Veerappa Moily asks FinMin to cut duties on branded petrol, diesel

 
Oil Minister M Veerappa Moily has asked the Finance Ministry to cut duties on branded petrol and diesel that offer better mileage and help cut fuel consumption.

Currently, the finance ministry levies higher excise duty on premium or branded petrol and diesel, making them costlier than normal or unbranded auto fuel.

Ever since their introduction in 2002, sale of premium or branded fuels have dwindled from a peak of 5.9 million kilolitres of diesel and 3.4 million kl of petrol in 2007-08 to a mere 0.45 kl of diesel and 0.09 kl of petrol in 2012-13.

"To enhance the fuel efficiency of new generation vehicles, specialised products (branded petrol and diesel) were launched by oil marketing companies in line with global trends and in keeping with the technological advancement in the automobile industry," the Oil Ministry said in a statement issued on completion of one-month of fuel conservation drive.

Moily has "requested the Ministry of Finance to review the duties levied on branded fuels to bring down the price differential so that consumers opt for branded fuel and this will help improve the fuel efficiency (by about 2 per cent) resulting in reduction in overall demand for petroleum products," the statement added.

The Finance Ministry had in 2009 Budget introduced new duties on branded fuels, which raised the differential between regular and branded fuel. "Due to this, sales of branded fuels have started sliding," the oil ministry's statement said.

Currently, the government levies an excise duty of Rs 1.20 per litre on normal or unbranded petrol while the same on branded petrol is Rs 7.50. Similarly, unbranded diesel attracts an excise duty of Rs 1.46 per litre while Rs 3.75 duty is levied on branded diesel.

While a litre of regular/normal or unbranded petrol costs Rs 72.45 in Delhi, branded petrol is priced at Rs 81.88. Similarly, normal diesel in Delhi costs Rs 52.54 a litre while branded diesel is priced at Rs 67.93.

Also, in September 2012, the government stopped providing subsidy on branded fuel, resulting in further dip in sales.

The current unbranded or normal diesel price of Rs 52.54 a litre includes a subsidy of Rs 9.20.

Moily says the reduction in excise duty by Rs 6.30 per litre on petrol and Rs 2.29 on diesel would not impact government revenues as current sale of branded fuels was "meager". But it would help in conservation as these fuels provide improved engine performance to yield 2 per cent savings in consumption.

Branded petrol and diesel is priced at a premium to regular fuel as additives put in them remove harmful deposits from engines, prevent corrosion, reduce emissions and lower maintenance costs.

Global central banks unlikely to fight dollar: Poll

London: Global central banks are unlikely to take steps to make their currencies more competitive against the US dollar whose current weakness should prove to be temporary, a Reuters poll found.

The monthly survey of more than 60 foreign exchange analysts and economists showed the euro - which soared above USD 1.38 before shock low inflation data last week - will ease gradually over the next 12 months from here.

That view reflects expectations the US Federal Reserve will start cutting its monthly bond purchase stimulus early next year, probably by March.

After the Fed surprised markets by refraining from doing that this September, major global currencies have strengthened against the dollar. That has caused problems for export-reliant countries, both in Europe and emerging markets.

Still, 28 out of 35 analysts who answered an extra question said the dollar`s weakness would not push world central banks to ease policy to help regain a competitive edge against the greenback.

"(That`s) unlikely, because Fed tapering is inevitable and thus most emerging market currencies will be vulnerable over the medium term," said Barclays analyst Mike Keenan.

But the dollar probably won`t rally soon. The poll showed the dollar index relative to a basket of major currencies closing the year at 81, compared with 80.5 on Wednesday.

Into next year, that should change.

For one thing, the euro`s strength will gradually dissipate next year. That will be at least some relief for the European Central Bank, which meets on Thursday to set policy and is under pressure to act against very weak inflation and boost fragile growth.

The poll`s median outlook showed the euro - which was trading around USD 1.35 on Wednesday - holding around that level in a month`s time, before slipping to USD 1.33 in three months, USD 1.30 in six and USD 1.27 in a year from now.

"We expect a near-term euro appreciation against the dollar given the likely continued U.S. fiscal uncertainties, followed by retrenchment in 2014 as the focus returns to growth and interest rate differentials," said Ric Deverell, head of global foreign exchange at Credit Suisse.

Against sterling, the euro looks set to keep its value for the most part, holding at 84 pence on Wednesday and forecast at 83 pence in a year`s time.

SBI raises lending rates by 0.20%, Axis Bank revises FD rates

New Delhi: Days after RBI hiked policy rate, country's largest lender State Bank of India (SBI) on Wednesday raised its lending rate by 0.20 percent to 10 percent, a move that is likely to be followed by other banks.

The bank has revised the base rate or the minimum lending rate to 10 percent from 9.80 percent effective Thursday, SBI said in a statement.

With the revision in base rate, EMI for home, auto and consumer durable loans will go up. However, the bank is offering new loans at concessional rates for a limited period ending January 31, 2014.

At the same time, the Benchmark Prime Lending Rate (BPLR) was also raised by 0.20 percent from 14.55 percent to 14.75 percent.

Private sector lender, Axis Bank has also revised the interest rates on select maturities for fixed deposits amount less than Rs 1 crore. In two buckets there has been upward revision of 0.25 percent while there is downward revision of 0.25 percent in 9 buckets.

Term deposit between 13 to less than 15 months now attracts 8.75 percent, up by 0.25 percent.

At the same time, there has been 0.25 percent decrease in various buckets between 61 days to less than six months to 8.25 percent.

Similarly, various buckets between 6 months to less than 11 months the decrease is by similar percentage points to 8.5 percent.

In case of term deposit between 46-60 days, rates have been revised downward by 0.5 percent from 8.5 percent earlier.

The new rates are effective from November 1, according to Axis Bank website.

SBI's decision came a day after HDFC Bank raised the base rate by 0.20 percent to 10 percent.

Commenting on the base rate increase, SBI Chairperson Arundhati Bhattacharya said it is on account of the rise in cost of funds.

Repo rate has gone up by 0.50 percent since SBI had last raised it, she said, adding, the bank has not raised rates to that extent but by only 0.20 percent.

It is in line with the market and the bank base rate still remains one of the lowest, she added.
Earlier this month, SBI raised fixed deposit rate by 0.2 percent on select maturity.

With the revision, term deposit between 180-210 days less than Rs 1 crore now earn 7 percent against 6.80 percent earlier.

Soon after RBI policy announcement on October 29, Bhattacharya had said: "This is something which the ALCO (asset liability committee) will come to a view on. But yes, some rate change is expected...Which way and what, you need to wait till the ALCO meets and takes a view on it."

RBI raised short-term lending (repo) rate by 0.25 percent to 7.75 percent, making cost of fund expensive for the banks.

At the same time, the RBI lowered marginal standing facility (MSF) rate by a similar margin to 8.75 percent.

Accordingly, the bank rate was reduced to 8.75 percent with immediate effect. Consequently, the reverse repo rate is adjusted upward to 6.75 percent.

The RBI has left unchanged other rates such as the cash reserve ratio at 4 percent and the mandatory holdings in government securities and other liquid assets as a solvency measure - Statutory Liquidity Ratio (SLR) - at 23 percent.

SBI had last raised base rate by 0.10 percent to 9.80 percent in September this year.

RBI permits foreign banks' subsidiary to acquire pvt banks

Mumbai: In a bid to regulate and avoid 2008- type crisis, RBI on Wednesday said foreign banks with complex structures and which do not provide adequate disclosure would have to operate in India only through wholly-owned subsidiaries (WOS).

However, it permitted WOS of overseas banks to acquire private sector banks.

The framework for setting up of WOS by foreign banks in India, released by the Reserve Bank Wednesday night, also allowed foreign banks' subsidiaries to list on local stock exchanges. The initial minimum paid-up equity capital or net worth for a WOS would be Rs 500 crore.

"Banks with complex structures, banks which do not provide adequate disclosure in their home jurisdiction, banks which are not widely held, banks from jurisdictions having legislation giving a preferential claim to depositors of home country in a winding up proceedings, etc, would be mandated entry into India only in the WOS mode," it said.

Foreign banks operating in India before August 2010 have the option to continue their operations in branch model.

The RBI further said foreign bank subsidiary will not be allowed to hold more than 74 percent, the sectoral cap for overall foreign investment, in private banks they may acquire.

"As a locally incorporated bank, the WOSs will be given near national treatment which will enable them to open branches anywhere in the country at par with Indian banks," the RBI guidelines said.

There were 43 foreign banks in India with a network of 333 branches as of March 2013. At present, foreign banks have presence in India only through branches.

The guidelines come against the backdrop of the 2008 global financial crisis, which the RBI said has shown that growing complexity and inter-connectedness of financial institutions have compromised the ability of home and host authorities to cope with the failure of big banks.

"The lessons learn during the crisis lean in favour of domestic incorporation of foreign banks," it said.

Spelling out reasons for subsidiarisation, it said this will create separete legal entities having their own capital base and local board of directors, which will help in better regulatory control.

Also, it would ensure that there is a clear delineation between the assets and liabilities of the domestic bank and those of its foreign parent and clearly provides for ring fenced capital and assets within the host country, RBI said.

Standard Chartered, the largest foreign bank by branch presence in India, has its depository shares trading on the domestic bourses, although it hasn't adopted a subsidiary route here.

Only multinational banks Standard Chartered, HSBC and Citi have more than 30 branches in the country. Although the Royal Bank of Scotland has 31 branches, it is winding down local retail operations.

The RBI's framework, aimed at safe guarding the Indian banking system, comes in the backdrop of collapse of several banks in advanced countries during 2008 global financial crisis.

"The issue of permitting WOS to enter into merger and acquisition transactions with any private sector bank in India subject to the overall investment limit of 74 percent would be considered after a review is made with regard to the extent of penetration of foreign investment in Indian banks and functioning of foreign banks (branch mode and WOS)," it said.

To provide safeguards against the possibility of the Indian banking system being dominated by foreign banks, it said, the framework has certain measures to contain their expansion if the share of foreign banks exceeds a critical size.

RBI will put a stop on further entry of new WOSs of foreign banks or capital infusion, when the capital and reserves of all foreign banks in India exceed 20 percent of the capital and reserves of the entire banking system.

Rupee down 27 paise at 61.89 against dollar in early trade

Mumbai: The rupee lost 27 paise to 61.89 against the US dollar in early trade today at the Interbank Foreign Exchange due to appreciation of the American currency against euro overseas.

Increased demand for the US dollar from importers also put pressure on the rupee.

Dealers attributed the rupee's fall to the American currency's gains against the euro overseas but a higher opening in the domestic stock market capped the fall.

The rupee had closed 12 paise higher at 61.62 a dollar in yesterday's trade on selling of the American currency by banks and exporters.

Meanwhile, the BSE benchmark Sensex rose by 48.46 points, or 0.23 per cent, at 21,023.25 in early trade today.

Goldman raises Nifty target to 6,900

Mumbai: Goldman Sachs upgrades its view on India to "marketweight", with a target for the Nifty of 6,900 points.

Goldman notes optimism over political change is trumping economic concerns, given what the bank says are expectations that the opposition Bharatiya Janata Party, led by prime minister candidate Narendra Modi, could prevail in parliamentary elections due by May 2014.

Goldman also notes that external capital account pressures have moderated for now, and cites signs of a cyclical pick-up and structural improvements in the economy.

The investment bank likely notes the earnings outlook is stabilising, while noting that retail redemption pressures could moderate, among the factors behind its upgrade.

Goldman says technology, healthcare, and energy are its top sectors.

Goldman says it likes technology stocks including HCL Technologies and Tech Mahindra , oil and energy scripts such as Reliance Industries , Bharat Petroleum Corp Ltd and Coal India Ltd , banks including Yes Bank and IndusInd Bank and select auto and cement stocks.

The U.S. bank also included some mid-cap infrastructure stocks which are trading at inexpensive valuations such as Adani Power , NHPC Ltd , Materials stocks like Grasim Industries , and industrials stocks like Container Corp of India and Adani Ports and Special Economic Zone

Mutual funds' exposure to bank stocks rises to Rs 26,800 cr

New Delhi: Cashing in on the good equity market conditions, fund managers' raised their exposure to bank stocks to more than Rs 26,800 crore in September over the preceding month.

According to the latest data available with Sebi, the mutual fund (MF) industry's investment in banking stocks stood at Rs 26,838 crore as on September 30, accounting for 15.75 percent of their total equity assets under management (AUM) of Rs 1.70 lakh crore.

In August, mutual funds' exposure to banking stocks had touched the lowest level in four years to Rs 22,744 crore. However, the investment had risen to as high as Rs 43,659 crore in December 2012.

Market participants attributed the increase in investment in banking shares to measures announced by the new Reserve Bank of India (RBI) chief Raghuram Rajan coupled with overall surge in the stock market.

Banking stocks climbed in September, after falling for four consecutive months, on value buying and a slew of measures announced by the RBI.

During September, the banking index (bankex) surged by 6.4 percent, while the 30-scrip sensitive index (Sensex) rose four percent.

Rajan, in September, had announced steps to stabilise the Indian currency and liberalise the banking system, including higher overseas borrowing limits for lenders and simpler processes for opening branches.

Mutual funds are an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets.

In 2012, there was consistent investment growth in banking stocks by the industry's equity fund managers and their exposure had risen from 17.23 percent of total AUM in January 2012 to 21.15 percent in December.

The increase in allocation of funds to banking stocks in 2012 was largely attributed to declining interest rates.

In September this year, banking was followed by software space where the mutual funds' investment stood at Rs 23,797 crore. While the consumer non durables accounted for Rs 13,921 crore, pharma stood at Rs 14,444 crore and petroleum products at Rs 9,933 crore.

Tomato prices soar to Rs 80 per kg

 
New Delhi: After onion, retail prices of tomatoes have soared up to Rs 80 per kg in the national capital on lower supplies from Madhya Pradesh and Maharashtra.

Mother Dairy, which has about 400 retail outlets in the national capital region, is selling tomatoes at Rs 64 per kg, while local vendors are charging Rs 70-80 per kg.

Last week, tomoato prices were ruling at Rs 40 per kg.

According to traders at Delhi's wholesale mandi at Azadpur, tomato prices have gone up sharply as arrivals from Himachal Pradesh have almost stopped with onset of winter, while supplies from Ratlam in Madhya Pradesh and Maharashtra are also low.

Arrival of tomatoes have declined in Delhi to 15-20 trucks against 35-40 trucks before Diwali, they added.

Onion prices have moderated to 60 per kg, down from peak of Rs 100 kg last month.

Potato, onion and tomatoes are the three most common vegetables used in every household.

As per the government data, tomato was being sold at Rs 80 per kg in Port Blair and Rs 70 in Aizwal. It was cheapest Rs 15 per kg in Bhopal. The average for 57 cities was Rs 40 per kg.

Tomato was ruling at Rs 60 per kg in Jammu, Cuttack and Rourkela and Rs 45 in Thiruvananthapuram. The data put price ruling in Delhi at Rs 48 per kg even though retail rates were as high as Rs 80 per kg.

Besides the household demand, the commodity was being sought in greater numbers by manufacturers of tomato ketchup and purees, putting pressure on the prices

Twitter IPO set to price today

 
Zee Media Bureau

New Delhi: The Twitter IPO is set to price on Wednesday, with shares to begin trading on the New York Stock Exchange on Thursday. The previous price range was $17 to $20 a share.

The new pricing would value the company at up to $13.6 billion, or about 12.5 to 13.6 times forecast 2014 revenue of $1 billion, according to eMarketer. Both Facebook and LinkedIn Corp trade at about 12 times forecast 2014 revenue.

Several equity research analysts said they expect Twitter shares to rise after they begin trading, with some setting their one-year price target as high as $52.

"We would participate within the $23-$25 range, albeit, simple math would dictate that management should price at the bottom end of the new range," BTIG's Richard Greenfield said in a note Monday after the price was raised.

Year to date, 2013 has been the strongest for IPOs since 2007 in the United States, with more than 178 companies going public, according to Thomson Reuters data. Equity markets are climbing and investor uncertainty has subsided, at least for now, over the U.S. debt ceiling crisis and political gridlock.

Shares of Container Store Group Inc doubled on their first day of trade on November 1, joining strong debuts from more than half a dozen companies, including restaurant chains Noodles & Co and Potbelly Corp and software company Benefitfocus Inc.

Twitter management has been traveling the United States over the past week, speaking with potential investors.

Google launches new commerce platform, 'Helpouts'

San Francisco: Google on Wednesday launched a new online service called "Helpouts," aiming to connect businesses and consumers to solve problems or get advice on a range of issues.

The service is similar to Google's "Hangouts" with live video for paid services in areas ranging from computer tech support to weight loss.

"What if getting help for a computer glitch, a leaky pipe, or a homework problem was as easy as clicking a button?" Google's Udi Manber said in a blog post announcing the new service.

"What if you could get someone knowledgeable to get you 'unstuck' when you really need it?"

Manber said some of the services now are "how to fix your garage door, or how to remove a computer virus; or it might be guidance completing a project, like building a deck. "

But he added that "on Wednesday is just the beginning. We're starting small and in a few categories."

The categories being offered initially include art and music, computers, cooking, education and careers, fashion and beauty, fitness and nutrition, health and home and garden.

The Helpouts range from free to USD 240 or more. Some examples include chemistry tutoring and homework, learning to play guitar, yoga instruction, French language lessons, fixing computer problems or refrigerator repair.

"With Helpouts, you can choose who you get help from based on their qualifications, their availability, their price, their ratings and reviews," Manber said

Sensex reclaims 21K level on fresh buying

Mumbai: After a brief pause yesterday, the S&P BSE benchmark Sensex reclaimed the 21K level and was quoted at 21,012.77 in late morning trade due to fresh buying on the back of persistent foreign capital inflows.

Market also got a boost after Finance Minister P Chidambaram exuded confidence that the country's current account deficit will be contained below USD 60 billion in current financial year.

Foreign institutional investors (FIIs) bought shares worth a net Rs 162.53 crore yesterday as per provisional data from the stock exchanges.

The Sensex resumed higher at 21,004.54 and hovered in a range of 21,045.38 and 20,944.50 before quoting at 21,012.77 at 1030 hrs, showing a gain of 37.98 points or 0.18 percent from its last close.

The NSE-50 share Nifty also moved up by 2.20 points or 0.04 percent to 6,255.35 at 1030 hrs.

Major gainers were TCS (1.83 percent), Wipro (1.62 percent), Cipla (1.40 percent), Sun Pharma (1.36 percent), Coal India (1.35 percent), Tata Motors (1.24 percent) and ITC (1.02 percent).

Most Asian stocks reversed intra-day losses today. Key benchmark indices in Hong Kong, Taiwan, Indonesia and Japan rose 0.07 percent to 0.47 percent while indices in Singapore and South Korea fell 0.11 percent to 0.12 percent. China's Shanghai Composite was flat

Gold prices snaps 2-day rally, slips on reduced offtake

Gold prices on Friday snapped two days of gains, falling by Rs 10 to Rs 32,400 per 10 gram in the national capital, on reduced offtake at existing higher levels amid a weak global trend.

Weak global trend, as investors weighed speculation that the US Fed will delay a reduction in stimulus against signs of reduced demand in world's biggest consumer - China, also influenced the sentiment, traders said.

Gold in Singapore, which normally sets price trend on the domestic front, fell by 0.5 per cent to $1,340.44 an ounce and silver by 1.2 per cent to $22.42 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity slipped by Rs 10 each to Rs 32,400 and Rs 32,200 per ten gram, respectively. It had gained Rs 785 in last two days.

Sovereign held steady at Rs 25,300 per piece of eight gram.

Similarly, silver ready dropped by Rs 750 to Rs 49,450 per kg and weekly-based delivery by Rs 350 to Rs 49,650 per kg. The white metal had surged by Rs 1,190 on Wednesday.

On the other hand, silver coins continued to be asked at last level of Rs 88,000 for buying and Rs 89,000 for selling of 100 pieces.

Ford CEO 'denies' comment on Microsoft top job speculations

 
Alan Mulally, the man who has led Ford Motor Co's turnaround from near financial ruin, continues to keep mum on whether he has talked to Microsoft about the CEO job at the software giant.

Ford is set to report its fifth-straight profitable year under Mulally. The No. 2 US automaker reported a $1.3 billion third-quarter net profit.

He has held the top post since 2006, when he was hired from aviation giant Boeing to rescue the company. Mulally, 68, repeated that there's no change in Ford's plan for him to stay as CEO through the end of 2014.

"We don't comment on the speculation," he said on Thursday in response to a question from The Associated Press on the company's third-quarter earnings conference call.

Mulally said nothing has changed since last November, when Ford announced that he would stay through 2014 and that veteran executive Mark Fields would take over day-to-day business as chief operating officer.

Fields ran the company's Americas operations for seven years, turning them into a profit machine. His appointment as COO is a strong indication that the board favours him to replace Mulally.

Washington-based Microsoft Corp is reportedly considering Mulally as a replacement for CEO Steve Ballmer, who intends to step down in less than a year.

Mulally on his part hasn't denied reports that tech giant is courting him. His name surfaced shortly after Ballmer said in August that he would retire. The two are friends, and Mulally still has a home in the Seattle area. Ballmer even spoke with Mulally over coffee about a wide-ranging reorganization that Microsoft announced in July.

A management expert said the Ford CEO's no-comment indicates that he has some interest in the Microsoft job.

"His non-denial denial means that he's either talking to them or that he wishes he were talking to them," said Yale University management and law professor Jonathan Macey, who has written a book on corporate governance.

Microsoft beats forecasts as Q1 profit jumps 17 per cent

Microsoft Corp cruised past Wall Street's quarterly profit and revenue forecasts, helped by strong sales of its Office and server software to businesses, sending its shares up 6 per cent after hours.

For the first quarter, the technology giant posted a 17 per cent increase in profit to $5.2 billion, or 62 cents per share, up from $4.5 billion, or 53 cents per share, in the year-ago quarter.

Revenue rose 16 per cent to $18.5 billion, helped by rising sales of its Office software.

Analysts had trimmed profit estimates for Microsoft over the past three months, concerned by the launch of an ambitious reorganisation by retiring Chief Executive Steve Ballmer and the pricey acquisition of Nokia's handset business, even as the company's core personal computer market ebbs away.

"The earnings report will positively surprise the market, especially in the context of the soft expectations going in and the dismal report last quarter," said Todd Lowenstein, a portfolio manager at fund firm HighMark Capital. "Beating on revenue and earnings handily will boost confidence that the reorganization is pivoting them in the right direction."

Technology is proving one of the most resilient sectors in an uncertain US economy, with 84 per cent of tech companies beating analysts' earnings estimates for the latest quarter.

Microsoft, the world's largest software company, is the latest tech firm to surprise investors with a powerful performance, coming the same day as Amazon.com Inc eased past average revenue forecasts.

As part of its reinvention as a "devices and services" company, Microsoft now reports under two main groups - one covering its devices and consumer business, and one its commercial business.

The commercial side was the stronger in the quarter, posting a 10 per cent increase in revenue, chiefly from selling Office and server software to businesses. The consumer and hardware group's revenue rose a more modest 4 per cent, held back by another poor quarter for the Windows system as sales of personal computers continue to decline.

According to industry research firm Gartner, PC shipments fell 8.6 per cent last quarter, confirming a worldwide trend towards tablets that has benefited Apple Inc and Google Inc but hurt traditional PC stalwarts Microsoft and Intel Corp.

PC sales have been sliding for the last 18 months, although Microsoft Chief Financial Officer Amy Hood said on Thursday that there were "signs of stabilisation".

Microsoft said nothing on Thursday about the board's search for a new CEO after Ballmer announced in August that he plans to retire within 12 months.

Its shares rose to $35.65 after hours, after closing at $33.72 on Nasdaq.

Ratan Tata meets Anand Sharma post FIPB nod for airline venture

With the FIPB giving approval to the Tata-Singapore Airlines joint venture to start a full-service carrier, Tata Group Chairman Emeritus Ratan Tata on Friday met Commerce and Industry Minister Anand Sharma.

Tata was accompanied by Singapore Airlines (SIA) CEO Goh Choon Phong and Tata SIA Airlines Chairman Prasad Menon.

While Tata declined to comment, sources in the ministry said the meeting was a courtesy call.

On Thursday, Tata along with Phong had also met Finance Minister P Chidambaram after the FIPB cleared the venture.

The Foreign Investment Promotion Board (FIPB) gave its green signal to Singapore Airlines to start a full-service airline in partnership with Tata Sons entailing an initial foreign investment of $49 million.

This is Tatas' second venture in the aviation sector after its tie-up with Malaysian carrier Air Asia in February for a low cost passenger air service.

Economic Affairs Secretary Arvind Mayaram had stated that there were no riders set for the joint venture.

While Singapore Airlines plans to invest $49 million, Tatas would be contributing remaining amount of the total planned $100 million investment in the joint venture.

The joint venture needs other government approvals before it can start operations.

To be called Tata SIA Airlines Ltd, the venture would be headquartered in Delhi.

The two had assured the government that control of their proposed venture would always remain in Indian hands, while seeking approval to offer full-service passenger airways on both domestic and international routes. Of the six directors, four would be nominated by the Tatas.

Wockhardt Q2 net dips 69 per cent to Rs 138 cr

Wockhardt has reported a 69.46 per cent decline in its consolidated net profit for the second quarter ended September 30.

The pharma major posted a consolidated net profit of Rs 138.50 crore for the quarter under review against Rs 453.55 crore in the July-September period of 2012-13.

In a filing to the Bombay Stock Exchange, Wockhardt said net sales during the second quarter stood at Rs 1,196.97 crore against Rs 1,347.44 crore in the year-ago quarter.

The company also said its Board of Directors have declared an 100 per cent interim dividend of Rs 5 per share for the financial year 2013-14.

Shares of Wockhardt closed 0.98 per cent down at Rs 455.35 on the Bombay Stock Exchange on Friday.

Deutsche Bank sees Sensex at a record 22,000 by Dec end

 
A day after the market benchmark sniffed at life-time high, German brokerage Deutsche Bank on Friday raised its year-end Sensex target to a record high of 22,000 points, saying investor pessimism earlier this year is receding amid positive developments like the good monsoons.

"We are raising our December Sensex target from 21,000 to 22,000 premised on our expectation that the pace of negative news flow over the country and excessive investor pessimism may be receding," Deutsche Bank said.

The Sensex hit an all-time high of 21,206.77 on January 1, 2008, while during intra-day on Thursday, it had scaled 21,039.42. While on January 1, 2008, the Sensex was trading at 28.12 times its PE, on Wednesday it was 18.89 times.

The bank said currency stability, lowering gold imports, rising exports and taper postponement have imparted considerable legitimacy to the government's commitment to contain CAD - the main pain-point for the economy.

In addition, the best monsoon in 15 years is expected to lay the foundation for an accelerated recovery in the rural economy which accounts for 56 per cent of total income and 64 per cent of total expenditure.

While stating it is not expecting any imminent turn in private sector investment momentum and remains cautious over near term monetary policy action, the brokerage has based its optimism on macroeconomy, likely withdrawal of extraordinary liquidity tightening measures by RBI, a synchronised global growth recovery and a US Fed that is expected to stay 'looser for longer'.

"At our target the Sensex will trade at a PE multiple of 15 times, in line with its past five trading average," the brokerage said.

The benchmark BSE Sensex fell 0.2 per cent, or 42.45 points, to end at 20,725.43 on Thursday.

On its preferred stocks/sectors, it replaced IT services which it holds as 'neutral' with banks as the biggest portfolio overweight followed by metals, citing receding concerns over tight liquidity and higher short-end interest rates.

"Our top picks include Axis Bank, Bharti Airtel, Bharat Forge, Coal India, Godrej Consumer, ITC, IndusInd Bank, Larsen & Toubro, Maruti, RIL, Tata Steel and Zee.

"We have raised banks as the top overweight in our model portfolio as we believe that excessive concerns over tight liquidity and elevated short-end rates are behind us, and fears of sharp margin compression and treasury losses have waned," it said.

However, it said the three key themes investors will be playing out will be currency stabilisation, rural demand recovery and global growth.

Stating that the overall scene is not as bad as it appeared earlier, it said following fears over the Fed taper in May and the sharp currency depreciation, investors had feared a vicious economic cycle for the country and a protracted return to normalcy.

It also noted that contrary to prevailing pessimism during the currency crisis, the Q2 earnings so far have been above street expectations, assuaging investor concerns over an accelerated earnings downgrade cycle.

Gold, silver prices zoom on seasonal demand

Gold prices surged by Rs 305 to Rs 31,930 per ten gram in the national capital on Wednesday on brisk buying by stockists and jewellers to meet the rising seasonal demand amid strong global trend.

Silver prices too zoomed by Rs 1,190 to Rs 50,200 per kg on increased offtake by industrial units and coin makers for coming festivals led by Diwali and ongoing marriage season.

Silver and gold coins, which are normally used for pooja on Diwali and gifting purpose during marriage celebrations, remained in keen demand.

Firm global trend after payrolls in the US climbed, increasing speculation the Federal Reserve will maintain monetary stimulus to boost the economy, also influenced the sentiment, traders said.

Gold in New York, which normally sets price trend on the domestic front, climbed 2 per cent to $1,342.60 an ounce, nearing the highest level since September 30. Silver also climbed 2.3 per cent to $22.79 an ounce.

On the domestic front, gold of 99.9 and 99.5 per cent purity surged by Rs 305 each to Rs 31,930 and Rs 31,730 per ten gram, respectively, while sovereign held steady at Rs 25,300 per piece of eight gram.

In a similar fashion, silver ready surged by Rs 1,190 to Rs 50,200 per kg and weekly-based delivery by Rs 700 to Rs 50,000 per kg. However, silver coins held steady at Rs 87,000 for buying and Rs 88,000 for selling of 100 pieces.

L&T Finance net up 13.7 per cent to Rs 301 crore

L&T Finance Holdings has reported a 13.7 per cent rise in consolidated net profit in the September quarter to Rs 300.7 crore, driven by a healthy growth in assets.

Loans and advances grew 28.2 per cent year-on-year to Rs 35,458.7 crore compared to Rs 33,309.9 crore.

The growth in net profit in lending businesses has been on account of improvement in margins, offset by an increase in credit cost. For the lending businesses, net interest margin for the quarter improved by 0.1 percentage point to 5.6 per cent, the company said in a statement.

Gross NPAs stood at 2.89 per cent or at Rs 992.9 crore of loan assets compared to 2.54 per cent in the June quarter or Rs 846.4 crore. Net NPAs stood at 1.93 per cent or Rs 654.6 crore of loan assets compared to 1.67 per cent or Rs 551 crore in the June quarter.

The company attributed the rise in gross NPAs to slippage of one account in the infrastructure segment.

Despite a de-growth in the investment management business industry, the average assets under management grew by 9.4 per cent to Rs 15,078.9 crore, resulting in an increase in market share from 1.6 per cent in Q1 to 1.9 per cent in Q2.

The private wealth management business continued to grow momentum with the client base crossing 1,000 and an average assets under service of Rs 3,570 crore.

MTS awaits cheaper spectrum for India expansion

 
Sistema Shyam TeleServices (SSTL), which operates under the MTS brand in India, has launched a high-speed wireless broadband service in an attempt to boost its data revenue.

The new 3GPlus service will offer speed as high as 9.8 Mbps. This is higher than the speed on third-generation (3G) networks, which peaks at 7.2 Mbps, but is lower than 4G speed.

"The margins are higher on data. So we want to be a data company," said Dmitry Shukov, CEO of MTS India.

The company has licences to operate in nine of India's 22 telecom service areas. The 3GPlus service is delivered over evolution-data optimised (EVDO) technology. It will be available over MTS dongles and MTS-branded smartphones. The service will be offered at a starting price of Rs 700 for a month, and goes up to Rs 1,498.

The company aims to increase its share of the Indian dongle market by 50 per cent. It currently has 13 per cent of the Indian dongle market by volume. However, if the nine circles where MTS is present are to be taken, it governs anything between 18 to 20 per cent, said Leonid Musatov, Chief Marketing and Sales Officer at MTS India.

CEO Shukov said the company will expand beyond the nine circles if it gets spectrum at a lower rate. When asked what should be the reserve price for spectrum, he answered: "The right price according to me is zero."

So, at what price does MTS want to go for pan-India expansion? "We have done some calculations but are not ready to talk about them," Shukov said. But he is sure he wants spectrum cheaper than what MTS paid in the last auction - Rs 2,013 crore in addition to Rs 1,626 crore it had paid in 2008.

In early October, MTS received a unified telecom licence from the government, which allows it to offer services through both Code Division Multiple Access (CDMA) and Global System for Mobile communications (GSM) technologies. However, it's not interested in providing GSM services.

"What's the point of thinking about 2G when operators are looking at next-generation [services]," Shukov said.

The company also recently received its third carrier, or tranche, of 1.25 Mhz spectrum for all its circles, taking its total spectrum availability to 3.75 Mhz. But it will still not be able to offer long-term evolution (LTE) technology for 4G services, which it intends to do.

"We need four carriers to do LTE in these circles, but we don't have contiguous spectrum," Shukov said. He, however, remains committed to achieving MTS India's break-even by the end of 2014. Shukov is also waiting for clarity on the Indian government's merger and acquisition guidelines for the telecom sector.

Is MTS looking to make an acquisition? "We are open for discussion [with other operators]," Shukov said

Microsoft says Apple apps going free not a big deal

 
This was expected, but it hasn't taken a long time coming. A day after Apple announced that its new operating system , OS X Mavericks, as well as its office suite iWork -and iLife - would be free from now on , rival Microsoft has retorted by saying that the announcement was "not a big deal".

In a post filed on Microsoft's TechNet blog Frank Shaw, Corporate Vice President of Communications at Microsoft, said both Surface tablets had Office for free. "… Making Apple's decision to build the price of their less popular and less powerful iWork into their tablets is not a very big deal."

In a very cynical note, Shaw, who filed the post from Abu Dhabi, where the Nokia World has just concluded, added: "Seems like the RDF (Reality Distortion Field) typically generated by an Apple event has extended beyond Cupertino."

"Apple announced yesterday that they were dropping their fees on their "iWork" suite of apps. Now, since iWork has never gotten much traction, and was already priced like an afterthought, it's hardly that surprising or significant a move. And it doesn't change the fact that it's much harder to get work done on a device that lacks precision input and a desktop for true side-by-side multitasking," he added in a bid to show that the Surface tablets were superior to the iPad as far as productivity is concerned.

The post does not say much on what Redmond thought about the OS going free, but Shaw went on to highlight that the Surface and Surface 2 "are less expensive than the iPad 2 and iPad Air respectively, and yet offer more storage, both onboard and in the cloud". However, the fact is that Microsoft's tablets are far from popular and not even available in countries like India.

Perched in its position of software superiority Microsoft can afford to play hardball. "So, when I see Apple drop the price of their struggling, lightweight productivity apps, I don't see a shot across our bow, I see an attempt to play catch up," added Shaw in his post.
Now, to see if Microsoft can afford to maintain the hardline for long

Nissan recalls over 188,000 SUVs worldwide to fix brakes

Nissan Motor Co is recalling more than 1,88,000 Nissan and Infiniti SUVs worldwide to fix faulty brake control software that could increase the risk of a crash.

The recall covers some Nissan Pathfinders from the 2013 and 2014 model years, as well as the 2013 Infiniti JX35 and its successor model, the 2014 QX60.

Nissan says that during light braking on rough roads, the antilock brake software could cause longer-than-expected stopping distances. The company said no crashes or injuries have been reported.

Nissan will notify owners within 60 days, and dealers will reprogramme the antilock brakes free of charge.

The recall includes nearly 1,52,000 SUVs in the US and roughly 36,000 in China, Canada, Mexico and other countries, the company said.

The Pathfinders were built between April 18, 2012 and September 20 of this year. The JX35s were built from September 15, 2011 to January 16 of this year, while the QX60s were built from January 17 to September 20 of this year.

India rupee up 57 paise to 61.08 dollar in early trade

 
The rupee opened strong and was trading 57 paise up to 61.08 against the dollar in early trade at the Interbank Foreign Exchange market on Wednesday as the greenback fell against other currencies overseas after the weak US jobs report fuelled hopes the Federal Reserve will keep its stimulus programme in place.

Besides, increased dollar selling by exporters and a higher opening in the domestic equity market also supported the rupee, forex dealers said.

The rupee had lost 13 paise to close at 61.65 against dollar in Tuesday's trade on sustained demand from importers and banks as investors awaited US jobs data.

Meanwhile, the BSE benchmark Sensex was trading over 100 points down in late morning trade on Wednesday.

NSEL scam: NK Proteins MD Nilesh Patel held

Managing Director of NK Proteins Ltd, one of the biggest defaulters of the beleaguered National Spot Exchange Ltd (NSEL), was on Tuesday arrested in connection with the bourse's Rs 5,600 crore scam, taking the total number of arrests in the case to four.

"NK Proteins' MD Nilesh Patel was on Tuesday arrested in connection with NSEL case," Additional Police Commissioner (EOW) Rajvardhan Sinha said.

NK Proteins was the first company that had borrowed Rs 350 crore from the NSEL, said another police officer adding that "now the company owes the spot exchange about Rs 850 crore to Rs 900 crore that includes the principal amount of Rs 350 crore, interest as well as other payable amount."

"Patel knew that its company would not be in a position to pay back money but still he borrowed Rs 350 crore from the spot exchange, knowing the fact that NSEL cannot lend money.

Hence, Patel, in connivance with the NSEL officials misused the investors' amount," the official added.

The company has also used the amount to expand its edible oil business and also entered into a joint venture with Adani group, the officer alleged, adding "hence the books of accounts of the joint venture have also come under scanner and investigators would surely examine the books."

NK Group and the Adani Group's agro trading arm, Adani Wilmar Ltd, had formed a 50:50 joint venture called AWN Agro Pvt Ltd, which became the largest castor oil exporting entity in India.

The EOW officials earlier arrested three accused in the case. Anjani Sinha, former head of the beleaguered bourse, was held on October 17, Amit Mukherjee, an ex-assistant vice-president of NSEL was nabbed on October 9 and the next day Jay Bahukhundi, another ex-assistant vice-president and in-charge of KYC department, was apprehended.

An FIR was registered in the case on September 30 by the EOW against the directors, including Jignesh Shah and Joseph Massey, promoters and defaulters.

All of them have been charged with cheating, forgery, breach of trust and criminal conspiracy and other offences under the Indian Penal Code. On October 1, CBI too registered a preliminary inquiry into the case.

NSEL has been facing problems in settling Rs 5,600 crore dues of 148 members/brokers, representing 13,000 investor-clients after it suspended trade on July 31 on government's direction.

NSEL defaults for 10th time, pays Rs 30 lakh against Rs 174.72 cr

Crisis-hit bourse National Spot Exchange Ltd (NSEL) defaulted for the tenth straight time on Tuesday as it could pay only Rs 30 lakh to investors against a scheduled amount of Rs 174.72 crore.

NSEL, which is engulfed in a Rs 5,600-crore payment crisis, had previously defaulted nine times. On its seventh pay-out date, the bourse was unable to make any payment as its accounts were frozen by economic offences wing (EoW) of the Mumbai police.

With Tuesday's pay-out, NSEL settled about Rs 180 crore against Rs 5,600 crore dues to 13,000 investors.

"The total amount being disbursed today in a proportionate manner is Rs 30 lakh," an NSEL spokesperson said.

According NSEL data, MSR Food Processing made a payment of Rs 5 lakh and Metkore Alloys & Industries made payment of Rs 25 lakh to the exchange.

NSEL had availed a bridge loan of Rs 177.23 crore from its promoter Financial Technologies (FTIL) to make payments on priority basis to small investors.

NSEL, promoted by Jignesh Shah-led FTIL, is facing the problem of settling Rs 5,600 crore dues to 148 members after it suspended trade on July 31 on the government direction.

The bourse plans to settle the entire dues in 30 weeks time, by paying Rs 174.72 crore for first twenty weeks followed by Rs 86.02 crore in next ten weeks.

OVL pulls out of Brazilian oilfield auction

 
ONGC Videsh Ltd, the overseas arm of state-owned Oil and Natural Gas Corp , pulled out of an auction of $184 billion oilfield in Brazil after it could not stitch an alliance to bid for the giant project.

OVL was among the 11 companies shortlisted to bid for Brazil's Libra pre-salt block, one of the world's largest offshore oil discoveries.

It however did not make a bid at the auction on Monday as it could not form a consortium with any of the other shortlisted companies, sources privy to the development said.

The auction attracted just one bid from a consortium led by Anglo-Dutch oil major Shell, France's Total and China PetroChina and its sister company Cnooc. Brazilian state-run energy company Petrobras is also part of the consortia which got the giant field at auction start price or the minimum price.

The offshore area holds between 8 billion and 12 billion barrels of recoverable oil, according to Brazil's oil regulator and Dallas-based oil certification company Degolyer & MacNaughton (D&G).

If the estimates hold up Libra, which requires an estimated $184 billion investment, has enough oil to meet China's entire oil consumption need for three years.

Production is forecast to exceed 1 million barrels a day when fully ramped up.

Sources said OVL could not have gone alone due to the huge investment required to develop the field.

Unable to find suitable consortium partners, it decided not to bid, they said.

Shell, based in The Hague, and France's Total each have 20 per cent stakes in the winning consortium, while Cnooc and CNPC have 10 per cent apiece. The remaining 60 per cent will be with Petrobras. The consortia won the 35-year concession for the Libra prospect by promising the government a minimum 41.65 per cent of profit oil, or the barrels remaining after costs.

The winning consortium will also have to pay a signing fee of 15 billion reais (USD 6.9 billion).

Located more than 50 kilometers from Brazil's southeastern coast and discovered in 2007, the pre-salt gets its name from the layer of Cretaceous-era salt formed at a time when dinosaurs still lived and which traps the crude under the Atlantic seabed.

Other firms who were shortlisted but did not bid in the auction included Repsol-Sinopec, the joint venture between the Spanish and Chinese players, Ecopetrol of Colombia, Mitsui of Japan, Galp of Portugal and Malaysia's Petronas.

Mukesh Ambani led Reliance Jio gets unified licence for 4G services

 
Reliance Industries' telecom arm Reliance Jio Infocomm has won a unified telecom licence that will enable it to offer voice telephony and high speed data services across the country.

The Department of Telecommunications on Monday approved grant of unified license to Reliance Jio, the only telecom operator to own fourth generation spectrum or radio waves, sources said.

The unified licence will enable the firm to offer both voice and high-speed data services to subscribers across all the 22 telecom circles in the country.

Reliance Jio has submitted a one-time entry fee of about Rs 1,673 crore for the licence.

MTS India, the mobile telecom service brand of Sistema Shyam TeleServices Ltd (SSTL), and Idea had previously got unified telecom licence.

Leading operators Airtel and Vodafone have however not applied.

Sources said Reliance Jio applied for Unified Licences on August 21 and stated its net worth at Rs 5,033.32 crore.

Under the unified license, the Mukesh Ambani-led Reliance Jio will be allowed to provide services as full fledged mobile operator.

RIL had last week stated that Reliance Jio, which is the only private player with Broadband Wireless Access spectrum in all the 22 telecom circles of India, plans to provide reliable fast internet connectivity and rich digital services.

The new telecom licence will pave way for Mukesh Ambani's second innings in the mobile telephony space after his first stint at Reliance Infocomm which is now known as Reliance Communications.

It was given away to his younger brother Anil Ambani led company after the two split a few years ago.

In 2003, Reliance Infocomm had flooded market with a low cost CDMA handsets bundled with a scheme that allowed consumers to make mobile phone calls at low rate of 10 paise for 15 seconds and STD calls for 40 paise a minute. The prevailing rate of STD calls at that time had ranged between Rs 2.40 to Rs 5.40 a minute.

RJIL is the only company that holds pan-India spectrum for 4G services. The company earlier held Internet Service Provider Licence which will be annulled once it is issued UL.

The company has shown intention to provide phone call service using airwaves it has and is testing the technology for the same.

Jignesh Shah to stay on MCX Board for now

 
MCX promoter Jignesh Shah has managed to retain his position on the board in a crucial meeting held in Mumbai on Tuesday.

The Multi Commodity Exchange on Tuesday appointed three new share-holder directors, namely Union Bank of India's K N Raghunathan, Corporation Bank's P Paramasivam and Bank of Baroda's Sanjay Agarwal, and two new independent directors in G Anantraman - Ex- Sebi and Pravir Vora - ICICI, CIO, sources said.

Jignesh Shah managed to convince the MCX board and will continue to stay on for now as he has sought more time to step down, they said.

The market was anticipating Shah's resignation against the backdrop of the payment crisis of Rs 5,600 crore in the group company National Spot Exchange (NSEL).

The board has accepted and supported his request till the time the market regulator Forward Markets Commission (FMC) decides on 'fit and proper status' of shah.

A fortnight ago, shah and Joseph Massey were forced to opt out from the board of the stock exchange arm of the FTIL, MCX-SX. Massey was an MD on the stock exchange. MCX MD Shreekant Javalgekar had also resigned last week.

The board appointed deputy managing director Praveen Singhal as managing director to oversee functions till new managing director is appointed, exchange sources said.

The board has appointed a five-member oversight committees with Chairperson Pravir Vora (ICICI, CIO), sources said.

The promoter of exchange Jignesh Shah and Paras Ajmera continue to remain directors on the board, sources said.

With the induction of five new directors, the strength of directors has become 12 as against a full strength of 14 members in a period of 2 months. The slew of resignations came in following the NSEL scam and the market regulator's new norms on board composition.

As per the FMC's norms, MCX board with a strength of 14 members can only have one anchor investor director.

BSE Sensex wipes off early gains, down over 100 points

 
After rising over 40 points in early trade, the BSE benchmark Sensex wiped off its inital gains and was trading over 100 points down in late morning trade on Wednesday.

At 11.09 am, Sensex was down 104.98 points at 20759.99. Similarly, Nifty was down 30.80 points at 6172.00 during the same time.

The 30-share index gained 40.13 points, or 0.19 per cent, to 20,905.10 in early trade with consumer durables, realty, metal and power sector stocks leading the recovery. The Sensex had shed 28.92 points in Monday's volatile session.

Similarly, the wide-based National Stock Exchange index Nifty moved up by 11.45 points, or 0.18 per cent, to 6,214.25.

In the Asian region, Japan's Nikkei rose 0.48 per cent, while Hong Kong's Hang Seng index gained 0.60 per cent in early trade.

The US Dow Jones Industrial Average ended 0.49 per cent higher in previous session.

Wipro shares fall over 8 pc on bourses post Q2 results

Wipro shares fell by more than 8 per cent in morning trade on Wednesday after the company reported a 28 per cent growth in its consolidated net profit for the quarter ended September 30.

The stock, however, discounted the second quarter numbers and fell 8.41 per cent on the BSE to Rs 471.55.

On the National Stock Exchange as well, the stock opened weak and slumped 6.33 per cent to Rs 482.20.

The India's third largest IT exporter announced its second quarter results after market hours on Tuesday. Wipro posted a net profit from continuing operations at Rs 1,932.1 crore for the second quarter against Rs 1,510.5 crore in the year-ago period.

Market experts said the decline in the counter was largely because the company's second quarter revenue in terms of dollars lagged behind its peer group companies.

Meanwhile, the broader market was also trading in the negative territory with the 30-share benchmark index Sensex was trading at 20,736.49 points, down 128.48 points in morning trade.

In dollar terms, Wipro's net profit stood at $309 million in the second quarter this fiscal, while consolidated revenues were at $1.76 billion during the quarter.

IT services revenue rose 20 per cent to Rs 10,068 crore in the second quarter. In dollar terms, IT revenues rose 5.9 per cent year-on-year (Y-o-Y) to $1.63 billion, whereas, sequential growth stood at 2.7 per cent.

Banks replace IT as key drivers of Indian shares

Banks are becoming the main drivers of Indian shares, with the NSE Bank index up 11.8 per cent in October as of Friday's close, compared with a 7.7 per cent gain for the broader NSE index.
That marks a second consecutive month of gains: the banking sub-index gained 6.3 per cent in September after the central bank's move to ease short-term rates offset the impact from its hike in the repo rate last month.
Analysts say gains in banking shares have also been spurred by an initial batch of earnings results in the sector showing stable margins and asset quality that met expectations.
By contrast, gains in IT shares have been slower recently. The sector had been the key driver in markets.
The NSE IT Index has gained 8.1 per cent so far this month, although the sub-index is still up 46.2 per cent for the year compared with the 13.5 per cent fall for banks.

Gold price reclaims Rs 31,000 mark on festive demand

 
Gold price spiked to near one-and-a half-month high and reclaimed the key psychological Rs 31,000 per 10/gm mark at the bullion market here today owing to heavy jewellery stockists demand supported by robust seasonal offtake.
Silver price also surged on the back of aggressive speculative as well as industrial buying.
Price of standard gold of 99.5 per cent purity climbed by Rs 165 to finish at Rs 31,130 per 10 grams from Saturday's closing level of Rs 30,965.

Pure gold of 99.9 per cent purity also spurted by a similar margin to end at Rs 31,280 per 10 grams from Rs 31,115 previously.
Silver ready (.999 fineness) jumped by Rs 700 to conclude at Rs 49,750 per kg as compared to Rs 49,050 last weekend.
Globally, the shiny metal continued its momentum on easing concerns over an imminent withdrawal of the Fed's bullion friendly quantitative-easing measures amid sliding dollar value.
Spot gold was bid higher at USD 1,320 an ounce in early European trade and silver was up at USD 22.18 an ounce. 

RJD chief Lalu Yadav, JD(U) leader Jagdish Sharma disqualified from Lok Sabha

NEW DELHI: RJD chief Lalu Prasad and JD(U) leader Jagdish Sharma were on Tuesday disqualified from Lok Sabha after being convicted in fodder scam case. Prasad is serving five years rigorous imprisonment after the special CBI court of Pravas Kumar Singh found him and 44 others guilty in the case.

Yesterday, Rashid Masood was formally disqualified after the Supreme Court struck down a provision that protects a convicted lawmaker from disqualification on the ground of pendency of appeal in higher courts.

Lalu has moved the Jharkhand High Court for bail and staying of the sentence and the Rs 25 lakh fine.

The single bench of Justice R R Prasad has asked for the lower court's records in the case.

Last week, the Attorney General G E Vahanvati had told the Lok Sabha secretariat to immediately issue the notification declaring the seats vacant. He had warned that any delay in issuing notification could mean non-compliance of a Supreme Court order.

The lower court had on September 30 found Lalu and 44 others guilty in the case pertaining to fraudulent withdrawal of Rs 37.7 crore from the Chaibasa Treasury during the RJD regime in the 1990s and pronounced varying prison sentences against them on October 3.

Eight of the convicts received bail from the CBI court on the day they were convicted.

Lalu was also facing charges in four other fodder scam cases.

Out of 53 cases lodged by the CBI in the Rs 950 crore AHD scam, popularly known as fodder scam, 45 cases ended in convictions by different CBI courts.

Manmohan Singh to hold bilateral talks with Putin today

Prime Minister Manmohan Singh will meet Russian President Vladimir Putin here on Monday for robust discussions to boost the strategic relationship between the two countries.
Singh, who arrived here yesterday in the first leg of his two-nation visit, will be also conferred with an honorary doctorate by the Moscow State Institute of International Relations (MGIMO).
Singh after his arrival at Moscow yesterday said that India and Russia share a privileged, special partnership.
India and Russia are expected to sign several agreements in various fields including atomic energy, defence cooperation, space cooperation, science and technology, trade and investment.
In a statement prior to his departure on a two-nation five day official visit to Russia and China, Dr. Singh said: "I am confident that my visit will strengthen our relations with two of our most important partners and create new strategic opportunities for India's growth, prosperity and development in a stable external environment."
Dr. Singh, who will attend the 14th India-Russian Annual Summit in Russia, said the annual summit with Russia is an important feature of special and privileged strategic partnership between both the countries.
"The annual summit with Russia, which has been held since 2000, is an important feature of our special and privileged strategic partnership. The scope of our relationship with Russia is unique, encompassing strong and growing cooperation in areas such as defence, nuclear energy, science and technology, hydrocarbons, trade and investment, and people-to-people exchanges," Dr. Singh said.
"I will convey to President Putin the importance we attach to our relations with Russia, and I will use this visit to strengthen our partnership in every possible way," he added.
Dr. Singh said that India and Russia have always had a convergence of views on global and regional issues, and we value Russia's perspective on international developments of mutual interest.
"I look forward to exchanging views with President Putin on a broad range of international developments, including the conflict and turbulence in West Asia as also closer to India, particularly in Afghanistan. I will convey to President Putin our interest in deepening our consultations and coordination on international issues," he added.
He further informed that the Moscow State Institute of International Relations has decided to confer upon him an Honorary Doctorate during his visit.
"I am honoured at this gesture, which is also testimony to the relations between our two countries," he added.
Following the visit to Russia, the Prime Minister will pay an official visit to Beijing from October 22 to 24.

Onion prices may ease in a week

Experts say onion prices, which have risen sharply in recent days, will begin softening in a week, provided it does not rain.

Retail rates in the national capital shot back up to Rs 80 a kilo, from Rs 60 earlier this month. The uptrend during the harvesting season was caused by heavy rain associated with Cyclone Phailin.

"This year, excess rains have played spoilsport," says Rajendra Sharma, General Secretary of the Azadpur Mandi Traders Association. "Excess water is an enemy of the onion. This year, harvesting has been affected in states such as Andhra Pradesh and Karnataka due to the downpour that accompanied the cyclone. Prices will come down in the next few days only if there are no rains." Arrivals from the onion-growing states of Andhra Pradesh, Gujarat, Karnataka and Maharashtra have been affected.

Sharma said wholesale prices in Delhi have gone up by Rs 10 to Rs 30-45 per kilo over the past week. High onion prices in the country drove inflation based on the wholesale price index (WPI) to a seven-month high of 6.46 per cent in September. In the same month, WPI inflation for onions stood at 322 per cent.

In markets in Maharashtra, the country's biggest onion grower, wholesale prices are hovering around Rs 50 a kilo. However, R.P. Gupta, Director at the National Horticultural Research and Development Foundation in Nashik, said it was only last year's stock that was commanding higher prices. "The old stock is almost exhausted, and the new crop from the kharif season is selling for Rs 30-40 a kilo wholesale. The harvest will only gain momentum, and the price should come down by the month-end." He added that the holding capacity of farmers has gone up with a rise in incomes and they slow down the harvest when prices come down.

India produces about 16 million tonnes of onions a year but consumes only 10 to 11 million. Higher domestic prices had led to the resumption of onion imports after a two-year gap, and onions from countries such as China, Egypt and Pakistan have found their way to Indian markets. Along with stepping up imports, efforts have also been made to discourage exports by raising the minimum export price.

Rupee down 27 paise to Rs 61.79 against dollar in early trade

Extending its Monday's losses, the rupee lost 27 paise to Rs 61.79 against the US dollar in early trade on Tuesday on the Interbank Foreign Exchange due to appreciation of the Greenback against other overseas currencies.

Dealers attributed the fall in rupee to gains made by US dollar against the euro and other overseas currencies ahead of US jobs data and a lower opening in the domestic equity market.

Increased demand for the dollar from importers and banks also put pressure on the local currency.

The rupee weakened by 25 paise to close at Rs 61.52 against the dollar in Monday's trade on persistent demand from importers and banks as the US currency strengthened overseas.

Meanwhile, the BSE benchmark Sensex fell 31.74 points, or 0.15 per cent, to 20,862.15 in early trade on Tuesday.

Reverse mortgage scheme: Tax break for senior citizens on income from house

With an aim to make the reverse mortgage facility more attractive for senior citizens, the government has decided to give tax break on installment earned by pledging his residential property.

Now it has been decided that annuity would be tax exempt, National Housing Bank Chairman and Managing Director R V Verma said.

The scheme is operated by National Housing Board and housing finance companies, banks and insurance companies.

Besides income tax benefit, he said, the installment income or annuity is expected to increase at least three times to the benefit of retired person.

According to a conservative estimate, the reverse mortgage loan market is upwards of Rs 20,000 crore.

Banks have so far sanctioned Rs 1,800 crore and disbursed Rs 800 crore under reverse mortgage loan since it's launch in 2008, he said.

The revised scheme now enables a person above the age of 60 years to avail of monthly payments from insurance company as annuity till the life time against the mortgage of his/her house while remaining the owner and occupying the house.

Earlier, the period of reverse mortgage loan was 20 years from the date of signing the agreement by the reverse mortgagor and the approved lending institution. But, now period has been extended to "the residual life time of the borrower," said a notification by the Central Board of Direct Taxes (CBDT).

As per the amendment, Life Insurance Corporation of India (LIC) and other insurer registered with the Insurance Regulatory and Development Authority (IRDA) have included as annuity sourcing institutions.

As per the scheme, on the borrower's death or on the borrower leaving the house property permanently, the loan is repaid along with accumulated interest, through sale of the house property. The borrower or heir can also repay the loan with accumulated interest and have the mortgage released without resorting to sale of the property.

CAD will reduce below $70 billion: Rangarajan

Stating that there has been improvement in the trade account, Chairman of the Economic Advisory Council to Prime Minister C Rangarajan on Tuesday said the Current Account Deficit (CAD) will go down well below $70 billion.

Pointing out that in August and September, India's exports showed a double digit growth rate, Rangarajan said at an event here that India's trade deficit in the first half of this year was $80 billion as compared to $92 billion in the previous year.
If the present trend in exports and imports continue, the overall CAD will reduce even lower than $70 billion.

Noting that the Indian rupee over the last few weeks had remained stable at around 61-62 against the US dollar, he said the rupee was well corrected for inflation differential.

Referring to the USA's indication of tapering on May 22 and the resultant fall in capital flows, he said this affected capital inflows not only to India but to all the emerging economies including Brazil as investments were moved to the USA.

However, now, there has been a change and investments flows have turned positive, he said.

Gold prices down in futures trade on weak global cues, profit-booking

Gold prices moved down by 0.11 per cent to Rs 29,496 per 10 gm in futures trade on Tuesday as participants indulged in trimming their positions, tracking a weak trend in the global market.

At the Multi Commodity Exchange, gold for delivery in February next year eased by Rs 33, or 0.11 per cent, to Rs 29,496 per 10 gm in business turnover of one lot.

Likewise, the metal for delivery in December shed Rs 11, or 0.04 per cent, to Rs 29,745 per 10 gm in 138 lots.

Market analysts said apart from a weak trend in the overseas markets, profit-booking by speculators also weighed on gold prices at futures trade.

Globally, gold traded $3.30, or 0.25 per cent, lower at $1,313.30 an ounce in Singapore on Tuesday.

BSE Sensex trades flat during pre-noon trade

The BSE benchmark index was trading flat and was down over 30 points in Tuesday's trade on selling pressure. At 12.17 pm, Sensex was down 32.51 points at 20861.38. Similarly, Nifty was down 9.35 points at 6195.60 during the same time.

Good buying was observed in IT, metal and public sector undertakings (PSU) sectors; while selling pressure was seen in fast moving consumer goods (FMCG) sector.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE), which opened at 20,863.15 points, was trading at 20,893.70 points in the early morning session, down 0.19 points or 0.00 percent from previous day's close at 20,893.89 points.

The Sensex touched a high of 20,948.91 points and a low of 20,849.78 points during trade so far.

The S&P BSE IT index gained 20,849.78 points, metal index inched up by 46.92 points and PSU index moved up by 39.65 points; however, FMCG index dipped by 12.80 points.

The wider 50-scrip Nifty of the National Stock Exchange (NSE) was also trading down by 0.30 points or 0.00 percent at 6,204.65 points.

Not much of festival season in as gold runs dry

 
In India's biggest bullion market, Mumbai's Zaveri Bazaar, gold dealers are busy -- not filling orders for customers, but busy avoiding phone calls because they don't have any gold to sell.

Battling a huge trade deficit and a weak currency, the government has taken various steps this year to make it harder and more expensive for Indians to get hold of gold, the biggest item on the country's import bill after oil.

Hardly any gold came in for two months until mid-September and industry is still feeling the pinch, especially now the festival season has started, a peak period for demand.

In the bazaar, jewellers wander around trying to get hold of a dealer who can find them gold right away , and wholesalers ask the same of banks. Retailers in half-empty showrooms try to dissuade customers from asking for immediate delivery.

"Even if someone wants 10 kg, we don't have the stock. So much so that we have stopped attending client calls," said Gautam Arora, a wholesaler, who ignored at least five phone calls during a 40-minute conversation with Reuters.

The government has set a record 10 per cent import duty on gold and imposed a rule that requires 20 percent of imports to be re-exported, meaning importers need to find a buyer who will guarantee those exports before bringing in any gold.

The complexity of the rules and sagging exports -- down 60 per cent this year -- have caused supplies for domestic use to dry up. Banks are required to supply three-quarters of the 20 percent meant for exports before delivering the 80 per cent that will be for domestic use.

Turnover at RiddiSiddhi Bullions Ltd (RSBL), the country's largest bullion dealer with 110 employees, has dropped to 20-30 kg a day from about 300 kg since the new rules kicked in.

"This is due to the government policy. I don't know what they are thinking," RSBL Director Prithviraj Kothari told Reuters from his Zaveri Bazaar office, a gold plate on his desk showing he was crowned "Bullion King of India - 2013".

"Why do I have 110 people if I don't have any consignments of gold? If they come in at 8 they say, 'Sir, I am going home early', and I say OK."

Gold is an integral part of Indian culture, given as a dowry for marriages, which tend to be timed around auspicious days that are often religious festivals.

The shortage of the metal sent Indian gold premiums to more than $100 an ounce over London prices this month when demand far exceeded supply due to the Dussehra festival, one of several connected with harvests and invoking Lakshmi, the goddess of wealth.

The related festivals of Diwali and Dhanteras fall in the first week of November.

"New imports for domestic use could start in the next 10-15 days, which could coincide with Diwali and Dhanteras. But despite new imports, the supply situation will be very tight and premiums may even go up to $150," said Bachhraj Bamalwa, director at the All India Gems and Jewellery Trade Federation.

Premiums in other parts of Asia such as Hong Kong and Singapore were stable at less than $2 an ounce.

Wholesaler Arora, who works for NIBR Bullion, said some banks had begun accepting orders for delivery in 10 days.

But the supply shortage would persist as long as the government rules remained in force, Arora said. "Banks are giving stock only to big suppliers, so smaller jewellers are suffering due to this."

One side effect of the government measure will do nothing to improve the trade figures: in the six months from April, gold jewellery exports more than halved to $3.34 billion from $8 billion in the same period a year earlier.

SHOOING AWAY CUSTOMERS
India was the world's biggest gold buyer in 2012 but could lose the top spot to China this year after the clampdown.

Demand, nevertheless, is expected to stay strong, with the World Gold Council forecasting India would need up to 1,000 tonnes for the year after 864 tonnes in 2012.

Many suppliers are turning to smuggled gold, especially as that also avoids the 10 percent import duty. As a result, even smuggled gold commands a premium of $50 an ounce above London prices, according to the Bombay Bullion Association (BBA).

"I'm not getting supplies for exports, forget about for domestic use," said Mehul Choksi, chairman of jewellery retailer Gitanjali Gems (GTGM.NS), one of the largest branded jewellery retailers in the world. "Premiums are already up and they could go up even further. Some demand is being met by supplies through unofficial channels."

"As supply is very scarce, we have moved to diamond jewellery, which uses less gold content," Choksi added.

The desperate search for gold has even prompted digging under a ruined palace after a Hindu village sage dreamt that 1,000 tonnes might be buried there.

Meanwhile, those who are waiting for official gold imports are just having to turn customers away.

"We have postponed deliveries to our clients and serve only one customer each day," said Suresh Jain, a BBA director who runs a jewellery store in Zaveri Bazaar.

Indirect tax collections up 5.1 pc in Apr-Sept

 
Indirect tax collections grew by 5.1 per cent in the April-September period of this fiscal, a finance ministry official said.

Total collection of indirect taxes - excise, customs and service tax - stood at about Rs 2,28,550 crore during the first six months of 2013-14, the official said.

Excise collection dropped 6 per cent during the period to over Rs 89,000 crore, against the same period in the last fiscal year, reflecting slump in manufacturing activity.

Customs mop up was up 10 per cent to Rs 80,550 crore during the period, the official said.

Service tax collection, which has become a new focus area for revenue officials, grew by 16 per cent to Rs 59,000 crore during the period.

In September, total indirect tax collection stood at Rs 42,700 crore, up 13 per cent from the same month last year.

Government has set indirect tax collection target of Rs 5.65 lakh crore for 2013-14, up from Rs 4.73 lakh crore in the last fiscal.

Gold price up 0.72 per cent in futures trade on Asian cues

 
Buoyed by a firm Asian trend, gold prices rose by 0.72 per cent to Rs 29,500 per 10 gram in futures trade on Monday as speculators enlarged their positions.

Besides, rising demand in the domestic spot markets for the ongoing festive and wedding season too supported the rise.

At the Multi Commodity Exchange, gold for delivery in far-month February 2014 contracts rose by Rs 210, or 0.72 per cent, to Rs 29,500 per 10 gram in business turnover of 10 lots.

Similarly, the yellow metal for delivery in December traded higher by Rs 205, or 0.70 per cent, to Rs 29,685 per 10 gram in 235 lots.

Analysts said a firming trend in the Asian trade on speculation that the US Fed would not start tapering until 2014 and rising demand in domestic spot markets mainly led to rise in gold prices in futures trade.

In the national capital, gold prices went up by Rs 150 to Rs 31,650 per 10 gram on Saturday.

Globally, gold rose by $1.60, or 0.12 per cent, to $1,319 an ounce in Singapore.

BHP Billiton gives up 9 oil & gas exploration blocks in India

Global miner BHP Billiton on Monday said it has given up nine oil and gas exploration blocks in India due to its inability to carry out exploration operations there.

The company is withdrawing from those blocks because of delays in clearances, according to local media, but BHP would not confirm the reason for its decision to relinquish its interest.

"The decision to relinquish these blocks is the result of an exploration portfolio review ... there have been regular discussions and communications over the last 12 months with the Ministry of Petroleum and Natural Gas," BHP said in a statement.

The company gave up its interest in six blocks awarded in India's NELP VII bid round, in which it held 26 per cent interest and GVK held 74 per cent interest as well as three blocks awarded in the NELP VIII bid round in which it held 100 per cent interest.

BHP Billiton will keep its 50 per cent interest in its NELP IX block, operated by BG Group.

Amid NSEL crisis, MCX-SX begins search for new CEO

 
MCX Stock Exchange (MCX-SX) has begun its search for a new managing director and CEO to head the bourse, whose group entities remain embroiled in a major crisis emanating from Rs 5,600-crore payment default at the National Spot Exchange (NSEL).

The exchange was set up by Jignesh Shah-led Financial Technologies (FTIL) group, which has also promoted NSEL and commodity bourse MCX, among others.

Earlier this month, Joseph Massey resigned as MD and CEO of India's newest exchange while Shah also had to quit from its board.

In a public announcement on Monday, MCX-SX invited application from "suitably qualified and experienced" candidates for the post of Managing Director and CEO.

It is the country's newest stock exchange and began operations in currency derivatives segment from October 2008 while it commenced operations in capital markets trading in February this year.

MCX-SX said: "The candidate must be qualified in the fields of capital market, finance or management and possessing sufficient experience in related fields for at least 15 years."

The MD and CEO would report to the board of directors and would be responsible for conduct of affairs of the exchange under the direction and supervision of the board. He/she shall also be responsible to perform various functions under the bye-laws, rules and regulations of the exchange and also to comply with various statutory and regulatory requirements, it added.

The appointment will be subject to approval of Securities and Exchange Board of India (Sebi) and the candidate shall hold office for a term of three years which could be extended, the exchange said.

The candidate's age should not be more than 50 years as on October 31, it said adding that age and experience limits may be relaxed for deserving candidates at the discretion of the selection committee.

While renewing MCX-SX's licence for another one year, capital markets regulator Sebi had in September asked the exchange to set up a panel of independent directors to oversee its operations in the wake of questions being raised about 'fit and proper' status of its promoters.

After both Shah and Massey resigned, MCX-SX had said that U Venkataraman, whole-time Director, would assist the special committee of public interest directors in carrying out the functions of the exchange.

The group has seen a string of resignations in the past few weeks at its various entities.

Last week, commodity bourse MCX managing director and chief executive officer Shreekant Javalgekar also submitted his resignation.

China Q3 economic growth quickens to 7.8% yr/yr

Beijing: China`s annual economic growth quickened to 7.8 percent between July and September from 7.5 percent in the previous three months, the fastest growth this year and in line with expectations, official data showed on Friday.

Many investors have been concerned about the fragility of China`s economic revival, especially after a surprise fall in export growth in September.

The world`s second-largest economy grew 7.7 percent in the first nine months of 2013 from a year earlier, the data from the National Bureau of Statistics showed.

Other data released alongside the gross domestic product data showed industrial output grew 10.2 percent in September from a year ago, versus expectations of 10.1 percent showed in the Reuters poll.

Retail sales in September rose 13.3 percent on a year ago versus an expected 13.5 percent.

Fixed-asset investment grew 20.2 percent in the first nine months from a year earlier, versus an expected 20.3 percent. The government only publishes cumulative investment data.

Internal migrants contribute 10% to GDP: UNESCO

New Delhi: Internal migrants, estimated to constitute about 30 percent of the population, contribute 10 percent to the country's GDP with employment having become the biggest reason behind migration, a UNESCO report has said.

The report considers internal migration as being a key factor behind prosperous cities, boosting economic activity and growth.

Citing various sources, it estimated that following Census 2011, the number of migrants may have increased to about 400 million from 309 million in 2001.

The report, however, says that most of the million-plus cities have recorded significant decline in population growth, hinting that they have become "less welcoming" to migrants.

Against the projected 400 million migrants in India, their global number was 740 million in 2009.

The report entitled 'Social Inclusion of Internal Migrants in India' says women form an overwhelming majority of migrants in the country ? 70.7 percent as per Census 2001 and 80 percent according to NSSO (2007-08) data.

It said 91.3 percent women in rural areas and 60.8 percent in urban areas were migrants, putting such high numbers down to marriage.

About 30 percent of the migrants in the country belong to the 15-29 years age group.

The report says migrants are often victims of politics based on "vote banks along ethnic, linguistic and religious lines" and face political and administrative exclusion and discrimination.

Women migrants face a double discrimination for reasons particular to their gender, it adds.

Migration, it says, is an integral part of development and the rising contribution of cities to India's GDP would not be possible without them.

"Internal migrants contribute cheap labour for manufacturing and services and, in doing so, contribute to the national GDP, but this is not recognised. Far from being a drain and burden, they are in fact providing a subsidy," the report says.

"Migrants are looked upon as outsiders by the host administration and as a burden on systems and resources. Their right to the city is denied on the political defence of the 'sons of the soil' theory which aims to create vote banks along ethnic, linguistic and religious lines," it says.

The UNESCO report has pushed for promoting positive political discourse and avoiding a prejudiced negative portrayal of internal migrants.

Though not counted as metropolitan cities, Surat, Nashik, Ludhiana, Faridabad and Pune are among the million-plus cities which house the maximum migrants with respect to their overall population, the UNESCO report says.

Migrants make up 58 percent of the population in Surat, 57 percent in Ludhiana, 55 percent in Faridabad, 50 percent in Nashik and 45 percent in Pune, according to Census 2001 data cited by the report.

They account for 43 percent of the population in Delhi as well as in Mumbai.

Calling for better legal and social protection for them, the report says internal migrants are particularly vulnerable due to low rates of education and ignorance about their rights.

The overall literacy rate, as per Census 2011, was 74.04 percent with male and female literacy being at 82.14 and 65.46 percent, respectively. However, among migrants, 57.8 percent of the females and 25.8 percent of males were illiterate.

NSSO data for 2007-08 reveals that 52 percent short- duration migrants were either illiterate or had not completed primary education.