Asian markets
skyrocket
TOKYO, Oct 16 — The unexpected reduction in U.S. interest rates, and the surge that followed on Wall Street, sent Asian stock markets into a buying frenzy today that saw Singapore’s bourse skyrocket by 9.2 per cent and Hong Kong’s by nearly 9 per cent.

US-64 investors go on selling spree in Chandigarh
CHANDIGARH, Oct 16 —Sticky-sugary fingers and the US-64 scheme happen to share a similarity these days — both kindle an intense desire to wash hands off them as early as possible.

• ...and in Ludhiana too

ICICI bonds issue opens
on October 26
CHANDIGARH, Oct 16 — The public issue of “ICICI Safety Bonds — October, 1998” will open for subscription on October 26 and close on November 9.

Punjab rice gift for B'desh
CHANDIGARH, Oct 16 — The first consignment of parboiled rice was despatched from Fazilka today for Bangladesh as flood relief. Ten more rakes will be despatched later.

‘Make buyer-seller
ties transparent’
CHANDIGARH, Oct 16 — Speaking at a seminar on buyer-seller relationship organised by the CII here today, Mr M K Aggarwal, a CGM from Maruti Udyog Ltd, emphasised the need for transparency between the buying and selling companies in terms of sharing production plans.

Asian markets skyrocket
Gains due to reduction in US interest rates

TOKYO, Oct 16 (AP) — The unexpected reduction in U.S. interest rates, and the surge that followed on Wall Street, sent Asian stock markets into a buying frenzy today that saw Singapore’s bourse skyrocket by 9.2 per cent and Hong Kong’s by nearly 9 per cent.

But the dollar took another slide against the yen, which hurts Asian exporters, and some analysts said it won’t take long for local concerns to override the benefits of America’s moves.

“External problems may be eased by the U.S. rate cut, but the problems remain with Japan’s domestic economy,’’ said Mr Kenji Karikomi, a general manager at Daiwa Securities in Tokyo.

Across the board yesterday, the USA provided Asia’s rattled and depressed markets with one good sign after another.

For the second time in about two weeks, the U.S. Federal Reserve cut interest rates by a quarter-point. The surprise reductions ignited an explosive rally on Wall Street. The Dow Jones industrial average ended the day up 330.58 points, or 4.2 percent, its third-biggest point gain in history.

American economists also speculated that more rate cuts are imminent as the central bank tries to keep global economic turmoil from dragging the USA into a recession.

In Singapore, the Straits Times index hit the roof, rising 94.85 points, or 9.2 per cent, to close at 1,119.6 points.

Analysts credited the reduction in U.S. Interest rates for lifting the index to its largest percentage gain, and its highest closing level, since it was revamped seven weeks ago.

In Hong Kong, the blue-chip Hang Seng index rose 806.59 points, or 8.9 per cent, to close at 9,777.01 points, its highest level since may 11. Hopes that hong kong banks would follow the U.S. decision to reduce interest rate by a quarter point spurred buying in property shares

ICICI bonds issue opens on October 26
Tribune News Service

CHANDIGARH, Oct 16 — The public issue of “ICICI Safety Bonds — October, 1998” will open for subscription on October 26 and close on November 9. ICICI Limited is permitted by SEBI to raise up to Rs 3,000 crore with a right to retain oversubscription up to Rs 3,000 crore over a year. It has already raised Rs 1,343 crore in the first three tranches.

In the fourth tranche ICICI is offering unsecured redeemable bonds aggregating Rs 400 crore with a right to retain oversubscription of up to Rs 400 crore, said ICICI officials at a press conference here today. The issue offers four types of bonds — Encash Bond, Tax Saving Bond, Money Multiplier Bond (in the nature of Deep Discount Bond) and regular income bond. The bonds have been rated by three agencies — Crisil, ICRA and CARE. ICICI is offering a five-year monthly income option. The coupon on this option is 13 per cent per annum and gives investor a return of 13.80 per cent per annum.

Punjab rice gift for Bangladesh
Tribune News Service

CHANDIGARH, Oct 16 — The first consignment of parboiled rice was despatched from Fazilka today for Bangladesh as flood relief. Ten more rakes will be despatched later.

A high-level Central delegation led by Joint Secretary (Food) K M Sahni toured the Ferozepur and Fazilka areas for the last two days to supervise the despatch of the 20,000 MT rice gift to Bangladesh and also to review kharif procurement.

The delegation visited mandis where paddy purchases were being made by the FCI.

The FCI has procured more paddy than was allotted to it by the State Government. Initially the FCI wanted just about 30 per cent share of the paddy procurement but it was allotted 40 per cent. Till now, it has purchased more than 11 lakh MT of paddy against a total government procurement of 13 lakh MT — more than 45.8 per cent of the government share and well above the target.

The Punjab agencies have done just about 54.2 per cent buying against its targeted share of 60 per cent, claimed an FCI release issued here today.

US-64 investors go on selling
spree in Chandigarh
By Peeyush Agnihotri
Tribune News Service

CHANDIGARH, Oct 16 —Sticky-sugary fingers and the US-64 scheme happen to share a similarity these days — both kindle an intense desire to wash hands off them as early as possible.

A visit to the UTI Sector 17 office here reveals it all. After October’s onion onslaught on household budgets, UTI’s US-64 scheme is here to unnerve the fidgety city investors.

Triggered by apprehensions that the UTI might declare NAV of the scheme much below its present rate, pensive investors have started reading the acronym UTI for “Under Threat of Insolvency” and have resorted to panic-selling.

Despite assurances by the Finance Minister, fire-fighting exercise by the RBI and reassuring advertisements by the UTI, hordes of investors continue to throng the UTI office, a practice that has been going on for the past fortnight.

“Depressed market conditions, tumbling stock markets and the negative balance in the reserves of the US-64 scheme, have taken their toll, “ says an investor who had come from Patiala to sell off his shares.

“I have put most of my life savings in the UTI scheme, since mine is a non-pensionable job. If God forbid, UTI declares a lesser NAV, I stand to lose to the tune of Rs 60, 000,” says Mr Kohli, a teacher in DAV College, Chandigarh.

Mr Tejdeep Singh, a gazetted officer in the Central Ground Water Board, blames media for the panic but adds that had everything been hunky-dory with the organisation, the government would not have resorted to giving assurances. “I have never heard the government assuring people about post-office savings,” he says and adds that an atmosphere of suspicion has been generated in general.

Flight-Lieut (retd) K.L. Sharma says that media reports and public opinion have driven him to sell his US-64 holdings. “Mine is a hard-earned money and I would prefer something safer like a post office which would give an assured return.”

Interestingly, every investor who washed his hands off the US-64 certificates, preferred post-office savings as an alternative mode of investment.

UTI Branch Manager L.M. Negi, however, finds no reason to panic and says UTI would continue to distribute income (dividend) and also follow the time-tested sales and repurchase pricing policy that would be governed by the interest of the unit-holders. “The move by Finance Secretary Vijay Kelkar, who purchased a number of US-64 certificates, would also help in reposing people’s lost confidence,” he avers.

He, however, evaded a direct answer when asked why UTI was not declaring NAV. Another official sitting besides him said on condition of anonymity that out of 3.16 lakh certificates sold till June ’98, only 17,000 had been sold back to the UTI. He blamed the sudden fall in the stock price index between May and June end for the present panic. “This led to a notional depreciation in the value of US-64,” he says.

Wiser after the crash in the stock market some five years ago, few are willing to take risk today. This panic selling would continue till the government takes more firm steps to root out the fear psychosis from the minds of the people.

...and in Ludhiana too
Tribune News Service

LUDHIANA, Oct 16 — The number of investors seeking redemption of US-64 units at the local office of the Unit Trust of India has doubled during the past few days. “We are now getting about a thousand certificates for encashment daily of the value of nearly Rs 30 lakh.” According to officials at the UTI, “We are paying them by cheque. There is no problem.”

The officials also said that they were also getting a large number of enquiries from anxious investors wanting to know the future of US-64. “We are trying to counsel them and calm their nerves.”With more than 3.5 lakh investors, Ludhiana has one of the largest concentration of investors in the region. The total sum invested in US-64 here is of the order of Rs 150 crore.

‘Make buyer-seller ties transparent’
Tribune News Service

CHANDIGARH, Oct 16 — Speaking at a seminar on buyer-seller relationship organised by the CII here today, Mr M K Aggarwal, a CGM from Maruti Udyog Ltd, emphasised the need for transparency between the buying and selling companies in terms of sharing production plans, technology and cost information.

Mr M R Agarwal, Controller of Stores, and Mr Charanjit Singh, Chief Quality Manager, Rail Coach Factory, Kapurthala, said there was lack of qualityawareness among vendors.

Mr K L Malik from Swaraj Mazda Ltd emphasised the need for both the vendor and buyer to work together to ensure total satisfaction to the customer. Capt Alok Sharma, Executive Director, Forge (India) Pvt Ltd, focused on the seller perspective in his presentation.

Pak onions for India
From Tarun Basu

ISLAMABAD, Oct 16 — Pakistani traders are apparently cashing in on India’s onion shortage by dispatching thousands of bags of the commodity across the border, thereby sending prices shooting in this country as well.

But Indian officials here deny knowledge of any such export.

According to reports, about 1.6 million kg of onions have been exported to India in recent weeks as businessmen here saw a half chance to make a quick buck from the shortage created in Delhi and elsewhere in India that sent prices of the vegetable soaring to nearly Rs 60 a kg.

Indian High Commission officials say they are not aware of any large-scale onion export to India and have only seen media reports to the effect. They, however, did not rule out onions being smuggled into India by Pakistani traders.

There were also reports of onions being sent to India from Dubai. India officially imported onions from Iran and the UAE.

An exporter was quoted as saying by the Dawn that around 1,800 bags, each containing 85 kg of onions, had so far been sent to India by train. Onion prices here have gone up from Rs 16 a kg to Rs 24 in recent weeks.

Meanwhile, Pakistani sugar exporters are said to be in a fix over Indian importers reportedly backing out of their commitment because of the crash in sugar prices in the international market. Two ships carrying over 20,000 tonnes of sugar were berthed at Karachi port because Indian buyers had not opened letters of credit so far, The News reported.

Exporters are also alleging that business through the land route to India was affected as Pakistani railway officials were not allowing cargoes, except those from a couple of influential sugar millers, to be sent to the Wagah border checkpost. Cargoes of other sugar traders were apparently stuck at railway stations in Lahore and elsewhere.

The Pakistani government is offering heavy rebate to the sugar exporters to maintain their export pace. The rebate, say experts, is at the rate of Rs 4,500 per tonne, the highest in the country’s history. (IANS).

Avoiding Microsoft’s muscle men

As U.S. government lawyers threaten to broaden the scope of their anti-trust case against Microsoft, the one strategic lesson that has been learnt in Silicon Valley is to avoid head-on competition with Microsoft whenever possible.

Whether prosecutors can prove Microsoft has engaged in a variety of anti-competitive, illegal acts to maintain its monopoly, many high-tech companies have developed an ambivalent approach towards the software giant of Bill Gates, who claims Microsoft has acted aggressively but legally.

“I still regard Microsoft as a primary threat,” says Steve Case, boss of America Online. “Microsoft has a history of getting it right in the long run.”

To fashion an alliance with Microsoft is preferred to challenging the company head on. Says Netscape Chairman and co-founder, James H Clark, the industry-wide mantra is: “Don’t do anything that is in Microsoft’s path.”

Intel, the dominant chip maker, shelved plans to develop multimedia and Netsoftware; Compaq, too, saw the light after proposing to load software from Netscape onto its machines, and then receiving a threatening letter from Microsoft.

Microsoft’s heightened sense of vulnerability over rival Web browsers stems not simply from fears about its customers using a rival’s product to access the Internet but from concern that, in the future, browsers may develop into operating systems in their own right, and so threaten Windows’ domination of the OS market. — The Guardian

IT meet

The International Tech Park, Bangalore, will host the forthcoming five-day mega event “Bangalore IT Com 1998”, considered to be one of the biggest information technology exhibition business meet and symposia commencing on November 1.

The event, which is expected to attract several multinationals, besides leading Indian companies, will be inauguratged by Mr A.B. Vajpayee. Bangalore was a natural choice for the mega event becasue of its software exports potential in IT sector infrastructure, conducive environment for investments in software and telecommunication sector in 1997-98.

Bangalore has recorded a software export of Rs 2,000 crore compared to Chennai’s Rs 292 crore and Hyderabad’s Rs 272 crore.

CD market

After revolutionising the television market in India, marketing wiz-kid Kabir Mulchandani has now set his sights on the burgeoning compact disc (CD) market.

“I am looking at now going into CD manufacturing and it would help complement my existing business,” says the high profile chief executive of the Baron group.

“CD manufacturing is very simple process. I just have to import the production lines to start manufacturing. It is not at all labour intensive. But I still have to finalise the finer details of the venture,” he adds. — UNI

Hyundai contract

HCL Infosystems Limited has been awarded the contract to instal, commission and support a countrywide dealer management support infrastructure for Hyundai Motors’ newly launched passenger car, Santro.

This pervasive network will enable Hyundai and itse distribution partners to effectively monitor and control the inventory of cars.

All 70 Hyundai Santro dealers across the country will be equipped with HCL’s state-of-art, Pentium II based infiniti global lines servers and up to five infiniti 2000 desktop computers, which will serve as nodes and associated networking components, and middleware. — UNI

IEC Soft

In view of the tremendous growth registered by the software industry in India, IEC Software Ltd has trageted a turnover of Rs 20 crore by the year 2000.

IEC, with countrywide network, including tie-ups in the UK, the USA, Nepal, Singapore, Maldives and Oman has been encouraged by the growth potential of the software industry to play a bigger role and has thus restructured its turnover targets — PTI

Hero Honda net jumps 46 per cent

NEW DELHI, Oct 16 (UNI) — Hero Honda Motors Limited (HHML) has recorded a 46 per cent growth in net profits and a 31 per cent surge in sales during the first half of the current fiscal. Net profit during the period stood at Rs 52.72 crore as against Rs 36.15 crore in the same period the previous year while the company recorded sales of Rs 713.11 crore as against Rs 539.79 crore last year, HHML Director Pawan Kant Munjal told newspersons here today. The company has, however, not announced an interim dividend for the period. Hero Honda has a turnover of Rs 1,500 crore. Net profit will be around Rs 105 crore for 1998-99, he added. Gross profit during the six-month period stood at Rs 73.46 crore from Rs 52.64 crore in the corresponding period last fiscal. Hero Honda Motors Limited (HHML) has dropped plans to foray into the scooter market. Hero Honda will be investing close to Rs 300 crore over the next four years for expanding capacities and introducing new models, the first of which a — a 150cc bike — will roll on to be the Indian roads in February 1999.

HLL, Pond’s merger complete

MUMBAI, Oct 16 (PTI) — The merger of Pond’s (India) Limited (PIL) with Hindustan Lever Limited (HLL) was completed yesterday with retrospective effect from January 1, 1998 the appointed date for the merger under the scheme of amalgamation. HLL filed with Registrar of Companies (ROC), Maharashtra, the drawn up order of the Bombay High Court, four weeks after the court approved the amalgamation on September 10. PIL had already filed the drawn up order of the Madras High Court with the ROC, Tamil Nadu on September 23, six weeks after the court approved on August 7.

Hitech Drill net rises 188 pc

MUMBAI, Oct 16 (PTI) — Hitech Drilling Services India Ltd, a Tata group company, recorded a 188 per cent increase in its net profit to Rs 9.66 crore during the quarter ended September 1998. Income from operations for the second quarter of 1998-99 was up by 79 per cent to Rs 41.63 crore, according to a Tata release here. The net profit for half year ended September 30, 1998 amounts to Rs 19.12 crore, a whopping rise from Rs 6.15 crore during the same period last year. Income from operations for the half year was Rs 81.74 crore.

NIIT nets Rs 108 cr profit

NEW DELHI, Oct 16 (TNS) — Global revenues of NIIT and its subsidiaries for the year ended September 30, 1998 reached Rs 648 crore, up 51 per cent over corresponding period last year (Rs 430.7 crore). The net profit of Rs 108.4 crore is up 60 per cent (67.9 crore). Mr Vijay K Thadani, President and Chief Executive of NIIT, said the cash profit increased to Rs 138 crore against Rs 84 crore for the corresponding period, an increase of 64 per cent. The board of directors has proposed a 1:2 bonus issue and recommended a dividend of Rs 3.75 per cent share.

Su-Raj Diamonds’ exports up

NEW DELHI, Oct 16 (UNI) — Su-Raj Diamonds (India) Limited has recorded a 48 per cent growth in net profit during the year ended september 30, 1998 to touch Rs 20 crore. Export sales grew by 30 per cent to Rs 412 crore during the period. Export sales grew by 124 per cent to Rs 139 crore as against Rs 62 crore during the same period the previous year. Net profit during the period rose by almost 15 per cent.

Forex rates

MUMBAI, Oct 16 (PTI) — The following were interbank forex and RBI rates (in rupees per unit):

U.S $ Rs 42.32/33
Sterling £ Rs 72.04/06
Deutsche Mark Rs 26.19/21
Jap Yen (100) Rs 36.96/98

The RBI reference rate was Rs 42.30.

AirTel

SHIMLA, Oct 16 (TNS) — AirTel has announced the launch of Himachal’s first automatic roaming service. AirTel subscribers can now enjoy the world-class convenience of being available on their Himachal cellular number even during their stay in Delhi. Designed specially for people who travel frequently to Delhi for business or for personal work, AirTel’s automatic roaming will allow the AirTel subscribers of Himachal to use their cellphones in Delhi and retain the same cellular number while doing so.

Gold rises

NEW DELHI, Oct 16 (PTI) — Silver shot up sharply on the bullion market today on hectic buying by local parties following festival saeason. Gold also climbed up on fresh purchases by domestic buyers and jewellers. The quotations: Silver .999 (ready) 7410, ready 7450, coins buyer 11,200 and seller 11,300. Standard gold 4400, ornaments 4250 and sovereign 3750/3800.

PSB branch

LUDHIANA, Oct 16 (TNS) — Punjab and Sind Bank, today opened agricultural hi-tech finance branch at Ferozepur Road, here. Speaking on the occasion, the Zonal Manager of the bank, Mr H.S. Lamba said that it had always been the endeavour of PSB to help and assist the agriculturists of Punjab in acquiring latest agricultural equipment and goods to improve agricultural production.