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FCI workers threaten agitation against SRM Excelsior Correspondent JAMMU, Oct 7: Various unions of Food Corporation of India (J&K) have threatened to intensify their agitation if the Senior Regional.....more Infrastructure sector attract NEW DELHI, Oct 7: Out of 6,154 foreign direct investment collaborations, both technical and .....more FIIs, MFs behave MUMBAI, Oct 7: The Foreign Institutional Investors (FIIs) and Mutual Funds behaved in variance.......more CII recommends steps to get NEW DELHI, Oct 7: Welcoming the measures being undertaken by the Government in the critical.....more |
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Sarda Industries organises architects, decorators meet Excelsior Correspondent JAMMU, Oct 7: Sarda Plywood Industries Limited, manufacturer of premium quality decorative veneer, laminates, wall paneling, Duro brand teak ply, block board organised an architect and interior ....more OTCEI aims to be a side MUMBAI, Oct 7: The Over the Counter Stock Exchange of India (OTCEI), which cherished the ......more LONDON, Oct 7: India’s Reliance Industries Ltd (RIL) has ...more Wary investors leave MUMBAI, Oct 7: Indian Equities remained rangebound and left market indices flat in...more |
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Infrastructure sector attract only 1,191 FDI approvals NEW DELHI, Oct 7: Out of 6,154 foreign direct investment collaborations, both technical and financial, in the post-policy period from January 1998 to December 2000, the infrastructure sector could attract only 1,191 approvals whereas the services, consultancy and electricals (IT related) sectors got over 2,050, according to a study by the Associated Chambers of Commerce and Industry of India (ASSOCHAM). The study revealed that fuels (power, oil, etc) received 367 (Rs 25,331 crore), telecommunications 292 (Rs 16,243 crore) and transportation (automobile, air/sea transport, passenger cars, auto ancillaries, and ports) received 532 approvals (Rs 8,802.96 crore). The total technical approvals in the post-policy period were 1,511 and financial 4,643. While the maximum number of technical collaborations were for electricals equipments (221), there were 318 financial collaborations in the services sector followed by telecommunications 273. The chamber analysis revealed that the collaborations in major sectors of the economy such as metallurgical industries were 167 (Rs 5,450 crore), telecommunications 292 (Rs.16,244 crore), chemicals (other than fertilizers) 353 (Rs 2,885 crore), drugs and pharmaceuticals 154 (Rs 1,786 crore), industrial machinery 264 (Rs 394 crore), consultancy services 249 (Rs 100 crore), mechanical and engineering 332 (Rs 590 crore), hotel and tourism 177 (Rs 1,620 crore), miscellaneous industries (ferrous, non-ferrous, special alloys, mining service, misc (other items) metallurgy 420 (Rs 1,864 crore), textiles (include dyed-printed) 204 (Rs 787 crore), food processing industries 148 (Rs 1,050 crore), machine tools 48 (Rs 125 crore), rubber goods 53 (Rs 677 crore), leather goods and pickers 43 (Rs 100 crore), glass 42 (Rs 638 crore) and ceramics 48 (Rs 182 crore). The ASSOCHAM study stated that whereas the services sector (financial, non-financial, banking, hospital and diagnostic centres) attracted 344 approvals (Rs 5,366 crore), the figure for consultantcy (design and engineering, marketing, construction and management (Rs 1,000 crore) and electricals (electrical equipment, computer software and software and electronics) was 1,461 (Rs 16,492 crore). The collaborations in other sectors of the economy such as agricultural machinery and cement and gypsum products were 24 (Rs 1,071 crore) and 16 (Rs 235 crore), paper and pulp including paper product were 37 (Rs 957 crore), earth-moving machinery were 20 (Rs 23 crore), commercial office and household equipment were 25 (Rs 459 crore), medical and surgical appliances were 31 (Rs 116 crore), scientific instruments were 26 (Rs six crore), mechanical surveying and drawing were three (Rs 38 crore), photographic raw film and paper were ten (Rs 15.23 crore), dye-stuffs were five (Rs 78 crore), fermentation were 12 (Rs six crore), shops, cosmetics and toilet preparations 15 (Rs 62 crore), boilers and steam generating plants were ten (Rs 30 crore), prime movers other than electrical were eight (Rs 25.4 crore) and timber products nine (Rs 18.27 crore). (UNI) |
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FIIs, MFs behave in variance for equities MUMBAI, Oct 7: The Foreign Institutional Investors (FIIs) and Mutual Funds behaved in variance with each other in equities with the former being net buyers at Rs 180 crore (US dollar 37.8 million) and MFs netting sales of Rs 96.36 crore during the trading week ended October five. FIIs and MFs, however, remained net buyers in debt at Rs 17.4 crore (USD 3.7 mn) and Rs 295.74 crore, according to data available with Securities and Exchange Board of India. On equity front, FIIs bought equities worth Rs 191.6 crore and offloaded to the tune of Rs 133.4 crore, thus turning into net buyers at Rs 58.2 crore (USD 12.2 mn) on October one, the highest for the week. The BSE benchmark 30-share index fluctuated in a narrow range between 2826.16 and 2748.33 before ending the week at 2812.90 as against last weekend’s close of 2811.60, a net gain of 1.30 points. FIIs were net buyers in equities worth Rs 51.1 crore (USD 10.7 mn) on October five. (UNI) |
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CII recommends steps to get sensex to 4000 in 3 months NEW DELHI, Oct 7: Welcoming the measures being undertaken by the Government in the critical areas of disinvestment and infrastructure projects, the Confederation of Indian Industry (CII) has called for focussed attention on the third important area - the stock markets. While some measures have already been introduced, both by the Government and the RBI, to infuse liquidity in the secondary stock markets, CII has outlined a series of measures to take the sensex up to 4000 in the next 3 months. First, in the background of the recent rate cuts by the federal reserve and the ECB, the RBI should cut interest rates by 1-1.5 percent. Although this may not spur investments in the real sector, it would certainly provide a positive signal to the equity market and industry, who have been expecting a rate cut for sometime now. Second, the RBI has initiated measures to encourage bank lending to market intermediaries against share collateral, with the safeguard of banks immediately liquidating the stock in the event of a margin shortfall. However, the margin charged, which has been fixed at 40 percent is too high, according to CII and should not exceed 25 per cent. Third, the ban on badla being the primary reason for the liquidity crisis and a drop in trading volumes, it is imperative to re-introduce systems of margin trading without the negative attributes of the earlier ones. Fourth, there is a need to remove margin requirements for FIs and FIIs immediately, which was introduced to prevent institutional selling of shares. CII pointed out that no other global stock has this rule, which is an arbitrary and artificial method to prevent fall in share prices. Fifth, while the move by the market regulator, SEBI, to increase the present five percent annual limit on creeping acquisitions to 10 percent is welcome, it should have been increased to 15 percent. Sixth, the budget had introduced two way fungibility between ADR/GDR and underlying domestic stocks. The drafting of the explanatory memorandum and subsequent notifications, however, suggest that it only applies to one or two companies. There is a need to be redraft and reinterpret the memorandum to allow real two-way fungibility. Seventh, there are a number of house-keeping issues that need to be dealt with such as reduction in dematerialisation timing, setting up of the Electronic Fund Transfer (EFT), need to demutualise stock exchanges and thus amend stamp duty and prune the number of stock exchanges in India. At the recent CII National Council meeting, Mr. K V Kamath, Managing Director and CEO, ICICI Ltd., emphasised the importance of healthy capital markets to the economy. For the equity markets, in particular, he suggested that there is a need for deregulation of insurance companies and pension funds to allow greater freedom to invest in equity. This would of course be subject to an improved regulatory environment with a strong regulator. On the other hand, tax breaks, primarily a reduction in the capital gains tax to 10 percent, would facilitate more retail participation in the market, he added. In the backdrop of the international and domestic economic scenario which may witness the postponement of US economic revival to the end of March 2002, weakening of domestic financial sector, cii has emphasised the need to carry out proactive reforms, every week, in all areas of the economy, and particularly in the capital markets. The measures in the capital markets would compliment the recent move by the Government to divest its 51 percent stake in CMC as well as the series of measures announced to accelerate implementation of infrastructure projects, CII said. (UNI) |
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Sarda Industries organises architects, decorators meet Excelsior Correspondent JAMMU, Oct 7: Sarda Plywood Industries Limited, manufacturer of premium quality decorative veneer, laminates, wall paneling, Duro brand teak ply, block board organised an architect and interior decorators meet here last night. Addressing the meet, Mr Prashant Maheshpuri, Director Delhi Office of Sarda Plywood Industries said that Sarda Plywood is a 40-years old company and despite unhealthy competition it is providing best product like Duroboard. "Our main aim is to fulfill the expectations of the customers", he said, adding "that is why company is giving foremost importance to the quality of the product". Disclosing that company’s annual turnover is Rs 75 crores, he said that company has set an eye on annual turnover of more than Rs 85 crore during the current year. "Despite dismal market conditions we have achieved mark of Rs 75 crore annual turnover which has proved that products of Sarda Plywood are how much popular in the country", he further said, adding company has also suffered a lot due to the ban on felling trees in the State of Assam . "We have shifted our factory from Assam to Rajkote in Gujarat and are manufacturing and sealing the product there", he informed and said that all process from the beginning and completion of the product is being performed in Rajkote factory. Mr Vikas Mahajan, Area Manager of the Sarda Plywood, while highlighting the qualities of the product, said that Company is exporting product from developed countries and using best and matured timber. "Sarda Plywood is taking such steps for the satisfaction of the customers which none other company has dared to take so far", he claimed and said that on the every product of Sarda Plywood there is computerised marking with different codes and time. "None can find two products of Sarda Plywood with same codes", he further said, adding Sarda Plywood has licence to keep check on the dealers so that duplicate product of Sarda Plywood could not be sold in the market. "The personnel of company’s search cell are visiting the premises and godown of dealers after regular interval of time to keep check on them too", he further disclosed. The company’s Area Manager further said that 6 years back Sarda Plywood launched veneers and presently it has 80 types of veneer. "Veneer is a revolutionary new concept in wall panelling and there are hard boards manufactured from wood fibres extracted exclusively from post consumer waste and forest industry byproducts", he said. He said that Gupta Agencies, Parade Road, Jammu is the dealer of Sarda Plywood Ltd in Jammu and Kashmir State. "Presently we don’t have any dealer in the Kashmir Valley but we are planning to give sub-dealership so that product of company could reach the valley freely. Mr Vipin Gupta of M/s Gupta Agencies was also present on the occasion. |
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OTCEI aims to be a side board to BSE, NSE MUMBAI, Oct 7: The Over the Counter Stock Exchange of India (OTCEI), which cherished the ambition of emerging as country’s NASDAQ, is now planning to take a cue from other global bourses by acting as a ‘side board’ to the two major stock exchanges in the country. The facility which is prevailing in major bourses of the United States, Japan and other countries, provides a trading platform to smaller companies before they are listed on the major bourses. Talking to UNI, the OTCEI Managing Director Pravin Mohonot said, OTCEI is in a position to offer its network to the two major bourses, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), within the purview of existing regulatory framework. According to him, the business on OTCEI has been eroded drastically in the recent past owing to various reasons. Its state-of-the-art trading system, with country-wide network could be better utilised in case the promoter institutions and the Government take initiatives in this regard. There is a concept of a side board and main board in the US and Japan, whereby smaller companies get listed on the side board first and get themselves transferred to the main board when they fulfill certain regulatory requirements, Mr Mohonot said. In line with this practice, several smaller companies could be traded exclusively on OTCEI before they are transferred to NSE and BSE, he said. This will result in increasing business volume on OTCEI. OTCEI, the first-ever electronic bourse in India, whose dream of becoming country’s NASDAQ, was virtually shattered for various reasons. It was set up by domestic financial institutions in 1992 to cater to the needs of smaller companies and Venture Capitalist (VC), of providing them a country-wide on-line trading platform. However, soon after the birth of OTCEI, yet another full-fledged on-line exchange ‘National Stock Exchange (NSE)’ was set up by these institutions in 1993. Most companies preferred NSE’s platform, the dealers too focused on NSE, therefore, the first-ever on-line bourse always remained on the sidelines for over eight years. In past eight years, OTCEI took several initiatives to attract traders, investors, companies, but could not succeed fully as the bourse had been reporting an average loss of Rs five crore since its inception. Although, the bourse did not allow the loss to increase this year, it could not post any profit either, the OTCEI MD said without giving exact details of the financial. OTCEI tried to reposition itself very recently to act as a supplementary to NSE. However, like any other bourse, OTCEI also saw drastic fall in the business volume after the introduction of rolling settlement, as it had to stop its hi-trade market session launched sometime in February last. According to Mr Mohonot, OTCEI is also considering various other options for the revival of the bourse, including the launch of trading in Government securities for which it has already received permission from the Reserve Bank of India (RBI). Besides, the exchange is also considering listing and trading of privately-placed corporate debentures, provided certain regulatory framework by the regulatory authorities are put in place. Mr Mohonot informed that there is no change in the promoters’ stake in OTCEI. ICICI and the Unit Trust of India continue to hold 20 per cent stake each, followed by IDBI 16 per cent, IFCI, GIC, LIC and SBI eight per cent each. Canfina holds about 5 per cent stake, he said. OTCEI also urged the regulatory authority as well as the Government, to allow shorter rolling settlement of t"3 on the OTCEI to improve liquidity on the bourse and introduction of spot trading, he added. (UNI) |
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LONDON, Oct 7: India’s Reliance Industries Ltd (RIL) has emerged as the only chemicals industry, to find a place in the World Investment Report (WIR) 2001 list of the top 50 transnational companies from developing countries around the world. The report is published every year by the United Nations Conference on Trade and Development (UNCTAD). Hutchison Whampoa Ltd of Hong Kong, with diversified industries, tops the list with total assets worth 48,157 million dollars. Reliance Industries, with total assets worth 6,733 million dollars, was ranked 41 in the foreign assets ranking, and 47 in the Transnationality Index (TNI). The TNI is calculated as the average of three ratios: foreign assets to total assets, foreign sales to total sales and foreign employment to total employment. The WIR 2001 is the eleventh report in an annual series prepared by the United Nations Conference on Trade and Development (UNCTAD) that has been recognised as the most up-to-date and comprehensive source of information as well as analysis regarding Foreign Direct Investment (FDI). The WIR attracts a lot of attention from policy makers, investment decision-makers and the business community around the world. Even the International Chamber of Commerce (ICC), the World Business Organisation, appreciates the analytical and statistical content of the World Investment Report. (PTI) |
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Wary investors leave equities flat as war fears persist MUMBAI, Oct 7: Indian Equities remained rangebound and left market indices flat in the week ended October 5, amid persisting uncertainty over the United States’ next move against Afghanistan. In the absence of any quick action from Washington, wary investors preferred not to take any long-term positions. The markets, however, witnessed some stock and sector-specific movements in scrips, traders said. The half-point interest rate slash announced by the United States federal reserves to give the much-desired boost to the flagging economy, raised hopes of a similar announcement by the Reserve Bank of India. The expectation pushed up banking scrips slightly, even as the overall improved sentiment dispelled the gloom hanging over the market. The upbeat earnings forecast by the US-based technology firms like, CISCO and dell comp., led to some recovery in prices of domestic software firms. The NASDAQ gained about 7.1 per cent, the Dow Jones rose about 3.1 per cent and the SP 500 tacked on about 2.9 per cent. The rise at the wall street did trigger some buying interest in the domestic stocks. But war fears in the region and worries about second quarter results for domestic firms dampened investors, making them wait till a clearer trend emerged. The 30-stock Bombay Stock Exchange (BSE) sensitive index-sensex, gained marginally by 1.30 points to 2,812.90 on Friday, compared with 2,811.60 on Friday last. During the week under review, the S P CNX nifty of the National Stock Exchange (NSE) rose by 0.85 points to close at 914.60, against the last week’s close of 913.85. According to trade sources, the market sentiment was still weak and cautious as investors were following ‘wait-and-watch’ policy. The buying, resorted to by institutional investors’ largely limited the slide in the market. Disinvestment decisions taken by the Government on Friday would certainly bring some buying interest in the state-owned companies as the markets opens on Monday, said a broker. The recent terrorist attack in Kashmir and the farce hijacking of Alliance Air flight, dampened market sentiment. However, bargain picking by retail as well as institutional investors in defensive counters, like pharmaceutical and cement scrips, following reports of encouraging cement dispatches for september, induced some buying interest in the counter. Software major, infosys, gained on Friday after the news of its Asia-Pacific region business expansion plan. Select consumer stocks declined on reports of a fall in their sales figures. The net purchases by the Foreign Institutional Investors (FIIs) in equity which was put at Rs 180 crore during the week also lifted market sentiment, traders said. (UNI) |
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