Rupee erases gains; shares, dollar eyed

The Indian rupee erased early gains and was trading largely steady on Monday afternoon, closely mirroring moves in the local stocks, but the dollar's losses versus major units may limit a sharp fall, dealers said. * At 2:18 p.m., the partially convertible rupee was at 46.89/90 per dollar, unchanged from Friday's close.

* Indian shares were trading almost flat after briefly turning negative. They had risen more than 1 percent in early trade boosted by a rise in financials.

* The index of the dollar against six majors was down 0.2 percent and would be watched for further clues, dealers said.

* The yen rose against the dollar on Monday after the Bank of Japan failed to signal aggressive measures to curb yen strength at an emergency meeting, choosing only to expanded a fixed-rate fund supply scheme.

* In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 47.0825, with the total traded volume on the two exchanges at a low of $2.4 billion.

Source http://economictimes.indiatimes.com/markets/forex/Rupee-erases-gains-shares-dollar-eyed/articleshow/6460997.cms

6 crores of Mumbai jewellery found with 4 foreigners in Dubai

Four foreigners - including a woman - have been detained at the Dubai Airport for allegedly stealing jewellery worth 6 crores from an exhibition in Mumbai on Monday.

The Mumbai Police will request Interpol to have the three Mexicans and one Venezuelan deported to India.

The accused have been identified as Capos Molan Elias, Guerrero Lugo, Gonzalez Aldonado Mauricso and Gutierrez Orlando. The jewellery has reportedly been found with them in Dubai.

All four foreigners were taped on security cameras as they indulged in their massive shoplifting. Posing as customers, they inquired about goods and later walked out with jewellery.

It took a couple of hours for the police to be informed and the value of the goods to be ascertained.

The cops then informed the airport official to look out for the accused, but they had left the country on an Emirates flight to Hamburg via Dubai.

Source http://www.ndtv.com/article/cities/6-crores-of-mumbai-jewellery-found-with-4-foreigners-in-dubai-46843?trendingnow

India Yet to Decide on ONGC Offer for Cairn

India is yet to decide whether state-run Oil & Natural Gas Corp. should make a counter bid to buy a stake in Cairn Energy PLC's local unit, Oil Minister Murli Deora said Monday.

"(We have) not decided yet," Mr. Deora said when asked about a potential bid from ONGC.

Separately, ONGC Chairman R.S. Sharma declined to comment on the matter.

London-listed miner Vedanta Resources PLC and Cairn Energy announced on Aug. 16 that Vedanta Group would buy 51%-60% of Cairn India Ltd. for $8.5 billion-$9.6 billion.

Cairn India's key asset is a 70% stake in the RJ-ON-90/1 oil block at Barmer in Rajasthan state, in which it is the operator. ONGC holds the remaining 30% stake. The companies began production at the Mangala field in the block in August 2009.

Earlier Monday, the Mint newspaper reported that India may disapprove of the proposed deal as it wants U.K.-based Cairn Energy to offer ONGC a chance to buy the stake.

Indian Oil Secretary S. Sundareshan said the government is awaiting the response of Cairn Energy on queries about the proposed stake sale.

"They (Cairn Energy) have not yet come back. We have asked the company for clarification and an explanation of (the) production sharing contract," he told reporters.

"As soon as we hear from them, we will decide on merit," Mr. Sundareshan said, when asked whether the government may block the Cairn-Vedanta deal and if ONGC would launch a counter-offer.

Mr. Sundareshan said on Aug. 16 the deal would require government approval and that the government would keep ONGC's interest in mind before giving its nod.

Source http://online.wsj.com/article/SB10001424052748703846604575447011435780700.html

India asks US to amend H-1B hike

The provisions of the border security bill, which allows massive increase in the fees on categories of H-1B and L1 visas, is discriminatory against the Indian companies, India has said and asked the United States to amend it.

Indian Ambassador to the US Meera Shankar had lodged an official protest to the US Trade Representative Ambassador Ron Kirk in a letter dated August 9, about five days before Obama signed the border security bill into law ignoring India's concerns.

The letter, a copy of which is in possession with the PTI, has been sent this week to the US Congress informing the lawmakers the views of Indian Government on the issue.

The US President Barack Obama, last week, had signed the bill into the law. "We feel that the 'pay for' provisions of the Bill are not in keeping with the substantive cooperative agenda which the two governments are pursuing. We would ask that those provisions of the Bill that discriminate against companies of Indian origin may be suitably amended to create a level playing field for all companies," Shankar said.

The 'pay for' provisions of the Bill, Shankar said, stipulate that the amount for the security of US-Mexico border would be provided through higher fees on H1B and L visas from those applicants who employ 50 and more people and 50 per cent of whom are non-immigrants in H-1B or L visa categories.

"Even though the Bill doesn't mention Indian companies specifically, the manner in which it is currently worded appears to be aimed at Information Technology companies from India, creating an unequal playing field," Shankar said.

"The impact on Indian companies of the higher fee increases would be substantial. While we appreciate and understand the US desire to strengthen Border Security, we have concerns about the proposed funding mechanism," the Indian Ambassador said days ahead of the bill being signed.

However, the Obama Administration decided to ignore the concerns of India on this issue. Noting that India and the US have a Strategic partnership and the trade and economic engagement is deepening and widening, she said Indo-US overall trade in goods and services is balanced.

"Indian leadership is looking forward to a successful visit of the US President later this year. Indian Industry has played a constructive role in the US economy. Several Indian companies have invested billions of dollars in the US economy and have created thousands of jobs in the US. Bilateral trade creation, especially in high technology trade, including in Civil Aviation and Defense, is responsible for further job creation in the US economy," Shankar said.

Source http://timesofindia.indiatimes.com/tech/news/software-services/India-asks-US-to-amend-H-1B-hike/articleshow/6379346.cms

Satyam case: Next hearing on August 24

A local court today posted the hearing of arguments on framing of charges against former chairman of Satyam Computers B Ramalinga Raju and nine other accused in the multi-crore accounting scam in the IT firm to August 24.

The CBI today informed the additional chief metropolitan magistrate court specifically on its allegations mentioned against Satyam accused in two main chargesheets besides the supplementary chargesheet.

Following a suggestion by the defence counsel seeking clarity for each offence, Magistrate BVLN Chakravarti had yesterday directed the CBI to inform it in a specific way on its allegations and sought to provide more clarity on the charges.

The court then posted the matter to August 24 after the defence sought for time to contest the prosecution's allegations.

Meanwhile, the defence is likely to submit before the court two sureties towards Raju's bail by late afternoon. The high court while granting bail to Raju yesterday had asked him to execute two solvent sureties and bonds for Rs20 lakh each, in the trial court.

Source http://www.dnaindia.com/india/report_satyam-case-next-hearing-on-august-24_1425667

Indian Bank hikes fixed deposit rates by 0.5 pc

Public sector lender Indian Bank has hiked the interest rates on its deposits of Rs five crore and below the maturity of two years and above by 50 basis points from 7.25 per cent to 7.75 per cent, the bank said today.

The new rates are effective from August 15, which also marks the Bank's 104th Foundation Day, Indian Bank said in a statement.

The Bank also introduced two new fixed maturity deposit products, "Indouble" and "Indouble Senior", which doubles the principal amount in 100 months and 108 months respectively.

All other facilities including nomination, premature withdrawal and loan against deposits to normal Fixed Deposits have also been extended to these products, it added.

Source http://economictimes.indiatimes.com/news/news-by-industry/banking/finance/banking/Indian-Bank-hikes-fixed-deposit-rates-by-05-pc/articleshow/6324631.cms

SBI net grows 21.5% to over Rs 3,467 cr

State Bank of India reported on Thursday a 21.54 per cent growth in consolidated net profit to Rs 3,467.09 crore (Rs 34.67 billion) for the first quarter ended June 30, 2010, over the same period last year.

The bank had a net profit of Rs 2,852.45 crore (Rs 28.52 billion) in the year-ago period, SBI said in a filing to the Bombay Stock Exchange.

SBI's total income, however, decreased marginally to Rs 32,808.06 crore (Rs 328.08 billion) in April-June quarter of 2010 from Rs 33,132.7 crore (Rs 331.32 billion) in the same quarter last fiscal.

On a standalone basis, SBI net profit grew 25 per cent to Rs 2,914.2 crore (Rs 29.14 billion) in the first quarter, up from Rs 2,330.37 crore (Rs 23.3 billion) in the year-ago period.

The bank's income increased to Rs 22,142.08 crore (Rs 221.42 billion) in the quarter under review from Rs 21,041.51 crore (Rs 210.41 billion) in the year-ago period.

Source http://business.rediff.com/report/2010/aug/12/sbi-net-grows-21-point-5-pc-to-over-rs-3467-cr.htm

RBI moots discussion on new banking licences

The Reserve Bank today brought out a discussion paper on giving out new banking licenses to business houses and non-banking finance companies, and regulations for the same to foster greater competition.

"The Reserve Bank is considering providing licenses to a limited number of new banks. A larger number of banks would foster greater competition, and thereby reduce costs and improve the quality of service," the central bank said in a discussion paper.

The RBI also sought to know "whether industrial and business houses could be allowed to promote banks." And, should NBFCs be allowed to convert into or promote banks.

The central bank sought feedback on this as also business model for the new banks by September 30.

It was of the view that greater competition would also promote financial inclusion.

Currently, India has 27 public sector banks, seven new private sector banks, 15 old private sector banks, 31 foreign banks, 86 regional rural banks, 4 local area banks, 1721 urban cooperative banks, 31 state cooperative banks, and 371 district central co-operative banks.

RBI said the new licenses are required since vast segments of population, especially underprivileged, have still no access to formal banking services.

The discussion paper outlines various pros and cons for norms like minimum capital requirements for new banks and promoters contribution, caps on promoters shareholding and other shareholders, foreign shareholding.

Various entities like Reliance Capital, IndiaBulls, Religare, IL&FS, IDFC, IFCI and Aditya Birla Financial Services are reported to be mulling entering the banking space.

Source http://www.business-standard.com/india/news/rbi-plans-to-give-limited-new-bank-licences/104747/on

Rupee continues to trade strong on share gains

The Indian rupee continued to trade higher in afternoon session on Monday tracking gains in local shares and also boosted by a largely defensive dollar versus major currencies overseas.

* At 2:15 p.m., the partially convertible rupee was at 46.07/08 per dollar, after opening at 46.02 and slightly stronger than its 46.15/16 close on Friday, when it had touched 45.97 --its strongest since June 22.

* Indian shares edged up 0.6 percent led by gains in financials, amid an Asian session lacking in direction after the U.S. July payrolls data signalled its economic recovery was losing traction and prompted investors to opt for safe-haven assets.

* The index of the dollar against six majors was little changed and would be watched for cues. * The dollar was on the defensive against major currencies on Monday, as disappointing U.S. jobs data on Friday highlighted a weakening U.S. economic outlook.

* In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange and MCX-SX were both at 46.1950, with the total traded volume on the two exchanges at about $1.7 billion.

Source http://economictimes.indiatimes.com/markets/forex/Rupee-continues-to-trade-strong-on-share-gains/articleshow/6281073.cms

Hyundai to produce more cars for Indian market, cut exports

Hyundai Motors India Limited (HMIL) on Friday said it will produce 0.7 lakh more cars this year to meet the growing domestic demand.

"We will increase our production capacity by 0.7 lakh units at our factories to meet the rising demand," said H.W. Park, chief executive, HMIL.

Currently, HMIL produces six lakh units per annum at its two plants in Sriperumbudur, Tamil Nadu. It will make minor investments to raise the production capacity. "We will make minor investments for the increase in production capacity."

The country's second largest car manufacturer is also seeking to reduce its exports by about eight percent as global car demands are slackening.

HMIL, which exported 2.71 lakh units last year to 110 countries across Africa, Europe and Latin America, has planned to reduce its exports by about eight percent. "Our export target for this year is fixed at 2.5 lakh units, which is slightly less than last year. We want to focus more on meeting the domestic demand."

Demand was high from Europe last year. Now it has come back to normal because of the "scrappage" scheme.

European countries had launched the scheme in 2009 that allowed selling new cars at a discount in exchange for older cars to raise sales.

In July, 2010 the company sold a total of 50,411 units as against 45,539 units in the like period of the corresponding year. The domestic sales accounted for 28,811 units where as the exports faced a slight decline of 3.3 percent at 22,346 units.

The company also said it planned to launch its Sports Utility Vehicle (SUV) Sante-Fe around the end of this year.

Hyundai, which started operations in India in 1996, produces compact hatchbacks Santro, i10 and i20 and sedans such as Accent, Verna and Sonata.

Source http://economictimes.indiatimes.com/news/news-by-industry/auto/automobiles/Hyundai-to-produce-more-cars-for-Indian-market-cut-exports/articleshow/6265516.cms

IDFC may raise Rs 2000-2500 crore via tax-free bonds

Infrastructure Development Finance Company (IDFC) could raise Rs 2000-2500 crore in FY11 by issuing tax-free infrastructure bonds to investors, a senior official said on Thursday.

"There is a limit by regulation...that would basically mean that we could raise approximately Rs 2,000-2,500 crore of tax free infrastructure bonds," L.K. Narayan, group chief financial officer, said at an analyst conference call.

India plans to issue tax-free bonds with a minimum tenure of 10 years to invest to improve its basic infrastructure. The bonds have the potential to raise about USD 6.5 billion in fiscal 2010/11, government estimates showed.

Recently, government allowed IDFC and others including Industrial Finance CorporationLife Insurance Corporation and other non-banking infrastructure finance companies, approved by the central bank to issue such bonds.

The nature of these bonds suggest that they would be attractive to retail investors whose annual income profiles are in the range of Rs 3-10 crore and to distribute these bonds to retail investors would be a challenge, senior IDFC officials said.

"This is going to be a potentially tough but very interesting opportunity for us, that we will have to very methodically position ourselves and distribute the product," said Rajiv Lall, chief executive and managing director, IDFC.

IDFC will be able to give more clarity on the product over the next quarter, he added.

Interest rates on these bonds are capped to interest rate on equivalent government bonds, Narayan said.

On Wednesday, the firm reported a 23% rise in April-June net profit to Rs 335 crore.

Source http://www.moneycontrol.com/news/business/idfc-may-raise-rs-2000-2500-crore-via-tax-free-bonds_475805.html

Maruti Suzuki looks to advance expansion plan

Nissan Motor India's Micra

Maruti Suzuki (MRTI.BO), India's top car maker, is looking to speed up expansion plans to meet booming demand in the fast-growing south Asian country, its managing director said on Wednesday.

Shinzo Nakanishi also said the company, 54.2 percent owned by Japan's Suzuki Motor Corp (7269.T), does not expect royalty payments to its parent to rise from about 5 percent of sales now.

In the June quarter the company's profit had dropped 20 percent on an unexpected rise in royalty fees, and triggered a slide in its shares.

Maruti reached full capacity of 1 million vehicles a year in March and has been struggling to cope with long queues of buyers.

It is building a second unit in the northern state of Haryana to add another production capability of another 250,000 vehicles a year, scheduled for completion by April 2012.

"I want to prepone as much as possible," Nakanishi told reporters at the launch of an upgraded version of its best-selling Alto hatchback fitted with a 1 litre K-series engine.

He did not give a definite deadline.

Maruti, which sells one of every two new cars in India, has been losing market share to newer entrants such as Ford (F.N), Volkswagen (VOWG.DE) and General Motors [GM.UL] all of which have launched their own compact cars.

In the June quarter its market share dropped to 56 percent from 61 percent in the year-ago period.

Apart form its own production constraints, Nakanishi said supply bottlenecks from vendors were also affecting output.

In recent months component supply constraints had led to backlogs of up to 20 percent of its normal sales on almost all its models, marketing head Mayank Pareek said.

Maruti has also asked vendors to step up their investments in capacity expansion, he said.

"We are trying our best to fulfil demand," he said.

Sales during April to July, the first four months of 2010/11 fiscal year, rose 26 percent from a year earlier to 384,181 vehicles.

However, exports to Europe have fallen 20-30 percent from a year earlier due to removal of incentives by countries such as Germany, Britian and France, Nakanishi said.

"To maintain the same export volumes as last year we have to find markets other than Europe," he said. The company has said earlier it was looking at newer markets such as Africa, Australia and New Zealand.

At 0914 GMT, Maruti shares valued at $7.6 billion were trading little changed at 1,212.15 rupees in a flat Mumbai market. The stock has fallen 22 percent so far this year, while the main index .BSESN is up 3.7 percent. (Reporting by Devidutta Tripathy; Writing by Janaki Krishnan' editing by Surojit Gupta)

Source http://www.reuters.com/article/idUSSGE6730DJ20100804

Adani Agrees to Buy Linc Energy's Australian Coal Asset for $2.7 Billion

A stacker/reclaimer places coal in stockpiles after processing at a mine in Queensland in this undated handout obtained May 3, 2010.

Adani Enterprises Ltd., India’s biggest coal importer, agreed to buy a coal asset in Australia for A$3 billion ($2.7 billion) from Linc Energy Ltd. as demand for the fuel increases.

Adani will pay A$500 million in cash and a royalty of $2 a ton for 20 years, or A$2.5 billion, Linc said today in a statement, describing the acquisition as the largest by an Indian company in Australia. The purchase will give full control of the Galilee coal tenement in Queensland, Adani Enterprises said in a separate release.

India’s thermal coal imports almost doubled to 60 million tons last year as the nation increased electricity generation capacity to end blackouts and sustain an economy forecast to grow more than 9 percent this fiscal year. India’s economy has grown an average 8.4 percent since 2004, straining capacities at roads, ports and factories.

“It is about securing high calorific, good quality coal for its expansion plans,” Deven Choksey, chief executive officer at K.R. Choksey Shares & Securities Pvt. that owns shares in Adani Enterprises, said before the announcement. “High quality coal helps operate power plants at higher capacities.”

Adani Power Ltd., a sister company, plans to build power plants with a combined capacity of 6,600 megawatts by 2012, director Ameet Desai, said last August.

Adani Enterprises, which advanced 43 percent this year, gained as much as 3.7 percent to 632.45 rupees and traded at 632.20 rupees as of 2:45 p.m. in Mumbai. Linc requested its shares be halted from trading in Sydney, pending an announcement on the sale. The Brisbane-based company last traded at A$1.86.

Preferred Status

The purchase gives Adani Enterprises, controlled by billionaire Gautam Adani, access to 7.8 billion metric tons of coal resources, according to its statement. The area is capable of producing as much as 60 million tons of coal a year when fully operational, according to Linc’s statement.

Adani Enterprises has been awarded a “preferred proponent status” for developing the Dudgeon Point coal terminal in Queensland, giving it a route to transport the coal, according to the company’s statement. Dudgeon Point is located near the Hay Point and Dalrymple Bay coal terminals.

“The coal from the Galilee basin would support and enable the rapid expansion of the power business of Adani Power and expand Adani Enterprises’ coal business,” the company said in the statement.

Indian thermal coal imports surged last year to a little less than 60 million tons from about 30 million tons in 2008, Macquarie Group Ltd. said in a report in March. India plans to almost double electricity generation capacity by 2012, when the shortage of coal will exceed 200 million tons.

Source http://www.bloomberg.com/news/2010-08-03/adani-enterprises-to-pay-2-7-billion-for-linc-s-australian-coal-assets.html

UAE, Saudi Arabia Might Ban BlackBerry Services

Looks like the dark times for RIM and BlackBerry are showing no signs of respite. The TRA (Telecommunications Regulatory Authority) of the UAE, which regulates the telecom industry in the country is contemplating a ban on the e-mail, web browsing and messaging services on BlackBerry smartphones starting October 2010.

The ban, according to officials from UAE, will be issued in public interest. According to them, the current security protocols used in BlackBerry services makes the users of such services to act without any legal accountability, causing judicial, social and national-security concerns .

If you were unaware, unlike most normal phones, any BlackBerry device encrypts data sent using it first through its servers in Canada before it ends up where you intend to send it. This basically means that UAE cannot monitor what is being sent via BlackBerry phones in the country unless Canada and RIM somehow allows access to its data center. RIM was reportedly offered an alternative to open its own server within the UAE which the company rejected. This is believed to be the reason behind the plans to ban the entire bunch of BlackBerry services in the country.

Incidentally, UAE is not the only country that is contemplating a ban or imposing similar measures on RIM. India and now, even Saudi Arabia are talking tough regarding BlackBerry and its servers. Is it time RIM brings their servers to more accessible locations so that the users are not affected by such Government ban? Leave us a comment and let us know what you think.

Source http://www.techtree.com/India/News/UAE_Saudi_Arabia_Might_Ban_BlackBerry_Services/551-112451-893.html