|B U S I N E S S||
Tuesday, December 28, 1999
|Bull run sent sensex above
MUMBAI, Dec 27 Driven by political stability and first sings or revival in the Indian economy, major stocks indices posted unprecedented gains during the year 1999.
Assocham for unity among chambers
NEW DELHI, Dec 27 Notwithstanding the conflicting stand of leading business chambers on crucial economic issues, the Assocham will strive to evolve an informal mechanism to bring about greater cohesion in their activities, chambers new President Shekhar Bajaj said today.
|Dabur exits cosmetics business
NEW DELHI, Dec 27 Close on the heels of exiting from confectionery business and minimising stake in foods venture, the Rs 800 crore pharma major Dabur India Limited has phased out its cosmetics brand Samara.
Hydrocarbon Vision 2025
VASAI (Thane), Dec 27 The Prime Minister, Mr Atal Behari Vajpayee, has set up a Hydrocarbon Vision 2025 committee for planning for petroleum products in the next 25 years, according to Union Petroleum and Natural Gas Minister Ram Naik.
20 towns to have software
85 NTC mills may face closure
Wastewater treatment of textile
Allahabad Bank installs ATM
WWICS scheme for weaker sections
NSE to hold mock trading session
MUMBAI, Dec 27 (UNI) Driven by political stability and first sings or revival in the Indian economy, major stocks indices posted unprecedented gains during the year 1999.
The 30-share sensex of the BSE created history by surpassing the 5000 points mark, while the S and P CNX-Nifty index too made a whopping gain during the year. The 30-share sensex recorded a gain of 1819.32 points or 59.54 per cent, while the S and P CNX-Nifty index zoomed up 573.82 points during the calendar year 1999.
This is the third time in BSEs history that the sensex recorded such a hefty gain during the calendar year and first time in the last seven years.
After a long time the country has seen a stable government at the Centre and the phase of uncertainty is over. Followed by this, the industrial performance too improved. Besides it, economy sectors such as cement, steel and auto performed well, pushing up the stock market continuously in the upward directions during the year, said NSE Managing Director R.H. Patil.
Crediting the political stability for the wonderful performance of the stock market during the year, Mr Patil said after the Congress Government lost in 1996, we saw a series of coalition governments in the absence of clear majority to any single party, and during the coalition regime, economic reforms slowed down. This had sent alarm signals in the secondary market.
However, the present Government speeded up the reforms, clearance for the Derivatives and Insurance Bill within two months after the formation of the new NDA Government sent positive signals to the foreign institutional investors (FIIs) as well as among the domestic investors.
The total market cap at the BSE posted an increase of Rs 4,22,549 crore to Rs 9,25,000 crore as against Rs 5,02,451 crore, while the business volume also registered an whopping increase of Rs 4,13,417 crore at Rs 8,33,282 crore during the calendar year 1999.
Information technology major Wipro Ltds market capitalisation touched Rs 48,651.98 crore, just Rs 2,507 crore short of market leader and consumer goods giant Hindustan Levers (HLL) market capitalisation figure of Rs 51,159. Currently, the top three stocks ranked by market cap are HLL, Wipro and Infosys Technologies Ltd on the BSE and NSE.
Mirroring the market mood, the 30-share BSE sensex started at 3060.34 points on January 1, 1999. Incidentally, it was the years low.
Surpassing the 5000-mark, the index benchmark created history on October 8 and touched an-all-time high of 5075.39 on October 14, 1999, and finally ended the 4874.73 points as against the previous years close, showing a net gain of 1819.32 points.
As part of market reforms and various investor-friendly decisions, the BSE created the Z group for the companies that violate the listing compliances.
The BSE has even filed winding up petitions against some of these companies for violations of various investor-friendly norms and SEBI and BSE regulations.
The Indian stock markets still depends much on FIIs. The major stock indices witnessed downward movements during the months when there was continuous outflow by FIIs. The FIIs were net sellers during the months of March, June, July, August and September.
NEW DELHI, Dec 27 (PTI) Close on the heels of exiting from confectionery business and minimising stake in foods venture, the Rs 800 crore pharma major Dabur India Limited (DIL) has phased out its cosmetics brand Samara.
The proposed joint venture (JV) of DIL, which specialises in ayurvedic formulations, with Swedish cosmetics major Antonio Puij for reviving Samara through fresh infusion of funds and expertise has also fallen through, company sources said here today.
A memorandum of understanding (MoU) had been signed by the two partners in 1998 to make the 50:50 JV functional by January this year.
The JV with Antonio Puij is off and Dabur has no current plans for Samara brand of cosmetics, company sources told PTI.
Despite repeated attempts, however, DIL spokesman refused to comment on the aborted venture and the parting of ways with Antonio Puij besides phasing out of Samara.
On being asked if the company was either scouting for another partner to revive Samara or if the brand would be relaunched in its current form in the domestic market, DIL again declined to comment.
As per the MoU, Antonio Puij, makers of the famous Pacco Raban perfume, had agreed to bring in their technical knowhow to the proposed JV, cashing on their wide global expertise.
While research formulations for the JV company were to be provided by DILs in-house research and development (R&D) arm Dabur Research Foundation, improved and attractive packaging was to be provided by Antonio Puij.
Earlier G.C. Burman had told PTI, Were getting into a JV with another cosmetics major because Samara is yet to pick up substantial volumes necessary to sustain growth in the domestic market, even though sales have been growing each year.
DILs latest debacle on the cosmetics front comes close on the heels of the companys exit from several business areas, as part of a major restructuring exercise undertaken for the last two years, on the recommendations of management consultants McKinsey.
As per McKinseys recommendations, DIL exited several unrelated diversifications and JVs and was asked to concentrate on its core strengths which include Ayurveda and other healthcare products.
Early this year, it
exited the confectionery business General de Confetaria
by selling off its stake to Spanish partner Agrolimen and
became a minority partner in its foods JV by selling off
20 per cent of its stake to Swedish partner Nestle SA.
NEW DELHI, Dec 27 (PTI) Notwithstanding the conflicting stand of leading business chambers on crucial economic issues, the Assocham will strive to evolve an informal mechanism to bring about greater cohesion in their activities, chambers new President Shekhar Bajaj said today.I will try to evolve an informal mechanism to work out a common strategy among the chambers on crucial economic issues, Bajaj, who took over as Assocham President told PTI.
Bajaj said he was prepared to talk to anybody in bringing about greater cohesion among various apex business chambers activities as long as it benefited the business community.
There is already a great deal of coordination and camaraderie between us and FICCI and we are willing to join hands with anybody if the chamber feels such steps are to its advantage, he said.
Assocham and FICCI have their representatives on each others management committee.
When contacted, CII Director General Tarun Das said he would welcome any effort by Assocham to inject greater coordination among leading chambers.
assumes significance in the wake of divergent views being
expressed by CII, FICCI and Assocham on issues like
privatisation and closure of public sector banks,
corporate governance and financial institutions
role in the Board of companies.
VASAI (Thane), Dec 27 (PTI) The Prime Minister, Mr Atal Behari Vajpayee, has set up a Hydrocarbon Vision 2025 committee for planning for petroleum products in the next 25 years, according to Union Petroleum and Natural Gas Minister Ram Naik.
comprising Naik, Finance Minister Yashwant Sinha,
External Affairs Minister Jaswant Singh and Deputy
Chairman of Planning Commission KC Pant, would submit its
report by the end of March, 2000.
NEW DELHI, Dec 27 (PTI) Software Technology Parks of India (STPI), an autonomous society under the Ministry of Information Technology, has embarked on a Rs 100 crore project to build earthstations for high speed data communication links in 20 secondary towns in India.
We will set up software parks in 20 secondary locations for IT companies. The parks equipped with earthstations will provide high speed data links to infotech firms, Subir Hari Singh, Director General, STPI told PTI.
The funding of individual earthstations would be undertaken jointly by State Government, Centre and STPI.
The organisation was considering locations including Hublie, Pondicherry, Bhopal, Patna and Srinagar for setting up software technology parks.
Earlier, the parks were being set up in major cities in India. However, IT companies are now looking at smaller locations as it cuts down substantially on investment in real estate, he said.
NEW DELHI, Dec 27 (UNI) The heavy losses suffered by the 85 National Textile Corporation mills proposed to be closed down are due to the faulty policies of successive governments and workers are being unfairly punished, the NTC (UP) Employees Union said today.
Nearly 75,000 workers, 51 per cent of them belonging to weaker sections of the society, would be rendered jobless when the mills are shut down, the union said in a statement.
Most of these mills proposed to be closed down can be revived with the amount earmarked for the voluntary retirement scheme alone, the union said.
The Government should have withdrawn budgetary support in a phased manner and implemented revival plans if the mills were to be run on commercial lines. Instead, it took a number of unplanned actions that led to the current state of affairs, it alleged.
The Centre stopped posting a full-time chairman and managing director for the mills (UP region) in 1985, stopped financial assistance for working capital in 1991-92, began charging interest on financial assistance and VRS grants and shifted production of cloth from the organised sector like NTC mills to the decentralised sector as per the New Textile Policy of 1986. No effort was made to modernise these mills by changing the obsolete machinery.
The union said
fruitless efforts were made to revive some of
the mills under turn around plans in 1992,
1995 and 1998. Government inaction in this period turned
good productive machines into scrap, increased the
liabilities and eroded the networth of many mills, it
treatment of textile industry
CHANDIGARH, Dec 27 Japan has overcome environmental issues through efforts of both public and private sectors and by facilitating positive introduction of environmental facilities as well as technological advancements.
HP State Pollution Control Board has submitted a proposal to the Department of Economic Affairs, Government of India under Green Aid Plan (GAP) programme. Under the programme India intends to utilise Japanese to expertise and knowledge for bringing about environmental improvement, said Mr Nagin Nanda, Member Secretary HP State Pollution Control Board. The seminar was organised by CII in collaboration with Japan External Trade Organisation (JETRO) here today.
Mr R.K. Jain, Director Industries, Government of Himachal describing the type and spread of industrial units in the state said that with the increasing medium and large industrial units the need for an environment technology is more important today than ever before. He further said that environment is a common resource to the entire mankind. Its collective awareness will help us effectively combat temptations based on purely economic considerations.
The emergence of the environmental consciousness and and its impact on industrial activities in the developed markets, have given a new thrust to development of cleaner technologies and products said Mr A.R. Singh, Chairman, CII Himachal State Council in his opening remarks.
A presentation on possibilities of introduction of the Cleaner Production Technology to industrial wastewater treatment in India was given by Dr R Shinohara, Professor, Faculty of Environmental and Symbiotic Sciences, The Prefectural University of Kumamoto, Japan.
Another presentation on Japans experiences on pollution control and the role of Japan Environment Corporation in wastewater treatment in textile dyeing/finishing industry, which was addressed by Mr Y. Takabe, Director, Department of Environmental Projects, Japan Environment Corporation.
Mr N. Katsukura, General Manager, Engineering Department, Environmental System made a presentation on technology of textile dyeing/finishing process and decoloration for wastewater treatment.
The seminar was attended
by representatives from the State Governments of Punjab,
Haryana, Himachal Pradesh, Chandigarh Administration and
Central Pollution Control Board. Dr Prashant Gargava,
Environmental Engineer, Central Pollution Control Board,
Bank installs ATM
CHANDIGARH, Dec 27 Mr Harbhajan Singh, CMD Allahabad Bank today inaugurated first ATM of Chandigarh region at its Civil Lines Jalandhar branch.
Mr Singh said that the bank is opening its 2000th office on the eve of new millennium at Sector 34, Chandigarh, apart being fully mechanised will also have ATM facility for its customers.
scheme for weaker sections
CHANDIGARH, Dec 27 Worldwide Immigration Consultancy Services (WWICS) has embarked upon a scheme of helping deserving wards of weaker sections to immigrate to Canada.
WWICS will render all help free of cost to them in their venture to immigrate, placement and settlement in Canada, said Lt Col B.S. Sandhu, CMD, WWICS. He said these professionals will be able to uplift their families financially and economically. This gesture includes wards of Kargil heroes and other defence personnel.
The WWICS adopted 6 families of the Kargil martyrs and the education of the children of killed soldiers are taken care of by the company.
MUMBAI, Dec 27 (PTI) Following a SEBI directive, the National Stock Exchange has decided to schedule an additional mock trading session in the capital market segment on January 2, 2000.
The NSE has requested all trading members to participate during the mock trading which would enable them to ascertain the Y2K readiness of all NSE applications and also other systems deployed at the members end including Trader Workstations (TWs) and back-office systems, an NSE release said here today.
These integrated sessions will also test systems deployed at other external associates such as clearing banks, custodians, depository etc.
Meanwhile, the NSE has requested the members to make full use of the last opportunity and said those members who do not participate in the mock trading session may face problems on January 3.
On January 1 and 2, the normal market would function from 9.30 am to 11.30 am and auction market will be from 11.45 am to noon.
Gold Std. Rs 4480
Gold 22-Ct Rs 4330
Silver Ready Rs 7880
Silver delivery Rs 7905
Co-op sugar mill
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