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.