Banks likely to set base rate between 7% and 8%: IndusInd

A bunch of public sector banks like State Bank of India, Bank of Baroda, Punjab National Bank, and Union Bank had announced their base rates on Tuesday. SBI has set its base rate at 7.5% while PNB and BoB have fixed their base rate at 8%.

Most public sector banks are likely to fix their base rate between 7.5% and 8% while their private peers may stick to a rate of 7.5-8%. HDFC Bank may fix its base rate around 7%.

Earlier today, Uday Kotak of Kotak Mahindra Bank said the bank will announce its base rate in the evening. Today is the last day by when all banks have to announce their base rates.

In an exclusive interview to CNBC-TV18, Romesh Sobti, MD and CEO, IndusInd Bank, said the base rate is likely to be between 7% and 8%. "Public sector banks will place their base rate around 7.5%. There may be a variation of 0.5-1% in the base rate."

He expects his bank's base rate to be below 8%. "We will announce our base rate in the afternoon."

July to September will be a learning period for all the banks. Going forward, more frequent changes are expected in the equated monthly installments (EMI) of customers.

Sobti feels the responsiveness to monetary actions will be faster. "The impact on yield will be very minimal."

Over the last 3-6 months, the demand pull from corporates is very high, he added.

RK Bakshi, Executive Director, Bank of Baroda, said that less than 2-3% of the bank's loan book is below 8%. "Public sector undertakings account for 77% of the corporate loan book."

Source http://www.moneycontrol.com/news/business/banks-likely-to-set-base-rate-between-78-indusind_467095.html

TRAI to review telecom service quality every quarter

To improve quality of telecom services and make tariff plans easier to understand, telecom regulator TRAI will switch to a quarterly audit of Quality of Service, instead of annually now.

"From July this year, we shall be doing quarterly audit. Till now, every three months the service providers submit data on defined parameters of Quality of Service but audit was done annually by TRAI," a senior TRAI official said.

This will certainly put pressure on service providers to keep upgrading their networks constantly and swiftly redress subscriber complaints.

On information relating to tariff plans, TRAI is seeking to simplify the tariff plan literature offered by operators, as subscribers do not get the right kind of information about hidden costs and benefits of different plans.

The regulator had also convened a meeting of service providers and consumer groups last month and had sought their views on improving customer care and Quality of Services.

Officials said that lobby groups COAI and AUSPI, representing the two telecom technology platforms GSM and CDMA, respectively, have submitted the "Citizen's Charter" suggesting imrpoving transparency in information dissemination and TRAI would decide on the same at the earliest.

"We have received the charter just two days ago. we will surely see whether the charter has any tangible benefits for the subscribers and accordingly will take a decision," the official added.

Meanwhile, the regulator will be launching web-based 'Telecom Consumer Grievances Monitoring System' by July 15, enabling the subscribers to lodge their complaints and monitor their redressal on web through internet.

The TRAI has been receiving complaints of poor quality of services and weak complaint redressal mechanism, causing lot of hardships to the subscribers.
"Our growth in mobile subscriber addition may be the fastest in the world at an average of adding 15-20 million every month but unfortunately customer care and complaint redressal system is very poor," the official said, adding that this will now be the focus of the TRAI.

On the web-based grievance system, officials said it is ready and final testing is being done.

Source http://beta.profit.ndtv.com/news/show/trai-to-review-telecom-service-quality-every-quarter-79106

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Diesel prices will also be decontrolled: PM

On Board Air India One: Saying that people will understand the perils of excessive populism, Prime Minister Manmohan Singh Tuesday said diesel prices will also be decontrolled on the lines of petrol last week.

"Subsidies for petroleum products have reached a level which is not connected to sound financial management of our economy," he told reporters on the way back to New Delhi after attending the G20 Summit in Toronto.

"The fact that petrol prices have been set free, the same is going to be done to the diesel prices-much needed reforms," he said, referring to the decision of an empowered group of ministers Saturday.

The ministerial panel led by Finance Minister Pranab Mukherjee had allowed state-run fuel retailers to freely fix the prices of petrol, while on diesel any hike over and above Rs.2 per litre was subjected to a nod from the oil ministry.

The prime minister said these adjustments, including those on the prices of kerosene and cooking gas, were necessary, considering the high amount of subsidy that was implicit in the pricing structure of these fuels.

"But we have taken due care to ensure the interests of the poorer sections are affected to the least possible extent. That's why the attempt to keep under regulation the prices of kerosene and LPG (liquefied petroleum gas)," he said. "I think it is manageable."

The prime minister said he had only read the views of opposition parties, but as far as he was concerned people would appreciate the compulsions the government had been subject to in order to undertake this measure.

"Our people are wise enough to understand that excessive populism should not be allowed to derail the progress our country is making, and for which it is winning kudos internationally as well," he added.

Source http://economictimes.indiatimes.com/Diesel-prices-will-also-be-decontrolled-PM/articleshow/6105141.cms

RIL, ONGC fuel Sensex; RCom supports

Indian shares ended near day’s highs Monday as euphoria over the fuel price hike continued to spike index-heavyweights in the oil&gas sector. Positive cues from European peers also boosted sentiments.

Indices opened on a firm note despite mixed cues from Asian markets. Sustained buying activity in Reliance Industries, Reliance Communications and ONGC helped the benchmarks to gain moment as the session progressed.

Bombay Stock Exchange’s Sensex closed at 17774.26, up 199.73 points or 1.14 per cent. The index touched a high of 17794.80 and low of 17571.85 in today’s trade.

National Stock Exchange’s Nifty ended at 5333.50, up 64.45 points or 1.22 per cent. The broader index hit intra-day high of 5339.45 and low of 5270.75.

“Market is likely to trade in a range of 5250 to 5350 levels in coming days in the absence of any directional trigger, whereas a range breakout on either side may give further direction to the market.

If S&P CNX Nifty sustains above 5320 levels then further up move may be seen in the market towards 5350-5380 levels. On downside if it stays below 5280 levels then selling pressure may intensify and Nifty may test 5250-5220,” said Anand Rathi’s weekly technical report.

BSE Midcap Index was up 1.14 per cent and BSE Smallcap Index moved 1.10 per cent higher.

Amongst the sectoral indices, BSE Oil&gas Index gained 2.29 per cent, BSE Realty Index advanced 2.15 per cent and BSE Power Index moved up 1.94 per cent.

In the coming sessions, concern of rising inflation due to fuel price hike and impact of monsoon are likely to guide the market.

According to India Meteorological Department, the cumulative rainfall till the week ended June 23, 2010 stood at 11.1% below Long Period Average. The rainfall for the week ended June 23, 2010 stood at 21.2% below normal.

“We expect headline inflation to peak towards the end of Jul’10 and begin descending towards the 7% levels by Nov’10. Our assumptions are based on our in-house view that crude is likely to remain range bound with an upper-end level of $80/bbl.

While we had been expecting a 75bps monetary tightening in policy rates during the rest of FY11E (repo at 6%), we believe that the fuel price deregulation might force the RBI’s hands sooner than anticipated. Although the RBI is slated to announce its First Quarter Review of the Monetary Policy on 27th Jul’10, we opine that a policy move is unlikely to be pushed that far out,” said an Ambit Research report.

Reliance Communications (4.65%), Reliance Infrastructure (4.04%), ONGC (3.19%), Tata Motors (2.35%) and Reliance Industries (2.33%) were amongst the top Sensex gainers.

Reliance Communications on Sunday announced a deal that would see its tower business combine with smaller rival GTL Infrastructure to create what it claimed would be the world’s largest independent telecom tower company with an enterprise value of Rs 50,000 crore and 80,000 towers. The GTL Infra-RCOM deal is one of the biggest domestic M&A deals.

Pemex and Reliance Industries may soon forge a partnership to develop a large-capacity greenfield refinery in Mexico. The 300,000-barrels-a-day refinery will largely meet the domestic energy requirements of Mexico.

Shares of oil marketing companies have gained momentum since the government announced hike in fuel prices. According to Emkay Global Financial Services, the recent announcements and actions by the government to partially deregulate and hike price have shown incremental upside on earnings of OMC’s.

“Implementations of a partial de-regulation have set in motion the process of re-rating of the oil marketing companies. With policy initiative being a strong rating trigger for the OMC’s, the recent event is likely to help OMC’s regain their historic peak valuation of 1-year forward P/BV of 2x.

We maintain buy rating on the IOCL, BPCL and HPCL with the target price of Rs 392 (1.4x FY12E BV of Rs.286), Rs 675 (1.3x FY12E BV of Rs.514) and Rs 515 (1.3x FY12E BV of Rs 442) respectively,” the report said.

IOC gained 5.20 per cent, BPCL advanced 3.04 per cent and HPCL looked up 7.66 per cent

ITC (-1.52%), Jindal Steel (-0.82%) Hero Honda (-0.18%), HUL (-0.17%) and Maruti Suzuki (-0.08%) were the major index losers.

Market breadth was positive on the BSE with 922 gainers and 384 declines.

European markets held on to morning gains led by banks and US stock futures indicated a positive start. At 5 pm IST, Dow Jones futures was up 0.19 per cent, Nasdaq edged 0.34 per cent higher and S&P 500 advanced 0.28 per cent.

Source http://economictimes.indiatimes.com/RIL-ONGC-fuel-Sensex-RCom-supports/articleshow/6102208.cms

Monsoon to revive in 2 days: Met office

Monsoon rains have not advanced to new areas in the past 10 days, but are likely to do so in the next 2 days, an official at the weather office said on Monday.

"We expect the southwest monsoon to cover new areas in the next two days," B.P. Yadav, spokesman of the India Meteorological Department said.

Yadav said the monsoon rains, vital for the farm-dependent economy, would bounce back next month.

"We expect some spectacular revival in July," he added.

Source http://economictimes.indiatimes.com/news/economy/agriculture/Monsoon-to-revive-in-2-days-Met-office/articleshow/6101411.cms

Ambanis sign revised gas supply agreement

Mukesh Ambani-run Reliance Industries and his younger brother Anil-led RNRL on Friday signed a revised gas supply agreement, a development that paves the way for government to allocate gas to Anil Ambani group's
power plants.

The gas pact is however subject to government's approval. RIL told NDTV that the gas supply deal with RNRL is compliant with the government’s gas utilization policy. The revised deal was signed pursuant to the Supreme Court's May 7 judgement that turned down RNRL's demand for cheap gas from RIL based on a family agreement. The court had asked the two groups to renegotiate the agreement and base it on the fact that government is the owner of the gas and hence, has the last word on its pricing and utilisation.

Armed with the new agreement, Anil Ambani group would now move the government seeking allocation of gas to its power plants, including its upcoming projects in Dadri, Uttar Pradesh. In a statement filed with stock exchanges, RNRL said that "pursuant to the judgment of the Hon'ble Supreme Court dated May 7, 2010, RIL and RNRL have on June 25, 2010, signed a revised Gas Supply Master Agreement (GSMA)." "RNRL will now take appropriate steps requesting the Government of India for expeditious allocation of natural gas to facilitate implementation of the same," RNRL said.

The government fixed price for gas from RIL's KG-D6 fields is USD 4.20 per mmBtu.

Propelled by the news of a revised gas pact with RIL, RNRL shares immediately surged by about 8 per cent and were trading at Rs 68.65 a piece in early afternoon trade. RIL shares were 0.4 per cent up at Rs 1,055.50 a share on
the Bombay Stock Exchange. RNRL shares have soared by about 60 per cent in little over one month, from Rs 42.50 a share on May 21, on expectations of a new pact being signed soon, given the renewed bonhomie between the two brothers after years of
acrimony.

On June 18, Mukesh Ambani at RIL's Annual General Meeting said, "With legal dispute (over supply and pricing of natural gas from RIL's Krishna Godavari basin fields to Anil Ambani Group's power plants) behind us, we look forward to a harmonious and constructive relationship with Anil Dhirubhai Ambani Group (ADAG),"

He had also said that "as and when the power plants of ADAG are ready to receive gas, we would commence supplies to them subject to government granting allocation."

The two brothers reconciled their differences on May 23, when they scrapped a non-compete agreement that allowed flexibility to expand into areas hitherto reserved for each of them and aimed at "creating overall environment of harmony, cooperation and collaboration between the two groups."

Source http://beta.profit.ndtv.com/news/show/ambanis-sign-revised-gas-supply-agreement-78070

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Rupee seesaws tracking dollar; weak shares hurt

The rupee seesawed on Friday mirroring the dollar's moves versus major currencies, while losses in domestic shares maintained a downward bias on the Indian unit. At 10:45 a.m. (0515 GMT), the partially convertible rupee was at 46.54/55 per dollar, weaker than 46.49/50 at close on Thursday.

A senior dealer with a private bank said there was early buying after a selloff in the previous session saw the rupee hitting technical stops.

"Now they are tracking the equity market and dollar index," he added. Traders expected the rupee, which has moved between 46.4250 and 46.60 in early trade, to widen to 46.40-46.70. The dollar was on the defensive on Friday on doubts about a recovery in the U.S. economy while short covering and a general wariness towards riskier assets kept the yen near a one-month high against the greenback.

The index of the dollar against six major currencies was seesawing. Most Asian currencies were weaker compared to the dollar.

Domestic shares dropped 0.8 percent, with financials leading the decline, taking cues from weak world markets.

Foreign fund flows into and out of the sharemarket have a key influence on the rupee's fortunes. So far in June, foreigners have bought $1.7 billion worth of shares after pulling out $2 billion in May. They are net buyers of $6.3 billion in 2010.

One-month offshore non-deliverable forward contracts were quoted at 46.79, weaker than the onshore spot rate. In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 46.5450, with the total traded volume on the two exchanges at about $1.6 billion.

Source http://economictimes.indiatimes.com/markets/forex/Rupee-seesaws-tracking-dollar-weak-shares-hurt/articleshow/6089450.cms

Sensex ends flat amid depressed global cues (Roundup)

People watch a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai January 24, 2008.

A key index for Indian equities Thursday ended 25 points lower on a dull day of trade on depressed global cues after the Federal Reserve struck a cautious note on the strength of the U.S. economic recovery.

The 30-scrip sensitive index (Sensex) of the Bombay Stock Exchange (BSE), which opened at 17,750.51 points, ended at 17,730.24 points, 25.7 points or 0.14 percent down from its previous close at 17,755.94 points.

At the National Stock Exchange (NSE), the broader 50-share S&P CNX Nifty closed at 5,320.6 points, down 0.05 percent from its previous close at 5,323.15 points.

Broader markets indices too were lacklustre. The BSE midcap index closed 0.12 percent higher and the BSE smallcap index 0.17 percent up.

The market breadth was tilted towards the positive, with 1,569 scrips on the advance, compared to 1,298 stocks declining, and 111 remaining unchanged.

Realty and energy scrips saw some selling pressure, while FMCG stocks saw some buying.

Among gainers on the Sensex were Hindustan Unilever, up 1.67 percent at Rs.270.80; L&T, up 1.25 percent at Rs.1,787.10; Hero Honda, up 0.85 percent at Rs.2,055.25; and ITC, up 0.79 percent at Rs.305.25.

Prominent losers included Reliance Infra, down 1.95 percent at Rs.1,162.60; ICICI Bank, down 1.9 percent at Rs.884.85; Maruti Suzuki, down 1.64 percent at Rs.1,384.25; and TCS, down 1.49 percent at Rs.775.

According to data with the Securities and Exchange Board of India (SEBI), foreign institutional investors bought scrips worth $79.83 million Thursday.

On the last day of June futures and options, a spate of short coverings tapered off as trading progressed in other Asian markets.

Traders were averse to taking up new positions after the Federal Reserve Wednesday scaled back its outlook on the pace of economic recovery and acknowledged that there were pockets of weakness which needed to be plugged.

The Japanese Nikkei ended flat at 9,928.34 points, up 0.05 percent, while the South Korean Kospi closed at 1,739.87 points, 0.81 percent higher.

Hong Kong's Hang Seng shut shop 0.59 percent down at 20,733.49 points. The Chinese Shanghai composite index too was in the red at 2,566.75 points, down 0.12 percent.

European markets were in the red as well, with fears resurfacing on the strength of the economic recovery.

In Britain, the benchmark index, FTSE 100 was ruling 0.64 percent lower at 5,145.47 points, while the French CAC 40 was down 1.05 percent at 3,603.52 points.

The German DAX was trading 0.72 percent lower at 6,159.74 points.

Source http://sify.com/finance/sensex-ends-flat-amid-depressed-global-cues-roundup-news-default-kgyskdjfeeg.html

Rupee to get a symbol today!

Joining the club of other major currencies of the world like the US dollar, the pound sterling, the yen and the euro among others, the Indian rupee too is set to get its unique identification symbol that is recognizable worldwide.

In February 2009, the Finance Ministry had invited Indian residents to participate in a competition for designing a 'symbol for the Indian rupee', the results of which are to be announced today. Five designs have been shortlisted by the government after this all-India contest, of which one will be denoted as the symbol for the rupee.

These signs are easy to write and are specially designed to appeal to Indian and international community.

A symbol reflecting the Hindi alphabet 'R' is likely to be approved.

Reserve Bank of India’s Executive Director HR Khan feels a symbol for the rupee was absolutely necessary. “Every currency has a symbol so we thought that the Indian currency should also have a symbol. It is more of a symbolic value because we are an emerging power and most countries have some symbol with acts as an identification for the currency worldwide.”

Source http://www.moneycontrol.com/news/economy/rupee-to-getsymbol-today_466059.html

BWA winners pay spectrum fees, BSNL seeks time

The winners of the BWA auction, including pan-India BWA licence-winner Infotel, which was acquired by Reliance Industries, made the winning bid amount to the government, while Bharat Sanchar Nigam Limited (BSNL) sought more time.

The players who paid the winning bid amount also include Bharti Airtel, Qualcomm, MTNL and Aircel. MTNL raised the money by taking loan from three banks.

However, BSNL is reportedly in talks with the Department of Telecom for some more time to make payment for the BWA spectrum, after its request for exemption from the payment was rejected by Department of Telecom.

An official source from BSNL in a brief interaction with CIOL said that the time line for payment will be decided by the end of this week.

Tuesday was the last date for making BWA payment from which the government was to get a total revenue of Rs 38,543.31 crore. Since BSNL skipped the payment of Rs 8,313.8 crore, the government could only garner Rs 30,229.51 crore from BWA auction winners.

On the other hand DoT is not pleased with this move of BSNL of skipping payment on the last date without any formal approval.

"We are thinking to take action on BSNL. It can be monetary fine on per day basis for this delay," said a senior official who did not wanted to be named.

As per the result declared by Department of Telecom, RIL-Infotel has to pay Rs 12,847.71 crore, BSNL Rs 8,313.8 crore, Qualcomm Rs 4912.54 crore, MTNL Rs 4533.97 crore, Aircel Rs 3,438.01, Bharti Airtel 3,314.36 crore, Tikona Digital Rs 1058.20 crore and Augere (Mauritius) Rs 124.66 crore.

Source http://www.ciol.com/News/News/News-Reports/BWA-winners-pay-spectrum-fees-BSNL-seeks-time/137984/0/

Asia stocks fall as yuan euphoria fades

China's move on the yuan had set off optimism that a stronger yuan would lift its purchasing power for foreign goods such as commodities, a boon to the global economy given the nation's vast appetite for raw materials.

But that euphoria was checked as investors took a more considered view on the impact the move would have on economic fundamentals.

"The potential boost that might be given to consumption is likely to be subtracted from what will happen to exports," said Emil Wolter, head of regional strategy at Royal Bank of Scotland.

"But the bottom line is that the market is making a huge deal of an insubstantial occurrence," he said, adding that the yuan move had triggered a rally because it came after stocks registered their worst May in 12 years and at a time when there were large short positions.

"Sell in May and go away" is an old stock market adage which refers to the seasonal weakness in shares.

Beijing set the mid-point for the yuan's daily trading range at a 5-year high on Tuesday, which gave the markets a brief respite from the selling but kept most indexes in the red.

On Tuesday, the MSCI index of Asia Pacific ex-Japan stocks was down 0.7 percent, hovering around the day's lows. Losses in technology and resources provided the main drag.

China's central bank set the yuan's daily mid-point at 6.7980 against the dollar on Tuesday, the highest level since the yuan's revaluation in July 2005, signaling it could allow the yuan to rise further.

Spot yuan rose to as high as 6.7900 in early trade, up 0.11 percent from the close on Monday, when it jumped 0.42 percent. But by mid-day it was down 0.17 percent.

Tuesday's fixing initially reignited demand for riskier currency trades, with the Australian dollar and the euro jumping to the day's high against the dollar. But that rise was short-lived and by noon the euro dipped 0.1 percent to $1.2298.

The Australian dollar rose as high as $0.8834, up from around $0.8765 just before the mid-point was announced. The Australian dollar then dipped to $0.8782, up 0.23 percent on the day.

Financial markets have also turned cautious ahead of Britain's budget which will be announced later on Tuesday.

As the sovereign debt crisis spreads through Europe, rating agencies have warned even Britain's triple-A status could be at risk if the finance minister's plans to cut the record deficit are found wanting.

FOREIGN BUYING HALTS

"Investors are growing more cautious on the view that the magnitude of the yuan's new flexibility may not be as big as the market had earlier hoped," said Lee Sun-yeb, a market analyst at Shinhan Investment Corporation in Seoul.

"It seems the market is taking a bit of breather following its recent sharp gains, as it nears the earlier high. Foreign buying has also halted."

Japan's Nikkei share average was down 1 percent.

The Korea Composite Stock Price Index fell half a percent as foreigners dumped shares amid growing risk aversion. Foreign investors turned sellers on Tuesday snapping their seven-session buying streak.

Oil prices fell 0.8 percent toward $77 on speculation that a gradual appreciation of the yuan would have a limited impact on China's petroleum imports in the short term.

China's stock market, one of the world's worst performers this year, managed to cling on to gains after the previous day's surge. The Shanghai Composite Index was up 0.3 percent, after rising 2.9 percent on Monday to its highest close in 3 weeks.

And analysts expect more volatility ahead as the central bank's move comes a day after it kept the mid-point unchanged.

"The authorities want to say they are showing a more hands off approach and more flexibility in the markets but the reality is they are introducing more intraday volatility in the market," said Craig Chan, senior FX strategist at Nomura International.

Source http://www.reuters.com/article/idUSTRE64K0JX20100622?type=ousivMolt

No mobile connections, CCTVs for Gurgaon Metro

The Delhi Metro Rail seen during its trial run on the Gurgaon Section in January.

If you are planning to board the next Metro to Gurgaon, be ready to lose your mobile phone connectivity. Also, you will have to guard your belongings, as there are no CCTV cameras on the stretch, connecting HUDA city centre and Qutub Minar.

Delhi Metro officials associated with the project said mobile phone signals may be a problem across the stretch as there are few mobile towers in the area and most mobile networks do not work in the region.

"We cannot do anything about it. However, we will talk to the cellular operators about the matter," a Metro official said.

CISF, which guards the Delhi Metro network, has already trained a force for the stretch. "Around 500 personnel will be made available for the Gurgaon-Qutub Minar line. DFMDs, X-ray baggage screening machines and other security gadgets have been installed. So, there will not be any laxity on our part," assured a CISF official.

Another problem for Metro riders on this line would be the absence of close-circuit television (CCTV) cameras. "We have completed the cabling work but are yet to install cameras. It will take some time to make them functional and connecting them all to a central control room," the official added.

However, in the absence of CCTVs, the commuters will have to remain alert about their belongings.

The fully elevated section consists of ten Metro Stations namely Qutub Minar, Chhattarpur, Sultanpur, Ghitorni, Arjangarh, Guru Dronacharya, Sikanderpur, M. G. Road, IFFCO Chowk and HUDA City Centre.

The Delhi Transport Corporation (DTC) is planning to run connecting bus services from Qutub Minar Metro station to Central Secretariat Metro station from 6.15 am to 11.45 pm.

A total of 25 lifts and 31 escalators have been installed in the nine Metro Stations on the corridor to provide easy access to the commuters.

Passenger conveniences/toilets have been provided at all stations in the unpaid area.

Five trains would be running on this stretch with a frequency of approximately 12 minutes which will be subsequently increased if need be, keeping in mind the ridership pattern on the line. One extra train will be kept as standby for emergency use.

The time taken to travel from one end to the other end of the corridor will be approximately 27 minutes only.

Source http://www.ndtv.com/news/cities/no-mobile-connections-cctvs-for-gurgaon-metro-33033.php

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Chinese yuan under scrutiny before G20 meeting

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An clerk counts yuan banknotes at a bank in Hefei, Anhui province, June 20, 2010

The Group of 20 nations will meet in Canada next weekend to hash out a course for the future as the world gradually emerges from the worst financial crisis since the 1930s.

China announced on Saturday it would allow more flexibility for the yuan, also known as the renminbi or RMB, signalling it was ready to break a 23-month-old peg to the dollar that had come under intense international criticism.

But China's central bank ruled out a one-off revaluation, saying there was no basis for any big appreciation. That confused the outlook for markets and prompted scepticism that China's actions would match its words.

"This announcement was timed to appease global leaders as we move towards the Toronto G20 meetings next weekend," said Sherry Cooper, chief economist at BMO Capital Markets.

POSITIVE MARKET REACTION

Analysts were expecting China's revaluation from the current level of 6.83 yuan to the dollar to happen at a tepid pace.

"The currency will move only very gradually. I expect only about 0.2 percent a month until the situation in Europe stabilizes," said Andy Rothman, a strategist at CLSA in Shanghai.

Still, regional currencies could see some sharp short-term gyrations as investors try to figure out what to make of the policy shift. Already, the Australian dollar had jumped over 1 percent against the U.S. currency in early trade.

U.S. stock markets looked set for a stronger open as investors bet China's incremental steps would be a positive for the global economy. S&P 500 futures rose over 1 percent while Treasury bond futures edged lower.

China's tempering of its initial statement on the yuan prompted criticism from U.S. Senator Charles Schumer, who has argued the currency peg gives Chinese firms an unfair advantage by making their goods cheaper abroad.

"Just a day after there was much hoopla about the Chinese finally changing their policy, they are already backing off. It vindicates our initial scepticism," said Schumer, a leading China critic among U.S. lawmakers. "We intend to move forward as quickly as possible with legislation."

U.S. officials have not yet decided whether or not to name China a "currency manipulator" -- something that would lend support to any legislative effort to punish Chinese producers through tariffs and other trade barriers.

The European Central Bank and Jean-Claude Juncker, who heads the Eurogroup of euro zone finance ministers, welcomed China's decision on the yuan.

"Given China's important role in the global economy, we encourage the authorities to allow for greater flexibility of the RMB effective exchange rate as a means of promoting balanced growth in China and in the world economy," they said.

Source http://www.reuters.com/article/idUKTRE65I12220100620

Indian shares turns negative; Reliance Ind up 0.7 pct

At 11:28 a.m. (0558 GMT), the 30-share BSE index .BSESN was down 0.02 percent at 17,613.54 points, with 17 of its components declining.

The main index had gained as much as 0.6 percent earlier in the session.

Reliance Industries (RELI.BO), which has the heaviest weight in the main index, erased some of its early gains and was up 0.7 percent. The energy conglomerate's annual general meeting of shareholders began at 11 a.m. (0530 GMT).

Mukesh Ambani, chairman of the firm said it is ready to provide gas to power plants controlled by his brother Anil Ambani's Reliance ADAG. [ID:nBMA007862]

At the annual general meeting, he said the company looks forward to a "harmonious and constructive" relationship with ADAG.

The 50-share NSE index was up 0.03 percent at 5,276.35. (Reporting by Ami Shah; Editing by Unnikrishnan Nair)

Source http://www.reuters.com/article/idUSBMB01081820100618

Survey sees 8-13% salary hike across sectors

Employees in the pharmaceutical sector can expect an average pay hike of 13 per cent in the 2010-11 fiscal amid robust business growth in the space, according to HR services provider Ma Foi Randstad.

According to Ma Foi Randstad's latest survey on employment trends, various industry sectors in the country are expected to witness average pay hikes in the range of 8-13 per cent in the 2010-11 financial year.

The pharmaceutical sector is expected to see the highest salary increases of 13.2 per cent on average in the current fiscal, the survey revealed.

"Rising purchasing power and increasing penetration of health insurance will support strong growth in business (pharma sector) over the coming months," the survey added.

The real estate and healthcare sectors are both projected to see pay hikes of 12.1 per cent, while the energy space may see pay packages grow by 12.8 per cent on average this fiscal.

Other sectors which are expected to see double digit salary hikes in the current fiscal include education and consultancy (12.6 per cent), IT & IT-enabled services (11.1 per cent) and hospitality (10.6 per cent).

The banking, financial services and insurance (BFSI) sector is expected to witness an average 10.3 per cent pay hike in 2010-11.

Meanwhile, the media and entertainment and manufacturing (machinery and equipment) sectors are expected to witness pay hikes of only around eight per cent in the entire fiscal.

The Ma Foi Randstad survey covered 650 companies across 13 industry sectors in eight major cities -- Ahmedabad, Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

Source http://beta.profit.ndtv.com/news/show/survey-sees-8-13-salary-hike-across-sectors-75547

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Prices remain high but India's food inflation drops a tad

India's annual food inflation fell slightly to 16.12 percent for the week ended June 5 from 16.55 percent for the week before even as prices of milk, lentils and some other commodities remained sharply costlier over a 52-week period.

The drop in the inflation rate was mainly because of a 1.1 percent decline sub-index for food articles over the week under review in the overall official wholesale price index, according to data released Thursday by the commerce and industry ministry.

In fact, the index for primary articles remained significantly higher at 16.86 percent as the sub-index for non-food items logged a relatively faster jump of 18.25 percent.

Following is the rise and fall in prices of some of the main commodities that form the sub-index for food articles over the past 52 weeks:

Cereals: 5.41

Rice: 6.76

Wheat: 3.97

Pulses: 34.40

Vegetables: (-)1.03

Potatoes: (-)34.96

Onions: (-)17.84

Fruits: (-)13.67

Milk: 21.12

Planning Commission Deputy Chairman Montek Singh Ahluwalia said Wednesday India's annual food inflation may rise over the next few weeks because of the base effect of last fiscal but will fall eventually as the situation was within control.

'But there is no reason to worry. As you see the weeks go by, food inflation would come down again.'

Finance Minister Pranab Mukherjee had also expressed worry over rising food prices but said there were signs of easing off. 'With the expectation of good monsoon and crop, I think moderating influence will be there from the middle of July onwards.'

Key policymakers admitted that inflation was getting broad-based, with a consensus emerging for the central bank to hike interest rates soon and not wait for the review of its monetary policy stance in July.

'I think the picture is clear. Inflationary pressures are stronger,' said C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council and a former governor of the central bank. 'Some action will be called for by RBI in terms of policy tightening.'

Source http://sify.com/finance/prices-remain-high-but-india-s-food-inflation-drops-a-tad-news-default-kgrn4edcidi.html

PM’s economic advisor says rate hike ‘imperative’

The chairman of Prime Minister’s Economic Advisory Council, C Rangarajan, on Thursday said that a rate hike from the RBI has become imperative as overall inflation has soared to double digits.

Headline inflation surged to 10.16 per cent in May over last year as inflation spread from food and fuel items to the manufacturing sectors, adding weight to the possibility that the RBI could hike interest rates before its scheduled policy review in end-July.

“It is not just high food prices fuelling the inflation. Manufacturing sector inflation has gone over 6 per cent, making the rate hike imperative,” Rangarajan said. "The overall inflation has been in double digits for a few months."

The annual food inflation eased in the week ended June 5, at to 16.12 per cent, but still remained at an elevated level.

KC Chakrabarty, RBI’s deputy governor, said that inflation control remains a top priority for the central bank despite some weakness in the external sector, particularly in the Eurozone.

The deputy governor said that the central bank was moving toward a tightening policy regime but did not comment on the timing of the rate hike.

Separately, Chakrabarty said that he is in favour of deregulating all interest rates.

Source http://beta.profit.ndtv.com/news/show/pms-economic-advisor-says-rate-hike-imperative-75388

Read more at: http://beta.profit.ndtv.com/news/show/pms-economic-advisor-says-rate-hike-imperative-75388?cp

Sensex ends on flat note; auto, IT, banks lead

Stock brokers rejoice as BSE sensex extended its gains.

Equities ended lacklustre session on a flat-to-positive note Wednesday after a recent rally backed by global markets.

Bombay Stock Exchange’s Sensex ended at 17441.23, up 28.40 points or 0.16 per cent. The 30-share index hit a high of 17530.38 and low of 17407.30.

National Stock Exchange’s Nifty closed at 5228.15, up 5.8 points or 0.11 per cent. The index touched a high of 5255.65 and low of 5214.90.

BSE Midcap Index was up 0.01 per cent and BSE Smallcap Index advanced 0.12 per cent.

Amongst the sectoral indices, BSE Auto Index moved 1.34 per cent higher and BSE IT Index gained 0.78 per cent. BSE PSU Index slipped 0.84 per cent and BSE FMCG Index declined 0.59 per cent.

M&M (4.30%), ICICI Bank (2.55%), Sterlite Industries (2.17%) Tata Motors (2.10%) and HDFC (1.81%) led the Sensex upmove.

Auto major Tata Motors today said its global sales increased by 50 per cent in May to 79,819 units on robust demand for both commercial and passenger vehicles. Sales of luxury models from Jaguar Land Rover stood at 19,053 units during May, up 72 per cent from the same period last year, the company said in a statement.

HUL (-1.88%), ACC (-1.79%), Cipla (-1.44%), Bharti Airtel (-1.32%) and Tata Steel (-1.28%) resisted the upmove.

Market breadth was positive on the BSE with 1504 advances against 1318 declines.

Source http://economictimes.indiatimes.com/Sensex-ends-on-flat-note-auto-IT-banks-lead/articleshow/6054418.cms

Nifty ends above 5200; RPower, Suzlon, RCom up

Equities ended a ranged-bound session on a positive note on Tuesday, taking cues from positive European peers. Realty, PSU and FMCG stocks led the upmove while oil&gas and IT stocks edged lower.

Indices opened on a subdued note due to mixed cues from Asian peers. Positive opening of European markets, reports of positive advance tax numbers, and onset of monsoon helped the indices to move above psychological resistance levels.

National Stock Exchange’s Nifty was at 5222.35, up 24.65 points or 0.47 per cent. The index touched a high of 5231.45 and low of 5171.05.

Bombay Stock Exchange’s Sensex ended at 17412.83, up 74.66 points or 0.43 per cent. The 30-share index hit a low of 17249.46 and high of 17442.50

“Domestic cues are positive and broad-based buying was seen. FII participation has also increased. If Nifty manages to sustain 5200 for next few sessions then we are headed for 5240 and then 5350. On the downside, immediate support is seen at 5100,” said Anita Gandhi, Director, Arihant Capital Markets

The BSE Midcap Index was up 0.38 per cent and BSE Smallcap Index moved 0.85 per cent higher.

Amongst the sectoral indices, BSE Realty Index was up 2.60 per cent and BSE PSU Index gained 1.61 per cent. BSE IT Index declined 0.54 per cent and BSE Oil&gas fell 0.55 per cent.

PSU shares moved higher after the CCEA approved stake sale in Hindustan Copper and Coal India. Shares of ADAG group companies were in the action after reports that RIL-RNRL may sign the gas pact next week.

A consortium of PE firm Blackstone and US-based tower company Crown Castle International, Manoj Tirodkar owned GTL, and the world’s largest independent tower company, American Towers, are in talks with Anil Ambani’s Reliance Communications for acquiring its tower unit through a demerger.

Reliance Power (5.69%), Suzlon Energy (4.75%), Reliance Communications (4.30%), Sterlite Industries (3.52%) and DLF (3.06%) were amongst the top Nifty gainers.

BPCL (-5.78%), ONGC (-2.56%), TCS (-1.91%), M&M (-1.23%) and Maruti (-0.93%) resisted the upmove.

Market breadth was positive on the BSE with 1783 advances and 1326 declines.

Elsewhere, European markets were in the green after a poor start. US stock futures also indicated a positive start. At 5 pm IST, Dow Jones futures was up 0.48 per cent, S&P 500 gained 0.52 per cent and Nasdaq 100 advanced 0.61 per cent.

Source http://economictimes.indiatimes.com/Market-Review-Nifty-ends-above-5200-RPower-Suzlon-RCom-up/articleshow/6050957.cms

Govt approves stake sale in Hindustan Copper and Coal India

The government on Tuesday approved 10 percent divestment of its shares in Coal India and allowed another state-run firm Hindustan Copper to issue 10 percent equity to the public.

The decision was taken at a meeting of the Cabinet committee on economic affairs that was presided over by Prime Minister Manmohan Singh.

Briefing reporters after the meeting, Home minister P Chidambaram said the money raised by Hindustan Copper would be used by it towards its capital expenses, while that from the sale of 10 percent equity in Coal India will accrue to the government.

The government currently holds 99.59 percent shares in Hindustan Copper, whose shares flared 11.89 percent on the Bombay Stock Exchange (BSE) Rs.526.50 after the sale of equity was approved by the government.

Source http://timesofindia.indiatimes.com/biz/india-business/Govt-approves-stake-sale-in-Hindustan-Copper-and-Coal-India/articleshow/6049609.cms

Sensex surges 273pts on global cues

The Indian bourses ended on a buoyant note tracking firm global cues and on strength in the IT stocks.

The BSE benchmark index opened at 17,118 on firm Asian cues. The Asian stocks rose to their one-month high led by rally in the technology stocks. The Sensex continued to exhibit sideways movement till the noon trades. The markets pared gains initially after the May inflation data which was at 10.16% and on some amount of profit booking in the realty space.

However the European markets also opened in the green and it helped to boost the sentiments in the domestic markets. Major indices like the CAC, DAX and FTSE were up 1.5% each. Buying in the IT, oil&gas and metal stocks helped the Sensex to extend gains.

The Sensex finally ended at 17,338, up 273 points and the Nifty settled at 5,197, up 78 points.

The market breadth was positive, out of 2,966 shares traded, 1,869 advanced and 966 declined on the BSE.

All the sectoral indices barring the healthcare index has ended in the green. The IT index surged 3.5% to 5,351 and the oil&gas index was up 2%, respectively.

Infosys and Wipro soared 4% each to Rs 2,747 and Rs 673, respectively on the BSE IT index.RNRL zoomed 17% to Rs 61 on the oil&gas index. The midcap and the smallcap indices are up 1% each.

INDEX GAINERS...

Reliance Infrastructure and Reliance Communications zoomed 4% each to Rs 1,159 and Rs 179, respectively on the BSE. Metal scrips like Sterlite Industries, Hindalco and Tata Steel gained over 2.5% each.

The other prominent gainers on the Sensex were ITC, Reliance Industries and Larsen & Toubro, up 1.5% each.

...AND THE SHAKERS

Bharti Airtel has slipped 2% to Rs 270. Tata Motors and BHEL were down 0.5% each.

VALUE & VOLUME TOPPERS

RNRL topped the value chart on the BSE with a turnover of Rs 176.60 crore. It was followed by Reliance Capital (Rs 93.95 crore), Tata Steel (Rs 81.40 crore), Reliance (Rs 71.08 crore) and Reliance Infrastructure (Rs 66.06 crore).

RNRL led the volumes chart on the BSE with trades of 30.39 million shares. It was followed by Karuturi Global (27.64 million), HFCL Infotel (19.24 million), Spice jet (12.66 million) and Shree Astavinayak (8.62 million).

Source http://www.business-standard.com/india/news/sensex-surges-273ptsglobal-cues/97847/on

Inflation in double digits, rate hike looks imminent

AP Food inflation remained at enhanced level of 16.49 per cent despite moderation from 16.87 per cent in the previous month.

The inflation for the month of May shot up to 10.16 per cent, leading to expectations that the Reserve Bank of India may soon hike its policy rates.

Driven by stubbornly high food prices and an increase in prices of manufactured goods, the benchmark wholesale price index touched 10.16 per cent in May, sharply higher than 9.59 per cent in the previous month.

The inflation, as measured by the wholesale price index, saw a sharp jump as the all the major components of inflation saw a rise. On a month-on-month basis, the wholesale price index for primary articles, which includes food articles, rose 3.5 per cent while that for manufactured products index was up 1.2 per cent. The fuel group index was up 1.2 per cent.

The March inflation was revised upwards to 11.04 per cent from 9.9 per cent. Finance minister Pranab Mukherjee in the Budget 2010 had announced an increase in duties on petroleum products that led to a rise in petrol and diesel prices.

High industrial growth and double-digit inflation levels have led to analysts saying that the RBI may even go for a rate hike before its scheduled July review of monetary policy. Jahangir Aziz, chief economist for India at JP Morgan, said that the RBI might go for an intermediate rate hike before July given that the prices of manufactured prices have seen a continuous rise. He sees RBI hiking rates by 25 bps before its July review and another 25 bps in the July review.

But given the liquidity shortage in the system, the central bank may not resort to cash reserve ratio hike, he added.

An NDTV poll estimated inflation at 9.56 per cent for May.

During May, the manufactured products inflation stood at 6.41 per cent while food articles inflation remained at 16.49 per cent.

Source http://www.ndtv.com/news/business/inflation-in-double-digits-rate-hike-looks-imminent-31555.php

How do experts view Maran’s acquisition of SpiceJet?

From entertainment to 'high-flying' dreams! Being the market leader in the Southern television industry with its basket of successful channels, Sun TV promoter Kalanithi Maran has now put his foot in the aviation industry as he picked up 37.75% in low-cost carrier SpiceJet at Rs 47.25 per share amounting to Rs 750 crore.

Experts have given a thumbs up to the deal and expect it to give a leg up to the ‘not-so-profitable’ industry.

Did promoters sell at a discount?

Salil Pitle, ED-Investment Banking at Enam Securities says that the open offer price for SpiceJet has been calculated under SEBI guidelines. He adds that it is too early to comment on capital infusion by Maran into SpiceJet.

Will the stock get re-rated now?

According to Nikhil Vora, IDFC Securities, the Maran’s acquisition is big positive for the stakeholders of SpiceJet and teh stock needs to be given higher valuations now.

Vora feels that the stock will see re-rating now. He expects that the market share of SpiceJet will move up from it current share of 13-14%.

Future of aviation industry

On a optimistic note, Vora says that with Maran joining the bandwagon, the Aviation will now have four big players which is a big positive sign for the sector.

Road ahead for Spice

Maran has bought the stake in individual capacity. Among other stakeholders, one promoter Ajay Singh and his family hold 10% while Goldman Sachs holds around 6%. The other promoter, the Kansagra Family, holds 12%, however over 50% of these shares are pledged.

Pitle explains that SpiceJet business is self-sustaining. There is no deal between Maran and Esthithmar. Maran will buy entire Ross equity post conversion, he added

At 11:08 hrs the share was quoting at Rs 56.10, up Rs 0.05, or 0.09%.

Source http://www.moneycontrol.com/news/business/how-do-experts-view-maran%E2%80%99s-acquisitionspicejet-_463913.html

Sensex ends 142 points up, RIL gains 3%

People watch a large screen displaying India's benchmark share index on the facade of the Bombay Stock Exchange (BSE) building in Mumbai January 24, 2008.

Credit: Reuters/Punit Paranjpe/Files

The Indian markets closed in the green on the back of positive global and domestic cues to end the week on a positive note. The Sensex and Nifty both gained close to 0.8 per cent up in trade today.

The Sensex gained 142 points to 17,064 and the Nifty added 40 points and was trading at 5,119 mark.

Among the sectoral indices, the gains were led by the capital goods index on the back of strong IIP growth. The IIP for April grew at 17.6 per cent vs 13.5 per cent (month on month). Capital goods grew at 72.8 per cent (year on year).

Banking stocks gained 1.04 per cent on expectations of strong credit offtake as the economy betters. Oil and gas stocks gained 1.67 per cent after RIL rose 3 per cent. The company discovered more oil in the Cambay basin.

RIL also gained on reports that it had acquired controlling stake in Infotel. The company confirmed, after market hours, that it had acquired 95 per cent in Infotel for Rs 4,800 crs. Infotel is a business venture of HFCL group. HFCL gained 4.98 per cent. This paves the way for Mukesh Ambani to enter the telcom services sector.

Realty stocks like HDIL, DB Realty and Ackruti gained after the Mumbai HC turned down Maharashtra's government's order to increase the Floor space index (FSI) from 1 to 1.33. Ackruti City rose 3.03 per cent and HDIL gained 6.74 per cent.

The broader markets underperformed but stayed in the green with the BSE small cap index up 0.44 per cent and the mid cap gaining 0.28 per cent. The market breadth was positive with 51 per cent stocks rising on the BSE.

RIL, BHEL and M&M were the top gainers on the BSE. Bharti Airtel was down 3.75 per cent after rising for two days. Sterlite Industries, ACC and Reliance Infra were the other losers.

M&M has been the top gainer for the week. The company is planning to enter into the small car segment. The stock rose 2.11 per cent. Fortis Healthcare rose 7.97 per cent. The company is raising funds for a possible acquisition of Parkway in Singapore.

The Standard Chartered IDR was listed today. The issue price was Rs 104 and the stock was listed at Rs 105 per share.

The European markets opened flat with a positive bias. France's CAC 40 was up 0.70 per cent, Germany's DAX gained 0.06 per cent and the FTSE was up 0.79 per cent.

Asian stock markets closed with gains mostly after China's trade grew in May. The Nikkei 225 rose 162 points, or 1.70 per cent, to 9,705. Japan's economy has grown faster in the first quarter of this year. South Korea's Kospi index increased 1.43 per cent. The Chinese markets were up. The Shanghai Composite rose 0.29 per cent and Shenzen 300 gained 0.32 per cent.

Trading in Dow futures indicated that the index might open flat. The Dow futures were trading up 0.20 per cent at 10,166.

Overnight, the Dow rose 273 points or 2.8 per cent to 10, 172 on the back of China's growth numbers and a rise in energy stocks.

Read more at: http://beta.profit.ndtv.com/news/show/sensex-ends-142-points-up-ril-gains-3-73609?cp

India broadband spectrum bid extremely high: Bharti

A man speaks on a mobile phone in front of the Bharti Airtel office on the outskirts of New Delhi May 11, 2010. India's wireless broadband spectrum auction ended on Friday after 16 days of bidding, two sources with direct knowledge said.

Bharti Airtel, India's top telecoms firm, which won wireless broadband spectrum in only four of India's 22 zones, said scarcity of slots and the auction format had resulted in extremely high price levels.

The company said in a statement it had secured spectrum in select circles to experiment with new technologies. Bharti will pay a total of 33.14 billion rupees ($707 million) for the spectrum, it said.

Source http://economictimes.indiatimes.com/news/news-by-industry/telecom/India-broadband-spectrum-bid-extremely-high-Bharti/articleshow/6036856.cms

April industrial production grows 17.6% vs 13.5%

THE COUNTRY’S industrial output rose much faster than expected at 17.6% in April from 13.5% a month earlier led by growth across all sectors. CNBC-TV18 had expected IIP to come in at 14%.

March's annual growth rate has been revised upwards to 13.9% from 13.5%.

The manufacturing sector in April grew 19.4% as against 0.4% a year earlier, while consumer durables surged to 37% versus 17.6% in April 2009. The mining sector’s growth came in at 11.4% in the month versus 3.4%. There was strong growth in capital goods sector, which rose 72.8% from negative 5.9% on year-on-year basis and the consolidated non-durable jumped 6.6% as against negative 10.5%.

Commenting on robust capital goods numbers, Jehangir Aziz Chief Economist at JP Morgan said, “If you would look at the numbers of last time on a seasonal adjustment basis, capital goods activity actually fell. So this (72.8% growth) is a good sign of the start of an investment cycle. This turnaround is earnest and I see momentum continuing in the month of May.”

However, the consumer durable numbers, according to Venugopal Dhoot Chairman and Managing Director of Videocon, were not very surprising. “Since November the growth has been over 30%. In January it was 46% and now it is 37%. The industry has taken good shape and credit goes to the stimulus package announced by the government in January 2009. Besides, the demand is good, interest rates are lucrative and the government had spent well on the below poverty line (BPL) bracket,” he reasoned.

You will see that in July-August the growth in consumer durables will be similar to capital growth industry if there are good rains, he added.

On the outlook for FY11, Mridul Saggar, Chief Economist, Kotak Institutional Equities, said, “There is a possible upside considering that much growth in consumer durables has come from not much support from bank support to retailers. However, we need couple of more months to see if the actual investment activity has accelerated at grassroot level and to say if 10% growth will continue. But we are still skeptical about global scenario.”

Source http://www.moneycontrol.com/news/economy/april-industrial-production-grows-176-vs-135-%28mom%29_463628.html

Far-right election breakthrough shocks Netherlands

The spectacular election breakthrough of the far-right anti-Muslim Party for Freedom shocked the Netherlands on Thursday as two mainstream parties braced for weeks of coalition haggling.

The pro-business Liberal VVD party had 31 seats and the Labour party (PvdA) 30, with 99.6 percent of the vote counted after Wednesday's election.

But far-right PVV leader Geert Wilders demanded a share of government after his party came third with 24 seats, more than doubling its current nine seats in the 150-member parliament.

"Nobody in The Hague can bypass the PVV anymore," said Wilders, whose party wants an end to immigration from Muslim countries and a ban on new mosques and the Koran.

"We want to be part of the new government," declared Wilders, a distinctive figure with a shock of dyed blonde hair who is under 24-hour protection and has to live at secret addresses because of his controversial political stand.

France's far-right National Front hailed the PVV's "great success", while the CMO Dutch Muslim organisation expressed disappointment.

"It is shameful," CMO chairman Rasit Bal told Dutch news agency ANP.

"One thing is clear: a group of people are against us. It is terrible," a 29-year-old Muslim who identified herself only as Aicha told AFP at Oosterwei, an immigrant-majority suburb of the Dutch city of Gouda.

The PVV pushed the Christian Democratic Action party of Prime Minister Jan Peter Balkenende into fourth place, prompting him to resign as party leader and MP after eight years as Dutch premier.

Having been a part of nearly every Dutch government since World War II, the Christian Democrats lost 20 seats to end at 21. Balkenende's last centre-left coalition collapsed in February over the country's Afghanistan military mission.

"A divided Netherlands," said the front page headline on the NRC Next newspaper, summing up the election results.

With economic concerns dominating the campaign, the Liberal party led by Mark Rutte campaigned with a promise to cut public spending by about 45 billion euros (54 billion dollars) over the next four years.

It also promised to eradicate the public deficit, which was 5.3 percent of GDP last year, to shrink the government and parliament, lower income taxes and cap civil servant pay rises while raising the retirement age by two years to 67.

Labour, led by Amsterdam ex-mayor Job Cohen, had promised more "careful" savings, the retention of social benefits and higher taxes for the rich. It lost two seats.

The election was the first in a eurozone country since the Greek financial crisis erupted and was closely watched to see how the public reacted to Europe's wave of austerity. Voter turnout was 74 percent, the lowest since 1998.

Rutte has set a target date of July 1 to create a new government. "We do not exclude any party," he said ahead of the polls, asked about a possible coalition with the far right.

Cohen has ruled out cooperation with the PVV.

The maverick Wilders has earned notoriety around the world with his campaign to "stop the Islamisation of the Netherlands."

Wilders, who calls Islam a fascist religion and likens the Koran to Hitler's "Mein Kampf", is known abroad for his 17-minute commentary, "Fitna", which was termed "offensively anti-Islamic" by UN chief Ban Ki-moon.

He goes on trial in the Netherlands in October on charges of inciting racial hatred against Muslims. He was barred from entering Britain last year to stop him spreading "hatred and violent messages."

The deadlocked result means that the PVV cannot be ruled out of coalition talks which observers say will be long and complicated.

Among the other parties, the Socialist Party got 15 seats, down from 25, the Green GroenLinks and centrist D66 both made gains to get 10 and the Christian Union five, losing one.

Source http://www.google.com/hostednews/afp/article/ALeqM5gn5AXQSKWbiyTMQ3hnbTnEBHn8SA

L&T bags Rs 747 cr orders, stock rises 1.11 per cent

Engineering major Larsen & Toubro today said it had bagged orders worth Rs 747 crore from Coal India, Hindalco Industries and Indiabulls Power for construction related works.

Bouyed by the news, L&T stock today morning was trading at Rs 1,662 on the BSE, up 1.11 per cent from closing price yesterday.

The company's construction division received its first order valued at Rs 276 crore from Coal India in Madhya Pradesh, Larsen & Toubro said in a filing to the Bombay Stock Exchange today.

The project is obtained on engineering, procurement and construction basis and the scope of work includes supply and erection of mechanical, electrical and instrumentation works. The total time period for completion of work was two years, the filing said.

The second order worth Rs 260 crore has been obtained from Indiabulls Power for supply and erection of coal handling plants in Maharashtra.

Source http://www.ptinews.com/news/705010_L-T-bags-Rs-747-cr-orders--stock-rises-1-11-per-cent

Sensex trades firm; SBI, Tata Steel, Bharti most active

At 12:38 hours IST - the 30-share BSE Sensex continued to trade higher with 100 points gains led by upmove in telecom, capital goods, auto, technology, metal, oil & gas exploration and FMCG sectors.

However, ICICI Bank, Axis Bank, Suzlon, ACC, Kotak Mahindra Bank, Unitech, BPCL, HCL Tech and Power Grid were the only losers.

The Sensex was trading at 16749, up 91 points and the Nifty was at 5027, up 27 points

In the largecap space, Hero Honda was the top gainer with close to 3% gain. Idea Cellular, Bharti Airtel, Reliance Infra and SBI were up 2-2.9%. On the losing side, Suzlon Energy, ACC, Axis Bank, Unitech and ICICI Bank were down 0.7-1.6%.

SBI, Tata Steel, Sesa Goa, Bharti Airtel, DLF, ICICI Bank and Tata Motors were the most active shares on bourses.

Top gainers on the BSE Midcap: Pantaloon Retail, Bombay Rayon, Pipavav Shipyard, Kwality Dairy and Dish TV India were up 4-5%.

Top losers on the BSE Midcap: Shree Global Tr, Bajaj Holdings, Anant Raj Indusitries, Simplex Infra and Atlas Copco were down 2-4%.

Top gainers on the BSE Smallcap: MSP Steel, Shristi Infra, Tata Metaliks, Bata India and Gallantt Metal were up 9-20%.

Top losers on the BSE Smallcap: Fem Care Pharma, Sahara One, Kanani Industries, Intra Infotech and C and C Const were down 3.5-6%.

On the global front, European markets were marginally negative in opening trade while Asian markets were mixed in trade.

Source http://www.moneycontrol.com/news/local-markets/sensex-trades-firm-sbi-tata-steel-bharti-most-active_463370.html