coast. BP, which has failed several times in its efforts to end the leak, managed to stop the flow of oil as it conducted a test in which it closed valves and vents on the containment cap. “I think that it is a positive sign,” said US President Barack Obama, whose public approval ratings fell as the oil spill crisis dragged on. He cautioned that “we’re still in the testing phase.” The test, which could last up to 48 hours, gauges pressure in the well to assess its condition. Officials said the test would show whether the cap can safely shut off the flow from the well if oil-capture vessels at the surface must disconnect, for example in the event of a hurricane.Doug Suttles, a senior BP executive, told reporters. “We’re encouraged by this development, but this isn’t over,” said retired Coast Guard Admiral Thad Allen, the U.S. government’s point man on the spill. The Coast Guard said BP likely would release the flow of oil again after the test is done -- siphoning it to ships on the ocean surface in an improved system able to handle up to 80,000 barrels a day until a relief well seals the well permanently. That should be more than enough to capture the whole well output, as estimates put the spill rate between 35,000 barrels (1.47 million gallons/5.56 million liters) and 60,000 barrels (2.5 million gallons/9.5 million liters) a day. The Coast Guard calls the containment cap at best a temporary fix to the leak while BP finishes the two relief wells it is drilling. The test is intended to determine whether the structure of the well is damaged or intact. Allen compared the test to placing one’s thumb over the end of a garden hose -- if the pressure does not rise, that means there is a leak somewhere. Regarding the BP well, a build-up of pressure would signal the well is intact, which would make it easier to seal it with the relief wells. The Gulf spill has soiled hundreds of miles (km) of shoreline, shut down about a third of Gulf fisheries and hurt tourism and fishing in all five US Gulf states. It has also created problems for Obama as the government works to respond to the crisis while area residents struggle financially. The news that BP had finally stopped the leak - at least during the test - was a bit of good news for the British company, which has seen its share value plummet and reputation battered since the April rig explosion that killed 11 workers and led to the spill of millions of gallons of oil. There also was fresh hope in battered coastal communities. “I tell you what, we needed that,” said Jimmy Thibodaux, a resident of the small southern Louisiana town of Cut Off. Source: LatestNews-Home - Livemint.com | 16 Jul 2010 | 2:32 am Inflation to ease to 5-6 pct by Dec - officialNEW DELHI (Reuters) - India's headline inflation is expected to ease to 5-6 percent by December, Cabinet Secretary K.M. Chandrasekhar told Reuters on Friday.Source: Reuters: Money News | 16 Jul 2010 | 2:29 am Balyan takes over as CEO and MD of Petronet LNGAshok Kumar Balyan today took over as the chief executive officer and managing director of Petronet LNG Ltd, the nation's largest liquefied natural gas importer.Source: HindustanTimes.com - Top Business News Headlines | 16 Jul 2010 | 2:29 am Sony Ericsson reports profits bounce, but short of estimatesMobile phone manufacturer Sony Ericsson reported a second quarter running of net profits on Friday after a bad patch last year, saying it had raised prices by targeting the top end of the market.Source: HindustanTimes.com - Top Business News Headlines | 16 Jul 2010 | 2:29 am Smartphones boost Sony Ericsson Q2, keeps outlookAfter a dismal 2009, when consumers cut back on gadgets like new phones, the outlook for the industry has improved in recent months.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 2:23 am NTT to buy Dimension Data for $3.2bnNippon Telegraph and Telephone Corp agreed to buy South African IT firm Dimension Data for USD 3.2 billion as it seeks growth in emerging markets to offset a stagnant economy at home.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 2:05 am IMAX in 3theatre deal with China`s Lumiere PavilionsGiantscreen movie operator IMAX Corp signed a deal with private movie exhibition company Lumiere Pavilions to install three digital IMAX theatre systems in China.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 2:05 am Citi names Nomura\'s Vaish as S.Asia markets headCitigroup said on Thursday it has appointed Pankaj Vaish, formerly of Nomura, as its South Asia markets head, the latest in a slew of hirings by banks to boost their presence in fastgrowing economies such as India.Source: Moneycontrol Top Headlines | 16 Jul 2010 | 2:05 am Oil flow stopped at BP oil well - Sify
Source: Business - Google News | 16 Jul 2010 | 1:34 am Govt hopes to resolve Chinese telco gear issue soonNEW DELHI (Reuters) - India expects to resolve in a couple of weeks the restrictions on import of China-made telecom equipment, which the government had barred on security concerns, Telecoms Minister Andimuthu Raja said on Friday.Source: Reuters: Money News | 16 Jul 2010 | 1:28 am Sign language - Indian Express
Source: Business - Google News | 16 Jul 2010 | 12:49 am Citi's V Srikanth to join Reliance as deputy chief financial officer: SourcesSrikanth was head of markets for South Asia at Citi, the sources said.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 12:23 am Tata Consultancy sees Europe rev share at 30-35 pctMUMBAI (Reuters) - Tata Consultancy Services, India's top software earner, expects Europe to account for 30-35 percent of its revenue in 3-5 years as outsourcing demand increases, its chief executive said on Friday.Source: Reuters: Money News | 16 Jul 2010 | 12:15 am Rupee weakens on defence related dollar demandMumbai: The Indian rupee weakened on Friday as the euro’s rally failed to boost the unit while demand for the US dollar for defence related payments also weighed. At 10:20am, the partially convertible rupee was at Rs46.75/76 per dollar, 0.3% weaker than Thursday’s closing of Rs46.60/61. “There is no clear view in the market and a lack of medium term direction as well. But there is some defence related dollar demand seen, which is offsetting the positive shares,” a senior dealer with a foreign bank in Mumbai said. “Rupee should hold in a range of 46.60-46.75 today,” he said. Gains in stocks prevented the unit from slipping sharply and the stockmarket would be watched for direction during the day, dealers said. Indian shares were trading 0.2% higher, while Tata Consultancy Services rallied after the top outsourcer beat forecast and said it was seeing strong demand. Foreign fund flows into and out of the stock market have a influence on the rupee’s fortunes. So far in 2010, foreigners have purchased a net $8.4 billion worth of shares, adding to last year’s record $17.5 billion inflows. “The euro’s rally is not having much effect on the rupee as non-deliverable forwards continue to `unwind EURO/ASIA short positions. This is leaving INR broadly steady and in a narrow range,” a senior dealer with a private bank said. The dollar’s index against six major units was down 0.2% and would be watched for cues, dealers said. Most emerging market currencies too were stronger versus the dollar. The dollar weakened to near 2-1/2-month lows against a basket on currencies on Friday, with the euro’s outlook positive after a short-covering rally lifted it through key resistance levels. One-month offshore non-deliverable forward contracts were quoted at Rs46.95, 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 Rs46.8150, with the total traded volume on the two exchanges at about $400 million. Source: Home - Livemint.com | 16 Jul 2010 | 12:13 am Oil hovers around $76 in Asian tradeNew York's main contract, light sweet crude for delivery in August, was down nine cents to $76.53 a barrel in morning trade.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 12:10 am Tata Steel executive says maoists impacting business: ReportMaoist rebels, inspired by China's Mao Zedong, say they are fighting for the poor and landless and have backed farmers in land disputes with industry.Source: Daily News & Analysis: Money News | 16 Jul 2010 | 12:07 am Uncovering mathematical mysteries: What is the Poincare Conjecture?The fascinating story of the mathematician Grigori Perelman reached its climax a couple of weeks ago, when he turned down the $1 million Clay prize for solving the Poincare Conjecture. Perelman has been in the news for four years now, as much for his work in three-dimensional geometry as for his reclusiveness. On Just to Clarify today, we’re going to understand, a little bit, the problem that catapulted him to fame. The Poincare Conjecture was one of seven fiendishly difficult problems that had $1 million Clay prizes associated with their solution, and to explain it to us, we have with us Parameshwaran Sankaran, a professor at the Institute of Mathematical Sciences in Chennai. Source: Home - Livemint.com | 16 Jul 2010 | 12:02 am Weak monsoon not yet a worry, says PawarNew Delhi: Week monsoon rains in the past week will not significantly hurt crop output in the country and the weather outlook is encouraging, Union agriculture minister Sharad Pawar said on Friday. India’s monsoon rains, vital for farm output gains after last year’s drought, were 24% below normal in the past week and unlikely to rebound in the week ahead, the weather office said on Thursday, raising fears of crop loss. Pawar said rainfall had been deficient in parts of Uttar Pradesh, the main cane-growing area, and some eastern region, but the India Meteorological Department was still optimistic about total rainfall in the June-September monsoon season. “The presentation given to me by the Met department is quite encouraging. There would be good rains in July and August, and I am not worried,” Pawar told reporters. Pawar said planting of summer-sown crops was progressing well. “I took the assessment of sowing. As compared to last year, rice, oilseed, cane, jute and cotton plantings are higher.” Pawar also said that a panel of ministers would consider imposing an import tax on wheat. India has huge stocks of wheat, but some millers in coastal regions of southern India import high-protein wheat from Australia, which works out cheaper for them because local taxes and high transit costs make domestic wheat from northern regions relatively costly. Source: Home - Livemint.com | 16 Jul 2010 | 12:01 am Taro case: US court rules in favour of Sun PharmaSun Pharmaceutical has reason to cheer. It got a favourable ruling from the US District Court for the Southern District of New York in its efforts to acquire Israeli drug-makerSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Copper stocks shine in a busy economic yearCopper stocks have done well this year, though they have come out of the highs witnessed a couple of months ago. Base metals, in fact, outperformed other commodity groups lastSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Suppliers, customers shying away from Jamshedpur: Tata Steel MD“For nearly 50 days, train services between Kolkata and Jamshedpur have remained irregular, with night services totally suspended due to the Maoist problem… How long can this continue?” Tata Steel Managing Director, Mr H. M.Source: Business Line - Home Page | 16 Jul 2010 | 12:00 am New rupee symbol reflects strength of economyThe Indian rupee will soon have a distinct and identifiable symbol that would reflect the strength of the over-trillion-dollar economy. The Indian currency will now join an exclusive club of international currencies — the US dollar, theSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Oil refiners may post Rs 10,000-cr losses in Q1IndianOil, Hindustan Petroleum Corporation and Bharat Petroleum Corporation are expected to post net losses of nearly Rs 10,000 crore combined for the first quarter of thisSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Private power companies set to generate healthy profits in Q1Merchant power tariffs are well below their early 2009 peaks, favourable CERC norms are already reflected in their margins and the quarter has seen a slower pace of capacity addition. However, private power companies may still report exceptionalSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Hind Rectifiers (Rs 67.6): BuyInvestors with short-term trading perspective can buy the stock of Hind Rectifiers. After recording a 52-week high of Rs 91.7 on 17 February 2010, the stock tumbled sharply. However, in late March the stock found support at Rs 55 which is aSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Fresh spell for north-west from next weekIndia Meteorological Department (IMD) expects an increase in rainfall activity over the north-west region, along with east and north-east India, from July 20 onwards. Large parts of Rajasthan, except eastern flanks of the State, have remainedSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Day Trading GuideThe near-term stance stays positive as long as the stock trades above Rs 313 levels. We recommend a buy with stiff stop-loss at Rs 313Source: Business Line - Home Page | 16 Jul 2010 | 12:00 am Indian Bank puts promotions on fast trackThink General Manager – and you envision a grey-haired, pin-stripe suited, bespectacled, slightly over-weight gentleman in his mid-fifties, radiating the authority of the office. That image may soon change in some public sector banks. Don'tSource: Business Line - Home Page | 16 Jul 2010 | 12:00 am Markets steady; TCS rallies on strong resultMumbai: Indian shares were trading steady in a subdued Asia on Friday, thanks to export-focused outsourcers that rose after Tata Consultancy Services beat quarterly forecast and said it was seeing strong demand. Brokerages such as JPMorgan, BNP Paribas, Macquarie, HSBC and RBS Equities raised their target price for TCS, India’s biggest software services exporter, indicating their optimism about the outlook despite woes in Europe, a key market. TCS rose as much as 5.3% to rS825.90, and was the top gainer in the main index. By 11:33am, the 30-share BSE index was trading up 0.06 percent at 17,920.45, with half of its components gaining. The 50-share NSE index was up 0.1% at 5,383.95. “Our preference for TCS has been based on the expectation of industry leading volume growth and improving margin performance,” Macquarie analysts Nitin Mohta and Atul Soni said in a note. “1Q results validate our investment argument on both counts, and we reiterate our preference for TCS over Infosys,” they added. TCS said after market hours on Thursday net profit in the June quarter rose 21 percent to Rs1,840 crore ($395 million) from Rs1,520 crore a year ago under US accounting standards. Rival Infosys Technologies, which had reported a rare drop in quarterly profit on Tuesday, gained 0.1% while third-ranked Wipro rose 0.6%. Traders said other stocks were weighed down by concerns about the global economy. Ambareesh Baliga, vice-president of Karvy Stock Broking, said foreign funds that have poured have poured $8.4 billion into Indian stocks this year could pull out if global indicators worsen. “We are now concerned about the slowing down effects of Chinese economy and fears of a double-dip recession in the US,” he said. “On the domestic front, industrial output and inflation are worries.” Lenders were mixed on expectations loan demand would pick up on the back of robust economic growth. Top lender State Bank of India and rival ICICI Bank were up 0.8% and 1.6% respectively. HDFC Bank was down 1.2%. In the broader market, gainers led losers in a ratio of 1.6:1 in a volume of 137 million shares. Elsewhere, Japan’s Nikkei was down 2.9% while MSCI’s measure of Asian shares other than Japan shed 0.5%. STOCKS Private-sector lender Axis Bank hit a record high at Rs1,360.95, after it said on Thursday its April-June net profit rose 32 percent. The stock was later trading 0.4% higher at Rs1,350. Suzlon rose 0.3% to Rs60.30 as it said the wind turbine maker said it had got a 19.2 megawatt order from a local ayurvedic research foundation. Technofab Engineering debuted on the BSE at Rs272, up 13.3% versus its issue price of Rs240. The shares rose further and were trading at 293.25. Source: Home - Livemint.com | 15 Jul 2010 | 11:54 pm Asia stocks dip; dollar weakens on US data,Hong Kong: The dollar fell and Asian stocks dipped on Friday as the US economy showed further signs of slowing, while the euro appeared poised for further gains after breaching key resistance levels. The dollar weakened broadly after reports that growth in industrial production had slowed sharply, offsetting a bright start to the US earnings season earlier this week which had briefly boosted markets. In Asian trade, the dollar index slipped 0.1% against a basket of major currencies to 82.46, near a 2-month low. Near-term support was seen at 82.24, the daily high on April 25. The euro rose to $1.2910, from around $1.2813 late in New York on Thursday when it gained 1.4% and surged above the 50% retracement of its April-June slide. Traders said the single currency will test $1.30 again, but noted there would be many sellers around that level. The dollar is likely to come under increasing pressure as the US economic recovery loses momentum and as other countries in the world raise interest rates to fend off inflation, making their currencies more attractive, HSBC Global Research said in a note. Asian stocks outside Japan dipped 0.2%, but the MSCI Asia ex-Japan index was on track for a small gain for the week. It has rebounded around 11% from its May lows as worries about Europe’s debt crisis slowly ease but is still down more than 2% for the year to date. Japan’s Nikkei fell 2.2% as souring near-term technicals and concern about the US economy prompted investors to take profits from recent market gains. “The micro base for the US, including things such as the Intel results earlier this week, is pretty good, but the macro base really isn’t, and this is raising a lot of concern about the US economy,” said Yutaka Miura, senior technical analyst at Mizuho Securities. “Nothing’s certain, but it looks as if we could be in for a bit of a correction.” US stocks recouped early losses to end the day flat, led by a sudden turnaround in Goldman Sachs and BP Goldman said it would pay a record $550 million to settle SEC charges that it misled investors in a subprime mortgage product, while BP said it had finally stopped the flow of oil from a deep-sea well which has caused an economic and environmental disaster in the Gulf of Mexico. In Hong Kong, Agricultural Bank of China made a tepid debut as concerns about valuations, a waning appetite for new shares amid a glut of bank fundraisings and tough markets kept a lid on gains. The stock gained 3%, a day after a similarly weak debut in Shanghai Crude prices was little changed around $76.55 a barrel on Friday, shedding early gains on concerns about weak US economic data. Source: Home - Livemint.com | 15 Jul 2010 | 11:29 pm Sensex recovers 41 pts in opening trade, TCS leads rallyThe 30-share index, which had lost over 75 points in the previous two sessions, gained 40.85 points, or 0.22 per cent, at 17,950.31 points in the opening trade.Source: Daily News & Analysis: Money News | 15 Jul 2010 | 11:17 pm TCS jumps 5% after strong Q1, outlookBangalore / Mumbai: Shares in Tata Consultancy Services Ltd rallied more than 5% in a flat market on Friday after the top Indian outsourcer beat quarterly forecast and brokerages raised their target price. TCS, whose clients include Citigroup, General Electric, Ferrari and American International Group, posted a 21% rise in quarterly profit and said after market hours on Thursday it was seeing strong demand. “Employee attrition and wage pressures could serve as temporary impediments, but ultimately underscore the strength of the demand rebound,” BNP Paribas said in a note. “This combined with TCS’ continued margin discipline make it a key stock to play the rebound story,” it said. The result had contrasted with bluechip Infosys Technologies Ltd, the country’s No. 2 outsourcer, which had reported a rare drop in quarterly profit on Tuesday. Shares in TCS, which the market values at about $34 billion, were trading up 4.9% at Rs822.50 in a Mumbai market that was up 0.1% at 10:05 a.m. The stock had risen as high as Rs825.90. “We believe TCS’s broadbased 8%-plus volume growth, similar to Infosys, indicates strong demand momentum,” brokerage RBS Equities said in a note, raising its price target for the stock to Rs930 from 900. “The stock could see a dual up-lift near term from earnings upgrades and valuation rerating closer to Infosys,” it said. The price target would value TCS shares at 21 times 1-year forward rolling earnings, putting it at a 4% discount to Infosys compared with a 10% average discount historically, RBS said. The brokerage said employee attrition rates, which were 13.1% for the company in the June quarter, were likely to come down in the second half of the fiscal year. TCS has raised its hiring target for 2010-11 by 10,000 to 40,000 reflecting firm demand. JPMorgan raised its share price target for Tata Consultancy to Rs915 by March from 850, while BNP lifted its target price by Rs15 to 925. Tata Consultancy, part of the Tata Group that spans the commodities, autos and services businesses, said net profit in the June quarter rose to Rs1,840 crore ($395 million) from Rs1520 crore a year ago under US accounting standards. Source: Home - Livemint.com | 15 Jul 2010 | 11:04 pm Google’s 2Q earnings rise 24%, but miss targetSan Francisco: Google Inc.’s second-quarter earnings missed analysts’ target as higher expenses and the fallout from the European debt crisis dragged down the Internet search leader. The letdown announced on Thursday stemmed from Google’s expanding payroll and a run-up in the US dollar that has been driven by fears that the euro will crumble if governments in Greece, Spain, Portugal and Italy default on their perilously high debts. The worries hurt Google because about one-third of the company’s revenue comes from Europe, and customer payments made with the euro translated into fewer dollars than a year ago. Even so, the currency squeeze wasn’t as severe as some analysts anticipated. Meanwhile, Google is spending more to maintain its commanding lead in Internet search while it also tries to diversify by developing products in other promising niches such as online video and mobile devices. To help achieve its goals, the company added nearly 1,200 employees in the second quarter to end June with more than 21,800 workers. Despite the rising expenses, Google’s net income rose at a fast clip as second-quarter revenue came in slightly above analysts’ forecasts. But the earnings growth wasn’t quite as robust as analysts had hoped, a factor that seemed to amplify investor concerns already weighing on Google’s stock price. Google shares fell $20.49, or more than 4%, in extended trading Thursday after the release of results. Earlier, the company finished the regular session at $494.02, up $2.68. Although Google remains the Internet’s most profitable company, investors have been fretting about signs of decelerating growth amid stiffer competition from Apple Inc., Facebook and Microsoft Corp. On top of those challenges, a showdown over online censorship in China that has muddied Google’s future prospects in the world’s most populous country. Thursday’s report offered some encouraging news, though. In a positive sign for the overall economy, marketers were willing to pay more for the online ads that generate virtually all of Google’s income, and people are clicking on the commercial messages more frequently. Those trends provide another indication that more companies and shoppers are feeling a little better as they recover from the worst economic downturn in more than 70 years. “We are really pleased with the way we are performing in this economy,” Patrick Pichette, Google’s chief financial officer, said during a Thursday conference call with analysts. “That’s why we feel confident about the future.” Google, which is based in Mountain View, earned $1.84 billion, or $5.71 per share, in the April-June period, up 24% from $1.48 billion, or $4.66 per share, a year ago. If not for expenses covering employee stock compensation, Google said it would have made $6.45 per share. That figure was below the average estimate of $6.52 per share among analysts polled by Thomson Reuters. Revenue climbed 24% to $6.82 billion, from $5.52 billion a year earlier. After subtracting commissions paid to its ad partners, Google’s revenue stood at $5.09 billion about $10 million above analyst projections. In other key figure watched closely by investors, the number of revenue-generating clicks on Google’s ads in the second quarter increased 15% from the same time last year. The gain is in the same range as the increases in the past year. The average price per ad click in the second quarter edged up 4% from last year, but it’s slower than the growth seen during the previous two quarters. After clamping down on its costs most of last year, Google has been spending more freely because management believes the U.S. economy is steadily rebounding, with electronic commerce and the rest of the technology sector leading the charge. Google has brought in nearly 2,000 employees during the first half of this year, through both recruitment and a flurry of mostly small acquisitions. The company’s spending on data centers and other projects known as capital expenditures totaled $476 million, more than tripling from the same time last year. Pichette said the company plans to continue investing in more employees and technology as it tries to position itself to take advantage of an improving economy. To help pay for its ambitions, Google said Thursday that it will take on significant debt for the first time in its six years as a public company, even though it has $30 billion in cash. The company’s board of directors approved a plan to borrow up to $3 billion. Source: Home - Livemint.com | 15 Jul 2010 | 10:54 pm Wall Street wrap for 15 JulyNew York: The Senate finally passed a financial reform bill in response to the 2008 financial crisis, that took over a year long in the making. The purpose of the bill is to prevent another 2008-type financial crisis and provide consumers more protection. There was other mixed news that had markets stumbling in early trade on Thursday – good news from the Labor Department, which reported that the number of Americans filing for unemployment claims fell to its lowest level since August 2008, dropping 29,000 to 429,000 people filing claims. Economists were expecting the number of people filing for unemployment claims to be at 450,000. More good news came from JP Morgan Chase, which reported a profit of $4.8 billion, beating analysts’ expectations. The company’s CEO said there was a decline in the number of consumers defaulting or falling behind on their loans but couldn’t be sure that this would continue. Google also announced second-quarter earnings on Thursday, which were up 24% to $1.84 billion but lower than what analysts expected. However the good news was offset by some bad news, with reports coming in that showed manufacturing in New York and Philadelphia falling sharply. US markets ultimately ended the day with little change as it did on Wednesday. European indices were also down and the Asian markets also saw their indices fall for the day. In commodities, US light crude oil for August delivery fell 88 cents to $76.16 a barrel while gold for August delivery gained $1.10 to $1,208.10 an ounce. In bonds, the 10-year note ended lower to 2.99% from 3.05% on Wednesday after treasury prices rose Source: Home - Livemint.com | 15 Jul 2010 | 10:51 pm Oil holds below $77, eyes equities, hurricanesSingapore: Oil steadied below $77 on Friday, shedding early gains as stock markets in Asia fell following disappointing US economic indicators, while potential Atlantic storms provided some support to prices. US industrial production slowed sharply last month, while manufacturing output snapped a three-month streak of gains, a report showed on Thursday, capping Wall Street gains. Japan’s Nikkei average shed 0.7% on Friday. But new US claims for jobless benefits tumbled to a near two-year low last week. Two oceanic weather systems, one in the central Caribbean and the other one in the mid-Atlantic, had a 10% chance of strengthening into tropical cyclones over the next 48 hours, according to the US National Hurricane Center. Both were days away from potentially entering the oil-rich Gulf of Mexico. “Given that the economic outlook is mixed, the key will be the weather as we head into the hurricane season,” said Jonathan Barratt, managing director at Commodity Broking Services in Sydney, adding that prices could reach $80 as soon as next week. US crude for August edged 5 cents higher to $76.67 a barrel at 6:12am, after sliding more than 0.5% on Thursday. It was still heading for a second straight weekly gain. Prices have traded in a range between $71 and $80 for almost six weeks as volatility related to the European debt crisis dwindled. Over the year, they have stayed within a $23 range, hitting a 19-month peak above $87 and a trough below $65, both in May. ICE Brent for September, the front-month contract after August expired on Thursday, gained 1 cent to $76.10. Oil yesterday fell after China, which is leading global demand growth as the world’s second-largest oil consumer, said annual gross domestic product growth moderated to 10.3% in the second quarter from 11.9% in the first quarter. “The slowdown in China’s economy would have been the telltale sign for the price to move lower, but the market has absorbed it,” Barratt said. “Given the state of the economy, inventories will continue to be drawn.” US crude inventories fell about 5 million barrels for the second week in a row last week, government statistics showed two days ago. But Energy industry data provider Genscape on Thursday said crude stockpiles at the key US Cushing, Oklahoma oil hub, the pricing point for crude trading on the New York Mercantile Exchange (NYMEX), rose in the week to 13 July to 39.93 million barrels. BP Plc said on Thursday it stopped the flow of oil into the Gulf of Mexico from its deep-sea well for the first time since it ruptured in April, prompting hope that the leak can be plugged for good. The US Congress on Thursday approved the broadest overhaul of financial rules since the Great Depression and sent it to President Barack Obama to sign into law. Source: Home - Livemint.com | 15 Jul 2010 | 10:08 pm Wall St recoups losses on BP, Goldman; Google off lateNew York: US stocks ended little changed on Thursday, recouping losses late in the day, led by a sudden turnaround in Goldman Sachs and BP. BP’s US-listed shares jumped 7.6% after the company said no oil is leaking from its blown-out well in the Gulf of Mexico for the first time since the accident began in April. Goldman Sachs’ gains coincided with the Securities and Exchange Commission saying that it would make a “significant announcement” later in the afternoon. The announcement prompted speculation the SEC was going to settle fraud charges with Goldman Sachs, which proved to be true. Shares of Goldman rose 4.4% to $145.22. The potential resolution of two major overhangs -- BP’s oil spill and fraud charges against Goldman Sachs by US regulators -- was enough to turn market sentiment around in the last half hour. “In essence, you’ll have ‘closure´ on two issues,” said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey. “An announcement along the lines of BP’s announcement, and the Goldman Sachs issue closed, if that’s what it is, that would help the tone of the market quite handsomely.” Goldman said it would pay $550 million to settle SEC charges that it misled investors in a subprime mortgage product. Goldman’s shares continued to climb after the bell, rising 2.9% to $149.40. The Dow Jones industrial average dipped 7.41 points, or 0.07%, to end at 10,359.31. The Standard & Poor’s 500 Index added 1.31 points, or 0.12%, to 1,096.48. The Nasdaq Composite Indexwas off 0.76 of a point, or 0.03%, to 2,249.08. Despite the turnaround, the Dow and Nasdaq both ended a hair lower, snapping a seven-day winning streak. BP ended up at $38.92 after it said initial results showed a newly placed cap had completely contained the flow of oil from the ruptured well. The three major US stock indexes spent most of the day in negative territory, weighed down by a subdued outlook on the economy from JPMorgan Chase & Co and disappointing factory data. An unexpected fall in regional factory activity and a third straight month of decline in producer prices raised concerns about deflation, cooling enthusiasm for the strong start to the earnings season that had lifted stocks off recent lows. JPMorgan Chase & Co reported quarterly earnings that beat expectations, but offered a cautious outlook on the economy. Much of the company’s gains came from areas that cannot be a stable source of income in the future. The stock recovered to add 0.3% to $40.46, but its sober economic view hit the shares of competitors Citigroup Inc, down 1.2% at $4.16, and Bank of America Corp, which dropped 1.8% to $15.39. Both report their earnings on Friday. The S&P Financial Index dipped 0.1%. Earnings and guidance from bellwethers such as Alcoa and Intel have been strong, but that has done little to counter the disappointing economic data, given that market leaders can do well even in a weak economy. But Google Inc disappointed after the bell, reporting profit that missed expectations and driving its shares down 4.7% to $470.79 in extended-hours trading. On the bright side for technology, Advanced Micro Devices Increported results after the bell that topped expectations as corporate spending on tech hardware strengthened. Its shares climbed 4.6% to $7.75 in extended-hours trading. Meanwhile, the US Congress approved a broad overhaul of financial regulation, sending it to President Barack Obama to sign into law. Senate Democratic Leader Harry Reid said he believes Obama will sign the bill into law later in the day. In a busy day for economic news, the Philadelphia Federal Reserve Bank said factory activity in the mid-Atlantic region fell unexpectedly, while the New York Federal Reserve Bank said New York manufacturing hit the lowest since December 2009. The US Labor Department said the Producer Price Index declined for a third straight month. In June, the PPI fell 0.5%, compared with the dip of 0.1% expected by economists polled by Reuters. About 8.11 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s estimated daily average of 9.65 billion. Declining stocks slightly outnumbered advancing ones on the NYSE, with 1,523 shares falling and 1,459 rising. On the Nasdaq, two stocks fell for every one that rose. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 9:24 pm Google profit misses as expenses surgeSAN FRANCISCO (Reuters) - Google Inc missed Wall Street's quarterly profit estimates for the first time in two years after a spike in expenses offset a 24 percent revenue jump, but it vowed to keep investing in new businesses to drive long-term growth.Source: Reuters: Money News | 15 Jul 2010 | 7:35 pm Nagarjuna loses environment nodIts Rs12,000 crore, 2640 mw Sompeta project in doubt after strife, deaths.Source: Daily News & Analysis: Money News | 15 Jul 2010 | 4:26 pm Govt in dilemma over allowing A380 flightsDomestic airlines have been lobbying against any such move, saying one A380 flight could wipe out the entire passenger traffic from Europe or other lucrative destinations on any given day since it can carry 517 passengers in one go.Source: Daily News & Analysis: Money News | 15 Jul 2010 | 4:23 pm Infotech renegotiating pricing with key clientsInfotech Enterprises, the software engineering and design services firm, hopes to renegotiate higher pricing of contracts with some of key clients, riding on a better world economy.Source: Daily News & Analysis: Money News | 15 Jul 2010 | 4:14 pm UTV posts profit of Rs40.2 croreMumbai: Riding on its motion picture business, UTV Software Communications Ltd, with interests in broadcasting, television content, games and new media, has posted a net profit of Rs40.2 crore in the quarter ended 30 June compared to a net loss of Rs31.8 crore in the same quarter last fiscal. Its total operating revenue rose by 132% to Rs208.2 crore from Rs89.8 crore. The company derived 55.6% of its revenue from its films business, 24% from broadcasting, 12% from television content, 6% from games and the rest from new media. The movie business benefited from the good performance of Prakash Jha’s political film Raajneeti. Ronnie Screwvala, founder and chief executive of UTV Software, said the main contributor to the company’s growth was its motion picture business. Nearly 30% growth came from syndication of its library of films and additional revenue from pre-sales for television and mobile. “Over the last six months, we’ve seen a dynamic growth of the television industry and we’ve got right back in the saddle for television content. This is an area of high growth and high leadership for us,” Screwvala said, UTV works closely with Sun TV in the south and calls itself a quasi broadcaster on the network. “We buy slots, sell airtime to advertisers and put our programmes on the network. We do over a 125 hours a month on Sun and 50% of the shows are our own shows,” Screwvala said. Later this month, the company will launch a daily show on Imagine TV owned by Turner Broadcasting Pvt Ltd and another one on Star Plus in September. Three shows on Bindass, including the new season of Emotional Atyachaar, are also in the pipeline other than three dailies and two bi-weeklies on the Sun network. For UTV, new media will continue to be a key driver. UTV audio cinema already has about 1.5 million subscribers, contributing revenue of Rs 3.5 crore per month. “The impressive revenue growth has come from a sharp recovery in the movies business; in the same quarter last year, the business was impacted by the stand-off between multiplexes and producers,” said Mihir Shah, equity research analyst at Alchemy Share & Stock Brokers Pvt. Ltd. UTV Software Communications Ltd rose 1.27% to close at Rs429.95 on Thursday on Bombay Stock Exchange. The benchmark index, Sensex, dropped by 0.16% to close at 17, 909.46 points. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 1:18 pm The rupee gets an identityAfter months of scrutiny and scanning over 3,000 entries, the government today approved the symbol of the Indian currency which will differentiate it from currencies used in countries such as Pakistan, Nepal, Sri Lanka and Mauritius.Source: Business Standard | Front Page Headlines | 15 Jul 2010 | 1:09 pm Bangladeshi patients flock to India in search of better facilitiesKolkata: Eleven years ago, Mohammad Farid, then 22, came to Kolkata from Bangladesh’s Faridpur district to be treated for complex nephrological and neurological problems. He has since turned into a professional “guide”, assisting patients from Bangladesh in their quest for treatment—a booming business because, as he observes, people cross the border even for diagnostic tests. “Even for simple pathological tests such as blood sugar and lipid profile, Bangladeshis prefer laboratories in Kolkata,” says Farid. “I help dozens of people come to Kolkata for tests every year. Tests done here are seen as more credible.” Perhaps the most surprising thing about the Bangladeshis coming to India for treatment is this: Many of them arrive not for complicated procedures but for routine pathological tests. The more affluent medical tourists go to Singapore these days, but that still leaves an estimated 500 Bangladeshis entering India every day, seeking treatment. Nine out of 10 head for private hospitals in Kolkata, says Syed Masud Mahmood Khundoker, Bangladesh’s deputy high commissioner in the city. The remainder go to south India, mostly to Christian Medical College in Vellore, Tamil Nadu, where almost all doctors follow Bengali, at least when it comes to the description of symptoms. Part of the reason for this continuing flood of arrivals is the ease of entering India by road, even for people without the appropriate documents. “I have been coming to India for the last 15 years, and I have never had a passport,” says a patient at a private hospital in Kolkata, who did not disclose his name. He suffers from a neurological disorder and needs regular check-ups. “I bribe the security officers at the border. I have never had a problem. It’s the most convenient way of travelling to Kolkata.” At these private hospitals, the cost of treatment can be crippling for many Bangladeshis. When 15-year-old Almasuddin Paramanik, from the Rajshahi district of Bangladesh, fell and injured his hips, doctors determined that he needed a hip replacement—a complex surgery even in the developed world. His father, Tayeb Ali Paramanik, who used to till two-and-a-half bighas of land for a living, sold two bighas to rustle up cash for the surgery. (A bigha is one-third of an acre.) Doctors in Kolkata, where Almasuddin is currently undergoing treatment, have estimated that the surgery will cost Rs1.5 lakh. “It’s a huge amount for us,” says Paramanik. “But it’s a question of life and death for my son.” The economy engendered by this medical tourism goes beyond the building of new hospitals. Though restricted to a small locality on the south-eastern fringes of Kolkata, Bangladeshi patients have created jobs for hundreds of young people; dozens of money-changers and guest houses have sprouted in the past few years. “No one’s unemployed in this locality,” says Nilmoni Samanta, who runs a small roadside eatery near the Rabindranath Tagore International Institute of Cardiac Sciences (RTIICS), one of the more recent additions to the area. “If you want to cash in on the opportunity, there are so many things you could do—work as a guide, run an eatery like me, or sell (Dhaka-Kolkata) plane and bus tickets.” In this locality, anyone who has an extra room in the house rents it out to Bangladeshi patients, says Satyabrata Das, a money-changer who runs a small office opposite RTIICS. “You would earn at least Rs600 a day all year round,” he estimates. “Guest houses are more expensive. They cost at least Rs1,000 a day per room.” The smarter entrepreneurs ensure Bangladeshis feel at home. They name their guest houses after Bangladeshi towns or celebrities—Dhaka Lodge, for instance, or Bangabandhu Abashik (named after Bangladesh’s first president, Sheikh Mujibur Rahman)— they serve authentic Bangladeshi cuisine, and they even arrange for Bangladeshi cable channels on television. Until the early 2000s, there were two main private hospitals in Kolkata—Ruby General Hospital and Peerless General Hospital—that served Bangladeshi patients. Over the last 10 years, at least four others have sprung up, and more are in the pipeline, all eyeing the ever-expanding business from people across the border. Peerless Hospital, for instance, currently gets at least 10,000 Bangladeshi patients per year, according to its spokesperson; a decade ago, that number stood at 30,000. “We have five other competitors now and two more are under construction in Kolkata alone,” he says. Medica Superspecialty Hospital, just five months old, relies on Bangladeshi patients for 5-10% of its revenues, according to Saumitra Bharadwaj, its medical superintendent. “This is crucial for any new hospital,” he says. “It could almost determine whether a hospital makes money or not.” Indeed, the revenue from Bangladeshi patients is so crucial that some start-ups, such as the year-old Desun Hospital, are planning to open marketing offices across the border. “We will launch a campaign to spread awareness about our facilities through seminars, video-conferences and contacts at clinics in Bangladesh,” says Pijush Dutta, executive coordinator at Desun. But as Bangladesh ramps up its own healthcare infrastructure, Bharadwaj thinks Kolkata’s super-specialty hospitals are likely to draw more patients than multi-specialty medical centres. “Going forward, only people in need of critical care would come to Kolkata.” Unsurprisingly, Indian firms are looking to dip their toes into the expanding pool of Bangladeshi healthcare as well. Apollo Hospitals Enterprise Ltd has already built a super-specialty hospital in Dhaka, and Peerless Hospital is hoping to tie up with a local partner to start clinics in Bangladeshi towns such as Chittagong, Rajshahi and Dhaka. And with good reason: Almost half the people who receive medical treatment at Peerless’ outpatient department (OPD) in Kolkata are Bangladeshis, according to the hospital’s spokesperson. “Most of them come for check-ups following major surgeries,” he says. “Once we’ve launched our clinics in Bangladesh, people wouldn’t have to come to the Kolkata hospital’s OPD.” This is the last in a four-part series on people from neighbouring countries living in India. To read the previous stories, go to www.livemint.com/neighbours Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 1:05 pm A stagnating anti-Naxal policyA prime ministerial review of the Naxal situation, the second this year, was held on 14 July, and there has been a change in perception from the last meeting on 7 February. At that time, the home ministry was confident of meeting the security threat, with plans for a coordinated operation across Naxal-affected states called Operation Green Hunt. Since then, a series of attacks by the rebels has put security forces on the defensive. Dominance of the Naxals during this period is evident from the stark statistics: 97 extremists killed compared with 209 security personnel in the first six months of the year. The derailment of the Jnaneswari Express on 28 May, which caused the loss of 148 lives, has led to disruption of rail services in the crucial Kharagpur corridor. The regularity with which the Naxals are enforcing bandhs in central India is also alarming. Reports of Naxal penetration in pockets of Gujarat, Punjab and Delhi denote dark times ahead. Security forces, too, have seen some success, particularly in targeting the Naxal leadership—23 of 49 members of the Communist Party of India (Maoist) central committee are now either behind bars or have been eliminated, the latest being Cherukuri Rajkumar, or Azad. There are reports of a sharp division in the Naxal top leadership and indications of the emergence of rogue elements outside the control of the central authority, as Maoist sympathizer Varavara Rao recently admitted. Union home secretary G.K. Pillai has also claimed that government control has now been extended to over 4,000-5,000 sq. km earlier held by the Naxals. Some opening moves for talks with Naxals under Swami Agnivesh are under active consideration. In light of the above, Prime Minister Manmohan Singh on Wednesday emphasized a state-specific approach and the need for unity in resolve and execution in dealing with Naxals. On the security side, provision of helicopters for logistical support, funds for new police stations and special police officers, and creation of a Unified Command with a retired major general on board have been deliberated. While these measures may add to the efficiency of current operations, there are sufficient indications of a long and bloody struggle ahead. The salient shortcoming remains the present security strategy based on the clear, hold and develop model, which is troop-intensive and will take some years to show results. Moreover, norms of engagement by security forces and their present operational capability have possibly not been factored in. An assessment of Naxal capability shows that there is a differential in the level of threat in each state, with some areas critically affected, such as the Dandakaranya zone (or the knot between Chhattisgarh, Orissa and Maharashtra), southern districts of Jharkhand, and the Jangal Mahal area of West Bengal. These will require intensive engagement by well-trained security forces. There are varying degrees of Naxal influence in other districts for which an armed police response could be adequate, while some areas would require intelligence-based proactive policing. International norms suggest 13-20 security personnel per 1,000 people or three to eight personnel per sq. km for critically affected districts, and around 220 personnel per 100,000 people in other areas, which is also the United Nations standard. Going by this matrix, the police requirement for Naxal-affected areas in Chhattisgarh and Jharkhand will exceed 200,000 and 130,000, respectively, while availability is limited to around 60,000 and 50,000, including central paramilitary forces. The large differential means continued Naxal domination of these areas till force levels are increased. Current capacity, including assistance from the army, is for training 10,000-12,000 personnel for anti-Naxal operations per year. What, then, is the alternative? It is interesting to look at the Andhra Pradesh counter-Naxal model here. The state has been able to bring down its overall personnel losses to around 40 in 2009 and only around 10 this year. The model espouses a “whole of system” approach, with political will supplemented by local police capacity building. Adopting a mix of counter-insurgency and counterterrorism, the intelligence network has been extended along with development of roads, schools and government offices. The local police led the way with build-up in numbers as well as mobility, communications, and arms and equipment, thereby expanding strike and coordination capability. While Greyhounds, a special anti-Naxal police force, has come into the limelight, it does not comprise an exclusive elite—simply well-trained constables on deputation for two to three years, which in turn contributes to capacity building at the local level. All police officers are trained in anti-Naxal operations and a posting in Naxal-affected areas is compulsory before an officer can be appointed superintendent of a district. Policing is supplemented by a viable surrender and rehabilitation scheme, which has induced a number of hardcore Naxals to give up the fight in the past few years. While much was expected from Wednesday’s prime ministerial review, what was seen was a reinforcement of the current strategy that has failed to yield results. The Andhra model provides a viable alternative that could have been suggested for adoption by states based on local conditions. Hopefully, the proposed Unified Command in states will come up with such alternatives at a time when the socio-economic costs of left-wing extremism are affecting India’s global image and harming its business and investment environment. Rahul K Bhonsle is editor of South Asia Security Trends. Comments are welcome at theirview@livemint.com Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 1:00 pm Mphasis names new chairman, brings in 4 directors from HPBangalore: Mid-tier software firm Mphasis Ltd has appointed Friedrich Froeschl, who heads Hi Tec Invest GmBH and Co., a German private equity management and consultant firm, as its new non-executive chairman. It has also rejigged its board by getting four executives from its majority investor Hewlett Packard Co. as directors, replacing Brittania Industries Ltd chief executive Vinita Bali and three others. Froeschl, who has been on the Mphasis board as an independent director since March 2009, replaces Andy Mattes, who is resigning, the company said in a statement on Thursday. Francesco Serafini, executive vice-president of emerging markets at HP, will be Mphasis’ new vice chairman. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 12:47 pm Munjal acquires additional shares in DMIPLMumbai: Yogesh Chander Munjal, chairman of Munjal Showa Pvt Ltd, the company that makes auto parts, has aquired an additional 8,400 shares in the holding company, Dayanand Munjal Investments Pvt Ltd (DMIPL) from Suresh Chander Munjal and Vijay Kumar Munjal, said Munjal Showa, in a statement to the Bombay Stock Exchange. The acquisition increases Yogesh Munjal’s stake in the promoter company, DMIPL from 49.4% to 99.4%. On June 11. The Munjal family had announced restructurimg of holdings in the Hero Group. As part of the realignment process, all promoter cross-holdings had been untangled and consolidated in the name of the relevant family. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 12:39 pm Mutual fund schemes to invest inThere are over a thousand mutual fund schemes in the market. Picking and choosing the right one can be tough. Here’s where Mint50 comes in. Also See Best Mint50 Mutual Funds We have run quantitative and qualitative filters on Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 12:33 pm A user’s guide to ITR formsThe first step to tax filing is picking up the income-tax return (ITR) form applicable to you. The form you fill mainly depends on the sources of income you have. There are four forms out of which you need to choose. Also See Guide to ITR forms We tell you which one is applicable to you. If you are a salaried employee or a pensioner, you would have to fill ITR 1 or ITR2. We decode ITR 1 in detail, besides explaining some jargon you would need to understand when filling ITR 2. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 12:30 pm S&P CNX Nifty futures to be traded on CMEMumbai: National Stock Exchange of India Ltd (NSE) on Thursday announced the launch of S&P CNX Nifty Futures on the Chicago Mercantile Exchange (CME) beginning 19 July. In March, NSE and CME had announced cross-listing arrangements, under which the S&P CNX Nifty Index (Nifty 50) will be traded on CME in US dollar denominated future contracts. The size of e-mini contracts — which are electronically tradeable contracts of lower value than standard ones — will be $10 into the value of the Nifty index on that day and the e-micro contracts will be $2 into the value of the day’s Nifty index. These contracts will be traded on the CME Globex platform, providing access to participants around the world. Source: LatestNews-Home - Livemint.com | 15 Jul 2010 | 12:27 pm Glaxo takes $2.4 bn charge, Avandia mostly settledLondon: GlaxoSmithKline expects to record a legal charge of £1.57 billion ($2.4 billion) for the second quarter after settling the “substantial majority” of claims relating to its controversial diabetes pill Avandia. The move, designed to clear the decks of outstanding legal issues, will wipe out most of the drugmaker’s expected earnings for the three months to June but leaves it better placed to grow profits in future. The British drugmaker said on Thursday the charge would cover not only settlements for Avandia but also other long-standing legal cases, including an investigation into its former factory at Cidra in Puerto Rico, and anti-trust and product liability litigation over antidepressant Paxil. The charge will cost £1.35 billion after tax. News of the hefty charge -- equal to about 2.5% of Glaxo’s market value -- initially dampened an anticipated rally in the shares after a US panel voted to keep Avandia on the market with new warnings on heart risks. However, the stock gained ground in morning trade and was up 2.2% by 1200 GMT, outperforming a 0.8% advance in the European drugs sector. “Some people might baulk at the size of the charge but probably most will say this is putting it all behind the company, so we can now look to the continuing business and view the stock on a more rational basis,” said Deutsche Bank analyst Mark Clark. The big legal hit will slash second quarter earnings per share by more than 26 pence, according to analysts, wiping out most of the group’s profit for the period. Prior to the news, the consensus EPS forecast had been 29.5 pence, according to Thomson Reuters data. Glaxo will report results on 21 July. “It is a negative in the short term but longer term it is a positive because from here we anticipate that EBIT (earnings before interest and tax) will actually go up 2 to 5% based on the company running these charges through now,” said UBS analyst Gbola Amusa. “They are closing the book on uncertainties upfront, which makes for a cleaner organisation.” Morgan Stanley analyst Andrew Baum said he anticipated renewed interest in the shares from yield-hungry British investors, given the expected dividend yield of 5.3% in 2010. Falling Avandia sales Glaxo did not specify the amount it was setting aside to settle liability claims over Avandia, arguing settlement terms were confidential. Initially, analysts had feared it might have to spend as much as $6 billion to resolve an estimated 13,000 US Avandia claims. But the favourable panel vote and recent reports of modest settlements means some now see a bill of around $1 billion or less. Avandia was once Glaxo’s second-biggest drug, with sales of around $3 billion a year. Since 2007, however, it has been in decline after it was first linked to heart attacks. It sold just $1.2 billion in 2009. Those sales are expected to keep falling as new restrictions on its use are introduced, with the US Food and Drug Administration expected to follow the panel’s recommendations. But investor concerns have been focused more on the company’s legal liability than on the relatively modest impact of Avandia to the sales and profit lines. Glaxo said the resolution of the various disputes was a significant step in clearing legal uncertainties. “This represents a substantial proportion of GSK’s outstanding litigation. This progress is helping us to reduce financial uncertainty and risk for shareholders,” Dan Troy, the drugmaker’s general counsel, said in a statement. While it did not break out the other components of the charge, Glaxo did disclose that the agreement in principle relating to quality problems at the Cidra plant was for a total of £500 million, leaving £1.07 billion to cover claims for Paxil, Avandia and other products. A company spokeswoman said the latest £1.57 billion charge would be in addition to the company’s current balance sheet legal provision of £2.3 billion. Avandia also faces scrutiny from the European Medicines Agency, which has launched a new review into the drug’s risks and benefits and will discuss the matter 19-22 July in London. Source: World Business - Livemint.com | 15 Jul 2010 | 6:53 am Google, Tata Comm partner for web services in IndiaMumbai: Google Inc’s Indian unit and Tata Communications will partner to provide web-based business connectivity services to companies in India, where a fast-expanding economy throws up new opportunities. The companies would work together to provide business tools such as email, instant messaging, calendar functionality, video and office presentations over the Internet using the Google Apps software suit, Tata Communications said in a statement. While Microsoft and International Business Machines Corp dominate the market for enterprise email, Google is trying to convince businesses to switch to its so-called cloud-based services, in which software is accessed over the Internet. Google CEO Eric Schmidt said in April the company had a couple of million enterprise customers for the Google Apps software suite and was adding about 3,000 businesses per day. The web-based services would help companies cut costs without needing to buy additional software or hardware, Tata Communications said. Source: Tech News - Livemint.com | 15 Jul 2010 | 3:42 am
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