Mumbai, March 9
Multi Commodity Exchange (MCX) shares jumped 38% on their debut on Friday, buoyed by strong growth prospects for the country's first listed bourse amid a revival in share offerings after a market rebound. The first Indian bourse to list on an exchange contributed to 23.3% of the total cash turnover on the BSE on the first day.

MCX, which last month launched the first major IPO in the Indian market in seven months, had priced the issue at Rs 1,032 — the upper end of the price band — raising Rs 6.6 billion.

The IPO was subscribed more than 54 times.

The MCX stock was trading at Rs 1,351.50 at 11:36 a.m., up nearly 31% on the BSE that was up 1.8%. The stock earlier touched a high of Rs 1,428.55. The exchange's majority shareholder Financial Technologies India and investors including state-controlled State Bank of India and Bank of Baroda sold part of their holdings in the IPO.

Indian companies raised roughly $9 billion through share sales last year, down from about $23 billion in 2010, as weak market conditions forced many companies including state-run ONGC to put off their plans.

Strong demand for MCX shares as well as some large block deals last month have bolstered expectations for more share sales in India this year, mainly helped by a rebound in the stock markets.

India's benchmark stock market index has risen 13 percent so far this year, after falling roughly 25% last year.

Morgan Stanley, Citigroup Inc and India's Edelweiss Capital were the bookrunners for the MCX IPO.

MCX holds a more-than-80 per cent share of the country's commodity futures market. Its trading platform has more than 40 commodities including bullion, ferrous and nonferrous metals, energy, and agri-commodities. — Reuters

New Delhi, March 9
Badgered from all sides, Kingfisher Airlines was on Friday suspended for non-payment of dues from two more IATA platforms that would affect its passenger and cargo bookings through agents, but the cash-strapped carrier said it has made alternative arrangements for these bookings.

The International Air Transport Association (IATA), which had suspended it from its Clearing House on Wednesday, said Kingfisher has been suspended from participating in the global airline body's Billing and Settlement Plan (BSP) and Cargo Accounts Settlement System (CASS).

"The suspension was because the airline did not provide IATA with a cash deposit, required to continue its participation in the BSP and the CASS. The required cash deposit was intended to ensure the airline is able to meet its financial obligations in the BSP and the CASS," an IATA spokesperson said in a statement from Singapore. — PTI

New Delhi, March 9
Indian imports continued to outpace exports in February as demand remained weak in major exports markets like the United States and Europe, nudging the government to revise up the full-year trade deficit projections on Friday.

A widening trade deficit will likely worsen India's current account deficit and further weaken the rupee.

Merchandise exports grew an annual 4.3% to $24.6 billion in February, while imports grew 20.6 percent to $39.8 billion, trade secretary Rahul Khullar said Friday, citing provisional trade data.

The trade deficit widened to $15.2 billion during the month, from $14.8 billion in January.

With exports struggling to maintain the growth rate seen between April and September, Khullar revised up trade deficit projection for the fiscal year ending on March 31 to $175 to $180 billion from an earlier estimate of $160 billion. "Over the last five months...there has been a very large ballooning of the balance of trade deficit," he said.

The trade deficit was $104 billion in the last fiscal year.

India’s exports reached $267.4 billion between April and February — compared with the full-year target of $300 billion. — Reuters

New Delhi, March 9
The collective net worth of 48 billionaires in India at about Rs 10 lakh crore exceeds the government's total consumption expenditure for the last fiscal, as also the entire fiscal deficit of the country.

The collective wealth of the 48 billionaires is also more than double the fiscal deficit amount estimated by the government for the current fiscal at Rs 4.12 lakh crore.

According to the latest Forbes list of billionaires, released on Thursday, there are 48 persons in India with a net worth of one billion dollar or more and their collective wealth stands at US $ 194.6 billion (about Rs 9.73 lakh crore).

This puts the average wealth of Indian billionaires at about $4.05 billion (Rs 20,271 crore).

In comparison, the latest government data pegs India's per capita income Rs 53,331 in the year 2010-11, while it is estimated to grow to Rs 60,972 in the current fiscal. — PTI

Chandigarh, March 9
Investment in agriculture sector, especially in research and development, is the only way ahead to beat the stagnation in agriculture production and ensure the country’s teeming millions continue to be fed.

Bringing in technological advancements in agriculture operations; ensuring an increase in farmers’ income; nurturing the agro processing industry by developing venture capital fund; and, ensuring that some rationalization in input costs, especially fertilizers and pesticides; will give a fillip to the farm sector. To ensure that this happens, the budget proposals for 2012-13 should focus on initiating more research, improving post harvest technologies and development of cold chain infrastructure; besides expanding and strengthening the irrigation network.

Talking to The Tribune, S.S. Johl, a leading agro economist, averred the budget proposals this year should have a definite agriculture policy for the country, which will ensure more investment in this sector. “A corpus should be created for ensuring funds to agriculture related research and seed development and for improving agri extension services, to ensure that the new research is disseminated to the farmers in the field. Special emphasis should also be laid on improving irrigation system and management and development of dry area lands,” he said. He added that there should be some budgetary allocation for improving soil health.

Seconding his views, Harpreet Singh, a progressive farmer from Beed Naraina village and vice president of the Karnal Kisan Club, said that special emphasis should be laid on a policy for small and marginal farmers. “Because of rising input costs, many with small land holdings are now giving up on farming as a vocation. This will adversely affect food production. Emphasis has to be laid on allied farming activities like dairying and poultry so that farmers can take these up and supplement their income. The government also needs to rethink its MSP policy as it ensures farmers don’t get their due,” he said, adding a new formula for cost calculation of crops should be worked out.

With agro processing industry still at a nascent stage, experts feel that the budget proposals for the coming fiscal should lay emphasis on development of the agro processing industry.

Sanjeev Nagpal, managing director of Fazilka-based NASA Agro Industries, said the government should set up a venture capital fund for the agro processing industries, as getting finance from banks was still quite a hassle. “This will ensure more private participation in the agro industry sector, thus ensuring farmers get better reenumeration for their produce,” he observed. 

Mumbai, March 9
Reducing cost and expanding to newer geographies will be top on the agenda of Krishnamurthi Venkataramanan, 67, the newly appointed CEO and MD of engineering major Larsen & Toubro. "Considering the current situation and volatility my concentration will be on reducing cost...Also we will look at new geographies beyond the Gulf and Southeast Asia," he told reporters after his appointment.

The announcement of his appointment to the coveted post from April 1, was made today. Venkataramanan is currently a whole-time director and president of the company's hydrocarbon business.

He said his focus will be on the engineering and construction segment which constitute over 80 per cent of the conglomerate's business.

Venkataramanan said apart from these, top on his priorities will be ensuring that projects get completed within the stipulated timeframe. "Also, want to focus on doing all projects on time as we cannot afford delays in projects in this situation," he said.

The company, as on December 31, had an order book of Rs 145,768 crore.

Venkataramanan has been with the US $12 billion group since 1969, when he joined it as a graduate engineer trainee. Later he was elevated to board member in 1995.

In the new structure, Venkataramanan would be responsible for the day-to-day businesses of L&T.

In a much-awaited succession plan, L&T appointed Venkataramanan as its new CEO & MD and said its current chief, A.M. Naik, will remain executive chairman for the next five years. — PTI