B U S I N E S S

EGoM approves 10% stake sale in IOC
New Delhi, January 16
In the first disinvestment through block deal this fiscal, a ministerial panel today approved selling 10% government stake in Indian Oil Corp (IOC) to ONGC and OIL to rake in Rs 4,800-5,000 crore.

Anand Sharma calls for financial linkages among SAARC nations
New Delhi, January 16
Commerce and Industry Minister Anand Sharma today announced India’s support to a liberalised regional visa regime and more than doubling of the number of business visa exemption stickers from the current level of 200 to 500.

Pak for relaxing visa regime to boost trade
New Delhi, January 16
With a view to boosting trade ties with India, Pakistan today pushed for steps like relaxing the visa regime, improving mobile connectivity and facilitating banking relations.

Infosys topples ITC to become most-valued stock in Sensex
Mumbai, January 16
IT major Infosys today regained its status as Indian stock market's most influential stock in key benchmarks, pushing FMCG giant ITC to the second position. At close of trade today, Infosys commanded a weight of 8.67% at the 50-share Nifty, while ITC had 8.66% weight.

EGoM approves 10% stake sale in IOC

New Delhi, January 16
In the first disinvestment through block deal this fiscal, a ministerial panel today approved selling 10% government stake in Indian Oil Corp (IOC) to ONGC and OIL to rake in Rs 4,800-5,000 crore.

With Oil Ministry continuing to be opposed to selling IOC shares on stock market like other disinvestments, an Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram today decided to sell 24.27 crore shares or 10% government stake in the company to ONGC and Oil India Ltd.

"In-principle we have taken a decision for a block deal. Modalities will be worked out (soon)," Oil Minister M Veerappa Moily told reporters after the 35-minute meeting.

The stake sale will happen sometime next week after the Boards of ONGC and OIL decide, Oil Secretary Vivek Rae said.

Sudhir Vasudeva, chairman of ONGC, which already holds 8.77% stake in IOC, said "most likely" the 10% stake will be split equally between ONGC and OIL.

"The 5% stake will cost us Rs 2,200 to 2,300 crore and this amount will not have any bearing on our capital expenditure plans," he said.

OIL is sitting on a cash pile of about Rs 8,000 crore.

"We feel that the share of IOC is grossly under-priced right now. And it commands more value. Normally, we would not want to do a block deal (but since share price is low) we thought we should follow this route which would enable revenues to be raised," Rae said.

The sale will be as per SEBI's rules for block deal which says the rate should be 1% higher or lower than previous day's closing price, he said. "Boards of two companies have to now meet to pass a resolution," he added.

Rae said there will be no lock-in period and both ONGC and OIL would be free to encash their shares anytime. — PTI

Govt to rake in Rs 5,000 cr

• The govt will sell 24.27 crore shares to ONGC and Oil India Ltd and rake in approximately Rs 5,000 crore
• The stake sale will happen sometime next week after the Boards of ONGC and OIL clear it
• The 10% stake is likely to be split equally between ONGC and OIL
• There will be no lock-in period and both the PSUs would be free to encash their shares anytime

Anand Sharma calls for financial linkages among SAARC nations
Tribune News Service

New Delhi, January 16
Commerce and Industry Minister Anand Sharma today announced India’s support to a liberalised regional visa regime and more than doubling of the number of business visa exemption stickers from the current level of 200 to 500.

Inaugurating the 5th SAARC business leaders conference here, Sharma emphasised the need for activating and concluding the SAARC Agreement on Trade in Services as growth in manufacturing will necessarily give rise to a greater demand for services. "We need to learn from the positive spin-offs that have come from regional economic agreements such as NAFTA and the economic integration that is demonstrated by the European Union."

Sharma called for the establishment of linkages among the financial institutions of the SAARC nations and said, "We support the industry's demand for opening of Indian banks in each SAARC country to support businesses and act as a catalyst to greater economic engagement.”

Ahmed Saleem, secretary-general, SAARC, said while cooperation in diverse areas has grown significantly over the years, it was up to the potential as most goods in South Asia are still procured from outside the SAARC region.

He announced that the SAARC nations were close to finalising an intra-SAARC investment agreement and that substantive progress had been made under the SAFTA agreement. Member nations were close to reducing the sensitive list of import items.

Ficci president Sidharth Birla said the real test for SAARC will be to benefit from globalisation and deeper regional integration, eventually creating a South Asian Economic Union.

Pak for relaxing visa regime to boost trade
Tribune News Service

New Delhi, January 16
With a view to boosting trade ties with India, Pakistan today pushed for steps like relaxing the visa regime, improving mobile connectivity and facilitating banking relations.

"The non-tariff barrier has nothing to do with trade at all. It is the visa regime which is hampering movement of businessmen and trade," Pakistan Minister for Commerce and Textile Khurram Dastagir Khan said while addressing a CII function.

He underlined the need for relaxing visa regime to facilitate movement of businessmen.

Referring to the issue of mobile connectivity and banking issues, Khan said, “Both the countries should have these kinds of connectivities, which facilitate trade and investment." Khan, who is leading a delegation of 70 businessmen, said efforts were on to enhance two-way trade through the Wagah border.

"An enhancement of trade through Wagah is under active negotiation at this moment. We hope to have a positive outcome on that," he said.

On Pakistan according the Most-Favoured Nation (MFN) status to India, Khan said, "regarding the 'M' word, let us just say that we have shifted it one letter down to 'N' and now we are discussing 'Non-Discriminatory Access'.

"The idea of course is (that) instead of getting caught or rather stranded in nomenclature, we should work sincerely towards proving substantial market access to each other whatever nomenclature we use," Khan said.

Infosys topples ITC to become most-valued stock in Sensex

Mumbai, January 16
IT major Infosys today regained its status as Indian stock market's most influential stock in key benchmarks, pushing FMCG giant ITC to the second position. At close of trade today, Infosys commanded a weight of 8.67% at the 50-share Nifty, while ITC had 8.66% weight.

As per BSE website, Infosys is now the top holding in 30-share S&P BSE Sensex, followed by ITC. Shares of Infosys ended 0.38% higher at Rs 3,724.70, while ITC was down 0.81% at the BSE.

Infosys has held the most influential status during various periods in the past. It was toppled by ITC and RIL thereafter.

Infosys stock rallied 8.63% in the past six sessions. The stock touched its 52-week high of Rs 3,737 today. — PTI

corporate results
TCS Q3 profit surges over 50%

Mumbai, January 16
IT services major Tata Consultancy Services (TCS) today posted a better than expected growth of 50.3% in consolidated net profit at Rs 5,333 crore for the third quarter ended December 31, aided by sectors like life sciences, manufacturing and improved business in Europe.

The country's largest software services exporter had reported a net profit of Rs 3,550 crore in the year-ago period, as per a BSE filing citing Indian GAAP figures.

Net profit as per Indian IFRS rose by nearly 50% to Rs 5,314 crore in the third quarter as against Rs 3,549.62 crore in the corresponding period in the previous year.

Consolidated revenues rose by 32.5% to Rs 21,294 crore in the October-December quarter this fiscal compared to Rs 16,070 crore in the same quarter of 2012-13 fiscal.n Buoyed by the results, TCS also increased its hiring target for 2013-14 fiscal by 5,000 to 55,000.

HCL Q2 net soars 58%

HCL Technologies today posted a 58.4% rise in profit for the quarter ended December 31, aided by growth in Europe and contracts won in financial services, infrastructure and manufacturing. The company’s revenue crossed $5 billion in 2013, a first for the company.

HCL’s profit rose to Rs 1,496 crore in the second quarter ended December 31 from Rs 944 crore in the year-ago period.

Axis Bank profit jump 19%

Axis Bank today reported a 19% increase in net profit at Rs 1,604 crore for the third quarter ended December 31, 2013-14 fiscal.

The bank had posted net profit of Rs 1,347 crore for the October-December quarter of last fiscal, 2012-13, Axis Bank said.

The total Q3, 2013-14 income of the bank increased to Rs 9,433.55 crore, from Rs 8,580.30 crore in the year-ago period.

Bajaj Auto net up 10.48%

Two-wheeler major Bajaj Auto Ltd today reported a 10.48% increase in its standalone net profit for the third quarter ended December 31, 2013 at Rs 904.55 crore, the highest ever in any quarter, on the back of good export performance.

However, total income of the company declined to Rs 5,131.24 crore in the quarter under consideration from Rs 5,412.71 crore for the same period a year ago, it added. — PTI