New Delhi, July 17
Overseas investors poured in nearly Rs 8,000 crore ($2 billion) in the domestic stock and debt markets so far this month and analysts feel that the positive trend will continue in the coming months as well.

Foreign institutional investors (FIIs) purchased equities and debt securities worth a gross amount of Rs 43,994 crore so far this month.

However, they also sold shares and bonds worth Rs 36,195 crore in the same period, resulting into a net investment of Rs 7,799 crore for the period, according to the information available with market regulator Sebi.

Market experts said investors were coming back due to decline in inflation and crude oil prices.

"Investors are coming back to equity market due to cooling inflation and decline in crude oil prices," CNI Research Head Kishor Ostwal said.

FIIs were quite bullish on the equity market as they put in Rs 6,475 crore in equities so far in July and Rs 1,324 crore in securities market.

Investors had shunned the stocks markets in emerging countries such as India in the first half of this year as these countries battled inflation. Besides, high interest rate was also considered as a risk to these countries.

FIIs were interested in the debt market in the first six months of the year, making a net investment of Rs 9,948 crore during the period while their investments in stocks stood at Rs 2,670 crore.

Analysts believe that FIIs will continue to bring more money in the coming six months.

"In the long-term, FIIs will remain bullish on the Indian market. Moreover, in the next six months market will witness more inflows than last six-months," Geojit BNP Paribas Research Head Alex Mathews said.

In 2010, foreign investors purchased stocks and bonds worth Rs 10 lakh crore, a record high for a year. During the same period, FIIs sold shares and bonds worth Rs 7,80,000 crore, which translated into a record net investment of over Rs 1.75 lakh crore for the year.

The number of FIIs registered with SEBI marginally rose from 1,718 as of December 31, 2010, to 1,728 as of July this year. — PTI

Chandigarh, July 17
The Punjab government today announced a comprehensive package of incentives to attract investments for its Textile Park in the Malwa region. The park should provide value-addition to cotton farmers.

The Park, with composite Textile Processing units, has a minimum Fixed Capital Investment of Rs 250 crore in Bathinda, Mansa, Faridkot, Ferozepur, Mukatsar, Sangrur and Barnala .

Punjab Industry Minister Tikshan Sud said that the policy aimed to attract leading textile brand names of the world.

The main component of package is 50% exemption from Market Fee, RDF and ID Cess for 10 years or upto 50% of Fixed Capital Investment, whichever is earlier, that would be provided on purchase of cotton.

He said that this concession would be available after the commencement of production of the units up to fabric manufacturing.

Another major incentive is allowing 10% land of the total land acquired/ purchased by the Promoter for such projects for commercial use without payment of any Change of Land Use, External Development Charges and Licence fee charges.

He said that on industry demand, it had been decided to allow Clubbing of investments in the units setup at multiple locations (not more than 2) .

However, he added usage of not more than 10% commercial area in proportionate to the land at each location would be allowed.

New Delhi, July 17
Hinduja group companies, including flagship ruck maker Ashok Leyland, will invest around Rs 600 crore in Hinduja Energy India Ltd (HEIL) to make downstream investments in the power sector.

HEIL has decided to invest in the power sector indirectly by investing in existing or setting up special purpose vehicles engaged in generation, transmission, distribution and trading in electric power rather directly entering these ventures.

Presently, the majority of the shares in HEIL are held by A P Hinduja, Chairman of the Hinduja group.

Investments of up to Rs 200 crore in tranches would be solicited from Ashok Leyland. In addition, foreign direct investment of up to Rs 400 crore would be infused by group companies, Hinduja Energy and IXTF both set up in Mauritius.

HEIL has sought govt approval to acquire foreign investment from these companies for making downstream investments in existing or future operating companies engaged in the power sector produced from renewable or non-renewable sources in India.

According to the consolidated FDI policy, FDI of 100 per cent is permitted under automatic route for generation and transmission of electric energy produced in hydro-electric, thermal, non-conventional energy generation and distribution and power trading.

Dubai, July 17
Increased use of gold in making jewellery in growing markets such as India and China has pushed up the yellow metal's prices, according to a study by Dubai Chamber of Commerce and Industry study based on the Dubai Multi-Commodities Centre (DMCC).

Besides, the demand for gold as reserve and hedge against inflation and investment and speculative demand for gold with the intention to profit from the continuing uptrend also contribute to the uptrend in gold prices, the study said.

The investment demand is not the only reason for the price rise of gold, higher demand for converting it into jewellery in countries like India and China, as gold plays an important role in their cultures, also led to the rise in gold prices, the report said.

The World Gold Council (WGC) estimates that jewellery and investment demand from these Asian countries represented about 40 per cent of total global demand in 2010, and that demand from India is expected to grow overtime.

However, history has shown that asset prices generally don't keep rising indefinitely. Corrections, even large ones are quite normal as was seen in the early 1980s.

While the price of gold may still have a long way to rise, its recent history has shown some difficulty in breaking through to higher levels. — PTI

New Delhi, July 17
Telecom Minister Kapil Sibal has now set up a panel to ascertain the reasons for delays in providing mobile services in rural areas under the Universal Service Obligation Fund (USOF) scheme.

The decision comes in the wake of controversy over a reduction in the penalty imposed on Anil Ambani-led Reliance Communications, which had switched off services for some time in some of the areas.

The panel has been set up under the Telecom Secretary to find out the reasons for the delay in rolling out mobile services under the Universal Service Obligation Fund and asked them to submit the report within eight weeks.

"... Set up a committee under chairmanship of Secretary, Telecom, including members of USOF, DDG (Finance-USOF), Member (Technical), Member (Finance), Administrator, DDG-(Licensing), DDG (Technical-USOF) and legal adviser. It may consider all aspects and suggest action that may be required in the facts and circumstances of the cases of delays," a note from the DoT said.

In 2007, the Universal Service Obligation Fund (USOF) scheme was launched to provide subsidy support for setting up and managing 7,871 infrastructure sites (telecom towers) in 500 districts in specified rural and remote areas.

Telecom companies Bharti Airtel, BSNL, Aircel, Idea Cellular, Reliance and Vodafone were the service providers under the scheme.

The delays under the shared mobile infrastructure scheme were recently the subject matter of controversy, the note added. — PTI

Q: I am a salaried (assessee) having following queries:

i) I pay rent Rs 60,000 to my mother (owner of the house). Does the relationship matter in exemption in HRA for income-tax purpose?

ii) Will my mother have to pay any type of tax on this receipt of rent (the only income of her) or will it add in my father’s income (a pensioner)? — Anurag

A: Answer to your queries:

a) The provisions of the Income-tax Act 1961 (the Act) do not prohibit the actual payment of rent to the mother (owner of the house) for the purposes of getting exemption of house rent allowance received by a tax payer.