Indian Union Budget 2010-11: Highlights

Union Finance Minister Pranab Mukherjee began presenting the Union Budget 2010-11 in the Lok Sabha today at 11 am. Here are the key highlights of the Budget: 

• Business sentiment weak at the time of last Budget      
• Averted crisis, Indian economy far better situation      
• Southwest monsoon undermined kharif crop      
• Short-term global outlook bleak during FY10 Budget      
• First challenge is to quickly revert to high GDP growth     
• Confident now economy in far better position      
• GDP growth hitting double-digit remains 1st challenge      
• Thrust for infrastructure in rural areas      
• Budget cannot be a mere statement of government account      
• First challenge is to return to high GDP growth of 9%      
• Second challenge is to make development more inclusive     
• Budget will also signal policy for future      
• State of the economy better       
• FY10 was a challenging year for the economy      
• Budget realises the need to strengthen food security      
• Some sectors have helped improve economic condition      
• Focus of economic activity shifted to non-govt factors      
• Govt must enable enterprise      
• Economy can achieve 10% GDP growth, says FM      
• Focus to improve food security and healthcare systems     
• Focus on development of infrastructure in rural and urban areas likely       
• FM indicates review of stimulus is now important

Source moneycontrol

Highlights of Indian Economic Survey 2010

The highlights of Economic Survey for 2009-10 (Apr-Mar) tabled by the government in Parliament:

GROWTH

* Indian economy seen growing 8.25-8.75% in 2010-11
* Economy expected to return to 9% growth in medium-term
* India FY11 growth seen 100 bps more than FY10
* Medium-term prospects of economic growth "really strong"
* India could be fastest growing economy in next 4 yrs
* Expect GDP growth to breach 9% mark in 2011-12
* Risk of second-dip recession in advanced nations
* India seems to be returning to pre-crisis growth rates
* India medium-, long-term growth prospects excellent
* No reason why India can't achieve double-digit growth

INFLATION

* See signs that food, fuel inflation spreading to other items
* Concern of higher than expected inflation in coming months
* Rapidly rising food inflation cause for concern
* Poor rain prevented seasonal food price fall post Oct
* Hype about kharif failure exacerbated WPI expectation

ECONOMY, FISCAL SCENARIO

* Transmission of monetary policy remains sluggish
* Higher government borrowing raised banks' SLR investments
* Saving, investment rate good for medium-term growth
* Savings rate expected to rise further
* Govt should promote transparency in commodity futures
* Impact of current subsidy system questionable


BANKING

* Growth in bank credit remained low in FY10
* Public sector banks better than private banks in credit growth
* Growth in food credit low so far in FY10
* Need more transparency in micro-finance functioning
* Computerisation of banking sector in completion stage
* Rise in risk appetite increased capital flows in 2009

FINANCIAL INSTITUTIONS

* Need to extend NPS to central, state autonomous bodies
* Pension reforms made significant progress in India
* Challenge to expand distribution network of NPS
* Pension reforms to facilitate long-term savings
* Interdependence of corporate, MFs raising concern

MARKETS

* Govt intervention in markets should be minimal
* Govt shouldn't impose outright commodity futures ban
* Equity market showed signs of recovery after Apr
* Regulatory steps taken to make market sound, stable
* Seen revival in secondary market following stimulus
* Volumes in currency futures on BSE not significant
* Trading volumes in interest rate futures low
* Retail investor participation limited in corporate debt market
* Retail investor participation limited in mutual funds

FOOD PRICES

* Food subsidy must be given directly to households
* Food coupons must replace existing PDS system
* Must identify poor for effective food coupon system
* Possible to switch to food coupons system by 2012

AGRICULTURE

* Agriculture sector continues to be cause of concern
* Need policy initiatives to raise farm growth to 4%
* FCI should be allowed to keep flexible buffer norms
* Need to improve govt strategy for food releases
* Govt shouldn't have any dealing with fertiliser companies
* Fertiliser companies should be allowed pricing freedom
* Provide fertiliser subsidy directly to farmers
* Introduce coupon system to subsidise fertilisers

Source BloombergUTV

Gold falls further on weak global trend, selling pressure

Gold fell further by Rs 90 to Rs 16,850 per ten grams on the bullion market here on Wednesday due to heavy selling pressure induced by weak global cues.

Standard gold and ornaments declined by Rs 90 each to Rs 16,850 and Rs 16,700 per ten grams, respectively. They had lost Rs 140 each yesterday. However, sovereign remained steady at its last rate of Rs 14,000 per eight-gram piece.

Gold has dropped 0.7 per cent to USD 1,095.32 an ounce in London today.

Marketmen said selling pressure, in line with the precious metal dipping below the psychological USD-1,100 level globally, led to a fall in the prices of both gold and silver in the domestic market.

Retail customers remaining on the sidelines on hopes of more correction in gold prices also influenced the trading sentiment, they added.

In line with the general trend, silver ready plunged by Rs 400 to Rs 25,200 per kg while, weekly-based delivery lost Rs 485 to Rs 24,840 per kg.

Silver coins declined by Rs 100 to Rs 33,300 for buying and Rs 33,400 for selling of 100 pieces.

Indian stock markets closing Details [ 24 - Feb - 2010 ]

The Nifty closed flat ahead of F&O expiry. The February 2010 futures and options (F&O) contracts will expire tomorrow. Mamata Banerjee's Rail Budget, which was high on both populism and vision, couldn't provide momentum to the markets. The Nifty traded in a narrow range of 4850-4870 for most part of the day

The Sensex closed down 30.35 points or 0.19% at 16255.97, and the Nifty ended down 11.45 points or 0.24% at 4858.60.

The markets breadth was negative, about 986 shares advanced, 1917 shares declined, and 271 shares unchanged.

Top Gainers from BSE group A companies

Power Finance Co	243.70	+5.34
Divi's Lab	609.60	+4.90
Rural Electrific	223.00	+4.87
Indiabulls Real Esta	161.20	+4.30
GlaxoSmithKlineConsu	1430.30	+3.80

Top Losers from BSE group A companies

Central Bank	149.60	-4.86
KSK Energy Ventures	172.70	-4.35
Guj. NRE Coke	73.60	-3.98
Rashtriya Chemicals	90.25	-3.37
EIH Ltd.	120.60	-3.37

Indian Rail Budget 2010

Indian Railway Minister Mamata Banerjee presented the Railway Budget in Parliament today. Banerjee has chalked out a ambitious plan with an aim to raise Rs 10,000-20,000 crore in FY11 and promised to introduce a 10-year a plan "Vision 2020".

A point to note, however, is that the second Railway Budget is being announced amidst accusations that promises made last year have not yet been achieved.

Key highlights:

- To come out with 10-year plan 'Vision 2020'
- Limited funds available constraint for line addition
- See 890 million tonne freight loading during FY10
- To beat FY10 freight target by 8 million tonne
- FY10 revised estimate on gross earning at Rs 88,200 crore
- Rs 6,490 crore net revenue revised estimate for FY10
- Non-core business revenue seen at Rs 1,000 crore
- Impact of 6th Pay Commission at Rs 55,000 crore
- Plan to raise Rs 10,000-20,000 crore in FY11
- FY11 freight loading aim at 944 million tonne
- FY11 gross traffic receipts at Rs 94,800 crore
- FY11 plan outlay seen at Rs 41,426 crore
- FY11 working spend seen at Rs 87,100 crore
- See FY11 dividend liability at Rs 6,600 crore
- FY11 operating ratio seen at 93.2%
- FY11 new line allocation cost at Rs 4,400 crore
- FY11 gross budgetary support seen at Rs 15,800 crore
- To borrow Rs 9,120 crore this fiscal

Source MoneyControl

Sensex ends with marginal gains, Indian stock markets closing Details [ 23 - Feb - 2010 ]

Quiet global cues and anticipation on the railway budget tomorrow (Union budget on Friday) saw the market edgy as it traded dull and lackluster. Experts feel the market is trading in a narrow range and is likely to take a directional call once the budget is out of the way. The market closed in the positive today

The Sensex closed up 49.27 points or 0.30% at 16286.32. It touched an intraday high of 16,324.93 and an intra day low of 16,178.91.

The Nifty ended up 13.65 points or 0.28% at 4870.05. It touched an intraday high of 4,884.10 and an intra day low of 4,833.15.

The markets breadth was negative, about 906 shares advanced, 1996 shares declined, and 270 shares unchanged.

Top Gainers from BSE group A companies

Bajaj Holdings & Inv	588.90	+3.94
KSK Energy Ventures	180.55	+3.91
Sesa Goa	377.85	+3.31
Cadila Healthcar	737.75	+3.04
United Phosphorus	159.70	+2.37

Top Losers from BSE group A companies

Rashtriya Chemicals	93.40	-5.03
Educomp Solutions	684.00	-4.90
Jet Airways	432.15	-4.02
Bajaj Auto Ltd.	1725.05	-3.93
Chambal Fertilis	62.10	-3.57

Maruti recalls 1 lakh A-star cars

Maruti Suzuki has recalled 1 lakh A-star hatchback cars to replace faulty fuel pump gaskets.

Japan-based Suzuki Motor is the majority shareholder in Maruti Suzuki.

Toyota Motor, the world's largest car maker, is facing turmoil due to recalls based on complaints in the US and other parts of the world...

A statement from Maruti said the recalls started in November, and half of the faulty fuel pump gaskets have been replaced...

Source BloombergUTV

Govt delays mobile number portability by 2 mths

India has delayed by two months the introduction of mobile number portability to end-May, the telecoms minister said on Monday.

"It has been delayed by two months because of security reasons," Andimuthu Raja told reporters.

MNP allows customers to switch operators while retaining the mobile number. The service is expected to be available at a nominal charge.

Last week, the minister had spoken on the occasion of launching of 3G service in Bangalore. "For various reasons, we have not been able to get security clearance for the imported devices for mobile number portability. But the problem will be resolved and MNP will be introduced in Chennai and Bangalore for the first time," he had said.
Source MoneyControl

Indian stock markets closing Details [ 22 - Feb - 2010 ]

The  BSE Sensex closed at 16,237.05, up 45.42 points or 0.28% and the Nifty rose 0.24% or 11.50 points to settle at 4,856.40. However, the broader indices underperformed the benchmark indices; the BSE Midcap Index was down 0.6% and the Smallcap was down 1%.
Top Gainers from BSE group A companies

Shree Renuka Sugars	186.55	+3.70
Hindalco Indus.	153.65	+2.60
Oriental Bank of	270.20	+2.50
Hind. Petrol	362.65	+2.30
Cadila Healthcar	716.00	+2.14

Top Losers from BSE group A companies

Chambal Fertilis	64.40	-5.64
Hind. Copper	534.15	-4.90
Rashtriya Chemicals	98.35	-4.75
Guj. Mineral Dev	140.00	-4.31
KSK Energy Ventures	173.75	-4.19

Gold and Silver prices Strong

MCX Gold for April started strong at Rs 16,861 per 10 gram on increased buying activity. It has since retreated to trade at Rs 16,835 per 10 grams.

MCX Silver March settlement contract traded 0.5% higher at Rs 25,639 per kg, after having opened the session at Rs 25,586

Source BloombergUTV

Gold rose to its highest in a month

Gold rose to its highest in a month as the US dollar took a breather from a recent rally and the euro gained on talk about a quick bailout.

Spot gold hit an intraday high of $1,130.65 an ounce and was quoted at $1,123.65, up $6.05 from New York's notional close on Friday. US gold futures for April delivery added $9.0 an ounce to $1,131.1 an ounce on Friday.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust, said its holdings stood at 1,107.60 tonnes as of February 19, down 1.83 tonnes from the previous business day.

Noncommercial net long gold futures positions rose to 188,858 contracts in the week ended February 16 from 181,519 contracts a week earlier, according to the weekly Commitments of Traders report published by the Commodity Futures Trading Commission. It was the first increase in a month.

Source BloombergUTV

Fighting food inflation govt's priority

The government today said providing relief to 'aam admi' from higher food prices will remain its top priority and expressed confidence the economy would grow by 7.5% in 2009-10 and at an even higher pace of 8 per cent in the coming fiscal.

"My government continues to accord the highest importance to ensuring relief to the aam admi on food prices..." President Pratibha Patil said in her address to the joint session of Parliament.

Attributing rising food prices to shortfall in domestic production and high prices of rice, cereals and edible oils in the international market, President said, "My government is committed to bringing forth a legislation to ensure food security."

The country's food inflation touched a decade's high of about 20 per cent in December before moderating to around 18% in February.

As regards the economy, the growth in the current fiscal was likely to be 7.5% against 6.7% a year ago she said on the opening day of the Budget session.

Source BoolmbergUTV

Oil trades near five week high

Crude oil traded near a five-week high on speculation energy demand
will increase as the global economy recovers from its worst recession
since World War II.

Global consumption may increase by as much
as 1.4 million barrels a day in the second half, Iran’s OPEC governor
Mohammad Ali Khatibi said in an interview on the Shana Web site
yesterday. Prices pared early gains as the dollar traded little changed
after posting its sixth straight weekly increase against the euro, the
longest streak since 2000.

“That growth story suggests that oil
prices will continue to firm as the global economy recovers,” said Toby
Hassall, research analyst with CWA Global Markets Pty in Sydney. “But
that firming dollar, if it does continue, that will keep prices fairly
well in check.”

Crude oil for March delivery rose as much as 30
cents, or 0.4%, to $80.11 a barrel in after-hours electronic trading on
the New York Mercantile Exchange. It was at $80.06 at 7:55 a.m. in
Singapore.

The contract, which expires today, rose 0.9% to
$79.81 on Feb. 19, the highest settlement since Jan. 12. The more
actively traded April contract rose 31 cents to $80.37 today.

Oil
prices climbed 7.7% last week, the biggest gain since October, as US
refiners lifted operating rates for a second week and the Federal
Reserve increased its discount rate for the first time in three years
amid signs of recovery in the nation’s economy.

Gold and Silver Price in India

MCX Gold for April opened lower and went to extend losses further.
After a weak start, the contract slid to Rs 16,617 per 10 gram on
increased buying interest. It has since recovered to trade at Rs 16,627
per 10 grams.

MCX Silver March settlement contract traded 1.2% lower at Rs 25,024 per kg, after having opened the session at Rs 25,208.

Gold and US bullion futures dropped more than 1% on raising the interest rate

Spot gold and US bullion futures dropped more than 1% this morning as the US dollar gained after the Federal Reserve said it was raising the interest rate charged to banks for emergency loans.

Spot gold hit an intraday low of $1,098.55 an ounce, before retreating to current level of $1,105.10 ounce, down over 1% compared with New York’s notional close of $1,117.70.

Comex April gold futures slipped below $1,100 an ounce in active trade. The contract was last trading below $1,105.90 per ounce.

Gold was on the decline since the International Monetary Fund said on Wednesday that it would sell part of gold in the open market under a programme launched last year to boost its resources.

The world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, said its holdings stood steady at 1,109.42 tonnes as of February 17 from the previous day.

Oil down to $78.05/bbl

Last night, the US Federal Reserve decided to raise discount rate by 25 basis points to 0.75% has had adverse impact on financial markets, particularly the equities and commodities.

The Fed’s decision helped US dollar to strengthen against basket of currencies and in the process pressure crude oil prices, gold and other industrial commodities which are traded in the currency.

US crude oil futures eased near $78 on Friday after the US Federal Reserve announced it was raising the interest rate it charges banks for emergency loans.

NYMEX crude for March delivery was down $1.01 cents at $78.05 a barrel after the Fed said it was raising the discount rate to 0.75% from 0.50%, citing improvement in financial market conditions.

On Thursday, oil prices rose $1.73 to $79.06, the highest settlement since January 14, after a government report showed a drop in US distillate supplies and on concerns OPEC-member may be working to develop a nuclear-armed missile.

US distillate inventories fell by 2.9 million barrelslast week, weekly data from the U.S. Energy Information Administration showed on Wednesday, nearly double the 1.5 million barrel draw forecast by analysts.

Dollar rises as Fed lifts Discount Rate

The dollar strengthened and stocks snapped a four-day rally after the US Federal Reserve raised the discount rate, its clearest signal yet that the central bank is ready to reverse emergency stimulus.

The Fed yesterday raised the rate charged to banks for direct loans by a quarter-point, the first such increase since June 2006. Policy makers around the world are weighing how to withdraw measures to aid economies, which have caused deficits to swell, without derailing the recovery. Shares in Europe pared losses, helped by Nestle SA's forecast that sales growth will accelerate.

The Fed's decision is "a shot across the bow," Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York, said in an e-mailed note. "In the grand scheme of things, the Fed is moving back to doing business as normal."

Indian stock markets closing Details [ 19 - Feb - 2010 ]

Our market had a volatile session - opened gap down, recovered and then closed at the day's low today.
 Sensex shut shop at 16191, down 136 points and Nifty is at 4844, down 42 points from the previous close.
CNX Midcap index was down 1.41% and BSE Smallcap index was down 1.69%.
The market breadth was negative with advances at 264 against declines of 1015 on the NSE.

Top Gainers from BSE group A companies

GlaxoSmithKline Phar	1649.65	+4.30
Financial Technolog.	1497.30	+2.25
Educomp Solutions	708.50	+1.88
Godrej Consumer Prod	260.05	+1.38
Hind. Petrol	354.50	+1.33

Top Losers from BSE group A companies

Indiabulls Real Esta	154.90	-6.21
GVK Power & Infrastr	42.00	-4.76
Nagarjuna Constr	152.90	-4.62
Lanco Infratech Ltd.	47.15	-4.55
Chambal Fertilis	68.25	-4.48

Label  Sensex Nifty Levels

GDP may grow 7.2% in FY10: PM Eco Panel

The economy may expand 7.2% in the year ending March 31, and growth may accelerate to 8.2% next year and 9% the following year, the Prime Minister's economic advisory panel said in a report in New Delhi.

Low farm and power output are constraining growth, the report said.

Source BloombergUTV

Label: Indian GDP,indian  Economy

Indian stock markets closing Details [ 18 - Feb - 2010 ]

After seeing 2.4% rally in the last two days, the benchmark Sensex witnessed profit booking today. The index closed over 100 points lower while the Nifty slipped below the 4900 mark.
Sensex shut shop at 16327, down 101 points and Nifty is at 4887, down 26 points from the previous close. CNX Midcap index was down 0.40% and BSE Smallcap index was down 0.66%. The market breadth was negative with advances at 433 against declines of 834 on the NSE.
Top Gainers from BSE group A companies

Bharat Petroleum	590.60	+4.69
Apollo Hospitals	690.70	+4.62
Tata Chemicals	299.80	+4.51
IDFC	154.90	+3.65
Axis Bank Ltd.	1100.80	+3.11

Top Losers from BSE group A companies

Castrol India	654.00	-8.08
Indiabulls Real Esta	165.15	-5.66
Unitech Ltd.	71.10	-4.63
Shree Renuka Sugars	184.15	-4.59
Balrampur Chini	111.30	-4.26

Food inflation rises to 17.97%

Food price inflation climbed to the highest level in six weeks, underscoring Finance Minister Pranab Mukherjee's challenge before next week's Budget.

An index measuring wholesale prices of lentils, rice, vegetables and other food articles compiled by the commerce ministry increased 17.97% in the week ended February 6 from a year earlier after a 17.94% gain the previous week, according to a statement in New Delhi today.

Mukherjee yesterday described the spurt in inflation as "disturbing" prompting economists to speculate he will raise taxes on cars, refrigerators and cement in the February 26 Budget to prevent excessive consumer demand from adding to price gains..

Source BoolbergUTV

Gold prices near two-week High

Gold prices steadied near two-week highs this morning after rallying on a rise in the euro the day before, with worries about fiscal problems bolstering bullion's allure as a safe haven.

Spot gold quoting almost flat at $1,117.60 an ounce, compared with New York 's notional close of $1,118.95. Spot gold rallied to two-week highs on Tuesday as the euro recovered from recent hefty losses against the dollar and investors snapped up gold to hedge against debt default risks in Europe.

US gold futures for April delivery was trading flat at $1,119.90 an ounce, compared with $1,119.80 an ounce on the COMEX division of the New York Mercantile Exchange.
Futures ended up $29.80 on Tuesday at their highest settlement level since January 19.

The world's largest gold-backed exchange-traded fund, SPDR Gold Trust said its holdings rose 3.05 tonnes from the previous business day to 1,109.42 tonnes as of February 16. It was the first increase in holdings since Feb. 5.


Source BloombergUTV

Oil above $77/bbl

US crude oil futures edged higher above $77 a barrel, but trading volumes were light as market players awaited a slew of statistics due later in the day for further price direction.

NYMEX crude for March delivery was up 26 cents at $77.27 a barrel, after settling up $2.88 on Tuesday when prices got a boost from a weaker US dollar, stronger equities, and growing tensions over sanctions against.

Source BloombergUTV

Sugar output in UP may increase

Sugar production in Uttar Pradesh, India's biggest grower, may gain this year because of higher cane yields, helping ease a global deficit that drove prices to near a three-decade high, a producers' group said.

Output may be 4.2 million metric tons in the crop year that started Oct. 1, up from 4.05 million tons last year, said Shyam Lal Gupta, secretary general of the Uttar Pradesh Sugar Mills Association. Production may climb at least 20% in the 2010-2011 season as plantings increase 30%, he said.

India is buying sugar for a second year to meet a deficit forecast at 7 million tons by Kingsman SA after a drought last year forced farmers to plant less cane. Global demand will top supply by 14.8 million tons this season, more than 13.5 million tons forecast previously, Czarnikow Group Ltd. said yesterday.

"Mills in Uttar Pradesh will certainly make up for the shortfall as cane yields are higher and recovery is improving," Gupta said in a phone interview from New Delhi. "Production will substantially improve next year as farmers are planting more area to the crop."

Production was 3.45 million tons in the Oct. 1 to Feb. 15 period, 1.7% less from a year earlier after a cane-price dispute delayed the start to the season, Gupta said.

Source & Full Article BloombergUTV

Indian stock markets closing Details [ 17 - Feb - 2010 ]

Positive global cues helped our market look good today. It was a firm session with good volumes
The  Sensex closed at 16428.91, up 202.23 points or 1.25% and the Nifty went up 58.25 points or 1.2% to 4914. The broader indices were also up 0.6-0.8% and advance:decline ratio was 2:1.

Top Gainers from BSE group A companies

Videocon Industries	237.45	+8.67
Godrej Industries Lt	160.40	+8.20
Mundra Port & Specia	683.15	+7.35
Tata Steel	584.90	+6.37
Aban Offshore Ltd.	1273.25	+5.34

Top Losers from BSE group A companies

Indiabulls Real Esta	175.05	-3.29
Bharat Forge Ltd	251.25	-2.16
CESC Ltd.	387.00	-1.93
NMDC Ltd.	480.55	-1.73
Jain Irrigation	859.60	-1.56

Labe SENSEX & NIFTY LEVELS

Jan wholesale price inflation @ 8.56%

The benchmark inflation based on the wholesale price index climbed to 8.56% in January, following the figure of 7.31% in December, the commerce ministry said in New Delhi today.

QUICKTAKES

Jan WPI for all commodities up 0.8% (MoM)
Jan WPI for fuel group up 1.8% (MoM)
Jan WPI for primary articles up 0.2% (MoM)
Jan WPI for manufactured products up 0.7% (MoM)
November inflation rate revised to 5.55% from 4.78%

Source Bloomberg UTV

Oil trades near $74 after falling

Oil traded near $74 a barrel after declining as a Department of Energy report showed a bigger- than-forecast increase in US crude inventories and as China sought to cool its economic expansion.

Oil dropped Feb. 12 as China ordered banks to set aside more deposits as reserves for the second time in a month. The euro region's gross domestic product grew less than forecast in the fourth quarter of last year, a report showed last week. Japan's economic growth accelerated more than expected last quarter, figures from the Cabinet Office showed today.

"Further steps taken by the Chinese to tighten their bank lending and slightly weaker-than-expected European growth data were a negative for sentiment," said Toby Hassall, commodity analyst at CWA Global Markets Pty in Sydney. "The DOE data wasn't supportive of higher prices. The crude number was a bit higher than expected."

Crude oil for March delivery traded at $74.18 a barrel, up 5 cents, in electronic trading on the New York Mercantile Exchange at 12:11 p.m. Sydney time. The contract fell $1.15, or 1.5%, to settle at $74.13 on Feb. 12. Futures have dropped 6.4% this year.

The Department of Energy report was delayed for two days to Feb. 12 because of back-to-back blizzards which shut the government in Washington for the first four days of last week.

Source & Full Article BloombergUTV

Dollar rises against euro on Greek woes

The euro dropped against the dollar amid concern Greece's debt problems will undermine the region's economic recovery.

The 16-nation euro last week touched an eight-month low versus the greenback ahead of a two-day meeting of European Union finance ministers beginning today that may provide details of a Greece bailout. The dollar may climb for a second day against the yen before a report tomorrow forecast to show manufacturing in the New York region expanded, adding to signs that the world's largest economy is on the mend.

The euro fell to $1.3623 as of 8:55 a.m. in Tokyo from $1.3632 in New York on Feb. 12 when it reached $1.3532, the lowest since May 19. The euro was at 122.65 yen from 122.62 yen in New York. The dollar traded at 90.05 yen from 89.96 yen on Feb. 12.

Source BloombergUTV

Bharti confirms talks with Zain

Bharti Airtel has confirmed talks with Zain Telecom to buy the latter's African assets for $10.7 billion.

Bharti has said it is going to hold exclusive talks with Zain until March 25. However, the company did not provide any assurance whether the deal will be comsummated.

Bharti: Bid for Zain Africa

Bharti offering $10.7 bn for most African assets of Zain
Zain's African assets do not involve Sudan and Morocco
Bharti  may begin due diligence on deal as soon as today
Bharti has exclusivity until the end of March
The board of Zain, Kuwait's mobile telecom, accepted the offer
This is the third attempt by Bharti to enter Africa
Zain's main shareholder is the Kharafi Group
Zain has previously attempted to sell the group and some have failed

Valuation

At $10.7 bn, Bharti would be paying $250 for Zain African subscribers
Vodafone paid $720 per subscriber for controlling stake in Hutch Essar

Valuation Matrix: EV/Subscriber
Zain African Assets  : $250
Bharti                 : $221
Idea                   : $77.64
RCom                 : $159.85

Benefit of the deal
Access to the fast growing market with low penetration level
Boosting Bharti brand overseas
Bharti's reach will increase to 20 countries from 5 countries at present
Combined subscriber base will be 164 mn, making it the 7th largest in the world

Other suitors
France's Vivendi walked away from buying Zain African assets in July
Vivendi said purchase didn't fit usual criteria of profitability and financial discipline
Millicom Int also said it would be interested in some of Zain assets

Coveted assets
Zain bought Celtel Int for $3.4 bn in 2005 to expand into 13 African countries
Co has more than 40 million subscribers in Africa, about 62% of its client base
More than half of $7.4 bn of annual sales in 2008 from Africa

Source BloombergUTV

IIP for December at 16.8%

The Industrial Production numbers for December came in at 16.8%. A Bloomberg Poll of economists have pegged IIP to come in at 12.3%.

Industrial Production which measures industrial activity grew by 11.7% in November 2009.

Highlights
Manufacturing sector grew 18.5% in Dec (YoY)
Mining sector grew 9.5% in Dec (YoY)
Electricity sector grew 5.4% in Dec (YoY)
IIP growth for November revised to 11.81% from 11.7%
IIP growth for April -Dec period at 8.6% (YoY)
Consumer Durables grew 46% in Dec (YoY)
Basic goods output grew 7.5% in Dec (YoY)
Source BloombergUTV

Oil falls on dollar's gain

Crude oil fell in New York for the first day in five as the dollar extended gains against the euro and analysts forecast an increase in U.S. stockpiles, signaling weak demand in the biggest energy-consuming nation.

Oil slipped below $75 a barrel after the dollar strengthened on speculation the European Union will fail to take sufficient measures to help Greece tackle its fiscal deficit, damping the investment appeal of commodities. A weekly Energy Department report today may show crude and gasoline supplies increased last week, according to a Bloomberg News survey.

Crude oil for March delivery fell as much as 43 cents, or 0.6%, to $74.85 a barrel in electronic trading on the New York Mercantile Exchange. It was at $74.94 at 11:03 a.m. Singapore time. Yesterday, the contract rose 1% to settle at $75.28. Futures have gained 5.2% this week, poised for the first weekly gain in five.

The 16-nation euro dropped to near a one-week low against the dollar after the European Union stopped short of offering concrete steps to help Greece. The U.S. currency traded at $1.3670 per euro at 10:50 a.m. in Singapore from $1.3693 yesterday in New York.
Source BloombergUTV

Sensex ends 230 pts higher on global cues , Indian stock markets closing Details [ 11 - Feb - 2010 ]

Global cues remained positive today on hopes of likely bailout plan for Greece.
The  Sensex closed at 16,152.59, up 230.42 points or 1.45% and the  Nifty rose 69.65 points or 1.46% to 4826.85. Indices gained 1.4% this week. The benchmark indices outperformed the broader indices; the BSE Midcap and Smallcap indices gained 0.8% each.


Top Gainers from BSE group A companies

Shree Renuka Sugars	185.70	+6.08
Fortis Healthcare	151.85	+5.75
Jain Irrigation	774.60	+5.39
Financial Technolog.	1520.70	+4.83
Hero Honda Motor	1690.20	+4.13

Top Losers from BSE group A companies

Rural Electrific	222.75	-3.30
Power Finance Co	241.85	-2.18
Glenmark Pharma	256.35	-1.95
Voltas Ltd.	159.80	-1.84
Asian Paints Ltd.	1945.05	-1.77

Food inflation inches toward 18%

Food-price inflation accelerated for the fourth straight week, adding pressure on Finance Minister Pranab Mukherjee to maintain tax-free imports of crude edible oil and wheat.

An index measuring wholesale prices of lentils, rice, vegetables and other food articles compiled by the commerce ministry increased 17.94 percent in the week to Jan. 30 from a year earlier after a 17.56 percent gain the previous week, according to a statement in New Delhi today.

Mukherjee may keep import taxes on wheat, pulses and other food items at near zero in the budget on Feb. 26 to boost supplies, analysts said. The biggest challenge for policy makers is to slow inflation to an "acceptable level" of 4 percent to 5 percent, Chakravarthy Rangarajan, the top economic adviser to Prime Minister Manmohan Singh, told Bloomberg News this week.

"Curbing food inflation will be high on the agenda in the budget," said Shubhada Rao, chief economist at Yes Bank in Mumbai. "They may also partially roll back excise duties to tone down demand to more realistic levels."

Source BloombergUTV

Crude oil climbs a fourth day

Crude oil rose for a fourth day in New York after the U.S. Energy Department increased its forecast for global oil consumption this year.

Oil climbed as the department raised its demand projection to 85.3 million barrels a day from 85.18 million, according to its monthly Short-Term Energy Outlook. Prices also gained on prospects that Germany and France will help Greece overcome its crippling budget deficit.

"Oil rose after a bullish outlook" from the department, said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. "There are definitely more optimistic signs that Greece will be bailed out."

Crude oil for March delivery gained as much as 36 cents, or 0.5%, to $74.88 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $74.87 at 12:15 p.m. in Sydney. Yesterday, it rose 77 cents to settle at $74.52.

The Organization of Petroleum Exporting Countries yesterday also increased its forecast for the amount of crude its members may be called on to supply in 2010, by 150,000 barrels a day.

Source BloomvbergUTV

Gold price in India [10 Feb 2010]

Gold BeeS ( ETF ) - Rs 1602.87

Gold futures price in Indian commodity markets for near expiry.

MCX     -   16329.00

NCDEX  -  16101.00

ICEX      -  16318.00

Lables Gold Price in India

Deora wants Rs 3.5 petrol price hike

Oil minister Murli Deora recommends a Rs 3.5 hike in petrol prices and a Re 1 hike in diesel price to the cabinet.

The cabinet is set to take the Kirit Parikh recommendations on petro-pricing tomorrow.

The committee had recommended an across-the-board decontrol of fuel prices. It asked the government to raise petrol and diesel prices by Rs 3.

Source BloombergUTV

Sensex ends 120 pts down, Indian stock markets closing Details [ 10 - Feb - 2010 ]

The  Sensex closed at 15,922.17, down 120.01 points or 0.75% and the  NSE Nifty fell 0.74% or 35.45 points to settle at 4,757.20. The broader indices also erased all gains and ended flat, as about 1337 shares advanced while 1527 shares declined on the BSE. Nearly 289 shares remained unchanged.

Top Gainers from BSE group A companies

REI Agro Ltd.	52.00	+7.22
GlaxoSmithKlineConsu	1409.05	+7.15
Indiabulls Real Esta	176.40	+5.22
IRB Infrastructure D	254.70	+4.71
Voltas Ltd.	162.80	+3.86

Top Losers from BSE group A companies

Sun TV Network Ltd.	370.10	-8.44
Chambal Fertilis	68.85	-4.84
Shree Renuka Sugars	175.05	-3.47
Mahi. & Mahi	956.90	-3.42
Hind. Zinc	1,043.15	-3.42

Gold declines , Silver rose

Gold for immediate delivery fell as much as 0.2% to $1,075.53 an ounce after trading little changed earlier.

Gold for immediate delivery was little changed at $1,077.60 an ounce at 8:25 a.m. in Singapore. The metal fell to $1,044.85 an ounce on Feb. 5, its lowest since Nov. 2. The dollar declined yesterday amid speculation European officials will agree to assist Greece in tackling its fiscal deficit.

Silver rose 0.4%to $15.505 an ounce, platinum and palladium were little changed at $1,503.25 an ounce and $419.25 an ounce respectively.

The dollar  fell as much as 0.9%against a basket of six major currencies yesterday. EU leaders are scheduled to meet on Feb. 11 to discuss the economic outlook, a summit that may be overshadowed by Greece's budget difficulties.

SBI sees rates rising only by June-July

The country's largest lender State Bank of India today hinted that lending rates may rise from the second quarter of fiscal 2010-11, even though there is no immediate pressure on interest rates.

"So far as bank lending rates are concerned, I do not expect lending rates going up before May-June," SBI Chairman O P Bhatt told reporters.

He said money supply is under pressure, but interest rates will remain stable in immediate future.

"(There is) pressure on liquidity, but no immediate pressure on interest rates," Bhatt said.

In its monetary review recently, the RBI asked banks to keep more cash with it, which will shrink money supply by Rs 36,000 crore from the system.

The apex bank's move to hike Cash Reserve Ratio (CRR), portion of deposits banks kept in cash with the central bank, by 75 basis points to 5.75 per cent will come into effect from February 13 in two tranches.

Source BloombergUTV

Indian stock markets closing Details [ 09 - Feb - 2010 ]

The Sensex closed at 16,042.18, up 106.57 points or0.67% and the Nifty rose 0.68% or 32.25 points to settle at 4,792.65.
The broader indices also ended higher; the BSE Midcap and Smallcap indices gained 0.44% each.
Technology and cement stocks were the star performers.

Top Gainers from BSE group A companies

Hind. Copper	582.65	+9.52
NMDC Ltd.	490.70	+8.91
Lanco Infratech Ltd.	49.20	+7.19
Nestle India	2,795.15	+5.88
Financial Technolog.	1,474.65	+5.11

Top Losers from BSE group A companies

Guj. NRE Coke	67.10	-5.69
PetronetLNG	71.50	-3.12
IndiabullsFinService	101.85	-2.54
Tata Communications	300.80	-2.43
Indiabulls Real Esta	167.65	-2.39

Lables: SENSEX NIFTY LEVELS