The Tribune, Chandigarh, India

World stock markets in the red
European debt, poor US job data shockers

London, February 5
Global stock markets went into a tizzy today and Asian markets slumped as much as 3 per cent as investors were spooked by mounting fears of sovereign debt crisis in Europe and gloomier US labour market data. After the bloodbath on the Wall Street yesterday, most of the Asian markets tumbled on weak global cues, while the European shares began on a jittery note, with the London Stock Exchange's benchmark FTSE 100 dropping over 1 per cent to 5,077.04 points in early trade.

Following poor weekly job market data and lower-than-expected earning numbers, Dow Jones dropped 2.6 per cent, while key European markets lost more than 2 per cent, yesterday.

The latest American job data showed that the number of people seeking jobless benefits surged to 4,80,000 last week, heightening the worries about the strength of the fledgling global economic recovery.

Reflecting the growing investor worries about the ability of European countries like Greece and Portugal to plug their deficits, European markets continued to skid today after a free-fall yesterday. Compounding the investor worries was the mounting jobless data in Spain.

European debt concerns were triggered by the poor demand for Portuguese government bonds, which reignited fears that countries like Portugal and Greece will struggle to fund their national deficits. Greece is struggling to find ways to service its debts. — PTI

Gold loses Rs 410

New Delhi: Gold suffered the biggest fall of the year so far today here and lost Rs 410 to reach Rs 16,390 per 10 grams on frantic selling sparked by a steep fall in global markets.

Standard gold and ornaments plummeted by Rs 410 each to Rs 16,390 and Rs 16,240 per 10 grams, respectively, while sovereign lost Rs 100 at Rs 13,900 per eight-gram piece.

The precious metal in the overseas markets, whose price sets the trend on the domestic front here, plunged to its lowest in three months as the dollar’s rally reduced gold's appeal as an alternative investment. The US currency rose to its highest in more than eight months against the euro amid concerns of widening government deficits that may hamper economic recovery in Europe. — PTI

Re down 48 paise

Mumbai: The rupee today plunged by 48 paise to 5-week low of 46.73/74 against the US dollar amid the US currency surging to a fresh high level against its rival euro in the overseas foreign exchange market.

Global shares hit three-month lows and the euro fell to an eight-month low against the dollar today as euro zone sovereign debt problems ahead of US jobs data led investors to dump risky assets.

Forex dealers said the sharp fall in local equities and good dollar demand from banks dragged down the Indian currency. The dollar index, a measure of its performance against six major currencies, rose as high as 80.283, its highest in seven months.

At the Interbank Foreign Exchange market, the domestic unit opened lower at 46.50/52 against the overnight closing level before ending at 46.73/74 per dollar. — PTI

Sensex sinks below 15K

Mumbai: Worries about yet another global economic meltdown hammered down the stock markets around the world. The Sensex fell 434 points to close at 15,790 while in the broader markets, the Nifty was down 126 points at 4,718.

Of the Sensex stocks, only Tata Power closed in the green gaining 0.80 per cent. Major losers included Hindalco, down 5.51 per cent, Tata Steel, down 4.65 per cent, ONGC, down 4.54 per cent, Jaiprakash Associates, down 4.46 per cent. Others like Mahindra & Mahindra and Reliance Industries also were today's major losers. — TNS

Montek bats for Parikh Panel

New Delhi, February 5
The Planning Commission today said that decontrolling fuel prices would not flare up inflation rather it would soften generalised rise in prices. "It (decontrolling fuel price) will not flare up the inflation. I just think that it is not sustainable to have prices those are not line with the world prices," Planning Commission Deputy Chairman Montek Singh Ahulwalia told reporters here.

"By keeping the price of petroleum down, you are actually bearing a subsidy that causes a generalised rise in price ... if you get rid of the subsidy, there will be rise in petroleum prices but it will soften the generalised rise in prices," Ahluwalia said.

"It (freeing fuel price) is there in the integrated energy policy, we had said that any policy that does not link petroleum and diesel price to evolving trend in world price is absolutely unsustainable. So I agree with the recommendation of the (Kirit Parikh) committee," he said.

Earlier on Wednesday, an expert group, headed by former Planning Commission member Kirit Parikh, suggested freeing of fuel prices.

At present, the government does not allow state-run fuel retailers to fix petrol, diesel, kerosene and LPG prices in line with international cost, resulting in huge revenue losses for the companies and subsidy burden on the government. — PTI

Toyota mulls recall of Prius

Tokyo, February 5
Damage to Toyota's image is growing by the day with the automaker now considering a US and Japanese recall of Prius hybrids - the vehicle that's a symbol of its technological prowess and green car ambitions.

The beleaguered automaker faces probes of brake problems with the latest model Prius in the US and Japan but remains tightlipped about adding the gas-electric hybrid to the millions of cars it has recalled. Toyota is also investigating possible brake problems with its luxury Lexus hybrid.

Nihon Keizai, Japan's top business newspaper, said today Toyota Motor Corp would soon notify Japan's transport ministry and the US Department of Transportation of a recall of 2,70,000 Prius hybrids.

Toyota said it was considering a recall but no decision had been made. "Nothing has been decided on whether we will recall or not," spokeswoman Ririko Takeuchi said.

Some owners of the 2010 Prius have reported their brakes do not always engage immediately when they press the brake pedal or that the brakes have an inconsistent feel. The problem has been fixed with a software programming change for Prius vehicles sold in Japan and overseas since late January but not for vehicles sold before then.

The US National Highway Traffic Safety Administration said it would assess the scope of the problem in the Prius and the safety risk to about 37,000 cars that could be affected.

Toyota, however, has said it sold 1,03,000 of the new Prius in the US since May last year. — AP

Venus Remedies to tap Ethiopian market
Ambika Sharma

Solan, February 5
Venus Remedies has received yet another Good Manufacturing Practices (GMP) approval from the Ethiopia Drug Administration and Control Authority (DACA) for four of its facilities, oncology liquid, oncology lyophilized, dry powder cephalosporin and dry powder carbapenem.

With this GMP certification, the company expects to tap a big geography of Africa. Ethiopia has 80 million inhabitants which is estimated to cross 100 million by 2015. The company is expected to generate a good business from the Ethiopian pharmaceutical market, which is estimated to be $ 200 million, with the imports occupying 85 per cent of the market, said a company spokesman.

The imported finished products in the country are less expensive compared to locally produced medication as there are nil or low import duties on end products.

Ethiopia is expected to become the third-largest sub-Saharan economy by 2023 and its GDP is expected to grow from $ 70 billion in 2008 to $ 472 billion by 2023, according to an Ernst & Young report of October, 2009.

Venus today possess 59 international GMP certifications from different countries of the world for its nine super-speciality injectable manufacturing facilities.

Venus has filed 10 dossiers for oncology, cephalosproin and carbepenem products in Ethiopia. The registration will now be expedited after company registration and approval to be GMP compliant by their regulatory body DACA.

MNCs on hiring spree
Placement fest at engg college from Feb 9
Tribune News Service

Jalandhar, February 5
As the economy across the globe is showing signs of recovery, MNCs have started recruiting the fresh blood to meet their requirements. Most companies have already disclosed their major expansion plans for which they require multi-skilled professionals.

As many as six MNCs will make recruitment at the placement festival, which will be held from February 9 to Feburary 18 by the Chandigarh Group of Colleges (CGC), Landran, on its Gharuan campus. One of the leading software development company based at Chandigarh will offer job profiles on February 10 for B.Tech computer science and electronics students along with MCA students of the 2009 batch.

Students who have secured 65 per cent marks throughout in their academics from educational institutions of northern India such as PEC,Chandigarh, Thapar Institute, Patiala, NIT Jalandhar, NIT Kurukshetra, BITS Pilani, GNDU Amritsar and UIET Chandigarh, along with students from CEC Landran will be eligible for this placement drive, offering package in the range of Rs 3 lakh to the selected ones.

Satnam Singh Sandhu, chairman, and Rashpal Singh Dhaliwal, president of the CGC, said with the preparation for Commonwealth Games in full swing, the hospitality industry in India was heading for major expansion in the current year. The Indian hotel industry need of 94,000 professionals in order to cater to the ever-growing demand of booming tourism industry in the country. Sandhu said keeping in view the influx of tourist in the next few months, the Jaypee Group would conduct placement drive on February 11 for students of hotel mangement courses of the 2009 and 2010 batch on the campus.

Naukri.com will offer job options for Graduates (BA, B.Com., BCA, B.Sc., Hotel Management & MBA) of the 2009 and 2010 batch on February 9. I-Gate will be at CGC-Gharuan on February 15 to conduct placement drive for which graduates (BA, B.Com. BCA, BBA, B.Sc., Hotel Management & MBA) of the 2008 and 2009 batch would be eligible to appear, said Sandhu.

Genpact will hold its joint campus drive on February 18 at Ghauran in which B.Tech Computer Science and Electronics students of the 2009 batch will be eligible to appear.

Sandhu said in January more than 18 companies selected 162 CGC students. Among the prominent companies which selected the students were TCS that selected 54 students and Zensar Technologies picked 34 CGC students. Other companies like India Mart, Hotel Radisson, Hotel Taj, Morepan Labs, Godrej Ambuja Cements, OATI were among the major recruiters of the students during that month.

PM refers BSNL to Pitroda panel
Tribune News Service

New Delhi, February 5
Within days of the BSNL employees association writing to the Prime Minister’s Office and Communications Minister A. Raja meeting Prime Minister Manmohan Singh, seeking his intervention on BSNL, the matter of the expansion of the PSU’s line capacity has been referred to the Sam Pitroda committee.

Reports said taking a serious view of the delays which the BSNL has been facing on its expansion plans, Prime Minister Manmohan Singh has asked the Department of Telecom (DOT) to refer the controversial tender issue to the Sam Pitroda committee for urgent consideration.

Manmohan Singh had constituted a committee under Pitroda last month to look into the functioning of the BSNL and the MTNL. Noted banker Deepak Parikh and the Telecom Secretary are also members of this panel.

Manmohan Singh's directive comes after Raja had met him last week seeking his intervention in the wake of objections raised by two of the BSNL directors over procedures followed in the emergence of two suppliers getting qualified for the expansion tender and the Central Vigilance Commission (CVC) also coming into the picture.

Raja at his meeting while seeking early resolution of the BSNL's tender controversy had pointed out that the corporate rivalry was affecting the decision making process in the BSNL.

The BSNL had invited bids for GSM equipment for 93 million lines at an estimated investment of over Rs 36,000 crore but the PSU could not place the orders even after 20 months of tender due to various issues, including legal battles.

Nokia Siemens Network (NSN) was disqualified on technical reasons, leaving only two equipment suppliers-- Ericsson and Huawei -- in the fray.

Ericsson had emerged the lowest bidder for North and Eastern regions while Huawei for the Southern zone.

The matter was referred to Chief Vigilance Commission (CVC) even as the two high courts had upheld NSN's disqualification. The CVC is understood to have asked the BSNL to go for either snap tender or short tender.

"Against this background, it will be appropriate if the Secretary, DoT, is directed to place the CVC's letter before this committee (Pitroda) for its urgent consideration and early recommendations," PMO said.

Amara Raja plans AC, washing machine

New Delhi, February 5
Amara Raja Electronics today said it would invest Rs 30 crore in the next fiscal to expand operations in the UPS category and also plans to foray into other consumer durable segments like washing machines and air conditioners over the next few years.

"We invested Rs 30 crore in this fiscal to expand the capacity of our UPS inverter unit near Chittur (Andhra Pradesh) to one million UPS units. We intend to invest another Rs 30 crore in the coming fiscal to expand the business," Amara Raja Electronics director Jayadev Galla told reporters here.

The company today launched its “Tribal” range of UPS inverters for home users, priced at Rs 7,999 (without battery).

Amara Raja Electronics is a part of the Amara Raja group, which manufactures batteries under the Amaron brand name.

"We are looking at expanding in other consumer product categories like washing machines, air conditioners and are contemplating on convergence devices," he said.

The company, which registered revenues of Rs 75 crore last year, expects to close the current fiscal with Rs 100 crore. — PTI