Net claims by non-residents up at $332 bn

"This change in the net position reflected a USD 37.8 billion increase in the value of foreign-owned assets in India vis-a-vis a USD 24.9 billion increase in the value of Indian residents' financial assets abroad," RBI said.

Net claims by non-residents on India increased to USD 331.6 billion as on March 31 -- up USD 12.8 billion from the previous quarter. The increase in claims largely reflected valuation effects, the Reserve Bank today said in a release on 'India's International Investment Position (IIP), March 2014'.

The difference between an economy's external financial assets and liabilities is its net IIP. "This change in the net position reflected a USD 37.8 billion increase in the value of foreign-owned assets in India vis-a-vis a USD 24.9 billion increase in the value of Indian residents' financial assets abroad," RBI said.

Also Read: External debt up over 7% on higher non-resident deposits

Foreign-owned assets increased by USD 37.8 billion over the previous quarter to USD 814.8 billion, mainly on increase of USD 16.1 billion in direct investment in India and an increase of USD 13.4 billion in portfolio investment. Among other investment liabilities, loans (mainly external commercial borrowings) increased by USD 7.5 billion and trade credits declined by USD 4.5 billion.

Assets of Indian residents abroad rose by USD 24.9 billion from previous quarter to USD 483.2 billion mainly due to increase of USD 10.3 billion reserve assets and USD 8.9 billion direct investment abroad. In terms of annual variations, international financial assets abroad increased by USD 35.4 billion, to USD 483.2billion as on March 31, 2014.

"These included increase of USD 9.2 billion in direct investment abroad and USD 12.1 billion in reserve assets," RBI said. Also, international financial liabilities increased by USD 40.3 billion on a year-on-year basis to USD 814.8 billion. "As a result of the...changes in external assets and liabilities, net claims of non-residents on India increased by USD 4.9 billion as at end-March 2014, on a year-on-year basis," RBI said.

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ICICI to open branches in Australia, SA, Mauritius: Kochhar

The country's largest private sector lender  ICICI Bank Monday said it plans to open branches in Australia, South Africa and Mauritius.

The city-headquartered bank has received the regulatory clearances to open the branches and will also upgrade its representative office in China, Managing Director and Chief Executive Officer Chanda Kochhar told reporters on the sidelines of its 20th annual general meeting here.

"Under the bank's foreign expansion plans, we will open branches in Australia, South Africa and Mauritius for which clearance is received from the Reserve Bank of India. We already have a representative office in China, where we will open a full-fledged branch," she said.

Also Read: HDFC Bank seeks shareholders' nod to raise Rs 10,000 cr

ICICI has the largest overseas network among Indian private sector banks, she said, adding that it has three subsidiaries and eight representative offices abroad.

The subsidiaries in the UK and Canada have had selective growth in business along with an improvement in profitability after a period of consolidation, she said.

"We have also focused on optimising the capital levels in this business through repatriation of capital and dividend payouts," she added.

Fiscal 2013-14 was a year in which ICICI focused on strengthening its business, network, technological capabilities and financial parameters, she said.

The bank added 653 branches and 834 ATMs to take the total network to 3,753 branches and 11,315 ATMs, she said.

"We were cognizant of the risks in the environment and calibrated our approach accordingly. Our future outlook is positive. We believe that the formation of a stable government with a focus on growth will help realise India's vast potential," Kochhar said.

A strong and diversified franchise, large distribution network, healthy capital position and sustained improvements in the balance sheet and profitability profile will help it leverage opportunities for profitable growth, she asserted.

Kochhar pointed out that during FY 2014, it could improve the performance in an environment marked by elevated interest rates, low growth and significant market volatility.

"We adopted a balanced approach towards growth, profitability and risk management," she said.

ICICI Bank stock price

On June 30, 2014, ICICI Bank closed at Rs 1418.45, up Rs 33.65, or 2.43 percent. The 52-week high of the share was Rs 1590.35 and the 52-week low was Rs 758.80.

The company's trailing 12-month (TTM) EPS was at Rs 84.85 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 16.72. The latest book value of the company is Rs 633.13 per share. At current value, the price-to-book value of the company is 2.24.

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External debt up over 7% on higher non-resident deposits

In terms of major components, the share of external commercial borrowings (ECBs) continued to be the highest at 33.3 percent (USD 146.5 billion).

Higher non-resident deposits led to a rise of 7.6 percent in India's external debt at USD 440.6 billion for the financial year ended March 31. "India's external debt, as at end-March 2014, was placed at USD 440.6 billion showing an increase of USD 31.2 billion or 7.6 percent over the level at end-March 2013.

"The increase in total external debt during financial year 2013-14 was primarily on account of rise in Non-Resident Deposits," Reserve Bank data showed today. In a release about 'India's External Debt as at the end of March 2014', it said the surge in outstanding stock of NRI deposits can mainly be attributed to mobilisation of fresh FCNR(B) deposits by commercial banks under the swap scheme offered by the RBI during September to November 2013.

Also Read: RBI switches to online bond platform to manage cash

In terms of major components, the share of external commercial borrowings (ECBs) continued to be the highest at 33.3 percent (USD 146.5 billion). It was followed by NRI deposits at 23.6 per cent (USD 103.8 billion) and short term debt at 20.3 per cent (USD 89.2 billion). The RBI said: "US dollar denominated debt continued to be the largest component of India's external debt with a share of 61.8 percent as at end-March 2014, followed by Indian rupee (21.1 percent), SDR (6.9 percent), Japanese Yen (5.1 percent) and Euro (3.4 percent)."

Also, government or sovereign external debt stood at USD 81.5 billion as at end-March 2014 as against USD 81.7 billion as at end-March 2013.

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Nasscom for special measures in Budget on startups, others

In its pre-budget proposal, IT-BPO industry body Nasscom has pitched for special measures to foster the eco-system for entrepreneurs, startups and innovation.

"There are few important issues that we have flagged to the Finance Minister in the context of the budget..." Nasscom President R Chandrashekar told reporters here.

"We have identified more than dozen different areas which require attention like the funding, the taxation, the ease of forming, operating and closing the company," he said.

Nasscom has talked about training and entrepreneurship development, incubators and accelerators, the funding needs-especially the early stage seed funding-, the kind of infrastructure support in the academic institutions for research and commercialisation of such innovative ideas.

"There are more than dozen such areas which we felt need to be supported with technology entrepreneurship mission. Our first and foremost point is that the technology entrepreneurship mission needs to be announced with an initial allocation of 500 crore to look at all these issues including regulatory simplification and bench marking of this to international practices," he added.

Chandrashekar said the body has also said that for global companies which are operating in multiple geographies they should have the opportunity to consolidate their income globally and operate in a consolidated manner for taxation, which are good for the companies and good for the regulatory authorities as well.

Chandrashekhar said there are a number of issues like transfer pricing, applicability of royalty on software, the manner in which the transaction by units are subjected tax even though they are exempted under SEZ policy.

"....so there are number of different areas which have lead to lot of legal disputes. It has been a mounting set of disputes because of extreme interpretations and we feel all these issues need to be addressed," he said.

For larger companies greater clarity, predictability and transparency in the regulations as well as in the enforcement, and for the smaller companies technology entrepreneurship mission, these are the two critical areas, he said.

He also said "we believe if the mission (India technology entrepreneurship mission) is introduced, then India being a large country has the potential to create 50,000 technology startups, generating an employment of 3 million and contributing USD 100 billion out of the 300 billion turnover that we expect this segment to reach by 2020."

"This is only in terms of the direct turnover in the sector and not the multiplier effect in the other sectors which it would have, which is going to be in order of magnitude larger," Chandrashekar stated.

Nasscom today announced the commencement of the third phase of NASSCOM 10,000 Startups initiative by opening-up of applications from technology startups across the country.

It also announced the launch of the NASSCOM Technology Startup Registry which will act as a repository of India's technology startups in the web, mobile, e-commerce, SAAS, marketplace space and will act as a discovery platform for investors, enterprises, media and government authorities.

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Govt hikes import tariff value on gold, silver

The import tariff value- base price at which customs duty is determined to prevent under-invoicing- is revised on a fortnightly basis, taking into account the volatility in global prices.

The government today hiked the import tariff value on gold and silver to USD 428 per 10 grams and USD 688 per kg, respectively, as global prices rose on safe-haven buying in the wake of geo-political tensions.

During the second fortnight of this month, tariff value on imported gold stood at USD 411 per 10 grams and silver at USD 632 per kg.

The import tariff value- base price at which customs duty is determined to prevent under-invoicing- is revised on a fortnightly basis, taking into account the volatility in global prices.

The hike in tariff value on imported gold and silver has been notified by the Central Board of Excise and Customs, an official statement said.

Global gold prices have firmed up due to the escalating violence in Iraq and Ukraine that has bolstered demand for the precious metal. In London, spot gold prices had hit a two-month high of USD 1,325.90 per ounce last week.

India's gold imports have declined over 74 percent to USD 1.75 billion in April this year due to restrictions imposed by the government on inbound shipments of the precious metal to narrow the current account deficit.

Gold is the second largest import item for India after petroleum. Due to several curbs, the country's total gold and silver imports dropped 40 percent to USD 33.46 billion in 2013-14, against USD 55.79 billion in the previous year.

These curbs include raising the import duty on the metal to 10 percent and also making it mandatory for traders to export 20 percent of the imported gold.

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Petrol price hiked by Rs 1.69/litre, diesel by Rs 0.50

Petrol in Delhi will cost Rs 73.58 per litre, up Rs 2.02 from Rs 71.56 at present. Diesel rates will go up by 56 paise to Rs 57.84 per litre.

Petrol price was today hiked by a steep Rs 1.69 per litre and diesel by 50 paise a litre as the crisis in Iraq spooked international oil and currency markets.

The hike, effective midnight tonight, excludes local sales tax or VAT and the actual increase will be higher, varying from city to city.

Petrol in Delhi will cost Rs 73.58 per litre, up Rs 2.02 from Rs 71.56 at present. Diesel rates will go up by 56 paise to Rs 57.84 per litre.

"Due to geo-political unrest in the Middle East, there has been significant increase in international oil prices during the past two weeks.

"The international prices of gasoline (petrol) have increased by more than USD 4 per barrel, and the rupee-US dollar exchange rate has also deteriorated. The combined impact of both these factors has warranted an increase in petrol prices by Rs 1.69 per litre, excluding state levies," Indian Oil Corp , the nation's largest oil firm, said.

Diesel rates were hiked in continuation with the previous UPA government's January 2013 policy of raising prices in small doses every month to eliminate subsidy.

IOC said despite the 17 hikes since then, oil firms are losing Rs 3.40 a litre on diesel. Losses have increased from Rs 2.80 a litre earlier this month due to firming up of international oil rates and the rupee depreciating against the US dollar.

Besides diesel, the state oil firms lose Rs 33.07 a litre on kerosene sold through the public distribution system (PDS) and Rs 449 per 14.2-kg domestic subsidised LPG (cooking gas) cylinder.

IOC said at current rate the industry (IOC plus Bharat Petroleum and Hindustan Petroleum) are projected to end the fiscal with Rs 107,850 crore of revenue losses.

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Sebi passes consent order in Gemini Communications case

Market regulator Sebi today settled charges of non-compliance of takeover norms against foreign institutional investor Merrill Lynch International after the company paid over Rs 40 lakh in settlement fees.

While passing the consent order, Securities and Exchange Board of India (Sebi) said it has disposed of adjudication proceedings against the company and this order will come into force immediately.

Market regulator had initiated adjudication proceedings against Merrill Lynch in the matter of Gemini Communications to inquire into the alleged violation of Sebi (Substantial Acquisition of Shares and Takeover) Regulations.

It found that Gemini Communications issued euro 1.5 crore Foreign Currency Convertible Bonds (FCCB) to Merrill Lynch in July 2007 with a maturity date on July 18, 2012.

As per the FCCB agreement, Merrill Lynch had a right to convert the bonds into shares during the conversion period effective from August 1, 2007 to June 18, 2012 which would represent 1.97 crore shares (15.59 percent) of the issuer's share capital upon conversion.

It was alleged that Merrill Lynch had made a disclosure of cessation of its right to convert FCCBs of the company to the stock exchanges on October 26, 2012  after a delay of four months, which  should have been made on June 20, 2012 or one  month prior to the maturity date of July 18, 2012.

Also, it was alleged that Merrill Lynch had made disclosure of revival of conversion on November 12, 2012 with a delay of over three months, which should have been disclosed by July 20, 2012.

While the adjudication proceedings were in progress, Merrill Lynch submitted a consent order application to Sebi in August last year. It proposed to pay Rs 40.34 lakh as settlement fee.

Under the consent mechanism, a company can settle an issue with the regulator after paying a penalty, without accepting or rejecting the charges against it.

After that, the consent terms were placed before the High Powered Advisory Committee of Sebi and the committee after deliberation "recommended that the case for settlement on payment of Rs 40.34 lakh towards settlement charges."

Consequently, the company remitted the amount towards the settlement charges.

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Religare Invesco Growth: For those with risk appetite

The fund is suitable for those investors who want an exposure to large as well as mid caps in their portfolio with a time horizon of more than 3 years.

Nature: Equity oriented open ended

Inception: August 2007

Assets under Management: Rs 30 crore at the end of March 2014

Fund Manager: Vetri Subramaniam and Vinay Paharia

Analysis:

• Religare Invesco Growth Fund invests in large and mid cap stocks and at the end of November 2012 the fund had the highest exposure to banks with 19 per cent of its portfolio in this area. Consumer non durables, finance and petroleum products were some of the other leading sectors present in the portfolio. The fund took aggressive position and this was visible in its holdings. ITC was the top individual holding with a 9 per cent share. HDFC Bank, HDFC, L&T, Reliance Industries, ONGC, Infosys and Maruti were some of the other leading stocks in the portfolio. The BSE 100 was the benchmark index for the fund and portfolio turnover was 0.44 times. The fund was an underperformer over a one year period but an outperformer over the three year period ended September 2012.
• Six months later banks continued to be the top sector and now it had a 22 per cent share of the portfolio. Software, oil and finance were some of the other sectors with a significant share. The turnover ratio was steady below 0.5 times. HDFC Bank was the top individual holding while ONGC, HDFC, Reliance Industries, ICICI Bank, L&T, Maruti and Britannia were some of the other top stocks in the portfolio. The fund was an outperformer over the one and three year periods ended March 2013.
• There was a change in the portfolio by November 2013 as banks and software were now having an equal weightage of around 16 per cent each.  Petroleum products and consumer non durables were two other sectors with a significant share. The portfolio turnover ratio remained steady. HDFC Bank was the top holding with an 8 per cent share. Reliance Industries, TCS, HDFC, Britannia, Wipro, L&T, Maruti and ICICI Bank were some of the leading holdings. The fund was an outperformer over the one and three year time periods ended September 2013.
• At the end of May 2014 banks had a slightly higher exposure in the portfolio as compared to software. Auto and Finance were some of the other leading sectors present in the portfolio.  HDFC Bank was the top individual holding with a 10 per cent share in the portfolio. TCS, HDFC, ICICI Bank. L&T, Wipro, Maruti, Hero Motocorp and Britannia were some of the other leading holdings. The funds portfolio turnover ratio had dropped to 0.3 times. The fund was an outperformer over the one and three year time periods ended March 2014.
• The fund is suitable for those investors who are willing to take some additional risk and want an exposure to large as well as mid caps in their portfolio with a time horizon of more than 3 years.

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Top ten rainiest cities in India on Sunday

According to the latest weather update by Skymet Meteorology Division in India, torrential rain occurred in many parts of Sub Himalayan West Bengal and Northeastern states in the last 24 hours. Monsoon performance will continue to be at its best in these states as more heavy rain is likely throughout this week.

Our list of top ten rainiest cities therefore includes cities from these states only. The table clearly shows West Bengal remained the wettest state on Sunday:

Cities State Rainfall (in millimetres) Bagdogra West Bengal 253 Cherrapunji Meghalaya 174 Panagarh West Bengal 121 Darjeeling West Bengal 104 Kalingpong West Bengal 54 Digha West Bengal 53 Behrampur West Bengal 42 Kolkata West Bengal 41 Guwahati Assam 41 Malda West Bengal 39 Photo by trekearth

By: Skymetweather.com

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All info about black money will be made public: Centre

The latest request was made by the Finance Ministry after a Swiss government official recently said that his country was ready to co-operate proactively with India to share details on a "spontaneous" basis about persons and entities suspected to have untaxed assets in Swiss banks.

The Centre will put in public domain all information it gets about black money stashed in foreign banks, Union Home Minister Rajnath Singh said today. "The government will put all the information it gets regarding black money in public domain when the time comes. We will take steps keeping in view the international and national laws," he told reporters.

Singh said constitution of Special Investigation Team on black money immediately after the formation of the government was an appreciable step. India has made a fresh request to Switzerland seeking bank details and names of Indians having unaccounted money in the country's banks. The latest request was made by the Finance Ministry after a Swiss government official recently said that his country was ready to co-operate proactively with India to share details on a "spontaneous" basis about persons and entities suspected to have untaxed assets in Swiss banks.

Singh said as far as National Population Register (NPR) was concerned door-to-door verification will be done in the next three years and identity cards issued. "So far, the process was slow, but we have accelerated it. On the basis of NPR we will identify who is the citizen of the country and who is not," Singh said while replying to a question regarding Bangladeshi migrants.

The BJP leader also attacked the previous UPA government, accusing it of having "derailed" the country's economy completely. "The present government is making all efforts to bring economy back on the track for which measures are being taken," he said, adding that the government will take support of all the states in this. The Union Minister, however, said evaluating any government in initial days is not justified.

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SAIL likely to surrender Rs 35k-cr Sindri revival project

Aspiring to have a 50-million-tonne (MT) steel capacity, Steel Authority of India (SAIL) came out with a plan to set up a new 1.15 MT per annum (MTPA) fertiliser plant, a steel mill of 5.6 MTPA capacity and a 1,000 MW power plant with a total of Rs 35,000 crore investment.

State-owned  SAIL is likely to exit the Rs 35,000-crore revival project of the Sindri fertiliser plant in Jharkhand due to inordinate delay in land acquisition.

The steel behemoth has already conveyed problems it faced in land acquisition to the Fertilizers Ministry, sources said. Aspiring to have a 50-million-tonne (MT) steel capacity, Steel Authority of India (SAIL) came out with a plan to set up a new 1.15 MT per annum (MTPA) fertiliser plant, a steel mill of 5.6 MTPA capacity and a 1,000 MW power plant with a total of Rs 35,000 crore investment.

SAIL's proposal was also cleared by the Cabinet Committee on Economic Affairs (CCEA) in August, 2011 and a new company, SAIL Sindri Projects, was created in November, 2011 for the revival of the unit. The unit stopped production in 2002. "Due to land encroachment issues, SAIL may surrender the project. Funding is also an issue for the PSU which has other commitments to fulfil. SAIL's exit may delay the revival of the project," a senior government official said.

A senior SAIL official said, "We have conveyed to the Fertilizers Ministry that the project has not moved much in the last four years and if the same situation continues, the company board may take a call on surrendering the project. No final decision has been taken yet. We are keeping our fingers crossed".

Getting the encroached land cleared at the Sindri plant is a herculean task. A large part out of total 6,652.6 acres is either encroached, leased/transferred, illegally occupied or falls on the river bed. While factory and staff quarters are spread over 1,200 acres each, there are illegal occupants in about 3,000 staff quarters out of the 6,542 quarters in the plant premises. Moreover, nearly 450 acres have permanently been given to BIT Sindri and over 200 acres have been leased to ACC cement factory, while over 450 acres have been leased to the state government.

Additionally, nearly 470 acres are part of Gowai dam, over 550 acres of land are on the Damodar river bed and nearly 700 acres land has been leased to central PSUs. There are 26 villages on the factory land as well and displacing them is a big task, sources said. On the other hand, SAIL needs about 2,500 acres for the steel plant, about 1,000 acres for the fertiliser plant and 500 acres for the power plant. SAIL wanted to develop the three projects through special purpose vehicles. It had already identified National Fertilizers Ltd as partner for the fertiliser plant and was mulling to rope in others for steel and power ventures.

SAIL stock price

On June 23, 2014, Steel Authority of India closed at Rs 93.10, down Rs 0.8, or 0.85 percent. The 52-week high of the share was Rs 112.90 and the 52-week low was Rs 37.65.

The company's trailing 12-month (TTM) EPS was at Rs 6.33 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 14.71. The latest book value of the company is Rs 105.66 per share. At current value, the price-to-book value of the company is 0.88.

23.07 | 0 komentar | Read More

Top ten hottest places in India

According to the latest weather update by Skymet Meteorology Division in India, Palam in Delhi was the hottest place in India on Sunday with a maximum of 41.8°C. Lack of rain in Rajasthan also pushed up the day temperature in the state. Rentachintala in Guntur district of Andhra Pradesh was also hot 41.2°C. Allahabad and Lucknow in Uttar Pradesh are the hottest places in the state.

Places State Maximum temperature on Sunday Forecast trend for next 24 hours Palam Delhi 41.8°C Drop Kota Rajasthan 41.6°C Rise

Jaisalmer Rajasthan 41.5°C Same Rentachintala Andhra Pradesh 41.2°C Rise Lucknow Uttar Pradesh 41.1°C Drop Gwalior Madhya Pradesh 41.1°C Drop Agra Uttar Pradesh 40.7°C Drop Allahabad Uttar Pradesh 40.5°C Same Ahmedabad Gujarat 40.2°C Same Hisar Haryana 40°C Drop According to the latest forecast, places in Rajasthan may sustain the temperatures while there would be a drop in maximums in Uttar Pradesh. Day temperature in Palam will also drop in the next 24 hours.

Photograph by Vinay070

By: Skymetweather.com

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'Textile exports set to touch USD 50 bn mark this fiscal'

Textile exports are set to touch USD 50-billion mark in the current fiscal, Union Textiles Minister Santosh Kumar Gangwar said today.

"With 40 billion dollars in textile exports, the country has moved up to the second position from the fourth position last year, and we are hopeful of achieving USD 50 billion this year," Gangwar told reporters after inaugurating the 59th National Garment Fair organised by the Clothing Manufacturers Association Of India (CMAI) here.

Textiles have tremendous potential, and the government will provide full support to improve our exports, he said, adding that the industry is also expected to generate a large number of employment opportunities. "After the agriculture sector, the textiles sector has a huge potential of providing a large number of jobs to the vulnerable section of the society," Gangwar said. Raising a pitch for reforms in the labour law, the Minister said he was concerned about the large number of unorganised labour in the textile industry.

"The textile ministry is keen to set up 25-30 textile parks and a couple of mega clusters for the development of the industry," Gangwar said. CMAI President Rahul Mehta said that the three-day fair is expected to bring in a business of around Rs 500 crore, besides, many trade inquires are also expected to be generated, which would culminate into further business in near future.

"This B2B fair has 697 stalls displaying over 737 brands. Approximately 40,000 retailers from all over India are expected to visit here," he said. Mehta said that the domestic garment industry had been somewhat sluggish for the last couple of months. "However, with the government firmly in place and economic sentiments turning positive, I anticipate a return to growth rate of 12 to 15 percent in the coming months.

"Exports are seeing a buoyant phase after a long time and this should continue. I am expecting a good period of growth in the next 3 to 5 years," he said. According to Mehta, the total size of Indian apparel industry is estimated to be around Rs 2,00,000 crore and is likely to double within the next five years. "...Out of this, un-stitched garments like dhotis and sarees constitute Rs 50,000 crore. The size of the organised retail sector is around Rs 40,000 crore while the remaining Rs 1,10,000 crore is the size of un-organised sector," he said.

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GST implementation will help narrow fiscal deficit: CRISIL

Implementation of goods and services (GST) tax could help government raise tax revenues and reduce fiscal deficit, which has been around 4.5 percent in the last three years, a CRISIL report said.

Fiscal deficit, the gap between government's expenditure and revenue, stood at 4.5 percent in FY14, lower than 4.9 percent in FY13.

"To sustainably reduce fiscal deficit from current levels, the government will have to rely on raising revenues as a share of GDP," the report said. "The government has to implement structural tax reforms such as the goods and services tax (GST), which will lift the government's tax revenues, lower the cost of doing business and boost growth," it said.

By eliminating the cascading effect of multiple central and state taxes, GST would reduce the cost of doing business and increase profitability, which in turn, would attract investments and ultimately help GDP growth, the report said.

However, the agency felt that implementation of GST during this financial year is unlikely and therefore forecasts fiscal deficit to stay high at 4.3 percent of the GDP. The government would have to accommodate large rollover of subsidies from the last fiscal which is estimated at Rs 650 billion or 25 percent of the recognised subsidies in FY14, as well as raise capital expenditure or spend productively to bolster growth, it added.

Also read:  12 things to watch out in Jaitley's Budget speech

The agency said that a below normal monsoon could lead to lower GDP growth of 5.5 percent in FY15 than its base case estimate of 6 percent, but it would not change its FY15 fiscal deficit forecast.

CRISIL said that during the next financial year, GST implementation would facilitate a much-needed correction in the fiscal deficit. But despite its advantages, it does not foresee a full-scale implementation of the GST in its current form. "We believe, the most likely outcome is a partial rollout of the GST -- one that excludes petroleum goods -- given its large impact on state revenues," the report said.

Even so, fiscal deficit is forecast to correct to 3.3 percent of the GDP by 2017. On the downside, a failure to implement GST is expected to crank up the fiscal deficit to 4-4.2 percent in 2016 and 2017, the report said. CRISIL said that fiscal consolidation is critical to lower the country's debt-to-GDP ratio.

The government's internal debt has stabilised at 48 percent of the GDP during the last two years after declining steadily since fiscal 2005, when it peaked at 60 percent of the GDP.

The declining trend of the Centre's debt ratio after fiscal 2009 has been driven more by high inflation rather than lower fiscal deficit or faster GDP growth. "With inflation expected to moderate and upside to growth limited, a strong commitment to fiscal consolidation is an imperative to lower the country's debt-to-GDP ratio," the report said.

With a partial GST implementation, CRISIL forecasts debt-to-GDP ratio (internal liabilities as a percent of GDP) to decline to 45 percent by FY17.

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Airtel likely to be world's third largest telco soon: Kohli

At the end of April, Airtel had over 297 million customers across 20 countries. The latest global ranking and subscriber numbers were not immediately available.

Bharti Airtel  Monday said it is likely to become the world's third largest telecom operator soon, after China Mobile and UK-based Vodafone, as it continues with a strong subscriber growth.

"We are very close. It is a matter of one or two million (subscribers). Maybe, by next few weeks or months, we should be there," Bharti Enterprises Managing Director Manoj Kohli said on the sidelines of an IMI event here.

At the end of April, Airtel had over 297 million customers across 20 countries. The latest global ranking and subscriber numbers were not immediately available.

According to analyst firm Wireless Intelligence, the telecom major became fourth largest operator in the world with over 250 million subscribers in Q2 of 2012.

Bharti Airtel had become the 5th largest mobile operator in the world following its acquisition of Zain Group's mobile operations across 15 African nations in June 2010.

Kohli said Airtel has invested Rs 1.70 lakh crore so far and has annual revenues of over Rs 85,000 crore.

He said that in 2002, Airtel innovated the concept of outsourcing which later became a norm for telecom operators across the world.

"We decided in 2002 to concentrate on things that we know and outsource the work, which we don't know to our partners," Kohli said while addressing the students of IMI.

He said Airtel outsourced the network part to Ericsson and Nokia and IT services to IBM, which became a very successful model.

Bharti Airtel stock price

On June 16, 2014, Bharti Airtel closed at Rs 333.25, up Rs 0.25, or 0.08 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 277.10.

The company's trailing 12-month (TTM) EPS was at Rs 16.51 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 20.18. The latest book value of the company is Rs 152.21 per share. At current value, the price-to-book value of the company is 2.19.

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ICVL team in Mozambique to tap coal assets for acquisition

ICVL had earlier evinced interest to acquire Riversdale Mining's coal mines in Mozambique owned by Rio Tinto.

A senior level delegation from the International Coal Ventures (ICVL) is currently touring Mozambique to assess some of the coal assets which are currently under its radar for acquisition.

ICVL has been set up as a Joint Venture Company with the SAIL , CIL , RINL,  NMDC and  NTPC as promoter companies, for securing metallurgical coal and thermal coal assets in overseas territories. NTPC later decided to opt out of the consortium as it was seeking thermal coal blocks, while other members were keen on coking coal.

"CMDs of SAIL, RINL and NMDC among others are currently in Mozambique to examine some of the assets which are under consideration for acquisition either fully or partly," a senior officer with the Ministry of Steel told PTI.

The team may also examine some of the assets in South Africa and other countries, they added.

ICVL had earlier evinced interest to acquire Riversdale Mining's coal mines in Mozambique owned by Rio Tinto.

The Anglo-Australian mining giant Rio Tinto took over Riversdale Mining in 2011 for USD 4 billion by buying out Tata Steel 's over 24 percent stake and Brazilian steelmaker Companhia Siderurgica Nacional's (CSN) entire 19.35 percent holding in Riversdale.

ICVL was also in the race then and even hired Citigroup to assess the potential of a counter bid. However, it finally refrained from bidding for Riversdale, which has four coal reserves estimated to a total of 1.7 billion tones in Mozambique.

According to a report by the Ministry of Steel though a number of companies from the private sector as well as the public sector, including ICVL, are in process of identifying and acquiring coking coal assets abroad, the efforts need to be more focused and required to be supported by the government through diplomatic dialogues.

SAIL stock price

On June 16, 2014, Steel Authority of India closed at Rs 98.35, up Rs 1.30, or 1.34 percent. The 52-week high of the share was Rs 112.90 and the 52-week low was Rs 37.65.

The company's trailing 12-month (TTM) EPS was at Rs 6.33 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 15.54. The latest book value of the company is Rs 105.66 per share. At current value, the price-to-book value of the company is 0.93.

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Vodafone doubles Net rates for 2G, 3G subscribers

The new rates for pay-as-you-go (PAYG) pre-paid and post paid users are 4 paisa per 10 KB, as compared to 2 paisa per 10 KB charged earlier. The company had in November last year reduced the rates by up to 80 per cent to 2 paisa per 10 KB, from 10 paisa per 10 KB.

Vodafone India has doubled its mobile Internet rates for 2G and 3G customers across the country, and it is being implemented in a phased manner.

The new rates for pay-as-you-go (PAYG) pre-paid and post paid users are 4 paisa per 10 KB, as compared to 2 paisa per 10 KB charged earlier. The company had in November last year reduced the rates by up to 80 per cent to 2 paisa per 10 KB, from 10 paisa per 10 KB.

When contacted, a Vodafone spokesperson said: "Vodafone following its price change in November 2013 has revised its mobile Internet charges for Pay as Go (PAYG) users. "At 4p/10KB, Vodafone still offers most attractive and lowest standard mobile Internet charges in the industry for pre-paid and post-paid customers. This is applicable to both 2G as well as 3G customers."

The spokesperson added that this change is applicable across all circles but is being rolled out in a phased manner. The company had said in November last year that as part of its strategy to "democratise" data, Vodafone was educating current and potential users about how Internet can add significant value to them.

As per FY'14, Vodafone India logged in 125 percent year-on-year increase in data traffic. The company had 52 million data customers in the country, with 7 million of them 3G data users.

23.07 | 0 komentar | Read More

Varma appointed as an Onshore Director at ONGC

"Ministry of Petroleum & Natural Gas, Government of India vide letter dated June 19, 2014, has appointed Ashok Varma, as Director (Onshore), ONGC," the company said in a filing to the stock exchange.

In first oil PSU appointment by the new NDA government, Ashok Varma has been appointed Director (Onshore) of Oil and Natural Gas Corp ( ONGC ).

Prior to his joining as Director (Onshore) on June 19, he was heading ONGC's Eastern Offshore Asset at Kakinada, where he was instrumental in putting the Eastern Offshore Asset on production.

"Ministry of Petroleum & Natural Gas, Government of India vide letter dated June 19, 2014, has appointed Ashok Varma, as Director (Onshore), ONGC," the company said in a filing to the stock exchange.

Earlier, Varma steered Imperial Energy in Russia, a subsidiary of the ONGC Videsh Ltd (OVL), as the Chief Executive Officer and played an important role in the Sakhalin project in Far East Russia.

Also read:  Ruia board nods to de-list Essar Oil from Indian bourses

The post of Director (Onshore) had been lying vacant since October 2012 when A K Hazarika super-annuated. Government headhunters PESB had K Sataynarayana, Group General Manager of ONGC, to fill the vacancy but he cound not get clearance from anti-corruption watchdog CVC.

The Ministry then forwarded the name of Varma for clearances from anti-corruption agencies. After his name was cleared, it was forwarded to the Appointments Commitee of the Cabinet headed by Prime Minister.

New Oil Minister Dharmendra Pradhan concurred with the appointment and ACC cleared Varma for the ONGC job. Varma is the first board level appointment cleared by the new government in a bluechip oil PSU.

Appointment of B Ashok as Chairman Indian Oil Corp (IOC) is pending with Pradhan even as the nation's largest firm is being run with ad-hoc charge to one of the directors after R S Butola superannuated on May 31.

A graduate in Petroleum Engineering from Indian School of Mines, Dhanbad, Varma joined ONGC in 1977 as Assistant Engineer at Assam.

He was posted to OVL, the overseas investment arm of ONGC, between 1996 and 2006 and was instrumental in acqusition of 20 percent participating interest in Sakhalin-1 project in Russia in 2001, an ONGC statement said.

Varma headed ONGC's Assam operations as Asset Manager from 2006 to 2009.

ONGC stock price

On June 16, 2014, Oil and Natural Gas Corporation closed at Rs 427.15, up Rs 4.70, or 1.11 percent. The 52-week high of the share was Rs 472.00 and the 52-week low was Rs 234.40.

The company's trailing 12-month (TTM) EPS was at Rs 25.83 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 16.54. The latest book value of the company is Rs 171.29 per share. At current value, the price-to-book value of the company is 2.49.

23.07 | 0 komentar | Read More

RBI to banks, FIs: Give information to SIT on black money

The SIT under the chairmanship of former Justice MB Shah was constituted by the Narendra Modi-led government on its first day in office, in pursuance of a July 2011 Supreme Court.

The Reserve Bank of India today directed all banks and financial institutions to provide information and documents sought by the Special Investigation Team (SIT) set up to unearth black money.

"All the banks and financial institutions (FIs) are advised to ensure that information/documents required by the SIT are made available as and when required," the Reserve Bank said in a notification. The SIT under the chairmanship of former Justice MB Shah was constituted by the Narendra Modi-led government on its first day in office, in pursuance of a July 2011 Supreme Court.

The panel has jurisdiction in cases where investigations have commenced or are waiting to be initiated or have been Earlier today, Finance Minister Arun Jaitley said the government will write today to Switzerland seeking details of Indians with unaccounted money in Swiss banks. The minister's remarks came a day after a Swiss government official told PTI that the names of certain persons and entities who have come under the scanner of Swiss authorities is being shared with India.

Jaitley, however, said his ministry is yet to receive official communication in this regard. According to the latest data published by Swiss National Bank, the country's central bank, Indian money in various Swiss banks rose 43 per cent during 2013 to almost Rs 14,000 crore, including money held directly by Indian clients and those through fiduciaries or wealth managers. Switzerland today said it is looking forward to working together with the new government of India in its fight against tax evasion, according to a statement issued through the Swiss Embassy here.

23.07 | 0 komentar | Read More

DoD meets SteelMin, merchant bankers on SAIL disinvestment

The sale of 5 percent stake or about 20.65 crore shares at the current market price would fetch the exchequer about Rs 1,900 crore.

Kick starting the process of 5 percent stake sale in Steel Authority of India ( SAIL ), the Disinvestment Department today held meeting with merchant bankers and steel ministry officials to move ahead with it.

"It was a preliminary meeting to discuss the process. No timeline has been decided as yet," sources said. The sale of 5 percent stake or about 20.65 crore shares at the current market price would fetch the exchequer about Rs 1,900 crore.

SAIL shares today closed at Rs 93.10, down 0.85 percent on the BSE.

Government holds 80 percent stake in SAIL. A five percent dilution would help the government meet the minimum 25 percent public shareholding norm of market regulator Sebi. In the interim Budget, the government budgeted to raise Rs 36,925 crore through stake sale in PSUs in the current fiscal. SAIL, with a market capitalisation of over Rs 38,450 crore, would be among the big-ticket divestments.

The Cabinet under the previous United Progressive Alliance (UPA) government had approved divestment of 10.82 per cent stake in SAIL in 2012-13 fiscal. The government had since appointed merchant bankers for the share sale, which include SBI  Caps, Kotak Mahindra  and Deutsche Bank.

However, later it trimmed the size of stake sale to 5.82 percent, thereby raising over Rs 1,500 crore in March 2013. The Finance Ministry has already asked the Department of Disinvestment (DoD) to complete the groundwork for stake sales in state-owned companies soon after the Budget to take advantage of the bull phase in the stock market.

The benchmark 30-share BSE Sensex has gained 12 percent so far in this financial year.

The DoD has already identified companies for stake sale which include 10 percent in Coal India , 11.6 percent stake in NHPC  and 5 percent each in REC  and PFC Besides, it will also go ahead with the long-pending sale of its residual stake in Hindustan Zinc  and Balco .

SAIL stock price

On June 16, 2014, Steel Authority of India closed at Rs 98.35, up Rs 1.30, or 1.34 percent. The 52-week high of the share was Rs 112.90 and the 52-week low was Rs 37.65.

The company's trailing 12-month (TTM) EPS was at Rs 6.33 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 15.54. The latest book value of the company is Rs 105.66 per share. At current value, the price-to-book value of the company is 0.93.

23.07 | 0 komentar | Read More

Strong, prosperous India in interest of neighbours: Modi

Prime Minister Narendra Modi today concluded his "extremely successful" first foreign visit since assuming office with a message to Bhutan and other neighbouring countries that a strong and prosperous India was in their interest.

The upshot of the two-day visit by India's leader to this tiny kingdom was a decision by the two countries to scale up their ties that cover security interests and cooperation in a wide variety of fields.

Bhutan promised not to allow its territory to be used against India, an assurance that comes against the backdrop of militants from northeast taking shelter there.

The two countries agreed to continue with their close coordination and cooperation on issues relating to their national interests and not allow each other's territory to be used for interests inimical to the other, said a joint statement issued at the end of the visit.

Modi later tweeted that the trip will remain etched in his memory. "This Bhutan trip will remain etched in my memory; It was a very satisfying & productive visit," he said in a tweet on his return to Delhi.

Earlier, addressing the joint session of the Bhutanese National Assembly, Modi said a strong Bhutan will benefit India like a strong and prosperous India will be beneficial for the countries of the region, especially the SAARC members.

"India's prosperity is important as then it can help small countries and perform its duty of a good neighbour. But if India is weak and struggling with its own problems, then
how can it help others," he said.

External Affairs Minister Sushma Swaraj, who accompanied Modi on the visit, described the visit as "extremely successful" and that the Indian side was "extremely satisfied" with it.

Before winding up the visit, Modi gave an assurance that a change of government in Delhi will not affect their ties and past commitments will be fulfilled.

In a series of other tweets after returning home, Modi said "Addressed Bhutan's Parliament. When Bhutan moves ahead, India too feels like taking steps ahead to support Bhutan."

He also wrote, "India plans to create an e-library network in Bhutan & we would double scholarships being given to students of Bhutan."

"Was happy to know about the large allocation for education in Bhutan's last Budget. It shows commitment to well-being of future generations!," was yet another of Modi's tweet.

"In a short span of time, Bhutan has developed immense faith in democratic institutions. This is wonderful for Bhutan's development journey," he noted on Twitter.

23.08 | 0 komentar | Read More

HSBC Making It Big: Here's how Medanta was built

Watch how Medanta the Medicity was built.

Watch how Medanta the Medicity was built.

23.08 | 0 komentar | Read More

Here's how we can bring India back on track

India Back on Track is based on a book published by the Carnegie Endowment which has essays written by leading Indian thinkers on how the new government can reinvigourate the country's economic and foreign policies.

India Back on Track is based on a book published by the Carnegie Endowment which has essays written by leading Indian thinkers on how the new government can reinvigourate the country's economic and foreign policies.

23.08 | 0 komentar | Read More

Watch Bangalore Finals of Tata Crucible Campus Quiz 2014

Watch Bangalore Finals of Tata Crucible Campus Quiz 2014.

Watch Bangalore Finals of Tata Crucible Campus Quiz 2014.

23.08 | 0 komentar | Read More

AirAsia India adds Kochi to its network

The airline will start daily flights from Bangalore to Kochi and vice versa, effective July 20, AirAsia said, offering limited promotional seats for all-inclusive-fare Rs 500 from Bangalore to Kochi and vice versa.

Four days after breaking into the domestic aviation space, the country's fourth budget carrier AirAsia India today announced the addition of Kochi to its existing network from July 20.

The airline will start daily flights from Bangalore to Kochi and vice versa, effective July 20, AirAsia said, offering limited promotional seats for all-inclusive-fare Rs 500 from Bangalore to Kochi and vice versa.

Guests will be able to start their booking on www.airasia.com at 21:30 IST from June 16 to 22 for the travel period from July 20 to October 25, the release added.  

Also read: Spicejet launches another round of low fares for flyers

Breaking into Indian domestic aviation space, AirAsia India on Thursday had launched its operation with a flight from here to Goa in a foray that is expected to intensify the fare war among the no-frill airlines in the loss-hit sector.
    
AirAsia India, the Indian arm of Asia's biggest budget carrier Malaysia-based AirAsia Bhd, thus became the fourth low-cost carrier in the country after IndiGo,  SpiceJet and GoAir.

"We are excited to announce our third destination Kochi, within a few days of our launch. We are very encouraged by the outstanding reception to our product and service," AirAsia India CEO Mittu Chandilya said.

"We have done a complete analysis on our third destination and we are confident we will be able to reach out to more first time fliers. We will stand by our promise todeliver a quality product to our guests that promises value for their money," he added.

Malaysia-based AirAsia currently operates international routes into Bangalore, Chennai, Kochi, Kolkata and Trichy. AirAsia, one of the most successful low-cost carriers in the world, got the aviation ministry's flying permit on May 8, the last of the many approvals needed for the airline to take off after a nine-month long wait marked by legal hurdles.

AirAsia India is a 49:30:21 joint venture among Malaysian carrier AirAsia, Tata Sons and Arun Bhatia's Telestra Tradeplace. AirAsia had announced its joint venture with Tata Sons and Telestra Tradeplace in February 2013, four months after the then UPA government allowed up to 49 per cent FDI in domestic airlines by foreign carriers.

SpiceJet stock price

On June 16, 2014, SpiceJet closed at Rs 18.20, down Rs 0.5, or 2.67 percent. The 52-week high of the share was Rs 30.35 and the 52-week low was Rs 12.50.

The latest book value of the company is Rs -22.24 per share. At current value, the price-to-book value of the company was -0.82.

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RBI to sell govt securities worth Rs 15,000 crore on Friday

The Reserve Bank will sell dated government securities worth Rs 15,000 crore in four tranches on Friday, RBI said.

Dated government securities are long term securities carrying a fixed or floating coupon or interest rate paid on the face value. It is payable at fixed time periods, usually half-yearly. The tenor of dated securities can be up to 30 years.

In a price based auction to be held on June 20, RBI will sell 8.35 percent government stock 2022 for Rs 3,000 crore, 8.60 percent government stock 2028 for Rs 7,000 crore, 9.20 percent government stock 2030 for Rs 3,000 crore and 9.23 percent government stock 2043 for Rs 2,000 crore.

"Up to 5 percent of the notified amount of the sale of the stocks will be allotted to eligible individuals and institutions as per the scheme for non-competitive bidding facility in the auction of government securities," RBI said.

Also read:  RBI's LCR guidelines credit positive for banks: Moody's

RBI said both the competitive and non-competitive bids for the auction should be submitted in electronic format on on the RBI's Core Banking Solution (E-Kuber) system on June 20, 2014.

The non-competitive bids should be submitted between 10.30 AM and 11.30 AM and the competitive bids should be submitted between 10.30 AM and 12 noon, it said.

The result of the auctions will be announced on the same day and payment by successful bidders will be on June 23, 2014, it added further.

The stocks will be eligible for "When Issued" trading for a period commencing from June 17-20, 2014 in accordance with the guidelines on "When Issued transactions in Central Government Securities" issued by RBI, it added.

Securities trade on a when issued basis when they have been announced, but not yet issued. The transaction is settled only after the security has been issued.

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IRDA allows insurers to hedge interest rate risks

Insurance Regulatory and Development Authority (Irda) today allowed insurance companies to hedge their interest risks by participating in interest rate derivatives of a longer tenure.

As per existent norms, insurers are permitted to enter Forward Rate Agreements (FRAs), Interest Rate Swaps (IRS) and Exchange Traded Interest Rate Futures (IRF) with a maximum tenure of one year.

However, as per the final guidelines insurers would be able participate in interest rate derivatives over one year.

However, there is no upper cap for maturities of such instruments.

Participation in interest rate derivatives would help such companies to protect their return due to fluctuation in the interest rates and protect financial health.

Commenting on the guidelines, ICICI Prudential Executive Director Sandeep Batra said "It is a welcome move. It will help insurance companies to hedge their long-term interest rate risks."

Some of the products of insurance companies provide guranteed return. However, due to fluctuation in the interest rates, returns can come down. This can put pressure on the finances companies.

As per the guidelines, the objective of any use of the listed derivatives is that they must be used for hedging purposes only to reduce the interest rate risk.

"Companies enter into these agreements to hedge the interest rate risk on investments and the forecast transactions. Hedging interest rate risk of investment in fixed income securities would cover fixed income derivative positions that are designed to offset the potential losses from existing fixed income investments of them," it said.

Putting conditions, the guidelines said, a participant's dealings in interest rate derivatives would not exceed an outstanding notional principal amount equivalent to 100 percent of the book value of the fixed income investments of the insurance company under the policyholders fund, it said.

This would exclude ULIP funds in case of life insurers and the shareholders funds taken together, it added.

The mark-to market gain or loss arising out of the effective hedge would be borne by the respective fund only.

Exposure limits pertaining to single issuer, group and industry will be applicable for the exposure through FRA and IRS contracts, it said.

No contracts shall be entered with promoter group entities either directly or indirectly, it added.

"The guidelines are fairly comprehensive and there is a fair amount of checks and balances so that insurance companies do run into the risk of overexposures of such instruments," Batra said.

In the guidelines, ICICI Prudential Executive Director Sandeep Batra said "It is a welcome move. It will help insurance companies to hedge their long-term interest rate risks."

Some of the products of insurance companies provide guranteed return. However, due to fluctuation in the interest rates, returns can come down. This can put pressure on the finances companies.

As per the guidelines, the objective of any use of the listed derivatives is that they must be used for hedging purposes only to reduce the interest rate risk.

"Companies enter into these agreements to hedge the interest rate risk on investments and the forecast transactions. Hedging interest rate risk of investment in fixed income securities would cover fixed income derivative positions that are designed to offset the potential losses from existing fixed income investments of them," it said.

Putting conditions, the guidelines said, a participant's dealings in interest rate derivatives would not exceed an outstanding notional principal amount equivalent to 100 percent of the book value of the fixed income investments of the insurance company under the policyholders fund, it said.

This would exclude ULIP funds in case of life insurers and the shareholders funds taken together, it added.

The mark-to market gain or loss arising out of the effective hedge would be borne by the respective fund only.

Exposure limits pertaining to single issuer, group and industry will be applicable for the exposure through FRA and IRS contracts, it said.

No contracts shall be entered with promoter group entities either directly or indirectly, it added.

"The guidelines are fairly comprehensive and there is a fair amount of checks and balances so that insurance companies do run into the risk of overexposures of such instruments," Batra said.

23.08 | 0 komentar | Read More

Weather alerts issued for India on 16th June

Weather alert for Chhattisgarh issued at 15.55 hrs

Light to moderate rain and thundershowers are likely at few places in Bastar, Kanker, Narayanpur, Rajnandgaon and Surguja districts with strong winds ranging between 40 kmph and 80 kmph during the next 2 to 6 hours.

Weather alert for Rajasthan issued at 15.40 hrs

In the next 2 to 6 hours, light to moderate rain and thundershowers are likely at few places in Alwar, Baran, Bharatpur, Dausa, Dholpur, Karauli, Sawai Madhopur and Sikar. Rain will be accompanied by strong winds ranging between 40 kmph and 80 kmph.

Weather alert for Uttar Pradesh issued at 15.40 hrs

Light dust storm/thundershowers are likely at some places in Ambedkar Nagar, Azamgarh, Deoria, Gorakhpur and Mau districts with strong winds ranging between 40 kmph and 70 kmph during the next 2 to 4 hours.

Weather alert for West Bengal issued at 15.25 hrs

Short spells of rain and thundershowers are likely at few places in Bankura, Bardhaman, Birbhum, East Midnapore, Kolkata, Murshidabad, North 24 Parganas, Purulia and West Midnapore districts with strong winds ranging between 40 kmph and 70 kmph during the next 2 to 6 hours.

Weather alert for Odisha issued at 15.20 hrs

Short spells of rain and thundershowers are likely at few places in Balasore, Bhadrak, Kendujhar, Koraput, Malkangiri, Mayurbhanj and Rayagada districts with strong winds ranging between 40 kmph and 70 kmph during the next 2 to 6 hours.

By: Skymetweather.com

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Sebi asks DDPs to share FPI info with banks

Market regulator Sebi today asked designated depository participants to share information about foreign portfolio investors with banks, as part of efforts to harmonise KYC (Know Your Client) norms.

KYC documents of Foreign Portfolio Investors (FPIs) can be shared only after getting authorisation from them.

The latest move is part of Sebi's efforts to harmonise KYC norms with that of the Reserve Bank of India (RBI).

Sebi-approved depository participants are responsible for granting registration to FPIs under the new framework.

"DDPs (Designated Depository Participants) are advised to share the relevant KYC documents with the banks concerned based on written authorisation from the FPIs," the Securities and Exchange Board of India (Sebi) said in a circular.

Accordingly, a set of hard copies of the KYC documents furnished by the FPIs to DDPs may be transferred to the concerned bank through their authorised representative.

While transferring such documents, DDPs will have to certify that the documents have been duly verified with the original. In this regard, a proper record of transfer of documents, both at the level of the DDP as well as at the bank, under signatures of the officials of the transferor and transferee entities, may be kept.

Under the new norms, FPIs have been divided into three categories as per their risk profile and the KYC (Know Your Client) requirements and other registration procedures would be much simpler for FPIs compared to current practices.

The Category I FPIs, which would be the lowest risk entities, would include foreign governments and government related foreign investors.

Category II FPIs would include appropriately regulated broad based funds, appropriately regulated entities, broad-based funds whose investment manager is appropriately regulated, university funds,university related endowments, pension funds.

The Category III FPIs would include all others not eligible under the first two categories.

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Major events in my life linked to milestones at Infy: Kris

In a letter to over 1.6 lakh employees, Gopalakrishnan or Kris as he is fondly known, reflected upon his early days at the company and his family life talking about his wedding, the birth of his daughter and the loss of his parents.

Reminiscing time spent at the firm he co-created with six other friends in 1981, Infosys non-executive chairman S Gopalakrishnan said many major events in his life are linked to major milestones of Infosys .

In a letter to over 1.6 lakh employees, Gopalakrishnan or Kris as he is fondly known, reflected upon his early days at the company and his family life talking about his wedding, the birth of his daughter and the loss of his parents.

"Many major events in my life are linked to major milestones of Infosys. I was married in 1981 when Infosys was founded. I lost my father in 1992 just before our IPO in India in 1993. My daughter was born in 1999 when Infosys did its listing on NASDAQ. I lost my mother in 2007 just one month after I became the CEO. In some sense, both these stories are inseparable for me," he said.

Gopalakrishnan, along with NR Narayana Murthy and five others, founded Infosys in 1981.

After handling various roles at the firm, Gopalakrishnan was appointed CEO and MD in July 2007 and then Executive Co-Chairman in August 2011 and then Executive Vice Chairman in May 2013.

The former CII President stepped down from the position of Executive Vice Chairman from Infosys on June 14 and will continue as Non-Executive Vice Chairman till October 10 to ensure a smooth transition at the Bangalore-based firm.

The USD 8.3 billion company last week brought in former SAP board member Vishal Sikka to head the firm, making him the first non-founder and external CEO and MD .

Describing Sikka as a "visionary and respected industry leader", Gopalakrishnan expressed confidence that he will propel Infosys to new heights.

"This (change) would give the new CEO and the leadership team the opportunity to frame the strategy and plans for FY'16 and beyond. I am confident that they would lead Infosys into an even better future," he added.

Highlighting the changes that the now USD 118 billion IT-BPO industry has seen over the years, he said Infosys has been at the forefront as the world moved from mainframes to mobiles.

"We have grown from 7 people to over 160,000 people. Along the way, we saw the computer industry go from mainframe to mobile and internet technologies. We have helped our clients leverage information technologies better and more efficiently. We have continuously innovated our processes, models and our solutions," Gopalakrishnan said.

He further said, "Today, Infosys is stronger and better than ever to serve our clients and provide the best workplace for our employees. I am proud of our achievements and the part that I have played in building this great institution."

Infosys stock price

On June 16, 2014, Infosys closed at Rs 3242.20, up Rs 60.55, or 1.90 percent. The 52-week high of the share was Rs 3847.20 and the 52-week low was Rs 2343.00.

The company's trailing 12-month (TTM) EPS was at Rs 177.52 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 18.26. The latest book value of the company is Rs 733.03 per share. At current value, the price-to-book value of the company is 4.42.

23.08 | 0 komentar | Read More

Ashok Leyland reports 8.73% dip in sales in May

Sales of medium and heavy commercial vehicles in May 2014 marginally dipped to 4,884 units as against 4,932 units sold during the corresponding month of the previous year.

Hinduja Group company  Ashok Leyland has reported a 8.73 percent decline in total sales in May 2014, selling 6,632 units. The city-based commercial vehicle maker had sold 7,267 units during the same month of the previous year, a company statement said.

For the period April-May 2014, total sales declined by 15 percent to 12,529 units from 14,754 units sold during the same period of the previous year. Sales of medium and heavy commercial vehicles in May 2014 marginally dipped to 4,884 units as against 4,932 units sold during the corresponding month of the previous year.

Sales of Medium and Heavy Commercial vehicles in April-May 2014 declined to 9,407 units from 10,183 units sold during the same period of the previous year, the company said. However, sales of Light Commercial Vehicles witnessed a 25.1 percent decline in May 2014 to 1,748 units from 2,335 units sold during the same month of previous year. For the period April-May 2014, sales of LCVs slipped to 31.6 percent to 3,122 units from 4,571 units sold during the corresponding period of the previous year, the statement added.

Also Read: Cheer for Maruti, TVS, Hero in May; exports lift Bajaj nos

Ashok Leyland stock price

On June 02, 2014, Ashok Leyland closed at Rs 32.85, up Rs 0.55, or 1.70 percent. The 52-week high of the share was Rs 35.75 and the 52-week low was Rs 11.82.

The company's trailing 12-month (TTM) EPS was at Rs 0.11 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 298.64. The latest book value of the company is Rs 16.85 per share. At current value, the price-to-book value of the company is 1.95.

23.07 | 0 komentar | Read More

Rs 1,000 minimum monthly pension to be a reality this week

As per a proposal, pensioners were to get the benefit with effect from April 1 this year. The government will have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000, starting 2014-15.

A minimum pension of Rs 1,000 a month under a scheme run by retirement fund body EPFO will be a reality this week, a development that will benefit 28 lakh pensioners, who get less than this amount at present.

As per a proposal, pensioners were to get the benefit with effect from April 1 this year. The government will have to provide an additional amount of around Rs 1,217 crore to ensure a minimum pension of Rs 1,000, starting 2014-15. "The previous government's decision to ensure a minimum monthly pension of Rs 1,000 to subscribers of Employees' Pension Scheme-95 (EPS-95) will be implemented this week as elections got over now.  The Labour Ministry will notify it some time this week," an official source told PTI.

Also Read: PFRDA selects 8 cos to manage pension funds of pvt sector

According to the source, the Ministry will also notify the decision of the EPFO trustees to enhance the wage ceiling for covering organised sector workers under EPFO ambit to Rs 15,000 per month from existing Rs 6,500. Another decision to reduce administrative charges paid by employers to EPFO will also be notified.

The decisions could not be implemented earlier because the model code of conduct came into force after the general election dates were announced on March 5. The decision to provide the entitlement under EPS-95 run by the Employees' Provident Fund Organisation (EPFO) was taken by the Union Cabinet in its meeting held on February 28.

After the Cabinet approval, the decision to provide this entitlement was to be notified by the Labour Ministry, but for the model of code of conduct. This will immediately benefit about 28 lakh pensioners, including 5 lakh widows. In all, there are 44 lakh pensioners under the EPFO scheme.

The EPFO's apex decision making body the Central Board of Trustees (CBT) met on February 5 and decided to amend the EPS-95 scheme for the purpose.

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Rupee stability essential for corporate turnaround: Ind Ra

It said the sectors expected to do better in FY15 account for 11.8 per cent of the banking system's loans, while those with a stable outlook amount to 28.04 per cent of the banking industry exposure and those with a negative outlook are at 23.2 percent.

Stating that it does not expect credit metrics to deteriorate in 2014-15, India Ratings today said stability in the rupee is one of the most important factors essential for corporate turnaround during the fiscal.

"We do not expect corporate credit metrics for FY15 to deteriorate from FY14 levels...currency stability (is) key to corporate turnaround in FY15," it said in a note. The agency said it had given a positive credit outlook to eight of the 22 sectors covered by it, which are expected to do better during the fiscal, as compared to the previous fiscal.

Also Read: Flows into India to pick up if Budget is reformist, says Nomura

It said the sectors expected to do better in FY15 account for 11.8 per cent of the banking system's loans, while those with a stable outlook amount to 28.04 per cent of the banking industry exposure and those with a negative outlook are at 23.2 percent. The agency stressed that the exposure to sectors with stable outlook has increased from 26.3 percent in the year ago, while the same to negative outlook sectors has decreased from 30.7 percent in the year ago period.

On the rupee front, it said 70 per cent of the aggregate balance sheet debt of BSE 500 companies, excluding those in the banking and financial services space, belongs to net importers and every one percentage point depreciation in the rupee causes a 1.3 percent margin compression, affecting the credit profiles.

Estimating that the rupee will be trading at the 57-58 levels by the end of the fiscal, it said 22 percent of the 'investment' grade corporates may suffer a rating downgrade if the rupee shoots up to over 60 against the dollar for a sustained period of time.

However, there will not be any defaults by these corporates, it said, adding that the defaults will set in only if the rupee breaches the 65 level against the USD. The rupee, which has gained a lot of lost ground in the last few weeks on a surge in inflows, closed 4 paise higher at 59.15 against the dollar at the end of the trading session today.

 

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Maha legislators demand relief for Campa Cola residents

As the deadline to vacate the flats passes today, residents are still hopeful that they will be able to save their houses from demolition.

Members from both ruling and opposition benches in the Legislative Council today asked the Maharashtra government to provide relief to residents of the Campa Cola society in Mumbai, who are supposed to vacate their illegally built flats today.

Deputy Chief Minister Ajit Pawar assured the Council that he would convey members' sentiments to the Chief Minister Prithviraj Chavan. Leader of Opposition Vinod Tawde (BJP) raised the issue; BJP MLC Ashish Shelar suggested that government seek the help of the newly-appointed Attorney General Mukul Rohatgi.

Pawar said the state cabinet would take up the issue. As the deadline to vacate the flats passes today, residents are still hopeful that they will be able to save their houses from demolition. The Brihanmumbai Municipal Corporation, the local civic body, has said it would move the Supreme Court if the residents of 96 illegal flats did not vacate.

The apex court had refused to stay demolition of the illegal 96 flats in the Campa Cola complex.

Also Read: 'Prime Property' discusses Campa Cola predicament

 

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First week of PM Modi: How did he fare?

A week is a short period to assess how the new government will function over its full term, but if early signs are anything to go by, prime minister Narendra Modi is planning significant changes to the way government has been functioning

A week is a short period to assess how the new government will function over its full term, but if early signs are anything to go by, prime minister Narendra Modi is planning significant changes to the way government has been functioning - from scrapping EGoM and GoMs to asking ministers and bureaucrats to work for six days a week - the prime minister wants to change the work culture of bureaucrats and ministers.

Needless to say that the Modi government made a good beginning, but AK Bhattacharya editor of Business Standard believes it could have been better.

Also Read: Modi-Jaya meeting: Why will NDA want a difficult ally?

He feels abolition of EGoMs is a progressive step, which effectively means the PMO will become all powerful once again.

The Modi government has also set up a SIT on black money, which will hold its first meeting on Wednesday - June 4. Bhattacharya says it is a move in the right direction and will send good signal to tax payers.

He doesn't see any problem on proposed reforms in the insurance sector, but is not confident about transferring of government stake in PSU banks to holding companies. Instead Bhattacharya feels the government should try and reduce its stake in PSU banks from 51 percent to 33 percent and thereafter to 26 percent.

On the matter of asking bureaucrats and ministers to work six days a week, he believes instead of making changes in laws, a simple directive will do the trick.

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SIT on black money holds its first meeting

Without elaborating on the roadmap, the statement said the next meeting of the SIT will be convened shortly to take stock of the follow-up of the decisions taken at today's parleys.

The Special Investigation Team (SIT) set up by the Centre to probe black money stashed by Indians abroad had its first meeting today during which the roadmap on how to proceed further was decided. Sources privy to the meeting said that the SIT headed by former Supreme Court Judge M B Shah decided to examine whether some of the black money cases could be put on fast-track.

After nearly two-hour long deliberations, the Finance Ministry came out with a brief statement saying that "during the meeting, detailed modalities of proceeding further with the Supreme Court mandate were discussed and the roadmap decided."

Also Read: SIT probe on black money a positive, says Ex-CBDT chairman

Without elaborating on the roadmap, the statement said the next meeting of the SIT will be convened shortly to take stock of the follow-up of the decisions taken at today's parleys. However, sources in the meeting said that probe agencies like Enforcement Directorate, the CBI and other financial probe agencies were asked to submit the number of black money and money laundering cases pending before them and the progress of the probe.

The meeting was chaired by 75-year-old Shah and attended by former Supreme Court Justice (retd) Arijit Pasayat as its vice chairman and top officials of 11 high-profile agencies and departments including Intelligence Bureau, Research and Analysis Wing, CBI and Enforcement Directorate. According to the sources, framing of policy for tackling the menace of black money and the status of ongoing probes and available inputs with all the departments in this regard was discussed.

Neither Shah nor 69-year-old Pasayat spoke about the deliberations at the meeting to the waiting journalists outside North Block which houses the Finance Ministry. "It was a good meeting," was all that Shah said. The Terms of Reference for the SIT states that the elite team will investigate all matters "with respect to unaccounted monies being stashed in foreign banks by Indians or other entities operating in India that may arise in the course of such investigations and proceedings."

Government had notified the creation of the SIT on May 27 after the Supreme Court had asked it to constitute the high-profile team comprising top bosses of the country's premier investigation, enforcement and intelligence agencies. SIT was constituted in the first Cabinet decision of the Narendra Modi government to implement the decision of the Apex Court on large amounts of money stashed abroad by evading taxes or generated through unlawful activities.
 

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Weather forecast for major indian cities on Tuesday

According to the latest weather update by Skymet Meteorology Division in India, Delhi will be the hottest city in India tomorrow while the coolest will be Bangalore. City of dreams Mumbai which has eagerly been waiting for some rain could get lucky on Tuesday. Here's a look at the weather forecast for major Indian cities on Tuesday, 3rd June.

Cities Maximum Temperature Minimum Temperature Conditions Delhi 42°C 26°C Day will turn hot and dry in the absence of any rain. Sky is expected to be mainly clear. Mumbai 34°C 28°C Morning and evening will be sultry and humidity will be as high as 80%. Light rain in pockets may bring some relief. Kolkata 35°C 27°C Day will be hot and humid and this heat may trigger some thundershowers. Chennai 38°C 29°C A partly cloudy day will not be observed. Both day and night will be very warm. Bangalore 33°C 22°C Maximum and minimum temperatures will be the lowest among all other major cities. Light rain expected. Hyderabad 40°C 27°C Afternoon will be scorching. Partly cloudy sky could bring rain and thundershowers  

By: Skymetweather.com

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Bourses extend deadline for common contract note till Aug

A contract note is a record of transactions executed by a stock broker, having information like order number, time of a trade, quantity and kind of security purchased or sold and brokerage and taxation rates.

Leading stock exchanges NSE and BSE have extended the deadline for introducing common contract notes across segments by brokers till August this year.

Earlier, the deadline for launch of common contract notes was April 1.

A contract note is a record of transactions executed by a stock broker, having information like order number, time of a trade, quantity and kind of security purchased or sold and brokerage and taxation rates.

Different segments such as capital market, currency derivatives and futures and options would have a common contract note.

"... based on the feedback received from the market participants, the date of implementation of the common contract note is extended till August 1, 2014.

"Members are hereby advised to comply with the requirements from August 1, 2014," the exchanges said in similar-worded circulars.

Currently, trading members have to issue different contract notes for different exchanges, as well as for different segments within the same bourse.

NSE and BSE, in November last year, had announced for having common contract note across segments and across all exchanges. The decision was taken after consulting Sebi (Securities and Exchange Board of India), other exchanges and member association.

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Anil Dua quits Hero MotoCorp; to pursue career abroad

Dua will continue in his current role till June 24, Hero MotoCorp Ltd said in a statement.

Country's largest two-wheeler maker  Hero MotoCorp today said its Senior VP (Sales & Marketing) Anil Dua has put in his papers. Dua will continue in his current role till June 24, Hero MotoCorp Ltd said in a statement.

Confirming the development, Dua said: "I have accepted an exciting opportunity outside of the country to begin a new chapter in my professional career."

"Anil's contribution towards the growth of the company is highly appreciated. He played an important role in doubling of sales volumes and increasing market share during the past eight years," Hero MotoCorp Ltd Managing Director & CEO Pawan Munjal said.

The two-wheeler maker said the national marketing and sales functions will continue to be headed by Sanjeev Shukla and A Srinivasu respectively, while the national dealer development and after-sales service functions will remain with Ajay Dikshit and Rajesh Mukhija, respectively.

Hero Motocorp stock price

On June 02, 2014, Hero Motocorp closed at Rs 2385.10, up Rs 41.35, or 1.76 percent. The 52-week high of the share was Rs 2775.05 and the 52-week low was Rs 1565.95.

The company's trailing 12-month (TTM) EPS was at Rs 105.62 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 22.58. The latest book value of the company is Rs 356.32 per share. At current value, the price-to-book value of the company is 6.69.

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Tata Motors sales dip 24%

Domestic passenger as well as commercial vehicle sales declined by 24 percent to 34,334 units in May, down from 45,430 units a year earlier.

Tata Motors  today reported 24 percent decline in total vehicle sales to 37,525 units last month. It had sold 49,304 vehicles in May 2013.

Domestic passenger as well as commercial vehicle sales declined by 24 percent  to 34,334 units in May, down from 45,430 units a year earlier.

Sales of passenger vehicles in May 2014 stood at 9,230 units, down 17 percent , from 11,134 vehicles sold in the same month of last year.

The company sold 6,932 units of Nano, Indica and Indigo cars and 2,298 units of Sumo, Safari, Aria and Venture vehicles in May, the company said in a statement.

In the commercial vehicles segment, domestic sales declined by 27 percent  to 25,104 units from 34,296 units in May last year.

Tata Motors stock price

On June 02, 2014, Tata Motors closed at Rs 421.10, up Rs 5.65, or 1.36 percent. The 52-week high of the share was Rs 464.20 and the 52-week low was Rs 263.10.

The company's trailing 12-month (TTM) EPS was at Rs 1.04 per share as per the quarter ended March 2014. The stock's price-to-earnings (P/E) ratio was 404.9. The latest book value of the company is Rs 59.47 per share. At current value, the price-to-book value of the company is 7.08.

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