The Tribune, Chandigarh, India

	Sensex closes with biggest annual gain in 18 years Mumbai, December 31 Putting behind the worst annual performance ever, Indian equities were on a roll in 2009, catapulting a key index by more than 80 per cent, to close the year with one of the best gains among emerging markets. At its closing bell today, the Sensex was ruling at 17,464.81 points with an impressive gain of 7,817.5 points, or 81.03 per cent, over the previous year’s close at 9,647.31 points. This was the best annual performance since 1991, and was in sharp contrast to 2008, when the Sensex ended with a hefty loss of 10,639.68 points or 52.45 per cent, making it the third-worst performing equities index among emerging markets. The story was no different at the NSE, where the broader 50-scrip S&P CNX Nifty gained a hefty 2,241.9 points or 75.76 per cent when it closed at 5,201.05 points today. The main factors that made key indices rise like phoenix was the resilience of the Indian economy and impressive growth despite global slowdown that was also reflected in corporate earnings and the return of the foreign institutional funds. According to market watchdog Sebi, such overseas funds pumped about $17.46 billion into the Indian stock markets in 2009, as opposed to a net sale worth $13.135 billion for the first time in over a decade. “The performance in 2009 surpassed the expectations of even the most optimistic person. There were not many places left for foreign funds to invest and India was among the few attractive destinations,” said Jagannadham Thunuguntla, equity head at SMC Capitals. Some of the 13 sector-specific indices stood out because of their performance -- the metals index appreciated the most, up 233.68 per cent, while auto followed with a gain of 204.16 points. Similarly, the indices for information technology was up 132.78 per cent, capital goods gained 104.26 per cent, consumer durables rose 97.8 per cent, banking gained 83.9 per cent, state-run enterprises inflated 80.54 per cent, power moved up by 74.3 per cent. On the whole, the year started on a promising note with the government unveiling a second dose of fiscal stimulus to help the economy weather the adverse impact of a slowdown in the global economy. As a result, the Sensex rallied till January 6 and gained 7.13 per cent in just three days of trading. But then came the confession of a multi-million dollar fraud by Satyam Computer founder B. Ramalinga Raju, triggering a 7.25 per cent fall in just one session. Till February, the barometer index was oscillating between 9,000-odd points and 10,300-levels. But as signs of a prolonged economic recession receded the world over, Indian equities found more takers and reflected in steady rise in the index. By the beginning of May, it was trading comfortably around the 12,000-point mark and gave a thumping welcome to the electoral victory of the Congress party-led United Progressive Alliance -- that even saw suspension of trading as indices hit the upper circuit twice. The remaining months saw a steady rise with interim corrections even as events like the presentation of an industry-friendly Budget boosted investor sentiments. Top five gainers during 2009 were Tata Motors, up 398.33 per cent at Rs.792.60; Mahindra and Mahindra, up 293.23 per cent at Rs.1,080.80; Sterlite Industries, up 230.45 per cent at Rs.861.65; Hindalco, up 211.23 per cent at Rs.160.75; and Maruti Suzuki, up 199.88 per cent at Rs.1,559.65. Only three stocks ended lower -- Bharti Airtel was down 54.02 per cent at Rs.328.80; Reliance Communications was down 23.92 per cent at Rs.172.90; and Reliance Industries, which ended lower since the company declared a 1:1 bonus. Looking ahead, the markets expect some more action once the government’s divestment programme gets under way, even as investors have their fingers crossed on when the Sensex will breach the magical 21,000 mark. — IANS
	Balanced approach must on stimulus continuity: Pranab Kolkata, December 31 Finance Minister Pranab Mulkerjee has said a balance has to be stuck on the issue of continuity of the stimulus packages. “The aim is to maintain growth,” Mukherjee said, while addressing the members of the Indo-American Chamber of Commerce here today, adding the package should not be prolonged so as to make public debt hard and prevents the private sector from accessing resources because of huge government borrowing. “It (the withdrawal of the stimulus measures) should not be too early as well as it could have adverse impact on the economy,” he said, however, refused to set deadline to review the stimulus packages. The government has pumped in Rs 2.20 lakh crore into the economy as stimulus packages from December 2008 through February this year, to revive the sagging economy following the global financial meltdown. As a result, the fiscal deficit has ballooned to 6.8 per cent. Mukherjee hoped that the growth momentum recorded in Q2 would be maintained in Q3 and Q4 and the overall GDP growth for the fiscal would cross 7.5 per cent. The first and second quarter GDP growth of the current fiscal was 6.1 and 7.9 per cent, respectively. Apprehensive about the role of agriculture in Q3, the minister said the farm numbers could be negative due to the severe drought and the resultant damage to Kharif crop in that many regions. In the first quarter, the contribution of agriculture was 2.5 per cent, but in Q2 it made a nosedive to 0.91 per cent. Mukherjee had earlier said the deficit in agriculture in the third quarter would be compensated by industrial growth touching the double digit figure. — PTI ‘No sign of liquidity pushing up inflation’ Kolkata, December 31 There is no sign in the economy that excess liquidity is causing the current inflationary pressures, Finance Minister Pranab Mukherjee said here today. “I had a detailed discussion with the RBI and found that there is no reason to believe that excess liquidity is contributing to inflation in the economy,” Mukherjee said. However, he acknowledged that average food prices rose by 19-23 per cent even in the wholesale price index, which is really high. “Unlike instant coffee, there is no instant solution to such vexed problems, as inflation,” he said. — PTI
	Deficit rises by 73 pc till Nov ’09 New Delhi, December 31 The fiscal deficit rose by 73 per cent to Rs 3.06 lakh crore in the first eight months of the fiscal against Rs 1.77 lakh crore a year ago, as the government cut taxes and stepped up expenditure to stimulate the economy hit by the global financial crisis. At this level, fiscal deficit has already touched 76.4 per cent of the budgeted estimate at Rs 4.01 lakh crore for the entire fiscal. To spur economic activity, the government initiated massive spending programmes and slashed duties from December last year. This has, in fact led, to revision of fiscal deficit from the estimated 2.5 per cent of GDP last year to 6 per cent this fiscal. The Centre’s expenditure stood at Rs 6.21 lakh crore, while receipts were just Rs 3.15 lakh crore till November, leading to fiscal deficit of over Rs 3 lakh crore. In fact, the government has pegged total expenditure at record level of over Rs 10 lakh crore this fiscal, 60 per cent of which has already been incurred till November. Of the more than Rs 6-lakh crore expenditure incurred, 72 per cent is accounted by non-plan outgo, including interest payments. The government’s tax collections at Rs 2.32 lakh crore contributed the most to its kitty. Meanwhile, the revenue deficit, which is the excess of revenue expenditure like those in salaries over revenue income, rose to Rs 2.58 lakh crore till November, an increase of 82 per cent over last year’s corresponding revenue deficit of Rs 1.41 lakh crore. The revenue deficit was 91.2 per cent of the annual budget estimate of Rs 2.83 lakh crore for 2009-10. —PTI
	Food inflation nears 20 per cent New Delhi, December 31 Costlier essential items like potatoes and pulses pushed up food inflation to 19.83 per cent in the third week of December after easing a bit in the previous week, dashing hopes of any sustained relief for the common man. The wholesale-price based index of food articles rose by 1.18 per cent for the week ended December 19 from 18.65 per cent a week ago. A week before that, food inflation stood at the decade’s highest level of 19.95 per cent. The rise in food prices is mainly due to dearer essential items like potatoes, onions and pulses. Potato price more than doubled while pulses became costlier by over 41 per cent over the last year. Besides, onion rose by 40.75 per cent. Rice rose by 12.95 per cent, wheat by 12.66 per cent, milk by 13.61 per cent and fruits by 10.35 per cent on a yearly basis. Prices of fuel, power, light and lubricants rose at a rate of 4.45 per cent during the week ended December 19. This is despite the fact that LPG prices declined by 7.42 per cent, petrol by 2.18 per cent and high speed diesel oil by 0.19 per cent. — PTI
	MTNL puts overseas plans on hold New Delhi, December 31 State-run MTNL has put its overseas acquisitions plans on the backburner for the time being as it decides to focus on improving its market share in Delhi and Mumbai --the only places where it operates. “Right now we don’t have any plans ... I am concentrating on my in-house business more... We are doing very well in Nepal and Mauritius, which are going to fetch good revenues. It is not that we have all together stopped. For some time, we are not very active,” MTNL CMD RSP Sinha told PTI. However, the NYSE-listed company has expressed its desire to partner its big brother PSU BSNL in their overseas acquisition, especially in the emerging markets. The PSU has a mobile subscriber base of 44 lakh and is eyeing 50 lakh before the fiscal end. MTNL shares were trading at Rs 73.85, down 0.94 per cent. “If BSNL is looking towards them (emerging markets) for acquisitions, we would also like to join them as a partner when they finally decide. We tell them take us along with you as a partner,” he said. — PTI
	Compact cars set to dominate Auto Expo Girja Shankar Kaura Tribune News Service New Delhi, December 31 Even as Germany, known for its auto engineering, is set to dominate the Auto Expo 2010, which gets under way at Pragati Maidan here from January 5, the focus would be on compact cars, with almost every manufacturer in the country ready to showcase their new product. Country’s largest car manufacturer Maruti Suzuki Indian Ltd (MSIL) will showcase an array of 17 vehicles. It has adopted ‘Joys of Life’ as the theme for the Auto Expo. The importance that the auto manufacturers are attaching to this expo and the Indian market on the whole can be gauged from the fact that over 75 companies from Germany will showcase their products in as many as eight halls, covering an area of more than 8000 sq metres. Sonia Prashar, director (marketing and trade fairs), Indo-German Chamber of Commerce (IGCC), said Germany’s participation in such shows is increasing. Major German automotive manufacturers like Audi, BMW, Mercedes-Benz, Skoda, Volkswagen and leading suppliers like BOSCH, Continental, Schaeffler, ZF, Mann+Hummel, Voith, Mubea, Jost and Hella will participate in the expo. Experts feel that with the abundance of new models waiting to make their world premiere, the Delhi auto show could actually surpass the annual Detroit auto show in importance. The next week’s show will have no shortage of rivals -- from Toyota Motor Corp to General Motors Co -- looking to debut their own compact cars as they seek a larger presence in one of the world’s few healthy auto markets. As many as 10 small or compact cars could make their debut at the show. The long-awaited unveiling of Toyota’s compact car concept, code-named EFC for Entry Family Car, will be among the highlights at the Delhi show. Honda Motor will make a splash with the “New Small Concept” to occupy the space below its Jazz/Fit model. Volkswagen will display the Polo, local production of which began this month near Mumbai. Ford Motor will showcase Figo, introduced by CEO Alan Mulally earlier this year. India is also expected to become a strategically crucial base for producing small cars for global automakers, many of which are looking to ship their cheap cars and components overseas. Market leader Maruti Suzuki plans to debut a compact multi-purpose vehicle concept called Concept R3. Its display will include new launches, and cars such as the Suzuki Kizashi and SX4 hatchback. The Kizashi is Suzuki Motor Corporation’s flagship model in the D-segment. The company is all set to launch a new multi-purpose vehicle Eeco that it hopes will sell around 40,000 units annually.
	Cotton growers got rich dividends in ’09 KS Chawla Ludhiana, December 31 North Indian cotton growers reaped rich dividends in 2009, as the prices of cotton continued to rule high. The prices of cotton are up by 20 per cent compared to the prices of the last year. Narma cotton is being sold for Rs. 3300 to Rs. 3500 per quintal this year against the MSP of Rs. 2800 per quintal. Sources maintain that cotton growers all over the world earned much benefit this year as the price of cotton in international markets are quite high as compared to that of last year. New York future last year was worth 46 to 48 cents per pound whereas this year the same was priced at 76 cents per pound. The overall rise in the prices in India this year was between 20 and 25 per cent. Enquiries by The Tribune revealed that markets in Punjab, Haryana and Rajasthan have received over 25 lakh bales of cotton, so far. Punjab has received 9.50 lakh bales, Haryana 9.25 lakh bales and Rajasthan 6.25 lakh bales, respectively. Almost 11,000 bales of cotton arrival at Punjab market daily. This peak arrival will continue till the end of January. The markets in the region are expected to receive another 15 lakh to 16 lakh bales. The total production will touch approximately 41 lakh bales. Textile mills were the major buyers of cotton this year, with the Cotton Corporation of India (CCI) taking a backseat because of the high prices of cotton. Last year, the CCI had purchased more than 20 lakh bales. Export wise also, it was a good year as nearly 15 lakh bales have been exported to China, Thailand, Bangladesh, Indonesia, Taiwan, Turkey and Pakistan. Export demand worth 46 lakh bales has been registered with the Textile Commissioner of India, Vardhman Threads Ltd., managing director DL Sharma said. He told The Tribune that world cotton prices were also higher this year. The gap between production and consumption was worth 1.5 million tones. Besides farmers, speculators, too, have benefited financially from the rise in the prices.
	Industrialists worried over steel price rise KS Chawla Ludhiana, December 31 Steel prices have started rising for the past few days causing concern among the local engineering units. Industrialists are not able to figure out any valid reason for the rise in the prices, as they do not have any export orders and the domestic market is also slow. The prices of steel have risen by Rs. 6,000 per tonne during the month of December alone. Major steel producers are likely to further raise the prices by Rs. 1,000 to 1,500 from January 1. Avtar Singh, general secretary, Chamber of Industrial and Commercial Undertakings, told The Tribune that kulfi which was earlier priced at Rs. 23,000 per tonne had risen to Rs. 29,000 per tonne. HR Coil was being sold in black market at the rate of Rs. 35,000 per tonne whereas the sale price was Rs. 32,000 per tonne. Similarly, CR Coil was sold at Rs. 42,000 against the official price of Rs. 39,000 per tonne. Alleging that stockists were creating artificial scarcity by hoarding, he said the Centre was not providing any protection to small-scale industries and the steel producers were raising the prices without any reason. He said the international market, too, had seen a rise in steel prices, but the rise was just by 5 per cent.
	D-Street to take New Year break Mumbai, December 31 The country’s bourses will join their global counterparts tomorrow to welcome the new year with a holiday. With as many as 11 leading stock markets across globe remaining closed on January 1 every year, the BSE and NSE would be the new one to join this group to declare a holiday on the new year’s day. All leading markets across the Americas and Europe such as the New York Stock Exchange, the Nasdaq, Brazil Stock Exchange and Canada’s Toronoto Stock Exchange, and London Stock Exchange, as well as the Australian and Johannesburg exchanges would remain closed tomorrow. In Asia, the Tokyo Stock Exchange, China's Shanghai Stock Exchange and Hong Kong exchanges, and Taiwan Stock Exchange will be closed. Also, the Russian Stock Exchange will be shut on account of the new year. — PTI
	March 31 set as deadline for number portability New Delhi, December 31 The government has said it will introduce mobile number portability across the country by March 31, 2010, a three-month delay from the scheduled date of launch, which was today. Mobile number portability (MNP), which allows a user to retain his/her number even after the switching the operator, was to be introduced in the metros and Category A telecom circles from today, and in other areas by March 20, 2010. “The Government has now decided to implement it in whole of the country in one go, by March 31, 2010,” the Ministry of Communications and Information Technology said in a statement. Explaining the rationale behind the delay, the statement said after a series of meetings with the service providers to assess their readiness for MNP implementation, it was found that while some have technically upgraded and augmented their networks and some have established physical links with MNP operators, others are still in the process. — PTI