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| Inflation rises to 5.38 pc NEW DELHI, Dec 21: Rise in energy prices pushed up wholesale prices-based inflation rate by 0.13 per cent to 5.38 per..........more Outsourcing
pie: TN CHENNAI, Dec 21: It slowdown that compelled global corporations to cut costs and shift operations to India has heated up.....more Cross-holding
sale: IOC, NEW DELHI, Dec 21: Within days of cabinet approving dissolution of cross-holding in oil companies, Oil and Natural Gas....more Silver
scales new MUMBAI, Dec 21: Silver prices zoomed to a six year high mark at Rs 9,150 per Kg on firm advice from global markets and paucity of stocks supply, while gold remained steady on modest ......more |
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Sensex hits 45-month high on record FIIs inflows in a year MUMBAI, Dec 21: The sensex surpassed 5550-mark to hit 45-month high for the first time since March 9, 2000 in an unprecedented rally by stocks and....more Tata steel
fornmally JAMSHEDPUR, Dec 21: Steel major Tata steel had officially taken over the ailing Indian Steel and Wire Products (ISWP).....more New
movement COIMBATORE, Dec 21: "Save agriculture," a farmers movement, has been floated in the city to protect the interests of......more Israel’s
El AI airlines JERUSALEM, Dec 21: To tap the huge demand for tickets to India, Israeli national airlines El AL will add a third passenger....more |
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NEW DELHI, Dec 21: Rise in energy prices pushed up wholesale prices-based inflation rate by 0.13 per cent to 5.38 per cent during the week ended December 6 against 5.25 per cent during the previous period. While prices of fuels of almost all categories, except petrol, moved up significantly, others moved in a narrow range. In fact, prices of essential items like rice, fruits and vegetables declined. The trend is likely to persist in near future with experts saying that inflation is likely to come down by this fiscal-end on the support of good food supplies after a winter harvest. However, rising global crude oil prices could counter the effect of rising food supply. The inflation rate stood at 3.27 during the same week of the previous year. The overall index (base 1993-94) was up by 0.1 per cent at 176.4 points against 176.3 points. The index for fuel, power, light and lubricants rose by 0.6 per cent to 255.1 points from 253.6. While naphtha was costlier by 11 per cent, light diesel oil moved up by 5 per cent. Bitumen was dearer by four percent and liquefied petroleum gas rose by one per cent. The index for food articles, on the other hand, declined by 0.5 percent to 182.7 points from 183.7 points. Rice was cheaper by 2 percent, while fruits and vegetables, jowar and condiments and spices went down by 1 percent each. However, the prices of tea was up by 7 percent, bajra by 3 per cent and gram by 1 percent. Among non-food articles, whose index rose by 0.2 per cent at 183 points, soyabean and safflower moved up by 2 percent each and raw cotton, castor seed and cotton seed by one per cent each. However, the prices of raw silk fell by 4 per cent, copra and niger seed slid by three per cent each and rape and mustard seed were down by two percent each. Prices of most manufactured products moved in a narrow range as a result of which the index remained unchanged at 157.1 points. However, benzene was more expensive by 14 per cent. The annual rate of inflation has been revised up at 5.01 per cent against the provisional estimate of 4.95 per cent for the week ended October 11. The final index stood at 176 points against 175.9. (UNI) |
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Outsourcing pie: TN draws up
consortium CHENNAI, Dec 21: It slowdown that compelled global corporations to cut costs and shift operations to India has heated up competition among south Indian states for a larger share of the outsourcing pie, with Tamil Nadu banking on the consortium approach to win the race. Andhra Pradesh, Karnataka and Tamil Nadu, which lay the foundation for Indian Information Technology Industry, together contribute over 60 per cent of the country’s annual IT export turnover. The competition among the three states has increased of late, especially between Karnataka and Tamil Nadu, following the emergence of India as a preferred outsourcing destination. To cash in on the jobs being pushed into India, Tamil Nadu has drawn up the consortium approach which envisages sharing of knowledge, expertise, marketing efforts and project execution between the Small and Medium Enterprises (SMEs). STPI Director (Chennai) R Rajalakshmi said the "consortium approach" would be the ideal resort for the SMEs to survive the emerging market trends where companies cut costs drastically as clients prefer to push jobs offshore. She noted that with the establishment of ‘Camelot Software Services’ (CSS), a consortium of six software companies, Tamil Nadu has clearly emerged as the forerunner in the game. CSS Chairman N L Rajaram said SMEs have stand-alone domain expertise which may not be attractive for the client companies to award orders. Having a structure like tidel would definitely add to the efficiency as infrastructure and expertise can be shared. Of the 650-odd IT services exporting companies in Tamil Nadu, over 400 are in the sme sector. These companies have a turnover of less than Rs 10 crore and are the most disadvantaged in terms of winning contracts. The consortium approach would be the ideal solution to tide over the crisis, Ms Rajalakshmi said. Camelot has successfully undertaken some projects involving two to three consortium players. Dr Rajaram said the company was confident of emerging as a successful model. Set up in May this year, CSS is one of the first commercial experiments of its kind. Similar models were discussed in Hyderabad and Bangalore but css was the first to take commercial shape, she noted. Ms Rajalakshmi said creating a structure similar to tidel — the IT park providing the infrastructure facilities for information technology industry — was being analysed for software smes. E-Mitra was yet another consortium model floated in the state that works on similar principles. More such measures are on the anvil, Ms Rajalakshmi said. Besides, Tamil Nadu is marching ahead as major IT players from Bangalore are making a beeline to Chennai for setting up development centres, the latest being Wipro and Infosys. Infosys technologies is setting up its second development centre at a cost of Rs 250 crore at the Mahindra industrial park. It will come up over 129 acre land and will have about 5,000 employees when fully developed in three to four years. Tata consultancy services is also setting up one more development centre here at Siruseri. It plans to invest about Rs 200 crore, including Rs 13 crore in a 70-acre land at Siruseri, in three or four years. The other firms that have presence in Tamil Nadu include cognizant technology solutions, Sutherland, Covansys, Scope, Hewlett-packard, Verizon, Lason, World Bank, Electronic Data Systems, Ford Information Technology, Xansa and Igate. In the last one year, IT is not just multinationals which have made a beeline for Chennai but other large IT players also are making it their second home. Today, over 860 companies are operational employing over 40,000 professionals and an export turnover of Rs 6,316 crore. Hardware exports from Tamil Nadu during 2001-2002 stood at Rs 482 crore. A Confederation of Indian Industry (CII) report observed that Karnataka held 59 per cent of the software services export market in contrast Tamil Nadu’s 25 per cent and 16 per cent of Andhra Pradesh in 2001. Last year, Karnataka’s share moved down to 55 per cent and Tamil Nadu’s moved up to 29 per cent. Andhra Pradesh remained at 16 per cent. However, IT developments remained restricted to the metros with Chennai, Bangalore and Hyderabad being the major centres. Price Waterhouse Coopers (PWC), which studied the fall in profits with decline in the billing rates by about five dollars per hour, rated Bangalore as the worst impacted city with Chennai and Hyderabad following suit in that order. It was estimated that profits could fall by 78 per cent in the operations at Bangalore as against 65 per cent drop in Chennai and 61 per cent Hyderabad when the billing rates dropped. The real estate costs were higher in Bangalore as compared to Chennai or Hyderabad that added to the cost of operations, the PWC study said. (UNI) |
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Cross-holding sale: IOC, GAIL reject ONGC proposal NEW DELHI, Dec 21: Within days of cabinet approving dissolution of cross-holding in oil companies, Oil and Natural Gas Corp (ONGC) has proposed that the state-run firms buyback the shareholding they hold in one-another instead of selling the entire equity shares in market. The proposal has not found favours with Indian Oil Corp and GAIL (India) Ltd who feel the purpose of dissolving cross-holding was to increase liquidity of publicly traded shares. "Markets don’t have an appetite of picking up 36 crore shares worth Rs 19,000 crore. The largest public issue so far was in 1995 when IDBI mopped up Rs 2850 crore. Considering oil stocks are much in demand, we could get double that amount but certainly not the value that is being talked about," a senior ONGC official said. While IOC has a 9.62 per cent stake in ONGC and a 4.8 per cent holding in GAIL, ONGC has a 9.11 per cent stake in IOC and a 4.82 per cent holding in GAIL. GAIL, in turn, has a 2.4 per cent stake in ONGC. The three stand to gain Rs 19,141 crore at current prices if all these stake is sold in market. ONGC has suggested to Petroleum Ministry that the companies buyback shares to the extent that they are revenue neutral - that is to say that ONGC will buyback its shares from IOC and GAIL to the extent of the value it gets in return for selling its holding in the two. This is because, at current price one share of ONGC will fetch Rs 748 while IOC share is being traded at Rs 433. GAIL scrip is priced at Rs 210.15. "The remaining shares (of ONGC) can be sold to public in phases," the official said. Rejecting ONGC proposal, a senior IOC official said the company would prefer going to domestic and overseas market in tranches. "We can sell our 3-4 per cent stake in ONGC or the entire holding in GAIL this fiscal without any problem. The remaining stake in ONGC can be sold in domestic and overseas market next fiscal." A GAIL (India) Ltd official said "buyback of shares will not increase liquidity of traded shares, which is what the oil companies had reasoned when they petitioned Government for being allowed to dissolve the cross-holdings." Officials of both IOC and GAIL insisted that no decision on share sales has been taken and the sale modalities will be finalised after discussions with the petroleum ministry. ONGC has proposed to buyback a part of the 13.7 crore shares held by IOC and 3.42 crore shares held by GAIL in it. Considering the December 19 share close price of ONGC scrip (Rs 748) on the Bombay Stock Exchange, ONGC will buy 6.16 crore shares from IOC and 1.14 crore shares from GAIL. The outgo on buyback of these is equal to Rs 4609 crore IOC will pay ongc for the 10.6 crore shares (at Rs 433 a share) and Rs 858 crore GAIL will pay it for the 4.08 crore shares (at Rs 210.15 a share) held by it. ONGC will sell the remaining shares it holds in IOC and GAIL in the market while IOC will sell its 4.08 crore shares in GAIL in the market. "This kind of swap agreement will result in profitability of the oil companies," the official added. (PTI) |
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| Silver scales new heights, gold flat,
edible oils, sugar rises MUMBAI, Dec 21: Silver prices zoomed to a six year high mark at Rs 9,150 per Kg on firm advice from global markets and paucity of stocks supply, while gold remained steady on modest festival demand during the week ended December 21, traders of the local wholesale markets said here. Prices of groundnut raw and palmolien oils along with sugar witnessed firm trends on sustained good seasonal demand from local dealers and firm advice from global and upcountry markets during the same period, traders said here at the week-ended. Silver touched a six year high at Rs 9,150 on firm global advice. Gold remained flat. The price of silver gradually moved up during the week and finally peaked at marks not witnessed for the last six years mainly on strong advice from London, New York, Kolkata, Delhi and other markets, a bullion merchant said. While silver price crossed Rs 9,100 mark during the mid-week and closed on a six year high at Rs 9,150 per Kg with a handsome gain of Rs 110 during the week. Bullish advice from the overseas market and some seasonal demand were said to be the main reasons for the steep climb, traders at the Bombay bullion markets here said. Demand had also increased due to the forthcoming festive Chirstmas season and also due to the onset of the marriage season. Sellers were hoarding stocks particularly silver in view of some speculative demand from local operators. Business volume in gold was limited due to steep hike in prices in the current week, while silver was in limelight on sustained heavy demand from industrial users and lesser stocks, traders said. Prices of spot gold 99.9 purity grade and standard mint 99.5 purity fluctuated in a narrow range during the week and finally closed at Rs 6,140 and Rs 6,100 per 10 Gm respectively. Traders said that the domestic market saw an upward trend mainly in prices due to steady movements in the London market, the yellow metal was quoted overall flat at around USd 409.15/410.50 per troy ounce from its earlier week ended rates of USd 409.25/410.15 per troy ounce. At the London market, the white metal, however, was quoted higher at around USd 5.68/5.71 per troy ounce from its previous week-end’s finish, traders added. Prices of key seeds, grades, groundnut, sunflower expeller and linseed oils flared up on lesser stocks. In the oils segment (per 10 Kgs), groundnut raw crossed the Rs 500 mark again during the mid-week and gradually moved up during the week. It finally rose by Rs 15 to end at Rs 505, while the prices of sunflower refined and sunflower solvent refined grades gained by around Rs five each during the week and were quoted high at Rs 455 and Rs 505 on sustained good demand from retailers along with firm advice from producing areas, particularly gujarat. Similarly, kardi expeller and linseed grade oils also saw a rise of around Rs 25 and Rs 10 and touched Rs 650 and Rs 535 on sustained heavy demand by industrial users, and lesser stocks, traders said. Imported RBD palmolein and soyabean refined oil prices eased slightly by Rs three and Rs two during the week and quoted low at Rs 423 and Rs 440 per 10 Kgs on increased stocks supply from Malaysia and Indonesia. Demand was slack even at the low levels, traders said. However, sunflower crude and rapeseed crude oils looked up by Rs eight and Rs two to Rs 458 and Rs 524 on scattered demand from millers. In the seeds group (per quintal), groundnut kernel and bold prices gradually moved up during the week and both prices finally shot up by Rs 75 and Rs 120 to close at Rs 2,525 and Rs 22,635 on sustained heavy demand mainly from exporters and millers, while sesame 95/5 and kardi also spurted up by Rs 50 and Rs 25 to end at Rs 3,750 and Rs 2,125 respectively in line with the seed prices. Similarly, groundnut javas and nigerseed prices jumped sharply by Rs 40 and Rs 15 to Rs 2,815 and Rs 1,965 in line with the firm trend in other seeds prices. Sugar prices rose during the week on lesser stocks supply from mills. The prices of small and medium grade sugar rose by around Rs 25 and Rs 30 during the week and were quoted high at Rs 1,315/1,341 and Rs 1.351/1,406 per quintal respectively on lack of offering by stockists induced by lesser release of stocks around 15,000 bags (per 100 Kgs) by Maharashtra State Co-operative Mills, traders said. The main reason was the improved demand from bulk consumers and retailers on the face of higher stocks arrival from the mills. The market sentiment continued to remain firm and the total volume traded improved, sources added. During the week the co-operative sugar factories in Maharashtra accepted tenders from wholesale dealers at lower rates from Rs 1,220/1,268 for small grade and for medium grade at Rs 1,300/1,320, traders added. (UNI) |
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| Sensex hits 45-month high on record FIIs
inflows in a year MUMBAI, Dec 21: The sensex surpassed 5550-mark to hit 45-month high for the first time since March 9, 2000 in an unprecedented rally by stocks and even left behind a trail of huge scope for its upward journey relying on strong economic fundamentals. The eight-month long price rally not only helped the sensex blast 5000 magical mark for the second time in history but also charged it to the 45-month high during the trading on December 19 on consistent and heavy purchases by Foreign Institutional Investors (FIIs). Considered to be the key driving force behind the market, FIIs which pumped in record net investments in a year, steered the market on the technical support based on the country’s prevailing economic situation to the fullest to drive the sensex through the magical level. The sensex achieved the feat this time with added vigour that it is unlikely to look back if the present fundamentals governing the market are any indications. The secular bull run was the result of various positive factors including the robust corporate performance, sustained and highest ever FII inflows and a turn-around in the fortunes of Asia’s third-largest economy which seemed to be the prime attraction of foreign investors. However, the year under review, had to overcome a few odds such as the US invasion on Iraq, occasional tension on Indo-Pak borders in reaction to terrorist attacks on Indian soil, and strong opposition to disinvestment process from within the ruling party resulting in delay in privatisation of strategic oil PSUs like HPCL and BPCL. FIIs net investments of Rs 28,387 crore in a year till December 18, 2003 have scaled a record since 1992 when the country opened its economy. The union budget of Finance Minister Jaswant Singh, by and large, set the tone for the market’s huge leap to north. The budget when presented in February 2003 had sent signals that the proposals would address hopes and aspirations of all segments of the economy. The budget then was flooded with positive reactions from industry that had termed it growth-oriented for more focus on infrastructure, FMCG, tourism and hotels, and healthcare. Technology stocks could gain only to the minimal as the sector had come under pressure due to appreciating rupee and the controversial ban by the US. On outsourcing of state data processing contracts to developing nations, that in turn, threatened to have adverse impact on Indian IT companies. Among various sectors, the Capital Goods (CG) sector has actually outperformed all others over the last year, with almost all the shares from the sector hitting all-time highs during the strongest stocks rally in the last decade. Public Sector Banks too were among the highest gainers. Banking stocks witnessed a massive upsurge in response to the passage of securitisation bill which was expected to increase the sector’s earnings. The sentiment was enlivened by the Government’s major step to buy-back high-coupen old Government securities from banks. The move was touted to be a major positive factor for the banking sector. (PTI) |
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Tata steel fornmally takes over ISWP JAMSHEDPUR, Dec 21: Steel major Tata steel had officially taken over the ailing Indian Steel and Wire Products (ISWP) here which remained closed for the past five years. The formal handing over of the papers by the old management to the new Board of Directors appointed by the Borad for Industrial and Financial Reconstruction (BIFR) took place on the company premises yesterday. The newly-constituted board of ISWP, after its first meeting held at the company’s headquarters here, took possession of all assets, movable and immovable, and plant and machinery of the company through its nominees with the necessary support of the company employees, union leaders and executives of the company. The new board comprising seven members from Tata steel, one from Punjab National Bank and one from BIFR was constituted in pursuance to an order passed by the BIFR on December 18 last, which superceded the previous board. Meanwhile, Tata Steel Managing Director B Muthuraman welcomed the culmination of the long battle fought by the steel company in the interest of justice and said this was the triumph of the good. (UNI) |
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New movement launched by farmers COIMBATORE, Dec 21: "Save agriculture," a farmers movement, has been floated in the city to protect the interests of farmers in Tamil Nadu. The movement was launched at a meeting here yesterday in which representatives from various agricultural association and federations took part. The meeting, led by Tamil Nadu Farmers Association president Dr Sivasamy, passed several resolutions. One of the resolutions sought the farmers to stand united to face the onslaught of the wto agreement which would come into effect from 2005. A steep fall in prices of commodities was expected here post-WTO as imports would increase, he added. The movement was floated to put pressure on the Centre and State Governments to implement continuous supply of free power to the farming community, take up national river linking project and waive farm loans taken by them. Farmers would conduct conferences, rallies and public meetings to mobilise mass support against the farm leaders to press their demands, a resolution said. (UNI) |
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Israel’s El AI airlines to add passenger service to Mumbai JERUSALEM, Dec 21: To tap the huge demand for tickets to India, Israeli national airlines El AL will add a third passenger service to Mumbai shortly. The Israeli airline currently operates two scheduled passenger flights and five freight services with a weekly capacity of 150 tonnes, company sources informed. The airlines is also thinking of extending its services to other destinations in India if the "demand justifies". Flights to Delhi, specially during the summers, is a strong possibility. Israeli youngsters have shown preference for India during the long summer vacations and choose to fly to Delhi. For the youngsters just out of Army service, a trip to India has become like a passage in a lifetime. The number of Israeli youngsters travelling to India has continued to increase since the two countries established diplomatic relations in 1992 and the current estimates stands at 30,000 every year. The Israeli Government initiated efforts to privatise El AL about a year ago but it has not been well received by the employees. The airlines also resorted to austerity measures, decreasing staff strength and cutting back on hotel, computer and communications expenses. (UNI) |
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Malaysian Air adds Indonesia route,festive flights KUALA LUMPUR, Dec 21: Malaysian Airline System BHD (MAS) has added a new route in Indonesia and 280 extra flights to international and domestic destinations to cater to holiday crowds until February. The state carrier said in a statement made available on Sunday it had begun flying three times weekly to Padang in Indonesia’s Sumatera province, making it its ninth destination in that country. The route is being operated on a Boeing 737-400 aircraft through a code-sharing basis with Garuda Indonesia. Mas said it will also run 280 more flights between December 22 and February 1 to local and foreign destinations that include Phuket, Bangkok, Hanoi, Taipei, Shanghai, Hong Kong, Hyderabad, Bangalore and Bombay. "The extra flights are mounted to meet the high demand of domestic and international passengers...During the traditional year-end holidays and festive seasons," the carrier added. (AGENCIES) |
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China Blue Star is top bidder for Ssangyong- Report SEOUL, Dec 21: Creditors of South Korea’s Ssangyong Motor Co have approved chemicals conglomerate China National Blue Star Group’s bid for a controlling stake in the sport utility vehicle maker, Yonhap News Agency said on Sunday. The agency said the Chinese group had the best bid for a 55.4 percent stake in cash-strapped Ssangyong, but it did not give details. The stake is worth 620 million based on current market price. The creditors were not available for comment. "It took some time to collect written approvals from creditor banks. Other than that, there was no other particular issue to worry about," an official at one of the creditors was quoted as saying. Yonhap said creditors are scheduled to sign on Monday a Memorandum of Understanding with the Chinese group, which will conduct a three-week due diligence on Ssangyong’s financial status including probable future debt. The deal is expected to be finalised by March, it said. Ssangyong, which builds Rexton, Korando and Musso Suvs as well as deluxe chairman passenger cars, competes with top auto maker Hyundai Motor Co, which controls 42 percent of the country’s 18 billion auto market. Hyundai’s affiliate Kia Motors Corp has a 27 percent market share. Blue Star is a state-owned conglomerate under the direct control of the Chinese Central Government. It mainly produces chemicals and has annual sales of more than 10 billion yuan, according to its web site, www.China-bluestar.Com. The creditors had earlier picked the Blue Star Group as a preferred bidder, but on Thursday Shanghai Automotive Industry Corp said it had also received Chinese Government permission to take over Ssangyong. Ssangyong was put up for sale by creditors who took control of the debt-laden firm in late 1999. (AGENCIES) |
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Tariff panel to examine duty on refined palm oil NEW DELHI, Dec 21: With the ministries of agriculture and food and consumer affairs at loggerheads over the issue of raising import duty on refined palm oil, the Finance Ministry has referred the matter to the tariff commission to examine whether any hike would adversely affect the consumers. The recommendations of the tariff commission will be taken up while formulating the budgetary proposals for 2004-05. While Agriculture Minister Rajnath Singh is demanding rise in the duty on refined palm oil from the existing 70 per cent to 85 per cent to check imports, affecting the domestic production of edible oils, the food and consumer affairs ministry sought a reduction in the duty. Import of oilseeds would help the domestic industry in increasing production of vegetable oils which are in short supply in the country, the Food Ministry officials contended. They also said the global prices of vegetable oils and seeds were on the rise and increasing the import duty would affect the domestic consumers. The duty on Crude Palm Oil (CPO), processed by the industry to final product for human consumption, is 65 per cent. Mr Singh wanted the difference in duties between CPO and the final product to be at least 15 per cent. The tariff commission will study whether any hike in import duty on refined palm oil is likely to affect the consumers and what could be the impact on farmers if customs duty on oilseeds was reduced. It, however, will take into account the average processing cost of the industry. The commission will also examine the possibilities of permitting a lower customs duty on CPO for imports by the Vanaspati industry under actual user condition. Earlier ,the Vanaspati industry was permitted to import CPO at 25 per cent duty. The global prices of refined palm oil are in the range of 540 to 560 dollar per tonne and the average cost of processing refined oils in the country was between Rs 500 to Rs 600 a tonne. (UNI) Electronic hardware exports cross a billion dollar mark NEW DELHI, Dec 21: Electronic hardware exports from India in 2002-03 crossed one billion dollar mark with European union countries taking 26 per cent of it. "Electronic hardware exports from India were 1.157 billion dollars in 02-03 and European union countries accounted for 303 million dollars," according to figures compiled by electronics and computer software Export Promotion Council (ESC). Electronic components constituted 43 per cent of total exports at 496 million dollars. "We are confident that exports of electronic components will pick up substantially in the coming years since many global electrinic giants have shown interest in sourcing components from India," ESC executive director D K Sareen said. Instruments OE/ME was the second largest item being exported. It accounted for 25 per cent of the total hardware exports from India at 289 million dollars. The third largest item that was exported from India was consumer electronics which accounted for 155 million dollars. Computer hardware and telecom equipment accounted for nine per cent and eight per cent of hardware exports, respectively. Second largest destination for Indian hardware exports was Singapore, Hong Kong and neighbouring countries accounting for 25.51 per cent of total exports followed by US and Canada which accounted for 24 per cent. (UNI) |
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