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UP AND DOWN
Capital management becoming difficult: RBI
RIL market cap crosses $100 b
FDI proposals worth Rs 1,257 cr cleared
FM assures hearing to FIIs on P-Notes
TCS wins $1.2 b Nielsen deal
Ficci against Indo-China FTA
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Mittal, Total ink pact with HPCL
PNB in tie-up with IIFC
Nano City Project
Exports up 22 pc at $125 billion
Computer Associates opens facility in India
Govt plans power bonds
Tax collection up over 40 pc
Corporate Results
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UP AND DOWN
Mumbai, October 18 Withdrawal by hedge funds through FII route and cautious tone adopted by foreign funds led to the Sensex tanking 717.43 points to close at 17,998.39. Most blue chip companies, barring some IT firms, recorded losses. ACC and Reliance Energy led the losers in terms of percentage, demonstrating that the reassurance by the government and market regulator SEBI did not last even 24 hours. Market analysts predicted that trading in the next few days is likely to see selling pressure and market vascillating violently both on speculation about the fate of PNs, an instrument through which hedge funds have significant presence in virtually all blue-chip companies. On top of it, the political situation and the speculation relating to the government may also have had an impact on the market, some analysts felt. "Today's fall was due to heavy selling by foreign funds.. The fall is mainly due to reshuffling, covering of liquid positions and investors taking a long-term call on the market, Premium Investments' S P Tulsian said. Some foreign investment banks, including Citigroup, today warned that the proposed move by SEBI to curb issuance of offshore derivative instruments like PNs would affect the Indian market in the short term. The Sensex hit an all-time intra-trade peak of 19,198.66 in the afternoon before the big slump, the second biggest in a day after the 826.38 point fall on May 18, 2006. The broader S&P CNX Nifty of the National Stock Exchange (NSE) also scaled a new peak of 5,736.80 before ending lower by 208.30 points or 3.75 per cent at 5,351.00 from previous close of 5,559.30. — PTI
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Capital management becoming difficult: RBI
Washington, October 18
"I am only looking at the timetable by which the pre-conditions are fulfilled. Once the pre-conditions are fulfilled, full capital account convertibility and liberalisation will follow," Reddy said in his address at the Peterson Institute of International Economics here. He said with opening of trade, it was becoming difficult to manage capital. "Purely from a management point of view, it is far easier to manage a liberalised capital account than a capital account controlled. We have to recognise that trade is getting more and more open and if we have more and more open trade, more and more current account, it is very difficult to manage the capital. We have to recognise that," Reddy said. India is receiving "copius" flow of funds in the stock market forcing the market regulator and the central bank to tighten controls. Reddy said before moving to the full capital account convertibility, certain risks have to be tackled. ".. If there are some policies which are so risky, those have to be addressed first," Reddy said. India allows unrestricted movement of currency on current account for trade and business transactions. It has recently liberalised even the capital movement abroad but retains controls on full capital account convertibility. An official panel, known as Tarapore Committee, had spelt out a roadmap for the capital account convertibility. — PTI
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Mumbai, October 18 The share prices of country's most-valued firm today rose by Rs 114.7 to a life-time high of Rs 2,805, pushing the company's market capitalisation to Rs 4,07,748.82 crore ($103 billion). A total of 10.57 lakh shares of RIL changed hands at the exchange in the afternoon trade. Earlier last month, Ambani had become the first person in the country to head a group worth more than $100 billion of market value. However, that included four of his group companies and India was yet to have a single company with a market cap of $100 billion at that time. Q2 net up 27.9 pc
Reliance Industries today posted a 27.9 per cent increase in net profit at Rs 3,837 crore for the second quarter ended September 30 as compared to Rs 3,000 crore in the year-ago period. Total income jumped 6.72 per cent to Rs 32,211 crore during the quarter as against Rs 30,181 crore a year ago, the company informed the BSE.
— PTI |
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FDI proposals worth Rs 1,257 cr cleared
New Delhi, October 18 The inflows from Essar Telecommunication Holdings, Mauritius, will be used as 100 per cent foreign equity in a firm engaged in infrastructure for Internet protocol. The proposals related to different areas of industry, including renewable energy, IT, telecom and bio-technology. The FDI proposals cleared by the government also included a Rs 480-crore plan by Greenko Mauritius to convert its operating company Balaji Biomass Power Pvt Ltd into an operating-cum-holding firm for making downstream investments in power projects. The FIPB recommended that six proposals be deferred, which included that of US-based Millennium India Acquisition Company Inc. The US firm wanted induction of equity into two non-banking finances companies with operations in stock broking and mutual fund distribution.
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FM assures hearing to FIIs on P-Notes New York, October 18 Facing a barrage of questions on SEBI’s proposals on offshore derivative instruments such as PNs to check anonymous funds, he said there was a need to moderate flow of funds into stock markets in view of investors looking for destinations for parking proceeds from liquidation of securities in their own countries. “Foreign investors are liquidating holdings of securities in their countries and putting the money elsewhere. It has, therefore, become necessary to take some measures to moderate the flow of funds into India,” he said. Dubbing SEBI’s proposals as a well-thought of move, he said: “We expected criticism... but in short such measures are unavoidable.” SEBI’s move had led to a carnage at the bourses with markets tanking over 1,700 points within minutes of opening yesterday and the fall was arrested only after both he and SEBI chief moved in with reassuring statements. — PTI
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New Delhi, October 18 Under the deal, which would be spread over a period of 10 years, TCS would manage certain finance and human resource business processes, company's CEO and managing director S Ramadorai told reporters here. The contract would give advantage to TCS in terms of currency value and reduce its dependence on the US market, as US dollar has been on the decline vis-a-vis Indian rupee. "The revenues from the deal will start coming from the first year of its operation and the contract pricing takes into account inflationary measures," company's COO N Chandrasekaran said. While declining to specify the exact number of TCS employees who would be working on this contract, he said, "Thousands of employees... we will ramp up our headcount significantly in the next 3-6 months." TCS's centres in India, North America and Eastern Europe would be involved in providing solutions to Nielsen. About 350 employees of Nielsen at Baroda would be integrated in TCS to help it accelerate development of its KPO service delivery platform. — PTI
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Ficci against Indo-China FTA
New Delhi, October 18 In a study on ‘Granting market economy status to China: Views from corporate India’, Ficci said the idea of a full-blown FTA with China is much ahead of its time and India must wait before considering ‘market economy status’ for its eastern neighbour. The Chinese industry enjoys ‘unfair advantage’ over their Indian counterparts due to several factors, particularly massive across-the-board state support for domestic companies, an array of tax exemptions, and artificially undervalued Chinese currency. “While Ficci welcomes the upswing in India-China trade witnessed in recent years, it feels that we should not rush into an FTA with deep tariff liberalisation,” it said. Alluding to a recent research paper by economists Jeevika Weerahewa and Karl Meilke, which concluded that an India-China FTA would lead to sizable welfare gains for China and losses for India, Ficci feels such a trade agreement would not be in the interest of India. “The chamber is in favour of a careful and gradual approach on this issue so that the growth momentum of two-way trade remains sustainable. Any sudden, ambitious or deep tariff cuts would disrupt the process and make the fast-growing bilateral trade relations unsustainable,” cautioned Ficci. The chamber observed that despite improvements made in last few years, China would need to take effective measures to make its pricing and accounting systems more transparent and market-oriented. “Unless these issues are adequately addressed, controls over various prices removed and level playing field established, market economy status should not be accorded to China,” Ficci pointed out.
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Mittal, Total ink pact with HPCL
New Delhi, October 18 This will be Mittal’s second investment in energy sector in India, the first being 49 per cent stake in HPCL’s Bhathinda refinery. Oil India Limited and GAIL (India) are the other two stakeholders in the proposed petrochemical complex. “The five partners have signed an MoU today to study feasibility of the refinery-cum petrochemical complex,” HPCL chairman and managing director Arun Balakrishnan said. GAIL will take lead in the feasibility study of the petrochemical unit, while Total will take charge of conducting the feasibility study for the refinery project, he said. The exact equity structure and project cost would be decided only after the feasibility studies are completed, he
said.
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PNB in tie-up with IIFC
New Delhi, October 18 Kohli said the two organisation can leverage the presence of PNB in Haryana and Punjab for funding big infrastructure projects in the states. Chakrabarty pointed out that as on March 31, PNB has made sanctions aggregating to Rs 17,983 crore, which has further increased to Rs 24, 568 crore as on June 30, in various infrastructure projects spread over 470 accounts, with the power sector accounting for the highest Rs 17,715 crore, followed by road sector accounting for Rs 2,345 crore. |
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Hooda meets Sabeer Bhatia
Tribune News Service
Chandigarh, October 18 The project is being developed by the Haryana government and Sabeer Bhatia as a joint venture. The city has been conceptualised and planned by the College of Environment Design, University of California. San Francisco was the last destination of the delegation on the itinerary of the USA. According an official spokesman, Hooda was impressed with the presentation and appreciated the need for the optimum and efficient use of resources like water and power, while planning the city. The delegation also visited the headquarters of Google at Silicon Valley. A presentation on the strategies of Google’s operations, in particular to Asia, was also made. Asia is a matter of interest to the company as asian countries like India and China are its major profit centres. The delegation also visited the museum of the University of Stanford.
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Exports up 22 pc at $125 billion
Chandigarh, October 18 This was disclosed at the fourth meeting of sub-committee of the State Level Bankers Committee (SLBC) for export promotion held here today. Issues relating to promotion of exports from Punjab, especially with regard to availability of export finance, other bank- related issues and availability of requisite infrastructure were discussed in the meeting, which was chaired by A.R. Talwar, principal secretary (industry and commerce), Punjab, and presided over by J.M. Garg, executive director, Punjab National Bank Garg stated that the country’s exports have increased to $59.48 billion during April-August as against $50.26 billion during the corresponding period in last year, registering growth of 18.36 per cent. However, steady appreciation of the rupee is dampening the growth of exports and it is expected that goods worth $140 billion be exported during the current fiscal as against export level of $125 billion during the previous year. The rupee has affected profit margins of exporters, especially sectors which face competition from neighbouring countries like Pakistan, Sri Lanka and Bangladesh, where the currency appreciation has not been as sharp as in India.
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Computer Associates opens facility in India
Hyderabad, October 18 Constructed at a cost of $30 million, the state-of-the-art campus at Nanakramguda was formally inaugurated by the company president and CEO John Swainson. Started in 2003, the ITC now has a 1,600 strong workforce, which is 30 percent of the global research and development staff of the company. CA, which has offices in 45 countries, has 150 employees at its global technology support centre in Chennai. It also has sales offices and solution centres in Mumbai, Delhi, Bangalore, Kolkata and Ahmedabad. |
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Govt plans power bonds
New Delhi, October 18 It would form a part of the exercise to raise Rs 10.64 lakh crore required for funding the power sector projects in the 11th Plan.
— PTI |
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Tax collection up over 40 pc
New Delhi, October 18 Corporate tax recorded a growth of 40.29 per cent at Rs 75,549 crore, up from Rs 53,853 crore during the previous fiscal. Personal income tax (including FBT, STT and BCTT) grew by 41.13 percent at Rs 46,320 crore, up from Rs 32,821 crore. Growth of over 49 per cent in direct taxes, deducted/collected at source, is a strong indicator of increasing employment, employee compensation and private investments, while growth of about 30 per cent in advance direct tax collections is indicative of better profitability and improved cash-flows in businesses- particularly in the core, consumption and financial sectors, it said.
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Ranbaxy Q3 net up by 65 pc at $50 million
New Delhi, October 18
Ranbaxy's consolidated revenues in the third quarter grew 15 per cent to $406 million compared to $353.04 million in the corresponding quarter last fiscal. The company also declared an interim dividend of Rs 2.5 on a share of Rs 5 each (50 per cent) for its shareholders. CEO and managing director Malvinder Mohan Singh said the company’s Board has given an in-principle approval to the proposed demerger of its drug discovery and research operations into a separate entity. Biocon nets Rs 107 cr
Reporting a 27 per cent growth in net profit, biotech major Biocon Limited today announced a revenue of Rs 553 crore and a net profit of Rs 107 crore for the first half of the current fiscal. Consolidated revenues grew by 19 per cent over the same period in the previous year. Research Services (Syngene) continued to deliver a robust dollar denominated growth of 60 per cent and an impressive 43 per cent based on rupee realisation. Profit was restrained by rupee appreciation, the company said. RNRL profit zooms
Anil Dhirubhai Ambani Group company, Reliance Natural Resources Limited (RNRL) has registered 176 per cent jump in net profit to Rs 19 crore for Q2 FY 08, against Rs 7 crore in the corresponding previous period. The company's total income stood at Rs 61 crore in Q2 FY 08, against Rs 24 crore in the corresponding previous period, an increase of 160 per cent. Hexaware Tech
IT and BPO services provider Hexaware Technologies has posted a 22.38 per cent decline in net profit at Rs 26.92 crore for the third quarter ended September 30, as against Rs 34.68 crore for the same quarter previous year. The income of the company increased to Rs 263.25 for the third quarter as compared to Rs 233.27 crore for the same quarter in year-ago period, up 12.85 per cent. Orchid Chemical
Drug maker Orchid Chemicals & Pharmaceuticals has posted over two-fold increase in its net profit at Rs 63.27 crore for the quarter ended September 30 compared to Rs 29.45 crore in the same quarter last year. The company's total income stood at Rs 295.43 crore, up by 20.19 per cent for the quarter under review against Rs 245.95 crore in the corresponding period last fiscal. Ambuja Cement
Ambuja Cement Holdings Ltd, a subsidiary of Gujarat Ambuja Cements, has posted 30.07 per cent increase in net profit at Rs 292.42 crore for the quarter ended September 30 against Rs 224.81 for the same period last year. The total income of the company rose 21.92 per cent at Rs 1,707.20 crore for the second quarter ended September 30 compared to Rs 1,400.26 crore in the year-ago period. Hero Honda
Hero Honda Motors today reported a 5.38 per cent decline in profit after tax for the quarter ended September at Rs 204.33 crore as against Rs 215.97 crore in the corresponding period last year. The company said its sales during the period under review stood at Rs 2,391.36 crore as against Rs 2,289.44 crore in the year-ago period, up 4.45 per cent. GMR Infra
GMR Infrastructure has posted a dip of 7.53 per cent in its profit at Rs 49.58 crore for the quarter ended September 30, against Rs 53.62 crore for the same quarter last fiscal. The total income of the company increased 20.26 per cent at Rs 406.96 crore for the second quarter compared to Rs 317.09 crore for the corresponding period last year.
— TNS, Agencies |
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