India ranks 71 on WEF trade index

NEW DELHI: India has been ranked 71 among 118 countries in a list
prepared by the World Economic Forum (WEF) for measuring openness to
international trade.

The poor show in the enabling trade index (ETI) of WEF's Global
Enabling Trade Report 2008 has been largely attributable to tariff
barriers and "severely restricted" market access.

The country was ranked 105 in terms of market access, below neighbours
Pakistan, Bangladesh and Sri Lanka. And despite autonomously bringing
down average tariff on industrial goods to 10% and agriculture to
about 33%, India was at the bottom of the pile in the category of
tariff barriers with a rank of 115. Only three countries were below
India in this segment.

The ETI, released on Wednesday as part of WEF's inaugural report, is
based on four sub-indices which include market access, border
administration, transport and communication infrastructure, and
business environment. India got much higher ratings in the indices
other than market access. India was ranked 52 in infrastructure, 55 in
border administration and 58 in business environment.

The top place in the overall index went to Hong Kong, which was also
ranked first in market access. It was followed by Singapore. The two
Asian countries were followed by Sweden, Norway, Canada, Denmark and
Finland. The US was ranked 14 and the UK was at 16th spot in the
overall index. Some notable countries below India in the overall index
include Brazil (80), Pakistan (84) and Russia (103).

"The principal aim of this report is to measure the extent to which
countries around the world have in place the factors and policies for
enabling trade," the WEF said.

Another area where India performed poorly was airport density where it
was ranked 117. In road congestion, the country was ranked third.

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Sharekhan Post-Market Report dated June 20, 2008

Sharekhan's daily newsletter June 20, 2008 Index Performance Index Sensex Nifty Open 15,168.05 4,504.20 High 15,202.01 4,532.00 Low 14,519.27 4,333.60 Today's Cls 14,571.29 4,347.55 Prev Cls 15,087.99 4,504.25 Change -516.70 -156.70 % Change -3.42 -3.48   Market Indicators Top Movers (Group A) Company Price  (Rs) % chg Gainers United Phosphorus 315.00 2.36 Areva T&D India 1,367.60 2.24 ONGC 866.85 1.56 GSK Pharma 1,115.15 1.41 EIH 130.80 0.93 Losers United Breweries 439.75 -10.43 Gammon India 285.80 -10.20 Rajesh Exports 73.70 -10.01 HDIL 528.15 -9.17 Indiabulls Financial 303.60 -8.73 Market Statistics - BSE NSE Advances 450 133 Declines 2,247 1,074 Unchanged 43 15 Volume(Nos) 27.96cr 47.97cr  Market Commentary  Market sinks on bear hammering  The Sensex plummeted 517 points on a sharp hike in inflation and across-the-board selling pressure.  The market went into a complete tailspin, as the much-awaited correction shaved nearly 700 points off the Sensex during the intra-day trades.     Positive global cues like oil prices cooling off further failed to lift the sentiment, as investors instead tracked the falling Asian indices since early trades. After resuming on a positive note at 15,168, the market turned negative and remained under the bear hug for the rest of the session. The Sensex nearly slipped below 14,600 towards the noon trades as a wave of selling in heavyweights, oil, realty and metal stocks saw it slump to an intra-day low of 14,519. The Sensex finally ended 3.42% or 517 points lower at 14,571, while the Nifty crashed 157 points to close at 4,348. Among the Asian indices, Nikkei tanked 1.33% (down 188 points) at 13,942 and Hang Seng dropped 0.23% (down 52 points) at 22,745.  The market breadth was extremely negative, Of the 2,740 stocks traded on the BSE, 2,247 stocks declined, 450 stocks advanced and 43 stocks ended unchanged. All the sectoral indices took sharp beatings. BSE Realty index bore the major brunt and crashed 5.03% at 9,420 while BSE Metal index, BSE Teck index, BSE Bankex index and BSE FMCG index dropped over 2-4% each. Except ONGC, all other 29 stocks in the Sensex pack ended in the red. Among the major losers Reliance Communications tumbled 6.65% at Rs489, Reliance Industries slumped 6.61% at Rs2,079, Hindalco crumbled 6.37% at Rs158.70, Jaiprakash Associates plunged 6.03% at Rs165.15, Reliance Infrastructure dropped 4.92% at Rs943.65, Bharti Airtel declined 4.76% at Rs754, Ambuja Cement dropped 4.71% at Rs84.05, Tata Steel tumbled 4.66% at Rs772, DLF lost 4.57% at Rs452.50 and SBI fell 4.11% at Rs1,241.05. Other stocks also dropped over 2-3% each. Over 1.32 crore Reliance Natural Resources shares changed hands on the BSE followed by IFCI (1.27 crore shares), Reliance Petroleum (1.15 crore shares), Chambal Fertilisers (1.07 crore shares) and Ispat Industries (0.98 crore shares). European Indices at 16:35 IST on 20-06-2008 Index Level Change (pts) Change (%) FTSE 100 Index 5686.80 -21.60 -0.38 CAC 40 Index 4553.63 -37.76 -0.82 DAX Index 6692.71 -28.46 -0.42 Asian Indices at close on 20-06-2008 Index Level Change (pts) Change (%) Nikkei 225 13942.67 -188.09 -1.33 Hang Seng Index 22745.60 -52.01 -0.23 Kospi Index 1731.00 -9.71 -0.56 Straits Times Index 3001.81 9.15 0.31 Jakarta Composite Index 2371.78 -1.28 -0.05

 

RBI may step in to contain inflation rate

Indian inflation shot above 11 per cent in early June to a 13-year
high following a rise in state-set fuel prices, rattling markets and
prompting the finance minister to warn of stronger anti-inflation
measures ahead.

Inflation is on the rise globally and has also reached double digits
in other countries, including Indonesia, Vietnam, Sri Lanka and
Pakistan as oil, food and other commodity prices soar.

What experts say about inflation | Inflation rate surges to 13-yr high
at 11.05%

India government bond yields jumped to their highest in nearly seven
years after Friday's data and the finance minister's warning, while
shares fell to their lowest levels in 2008 on concern that interest
rates will move up.



Traders said the central bank, which raised rates just last week,
stepped in to support the weakening rupee after the release of India's
wholesale price index (WPI), the country's most widely watched
inflation measure.

The index showed annual inflation jumped to 11.05 per cent in the 12
months to June 7, its hottest pace since May 1995 and much higher than
forecasts for 9.82 per cent.

It also marked a big jump from 8.75 per cent in the week-earlier
data.

"The number is quite intimidating and it will require some response
from the fiscal authorities and the Reserve Bank of India," said
Abheek Barua, chief economist at HDFC Bank.

"So I wouldn't be surprised if there is another monetary measure on
its way in the next fortnight or so, and this is likely to be a repo
rate hike of about 25 basis points."

The double-digit inflation figure -- inflamed by a fuel price hike of
about 10 per cent early this month when India cut subsidies, will also
heap more pressure on a ruling coalition, which faces state and
national elections in coming months.

The coalition is already struggling to unify behind a controversial
nuclear energy deal with the United States.

The central bank surprised financial markets last week by raising
interest rates, its first increase in more than a year. It boosted its
repo rate by 25 basis points to 8 per cent.

Economists said with inflation running significantly higher than
anticipated, another increase was likely.

Reflecting such expectations, the benchmark 10-year government bond
yield jumped 10 basis points to 8.64 per cent, while the benchmark
stock index was down just over 3 per cent in mid-afternoon.

Political fallout

Political worries have already rattled markets this week, fuelling
losses on Wednesday and Thursday, while surging food bills have
contributed to a string of defeats for the ruling Congress party at
state elections over the last few months.

Now the coalition's communist allies have renewed threats to withdraw
support for the government over the nuclear deal. The government has
just a week or so to decide if it wants to risk early polls -- at
which rising prices will be a key battleground -- by going ahead with
the agreement.


Earlier this month, India joined a stable of Asian countries no longer
able to afford big fuel subsidies in the face of rising prices,
sparking street protests and calls for industrial strikes.

Where to next?

India's inflation rate was last this high in the week of May 6, 1995,
when it stood at 11.11 per cent. In the latest figures, inflation for
the week of April 12 was revised up to 7.95 per cent from 7.33 per
cent.

Energy costs account for 14.2 per cent of the WPI index and Friday's
data showed the index for fuel, power, light and lubricants rose 7.8
per cent in the week of the price rise.

Finance Minister Palaniappan Chidambaram promised action.



"This is indeed a very difficult time and we will have to take
stronger measures both on the demand side and monetary side," he told
reporters.

Food prices have been a source of concern for the Congress party-led
coalition as these impact the poor the hardest, but the food articles
index fell 1.1 per cent in the June 7 data.

Nonetheless, Indranil Pan, chief economist at Kotak Mahindra Bank,
said inflation could go towards 12 per cent. "The next 3 to 5 months
are going to be very crucial."

Robert Prior-Wandesforde, economist at HSBC in Singapore, saw both the
repo rate and the cash reserve ratio (CRR), used by the central bank
to drain surplus cash from the money market, rising by 50 and 75 basis
points respectively by year-end.

World population to hit 7 billion in 2012

WASHINGTON - The world's population will reach 7 billion in 2012, even
as the global community struggles to satisfy its appetite for natural
resources, according to a new government projection.

There are 6.7 billion people in the world today. The United States
ranks third, with 304 million, behind China and India, according to
projections released Thursday by the Census Bureau.

The world's population surpassed 6 billion in 1999, meaning it will
take only 13 years to add a billion people.

By comparison, the number of people didn't reach 1 billion until 1800,
said Carl Haub, a demographer at the Population Reference Bureau. It
didn't reach 2 billion until 130 years later.

"You can easily see the effect of rapid population growth in
developing countries," Haub said.

Haub said that medical and nutritional advances in developing
countries led to a population explosion following World War II.
Cultural changes are slowly catching up, with more women in developing
countries going to school and joining the work force.

That is slowing the growth rate, though it is still high in many
countries.

The global population is growing by about 1.2 percent per year. The
Census Bureau projects the growth rate will decline to 0.5 percent by
2050.

By then, India will have surpassed China as the most populous country.

The Census Bureau updates projections each year on a variety of global
demographic trends, including fertility and mortality rates and life
expectancy. U.S. life expectancy has surpassed 78 years for the first
time, the National Center for Health Statistics announced last week.

The new Census report comes amid record high oil and gasoline prices,
fueled in part by growing demand from expanding economies in China and
India.

There is no consensus on how many people the Earth can sustain, said
William Frey, a demographer at the Brookings Institution, a Washington
think tank. He said it depends on how well people manage the Earth's
resources.

Today, industrialized nations use a disproportionate share of oil and
other resources, while developing countries are fueling population
growth.

There are countries in Africa, Asia and the Middle East where the
average woman has more than six children in her lifetime. In Mali and
Niger, two African nations, women average more than seven children.

"There's still a long way to go in the developing world," Frey said.
"A lot of it does have to do with the education of women and the
movement of women into the labor force."

In the U.S., women have an average of about two children, which
essentially replaces the population. Much of the U.S. population
growth comes from immigration.

Moody's arm says RBI may tighten interest rates before Jul review

Moody's arm says RBI may tighten interest rates before Jul review
Friday, Jun 20

   NEW DELHI - The Reserve Bank of India is likely to further tighten
interest rates before its next quarterly review of the policy on Jul
29 after the headline inflation rate soared to a 13-year-high of
11.05%, Moody's Economy.com said today.
   "The RBI looks set to further tighten monetary policy. There is a
good chance that the central bank will not wait until the next formal
review, which is scheduled for July," the Moody's arm said in a
release.
   On Jun 11, the RBI had hiked repo rate by 25 basis points to 8% to
curb inflationary expectations. Prior to the move, the central bank
was primarily relying on cash reserve ratio to suck out liquidity and
tame inflationary expectations.
   It steadily raised banks' CRR by 200 bps since Apr 2007 with the
last one coming on Apr 29.
   The central bank has projected inflation for 2008-09 at 5.5%.
   The government has also taken a series of measures, including duty
cuts, but they have not had any impact so far to rein in prices.
   However, the Moody's economic think-tank arm maintains that
despite moderation in household consumption and business investment in
2008-09 following high inflation and tight monetary stance, Indian
economy will grow by 7.6%.
   The Indian economy grew 9.0% in the 2007-08.  

 

 

RBI to hike repo rate by 0.25%: Economists

Reserve Bank of India may soon raise the interest rate for short-term
lending to banks once again as a measure to control the unabated rise
in inflation that shot to 13-year high at 11.05 per cent, economists
said.

The short-term lending rate (repo rate) is currently ruling at 8.0 per
cent and this may be increased to 8.25 per cent even before the July
policy announcement.

It is quite possible that RBI may increase the repo rate by a quarter
per cent before July policy review, HDFC Bank Chief Economist Abheek
Barua said.

The hike could come in the next 10 days, he said, adding, depending on
the situation RBI could also increase the Cash Reserve Ratio-- the
ratio of deposits which banks have to keep with RBI.

The central bank would come out with quarterly review of the Credit
Policy on July 29.

According to Saumitra Chaudhuri, member of Prime Minister's Economic
Advisory Council, the unexpected surge in inflation is due to revision
of non-sensitive fuel items like light diesel oil, naphtha, furnace
oil and bitumen.

"All of it has come during the week pushing inflation by additional
one per cent," he said.

There is lot of pressure on interest rates. RBI may further tighten
the monetary policy in order to anchor inflation to reasonable level,
Chaudhuri said.

The monetary authority could raise repo or CRR depending on the
condition, he added.

Any change in key policy rate or ratio by RBI would force the banks to
revise both deposit and lending rates to maintain its margin which is
already under pressure.

Hindalco Q4 net profit at Rs 721 cr

Aditya Birla Group company Hindalco on Friday reported a net profit of
Rs 1,077 crore for the fourth quarter ended March 31, 2008, a rise of
49.3 per cent over the corresponding period previous year.

The company had registered a net profit of Rs 721.3 crore in the
fourth quarter of 2006-2007, according to data available on the
company's website.

It clocked a net sales of Rs 5,010.2 crore for the fourth quarter of
the last fiscal, up by 5.5 per cent over the same period last fiscal.

Hindalco had achieved net sales of Rs 4,748.9 crore in the
corresponding quarter of the previous year.

For the fiscal 2007-08, the company clocked a net profit of Rs 2,860.9
crore, a 11.56 per cent increase over the previous fiscal. It had
recorded a net profit of Rs 2,564.3 crore last year.

The net sales for the entire year stood at Rs 19,201 crore, against Rs
18,313 crore last year, up by 4.8 per cent.

Crude futures fall on MCX on weak Asian trend

Crude oil in futures trading fell by 0.70 pc on Friday after China
raised domestic fuel prices and Saudi Arabia announced its plans to
increase its oil output.

At 1130 hrs, crude for July delivery contract fell 0.70 pc at Rs 5,695
per barrel on the Multi Commodity Exchange. The contract moved between
Rs 5,684 and Rs 5,727 per barrel.

The August delivery contract also fell by 0.70 pc at Rs 5,700 per
barrel after moving between Rs 5,705 and Rs 5,688 per barrel.

Crude oil prices fell in Asian markets after Saudi Arabia, the biggest
producer in the OPEC cartel, said it planned to increase output by
200,000 barrels per day.

"Expectations that supply might improve as Saudi Arabia planning to
increase its output next month, influence trading sentiment," said
Harish, research head at Karvy Comtrade.

He said the market might go further down on expectations that the
crude in overseas market might touch a low of 125 dollar per level.

Meanwhile, the benchmark futures contract, New York's light sweet
crude for July delivery, was 56 cents lower at 131.37 US dollar a
barrel.

Brent North Sea crude for August delivery eased 13 cents to 131.87 US
dollar after dropping 4.44 dollars to settle at 132 US dollar in
London.
 

 

Coffee prices rise on tight supply, demand

Prices moved up at the Indian Coffee Trade Association auction on
Thursday on a tight supply situation and good export demand, traders
said on Friday.

"Supply situation is tight in the market as harvesting has already
ended in April," said a Bangalore-based trader, who did not want to be
identified.

In India, robusta arrivals start in February and continues through
April, while arabica harvesting is from December to February.

Robusta parchment received good support from exporters and prices were
higher by 100-150 rupees per 50 kg, while robusta cherry prices were
higher by 50-100 rupees, the auctioneer said.

Robusta is more tolerant to warm conditions than arabica and
constitutes about 65 pc of India's coffee output.

A rise in global prices and demand from European countries also
supported the market, said another trader. The robusta September
contract in London rose by $49 to $2,258 a tonne in the last one
week.

Total quantity on offer was 192 tonnes and about 73 tonnes were sold,
the auctioneer said. India's coffee exports rose 3.6 pc during the
first five months of 2008, according to the Coffee Board.

It exports mainly to Italy, Germany and Russia. The country produces
only 4 pc of the world's coffee, but exports 70-80 pc of its output.

Following were the prices quoted for 50 kg bags in rupees.
 

 

 

BHEL gets $428 m order

Indian state-run equipment maker Bharat Heavy Electricals Ltd said on
Friday it got a contract worth Rs 18.40 crores ($428 million) for
setting up a 500 megawatt power project in the eastern state of
Jharkhand.
 

 

 

L&T order book crosses Rs 1,000 cr in Q1 FY09

Larsen & Toubro Ltd (L&T) today said its Heavy Engineering Division
(HED) has bagged orders for high-tech equipment and systems worth more
than Rs 1,000 crore within two months of Q1 FY09.

''The HED has bagged orders of more than Rs 1,000 crore within two
months of Q1 FY09,'' a company statement said.

Major contracts include orders from Tata Power Company Ltd's
subsidiary Coastal Gujarat Power Ltd (CGPL) for its Ultra Mega Power
Plant (UMPP), and another contract from HPCL Mittal Energy Ltd,
Bathinda (HMEL) for critical reactors.

The CGPL contract includes supply of Surface Condensers, Feed Water
Heaters & Deaerators for five units each of 800 MW for the UMPP being
set up at Mundra in Gujarat.

Export orders include supply of coke drums for Kuwait National
Petroleum Company, Kuwait (KNPC), high pressure heat exchangers from
Petroleo Brasileiro, Brazil, ammonia converters from UHDE, Germany and
Reactors from PTT Asahi Chem Co. Ltd, Thailand.

The KNPC contract is for four Coke Drums required for KNPCs 'Clean
Fuel Project 2020'.

The equipment will be manufactured at L&T�s state-of-the-art
manufacturing facilities at Powai & Hazira.

''As the demand for critical hi-tech equipment in the country as well
as abroad is on the rise, we are expanding our manufacturing
facilities at Hazira in Gujarat and setting up a new facility at
Oman,'' company's HED Senior Executive Vice President, M V Kotwal
said.

Sebi simplifies listing norms for corporate debt

To provide vibrancy to lacklustre primary market for corporate bonds,
Sebi removed the requirement of filing of draft offer documents with
the market regulator for such issues but made it mandatory for
companies to get credit rating.


However, a draft offer document has to be filed with the stock
exchange through the lead merchant banker, according to Regulations
for Issue and Listing of Debt Securities notified on Thursday.



The lead merchant banker would have to ensure that all comments
received on the draft offer document are suitably addressed prior to
the filing of the offer document with Registrar of Companies.


For any public issue of corporate debts, credit rating has to be
obtained from at least one credit rating agency with the Sebi's
approval and is disclosed in the offer document, the Regulation said.


In case where ratings are obtained from more than one agency, all such
ratings, including the unaccepted ones, would have to be disclosed in
the offer documents.



Every rating would be periodically reviewed by the registered credit
rating agency and any revision would have to be disclosed to the stock
exchange.


The issuer can also list its debt securities on a private placement
basis, provided they have been credit rated and meet other
regulations.


The issuer would have to redeem the debt securities in terms of the
offer documents, the Regulation said.


However if the issuer wants to roll-over debt securities issued by it,
it would have to pass a special resolution of holders of such
securities and give a 21 day notice for the roll-over to them, the
Regulation added.


Special resolution means consent of not less than 75 percent of the
holders by value of debt securities.

FM says Loan waiver scheme includes interest component

Finance Minister P Chidambaram has directed all PSU banks to prepare a
list of beneficiaries under the ambitious 71,860 crore debt relief
package by 25th of this month.


"On 25th June, we hope to get the list (of farmers)," the Finance
Minister told various PSU banks heads through a video-conferencing.

He asked these banks to get themselves satisfied by 23rd June that
inspection and superchecks in this regard have been done and list of
farmers prepared.

On 24th June, Financial Services Secretary Arun Ramanathan will get in
touch with PSU banks Chairmen to take the confirmation that the list
is prepared, he said.

The Finance Minister also clarified that interest not serviced as on
31st December, 2007 will also be included for the purpose of debt
waiver in the case of investment loans.

In case of loans to farmers through self-help groups, Chidambaram said
disaggregated data could be maintained in books of these groups,
provided banks are satisfied with that data.

Under the loan waiver scheme, loans provided directly to group of
individual farmers like Self Help Groups will also be included, but
disaggregated data of the loan extended to each farmer must be
maintained.

In his budget speech, the Finance Minister has set 30th June as the
deadline for waiving debt of farmers with holdings up to three
hectares.

The size of the loan waiver was subsequently enhanced to Rs 71,680
crore, and its coverage widened to include seven million more marginal
and small farmers, taking the number of such beneficiaries to 43
million from the originally proposed 40 million.

The Finance Minister further clarified that the interest rate
component will also be eligible under the scheme so that every farmer
will be eligible for fresh loans.

RBI delays introduction of credit derivatives

The RBI deferred introduction of credit derivatives in the country
saying it will first study the experiences of other developed
financial markets.


"It has been decided to keep in abeyance the issuance of the final
guidelines on introduction of credit derivatives in India," the RBI
said in a release on Thursday.


The decision has been taken to "be able to draw upon the experience of
the financial sector of some of the developed countries," it added.


"Taking into account the status of the risk management practices then
prevailing in the banking system, the issuance of final guidelines had
been deferred," the statement said.


A senior banker commenting on the RBI's move said, "With the current
controversy in the credit derivative market internationally, this
would not be the right time for introduction of the same in India."


The central bank had issued the Draft Guidelines for Introduction of
Credit Derivatives in India, in March 2003 and had also invited
comments from banks on the issue.


The introduction of these financial instruments was later announced at
the Annual Policy Statement for the year 2007-08.



"However, in view of certain adverse developments witnessed in
different international financial markets, particularly the credit
markets, resulting in considerable volatility in the recent past, such
as mounting losses suffered by banks on account of sub-prime crisis,
need for the central banks of those countries to inject liquidity into
the system," RBI said.

Natural gas production to jump two-fold by 2011-12

NEW DELHI: India's natural gas production will more than double to 170
million standard cubic meters per day by 2011-12 after fields such as
Reliance Industries' eastern offshore KG-D6 reach peak output.

In 2007-08, domestic production at 79.40 mmscmd and 31.50 mmscmd from
import LNG met some 60 per cent of the demand, according to latest
projections made by the Petroleum Ministry.

State-run Oil and Natural Gas Corp (ONGC) will produce 47.06 mmscmd of
gas this fiscal, almost unchanged from 47.19 mmscmd of 2007-08. This
output will rise to 51.65 mmscmd by 2011-12, while Oil India Ltd will
contribute 10 mmscmd.

Reliance Industries' KG-D6 will start producing this year at an
initial rate of 40 mmscmd, rising to 60 mmscmd in 2009-10 and to 80
mmscmd in 2011-12. When KG-D6 hits peak, the share of fuel produced by
fields operated by private sector firms would touch 102.57 mmscmd (in
2011-12).

The projections anticipate an additional 2 mmscmd output from Mahanadi
basin NEC-25 field of Reliance in 2011-12 and 4.5 mmscmd from Gujarat
State Petroleum Corp's Krishna Godavari basin field.

India's import of liquefied natural gas (LNG) is also slated to more
than double to 23.25 million tons by 2011-12 from 9 million tons in
2007-08 after Dabhol, Kochi and Mangalore terminals become
operational.

Petronet LNG's Dahej terminal will see capacity doubling to almost 12
million tons and Shell's Hazira terminal is seen operating at 2.5
million tons, unchanged from present times. Dabhol may import 5
million tons, Kochi 2.5 and Mangalore 1.25 million tons, the
projections stated.

Together with 81.38 mmscmd of LNG, the country's total gas
availability will touch 252.09 mmscmd in 2011-12 from 110.9 mmscmd
now.

India ranks 71 on WEF trade index

NEW DELHI: India has been ranked 71 among 118 countries in a list
prepared by the World Economic Forum (WEF) for measuring openness to
international trade.

The poor show in the enabling trade index (ETI) of WEF's Global
Enabling Trade Report 2008 has been largely attributable to tariff
barriers and "severely restricted" market access.

The country was ranked 105 in terms of market access, below neighbours
Pakistan, Bangladesh and Sri Lanka. And despite autonomously bringing
down average tariff on industrial goods to 10% and agriculture to
about 33%, India was at the bottom of the pile in the category of
tariff barriers with a rank of 115. Only three countries were below
India in this segment.

The ETI, released on Wednesday as part of WEF's inaugural report, is
based on four sub-indices which include market access, border
administration, transport and communication infrastructure, and
business environment. India got much higher ratings in the indices
other than market access. India was ranked 52 in infrastructure, 55 in
border administration and 58 in business environment.

The top place in the overall index went to Hong Kong, which was also
ranked first in market access. It was followed by Singapore. The two
Asian countries were followed by Sweden, Norway, Canada, Denmark and
Finland. The US was ranked 14 and the UK was at 16th spot in the
overall index. Some notable countries below India in the overall index
include Brazil (80), Pakistan (84) and Russia (103).

"The principal aim of this report is to measure the extent to which
countries around the world have in place the factors and policies for
enabling trade," the WEF said.

Another area where India performed poorly was airport density where it
was ranked 117. In road congestion, the country was ranked third.

Easier share transmission rules soon

MUMBAI: There's good news for lakhs of legal heirs awaiting the
transmission of shares of deceased shareholders. Market regulator Sebi
is expected to accept most of the recommendations of the group that
was formed to look into the matter. This will pave way for quick
transmission of shares and benefit those who have inherited them in
physical form.

Currently, companies follow different systems for transmission of
shares in physical form. For instance, HDFC asks its local manager in
some cases where the legal heir does not possess succession
certificate or the probated will, to carry out a verification once it
receives the application. The manager then submits a report and the
company then acts based on the recommendation. But market participants
say this can be a tedious exercise.

"The companies would have to fix a threshold limit of 200 shares or Rs
1 lakh whichever is higher for transmission of shares after submitting
the standardised documents. Companies would require an affidavit, deed
of indemnity and a no objection certificate in case there are other
legal heirs. The limit will be the basic minimum limit to be adhered
to by all listed companies. Those companies that have higher threshold
can continue with that," said a person close to the development.

Transmission means devolution of title to shares otherwise than by
transfer, for example, devolution by death, succession, inheritance,
bankruptcy, marriage, etc. Transmission is different from 'transfer';
in transmission a person acquires an interest in the property by
operation of law, such as by right of inheritance or succession,
whereas, transfer is effected by act of the parties.

"In spite of the legislative intent to simplify the transmission
procedure, companies have different documentary compliances on the
part of the legal heirs of the deceased security holder. In case of
many companies, this is so time consuming and tedious that investors
do not want to follow it up if the amount involved is not very big,"
says Ashok Bakliwal, president of the Bombay Shareholder's
Association, a Sebi-recognised association.

In transmission case, where title to shares are passed by operation of
law, the beneficiary need not carry out further formalities. A year
ago Sebi had constituted a group to address this issue and to evolve
an uniform procedure on transmission of shares.

The group had unanimously suggested suitable measures to address
issues relating to difficulties faced by investors while dealing with
transmission of securities in the physical and dematerialised mode. It
had also proposed the standardisation of these documents. "Once the
new process comes into effect, companies, depositories, recognised
investors' associations and Sebi is expected to put awareness on the
use of nomination facility at the account opening stage itself. This
might also be made mandatory going forward," adds Mr Bakliwal, who was
also member of the above group.

"There is a need for the depositories to encourage the use of
nomination facility in case of demat mode. It should ensure that all
its existing accounts are updated with nomination. The DPs as well as
companies would be required to ensure that the transmission cases are
dealt with in a time-bound manner," he adds.

Power Grid profit at Rs 14,484.70 mn for FY08

Power Grid disclosed a profit of Rs 14,484.70 million for the
financial year ended March 2008.

The company`s revenue stood at Rs 46,148.60 million, while total
income stood at Rs 50,815.30.

The EPS for the year ended Mar. 31, 2008 stood at Rs 5.72.



Shares of the company declined Rs 2.4, or 2.64%, to trade at Rs 88.5.
The total volume of shares traded was 194,436 at the BSE. (11.41 a.m.,
Thursday)

Source : Rediff News

Media revenue to hit $2.2 trillion by 2012: PwC

NEW YORK: Global entertainment and media revenue is forecast rising by
an average of 6.6 per cent a year to $2.2 trillion by 2012, boosted by
advertising-supported digital and mobile media and an explosion in the
adoption of broadband.

According to the PricewaterhouseCoopers (PwC) annual forecast released
on Wednesday, advertising tied to the burgeoning interest in watching
videos on the Internet and on devices, such as Apple Inc's iPod, will
account for 24 per cent of growth in the sector and is projected to
grow fastest at a compound annual growth rate of 19.5 per cent to
2012.

Total entertainment and media revenue growth is seen outpacing global
gross domestic product, which will increase 5.7 per cent, according to
the report.

Despite the acceleration of digital businesses, revenue from
traditional media venues such as television will still dominate global
market share, if not growth. Digital and mobile revenue will account
for only 11 per cent of total spending, or $234 billion, in the next
five years.

PwC's report presents a more stable view of large media and
entertainment companies. Those shares have sunk more than 13 per cent
since the beginning of the year - at a steeper rate than the Standard
& Poor's 500 Index - on fears that the weak economic climate could
curtail consumer spending and spark an advertising recession.

Last week, Lehman Brothers argued that with entertainment company
valuations near 10-year lows, it might be a good time for investors to
shop for deals, such as News Corp.

One surprise: Advertising on over-the-air television globally - the
sector viewed by Wall Street as one of the most vulnerable in a
weakened economy - is expected to rise 5 per cent on a compounded
annual growth basis to 2012, making it the most resilient to threats
posed by digital growth.

"The oft-reported death of traditional media remains greatly
exaggerated," according to the report.

The weakest area in the next five years will be the music industry.
Ravaged by online piracy, recorded music sales are expect to fall by
0.6 per cent to 2012, but is seen growing again by 2011, when digital
sales will overtake CD sales.

What's unlikely to be solved in the next five years? "While companies
are making bold moves to follow consumers into the digital/mobile
future, they continue to wrestle with the challenge of creating
business models that adequately monetize their efforts," the report
said.

PwC's report, which surveys 15 major industry segments in 59
countries, underscored a trend over the past few years. The United
States will continue to account for the biggest share of revenue by
country, or $759 billion by 2012, but will grow the slowest at about
4.8 per cent, outpaced by the Asia Pacific and Latin America.

MTNL gets ILD licence; ISD rates could come down further

Public sector telecom service provider MTNL received the much-awaited
international long distance licence on Wednesday, a development which
could signal further lowering of ISD rates as the PSU is gearing up to
carrying its own traffic in the near future.


A senior MTNL official told a news agency that the PSU has signed the
licence agreement with the Department of Telecom on Wednesday and
would now focus on carrying its own ILD traffic, although for some
time the PSU would depend on the other ILD operators' network.



MTNL is currently routing most of its ISD traffic through VSNL.



At present mobile ISD rates to the US, Europe, Gulf and Africa ranges
from Rs 6.40 to 9.20 per minute, while from landline the average rate
is 5.99 per minute to the US.



With its own network coming up, the official said, the PSU's ISD
carriage cost would fall significantly.



This would cut down the PSU's operational cost.



The ISD segment which already has players like state run BSNL besides
private majors like Bharti, Reliance and VSNL, see some more
competition with the entry of MTNL.



The operator of Mumbai and Delhi circle is also building an undersea
cable project to carry its own ISD traffic.



Its erstwhile partner BSNL has pulled out of the project, which is to
connect India to Singapore and Malaysia.

Ranbaxy, Pfizer sign truce over Lipitor

NEW DELHI: Exactly a week after the promoters of Ranbaxy Laboratories
sold their shareholding to Japanese drug maker Daiichi Sankyo, the
Indian drug maker and US giant Pfizer announced that they have reached
an out-of-court settlement on their litigation over the world's
largest selling drug, Lipitor (Atorvastatin).

According to the settlement, Ranbaxy will launch its generic version
of Lipitor, the $12.7-billion cholesterol-lowering medicine, and
combination drug Caduet in November 30, 2011 in the US with exclusive
marketing rights for 180 days, along with the innovator company.

Industry estimates peg Ranbaxy's revenue upside from the settlement
for Lipitor at $1.5 billion over a four-year period up to May 2012.
Ranbaxy (subject to litigation) was on course to launch its generic
version of Lipitor in the US in March, 2010, 15 months ahead of its
patent expiry in June, 2011. The settlement pushes back the launch
date by 20 months, even though it eliminates all uncertainty regarding
the launch date. In addition, Ranbaxy will also not receive any
upfront payment from the out-of-court settlement.

Says Prabhudas Lilladher's pharma analyst Ranjit Kapadia: "The
settlement brings certainty to Ranbaxy's launch and will cut down
litigation cost for Ranbaxy from tomorrow itself. However, the drug's
launch has been pushed back by 20 months, which means that Pfizer will
get additional sales of around $20 billion during the extended
period."


Ranbaxy has described the deal as a win-win situation. "This is the
largest and the most comprehensive out-of-court settlement ever in the
pharma industry covering a total revenue of over $13 billion. The
revenues will start kicking in from this year as we will be launching
generic version of Lipitor in Canada this calendar year," Ranbaxy
Laboratories CEO and MD Malvinder Singh told ET. A senior Pfizer
executive said the agreement clearly reaffirms the value and
importance of intellectual property.

The settlement was announced after Indian stock exchanges closed on
Wednesday. Ranbaxy shares moved up 2.9% to Rs 598 during the day.

According to industry estimates, Ranbaxy will get a revenue upside of
around $1.5 billion from the Lipitor generic over a four-year period
up to May 2012. Bulk of this revenue will be backloaded and is
expected to accrue when Ranbaxy launches the drug in the US market in
November, 2011.

Lipitor generates annual sales of $8 billion in the US alone. In
Canada, the drug rakes in about a $1 billion in sales every year.
Caduet, a combination drug of Lipitor and hypertension drug Norvasc,
has annual global sales of $400 million.

In addition to the US and Canada, the Indian drug maker will also have
the licence to sell Atorvastatin in six more countries - Belgium,
Netherlands, Germany, Sweden, Italy and Australia - on different
dates. Ranbaxy can launch its Atorvastatin 2-4 months ahead of patent
expiry in these countries. Ranbaxy and Pfizer have also resolved their
disputes regarding Atorvastatin in Malaysia, Brunei, Peru and
Vietnam.

The patent infringement litigation between Pfizer and Ranbaxy relating
to Lipitor will continue in five other European countries - Finland,
Spain, Portugal, Denmark and Romania. "There are certain issues that
needs to be settled in these countries," Mr Singh said.

The agreement pertains solely to Ranbaxy and its affiliates and does
not cover legal challenges to Lipitor patents involving other generic
manufacturers.

For the past few days, there has been speculation that Pfizer would
announce a counter offer for the 65% non-promoter shareholding in
Ranbaxy. While theoretically this option exists, it now appears
remote. It is unlikely that Pfizer would have negotiated an out-of-
court settlement with Ranbaxy if it had intentions of launching a
hostile bid for the company.

It is learnt that Ranbaxy promoters' discussions with Daiichi Sankyo
were going on parallely with the company's negotiations with Pfizer.
Some experts tracking the pharma sector feel that given the nature of
the out-of-court settlement, which will not result in any windfall
payment for Ranbaxy, it is possible that the Indian company wanted to
first announce the stake sale.

Pfizer's president of Worldwide Pharmaceutical Operations Ian Read
said: "The agreement provides patients with access to a generic
product much earlier than if Ranbaxy were unsuccessful in obtaining
approval for its product and overcoming the relevant patents. It
provides substantial certainty regarding the timing of the entry of a
generic version of Lipitor. Finally, the agreement clearly reaffirms
the value and importance of intellectual property and this country's
(US) well-balanced system of creating incentives to develop innovative
medicines while at the same time establishing a strong generic drug
business."

Chryscapital MD and pharmaceutical expert Sanjiv Kaul said that other
Indian companies should also go for similar settlements. "Litigation,
for Indian pharma companies, is a costly proposition. They should
always look for a possible collaborative approach rather than a
confrontational approach. One should use the Para IV for positioning
itself as a global supplier of authorised generics to MNCs."

An industry source said Ranbaxy opted for the settlement route as it
wanted to cut down on litigation costs, which would have quadrupled
when the case moved to higher courts. Also, Daiichi Sankyo, which
bought the Ranbaxy promoter's 35% stake, would not have been keen on a
pursuing a legal fight with Pfizer.

The settlement also resolves the patent litigation between the
companies involving the branded drugs Accupril (in the US) and Viagra
(in Ecuador) and all patent litigations with Ranbaxy relating to
generic formulation of Quinapril Hydrochloride in the US and
Sildenafil in Ecuador.

UAE, Argentina look to India for biofuel

AHMEDABAD: At a time when crude oil prices are threatening to cut
loose and run amok, countries like Oman, the UAE and Argentina have
approached an Indian research institute for developing alternate
biofuels. These countries are now looking for assistance from the
Bhavnagar-based Central Salt and Marine Chemicals Research Institute
(CSMCRI) to begin research on Jatropha biodiesel in their own
individual countries.

According to officials at the institute, Oman and Argentina have
sought help in initiating studies on jatropha in their countries,
while the UAE (United Arab Emirates) has sought assistance to set
research institute on the lines of CSMCRI.

"From fingers being pointed at biodiesel research for being the cause
of global food shortage, the focus of the world has now shifted to
jatropha which is a non-edible source of biodiesel and grows on
wastelands," said the institute director, Pushpito K Ghosh. The
institute has been doing pioneering research on Jatropha Curcas since
1997.

"At different points in time, Argentina, Oman and the UAE have
approached us for assistance in conducting research on Jatropha
biodiesel," Mr Ghosh told ET, while stating that the state-run Sultan
Qaboos University in Oman had recently approached CSMCRI to help them
initiate their first study on jatropha.

"Our institute will be collaborating with the department of soils,
water and agricultural engineering. We are currently waiting for
approval from National Biodiversity Board in Chennai for sending the
necessary jatropha germplasm needed for research to Oman. This will
help the West Asian country to study how jatropha can survive in harsh
climatic conditions prevailing there," he said.

A few days ago, a team from Argentina had visited CSMCRI's premises in
Bhavnagar and had a first-hand experience about the development of
jatropha-based biodiesel. The team also expressed interest in forging
tie-up with the institute.

"Argentina wishes to promote jatropha cultivation in some of the arid
parts of the country," Mr Ghosh said, while hinting that the institute
could collaborate with the South American country in the coming days.
The institute is also looking to forge tie-up with Ras Al Khaimah, one
of the emirates of the UAE. Sheikh Saud bin Saqr Al Qasimi had visited
the institute last year and had sought assistance to set up a research
institute on the lines of CSMCRI. "This research centre will be part
of the Ras Al Khaimah Centre for Advanced Materials," Mr Ghosh said.

The biodiesel developed by the institute had gained international
recognition after extensive tests were conducted at the Austrian
Biofuels Institute (ABI). The ABI which pitted CSMCRI's jatropha
biodiesel against fuels from other feedstocks showed that it clearly
outperformed the biodiesel sourced from rapeseeds, sunflower and
soyabean.

"Though a native of Central America, jatropha is India's contribution
to the world," said the senior scientist about the shrub which is
resistant to drought and pests and produces seeds that contain up to
40% oil. When seeds are crushed and processed, the resulting oil can
be used in a standard diesel engine.

CSMCRI is currently offering its help to a number of Indian and
foreign automotive manufactures like DaimlerChrysler, General Motors
and Mahindra & Mahindra to develop efficient biodiesel vehicles.

Govt ready to infuse more capital in Central Bank of India: FM

NEW DELHI: Finance minister P Chidambaram said on Wednesday the
government was willing to infuse capital into Central Bank of India,
if required. He was speaking after meeting the bank's board of
directors here. The bank has a capital adequacy ratio of 10.42%.

"The government will be willing to help the bank, with additional
capital, if it requires, just as we did for SBI. It will not be a
problem for the government, if the bank can service this capital," Mr
Chidambaram said.

"The bank has not been able to utilise its resources effectively, not
able to raise its capital adequacy. Only the top line is growing, the
bottom line is not," he added.

Although the bank's CMD H A Daruwalla said while it was yet to
approach the government for capital, she would examine the bank's
capital requirement after the first quarter of this fiscal.

Ms Daruwalla said: "We have to examine our capital requirement. As a
part of compliance for accounting standard AS15, Rs 875 crore has been
provided for from the tier I capital. As a result of this, the gap for
tier II capital has reduced. The CRAR for the bank stands at 10.42%
and it's expected to be 10.78% by the end of the fiscal."

Tier II capital should be half of tier 1 capital.

There are several ways of accessing capital, including hybrid
instruments to raise tier II capital, subordinated debt. "We will
examine the least expensive way to raise capital," she said.

Last fiscal, the bank had its initial public offer, after its capital
base was restructured. The bank should also account for operational
risk in view of the implementation of the Basel II norms by March
2009.
The bank is expected to open 200 branches, which will add Rs 1,000
crore of business. By December 2010, the bank will be in the 100th
year of operation.

Over 80 branches will be opened in the next two months. The bank needs
to resolve issues related to labour and human resources, she said.

Ms Daruwalla said that the bank's cost-to-income ratio is high. The
bank has just started implementing core banking solution (CBS) across
its branches. Its cost of deposits has gone up putting pressure on the
net interest margin.

Policy boost for battery-run 2-wheelers

NEW DELHI: Good news for all those planning to buy a battery-operated
vehicle. The Ministry of New and Renewable Energy (MNRE) is planning
to work-out a policy to support manufacturers and users of battery-
operated vehicles. The ministry has plans to extend the present
subsidy scheme to battery-operated two-wheelers and companies
manufacturing battery-operated vehicles and engaged in establishing
network of charging stations.

"At this moment, with a view to work out a conducive policy for
large use of batteryoperated vehicles in the country, the existing
scheme will be changed to accommodate two-wheelers," the MNRE
secretary V Subramanian said after a meeting with manufacturers of
battery-operated vehicles on Tuesday. Under the present subsidy
scheme, owners of only three-wheelers and fourwheelers are eligible to
avail of 33% subsidy benefit on the cost of the vehicle.

However, according to a official of the New Technology Division of the
MNRE, the ministry is working on a new policy to increase the subsidy
as well as extend the benefits to owners of two-wheelers and network
of charging stations established by companies.

Companies can also apply with the MNRE for support in research and
development or for funding of the same, the official said.

There's still some room to invest & grow

The equity market is fluctuating wildly with no signs of any clear
picture emerging in the near-term. The debt market doesn't look
impressive with inflation at a seven-year high. Gold also looks
bearish and real estate looks stagnant with builders artificially
holding the prices high. Do you feel that you have just run out of
investment options? Does it make sense to just stay in cash? The
answer is no. If you leave cash idle in savings accounts it will fetch
you just 3.5% rate of interest per annum. So, it would be wise to park
your funds in a debt instrument like a liquid fund or fixed maturity
plan and earn a reasonable return.

Go short on debt

Debt instruments are popular among risk-averse investors. There are
many options in the debt spectrum like public provident fund (PPF),
fixed deposits (FD), fixed maturity plans (FMP), liquid funds etc.
PPFs offer assured returns, which are tax-free. But, it makes sense
only if you can part with the money for 15 years. You can make partial
withdrawals after the fifth year, but it takes away the sheen of this
investment. Banks are offering attractive rates on short-term FDs, but
again the real rate of return (after accounting for inflation) is very
low. Also FDs do not make any business sense for investors who fall in
the high-tax bracket, says at Kartik Jhaveri, certified financial
planner & director Transcend India. "If your FD fetches 9% at the end
of the one year and you fall in the 30% tax bracket, you virtually get
nothing in your hands. For such investors FMPs come in handy," Mr
Jhaveri says. Even if you are subjected to capital gains tax after you
exit your FMP at the end of first year, you still get better returns
than FDs, he adds.

Stay long in equities

The best time to enter the market is when the Sensex plunges, experts
say. This may be a good time to buy stocks as most scrips are trading
at very low prices. But the bigger question is whether you want to
enter the equity market directly or opt for the mutual funds' route.
"Investing directly in the stock market is good. You should look at
splitting your money among 5-6 blue chip companies. If you don't have
the expertise, then a diversified equity fund will be a safe bet," Mr
Jhaveri adds. It's better for new investors to enter the market in
tranches. "If you enter the market today and it falls by another 10%
tomorrow, it will pinch you. So it's better to spread your moves when
the stock market looks bearish," he says.

Gold glitters forever

Gold has been very stable. It is a natural hedge and tends to move in
line with inflation, experts say. Gold has never shown historic
returns like the equity market nor will it show inflated returns in
the future. It has been earning a consistent return of 9-10% and will
continue to offer the same in coming years. Today, you can invest in
gold in various forms such as coins, gold funds, gold ETFs or even
gold collectibles. Says B Srinivasan, a Bangalore-based certified
financial planner, "Parents tend to accumulate gold coins or even
physical jewellery for their daughters. Gold coins are more expensive
and everytime you buy jewellery using gold coins, the jeweller buys
these coins at a discounted value (usually 4%)." You can look at gold
collectibles like antiques, paintings or even ancient gold coins,
which have a dual value –– for the art as well as the gold. In India,
the wedding trousseau (especially the daughter's) is dominated by the
yellow metal. If you have set a target, then invest the equivalent
amount in either gold ETFs for a period of less than 5 years or gold
funds if you have five years in hand, Mr Srinivasan adds.

Is real estate the way to go?

Industry estimates show rentals have corrected by nearly 20%-30%.
Builders, however, have not lowered the prices of housing projects.
Says Anuj Puri, chairman & country head, Jones Lang LaSalle Meghraj,
"It is definitely not an investor's market right now, owing to the
generalised slowdown. Prices are stagnating and there may be a
correction in many areas over the next year. This, again, is not a
blanket evaluation, and factors like specific location, sector and
property typology will play a significant role." Experts recommend
following property trends carefully . It is possible that the area
they have chosen to buy in may see a drop in rates over the next six
months to a year. If the property is still on your wishlist, evaluate
the trends carefully and then take a decision on how much and where to
invest.

Real estate as an asset class continues to provide excellent risk-
adjusted returns along with low correlations with other asset classes.
It is, however, not the best of short-term investment routes as it
requires a sufficient incubation period to fructify.

The demand story for the Indian real estate has reached an
intermission and not an end, feels Mr Puri. The market will find its
footing again. Lack of growth does not equal a setback — only a period
of stagnancy.

Advance Tax Numbers

  - ICICI Bank has paid Rs 340 crore Vs Rs 250 crore a year ago
   - SBI has paid Rs 663 crore Vs Rs 503 crore a year ago
   - IDBI Bank has paid mere Rs 10 crore Vs Rs 7 crore a year ago
   - Reliance Industries paid Rs 340 cr Vs 295 cr a year ago
   - Bajaj Auto paid Rs 50 cr Vs Rs 60 cr a year ago
   - HDFC's Advance Tax shot up by 40% to Rs 140 cr Vs Rs 95 cr
   - Tata Motors paid Rs 30 cr and Ambuja Cement Rs 100 cr

Reliance to Raise Crude Oil Imports From Saudi Arabia

 

June 17 (Bloomberg) -- Reliance Industries Ltd India's biggest company, is increasing crude oil imports from Saudi Arabia as it seeks to secure supplies because of rising demand for fuels in India and the rest of Asia.

Reliance, based in Mumbai, is boosting purchases by at least 90,000 barrels a day, accounting for 30 percent of Saudi Arabia's output increase of 300,000 barrels a day this month, P.M.S. Prasad president of the company's oil and gas business, said in a telephone interview.

The refiner, building a second oil refinery that would make it the world's largest by this year, stepped up imports after Saudi Arabia's Oil Minister Ali al-Naimi last month the kingdom is raising output to meet demand from customers.

Demand for fuels in the Middle East and Asia is forecast to rise 25 percent to 39 million barrels a day in 2015 from 2008, consultant FACTS Global Energy said today in a report.
 

``We have been assured of the additional barrels,'' Prasad said yesterday.

Reliance operates a 660,000 barrel-a-day refinery at Jamnagar in Gujarat, and would start operations at a 580,000 barrel-a-day plant under unit Reliance Petroleum Ltd. later
this year.

Refiners in Japan and South Korea are poised to increase crude oil imports in the coming months after annual plant maintenance peaked this month.

``There's an abundant supply of heavy crude but the Saudis are more savvy than others in marketing their crude,'' said Harry Tchilinguirian, senior oil market analyst at BNP Paribas SA. ``There's also a seasonal element to this as refiners return from maintenance.''

Heavy Crudes

Saudi Arabia, the world's biggest oil producer, and the most influential member of the Organization of Petroleum Exporting Countries, pumps a variety of light and heavy crudes. OPEC, which supplies about 40 percent of the world's oil, hasn't been able to rein in prices, which rose to a record $139.89 a barrel in New York yesterday.

Reliance Chairman Mukesh Ambani earns more compared with overseas rivals by processing cheaper, dirtier crude with high- sulfur content. His plant is located two days away by ship from the Middle East.

 

Reliance earned $15.50 from processing a barrel of oil into fuels in the quarter ended March 31, compared with $7 for a plant in Singapore, the company said April 21.

 

China, the world's biggest energy user after the U.S., has increased crude oil imports from Saudi Arabia 17 percent this year to almost 10 million tons as new refineries start operations, according to customs data.

 

 

The Old Man and the Ship - Nice One

A giant ship engine failed. The ship's owners tried one expert after another, but none of them could figure but how to fix the engine.

Then they brought in an old man who had been fixing ships since he was a young. He carried a large bag of tools with him, and when he arrived, he immediately went to work. He inspected the engine very carefully, top to bottom.

Two of the ship's owners were there, watching this man, hoping he would know what to do. After looking things over, the old man reached into his bag and pulled out a small hammer. He gently tapped something. Instantly, the engine lurched into life. He carefully put his hammer away. The engine was fixed!

A week later, the owners received a bill from the old man for ten thousand Rupees. 

 

"What?!" the owners exclaimed. "He hardly did anything!"

So they wrote the old man a note saying, "Please send us an itemized bill."
 

The man sent a bill that read: 

          Tapping with a hammer.... Rs 2.00
          Knowing where to tap  .... Rs 9, 998.00
 

Effort is important, but knowing where to make an effort makes all the difference!
 

 

contributed by: Gautam Shroff

PowerYourTrade Trading Calls

Trading Calls for 19 Jun 2008

VK Sharma Buy Ranbaxy Laboratories at around Rs 598.20 with a stoploss of Rs 590. This is a day trading recommendation. Buy Ranbaxy Laboratories at around Rs 598.20 with a stoploss of Rs 590. This is a day trading recommendation. DISCLAIMER. This document has been prepared by Anagram Stock broking Ltd. (Anagram), for use by the recipient only and not for circulation. The information and opinions contained in the document have been compiled from sources believed to be reliable. Anagram does not warrant its accuracy, completeness and correctness. This document is not, and should not be construed as, an offer to sell or solicitation to buy any securities. This document may not be reproduced, distributed or published, in whole or in part, by any recipient hereof for any purpose without prior permission from us. Anagram and the analyst(s), including his dependant family members may have an interest in the securities recommended above. To unsubscribe, send a mail to unsubscribechinta@gmail.com. Copyright in this document vests exclusively with Anagram Stock broking Limited.

		Mathew Easow Buy Suven Life Sciences only on declines with a stoploss of Rs 33 for a short term target of Rs 41 Buy Suven Life Sciences only on declines with a stoploss of Rs 33 for a short term target of Rs 41. Disclaimer: - At the time of writing this article, I, my family members and my group companies do not have any position in SUVEN LIFE SCIENCES LTD. This stock has been recommended to our clients and they may be holding long or short positions in this stock. Mathew Easow and matheweasow.com gives an unbiased and competent picture of trading opportunities and it does that to the best of its abilities. The information contained herein is not a complete analysis of every material fact representing the company, industry or security. The views expressed may change. However, prices can move up as well as down due to a number of factors, all of which are impossible for anyone to foresee. THEREFORE, Mathew Easow and matheweasow.com cannot accept any responsibility (or liability) for the accuracy of the above contents and also any investment decision or trading decision taken by readers and clients on the basis of information contained herein. Short Term Target Means – Approximately 3 –4 weeks. If the target is not met within 3-4 weeks then please exit the positions. Please follow stop losses very strictly and do not take positions where one is uncomfortable with the stop loss level. Above all Buy or Sell the stock only when the risk - reward ratio vis–a–vis the stop loss is favourable for taking a position. Individual traders /investors should book profit depending on their risk bearing capacity and need not wait for the targets.

 

Fertiliser cos await subsidy payment

NEW DELHI/MUMBAI: Fertiliser companies are still awaiting the
disbursement of subsidies to the tune of hundreds of crores for the
period between October 2007 and March 2008 even as climbing production
cost and constant prices of the key farm input is making matters worse
for the manufacturers.

"The subsidies/concessions due to the industry for the six month
period involves a substantial amount of funds. Of course, we welcome
the approval to the nutrient-based subsidy policy. But that shouldn't
take away the urgency for the government to disburse our dues,"
industry sources said.

The government had issued a notification regarding subsidy payment
about a fortnight ago, but payments have still not been made. While
the Cabinet committee on economic affairs approved the new nutrient-
based pricing policy on June 13, the subsidy policy for di-ammonium
phosphate (DAP), Muriate of Potash (MoP) and NPK fertilisers expired
on March 31, 2008.

High global prices for inputs and finished fertilisers have meant that
the fertiliser firms have had to borrow at high interest rates to fund
import in the absence of continuous flow of working capital to pay
their suppliers.
For example, the projected DAP requirement for the current kharif
season is 40-48 lakh MT, while domestic production is estimated to be
around 19-20 lakh MT.

To meet this imbalance, imports of 29 lakh MT have already been
contracted. However, only 17-18 lakh MT of DAP is expected to arrive
in time for use in this season, thereby leading to a shortage of 5-10
lakh MT, sources said.

The global price of DAP has also gone up substantially. The
international price has trebled from $430 per tonne last year to
$1,350 per tonne. Due to higher reliance on imports, the subsidy on
imported DAP alone works out to be over Rs 12,000 crore. According to
industry sources, imported DAP work out to over Rs 55,000 per tonne at
the point of distribution compared to prevailing imported DAP rate of
the Rs 13,182 per tonne rate fixed for February 2008.

The subsidy payment in the last four years has risen from Rs 15, 779
crore in 2004-05 to an estimated Rs 95,000 crore in 2008-09.

According to an Enam Securities report, the bonds issued to the
companies by the central government are also selling at significant
discount in the market. The cumulative loss to the industry on account
of selling these bonds in the market was more than Rs 100 crore in Q4
of FYO8, the report added.

Several companies have already asked the Centre to make up for losses
in order to ease the severe strain on the liquidity due to additional
borrowings on this count. Chambal Fertilisers, among the top gas-based
companies, recently joined others in petitioning the department of
fertilisers to reimburse it for losses incurred on account of bonds.
The company was issued Rs 383 crore worth of bonds but was unable to
sell them except at a huge discount.

Prior to the approval of the nutrient-based subsidy regime, subsidies
on fertilisers were entirely product-based and available only for
specific products such as urea, DAP, MoP and SSP. Other fertilisers
got no subsidy or had prices fixed with regard to their nutrient
content.

The subsidy bill could be contained over the mid and longer term,
thanks to the switch to a nutrient-based pricing. But for now, since
the Centre has kept the price of nitrogen, phosphates and potash
unchanged rather than increasing the price of urea and decreasing that
of phosphate, the subsidy bill is expected to remain significantly
high.

 

 

ISRO ties up with BrahMos aerospace unit

The BrahMos Aerospace unit here has signed an agreement with the
Indian Space Research Organisation (ISRO) for taking up engineering
and integration of the space agency's launch vehicles PSLV and
GSLV.

The Rs 25-crore pact involves work on ISRO's tankages, special
aluminium work and all titanium work, a senior BrahMos official said
here today.


The Brahmos facility will also take up space-tech related
infrastructure work for ISRO's future missions.

Brahmos Aerospace established its unit here early this year by taking
over the state-owned Kerala High-tech Industries Ltd (KELTEC).

Even when it was a state-run facility, the unit used to supply some
components and sub-assemblies to the ISRO as well as other central
scientific and defence agencies like the Defence Research and
Development Organisation (DRDO).

Inflation seen at 9.82 per cent on June 7

Mumbai, June 18: India's annual inflation rate is expected to have
jumped to 13-year highs near 10 percent in early June, powered by a
fuel price rise, a Reuters poll showed on Wednesday.

The wholesale price index is forecast to have risen to 9.82 percent in
the 12 months to June 7, which would be the highest since June 3,
1995, when annual inflation was at 9.89 percent.

The forecasts from 12 analysts ranged widely from 9.63 percent to
10.62 percent, and compared with an annual rise of 8.75 percent in the
previous week.

Four economists in the poll estimated the data, due around noon (0630
GMT) on Friday, to come in at above 10 percent, its first double-digit
reading since May 27, 1995.

It would be the 17th consecutive week that inflation rate has been
above 5.5 percent, the central bank's target by the end of the fiscal
year in March 2009.

India had raised state-set fuel prices by about 10 percent on June 4,
and the central bank last week raised its key lending rate for the
first time in more than a year to contain inflation expectations.

India's chief statistician, Pronab Sen, said on Tuesday that headline
inflation would hit double digits sometime in the coming weeks and was
likely to hover around 8 to 9 percent before declining in the last
quarter of 2008.

The wholesale price index is more closely watched than the consumer
price index (CPI) because it includes more products and is also
published weekly. The CPI is released monthly.

Sources : Financial Express

Dish TV Q4 net loss at Rs 115.06 cr

Mumbai, June 18: Zee group company Dish TV India on Wednesday
announced a net loss of Rs 115.06 crore for the quarter ended March
31, 2008, against a net loss of Rs 100.18 crore in the corresponding
quarter last year.

The total income rose to Rs 136.36 crore in the latest quarter, from
Rs 66.63 crore in the same period last year, Dish TV said in a filing
to the Bombay Stock Exchange.

For the year ended March 31, 2008, the group reported a consolidated
net loss of Rs 414.13 crore, compared to a net loss of Rs 240.07 crore
in the previous fiscal.

The total income rose to Rs 416.18 crore in FY'08 from Rs 196.24 crore
in the year-ago period.

The company announced a standalone net loss of Rs 413.20 crore in
FY'08 as against a net loss of Rs 251.88 crore in the year-ago
period.

The total income rose to Rs 415.72 crore in FY'08, from Rs 194.31
crore in the previous fiscal.

Further, the board has approved the raising of Rs 1,140 crore through
the rights issue.

Shares of Dish TV were trading at Rs 42.35, up 2.42 per cent in the
late afternoon trade on the BSE.

SEBI panel to look at MF regulations

MUMBAI: Chairman CB Bhave said Securities and Exchange Board of India
plans to set up an advisory committee on mutual funds in a month's
time, to understand the needs and problems of the industry and to see
if any regulatory changes are necessary.

Bhave said the committee would seek advice from participants for
betterment of the industry. He said the markets regulator had received
complaints from investors on problems faced at redemption and HR
related issues with regard to distributors.

The SEBI head was speaking at a CII organized conference on the mutual
fund industry.

Meanwhile, Association of Mutual Funds in India head AP Kurian sought
relaxation on PAN norms from the SEBI chief.

How House Rent Allowance is calculated?

Sandeep Shanbhag / DNA MONEY
Wednesday, 18 June , 2008, 09:02


As per my inbox, the most frequently asked question has to do with the
house rent allowance (HRA). Typically, the employee receives a certain
amount of HRA. He either already owns a flat or is about to buy one.

Consequently, he is concerned that on account of the ownership flat,
he may lose the HRA deduction. Or, the other way around — since he is
receiving HRA, the concern is that he may not be eligible for home
loan deductions.

This week, let us find out whether these fears are justified. However,
for that, we need to first understand how HRA actually works.

HRA is basically an allowance, which forms a part of one's taxable
salary. It is not mandatory for the employer to give HRA. But, if an
employer chooses to offer the allowance, one will receive it whether
or not he owns a house, pays EMI on the home loan, pays rent, or lives
with his parents.

In other words, the HRA, like the basic salary, is received every
month, regardless of one's personal situation.

However, the law also provides that if the employee satisfies certain
conditions, a deduction will be provided from the HRA received and
only the balance will be subject to tax. This deduction depends upon
the city one lives in and the amount of rent he pays. We shall discuss
this in detail a little later.

Let us first address the issue we started out with. What if you get
HRA and also own a house? Does this affect either the HRA deduction or
the home loan deductions?

The answer is no. HRA and home loan provisions are two different
issues as far as the Income Tax Act is concerned and one does not
influence the other. So, you may own a flat or any number of flats,
either in the same city that you work in or anywhere else in the whole
of India or for that matter abroad.

This will, in no way, influence the HRA deduction that you are
entitled to. Conversely, notwithstanding the amount of HRA that you
receive, your home loan deductions on the EMIs for the house you have
bought or intend to buy will not be affected.

Now, let's move on to understanding how much HRA deduction you would
be eligible for and the way to calculate it. As mentioned before, the
HRA is provided by the employer.

However, a deduction thereon is provided by the Income Tax Act,
subject to fulfilment of certain conditions.

The first and the foremost condition is that you have to be paying
rent. After all, that is what the allowance is meant for in the first
place. So, if you are one of the lucky few who do not have to pay rent
for the roof over your head, you don't get the deduction.

Note that it is not necessary for you to pay rent to a landlord. It is
possible that you live in your parents' house, in which case, you may
pay rent to your parents and consequently be eligible for the HRA
deduction.

In this case, the rent received will be taxable for your parents —
however, if their total income is below the taxable limit, the entire
transaction would be rendered tax-free.

As per the provisions of the Finance Act, 2008, Rs 2,25,000 is tax-
free for a senior citizen. Split between mom and dad, the total amount
of rent could be much as Rs 4,50,000 (Rs 2,25,000 x 2) without tax
incidence. So, you get your HRA deduction, they don't pay any tax and
everyone wins.

But, let me clarify that the same structure cannot be adopted in the
case of your spouse. Yes, it would be very convenient to pay rent to
the non-working spouse and thereby save a load of tax. But, if only
life were that simple! Husband and wife cannot charge each other rent
as they are supposed to live together under the same roof.

In other words, the relationship between husband and wife cannot be
commercial in nature.

The other factor that influences the HRA deduction is where you live.
If you live in a metro city, you would be eligible for a deduction of
up to 50% of your salary (basic plus DA, if applicable); otherwise,
the limit is 40%.

So, in a nutshell, the HRA deduction is the least of the following:

i. Actual HRA received,

ii. 50% of salary for employees living in metros and 40% otherwise,
and

iii. Excess of the rent paid over 10% of salary.

Say, Vikram earns a basic salary of Rs 35,000 per month and rents an
apartment in Mumbai for Rs 15,000 per month. The actual HRA he
receives is Rs 20,000. Vikram's HRA deduction will be the least of the
following three figures:

i. Actual HRA received, i.e. Rs 20,000,

ii. 50% of the salary, i.e. Rs 17,500, and

iii. Excess of rent paid over 10% of salary, i.e. Rs 15,000 - Rs 3,500
= Rs 11,500.

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Therefore, the net taxable HRA for Vikram would work out to Rs 20,000
(HRA received) less Rs 11,500 (HRA deduction available), which works
out to Rs 8,500.

Last but not the least, don't forget to maintain the rent receipts or
a copy of the lease agreement as this serves as proof of having paid
the rent.