Daily Excelsior...Business

Techno, old economic stocks opens high on fresh bull support .....

High oil price temporary, says next opec chief .....

US believes Saddam stashed 3 billion dollars in Syrian banks .....

Fall on US dollar rise, policy caution .....

Indian auto industry grows 10 pc in first half

NEW DELHI, Oct 14: The Indian automobile industry had a modest 9.7 per cent growth in the first six months of this financial year with sales of passenger cars, commercial vehicles and motorcycles posting encouragiong results.

Overall, automobile sales in the April-September 2003 period stood at 31,89,108 units against 29,05,224 units sold in the corresponding period last year, according to figures released by the Society of Indian Automobile Manufacturers (SIAM) here today.

Passenger car sales were up 23.70 per cent on a sale of 3,19,442 units in April-September ‘03 against 2,58,230 units sold in the same period last year.

The growth was led by majors Hyundai Motors India Ltd (44.4 per cent growth at 79,228 units), Tata Motors (44 per cent growth at 66,977 units) as well as market leader Maruti Udyog Ltd, even as the biggest carmaker recorded a growth of around 26 per cent at 1,90,044 units, the company blaming strike at a major component vendor for the "not-so-good performance."

In the two-wheeler category, motorcycle sales were up 11.5 per cent at 19,63,734 units against 17,59,622 units sold in the same period last year.

Overall, two-wheeler sales were up 7 per cent on sales of 25,44,524 units against 23,76,139 units sold in April-September ‘02.

Scooter sales, however, fell by one percentage point on sales of 4,30,105 units against 4,34,700 units sold in the first six months of last fiscal.

The rise in two-wheeler category was again fuelled by motorcycles with major companies like Hero Honda, Bajaj auto and TVS reporting single digit growth figures.

Commercial vehicle sales also moved up, registering a growth of 31.9 per cent at 1,09,688 units against 83,106 sold in April-September ‘02.

September sales for all kinds of vehicles were up. While passenger car sales were up 12.8 per cent, year-on-year, on sale of 56,764 units, motorcycles saw a growth of 17.5 at 3,69,869 units.

Scooter/scooterettee sales in the month stood at 83,349, up 13.7 per cent from 73,250 units sold in September ‘02.

Total two-wheeler sales in September were up 15.1 per cent at 4,81,385 units against 4,18,123 units sold in the corresponding month last year.

Commercial vehicles had a 44.86 per cent sales growth in September at 23,537 units against 16,247 sold in the same month last year.

Overall automobile sales were up 16.5 per cent in September on sales of 6,04,834 units. (UNI)

Boeing sorting out Indian VVIP jets deal with US Govt

NEW DELHI, Oct 14: The boeing company has said it is trying to iron out differences with the US administration over sale of three business Jet planes that are fitted with a high-tech missile defence system and special communications package for Indian VVIPs.

The air force one type of aircraft enable the VVIPs on board to contact almost anyone, anytime, anywhere on earth. Some reports had recently suggested that the 154 million dollar deal for boeing VVIP aircraft is facing problems with the US Government because the seattle-based company has refused to transfer the technology used in aircraft’s security system.

The issues of technology transfer are generally in the realm of Governments involved, said Mr Bob Saling, manager for cargo and VIP communications division of boeing commercial airplanes.

"The US Government has specific requirements and restriction on technology transfer to which boeing and all other US exporters must adhere," he said in an E-mail interview from his Seattle office.

"We work closely with the US Government in business arrangements that include high technology to assure that we are within the applicable laws," said Mr Saling who looks after operations in the company’s Asia Pacific region.

The new-age boeing 737-700s are meant to replace ageing aircraft of the Indian Air Force (IAF) which take the Prime Minister and the President on their travels within and outside the country.

The ministry of defence had floated a tender for these business jets. Boeing won the order with its offer of 154 million dollars against airbus’ 171 million dollars for the three aircraft.

The newest members of the 737 family — the 737-600/-700/-800/-900 models — entered into service just five years ago after a technology makeover. The digitally designed 737s are outfitted with larger wings and more powerful engines, which allow them to fly higher, faster and farther than previous models and can cruise through a thick blanket of fog.

The technology can eliminate flight cancellations, diversions and delays caused by restricted visibility. In addition, the new flight deck features advanced programmable software and liquid-crystal flat-panel displays, not available on competing models.

Indian authorities are reportedly insisting on a full transfer of technical knowhow of all the gadgets that boeing plans to load in the aircraft. The boeing business jets being purchased by the Indian Government for the country’s VVIPs will be full of security sensors.

The IAF which has been holding talks with boeing military division executives wants to be fully convinced that the sensors used in the aircraft are actually for securing the aircraft, and not for bugging.

For this reason, they want boeing to reveal the technology used in all types of sensors proposed to be used in the VVIP aircraft. The proposed sensors will not only inform the pilot about an approaching missile, but will also bring to his notice tampering with any part of the aircraft, with full details of the time and type of tampering.

For example, if somebody opened the fuel tank lid of the aircraft, the pilot will come to know the exact time the lid was opened and its status from a visual display unit the moment he switches on the engine.

The boeing business jets are customised to provide the best in luxury. The aircraft have plush interiors with bedrooms, showers, a conference room with presentation facilities and the latest gizmos to make it an extremely state-of-the-art office-cum-residence in the air. (UNI)

Cairn announces fourth exploration of
gas and oil in Rajasthan

NEW DELHI, Oct 14: Cairn energy has announced fourth exploration discovery in Rajasthan as it found large presence of hydrocarbon at the RJ-Q-1 exploration well, which was drilled at a total depth of 3,544 metres using a deep drilling rig.

The well is located on the central basin high approximately 20 Km north of Raageshwari and 11 Km west of Saraswati in Barmer area, near the Indo-Pak border. The well encountered hydrocarbons in both the shallow (Thumbli) and deep (Barmer hill/ Fatehgarh) sections.

"I am delighted with our fourth exploration discovery in Rajasthan which further confirms the extensive distribution of hydrocarbons across the basin. Over the coming months we will be commencing exploration wells more than 120 Km apart and we are confident of the potential for Rajasthan to become a new core producing area for Cairn", Chief Executive Bill Gammell said in a statement last night yesterday in London.

A short drill stem test conducted on an interval from 3,112 to 3,174 metres in the Fatehgarh section flowed gas and condensate to surface prior to mechanical failure. The condensate tested was 52 degrees American petroleum institute gravity. The RJ-Q-1 well is being suspended for additional testing of this deep section using a service rig.

The shallow Thumbli section, which encountered a log-evaluated gross hydrocarbon interval of 250 metres in RJ-Q-1, will now be tested in a second dedicated well.

The deep drilling rig is now moving to drill an exploration well on the GR-F prospect which is also located on the central basin high approximately 40 kilometres south of RJ-Q-1.

The Saraswati discovery well and two subsequent appraisal wells identified two separate reservoirs, the Barmer hill and Fatehgarh. Cairn commenced extended well testing on the Saraswati-1 discovery well in August. The Fatehgarh was the first interval to be tested and was flowed for 13 days at an average rate of 470 Barrel of Oil Per Day (BOPD) with no water. Subsequent testing of the Barmer hill interval for 14 days during September achieved an average rate of 1,000 BOPD with no water.

An extended well test has recently commenced on the shallow Thumbli section in the Raageshwari discovery well. It is currently anticipated that this test programme will be completed during November.

The first of the two medium depth drilling rigs contracted to accelerate the multi-well drilling programme underway on the block is now on location. This rig will drill the GR-A exploration prospect at the southern end of the central basin high approximately 30 Km south of the Guda discovery. This well is currently expected to be followed by an appraisal well on Raageshwari.

The second rig is due to arrive in November/December following which it is expected to commence drilling on the N-A exploration prospect in the north of the block, approximately 50 Km from the RJ-Q-1 discovery. This well is currently expected to be followed by an exploration well on prospect N-B, located 10 kilometres to the north of N-A.

Cairn holds a 100 per cent interest in block RJ-on-90/1. Oil and Natural Gas Corporation Ltd (ONGC) has a right to 30 per cent of any development area resulting from a commercial discovery on the block.

Meanwhile, Cairn energy saw its shares climb 2.4 per cent higher after offering further signs that its expansive onshore prospects in western India will prove commercially viable.

The edinburgh-based oil and gas exploration firm said it had made fresh discoveries in its RJ-Q-1 well in Rajhastan - including unexpected shallow reserves. It has also struck upon two new reservoirs in its nearby Saraswati field, which has been producing around 1,500 barrels of oil per day in production test runs. The news helped Cairn’s shares gain 9.5p to close at 399.5P.

Cairn chief said the thing that the market doesn’t seem to understand about Rajhastan is that our interest is spread across a 5,000 square kilometre area - which is huge. "This is the ninth well that we’ve drilled and there’s only been one which has not struck hydrocarbons. To me that s very exciting."

"There is no doubt in my own mind that this will go on to prove itself commercially viable," he added.

Mr Gammell said the Rajhastan development will be made up of countless smaller wells, each producing a few thousand barrels of oil equivalent per day. He added that the typical flow rates on onshore developments are smaller than offshore projects, but development costs are substantially lower.

If the current drilling success continues, it is estimated that the Rajhastan development could potentially double the Cairn’s existing total reserves of 120 million barrels of oil. Gammell expects to be able to offer a more comprehensive update in six months. (UNI)

Lanka looks to upgrate FTA with India,
include investments

COLOMBO, Oct 14: In a bid to further boost growing bilateral trade, Sri Lanka is seeking to upgrade its Free Trade Agreement (FTA) with India to include services and investments, officials said today.

The possibility of an economic cooperation agreement will be taken up during the Joint Commission talks with Indian Foreign Minister Yashwant Sinha tomorrow, officials said.

Trade Ministry officials said Prime Minister Ranil Wickremesinghe will have with him an outline of a proposed economic cooperation agreement when he travels to New Delhi at the weekend.

The Free Trade Agreement currently covers only goods but not services and investments.

A trade gap that favoured India has come down sharply since the two countries signed a Free Trade Agreement in 1998.

The balance of trade which favoured India 15 to one when the agreement was signed has come down to five to one, according to the Central Bank here.

Bilateral trade reached a billion dollars last year with Indian exports amounting to 831 million dollars, up from 604 million dollars in 2001.

Sri Lanka’s exports to India rose more dramatically to hit 167.7 million dollars last year, up from 70.8 million dollars in 2001. India, however still does not allow free access to Sri Lanka’s main export commodity tea as well as garments.

India is expected to emerge as Sri Lanka’s largest investor this year with Indian oil company taking over an oil storage farm in the island’s north-east and 100 pumping stations throughout the Island.

The tata group is also due to build a new hotel in the south of the island.

Sinha arrives here later today on a brief two-day visit during which he is due to hold talks with President Chandrika Kumaratunga and Prime Minister Ranil Wickremesinghe.

He is also scheduled to take part in a Joint Commission meeting tomorrow to address outstanding trade issues, diplomats said.

The privately-run the island newspaper said Sri Lanka had been bending over backwards to appease India and get its support for the island’s peace bid with Tamil rebels.

India officially remains aloof, but was giving "covert support in intelligence and defence related matter," the island said.

Sinha will also use the visit to sign an agreement with his counterpart from Mauritius, Anil Kumarsingh Gayan, who stayed on in Colombo after attending a regional conference here.

They are due to sign an agreement for India to give 12 million dollars for the construction of a conventions centre in Mauritius. (PTI)

Govt bonds open weak

MUMBAI, Oct 14: Following were the opening rates of the Government bonds quoted by the Discount and Finance House of India (DFHI) Ltd today.

Goi dated securities prices in Rs 07.40 per cent Govt stock 2012 116.38 116.42 07.27 per cent Govt stock 2013 117.31 117.35 08.07 per cent Govt stock 2017 125.57 125.61 07.46 per cent Govt stock 2017 120.51 120.54 06.25 per cent Govt stock 2018 108.55 108.60 06.05 per cent Govt stock 2019 106.60 106.65 06.35 per cent Govt stock 2020 109.53 109.58 08.35 percent Govt stock 2022 130.55 130.65 (UNI)

Techno, old economic stocks opens high
on fresh bull support

MUMBAI, Oct 14: Bombay Stock Exchange’s Sensex (BSE) resumed distinctly firm and later was up by around 35 points to 4883.69 points during the mid-morning session as software and old economic shares moved up on sustained heavy speculative buying support from FIIs, brokers said.

The 30-stock sensex opened around 35 points higher at 4,883.69, further moved up in the morning session from Monday’s close of 4,849.27 points. It opened at 4866 points and went upto at 4901, but it came down at 4866 points during the mid-morning session.

But, the CNX nifty of the National Stock Exchange (NSE) eased by around 10 points at 1,537.15 points from yesterday’s finish.

Old economy stocks like banking, public sector, cement, steel, pharma, FMCGS and auto also attracted strong buying support and posted smart gains on strong expectations of better quarterly numbers from leading players.

The few losers included HPCL which was down by 1.28 per cent at Rs 344.50, Nestle 0.88 per cent down at Rs 572.05 and Colgate 0.17 per cent down at Rs 14.60.

Grasim has surged to Rs 741 with gains of Rs 24. Among other cement stocks ACC has gained Rs two at Rs 211. Larsen toubro is up a rupee at Rs 385. Gujarat Ambuja is marginally in positive territory at Rs 246.

From the pharma sector Cipla at Rs 1,055 and DR Reddy’s at Rs 1,179 have notched up gains of RS 11 each. Ranbaxy has gained Rs four at Rs 1,030. Glaxo is also in positive territory at Rs 468.50, up a rupee. Among auto counters Hero Honda has raced ahead to Rs 345 with substantial gains of Rs 12. Two-wheeter major Bajaj auto has gained Rs five at Rs 847. However Tata motors is in negative territory at Rs 383 with losses of Rs 3.

The trading session began with the sensex up 17 points at 4866. Buying across the board is visible in the market.

Tech heavyweight infosys is firm at Rs 4,798 with gains of Rs 50. Satyam is stronger by Rs four at Rs 296. HCL tech is up a rupee at RSI96. Second-line techs are trading in positive territory.

From the cement sector ACC at Rs 211 and larsen Toubro at Rs387 have gained Rs3 each. Gujarat Ambuja is up Rs 2 at Rs 248.

Cigarette major ITC at Rs 910, FMCG giant HLL at Rs 192 and old economy heavyweight RIL at Rs 484 have gained Rs three each.

ICICI bank has served a legal notice to IFCI threatening civil and criminal proceedings. The notice has been served under section 434 of the companies act for non-payment of debt as well as for winding up the institution, brokers said.

SEBI has put on hold an amendment to its IPO guidelines that shortened the listing period of book building IPOs. The amendment also proposed to bar research reports during a public issue.

The undertone is bullish in the market. The techs could attract some buying on the back of a strong Nasdaq. Bank, auto and steel counters could notch up further gains. However, there could be some selling pressure at higher levels in view of the run-up in recent sessions, brokers added. (UNI)

High oil price temporary, says next opec chief

JAKARTA, Oct 14: Indonesia’s Energy Minister, due to take over as OPEC president next year, said on Tuesday current high oil prices were temporary and denied OPEC was trying to promote such high prices.

He reiterated that OPEC, which controls half the world’s oil exports, hoped non-OPEC producers would cooperate with the Cartel in managing the oil market.

He also said OPEC would stand by its decision to cut production by 900,000 barrels per day despite current high oil prices. The Nymex November contract was trading at nearly 32 per barrel in Asia.

"It is true that the current price is high because of the strong demand. However, I think this price level is temporary," Purnomo Yusgiantoro told .

"I don’t think it is true that OPEC always wants a high oil price," he said. "We do not wish the oil price to be either too high or too low. What we want from non-OPEC producers is their cooperation in the world’s oil market."

later he told reporters: "OPEC will stand by its previous decision to cut production by 900,000 barrels per day."

Key non-aligned producers like Russia and Norway have rejected OPEC calls for cooperation in recent weeks.

Russian Energy Minister Igor Yusufov said on Friday the Cartel was keeping oil prices too high and insisted Russia, the world’s second-largest exporter, would continue to boost output.

"We have a disagreement with OPEC as we believe that prices above 25 per barrel are hurting consumers," he said.

The west’s energy watchdog, the International Energy Agency (IEA), made similar comments on Monday.

"Oil prices are too high for economic growth, for the poor countries and for the long-term stability of the market," said IEA executive director Claude Mandil.

Yusgiantoro said he was not aware of any discussions about OPEC changing its oil price band of 22- 28 per barrel, which helps determine output policy.

OPEC plans to cut production in November by 900,000 barrels per day to 24.5 million and will review output policy in December.

Benchmark November crude on the New York Mercantile exchange (Nymex) was trading at 31.86 per barrel in Asia, down slightly from Friday’s 32.60 per barrel, which was the highest price since early August. (AGENCIES)

US believes Saddam stashed 3 billion
dollars in Syrian banks

WASHINGTON, Oct 14: The US Government is claiming that more than 3 billion dollars of the fallen Iraqi regime of Saddam Hussein are in bank accounts in Syria, a US treasury spokesperson told news station CNN today.

The US wants Syria to cooperate in locating the money and assist in returning it to the Iraqi people. Washington fears that the money is being used by remnants of Saddam’s regime for terrorist attacks against Iraqi civilians and US soldiers.

The US has provided the Syrian Government with "very specific information" in regards to the funds, including two account numbers.

Two internal revenue service criminal investigators and several representatives of the central bank of Iraq are in damascus seeking access to the specific accounts in which the US believes the money is being kept.

The Bush administration has been pressuring Syria for months to open up its banks to US investigators to search for Iraqi assets. (DPA)

Fall on US dollar rise, policy caution

SINGAPORE, Oct 14: Asian currencies gave up some of their recent gains early on Tuesday, prompted by the US Dollar’s rebound against major currencies and as caution grew over authorities’ response to further appreciation.

Dealers in Singapore said they suspected there was aggressive intervention by the bank of Korea and the Taiwan Central Bank on Tuesday to pull their currencies down to weaker levels.

Dealers were wary of the Thai Baht as well after it fell to a one-week low, down from Monday’s three-year highs above 39 to the dollar, despite Prime Minister Thaksin Shinawatra saying the Government had not yet made any decision on whether to use tax measures to discourage currency speculation.

Thai Finance Minister Suchart Jaovisidha was quoted on Monday as saying Thailand was considering taxing currency transactions to help stem growing speculation on the strong Baht.

The South Korean won was down to its lowest in three weeks compared with Monday’s three-year high, and the Taiwan dollar fell to its one-week low from a 14-month high.

The region-wide swing in sentiment pulled the Singapore dollar to its lowest in over two weeks.

Dealers said the move in the market has defied general bullish expectations ahead of the President George Bush’s visit to Asia, next week, and the APEC summit in Thailand.

Traders had expected Asian Central Banks to intervene less, given United States’ persistent criticism of the foreign exchange policy of many Asian nations to keep their currencies weak.

"Even if you’re bearish Dollar/Asia, which I am, you have to except the reality that these central banks are not going to look the other way," said David Simmonds, strategist at royal bank of Scotland in Singapore.

"Pending a convincing pick up in domestic demand they (central banks) are going to remain pretty sensitive to exchange rate moves. That certainly does seem clear," he added.

However, Simmonds said Asian currency losses could be a corrective move within the well established weak US dollar trend, which is unlikely to reverse anytime soon.

"Periodically we’re going to get some pretty sharp and unpleasant corrections and this is one of them," he said.

Elsewhere, the Philippine Peso edged off a one-month high hit on Monday but dealers in Manila said fresh remittances from overseas workers were supporting the peso.

Dealers said with the import season having peaked, and overseas workers remitting dollars for the school admission season, the Peso was likely to see stronger levels in coming days. (AGENCIES)