Bangalore, February 1
Growth in Indian manufacturing slowed to a three month low in January, as new export orders lost momentum, a business survey showed on Friday, underscoring the risks to Asia's third largest economy from weak global demand, particularly in Europe.

The HSBC Markit manufacturing Purchasing Managers' Index (PMI), fell to 53.2 in January, after surging to a six-month high of 54.7 in December.

The January PMI reading, which gauges business activity in India's factories but not its utilities, was the lowest since October.

"The growth momentum in the manufacturing sector eased in January as a slower expansion in new orders slowed output growth," said Leif Eskesen, economist at HSBC.

Although India appears set to end the 2012/13 fiscal year ending in March with its slowest economic growth in a decade, for almost four years the monthly PMI has held above 50, the level that divides growth and contraction compared to the previous month.

"To meet new orders manufacturers still rely on a drawdown in stocks of finished goods, which should provide support for output growth in coming months as stocks are replenished," Eskesen said.

The PMI survey showed stocks contracting, but less quickly than in December.

Relatively weak global trade is partly to blame, particularly from Europe, India's largest trade partner, with the debt-ravaged eurozone economy expected to contract again this year.

The new export orders sub-index slipped to 54.6 in January, showing the slowest pace of growth since October.

It was a disappointing signal for an economy that needs to see a narrowing in a current account deficit that hit a record 5.4% of GDP in the September quarter, with a similar gap expected in the December quarter.

Most recent official data shows India's industrial output grew in just three of the eight months through November, when it unexpectedly shrank 0.1% from a year earlier as exports fell for an eighth month in a row.

The HSBC Markit survey also showed input and output prices rose at a slower pace during the month, suggesting India's inflation rate, which slowed to a three-year low of 7.18% in December, is unlikely to change much, at least for now.

"Input and output price inflation continued to ease, albeit only gradually, supporting the case for the RBI's cautious policy rate cut earlier this week," added Eskesen.

Citing the moderation in inflation, the Reserve Bank of India cut its repo rate for the first time in nine months on Tuesday by 25 basis points to 7.75%. — Reuters

New York City/Seattle/ San Francisco, Feb 1
Computer technology major Dell Inc is nearing an agreement to sell itself to a buyout consortium led by its founder and chief executive Michael Dell and private equity firm Silver Lake Partners, possibly announcing a deal as soon as Monday, according to two people familiar with the matter.

Michael Dell is expected to take majority ownership of the world's third-largest personal computer maker, which currently has a market value of $23 billion, while Silver Lake and Microsoft Corp would become minority investors, a third person familiar with the matter said.

The final price the group is expected to pay Dell shareholders could not be immediately learned. The deal would mark the largest leveraged buyout since the global financial crisis. The deal is set to be finalized over the weekend. — Reuters

New Delhi, February 1
General Motors India launched the sedan version of its compact car Chevrolet Sail on Friday with introductory prices ranging between Rs 4.99 lakh and Rs 7.51 lakh (ex-showroom, Delhi).

"It is an important addition to GM's sedan line up in India. It competes in one of the fastest-growing segments," General Motors India president & MD Lowell Paddock told reporters here.

The Chevrolet Sail is built on a new global passenger car platform from GM's Chinese partner SAIC Motor Corp, headquartered in Shanghai, created specially for the fast-growing emerging markets.

The Sail premium sedan will compete with the likes of the Swift DZire from Maruti Suzuki and the Indigo from Tata Motors.

The new model is available in both petrol and diesel options. While the petrol version is powered by a 1.2 litre engine, the diesel option has a 1.3 litre engine.

The petrol variant is priced between Rs 4.99 lakh and 6.41 lakh. The diesel option comes at a price range of Rs 629 lakh and Rs 7.51 lakh. — PTI

"On account of rise in input cost and fluctuation in currency, the price hike has been necessitated. We have increased the prices in the range of Rs 4,201 to Rs 20,878 across all the models," Hyundai Motor India VP (sales & marketing) Rakesh Srivastava said.

The company sells a range of vehicles starting from the entry level hatchback Eon, which was priced at Rs 2.77 lakh-Rs 3.83 lakh to luxury SUV Santa Fe tagged at Rs 22.61 lakh-25.63 lakh (ex-showroom Delhi) before the hike.

Post the price hike, the company's entry level compact car Eon will be costlier by Rs 5,000. The highest price hike will be on the Santa Fe SUV, which will cost Rs 20,787 more now. Many companies, including Maruti Suzuki and General Motors have hiked prices in recent months despite a slowdown in car sales, as rising costs threaten margins. Hyundai had also raised vehicle prices in November. — Agencies

New Delhi, February 1
Profit at India's top mobile network operator Bharti Airtel Ltd fell for the twelfth successive quarter, with higher costs dragging its results well below market expectations.

Bharti Airtel, controlled by billionaire Sunil Mittal, said consolidated net profit fell to Rs 2.84 billion in the fiscal third quarter that ended Dec 31, from Rs 10.11 bn a year earlier. Revenue rose 9.5% to Rs 202.4 bn, but the firm was hit by forex losses, higher taxes and financing costs.

Analysts had expected the firm to report net profit of Rs 8.45 billion on revenue of Rs 202.79 billion, according to Thomson Reuters I/B/E/S.

"Market conditions have been challenging in recent quarters due to pricing pressures and rising input costs, putting enormous pressure on the sector and consequently the margins," chairman Sunil Mittal said. — Reuters

New Delhi, February 1
India's second biggest carrier Jet Airways, close to a tieup with Abu Dhabi's Etihad Airways, swung to a quarterly profit of Rs 850 million on Friday on lower costs and rising fares in an under-serviced market. Jet shares have almost doubled in the past three months as Etihad's plans to pick up a stake in the airline have become clearer.

The Jet deal, if closed, will be the first since India relaxed ownership rules in September last year and allowed foreign carriers to buy up to 49 percent in domestic carriers that are battling stiff competition and high operating costs.

The Oct-Dec earnings were a sharp turnaround from a Rs 1.01 billion loss from a year earlier. Pricing power in the market has improved leading to a 17.1% jump in yields, and that is likely to continue, Jet said in a statement to the BSE.

Kingfisher Airlines, controlled by liquor baron Vijay Mallya and once India's No. 2 carrier, has stopped flying since the start of October, allowing other carriers to raise fares on key routes.

Budget carrier SpiceJet, which is also in talks with foreign airlines to sell a stake, swung to a quarterly profit at the end of 2012, and said it would target a bigger slice of revenue from international flights in the future.

Fiercely competitive Indian carriers are struggling under massive debt, as they have to sell tickets below-cost in a market marred by high taxes on fuel and high airport charges.

POTENTIAL ETIHAD DEAL: Top executives from Gulf carrier Etihad and Jet met Civil Aviation Minister Ajit Singh and Trade Minister Anand Sharma on Thursday, in a sign that a deal is likely to be announced soon.

"Pursuant to the announcement of a liberalized FDI policy permitting foreign investment in Indian airlines, the company is in discussion with a reputed airline for a strategic investment in the company," Jet said Friday.

Jet expects to finalize a stake sale deal with Abu Dhabi's Etihad Airways in a week or so, an executive at the airline, who declined to be named, said.

The terms of the possible deal have not been disclosed, but a government source said earlier this month Etihad was in talks to pick up a 24% stake in Jet for up to $330 million. Any deal between an Indian carrier and a foreign airline has to be cleared by the Indian government. — Reuters