The Tribune, Chandigarh, India

	Dubai crisis roils Sensex Tribune News Service & PTI Mumbai, November 27 The Sensex took a roller coaster ride swinging almost 650 points as panic-stricken investors, afraid of the Dubai crisis causing a repeat of last year's meltdown, offloaded stocks early in the session before a semblance of sanity was restored. The benchmark index swung between 16,718 and 16,210 points closing at 16,632, down 222 points at close. In the broader markets, the Nifty closed 63 points lower at 4,941 after hitting a low of 4,806 points. Among the Sensex stocks, the major losers included JP Associates, which fell 3 per cent to close at Rs 214 while L&T was down 2.7 per cent at Rs 1,586. Gainers included Bharti Airtel and Hero Honda, which closed 0.5 per cent higher. Of the sectoral indices IT, capital goods, banking and metals stocks were the major losers. The BSE IT index was down 2.2 per cent while the capital goods fell 1.8 per cent and the BSE Bankex lost 1.4 per cent. Reacting cautiously to Dubai debt crisis, markets today recovered from day's steep losses, with investors and economists foreseeing India perhaps gaining on the latest unravelling in the financial world. Continuing its overnight sharp losses, the Bombay Stock Exchange benchmark Sensex opened lower and in a knee-jerk reaction to Dubai debt repayment crisis further posted a sharp over 600-point losses on aggressive selling, primarily in realty and banking counters. However, the trend was quickly reversed after the government said the crisis should not have any major impact on factors like employment and exports, which boosted the investor confidence. The Reserve Bank also said developments and the extent of the problem need to be studied which also boosted the confidence. Marketmen said the impact of Dubai crisis on bourses, especially in India, would be short-lived as the exposure of the India and Indian corporate to Dubai was not significant. "It is unlikely to deter the liquidity flows towards the Indian bourses, which provides the global investors an exposure to the high growth and profitability destination. Hence investors should use the opportunity provided from the knee-jerk reaction of the markets to enhance exposure to equities," said Angel Broking CMD Dinesh Thakkar. The Finance Ministry said the financial crisis in Dubai may not impact remittances sent by Indian expatriates in the Gulf, helping reversing the trend. Brokers said buying by domestic funds, led by Life Insurance Corporation at the end of the session, mainly arrested further fall. Bourses across the world plummeted yesterday on Dubai World, a state-run company seeking extension of time for repaying $59 billion to creditors. Asian stocks extended losses as the latest concern has triggered worries about the health of global financial system. Key benchmark indices in China, Hong Kong, Singapore, Japan, South Korea and Taiwan ended sharply lower by between 1.10 per cent to 4.84 per cent.
	Global markets tumble Beijing/London, November 27 Stock markets worldwide tumbled for the second day on Friday as rattled investors resorted to panic selling following the credit crisis in the once-financially strong Dubai. The Asian markets were battered badly on Friday as well with the shares of financial institutions and real estate sector tanking the most as investors turned jittery over the concerns of the debt crisis. Japan's Nikkei 225 lost 3.21 per cent to close at 9,081.52 points, Hong Kong's Hang Seng lost close to 4.84 per cent, Shanghai closed lower by 2.36 per cent and South Korea's Kospi Composite shed 4.6 per cent. Meanwhile, extending yesterday's losses, the European markets stretched its losses for the second consecutive day with London's FTSE 100 index dropping over 15 points or 0.29 per cent at 5,179.01 points in the opening trade. The Frankfurt DAX index was also down 0.7 per cent at 5,576.73 points, while the CAC-40 Index of Paris shed 0.08 per cent at 3,682.02 in the early trade. Though the US markets were closed yesterday and will remain shut today too for the Thanksgiving Day, Dow Futures were down nearly 200 points early this evening.— PTI
	Govt promises to bring Dubai World out of crisis Dubai, November 27 The Dubai government today promised to pump in all necessary resources to ensure long-term success of Dubai World, even as the state-owned investment holding firm's huge debts adversely impacted the markets world over. "We want to ensure resources are deployed in the full knowledge that they are used to enhance the businesses of the Dubai World Group, build on the restructuring that has already been taking place and ensure long-term commercial success," Dubai government's Supreme Fiscal Committee chairman Shaikh Ahmad Bin Saeed Al Maktoum said. "Our intervention in Dubai World was carefully planned and reflects its specific financial position," Gulf News quoted Shaikh Ahmad as saying in the statement. "The government is spearheading the restructuring of this commercial operation in the full knowledge of how the markets would react," he added. Dubai World, which manages and supervises a portfolio of businesses and projects for Dubai government, yesterday said it would ask creditors for a "standstill" on paying back its $59 billion debt until at least May. Global markets went into a tailspin on Dubai crisis. The FTSE 100 in London suffered its worst single-day dip since March, while Asian exchanges also fell sharply. After a fall of over 340 points yesterday, Indian stock market today lost over 600 points in initial trade, but recovered sharply and closed with a 223-point loss. — PTI
	Rupee loses 20 paise Mumbai, November 27 The Indian rupee weakened by 20 paise to close at 46.64/65 a dollar after hitting the 47-level due to the month-end importers demand for the US currency amid weak equity markets. Dealers said the domestic currency came under pressure due to fears of capital outlows by foreign funds as equity markets tumbled after Dubai debt crisis. Asian stocks slumped as the Dubai-debt shockwaves hit the region, shaking banking shares and pushing yen to a fresh 14-year high against struggling dollar as investors unwound risky trades. Indian benchmark Sensex dropping by 222.92 points, or 1.32 per cent, weighed on the rupee sentiment. Oil refiners bought dollars for their monthly import payments which affected the rupee-dollar value. The rupee resumed lower at 46.85/87 a dollar and dropped further to 47.07 per dollar before ending at 46.64/65 per dollar.— PTI
	Oil companies for freeing petrol, diesel prices New Delhi, November 27 Reliance Industries and Essar Oil were today joined by state-run IOC and ONGC in criticising the government's 'hotchpotch' fuel pricing policy that had ruined public sector firms and state finances, and demanded freeing of petrol and diesel prices immediately. The ad hoc policy had driven private firms out of business, loaded future generations with Rs 150,000 crore bonds to repay, discouraged conservation, starved fuel retailer of cash and robbed firms like ONGC of Rs 50,000 crore that it could have invested in acquiring oil assets. The companies vented out their frustration to the Expert Group on Fuel Pricing headed by Kirit Parikh, the third panel on the issue with recommendations of previous C Rangarajan committee and BK Chaturvedi committee not fully implemented. In separate presentations, Reliance, Essar and Royal Dutch/Shell demanded a level-playing field with PSUs by either freeing petrol and diesel pricing or be given subsidy at par with state-run firms. Freeing prices would mean a Rs 3.85 a litre increase in petrol and Rs 3.71 per litre hike in diesel rates. Indian Oil chairman Sarthak Behuria favoured freeing auto fuel pricing but wanted the government to first commit upfront to meet in cash the revenue lost on selling LPG and kerosene. ONGC said it was willing to share fuel subsidies but the mechanism should be transparent wherein incremental revenues it earned beyond a pre-decided threshold can be automatically parted for the same. Finance Secretary Ashok Chawla, who is part of the five-member panel, skipped the meet and sources said the group may take one month to give its report. Essar said time was appropriate for complete deregulation of auto fuel prices as oil prices had stabilised in the $70-80 a barrel range and rupee appreciation against dollar. It suggested Philippines Model where free pricing of petrol and diesel is allowed within an agreed band. Flexible duty structure comes in force in case of breach of band — rates coming down if prices spike and vice-versa.The other option could be Grid-Based Price changes where oil firms are allowed to freely price fuel if crude stays between $50-70 a barrel range. In case it climbs to $70-80 range, partial increase of Rs 2 a litre is allowed and remaining revenue loss for all private and public met by the government. The three private firms said oil sector was the only sector where subsidy was limited only to public sector firms, driving private competition out of business. "If prices are not freed, private sector should also be treated at par with PSUs (and given subsidy)," Reliance said.— PTI
	Core sector growth slows to 3.5 pc in Oct New Delhi, November 27 Core sector growth slowed down to 3.5 per cent in October against over 4 per cent in the preceding month and around eight per cent in August, as crude oil production continued to contract and steel as well as cement failed to show robust growth. "I would have expected the overall growth to be a little higher," Prime Minister's Economic Advisory Council chairman C Rangarajan said here. Crude oil production declined by 2.2 per cent at 2.85 MT from 2.91 MT a year ago. Core industry grew by just 3.5 per cent in October despite low base of two per cent last year. It was in October last year that the impact of deepening financial crisis was felt on the domestic industry. Not so impressive growth rate in core industries implies that industrial growth could be in single digit, principal economist at Crisil DK Joshi said. For the first seven months of this fiscal till October core sector grew by 4.7 per cent against 3.3 per cent in the year-ago period. Core sector contributes to over 26 per cent to the IIP. However, some sectors like petroleum refinery, power generation and coal production did not perform as badly. The petroleum refining grew by 7.2 per cent in October against 5 per cent a year ago. "The productive sectors, other than crude oil have shown a rise. This is consistent with the forecast, we have for manufacturing growth rate of 7.7 per cent (this fiscal)," Rangarajan said. Petroleum refinery products grew by 7.2 per cent at 13.26 MT compared to 12.37 MT, electricity generation grew by 4.7 per cent at 65,246 million kwh compared to 62,338 million kwh and coal production grew by five per cent at 42.49 MT from 40.45 MT. "Increase in the domestic demand is visible," Commerce and Industry Minister Anand Sharma said. Finished steel and cement sector also did not perform robustly. Finished steel production was up by just 1.1 per cent at 4.5 MT from 4.4 MT, while cement output rose by 5.3 per cent at little over 16 MT from 6.2 per cent at 15.26 MT a year ago. "Cement and steel are the cause of concern because of their link with construction industry. Since the construction industry has been doing fairly good, this could affect our overall growth rate if production does not improve," HDFC Bank chief economist Abheek Barua said. — PTI
	Sharma pitches for ban on cotton exports New Delhi, November 27 Commerce and Industry Minister Anand Sharma today pitched for ban on cotton exports stating that the interest of domestic textiles industry has to be protected by encouraging valued-added global trade. He said the Directorate General of Foreign Trade has been asked to examine the stock availability. "If there is not exportable surplus of cotton, we will not export," Sharma told reporters here. The interest of the domestic industry has to be protected, he said, adding, the farmers' interest can also be protected if the country encourages exports of value-added textiles rather than raw material. The textile industry has been lobbying hard with the government for a ban on cotton in view of a sharp increase in the prices of the textile raw material. However, after supporting the industry line, Textile Minister Dayanidhi Maran had on November 25 said the country still has surplus and the natural fibre has to be exported. "Our domestic consumption is 240 lakh bales (one bale is equal to 170 kg), we have 305 lakh bales. There is surplus (and therefore) we have to export," Maran had said. Minister of State for Agriculture KV Thomas had also opposed ban on cotton exports. — PTI
	MS to launch Indian languages software soon Tribune News Service Hyderabad, November 27 Microsoft India Development Center (MSIDC) here has developed a set of tools which would help users enter Indian language text into their computers. The tools initially support Hindi, Bengali and all four South Indian languages - Telugu, Kannada, Tamil and Malayalam. These tools have been developed by their emerging markets team. The technology can be used to support syllabic languages other than Indian languages. The beta version would be released soon as a free download, the managing director and corporate vice-president of MSIDC Srini Koppulu told a press conference here yesterday.
	RCom triggers another price war Now, SMS at 1 paisa Tribune News Service New Delhi, November 27 Anil Dhirubhai Ambani Group (ADAG) company Reliance Communications (RCom) today unleashed another price war in the telecom sector by coming out with a plan which would offer its customers the opportunity to send SMS at one paisa. The plan brought out by RCom would definitely force the other telecom operators to follow suit just like in the case of the calls where after Tata Docomo offered a plan of one paisa per second call forcing the others to follow. In a statement issued here, RCom said it would charge customers just one paisa per SMS in a new bill plan. The company also launched another plan where customers can send unlimited text messages by paying Re 1 a day. Currently, operators charge between 50 paise and Rs 1 for local and national SMSes. According to RCom, the new SMS tariff plans are add-on plans and are applicable for all Reliance Mobile customers irrespective of CDMA or GSM network as well as pre-paid and post-paid customers. “SMS continues to grow every year with more and more innovative ways of utilising its potential coming in the forefront. Indians are using SMS as a mode of communication to keep in touch with friends and family. With select subscriber groups, SMS is a preferred communication mode over voice calls. On account of significant tariff disparity in the recent months, it has lost its due share of attention. Considering this, Reliance Communications with its first-in-the-industry initiative, aims to revitalise SMS usage in the country”, said Mahesh Prasad, president, Reliance Communications. All Reliance Mobile customers can avail of the one paisa per SMS plan by subscribing to a standard tariff voucher of Rs 11 per month. The unlimited SMS plan can be subscribed to on a daily deduction of Re 1 per day from their pre-paid balance. RCom said the tariffs were applicable for non-commercial use only. To prevent these attractive SMS tariffs being misused by telemarketers, a fair usage cap of 15,000 SMSes per month has been kept.
	Steep export decline arrested; outlook positive New Delhi, November 27 India's exports, which saw the steepest fall of 39.2 per cent in May at the height of the global financial crisis, stands arrested at 6.6 per cent in October, and the government said it would provide more support to select segments in December. "We have succeeded through policy interventions and incentives to arrest the steep decline. The government, which is carefully monitoring the developments will intervene, if required..." Commerce and Industry Minister Anand Sharma told reporters before leaving for Geneva today for the WTO Ministerial Meeting. After dropping by 39.2 per cent in May this fiscal, exports fell at a much slower pace for the past five months, suggesting recovery in demand in major markets. "Hopefully the worst is behind us," Sharma said, adding that his ministry will be completing the sectoral analysis in the next few weeks and the segments, which still require more help would be given. However, he did not elaborate whether it would be another 'fiscal stimulus' for the chosen segments. Exports of gems and jewellery, petroleum products, drugs and pharmaceuticals, chemicals, iron ores, cotton yarn and fabrics,leather and marine products have shown positive growth. However, engineering and electronics exports remain areas of concern. —PTI
	Numeric Power opens 2nd plant at Parwanoo Ambika Sharma Parwanoo, November 27 UPS maker Numeric Power Systems Ltd today started operations of its new plant here. This is the second plant of the company here, which was inaugurated by its managing director R. Chellappan. While talking to The Tribune, the MD said they would take their solar energy-based solutions to 200 sites to provide continuous and clean power. The company’s first plant is operational here for the past four years. While serving the northern markets, the plant helped them add a modest 5 per cent to their profit margins and at least a similar margin was expected from the second plant.
	IOC to invest Rs 4,650 cr New Delhi, November 27 Indian Oil Corp, the nation's largest oil firm, will invest Rs 4,650 crore in laying crude oil and petroleum product pipelines over the next three years, Minister of State for Petroleum and Natural Gas Jitin Prasada said yesterday. IOC is implementing crude oil pipeline projects worth Rs 3,168 crore and product lines of Rs 1,482 crore, he said in a written reply to the Lok Sabha. "The projects are expected to take 30 to 36 months from the date of investment approval by the Board," he said. — PTI