|
|
| Manufacturing
sectors register health growth NEW DELHI, Aug 11: With the Indian economy showing signs of revival, manufacturing sectors by ...more Rupee maintains firm MUMBAI, Aug 11: The rupee managed to maintain its firm trend against the US dollar for the tenth ....more Revised underwriting MUMBAI,Aug 11: The General Insurance Company (GIC) has decided to check the.....more Inflation shoots to 42 NEW DELHI, Aug 11: An upward spiral in prices of manufactured products triggered....more |
|
AI, IA suffer
losses on operations of most aircraft types NEW DELHI, Aug 11: Air India and Indian Airlines, which together fly about 340 odd flights a week, .......more Call rate stable, gilts MUMBAI, Aug 11: The interbank call rate stayed stable around the repo rate amid repeated Open....more 4 NALCO officials, NEW DELHI, Aug 11: CBI has registered a case against seven persons including four senior officials ....more Bullion, select seeds, edible MUMBAI, Aug 11: Prices of bullion, select seeds and edible oils firmed up on bullish advice from...more |
|
|||
Manufacturing sectors register health growth NEW DELHI, Aug 11: With the Indian economy showing signs of revival, manufacturing sectors by and large have registered a fairly high growth in the first quarter of this fiscal, as per the latest survey. The CII-Ascon survey, which covered 127 manufacturing and 12 services sectors for the period April-June 2002 over the corresponding period last year, pointed out that 15 sectors had recorded an excellent production growth rate while 22 registered high growth. While 22 manufacturing sectors revealed negative growth, the number of sectors that achieved moderate growth was 68. Citing the reason for improvement in production trend, the survey highlights that the economic revival due to pick-up in overall demand, stability in Government and the Government’s commitment to continue on the reform path, helped manufacturing sectors register fair growth. The performance of sectors in the excellent growth category, with production more than 20 per cent, has gone up to 15 in 2002 as compared to 6 in 2001 in the manufacturing industry. The survey finds that of the 17 sectors, including two services sectors, motorcycles (49 per cent), transformers (31 per cent) and VCP/VCD (25 per cent) are among the fastest-growing in the excellent growth category. The number of sectors in the high-growth category remains same at 22 as last year. Drugs and pharma, auto components, electronic components, among others, recorded high growth while hardware and personal computers have moved to the high-growth segment from last year’s excellent growth category. The survey shows an increase in the number of moderate growth sectors to 68 as compared to 50 last year, besides a decrease in the negative growth category from 29 to 22. It finds growth of less than 10 per cent in all 74, including 68 manufacturing and 6 services sectors, of the 139 sectors. Aluminium, textile machinery, washing machines, light commercial vehicles and colour televisions in the moderate group showed an upward trend compared to the corresponding period last year. According to the CII-Ascon survey, some of the sectors that moved from positive to negative growth in April-June 2002 — against the same period in the previous fiscal — included cars, diesel engines, capacitors and electric motors. Though the number of sectors in the negative growth category has declined, it indicates, many sectors have suffered because of the absence of a clear captive power policy, competition from the unorganised sector, duplication of brands and manufacture and sale of spurious products at cheaper prices. Emphasising the need for a well-defined national standard, the survey suggests that to make products more competitive and export-oriented, the cascading effect of customs duty, sales tax, expenditure and luxury tax, local taxes such as octroi and entry tax need to be reviewed. Besides, it recommends that the high excise duty on cement, automobiles and machine tools should be removed, agriculture be given a boost and infrastructure status be accorded to the healthcare sector. The survey also stresses on adoption of a policy to grow more oilseeds and that the recommendations of the it hardware report be implemented fast. It notes that exports in the first quarter of this fiscal have maintained more or less the same trend achieved in the corresponding period last year but have improved from the bad position in the last two quarters ending with the last financial year. The findings tell that the decline in overseas demand, steep fall in international prices, inadequate incentives, lack of required initiative to address the issues and action against Indian exports — including anti-dumping united states, some european countries and China — have adversely affected exports. For the next six months, the survey foresees a silver-lining based on policies and programmes initiated by the Government on some sectors. The survey underlines that the process of reform already initiated in some sectors, which have started bearing fruit, needs to be further strengthened with periodic evaluation. (UNI) |
|||
 |
|||
Rupee maintains firm trend against dollar, premiums slip MUMBAI, Aug 11: The rupee managed to maintain its firm trend against the US dollar for the tenth straight week on strong dollar inflows despite an effort by state-run banks to check it gains at the interbank foreign exchange (forex) market during the week ended August 9. The steady dollar inflows from exporters and Non-Resident Indians helped the rupee to stay stable despite a slippery trend witnessed in other major currencies against the US dollar on the back of a strong rebound in US stocks, forex dealers said. Though overall factors like a falling trade deficit, rising forex reserves and easy crude oil prices were positives for the rupee, the activities of the foreign funds in the capital market created some temporary mismatch in demand and supply, a treasury head at a private brokerage firm said. Further the continuous indirect intervention by the RBI in the forex market of mopping up excess dollar supply from the market through state-run banks to stem the local unit’s appreciation also limited the rupee’s gains. According to Mr R K Amin, Chief Forex Dealer at the development credit bank, the domestic currency opened the week on a firm note at 48.64/65, witnessed a sharp fall of seven paise on Tuesday as news of a militant attack in Kashmir resulting in the killing of eight Amarnath pilgrims and injuring 23 others as it created some panic among dealers, prompting them to cover dollars heavily. Heavy dollar coverings by some large state-owned companies also added pressure on the rupee, he said. However, the unit regained lost ground the next day on strong dollar supply and waning demand. The rupee stayed stable around 48.65 level in the last three days of the week amid range-bound tradings. The domestic unit closed the week at 48.6450/6550, half paisa up from 48.65/66 of the previous weekend. Forward dollar premiums moved up on paying pressure during the week. While the rising yield in gilt markets put pressure on premiums initially during the week, the slight liquidity pressure in the money market and RBI Governor Dr Bimal Jalan’s statement towards the weekend that there was no relation between the US and Indian interest rate cuts, further pushed up premiums. The sixth-month annualised premiums opened firm at 4.33 per cent, and moved up further to close the week at 4.63 per cent, up from 4.31 per cent of the previous week’s close. In the cross currency, the rupee posted smart gains against the euro by 96 paise to 47.20 during the week from 48.16 of the previous week, 199 paise against pound sterling to 74.42 (76.41) and 50 paise against Japanese yen to 40.43 (40.93) as the dollar rallied in overseas markets. In the fiscal year, the rupee, which gained by 16 paise against the dollar to 48.64 from 48.80, fell sharply by Rs 4.65 against the euro to 47.20 (42.55), Rs 4.90 against the pound sterling to 74.42 (69.52) and Rs 3.67 against the Japanese yen to 40.43 (36.76) as these currencies staged smart rally in the last few months. (UNI) |
|
Revised
underwriting guidelines of GIC hit MUMBAI,Aug 11: The General Insurance Company (GIC) has decided to check the high claim ratio of its mediclaim policy through certain measures perceived to be a financial burden on policy holders. It has decided to revise its ‘mediclaim underwritting guidelines" so as to bring down the age slab for which medical tests are not required from the current 60 years to 45 years. As per the new underwriting guideline, policyholders above 45 years have to undergo 13 medical tests by panel doctors, at a cost of Rs 550. Its customers will have to fast for 12 hours before the test and medical certificates from family doctors will not be accepted, sources said. The company has also raised the premium by 20 per cent. The measures are also aimed at reducing the increasing number of grievances related to mediclaim. The company has decided to implement the revised guidelines with immediate effect. The GIC Chairman has directed sub-divisional offices that all mediclaim proposals have to be referred to regional office for approval. If additional cover is sought, the application is to be forwarded to the regional office mentioning the exact covers sought and premium rate recommended to be charged. This will be referred to the company headquarter for approval. These measures are expected to pose a lot of difficulties to aged policy holders, sources said. They said GIC is encouraging private companies in this sector with its new guidelines. There are 21 panel doctors including 11 in western suburbs, nine in central suburbs and one in Navi Mumbai. A mediclaim policy holder has to undergo medical tests such as CBC, blood sugar fasting, blood sugar-pp, sgpt, creatinine, cholesterol, triglycerides, hdl cholesterol, routine urine, ecg, X-ray chest PA view, physician check up and eye check up for cataract and glaucoma, source added. Even after the medical tests, the divisional-in-charge has total discretion on the sum insured and the coverage to be granted. Any increase in the sum insured or enhancement of sum insured is to be considered a fresh proposal and the proposer has to undergo pre-acceptance check-up. Besides, policy holders have to submit their identification documents at the time of health check-up including their passport, voter’s identity card, pan number, driving license and employer’s identity card, sources said. (UNI) |
|
Inflation shoots to 42 week high at 2.85 pc NEW DELHI, Aug 11: An upward spiral in prices of manufactured products triggered a 0.12 per cent jump in the inflation rate for the third straight week to close at a 42-week high of 2.85 per cent on July 27 while the erratic monsoon offered little respite to the agriculture sector. This was the highest inflation rate recorded since October 13, 2001 when it stood at 3.04 (final) per cent. It was 2.73 per cent the week before but was marginally above five per cent at 5.15 per cent during the same period last year. Dismantling of the administered price mechanism of petroleum products has been indirectly responsible for the volatile price index of consumer products since the beginning of this fiscal. The impending attack on Iraq by the United States, moreover, will affect the international crude prices which in turn will push up domestic rates. The increase in the inflation rate was attributed to prices of bran, duplex board, basic pig iron and foundary pig iron, joist and rolls, skelps, oromild steel and tensil plates. To compound the problems of the sagging economy, the scanty rainfall in northern, western and central India and the unprecedented floods in eastern parts of the country played a major role in pushing up prices. Given the grim drought situation, captains of industry and economic Pundits now forecast further upturns in the inflation rate and WPI during the coming months. Despite the dip in the index for primary articles, the official wholesale price index for all commodities (base 1993-94) rose by 0.2 per cent to 165.8 points during the week ended July 27 as against 165.5 the previous week. The final WPI for the week ended june one was calculated at 163.6 pts as against the provisional 162.9 and the annual rate of inflation based on this index stood at 1.93 per cent instead of the 1.50 officially announced earlier. The primary articles index declined by 0.1 per cent to 173.1 pts from 173.3 while the index for manufactured products rose by 0.3 per cent to 147.0 from 146.6. However, the index for fuel, power, light and lubricants remained unchanged at its previous week’s level of 238.4 pts. For the food articles group, the index dropped by 0.1 pts to 180.3 from 180.5 due to prices of mutton (five per cent), tea (four per cent), poultry chicken (three per cent), jowar and maize (two per cent each) and pork (one per cent) being slashed. Conversely, the prices of barley (six per cent), marine fish (two per cent), arhar, moong, masur and urad (one per cent each) moved up. In the non-food articles group also, the index dipped by o.3 per cent to 159.4 pts from 159.8 the previous week due to lower prices of rubber (for per cent), groundnut (three per cent) and sunflower (one per cent) while the prices of rape seed and mustard seed (four per cent), cotton seed, rawhide and raw tobacco (one per cent each) inched up. Among the major manufactured products group, food products rose by 0.2 per cent to 152.8 from 152.5 due to hikes in prices of all kinds of bran (13 per cent), sunflower oil (two per cent), khandsari, gur, hydrogenated vanaspati, groundnut oil and oil cakes (one per cent each) while there was a downslide in prices of sooji-rawa, biscuits and gingelly oil (one per cent each). Paper and paper products upped by 0.3 per cent to 174.3 from 173.7 for the previous week due to a considerable increase in the price of duplex boards (11 per cent). The non-metallic mineral products index climbed 0.1 per cent to 139.9 from 139.7 due to a marginal increase in prices of cement. Basic metals, alloys and metal products shot up 2.1 per cent from 141.6 pts to 144.6 owing to uptrends in the prices of basic pig iron and foundary pig iron (16 per cent each), joist and rolls (13 per cent), skelps (11 per cent), oromild steel and tensil plates (eight per cent), blooms (seven per cent), billets and slabs (six per cent), heavy light structural (four per cent), heavy rails — 32 kg upwards (three per cent) and angles, channels sections (one per cent). The index for machinery and machine tools group slid by 0.2 per cent to 129.8 pts from 130.0 the previous week with prices of black and white tv sets coming down six per cent. The prices of dry cells, however, moved up two per cent. Indices for all other groups remained static. (UNI) |
|
AI, IA suffer losses on operations of most aircraft types NEW DELHI, Aug 11: Air India and Indian Airlines, which together fly about 340 odd flights a week, suffer operating losses on most of their aircraft, barring A-310s and boeing 300-B4S, according to official figures. Details for the year 2000-01 on the operating costs, revenues and quantum of profits and losses of different types of aircraft of these airlines show it was only Air India’s A-310S, including those leased, and B-300 B4S which were recording operating profits. All other aircraft types, mostly boeings of different makes, and Airbus 300S and 320S were registering operating losses, the figures showed. While B-747 400S of Air India and B-737S of Indian Airlines recorded the maximum operating losses of over Rs 89 crore and Rs 95 crore respectively, these were followed by Rs 86 crore loss on operations of A-300 by ia and about Rs 57 crore on ai operating B-747-300 combis. These aircraft types were followed by IA’s A-320s with operating losses of Rs 61 crore and AI’s B-747-200s of Rs 31 crore, the figures showed. However, the two types of aircraft - A-310S and B-300 B4S - of AI have registered about Rs 68 crore and over Rs 35 crore worth of operating profits respectively in that year. While AI operates 147 flights on an average each week, ia operates 190 flights. Both carriers are planning to acquire additional aircraft, mostly on dry lease, to raise their fleet strength. (PTI) |
|
Call rate stable, gilts pare early gains MUMBAI, Aug 11: The interbank call rate stayed stable around the repo rate amid repeated Open Market Operations (OMO) of the Reserve Bank of India (RBI) and auction outflows during the second week of the reporting fortnight, ended August 9. The call rate opened at 5.70-5.75 per cent and moved in a tight range of 5.60-5.80 per cent during the week and even towards the end of the reporting fortnight. The rates did not ease as the two OMO operations during the week and the auction outflows on monday drained liquidity worth Rs 14,000 crore from the system. Further, with many players leaving their positions uncovered, there was some unusual demand for funds on the last two days of the week, dealers said. The lower subscriptions to the RBI repos towards the weekend, which reflected slight pressure on the liquidity, had also its impact on the market, they added. RBI, which received 18 bids for Rs 26,445 crore on Monday, received only six and three bids for Rs 4,075 crore and Rs 2,930 crore on Thursday and Friday. The overnight interest rate ruled firm above the repo rate on the reporting Friday to close the week at 5.75-85 per cent on, marginally up from 5.65-75 per cent of the previous weekend. Besides outflows of Rs 7,000 crore on Monday for the previous week’s twin auction, RBI conducted an OMO auction for Rs 3,000 on Tuesday and another on Friday for Rs 4,000 crore. The secondary market for Government securities (G-secs) ended the week on a positive note after witnessing moderate swings during the week. Gilt prices maintained a firm trend initially during the week on abundant liquidity and higher-than-expected cut-off price in Tuesday’s OMO auction. However, the announcement of second OMO sales for Friday and RBI Governor Dr Bimal Jalan’s statement created some confusion on the market, pulling down bonds prices towards the weekend. The RBI Governor’s, on Friday, that the apex bank was conducting OMO auctions to suck out excess liquidity to ensure stability in the market and his comment that there was no relation between the US and Indian interest rates gave a negative impression that even if the US fed cut the interest rate, chances of a domestic rate cut were remote, dealers said. The 11.50 per cent, 2011 and 11.03 per cent, 2012, bonds ended the week higher by 25 paise and 37 paise at Rs 128.25 and Rs 126.05 respectively as compared to Rs 128.00 and Rs 125.68 of the previous weekend. The 7.40 per cent, 2012, and 7.55 per cent, 2010, gilts also gained 30 and 21 paise at Rs 101.20 and Rs 103.15. (UNI) |
|
4 NALCO officials, Ashok Aggarwal’s brother in CBI net NEW DELHI, Aug 11: CBI has registered a case against seven persons including four senior officials of NALCO and a brother of former ED Deputy Director Ashok Aggarwal for allegedly showing undue favour to some private firms in awarding five licences for import of caustic soda in 1993-94. CBI, which filed an FIR recently in a special court, named the then NALCO Chairman cum Managing Director S K Tamotia, former General Manager (material) D B Pahari, the then Deputy General Manager (material) N K Jain and former G M (Finance) P L Shahoo, former ED Deputy Director Ashok Aggarwal’s brother and Indcon Finance and Investment Ltd Director Vijay Aggarwal, Fair Exports Ltd Director Sanjeev Gupta and a Chartered Accountant Sandeep Parwal as accused. The agency alleged in its FIR that during 1993-94 Vijay Aggarwal’s brother Ashok Aggarwal, an Indian Revenue Serevice officer, was posted as Principal Secretary to the then Minister of State for Mines who had administrative control over NALCO. Tamotia, Pahari and Shahoo have since retired while Jain is still working with NALCO. The NALCO officials ignored the offer from a Cochin-based public sector unit of 30 per cent premium for value-based advance licences (vabals) and instead awarded five such licences to Fair Exports Ltd at a much lower premium of 15.75 per cent in May 1994, CBI alleged. The FIR further alleged that Vijay Aggarwal introduced Fair Exports’ account from where the premium amount was transferred to NALCO. In fact, Fair Exports was launched by Sandeep Parwal for money laundering and it was used by Vijay Aggarwal as a company to get the five vabals by using his brother’s influence, the probe agency alleged. This was evident from the fact that the said five licences were later transferred to his own company Indocon Finance and Investment Ltd, it alleged. CBI accused the NALCO officials of abusing their official position and thereby causing considerable wrongful loss to the PSU. The accused have been booked under section 120-b of IPC (criminal conspiracy) and section 13(2) read with section 13(1)(d) of Prevention of Corruption Act, 1988. The CBI also conducted raids at the residence and official premises of Gupta and Parwal and claimed to have seized some documents about the case. It may be mentioned that Ashok Agarwal has been chargesheeted by the CBI in a case of falsely implicating a Delhi-based businessman while the sanction for his prosecution in a disproportionate assets case was awaited. (PTI) |
|
Bullion, select seeds, edible oils up, metal, cotton dip MUMBAI, Aug 11: Prices of bullion, select seeds and edible oils firmed up on bullish advice from overseas and upcountry markets amidst good demand during the week ended August 10. However, cotton and select metals saw modest losses on subdued london advice coupled with poor demand. There was no trading in sugar throughout the week due to the indefinite strike by traders from August 2 to protest against the octroi duty hike from one to two per cent on sugar effective from August one, traders said. Bullion review: Silver, gold prices gain on strong overease advice Silver (.999 fineness variety) fluctuated in a narrow range of Rs 7,900 and Rs 8,025 and closed modestly higher at Rs 8,020 per kg, gaining Rs 100 from its previous week’s close. Encouraging advice from London, which improved demand from dealers and industrial users, aided the upward trend in domestic markets, traders said. At the London bullion market, silver traded higher at USD 4.65/4.66 on the week ended August 9 compared to USD 4.61/4.62 per troy ounce level of the previous week ended on August 2. Similarly, gold standard mint and biscuit prices also moved in a narrow range and finally made sharp gains by Rs 105 and Rs 1,300 during the week to finish at Rs 5,180 per 10 gm and Rs 60,700 per ten tola respectively on improved demand from local customers and jewellery makers in view of encouraging overseas advice. Sellers were inactive in view of forthcoming festival season like Raksh Bandhan, Janmasthami and Diwali. At London, spot gold closed higher at USD 314.50 per troy ounce on the week ended August 9 against its previous week-ended August 2 close of USD 306.50 per troy ounce. Metals review: copper, brass turn weak In ferrous category, copper heavy, copper utensils, brass scrap and its cuttings declined by Rs 350, Rs 250, Rs 200 and Rs 150 per quintal to Rs 11,800, Rs 9,800, Rs 8,400 and Rs 8,800 respectively at the weekend. Sellers were keen to offload on account of improved supplies from upcountry mills. The absence of fresh export demand from small scale units also contributed to the downward trend, traders said. In non-ferrous category, copper wire also eased by Rs 300 to Rs 12,900 per quintal in sympathy with the weak trend in copper and brass prices. Tin slab prices came down by Rs five to Rs 295 per kg owing to sustained selling pressure by stockists while nickel cathode price gained Rs five to Rs 470 per kg on improved demand from exporters on encouraging advice from London metal exchange and Delhi. Sugar review: Wholesale sugar traders went on an indefinite strike from August 2 following a hike in octroi duty. The indefinite strike by the wholesale sugar traders to protest against the recent one per cent hike in the octroi duty entered the seventh day today. The Bombay Sugar Merchants’ Association president Mr Mohan Gurnani said that the association has demanded abolition of the octroi duty hike on the commodity. Traders stopped purchasing sugar from Maharashtra co-operative mills from Saturday. The Association has submitted a memorandum to the BMC Commissioner Mr Karun Srivastava and State Finance Minister Mr Jayant Patil to solve the impasse. Meanwhile, the BMC is losing huge amounts in octroi on the commodity by the day. While the association has started selling sugar at Rs 14 per kg at the apmc complex here, the retail price of sugar has soared beyond Rs 20 per kg in the city and its suburbs, traders said. Around 2,000 trucks and other vehicles carrying the commodity were held up at all check nakkas due to the strike, Gurnani told UNI here today. Cotton review: Key varieties lower on bearish New York advice, good rainfall in producing areas Prices of key cotton varieties eased on discouraging advice from New York and domestic markets. Popular varieties declined between Rs 100 and Rs 200 per quintal. There was a lack of demand from spinners and exporters, traders said. There was brisk demand from bulk consumers and shippers induced by bullish advice from producing areas on account of lesser rainfall in the last two-three weeks in the producing areas particularly Saurashtra, Hyderabad and others. Sesameseed crushing also rose by Rs 50 to Rs 2,300 in sympathy. Among oils, imported palmolein oil, soyabean crude and sunflower crude prices were higher by Rs 5, Rs 2 and Rs 5 at Rs 355, Rs 343 and Rs 460 per ten kg on heavy demand from bulk consumers and retailers induced by encouraging advice from Malaysia and Indonesia. Groundnut raw, sesame expeller and kardi expeller also sho up by Rs 17, Rs 10 and Rs 20 to Rs 480, Rs 470, and Rs 410 per ten kg respectively on brisk demand on encouraging advice from Saurashtra and Ahmedabad. Similarly, sunflower solvent refine and karanji oils varieties also hardened by Rs 15 and Rs 10 to Rs 450 and Rs 275 per 10 kg owing to renewed buying support coupled with lesser stocks in the domestic market, traders said. In the futures section, castorseed September contract 2002 fluctuated in a wide range during the week and finally eased by Rs 25 to finish at Rs 1,423 on lack of fresh speculative buying support from local operators. Business volume stood at around 35 tonnes during the week, traders said. (UNI) |
|
|
