Tuesday, February 16, 1999
today's calendar
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B U S I N E S S | Tuesday, February 16, 1999 |
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spotlight today's calendar |
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Cautious optimism as Budget
countdown begins LSE
to punish defaulting companies |
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Hind Lever net jumps 43.8
per cent
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Hyundai
booking orders fall Sinha
for growth with social justice Gujarat
Ambuja mine adjudged best India
for Africa Fund Bimal
Jalan coming Quantum
gets FIPB approval Rain
water harvesting |
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Cautious
optimism as Budget countdown begins NEW DELHI, Feb 15 — The mood in the Indian capital market is one of “cautious optimism” as the countdown for the Budget 1999-2000 begins. Though there have been sparks of a pre-Budget rally in the recent weeks, stock market players say the traditional “enthusiasm” that is generated during this time of the year is missing. “The Union Finance Minister, Mr Yashwant Sinha, will have to really come out with something fantastic if the markets are to see the kind of buoyancy that was witnessed in the initial years of the liberalisation programme”, says a senior stock market analyst with a multinational broking firm in Mumbai. The marketmen are hopeful that the Finance Minister would definitely have some good news for the bourses but his efforts could be negated by several other external factors. For one the political uncertainty is one factor that is keeping the markets subdued. The Government appears to be surviving one crisis after another but how long this would continue is a question that is uppermost in the minds of most operators. The Finance Minister’s statement that he has exhausted all the soft options has also caused apprehension in the market. Also, the movement in the stock markets has been confined to select scrips and that too mostly in Group A. Foreign Institutional Investors too are concentrating on some select scrips like pharmaceuticals and software and hence the overall movement is restricted. After an initial period of lull, the stock market showed some movement last week with the BSE Sensex closing 122 points higher than the previous week’s close. This pre-Budget rally shows that even though the markets are apprehensive about the measures to come in the next couple of weeks, there is some optimism that things could finally improve. Share brokers are pinning their hopes on some immediate measures by the Finance Minister to boost the market. One speculation doing the rounds in the stock markets is that Mr Sinha would permit 5 per cent of Provident funds to be deployed in the market. It is expected that the investment decision would not rest with the Provident Fund Commissioners and instead the task would be given to a specialised agency like the Unit Trust of India. A major restructuring of the public sector units is also expected and this the marketmen say would reposition the PSU scrips in the market. A major incentive for the steel sector is also anticipated and this would boost the steel sector shares. The Government focus on infrastructure, especially the construction of highways, would make scrips of steel, cement and other related firms more attractive. Reports that the Government was considering a proposal to allow venture funds to invest in the service sectors like electronic media, Internet, publishing, health related services, hotels and tourism has also boosted sentiments in the market. Changes in the tax norms
for mutual funds to make them more attractive and the
liberalisation of FDI norms are some of the measures that
the markets are pinning their hopes on for a improved
market. |
Beauty among
bankers CHANDIGARH, Feb 15 — What’s common between a Miss India and a bank? Money, of course. To cash in on Gul Panag’s news value and glamorous presence, Bank of Punjab invited her to its Sector 9 office to inaugurate the on-line ATM facility. Work did not come to a halt as she stepped on the bank’s swanky premises. After initial curiosity, customers and officials got busy with their work. Artist B.S. Malhans, whose pen and ink drawings have been displayed on the bank’s walls since February 1, earned appreciatory “very nice”, “very beautiful” remarks from Gul. Escorted by the artist, she moved from one drawing to another as photographers clicked the now famous face. Conscious of her newly acquired celebrity status, Gul appeared weary of answering the media’s all too familiar questions. “You can ask only two questions” she told a journalist. How do you like Chandigarh? “Very beautiful”. And the bank? chipped in BoP Vice-President Arvinder Singh. “Very nice. Like a 5-star hotel”. Any memories of your schooling here? “I did classes III and VI here. I was too young to remember anything”. As newspersons prepared to take leave, she instructed: “I am not Miss India. Please write me as “Femina Miss India Universe.” Gul also opened her
account at the bank and was given an ATM card.She gave
away ATM cards to three customers. |
Hind Lever net jumps 43.8 per cent MUMBAI, Feb 15 (PTI) — Hindustan Lever Limited (HLL) has reported a 43.8 per cent increase in its net profit for 1998 at Rs 805.71 crore (Rs 560.37 crore in 1997). The company reported a gross turnover of Rs 10,215 crore, a 22.4 per cent increase over the previous year. The board of directors, who met today, proposed a final dividend of Rs 12.40 per share taking the total dividend to Rs 22 per share for 1998, a company release said here. The figures for 1998 include those of erstwhile Ponds (India) Ltd (PIL) which was amalgamated with HLL with effect from January 1, 1998 and consequently, the figures are not comparable to those of 1997. HLL’s market share in
toothpaste grew from 26.8 per cent in 1997 to 31.6 per
cent in 1998. |
Bajaj Auto profits to dip marginally NEW DELHI, Feb 15 (PTI) — Bajaj Auto Ltd’s, profits are likely to dip marginally in the current year due to fall in sales of three-wheelers, a top company official said. “Three-wheeler sales, which have the best margins, will be less in the current fiscal putting pressure on our margins. But the net profits this year would be higher than achieved year before last,” Rahul Bajaj, Chairman and Managing Director of Bajaj Auto, told PTI. Bajaj Auto had recorded a net profit of Rs 460 crore in 1997-98 and Rs 440 crore in 1996-97. Mr Bajaj said the total sales of the company were likely to go up marginally from 13.33 lakh vehicles in 1997-98 to 13.38 lakh vehicles this year. During the year, he said, scooter sales remained flat, while sales of motorcycles shot up by about 25 per cent. Motor cycles account for about 15 per cent of the total sales of Bajaj Auto. He also ruled out any buy-back of shares. “We have only about 35,000 shareholders. If I buy-back shares it would become a closely held company of Bajaj,” Bajaj said. He said despite the fall
in profits this year, the company would still be among
the top 10 profit-making companies in the country. |
LSE to
punish defaulting companies CHANDIGARH, Feb 15 — The Ludhiana Stock Exchange in its Board meeting held today considered the cases of companies not paying listing fees. The Board decided to initiate winding up proceedings against M/s Harpartap Steels Limited. The Board also decided to issue winding up notices to Compact Disc India Ltd, Hindustan Tools & Forgings Ltd, Krishna Engg Works Ltd, Majestic Industries Ltd, Mazda Industries & Leasing Ltd, MBM Limited, Mehar Diary Industries Ltd, Naraingarh Sugar Mills Ltd, S.R. Forgings Ltd, SPIC Organics Ltd, Thapar Oil & Fats Ltd and Vee Kay Fibres Ltd for the dues of listing fee accumulated for more than three years. The Board has also decided
to suspend trading in securities of Aristo Mercantiles
Ltd Creative Merchants Ltd, Essem Coated Steels Ltd,
Herita Mercantile Ltd, Overseas Finlease Ltd, Rajindra
Deposit & Finance Ltd and Shree Diwan Steels (I) Ltd
for non compliance of listing agreement. |
Sinha for
growth with social justice NEW DELHI, Feb 15 — The process of globalisation has to be based on growth with social justice and equity, the Union Finance Minister Mr Yashwant Sinha said here today. With technology transcending national borders, the process of globalisation could not be challenged today. However, it was important to ensure that the transition and the process was as painless as possible, Mr Sinha said while delivering a lecture at the Asian Trade and Investment Forum organised by the Commonwealth Business Council (CBC) and the CII here . The Finance Minister said that there was a need to consolidate gains of the Uruguay round of talks before embarking on further liberalisation of world trade. “ We should spend next few years in consolidating gains of Uruguay round to ensure that agreements are implemented before we move on to the next round”, he said. Emphasising the need for ensuring protection of national interests, Mr Sinha said that globalisation was not only about technology and investment and nations should be in the position to make optimal use. Mr Sinha noted that the
growth process should contain opportunities for the
poorest of the poor. No part of the world could be left
out of the process of globalisation and it had to be
comprehensive in terms of regions and population. |
Gujarat
Ambuja mine adjudged best SHIMLA, Feb 15 — Kashlong Limestone Mine of Gujarat Ambuja Cement at Daralaghat has been adjudged the best among the mechanised open-cast mines in the northern region. The company was presented the Shri Ram Chandra Bainda Award at a function organised at Daralaghat, about 45 km from here, to mark the conclusion of the Mines Safety Week. The limestone mine of ACC Gagal was adjudged the second best, followed by Mohabatabad Silica Sand Mine, which got the third position. The selection is made taking into account various factors such as working of mines, condition of roads, welfare activities, training of personnel, maintenance of machines. pollution control and adherence to mine safety measures. In the semi-mechanised open cast mines category, the first three positions were bagged by Jhiroli Magnesite Mine, Almora, Pali Silica Sand Mine of M/s Good Will Minerals and Manager Silica Sand Mine of Haryana Minerals. Durmala Phosphate Mine of
PPC Limited was adjudged the best among the underground
mines. It was followed by Maldeota Phosphate Mine of the
SME Company. |
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NEW DELHI, Feb 15 (UNI) — Telco’s Indica seems to have made serious dents in the booking collections of the two Korean auto giants with both Daewoo and Hyundai managing to collect only over 2,000 orders each against full payment in the second round of order taking which opened early last month. Both the companies had, in fact, anticipated this fall in the wake of Telco opening its bookings. However, they are also confident that serious consumers would come back to them in a few months. Both the Korean chaebols have also decided to keep the second round of order taking open with deliveries taking place within two months of order taking, sources said. Hyundai Motor India Limited (HMIL) had commenced the second round of booking orders on January 4. The company has already despatched 10,000 units of its 999CC small car Santro in a span of three months. In its second round, of the over 2,000 orders booked, 60 per cent are for the base model while 25 per cent orders have been booked for the top-end model and the remaining 15 per cent for the variant without power steering. The base model of the ‘Santro’ is priced at Rs 2.99 lakh (Ex-showroom Delhi) while the Santro DX with power windows and central door locking at Rs 3.49 lakh and Santro DX with power steering at Rs 3.69 lakh. Daewoo Motors India
Limited (DMIL) had reopened its order books for the 796CC
Matiz on January 6 with deliveries commencing from
January 15. |
India for
Africa Fund NEW DELHI, Feb 15 — The Minister of State for Agriculture, Mr Sompal, today said that India was contemplating creation of a Africa Fund for agricultural transformation of Africa and also providing scientific expertise under Technical Cooperation among Developing Countries (TCDC) programme to improve their agriculture. Inaugurating a three-day meet of the South Asian Association for Regional Cooperation (SAARC) Technical Committee on Agriculture here, the Minister reiterated the government’s commitment to provide all possible help in developing agriculture in other countries. Highlighting the commonalities in agricultural resources, constraints and challenges in the region, the Minister said that agricultural development was a high priority for partnership among SAARC countries. By pooling resources and using them judiciously the countries in the SAARC can not only improve productivity of horticulture crops but also boost their export potential significantly, he added. Referring to the progress made by India in the conservation of plant, animal and fish genetic resources, he said that the services of the recently established Gene Bank in India would be available to the SAARC countries. A SAARC workshop on ‘Consensus Development in Germplasm Exchange and IPR in Plants’ would also be organised in March this year in the capital. Underlining the need for developing agriculture in the SAARC region through mutual cooperation, Mr Sompal said that India was keen to contribute towards providing training of workers in agriculture extension, exchange of agricultural information to SAARC Agriculture Information Centre, providing facilities and expertise to conduct seminars and workshops on the improved animal health programmes, seed science and seed health care and exchange of germplasm. Director General of the Indian Council for Agricultural Research (ICAR), Dr R.S.Paroda, highlighted the similarities in climatic and genetic diversity among SAARC countries. He called upon the participants to focus on the issues like quarantine, quality, post-harvest management and market intelligence so that the export potential in horticulture could be exploited gainfully. He stressed the need for cooperation in arid fruits including ber, pomegranate, date-palm and custard apple. The Technical Committee
meeting would deliberate on the issues of productivity,
post-harvest losses and mutual trade in the field of
horticulture. |
Bimal Jalan
coming CHANDIGARH, Feb 15 — The PHD Chamber of Commerce & Industry will felicitate RBI Governor Bimal Jalan and also organise a seminar on “Finance for SMEs” (small & medium enterprises) here on February 18. The seminar will be addressed by Mr Rashid Jalani, Chairman, Punjab National Bank, Mr S Vasudev, Special Secretary (Banking), Mr S S Kolhi, Chairman, Punjab & Sind Bank, Mr Ram K Gupta, Managing Director, State Bank of Patiala, Mr K.K. Narula, Chief General Manager (Chandigarh Circle), State Bank of India, Mr Dalbir Singh, CMD, Oriental Bank of Commerce, and Mr S.L. Kapoor, Chairman of an RBI committee. The seminar will be
followed by reception in honour of Dr Bimal Jalan. |
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NEW DELHI, Feb 15 (PTI) — Quantum Information Systems Ltd, parent company of the Quantum Institute, today said it has obtained the Foreign Investment Promotion Board (FIPB) approval to offer 49 per cent equity in the company to foreign investors. Quantum will increase its equity capital from the present paid-up amount of Rs 50 lakh, to expand its activities, a company statement here said. A Singapore-based group
has already agreed to invest foreign equity capital of Rs
30 lakh in the company, it said. |
Rain water
harvesting NEW DELHI, Feb 15 — The Himachal Pradesh Government has decided to introduce rain water harvesting for domestic consumption in the State, the State Forest Minister, Mr Roop Singh Thakur, said here today. Participating in a meeting
of the society of G.B.Pant Institute of Himalayan
Environment and Development here, Mr Thakur asked the
institute to standardise cultivation practices for some
of the medicinal plants and stressed the need to ensure
value-added processes at the cottage level, besides
improvement of rural marketing of medicinal herbs. |
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