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Industrial growth slips to 3.8 per cent in May
Inflation rises to 11.89 pc
High inflation drags down Sensex
Oil at $146
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Relief to Corporates
Overseas retail franchise buy on ICICI’s radar
Infosys Q1 net up 21 pc
ATMs, mobile Cos turn to solar energy
Base price of 3G spectrum set to be hiked
NSA supervising BlackBerry talks
Airtel most innovative Co: WSJ
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Industrial growth slips to 3.8 per cent in May
This is the second month in a row this fiscal that the industry performed poorly with industrial growth, as reflected by the Index of Industrial Production (IIP), dipping to 5 per cent in April-May against 10.9 per cent a year-ago. Manufacturing grew by a modest 3.9 per cent in May against 11.3 per cent a year-ago. However, consumer durables came out from negative growth to show 4.4 per cent rise against a fall of 0.7 per cent in May 2007. Electricity generation, a key resource for the economy, plunged to 2 per cent from 9.4 per cent. "I think the downtrend will continue because of overall contraction in economy. Toplines are coming down because of higher interest rates and credit squeeze, while bottomlines are coming down because of higher wages," ICRIER director Rajiv Kumar said. However, mining output showed an upward trend, growing by 5.2 per cent in May against 3.8 per cent a year-ago. With inflation continuing to scale a new 13-year high and industry showing slackness, the RBI could be in a dilemma to boost growth or check inflation. "It (industrial slowdown) is a matter of concern . It will pose further dilemma for policy makers," Yes Bank chief economist Shubhada Rao said. However, other analysts opined that the RBI is likely to go for tighter monetary policy to contain inflation, which may further bring down industrial growth. Among the use-based classification, though the consumer durables emerged out of the negative growth, capital goods dived to 2.5 per cent in May from 22.4 per cent in the same period last year. Basic goods went southwards to 3 per cent in May, against 10.3 per cent. Intermediate goods grew at a slower pace of 1.2 per cent in May as compared to 8.8 per cent. The growth in consumer non-durables sector slowed down to 8.1 per cent from 12.1 per cent. In terms of industries, 11 out of 17 industries showed a positive growth. Among them, beverages, tobacco and related products grew at the highest pace at 31.1 per cent followed by transport equipment and parts which grew at 12.3 per cent. Basic chemicals and chemical products (except petroleum and coal products) rose to 9.5 per cent. However, food products, jute and other vegetable fiber textiles (except cotton), wood and wood products, rubber, plastic, petroleum and coal products and other manufacturing industries showed a negative growth. Inflationary spiral and plunging industrial growth have made the Finance Ministry revise its expectations for the economic growth to 8-8.5 per cent from 9 per cent in the last fiscal. Meanwhile, Citi group also said that India's economic growth would moderate below 9 per cent this fiscal. — PTI
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Inflation rises to 11.89 pc
On top of it, the Wholesale prices-based inflation reaching a new 13-year high, has added to the concerns of borrowers who fear that the Reserve Bank may go in for another hike in interest rates at its quarterly review on July 29. The inflation was at 4.42 per cent in the corresponding week a year-ago. Inflation rose on account of rising prices of coconut oil that soared by 11 per cent, mustard oil by five per cent, soya oil by four per cent, while fruits and vegetable, pulses, jowar and barley increased by one per cent each. Despite attempts made by the government to tame price rise, items like cement increased by over one per cent and edible oils by two per cent. However, the finance ministry said, "prices of essential commodities which include foodgrains, pulses, edible oils, vegetables, dairy products and some other commodities like kerosene, soap, safety matches more or less stabilised." ICRIER director Rajiv Kumar said that inflation control is the prime focus of the government and monetary authority. According to the Crisil Principal Economist D K Joshi, to anchor inflation, the central bank is likely to increase repo rate by a further 25 basis points and CRR by another 50 basis points on July 29.
— PTI |
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High inflation drags down Sensex
Mumbai, July 11 After opening higher, the markets took a knock on news that the industrial production for May fell to a six-year-low of 3.8 per cent, from the revised 6.2 per cent in April 2008. News on the price front was grimmer with inflation rising to 11.89 per cent. Among the major losers today included Infosys which fell more than 7.2 per cent despite announcing better than expected quarterly results. Following warnings of a tough business environment by the company, the IT index fell 6.73 per cent. The Capital Goods index was the other big loser shedding 5 per cent. Of the BSE-30 scrips, Ambuja Cements, HDFC Bank, Hindalco and Bharti Airtel closed in the green today while IT stocks like Infosys, Satyam and TCS were hammered. The biggest loser among the Sensex stocks was Jaiprakash Associates, which fell 8.5 per cent.
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Oil at $146
London, July 11 US crude was up $3.54 at $145.19 a barrel by 1150 GMT, off highs of $145.98, after jumping $5.60 or 4 per cent a barrel on Thursday in a late burst of buying activity. London Brent crude was up $3.64 at $145.67 a barrel. Leading the oil complex was ICE gas oil futures which climbed to a new record high of $1,335 a tonne amid strong demand for diesel and aviation fuel. Analysts said the threat of supply disruptions provided the bullish backdrop, as the demand picture was unlikely to change much until after the Beijing Olympics. Oil, which had been on the retreat for much of the week, reversed course on Thursday as fears of supply disruptions from potential hot-spots, OPEC members Iran and Nigeria, resurfaced. A spate of missile tests by Iran, the world's fourth-largest oil exporter, in the last two days against a backdrop of rising tensions with Israel and the USA has left the oil markets worried.
— Reuters |
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Relief to Corporates
Mumbai, July 11 "It is proposed that the existing timeline (within one month at the end of each quarter) may be extended to two months for those companies, which opt to submit to stock exchanges the consolidated financial results in addition to standalone financial results," SEBI said while seeking comments on the same by July 26. The regulator had received various comments on Clause 41 of the listing agreement relating to financial statements. It found that there were practical problems faced by companies having global operations in submitting consolidated financial statements and preferred longer duration to do so. Analysts welcomed the move saying it would bring in speedy corporate governance, greater transparency and would reflect the true position of companies. "It is a positive thing. It will help in reflecting the actual position of companies and will speed up corporate governance. SEBI has provided some relaxation and it is a good move," Nexgen Capital Equity head Jagannadham Thunuguntla told PTI. The market regulator also did away with the norm of submitting limited review report on un-audited quarterly financial results by a company before its board of directors as it was "strenuous". — PTI
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Overseas retail franchise buy on ICICI’s radar
Mumbai, July 11 "We are interested in acquiring a retail banking franchise in some of these markets, consistent with our articulated strategy of building a sustainable retail deposit base as a key element of our international business," ICICI Bank's joint managing director Chanda Kochhar said here. However, the bank was not considering picking up minority stakes in financial institutions overseas, Kochhar said. "As in any large organisation, we evaluate the business environment and possible strategic opportunities on an ongoing basis. However, we would not be interested in acquiring minority stakes," Kochhar said. While the western economy present acquisition opportunities given the prevailing market conditions, such opportunities will come with certain challenges, Kochhar said. — PTI
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Infosys Q1 net up 21 pc
Bangalore, July 11 “Although the global economic environment continues to remain uncertain and could impact IT spending in the short-term, we see several opportunities for growth”, Infosys CEO and managing director S Gopalakrishnan said. The growth of the Indian software services sector showed signs of slowing down owing to recession in the US, increase in the value of rupee and increasing salary of employees. However, Infosys hired 7,182 employees for the quarter ending June 30. The total strength of the employees of Infosys and its subsidiaries rose to 94,379. When other IT firms were reducing their bench strength to increase efficiency, Infosys said its hiring was as planned. Margins for the quarter were, however, affected due to increase in salary and visa costs, which, to some extent, were offset by rupee depreciation, it said. The consolidated total income of Infosys rose to Rs 4,971 crore in the June quarter from Rs 4,026 crore in the corresponding period last year. As many as 49 new clients were added during the quarter by Infosys and its subsidiaries. Despite the global uncertainties, the IT major expects its income to grow by 27 per cent during the year. |
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ATMs, mobile Cos turn to solar energy
Chandigarh, July 11 As financial inclusion becomes the new mantra for growth in the banking sector, and banks try to reach out to rural masses, they are increasingly turning to solar energy for powering their ATMs and branches in rural areas, especially in areas where there is no power supply. Mobile service providers, too, are now testing on how to run their towers on solar power, as the cost of captive power generation goes prohibitive because of high cost of diesel. State Bank of India, Punjab National Bank, Bank of Maharashtra, Indian Bank, and, Jammu and Kashmir Bank are not just running their ATMs on solar power, but are also running a number of bank branches on solar energy (along with the electricity supply). Idea and Airtel, too, are trying out the use of solar power for running their mobile towers. The twin towers of both companies are now trying to operate their twin towers near Joshimath on solar energy. Sanjay Kulkarni, proprietor of Pune-based Urja Electronics, says that so far they have already put 120 bank ATMs across the country on solar energy. “As power availability becomes an issue, there is a huge scope for ATMs and bank branches running on solar power. We have helped SBI set up an ATM to run on solar energy at Leh, while an entire bank branch of PNB now uses solar energy as an alternative to electricity in Leh and Zadibal in Srinagar,” he said. Kulkarni said by March 2009, his company would install solar energy panels to run 250 ATMs across the country.
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Base price of 3G spectrum set to be hiked
New Delhi, July 11 "We have agreed to the DoT's recommendations that the reserve price should be raised," TRAI chairman Nripendra Mishra told reporters here, adding that all successful 3G bidders will have to match the highest bid. The response from TRAI comes after the DoT had insisted that there should be an open auction for the 3G spectrum with all-new, old and foreign-players being allowed to make a bid. TRAI had initially opposed the move and said the 3G services should be kept reserved for the existing players, who, with their existing infrastructure, would be in a better position to role out the services much faster than the new players. DoT has proposed to raise the base price for auction to about Rs 2,200 crore for a pan-India licence. Earlier, the minimum bid price for a pan-India licence was Rs 1,400 crore for 3G. Incidentally, the regulator was also not in favour of raising the reserve price. But DoT asked the regulator to reconsider its earlier recommendations that the reserve price of spectrum should not be raised. DoT had also asked TRAI to reconsider its recommendation of not allowing new players in the bidding process of 3G spectrum auction. Commenting on TRAI’s views on allowing the new players, Misra said, “I strongly believe that only the existing licensees be permitted to participate in the auction, but DoT is competent enough to take a final call". The Government has already put in place the terms and conditions for the auction of the 3G spectrum and would allow new players including foreign ones to take part in the auction and raised the reserve price for pan-India auction. The regulator added that it has accepted DoT's suggestion of raising the reserve price of Broadband Wireless Access spectrum auction. TRAI today also released the recommendations on the “Allocation and Pricing for the 2.3-2.4 GHz, 2.5-2.69 GHz bands and 3.3-3.6 GHz bands, which were not available earlier when the pricing of the 3G spectrum were decided.
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NSA supervising BlackBerry talks
New Delhi, July 11 With the Department of Telecom (DoT) suggesting an upgrade of the technology with the security agencies to encrypt the messages sent on the Research in Motion (RIM) manufactured BlackBerry rather than stopping the service on the mobile handset, the ball now seems to have been pushed into the court of the National Security Adviser (NSA) to come out with a solution to the satisfaction of all involved parties. According to telecommunications minister A. Raja, the NSA is now supervising the discussion to find a solution to the controversial services. NSA is overseeing the discussion National Test Research Organisation (NTRO), under the home ministry, along with DoT is holding with smartphone maker Blackberry to find a solution. "We are insisting for a (BlackBerry) server in India to take care of security agencies concern. But technically and commercially what will be the impact on the Blackberry also has to be taken into consideration and it is being taken," Raja said. The comments from Raja comes days after DoT suggested that the security agencies must upgrade its interception and deciphering facilities rather than oppose new technologies. It has also circulated an internal note where is has stressed on the need that MHA must find encryption solutions for BlackBerry services to address security issues. The response from DoT apparently came after some of the other companies came forward to provide the encryption solutions following refusal from RIM to put up a server in India, which would help the security agencies to intercept the data being transmitted from BlackBerry.
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Airtel most innovative Co: WSJ
New Delhi, July 11 However, Bharti Airtel and the country's biggest private sector lender ICICI Bank have scored over the IT majors in terms of innovation with their top two positions, found a survey of Wall Street Journal (WSJ) Asia readers. As part of compilation of a broader list of 200 most admired companies in Asia, the publication on Friday released the list of 10 most admired companies as well as top ten innovators in India. — PTI
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Reliance Money buyout ArcelorMittal’s clean tech fund Rs 3,000-cr orders for Welspun Jet to fly to Dubai SBI honours its officers Catmoss to invest Rs 400 cr Max-Bupa Finance Plc JV BHEL gets Rs 2,175-cr order
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New Delhi, July 11
New Delhi, July 11
