Indian Business News – Selected Extracts (15/06/08)

1. Mediclaim woes: Payment hassles between hospitals and third-party agents (TPAs) of mediclaim insurers cause unnecessary delays in settling the claims. There are instances where a few TPAs, with the help of some doctors, cheat the insurance firms. Many TPAs lost their credit and are banned by some hospitals.
2. Indian carriers may import cheaper fuel as an alternative to purchases from domestic oil companies. Oil from these companies will be costlier than imported oil. The actual user of imported aviation turbine fuel (ATF) will not be subject to sales tax.
3. Ambani families are at war again: Mukesh Ambani of RIL tells MTN that it has the first right of refusal. This is in reference to the Reliance Communications’ merger talks with the telecom giant MTN.
4. Inflation at 7-year high of 8.75% due to rises in food prices.
5. Cars of “affluent” to cost more due to additional taxes imposed by the government.
6. India’s External Affairs Minister Pranab Mukherjee, who was India’s Chief negotiator for the nuclear deal with the US, made it clear that the UPA government will not back track on the nuclear issue. He said nuclear power is crucial for the country’s energy security.
7. Saudis to hike oil output to ease shortage. Saudi Arabia is currently pumping about 9.5 million barrels a day and the increase will make it 10 million barrels a day. Saudis are concerned about a slump in demand if spiraling crude oil prices are not checked.

Indian Business News – Selected Extracts (13/06/08)

1. Global crude oil prices were ruling above US$138 a barrel on Thursday. India may go for another hike in fuel prices and cuts in subsidies.
2. In the Annual General Body meeting of Reliance Industries Limited, Mukesh Ambani declared about his ambitious plans for the future. Apart from the retail rollout, Reliance put much of its money in oil and gas exploration and production business. It made a capital expenditure of Rs.19,503 Cr in last one year.
3. Ranbaxy’s takeover by Daiichi (Japan) may be a paradigm shift in Indian pharma. Indian pharma is credited with supplying affordable drugs for millions around the world. India is the biggest supplier of cheaper versions of essential drugs to the developing world and has a share of nearly 25% in overall generic space.
4. Capital goods sector in India, which is key to the industrial growth grew at the rate of 14.2% as against 10.9% in April, 2007. Fourteen of 17 industries showed positive growth in April.
5. The Reserve Bank of India issued draft guidelines for mobile banking in Indian rupees. The proposed norms include securing customers’ personal information. Banks have been requested to give their feedback by June 30, 2008.
6. Stock markets in Mumbai moved up, with the BSE sensex closing at 15,250, 65 points higher. In bullion market, gold (99.5 purity) closed lower at Rs.12,070/10gm and silver at Rs.23,905/kg.

Indian Business News – Selected Extracts (12/06/08)

1. Interest rates to be hiked again. Reserve Bank of India (RBI) raises its short-term lending rates to banks by 0.25% to rein in inflation. The move will force banks to raise the loan rates in turn.
2. India’s biggest lender bank, State Bank of India said that India is witnessing an “indirect” impact of the US sub-prime crisis. This is felt in the form of a tightening liquidity system and firmness in pricing.
3. Ranbaxy CEO, Mr. Malvinder Singh announced the largest sell-off for a listed company in domestic market Ranbaxy to Japanese MNC Daiichi Sankyo at a cost of over US$ 4 billion. It will be a win-win for both, say analysts. The Japanese drug market is worth US$60 billion, second largest in the world.
4. Stock markets in Mumbai moved up, with the BSE sensex closing at 15,185, 296 points higher. Realty, capital goods and banking stocks were in demand. In bullion market, gold closed at Rs.12,120/10gm and silver at Rs.23,910/kg.
5. An Indian firm, Lupin managed to get approval for the sale of a generic medication, Ramipril capsule by the FDA, US, despite stiff opposition from the patent holder. The capsule is the generic equivalent of US-based King Pharmaceuticals Altace capsule.
6. As per the report of International Energy Agency, Russia was the biggest crude oil producer in the world in the first quarter of 2008. The crude oil out put was 9.5 million barrels per day (MBPD) as compared to Saudi Arabia’s 9.2 MBPD. The US is ranked third with 5.1 MBPD.
7. India’s GSM cellular subscriber base touched 205.4 million in May, 2008. India is the world’s second largest wireless market.

Indian Business News – Selected Extracts (11/06/08)

1. Prices of flat are skyrocketing throughout the country. In Maharashtra State, the state government is going to levy 5% Value Added Tax (VAT) on the builders, which ultimately will be made to pay by the flat buyers. Thus, a 10 lakh flat will call for the payment of additional 50,000 rupees as VAT. In the recent past, builders have been minting money in real estate and they should absorb this tax without burdening the flat buyers.
2. India’s automobile industry has reported an 8.09% rise in its overall vehicle sales in May 2008.
3. As per a top aviation industry consultant, aviation sector is likely to suffer losses to the tune of more than US$2 billion in 2008-09. Jet fuel now costs Rs.71,759 (US$1,673) a kiloliter in Mumbai.
4. Due to continuing demand for dollars from oil companies, Indian rupee is fast approaching Rs.43 level against the US dollar.
5. Stock markets in Mumbai remain in the red with BSE sensex closing below 15,000 mark. The sensex closed at 14,889 – a 10 month low, losing 177 points. Pharma and FMCG scripts were in demand. In bullion market, gold moved down closing at Rs.12,320/10gm and silver at Rs.24,280/kg.
6. After announcing a tie-up for bringing iphone, Bharti Airtel and Apple extended their partnership to launch the 3G version of iphone in India.
7. Aditya Birla group flagship, Grasim Industries has hived off its sponge iron business to Welspun Power and Steel of BK Goenka group

Indian Business News – Selected Extracts (09/06//08)

1. Unfinished irrigation projects along the Krishna basin prompted the Maharashtra government to offer the projects to private sector. Five projects worth about Rs.1974 Cr will go for public private partnerships (PPPs).
2. As per the credit rating agency Moody’s, public sector banks in India have been losing around an average one per cent market share per annum over last 15 years to the private sector.
3. India’s biggest carmaker Maruti Suzuki has emerged as the fourth most reputed among auto companies in the world – according to Global 200: The World’s Best Corporate Reputations list.
4. The BSE ‘s 30-share sensex crashed today (Monday) by over 500 points to close at 15,066. Runaway inflation and crude prices make market players jittery. Nymex crude closed at US$136.75 per barrel.
5. The world’s top industrialized nations (G-8) and leading oil consumers pledged on Sunday to fight skyrocketing energy prices by increasing efficiency and accelerating investments in new technologies.
6. Pharma companies restructure portfolios to cash in on lifestyle segment boom. The lifestyle segment (chronic diseases) is growing double digit and faster than all other areas in the pharma market.
7. The New India Assurance will soon be re-launching its birthright insurance scheme. The birthright insurance covers pregnant women against risk of giving birth to children with congenital anomalies.
8. Industries are required to display emission data online–to make monitoring pollution more transparent and accountable, as per the Central Pollution Control Board.

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

1. Fuel hikes in India could lead to 3-4% hike in road freight charges. Fuel constitutes 50-60% of the total cost and it is difficult to absorb the hike.
2. Verizon Wireless agreed to buy Alltel Corporation for US$28.1 billion in cash to overtake AT&T as the biggest mobile phone company in the US.
3. The BSE ‘s 30-share sensex gained 255 points to close at 15,770 on Thursday. IT stocks rallied on the back of weak rupee against the dollar, ONGC gained on the back of petro-product price hike. Volatile trading was witnessed in Reliance Industries stocks. In bullion market, gold prices dropped further to close at Rs.12100/10gm and silver at Rs.23,800/kg.
4. Tata Group from India has emerged as the world’s sixth most reputed company, while Reliance Industries failed to make the grade. The global list is topped by Japanese auto maker Toyota, followed by US based internet search giant Google.
5. WIPRO has undertaken significant leadership restructuring and pan-global geographic re-grouping. Services currently account for 95% of Wipro’s revenues.
6. Continental Airlines to cut 3000 jobs and reducing capacity by 11% in view of the record fuel price.
7. Indian government amends money laundering law to cover transfer services, credit cards. The union cabinet decided to amend the Prevention of Money Laundering Act, making it mandatory for these financial intermediaries to report all suspected transactions involving international money transfers.

Indian Business News – Selected Extracts (04/06//08)

1. Indian Telecom service provider, Spice Communications is open to all offers, including stake sale, needs fund for expansion. Waiting proposal from Telekom Malaysia, which holds 39.2% stake in the company.
2. General Motors is planning to close four truck plants and could sell Hummer brand to cut slow-selling trucks from its lineup in response to the higher gasoline prices.
3. The Indian stock market regulator, SEBI is going to allow exchange-traded currency futures to enable investors mange volatility in the currency markets.
4. Indian government’s reluctance to raise fuel prices in step with input cost will result in the three major state-owned oil companies losing Rs.246,000Cr in revenues this fiscal.
5. India lost its position to Vietnam as the most attractive emerging market destination for retail investment. India has been at the top of the global retail development index (GRDI) for the past few years due to steep and consistent rise in the income levels of Indian consumers.
6. India’s mining industry is projected to touch over US$30 billion accounting for about 2.5% of the GDP in the next four years.
7. The BSE ‘s 30-share sensex lost 101 points to close at 15,965. This was the lowest close for the sensex since April 11. Power and Capital goods stocks were worst hit. In bullion market, gold closed at Rs.12,315/10gm and silver at Rs.23,820/kg.