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Rupee, Sensex nosedive
Gold zooms to Rs 12,040
Budget 2008
Tax collection sustains over 40 pc growth
ATM withdrawals to be free: RBI
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4 public sector banks cut lending rates
RCom to list global company
Make balance payment, Rel Power to shareholders
Cut interest rates for SMEs: Assocham
‘Nano’ trial production to start by July: Kant
Maruti terminal at Mundra
MBD Alchemie partners with IBM
MS to roll out Windows 2008 today
Wockhardt net soars
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Rupee, Sensex nosedive
Mumbai, February 20 The Indian rupee had been ruling below 40 level since September 20 last year when it closed at 39.88/89 a dollar on the Interbank Foreign Exchange Market. In brisk activity at the Inter-Bank Foreign Exchange market today, the local currency touched a low of 40.24 against dollar after resuming weak at 39.95/97. The rupee had closed at 39.90/91 against the greenback yesterday. The rupee premiums on forward dollar ended higher on fresh paying pressure from banks and corporates. The benchmark six-month forward dollar premiums payable in July ended at 13-11 paise, up from 8-6 paise on Tuesday while far-forward maturing in January closed lower at 8-10 paise down from 18- 20 paise previously. Forex dealers said the exchange market continued to witness a scramble for dollar coverings by oil refiners to meet their import requirements with the global crude oil prices hitting record highs. They added that there was an increased demand for the greenback from oil importers as well as banks in the face of inadequate dollar supplies as a result of poor capital inflow. Banks stepped up dollar purchases in a bid to raise their dollar resources as foreign institutional investors were seen repatriating funds from equity markets amid mounting fears of a global economic slowdown, a dealer said. Meanwhile, global crude oil prices crossed $100 a barrel level to $100.01 yesterday for the first time raising fears about US consumer spending. The Reserve Bank, however, fixed the reference rate for the US currency at Rs 40.15 per dollar and for the single European unit at Rs 59.06 per euro. In cross-currency trades, the rupee also weakened sharply against the British Sterling, the euro and the yen. The Indian unit dropped against the sterling to end the day at Rs 78.15/17 per pound against its last close of Rs 77.79/81 per pound and also fell against the Single European currency to Rs 59.12/14 per euro from previous close of Rs 58.79/81 per euro. The rupee moved further downwards against the Japanese yen to close at Rs 37.24/26 per 100 yen from overnight close of Rs 37.16/18 per 100 yen. Meanwhile, record crude oil prices and fresh fears of the US credit problems pulled down the domestic markets below 18K level today, with the benchmark Sensex falling by 458 points following weak global cues. After showing signs of consolidation in the last three days, the markets came under sudden pressure as global stocks slipped after crude oil peaked to a fresh record causing concerns over the US inflation amid lingering credit fears. Key Asian indices ended lower in the range of 1.62-3.25 per cent while European markets traded in red in early trade. The Bombay Stock Exchange 30-share index ended the day at 17,617.60, a net loss of 458.06 points, or 2.53 per cent, from its previous close of 18,075.66. The National Stock Exchange index Nifty also dropped by 126.35 points at 5,154.45, after touching a low of 5,116.30 and a high of 5,267.15 points. Reports of the Reserve Bank rejecting proposals by some banks to increase their capital market exposure beyond the regulatory cap of 40 per cent of net worth on grounds of excessive volatility also affected the market sentiment, brokers said.
— PTI |
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Gold zooms to Rs 12,040
New Delhi, February 20 Standard gold and ornaments shot up by Rs 200 each at Rs 12,040 and Rs 11,890 per 10 gram, respectively. Sovereign, too, gained Rs 100 at Rs 9,600 per piece of eight gram. Market sentiment turned bullish after report of a sharp rise in gold prices in the global markets driven by a record hike in crude oil prices over $100 a barrel. The yellow metal in Asia rose to a three-week high of $930.55 an ounce last night. Gold set a record peak at $936.92 dollar on February
1. — PTI |
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Budget 2008
New Delhi, February 20 Finance minister P Chidambaram may announce cut in excise duty rates across the board from 16 per cent to 14 per cent or sector-specific duty cuts in the budget to be presented on February 29, official sources said. Sectors like pharmaceutical, textile machinery, food processing, paper and auto, including two wheelers, tyres are expected to get relief in excise duty, but like last year Chidambaram could also prune excise duty exemptions to maintain revenue collections, sources said. According to finance ministry, due to various excise duty exemptions the estimated revenue foregone touched Rs 99,690 crore in 2006-07 as against Rs 66,760 crore in the previous year. It includes area-specific tax exemptions of Rs 7,000 crore in 2006-07. With the approval of over 400 special economic zones, the revenue foregone figures could be much higher for 2007-08, although some tax exemptions were withdrawn in the last budget. Finance minister had earlier said that tax exemptions would have to go in a phased manner. While commenting on the fall in industrial production till November, he indicated that the government could take steps to boost consumption and investment to sustain the GDP growth close to 9 per cent. The growth rate for manufacturing sector declined to 9.6 per cent in the first nine months till December for 2007-08 from 12.2 per cent in the previous fiscal. Prime Minister’s Economic Advisory Council chairman C Rangarajan has also favoured cut in excise duty, especially on consumer durables, to spur economic growth. The government expects that manufacturers might pass on cut in duties to consumers, thus dampening inflation. Sources said there is a strong likelihood that the oil sector may also get a relief of at least Re 1 a litre in excise duty on petrol and diesel besides downward revision of customs duty to compensate oil marketing companies selling subsidised oil products. The government is also worried about the impact of fall in growth in high-employment sectors like textile and food processing. Sources said the textile sector, which is estimated to order Rs 1,00,000 crore worth machinery over the next 5 years, might also get a relief in excise duties especially on machinery. Some sectors like packaged drinking water, which attract 16 per cent excise duty are also expecting downward revision of central levy to 8 per cent. Meanwhile, industrial chambers like Ficci have asked the finance minister to bring down excise duty rate of 16 per cent to 12 per cent in two years as part of its commitment to implement Goods and Services Tax (GST) with effect from April 1, 2010.
— PTI |
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Tax collection sustains over 40 pc growth
New Delhi, February 20 Net direct tax collections stood at Rs 2,28,745 crore, up from Rs 1,61,776 crore during the same period last fiscal, registering a growth of 41.4 per cent and achieving over 85 per cent of budgeted direct tax target of Rs 2,67,490 crore, an official statement said here today. Corporate tax registered a growth of 38.78 per cent at Rs 1,38,073 crore, up from Rs 99,488 crore during the previous fiscal, while personal income tax (including FBT, STT and BCTT) grew by 45.64 per cent at Rs 90,356 crore, up from Rs 62,040 crore. Growth in securities transaction tax (STT) was 84.64 per cent (Rs 7,878 crore against Rs 4,267 crore) and fringe benefit tax (FBT) was 29.75 per cent (Rs 5,216 crore against Rs 4,020 crore). Banking cash transaction tax (BCTT) grew by 16.81 per cent (Rs 478 crore against Rs 409 crore). Mumbai region has recorded the highest overall growth at Rs 83,363 crore compared to Rs 50,227 crore in the same period last fiscal (i.e. 65.97 per cent) and its contribution to the direct tax collections in the country so far is 36.86 per cent. Among other taxes, self-assessment tax (paid voluntarily before filing of tax return) recorded a growth of 62.9 per cent while tax deducted/collected at source recorded a growth of 51.9 per cent, indicating improved tax administration and better tax compliance levels. |
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ATM withdrawals to be free: RBI
Chandigarh, February 20 Providing relief to millions of users, the RBI has also said from April 1, 2009, customers using the inter-bank ATMs (ATMs of other banks) for cash withdrawals or balance enquiries will not be charged any fee. As of now, customers have to pay Rs 50 as annual charges for using the ATM facility of their bank, while charges ranging from Rs 20-Rs 50 per transaction are levied for the inter-bank ATM transactions. Customers are also paying anything between Rs 10- Rs 20 for making balance enquiries through inter bank ATMs. Official sources in the RBI said use of ATM of a bank where one is a customer, has been made free with immediate effect. This includes the use for cash withdrawal as well as for making balance enquiries. Even the use of inter-bank ATMs for making balance enquiries will not entail any charges from now on. It may be noted that earlier the Indian Banks Association (IBA) had suggested that the number of free transactions to be allowed to customers using other banks’ ATMs be restricted to two per month. They had also suggested that the minimum cash withdrawal should be Rs 500, and a cap be fixed for the balance enquiry, so as to make these facilities free. However, the RBI has rejected these suggestions on the ground that this will ensure more transparency. Officials said the decision to make these services free was also taken as the spread of ATM network is uneven. Presently, banks in the country have deployed more than 31,000 ATMs across the country, which is almost 50 per cent of the branch network. |
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4 public sector banks cut lending rates
Mumbai, February 20 The other banks were Canara Bank, Bank of India and the Union Bank. This is the first time in the recent past that the banks had resorted to cuts twice in a month following Union finance minister P. Chidambaram and the Reserve Bank of India suggestion to the banks to consider a revision in the lending rates to ease the liquidity conditions. Private banks, including second largest lender ICICI bank, however, chose not to effect any change in the rate cut, and were awaiting the budget to take a decision. The SBI announced the downward revision by 25 bps to 12.25 per cent per annum from 12.50 pc p.a, today, which will be effective from February 27. Earlier in the day, Canara Bank announced a cut of 25 bps bringing the lending rate to 12.75 per cent. Bank of India (BoI) and Union Bank have also reduced PLR by 50 bps to 12.75 per cent. Going ahead, BoI also reduced consumer loan rates by 300 bps to 12.75 per cent and has reduced home loan rates by 75 bps to 9.75 per cent for loans up to Rs 20 lakh. Nevertheless, it happened at a time when normally the call money rate, the rate at which the banks really borrow money, was moving at a higher range-band between 6-8 per cent. Though, the PSU bankers seemed optimistic on their move and said they might increase their volume of business and other income to absorb the loss if it occurs. '' The rate cut will definitely have a short-term impact on the net interest margins of the PSU banks, which would go down in the last quarter of this fiscal comparatively,'' a senior SBI official said.
— UNI |
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RCom to list global company
Mumbai, February 20 The company today announced setting up of Reliance Globalcom, to be headquartered in London with an annualised start-up revenue of $1.32 billion, under which all its global operations would be consolidated. The new entity would target the fast-growing global telecom market with an annual addresseable revenue potential of $285 billion, the company said. "In creating Reliance Globalcom, we are aligning our global communications strategies into a single vision to create one of the top five global communications companies in the world," Reliance Communications chairman Anil Ambani said in a statement. "Reliance Globalcom, structured to serve the existing and emerging fast growing demands of our global customers, would add significant value for the shareholders of India largest and most-profitable telecom enterprise," Ambani added. It would have presence in over 50 countries, including the top 20 financial centers in the world. Further, RCom also announced the alignment of its subsidiaries. Yipes Enterprise Services Inc has changed its name to Reliance Globalcom Services Inc. and would now represent the enterprise division of the company. The product portfolio of FLAG Telecom, has been rebranded as 'Reliance FLAG'.
— PTI |
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Make balance payment, Rel Power to shareholders
Mumbai, February 20 "The balance amount was due on allotment and a notice for the same has been sent to shareholders to make the balance payment on or before February 26," Reliance Power said in a filing to the Bombay Stock Exchange today. By issuing the notice, the company has complied with SEBI guidelines, and all shares have been made fully paid up, Reliance Power added. Reliance Power's IPO had offered a discount to retail investors, and an option of staggered payment to all segments. Qualified institutional buyers were allowed to pay only 10 per cent initially, while high net worth individuals and retail investors were permitted to pay only 25 per cent of the total cost as initial payment. The remaining amount was to be paid after allotment of shares. According to the filing, in those cases where the balance amount remains unpaid after the stipulated date, "Reliance Power would keep the bonus shares in abeyance and the same shall be given to the respective holders upon receipt of call money". The record date for the bonus shares shall be fixed in consultation with stock exchanges and in compliance with provisions of the listing agreement.
— PTI |
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Cut interest rates for SMEs: Assocham
New Delhi, February 20 It has also sought excise reduction in excise levy for SME’s as most of their products fall under high excise slabs, ranging from 16 per cent to 24 per cent to a level of less than 12 per cent. In its pre-budget note submitted to the finance ministry, Assocham president Venugopal N. Dhoot said majority of SME’s payments are delayed because faulty deferred payment clause, which exceed even beyond six months. On top of it, the SME’s face sever liquidity crunch as banks and financial institutions insist on collateral and bank guarantee from them as result of which the interests cost to most SME’s go beyond 15-16 per cent. As a result, the SME’s have not been able to affect the capacity expansion to enhance their production levels and are gradually becoming ineffective to compete at times when modernisation and liberalisation have reached a transition. |
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‘Nano’ trial production to start by July: Kant
Singur (WB), February 20 Tata Motors managing director Ravi Kant, who was here today to review the progress of the construction of the factory along with other senior officials of the company, told reporters, "we are happy with the progress.... Trial production of the small car would start in June or July." Within two months of start of trial production, commercial production of the small car would begin in the second half of the next financial year, preferably in October, he said. Kant inspected various facilities such as press shop, welding shop, assembly line, engine and paint shop which were being put up inside the plant premises. Civil construction firm Shapoorji
Pallonji, Tata Motors and the West Bengal government were coordinating the work, he
said. — PTI |
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Maruti terminal at Mundra
Mumbai, February 20 The initial investment in the terminal is estimated at Rs 100
crore, of which MPSEZL will invest Rs 60 crore for setting up infrastructure at the port. Maruti Suzuki would invest the remaining for a pre-delivery inspection
centre, the company said in a communique to the Bombay Stock Exchange. — PTI |
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MBD Alchemie partners with IBM
New Delhi, February 20 MBD Alchemie will pump in Rs 100 crore in the next three to four years to make its e-learning portal a highly granulated content that will enable the learner to surf and cross-reference with a pool of resources, topics and subjects, MBD Group’s CMD A.K Malhotra said. The portal would be a “world-class knowledge portal using IBM technology for students, parents, teachers, institutions, government and corporates to access high quality educational content,” MBD Group’s senior
director Monica Malhotra Kandhari said. |
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MS to roll out Windows 2008 today
New Delhi, February 20 ''Microsoft has invested almost $150 million in the marketing initiatives to make it possible on a single day. This is a major event in the history of the company as such an event has never before taken place,'' Microsoft learning general manager Christopher Pirie told UNI. The company has already rolled out one million copies in the market and 300,000 persons have been trained on Windows 2008. Microsoft has also granted 13,000 certifications on the same. The company is partnering with 23 Indian companies to offer its expertise in technology and content.
— UNI |
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Wockhardt net soars
Ahmedabad, February 20 |
HCL buyout Aviva Life Insurance Kohli on GSMA board Welspun-Gujarat SEDF, Google plan TCS contract Sun stake in Taro Pharma IVRCL bags orders |
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