New Delhi, August 8
The stock markets continued their losing streak following the US downgrade but recovered some ground on assurances by the Finance Minister Pranab Mukherjee.

However, analysts warned that the global uncertainty would impact the Indian economy on account of FDI inflows, capital inflows, fund raising, and lower demand for exports and IT and even slow down GDP growth and domestic consumption.

The FM’s assurances helped to pare losses in the markets as the BSE Sensex which had fallen 550 points on opening closed the day down by 315 points below the 17,000 mark to a 14-month low.

Mukherjee was among several international ministers and central banks including EU and G7 which tried to send out messages of stability to the markets.

Crisil said that should global growth weaken further, India will be impacted and that this environment adds to corporate India’s challenges.

Roopa Kudwa, MD & CEO, Crisil said that the primary impact would be on the availability and cost of funding, both domestic and international.

She said the second impact would be on demand: export growth is likely to slow down and domestic private consumption, which has been strong so far, could moderate as consumers become more cautious.

Standard & Poor’s Ratings said there was no immediate impact on Asia-Pacific from the lowering of the credit rating on the US, but said the downgrade, together with the weakening sovereign creditworthiness in Europe, does point to dampened market sentiment, potential rising funding costs in offshore markets and reduction and reversal of capital flows.

Industry body ASSOCHAM said that the downgrade would have a cascading effect on markets across the world and could slow down foreign direct investments into India, impact demand for exports and demand for IT industry will be hit.

On the markets, Dinesh Thakkar, CMD, Angel Broking said that markets could be re-calibrated a little lower since growth prospects in the near-term look a little weaker, but a repeat of a Lehman-like situation not expected.

Further correction in crude oil and other commodities will have a dampening effect on inflation in India.

FICCI believes that on the downside, an uncertain global environment could however depress India’s exposure to global markets (exports of goods & services, more than a quarter of India’s GDP) and knock off percentage points from India’s GDP growth.

New Delhi, August 8
Worried over the fallout of the US debt problems on the Indian economy, industry today demanded another stimulus package to boost domestic demand and investments.

While ASSOCHAM called for another stimulus package, FICCI said there was a need for better fiscal management and acclerating structural reforms. It added an uncertain global environment could depress India's exports of goods and services to the American market

"A slow pace of recovery in the US could also prompt hard hit sectors in India to call for another stimulus package by the government to boost investments and demand," Assocham Secretary General D S Rawat said.

Chandigarh, August 8
Battered by the rise in dollar rates, the Indian rupee continued touched Rs 44.97 against the dollar today. This led to a panic amongst exporters in the region, who feel that the volatility in the market would squeeze their profit margins, especially when orders to the US and Europe are drying up.

SC Ralhan, regional chairman of the Engineering Export Promotion Council said that though the volatility in currency had hit them hard, their main concern was the steep fall in business from the US and the UK.

“Though exporters can do hedging to control the impact of the volatility in currency, but the real worry is the poor show of the American economy. In the past three years, the slowdown of the US economy has severely impacted exporters and business from US had come down to half after the 2008 recession. With the current trends in the US economy, we foresee a further fall in the export orders,” he said.

Naveen Mathur, associate director, Angel Broking, said that the markets could be wobbly for some time. “Though the US dollar will remain weak against G-10 currencies, especially the Japanese yen and the Swiss franc, but it will not weaken to a great extent. The dollar index has seen an upside appreciation, so we do not foresee the dollar weakening much,” he said.

New Delhi, August 8
Foreign Direct Investment (FDI) into India saw a whopping 310 per cent increase in June to $5.65 billion, the highest monthly inflow in the last 11 financial years, indicating the revival of investor confidence in the Indian economy.

In June, 2010, FDI inflows into the country amounted to $1.38 billion.

FDI flows were also very high in May, 2011, with the country receiving foreign investment worth $4.66 billion, a jump of 111 per cent vis-a-vis the same period last year.

In the April-June period of the current fiscal, FDI went up by a massive 133 per cent to $13.44 billion from $5.77 billion in the corresponding period last year.

"The figures indicate that the trend of high FDI equity inflows since the beginning of the present financial year is being maintained," a statement from the Commerce and Industry Ministry said today.

During the first six months of the 2011 calendar year, FDI increased by 57 per cent year-on-year to $16.83 billion, it said. In the previous fiscal, equity inflows through the FDI route dipped 25 per cent amid the uncertain global situation. — PTI

Frankfurt, August 8
World equities plunged on Monday and gold topped $$1,700 ($A1,632) for the first time, as investors eyed the prospect of a sharp global downturn and shrugged off international efforts to resolve sovereign debt woes.

Frankfurt closed down by more than 5.0 per cent, Paris was down by 4.7 per cent, and London dived by nearly 3.4 per cent, following heavy US losses as Wall Street reacted to Washington's loss of the top AAA credit rating.

Markets also fretted about the exposure of the global banking sector to the eurozone debt crisis, despite G7 and G20 pledges to bolster the global economy and European Central Bank action on eurozone debt, dealers said.

"Investors are worried about the rising risk of global recession, the threat of a major bank bust and a growing loss of confidence in EU policymakers to properly resolve the eurozone debt and banking crisis," VTB Capital economist Neil MacKinnon told AFP.

"The global financial and economic situation is looking bleak and policymakers are running out of ammunition. Difficult times lie ahead," said MacKinnon, noting that traders were seeking to exit risky equities and preserve their cash.

European stock markets had enjoyed brief gains in early morning deals but soon dived back into negative territory, while Asian equities finished lower. The US market too opened lower and the trend is expected to continue and lead to further erosion. — Agencies

Chandigarh, August 8
To reach out to small and medium entreprises sector and provide these access to equity capital, the Bombay Stock Exchange (BSE) is coming up with an exchange. The exchange is expected to start operations from September.

Lakshman Guglothu, chief executive officer (CEO) of BSE SME Exchange, said that they were waiting for a final approval from the Securities Exchange Board of India (SEBI).

“We already have 50 SMEs who are ready to get listed on the exchange when we launch it. We have also tied-up with merchant bankers and market makers, who will ensure that transactions take place,” he said.

The CEO said that of the total 26 million enterprises in India, around one million have the potential to get listed on the SME Exchange.

“Once the exchange gets the Securities Exchange Board of India's approval, we will roll-out operations across the country,” he said, adding that other than the regional offices at Delhi, Ahemdabad, Chennai, Kolkata and Hyderabad, a new regional office was also being set up at Jaipur. The BSE SME Exchange might also set up representative offices in other cities, so as to get a national footprint.

“We have also simplified the rules for the companies listing on this exchange. The listing norms have been simplified and the compliance norms have also been simplified. We have 1,500 companies listed on the BSE, with a paid up capital of less thjan Rs 10 crore. We will give them an offer to migrate from the Mainboard to the SME exchange,” he said.

He also said that the SMEs stood to benefit from listing on the SME Exchange as they would get access to funding, better valuation, improvement in debt-equity ratio.

“We are creating awareness amongst SMEs so that they come and get listed. We are conducting road shows and seminars for this purpose,” he said.

New Delhi, August 8
Gold prices breached the crucial Rs. 25,000-level for the first time ever in history here, tracking strong trends in global markets where financial uncertainty increased the metal’s appeal as a safe investment haven.

With international prices rallying amid concerns that the global economy is slowing, gold in the bullion here gained Rs 460 to touch an all-time record of Rs. 25,230 per 10 grams.

Prices then averaged out to Rs 25,000 per 10 gms

Traders said heavy buying by stockists and investors in tandem with rising global trend, mainly led to the prices touching record level in spot as well as futures trade here.

In addition, some local buying ahead of marriage season also boosted the sentiment, they added. Gold of 99.9 and 99.5 per cent purity surged by Rs. 460 each to Rs 25,230 and Rs 25,110 per 10 grams, respectively.

Sovereigns followed suit and shot up by Rs 200 to a new peak of Rs 19,800 per piece of eight grams.

Following downgrading of US’ credit rating by Standard and Poor’s (S&P), gold zoomed in the overseas market as investors shifted funds from other options like equities and dollar to gold. After S&P cut the U.S. credit rating from AAA to AA+, the gold prices surged by $ 44.40 to $ 1,707.80 an ounce in Singapore amid slump in equities and the dollar.

Silver ready spurted by Rs. 1,300 to Rs. 59,900 per kg on increased off-take by industrial units and coin makers and weekly-based delivery gained Rs 1,605 to Rs. 59,980 per kg. — PTI

New Delhi, August 8
Larsen and Toubro today reported a 12 per cent growth in its standalone net profit at Rs 746.15 crore for the first quarter ended June 30, 2011, on better execution and healthy flow of orders.

The company had reported a net profit of Rs 666.17 crore during the same quarter last fiscal.

Net sales of the company stood at Rs 9,482.61 crore, registering growth of 21.08 per cent during the quarter under review as compared to Rs 7,831.19 crore of the April-June quarter of 2010-11, the company said in a filing to the Bombay Stock Exchange (BSE).

"In the current scenario of moderating growth momentum in the economy, the company garnered fresh orders of Rs 16,190 crore, taking its order book to Rs 1,36,172 crore as on June 30, 2011," the company said in a separate statement.

It added that most of the orders came from buildings and factories, infrastructure, power, hydrocarbon and metals and mining sectors.

Engineering and Construction business of the company registered a growth of 23 per cent during the quarter at Rs 8,018 crore and bagged orders worth Rs 14,416 crore during the quarter, the statement further said.

Mumbai, August 8
Tata Motors today said it has completed its luxurious crossover range with the launch of new premium car Aria 4x2.

"The Tata Aria 4x2 range will be available from Rs 11.85 lakh onwards (ex-showroom, Mumbai). The car is a new addition to Tata's range of premium luxury cars and is a combination of a sedan and an SUV (Sports Utility Vehicle) blended into one," Tata Motors Head (Utility Vehicles) Rajesh Nair said.

The Tata Aria range along with the 4x2 range is being made available, in 85 cities through 150 showrooms in Phase-I, Nair said. The Tata Aria is already available in four-wheel drive, launched in October, 2010. Aria 4x2 range will be available in three trim levels - Aria Prestige, Aria Pleasure and Aria Pure. — PTI

New Delhi, August 8
The Confederation of Indian Industry (CII) today met Agriculture Minister Sharad Pawar to push for decontrol of the sugar sector in phases.

The CII has formed a new committee on sugar industry under the chairmanship of Ajay Shriram, who also heads the leading sugar producing firm DCM Shriram Consolidated Ltd.

The committee made a representation to Pawar demanding removal of levy sugar (supplied to ration shops) and freedom to sell the sweetener without government's control.

"There are many demands. Right now, we are focusing on removal of levy sugar and monthly release quota," Indian Sugar Mills Association (ISMA) Director General Abinash Verma said.

Verma, who was present in the meeting, said, "The minister was positive on our demands." At present, the Food Ministry controls sugar sector by deciding the quantity of sugar to be sold through open market as well as ration shops on monthly basis.

It also asks mills to contribute 10 per cent of their sugar production for supply through ration shops at cheaper rates besides fixing the fair and remunerative price of sugarcane.

The CII's National Committee on Sugar is also planning to raise its demand before the Finance and Food Ministries. — PTI

New Delhi, August 8
Bharat Sanchar Nigam Ltd (BSNL) and Mahanagar Telephone Nigam Ltd (MTNL) have faced the brunt of public ire as a result of the launch of mobile number portability (MNP) since November last.

According to latest government figures, BSNL and MTNL have lost over 5,84,261 and 55,605 customers respectively as on June 30 after mobile number portability was introduced in the country.

In a written reply in Rajya Sabha Milind Deora, Minister of State for Communications and IT said that the number of subscribers who ported out of the BSNL and MTNL networks stood at 9,33,750 and 67,198 while those porting in the network included 3,49,489 and 11,593 subscribers respectively.

MNP was launched on a pilot basis in November last in Haryana and then across the country on January 20 last, allowing all mobile phone users to switch operators without changing their numbers.

Both BSN and MTNL have been taking various initiatives to retain their subscribers, including measures like forming special cell to contact customers and address their grievances.

BSNL also foregoes porting fees from subscribers coming into BSNL network and increasing points where customers can make payments, the minister said while adding that the companies have also reduced the tariff rates. He said that the market shares of the two telephony PSUs have also been declining during the last three years. — TNS

Chandigarh, August 8
Bharti Airtel today announced the simultaneous launch of its 3G services in 24 major towns of Haryana.

The launch of the service was announced by flagging off Airtel 3G mobike rally in Ambala.

Airtel customers in Haryana will now enjoy Airtel 3G experience to enjoy a host of exciting capabilities including Mobile TV, video calls, live streaming of videos and social networking on the go – all at speeds never experienced before.

Shishir Kumar, CEO – Upper North, Bharti Airtel said, “Given the increasing propensity of customers in Haryana to access more and more information through mobile internet, we are confident that 3G will emerge as a game changer that will redefine the way our customers access data services.”

Mumbai, August 8
Shares of state-run Coal India and drug-maker Sun Pharma ended on a flat note after these companies entered the coveted league of 30 Sensex companies today, shrugging off the weakness in the broader market.

Coal India ended at Rs 392.30, down 0.01 per cent from the previous close, while Sun Pharma settled up 0.04 per cent at Rs 497.90 on the BSE.

During the day, Coal India touched a high of Rs 399.95 and a low of Rs 378.40, whereas Sun Pharma hit a high of Rs 503.10 and a low of Rs 484.55.

The entry of the two new companies into the Sensex pack ends the over five-year journey of Anil Ambani group firms Reliance Communications (RComm) and Reliance Infra (R-Infra).

RComm and R-Infra ended their Sensex journey on Friday on a disappointing note, with their shares falling by over 7 per cent.

Shares of RComm today settled lower by 4.56 per cent at Rs 87.90, while R-Infra went down by 5.91 per cent to Rs 492.85.

From the Sensex blue-chips, DLF, Hindalco, Tata Motors, Infosys and TCS were the worst hit.

Out of the 30-Sensex components, only six registered gains, including Hero Honda, ONGC, M&M, Bajaj Auto. — PTI