London/Mumbai, February 22
Recent signs that the world's biggest economy may be sliding into recession unsettled European and Asian stocks on Friday, and helped push the dollar to a near three-week low versus a basket of currencies.

Adding to worries was news that thousands of Turkish troops have crossed into northern Iraq in their hunt for Kurdish PKK guerrillas —the first major incursion in a decade that is set to heat up the geopolitical scene.

US data on Thursday showing mid-Atlantic factory production slumped to its lowest level since the 2001 recession, and an index of future US economic activity pointed to even tougher times ahead, had sparked a global selloff in stocks.

After the previous session's sharp fall though, Wall Street looked set for a steadier start on Friday with US stock futures trading just a touch lower.

The FTSEurofirst 300 index of top European shares fell 0.4 per cent while London's FTSE shed 0.2 percent. Germany's DAX was 1.2 per cent lower.

"The problem is you have a slowdown of the economy and in addition rising oil prices," said Achim Matzke, European stock indexes analyst at Commerzbank.

"That's why equity markets are cautious. From a technical point of view the European market is in a bear market."

Earlier, Japan's Nikkei lost 1.4 per cent, while MSCI's measure of other Asian stock markets slid 0.6 per cent. MSCI's main world equity index was 0.1 per cent lower.

With no major US data due on Friday, analysts said the near-term outlook for markets doesn't look promising.

Meanwhile, the Sensex also slumped by over 380 points on selling pressure, triggered by aggravating fears of recession in US.

The Bombay Stock Exchange 30-issue barometer resumed sharply lower at 17,515.62 points and remained in negative terrain throughout the day and touched a low of 17,294.73 points.

The key index finally closed the day at 17,349.07 points, a steep fall of 385.61 points, or 2.17 per cent, from its previous close of 17,734.68 points.

Similarly, the broader S&P CNX Nifty of the National Stock Exchange also declined by 81.05 points, or 1.56 per cent, to 5,110.75. Barring Taiwan, most of the other indices in the region ended with losses by an average of 0.2 per cent to 3.5 per cent.

Banking, IT and refinery counters suffered a sharp setback on heavy selling and ended with sharp losses. — Agencies

New Delhi, February 22
Costly food items pushed inflation rate to a six-month high of 4.35 per cent for the week ended February 9, justifying the cautious approach adopted by the RBI in its quarterly monetary review.

The data, however, did not capture the rise in petroleum prices announced on February 14. The government hiked petrol and diesel prices by Rs 2 and Re 1 a litre, respectively.

The wholesale price index-based inflation rate was at 4.07 per cent in the week preceding the one under review, and 6.52 per cent in the corresponding week a year ago.

This is the third week in a row when inflation rate is more than four per cent.

“Inflation going forward would move further as the data would reflect petroleum price hike,” Crisil principle economist D.K. Joshi said.

Other concerns remain the rising food prices and crude oil prices, he said. Even after taking a dip, global crude prices were ruling at $98 a barrel.

During the week under review, food articles like fruits and vegetables, condiments and spices, fish marines, arhar, bajra and barley became expensive.

Meanwhile, inflation figure for the week ended December 15, 2007, has been revised to 3.84 per cent from the provisional estimate of 3.45 per cent, as wholesale price index finally stood at 216.4 points as against the earlier calculation of 215.6 points. — PTI

New Delhi, February 22
Anil Dhirubhai Ambani Group (ADAG) has written a letter to market regulator, SEBI, alleging malpractice and manipulation in share prices on the first day of listing of the Reliance Power stock.

According to the company, Reliance Power stock opened on February 11 at Rs 530 on the NSE, and Rs 547.80 on the BSE, at 9.55 am.

Within just 4 minutes of the opening, i.e. by 9.59 am, the Reliance Power price was brought down to Rs 395 on the BSE and Rs 389.80 on the NSE. A decline of over 26 per cent from the peak opening price, resulting in devaluation of over Rs 30,000 crore in just 4 minutes.

Significantly, of the total 22.8 crore shares issued by Reliance Power, nearly 2.50 crore shares were traded on the BSE and NSE in these first 4 minutes, an unprecedented level of trading for that period.

According to the company, in several instances, the visible quantity of sale orders is much larger than the traded quantity, leading to the suspicion that large quantities were displayed to create panic, and then the quantities were withdrawn by cancelling or modifying the orders.

All of this, according to the company, points towards a distinct possibility of a pre-meditated manipulation of the Reliance Power order book to create a negative sentiment.

The company has written that visible sell orders were made at progressively declining prices, pointing towards a concerted attempt at hammering the price.

In addition to this, all stocks belonging to the Reliance ADA Group, i.e. Reliance Communications, Reliance Energy, Reliance Capital and Reliance Natural Resources, were subjected to the same vicious selling, bringing their prices down between 10 and 20 per cent in a single trading session, in a manner disproportionate to the overall decline in the market.

The company has alleged that after the business reorganisation of Reliance group in June 2005, certain vested interests, sponsored by a large Bombay-based industrial house, have resorted to dubious and under-hand means in an attempt to discredit the group.

New Delhi, February 22
Broadcast regulator TRAI today recommended that FM radio operators should be allowed to broadcast news and suggested increase in foreign direct investment (FDI) to up to 49 per cent.

At present, there is a 20 per cent ceiling on FDI in FM radio space and TRAI recommended that 26 per cent foreign investment can be allowed in radio channels that want to broadcast news and 49 per cent in non-news FM stations.

The FDI cap will also include funds received from Foreign Institutional Investors, TRAI said in its recommendation.

It suggested that FM radio broadcasters may be permitted to broadcast news using content from AIR, Doordarshan, authorised news channels, PTI, UNI and any other authorised news agency, the recommendation on third phase of private FM radio broadcasting said.

It also recommended lowering of annual fees by 50 per cent from the existing permission holders for private FM radio broadcasters in North East and Jammu and Kashmir region for an initial period of three years.

To encourage diversified content development, there should be no restriction on the outsourcing of content production as well as leasing of content development equipment, the regulator said. — PTI

New York, February 22
Reflecting the outsourcing prowess of India Inc around 20 Indian companies, including the likes of Infosys, Wipro and Tata Consultancy Services, are among the best in the world.

'The 2008 Global Outsourcing 100' list compiled by the International Association of Outsourcing Professionals (IAOP) has named about 20 companies based in India.

Among them are, India's top software exporters — Tata Consultancy Services, Infosys, HCL Technologies and Wipro Technologies, while Genpact, WNS and EXLService are leading BPO firms listed in the US.

The others figuring in the list are MindTree Consulting, Aditya Birla Minacs, Patni, Quest, Tech Mahindra, Mastek, KPIT Cummins, Convergys, Zenzar Technologies, First Source, ITC Infotech, Hexaware and 24/7 Customer.

The evaluation process for compiling the list mainly takes into consideration the size and growth in revenue of the company, its employees, centres and countries served, management capabilities, competencies and customer experience.

The list also features many foreign entities who have a substantial presence in India. Most of these companies are American such as Accenture, Cognizant Technologies, IBM, ADP, Xerox, CB Richard Ellis and Hewlett-Packard.

Other names include Cushman & Wakefield, Unisys, Hewitt and French firm Capgemini. — PTI

Chandigarh, February 22
As the finance minister readies the Budget proposals, the staggering farming community in the region is hoping for his largesse in the farm sector.

Farm economists, farm leaders and farmers are pinning their hopes that a sizeable percentage of the Budget is devoted to revival of the farm economy.

Hoping that the Budget will give a fillip to the sector and boost growth, farm economists and farmers hope that a mechanism of linking the minimum support price (MSP) of crops with the wholesale price index is announced.

They are also looking at a waiver of the agriculture loan to do away with rural indebtedness and giving impetus to the diversification from agriculture to dairying and animal husbandry.

Talking to The Tribune here today, Ajmer Singh Lakhowal, chairman, National Council of State Marketing Boards, and chairman, Punjab Mandi Board, says he hopes that like the Railway Budget, a separate budget for agriculture is made.

“After all, over 60 per cent of the population is dependent on agriculture and a sizeable portion of the budgetary allocation should be reserved for this sector. Considering the extent of rural indebtedness, farmers’ loans should be waived off and rate of interest on agriculture loans should be reduced to 4 per cent,” he said.

Supporting his views, R.S. Chauhan, a horticulturist from Kotkhai in Himachal Pradesh, says a one-time settlement scheme be introduced for setting farmers’ loans.

“The MSP should be linked to the wholesale price index and subsidies on tools, agricultural implements and plant material should continue,” he added.

However, Dr S.S. Johl, senior agriculture economist, feels that more budgetary allocations for the farm sector alone is not enough.

“The budget must specify the direction of use of these additional resources. The government should shift the emphasis from Punjab, Haryana and western Uttar Pradesh for feeding the country, to the Gangetic plains.

The shift should be in research and development, agriculture, procurement, developing infrastructure and land for tilling. Punjab, Haryana and western UP should be used for cultivation of high value crops like oilseeds and pulses,” he said.

Shamsher Singh Surjewala, president, All India Kisan Khet Mazdoor Congress, too, hopes that the Budget has an orientation towards farmers.

New Delhi, February 22
The Opposition today demanded constitution of a centralised regulatory authority on the pattern of the SEBI to save the common man from the malpractices in the real estate sector.

“There is a need of centralised real estate regulatory authority such as the SEBI, IRDA, TRAI and the RBI though it is too late for the government to wake up to protect small investors, who have already put their hard earned money and borrowed capital to get a home,” senior BJP leader and former union minister Murli Manohar Joshi told newspersons here.

“There has been mushrooming growth of builders and developers during a couple of years. Many property dealers and small contractors become developers and launch various housing and commercial projects across the country irrespective of their net worth, credentials, past track record and transparency of business activity,” he said, adding that “there is no agency/authority to check their contents and facts published for attracting the people at a large,” Joshi said.

The former BJP president said representatives of the investor cell of the party have sought an appointment with Prime Minister Manmohan Singh on February 26 to present him a memorandum in this regard.

He listed excess booking of plots/flats, preaching of schemes, booking of plots without owning land, charging higher rate on penal interest, delay in possession, charging unreasonable escalation cost, diversion of funds for their own use and luxury, and launching projects beyond their net worth and technical capability as other major problems afflicting the real estate sector.

Joshi also came down heavily on the Congress-led UPA government for what he called burdening the common man with EMI.

“Finance minister Chidambaram’s call to temper credit growth and moderate credit growth for realty sector is bound to affect the housing sector adversely. The finance minister’s new diktat will only worsen the situation and will burden the common man more,” he said.

On the unprecedented boom in the stock market and subsequent volatility, the BJP leader demanded a white paper from the government spelling out the kind of investment coming into the stock markets through participatory notes and details of the investors to clear the apprehension about hawala money entering the markets.

Sriperumbudur (TN), February 22
Hyundai Motors India Ltd (HMIL) is evaluating the feasibility of introducing a diesel and a CNG variant of its compact new offering - i10.

The petrol version of the small car is presently being manufactured for domestic and export markets at its recently inaugurated second plant within its existing plant here.

The new ultra modern plant would be fully commissioned by 2009, HMIL would be capable of producing 6,00,000 units per year, doubling its present capacity of 3,00,000 units per annum.

The new pant has been set up as a global manufacturing hub for all small cars in Hyundai’s stable. Ashok Jha, president, HMIL, said presently the new plant running was running a single shift and on an average it was producing 400 cars a day.

Around 25,000 units had rolled out ever since the i10 model was launched few months ago.

He said Santro, the lowest price in Hyundai’s stable, continues to be the most popular model.

“We will continue to produce Santro. Depending upon the customers’ feedback and surveys, we are constantly improvement wherever required,” Jha stated.

HMIL officials confirmed that the new plant had been set up by the leading Korean car manufacturer keeping in mind the growing segment of the small cars, especially after showcasing of Nano by Tata Motors.

Already 40 per cent of the cars being rolled up from the existing facility were being exported. Jha was, however, non-committal about the deadline for developing a smaller car than Santro.

On the new models to be launched this year, the company has announced to introduce the i20 model in the mid-size segment and Santa Fe in SUV segment.

Both products to be rolled out by the end of 2008 would be available in the domestic and export markets.

Santa Fe was popular in the US. Hyundai has also decided to phase out the Elantra. The company has invested Rs 1,419 crore in the second plan.