 |
Thursday, September 13, 2001,
Chandigarh, India  
|
Amid chaos Re manages to hold ground New Delhi, September 12 Corporate India today reacted with shock and horror to the devastating terrorist strikes that shook the world’s most powerful economy on Tuesday morning.
Tragedy to unleash global easing
No immediate hike in oil prices: Naik |
|
|||||||||||||||||||||||||||||
| US crisis may hit exports, stock market New Delhi, September 12 The Indian economy is likely to come largely unscathed, barring some minor bruises on the export and stock market front, in the aftermath of the terror attacks in the United States. FDI worth Rs 101 cr cleared Simplify norms for call centres: seminar
|
|
Amid chaos Re manages to hold ground New Delhi, September 12 Analysts here said partial convertibility of the Indian capital markets saved the day for the domestic currency vis-a-vis the dollar even as currency markets around world went into a tizzy as reports of the strikes spread across continents like wild-fire. The rupee ended the day at Rs 47.425 against dollar, a marginal increase of Rs.01. Sensex dips 117 points Stock markets, however, went on a downward spiral and the Sensex, index of BSE, closed at 3032.71 points— down by 117.69 points or 3.74 per cent to the previous day’s closing. SEBI today held a Board meeting an hour before the trading opened in the markets today morning. In a precautionary move, SEBI said trading for 53 scrips in the derivatives segments would continue with a circuit filter of 10 per cent. FIIs are likely to adopt a wait and watch policy and as a result fresh FIIs funds-flow to Indian bourses may dry up in the immediate future. “It is unlikely that FIIs will resort to some kind of substantial offloading because FIIs have created their portfolio of Indian scrips over a period of years and not overnight. Having said, however, fresh funds flows through the FII route in bourses in the immediate future as they would adopt a wait and watch policy”, a New Delhi-based analyst said. Caution, however, needs to be maintained on the currency front as a very weak rupee could have serious adverse multiplier affects on the domestic economy, especially on the front of inflation. The dollar slid against all major currencies, particularly the Euro, while gold and oil prices skyrocketed to record peaks in overseas markets. Gold jumps Gold prices in the Delhi market increased to Rs 4,550 per 10 gram ( standard gold ) up from the previous day’s closing of Rs 4,450. The US retaliatory action could also have a major affect on the stock markets in this part of the world and analysts said that in case a the US strikes take place in Afghanistan then the FIIs may possibly withdraw funds from India. “For an FII, portfolio funds are earmarked on a region-specific or a category specific basis. For instance, India could be clubbed together with other economies in South Asia. This could mean offloading of funds in case of US retaliation in other parts of the region”, the analyst
said. Stocks, dollar jump, reversing US attack moves London, September 12 Safe haven bonds and gold lost ground, returning some of the massive gains made on Tuesday after two hijacked passenger planes slammed into the 110-storey twin towers of the World Trade Center in New York, triggering huge blasts that ripped through a key nerve centre of global finance.
Reuters
Markets
may open today Washington, September 12 “It is our hope and expectation that the markets will resume operation tomorrow or as soon as tomorrow but I believe it will be tomorrow,” Pitt, whose agency regulates the US stock markets, said on CBS’s Morning Show.
Reuters
|
|
‘Attacks to hit global economy’ New Delhi, September 12 There was also considerable concern over the well-being of the staff of Indian companies who have their offices in the USA. While no confirmed figures were available as yet, ad hoc estimates suggested that about 20 per cent of the people working in the major corporate offices in the twin towers of the World Trade Centre in New York were of Indian origin. Indian stock markets have fairly large portfolio investments from overseas, particularly from US funds. Losses are yet to be assessed which could run into several million dollars. Chairman of the US Chamber of Commerce, Mr Steve Van Andel, however, expressed optimism that the terrorist attacks will not affect growth of free enterprise. “Free enterprise lives in the hearts and minds of millions if people around the world and its power to advance the cause of humanity is stronger and more enduring than any attack”, Mr Van Andel said. Eminent economist and Secretary- General of FICCI, Dr Amit Mitra said the complete destruction of the World Trade Centre in New York will surely affect business sentiments and cause stock market slide in the short run. Mr Raghu Mody, President of Assocham, said “the colossal loss in terms of both man and material would have a significant impact on the US economy which is already in the grip of a slowdown”. “As the world’s largest and most powerful economy, it is bound to have a serious effect on the global economy and the business sentiment will be adversely affected ipso facto the stock and commodity markets”, Mr Mody said. The USA is the biggest trade and investment partner for India. As of May, 2001, the cumulative FDI of American companies stood at Rs 5,32,198.58 million. There were also concern over the future of Indian business interests in the USA. Currently, five Indian companies are listed on the New York Stock Exchange. These are ICIC Limited, ICICI Bank, Wipro, Dr Reddy’s Lab and VSNL. Three others - Satyam Infoway, Satyam Computers and Rediff.com - are listed on the Nasdaq. According to the CII Indian corporates were looking at a potential of achieving a turnover in the range of five to $ 10 billion from their US operations. President of the Federation of India Export Organisations (FIEO) K.K. Jain said “criminal act was not only an onslaught on American, but also on the world economy as it had targeted the hub of global business and finance in that country”. Chairman of Ansal Industries and President of the PHDCCI Sushil Ansal said the “recessionary change in the world economy could be further accentuated and the reverberations would be felt on the future growth prospects of the Indian economy”. |
|
Tragedy to unleash global easing Singapore, September 12 As equity markets slide, at least those that remain open, and investors stampede into safe haven assets, analysts fear the blow to confidence and an acute aversion to risk will tip the teetering world economy into recession. In response, central banks around the world are and will stand ready to flood markets with liquidity, and actual cuts in interest rates are the obvious next step. “We may see emergency rate cuts across the globe as happened after the Wall Street crash in 1987,” said Mansoor Mohi-Uddin, an economist at UBS Warburg in Singapore. Blank cheque Signs were already afoot that policy makers were prepared to write a blank cheque to calm markets. Early Wednesday the Bank of Japan announced it would do its utmost to avoid disruption in financial markets by providing ample funds to the banking system. It was followed in short order by the Reserve Bank of Australia and the Central Banks of South Korea and Singapore. Japanese Finance Minister Masajuro Shiokawa made the point clear, saying foreign exchange intervention may be necessary if the currency market remained volatile. The dollar fell some three yen to below 119 yen on
Tuesday in the wake of the attack, though analysts emphasised the move was largely a mark-down by jittery interbank dealers and actual selling volumes had not been huge. The havoc showed so sign of receding in Asia with the benchmark Nikkei 225 share index slumping 5 per cent to below the psychological 10,000 level for the first time in 17 years while the Korean Kospi dove no less than 12 per cent. Cuts to come it was no surprise then that in the fervid atmosphere of forex dealing rooms rumours quickly spread that the Federal Reserve was about to announce an emergency US Rate cut, to be followed by much of the developed world. However, Belchere cautioned that such a move might smack more of panic rather than of prudent proactive policy. “They really have to first assess the damage done to New York, to consumer confidence and the broader economy,” he said. “In the meantime they can provide plenty of liquidity and then move to rate cuts in good time.”
Reuters |
|
No immediate hike in oil prices: Naik New Delhi, September 12 Commenting on the short term impact of the rising global prices, which has seen a 6 per cent rise since the terror attacks in the United States yesterday, Mr Naik told newspersons that there were enough petroleum stocks in the country to last two months. Apparently taking solace from the OPEC statement that it would continue normal oil supplies in the market, Mr Naik said the government would watch the developments for one week and then react to international prices. Oil prices after the attack in the US surged by over $ 6 to about $ 31 a barrel in major markets. This was against the ruling price of around $ 24 a barrel before the strikes took place. Officials also disclosed that Indian Oil Corporation, which is the sole canalising agency for imports of oil in India, had firmed up supply contracts till November. Mr Naik said the scheduled purchases made by India from the international market would continue. It was reported that the IOC had only last week bought a total of five million barrels of crude for end September-early October loading. The brave front put up by the Minister nothwithstanding, it may be mentioned that every one dollar increase in the price of a barrel of crude oil is expected to shoot up India’s oil pool deficit by Rs 500 crore on an annualised basis. In the remaining months the impact on the oil pool deficit was estimated to be around Rs 200 crore per month for every dollar hike. An increase in the oil pool account deficit would make it difficult for the government to abolish administered price mechanism of petroleum products by April 1, 2002. The switch over to a market economy would require wiping out the deficit, which is currently estimated at around Rs 13,500 crore. The sharp hike in oil prices in the international market would only worsen the situation. With the general economy not in a very good shape and the government struggling to reduce fiscal deficit, the increasing oil pool account deficit would be another headache for the government in the coming days. With assembly elections in several states like Uttar Pradesh and Punjab next year, it remains to be seen how the Centre handles the situation on the oil front? |
|
US crisis may hit exports, stock market New Delhi, September 12 Though it was too early to judge the exact impact of the US attack on the world economy, Union Finance Minister, Mr Yashwant Sinha was of the opinion that the incidents in the US would not have an adverse impact in the long term on the Indian economy as the country was not a major player in the world market. Mr Sinha while saying so was falling on the advice of the Economic Advisory Council of the Prime Minister, which in its meeting with Mr Atal Behari Vajpayee last week had said that India was largely insulated from the world economy and the current global economic slowdown would have little impact on the country. The Finance Minister, who was in Mumbai to attend an All-India Hindi Conference, told reporters there that “we do not expect any adverse impact as our economy was basically a continental size and developments in domestic front are more important than in international sectors”. It has been pointed out by economic experts that exports and the stock markets were the major areas in the Indian economy which could be said to be linked to global trends. Even the foreign exchange market is not fully integrated with global trends as the Indian currency is still not fully convertible. Mr Sinha said exports in India were already recording less growth keeping in with the global trend while the stock markets, especially the technology scrips, were also ruling low in major international markets. The Reserve Bank Governor, Mr Bimal Jalan was also quoted as saying that the Indian economy would not be immediately affected by the US crisis. “Let’s wait for a couple of days. We will then know. It will all depend on how the rest of the world will react,” Mr Jalan said. Exporters confirmed Mr Sinha’s fears that the crisis could hit exports. The US accounts for one-fourth of India’s total export of about $ 44 billion. According to the Federation of Indian Export Organisations, the slowdown in the US economy had already dealt a crushing blow to the Indian exports which are now showing a negative growth after an impressive 20 per cent growth last year. Trade consultant R. Jayshankar said he expected the attacks in Washington and New York would lead to a fall in Indian exports to the US and in overall investment in India. There was also a school of thought which felt the attacks in the US could actually trigger off renewed economic activity. An investment banker with a international bank cited the example of quake-hit Gujarat, where economic activity had increased after the tragedy. On the stock markets front, he was of the opinion that the indices were already ruling quite low and nothing worse could happen. Analysts said apart from the economic slowdown in the US, India would have to watch out for the impact it has on other major economies. The European Union is already talking of a bigger slowdown in its economy following the attacks in the US. US Deputy Trade Representative, Mr Jon Huntsman, has, however, said that the attacks in the US should have only a short-term impact on trade and markets. |
|
FDI worth Rs 101 cr cleared New Delhi, September 12 The proposal of the Dutch company also includes increase in the foreign equity from 50.43 per cent to 100 per cent. The 21 proposals pertaining to manufacture of pharmaceutical products, software development, transport and port sector were approved by Commerce and Industry Minister Murasoli Maran on the basis of recommendations made by the FIPB, an official release said. The Rs 5.20 crore proposal of Japanese company Toshiba Corporation to set up a 100 per cent owned subsidiary for marketing support and consultancy services was also cleared. A Rs 4.41 crore proposal of P&O Ports India for conversion of loan into equity as well as a Rs 2.77 crore proposal of Emery Worldwide (India) to increase foreign equity from 80 to 100 per cent for multi-modal transport business was also cleared.
PTI |
|
Simplify
norms for call centres: seminar Chandigarh, September 12 "Lots of work can be outsourced to India due to the disaster. The companies which were considering various business options will now be forced to take decisions", said he. India can earn above $17 billion and provide jobs to at least 1.1 million people through call centres by 2008, said Mr Aggarwal, quoting a Nasscom survey during the seminar which primarily
focused on call centres business. Terming call centres as the sunrise industry he said at least 70,000 people have already been employed and the revenue generated in 2000-01 was around $900 million. Mr Vijay Kaul, Vice-President, HFCL, said e-commerce and e-business is growing at exponential rate and of every 100 new jobs, 66 today are for IT-enabled persons. Mr Anuj Mahajan, Director, Universal Cyber Infoway, said call centres can provide good opportunities for new entrepreneurs but certain issues like easy financing, government regulations, etc need to be simplified for the industry to prosper. Ms Madhulika Tripathi, Chairperson, IT and IT-enabled services sub-committee, CII North, detailed the agenda for IT in North India by the confederation. The CII IT Committee aims to spread awareness across the region and bridge the digital divide, assist state governments in developing IT policies and projects and provide affordable solutions to small and medium enterprises. |
rc
4 Wipro workers’ fate unknown Top officials of Wipro, Infosys Technologies and Tata Consulting Services here spent Tuesday night trying desperately to locate their colleagues posted with clients like Morgan Stanley Dean Witter and other companies that had offices in the 110-storied twin towers of the World Trade Centre. Wipro Chairman Azim Premji was in New York on Tuesday but away from the Manhattan area, said Pratik Kumar, head of human resources at Wipro. "But we are worried about four of the seven colleagues who were in the World Trade Centre. We have no confirmation about their well-being yet," he told IANS. Wipro has about 50 employees working in New York area. IANS Amitabh hints at leaving KBC Before leaving for Los Angeles for a 90-day start-to-finish shooting schedule of "Kaante", a co-production with Hollywood, Bachchan hinted he may not continue anchoring "Kaun Banega Crorepati", or KBC, beyond April, 2002. "My contract expires after 390 episodes. We're done with about 270. I think I've done my bit. The best option seems to be to take a break and just relax for a while," Bachchan told IANS. "But I must add, working with the KBC team is a wonderful experience," said the superstar, who shot for 40 episodes of KBC in 15 days before flying off to Los Angeles. KBC went on air in 2000 and has been the most popular game show since. Bachchan's charisma has had as big a role to play in keeping viewers hooked as the prospect of winning Rs. 10 million in the licensed Indian version of the British show "Who Wants to Be a Millionaire".
IANS
Intelligroup men in New York safe Initial reports said about 25 employees of the company were feared trapped in the twin towers of the World Trade Centre (WTC), when they were hit by two hijacked aircraft in a suspected terrorist attack Tuesday. An Intelligroup official said their employees had not reached the WTC when it came under attack. Around 25 to 30 employees of the company visit WTC every day to offer maintenance support. Intelligroup, a global technology solutions and service provider, has its corporate headquarters in New Jersey. Relatives of Indians living in New York made frantic attempts to contact their near and dear ones. A large number of Indians, especially software professionals, live in the city.
IANS |
bb
Cathay Pacific Real turns Activ Nalco Khana Khazana |
 |
| Punjab | Haryana | Jammu & Kashmir | Himachal Pradesh | Regional Briefs | Nation | Editorial | | Business | Sport | World | Mailbag | In Spotlight | Chandigarh Tribune | Ludhiana Tribune 50 years of Independence | Tercentenary Celebrations | | 121 Years of Trust | Calendar | Weather | Archive | Subscribe | Suggestion | E-mail | |
