Daily Excelsior...Business

Instanex Skindia DR Index tumbles by 249 pts

MUMBAI, Jan 23: The Instanex Skindia DR Index tumbled by 248.70 points or 7.53 per cent to 3,054.10 on January 22 from 3,302.80 previously.......more'

Infosys imposes penalty on CEO for violating rules

NEW DELHI, Jan 23: Software services firm Infosys Technologies has imposed a fine on its Chief Executive Officer S Gopalakrishnan and an independent Director Jeffrey Sean Lehman for ......more

Canara Bank net up 26% at Rs 458.83cr

NEW DELHI, Jan 23: Canara Bank today said its net profit increased 26 per cent to Rs 458.83 crore for the third quarter ended December 2007, compared with Rs 363.......more

Wheat dara prices upon fresh demand

NEW DELHI, Jan 23: Wheat dara prices gained Rs 20 per quintal in the wholesale grain market here today on fresh buying by rolling flour mills amid poor supply.Marketmen said increased offtake by rolling flour mills and atta chakkies .......more

Pulses prices remain flat

NEW DELHI, Jan 23: Steady conditions prevailed in the wholesale pulses market here today as prices moved in a narrow range on little bouts of trade and closed at previous levels......more

Cut interest rates to strengthen macro eco of India: CII

NEW DELHI, Jan 23: A day after US Fed slashed interest rate by 75 basis points, industry body CII suggested to cut interest rates to strengthen the macro economic ......more

In Pink city, a time for celebration of literature

JAIPUR, Jan 23: Aamir Khan and Dev Anand might be on the list of celebrities attending the third edition of the ‘Jaipur Literature festival’ that kickstarted here today.....more

India, ASEAN to sign FTA by March

NEW DELHI, Jan 23: Commerce Secretary G K Pillai today said India will sign the free trade agreement (FTA) with the Association of South East Asian Nations (ASEAN) by March this year and it will come into effect by January 2009."We .....more

New ICICI fund targets investors in Gulf Dubai...

M&M exports 500 vehicles to Ghana...

US rate cut to benefit Indian exports: Nath .....

RBI may not automatically cut rates on US Fed cut...

Instanex Skindia DR Index tumbles by 249 pts

MUMBAI, Jan 23: The Instanex Skindia DR Index tumbled by 248.70 points or 7.53 per cent to 3,054.10 on January 22 from 3,302.80 previously.

The P/E Ratio also dropped to 27.08 from 29.34, a Instanex Capital release said here today.

Following are the GDR and ADR rates for Jan 22 in US dollars with differences in percentage from the previous level given in brackets.

Bajaj Auto(GDR) 53.67 (-0.37)

Dr Reddy (ADR) 16.35 (-3.14)

HDFC Bank (ADR) 113.15 (-4.61)

Hindalco (GDR) 3.70 (-13.95)

ICICI Bank (ADR) 61.68 (-1.06)

Infosys Tech (ADR) 38.07 (+0.13)

ITC (GDR) 4.61 (-16.03)

L&T (GDR) 93.36 (-5.70)

MTNL (ADR) 7.02 (-17.22)

Ranbaxy Labs (GDR) 8.55 (-11.48)

Reliance (GDR) 119.00 (-16.61)

Satyam Comp (ADR) 23.35 (+3.46)

SBI (GDR) 112.25 (-10.86)

VSNL (ADR) 27.00 (-12.05)

Wipro (ADR) 12.26 (+1.32)

(PTI)

Infosys imposes penalty on CEO for violating rules

NEW DELHI, Jan 23: Software services firm Infosys Technologies has imposed a fine on its Chief Executive Officer S Gopalakrishnan and an independent Director Jeffrey Sean Lehman for violating company rules.

The Audit Committee of Infosys Technologies' board of directors has imposed a penalty of Rs 5 lakh on Gopalakrishnan and a fine of 2,000 dollars on Lehman as they failed to comply with the insider trading norms of the company, Infosys said in a notice to the US Securities and Exchange Commission (USSEC).

According to the Insider Trading Rules, a director, officer or other designated employees of the firm may buy or sell its securities only after prior notification and must notify within one business day following any change in his or her shareholding, it added.

The process requires the employee to apply to the firm's compliance officer for pre-clearance of each of such transaction and provide certain information and undertakings to the company through its compliance officer.

On December 24, 2007, Gopalakrishnan, the Chief Executive Officer and MD of Infosys Technologies inherited 12,800 equity shares from his mother.

However, he failed to notify the company within one business day following the change in his shareholding, which led to the imposition of Rs 5 lakh penalty.

Gopalakrishnan was directed to donate the amount to a charitable organisation of his choice and he has made the donation as directed by the company's audit committee.

Besides, on December 7, 2007, Jeffrey Sean Lehman, an independent Director of Infosys sold 900 American Depositary Shares (ADSs) of the company. (PTI)

Canara Bank net up 26% at Rs 458.83cr

NEW DELHI, Jan 23: Canara Bank today said its net profit increased 26 per cent to Rs 458.83 crore for the third quarter ended December 2007, compared with Rs 363.02 crore over the same period a year ago.

Its total income has increased 26 per cent to Rs 4096.6 crore for the quarter ended December 31, 2007 from Rs 3245.39 crore in the same period last year, a statement said.

(UNI)

Wheat dara prices upon fresh demand

NEW DELHI, Jan 23: Wheat dara prices gained Rs 20 per quintal in the wholesale grain market here today on fresh buying by rolling flour mills amid poor supply.

Marketmen said increased offtake by rolling flour mills and atta chakkies against reduced arrivals pushed up wheat dara prices.

However, other grain prices remained steady in sporadic deals.

Wheat dara prices rose by Rs 20 to Rs 1,130-1,135 from 1,110-1,115 a quintal on better offtake.

Rolling flour mills prices moved up to Rs 1,125-1,130 from 1,110-1,115 a 90 kg bag.

Chakki atta delivery prices also posted high to Rs 1,128-1,132 from Rs 1,110-1,120 a 90 kg bag. (PTI)

Pulses prices remain flat

NEW DELHI, Jan 23: Steady conditions prevailed in the wholesale pulses market here today as prices moved in a narrow range on little bouts of trade and closed at previous levels.

Marketmen said poor demand against short supply kept the prices flat.

Following were today's quotations (in Rs per quintal):

Urad Maharashtra 1800-2200, Rangoon 2100-2150, Urad chilka (local) 2500-2650 , best 2700-2900, dhoya local 2650-2850, best 3000-3200, Moong Maharashtra 2250-2450, UP\Bihar 2000-2300, Rajasthan 1850-2150, dal moong chilka local 2500-2700, best 2700-3000, moong dhoya local 2650-2800, best quality 2900-3200, masoor small 3100-3250, bold 2900-3050, dal masoor local 3200-3350, best quality 3400-3600, Malka local 3150-3300, best 3375-3550, Moth 1700-1850, Arhar Maharashtra 2400-2500, Rangoon 2300-2350, dal arhar dara 3050-3150 and patka 3300-3600.

Gram 2225-2275, gram dal (local) 2450-2600, best quality 2650-2800, besin (35 kg) shakti bhog 1050, rajdhani 1040, Rajmah chitra Pune 3125-3825, China 3525-3825, red 2850-2900, kabli gram small 2600-3275, dabra 2775-2875, imported 4600-4700, lobia 2200-2600, peas white 2100-2175 and green 2050-2100. (PTI)

Cut interest rates to strengthen macro eco of India: CII

NEW DELHI, Jan 23: A day after US Fed slashed interest rate by 75 basis points, industry body CII suggested to cut interest rates to strengthen the macro economic fundamentals of the country in an increasingly uncertain global environment due to slowdown in the US.

"With inflation under control and hovering around 3 per cent, it is the right time for RBI to cut repo and reverse repo rates to cover the relative competitive disadvantage India is currently in on macro economic fundamentals," CII President Sunil Bharti said in a statement here today.

The statement assumes significance as the Reserve Bank’s quarterly review of credit policy is due on January 29.

Repo and reverse repo rates are currently at 7.75 per cent and 6 per cent respectively by 25 to 50 basis points.

CII also said, the decline in Index of Industrial Production (IIP) in the recent months could trigger a slowdown in the manufacturing sector, especially in the consumer durables sector, which has witnessed a negative growth at 1.7 per cent during the period April-November 2007 against corresponding period last year.

Easing of interest rate would strengthen the economic fundamentals and also boost investors’ confidence, Bharti said.

In its recommendations for the quarterly review of Monetary Policy 2007-08, the CII President expressed concern over high interest rates affecting investments and growth and suggested that the time is right to recognize the need to reduce interest rates, which is pivotal to sustain 9 per cent plus GDP growth.

The country would need investment rates in excess of 36 per cent of GDP to achieve 9-10 per cent GDP growth in the medium term, which is again important to raise per capita income and reduce income inequalities, he added. (PTI)

In Pink city, a time for celebration of literature

JAIPUR, Jan 23: Aamir Khan and Dev Anand might be on the list of celebrities attending the third edition of the ‘Jaipur Literature festival’ that kickstarted here today, the organisers however believe the event is strictly a celebration of literature from all across the world and the Bollywood greats will only be a part of it.

While Dev Anand has been invited at the festival as a writer and not as a Bollywood celebrity, Aamir Khan’s presence will lend just another creative touch to the proceedings, says author Namita Gokhale who is one of the directors of the event along with William Dalrymple and Eleanor O’ Keeffe.

"It will be wrong to interpret that we are trying to glamorise a literary event by giving it a touch of Bollywood. As far as Dev Anand is concerned, he will feature at the event as an author who penned down his autobiography last year. He will speak about his ‘Life and Times’," says Gokhale.

"A number of cultural events including a play by Girish Karnad and a performance by Anoushka Shanker have been clustered around the literature festival and the presence of Aamir Khan and the screening of his latest film ‘Tare Zameen Par’ will be another ancillary event", she adds.

The festival which is being held for a third year has given Jaipur a strong identity as a literary city, according to Gokhale.

"The four day festival will be literature lover’s delight, a rendezvous with some of the world’s great literary figures, all under one roof", she says.

In 2007, Jaipur witnessed the presence of legendary authors like Salman Rushdie and Kiran Desai. This year the starry gathering includes the Booker Prize winner British author Ian McEwan, who will also preside over the film premier of ‘Atonement’ which is an adaptation of his highly acclaimed novel with the same name.

Besides McEwan, the American writer Gore Vidal-a noted Bush-baiter will also speak on the ‘World post 9/11’. Among other literary figures who will be part of the four day extravaganza are Anglo-Indian author Indra Sinha whose version of the Bhopal gas tragedy ‘Animal’s People’ was shortlisted for the 2007 Man Booker Prize.

A number of Pakistani writers will also be present at the literary fest. While Shahbano Bilgrami, Kamila Shamsie and Moni Mohsin are among the visiting literary figures from the other side of our western border, the writer who is sure to grab eyeballs is Fatima Bhutto.

Asked if the outspoken and assertive niece of the slain Pakistani leader will be the highlight of this year’s event, the way Rushdie became the cynosure of all eyes last year, Gokhale plays down the fact.

"Though Bhutto’s visit is on the cards and she might make it to Jaipur, it will not be right to call her the highlight because our event is not focused on an individual, it is about a number of local and international authors and all of them are equally significant", she says.

On the absence of Taslima Nasreen from the list of visiting writers despite she being present in India, Gokhale says "it would have been nice if she was here, unfortunately, the political and social conditions surrounding her stay in India do not provide a conducive environment for her being invited to such a festival".

The festival was preceded by a two day international conference on ‘Translating Bharat’ where writers from all across India including the states of North East met to discuss the problems related to translating vernacular literature.

"Together we showcased the variety and diversity of Indian literature and shared the concerns of writers about translating across languages", Gokhale says.

Cultural performances and music also feature highly on the festival agenda. The performers this year include Paban Das Baul and Shusheela Raman, besides Anoushka Shankar and Karsh Kale whose concert will feature the compositions of their latest album ‘Breathing under water.’ (PTI)

India, ASEAN to sign FTA by March

"We hope to conclude negotiations with ASEAN by March and the agreement will come into effect by January 2009," Mr Pillai told reporters here.

This will bring the tariff down on 73 per cent of tradeable items, he added.

The country is also negotiating FTAs with the European Union, South Korea and Japan which are expected to be concluded by next year end.

"We are negotiating similar pacts with the European Union, South Korea and Japan. We are hopeful that we will conclude the agreements by

end of 2009," Mr Pillai said.

(UNI)

New ICICI fund targets investors in Gulf Dubai...

DUBAI, Jan 23: India’s leading private sector bank ICICI has chosen Dubai for the global launch of a fund that will focus on India’s infrastructure and real estate sectors.

A lot of investors from the Gulf are keen on investing in the country’s infrastructure which would need nearly USD 500 billion in the few years.

ICICI Group Global Private Clients unveiled the ‘IOPM Infrastructure and Real Estate Fund’, a first of its kind offshore close-ended thematic fund. ICICI Bank is the sole arranger for the fund, which would be available for ICICI bank global private clients on a private placement basis.

Investment advisors to the fund would be under ICICI Bank’s asset management arm in India, ICICI Prudential Asset Management Co (IPAMC), headed by ICICI Prudential AMC Chief Investment Officer Nilesh Shah.

Launching the fund in Dubai, Ashish Kehair, Head - Products and Strategy, Global Private Clients, ICICI Group, said infrastructure and real estate are two of the most promising sectors in the Indian economy.

"With a staggering USD 500 billion planned investment in infrastructure sector in the next four years, and USD 50 billion investments in the real estate sector in the next three years, these two sectors will together propel the Indian economy into an different stratosphere and ensure double-digit GDP growth," he said.

"We believe this fund presents the opportunity to participate in the Indian growth story and further capture the high growth rate in infrastructure & real estate sector. The fund will invest directly into listed equity related securities of Indian industries from the infrastructure and real estate sectors," he added.

The real estate sector has witnessed a revolution both in terms of policy and in terms of growth. Over 30 per cent annual growth in the sector is possible because of favourable demographics and liberalised FDI regime.

The twin features of the fund - drawdown and close-ended - are its main attractions. The drawdown facility provides the investors with the option of staggered investment by paying 50 per cent of investment amount upfront and the balance within six months.

For the fund managers, too, the drawdown option provides opportunities to tap market movements to take beneficial investment decisions. The fund would also enable investors to make disciplined investments because it is three-year, close- ended scheme, with restricted liquidity after the first year.

The close-ended fund structure would help in better leveraging the long-term India story without the mundane pressures of redemptions typically faced by open-ended funds.

ICICI Prudential AMC manages corpus of more than USD 14 billion as on December 31, 2007, and has one of the largest mutual fund investment team in India.

ICICI Bank’s international presence currently spans 18 countries and includes wholly-owned subsidiaries in the UK, Canada and Russia; offshore banking units in Singapore and Bahrain; a branch in Dubai among others. (PTI)

M&M exports 500 vehicles to Ghana...

NASIK, Jan 23: Country’s largest utility vehicle manufacturer, Mahindra & Mahindra today dispatched 500 vehicles, including SUVs Scorpio and Bolero and their pick-up range to Ghana government, a senior company official said.

The dispatch marks the largest ever one time export consignment rolled out from Nasik plant, the plant’s vice-president Vijay Dhongde said.

Both Dhongde and Ashok Thakur, senior general manager-exports (Africa and Middle East) flagged off the vehicles.

As demanded by Ghana government, M&M have manufactured the navy-blue-colour vehicle, especially for use in the police department, he said.

Earlier, the company have dispatched about 200 vehicles to Ghana in 2004.

"Our plans for the African market and in particular Ghana, are on stream in conjunction with our export plans announced in November last year, the roll out of 500 vehicles spells out the kind of demand that Mahindra vehicles have in Ghana and other West African markets," he added.

The recently launched Scorpio 2.2 vlx was developed, keeping in mind the company’s global aspirations and competence, Dhongde added. (PTI)

US rate cut to benefit Indian exports: Nath .....

DAVOS, Jan 23: Commerce and Industry Minister Kamal Nath has said a hefty cut in the US interest rates will have a positive impact for the Indian exports, but industry leader Rahul Bajaj felt the move will further hit exporters.

"The US Fed’s decision would rather boost Indian exports to America as it would raise demand in the biggest economy of the world," Nath said at the World Economic Forum annual meet here.

He said the US rate cut would not affect the Indian economy, which has strong fundamentals.

However, industry leader and Rajya Sabha Member Rahul Bajaj said that the US Federal Reserve’s decision to cut interest rates could adversely affect Indian exports as rupee would further appreciate against dollar due to increase in flow of foreign investment in stock market. (PTI)

RBI may not automatically cut rates on US Fed cut...

MUMBAI, Jan 23: The Reserve Bank may not automatically cut rates in its monetary policy review this month end in the wake of 75 basis points reduction in key rates by the US central bank, a top Indian banker said today.

"Though there may not be a rise in rates, the Fed cut in the US does not mean that rates should automatically go down in India or that India should follow the Fed’s cue," State Bank of India Chairman O P Bhatt told reporters here.

RBI will have to take into consideration other factors as well when deciding on its policy rates, Bhatt said.

"The factors here are different than those in the US. These factors have to be examined and I am sure that the authorities concerned will examine these factors and, based on the result, will decide whether the rate should be reduced or left untouched," Bhatt said.

If a status quo is maintained on the rates, "it will be a positive signal," he said.

The US Federal Reserve yesterday cut key interest rates-Fed funds rate and discount rate-by 75 basis points, biggest in more than last two decades, to avoid recession in the US economy.

On the recession in the US economy and its likely impact on India, the SBI Chairman said growth in the Indian economy has taken place largely driven by domestic factors and only a small percentage was based on external factors like exports.

"That is the resilience of the Indian economy," Bhatt said.

Besides, recession in the US may prompt American companies to outsource their activities, which may come to India. "So there may be more business activities in India," he said.

On the current market volatility, Bhatt said it has nothing to do with the fundamentals of the economy. "Therefore, India is not in trouble," he said, adding that all sectors are performing well".

There is enough liquidity in the system as well, he said.

According to him, volatility was confined only to the stock market.

On SBI’s rights issue, Bhatt said he said it would go through successfully.

"We have priced it at a 35 per cent discount at Rs 1,600... People will stand in queue to buy this issue," he said.

The current volatility in the stock market would not affect the rights issue, he said.

On the pricing of its rights issue, Bhatt said there were two reasons "why we have priced it at this level. We wanted to make sure that in case of any volatility in the market, there will be a significant discount which will attract the investors."

"The other reason is that many people who have invested in SBI have been long-time investors in the bank and the bank wanted to take care of their interests," he added. (PTI)