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.