UBS is the leading global wealth manager, a top-tier investment banking and securities firm, and one of the largest global asset managers.
UBS has a well-established, growing presence in India, and is one of the top brokers for international investors investing in Indian equities. According to the Joint Global Head of UBS Investment Bank,Alex Wilmot-Sitwell, India is one of the most important markets for the bank.
UBS (India) has also acquired Standard Chartered's mutual funds management business for a total consideration of over US$ 120 million.
Tuesday, March 11, 2008
Noida likely to get 1st finance park
Knowledge parks, software parks & SEZs are now passe, as the Greater Noida Industrial Development Authority (GNIDA) now plans to develop, what will probably be the country’s first Financial Park. To be spread over an area of 100 acre, the park apart from housing companies from financial services sector (insurance, banking, brokerage, asset management, consulting) will also boast of a stock exchange at a later stage.
“The initiative is part of developing Greater Noida as a future city. We have asked in-house consultants to prepare a project report. The report has already been documented and sent to the authority. It is expected to be formalised within a period of one month,” GNIDA chairman Lalit Srivastava told ET.
The GNIDA intends to earmark over Rs 50 crore for land development purpose. “Currently, we are in the process of inviting all financial companies and regulators. The land will be allocated to the interested parties through a bidding process,” disclosed Mr Srivastava.
Further, a concessional rate is expected to be offered by the GNIDA for development and creation of required facilities at the proposed site. “This is so because each financial firm will require a different set up specific to their needs,” he explained.
Though the GNIDA hasn’t finalised the location, Mr Srivastava said that it will be somewhere enroute the planned road that will connect sector-62 with Greater Noida. “We are constructing a 130 metre road which will connect it to the proposed site,” he said. As far as the exchange is concerned, Mr Srivastava clarified that it could depend upon the regulator, however, a small & medium enterprise exchange cannot be ruled out.
The initiative to develop a financial hub at Greater Noida is yet another attempt of GNIDA to be at par with the best cities in the world. The GNIDA already follows a Ecotech concept, as part of which only zero pollution industries are allowed to set up office in the city. Companies such as Honda Siel, LG, Pepsi, Denso India, Yamaha, Moser Baer and Videocon already have a presence in the city.
“The initiative is part of developing Greater Noida as a future city. We have asked in-house consultants to prepare a project report. The report has already been documented and sent to the authority. It is expected to be formalised within a period of one month,” GNIDA chairman Lalit Srivastava told ET.
The GNIDA intends to earmark over Rs 50 crore for land development purpose. “Currently, we are in the process of inviting all financial companies and regulators. The land will be allocated to the interested parties through a bidding process,” disclosed Mr Srivastava.
Further, a concessional rate is expected to be offered by the GNIDA for development and creation of required facilities at the proposed site. “This is so because each financial firm will require a different set up specific to their needs,” he explained.
Though the GNIDA hasn’t finalised the location, Mr Srivastava said that it will be somewhere enroute the planned road that will connect sector-62 with Greater Noida. “We are constructing a 130 metre road which will connect it to the proposed site,” he said. As far as the exchange is concerned, Mr Srivastava clarified that it could depend upon the regulator, however, a small & medium enterprise exchange cannot be ruled out.
The initiative to develop a financial hub at Greater Noida is yet another attempt of GNIDA to be at par with the best cities in the world. The GNIDA already follows a Ecotech concept, as part of which only zero pollution industries are allowed to set up office in the city. Companies such as Honda Siel, LG, Pepsi, Denso India, Yamaha, Moser Baer and Videocon already have a presence in the city.
Mutual funds' assets grow to US$ 140 billion in February
Country's mutual fund industry has witnessed an increase of Rs 17,406 crore in its assets to over Rs 5.65 trillion by the end of February, led by Anil Ambani -promoted Reliance Mutual Fund.
According to data available with the Association of Mutual Funds in India, the combined Assets Under Management (AUM) of the 32 fund houses jumped to Rs 5,65,469.53 crore at the end of February this year, compared to Rs 5,48,063.51 crore till January.
Reliance Mutual Funds maintained its top position with AUM of Rs 93,531.67 crore for February compared to Rs 77,210.03 crore in January, adding Rs 16, 321.64 crore during the month.
ICICI Prudential MF is the second largest fund house, despite recording a decline of Rs 4,767.42 crore in its AUM.
At the end of February, ICICI Pru's AUM stood at Rs 59,277 crore against Rs 64,045 crore in the previous month.
State-run UTI MF also suffered a dip in its assets in February, which stood at Rs 52,464.71 crore compared to Rs 52, 656.19 crore in the previous period.
The other two fund houses among the top five --HDFC MF and Franklin Templeton have AUM worth Rs 46,291.97 crore and Rs 29,901.69 crore, respectively in February.
According to industry people, the market could soon attain a size of over Rs 10 trillion given the huge potential yet to be tapped by the new as well as existing players.
Eyeing the huge opportunity available more than a dozen new players are looking to start their businesses either this year or by early 2009.
The prominent names likely to start their mutual fund businesses soon include leading financial services firm Indiabulls Financial Services, banks like Axis Bank, Bank of India and Yes Bank.
According to data available with the Association of Mutual Funds in India, the combined Assets Under Management (AUM) of the 32 fund houses jumped to Rs 5,65,469.53 crore at the end of February this year, compared to Rs 5,48,063.51 crore till January.
Reliance Mutual Funds maintained its top position with AUM of Rs 93,531.67 crore for February compared to Rs 77,210.03 crore in January, adding Rs 16, 321.64 crore during the month.
ICICI Prudential MF is the second largest fund house, despite recording a decline of Rs 4,767.42 crore in its AUM.
At the end of February, ICICI Pru's AUM stood at Rs 59,277 crore against Rs 64,045 crore in the previous month.
State-run UTI MF also suffered a dip in its assets in February, which stood at Rs 52,464.71 crore compared to Rs 52, 656.19 crore in the previous period.
The other two fund houses among the top five --HDFC MF and Franklin Templeton have AUM worth Rs 46,291.97 crore and Rs 29,901.69 crore, respectively in February.
According to industry people, the market could soon attain a size of over Rs 10 trillion given the huge potential yet to be tapped by the new as well as existing players.
Eyeing the huge opportunity available more than a dozen new players are looking to start their businesses either this year or by early 2009.
The prominent names likely to start their mutual fund businesses soon include leading financial services firm Indiabulls Financial Services, banks like Axis Bank, Bank of India and Yes Bank.
NEWS UPDATES
Unitech is trading higher by (6.2%) at Rs291 as the company is hopeful of roping in a strategic partner for its telecom business within he next two months and the company is in talks with three-four global telecom companies.
Tata Power is trading up by (3.44%) at Rs1142 as the company is looking at expanding its reach by building power plants in Southeast Asia. It is also eyeing mines in Indonesia despite high coal prices and increasing cost of acquisitions.
Gitanjali Gems has acquired Trinity Watch Company through its wholly owned subsidiary Gitanjali Lifestyle.
Anil Ambani group's financial services arm Reliance Capital is set for a change of guard at the top with Sam Ghosh, who has led ramping up of German insurer Allianz's Indian insurance ventures, about to replace Amitabh Chaturvedi as the new CEO.
The total number of M&A deals announced in the month of February this year stood at 36 with a total announced value of 2.95 billion dollar and the most significant deal was the merger of two financial entities HDFC Bank and CBoP, global consultancy firm Grant Thornton said.
ACC has sold its wholly-owned-subsidiary ACC Machinery Company (AMCL) to HNG group for a consideration of Rs 45 crore.According to a release issued by ACC to the BSE today, AMCL's net profit for the year ended December 31, 2007, stood at Rs 9.75 crore, and total income was Rs 63.24 crore.Further, the release added that AMCL had paid dividend at Rs 190 per share aggregating to Rs 7.60 crore.
Oil prices were steady above $107 a barrel after rising to a record in the previous session as the U.S. dollar weakened further.
Foreign department employees of State Bank of India (Q, N,C,F)* have gone on an indefinite hunger strike from Monday (March 10) against the management`s decision to shift the entire Kolkata back-office operation to Mumbai in phases, reports Financial Express. ``This is the first time in the history of the banking industry that bank employees have resorted to hunger strike,`` SBI staff association zonal secretary Asok Mukherjee said.
IN A first-of-its kind move, drug price regulator National Pharma- ceutical Pricing Authority(NPPA) on Monday asked pharmaceutical companies to pass on the benefit of the recent excise cut to consu- mers even on medicines outside government's price control. This will reduce prices by 4.58% on brands that account for three-fourth of the Rs 33,000-crore domestic pharma market.
Tata Power is trading up by (3.44%) at Rs1142 as the company is looking at expanding its reach by building power plants in Southeast Asia. It is also eyeing mines in Indonesia despite high coal prices and increasing cost of acquisitions.
Gitanjali Gems has acquired Trinity Watch Company through its wholly owned subsidiary Gitanjali Lifestyle.
Anil Ambani group's financial services arm Reliance Capital is set for a change of guard at the top with Sam Ghosh, who has led ramping up of German insurer Allianz's Indian insurance ventures, about to replace Amitabh Chaturvedi as the new CEO.
The total number of M&A deals announced in the month of February this year stood at 36 with a total announced value of 2.95 billion dollar and the most significant deal was the merger of two financial entities HDFC Bank and CBoP, global consultancy firm Grant Thornton said.
ACC has sold its wholly-owned-subsidiary ACC Machinery Company (AMCL) to HNG group for a consideration of Rs 45 crore.According to a release issued by ACC to the BSE today, AMCL's net profit for the year ended December 31, 2007, stood at Rs 9.75 crore, and total income was Rs 63.24 crore.Further, the release added that AMCL had paid dividend at Rs 190 per share aggregating to Rs 7.60 crore.
Oil prices were steady above $107 a barrel after rising to a record in the previous session as the U.S. dollar weakened further.
Foreign department employees of State Bank of India (Q, N,C,F)* have gone on an indefinite hunger strike from Monday (March 10) against the management`s decision to shift the entire Kolkata back-office operation to Mumbai in phases, reports Financial Express. ``This is the first time in the history of the banking industry that bank employees have resorted to hunger strike,`` SBI staff association zonal secretary Asok Mukherjee said.
IN A first-of-its kind move, drug price regulator National Pharma- ceutical Pricing Authority(NPPA) on Monday asked pharmaceutical companies to pass on the benefit of the recent excise cut to consu- mers even on medicines outside government's price control. This will reduce prices by 4.58% on brands that account for three-fourth of the Rs 33,000-crore domestic pharma market.
Larsen & Toubro Ltd (L&T) has announced that the Electrical & Electronics Division (EBG) of L&T has been awarded the contract for SCADA system for Onshore Control Centres (OCC) for offshore operations by Oil and Natural Gas Corporation (ONGC). The contract is worth Rs 74.7 crore. L&T has been awarded this project by outbidding international competitors.
Goldstone Infratech Ltd has announced that it was foraying into the renewal energy space by setting up a 5 MW solar power plant and a production facility to manufacture photo voltaic modules for solar power generation.
China's Feb inflation leaps to 11-year high
China's consumer price inflation jumped in February to an 11-year high of 8.7 percent, presenting Beijing's stability-conscious leaders with a big economic headache in the run-up to the Olympic Games.
Inflation in January was 7.1 percent and economists had expected a February figure of 8.0 percent.
"There's growing concern that China's inflation is getting out of control," said Li Huiyong, an analyst at Shenyin & Wanguo Securities in Shanghai.
The Shanghai stock market fell in response to the report as investors priced in higher interest rates. The main index .SSEC ended the morning session down 0.67 percent.
"This means further monetary tightening ahead," said Gao Lingzhi, a strategist at Great Wall Securities in Shenzhen.
"I think the government may raise interest rates further and accelerate yuan appreciation, which would hurt Chinese manufacturers," he said.
Headline inflation is now at the highest level since May 1996.
The National Bureau of Statistics blamed the surprising increase largely on fierce winter weather and seasonal price rises due to the Lunar New Year holiday, which helped boost the cost of food by 23.2 percent in February from a year earlier.
Pork, the staple meat for China's 1.3 billion people, cost 63.4 percent more than in February 2007. Vegetables were up 46 percent and food oil rose 41 percent on the year.
One silver lining was that the annual rate of non-food inflation remained tame at 1.6 percent, up just a touch from 1.5 percent in January.
Still, the statistics office said it would now be harder for the government to meet its goal of holding inflation below last year's average rate of 4.8 percent.
"We need to keep a clear mind and to make correct judgments about the situation, and we will take effective measures to curb excessive growth in overall price levels to maintain sound yet rapid economic growth," the office said.
INFLATIONARY MINDSET
Central bankers around the world typically look past volatile energy and food costs when judging underlying inflationary pressures.
But that is easier said than done in China, where food accounts for a third of the consumer price basket and much more for poorer people.
The danger, economists say, is that people will see the ever-climbing headline rate and conclude that prices will keep rising, touching off demands for higher wages and making it harder for the central bank to reverse inflationary expectations.
Grumbling about high prices is already a constant in markets across a country where inflation has sown the seeds of social unrest down the ages, and the authorities will want to pull out the stops to avoid problems ahead of the Olympic Games in August.
"It's true that both the severe winter and Lunar New Year had an impact on the increase, but after so many months of big rises I'm afraid now the risks are high that China will see more broad-based inflation," said Chen Jijun, an analyst at CITIC Securities in Beijing.
"Though non-food inflation is only 1.6 percent, it has been accelerating. I think the possibility for price rises to spread from food to other sectors is growing," he added.
With bank deposit rates yielding less than half the inflation rate, economists said the figures shortened the odds that the central bank would increase interest rates for the first time this year. It raised rates six times in 2007.
Some said central bank governor Zhou Xiaochuan was likely to await less-distorted March data before acting.
But Hong Liang and Yu Song with Goldman Sachs in Hong Kong said they expected the authorities to resort to a mix of tightening policies, including higher borrowing costs and a faster rate of appreciation in the yuan's exchange rate.
"While we believe the snowstorm contributed to the high February reading, we believe that rapid money supply growth has been the main driver of high and rising inflation.
"As a result, we expect CPI inflation to remain at elevated levels in the near term even after the temporary weather-related impact dissipates," they said in a note to clients. (Additional reporting by Zhou Xin, Langi Chiang and Samuel Shen; Writing by Alan Wheatley; Editing by Ken Wills and Alan Raybould)
Inflation in January was 7.1 percent and economists had expected a February figure of 8.0 percent.
"There's growing concern that China's inflation is getting out of control," said Li Huiyong, an analyst at Shenyin & Wanguo Securities in Shanghai.
The Shanghai stock market fell in response to the report as investors priced in higher interest rates. The main index .SSEC ended the morning session down 0.67 percent.
"This means further monetary tightening ahead," said Gao Lingzhi, a strategist at Great Wall Securities in Shenzhen.
"I think the government may raise interest rates further and accelerate yuan appreciation, which would hurt Chinese manufacturers," he said.
Headline inflation is now at the highest level since May 1996.
The National Bureau of Statistics blamed the surprising increase largely on fierce winter weather and seasonal price rises due to the Lunar New Year holiday, which helped boost the cost of food by 23.2 percent in February from a year earlier.
Pork, the staple meat for China's 1.3 billion people, cost 63.4 percent more than in February 2007. Vegetables were up 46 percent and food oil rose 41 percent on the year.
One silver lining was that the annual rate of non-food inflation remained tame at 1.6 percent, up just a touch from 1.5 percent in January.
Still, the statistics office said it would now be harder for the government to meet its goal of holding inflation below last year's average rate of 4.8 percent.
"We need to keep a clear mind and to make correct judgments about the situation, and we will take effective measures to curb excessive growth in overall price levels to maintain sound yet rapid economic growth," the office said.
INFLATIONARY MINDSET
Central bankers around the world typically look past volatile energy and food costs when judging underlying inflationary pressures.
But that is easier said than done in China, where food accounts for a third of the consumer price basket and much more for poorer people.
The danger, economists say, is that people will see the ever-climbing headline rate and conclude that prices will keep rising, touching off demands for higher wages and making it harder for the central bank to reverse inflationary expectations.
Grumbling about high prices is already a constant in markets across a country where inflation has sown the seeds of social unrest down the ages, and the authorities will want to pull out the stops to avoid problems ahead of the Olympic Games in August.
"It's true that both the severe winter and Lunar New Year had an impact on the increase, but after so many months of big rises I'm afraid now the risks are high that China will see more broad-based inflation," said Chen Jijun, an analyst at CITIC Securities in Beijing.
"Though non-food inflation is only 1.6 percent, it has been accelerating. I think the possibility for price rises to spread from food to other sectors is growing," he added.
With bank deposit rates yielding less than half the inflation rate, economists said the figures shortened the odds that the central bank would increase interest rates for the first time this year. It raised rates six times in 2007.
Some said central bank governor Zhou Xiaochuan was likely to await less-distorted March data before acting.
But Hong Liang and Yu Song with Goldman Sachs in Hong Kong said they expected the authorities to resort to a mix of tightening policies, including higher borrowing costs and a faster rate of appreciation in the yuan's exchange rate.
"While we believe the snowstorm contributed to the high February reading, we believe that rapid money supply growth has been the main driver of high and rising inflation.
"As a result, we expect CPI inflation to remain at elevated levels in the near term even after the temporary weather-related impact dissipates," they said in a note to clients. (Additional reporting by Zhou Xin, Langi Chiang and Samuel Shen; Writing by Alan Wheatley; Editing by Ken Wills and Alan Raybould)
Post office investment corpus to be converted to dated papers
The government plans to freeze the existing corpus of Post Office Insurance Fund and convert the Rs 10,000 crore-plus amount in this fund to dated securities over a period of three years. This means, banks, FIs, insurance companies, primary dealers, mutual funds, provident funds & trusts and big corporates, may all soon be able to invest in these securities as long-term investments.
As first reported by ET, all future accretion to the Post Office Insurance Fund will be invested in the markets as per Irda regulations. In December 2007, the Cabinet had approved the proposal to allow Postal Life Insurance Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) to enter markets through investments in public sector mutual funds. The Cabinet had appointed UTI MF and SBI MF as managers for the POLIF. Put simply, only the new investments into the Post Office Insurance Fund will be invested by the UTI and SBI and not the existing corpus. At the same time, the government has decided to follow a three-step process to ensure proper utilisation of funds. First, the funds will be given to fund managers under ‘passive’ or ‘non-discretionary’ mode for investment as per Irda (Investment) Regulations, 2000. Secondly, an investment board will be constituted headed by member (I&FS), postal services board and consisting of other members such as financial experts, actuary and joint secretary of ministry of finance. The board will be the apex body for the purpose of laying down the policy guidelines and investment strategy, which will set the framework for the day-to-day decision on investment. There will be a chief investment officer, to head the division. He will execute the policy framework and structure of the investment decided by the investment board,” said minister of state for communications and IT Shakeel Ahmad in a written reply to an unstarred question in the Lok Sabha.
As first reported by ET, all future accretion to the Post Office Insurance Fund will be invested in the markets as per Irda regulations. In December 2007, the Cabinet had approved the proposal to allow Postal Life Insurance Fund (POLIF) and Rural Postal Life Insurance Fund (RPOLIF) to enter markets through investments in public sector mutual funds. The Cabinet had appointed UTI MF and SBI MF as managers for the POLIF. Put simply, only the new investments into the Post Office Insurance Fund will be invested by the UTI and SBI and not the existing corpus. At the same time, the government has decided to follow a three-step process to ensure proper utilisation of funds. First, the funds will be given to fund managers under ‘passive’ or ‘non-discretionary’ mode for investment as per Irda (Investment) Regulations, 2000. Secondly, an investment board will be constituted headed by member (I&FS), postal services board and consisting of other members such as financial experts, actuary and joint secretary of ministry of finance. The board will be the apex body for the purpose of laying down the policy guidelines and investment strategy, which will set the framework for the day-to-day decision on investment. There will be a chief investment officer, to head the division. He will execute the policy framework and structure of the investment decided by the investment board,” said minister of state for communications and IT Shakeel Ahmad in a written reply to an unstarred question in the Lok Sabha.
Today's Market
GLOBAL MARKETS ARE IN PAIN.
NIFTY WILL FOLLOW THE TREND....LEVELS ARE 4620-4700-4800-4820.
FOR LONG IN MARKET 4600 WOULD BE THE STOP LOSS AND FOR SHORT 4850 WOULD BE STRICT SL.
ABOVE 4850 MARKET COULD MOVE FURTHER 100 POINTS.IN LONG SIDE METAL LOOKS GOOD AND FOR SHORT ENERGY COULD BE FOLLOW.
CRUDE TOUCH $108 ALL TIME HIGH AND GAS PRICE ALSO TOUCH ALL TIME HIGH.
MAIN TRIGGER IN U S MARKET IS BLACK STONE GROUP FACED LOSS OF RS 107 mln DOLLER.
HAVE ANICE TRADING DAY.
-BY MR. SAM
NIFTY WILL FOLLOW THE TREND....LEVELS ARE 4620-4700-4800-4820.
FOR LONG IN MARKET 4600 WOULD BE THE STOP LOSS AND FOR SHORT 4850 WOULD BE STRICT SL.
ABOVE 4850 MARKET COULD MOVE FURTHER 100 POINTS.IN LONG SIDE METAL LOOKS GOOD AND FOR SHORT ENERGY COULD BE FOLLOW.
CRUDE TOUCH $108 ALL TIME HIGH AND GAS PRICE ALSO TOUCH ALL TIME HIGH.
MAIN TRIGGER IN U S MARKET IS BLACK STONE GROUP FACED LOSS OF RS 107 mln DOLLER.
HAVE ANICE TRADING DAY.
-BY MR. SAM
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