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Consumer inflation eases to 6.46% in Sep 13/10/2014

Consumer inflation eases to 6.46% in Sep
13/10/2014 19:37
Consumer inflation in India fell for a second month on the trot in September 2014, leaving leeway for the Reserve Bank of India (RBI) to start easing monetary policy in the coming months, lifting the outlook for Asia’s third biggest economy, which expanded at the fastest pace in more than two years in Q1 FY 2014-15.
Consumer prices in India climbed by 6.46 per cent in September 2014 from the same month a year ago, the lowest level since 2012, government data showed on Monday.
Analysts were expecting consumer inflation to stand at 7.2 per cent in September 2014.
Further, August’s 2014 consumer inflation figure was downwardly revised to 7.73 per cent from an earlier forecast of 7.8 per cent.
What is more comforting is that core consumer inflation eased to 5.9 per cent in September 2014 from 6.9 per cent in August 2014.
The retreat in consumer inflation means that the RBI is unlikely to tighten monetary policy in the coming months and may consider cutting interest rates from next fiscal onwards.
Consumer inflation is likely to undershoot the RBI’s 8 per cent target for January 2015. The central bank aims to contain consumer inflation at 6 per cent by January 2016.

India Inc’s foreign investment doubles to $3.02 bn in Sept 13/10/2014

India Inc’s foreign investment doubles to $3.02 bn in Sept
13/10/2014 00:08
India Inc’s overseas direct investment more than doubled to USD 3.02 billion last month, according to the Reserve Bank data. Total investment abroad by Indian firms stood at USD 1.43 billion in September 2013, reported PTI. During August, the Indian companies had undertaken investments worth USD 1.25 billion in overseas markets. The investments were a mix of issuance of guarantees (USD 2.53 billion), loan (USD 257.60 million) and of equity (USD 232.59 million). Tata Steel, KEC International, Glenmark Pharmaceuticals, Videocon Industries, and Mercator were among the major investors overseas during the month. Tata Steel invested USD 1.88 billion in its wholly-owned unit in Singapore and Mercator made an investment of USD 45 million in its joint venture in Singapore. Videocon Industries made an investment of USD 22.06 million in a wholly owned unit in the Cayman Island, and KEC International $81.3 million in a wholly owned unit in Mauritius. Glenmark Pharmaceuticals invested USD 27.12 million in five separate tranches in its joint ventures and wholly owned subsidiaries in Egypt, Mexico, Nigeria, Venezuela and Switzerland.

Q2 earnings, inflation data to dictate market trend 13/10/2014

Q2 earnings, inflation data to dictate market trend
13/10/2014 00:08
According to market experts, trading sentiment at Dalal Street this week will be determined by second quarter earnings from Sensex heavyweights RIL and TCS, and consumer inflation data which will determine whether the RBI has enough room to ease monetary policy in the coming months. Besides, foreign fund inflows, the movement of the rupee and crude oil prices will also dictate the market trend in the holiday shortened week with stock markets closed on Wednesday due to assembly elections in Maharashtra. However, markets may see some weakness on Monday due to dismal IIP data released after market hours on Friday. India’s industrial output grew at the weakest pace in five months, up by 0.4 per cent in August 2014 from the same month a year ago, as manufacturing output which accounts for nearly 75 per cent of the index, contracted by a massive 1.4 per cent, year on year. Further, July’s industrial output growth was revised downwards to 0.4 per cent from a prior 0.5 per cent. Q2 earnings of companies such as RIL, TCS, Bajaj Auto, Hero MotoCorp, Axis Bank, HCL Technologies and Ultra Tech Cement would be in focus this week. Further, investors will be eying the CPI numbers on Monday followed by wholesale inflation data on Tuesday. India’s consumer inflation may have eased to 7.2 per cent in September 2014 from 7.8 per cent in August, analysts’ estimates showed.

Govt not too worried over weak IIP data 13/10/2014

Govt not too worried over weak IIP data
13/10/2014 00:06
According to media reports, Nirmala Sitharaman, the Indian Minister of State for Commerce and Industry has said that the latest industrial output numbers which signaled a sharp slowdown in factory output growth in July and August isn’t worrisome for Asia’s third biggest economy amid solid growth in core sectors and the automobile industry as well. She underlined the work done by the Modi government to revive confidence in the economy including making it easier for companies to do business in India by easing regulations. Owing to the country’s improving economic outlook, leading global rating agency Standard & Poor’s (S&P) recently upgraded India’s sovereign credit rating outlook from negative to stable. "There are definite signs of improvement. The automobile and some core sectors are doing well," Sitharaman said, as she saw no major impact of the weak IIP numbers on the second quarter GDP data. India’s industrial output grew at the slowest clip in five months, up by 0.4 per cent in August 2014 from the same month a year ago, as manufacturing output which accounts for nearly 75 per cent of the index, contracted by a massive 1.4 per cent, year on year. Further, July’s industrial output growth was revised downwards to 0.4 per cent from a prior 0.5 per cent.

BPL category may get free medicines: Media Report 13/10/2014

BPL category may get free medicines: Media Report
13/10/2014 00:05
The Centre is working on a solution to ensure that poor get benefits like free medicines and check-ups in speciality government hospitals on the basis of their BPL ration cards while eliminating income tax payers and top officials from the ambit of PDS, reported PTI. The new moves are aimed at better targeting of subsidies which the government wants should reach the needy and the deserving. "This issue is under consideration. We are trying to find some workable solution to ensure Below Poverty Line (BPL) category people can avail other facilities like free medicines with ease on the basis of a ration card," says Union Food Minister Ram Vilas Paswan. He told PTI in an interview that the poor are facing problems, especially in those states where the new food law has been implemented. The Minister was asked whether the government will take steps to ensure that new ration card serves as an ID card for other benefits. Meanwhile, the government is working on plans to take out income tax payers and ranking officials in the government out of the ambit of Public Distribution System (PDS). The Modi government has asked states to try such a scheme and Paswan will be discussing the issue with them. It has also given enough signals that the much-touted welfare food security programme of the UPA government will not be shelved.

FIIs pull out Rs 800 cr from stock market: Media Report 13/10/2014

FIIs pull out Rs 800 cr from stock market: Media Report
13/10/2014 16:30
Overseas investors have pulled out nearly Rs 800 crore from the Indian stock market since the beginning of this month, mainly on account of profit booking, said the media report.
In comparison, the debt market saw huge inflow of over Rs 6,300 crore during the period.
Foreign investors were gross buyers of equities worth Rs 20,252 crore till October 10 and sellers to the tune of Rs 21,038 crore-a net outflow of Rs 786 crore (USD 128 million), according to the latest data.
The outflow comes after overseas investments in the stock market hit seven months low in September.
Market experts attributed the outflow to profit booking and consolidation in the equity market.
"We have witnessed an outflow in this month mainly due to profit booking and the market is also in a consolidation mode," CNI Research Head Kishor Ostwal said.
He further said the long-term prospects of staying invested in India are still positive.
Overseas investors (Foreign Institutional Investors or Foreign Portfolio Investors) had pumped in a little over Rs 5,100 crore in Indian equity markets in September, making it the lowest net investment since February when they had infused Rs 1,404 crore.
Since the beginning of this year, foreign investors have infused a net amount of Rs 82,651 crore (US 13.75 billion) into the share market, while they invested a net of Rs 1.25 lakh crore into the debt market (US 20.6 billion).
From the beginning of June, FIIs along with sub-accounts and qualified foreign investors have been clubbed together by capital market regulator Sebi to create a new investor category called FPIs.

Tourism foreign exchange earnings rise 4.6%: Naik 13/10/2014

Tourism foreign exchange earnings rise 4.6%: Naik
13/10/2014 15:06
The foreign exchange earnings from tourism has gone up by 4.6 percent in comparison with the last year, Union Tourism Minister Shripad Yasso Naik said hoping that measures like tourist visa on arrival and electronic travel authorisation would considerably contribute to the earnings, said the media report.
"Foreign exchange earning from tourism during January to August 2014 was USD 12.739 billion with a growth of 4.6 per cent compared to the corresponding period in 2013," Naik said at a function.
Stating that tourism was a key sector which could contribute to India's recovery and valuable foreign exchange earnings, he said several initiatives like infrastructure development, publicity, promotion and marketing among others have been taken by the ministry.
"These efforts will be complemented by a radical change in our approach to facilities through our proposed Tourist Visa on Arrival enabled with Electronic Travel Authorisation which will soon be a reality," he said.
"I am very optimistic, these measures will start working," the minister said.
Foreign tourist arrivals in India during January to August 2014 were 46.84 lakh with a growth of 7.4 per cent, as compared to 43.60 arrivals with a growth of 4.9 per cent during corresponding period in 2013, Naik said.

India’s car sales dip 1% in Sep 13/10/2014

India’s car sales dip 1% in Sep
13/10/2014 12:46
Passenger car sales in the country edged lower in the month of September 2014 signaling fresh weakness in the automobile sector of Asia’s third biggest economy as high inflation and elevated interest rates keep consumers away from big-ticket items.
Domestic passenger car sales dropped by 1.03 per cent to 154,882 units in September 2014 from the same month a year ago, data from the Society of Indian Automobile Manufacturers (SIAM) showed on Monday.
In September 2013, passenger car sales in the country stood at 156,494 units.
Sales of motorcycles in India, however, climbed by 19.34 per cent to 10,56,509 units in September 2014 from 885,309 units in the same month a year ago.
Sales of two-wheelers also edged higher last month, rising by 23.81 per cent to 15,67,351 units in September 2014 over the same month a year ago.
Sales of commercial vehicles in the country climbed by 8.59 per cent to 56,140 units in September 2014 over the same month a year ago.
Consumer sentiment in India remains relatively weak despite a pickup in the economy and the return to power of the more growth and reform friendly BJP government as high borrowing costs and elevated consumer prices pinch pockets, dimming demand for expensive items.

CAIT to meet FMCG cos on e -tailers discount doles 13/10/2014

CAIT to meet FMCG cos on e -tailers discount doles
13/10/2014 11:47
After raising red flag over Flipkart’s Big Billion Day sale, traders body CAIT said it will convene a meeting after Diwali with FMCG companies to discuss their concerns and product pricing, said the media report. This is a serious issue which is adversely affecting the offline market to a great extent and therefore we have decided to hold direct talks with all such companies on this complex issue to understand as to how the online retailers are able to sell at a much lower price,” CAIT Secretary General Praveen Khandelwal said in a statement. Confederation of All India Traders (CAIT) had earlier called for a probe in the business model and trade practices of e-commerce companies to find out how they are offering huge discounts during the ongoing festive season, added the media report. “Gauging the seriousness of the issue which has shocked the offline market all over the country, CAIT has decided to convene the meeting,” it added. About 50 companies, including LG, Samsung, Sony, Philips, Reebok, Puma, HP, Titan, Casio, and Guess have been invited, it said, adding that a White Paper will also be prepared from the discussion which would be submitted to the Commerce and Industry Minister.

Icra expects two-wheeler industry to grow by 9% in 2014-15 13/10/2014

Icra expects two-wheeler industry to grow by 9% in 2014-15
13/10/2014 10:39
Credit rating agency Icra sees India’s two-wheeler industry to grow about 9 per cent in 2014-15 as volumes in the short term are expected to draw support from the replacement demand, said the media report. Over the medium term, the industry is expected to report a compounded aggregate growth rate (CAGR) volume of about 9 per cent to reach 23 million units (domestic + exports) by 2016-17, the Icra report said. According to the report, in the first five months of current fiscal, the two wheeler industry grew at the fastest pace since 2010-11, posting a strong growth with sales volumes expanding by a healthy 14.8 per cent year-on-year. The overall growth in the two-wheeler industry in the last three years has been primarily attributed to the strong demand for scooters. However the motorcycle segment's contribution too has gained force in 2014-15 by virtue of greater replacement demand and new model launches by various original equipment manufacturers (OEMs), the Icra report said. Scooters contributed 27 per cent to domestic two-wheeler industry during the five months in 2014-15. "The fast expansion of the scooter segment's pie has encouraged most OEMs to launch new models to capitalise on growing opportunity offered by this segment," Icra Senior Group Vice President Subrata Ray said in a statement.

Govt IT spending in India to reach $7.2 bn in 2015: Gartner 13/10/2014


Govt IT spending in India to reach $7.2 bn in 2015: Gartner
13/10/2014 00:21
Emphasis on 'Digital India' initiative and use of technology to deliver citizen services is expected to help IT spending in the government sector in India to grow five per cent to touch USD 7.2 billion in 2015, research firm Gartner said as per the PTI report. For the ongoing year, government IT spending is on pace to total USD 6.6 billion, Gartner said in a statement. The forecast includes spending by the government sector (of state, regional and central government agencies) on internal IT (including personnel), hardware, software, external IT services and telecommunications. "IT services, which includes consulting, implementation, IT outsourcing and business process outsourcing, will be the largest overall IT government spending category through 2018," Gartner Research Director Anurag Gupta said. IT services are expected to grow 10.9 per cent in 2014 to reach USD 1.8 billion in 2015, up from USD 1.6 billion in 2014, with business process outsourcing segment growing 22 per cent during 2014, he added. Internal services, which refers to salaries and benefits paid to information services staff of an organisation, is expected to grow 9.9 per cent in 2014. The information services staff includes all company employees that plan, develop, implement and maintain information systems. The software market is forecast to grow at the fastest pace to total USD 788 million in 2014 and further to USD 910 million in 2015. Software spending is expected to be led by growth in vertical specific software (software applications that are unique to a vertical industry. These are standalone applications that are not modules or extensions of horizontal applications). "India has a new government in power with the underlying promise of 'Less Government & More Governance'. The delivery of a citizen-centric and transparent government is only possible through the extensive use of technology and by leveraging digital government," Gupta said. Gartner expects focus to be on expanding broadband penetration, accelerating digitisation of core government processes, leveraging mobility to engage citizens, cloud initiatives and public private partnership, he added. "India has ambitious plans to build several smart cities, and this will create new opportunities," Gupta said.

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Post Session- Sensex treads water amid caution 07/10/2014

Post Session- Sensex treads water amid caution
07/10/2014 16:27
After a three-day trading holiday, Dalal Street began the week on a bearish note as the Sensex tumbled by more than 290 points dragged down by losses in metals and healthcare stocks as investors stuck to a cautious approach ahead of the Q2 earnings season which may signal the strength in Asia’s third biggest economy. IT bellwether Infosys will kick-off the July-September corporate earnings season as it will unveil its Q2 report card on Friday. Investors will also be eying the August IIP data this week. Fears of a quicker than expected US monetary tightening after upbeat US September jobs data also caused mayhem at Dalal Street as emerging markets braced for weaker foreign fund inflows. Investors cast aside robust India services PMI data which showed acceleration in the country’s non-manufacturing sector. The gauge measuring services in India climbed to 51.6 in September from 50.6 in the previous month, HSBC and Markit Economics reported on Tuesday. A reading above 50 signals expansion in services activity over the previous month.

On the Asian front, mainland markets in China remained closed due to national holidays while Hang Seng rose as protestors and officials agreed on formal talks, easing tensions. Japan’s Nikkei 225 fell as a stronger yen dimmed the appeal of exporter stocks after the Bank of Japan decided against boosting stimulus.

The BSE SENSEX closed at 26,271.97, down by 296.02 points or by 1.11 per cent, and the NSE Nifty ended at 7,852.4, down by 93.15 points or by 1.17 per cent.

India 18th most desirable place to work, US tops list 07/10/2014

India 18th most desirable place to work, US tops list
07/10/2014 16:15
According to a study, India has been ranked 18th globally among the most desirable destinations to work, even as 70-80 per cent of Indians are willing to work in an overseas location.
The US has been ranked on the top, followed by the UK, Canada, Germany and Switzerland, making them the five most desirable countries to work on the list compiled by the Boston Consulting Group, total jobs.com and The Network.
The other countries in the top 10, where foreigners said they would like to work include -- France (6th), Australia (7th), Spain (8th), Italy (9th) and Sweden (10th).
As a desirable work destination, India was ranked 18th among G20 nations.
The report noted that most people are willing to uproot themselves and head for a foreign country for work mainly because they want to broaden their life experience and that of their families.
"The proportion of people willing to work abroad is particularly high in countries that are still developing economically or are experiencing political instability," the survey said adding that more than 97 per cent of Pakistanis say they would be willing to go abroad for work.
Around 94 per cent of survey respondents in Netherlands said they would consider moving to another country for work. In France, where the economy has been showing signs of stagnating, the same proportion (94 per cent) is willing to leave home.
On the other hand, people in the US, Germany and the UK -- three economies that have rebounded more convincingly -- are not as willing to go abroad for work

Mayaram leaves for US to attend IMF-WB meetings 07/10/2014

Mayaram leaves for US to attend IMF-WB meetings
07/10/2014 01:37
Finance Secretary Arvind Mayaram will leave for US to participate in annual meetings of the IMF and the World Bank scheduled for October 10-12, reported PTI. "Finance Secretary Arvind Mayaram will leave for US today to attend the annual meetings of IMF and World Bank," a senior finance ministry official said. Finance Minister Arun Jaitley, who has not been keeping good health, will skip the ministerial meetings. The annual meetings of IMF and World Bank take stock of the global economic situation and try to build a consensus on future course of action to deal with the issues. Besides, the long-pending issue of quota reforms will also come up for deliberations. Reserve Bank of India Governor Raghuram Rajan and Deputy Governor Urjit Patel will also attend the IMF and World Bank annual plenary meetings. Earlier this year in July, IMF lowered global growth forcast for 2014 to 3.4 per cent, below it April forecast of April 3.7 per cent.

India's biz confidence up sharply after new govt 07/10/2014

India's biz confidence up sharply after new govt
07/10/2014 01:33
India Inc has shown uptick in business confidence post the formation of Narendra Modi-led government with key industry surveys showing marked improvement in investor perception during the July-September quarter. While the survey by industry body Ficci showed business confidence at a 15-quarter high, the CII poll indicated a sharp improvement in business confidence. The CII Business Confidence Index shot up to 57.4 in the July-Sept quarter, from 53.7 in the previous quarter. Ficci's Overall Business Confidence Index moved up to 72.7 in the present survey, highest in 15 quarters. The index value in the previous survey was 69. "The determination shown by the new government at the Centre to provide an impetus to growth along with reviving the 'feel good' factor has sent the business confidence index soaring for the second quarter in a row," CII Director General Chandrajit Banerjee said. "In order to capitalise on the early signs of improving business sentiments, we must ensure that this momentum is maintained going forward," he added. Banerjee suggested that "management of inflationary expectations through supply-side measures would hold the key for ensuring continued momentum of economic revival". Ficci said: "The confidence level of the investors is steadily improving. The new government has geared into action and we have seen clearances being given to some big ticket projects. The government has also announced a series of progressive policy and procedural measures that augur well for economic and industrial growth." It added: "Industry feels that we are on the right track and that government should continue with its efforts to further smoothen the clearance process." The proportion of respondents citing 'moderately to substantially better' performance vis-a-vis last six months recorded a significant jump at the economy, industry and firm level in the current survey. The participants were also optimistic about the near term prospects, with 93 per cent of the companies saying that they expect the overall economic situation to be better over the next six months. The CII poll found 41 per cent of respondents expecting GDP in the current fiscal to expand by 5-5.5 per cent, up from sub-5 per cent growth witnessed in the last two years, while 30 per cent respondents expected GDP to grow in a range of 5.5-6 per cent in FY15. A slow pick up in global demand, high inflation and rising borrowing costs are cited to be the top three concerns of the respondents covered in the CII poll. Ficci also asked respondents to identify focus areas for manufacturing in view of Modi's 'Make in India' vision. The sectors identified were engineering; steel & iron; medical equipment & pharmaceuticals; automobiles & auto components; textiles; food processing & agro-based industries; and defence equipment.

Nearly 9.87 lakh companies active in India 07/10/2014

Nearly 9.87 lakh companies active in India
07/10/2014 00:18
India might have more than 14 lakh registered companies but only about 9.87 lakh entities were active at the end of August, reported PTI. Out of the total registered companies, nearly 2.60 lakh have been closed down while thousands of entities are in the process of winding up. Corporates are registered under the Companies Act, which is implemented by the Corporate Affairs Ministry. Latest data from the Ministry show that there were about 9.87 lakh active companies as on August 31 and the figure includes 1.27 lakh firms which were incorporated within the last one-and-a-half years. "As on August 31, 2014, the number of companies registered under the Companies Act was 14.16 lakhs. Of these, 2.59 lakh companies were closed and 27,218 companies are in the process of being closed," as per the Ministry's latest monthly newsletter. Besides, around 1.42 lakh companies were classified as 'dormant' -- those which have not filed their annual statutory filings for more than three consecutive years. Meanwhile, a total of 6,676 new companies were registered in August and their authorised capital stood at Rs 1,006 crore. "Under the category of companies registered as limited by shares, Delhi had maximum number of registrations (1,250) followed by Maharashtra (1,199) and Uttar Pradesh (514). "Economic activity-wise maximum number of companies (2,878) were registered under Business Services (IT and R&D)," the Ministry said.

Small rooftop sector to create 3.25lac jobs in 10yrs: Report 07/10/2014

Small rooftop sector to create 3.25lac jobs in 10yrs: Report
07/10/2014 18:12
Bridge to India, a company engaged in businesses like strategic consulting, market intelligence and project development, in it’s report said that in the next ten years small rooftop solar power plants alone are likely to create 3.25 lakh jobs cumulatively in India, said the PTI report.
According to the Bridge to India’s report, “The small rooftop scenario (sector) would contribute the most to job creation, with around 3,25,000 cumulative new jobs in next ten years.”
Further, the supply chain for small rooftop systems would include many intermediaries, spreading margins across more layers, it added.
The report divided the solar power sector into four segments - small rooftops, large rooftops, utility scale projects and ultra mega projects.
The average size of a small rooftop solar is 3 KWp (kilowatt peak), the power achieved by a solar module under full solar radiation. The average size of a large scale rooftop is 250 KWp, utility scale project 20 MW and that of ultra mega solar scheme is 1,000 MWp or 1 GWp.
As per the report, in large rooftop systems, around 2.20 lakh cumulative jobs and in the utility scale scenario around 71,000 cumulative jobs will be created in the next 10 years.

India needs $250 bn investment for urban infrastructure: Venkaiah 07/10/2014

India needs $250 bn investment for urban infrastructure: Venkaiah
07/10/2014 15:50
Classifying urbanization as a key driver of economic growth, Union Minister for Urban Development M Venkaiah Naidu said that an estimated amount of USD 250 billion is needed over next 20 years for basic urban infrastructure, said the media report.
"As per the estimates of a high-powered committee, we need to invest USD 250 billions over the next 20 years to put in place basic urban infrastructure relating to transport, water supply, sanitation and solid waste management alone," Naidu said.
This offers a huge investment opportunity and we are committed to promote private domestic and foreign investment in a big way, he added.
Going forward, there are ample opportunities for foreign investors as the government has planned to allow FDI in infrastructure also, the minister said at the XI Metropolis World Congress that got underway.
At the current level of urbanization itself, urban areas in India contribute to around 60 per cent of the GDP which is estimated to rise to 75 per cent in another 10 to 15 years, added the media report.
Stressing the need for bringing in reforms in urban governance, he said, "We must have digitisation of land records and property details of the cities. Hyderabad has shown the way in this regard. Because of digitisation of records, the revenue of Hyderabad has increased manifold and I am confident that other cities of the country will follow the same."

Central govt releases Rs 250 cr to DMRC for Phase III project 07/10/2014

Central govt releases Rs 250 cr to DMRC for Phase III project
07/10/2014 12:10
According to media reports, Central government has released its equity contribution of Rs 250 crore to the Delhi Metro Rail Corporation (DMRC) for construction work of Phase III projects. "We have released an amount of Rs 250 crore to DMRC as part of the Government of India's share towards equity for meeting the cost of Delhi MRTS Phase III projects for the current 2014-2015 year," said an official of Ministry of Urban Development. The official said that this amount shall consist of 25,00,000 shares of face value of Rs 1,000 each, added the media report. "The audited statement of account relating to transfer of this amount of Rs 250 crore to the equity of DMRC shall be furnished to Urban Development Ministry after the close of financial year together with a certificate that the amount has been utilised for the purpose for which it was sanctioned," the official said. He said that a total amount of Rs 7883.36 crore has been released earlier as equity to DMRC by Urban Devlopment Ministry.

Take steps to regulate online biz: CAIT to govt 07/10/2014

Take steps to regulate online biz: CAIT to govt
07/10/2014 11:33
Concerned over hefty discounts being offered by e-commerce firms, traders body CAIT has asked the Commerce and Industry Ministry to take steps to monitor and regulate online businesses, said the media report. In a letter to Commerce and Industry Minister Nirmala Sitharaman, National General Secretary of Confederation of All India Traders (CAIT) Praveen Khandelwal has urged for setting up of a regulatory authority for e-commerce business in India. "We invoke your kind and immediate attention to ongoing sale offers conducted by various e-commerce companies since last three days...they are offering discounts from 20 per cent to 70 per cent, whereas traders are forced to sell same products in offline markets at a higher prices since their purchase price is on a very higher side," he said the letter. It is a serious matter as it is badly affecting the offline market. "Such a practice if continued may result into unavailability of products in offline market which will further result into a monopolistic situation which will be controlled and dominated by the e commerce retailers," he added. He said it amounts to predatory pricing and the government should take necessary steps to control this.

India growing as a desirable holiday destination: Survey 07/10/2014

India growing as a desirable holiday destination: Survey
07/10/2014 01:06
Overseas travellers increasingly show interest in India as a “desirable” holiday destination, as hotels in the country have been experiencing a large uptake in tourist interest, according to a recent TripAdvisor survey, reported PTI. “It is encouraging to see significant increase in traveller interest from both emerging and established inbound markets, confirming India’s appeal as a desirable holiday destination for travellers from both near and afar,” TripAdvisor’s Territory Manager for India Deepesh Saxena said in a release. The study examined TripAdvisor website data to find which markets had the largest increases in traffic, taking into account natural growth, according to year-on-year growth in share of user sessions, from major inbound travel markets, looking at Indian accommodations for full year July 2012 to July 2013 and July 2013 to July 2014. The survey said that with traveller interest growing by 48 per cent year-on-year, Singapore leads the list when it comes to increased interest from travellers looking at Indian hotels, representing an increasingly important source of business for Indian accommodations. Emerging markets like Ukraine and China have also been showing signs of promise as new inbound markets for India with traveller interest increasing by 43 per cent and 33 per cent, year-on-year, respectively, it said. These markets with the biggest increase in traveller interest for India based on travellers looking at Indian accommodations are consistent with top markets researching India as a travel destination on the TripAdvisor’s website. According to TripAdvisor’s survey data, travellers from India, the United Kingdom, the United States, France and Australia contributed the most number of reviews on Indian accommodations during 2013. The survey also found that Italian and Japanese travellers are least satisfied with accommodations in India. In 2013, Italian and Japanese travellers from these two countries gave Indian accommodations an average TripAvsior review rating of 4 and 4.02, out of a possible five, compared to the 4.10 global average review rating, it pointed out. However, Israeli travellers are the most satisfied guests, and gave Indian accommodations an average TripAdvisor review rating of 4.23, in 2013. Irish and American travellers are also among nationalities most pleased with Indian properties, giving them an average review rating of 4.25. The study also showed that while Goa, Kerala and Maharashtra were the top three most searched Indian destinations in the past year, it is accommodations in Rajasthan that commend the highest average review rating of 4.3, out of a possible five

Banks request clarity on tax treatment over bonds under Basel3 07/10/2014

Banks request clarity on tax treatment over bonds under Basel3
07/10/2014 00:58
Bankers have sought clarity from the Finance Ministry regarding taxation of additional tier-I bonds through which they are expected to raise capital to meet Basel III norms, reported PTI. Clarity on taxation would help investors in putting money into such instrument without hesitation. Banks have requested the Ministry to clarify tax treatment issues with regard to additional tier-I bonds in a meeting held recently, sources said as per the media report. Sources said bankers in the meeting said that investors want to know whether these instruments will be treated as bonds or equity for taxation purposes. Under the Basel-III norms, additional tier-I bonds come with loss absorbency features meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI. This will help banks to conserve capital at the time of stress or loss. Additional Tier I bonds, which qualifies as core capital or equity capital, is one of the means of raising capital by the public sector banks which would require Rs 2.40 lakh crore by March 2019. Besides, investors also want clarity if they have option to exit such an investment after a few years. Only few banks, including Bank of India, have raised funds through this instrument. Some of the regulators, including pension regulator (PFRDA), have also raised issues on the taxation structure of these bonds. However, PFRDA recently permitted pension fund managers to invest in Basel III compliant Tier I bonds of banks. "It is hereby clarified that additional Tier I bonds compatible under Basel III issued by scheduled commercial banks in accordance with the RBI guidelines are to be considered as debt instruments eligible for investments under the debt category of all NPS schemes provided they are rated as investment grade by at lease one rating agency," PFRDA had said in a notification. Tier I bonds are instruments which are perpetual in nature and therefore are akin to shares.

SEBI’s attachment proceedings cross 1,500-mark 07/10/2014

SEBI’s attachment proceedings cross 1,500-mark
07/10/2014 00:20
As SEBI tightens noose on defaulters and market manipulators, the number of attachment proceedings initiated by the market regulator against those having defaulted on payment of penalties has crossed the 1,500-mark, reported PTI. SEBI began initiating attachment proceedings against defaulters, including individuals and companies, nearly one year ago as part of the greater powers granted to it by the government. Since then, the Securities and Exchange Board of India has launched 1,539 attachment proceedings for the recovery of penalties imposed in as many as 449 cases. These proceedings involve attachment of bank accounts, moveable and non-moveable properties, shares and debentures, among others. After clearance from Parliament earlier in August, the government has notified the Securities Laws Amendments Act, which authorises SEBI to pass orders for attachment of properties, arrest and detaining of defaulters in prison and for disgorgement of ill-gotten money, among others. Before the Act, the market watchdog was exercising this power through an ordinance, which was promulgated thrice. The attachment proceedings have been launched by SEBI to recover collective penalties totalling close to Rs 2,000 crore imposed on various entities in matters related to violations of capital market norms. In some cases, the attachment orders have been revoked after the concerned entities made the outstanding payments. SEBI Chairman U K Sinha had said in August that attachment powers have helped it recover about Rs 20 crore till that time. On October 10 last year, SEBI had initiated its first recovery proceedings by ordering banks to attach accounts of Pyramid Saimira’s former promoter P Saminathan who was penalised for various market norms violations including fraudulent trading activities. As per a government ordinance, SEBI has been granted powers to pass orders like search and seizure, attachment of properties, arrest and detention of defaulters. The ordinance was earlier promulgated by President Pranab Mukherjee on July 18, 2013 after the cabinet gave its approval to amend the SEBI Act, 1992. The ordinance got re-promulgated on September 16 and again on March 29. Besides bank accounts, SEBI has also in various proceedings ordered depositories, NSDL and CDSL, to attach the demat securities accounts of the erring entities.