CELEBRATIONS and Bull Market for the Greedy Killer Money Machine
Troubled Galaxy Destroyed Times, chapter 310
|China likely to emerge as serious handicap for Indian cos|
Notwithstanding its rapidly growing importance , for most Indian companies, China remains a poorly-understood mystery and, as Wipro's Joint Chief Executive Girish Paranjpe noted recently to an American newspaper, "a hard nut to crack." Over the coming decade, an inability to crack the China market is likely to emerge as a serious handicap for any large Indian company.
Markets to rise in the next three months: Poll
MUMBAI: Money managers may not raise their stock exposure significantly on valuation concerns but see the benchmark index rising in the next three
Six out of the seven fund houses who responded to the Reuters Asset Allocation Poll conducted between July 22 and July 30 said they plan to either retain or cut equity stakes.
Three of them said Indian shares were overvalued after surging more than 90 percent from 2009-low hit in early March, while others found it fairly valued. All but one fund house expect the index to climb up to 10 percent in three months.
"It all depends on global liquidity," said Jayesh Shroff, a fund manager at SBI Funds Management.
The "world is too volatile still. We are changing every three months," he added.
Foreign portfolio investors, key to India's share market performance, have invested about $7 billion in 2009, powering a near 60 percent surge in the benchmark 30-share index.
The re-election of a Congress lead UPA government with a decisive mandate and signs of economic recovery on back of government stimulus has helped sentiment.
FINANCIALS, AUTO IN FAVOUR
But six firms said they will not cut cash levels in equity funds, given a sharp rally in shares, and rejig their portfolios in favour of relatively liquid large-cap shares from sectors such as auto, consumers, energy and financial services.
"It's a period when we are not fully convinced that earnings are going to come through," said I.V. Subramaniam, chief investment officer of Quantum Advisors Pvt Ltd, adding he saw selective opportunities in the financial sector.
Five of the seven poll respondents said they would raise exposure to financials in three months, boosting exposure to the most preferred sector of Indian funds industry which controlled 18 percent of diversified funds equity investments in June.
Four fund houses said they would raise bets on energy firms on hopes government might allow oil firms to charge market rates for their products and sell stakes in state-run firms.
A majority is also looking to buy auto and consumers shares given the resilience shown by them even in a slowing economy.
Motorcycle maker Hero Honda Motors beat forecasts with an 83 percent rise in June quarter profit, while top carmaker Maruti Suzuki reported an unexpected 25 percent jump in net profit.
India's top cigarette maker ITC Ltd beat market forecasts with a 17.4 percent rise in net profit for the June quarter.
Bond fund managers are likely to maintain or cut their portfolio maturity fearing redemptions in longer-maturity fixed income funds on concerns a $90 billion government borrowing programme in 2009/10 will raise bond yields.
Stocks to open sharply high on strong global cues
The July derivatives contracts
US stocks rose on Thursday as solid corporate profit reports and a drop in the number of Americans on jobless benefits gave investors reasons to buy equities following the
S&P 500's two days of losses.
The Dow Jones Industrial Average added 83.74 points, or 0.92 per cent, to close at 9,154.46. The Standard & Poor's 500 Index rose 11.60 points, or 1.19 per cent, to 986.75.
The Nasdaq Composite Index gained 16.54 points, or 0.84 per cent, to 1,984.30.
Stocks across Asia climbed Friday tracking a rally in commodity prices and on the back of encouraging earnings reports. The Nikkei rose 1.37 per cent, Topix jumped 1.1 per cent, Hang Seng advanced 1.65 per cent and Straits Times picked up 0.39 per cent.
Back home, key stock indices surged to close higher on the July series F&O settlement day. The upmove was led by gains in IT, FMCG and banks while oil&gas and power stocks ended flat to negative.
National Stock Exchange's Nifty closed at 4571.45, up 57.95 points or 1.28 per cent. The index hit a high of 4582.35 and low of 4474.50.
Bombay Stock Exchange's Sensex ended at 15,387.96, up 214.50 points or 1.41 per cent. The index touched an intra-day high of 15409.91 and low of 15065.48.
Despite RECESSION Indian copanies ensured PROFIT Unbound thanks to Unlimited stimulus diverting the National Revenue bypassing Parliament as well as Constitution!
It is CELEBRATION Time and BULL Market for the Greedy Killer Money Machine!
They eat our Flesh and Blood! Chew our Ribs! What return we get?
Profit is Unlimited but thanks to JOB Loss at large scale!
Continuing its winning streak for the second straight session, the BSE Sensex surged by over 282 points to close at a 13-month high of 15,670.31 points on increased capital inflows from foreign funds, driven by strong corporate earnings and firming global markets.
The 30-share index, extending yesterday's 1.41 per cent gains, increased another 282.35 points, or 1.83 per cent, to close at 15,670.31 points, a level last seen on June 17, 2008. The barometer had touched an intra-session high of15,732.81.
Similarly, the 50-share National Stock Exchange index Nifty again went past 4,600 to close 65 points higher at 4,636.45 after touching an intra-day's high of 4,669.75.
Brokers said sentiment improved because of most companies posting impressive first-quarter net profits this earning season, beating analysts' estimates.
They said firming trends in global markets after positive data and corporate earnings raised hopes of an early economic recovery also boosted trading sentiment.
"Apart from better-than-expected corporate results, firming overseas markets also buoyed trading sentiment on the domestic bourses," said Manoj Choraria, a leading stockbroker in Delhi.
Oil and gas, FMCG, banking and IT stocks were major gainers, helping Sensex to hit the 13-month high.
On the other hand, what a Shame!Unemployment caused last year by the global recession has declined but some sectors like leather, transport and metals continue to be affected, Labour Minister Mallikarjun Kharge told the Lok Sabha.
He said the situation in India is better than many other countries and the four stimulus packages, including provisions in the Union Budget 2009-10, announced by the Government have helped "stop to some extent" the growth in unemployment.
Replying to a Calling Attention Motion, through which members wanted to know what the Government was doing in the wake of rise in unemployment, Kharge said some steps have been taken but the Government will have to 'do more'.
Citing a survey done by the Labour Ministry, he said five lakh people had been rendered jobless between October and December last year due to the impact of global recession.
He said another survey was conducted between January and March which showed that situation had improved in a number of sectors like mining, textiles and gems and jewellery.
Even in the IT sector, employment has increased and not decreased, he said replying to specific queries.
He, however, said sectors like leather, transport and metals continue to be affected.
What's more, even though only a handful of companies have accounted for the bulk of the approvals — apart from Nacil, DLF intends to raise $300 million and PepsiCo India, $130 million — the number of borrowers accessing the external commercial borrowing (ECB) market has gone up. For instance, while only 33 firms tapped the ECB market last June, the number went up to 50 in June this year. Typically, the number of firms seeking to tap overseas markets tends to be higher in March due to the year-end rush for financial closure.
Reserve Bank of India data released on Thursday show approvals for external commercial borrowings (ECBs) and foreign currency convertible bonds (FCCBs) touched $1,919 million in June this year compared with $1,615 million in the year-earlier month. The data pertain only to approvals and not to actual overseas borrowings by
While 37 companies sought to raise funds through the automatic route, 13 companies opted for the approval route. However, since the stock market is still ruling low compared with the highs hit last year, none of the local corporates have accessed the FCCB market. Typically, FCCBs are issued during the bull market with the conversion (to shares) prices fixed at premium to the market price of shares.
Even after excluding the largest borrower Nacil ($830 million), the company created out of the merger of Air India and Indian, which accounted for more than a third of the approvals for the month, the balance $1.1 billion is still on the higher side compared with approvals in recent months.
Though RBI has allowed corporates access to overseas funds through ECB and FCCB routes for paying back earlier loans, only two companies have together borrowed a total of $55 million to buy back their earlier FCCBs. "As credit markets are improving, many Indian corporates are trying to access overseas markets. And back home, sentiment has also improved post-elections as one expects a more stable economic environment," Indranil Sengupta, chief economist at Bank of America Merrill Lynch, said.
Says Hemant Mishr, MD and head of global markets, Standard Chartered Bank, "There is renewed interest in Indian borrowers, which is reflected in the contraction of credit spreads in both the ECB spread and credit default swap (CDS) spread over Libor. This is a consequence of increased risk appetite and the liquidity situation being a lot better now."
RBI, in its latest report on macro and monetary developments, has noted there were net ECB repayments of Rs 1,504 crore by Indian companies during April-June this year compared with receipts amounting to Rs 6,111 crore in the year-ago period. On a quarterly basis too, approvals during April-June 2009 at $2.7 billion have been much lower against $4 billion a year ago.
"The Reserve Bank of India, has today once again clarified that remittance in any form towards participation in lottery schemes is prohibited under the Management Act, 1999," RBI said in a release.
Further, the RBI said that restrictions are also applicable on remittances for participation in lottery-like schemes functioning under different names.
The central bank clarified that it neither maintains any account in the name of individuals, companies or trusts in India to hold funds for disbursal nor does it allow individuals to open an account to deposit money with the Reserve Bank.
"The Reserve Bank has advised the public not to remit or deposit money in such accounts in response to fictitious offers/ representations. The public may immediately bring the details of such offers to the notice of local police authorities for booking the culprits," the release added.
The warning comes in the wake of many people falling prey to such tempting offers and losing money in the recent past.
The central bank has also cautioned the public in the past asking them not to make any remittance towards participation in such schemes or offers from unknown entities.
The Reserve Bank further said that in addition to making offers through letters, e-mails, mobile phones, the fraudsters have now resorted to issuing certificates, letters, circulars on letter head that looks like that of the RBI's.
"The fraudsters also convince the victims by impersonating as senior officials of the Reserve Bank," it said.
The central bank said that many fraudsters have even opened accounts with banks in India and advised public to deposit money in these accounts.
"Once the money is deposited in their account, people mailing such offers withdraw the money and then vanish. The victim thus loses the money already paid," RBI said.
TVS Motor net profit surges by 157% to Rs 18 cr in Q1
BANGALORE\CHENNAI: After reporting a flat growth in net profit during 2008-09, TVS Motor Company has bounced back this year on the back of
Net sales also increased by 7% to Rs 975.62 crore ( Rs 911.06 crore). The other operating income came to Rs 13.07 crore ( Rs 13.38 crore). Profit from operations before other income increased by 93% to Rs 37.19 crore ( Rs 19.30 crore).
During the quarter, depreciation charges amounted to Rs 25.41 crore ( Rs 25.32 crore). Interest cost increased to Rs 17.12 crore ( Rs 9.56 crore). Profit before tax doubled to Rs 20.03 crore ( Rs 10.02 crore) The tax provision claimed Rs 1.92 crore ( Rs 3 crore).
Talking to ET Now first soon after the board meeting in Bangalore on Friday, TVS-M President and CEO, K N Radhakrishnan said, "The increase in PAT is because of the growth in sales as well as better realisation...Material costs have come down. So, that is the key highlight and certainly all portfolios are doing well".
During 2008-09, TVS-M's net profit remained flat at Rs 31.08 crore ( on stand alone basis) against Rs 31.77 crore in the previous year. Net sales increased by 14 per cent to Rs 3670.92 crore ( Rs 3219.50 crore). Other operating income came to Rs 65.75 crore ( Rs 50.71 crore) and other income Rs 3.02 crore ( Rs 21.20 crore).
On the prospects for two wheelers this year, he said, " We're seeing reasonably good growth and we hope to continue the same performance that we have done"".
Exports declined in Q1 since most of the markets are going through the meltdown. It will continue in the second quarter and it will be slightly better over Q1. But, Q3 we'll see some improvement in the international business. Radhakrishnan said the new TVS flame will certainly start doing well in the executive category.
"We are also looking at launching a new scooter and another motorcycle. These launches are likely to happen in the second half of the year. We are already ready with our 4-stroke 3 wheeler that we are planning to launch in a month's time. So given all the current brands that we have, and the new launches we have planned, we are confident that in the second half of the year we'll be able to see some good growth.
In a statement, the company said it continued the consecutive growth in the first three months despite the challenges of the global economic slow down. Total two wheeler sales marginally increased to 3,50,273 units ( 3, 43,530 units).
Exports, however, were affected with lower sales of 32, 067 ( 42,214 units). The company streamlined its motorcycle portfolio with the launch of TVS Apace RTR 180 in the premium segment and the 2009 model of TVS Flame SR 125 in the executive segment. Both products have got encouraging response in the market and are expected to contribute substantially to their respective segments, the company said.
Developed with AVL Austria, the new TVS Flame model is propelled by a three valve engine that is tuned to the ideal tumble-swirl combination such that city riding on this machine is really smooth and comfortable. TVS Apache RTR 180 is an innovative blend of revolutionary technology and sporty design with an oversquare engine that is programmed to make it the most powerful bikes in its class on Indian roads.
During the quarter, the company, through its Singapore subsidiary, invested Rs 9.51 crore ( $2 Million) in its venture in Indonesia.
India must rein in fiscal gap soon: Advisorndia's government must find ways to rein in its huge fiscal deficit quickly to prevent inflation from spiralling out of hand if the RBI is forced to help finance the gap, a government economic adviser said.
India's budget deficit, expected to reach 6.8 per cent of gross domestic product in 2009, its biggest in 16 years, will force the government to sell an unprecedented 4.51 trillion rupees ($93.6 billion) of bonds in the current fiscal year.
"The most immediate risk is the large fiscal deficit, and the possible financing of the deficit by the RBI, which could lead to greater inflation," Raghuram Rajan, economic adviser to India's Prime Minister Manmohan Singh, said.
The government's plan to cut fertiliser subsidies by providing them directly to farmers in the form of cash and its promise to align domestic fuel prices with international prices will help towards reducing the fiscal deficit, he said.
"The sooner this (fuel price alignment) is done, the more comfortable the medium term budget deficit will be," Rajan said in an e-mail response to Reuters questions ahead of the World Capital Markets Symposium in Kuala Lumpur next month.
The Indian government said after elections in May that it will consider a proposal to eliminate fuel subsidies as early as July in order to balance growth with fiscal prudence.
India's RBI left its short-term rates and banks' cash reserve requirement unchanged as expected on Tuesday and stressed that its priority was to nurture growth, which has been hurt by the global downturn.
It said there were indications inflation may firm up by the end of the year due to increases in commodity prices and easy monetary and expansionary fiscal policies.
Official forecast put inflation at 5 per cent by March next year, although private sector economists are expecting the figure at 6 per cent to 7 per cent due to higher costs of oil, food and other commodities.
"The greater risk for the medium term is that we see few reforms, and more populism ... India has to think about whether it can afford to open its purse so wide without growth," said Rajan.
India's budget, unveiled this month, failed to lay out firm plans to sell state-owned assets and ease foreign investment rules, economists said.
The government may partly fund its budget deficit from the sale of some state-held shares but overall, Rajan said he expected very little appetite for privatization....
Highest refunds by I-T dept in FY08-09: GovtThe highest amount refunded by the income tax department in the last assessment year 2008-09 was about Rs 45 crore, the government informed the Rajya Sabha on Tuesday.
The highest refund issued in assessment year 2006-07 was for Rs 12.77 crore, while a very high amount worth Rs 84 crore was given as refund in the year 2007-08, Finance Minister Pranab Mukherjee said in replying to a question in the Rajya Sabha.
"The issuance of refunds is in accordance with the guidelines. It has been an endeavour of the department to issue refunds to taxpayers at the earliest," Mukherjee said.
However, the number of refunds pending for assessment year 2008-09 in Punjab was 1,91,243 while in Haryana about 14.5 lakh refunds were due.
Among these, refunds of senior citizens pending in Punjab were nearly 2,500 and in Haryana 1,560, he said.
When asked if the staff and the officials were responsible for delay in refunds, he said the delay in issue of refunds is at times attributable to assessees on account of deficiencies in bank account details, wrong address and lack of PAN details.
Explaining further he said, the statutory time limit to process returns and issue refunds for returns received in the financial year 2008-09 is March 31, 2010.
Fiscal, monetary policies help India dodge recession, 'sprint'Fiscal and monetary policies have helped India in dodging the recession and sustaining the economy, the research arm of the rating agency Moody's said.
Calling India a 'sprinter', it said the downward trend in the country's industrial output seemed to have ended, with a pick-up likely due to new infrastructure development.
Investor confidence in India had certainly improved, as reflected in the rapid increase in net capital inflows in the stock market during recent months, Sherman Chan, Moody's Economy.com economist, said in a note on the recovery of the Asia-Pacific region on Wednesday.
"Amid increased sightings of green shoots, the bottom of the global downturn is now in sight," she said, adding that "China, India and Indonesia have dodged recession and maintained strong growth despite the global turmoil."
Key Asia-Pacific economies possess different structural characteristics and have thus embarked on different recovery trajectories. Australia and Korea, she said, would recover fast, Thailand and Singapore would take longer, and Japan will have it tough.
And all these economies are expected to grow in 2010. Next in the recovery race in Asia Pacific region comes the 'joggers'. "Australia, Hong Kong, the Philippines and South Korea will recover swiftly from the annual contraction this year."
Following the 'joggers' are the 'walkers'. "Taiwan, Singapore, Malaysia, Thailand and New Zealand will take a little longer to return to pre-crisis GDP levels," the Sydney-based economist said.
And, in the last comes the 'crawler'. "Japan looks worst off in the region, with a long and tough recovery path ahead due to a sluggish domestic sector," she said.
Japan is the weakest link in the Asia-Pacific region with firms reporting excess capacity, including excess workers. Therefore, the outlook for investment and employment is dismal.
"Japan's GDP will take several years to return to the pre-crisis level. An annual contraction of 6.5 per cent is likely in 2009, followed by an expected rebound of only 0.7 per cent in 2010 and 1.2 per cent in 2011," she said, adding the rapidly ageing population have left policymakers almost powerless in stimulating consumption growth.
nded June 30, while the same was at Rs 696.76 crore during the corresponding period a year ago.
SBI Q1 net up 42%, NPAs also rise
Posted: 2009-07-31 01:15:25+05:30 IST
Updated: Jul 31, 2009 at 0115 hrs IST
Kolkata: The country's largest bank, State Bank of India (SBI), set a blistering pace for 2009-10, clocking a 42% increase in profits for the first quarter. Net profit was at Rs 2,330 crore, up from Rs 1,641 crore in Q1 last year.
Analysts said there was a growth in treasury and retail banking operations, but also pointed out that net non-performing assets—or bad loans—had risen, too. For the quarter, NPAs stood at Rs 8,402.48 crore, from Rs 6,298.44 crore in the same period last year, a rise of 1.55%. Gross NPAs rose to 2.79% from 2.42% in the corresponding period a year earlier.
But bank chairman OP Bhatt said it would be wrong to say SBI was "aggressively" pushing auto and home loans. "Let's not say we are aggressive. I would say we are focused," he said an in an interview to FE earlier this week. "We saw an opportunity and decided to go for it."
This financial year, SBI has slashed lending rates to perk up demand for loans, which are expected to make up for the falling off of trading gains. The bank has cut deposit rates by up to 350 basis points since October, along with prime lending rates by 200 basis points. Even so, the quarterly results show the bank notched up only a marginal rise in loans from last quarter. Credit growth in the Indian banking sector as a whole, according to RBI data, is only 17.6% in Q1.
The better-than-expected results helped SBI shares rise around 4% on the BSE to close at Rs 1722.80 on Thursday.
The total income of the bank rose by 29.8% to Rs 21,041.51 crore, from Rs 16,203.07 crore last year, of which interest income derived from its investment in the bond market grew 26.6% to Rs 17,473 crore, from Rs 13,799 crore. The bank's net interest income—the difference between interest earned and paid—was up 4.32% at Rs 5,026 crore, compared with Rs 4,818 crore. Other income rose 49.29% to Rs 3,589 crore, from Rs 2,404 crore.
Deluged by deposits since last October—and with off-take still low because of the meltdown—analysts said SBI had seen the cost of deposits rise 38%.
Moser Baer India Q1 net at Rs 2.76 cr
New Delhi (PTI): Optical storage maker Moser Baer India (MBI) on Thursday announced Rs 2.76 crore net profit for the first quarter ended June 2009 against the previous fiscal.The Delhi-based firm had reported a loss of Rs 103.98 crore in the same ... More
Dena Bank pays Rs 17.62 crore dividend to govt.
Mumbai (PTI): State-owned, Dena Bank on Friday said it has paid a dividend of Rs 17.62 crore to the Government of India for the year 2008-09.The bank has paid a dividend of 12 per cent to its shareholders.Dena Bank had clocked a net profit of Rs ... More
Canara Bank opens 5 more branches in Delhi
New Delhi (PTI): State-run lender Canara Bank on Friday opened five more branches in the capital-NCR region taking its total branch count to 139 ."With the opening of 5 branches, the network of bank branches in Delhi-NCR has increased to 139 and ... More
|Syndicate Bank's Q1 net nearly triples to Rs 261.57 crore SBT's Q1 net profit registers substantial increase ICSA Q1 net dips 17 p.c. Mining major Anglo American cuts over 15,000 jobs Whirlpool Q1 net up by 3.7 p.c. Hathway Internet unplugs services in Chennai CEO's personality can drive stock performance Recession eases in U.S.; GDP dip smaller than expected Tata Power Q1 profit shoot up 144 p.c. to Rs 397 cr Odyssey Technologies develops software product Dhanalakshmi bank's Q1 net at Rs 10.12 cr Sensex closes at 13-month high, climbs over 282 points Whirlpool Q 1 net up by 3.7 per cent ONGC gets nod to partner L.N. Mittal for Satpayev stake buy Nalco Q1 net profit plunges 76 per cent to Rs 126 crore What recession? Nine U.S. banks pay $32.6b bonus Job loss due to global recession declines, says Kharge Bankers hails additional authentication for card purchases Infosys became first private unit to get CISF protection Havells India Ltd net profit increases 21 p.c. Toyota launches variant of Camry, the New Camry in India Piramal to invest Rs 200 cr on R&D Timex Group posts net profit of 2.43 cr for Q1 Hartmarx's Chairman Homi Patel to resign Sensex opens in green, takes cue from global markets Rupee rises by 13 paise to 48.21 a dollar in early trade Understanding the ongoing gas-pricing dispute|
Economic Times - 4 hours ago
MUMBAI: The country's private airlines have threatened to suspend nation-wide operations on August 18 to protest "high taxes of jet fuel and airport charges," the Federation of Indian Airlines (FIA) announced on Friday.
Pvt airlines to strike on Aug 18, demand govt bailout Moneycontrol.com
Livemint - - 29 minutes ago
Mumbai: Anil Ambani-promoted Reliance Communications Ltd (RCom), India's second largest mobile firm by subscribers, posted a better-than-expected 8.3% increase in net profits to Rs1,637 crore for the quarter ended 30 June, bolstered by a threefold rise ...
India's Reliance Communications Posts 8.3% Rise in Net Profit Wall Street Journal
Economic Times - 3 hours ago
BANGALORE: The ceremony to welcome the latest "entrants" to IT bellwether Infosys Technologies at its Electronic City campus here on Friday was a grand one, with the company's co-founder, chairman and chief mentor NR Narayan Murthy himself doing the ...
Infosys to become first pvt company to get CISF security Times of India
Business Standard - 1 hour ago
The Reserve Bank of India (RBI) will roll back the special monetary measures if the government commits itself to fiscal discipline by chalking out a fiscal consolidation plan and the economy shows more definite signs of recovery, RBI Governor Duvvuri ...
RBI hints at policy rollback Hindustan Times
Will up coordination between monetary, fiscal policy: RBI Moneycontrol.com
Sify - 2 hours ago
State-run Syndicate Bank posted a net profit of Rs.262 crore for the first quarter this fiscal, registering a whopping growth of 198 percent year-on-year from Rs.88 crore in the like period last year.
TVS Motor net profit surges by 157% to Rs 18 cr in Q1 Economic Times
Q1 NIM at 2.20%; see improvement ahead: Syndicate Bank Moneycontrol.com
Moneycontrol.com - 5 hours ago
The Sensex witnessed huge buying interest on the first day of August series and closed July month on a strong note. It closed at 52-week high on the back of strong earnings and the Nifty above the 4600 level.
Sensex retreats after hitting 52-week high Economic Times
Sensex rises 1.8 pct to best close in 13 mths Reuters India
Indian Express - 31 minutes ago
A conman, who duped nearly 2500 investors, including a large number of defence personnel, was arrested in Dehradun on Wednesday. Delhi businessman Naveen Sharma (36), the chairman of the financial companies Money Mantra and Big Leap Multi Trade Limited ...
Hindu - 3 hours ago
New Delhi (PTI): Optical storage maker Moser Baer India (MBI) on Thursday announced Rs 2.76 crore net profit for the first quarter ended June 2009 against the previous fiscal.
Moser Baer India Q1 net at Rs 2.76 cr Hindu Business Line
Moser Baer posts net profit of Rs 27.6 million in Q1 Business of Cinema
Reuters India - 5 hours ago
NEW DELHI (Reuters) - India will upgrade its inflation indices as the manufacturing and services sectors are not well represented in the current composition, the finance minister said in a written reply to Parliament on Friday.
2004-05 to be the new base year for inflation index: FM Economic Times
Press Trust of India - 2 hours ago
New Delhi, Jul 31 (PTI) Hitting out at the US for painting India as an "intransigent actor" in the fight against climate change, Environment Minister Jairam Ramesh today accused Washington of consistently changing goalpost in the fight and termed it as ...
India to assess climate gain; pump millions in forests Reuters India
US needs to build climate partnership with India: Kerry Business Standard
Bloomberg - - 5 hours ago
July 31 (Bloomberg) -- India's rupee climbed to the highest level in almost a month, completing a third weekly advance, on speculation rising investments from abroad will boost the nation's balance of payments surplus.
Indian rupee strengthens past 48/dlr as stocks gain Reuters India
Rupee ends higher, bonds lower Moneycontrol.com
Sify - 2 hours ago
Aluminium maker Hindalco Industries plans to raise $500 million (around Rs.2400 crore) through issue of securities, including global depository receipts (GDRs), in both international and domestic markets.
Hindalco to raise $500 mn via GDRs; Q1 net at Rs 480 cr Business Standard
Hindalco Inds Q1 net profit dips 31% yoy India Infoline.com
Hindu - 3 hours ago
New Delhi (PTI): The government on Friday said loans would be provided at a subsidised rate of six per cent to farmers who pay their short-term crop loans on time.
Off-budget expenditure almost doubles at Rs 97019 cr: Meena Economic Times
Life insurers post 4-fold rise in premium mop up between 2001-09 Business Standard
Business Standard - 8 hours ago
PTI / Bangalore July 31, 2009, 15:25 IST The world's largest carmaker, Toyota, would launch Fortuner in the Indian market on August 24, betting big on its sports utility vehicle.
Toyota rolls out new Camry Deccan Herald
Toyota Launches New Camry! Zigwheels.com
Economic Times - 3 hours ago
CHENNAI: Aban Offshore, hit by the global slowdown, is knocking the doors of investors to repay the debts it raised during its expansionary phase.
Aban Offshore Q1 net dips 10%; to raise $400 mn Business Standard
Aban Offshore Q1 net profit dips 10% yoy India Infoline.com
Sify - - 37 minutes ago
The House of Representatives voted Friday to rush $2 billion into the popular but financially strapped "cash for clunkers" car purchase program, heeding calls from US consumers who hope to keep taking advantage of the trade-in incentives.
Video: Obama Backs Action to Fix 'Cash for Clunkers' The Associated Press
US seeks to continue car rebates BBC News
Economic Times - 5 hours ago
31 Jul 2009, 1843 hrs IST, PTI MUMBAI: Decrease in fuel prices in the Mumbai licence area as compared to the year-ago period brought down Tata Power's revenues in Q1 FY 10 to Rs 2015.62-crore as against Rs 2026.13-crore.
Reuters India - 2 hours ago
By Sruthijith KK - contentSutra Publisher Deccan Chronicle Holdings Ltd today posted Q1 net profit of Rs77.02 crore, up 26% from the year-ago period on ad sales growth and lower newsprint costs.
Lower newsprint costs boosted PAT: Deccan Chronicle Moneycontrol.com
Deccan Chronicle net up 26% at Rs 77 cr Business Standard
Indian Express - 44 minutes ago
While wrapping up the debate on the annual Budget, finance minister Pranab Mukherjee announced concessions aimed at boosting demand in the downturn-hit realty sector.
Interest rate subsidy for mid-segment housing: FM Economic Times
Business Standard - 3 hours ago
PTI / Mumbai July 31, 2009, 20:41 IST India's foreign exchange reserves rose for the second consecutive week to $267.711 billion, up by $1.524 billion, as compared to $266.187 billion in the previous week.
India's FX reserves at $267.711 bln as on July 24 Reuters India
Economic Times - 3 hours ago
BANGALORE\CHENNAI: After reporting a flat growth in net profit during 2008-09, TVS Motor Company has bounced back this year on the back of improved sales. ...
Dhanalakshmi bank's Q1 FY 10 net profit at Rs 10.12-cr Economic Times
Federal Bank Q1 profit jump two-fold to Rs 136 cr Economic Times
Economic Times - 6 hours ago
MUMBAI: The Anil Ambani-led Reliance Capital Friday reported a 55.6 percent fall in net profit to Rs 153.29 crore for the quarter ended June 30 as against ...
RCom Q1 net profit rises 8.3% to Rs 1637 cr Business Standard
RCOM Q1 net profit up 8% yoy India Infoline.com
Economic Times - Jul 30, 2009
MUMBAI: After suffering a Rs 26-crore marked-to-market loss in FY09 (April-March), SBI Life Insurance has bounced back with a Rs 38-crore net profit in ...
SBI net profit soars 42% in Q1 Times of India
SBI profit jumps 42% Calcutta Telegraph
Trading gains lift State Bank of India profit Reuters India
Hindu - 5 hours ago
Mumbai (PTI): Tata Power on Friday reported an over two-fold jump in its net profit at Rs 396.97 crore for the first quarter ended June 30. ...
Tata Chemicals net up 61% on demand push Economic Times
Tata Power's first quarter profit doubles Gaea Times
Economic Times - 11 hours ago
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Race row: Obama hosts beer reunion at White House
Sitting along a picnic table next to the White House's new swing set, the three were yesterday seen drinking beer from clear glass mugs along and munching peanuts and pretzels served in small silver bowls.
As a later addition, Obama also invited the Vice President, Joe Biden, to what the US media has characterised as the beer summit.
The momentous occasion was part of Obama's effort to calm down the racial firestorm which erupted following the arrest of Gates by Henry Crowly, to which the US President added fuel to the fire by stating that the police acted 'stupidly'.
The controversy that included the offended white police officer and the leading black scholar, who also happened to be an old friend of the President, quickly spiralled into a national issue sparking a fierce debate on racial profiling by law enforcement.
Obama, however, later backed off from his remarks, and making a surprise appearance at the daily White House Press conference acknowledged that he made a wrong choice of words.
Sitting along the table Obama opted for Bud Light, while Biden went for Bucker; Gates took Sam Adam Light and Crowley grabbed Blue Moon. Bucker is a non-alcoholic beer.
While Gates and Crowley wore dark suits, Obama and Biden were in white shirts, jackets off. Obama had his sleeves rolled up.
During the brief moment, the press was given a rare opportunity to have a glimpse at the "teachable moment" in the words of Obama; Crowley was seen doing most of the talking. Gates appeared to be listening intently.
At one point Obama laughed heartily. Both Gates and Crowley brought their families to the White House and they toured the East Wing together before the sit-down. Gates brought his kids, fiancee and father. Crowley brought his wife and kids. They met Obama in the Oval Office before moving out into the Rose Garden.
For the past few days the issue has dominated the US media, with a section of them even calling it as a beer summit. Earlier in the day, Obama told reporters that he objected to it.
"It's a clever term, but this is not a summit, guys," Obama said. Hours before the anticipated meeting, Obama said he is "fascinated with the fascination about this evening."
It's three folks "having a drink at the end of the day," and giving themselves a chance to "listen to each other," he said. The goal is to lower the temperature on an event that has become "so hyped and so symbolic." It is to reduce the "anger and hyperbole," and promote "self-reflection," he said.
At the end of the meeting, Obama in a statement thanked Professor Gates and Sergeant Crowley for joining him at the White House this evening for a friendly, thoughtful conversation.
"Even before we sat down for the beer, I learned that the two gentlemen spent some time together listening to one another, which is a testament to them," Obama said.
"I have always believed that what brings us together is stronger than what pulls us apart. I am confident that has happened here tonight, and I am hopeful that all of us are able to draw this positive lesson from this episode," said the US President.
Banks paid bonuses bigger than income: Cuomo
NEW YORK: Bonuses paid to executives at nine banks that received US government bailout money in 2008 were greater than net income at some of the
Cuomo, in a report on months of investigation into compensation paid by the banks, said employee pay "has become unmoored from the banks' financial performance." Representatives of the banks either declined comment on the report or could not comment immediately.
"There is no clear rhyme or reason to the way banks compensate and reward their employees," said the report by Cuomo, New York's top legal officer, who began his probe last October amid taxpayer complaints about Wall Street pay.
He argued that, if firms followed "a more principled" bonus system, they would be less susceptible to poaching of their employees by other firms offering more pay.
"This rationalization of the compensation and bonus system must be accomplished now," said the report, which was sent to US House of Representatives Oversight and Government Reform Committee Chairman Edolphus Towns, a Democrat from New York.
Since nine banks received a total of $125 billion last October in taxpayer money under the Troubled Asset Relief Program (TARP) to help them survive the financial crisis, Cuomo has pressed them for details on billions of dollars paid to executives amid huge losses.
The report said bonuses for Goldman Sachs Group Inc, Morgan Stanley and JPMorgan Chase & Co were "substantially greater" than the banks' net income. Goldman earned $2.3 billion, paid out $4.8 billion in bonuses and received $10 billion in TARP funding, the report said.
Morgan Stanley earned $1.7 billion, paid $4.475 billion in bonuses and received $10 billion in TARP funding, while JP Morgan Chase earned $5.6 billion, paid $8.69 billion in bonuses and received $25 billion in TARP funding.
Cuomo said his office studied historical financial filings and found that at many banks compensation increased in the 2003-2006 bull market years, but stayed at those levels as the mortgage crisis and recession hit. "Thus, when the banks did well, their employees were paid well. When the banks did poorly, their employees were paid well. And when the banks did very poorly, they were bailed out by taxpayers and their employees were still paid well.
"Bonuses and overall compensation did not vary significantly as profits diminished." While Citigroup Inc and Merrill Lynch, bought by Bank of America Corp, lost more than $27 billion each, Citigroup paid $5.33 billion in bonuses and Merrill paid $3.6 billion, the report said. TARP paid the two banks a combined $55 billion.
A spokesman for Bank of America said bonuses were paid to 200,000 bank employees and 30,000 Merrill legacy employees. "The repeated explanation from bank executives that bonuses are tied to performance in a manner designed to promote (national economic) growth does not appear to be accurate," Cuomo said.
Much of Cuomo's investigation and publicity had been focused on Merrill Lynch, but Thursday's report covered all nine banks that received initial TARP money. The office has also investigated bonuses paid by giant insurer American International Group Inc, but it was not included here.
Wells Fargo & Co paid bonuses of $977,500, while losing $42.93 billion according to the report. It said State Street Corp's State Street Bank and Bank of New York Mellon Corp "paid bonuses that were more in line with their net income, which is certainly what one would expect in a difficult year like 2008."
State Street earned $1.8 billion, paid bonuses totaling about $470 million and received $2 billion in TARP funding. Bank of New York Mellon earned $1.4 billion, paid out $945,000 and received $3 billion from TARP.
US becomes Citigroup's biggest shareholder
While a few technical details still remain, the bank has completed a months-long effort to convert preferred shares held by the US government into common stock.
Citigroup on Thursday completed two exchange offers to bolster the capital position of the nation's third-biggest bank, widely considered the most troubled large US lender.
Public investors, private investors and the government swapped close to $58 billion of preferred securities into common stock of the New York-based bank.
Citigroup has said the swaps would leave it with more than 21 billion shares, up from 5.51 billion at the end of June.
The $25 billion swapped by the government is part of its $45 billion infusion from the federal bank bailout plan, the Troubled Asset Relief Program.
Another $20 billion of that sum will remain in the form of preferred shares, throwing off an 8 percent annual dividend.
The higher government stake could add to pressure on Chief Executive Vikram Pandit to improve performance and shed unwanted or toxic assets.
Citigroup has also overhauled upper management and added seven new directors this year.
Earlier Thursday, Citigroup said it will sell a 64 percent stake in Japan's Nikko Asset Management Co to Sumitomo Trust & Banking Co for 75.6 billion yen ($790 million).
Speaking in Kuala Lumpur, Malaysia, Pandit said the bank is moving "extremely fast" on asset sales.
Citigroup agreed to the exchange offers in February as part of a government bailout, following $37.5 billion of losses over the previous five quarters.
The swaps were originally expected to total $52.5 billion. They grew to $58 billion after regulators ordered Citigroup to build a buffer following a "stress test" of its finances.
Citigroup said the swaps will make it one of the world's best-capitalized banks, with about $100 billion of tangible common equity.
Other large Citigroup investors include several sovereign wealth funds, and Saudi Prince Alwaleed bin Talal.
The bank's roots date to when City Bank of New York opened on June 16, 1812, with $2 million of authorized capital.
Citigroup itself was created on October 8, 1998 through the merger of Travelers Group Inc and Citicorp.
Shares of Citigroup fell 4 cents to $3.18 in afternoon trading on the New York Stock Exchange.
US bets on healthcare, green jobs
The health industry, bolstered by the demands of an aging population and supplied by new technologies, has added jobs despite the recession and is destined for further expansion should Obama make good on his promise of affordable medical care for millions of uninsured Americans.
The mix of jobs is likely to shift as preventive medicine gets more emphasis, record-keeping functions are modernised and fewer diagnostic tests are ordered, economists say. "Green" tech, propelled by efforts to cut carbon emissions blamed for global warming, will benefit from an economic stimulus package enacted this year and a climate change bill making its way through Congress. Healthcare and the environment were singled out in a report this month by Obama's Council of Economic Advisers as two sectors projected to be major US job engines over the next several years.
Investments in the two areas "are laying the foundation for long-term economic growth," said Heather Boushey, an economist with the Center for American Progress.
STRONG ECONOMIC MEDICINE
Healthcare has grown 3.7% since the recession began in December 2007, while the labour force as a whole declined 4.7%, said Heidi Shierholz, an Economic Policy Institute economist, citing US Labour Department data. One reason that medicine has held its own during the recession is that nearly 60% of all healthcare costs are covered by the public sector, including programmes like Medicaid and Medicare, helping insulate the industry from hardtimes, said labour professor Eileen Appelbaum of Rutgers University. "People think we have a private health system in this country, but more than half is publicly financed," she said.
Budget strains are starting to take their toll on healthcare jobs in many states, she said. But the Labour Department projects that US healthcare employment will grow 20% above 2006 levels by 2016, even without Obama's proposed overhaul.
Government forecasts for clean energy and green technology jobs as a whole are harder to come by. Economists from the University of Massachusetts and the Center for American Progress concluded in a study last month that the economic stimulus and the climate-change bills would generate $150 billion a year in clean-energy investments, netting 1.7 million new jobs annually. Labour experts say green retrofitting should pick up and produce more jobs once stimulus money begins to flow.
GOING FOR GREEN
Most of those gains would come from retrofits of homes and other buildings to improve energy efficiency and insulation. Other high-growth areas cited in the report included renewable energy sources such as wind and solar energy expanded public transportation and construction of a highly efficient new electric distribution network, known as the smart grid.
US lawmakers to take up pay package bill
The measure, sometimes dubbed "say-on-pay," would provide for annual, non-binding votes by shareholders on top executives' pay or arrangements like "golden parachutes" in the event their employment is terminated.
US government regulators could also ban any incentives-based pay agreement that "encourages inappropriate risks" by affected institutions that "could threaten the safety and soundness" of such companies "or could have serious adverse effects on economic conditions or financial stability," according to the text of the bill.
And financial firms would be required to disclose any compensation structures that include incentive-based elements. The House of Representatives' Financial Services Committee approved the measure earlier this week by a 40-28 vote.
It was the fourth straight month of decline, matching a median market forecast and accelerating from a 1.1 percent drop in May in another sign the world's second-largest economy is stuck in the doldrums with rising job losses and falling wages hurting household spending.
The Bank of Japan is forecasting two years of deflation, so price falls alone are unlikely to push it back into full-blown quantitative easing, which in Japan involved flooding the banking system with cash to meet a specific monetary target.
But the central bank's view -- that price falls won't accelerate once the effect of last year's energy price spike fades -- may be questioned as it becomes increasingly clear that final demand is playing a larger part in overall price falls.
Roughly 70 percent of the drop in the core consumer price index (CPI), which excludes food prices but includes energy costs, was due to falling energy prices, data showed on Friday.
But the so-called core-core CPI, which cuts out the sliding energy bill, fell 0.7 percent from a year earlier and the decline has gathered steam for four straight months, suggesting deflation may persist unless household demand picks up.
"If you look at the core-core CPI, the pace of declines has accelerated, suggesting price competition has been putting downward pressure on prices. Consumers are becoming more conscious of cheaper products," said Yasuhiro Onakado, chief economist at Daiwa SB Investments.
It was the biggest fall since December 2004 in this index, which is similar to underlying inflation indicators used in Europe and North America.
Prices fell for goods ranging from flat-screen television sets and cellphone bills to overseas package tours.
Of the range of items that make up core CPI, 47 percent saw price falls in June from a year earlier, up from 39 percent in May. It was also the first time in three years that the number of goods whose prices fell exceeded the number logging price gains, adding to evidence that deflation was broadening.
"Firms including those in the retail sector are competing to get demand through offering cheaper prices, and that could put pressure on their profits," Onakado said.
Japanese government bond futures were down on the day, focusing on gains in the stock market as the data was in line with market expectations.
|Reliance Commn Q1 consolidated net up at Rs 1,636 cr |
NCAER projects 7.2% GDP growth in current fiscal
Tata Power Q1 PAT zooms to Rs 397 cr
Sensex jumps 282 points to 13-month high of 15,670.31
| Rupee appreciates another 40 paise vs dollar|
Kotak Mahindra Bank unveils new brand tag
Subhiksha CDR process may be extended
Rides on other income, investment depreciation write-back. The country's largest bank State Bank of India has posted a 42 per cent rise in net profit at Rs 2,330 crore for the first quarter ended June 30, aided by a robust growth in ...
Ambani gas case: Apex court to fix date for final hearing
New Delhi, July 30 The Supreme Court on Thursday indicated that it would decide on September 1 the date of final hearing of the cross-appeals filed by both Ambani group firms, as also a petition by the Centre against a Bombay High Court ...
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ICSA India (Rs 187.35): Buy
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BSNL profits drop 80% as expenses rise
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M&M net profit surges to Rs 401 cr
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SAIL profit drops 28% on lower prices, higher input costs
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Non-life PSU insurers park funds in G-Secs, bank CDs
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Inflation rate falls for 7th straight week to 1.54%
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Wipro to go aggressively after Govt contracts
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L&T Finance not looking at equity listing for now
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No entry load regime: MF distributors rejig strategies
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Govt to probe 'some' violation of norms in rice exports
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