Indian stocks & selected business news extracts (December 24, 2008)

Weakness in the trading continues at stock exchanges in Mumbai. The Bombay Stock Exchange’s benchmark index, Sensex closed at.9568.7, down by 118 points. The NSE’s Nifty-50 closed at 2916.8, down by 51.8 points. In bullion market, the yellow metal is being quoted at Rs.12,927/10gm and silver at Rs.17,150/kg. Crude oil was trading low. Nymex crude was trading at around 38 US dollars a barrel. The US dollar was at around Rs.48.

Fortis Healthcare Board approves issue of Right shares worth Rs.1000 Cr to fund current projects.

Government to infuse stimulation to boost domestic demand through duty cuts. Likely hike in tax exemption.

World Bank debarred the Hyderabad-based Satyam Computer Services for 8 years for lack of documentation on invoices and improper benefit to the bank staff.

Selected Indian business news extracts (December 23, 2008)

Weakness in the trading continues at stock exchanges in Mumbai. The Bombay Stock Exchange’s benchmark index, Sensex closed at.9686.75, down by 241.6 points. The NSE’s Nifty-50 closed at 2968.6, down by 70.6 points. In bullion market, the yellow metal is being quoted higher at Rs.13,168/10gm and silver at Rs.17,782/kg. Crude oil was trading low. Nymex crude was trading at around 39.9 US dollars a barrel. Expect commodity prices to fall on global slow down. The US dollar was at around Rs.48.8.

Transfer of spectrum allowed within group entities for 3G, broadband services – says DoT

Foreign Exchange Reserve position is comfortable – says Government Eco Panel Head.

RIL D6 Block gas output is likely to commence by January, 2009. Reliance Communications GSM plans to be launched shortly in 100 cities in India. Trials are on.

Selected Indian business news extracts (December 22, 2008)

Wide-spread losses witnessed today in stocks trading at stock exchanges in Mumbai. The Bombay Stock Exchange’s benchmark index, Sensex closed below 10,000, at.9928.3, down by 171.5 points. The NSE’s Nifty-50 closed at 3039.3, down by 38.2 points. In bullion market, the yellow metal is being quoted higher at Rs.12,963/10gm and silver at Rs.17,765/kg. Crude oil prices flared up. Nymex crude was trading lower at around 42.6 US dollars a barrel. Money market was subdued. The US dollar was at around Rs.47.9.

Current crude prices are straining the margins: says ONGC Chief.

Reliance Industries Limited is under pressure from US to cease gasoline shipments to Iran. Reliance at times provided as much as 30% of Iran’s need for imported petroleum.

Anil Ambani incorporated National Agriculture Produce Marketing Company (APMC), a subsidiary of Reliance Money, to offer spot trading in agro produces, initially on a sate by state basis. The exchange will start operations in select commodities such as castor and sesame in Gujarat. .

Selected Indian business news extracts (December 19, 2008)

The Sensex continues to be above 10,000. Wide-spread gains in all sectors such as realty and auto. The Bombay Stock Exchange’s benchmark index, Sensex closed at 10,099.9, up by 23.5 points. The NSE’s Nifty-50 closed at 3077.5, up by 16.7 points. In bullion market, the yellow metal is being quoted at Rs.12,757/10gm and silver at Rs.17,457/kg. Nymex crude was trading lower at around 36.1 US dollars a barrel. The US dollar was at around Rs.47.2.

Chanda Kochhar is appointed as MD and CEO of ICICI bank till March 2014. All the best to Chanda. K.V. Kamth is named non-executive Chairman.

Reliance Industries Limited is right-sizing its work-force. New investments such as semi-conductor business are on hold.

India government is likely to table The Insurance Bill in February, 2009. Foreign Direct Investment is to be hiked to 49% from 26% at present.

Selected Indian business news extracts (December 18, 2008)

The Sensex closes above 10,000 today. Wide-spread gains in all sectors. The Bombay Stock Exchange’s benchmark index, Sensex closed at 10,076.4, up by 361.1 points. The NSE’s Nifty-50 closed at 3060.7, up by 106.4 points. In bullion market, the yellow metal is being quoted at Rs.13,184/10gm and silver at Rs.18,050/kg. Nymex crude was trading lower at around 40.2 US dollars a barrel. The US dollar was at around Rs.47.

More duty cuts expected, says the Finance Minster.

Indian Government is bringing out News Telecast norms. Self regulation is best regulation.

IMS Health, the reference point for global pharmaceutical business data and intelligence, has reported that the annual prescription sales of generics grew by only 3.6% as compared to 11.4% for the corresponding period a year ago.

Selected Indian business news extracts (December 17, 2008)

The stock markets in Mumbai witnessed fall in almost all stock prices. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9715.3, down by 261.7 points. The NSE’s Nifty-50 closed at 2954.3, down again by 87.4 points. In bullion market, the yellow metal is being quoted higher at Rs.13,210/10gm and silver at Rs.18,002/kg. Nymex crude was trading lower at around 43.1 US dollars a barrel. The US dollar was at around Rs.47.6.

As per the report, Satyam’s deal with Maytas Infra is called off due to opposition from the Satyam’s Board. The stock was being traded at 30% lower than yesterday’s price.

Anil Dhirubhai Ambani Group (ADMG) could face hefty fine if the Directorate of Enforcement (ED) proves charges of illegal withdrawals from their foreign bank accounts.

A lot is expected from Reliance and ADMG to the shareholders on Dhirubhai Ambani’s birthday which falls on December 28. RPL may go on stream on that day.

Selected Indian business news extracts (December 16, 2008)

The stock markets in Mumbai witnessed smart recovery, sensex hits 10,000-mark at the day’s high. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9976.9, up by 144.6 points. The NSE’s Nifty-50 closed at 3041.7, up again by 60.5 points. Gainers are stocks from Cement, Realty, Technology and Oil &gas sectors. In bullion market, the yellow metal is being quoted at Rs.12,867/10gm and silver higher at Rs.17,449/kg. Nymex crude was trading lower at around 44.7 US dollars a barrel. The US dollar was at around Rs.48.

HCl Technology completes AXON Group buy-out.

DoT, Government of India seeks audit of Reliance Comm’s revenues. As per the report, discrepancy of over 23% was seen in Mobile’s revenues.

Enforcement Directorate (ED) probes misuse of UBS, AG, London accounts – Money laundering probe. RNRL, Reliance Energy are under the ED scanner for possible FEMA violations.

Selected Indian business news extracts (December 15, 2008)

The stock markets in Mumbai witnessed smart recovery. Strong start to the week. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9832.4 up by 142.3 points. The NSE’s Nifty-50 closed at 2981.2, up by 59.8 points. In bullion market, the yellow metal is being quoted at Rs.12,861/10gm and silver higher at Rs.17,269/kg. Nymex crude was trading higher at around 48.5 US dollars a barrel. The US dollar was at around Rs.48.1.

It is predicted that India is going out-perform other emerging markets. Government is offering sops to stimulate growth.

PSU Banks are offering new home packages with more sops to stimulate demand in housing sector. Interest rate for housing loans upto 5 lakh not to exceed 8.5%.

Indian infotech sector is main focus of Chinese spying. The computers of top executives are being compromised by Chinese hackers and privileged information is being leaked out – corporate espionage is on the rise (DNA News).

Indian nuclear power sector for private players

GVK Power & Infrastructure is in talks with global majors for collaboration in nuclear power generation as per the Executive Chairman of the firm. Already Indian companies such as Reliance Power and Tatas are planning to enter into the nuclear power sector. The sector is now expected to open up in a big way with the India signing of nuclear deals with US, France and Russia.

India should hurry up with the legal and regulatory changes required to be made for application of radiation for power generation in private sector. Trained man power availability in this specialized field needs to be ensured by the concerned agencies. Any investment in nuclear power sector also should take into account the higher gestation period, of the order of 8-10 years.

Selected Indian business news extracts (December 12, 2008)

The stock markets in Mumbai today witnessed smart recovery after initial slide. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9690, up by 44.6 points. Banks, fertilizer stocks recovered. The NSE’s Nifty-50 closed flat at 2921.3, up by 1.2 points. In bullion market, the yellow metal is being quoted at Rs.12,677/10gm and silver at Rs.16,938/kg. Nymex crude was trading at around 44.9 US dollars a barrel. The US dollar was at around Rs.48.5.

Final bids for 3G will be on January 5, 2009. 3G memorandum released.

For the first time, IIP for October was negative, indicating setback for economy. Howevr, the expected IIP for the next three months is 2-4%.

Selected Indian business news extracts (December 11, 2008)

The stock markets in Mumbai were choppy. The Bombay Stock Exchange’s benchmark index, Sensex closed today at 9645.5, down by 9.4 points. The NSE’s Nifty-50 also closed flat at 2920.15, down by 8.1 points. In bullion market, gold dazzles. The yellow metal is being quoted at Rs.12,800/10gm and silver at Rs.17,332/kg. Nymex crude was trading at around 43.8 US dollars a barrel. The US dollar was at around Rs.48.4.

Inflation eases again. Inflation falls to 7-month low of 8% from 8.4%, for the week ended on November 29, 2008.

Monetary policy steps yielded positive results, says Governor, Reserve Bank of India. Banks consider lending rate cuts for housing and small business. Second economic stimulus package next week, says Commerce Minister.

Selected Indian business news extracts (December 10, 2008)

The stock markets in Mumbai were going strong. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9654.9, up by 492 points. The NSE’s Nifty-50 also closed higher at 2928.2, up by 144.2 points. In bullion market, gold is being quoted at Rs.12,441/10gm and silver at Rs.16,956/kg. Crude prices were volatile. Nymex crude was trading at around 43 US dollars a barrel. The US dollar was at around Rs.50.

A US business daily reported that the former CEO of Vodafone Group, Arun Sarin is among those being considered by board members at Yahoo to take the top job at the internet firm.

Sony Corporation plans to eliminate 16,000 jobs in the largest reduction announced by a Japanese company since the onset of recession world wide and the credit crunch.

Selected Indian business news extracts (December 8, 2008)

The stock markets in Mumbai were going strong today. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9162.6, up by 197.4 points. The NSE’s Nifty-50 closed at 2784, up by 69.6 points. In bullion market, gold is being quoted at Rs.12,323/10gm and silver at Rs.16,875/kg. Nymex crude was trading low at around 43.2 US dollars a barrel. The US dollar was at around Rs.50.

PM declares economic stimulus package to boost infrastructure. The government announced 4% cut in Cenvat rate to boost demand of commodity in the domestic market. Steel prices to come down. Auto prices to fall by 4% or more.

Mumbai needs a CEO to fight terrorism

The great Mumbai city was leaderless for three days during the terrorist’s war on the city. Media took full control and of-course is still trying to get some concrete action plan for city’s security. The city Mumbai generates a significant fraction of the revenues for the state and central government.

It is in everybody’s knowledge that the corruption and indifference attitude of the politicians and bureaucrats are responsible for the sorry state of affairs in Mumbai. When politicians of Narayan Rane's kind talk, filth comes out! Until now, even the public was indifferent to the severe civic and security problems facing the mega city. Now that the members of the public are aware of their responsibilities (thanks to the media), the City needs a Good CEO to steer the city to a safe, secure and prosperous destination.

If Indian industry can hire a good CEO of the kind Nandan Nilekani to steer their empires to prosperity, why not a CEO for Mumbai to empower the city to win the battle against terrorism? It is possible.

Selected Indian business news extracts (December 3, 2008)

The stock markets in Mumbai were choppy. The Bombay Stock Exchange’s benchmark index, Sensex closed at 8747.4, up 8.2 points. The NSE’s Nifty-50 closed at 2656.4, down by 1.35 points. Commodity markets were volatile. In bullion market, gold is being quoted at Rs.12,523/10gm and silver at Rs.16,100/kg. Crude and edible oils decline sharply. Nymex crude was trading low at around 47.2 US dollars a barrel. The US dollar was at around Rs.50.

The US based global power major is believed to be interested in acquiring some fresh assets in India. The company is negotiating with the Chennai-based Indo Tech Transformers to buy out the promoter stake.

British Airways is in talks with Australia’s Qantas Airways about a potential merger of the airlines.

Terrorism insurance risk cover

Spate of terrorist attacks across India has resulted in people rushing for terrorism insurance risk cover for property. The insurance companies cover the risk through Common Terrorism Insurance Pool of Rs.1,200 Cr. The spate of claims is bound to deplete the pool. It is reported that the Insurance Regulatory Development Authority (IRDA) is planning to meet soon to discuss the modalities of revising the rates for providing the terrorism insurance risk cover.

In India, there are 12 public and private sector insurance companies that provide the insurance cover as an add-on cover to the standard fire insurance policy. The premium is Rs.0.21 per Rs.1000 insured. This is going to be raised.

Selected Indian business news extracts (December 2, 2008)

Asian markets ended deep in the red. The stock markets in Mumbai recovered by 300 points from the day’s low. Infra and realty stocks gained. The Bombay Stock Exchange’s benchmark index, Sensex closed at 8739.2, down by 100.6 points. The NSE’s Nifty-50 closed at 2657. 8, down by 25.1 points. In bullion market, gold is being quoted at Rs.12,488/10gm and silver at Rs.16,022/kg. Nymex crude was trading low at around 48.7 US dollars a barrel. The US dollar was at around Rs.50.

The Mumbai-based Tata Motors, the makers of Jaguar and Land Rover vehicles, will borrow $1.2 billion to refinance debt from the acquisition.

Recession in the US and Europe has begun to affect India with exports declining 12% in October. Imports registered 10.6% growth in October over the previous year.

Accident insurance – cover for terrorist attacks

Following the terrorist attack in Mumbai, financial advisors are flooded with questions on accident insurance, such as whether personal accident insurance covers injuries sustained in terrorist attacks. Some say “public sector companies cover it, but private sector firms don’t”. The agents may take gullible public for a ride if one is not inquisitive while buying the insurance cover.

One should confirm from the respective insurance company that the coverage exists or not. It is also suggested that as a guideline, the quantum of personal insurance cover should be at least 3 to 4 times the annual income since most handicap benefits are a percentage of the total cover.

Selected Indian business news extracts (November 28, 2008)

Mumbai was under siege yesterday by the terrorists. The stock markets in Mumbai remained closed. However, the city has taken this in its stride and today stock markets somewhat rallied. The Bombay Stock Exchange’s benchmark index, Sensex closed at 9092.7, up by 66 points. The NSE’s Nifty-50 closed at 2755, up by 2.8 points. In bullion market, gold is being quoted at Rs.13,000/10gm and silver at Rs.17,037/kg. Nymex crude was trading at around 53.3 US dollars a barrel. The US dollar was at around Rs.50.

India's inflation eases to 6-month low of 8.84% in the week closing November 15, 2008.

The terrorist attack on two iconic South Mumbai hotels, Oberoi and Taj may impact adversely the hotel business, aviation and tourism industry in general.

Indian-born billionaire Lakshmi Mittal has put on hold his investments in the $10billion refinery-cum-petrochemical project planned in Vizag on fears of a recession.

Selected Indian business news extracts (November 26, 2008)

The Bombay Stock Exchange (BSE)’s benchmark index, Sensex closed with a strong note, at 9026.7, up by 331.2 points. The NSE’s Nifty-50 closed at 2752.2, up by 98.2 points. In bullion market, gold is being quoted at Rs.12,990/10gm and silver at Rs.17,200/kg. Crude prices are getting stabilized. Nymex crude was trading at around 51.6 US dollars a barrel. The US dollar was at around Rs.49.5.

Situation is conductive for fuel price cut, says Indian Petroleum Minister.

The government expects Rs.35,000 Cr from the 3G auction, says Communications Minister.

Mukesh Ambani to start second oil refinery.

Transporters across the country are planning to suspend their operations indefinitely with effect from December 21, 2008. Their demands include reduction in diesel prices, and 6 months moratorium on monthly installments towards repayment of truck finance.

Unfair trade practice by beauty-products manufacturers

For years, the companies such as P & G, Hindustan Unilever, and Ponds have been playing on the consumer’s preference (?) for white skin with false claims in the advertisements. A good example is Fair and Lovely advertisement. One of my friends with dark skin has used the cream for over 2 decades without any change in the color. The latest products to hit the market are: Olay Total Effects (anti-ageing cream) and some Garnier products.

It is high time that the consumers forward their grievances to the industry watchdog Advertising Standards Control of India (ASCI) and prevail upon to take stringent actions against these companies for unsubstantiated claims through the advertisements. In general, such advertisements need to be regulated.

Selected Indian business news extracts (November 25, 2008)

The Bombay Stock Exchange’s benchmark index, Sensex closed at 8695.5, down by 207.6 points. The NSE’s Nifty-50 closed lower at 2654, down by 54.2 points. Weak economic data and recession fears continue to grip the market. In bullion market, gold is again volatile and it is being quoted at Rs.13,123/10gm and silver at Rs.17,560/kg. Crude prices stabilized. Nymex crude was trading higher at around 52.3 US dollars a barrel. The US dollar was at around Rs.50.

Citi gets $306 billion lifeline approval from US Federal regulators. Citi shares jump 60% in NYSE. US government however, puts a cap of 1% per share on the dividend. Citibank India is doing well.

Air India and Kingfisher Airlines are planning to bring down the fare by 12-15%.

India’s largest lender State Bank of India said that it has entered into a joint venture with Insurance Australia Group for its foray into the general insurance business.

Selected Indian business news extracts (November 24, 2008)

The Mumbai Stock Exchange’s benchmark index, Sensex closed at 8903, down by 12.1 points. The NSE’s Nifty 50 closed slightly higher at 2708, up by 14.8 points. Weak economic data and recession fears are gripping the market. In bullion market, gold is volatile and it is being quoted at Rs.13,078/10gm and silver at Rs.16,826/kg. Gold is considered as safe heaven investment. Crude prices eased further. Nymex crude was trading low at around 49.89 US dollars a barrel. The US dollar was at Rs.50.06.

Cobra beer business is up for sale for an estimated 200 million Pounds.

Citi India has equity assets in over 130 companies are worth Rs.8.6 thousand Crores. The Citi Group still holds $20 billion of mortgage-linked securities on its books.

Selected Indian business news extracts (November 14, 2008)

The Mumbai Stock Exchange’s benchmark index, Sensex slipped further down today. The sensex remained below the 10,000 level, at 9385.4, down by 150.9 points. The NSE’s Nifty 50 closed lower at 2810, down by 38 points. Banking, auto and realty stocks were down. In bullion market, gold is being quoted at Rs.11,653/10gm and silver at Rs.16,230/kg. Crude prices eased further. Nymex crude was trading low at around 57.6 US dollars a barrel. The US dollar was at Rs.49.

Inflation in India slowed down to 8.98% in the week ended November 1, 2008. It is the first time in 5 months that the inflation is at single digit.

The government is planning to impress upon the banks to accelerate lending to realty sector which is facing acute shortage of funds.

Global financial think tank,G20 plan to meet this weekend. It is an emergency summit to decide on how to contain the damage from the global financial crisis. Indian Prime Minister will be present at the summit.

Selected Indian business news extracts (November 7, 2008)

The Mumbai Stock Exchange’s benchmark index, Sensex showed upward trend today. However, the sensex remained below the 10,000 level, at 9964.2, up by 230 points. The NSE’s Nifty 50 closed higher at 2973, up by 80.3 points. In bullion market, gold is being quoted at Rs.11,549/10gm and silver at Rs.16,970/kg. Crude prices eased further. Nymex crude was trading low at around 62 US dollars a barrel.The US dollar was at Rs.47.6.

There is slowdown everywhere in the industry. Companies, such as Ashok Leyland, Tata Motors, are reducing production of commercial vehicle.

Home, auto and other loans are set to get cheaper. The public sector banks cut PLR by 75 BPS. This will translate into lowering of EMIs. Slashed rates may boost realty sector.

Selected Indian business news extracts (November 6, 2008)

The Mumbai Stock Exchange’s benchmark index, Sensex showed high volatility today. The sensex closed again below the 10,000 level, at 9734.2, down by another 385.8 points. The NSE’s Nifty 50 closed lower at 2892.6, down by 102.3 points. There were overall loses in the market. In bullion market, precious metals were also subdued and gold is being quoted at Rs.11,519/10gm and silver at Rs.17,046/kg. Crude prices eased further. Nymex crude was trading low at around 64 US dollars a barrel. The US dollar was at Rs.47.66.

Bill Gates says that the recession in US will not last long. It may be there for 6 months.

Foreign and private sector banks expressed their inability to reduce lending rates citing non-availability of liquidity.

Slump in demand for steel forces world’s largest steel maker Arcelor Mittal to cut production by one-third. Commercial vehicles makers cut production. Hyundai feels the heat on the exports of cars as Europe also slips into recession. New auto export hub in Gujrat.

Obama win may boost carbon market. Indian projects could get access to clean technology from the US, depending on how soon the Democrats come up with a plan of action on global warming.

Selected Indian business news extracts (October 23, 2008)

The Mumbai Stock Exchange’s benchmark index, Sensex is going down a bottom-less pit. The sensex closed below the 10,000 level, at 9771.7 down by another 398 points. The NSE’s Nifty 50 closed at an unbelievable level of 2943, down by 122 points. There were overall loses in the market. In bullion market, precious metals were also subdued and gold is being quoted at Rs.11,570/10gm and silver at Rs.16,911/kg. Crude prices eased further. Nymex crude was trading low at around 67 US dollars a barrel. Rupee loses further against the dollar. The US dollar was at Rs.49.8.

The inflation is easing and it stood at 11.07% as on October 11, 2008. Aviation industry is expecting fuel price cut in view of the decline in crude oil prices.

IT companies, WIPRO and TCS report increase in profit for Q2.

External Commercial Borrowing (ECB) norms are further liberalized to facilitate telecom License fee for 3G spectrum.

Selected Indian business news extracts (October 13, 2008)

There were overall gains in the stock markets in Mumbai’s Dalal Street. The Mumbai Stock Exchange’s benchmark index, Sensex closed at 11,332, up by 804 points! The NSE’s Nifty 50 closed at 3490.7, up by 210.7 points. India government may ban short-selling of stocks to control market slide.

In bullion market, precious metals were subdued today and gold is being quoted at Rs.13,249/10gm and silver at Rs.18,460 /kg. Nymex crude was trading low at around 81US dollars a barrel. Rupee loses further against the dollar. The US dollar was at Rs.48.1. Cotton declines.

European markets also gain. UK government brings out $64 billion lifeline for banks to build trust and confidence in the banking system. The Indian private banking giant says that the ICICI financial health is stable and there are no loan defaulters in foreign operations.

Selected Indian business news extracts (October 8, 2008)

Stock markets were choppy in Mumbai’s Dalal Street. The stocks crashed further to a new low level. The Mumbai Stock Exchange’s benchmark index, Sensex closed at 11,328, down by another 367 points. The NSE’s Nifty 50 closed at 3513, down by 92.9 points. In bullion market, precious metals flared up and gold is being quoted at Rs.13,892/10gm and silver at Rs.19,735 /kg. Nymex crude was trading low at around 87 US dollars a barrel. Rupee loses further against the dollar. The US dollar was at Rs.48.0.

IMF cuts down India’s GDP forecast for 2008 to 7.9% from 8.0%.

International Airport to come up at Tirupati. Good for NRIs and tourists to India. They can have Balaji’s Darshan first.

Selected Indian business news extracts (October 7, 2008)

Stock markets were choppy in Mumbai’s Dalal Street. The stocks crashed to a new low level. The Mumbai Stock Exchange’s benchmark index, Sensex closed at 11,695, down by another 105 points. The NSE’s Nifty 50 closed at 3606, up by 4.2 points. In bullion market, gold is being quoted at Rs.13,441/10gm and silver at Rs.19,289/kg. Nymex crude was trading low at around 90 US dollars a barrel. Rupee loses further against the dollar. The US dollar was at Rs.47.9.

The Indian stock market regulator, SEBI has removed the restrictions on issuing participatory notes (P-notes) by foreign investors to ease foreign fund inflows.

Tata’s Nano plant is shifting to Ahemdabad, Gujarat. West Bengal’s loss is Gujarat’s gain. Tatas are planning to manufacture 2.5 to 3 lakh cars in the first phase.

Revenue collection by direct taxes in India is up by 32.54% during the first half of the current fiscal. Corporate tax contributed significantly.

Selected Indian business news extracts (October 6, 2008)

Stocks in Asia, Europe plunges. Carnage in Mumbai’s Dalal Street. The stocks crashed to a new low level. The Mumbai Stock Exchange’s benchmark index, Sensex closed at 11,801, down by 724 points! The NSE’s Nifty 50 closed at 3602, down by 216 points. In bullion market, gold is being quoted at Rs.13,193/10gm and silver at Rs.18,949/kg. Nymex crude was trading low at around 90 US dollars a barrel. Rupee loses further against the dollar. The US dollar was at Rs.47.8.

Reserve Bank of India cuts CRR by 50 BPS to infuse some liquidity, to the tune of about Rs.20,000 Crore into the market.

Japan’s Nomura signs a deal to buy-out Lehman’s India operations. 2,000 jobs are safe.

The much awaited comprehensive insurance bill, which seeks to raise foreign direct investment cap in private sector to 49% from 26% is likely to be introduced in the forth-coming session of Indian Parliament.

Global bailout package size to meet the credit crisis world over nears US$2 trillion, roughly double the India’s GDP as on today.

Selected Indian business news extracts (26 August, 2008)

Stocks closed in a week note at Mumbai stock exchanges today. The downward slide continued. The Bombay Stock Exchange’s benchmark index, Sensex closed at 13,102, down by 445 points. Nifty 50 closed at 3985.2, down by 125.3 points. In bullion market, gold is being quoted at Rs.13,028/10gm and silver at Rs.20,861/kg. Nymex crude was trading at around 105.8 US dollar a barrel. Rupee loses further against the dollar. The US dollar was at Rs.46.55.

US economy is in danger, says US President George Bush. He announced the summit with the presidential candidates and Congressional leaders seeking support for his US$700 billion-Wall Street rescue plan.

Japan’s Honda Motor Co has decided to set up an R & D Centre for cars in India to understand better the market’s requirements.

The Bombay High Court has accepted a Rs.10,000 Crore defamation suit by ADAG Chief Anil Ambani against elder brother and RIL Chief Mukesh Ambani for his alleged remarks published in an American daily.

US AIDS programme suspends procurement of anti-retrovirals from Indian pharma major Ranbaxy in the wake US FDA’s decision on “import Alerts”.

Selected Indian business news extracts (25 August, 2008)

Stocks closed in a week note at Mumbai stock exchanges today. The Bombay Stock Exchange’s benchmark index, Sensex closed at 13,547, down by 145.3 points. Nifty 50 closed at 4110.5, down by 50.7 points. In bullion market, gold is being quoted at Rs.13,115/10gm and silver at Rs.20,945/kg. Nymex crude was trading at around 104 US dollar a barrel. Rupee loses further against the dollar. The US dollar was at Rs.46.2.

Singur Nano Plant is being dismantled by Tatas.

Indo-US nuclear deal is introduce in the US House of Representatives.

No food security concern right now in India

The current financial crisis in US and Europe will not affect the developing countries says the World Economic Report prepared by United Nations Conference on Trade and Development (UNCTAD).

US FBI is investigating a possible mortgage fraud in the collapse of banking giants –Fannie Mae, Fredie Mac, Lehman Brothers and AIG – a media report said.

Mumbai – Selected business news extracts

Stocks closed in a week note at Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 13,570.3, down by 424.6 points. Nifty 50 closed at 4126.9, down by 96 points. In bullion market, gold and silver were up, gold is being quoted at Rs.13,123/10gm and silver at Rs.20,780/kg. Nymex crude was trading at around 107 US dollar a barrel. Rupee loses further against the dollar. The US dollar was at Rs.45.8.

The Reserve Bank of India increased the ceilings on the External Commercial Borrowings (ECB) to US$500 million from the existing level of $100 million in each financial year. This is likely to make availability of funds to India companies.

Japan’s Nomura Holdings buys Lehman Asian operations for $525 million.

Government of India approved 28 proposals for Special Economic Zones (SEZs), including those of L&T, JSW Bengal Steel and Bharat Forge, entailing total investment of 72,000 Crore rupees.

Goldman & Morgan will be subjected to tighter regulations from several US governmental agencies. They will have access to full array of the Federal Reserve Bank’s lending facilities.

Indian Energy Policy

The Indian new integrated energy policy envisages governance of nuclear energy also. Chairing a full panel meet of Planning Commission, Prime Minister calls for appropriate energy pricing to provide the incentives needed for efficient use of energy and for investment for expanding the supplies. To meet the growing energy demand, the country needs to expand all its energy resources. The policy advocates market determined prices of energy.

In nuclear energy scenario, to see signififcant contribution, the governement should move quickly to encourage as many private players as possible since the gestation period is comparatively long and initial investment is quite large. In addition to the public sector Unit, NPCIL, private players, such as Tata Power, Reliance Power and JSW also want to enter the nuclear power scenario. However, there are issues to be resolved such as security of the facilities, regulatory aspects and the liability paymnet to the affected public in case of any accidents.

With the Indo-US nuclear deal comming through, the country is becoming more and more import-dependent, which makes it vulnerable to uncertainty of international prices and reliability of supplies.

Mumbai Stock Markets –Selected news extracts

Stocks moved in a narrow range at Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 13,995.4, down by 47.3 points. Nifty 50 closed at 4223, down by 22.2 points. In bullion market, gold and silver were up, gold is being quoted at Rs.12,827/10gm and silver at Rs.20,128/kg. Nymex crude was trading at around 107 US dollar a barrel. Rupee rises. The US dollar was at Rs.45.4.

Global markets may be near a bottom. Expect Asian markets to remain choppy. Financial data providers are hit. Thomson Reuters begun cost cutting measures.

Goldman & Morgan will be regulated by US Federal Reserve.

Nomura is trying to clinch a deal to buy-out Asian arm of Lehman Bros.

Reliance oil flow: Mukesh Ambani says that the challenge of value creation lies in building real assets. He announces the first commercial flow of oil from the depths of the east coast. With the Reliance’s contribution, the oil & gas contributes over 40% to India’s Energy Sector.

Mumbai Stock Markets –Selected news extracts (19/9/2008)

What a comeback! today again, there were some more gains at Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,042.3 up by 726.7 points. Nifty 50 closed at 4245.2 up by 207 points. In bullion market, gold and silver were down, gold is being quoted at Rs.12,617/10gm and silver at Rs.19,345/kg. Nymex crude was trading at around 101 US dollar a barrel and the US dollar was at Rs.45.8.

India equipped to tackle the financial crisis: The regulators, IRDA and RBI have assured the Finance Minister that the US crisis is not going to affect India financial sector. The net non-performing assets of the entire banking sector are less than 2%, and it is well capitalized. The capital adequacy ratio is around 13% as against the statutory requirement of 8 to 9%.

Morgan Stanley looks for a buyer. Deutsche Bank laps up Morgan India sale.

Inflation rose moderately to 12.14% for the first week of September, 2008 due to increase in rates of some food items.

The US financial crisis is expected to have an impact on the global carbon credit market. Morgan Stanley and Lehman Bros are said to have huge carbon assets.

Mumbai Stock Markets – Selected news extracts

Today, there were some gains at the fag-end of the trading hours at Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 13,315.6 up by 52.7 points. Nifty 50 closed at 4038 up by 29.9 points. In bullion market, gold and silver were bullish and gold is being quoted at Rs.12,920/10gm and silver higher at Rs.20,149/kg. Nymex crude was trading higer at around 100 US dollar a barrel and Rupee weakens further and the US dollar was at Rs.46.4.

Global Financial turmoil: To ease the global credit crunch, in a well coordinated move, Central Banks around the world pump billions (over 180 billions) of dollars to keep the funds flowing.

US FDA bans 30 generic drugs produced by Ranbaxy at its Dewas and Paonta Sahib plants in India on quality fear.

Barclays, the British Bank, buys the broken investment firm’s core capital market businesses for US$1.75 billion, far less than Lehman had hoped for. This could save 8,000 to 10,000 Lehman jobs.

Mumbai Stock Markets –Selected news extracts

Today again, there were all round losses in the Mumbai stock exchanges. Banking sector and realty stocks were the worst hit. The Bombay Stock Exchange’s benchmark index, Sensex closed lower at 13,262.9, down by 255.9 points. Nifty 50 closed at 4008.2, down by 66.6 points. In bullion market, gold is being quoted at Rs.11,741/10gm and silver was quoted at Rs.17,865/kg. Nymex crude was trading low at around 93.8 US dollar a barrel and Rupee weakens further and the US dollar was at Rs.46.6.

Reserve Bank of India steps in to arrest fall of rupee. Funds flow into the Indian markets is adversely affected by the financial turmoil in USA. Foreign fund flow in equities could be affected.

Indian bankers are on guard. ICICI Bank will lose around Rs.375 Crore as US major Lehman Bros. filed for bankruptcy.

Top Indian IT firms may cut up to 25,000 jobs. However, MBA graduates still keen investment banking.

Financial crisis world-over

The big bubble was in waiting to burst. Starting in early 2007, the financial crisis related with the real estate mortgaging and subsequent impact on the investment banks came as global tsunami devastating the financial giants like Leyman Bros, Merrill Lynch, and now the insurance giant American International Group (AIG). The US Federal Reserve is trying to bail out the companies by pumping-in billions of dollars. Take-overs are the buzz word everywhere. The US government should step in decisively to prevent bankruptcy of these institutions.

The employees in these companies are facing a un-precedence insecurity in their jobs. The fallout of the collapse of the major international companies (MNCs) on India is also tremendous. Thousands of people may loose their jobs, and face severe financial crunch in repaying the EMIs for housing and vehicles bought during good times. Real estate prices also on a downward trend. Stock markets are falling like pack of cards. Even the oil prices have crashed. The Indian rupee is suffering the steepest fall in 10 years!

The India government should prepare itself to face a financial crisis similar to that faced in USA. Banks have been giving easy loans for housing and buying vehicles. One can find thousands of confiscated vehicles parked under the fly-overs in Mumbai and Navi Mumbai for non-payment of EMIs to the financial institutions. In real sense, they are worth not even 10% of the loan advanced by the banks! Fortunately, in India, real estate prices have not yet nose-dived. But, anything can happen under the present uncertain situation.

It is absolutely necessary that government should intervene at the right time so that crisis of the kind witnessed in US is not repeated in India. Already, enough damage has been done to the financial institutions by the India government waiver of 70,000 Crore rupees of loans advanced to the farmers.

Good sense, not the vote-catching sense, should prevail upon the government to protect the financial institutions and the hard-earned public money invested in these institutions.

It is time that the Indian business houses such as Reliance and Tatas should look at the options of takeover of these companies, if not in full, at least the Indian operations. India flags on top of the American companies!

Mumbai Stock Markets –Selected news extracts

Today again, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed lower at 14,000.8, down by 323.5 points. Nifty 50 closed at 4228.4, down by 61.6 points. In bullion market, gold is being quoted at Rs.11,363/10gm and silver was quoted at Rs.18,180/kg. Nymex crude was trading at around 102 US dollar a barrel and Rupee weakens further and the US dollar was at Rs.45.7.

Government approves bio-fuel policy. The government set 2017 as target to sell petrol mixed with one-fifth of sugarcane extracted ethanol and diesel doped with non-edible oil with a view to cut the nation’s dependence on expensive oil imports.

GMR Energy plans to invest Rs.10,000 Crore in setting up a 2000-3000MW nuclear power plant in the country in the next 5-7 years.

Inflation dropped to 12.1% for the week ending August 20 from the previous level of 12.34%.

Mumbai Stock Markets –Selected news extracts

Today again, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,324.3, down by 338.3 points. Nifty 50 closed at 4290.3, down by 110 points. In bullion market, precious metals were down, gold is being quoted at Rs.11,226/10gm and silver was quoted at Rs.18,029/kg. Crude declines further. Nymex crude was trading lower at around 102 US dollar a barrel and Rupee weakens further and the US dollar was at Rs.45.45

Inflation is expected to be lower. It is just over 12%.

MTNL to start 3G services on a trial basis soon in Delhi.

Leyman Bros – strategic moves for survival

Leyman Bros is one of the top invest banking companies in USA, is in trouble. The sub-prime mortgage crisis has affected the company which is a major underwriter of mortgage related securities. The company is expecting a loss of US$3.9 billion in the third quarter of this year. Not a big deal for the investment company like the Leyman Bros.

Some of the strategic moves planned by the company are: cut its annual dividend to 5 cents a share, sell a majority of its investment management division, complete the spin-off of the majority of its remaining commercial real estate holdings into a new public company, complete the spin-off of around $32 billion in commercial mortgage assets by early next year, etc.

The Chief Executive says that this is a temporary setback and all the strategic alternatives announced will bring the company back into its well-deserved position of a profit making company, to maximize the shareholder value. Best of luck Richard.

Mumbai Stock Markets –Selected news extracts

Today again, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,662.6 down by 238 points. Nifty 50 closed at 4400.2, down by 66.4 points. In bullion market, gold is being quoted at Rs.11,430/10gm and silver was quoted at Rs.18,396/kg. Crude declines. Nymex crude was trading lower at around 103 US dollar a barrel and the US dollar was at Rs.45.

India has been ranked at the 31st position in the World Economic Forum’s first Financial Development Index topped by the US & UK.

Home sales shrinking in Mumbai: The city’s suburbs see housing sales fall by 14% from April through July this year.

Mumbai Stock Markets –Selected news extracts

Today again, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,900.76 down by 44.2 points. Nifty 50 closed at 4468.7, down by 13.6 points. In bullion market, gold is being quoted at Rs.11,633/10gm and silver was quoted at Rs.19,083/kg. Crude declines. Nymex crude was trading lower at around 104.6 US dollar a barrel and the US dollar was at Rs.44.8.

Tatas reject Singur pact. Stunned by the Signur row, software giant Infosys is reviewing its plan to invest in a development centre on the outskirts of Kolkata.

US government bails out troubled mortgage leaders Freddie Mac and Fannie Mae, which are vital to the US housing industry. The script was traded frantically in London stock exchange.

Netherlands-based Royal Philips Electronics announced the acquisition of Mumbai-based Alpha X-ray systems.

Yamaha Motor Co is all set to launch at least two high-end motor cycle models in India.

Mumbai Stock Markets –Selected news extracts

Today, there were all round gains in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,945, up by 461 points. Nifty 50 closed at 4482.3 up by 130 points. In bullion market, gold is being quoted at Rs.11,672/10gm and silver is quoted at Rs.19,542/kg. Nymex crude was trading at around 107 US dollar a barrel and the US dollar was at Rs.44.7.

Mamta calls off Singur stir. Tatas are not impressed. The project is likely to be shelved. Nano might not come out of the Singur plant.

Yamaha is all set to launch at least two models in India.

Now that Nuke deal is through the NSG. The US Congress is likely to clear it by December. Industries started counting the likely projects coming their way.

Mumbai Stock Markets –Selected extracts (5 August, 2008)

Today again, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,483.8, down by 415 points. Nifty 50 closed at 4352.3 down by 95.4 points. In bullion market, gold is being quoted at Rs.11,557/10gm and silver was quoted at Rs.19,445/kg. Crude declines. Nymex crude was trading at around 106 US dollar a barrel and the US dollar was at Rs.44.6.

Singur agitation continues. The Chief Minister is seeking a solution to keep the Tata’s Nano project in the state. Trinamool Congress is adamant.

Inflation seems to be slowing tapering off. Subba Rao takes charge as Governor of the Reserve Bank of India. Immediate priority is to contain inflation.

End of Nuclear isolation? India may clinch the NSG waiver today.

Mumbai Stock Markets –Selected extracts (4 August, 2008)

Today, there were all round losses in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,899, down by 150.7 points. Nifty 50 closed at 4447.7 down by 56 points. In bullion market, gold is being quoted at Rs.11,689/10gm and silver was quoted at Rs.19,649/kg. Crude declines. Nymex crude was trading at around 110 US dollar a barrel and the US dollar was at Rs.44.35.

Hedging tool for banks to beat fluctuations: After successfully commencing currency futures, the stock market regulator SEBI is all set for interest rate futures in the forth quarter of this fiscal.

Japanese commercial vehicle major Hino will be trucking on India roads from April next year. Hino will be launching the very successful 500 series.

Mumbai Stock Markets –Selected extracts

Today, there were all round gains in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 15,049.8 up by 551.3 points. Nifty 50 closed at 4504, up by 155.3 points. In bullion market, gold is being quoted at Rs.11,582/10gm and silver was quoted at Rs.19,472/kg. Crude declines. Nymex crude was trading lowest since April 7, 2008, at 109 US dollar a barrel and the US dollar was at Rs.44.4.

Singur (West Bengal) agitation continues. Tata's Nano work at Singur is suspended.

Mumbai Stock Markets –Selected extracts

Today, there were marginal losses in the scripts in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,498.5 down by 66 points. Nifty 50 closed at 4348.6, down by 11.3 points. In bullion market, gold is being quoted at Rs.11,882/10gm and silver was quoted at Rs.20,187/kg. Crude declines. Nymex crude is at 114 US dollar a barrel and the US dollar was at Rs.44.1.

Singur (West Bengal) agitation continues. The dead-lock will hit investment, GDP warns IT icon N.R. Narayan Murthy.

Manipal Press, promoted by the Pai family, is all set to enter the telecom business.

India moots collaborative oil exploration with China. Indian Petroleum Minister suggests “no compete” agreement with China and also joint acquisition of global assets.

India is world’s third biggest CO2 emitter, after China and USA. The state-owned National Thermal Power Corporation (NTPC) tops the list in India.

Mumbai Stock Markets –Selected extracts

Today, all round gains were witnessed in the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,564.5 up by 516 points. Nifty 50 closed at 4360, up by 146 points. In bullion market, gold is being quoted at Rs.11,886/10gm and silver was quoted at Rs.20,385/kg. Nymex crude is at 117 US dollar a barrel and the US dollar was at Rs.43.88.

India today concluded negotiations on a free trade agreement (FTA) with the Asean bloc, which will ensure lowering of duties and free flow of trade in goods. The agreement will create a market of over 1.5 billion people in the region.

ICICI’s Kalpana Morparia has joined global financial services major JP Morgan as Chief Executive for India operations.

Mumbai Stock Markets –Selected extracts

Today, it was another day in the red in Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed lower at 14,048.3 down by 248.4 points. Nifty 50 closed at 4214, down by 78 points. In bullion market, gold is being quoted at Rs.11,867/10gm and silver was quoted higher at Rs.20,448/kg. Nymex crude is up at 119.4 US dollar a barrel and the US dollar was at Rs.43.7.

Inflation expected to be higher at 12.77%.

Singur (West Bengal) agitation intensifies. The agitation will affect the Tata’s Nano project deadlines.

Mumbai Stock Markets –Selected extracts

Today, it was another day in the red in Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,296.8, down by 185.4 points. Nifty 50closed at 4292, down by 45.4 points. In bullion market, gold is being quoted at Rs.11,828/10gm and silver was quoted higher at Rs.20,394/kg. Nymex crude is up at 117.6 US dollar a barrel and the US dollar was at Rs.43.6.
Dabur is to expand abroad. The company is planning to open packing facility in Pakistan and product out-lets at UAE.

Mumbai Stock Markets – Selected extracts

Today, there was smart recovery in selected scripts in Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,482.2, up by 32 points. Nifty 50 closed at 4337.5, up by 2.1 points. In bullion market, gold is being quoted at Rs.11,632/10gm and silver at Rs.19,932/kg. Nymex crude is quoted at around 113 US dollar a barrel and the US dollar was at Rs.44.

Infosys buys the UK-based Consultancy Service provider, Axon Group for US$753 million. It is one of the biggest IT deal, to be completed by November, 2008.

Singur agitation continues. The Chief Minister says that the project is in the interest of the state. The CM is seeking consensus among the political parties so that the plant for the Tata’s Nano remains in West Bengal.

Finance Minister meets industry Heads. The minister is expecting 8-9% growth in industries.

Mumbai Stock Markets – August 25, 2008

Today, there was selected demand for scripts in Stock exchanges in Mumbai. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,450.3, up by 48.9 points. Nifty 50 closed at 4335.3, up by 7.9 points. In bullion market, gold is being quoted at Rs.11,725/10gm and silver at Rs.20,173/kg. Nymex crude is quoted at around 114.5 US dollar a barrel, and the US dollar was at Rs.43.78.

Infosys buys the UK-based Consultancy Service provider Axon Group. It is one of the largest acquisitions by the Indian IT giant.

Singur agitation continues. Tata’s Nano car may roll-out from their Uttaranchal facility.

Mumbai Stock Markets – August 22, 2008

Today, there was selected demand for scripts Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,401.5, up by 157.8 points. Nifty 50 closed at 4327.4, up by 43.6 points.

In bullion market, gold is being quoted at Rs.11,740/10gm and silver at Rs.20,208/kg. Nymex crude is quoted higher, at around 120 US dollar a barrel and the US dollar was at Rs.43.4.

Mumbai Stock Markets – August 21, 2008

Today, the scripts have gone through a bear run at Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,243.7, down by 434.5 points. Nifty 50 closed at 4284, down by 132 points. In bullion market, gold is being quoted higher at Rs.11,772/10gm and silver at Rs.20,262/kg. Nymex crude is quoted higher, at around 119 US dollar a barrel and the US dollar was at Rs.43.5.

Mumbai Stock Markets – August 20, 2008

Today, the scripts recovered after the bear run for a few days at the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,678, up by 134.5 points. Nifty 50 closed at 4415.7, up by 47.5 points. In bullion market, gold is being quoted at Rs.11,537/10gm and silver at Rs.19,690/kg. Nymex crude is quoted at just over 115 US dollar a barrel and the US dollar was at Rs.43.7.

Mumbai Stock Markets – August 19, 2008

Today, it was again a bear market, with all round losses at the Mumbai stock exchanges. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,543.7, down by 102 points. Nifty 50 closed at 4368, down by 24.8 points. In bullion market, gold is being quoted at Rs.11,409/10gm and silver at Rs.19,739/kg. Nymex crude is quoted lower at 112 US dollar a barrel and the US dollar was at Rs.43.55.

Mumbai Stock Markets – August 18, 2008

Today, it was again a bear market at the Mumbai stock exchanges. All round losses were noticed. The Bombay Stock Exchange’s benchmark index, Sensex closed at 14,645.7, down by 78.5 points. Nifty 50 closed at 4393, down by 37.6 points. In bullion market, gold is being quoted lower at Rs.11,369/10gm and silver at Rs.19,610/kg. Nymex crude is quoted lower at 114.29 US dollar a barrel and the US dollar was at Rs.43.27.

Mumbai stock markets – Extracts

Today it was totally a bear market at the Mumbai stock exchanges. All round losses were noticed. The BSE’s benchmark index, sensex closed at 14,724, down by 369 points. Nifty 50 closed at 4430.7, down by 98 points. In bullion market, gold is being quoted higher at Rs.11,708/10gm and silver at Rs.21,560/kg. Nymex crude is quoted lower at 116.5 US dollar a barrel and the US dollar was at Rs.42.99.

Mall culture picking up

Mukesh Ambani’s Reliance Industries Limited (RIL) has announced joint venture with US-based real estate investment trust Vornado to collectively invest US$500 million in a shopping mall joint venture. The plan seems to acquire, develop and operate retail shopping centers across key cities in India. Already, RIL is operating Reliance Fresh retail shops.

However, the work culture in some of the retail shops is far from satisfactory from the point of view of consumer. The local management is poor. Staff seems to be not keen in doing their work. In some shops, stocks are very old. Vegetable counters, except leafy vegetables, need better planning. Fruits of a given quality are more expensive than other local shops. Often, consumers do not go to the shops because they are not sure that all the daily/weekly vegetables requirements will be met under one roof. Who wants to go from shop to shop? I do not want to go.

Business news extracts –India (August 12, 2008)

1.The stock markets today: Today it was bear market at the Mumbai stock exchanges. The BSE’s benchmark index, sensex closed lower at 15,212, down by 292 points. Nifty 50 closed at 4552, down by 68 points. In bullion market, gold is being quoted at Rs.11,367/10gm and silver at Rs.20,698/kg. Nymex crude is quoted lower at 113.6 US dollar a barrel and the US dollar was at Rs.42.43.
2.State Bank of India brought some cheers for depositors and small home loan borrowers. The bank increased the interest rate on FDs between one year and three years to 10%.
3.Global telecom operators and new entrants are likely to stay away from the 3G auction owing to some “discriminatory” guidelines announced by the government for the bidding.
4.Realty investment is subdued in Q2. Investors seem to be cautious over the effects of global credit crunch, says global real estate consultant CB. Richard Ellis.

Business news extracts –India (August 11, 2008)

1.The stock markets today: Today it was bull market at the Mumbai stock exchanges. The BSE’s benchmark index, sensex closed higher at 15,504, up by 336 points. Nifty 50 closed at 4620, up by 91 points. In bullion market, gold is being quoted at Rs.11,905/10gm and silver at Rs.21,753/kg. Nymex crude is quoted lower at 115.9 US dollar a barrel and the US dollar was at Rs.42.05.
2.Durables, FMCG companies to raise prices: FMCG majors Dabur and Goderej Consumer products and LG are planning to raise their product prices as in-put cost pressure mounts.
3.Global crude prices on downward spiral: Global crude oil prices are expected to slip below US$100 per barrel mark by next month with signs of slowdown engulfing most of the economies across the world.
4.Tata teleservices: Tata Teleservices has unveiled plans to invest US$2 billion to expand telecom business, including GSM mobile services over the next couple of years.

Business news extracts –India (August 8, 2008)

1.The stock markets today: The BSE’s benchmark index, sensex closed higher at 15,167.8, up by 50.5 points. Nifty 50 closed at 4529, up by 5 points. In bullion market, gold is being quoted lower at Rs.11,919/10gm and silver at Rs.22,414/kg. Nymex crude is quoted at 117.5 US dollar a barrel and the US dollar at Rs.42.10.
2.India hopes to test the first developmental flight of the stealth 5th generation fighter by 2015 says the IAF chief. The fighter aircrafts are co-developed with Russia to fulfill futuristic requirements. The project is expected to cost US$8-10 billion.
3.A 1000 c.c. car to be produced in India by Suzuki for global markets. The car is reported to be unveiled at the Paris Motor Car show in October. The car is expected to replace “Alto” in India in the long run. Maruti will sell the new model. The car promises CO2 emission levels below 109 gm/km.
4.The Coca-cola secret formula is becoming a less secret. The 122 years old recipe shows no added preservatives or artificial flavours. It is reported that a 250 ml (about 85 ounces) has 105 calories or 5% of the recommended daily intake for adults.
5.The Government allots one block of spectrum each to state-run BSNL and MTNL to enable them to roll out their 3G services, ahead of private players.
6.Due to the near-normal rains, demand for power has dropped in industrial areas of Maharashtra, paving way for load-shedding to 24-hour rather than the 40 hours a week.

Business news extracts –India (August 7, 2008)

1.The stock markets today: The BSE’s benchmark index, sensex closed higher at 15,117, up by 44 points. Nifty 50 closed at 4524, up by 6 points. In bullion market, gold is being quoted lower at Rs.12,166/10gm and silver at Rs.23,367/kg.
2.Fuel crisis at Dabhol Power Plant: The plant which is supposed to generate 2150 MW will now mange only 300 MW after its gas supply is curtailed. The power plant is owned by Ratnagiri Gas and Power private Limited needs 5.40 million standard cubic meters of gas per day to run two of its operational plants. Why not the Power Ministry ensure that the gas supplying agency, Petronet LNG Limited supply the required amount of gas so as to augment the existing pathetic electricity supply situation in Maharashtra, particularly Navi Mumbai?
3.Diesel “rationing” across the country has started affecting business, particularly transport business in a big way. The scarcity and delay in transportation of goods will further rise in the cost of commodities, and ultimately, the harassed consumer has to bear the higher costs.
4.Public sector oil marketing company, BPCL is to set up first solar photovoltaic power project of 1MW capacity in Punjab. Better late than never.
5.Bharat Forge has emerged as the world’s largest forging company with a forging capacity of 700,000 tonnes per year. The company seems to be looking at the forgings requirements of the power industry, particularly nuclear power sector, post Indo-US nuclear deal.
6.Drug price regulator, National Pharmaceutical Pricing Authority (NPPA) revised prices higher to the tune of 3-12%, of six bulk drugs used in manufacturing of popular medicines. The bulk drugs include Vitamin E Acetate, Ranitidine HCl, Parachlorometaxylenol, Mettronidazole and Cefotaxime Sodium.

Business news extracts –India (August 6, 2008)

1. The stock markets today: The BSE’s benchmark index, sensex closed higher at 15,073, up by 112 points. Nifty 50 closed at 4517, up by 15 points. In bullion market, gold is being quoted lower at Rs.12,172/10gm and silver at Rs.23,385/kg. Nymex crude oil was trading at just over US$120 a barrel. Rupee was at Rs.42.08 a dollar.
2. The memorandum of understanding (MoU) among Ambani family matriarch Kokilaben, her sons Mukesh and Anil Ambani prior to the split in the Reliance Group is not binding on RIL, says its counsel in Bombay High Court. This legal battle is affecting the sentiments of millions of Reliance shareholders.
3. The impact of the Reserve Bank’s monetary tightening is beginning to show up in home loan rates. The rising home loan rates are hurting customers.
4. Three companies to make AIDS drugs affordable. Cipla has played a lead role in setting the global benchmark for cheaper AID drugs.

Business news extracts –India (August 5, 2008)

1. The stock markets today: The BSE’s benchmark index, sensex closed higher at 14,961, up by 383 points. Nifty 50 closed at 4502, up by 107 points. In bullion market, gold is being quoted lower at Rs.12,150/10gm and silver at Rs.23,625/kg. Nymex crude oil was trading at just over US$120 a barrel. Rupee was at Rs.42.24 a dollar.
2. The diesel pumps in Maharashtra state are running dry due to the unprecedented power crisis in the state and the demand for diesel to run generators is increasing.
3. Reliance Capital, controlled by Indian billionaire Anil Ambani plans to raise US$1billion overseas for a private equity fund in India. The stock markets are down and it is time to buy.
4. India storms into global automaker big league. It ranks 12th among all the countries and 4th among the developing countries.
5. Luxury hotel rates continue to go down in Bangalore. Industry estimates that the foreign travel market has dipped by almost 20%. Hotels across Bangalore average room occupancy of international guests anywhere between 75% and 80%.

Reliance Communications start GSM services

In addition to CDMA services, Indian telecom giant Reliance Communications may soon launch GSM services to its consumers with dual technology license from the government of India. Subscriber addition is expected to grow at the rate of 7 million a month. The company has targeted to cover 23,000 towns and 6 lakh villages under the GSM scheme by the end of this year. There will be thousands of additional towers to cover this fast-expanding subscriber base.

In spite of repeated news appearing in the news media, little attention is paid to the harmful effects of the radiation emitted by the mobile phones and the cell towers. Towers are erected on the buildings, near schools, and in fact they can be seen everywhere. The measured radiation levels in Mumbai city due to the towers is reported (in Mumbai Mirror) to be very much higher than the internationally stipulated limits.

There is a need for strict regulation to ensure that the manufacturers of the mobile phones and the service providers maintain the radiation emission levels much lower than the stipulated standards. Base stations near schools and crowded areas should be avoided. The regulators should also look into the safety of erecting antenna on the residential building tops and near schools.

There should be a dedicated regulatory body to issue guidelines, such as type-approval for mobile phones and daily time limit for mobile usage by the people. The RF radiation levels should periodically monitored in city areas and around schools. The readings should be displayed for public knowledge and for checking compliance with the set limits by regulators.

The government of India should wake up to this reality of more and more mobile phone usage, and ensure radiation protection of the population.

Business news extracts –India (August 4, 2008)

1. The stock markets today: The BSE’s benchmark index, sensex closed at 14,578, down 79 points. Nifty 50 closed at 4395, down by 18 points. In bullion market, gold is being quoted lower at Rs.12,438/10gm and silver at Rs.24,270/kg. Nymex crude oil was trading at just over US$123 a barrel. Rupee was at Rs.42.48 a dollar.
2. British Airways tries again to seal an alliance with its US partner American Airlines within weeks.
3. The state-run MTNL is all ready to rollout its 3G network within three months once the Public Sector Unit gets spectrum from the government, says company CMD. Government sources say only two private players would get the licenses for the 3G network service.
4. In-spite of strong opposition from the Bloc-controlled State Agriculture Marketing Board, Kolkata, Reliance Fresh opens retail mart. However, the outlet will sell only food products and not fruits and vegetables.
5. Reliance Communications starts GSM service in Delhi. It will be the first company in India to offer both CDMA and GSM services.
6. Tata Capital is gearing up to enter the highly competitive but lucrative housing loan business by March 2009.
7. Reliance Infratel is likely to differ it’s IPO plans, reportedly due to volatility in global and Indian capital markets.

Business news extracts –India (August 1, 2008)

1. The stock markets today: The BSE’s benchmark index, sensex closed at 14,656, higher by 301 points. There were demands for IT, banks, telecom and steel stocks. Nifty 50 closed at 4413, up by 80 points. In bullion market, gold is being quoted at Rs.12,511/10gm and silver at Rs.24,500/kg. Nymex crude oil was trading at just over US$122 a barrel. Rupee was at Rs.42.37 a dollar.
2. HDFC, ICICI banks hike interest rates: Home owners who ha bought dream houses with loans from banks or financial institutions will be paying higher EMIs. The loan rates have been on an upward swing for almost 5 years now, from about 7.5% in October, 2003 to 11.75% per year (floating) now.
3. Japan’s Takeda eyes Torrent: Japan’s largest and oldest pharma giant Takeda Pharmaceutical Company is planning to acquire Mumbai-based Torrent Pharmaceuticals for an undisclosed amount.
4. Inflation rate rises: The price rise index- the inflation rate rose to 11.98% for the week ended July 19, 2008.

Business news extracts –India (July 31, 2008)

1. The stock markets today: The BSE’s benchmark index, sensex closed flat at 14,334, higher by 47 points. Nifty 50 closed at 4333, up by 19 points. In bullion market, gold is being quoted at Rs.12,552/10gm and silver at Rs.24,514/kg. Nymex crude oil was trading at US$126.23 a barrel. Rupee was at Rs.42.54 a dollar.
2. Tatas not to proceed with the proposed industrial projects worth US$3 billion in Bangladesh.
3. Public Sector oil companies may cut ATF fuel prices by this weekend.

Dismal power scenario – Mumbai

The extensive load-shedding in Mumbai, Navi Mumbai and Tarapur is creating panic situation in small and medium scale industries. Use of generators is not economic and diesel is not easily available due to fuel crisis. They have two choices. One is to shift the factories to Gujarat or look out for non-conventional energy sources such as solar/wind to augment the conventional power supply. India needs to exploit all possible resources to cater to the electricity demand of the present and the future.

Somehow, the governments, state as well as central, have bungled the issue in-spite of the fact that the gap between the supply and demand is widening by the day. Under such circumstances, what will happen to the projected industrial growth rate of over two digits? Only a bleak and dark future!

Some of the immediate measures to improve the situation from a common man’s point of view are: Improve the Conversion efficiency (fuel to electricity) in the power plants; reduce the loss due to transmission and efficient management of the power distribution system. Smaller captive power plants in appropriate locations should be considered very seriously by the policy makers to feed the power-starved industrial belts throughout the country.

Business news extracts –India (July 30, 2008)

1. The stock markets today: After yesterday’s plunge by 558 points due to the Reserve Bank of India’s move to reining in inflation, stock markets in Mumbai flared up. The BSE’s benchmark index, sensex closed at 14,287, higher by 495 points. Overall, there was demand for good scripts. Nifty 50 closed at 4313, up by 124 points. In bullion market, precious metals were being traded low. Gold is being quoted at Rs.12,296/10gm and silver at Rs.23,688/kg. Nymex crude oil was trading lower at US$121.35 a barrel. Rupee was at Rs.42.36 a dollar.
2. RBI Governor says: At this juncture, a realistic policy Endeavour would be to bring down inflation from the current level of about 11-12% to a level close to 7% by March 31, 2009. Banking and realty stocks may feel the heat.
3. Terror life cover: Increasing numbers of terror strikes make insurance companies hawk terrorism insurance policies. So far, insurance companies do not provide stand-alone policy for terror insurance. Terror insurance is built into fire policies and personal accident life insurance.
4. Provident fund management: India government has decided to allow private players like ICICI Prudential, HSBC and Reliance Capital and SBI to manage the provident fund of employees totalling about Rs.2.5 lakh Crore. So far, only state-owned SBI was authorized to manage the funds. There are protests from left-affiliated trade unions against this move of the government.

Business news extracts –India (July 25, 2008)

1. The stock markets today: Stocks continued to be down and most of the stocks including technology, IT, banking, power and communications were trading low. The BSE’s benchmark index, Sensex closed lower at 14,275, down by 502 points. Nifty 50 closed at 4312, down by 122 points. In bullion market, gold is being quoted at Rs.12,750/10gm and silver at Rs.24,690/kg. Nymex crude oil was trading at US$126 a barrel. Rupee was at Rs.42.26 a dollar.
2. Anil Ambani gains: It is reported that the new political combination at the centre will be favoring Anil Ambani group companies due to the support of Samajwadi Party to the UPA government during the crucial trust vote.
3. State-run oil companies running on borrowed money: State-run oil companies such as IOC, HPCL and BPCL have no money to buy crude oil. Typically, Indian Oil Company needs roughly Rs.12,000 Cr every month to buy crude, but loses Rs. 413 Cr daily on fuel sales due to the price control by the government. The company has been borrowing heavily from the banks.
4. Pharma companies are in crisis: The Rs.68,000Cr Indian drugs and pharmaceutical industry claims that it is in the grips of a crisis because of the steep hike in all raw material input costs. The industry is expecting at least 20% hike in drug prices in order to neutralize the hike in in-put costs.
5. Ford Motor reports loss: Ford Motor reported US$8.7 billion loss in the second quarter, largely because of reduction in the value of assets.

Business news extracts –India (July 24, 2008)

1. The stock markets today: After yesterday’s rally, most of the stocks including technology, IT, banking, power and communications were trading low. The BSE’s benchmark index, Sensex closed lower at 14,777, down by 165 points. Nifty 50 closed at 4433, down by 43 points. In bullion market, precious metals were down and gold is being quoted at Rs.12,603/10gm and silver at Rs.24,406/kg. Nymex crude oil was trading lower at US$125 a barrel. Rupee was at Rs.42.14 a dollar.
2. Speed up reforms: Indian Finance Minister said the government, which is now free from Left parties, would try to speed up reforms that could see passage of pending bills including insurance, pension funds and banking bills.
3. 3G mobile services: The government is all set to usher in next generation, 3G mobile services, and WiMax broadband services in the country and will announce the guidelines for the same.
4. Interest in debt funds: The uncertainty in the stock markets has led to a renewed interest in debt and cash funds. The assets under management (AUM) of debt funds jumped 45.5% between Jan 31 and June 30 this year. This is two-fold jump compared to the same period previous year.

Business news extracts –India (July 23, 2008)

1. The stock markets today: Markets rallied on reform hopes after the government winning the Trust vote. The BSE’s benchmark index, Sensex closed higher at 14,942, up by 838 points. Infrastructure and Banking stocks lead the rally. Nifty 50 closed at 4476, up by 237 points. In bullion market, precious metals were down and gold was quoted at Rs.12,820/10gm and silver at Rs.24,680/kg. Nymex crude oil was trading lower at US$126.6 a barrel. Rupee was at Rs.42.08 a dollar on Tuesday, 10 week high.
2. Trust vote: India’s UPA government survived the Trust vote yesterday. Finally, the government id out of Left’s shackles, says business community. Wave of economic reforms likely to follow.
3. BSNL’s US$10 billion expansion plan: To take on private telecom sector players, the state-run Bharat Sanchar Nigam (BSNL) plans to invest Rs.42,000 Cr over the next three years, mainly on network expansion projects.
4. Donald Trump Jr to invest in India: Donald Trump Jr. plans to set a fund of US$1 billion to buy property in India. The proposals include residential and hotel projects in Mumbai.
5. Bearish market trend: Global services major Morgan Stanley expects the bearish trend in global market nearing climax and foresees reversal of the trend soon.

Business news extracts –India (July 22, 2008)

1. The stock markets today: The BSE’s benchmark index, Sensex closed higher at 14,104, up by 254 points. Nifty 50 closed at 4240, up by 81 points. In bullion market, gold price was quoted at Rs.13,448/10gm and silver was quoted higher at Rs.26,031/kg.. Nymex crude oil was trading at US$132 a barrel. Rupee was at Rs.42.73 a dollar.
2. Trust vote is in serious problem: BJP MPs alleged that they were bribed in crores for cross-voting by Samajwadi Party.
3. Mobile base of Rel. Com: Reliance Communications crosses 50 million mobile user base in India. The rel. Com has become the fifth mobile operator to serve 50 million mobile customers in Asia.
4. Industry wants govt to survive: Industry and stock markets want the UPA government to survive the Trust Motion today in Lok Sabha. It is felt that the nuke-deal is good bet in long-term. Without Left parties, the government now can take up unfinished agenda of the economic reforms.
5. Roshe offer to Genentech: Swish drug maker Roche Holding offered to acquire all outstanding shares in its US partner Genentech for US$43.7 billion in cash.

Business news extracts –India (July 21, 2008)

1. Betting on bull-run: Financial analysts expecting that the Indian stock markets are going to rise this week if the UPA government wins the trust vote on Jul 22, 2008. Markets may see a surge of not less than 1,500 points if crude price and inflation remains stable. It is presumed that the UPA government without the Left parties is good for the business to prosper.
2. Luxury cars from Tatas: Indian auto major, Tata Motors is gearing up to the rich clients with new models of its newly acquired luxury brands Jaguar and Land Rover priced in excess of 1 lakh pounds. It is reported that in-spite of the fuel price rise and credit crunch, the global sales of luxury cars are not affected.
3. US-FDA offices in India: For efficient inspection of drug production, the American Health Regulator, US-FDA is looking to set up offices in different parts of India.
4. The stock markets today: The BSE’s benchmark index, Sensex closed higher at 13,850, up by 214 points. Nifty 50 closed at 4159, up by 67 points. Banking stocks were up. In bullion market, gold price was at Rs.13,275/10gm and silver was quoted at Rs.25,615/kg.. Oil prices are going down and the Nymex crude oil was trading at US$130 a barrel. The rupees to a dollar were at 42.67. Because of the political jitters, INDIA Inc looked unsure post- 22/07/08. PM moves the trust vote.

Business news extracts –India (19 July, 2008)

1. Gas sale norms: In India, private players such as Reliance Industries Limited and GSPC can sell the natural gas they have discovered only to the “priority sectors” decided by the Empowered Group of Minister headed by External Affairs Minister, Pranab Mukherjee. The sale would be on the basis of formula for determining the price as approved by the government. Typical priority sectors are: fertilizer units, LPG plants, existing gas-based power plants, etc.
2. Sad ending: Subsequent to the RIL’s move to drag Rel.Communication into an arbitration process over the first right of refusal, Anil Ambani’s Rel. Communications withdrawn from the negotiations it had commenced in end-May to acquire a stake in South African telecom giant, MTN. Sad ending to a potentially very good deal.
3. Fitch downgraded India: Indian Finance Minister is not worried about lowering of India’s credit outlook by global rating agency, Fitch. He said economic fundamentals are strong, but some are facing difficulties. The minister also sees GDP growing at 8% and inflation will moderate by the year-end.

Business news extracts –India (18 July, 2008)

1. The stock markets in Mumbai were on the run. The BSE’s benchmark index, Sensex closed at 13,635, up by 523 points. Nifty 50 closed at 4092.25, up by 145 points. IT stocks were down, banking stocks up, real estates and energy stocks were in demand. In bullion market, gold price closed at Rs.13,308/10gm. Oil prices are going down and the Nymex crude oil was trading at US$136.36 a barrel. The rupees to a dollar were at 42.800. Cipla reported Q1 results: Net profit up at 140 Cr against 119.76 Cr.
2.ITC buys into India's biggest paper company, Ballarpur Industries (BILT).
3. According to JP Morgan Asset Managment Asia Pacific Chief Executive, the company is planning to approach the market regulator, SEBI for approval to launch an offshore fund in India.

Indian Business News – Selected Extracts (July 17/7/2008)

1. More than on-third of all buy-sell transactions in the stock exchanges, BSE and NSE are in the hands of foreign institutional investors (FIIs). Their share in overall turnover has risen from a mere 8% in 2001 to a significant 35% in 2007. This is likely to add volatility in the markets as and when the FIIs trade.
2. The Indian stock markets which were on downward march for the last three days, closed further down losing over 100 points. The BSE’s benchmark index, Sensex closed at 12,575. In bullion market, gold price closed Rs.13,560/10gm and silver closed at Rs.25,890/kg. Oil prices saw biggest drop of $6.44 in 17 years. In Nymex, the crude oil closed at US$138.71 a barrel. On Wednesday, crude fell by another 2.03 dollars a barrel for European contracts.
3. IT giant, TCS reported 7% higher net profit for the first quarter, while HDFC reported a jump of 26% in net profit for the same period.
4. Realty major Parsvnath Developers joined hands with Sabeer Bhatia, co-founder of Hotmail, to develop a 11,138 acre knowledge city, Parsvnath Nano City near Chandigarh. The project is valued at US$12 billion.
5. India government will release weekly inflation data on Thursdays at 5 p.m. instead of Fridays.
6. Government to sell imported cooking oils at cheaper rates through ration shops of Public Distribution System throughout the country.

Indian Business News – Selected Extracts (July 16/7/2008)

1. The stock markets which were on downward march for the last three days, tumbled to a level last seen on March 6, 2007. The BSE’s benchmark index, Sensex closed at 12,676 by losing further 654 points. Banking index was the worst hit. In bullion market, gold prices scaled to all-time high of Rs.13,680/10gm and silver also followed to close at Rs.26,250/kg.
2. The American distress fund owner Wilbur Ross would invest US$80 million in SpiceJet to keep afloat and also to fund aircraft acquisition.
3. India has the largest number of unsold carbon credits among all carbon markets in the world. According to Green Ventures, India has over 46 million unsold carbon credits.
4. Reserve Bank of India governor hopes to maintain growth at 8% and bring down inflation to 5.5% in six months. However, the central bank is unable to offer any assurances on interest rate cuts in the near future.
5. US FDA is keen to identify areas of collaboration between the two countries The USFDA monitors, regulates and gives permission for drugs. The agency is keen to help with the Indian regulatory infrastructure.
6. Indian IT firm i-flex Solutions will change its name to Oracle Financial Services Software.

Indian Business News – Selected Extracts (July 15/7/2008)

1. The stock markets in India continued to remain weak. BSE’s benchmark index, Sensex closed by losing further 139 points to close at 13,330. Oil prices also remained high near US$144 a barrel. In bullion market, gold declined marginally to close at Rs.13,310/10gm and silver edges up to close at Rs.25,595/kg.
2. Belgian brewer, InBev buys Budweiser of US brewer Anheuser-Busch for US$52billion. The deal, if approved, would be largest in the industry and the third biggest ever foreign takeover of a US company.
3. Indian domestic airlines Kingfisher and Jet hike fuel cess. Now, flying less than 750 km will have a surcharge of Rs.2,350, up from earlier Rs.2,250.
4. India stands behind 40 nations when it comes to industrial competitiveness, according to the report by United Nations Industrial Development Organization. India is behind countries such as Malaysia, Thailand and Malta.
5. US Bush administration is asking for the Congress approval for a sweeping rescue package that would inject billions of federal dollars to save two American home mortgage companies, Fannie Mae and Freddie Mac.

Selected business extracts

1. The launch of Apple’s much –written about new iPhone turned into an IT meltdown as customers were unable to get their phones working in-store.
2. Tata Steel is looking at acquiring an iron ore mine in Western Australia. The region has huge reserves of iron ores. Western Australia is a global supplier of minerals and petroleum products. .
3. Credit card debts may lead to plastic meltdown. Credit counselors and financial analysts in the US and the UK are seeing evidence that credit card debts are increasing. The debt-soaked consumers in these countries are struggling to pay the minimum monthly repayments. Across the world, some wherebetween US$2-3 trillion is owed on credit cards. In America, more than a trillion dollars is held on credit cards!

Indian Business News – Selected Extracts (July 13/7/2008)

1. BSE’s benchmark index, Sensex closed on a weak note by losing further 456 points to close at 13,470. Oil prices closed at a record level of US$147 a barrel. In bullion market, gold bounces back to close at Rs.13,170/10gm and silver edges up to close at Rs.25,300/kg.
2. Reliance Money, the financial products distribution arm of the ADAG is acquiring a 26% stake in Ahmedabad-headquartered National Multi-commodities Exchange for an undisclosed amount of money.
3. According to the Wall Street Journal Asia, IT majors Infosys, TCS and WIPRO have emerged as the three most admired companies in India.
4. Inflation shows no sign of reversing its rising graph, touching 11.89% for the week ended June 28. The government is wary of tighter RBI measures to squeeze liquidity out of the market.
5. The national Security Advisor is supervising the discussion to find a solution to the controversial BlackBerry Services, over which agencies have raised serious security concerns.
6. India’s sovereign interests, including in the strategic nuclear field are protected in the draft IAEA safeguards agreement. It is also ruled out putting fast breeder test reactors under the IAEA safeguards. The country’s strategic (nuclear) program is totally insulated and the pact is in India’s interests, says the negotiating team.

Indian Business News – Selected Extracts (July 11, 2008)

1. BSE’s benchmark index, Sensex ends flat as major players remained on the sidelines amid fresh developments on the political scenario following the Left Parties pull-out from the government. The sensex lost 38 points to close at 13,926. In bullion market, gold bounces back to close at Rs.12,965/10gm and silver edges up to close at Rs.25,165/kg.
2. “Fuel rationing” by oil-marketing companies are forcing petrol pump owners to run their pumps for 16 hours a day instead of the earlier 24x7 work schedule.
3. Cash-crunched Citibank may sell off its eight-story tower Citigroup Centre located at Bandra Kurla Complex in Mumbai. The building could fetch anywhere between 500-800 Cr rupees as per the estimates.
4. National Australia Bank is expected to send another 400 IT jobs to India by the end of this year.
5. Rising oil prices has taken a big hit on China’s trade surplus, falling by 11.8% in the first half of 2008 as compared to the same period in 2007.

Indian Business News – Selected Extracts (July 10, 2008)

1. BSE’s benchmark index, Sensex shoots up by 615 points to its highest close in two weeks, 13,964 with heavyweight shares particularly realty and power scripts doing brisk business. In bullion market, gold declines to close at Rs.12,850/10gm and silver edges up to close at Rs.24,990/kg.
2. Indian Prime Minister gets support from G8 countries for the nuclear deal with US, to meet its energy needs of the future.
3. The sign of slowdown is already visible in the aviation sector. The air traffic has gone down in June by 7% as compared to the May, 2008.
4. Indian-origin executives head a dozen Fortune 500 firms abroad. Some of the names are: Citigroup CEO Vikram Pandit, Pepsico Chief Indra Nooyi and Arcelor-Mittal CEO Lakhsmi Mittal.
5. French energy major Total will invest Rs.100 Cr in India firm Vinergy International in setting up four bitumen manufacturing plants in the country in the next 3-4 years.

Indian Business News – Selected Extracts (July 9, 2008)

1. Despite the Left parties withdrawing support to the ruling Indian government, sensex dips just 176 points and closed at 13,050. Trading sentiments improved after the Samajwadi Party stepped in to support the Congress after the Left parties exited the coalition. Among the sensex stocks, ACC was the top gainer. The upward continued today also. In bullion market, gold closed at Rs.12,920/10gm and silver at Rs.24,945/kg.
2. Ambani brothers head for legal battle over right of first refusal in case Anil Ambani sells his shares to South African telecom giant MTN.
3. German industrial conglomerates Siemens plans to cut around 16,750 jobs (4%) as part of an overhaul and as a result of global economic downturn..
4. Indian Prime Minister got support from G8 countries for fis proposal for a forum to set up a dialogue between the oil producers and consumers to stabilize soaring oil prices. This rising price of oil he said is a serous threat to world economic growth.
5. Businessmen in Europe and Gulf find India as a top investment hub as per the report of a survey of 800 investors. China comes in as close second.
6. The US Federal Reserve is planning to issue new rules to restrict exotic mortgages and high-cost loans for people with weak credit.

Indian Business News – Selected Extracts (July 8, 2008)

1. Left parties withdrew support to the UPA government in India today. Other parties are pledging support to the government on the Indo-US nuclear issue.
2. Stock markets gained yesterday. The sensex closed at 13,526, up by 300 points. In bullion market, gold closed at Rs.12,861/10gm and silver closed at Rs.24,900/kg. Today, the sensex was down due to the uncertain political scenario consequent to the withdrawal of support by the left parties to the government.
3. It is boom time for those employed in India’s telecom sector. New telecos are on hiring spree. Even the government employees from telecom sector, are tempted with huge packages and irresistible perks.
4. The relentless rise in oil prices cast a long shadow over the first day of the G8 summit, which brings together the US, Japan, Germany, France, Britain, Canada, Russia and Italy. Oil retreated to around US$143 a barrel on Monday from a record US$145.85 last week.
5. China’s banking authorities granted licenses to three Indian banks to open a branch in China. The three Indian banks are State Bank of India, Bank of India and Bank of Baroda.
6. Daimler-Hero is driving into Chennai for setting up a commercial vehicles plant. The joint venture, involving Rs.3000 crore investment to produce 70,000 trucks a year in the initial phase starting 2010.

Indian Business News – Selected Extracts (July 7, 2008)

1. Citibank plans 18,000 job cuts before this year is out. The Citi’s global workforce is 350,000-strong. The bank earmarks US$500 billion of assets for disposal in rebuilding process.
2. LN Mittal is considering the prospect of investing in upmarket country hotels. It is reported that the group is in talks with Von Essen Hotels.
3. Anti-infective medicine retail market grew by 21% during Jan-May this year as against 7% during the same period last year. All top four segments i. e., cephalosporins, ampicillin, quinolones and macrolides have shown double digit growth during the period.
4. Jet owners flout import norms. Over 250 private planes have been bought in violation of rules. If all violations are proved, the cumulative duty and penalty obligation on these aircrafts may exceed Rs.9,000 crores.
5. India needs 10-fold hike in power supply in the next 10 years. India’s demand for power will soar to 3,15,000 MW by 2017 assuming the current pace of economic growth at 8%. At present, India has an installed capacity of 1,44,565 MW.
6. Aditya Birla Group’s telecom subsidiary Idea Cellular Limited is all set to launch mobile services in the Mumbai circle.

Indian Business News – Selected Extracts (July 5, 2008)

1. Inflation rose to 11.63% in India for the week ending June 21, 2008. The worry for the government continues to be the rise in the prices of food items.
2. Anil Dhirubhai Ambani Group is asking the stock market regulator, SEBI to probe into the continued falling share prices of group company Reliance Communications. The share price came down from Rs.601 to Rs.389 in one and half months. The group suspects foul play by RIL in view of its on-going talks with MTN.
3. Indian aviation is set to witness the next round of consolidation as Kingfisher Airlines is moving to acquire over 26% stake in SpiceJet.
4. Cadila Healthcare to hive off consumer business arm to its subsidiary, Carnation Nutra Analogue Foods.
5. The BSE’s 30-shares index, sensex beats inflation blues and record oil prices to gain 360 points to close at 13,454. In bullion market, gold tumbles on fresh selling by stockists. Pure gold closed at Rs.13,035/10gm and silver closed at Rs.25,080/kg.
6. An unpublished world bank report says that biofuels have caused world food prices to increase by 75% .
7. Indian government cleared 28 foreign direct investment proposals totaling Rs.1,328 Cr, including those of Marks & Spencer and a joint venture involving EID Parry (India).

Indian Business News – Selected Extracts (July 4, 2008)

1. US crude oil jumped to record high of US$145. 43 a barrel ahead of US Independence Day on Jul 4, 2008, while London Brent crude oil hit even higher peak of 146.34 US dollars a barrel.
2. India’s mutual fund industry witnessed a 5.9% drop in its assets in June, mainly due to the stock market meltdown.
3. In bullion market, gold prices ended higher on persistent buying by the stockists in view of the strong global advices and weak domestic equity market. Pure gold closed at Rs.13,195/10gm and silver closed at Rs.25,315/kg.
4. The BSE’s 30-shares index, sensex lost 571 points and closed at 13,094. Realty and metal stocks took the beating. It is expected that the markets are likely to bounce-back on Friday.
5. Car makers in India take discount route to bypass slowdown and attract customers to showrooms. Free fuel vouchers and cash discounts are offered.
6. Konkan Railway has for the first time crossed the Rs.500-crore mark in its total earnings in 2007-08.
7. US is the largest consumer of oil. India and China together uses only 12% of the world energy. Whom to blame for the on-going oil price hike?

Indian Business News – Selected Extracts (July 3, 2008)

1. The BSE’s 30-shares index, sensex regained its trillion-dollar status within a day. The sensex gained sharply by 703 points to close at 13,665. This may be the attempt by the speculators to manage the benchmark index to give a sense of bottoming out of the market and hence to lure some unsuspecting investors back to share markets. Reliance Infra and DLF are the top gainers. The US dollar is gaining against Indian Rupee and continued to be above 43-rupee a dollar mark. In bullion market, pure gold prices moved further up to close at Rs.13,040/10gm and silver closed at Rs.25,080/kg.
2. Indefinite strike is called by the All India Motor Transport Congress has impacted sales of diesel, because 95% of the total diesel sales is on the highways. One of the demands of the truckers is uniform sales tax/vat across the country.
3. The Mumbai-based Kasliwals have split the S.Kumars Group. The group’s business interests range across textiles, power and real estate.
4. UB Group Chairman, Mr. Vijay Mallya is all set to buy Spicejet stake.
5. ESPN bags 2010 soccer World Cup broadcast rights for US$40 million.
6. IMF managing director Dominique Strauss-Khan says that there is a need to tighten monetary policy in view of the doubling of the oil prices over a period of year and increasing food price inflation.
7. US car sales plunge to 10-year low in June as high gas prices and a weak economy kept American consumers away from the car showrooms. Detroit automakers were hit hard.

Indian Business News – Selected Extracts (July 2, 2008)

1. The BSE’s 30-shares index, sensex plunged below 13,000 mark, and closed at 12,962, for the first time since April 5, 2007. The sensex took a fall of 500 points. It has lost a whopping 1,460 points in the last three trading sessions. It moved out of the coveted trillion-dollar stock market league.
2. The US dollar is gaining against Indian Rupee breaching 43-rupee mark and closed at Rs.43.27 ruppee a dollar. In bullion market, gold prices moved further up to close at Rs.12,965/10gm and silver closed at Rs.24,750/kg.
3. The Indian National Action Plan on Climate Change mandates setting up of energy benchmarks for each sector and allows trade in energy saving certificates. This is to cerate a market-based mechanism to enhance cost effectiveness of improvements in energy efficiency.
4. India’s export growth slipped to 12.9% in May this year from 18% a year ago. The export growth has also taken a hit from slowdown in the US and European markets, which account for about 40% of India’s exports.
5. Hyundai reported a robust rise in the passenger car sales by 34% in June 2008. Auto leader Maruti Suzuki India reported a 2.22% rise in total vehicle sales during the same month.
6. International Energy Agency (IEA) flays Indian government for granting export unit status to Reliance Industries Limited refinery existing at Jamnagar, Gujarat.
7. CIPLA gets approval from US FDA for AIDS drug zidovudine syrup.

Indian Business News – Selected Extracts (28/06/08)

1. Bill Gates logs out. It is the end of an era. He has retired from the Chairmanship of the company he has created in 1975 – Microsoft. He remains as the world’s richest man in the Forbes list till 2007. His wealth was estimated to be over US$101 billion in 1999. He is married and has three children. We all wish him best of health, wealth and peace in the coming years.
2. The BSE’s 30-shares index sensex took a record fall of 620 points and closed at 13,802. The increasing inflation at 11.42% and the crude oil at record US$142.26 a barrel seem to be responsible for the great fall in the sensex. In bullion market, gold prices spurted on hectic buying to close at Rs.12,750/10gm and silver closed at Rs.24,605/kg.
3. Charitable Trusts can invest abroad through joint ventures and wholly-owned subsidiaries says Reserve Bank of India.
4. India’s first power exchange, Indian Energy Exchange has gone live and received bids for 13,176MWH of power.
5. The Indian real estate player, Unitech plans to dilute 26% in its telecom arm, Unitech Wireless to a strategic foreign partner.
6. Another air-fare hike is in the offing.
7. Banks in India are raising the deposit rates. SBI increases deposit rates by 75 basis points (bps).
8. The US – headquartered auto giant GM’s share plunges below US$12 in NYSE, the lowest in 55 years.

Indian Business News – Selected Extracts (27/06/08)

1. Sun Pharmaceuticals plans a hostile takeover bid for Israeli drug maker Taro Pharma as its merger agreement has fallen through. The Indian major alleges fraud, takes the Israeli drug maker to New York Supreme Court.
2. OPEC President, Algerian Energy Minister Chakib Khelil, forecast that oil prices could rise to US$150-170 a barrel during the northern hemisphere summer.
3. Despite apprehension of a slowdown in the Indian economy, foreign investors are bullish on India. FDI inflow is up by 127% in April, 2008 to US$4 billion.
4. Indian Finance Minister says the 2-digit inflation a 13-week high of 11.05% in early June will stay for some more weeks.
5. Stock markets gain on continuing demand for blue chips. The BSE’s sensex closed at 14,421 showing a rise of 202 points. Crude oil price was at US$133 per barrel. In bullion market, gold closed at Rs.12,340/10gm and silver at Rs.24,090/kg.
6. India has emerged as the world’s fourth most attractive emerging market for FDI in manufacturing businesses.

Indian Business News – Selected Extracts (20/06/08)

1. In another indication that the real estate business in Mumbai is on the downslide, the prime Indian Railway’s 11-acre plot near Bandra Railway Station had few takers, thus forcing the railways to differ its decision for the commercial development of the plot.
2. The BSE’s sensex takes 334 point inflation hit. The sensex closed at 15,088. In bullion market, gold prices advanced further to close at Rs.12,350/10gm and silver closed at Rs.24,390/kg.
3. Major domestic airlines in India have announced an increase of up to Rs.3000 in their base air fares.
4. India’s infrastructure boom has opened a door of opportunities for consumer durable companies, whose institutional business is zooming annually at 40% as compared to the 10% growth rate of retail business.
5. Indian government plans energy ties with Russia and Central Asian Countries (beyond OPEC) to meet it’s oil needs and for building energy security.
6. In India, there are no safety norms for toys. A recent study reveals presence of toxic heavy metals in intimate infant articles such as pacifiers, teethers and nipples. There is an urgent need of legislation to make BIS standards mandatory to be followed by the manufacturers.

Consumer’s Experience – Reliance Fresh

Reliance Fresh retail stores are opened in many places in Mumbai and Navi Mumbai. A typical consumer’s experience in its retail store at Sector 15, Belapur, Navi Mumbai is detailed here.

The vegetables are always in short supply. There are no varieties in vegetables. No consumer wants to go from shop to shop to buy his daily requirements of vegetables. Everybody expected to buy all the vegetable requirements from one shop – Reliance Fresh. Consumer is highly disappointed.

The prices are definitely not cheaper than other vegetable shops. Fruits are very expensive, 40-50% higher than other stores nearby. The worst part of the store is the staff members, both billing and in sales. They are far from courteous; seem to be not interested in the job. They show hardly any interest in doing business for Reliance. Manager is never found in the stores. He is hiding somewhere on the sly and smoking. Too much of plastics are wasted in the store. Definitely, the retail store is not environment-friendly.

Indian Business News – Selected Extracts (19/06/08)

1. In a sudden development, the non-executive Chairman of the Board at Bombay Stock Exchange and a Director on the board have resigned from their respective posts. The reason reported to be: micro-management of the BSE operations by some members.
2. Honda drives in India’s first hybrid car, Civic sedan with a price tag of Rs.21.5 lakh in Delhi. The petrol-electric car will be more environment-friendly and fuel-efficient.
3. Stock market’s slide returns. The Bombay Stock Exchange (BSE)’s sensex closed at 15, 422, losing 275 points. In bullion market, gold gains further to close at Rs.12,285/10gm and silver at Rs.24,230/kg.
4. Telecom solutions provider Tata Communications plans to acquire 50% stake in China Enterprise Communications (CEC) for an undisclosed amount.
5. Vijay Mallya’s UB Group has developed the technology to manufacture diet whisky and vodka in India, for which US patent was granted.
6. Ambanis trade charges over the right of refusal on the on-going merger talks of Rel. Comm with African telecom major, MTN.
7. Pfizer and Ranbaxy end Lipitor row. The agreement between the pharma majors settles the 5-year patent litigation world-wide on the cholesterol drug lipitor.
8. Indian Oil Minister compliment Saudi Arabia for its decision to increase oil production by 300,000 barrels per day to calm global crude prices.

Indian Business News – Selected Extracts (17/06/08)

1. The weak sentiments in the Mumbai Stock Market, high inflation, economic slowdown are causing weak response to the initial public offerings (IPOs). A large number of companies are shying away from the primary market and are postponing their investment plans. Most of the IPOs listed in 2008 are quoting at discount.
2. Daiichi (Japan) makes open offer for further 20% in Ranbaxy Laboratories. If the offer is fully accepted, Daiichi’s stake in Ranbaxy will rise to 58.1%.
3. Oil prices are climbing on growing demands from China and India, whose economies expanded the past years at an average annual rate of 10.2% and 7.3% respectively. Crude oil futures hit a record close to US$140 a barrel. Dollar also weakened against the euro. The state governments opined the the forex reserves could be used for oil buy.
4. Lehman Brothers Real Estate Partners will invest US$175 million to acquire 50% stake in Unitech’s domestic realty project in Mumbai.
5. Telco companies see huge scope for expansion in rural sector. There are only 22% subscribers in villages as on December 2007. Spice, Airtel and Rel. comm are in the forefront.
6. Investment bank Lehman Brothers Holdings posted a quarterly loss of US$2.8 billion matching its forecast.
7. One of the country’s largest and oldest PSU banks, Canara Bank has joined hands with MNC giant HSBC and Oriental Bank of Commerce to form an life insurance company. This is the 19th insurance company in India. The new company will have an access to over 40 million customers.
8. The BSE’s sensex opened 325 points higher, but later pared to 15,396, still showing a gain of 206 points. Sentiments were high in IT, bank and realty stocks. In bullion market, gold prices ended higher at Rs.12,200/10gm and silver at Rs.23,935/kg.