Mumbai, September 7
Led by ICICI Bank and Reliance Industries, the BSE Sensex on Friday surged over 337 points — the biggest single day gain in two months — on all-round buying by funds after the European Central Bank announced a potentially unlimited bond-buying plan to revive Eurozone's ailing economies.

The BSE benchmark index, which had gained 33 points ahead of the ECB meet yesterday, was off to a rollicking start today tracking overnight gains in US stocks and early Asian cues.

The 30-share Sensex opened 229 points higher and thereafter built on gains with ICICI Bank, RIL, Infosys and Larsen & Toubro eading the rise. Sensex finally ended at 17,683.73, up 337.46 points, or 1.95%. The gains were supported by Tata Steel (up 5.72%) and Tata Motors (up 4.40%) and Hindalco (up 3.39%).

Today was the best single day performance since June 29 when Sensex rose by 439 points. Overall, nearly 1,800 stocks rose and investor wealth surged by Rs 84,000 crore.

Brokers said trading sentiment was bolstered as ECB's new bond buying plan will likely lower the borrowing costs for the region's debt-ridden nations and ease fears over the euro's fate.

Capital stocks were among the best performers on the back of foreign funds flow while realty and metal stocks were also among the biggest gainers.

"This (ECB's plan) means that, the prospect of defaults by sovereigns has reduced in the EU. That supported markets," said Dipen Shah, head of private client group (research) at Kotak Securities.

The 50-share NSE Nifty index rose by 103.70 points, or 1.98%, to 5,342.10. — PTI

Amritsar, September 7
Rice exporters are facing a tough time these days as excessive use of pesticides by the farmers is leading to rejection of their export consignments in the US, prompting them to contemplate testing of the produce before making purchases. They have also appealed to farmers to cut pesticide use.

This was stated by Rajen Sundaresan, executive director of the All-India Rice Exporters Association (AIREA), an apex body of rice exporters recognized by various central ministries, at a press meet here.

He said the indiscriminate use of pesticides by farmers was resulting in the presence of toxicants even after processing paddy. The presence of pesticide residue beyond permissible limit is leading to rejection of export consignments, the impact of which is clearly visible on the export prices of rice.

Sundaresan said the export price of basmati had come down from Rs 52,712 per tonne in 2010-11 to Rs 40,381 per tonne in FY12. Similarly, the export price of non-basmati rice fell from Rs 40,849 per tonne to Rs 11,586 a tonne, which was a huge 71.6% drop. He apprehended though only the US was rejecting India’s rice now, tomorrow other countries might follow suit.

“Besides rejection of consignments, the practice is bringing a bad name to the basmati brand which is produced on a large scale in northern states.” He said the United States had already detained various rice shipments due to detection of pesticide residue, which had led to a near halt in rice export. He pointed out the cost of testing in the US and the period involved in the process cut their margin of profit.

“A company comes under DWPE (detention without physical examination) when random samples are tested by the US Food & Drug Administration and pesticide residue is found in the sample. To come out of the list, a firm needs to prove that its five consecutive consignments are residue free,” he said.

Dwelling on the solution, AIREA vice-president A.P. Manchanda said the farmers needed to use the right quantity of pesticides at the right time. He said AIREA had already taken an initiative to generate awareness and train farmers on appropriate use of pesticide so that there was a little or no residue.

“Farmers should only spray pesticide on their crop before the flowering stage and not beyond. Once they adopt this practice, there will be no pesticide residue in the finished product,” he claimed.

Sundaresan said they were also mulling the idea of adopting a group of farmers who could produce rice as per their export requirement. He said the other idea was to test the produce before buying. Though it might add to the cost, it was better to spend something now then to face rejection later, he added.

HARYANA, APEDA TO HOLD WORKSHOPS: Following the rejection of basmati export orders from the United States, the Agricultural & Processed Food Products Export Development Authority (APEDA) has joined hands with the Haryana agriculture department to create awareness about the judicious use of pesticides among farmers. Rice millers and exporters are getting ready to ensure their shelling units comply with US government guidelines.

A score of rice mills in India have been validated by the National Plant Protection Organization (NPPO) as fulfilling all hygiene standards laid by the US for exports.

Haryana joint agriculture director BS Duggal said the government had tied up with APEDA to conduct workshops in Kurukshetra, Karnal, Panipat and Sonipat. “Haryana is one of the country’s top basmati exporters. We’re advising farmers to use pesticides only till 50 per cent flowering of crop, so that the residual effect of pesticide is negative. We have also got tests done and found that there is no heavy metal residue in the basmati grown in the state,” he said.

Vijay Setia, president of the All India Rice Exporters Association, said :“Regarding the incidence of khapra beetle found in export orders, we are asking all rice exporting units to maintain high hygienic standards.” 

New Delhi, September 7
Looking to strengthen its footprint in India, French auto major Renault on Friday launched the Scala sedan in both petrol and diesel variants, priced between Rs 6.99 lakh and Rs 9.57 lakh (ex-showroom, Delhi).

"The Scala will consolidate what Renault has brought to India. It will enter a very competitive segment. With the launch of this car, we are completing the first cycle of introducing five products in India," Renault India managing director Marc Nassif told reporters here at a press conference.

The company has already launched small car Pulse, premium sedan Fluence and sports utility vehicles Koleos and the Duster.

The Scala is powered by 1.5 litre petrol and diesel engines and has 5-speed manual transmission. It has 80-85 per cent local content in parts.

Shanghai/Beijing, Sept 7
China has given the green light for 60 infrastructure projects worth more than $150 billion as it looks to energize an economy mired in its worst slowdown in three years, fuelling hopes the world's growth engine may get a lift from the fourth quarter.

Shares and steel futures jumped on the plans to build highways, ports and airport runways, among the most ambitious unveiled in China this year, which analysts say signalled growing intent to bolster economic growth as the country's once-a-decade leadership change looms.

China's powerful economic planning body, the National Development & Reform Commission, announced approvals for projects that analysts estimate total more than 1 trillion yuan ($157 billion), roughly a quarter of the total size of the massive stimulus package unleashed in response to the global financial crisis.

The announcement comes just before a deluge of economic data due on Sunday that could confirm investors' worst fears that a downswing in the world's second-biggest economy has stretched into a seventh straight quarter.

"Apart from the large sizes of the projects, the announcements for these new projects were all made in two days, which is very intense," said Zhang Zhiwei, an economist at Nomura in Hong Kong.

"It signals a change in policy stance, which is now much more proactive." China's economy may be boosted by the increased spending in the last quarter of 2012.

Crucially, the projects are endorsed by Beijing and are likely to proceed. This is in contrast to pledges from nearly a dozen local governments in the last two months to spend around 7 trillion yuan to pump prime the economy, plans that economists say will not materialise due to funding shortages. — Reuters