New Delhi, August 19
Even as economic problems in US and Europe and the subsequent fall in global markets led to the BSE Sensex slipping below the 16,000 mark, there are now mounting worries for foreign investors on the volatile political situation in India.

Finance Minister Pranab Mukherjee today said that the Indian markets have weathered any contagion effect from the turmoil in global markets and have fallen much less.

The FM’s statement followed a sharp fall in the BSE Sensex which slipped below the 16,000 mark after 15 months in intra-day trading. It finally closed at 16,141 points, down 328 points.

What has started worrying investors is the impact of the ongoing agitations in India. Policy making in the government has already been slow in the last few months and investors apprehend that the ongoing agitation on the Lokpal Bill will deter foreign investors in the stock market and the corporate sector may also postpone investments.

Gold, which has an inverse relationship with equities continued its record run and crossed Rs 28,000 in futures trade.

Gold is considered a safe haven and whenever there is uncertainty in the economy investors shift their assets from other categories to gold. Oil also fell by $ 4 on fears of a global recession which should help the Indian economy.

The FM today reviewed the global economic situation with RBI Governor, D Subba Rao and chairman of the Prime Minister’s Economic Advisory Council, Dr C Rangarajan.

Today, the Indian markets contracted 1.9 per cent which is only around 1/3 rd of the fall seen in the US and European markets. In comparison to Asian markets also, the performance has been better as some of the major Asian markets saw 4-6 per cent losses.

Mukherjee said the effect of the market sentiments in the US and Europe has a bearing on Indian markets as well in the short-term.

He said that Europe’s debt problem and worries about the world economy had resulted in sharp fall in the US and European markets.

Stocks that were particularly affected in the US were those of companies that have global presence, the Finance Minister said.

IT and banking stocks were the worst hit. Infosys was the biggest loser and fell by 5.5 per cent to Rs 2,224, not a good farewell to its founder, N R Narayana Murthy as it was his last day as Infosys chairman 

Mumbai, August 19
The meltdown in stock markets, hit by deepening fears of a global economic slowdown, has wiped off more than Rs two lakh crore from the investors wealth in just two days.

The Indian bourses today saw heavy selling by investors for the second straight day on worries of the mounting debt worries in the US and Europe and fears of the American economy slipping back into recession.

The market has been under pressure amid global economic worries for past few weeks and close to Rs seven lakh crore have been wiped off from investors' wealth so far this month.

At the end of July , the total investor wealth stood at about Rs 66,17,273 crore, which has fallen by about Rs 6.9 lakh crore or over 10% to Rs 59,29,249 crore currently.— PTI

Chandigarh, August 19
The controversy surrounding the setting up of a steel plant by POSCO in Orissa is being closely watched by the European countries, and could have an impact on the foreign direct investment from European countries in India.

This was stated by the Ambassador of Republic of Korea, Kim Joong Keun, during an interaction held at CII here today. He said that this $ 12 billion project, touted as the single largest FDI in the country, is being looked upon as a test case for these European countries for FDI in India.

He, however, said that the delay in the starting of this project would not affect the flow of investment from the Korean companies in India. “India is a big market and Korean companies see a huge potential here,” he said.

The Ambassador hoped that the POSCO project would start in Orissa in the next two years, as the issue of land acquisition has been resolved, and the issue with regards to rights of iron ore is pending before the SC.

On bilateral trade, JoongKeun said that the signing of the Comprehensive Economic Partnership Agreement between the two countries in 2009 has led to a rapid scaling up of trade. “This has been a major step towards greater economic dimension as it has helped eliminate tariffs and duties on 7044 goods traded between the two countries.”

Mumbai, August 19
Pune-based commercial vehicle maker Force Motors today said it would invest Rs 1,000 crore across the passenger and commercial vehicles platforms over the next two years.

"We plan to invest Rs 1,000 crore over the next two years. Of the total amount, we plan to invest Rs 400 crore in the passenger vehicle segment and the rest in commercial vehicles space. The funds will be generated through a mix of internal accruals and other capital raising methods," Force Motors Chairman Abhay Firodia told reporters here.

Earlier in the day, the company rolled out its first 2.2-litre diesel sports utility vehicle (SUV) 'Force One,' priced at Rs 10.65 lakh (ex-showroom Delhi). The vehicle will be available in themarket from September 1.

The company has roped in Bollywood actor Amitabh Bachchan as its brand ambassador to promote the vehicle.— PTI

New Delhi, August 19
With captive diesel engine capacity unable to meet domestic demand, Maruti Suzuki India Ltd (MSIL) will now source diesel engines from Italian automobile giant Fiat.

This was confirmed by MSIL Chairman RC Bhargava while talking to reporters here on the sidelines of a function.

“We are exploring the possibility of sourcing diesel engines from somebody else, because making a big investment in expanding our own engine capacity is not prudent in this situation," Bhargava said.

When asked specifically whether the company would source diesel engines from Fiat, he replied in the affirmative. Maruti has a licensing pact to produce Fiat’s 1.3 multi-jet diesel engines at its Manesar facility since 2007.

The engine was initially fitted in Swift and was later strapped on to DZiRE, Ritz and SX4 models. This engine was sourced directly by Maruti’s parent Suzuki Motor Corp from Fiat Italy.

Bangalore, August 19
Having successfully steered Infosys to a place among the top IT companies of the world in the short span of 20 years, N R Narayana Murthy will step down as Chairman of the company today, albeit with firm indications that he will continue to guide the organisation.

Murthy will hand over his role to K V Kamath, who has been an independent director on the Infosys board since May, 2009.

S D Sibulal will take over as the new CEO and MD and S Gopalakrishnan will be Executive Co-Chairman of Infosys. Kris Gopalakrishnan, the current CEO of Infosys, who is also a co-founder, has been elevated as the Executive Co-Chairman.

Murthy's exit as the chairman will mark the end of a formal association with the company, but he will continue to guide the organisation in the capacity of Chairman Emeritus.

"I would be called Chairman Emeritus. I will have a room which I can use if I want... but as propriety demands, I will have no say in any matter, I will not be allowed to attend any board meetings or any meetings. I can meet anybody personally," Murthy had said earlier.

Infosys will host a farewell for Murthy at its campus in Bangalore in the evening, which will be attended by all seven co-founders and prominent former employees, including T V Mohandas Pai and Phaneesh Murthy and Murthy's family.

In a testimony to Murthy's impact, Time magazine had named him among the Indians who are leading the country into its "next six decades". He retired from his executive position at Infosys on August 20, 2006.— PTI

Chandigarh , August 19
The Indian SME sector is poised to be a key market even for global economies. Realising the rapid growth and huge potential particularly among Punjab SMEs , RAS Al Khaimah Free Trade Zone authority (UAE) is holding an interactive session for entrepreneurs in Ludhiana.

With an initial investment of only Rs 2.3 lakh, Punjab businessmen have the opportunity to set up an office in UAE. 100% capital & profit repatriation is allowed and there is no tax on the income.

Officials from the Ras Al Khaimah Free Trade Zone Authority (Government of Ras Al Khaimah — UAE) will be at The Park Plaza Hotel, Ferozpur Road, Ludhiana from August 23-25 to meet and assist businessmen in setting up a business operation in the UAE.

“The 3-day interactive meet will be a opportunity for Punjab particularly Ludhiana entrepreneurs to chalk out overseas expansion of their businesses. Elaborating the facilities and different types of licenses available to set up business, the delegation will closely assist in the setting up of company in RAK Free Zone in UAE” said Bissoon Surnam, Head, RAK FTZ India Liaison Office. — TNS

New York, August 19
Embarking on drastic restructuring efforts, technology major Hewlett-Packard is planning to spin off its personal computer business, while deciding to discontinue tablet offerings.

Hewlett-Packard (HP), which saw its July quarter profit rising 9 per cent to USD 1.93 billion, also announced plans to snap up UK-based software firm Autonomy Corp in a deal worth about USD 10.25 billion.

Grappling with stiff competition and rising prominence of tablets, PC maker HP's latest plans are aimed at fundamental transformation to bolster profitability.

The board of directors have approved the evaluation of strategic alternatives for HP's Personal Systems Group (PSG), "including the exploration of the separation of its PC business into a separate company through a spin-off or other transaction", it said in a statement.

HP has a significant market position in India's growing PC market.

Regarding HP's proposed spin off of PC business, research group Gartner's Principal Research Analyst Vishal Tripathi said that the company has not given any clarity on the plan.

"This probably going to impact both their consumer and enterprise businesses. All their enterprise clients will be very watchful on process of spin-off. It definitely going to impact their business...," Tripathi noted.

He pointed out that HP is looking to focus more on the profitable software business, which is what IBM did few years back.— PTI

Mumbai, August 19
SBI Mutual Fund has launched a new fund offer, SBI Gold Fund, an open-ended fund of fund scheme to enable investors to invest systematically in gold and gain advantage of the recent rally in the metal's prices.

The corpus collected from the NFO would be invested in SBI Gold Exchange Traded Fund.

"It is a convenient product and will give an opportunity to an investor to invest in the purest form of gold without buying and storing physical gold, that too, without a dematerialised account unlike gold exchange traded funds," SBI MF Managing Director and CEO Deepak Chatterjee told reporters here.

He said there was a demand for ETFs and the assets under ETF schemes in the country crossed Rs 6,000 crore last month.— PTI