Post Session- Profit booking drags down Sensex 25/11/2014

Post Session- Profit booking drags down Sensex
25/11/2014 16:29
The key domestic benchmarks ended lower today as the Sensex retreated by over 160 points led by losses in realty and FMCG stocks amid profit booking by investors after Dalal Street hit record highs for two straight sessions. Moreover, a SEBI crackdown on participatory notes (P-Notes), a popular investment product used by foreign investors also weighed on sentiment as the capital market regulator said that it is changing the rules for offshore derivative instruments to bring them in line with new foreign investment norms. Further, caution remained ahead of Q2 GDP numbers due to be released later in the week which may show a slowdown in economic growth, and ahead of the expiry of November F&O contracts on Thursday.

Most Asian stocks closed higher as investors continued to cheer the surprise interest rate cut by Beijing which is expected to help stem a lingering slowdown in the world’s second biggest economy. China’s Shanghai Composite surged on hopes of another interest rate cut on the back of the one undertaken last week while Hang Seng ended lower and Japan’s Nikkei 225 advanced as the Bank of Japan pledged its commitment to achieving the 2 per cent inflation target.

The BSE SENSEX closed at 28,338.05, down by 161.49 points or by 0.57 per cent, and the NSE Nifty ended at 8,463.1, down by 67.05 points or by 0.79 per cent.

Ten names shortlisted for appointment as CMDs in eight PSU banks 25/11/2014

Ten names shortlisted for appointment as CMDs in eight PSU banks
25/11/2014 00:30
A high-level search panel headed by Reserve Bank Governor Raghuram Rajan has shortlisted ten Executive Directors for the post of Chairman and Managing Director (CMD) in eight public sector banks, reported PTI. Bank of Baroda Executive Directors (ED) B B Joshi and P Srinivas, Punjab & Sind Bank's M K Jain and K K Sansi, IDBI Bank Deputy Managing Director B K Batra are among the 10 who have been shortlisted, sources said. Their names have been sent to the Finance Ministry and would be subsequently forwarded to the Appointments Committee of Cabinet (ACC) after vigilance and other necessary clearances. According to sources, eight names may get the ACC approval for appointment by the end of this month. Two names could be put on waiting list or dropped subject to certain clearances, they added. It is not clear if the lone CMD Ashwini Kumar of Dena Bank, who appeared for the interview on November 14 for lateral transfer to a bigger bank, has been shortlisted by the panel or not. Nineteen candidates appeared for eight vacant posts of CMDs in PSU banks. These 19 candidates were interviewed by three sub-panels separately. The vacant posts of CMDs are in Punjab National Bank, Bank of Baroda, Canara Bank, Indian Overseas Bank, Oriental Bank of Commerce, United Bank of India and Syndicate Bank. The post of CMD in Vijaya Bank will fall vacant next month. Earlier this month, the government had decided that all eligible candidates will have to go through sub-committees having two members. The sub-committees had three outside experts. These experts are former Managing Director of State Bank of India S Viswanathan, IIM Indore Director Rishikesha T Krishnan and former Chairperson and Managing Director of Allahabad Bank S Panse, sources said. The other three members of screening committees were Secretary and Additional Secretary in the Department of Financial Services, and an RBI Deputy Governor. The names have been shortlisted by the appointment board chaired by RBI Governor. It was based on the weighted average marks given by each sub-committee to ensure objectivity and transparency. The selection process for appointment as Chairman and Managing Director of public sector banks was changed following government scrapping the selections made by previous UPA regime. Last month, the government had cancelled selection of heads of six PSU banks and 14 executive directors made during the UPA tenure following a government-appointed panel finding irregularities in the process.

US-India told to address trade barriers 25/11/2014

US-India told to address trade barriers
25/11/2014 16:33
According to media reports, 15 major American business organisations have called on India and the US to address lingering bilateral trade barriers which may help in boosting investment relations between two of the world’s major economies. The India-US Trade Policy Forum, in which government officials from both countries will come face to face to discuss ways to boost bilateral investment, will take place on Tuesday. The forum will be co-chaired by US Trade Representative Michael Froman and Indian Commerce and Industry Minister Nirmala Sitharaman.
Top American business organisations have urged Froman to take up specific issues in the forum related with current Indian policies such as high tariffs and discriminatory forced localisation policies, burdensome requirements on information and communication technology products.
However, American business groups have given thumps up to the measures taken to resolve the stalled WTO Trade Facilitation Agreement while urging strong action on many longstanding and new trade barriers.
“For the Trade Policy Forum to be meaningful, it must ultimately lead to concrete steps to improve the environment for businesses in the US that are exporting to and operating in India,” a statement quoting US business groups said.

India Inc. lacks awareness on IPR: Report 25/11/2014

India Inc. lacks awareness on IPR: Report
25/11/2014 16:32
According to media reports, a government official noted the industry’s lack of awareness on Intellectual Property Rights (IPR) which is inhibiting India Inc. in exploiting the advantages of registering and protecting trademarks internationally.
Chaitanya Prasad, Controller General of Patents, Designs and Trade Marks, DIPP, Ministry of Commerce and Industry, stressed that despite joining the Madrid System for the International Registration of Marks (Madrid System) since July 2013, Asia’s third biggest economy has failed to capitalise on its benefits.
“After joining the protocol we have had over 11,618 designations of India for foreign countries. As against that, we have received 8,397 applications to India after international registration. As against that, from India we have only 185 applications,” Prasad said.
“People from outside are taking advantage to come to India but the industry in India is not taking that advantage,” he added.
The Madrid System which is governed by two treaties, the Madrid Agreement and the Madrid Protocol, and is administered by the International Bureau of World Intellectual Property Organisation (WIPO) in Geneva, Switzerland, provides trademark (TM) owners a cost effective, user friendly and streamlined way of protecting and managing their trademark portfolio internationally.
“Despite the ease of use and less expenditure, we have only 185 applications (in one year). Out of that, 97 have already had international registrations and they will proceed to national registrations in various countries where they are designated”, he added.

No immediate plan to curb LPG subsidy: Dharmendra Pradhan 25/11/2014


No immediate plan to curb LPG subsidy: Dharmendra Pradhan
25/11/2014 11:39
The government is not planning to take away the subsidy from the Liquefied Petroleum Gas (LPG) in near term, said Union Minister of State for Petroleum and Natural Gas Dharmendra Pradhan. Pradhan, said the issue of who should get the subsidy and who should not needs to be debated, said the media report. Earlier on Friday, Union Finance Minister Arun Jaitley had stated that the government was considering removal of subsidy on the cooking gas for well-off consumers. The removal of the subsidy on LPG for better off consumers would help the government to reduce its expenditure thereby aiding it to curb the fiscal deficit.

Pre Session- Sensex set for bullish start amid firm global cues 25/11/2014

Pre Session- Sensex set for bullish start amid firm global cues
25/11/2014 08:29
The key domestic benchmarks are likely to open on a positive note tracking a firm trend in fellow Asian stocks and yet another record high closing at Wall Street amid easing concerns over the health of the global economy on central bank action in China and Europe. Asian stocks advanced as investors continued to cheer the surprise interest rate cut by Beijing which is expected to help stem a lingering slowdown in the world’s second biggest economy. China’s Shanghai Composite climbed while Hang Seng was trading tad higher and Japan’s Nikkei 225 advanced as a weaker yen boosted the appeal of exporter stocks. Back home, investor sentiment remains positive as the Winter Session of Parliament which began yesterday offers hopes that the Modi government may be successful in passing key bills to reduce red tape and bolstering FDI investment in sectors such as insurance. Some volatility may be seen in markets ahead of the expiry of the November F&O contracts on Thursday.

Top traded Volumes on NSE Nifty – State Bank of India 18631463.00, Hindalco Industries Ltd. 10540335.00, DLF Ltd. 10430203.00, Jindal Steel & Power Ltd. 7012082.00 and Sesa Sterlite Ltd. 6214657.00.

Post Session- Sensex scales past 28K on growth hopes 12/11/2014

Post Session- Sensex scales past 28K on growth hopes
12/11/2014 16:42
Dalal Street was in bullish mood today as the Sensex hit a life-time high, conquering the 28,000 mark on sustained foreign investor inflows amid hopes that the Modi government’s reform spree may bolster the country’s economic growth. The government which recently unveiled oil & gas reforms and eased FDI norms in the construction sector may push the insurance bill and Constitutional amendment bill on Goods and Services Tax (GST) during the Winter Session of Parliament beginning November 24. All eyes were on the IIP and CPI data to be released after market hours. Industrial output may have expanded 0.8 per cent in September 2014 from the year ago month, up from an annual 0.4 per cent in August 2014 while consumer inflation may have eased to 5.8 per cent in October 2014 from 6.46 per cent in September 2014.

The BSE SENSEX closed at 28,008.9, up by 98.84 points or by 0.35 per cent, and the NSE Nifty ended at 8,383.3, up by 20.65 points or by 0.25 per cent.

The BSE Sensex touched intraday high of 28,126.48 and intraday low of 27,958.64 The NSE Nifty touched intraday high of 8,415.05 and intraday low of 8,370.5.

'Make in India' concept can also drive Thailand economy: Thai PM 12/11/2014

'Make in India' concept can also drive Thailand economy: Thai PM
12/11/2014 15:28
Prime Minister Narendra Modi's strong 'Make in India' pitch today got the full support of his Thai counterpart Gen Prayut Chan-o-cha who said this concept can also be applied to drive the economy of his country.
At a bilateral meeting on the sidelines of the ASEAN-India summit, Gen Prayut also had a word of praise for India's 'Act East' policy, saying it is important for the 10-member southeast nations grouping. The 'Act East' policy seeks to deepen India's ties with the southeast nations and other East Asian countries. Bilateral trade between Indian and Thailand has multiplied eight times since 2000 to reach USD 8.68 billion in 2012. During the period of January-February, 2013, bilateral trade was USD 1.68 billion.

Nitin Gadkari proposes motor vehicle pact across SAARC countries 12/11/2014

Nitin Gadkari proposes motor vehicle pact across SAARC countries
12/11/2014 13:39
The Minister of Road Transport & Highways, Nitin Gadkari has pushed the proposal of an umbrella agreement among all nations in the region for seamless movement of passengers and cargo across borders.
“The proposed SAARC Motor Vehicle Agreement has wider scope for movement of all types of vehicles across SAARC member States and will be a path breaking endeavour”, said the Minister while addressing the Infrastructure Summit organized by the Confederation of Nepalese Industries (CNI) at Kathmandu.
According to the reports, the pact for passenger and cargo vehicles movement in SAARC countries (South Asian Association for Regional Co-operation) is expected to be signed soon.
He further ensured that the India is doing its bit to support the development of infrastructure in Nepal, particularly for connectivity and people-to-people contact.
Both the countries have agreed on adopting the SAARC Motor Vehicle Agreement, which was approved by both the technical level as well as by the Expert Group Meeting in September.
This agreement would facilitate Nepal-India bus services on reciprocal basis.
It would promote tourism and people-to-people interaction. The bus service will connect Kathmandu with Uttar Pradesh and Delhi, the statement added.

Oil price slump helps stem India inflation 12/11/2014

Oil price slump helps stem India inflation
12/11/2014 12:16
The sharp fall in oil prices and other global commodity prices has come as a much needed boon for the Indian economy which has been battling the persistent problem of high inflation, raising optimism over sooner than earlier expected monetary easing by the Reserve Bank of India (RBI).
“Whatever assumptions we made in terms of oil prices and other commodity prices, subsequently what we see now is that the prices have come off even more. So, the disinflationary process would see a bit stronger than what the last policy had done”, said RBI Executive Director Deepak Mohanty, PTI reported.
The price of Indian crude basket now stands at around USD 81 per barrel compared to USD 108.05 per barrel in May, heling to lower the government’s subsidy burden and trimming the fiscal and CAD shortfall.
At the same time, lower cost oil imports has pushed wholesale inflation to five-year low of 2.38 per cent in September 2014 while consumer inflation, the most watched gauge of the RBI retreated to 6.46 per cent in September 2014 from a revised 7.73 per cent in August 2014. More than 70 per cent of India’s oil needs are met through imports.
While the RBI is likely to resist cutting rates in its December meeting, a February rate cut is on the cards given that the central bank is on target to undershoot its 8 per cent consumer inflation target for January.

India to rebound to 6% growth in FY’16: Sinha 12/11/2014

India to rebound to 6% growth in FY’16: Sinha
12/11/2014 11:57
Against the backdrop of the Modi government’s aggressive reform spree, Asia’s third biggest economy may return to higher growth trajectory, going forward, with a six per cent growth rate very possible next fiscal. The new Minister of State for Finance Jayant Sinha sees the Indian economy expanding by 6-6.5 per cent in FY 2015-16, as he stressed that job creation and inflation management were the two major goals of his government. “We are expecting the growth to pick up and be on the accelerating trajectory. Hopefully we will cross 6-6.5 per cent next year," Mr Sinha told the PTI. Sinha expects the economy rebounding to 7-8 per cent sustainable growth in the coming years. The economy is expected to grow 5.4-5.9 per cent in the current fiscal year ending March 31, 2015, according to the Economic Survey. The Indian economy, which has grown below the 5 per cent mark in the past two fiscals, expanded at 5.7 per cent in Q1 FY 2014-15, year on year, bouncing back from a 4.7 per cent growth in FY 2013-14. Among the recent measures taken by the government include liberalisation of FDI norms in construction, defence and railways, oil & gas reforms, labour market reforms and measures to reduce rep tape and make it easier for companies to do business in the country. The government is also likely to push the insurance bill and Constitutional amendment bill on Goods and Services Tax (GST) during the Winter Session of Parliament beginning November 24.

Need to strengthen MGNREGA to empower poor: Birender Singh 12/11/2014

Need to strengthen MGNREGA to empower poor: Birender Singh
12/11/2014 11:50
According to the Union Minister for Rural Development, Birender Singh, there is a need to strengthen Mahatma Gandhi National Rural Employment Gurantee Act (MGNREGA) as the rural job scheme has led to empowerment of poor people in the villages. On assuming his ministerial charge, Singh said, "There were people in remote villages who had not seen the currency note of Rs 500. Thanks to MGNREGA, they have seen it. There will be no changes in the job scheme that would hurt the poor." The statement comes in the wake of unease among civil society members over a proposal to limit the MGNREGA to 200 backward districts. He, however, acknowledged that there were some problems in implementation of the ambitious scheme, launched by the UPA government and the present dispensation will "correct" them. "So far, the working of MNREGA is concerned, if there are lacunae, we will correct them," Singh said. Launched in 2005, MNREGA has been an important source of income for millions of rural households

Include industry bodies in PM's foreign trips: Assocham 12/11/2014

Include industry bodies in PM's foreign trips: Assocham
12/11/2014 11:07
Apex industry body Assocham has requested Prime Minister Narendra Modi to include top leaders of the country’s industry chambers as part of the official delegations in his overseas tours. Economic and business agenda invariably occupies the centre stage in the international deliberations, Assocham said in a statement. "Business chambers such as ASSOCHAM with rich history, goodwill and a reach out to lakhs of businesses and trade can provide very useful inputs for the multilateral or bilateral talks, well representing a cross section of the stakeholders," ASSOCHAM Secretary General D.S. Rawat said. “Initiatives such as Make in India would certainly need a strong endorsement from the Indian industry in the presence of global business leaders,” Rawat said. Rawat added that the inclusion of business chambers in PM's visit should be only as official delegates and they should not be included as participants on the sidelines of the central agenda.

Infosys reports 56% energy saving; Govt to start a pilot project with IT major 12/11/2014

Infosys reports 56% energy saving; Govt to start a pilot project with IT major
12/11/2014 12:15
Country’s second largest software exporter Infosys, which has its campuses across the country, has reported substantial savings in consumption of scarce electricity and water through smart and sustainable design and operational practices.
A delegation of Infosys led by Mohandas Pai on Tuesday made a detailed presentation to a group of Union Ministers including Urban Development Minister M.Venkaiah Naidu, Power Minister Piyush Goyal, Environment Minister Prakash Javadekar.
Pai informed the minsters that the innovative practices being adopted by Infosys are standardized, replicable and scalable. He said that the smart design and operational practices being followed by Infosys has resulted in substantial savings in capital costs.
The gains reported by Infosys include: a total energy saving of 56 per cent through smart building design, cost saving of Rs 9.50 cr per year on energy consumption by a building of 10 lakh sq. feet which works out to be a saving of Rs.95 per sq.ft per year.
Ministers have welcomed the experiences shared by Infosys. Urban Development Minister M.Venkaiah Naidu directed Secretary(UD) to set up a Committee with representatives of CPWD, NBCC, DDA and DMRC to hold further talks with Infosys on their experiences and report on the feasibility of taking up a Pilot Project with Infosys technologies. The report is to be submitted by the end of this month.
Naidu said, he will visit Infosys campus in Hyderabad while Piyush Goyal will visit a university campus built by Infosys in Jaipur. He said that the experiences of Infosys would be useful in the context of the government’s initiative of building smart cities

Railways’ freight revenue rises 5% during Apr-Oct 2014 12/11/2014

Railways’ freight revenue rises 5% during Apr-Oct 2014
12/11/2014 12:14
Indian Railways carried 621.66 million tonnes of revenue earning freight traffic during 1st April to 31st October 2014, according to data reveled by Ministry of Railways.
The freight carried shows an increase of 28.41 million tonnes over the freight traffic of 593.25 million tonnes actually carried during the corresponding period last year, registering an increase of 4.79 per cent, the data highlighted.
During the month of October 2014, the revenue earning freight traffic carried by Indian Railways was 89.22 million tonnes. There is an increase of 6.97 million tonnes over the actual freight traffic of 82.25 million tonnes carried by the Indian Railways during the same period last year, showing an increase of 8.47 per cent.

New FDI norms to improve builder’s liquidity, says Fitch 12/11/2014

New FDI norms to improve builder’s liquidity, says Fitch
12/11/2014 11:25
According to the rating agency Fitch, the easing of FDI rules in realty sector is likely to improve the liquidity situation of developers as well as enhance the supply, said the media report. "Relaxation of rules on foreign direct investments into India's property development sector, will improve developers' liquidity and speed-up project-turnaround times, but may also increase competition," Fitch Ratings said in a statement. On October 29, the Cabinet had relaxed FDI rules in construction sector by reducing minimum built-up area as well as capital requirement and easing the exit norms. Under new FDI norms, foreign developers have been allowed to invest in smaller property development projects - with a minimum floor area of 20,000 sq meters compared to 50,000 sq meter previously. The minimum foreign-investment threshold was also lowered to USD 5 million per project, from USD 10 million. "These moves may encourage more foreign developers to tie-up with their domestic counterparts, which will improve domestic developers' liquidity and speed up project turnaround times," it added. On the flip side, Fitch said the relaxed rules will also mean a higher supply of property projects and more price-competition among domestic developers, which will pressure profit margins.

Panel to seek cabinet approval for coal auction reserve price method 12/11/2014

Panel to seek cabinet approval for coal auction reserve price method
12/11/2014 10:56
An inter-ministerial panel is likely to seek Cabinet approval for fixing the reserve price for coal auction, said the media report. According to the report, the Cabinet met on November 11, 2014 and decided on methodology for fixing the auction start price for allotting coal blocks whose allotments were quashed by the Supreme Court in September. The apex court had quashed allotment of 204 coal blocks to various companies between 1993 and 2009. Out of these, 37 are running coal mines and another five are ready to produce by April. "The Cabinet will take the final call on fixing methodology for reserve price....," the media report said. The government had in 2012 constituted inter-ministerial panel (IMC) to consider and examine the formulation of methodology for fixing floor/reserve price of coal blocks to be allocated through auction. Based on proposal of consultant Crisil, it had planned allotting coal blocks only to government companies or to power plants with tariff-based bidding, in order to ensure cheaper domestic coal to consumers.