India economy growth slows to 7.9 percent in Q1

India's economy grows at 7.9% in Q1

Indian economic growth moderated to 7.9 per cent in the first quarter of current fiscal, against 9.2 per a year ago as rising borrowing costs impacted manufacturing and some other sectors.However, moderation in the GDP growth was expected as RBI hardened interest rates to control double-digit inflation.

If the first quarter GDP growth continues in the remaining months of this fiscal, the economy would expand at the rate more or less projected by Finance Minister P Chidambaram.
He projected the economy to grow by close to 8 per cent, compared to 9 per cent in the previous fiscal.

Manufacturing growth almost halved to 5.6 per cent, against 10.9 per cent as rising interest rates impacted their expansion. Even though agriculture grew by lower rate of three per cent, it is quite considerable on the high base of 4.4 per cent.

The other sectors which witnessed considerable decline in growth rate are electricity, gas and water supply, which expanded at the rate of 2.6 per cent against 7.9 per cent.In the services sector, trade, hotels, transport and communication grew by 11.2 per cent, against 13.1 per cent.
Finance, insurance, real estate and business services expanded by 9.3 per cent, against 12.6 per cent.

However, community, social and personal services grew by higher rate of 8.4 per cent, against 5.2 per cent.Construction activities also expanded at higher rate of 11.4 per cent, as compared to 7.7 per cent, while mining and quaring grew by 4.8 per cent, against 1.7 per cent.
In absolute terms, India's GDP stood at Rs 7,82,357 crore (Rs 7,823.57 billion) in the first quarter of this fiscal, against 7,24,949 crore (Rs 7249.49 billion) in the corresponding period of 2007-08.

In services, trade, hotels, transport and communication grew by 11.2 per cent against 13.1 per cent, while financing, insurance, real estate and business services rose at the rate of 9.3 per cent against 12.6 per cent.However, community, social and personal services grew at higher rate of 8.4 per cent against 5.2 per cent.

Commenting on the growth figures, PM's EAC member Saumitra Chaudhuri said, "It is on expected lines. When EAC came out with the GDP projection, monsoon conditions were not clear. If monsoon turns out to be good, which seems to be the case, there could be some upside."
What is heartening is that investment in the economy continues to be buoyant.
"The investment-GDP ratio has risen to 37.9 per cent, which means GDP growth is likely to be maintained," a finance ministry official said.

However, some analysts believe that economy is likely to expand at lower growth rate in the next quarter. "I expect that the figures would be flat below 7.9 per cent in the next quarter," CRISIL principal economist D K Joshi said.

Moderation in economic growth, particularly in manufacturing, was expected as RBI had tightened monetary policy to curb double digit inflation.For the first quarter, wholesale prices-based inflation stood at 9.4 per cent. Mineral inflation was at a huge 46 per cent, while food articles inflation stood at 5.8 per cent, fish at 1.5 per cent, manufactured products at nine per cent and electricity at 1.4 per cent.

The consumer price index for industrial workers, which is a better indicator of the impact of price rise on the common man, rose by 7.7 per cent in the first quarter.
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India's economy grows at 7.9% in Q1
Growth at 3 year low but rates to stay tight
Economic growth slows to 7.9%
GDP moderates to 7.9% in Q1



Source: ET,Rediff,BS, BL

Top Business Headlines

Top Headlines

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Tata Steel consolidated Q1 profit up 60.5 pc

Tata Steel Global eyes $1 bln PE deal
Market discounts GDP slowdown; indices up over 2%
RIL gets nod to transfer KG assets to four arms
India kicks off FX futures trade, front-months lead

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Revised draft for NSG ready
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Sensex rallies 516pts; financial, realty stocks lead

Source:ET, BS, BL etc

Inflation falls marginally to 12.40 percent

Inflation down to 12.40% Vs 12.63%
Inflation falls marginally to 12.40%
28 Aug, 2008, 1800 hrs IST, ECONOMICTIMES.COM
Inflation slipped marginally to 12.40% for the week ended August 16 from 12.63%.

Giving a little respite to the hapless consumers, inflation slipped marginally to 12.40 per cent for the week ended August 16 from 12.63 per cent a week before. Earlier Lehman Brothers expected inflation to increase to 12.82 per cent y-o-y from 12.63 per cent in the previous week, due to higher prices of food articles, rubber, sugar, paper products, oilseeds, textiles & rubber and plastic products.

"We expect the final WPI inflation to peak in Oct/Nov at around 13.5-14.0 per cent, but to stay in double-digit territory until February 2009. Based on our forecast of slower GDP growth of 7.3 per cent in FY09, our energy team's forecast of the price of oil falling sharply to $90/bbl in Q1 2009, plus favorable base effects, our forecast is that WPI inflation will start turning down decisively in January 2009," it said in a report.

It is the 27th consecutive week the inflation rate has been above 5.5 per cent, the RBI's original target for inflation at the end of the fiscal year in March 2009. At a policy review in late July, the RBI raised its key lending rate by 50 basis points to 9 per cent and also increased banks' reserve requirements, and said it was now aiming to bring inflation down to 7 per cent by the end of March. The government has said the inflation rate would hit 13 per cent and thereafter start moderating from December, before settling at 8.0-9.0 per cent by the end of the fiscal year in March.

A slide in prices of oil, India's biggest import, to around $117 a barrel from a record high above $147 in mid-July, is expected to ease the pressure on inflation. However, analysts said pressure from primary articles and strong demand despite the several rounds of policy tightening would most likely propel inflation higher for some months.


Other Top stories:
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Cash based selling widens September premium, rollovers low
Bears rule on inflation jitters, crude prices
Market ends sharply lower; RIL down over 3%
US stocks open higher on GDP data

Forbes' Top 25 powerful women in pics
Mayawati enters Forbes' power women list; Sonia slips in rank
Forbes' Top 25 powerful women in pics
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Source: ET,BS etc

Tata Steel Q1 cons PAT at Rs 3901 cr

Tata Steel Q1 cons PAT at Rs 3901 cr
Tata Steel Ltd has announced the following...
Tata Steel Group Earnings Beat Estimate on Prices (Update2)
Tata Steel Profit, Including Corus, Climbs

By Debarati Roy and Paresh Jatakia
Aug. 28 (Bloomberg) -- Tata Steel Ltd., India's largest producer, reported a better-than-expected 60 percent gain in first-quarter profit, including unit Corus Group Plc, on increased prices and output of high-grade products.

Net income rose to 39 billion rupees ($891 million) in the quarter ended June 30 from 24.3 billion rupees a year earlier, the Mumbai-based company said in a statement today. Five analysts in a Bloomberg survey estimated a median profit of 19.7 billion rupees. Sales climbed 39 percent to 435.6 billion rupees.

Steelmakers including ArcelorMittal and Posco raised prices this year after a threefold increase in coking coal rates and a near-doubling of iron-ore costs. Tata, which has held prices in India because of a government directive, faces the challenge of battling record raw-material costs, Chairman Ratan Tata said at a shareholders meeting in Mumbai today.

``Cost pressures will start kicking in in the coming quarters and that'll have a moderating impact on profits,'' said Sanjay Jain, an analyst at Motilal Oswal Securities Ltd. in Mumbai. The brokerage has a ``buy'' rating on the stock.

Global prices of hot-rolled coils, a benchmark product, are poised for their first monthly drop in a year, according to Steel Business Briefing. That may leave Indian producers little choice but to lower rates after keeping them unchanged since May.
``If international market prices come down, they will have to cut,'' Steel Secretary Pramod Rastogi told reporters Aug. 22.
A government order kept domestic prices as much as 15,000 rupees ($342) a metric ton below global levels, according to S.K. Roongta, chairman of Steel Authority of India Ltd., the nation's second-biggest producer.
Discount Narrows
A fall in global prices and cheaper imports from Southeast Asian countries has reduced this discount to $100 a ton, Mumbai- based India Infoline Ltd. said in a note dated Aug. 26.
``Domestic prices can come under pressure if international prices soften by $100-150 a ton,'' Bijal Shah and Sumit Pathak, analysts at the brokerage, said. ``Demand is weakening in Europe, U.S. and China and there are concerns on the global outlook.''
Tata Steel shares fell 1.6 percent to 571.95 rupees at the close of trading in Mumbai, before the earnings were announced. The stock has lost 39 percent of its value this year, compared with a 31 percent decline in the benchmark Sensitive Index.
The shares trade at about 8 times forecast profit, according to data on the Bloomberg. Falling prices may keep valuations for Indian steelmakers depressed, said Shah and Pathak.
Tata Steel is the worst-performer on the benchmark Sensitive stock index in the past three months, according to Bloomberg data.
`Buy' Ratings
Still, as many as 22 of 28 analysts tracking Tata Steel have a ``buy'' recommendation on its shares, with an average one-year price target of 932 rupees, according to Bloomberg data.
The company last month reported a 22 percent jump in first- quarter profit to 14.22 billion rupees from its Indian mills.
Tata Steel and Corus sell more than two-thirds of their production in Europe. While Tata imports a third of the coal needed for its Indian plants and mines its own iron ore, Corus buys both the raw materials.
The company is looking at forming iron-ore and coal ventures in Mozambique and scouting for limestone ventures in Oman, to secure raw material supplies, Tata told shareholders today.
Pension Assets
Meantime, the value of the pension funds of Corus, worth 14 billion euro ($21 billion) -- more than twice Tata Steel's market value -- eroded by 648 million euro in the period. The reduction has been accounted in the balance sheet, instead of profit and loss account, Tata Steel said in the statement.
Pretax profit would have been lower by 53.52 billion rupees had the previous practice of reflecting the value of pension fund assets in earnings been followed, Tata said.
``Given the size of the pension assets, it is a good idea to route it through the balance sheet to avoid huge fluctuations in earnings from quarter to quarter,'' said Giriraj Daga, an analyst at Khandwala Securities Ltd. in Mumbai. ``The losses are mark-to- market and can change. It's not a negative.''
-----------------------------------------
Tata Steel has declared its consolidated results for the quarter ended June 2008 (Q1). The company's net profit was at Rs 3914.6 crore (including Corus) versus Rs 2409.12 crore.
Its net sales were at Rs 43,508 crore (including Corus) versus Rs 31,162 crore.

Highlights
Margins at 16.1% vs 15.4% (YoY)
Margins at 16.1% vs 12.3% QoQ
Forex loss of Rs 303 cr vs loss of Rs 537 cr
Increase in stock in trade at Rs 1607 cr vs Rs 336 cr
Actuarial gains/ losses not shown in P&L in accordance with IFRS principles and permitted in AS21
Had it been accounted then Q1 profits would have been lower by Rs 5352 crore resulting in loss of Rs 1438 crore
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Other MC stories:
RIL can assign 80% in D6 to its affiliates
Marksans buys UK co for Rs100cr
Aditya Birla Nuvo eyes 56% in ASCIL
Tatas may miss Oct deadline on Nano

Tata Steel Q1 cons PAT at Rs 3901 cr
RNRL shifts stance, ready to trade gas for 3 yrs

Source:MC, Bloomberg

Reliance may transfer 80% in KG D-6 to four affiliates

Reliance may transfer 80% in KG D-6 to four affiliates

Reliance Industries (RIL) is planning to transfer 80% of its participatory interest (PI) in the famous D6 block in the Krishna Godavari (KG) basin to four unlisted subsidiaries. Valued at nearly $50 billion with 14 trillion cubic feet of gas reserves, this is the arguably the most valuable asset held by the company. These four entities — Reliance KG Exploration and Development, Reliance KG D6 E&P, Reliance KG Basin and Reliance E&P KG — have recently become majority-owned subsidiaries of RIL. RIL has sought the petroleum ministry’s approval for this.

The ministry, in turn, has asked the upstream regulator, the Directorate General of Hydrocarbons (DGH), to furnish a list of similar cases where more than 50% of PI in blocks have been transferred to affiliates. A source familiar with this development told ET: “This is a usual practice in the global oil and gas business. It will provide greater financial flexibility to these subsidiaries for raising funds.” However, Director General of Hydrocarbons VK Sibal declined to comment, saying he has not seen any such request from the company. The RIL spokesperson too declined to comment on the issue. An email sent to Niko Resources, which holds 10% stake in the block, failed to elicit any response.

RIL holds 90% participating interest in the block. The exact value or structure of the transaction by which RIL would transfer its stake to the four subsidiaries could not be ascertained. However, it is learnt that RIL will continue to be operator of the block with at least a 10% stake, post the transaction. An analyst with an international research firm said: “The four affiliates will have strong balance-sheets, with a part of the KG basin assets. This will help them bid for global oil and gas assets. It also means that these companies may raise funds, if required, for their overseas bidding without stretching the RIL balance-sheet.” The analyst cautioned that there may be a perception that the interest of RIL shareholders may be affected by transferring this asset to the subsidiaries if it does not hold very large equity in them after the transaction. RIL’s exact shareholding in these four unlisted firms could be not ascertained.

What is known is that these firms are subsidiaries of RIL, meaning RIL’s shareholding may vary from 51-100%. However, the source quoted earlier said there would be no impact whatsoever on RIL’s shareholders as the subsidiaries were majority-owned and controlled by RIL.

Last week, in the course of his arguments, the government counsel TS Doabia had said in the Bombay High Court that RIL cannot transfer or assign its participating interest in favour of any other company without government approval, under the provisions of the production sharing contract. Mr Doabia made this comments in response to RNRL’s counsel Ram Jethmalani. Mr Jethmalani had asked for the transfer of RIL’s participating interest in the KG basin to RNRL so that the latter can sell the gas till its proposed 7,800 mega watts (MW) power plant at Dadri comes up. “RNRL will sell the gas in line with the government policy as is the case with RIL.

The government counsel’s submission that Mukesh only can sell gas but Anil cannot is biased. If needed, the court can direct transfer of PI in PSC to RNRL to enable RNRL to sell the gas. RNRL is prepared to share RIL’s investment for the development of the KG basin proportionately,” said Jethmalani in his submission to the court last week. He also said that RNRL is ready to invest Rs 25,000 crore for this. Production from the KG basin is likely to commence in the December quarter.

The company will initially produce up to 40 million metric standard cubic meters per day (mmscmd) of gas, which would be scaled up to 80 mmscmd by 2010. The sale of gas from the initial production is disputed and the Bombay High Court has restrained the company from selling gas to any third party besides NTPC and RNRL. RIL is embroiled in separate legal battles with NTPC and RNRL. On the BSE, RIL shares declined by a marginal 0.65% or Rs 14.7 to close at Rs 2230.95 on Monday. The stock has gained 0.27% over the past one week and 3.89% in the last one month.

----------------------------------------
Other Stories:
Chidambaram confident of 8-9 per cent growth
TCS gets Singapore Airlines Cargo contract
ONGC makes four oil & gas discoveries
Mixed views on Infosys-Axon deal
Rupee slips to fresh 17-month lows

Imperial Energy says ONGC makes $2.6 b approach
Tata and Ambanis among bidders for Worli-Haji Ali sealink
Emami in talks with Zandu Pharma over management sharing
Falling oil bolsters short covering
Not just gas, Ambani brothers have at least a dozen issues to resolve

OVL to buy Imperial for 1.4 bn pounds
Reliance aims to transfer 80 pc stake in gas block
Cairn to produce 16 pc more oil from Rajasthan fields


Source:ET,SIfy.

Sensex stages a smart recovery, ends 32 pts up : Sify

Sensex stages a smart recovery, ends 32 pts up

After opening on a weak note this morning and remaining in the red for a long time, the market staged a smart recovery in late afternoon trade to end on a positive note today thanks to heavy buying in auto, bank and IT stocks. Reports of a near normal monsoon aided the sentiment to an extent.

While the 30 share BSE sensitive index Sensex ended the day with a gain of 31.87 points or 0.22% at 14,482.22, the broader 50 stock Nifty index of the National Stock Exchange settled with a small gain of 2.15 points at 4337.50. Earlier, after opening at 14,338.27, the Sensex had tumbled to 14,286.38 in morning trade.

A weak close on Wall Street, a negative trend on the Asian bourses and a jump in oil prices had triggered heavy selling in morning trade today. Information technology stocks surged higher following Infosys Technologies making the biggest ever overseas acquisition by the Indian IT sector.

Though the bellwether stock remained subdued for a better part of the session - in fact it ended with a loss of 0.3% today - other IT majors Satyam Computer Services (3.25%), Wipro (2.15%) and Tata Consultancy Services (1.8%) signed off on a firm note.

But it was bank stock HDFC Bank, which topped the list of gainers from the Sensex today. The private sector bank major ended stronger by nearly 4%. BHEL gained nearly 2%. Mahindra & Mahindra also ended with a gain of close to 2%.

Reliance Infrastructure, ICICI Bank, Hindustan Unilever, Ranbaxy Laboratories, Maruti Suzuki, ITC, State Bank of India and Hindalco gained 1% - 1.75%. ACC, Tata Power, NTPC, DLF, Larsen & Toubro and ONGC ended with modest gains.

Reliance Industries (down 2.3%) remained weak right through the session today. Jaiprakash Associates lost 1.85%. Tata Steel declined by 1.35%. HDFC, Reliance Communications, Sterlite Industries and Bharti Airtel lost 0.4% - 0.8%. Tata Motors and Grasim Industries posted marginal losses.

Suzlon Energy (down 4.25%) was the most prominent loser in the Nifty index. Zee Entertainment, Dr Reddy's Laboratories, ABB and Idea Cellular also declined sharply.
HCL Technologies, Punjab National Bank, Sun Pharmaceuticals, Cipla, GAIL India, Reliance Petroleum and Siemens ended with sharp to moderate gains.

Bosch vaulted 13.65% on a share buy-back proposal. Max India jumped nearly 7%. Phoenix Mills gained 5.7%. Piramal Healthcare, KSK Energy, IFCI, Punjab Lloyd, IRB Infrastructure, Bajaj Holdings, REI Agro, Bank of Baroda, Tech Mahindra, Kotak Bank, Reliance Capital, UCO Bank and Crompton Greaves gained in strength.

Among midcap stocks, FSL zoomed nearly 23%. Motherson Sumi ended with a hefty gain of 9.8%. Sun Pharma Advanced Research, Apollo Tyre, IndusInd Bank, BF Utilities, Zee News, Torrent Pharma, KEC International, 3i Infotech, NIIT, Provogue and Shristi Infrastructure also ended on a firm note.

As the focus was on large cap stocks today, not many stocks from midcap and smallcap segments made it to the positive territory. The market breadth was negative. Out of 2692 stocks traded on BSE, 1199 stocks closed with gains. 1389 stocks posted losses and 104 stocks ended flat.

Source:Sify India.

Investor's Guide: ET

Investor's Guide

Top stories
Bargain hunting helps indices close higher25 Aug, 2008, 0513 hrs IST, DEEPAK MOHONI
The market declined for the second successive week, with the Sensex finishing 2.19% or 323 points lower, the Nifty losing 2.33% and the CNX Midcap falling 2.71%.

Global stock indices mirror each other 25 Aug, 2008, 0502 hrs IST, Shakti Shankar Patra
Though the harbingers of globalisation may not have envisioned it, the interdependence of world economies and the free flow of capital have made global stock indices mirror each other.

BoI's stock a good bet for long term investors
25 Aug, 2008, 0452 hrs IST, Karan Sehgal & Diana Montei Ro
Bank of India’s cheap valuations belie its strong performance across key parameters. The stock is an interesting bet for long-term investors.

Piramal stock outperformed the Sensex 25 Aug, 2008, 0433 hrs IST, Kiran Kabtta
Piramal Healthcare’s stock has outperformed the Sensex since the start of this year. There’s still significant upside left in the stock and long-term investors can accumulate it at the current price.

Analysts'Picks: Tata steel, Idea cellular, Tata chemicals, Lupin, ONGC
25 Aug, 2008, 0424 hrs IST
Tata steel, Idea cellular, Tata chemicals, Lupin, ONGC are good for investment.
Analysts'Picks: ONGC Govt had indicated that subsidy-sharing in FY09 will be fixed at Rs 45,000 crore for upstream cos Rs 20,000 crore for OMCs and oil bonds issuance at Rs 94,600 crore.
Analysts'Picks: Lupin Lupin has entered into multiyear agreement with Forest to promote the latter’s VHC product AeroChamber Plus to paediatricians.
Analysts'Picks: Tata chemicals Goldman sachs initiates ‘buy’ recommendation on Tata Chemicals with a target price of Rs 435, implying 29% potential upside.
Analysts'Picks: Idea Idea launched its mobile services in Mumbai last week.
Analysts'Picks: Tata steel CLSA maintains ‘outperform’ rating on Tata Steel, but lowers its target price to Rs 745.

Stock market may undergo correction in short term 25 Aug, 2008, 0418 hrs IST
With FY09 valuations looking fair, the stock market may undergo a correction in the short term before seeking a trend.

KEL stable growth is good bet for investors 25 Aug, 2008, 0415 hrs IST, Ramkrishna Kashelkar
Kabra Extrusiontechnik’s stable growth prospects, low valuations and healthy dividend yield make it a good bet for long-term investors.

Investors can scale operations with Unitech and DLF
25 Aug, 2008, 0349 hrs IST, Supriya Verma Mishra
Investors who want to take advantage of growth in the domestic real estate sector can draw strength from DLF’s impeccable delivery record and scale of operations, while the bravehearts can go for Unitech.

LIC is on shopping spree! 25 Aug, 2008, 0331 hrs IST, Krishna Kant
Not Everybody is selling while it’s demoralising for investors to hear about the exodus of deep-pocketed FIIs, they can take heart from the fact that LIC, the big daddy of the Indian equity market, is on a shopping spree.

IT sector grapples with fluctuating rupee
25 Aug, 2008, 0325 hrs IST, Santanu Mishra & Ranjit Shinde
The IT sector is grappling with problems, but all’s not over yet. There are still some value picks for investors who are willing to be patient.


Source:ET

VC,PE updates

Articles from VCcircle.com

Balaji Telefilms, Star Group To Terminate Shareholding, JV Agreement
Sapat International Eyes British Tea Brands
UTV Software Acquires US-Based Online Gaming Startup True Games
M&M Acquires 51% Stake in Chinese Firm For $26 Million

News Roundup: Aditya Birla To Build $10bn Financial Biz
News Roundup: Taxman May Knock At Your Door If Received Rs 50 Lakh
Baer Capital Launches India Long/Short Hedge Fund
There Are Still Brave People In IPO Market

IFC Invests $18M In Indian Mortgage Guarantee Co
Swiss-German Fund MPC Synergy Invests $296 million In Phoenix Mills
Equitas Gets $12.5M Fund Infusion From Three Funds
Dawnay Day Sells Its Stake In India Venture To New Silk Route

Seventymm Raises $12 Million In Third Round From NEA Indo US Ventures
Ojas Venture Partners Invests In Mobile Tech Firm Mango
Matrix Partners Invests $7 Million In Mumbai Play School Tree House
Basiz Fund Services Gets $2 Million From NEA Indo US Ventures

Job Listings
Sr. Associate at Singhi Advisors Ltd
Assistant General Counsel at Top US Bank
Associate Vice President - Corporate Finance ...... View All

-------------------------------------------
IndiaPE.com

Flawless Diamonds to acquire distribution company in Dubai
California Software to buy UK firm for $60 m
NMCE may sell equity stake to Singapore Commodity Exchange
Future Group to pick stake in Blue Foods

Star may buy stake in Asianet
SRL Ranbaxy mulls merger with Fortis Health
PE funds join hands to put money in firms
3i, Kotak, NSR eye stake in Balaji

Kirloskar set to buy Germany's LDW
Dawnay Day sold to New Silk Route
VC Investment in India Jumps 120% to $238 Million in 2Q08
Anil Ambani eyes stake in Balaji

German fund buys stake in Phoenix SPVs for Rs 1,300 crore
Merrill Lynch picks up 50% in Salarpuria's hotel project
Seventymm raises Rs 50 cr in Series C funding

Source: Above sites.

Stock Analysis:BL

TECHNICAL ANALYSIS: Index OutlookIt was an irresolute trading week on the Indian bourses. There were no positive triggers to enthuse the market participants. On the other hand, the plethora of negatives that have been analysed thread-bare, do not appear to have the power to ...

STOCKS: Dabur India: BuyA large repertoire of FMCG (fast moving consumer goods) brands, a healthy pace of new launches and ability to manage margins amid volatile input costs make Dabur India a good addition to any long-term investor’s portfolio. ...

VENTURE CAPITAL: Clinching VC fundingHaving ambitions of becoming an entrepreneur? Do you have a commercial idea that you think is viable? Venture Capitalists (VCs), who provide money for nascent businesses, are the people you should get in touch with. ...

CEMENT: Cement: Lower valuations trigger M&AWith a volume growth of over 9 per cent per annum in the last three years, the Indian cement industry has drawn the attention of many foreign bigwigs over the years. The stimulus for entry into the Indian cement sector is getting stronger with ...

TECHNICAL ANALYSIS:
Reliance Infra (August 24, 2008)
Unitech (August 24, 2008)
Infosys (August 24, 2008)
Tata Steel (August 24, 2008)
Reliance Ind (August 24, 2008)
SBI (August 24, 2008)
Index Outlook (August 24, 2008)

Query Corner: What the charts say

STOCKS: Tata Steel: BuyInvestors can consider buying the Tata Steel stock trading at Rs 594, which is a price-earnings multiple of eight times its standalone earnings and about five times its likely consolidated earnings for FY-09 . The company’s integrated ...

STOCKS: Elecon Engineering: HoldInvestments can be retained in the stock of Elecon Engineering, an established player in both material handling equipment (MHE) and industrial gears business. At the current market price of Rs 112, the stock trades at about 11 times its likely ...

STOCKS: Motherson Sumi: BuyInvestors with a long-term perspective can consider exposure to the Motherson Sumi stock. At the current market price of Rs 80, the stock trades at a price-earnings multiple of about 15 (estimated FY-10 earnings). Though this valuation may ...

DERIVATIVES MARKETS: Derivative strategies: Using puts for discount buysTraders extensively use limit-orders to buy a stock at a discount to the market price. The present market structure does not allow traders to use Good Till Cancelled (GTC) order to buy or sell a stock at a certain price. Everyday, a trader has ...

INVESTMENTS: Go for gold‘Gold’, as an investment option, has been in the news in recent times. Suddenly every analyst is suggesting that gold should form part of every portfolio. And they are right. ...

DERIVATIVES MARKETS: Nifty future may drift further downThe Nifty August future lost another 2.5 per cent over the week to close at 4324.1 points against its previous week’s close of 4434.9. With just four days left for the settlement, Nifty August future is yet again under siege of ...

STOCK MARKETS: Baskets of XE-mail your guess before Tuesday to:

STOCK MARKETS: Bull's EyeE-mail your response by Tuesday to


For more: http://www.thehindubusinessline.com/iw/index.htm


Source: BusinessLine.

Growth: Can India catch up with China?

Growth: Can India catch up with China?



Can China and India sustain their current growth rates?

A traditional answer to this question is conditional: yes, provided they continue to implement policy reforms. But historical experience allows a less guarded answer.

There are few examples of countries that have grown as strongly and for such long periods as India and China have - 6 per cent and 10 per cent, respectively, for nearly three decades - and then suffered a sharp slowdown or collapse.

If history is a reliable guide, then barring major upheavals, economic growth looks likely to continue in both countries until some threshold level of prosperity is attained.
But why does growth beget more growth? One mechanism is simply that growth signals the fact of profitable economic opportunities, which encourages investors to rush in, first in response to these opportunities but then in response to each other - this is growth as a confidence trick - creating a virtuous circle.


If countries are relatively poor, if their markets are large, and if their policy framework is basically sensible - all of which are true of China and India - the chances of the growth-begetting-growth dynamic taking hold are high.

But in addition to the signalling effect, growth may itself cause changes which have in turn a growth-reinforcing effect - a kind of positive feedback loop. A good example is education.
For long, development economists bemoaned the poor levels of educational attainment in India, directing their critique at the government's failure to supply better education. But economic growth changed the education picture dramatically.


It increased the returns to, and hence the demand for, education. And if government supply remained weak, consumers simply turned to the private sector to meet their demand for education.


Improvements in educational attainment over the last 15 years are attributable in part to more rapid growth..



For more: http://specials.rediff.com/money/2008/aug/21slide2.htm



-------------------------------------

Other Rediff articles:



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Source:Rediff

US Stks- Lehman jump, oil plunge drives Wall St rally

US STOCKS-Lehman's jump, oil's plunge drives Wall St rally
US STOCKS-Market ends higher on Lehman's rally, lower oil

Index Value: 11,628.06
Trade Time: 4:08PM ET
Change: 197.85 (1.73%)
Prev Close: 11,430.21
Open: 11,426.79

* Hopes for an investment in Lehman boost financials
* Buffett says stocks more attractive now than a year ago
* Bernanke encouraged by drop in commodity prices
* Dow up 1.7 pct, S&P 500 up 1.1 pct, Nasdaq up 1.4 pct (Updates to close)
By Steven C. Johnson

NEW YORK, Aug 22 (Reuters) - U.S. stocks rallied on Friday to score their best daily gain in two weeks as hopes that Lehman Brothers (LEH.N: Quote, Profile, Research, Stock Buzz) may attract a major investor lifted financial stocks while a plunge in oil prices soothed worries about inflation and consumer spending.

The rally helped the broader market erase most of the losses suffered in recent days, leaving the Dow and the S&P 500 only a touch below where they were when the week began.

Shares of Lehman Brothers Holdings Inc (LEH.N: Quote, Profile, Research, Stock Buzz) ended up 5 percent after the Korea Development Bank [KDB.UL] said the U.S. brokerage was a possible acquisition target.For details, see [ID:nSEO332057]. At one point, Lehman's stock was up more than 15 percent.

Lehman is among the U.S. banks whose business has been battered by mounting losses sparked by the U.S. housing slump. Lehman's stock has lost nearly 80 percent of its value this year and the investment bank has taken $7 billion in write-downs. Earlier this week, several brokerages forecast more write-downs to come. Continued...
-----------------------------------------
Oil falls 5.4 percent in biggest drop since 2004

Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.
A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.

The slide adds to a more than 20 percent fall in the price of crude since mid-July and could increase the chance oil cartel OPEC will cut official production limits when the group meets in Vienna on September 9.

U.S. crude fell $6.59, or 5.4 percent, to settle at $114.59 a barrel -- the biggest fall in percentage terms since December 27, 2004. London Brent crude fell $6.24 to $113.92 a barrel.

"People who were buying yesterday are taking profits today," said Peter Beutel, analyst at consultancy Cameron Hanover. "There is also renewed technical selling and talk again of demand destruction. The dollar is strong again too."

The declines Friday were encouraged by two reports -- one showing an uptick in OPEC crude oil output and another showing an expected decline in U.S. travel over the September 1 Labor Day holiday weekend as high fuel prices hit consumers.

Industry consultant Petrologistics said on Friday OPEC oil output was expected to rise in August by 450,000 barrels per day, to 32.95 million bpd, a factor that could further beef up inventory levels in consumer nations.

Meanwhile, the U.S. auto and travel group AAA said that Labor Day holiday travel was expected to fall this year by the largest amount in at least eight years as consumers struggle with higher gasoline prices and airfares. Continued...


Source: Reuters.com.

The world's richest college dropouts

The world's richest college dropouts -I

Billionaire college dropouts!
August 20, 2008

There are many college and school dropouts who have amassed a huge amount wealth. But good education is never a waste of time, because there are millions of dropouts, but only a few of them go on to become billionaires.

The billionaire college dropouts list shows that a combination of qualities like vision, determination, hard work, business acumen, ability to spot an opportunity and turn it into a winning venture, leadership and motivational skills, etc is more important than a college degree.
Here are some college dropouts who went on to become billionaires. . .

Dhirubhai Ambani

Dhirajlal Hirachand Ambani (1932-2002) was born into a modest family of a schoolteacher. When he was 16, he dropped out of school and went to Aden to work as a gas-station attendant and then later as a clerk in an oil company.

He returned to India 10 years later and started a business with a meagre capital. By the time of his demise, his company -- Reliance Industries Ltd -- had grown into a mammoth business empire! He was one of India's greatest ever entrepreneurs.

Dhirubhai is credited with having single-handedly breathed life into the Indian stock markets and bringing in thousands of investors to the bourses. In the process he became one of the world's richest men.

His modern way of thinking brought into play his second achievement: the idea that Indian manufacturing could and should be world class.

His sons, Mukesh and Anil are among the top 10 richest persons in the world, each of them worth over $40 billion..

For more :
http://specials.rediff.com/money/2008/aug/20sl1.htm - I
http://specials.rediff.com/money/2008/aug/21sl1.htm - II

Source: Rediff.com

Sensex gains 158 pts as blue chips bounce back:Sify, India

Sensex gains 158 pts as blue chips bounce back

The market shrugged off a rise in inflation, crude oil prices, weak Asian bourses and a highly negative start and closed with sharp gains today.

There were several volatile spells during the day but in the end, it was a buoyant close for the benchmark indices Sensex and Nifty thanks to sustained buying in metal, bank, FMCG, oil and auto stocks in afternoon trade.

Power, pharma and information technology stocks also broke free from their lower levels and rallied higher. Capital goods, PSU and realty stocks ended well off their intra-day lows thanks to renewed buying support.

While the Sensex, which rose to a high of 14,428.52 today, ended at 14,401.49 with a gain of 157.76 points or 1.11%, the Nifty closed at 4327.45, slightly off its intra-day high of 4337, with a gain of 43.60 points or 1.02%.

Earlier, in morning trade, the Sensex and Nifty had tumbled to 14,136.86 and 4248 respectively following a weak start.

Even as several large cap stocks marched on to higher levels this afternoon, the mood remained highly subdued with regard to stocks from midcap and smallcap segments. As a result, the market breadth was weak when trade ended today.

Out of a total of 2725 stocks traded on BSE, 1212 stocks closed with gains. 1411 stocks posted losses and 102 stocks ended flat.

Sterlite Industries and Hindalco ended stronger by over 4.25%. Hindustan Unilever moved up by 3.75%. HDFC gained 3.25%. BHEL, Tata Power, Reliance Infrastructure, HDFC Bank and Maruti Suzuki surged 2% - 3%.

Reliance Communications, Infosys Technologies, Ranbaxy Laboratories, Tata Motors, ACC, Mahindra & Mahindra and Reliance Industries advanced by 1.5% - 2%.

Bharti Airtel, Tata Steel, ONGC, Jaiprakash Associates and DLF posted modest gains. State Bank of India and ICICI Bank gained marginally. Tata Consultancy Services closed flat.
SAIL, Reliance Petroleum, Nalco, Cairn India, Tata Communications and Zee Entertainment ended with sharp gains. BPCL, Dr. Reddy's Laboratories and Power Grid Corporation finished with sharp losses.

Satyam Computer Services ended 3.15% down. Grasim Industries and NTPC also closed with sharp losses. Wipro eased by 0.9%. Larsen & Toubro and ITC declined by 0.85% and 0.3% respectively.

-----------------------------------------
Other articles:
Closing Bell
Anil Ambani ready to talk peace, meet big brother Mukesh
Short covering in stock futures
Equities bounce back; oil & gas, metals lead
Tata threatens to move Nano out of Singur
Coal India may soon become a 'Navratna'

'No gas deal between NTPC & RIL'
All GSM cos to connect with RCOM's network
Product Review: Apple iPhone
Anil ready to meet Mukesh any time
Ask mother to help settle gas dispute, court tells Ambanis

Source: BL,BS,ET,Sify.

Top Headlines

Headlines

Rupee strengthens; gold remains flat at Rs 11,910
Woods, Nishita Shah among Forbes' next-gen billionaires list
Two young Indian CEOs make $15.7 mn between them
GSM cos to link with RCom's network
Govt nod to IPTV policy for roll out

$1.49 bn committed in NELP-VII
FDI cap in DTH may rise to 74%
Fertiliser cos to get Rs 53k cr
Nifty below 4,300, Sensex 400 pts down
RComm to launch IPTV by December

Govt clears IPTV policy
ONGC Videsh gets ok for Imperial Energy bid
China's ICBC becomes world's most profitable bank
RIL mulling JV with Petrobras
RPL refinery to begin production in Sept

NSE set to launch currency futures on August 29
Videocon to go ahead with LCD plant in Maharashtra
Exide to expand capacity; enter new overseas markets
Punj Lloyd reported a robust net profit growth
Nagarjuna Constructions gets orders of Rs 474 crores

RIL misused trustee position: RNRL
India may get exemption at the NSG: Experts
Infotech Ent enters O&G space
Lupin eyeing Australian generic co stake
RIL-RNRL case hearing delay may hit RIL
RNRL shifts stance, ready to trade gas for 3 yrs

Source:ET,MC,BS

Sensex plummets 435 pts as bears strike; Inflation at 12.63

Sensex plummets 435 pts as bears strike

After a weak start this morning, the market kept losing ground as the session progressed as the bears, who had taken a breather yesterday, swung back into action once again.
Stockometer Top gainers Worst losers
With global markets turning weak and crude oil prices inching higher, investors were in no mood to build up positions this morning. Fears of interest rates hardening further on the back of high inflation and lower growth appeared to have weighed in significantly in afternoon trade.

While the Sensex, which tanked to a low of 14,201.18 in late afternoon trade, ended with a loss of 434.50 points or 2.96% at 14,243.73, the Nifty closed lower by 131.90 points or 2.99% at 4283.85, a few points off a low of 4271.30.

Interest rate sensitive bank and realty stocks took a severe hammering. Mirroring the sell-off in these sectors, the Bankex and Realty indices tumbled by 5.16% and 5.05% respectively.
PSU, power, capital goods, metal, media & communications and information technology stocks too declined sharply. Reflecting their fall, the respective sectoral indices drifted down by 2% - 3.75% today. The Oil & Gas barometer slipped by 1.94%. HC and Auto indices lost around 1.5% each while the Consumer Durables and FMCG indices eased by around a per cent.

Midcap and smallcap stocks also attracted heavy selling and mirroring their decline, the BSE Midcap and Smallcap indices lost 2.04% and 1.83% respectively.

The market breadth was very weak today. Out of 2713 stocks traded on BSE, 1914 stocks finished on a negative note. 734 stocks posted gains and 65 stocks ended flat. Ranbaxy Laboratories (up 1.55% to Rs 513.40) was the lone gainer from the Sensex pack. Among Nifty stocks, besides Ranbaxy Laboratories, Cairn India (1.8%) and ABB (0.15%) were the ones to end on a positive note.

State Bank of India closed with a big loss of 7.1%. HDFC Bank and ICICI Bank, the other banking sector heavyweights in the Sensex, went down by 5.8% and 5.15% respectively.

NTPC, DLF, Reliance Infrastructure, Jaiprakash Associates and HDFC lost 4% - 6%. Reliance Communications, BHEL, Hindalco, Larsen & Toubro, Grasim Industries, ACC, Wipro, Hindustan Unilever, Tata Consultancy Services, Tata Steel, ONGC and Infosys Technologies eased by 2% - 4%.

Bharti Airtel, Mahindra & Mahindra, Reliance Industries, Sterlite Industries, Tata Motors, Maruti Suzuki and Satyam Computer Services also closed on a weak note. Nalco, Unitech, BPCL, Tata Communications, Suzlon Energy, Sun Pharmaceuticals, Punjab National Bank, Ambuja Cements, HCL Technologies, SAIL, Reliance Petroleum and Idea Cellular ended sharply lower.

-------------------------------
Inflation rate rises to 12.63%

India's annual rate of inflation zoomed to a 16-year high of 12.63 percent for the week ended Aug 9, as compared to 12.44 percent the week before, but an unfazed finance ministry said prices had stabilised.

"Prices of essential commodities, which include food grain, pulses, edible oil, vegetable, dairy products and some other products including kerosene, soap and safety matches have more or less stabilised," the finance ministry said in a statement.

The official wholesale price index (WPI) released by the ministry of commerce and industry Thursday showed an increase of 0.3 percent in the index for food article, while that of textile group rose 1.6 percent.

Non-metallic index products rose 0.3 percent.

The increase in index for food articles was due to higher prices of masoor dal (3 percent), tea, moong and gram (2 percent each) and milk (1 percent).The index for manufactured products like mustard oil rose 0.2 percent while that of rubber and plastic products by 0.2 percent.

The index for non-food articles group like sunflower, raw rubber and cotton declined by 0.6 percent and the index for chemical and chemical products like benzene declined by 0.1 percent.
The ministry said the WPI for all commodities stood at 236.9 as compared to 236.1 (provisional) for the week ended June 14 and annual rate of inflation based on final index, calculated on point-to-point basis, stood at 11.8 percent as compared to 11.42 percent (provisional).

The finance ministry in a statement said inflation rate for 30 essential commodities stood at 6.74 percent for the week ending Aug 9, compared to 6.54 percent for the week before.

Double digit inflation to continue till December: D&B
Earlier Thursday, Planning Commission Deputy Chairman Montek Singh Ahluwalia said the problem of inflation was short term and would moderate in due course, as the government has taken several monetary and administrative measures to rein in inflation.
"Inflation will moderate. Let's have patience," Ahluwalia said.
Ahluwalia also brushed aside apprehensions that the government's recent decision to hike employees' salaries would have any adverse impact on the country's economy.

Inflation or terms of trade adjustment?
"We will be able to deal with any implications (arising out of the salary hike)," he said.
The Prime minister's Economic Advisory Council (EAC), in its "Economic Outlook Report 2008-09", has predicted a 7.7 percent economic growth in the current fiscal, as compared to 9.1 percent last fiscal.

More India business stories
Former Reserve Bank of India (RBI) governor C. Rangarajan, while releasing the EAC's economic outlook report here Aug 13, said inflation would moderate to 8-9 percent by March 2009.

New FnO Lot sizes of 39 stks from Aug 21

NSE/FAOP/11155
Introduction of futures and options contracts on 39 additional individual securities

Introduction of futures and options contracts on 39 additional individual securities

In continuation to our circular NSE/F&O/081/2008 dated August 12, 2008 members are requested to note that the market lot for the additional 39 securities, available for trading in F & O segment with effect from August 21, 2008, will be as follows:

S. No Name Symbol Lot Size
1 ABG SHIPYARD LIMITED
ABGSHIP 550
2 AKRUTI CITY LIMITED
AKRUTI 300
3 ASIAN PAINTS LIMITED
ASIANPAINT 200
4 BALAJI TELEFILMS LTD.
BALAJITELE 1250
5 CONTAINER CORPORATION OF INDIA LIMITED
CONCOR 250
6 CORE PROJECTS AND TECHNOLOGIES LIMITED
COREPROTEC 750
7 DECCAN CHRONICLE HOLDINGS LTD.
DCHL 1700
8 DISH TV INDIA LIMITED
DISHTV 5150
9 EVERONN SYSTEMS INDIA LIMITED
EVERONN 400
10 FIRSTSOURCE SOLUTIONS LIMITED
FSL 4750
11GUJARAT STATE PETRONET LIMITED
GSPL 3050
12 GTL INFRASTRUCTURE LIMITED
GTLINFRA 4850
13 GVK POWER & INFRASTRUCTURE LIMITED
GVKPIL 4750
14 HCL INFOSYSTEMS LTD
HCL-INSYS 1700
15 INDIABULLS REAL ESTATE LIMITED
IBREALEST 650
16 ICSA (INDIA) LIMITED
ICSA 600
17 KLG SYSTEL LTD.
KLGSYSTEL 500
18 K S OILS LIMITED
KSOILS 2950
19 MIC ELECTRONICS LIMITED
MIC 1400
20 MINDTREE LIMITED
MINDTREE 600
21 MERCATOR LINES LIMITED
MLL 2450
22 MONNET ISPAT LTD
MONNETISPA 450
23 MRF LTD.
MRF 100
24 NAVA BHARAT VENTURES LIMITED
NBVENTURES 800
25 NOIDA TOLL BRIDGE COMPANY LTD
NOIDATOLL 4100
26 OPTO CIRCUITS (INDIA) LIMITED
OPTOCIRCUI 600
27 ORBIT CORPORATION LIMITED
ORBITCORP 750
28 PRISM CEMENT LIMITED
PRISMCEM 5550
29 PTC INDIA LIMITED
PTC 2350
30 RELIANCE INDUSTRIAL INFRASTRUCTURE LIMITED
RIIL 200
31 SINTEX INDUSTRIES LTD.
SINTEX 700
32 SREI INFRASTRUCTURE FINANCE LIMITED
SREINTFIN 1750
33 THERMAX LTD
THERMAX 450
34 TORRENT POWER LIMITED
TORNTPOWER 1700
35 TELEVISION EIGHTEEN INDIA LTD.
TV-18 850
36 UCO BANK
UCOBANK 5000
37 UTV SOFTWARE COMMUNICATIONS LIMITED
UTVSOF 300
38 VOLTAMP TRANSFORMERS LIMITED
VOLTAMP 250
39 WALCHANDNAGAR INDUSTRIES LTD
WALCHANNAG 700

As specified earlier through circular no. NSE/F&O/12/2003 dated April 21, 2003, regarding the introduction of option contracts on individual securities, the closing price of the securities in the underlying market shall be rounded off by the applicable strike interval multiplier to derive the at-the-money strike price. Three In-the-money and Three Out-of-the-money strike prices shall be introduced based on the At-the-money strike for both put and call options.

The new contracts will be available for trading from August 21, 2008. Members are advised to take the latest contract.gz, security.gz and fo_participant.gz files from NSE EXTRANET, directory:/faoftp/faocommon before start of trading on August 21, 2008. A detailed list of new contracts being introduced for trading (file name: CONTRACT20082008.CSV) will be available on the path faoftp/faocommon/contracts on August 20, 2008 after market hours.

For any clarification members are requested to contact following officials
Shalini Rebeiro, Sachin Dhar and Janardhan Gujaran on 022-26598151, 022-26598152


Source:NSEINDIA.com

RIL may be allowed to sell diesel in domestic market

RIL may be allowed to sell diesel in domestic market

New Delhi, Aug. 19 With the diesel demand showing an 18-per cent growth and oil companies depending on imports to bridge the gap, the Government is considering changes in tax norms to allow refineries in export-oriented units such as Reliance Industries Ltd (RIL) to feed the domestic market.

It is also mulling a differential pricing for power and other industrial consumers of the fuel.
After a review meeting with the chiefs of PSU oil companies here on Tuesday, the Petroleum Minister, Mr Murli Deora, said that a consistent, long-term pricing policy for diesel is required – one which would balance social concerns with business realities. The Ministry was seeking changes in tax rules to allow EOU refineries to supply petroleum products to PSU refiners.

Mr Sarthak Behuria, Chairman, Indian Oil Corporation Ltd, told news persons that “We have written to Directorate General of Foreign Trade (DGFT) and the Commerce Ministry in this regard, and if the Finance Ministry also approves it, we will be able to buy diesel from Reliance as is the case with LPG.”

An EOU refinery will have to pay both customs and excise duty for selling the products in the domestic market. The excise duty comprises two components - ad valorem and specific. Currently, the EOU will have to face double taxation in specific.

In addition, the company will have to pay income-tax on its profits when it sells fuel in the domestic tariff area (DTA). “It is being examined if domestic sales by Reliance in the DTA can be given a ‘deemed export status’ and it continues to get income-tax waiver,” he said. RIL already enjoys a deemed export status for selling LPG to the PSUs.

Surge in demand
Mr Behuria said that industrial use of subsidised diesel was pushing up demand and forcing the refiners to increase imports. The output by Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation together in 2008-09 was estimated at 39.49 million tonne, with the demand being at 54.79 m.t.While transport and agriculture demand for diesel had grown by 10-12 per cent, consumption by power producers and other industries had risen 30 per cent.

------------------------------------------
RIL may get export perks for diesel sales

Aiming to meet the shortfall of diesel, which has witnessed exponential demand growth, the government is considering a proposal to declare Reliance Industries' sales of the fuel domestically as deemed exports.

State-owned oil marketing companies, which will import about 3.5 million tonnes of diesel this financial year —about 20 per cent more than last year — to meet higher demand growth, say it would be cheaper to buy from Reliance Industries’ refinery if it is given the deemed export status as compared with importing diesel. If granted, these public sector companies will not have to pay transportation charges and taxes such as customs duty.

“The gap between domestic diesel production and demand can be made good by the private sector refineries,” said Sarthak Behuria, chairman and managing director of Indian Oil Corporation (IOC), the largest oil marketing and crude oil refining company in the country. Demand for diesel grew by 18 per cent between April-July as against government-owned refineries, which can meet about 12 per cent growth in demand, Behuria said.

ON DEMAND
The government is considering a proposal to declare RIL's sales of diesel domestically as deemed exports
The government move comes against the backdrop of exponential diesel demand growth
State-owned oil marketing companies were planning to import about 3.5 million tonne of diesel this financial year
It was about 20 per cent more than last year
The firms say the gap between domestic diesel production and demand can be made good by the private sector refineries

Oil marketing companies, including Bharat Petroleum Corporation and Hindustan Petroleum Corporation, will soon send a formal proposal to the government on removing taxes on domestic diesel sales from RIL’s refinery.
Early last year, RIL’s 33 million-tonne-per-annum refinery at Jamnagar, Gujarat, was granted export-oriented status, which allows the refinery to export products at zero duty. The refinery, which produces about 12 million tonne of diesel every year, will have to pay customs as well as excise duty on the fuel if it sells it in the domestic markets. The two taxes will raise the price of the fuel by more than Rs 9 a litre.
Coupled with the absence of transportation costs and insurance, the price at which the marketing companies buy from the Reliance refinery could be at least 30 per cent cheaper than the imported fuel.
The Reliance refinery already sells cooking gas in the domestic market after the product was given deemed export status last year.

---------------------------------------------
Sensex cuts losses, ends down 102pts; ACC sheds 6%
Biyani's Future Group clocks Rs 105-cr sales in just one day
RBI to review road map of foreign banks in India
Govt pulls up oil firms, orders clearing of LPG waitlist
Reliance Big TV targets 40% share of DTH pie
L&T close to picking equity in Australian, Indonesian coal mines

Storage level in major reservoirs improves
Indiabulls set to sell 35% stake in comex
GMR Energy aims to raise Rs 2,600 cr from stake sale
iPhone to cost Rs 31,000 to Rs 36,000 in India
Govt mulls dual price for diesel
Balaji promoters to buy back Star`s stake


Source:BS,BL

Stocks Analysis from Deadpresident

Deadpresident Blog updates:

Hindalco
Technical Calls - Aug 20 2008
Reliance Communications launches BIG TV
Reliance Power
Stocks: Cheap but best avoided
Bilpower

Vishal Information Technologies Fun
Grey Market Premiums
India Telecom, India Banking, India Sugar
Havells India
Cement Sector Update
NTPC, Tata Motors, Mercator Lines, Bharat Forge, I...

India Equity Strategy
India Construction
Thermax


Source: Above blog.

Rupee hits 17-month low in volatile trading

Rupee hits 17-month low in volatile trading
Lack of participation weighs on markets

The rupee fell to its lowest in 17 months on Monday, hit by a weak stock market and some lumpy orders in a holiday-thinned market that was also factoring in some recent dollar strength. The partially convertible rupee ended at 43.59/60 per dollar, recovering slightly from a intraday low of 43.70, its lowest level since March 29, 2007. The rupee fell 1.33 percent from Thursday's close of 43.01/02, its biggest percentage fall in a year. It has fallen by 3.5 percent in the last five sessions and is down 9.6 percent in 2008. It rose more than 12 percent in 2007.

Markets were closed on Friday will shut again on Tuesday for local holidays, which meant many trading rooms were thinly staffed. Trade was volatile, with the rupee trading a 43.05-43.70 band, and traders said there was heavy dollar buying by a large manufacturing company around 43.50 per dollar. "This sharp fall looks like some stop-losses have got triggered and even offshore markets are pointing to a weaker rupee," said R N Hirve, chief dealer at Central Bank of India.

One-month offshore non-deliverable forward contracts were quoting at 43.81/86 per dollar. The dollar hit a six-month high against the euro on Monday, although its surrendered the gains later in the day. The euro has fallen nearly six percent against the dollar in two weeks on concerns of an economic slowdown. Speculation the central bank may step in to stop the rupee's fall proved unfounded.

"There was some talk it may intervene around the 43.50 per dollar, but once that level broke conclusively, it fell like a stone," said a dealer at a state-run bank. Data on Thursday showed the central bank sold $7 billion in intervention in June, the biggest single-month dollar sales since it began publishing the data in April 1995. A weak finish on the stock market also weighed on sentiment. The benchmark index ended down 0.5 percent, a fourth successive fall, and is down 28 percent for the year. Foreigners sold about $250 million of stocks last week, taking their net sales for the year to $6.8 billion. They bought a record $17.4 billion in 2007.


Source: Economic Times.com

Top Headlines Today

Headlines

Bharti Airtel crosses 75 mn subscriber base
TRAI turns the heat on GSM cos for not linking to RCOM
Analysts'Picks: Voltas, Corporation Bank, Sterlite Ind, India Cements, IRB Infra
Sical logistics to invest Rs 1,700 cr
PSU city gas cos oppose RIL entry

Nuclear Power short-lists 4 suppliers for reactors
The shape of Indian talent after 61 years of Independence
Reliance Big, Soros deal stuck over valuation
Maruti to open 110 new driving schools; 10 research institutes
L&T eyes 25 pc revenue from international business

India Inc's investment plans rise to $244 bn
India Inc's investment plans surge to Rs 10 trillion: Assocham
India is among "big brothers" of WTO: Pascal Lamy
'Indian stocks only positive performer among BRIC in Aug'
Gold may slip below Rs 10,500 by end of Sept

`Institutions will have to pay 100% for IPOs soon`
250 sugar mills under scanner for holding back stocks
For 17,500 right people, ICICI scans 7.5 lakh resumes: Kamath
India expects exemption from NSG without any change to draft
Oil rises to $114 on storm threat

Source: ET,BL.BS,UTVi.