New Delhi, November 1
With the stock markets soaring to new all- time highs, Finance Minister P Chidambaram today cautioned investors to guard against excessive exuberance.

"The markets seem to be very happy. More than anyone else, the markets seem to welcome the RBI and government measures. But I would caution investors against excessive exuberance," he said today.

The benchmark Sensex today climbed to an all-time high of 21,293 points, the last day of Samvat 2069 before Diwali. The benchmark index climbed to an all-time high of 21,293 points after 5 years in intra-day trade and ended at a closing record of 21,196 points.

Indicating that green shoots are appearing in the economy, Finance Minister P Chidambaram said though inflation and reviving investment remain a challenge, steps taken by the government in recent months are beginning to yield results.

Addressing a press conference today, Chidambaram cited macro indicators such as core sector growth, exports, FDI and current account deficit to make the point that the economy is improving.

The Finance Minister said the good indicators are a bumper harvest and the current account deficit will come down to $60 billion, down from the earlier target of $70 billion due to rising exports and declining gold imports.

“Core sector growth, strong monsoon and healthy exports augur well for economic growth. There are still many challenges, the most important being inflation and reviving investment”, he said.

Asking Indian industry to start investing, he said domestic business houses which do business here and believe in the story must not sit on idle cash. He also expressed the government’s commitment to fully support new investment proposals.

He said the government will endeavour to get the long-pending insurance amendment Bill, which seeks to raise the FDI in the sector to 49% from 26%, passed in the forthcoming winter session of Parliament.

As regards the Direct Taxes Code (DTC), he said, the draft amendments have been finalised and would be placed before the Cabinet for approval.

The core sector data released yesterday has raised some hopes of better industrial activity. Reflecting a pick up in the industrial activity, the core sector industries recorded 8% growth in September, highest in the past 11 months. Analysts, however, say it is premature to call it a turnaround.

Aditi Nayar, senior economist, ICRA, said the encouraging pick-up in core sector growth along with the double-digit rise in merchandise exports suggests that the Index of Industrial Production may post a modest improvement in September 2013 as compared to the first five months of this fiscal. “Nevertheless, it would be premature to conclude that a turnaround is underway based on today's 8% core sector growth print, until there is evidence of a sustained improvement in manufacturing growth”, she added.

Political factors are also playing their part in the market rally with the much depending on the trajectory of the assembly elections. Dipen Shah, Head, Kotak Securities, said, “We believe that, in the near term, focus of the markets will continue to remain on global liquidity, second quarter results as well as outcome of the state elections which are going to be held in 5 states”. 

New Delhi, November 1
There was no festive cheer for the reeling automobile industry as the car sales continued to remain flat in October despite heavy discounts being offered by the manufacturers.

The high input costs, fuel prices and no relief from the government on the interest rate front saw most car manufacturers, including Maruti Suzuki India Ltd (MSIL), recording poor sales, reflecting the mood of the market.

Sales of Maruti grew marginally by 1.9% at 1,05,087 units in October due to healthy export demand. The company had sold 1,03,108 units in October 2012. The situation was quite the same for Hyundai Motors, which also saw its sales remaining flat.

MSIL’s sales in small car segment, including M800, Alto, A-Star and WagonR, declined by 6.8% to 39,379 units last month.

In the compact segment comprising Swift, Estilo and Ritz, the sales declined by 1.2% to 22,188 units.

Hyundai's domestic sales were marginally up at 36,002 units during the month from 35,778 units in October 2012.

Tata Motors and Mahindra & Mahindra (M&M) reported a drop in sales.

Tata Motors' total sales, including exports, in October fell by 28%, which stood at 51,638 units from 71,771 units sold in the corresponding month of 2012.

Tatas' domestic passenger vehicle sales were down 33% in the month under review and stood at 14,133 units from 21,119 units in October, 2012.

While homegrown firms reported decline in sales, their global rivals like Toyota, Honda, Ford and General Motors witnessed growth during the month riding on new and refreshed model launches.

Honda Cars India Ltd posted a 38.70% increase in its domestic sales in October at 11,214 units, riding on the success of its entry level sedan Amaze.

Similarly, on account of good numbers by its SUV EcoSport, Ford posted a rise of 21% in sales at 9,163 units.

New Delhi, November 1
The government today slashed the import tariff value of gold to $440 per 10 gram and raised it on silver to $738 per kg, in line with global prices of the precious metals.

The import tariff value is the base price at which the customs duty is determined to prevent under-invoicing.

The tariff value on imported gold was hiked two days ago to $442 per 10 gram, while it was kept unchanged at $699 per kg for silver.

Normally, the import tariff value is revised on a fortnightly basis. The sudden revision has taken place in view of volatility in the global prices.

The notification in this regard has been issued by the Central Board of Excise and Customs (CBEC), an official statement said.

Apart from precious metals, tariff value on imported brass scrap has been slashed to $3,840 per tonne from $3,933 per tonne maintained till yesterday. — PTI

New Delhi, November 1
The government has ordered ONGC to pay a record Rs 13,796 crore fuel subsidy for the July-September quarter, a move which will dent ONGC's profitability.

The Oil Ministry on October 31 issued orders asking upstream oil and gas producers like ONGC and Oil India Ltd (OIL) to give Rs 16,729.74 crore to make up for 47% of the Rs 35,328 crore revenue that retailers lost on selling diesel, domestic LPG and kerosene at government controlled rates in second quarter.

It is expecting the Finance Ministry to make up for the remaining by way of cash subsidy, a top official said.

Retailers like Indian Oil Corp (IOC) sell diesel and cooking fuel at rates which are way below cost. The losses they incur are met by government cash subsidy as well as through support from upstream firms.

Of the Rs 16,729.74 crore that upstream firms have been asked to pay for Q2, ONGC's share will be Rs 13,796.04 crore while OIL will bear Rs 2,233.70 crore. Gas utility GAIL will pay Rs 700 crore, he said.

The subsidy ONGC has been asked to pay is 11.9% more than Rs 12,330 crore fuel subsidy outgo in July-September quarter of 2012. It is also 9.3% more than Rs 12,622 crore payout in Q1 of the current fiscal.

ONGC sources said the company's profitability was impacted by Rs 7,131 crore because of the subsidy in Q1 and a higher subsidy in September quarter would severely dent its profitability.

The company's net profit fell 33.92% in April-June to Rs 4,015.98 crore.

Fuel retailers had in Q1 of current fiscal lost Rs 25,579 crore on sale of diesel and cooking fuel. Of this Rs 15,303.84 crore came from upstream firms. — PTI

New Delhi, November 1
The Supreme Court today upheld the appointment of UK Sinha as chairman of market regulator SEBI, rejecting allegations of conspiracy and mala fide intentions in the procedure followed by the government.

The government had adopted a fair method which was in accordance with the legal provisions meant for the purpose, a Bench comprising Justices SS Nijjar and PC Ghose held while dismissing a PIL that had sought quashing of Sinha’s appointment.

The PIL petitioner, Arun Kumar Aggarwal, had also sought a CBI probe into the appointment. The SC had rejected this plea while issuing notice to the Centre on September 26, 2012.

The petition had named President’s secretary Omita Paul, who was adviser to the then FM Pranab Mukherjee at the time of Sinha’s appointment, as a respondent, contending that she had ignored the rules to facilitate the selection of Sinha at the cost of other candidates.

New Delhi, November 1
Security concerns, heavy discounts, abundant choices and rising fuel prices are some of the reasons why many Internet savvy Indians have shifted to online shopping this Diwali, says an Assocham survey.

This could expand e-commerce business by 250% this festive season in major cities, it said.

"Online buying trends have witnessed a significant jump this Diwali due to aggressive online discounts, rising fuel prices and abundant online choices keeping shoppers indoors.

Plus there are security concerns, besides other inconveniences in big cities," Assocham secretary-general DS Rawat said.

Based on feedback received from 1,200 traders, the survey said online shopping could grow by 250% during this festive season in big cities like Delhi-NCR, Lucknow, Kolkata, Chandigarh, Dehradun, Pune, Mumbai, Ahmedabad, Hyderabad, Cochin, Chennai, Udaipur and Jaipur.

Most products bought and sold online during Diwali comprise gift articles (58%), electronic gadgets (41%), accessories apparel (36%), apparel (36%), computer and peripherals (33%), hotel rooms (20%), home appliances (16%), toys (16%), jewellery (15%), beauty products (12%) and health and fitness products (12%), the survey said.

"Shopkeepers in major economic hubs clocked sales worth Rs 5,000 crore in last few days through online shopping in October 2013," Rawat said quoting the survey.

Other reasons for e-shoppers multiplying are factors such as home delivery which saves time, along with '24x7' hours shopping with ease and availability factors for product comparisons, it said.

As many as 71% of those surveyed in Delhi who are Internet savvy said they prefer shopping online, while 21% preferred to shop in traditional markets during Diwali.

In other cities like Mumbai, 55% population used to the Internet chose to buy daily routine products through online shopping in 2012-13. It said 38% of regular shoppers are in 18-28 age group, 52% in 29-38, 8% in 39-49 and 2% in the age group of 50-60. — PTI 

New Delhi, November 1
Reliance Communications today said consumers can own the 16 GB models of iPhone 5s and 5c by paying Rs 2,999 and Rs 2,599 per month, respectively, for 2 years.

The firm said no down payment is required to purchase Apple's iconic brand.

It added that users will not receive any usage bill for 24 months, as the monthly payments include all usage charges. Customers would be required to pay additionally for international calls and international roaming. RCom said. — PTI

BRIEFLY

Forex reserves rise to $283 bn
Mumbai: The foreign exchange reserves rose for the fourth consecutive week with the week to October 25 adding another $1.828 billion taking the overall forex kitty to $282.95 billion, the RBI said on Friday. —PTI

Pillai appointed MCX-SX chairman
Mumbai: Financial Technologies-promoted stock exchange MCX-SX said on Friday it has appointed former Union Home Secretary Gopal Krishna Pillai as its chairman. Also, former acting chairman of LIC, Thomas Mathew T, has been appointed as the vice-chairman. — PTI

Allahabad Bank holds credit camp
Chandigarh: Allahabad Bank conducted a credit camp at Shahpur on Thursday. Loans amounting to Rs 11 crore were disbursed during the camp. AK Aggarwal, DGM, Chandigarh zone, said the bank would open five more branches in Haryana. — TNS

BHEL bags Rs 2,569-cr order
New Delhi: BHEL said on Friday it has bagged a Rs 2,569-crore contract from Neyveli Lignite Corporation for supplying equipment for the company's 1,000 MW thermal power project. — PTI

Finnair turns 90
New Delhi: Finnair, the world's fifth oldest airline which is still in operations — turned 90 on Friday, with more and more focus on Asia, particularly India. Finnair offers direct connections from Helsinki to over 60 European destinations and 13 destinations in Asia. It was established on November 1, 1923. — TNS