Fidelity on Wednesday announced the launch of Fidelity Online, www.fidelity.co.in, a financial gateway that will help investors learn and plan as well as transact and track their investments in Fidelity Funds.
India`s second largest two-wheeler maker Bajaj Holdings & Investment (formerly Bajaj Auto) reported an 10.42% dip in total sales of vehicles during March 2008 at 176,101 units as against 196,592 units in the same month last year.
India's industrial production growth, which slowed to 5.3 per cent in January, is likely to further come down to around 3.4 per cent between April-July when the country faces maximum power scarcity, industry body, Assocham said.
Industrial production has already slipped by 25 per cent in February-March and captive power stations within the industrial premises are running at half the capacities, as diesel and petrol have turned expensive, Assocham said in its report on 'Fallout of Worsening Summer Power Situation on Industrial Production in April-July 2008'
Korean consumer durables maker Samsung has launched a range of 'Freshtech' refrigerators in the Indian market, along with new models of microwave ovens.
TVS on Wednesday announced the launch of the 'eco-friendly' "Scooty Teenz Electric" in Karnataka targeting young women and enthused by their increased use of two-wheelers.
The founder group of UTV Software Communications said on Wednesday it has tied up with a unit of Walt Disney Co to source ABC's news programming for its new business news channel in India.
Tata Motors intends to list its shares on the Tokyo Stock Exchange.
SEBI insists the broking firms to maintain Chinese wall among its various activities like proprietary trading, investment banking and research.
Stock market regulator, the Securities and Exchange Board of India (SEBI) proposed to ban equity researchers from buying and selling shares of the concerned company 30 days before and five days after publication of the research reports.
Tata Motors intends to raise around USD 983 million in Japan for acquisitions.
The IT space looks good if one has atleast 6 months perspective..Infosys can be a good buy at 1,480-1,490 for a target of Rs 1,750.
Wednesday, April 02, 2008
Industrial production growth to slip by 35%
India's industrial production growth, which slowed to 5.3 per cent in January, is likely to further come down to around 3.4 per cent between April-July when the country faces maximum power scarcity, industry body, Assocham said.
Industrial production has already slipped by 25 per cent in February-March and captive power stations within the industrial premises are running at half the capacities, as diesel and petrol have turned expensive, Assocham said in its report on 'Fallout of Worsening Summer Power Situation on Industrial Production in April-July 2008'.
"Industrial production suffered heavily in winters of 2007 as power deficit remained within the range of 18-20 percent. Between the month of February and March 2008, the deficit went up to around 25 per cent, causing industrial production to fall steeply," Assocham president Venugopal Dhoot said.
India's industrial production growth came down to 5.3 percent year on year as compared to 11.6 per cent in January
2007. Power deficit in April-July last year stood at 13.4 percent.
While the power supply situation was unlikely to improve because of constraints on the generation side, Indian Inc's
minimum production loss would be at around 35 per cent. The power utilities are unable to meet demand for electricity by industries, which is growing at around 20-25 per cent, the chamber said.
"The states in which power supply to industrial locations would be most hit are Delhi, Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Gujarat," Dhoot said.
In the union territory and the nine states mentioned, the captive power plants put up by industrial units are operating
at less than 50 per cent of their capacities on the back of
costlier fuel, Dhoot added.
Maharashtra is facing an acute shortage of power with
energy deficit touching about 20 per cent, Assocham said.While Madhya Pradesh is facing a deficit of around 1,100 MW, the situation is no better in Gujarat, it said. The southern part of the country was likely to suffer energy shortage of 2,000 MW, particularly in Andhra Pradesh, Karnataka and Tamil Nadu.
Industrial production has already slipped by 25 per cent in February-March and captive power stations within the industrial premises are running at half the capacities, as diesel and petrol have turned expensive, Assocham said in its report on 'Fallout of Worsening Summer Power Situation on Industrial Production in April-July 2008'.
"Industrial production suffered heavily in winters of 2007 as power deficit remained within the range of 18-20 percent. Between the month of February and March 2008, the deficit went up to around 25 per cent, causing industrial production to fall steeply," Assocham president Venugopal Dhoot said.
India's industrial production growth came down to 5.3 percent year on year as compared to 11.6 per cent in January
2007. Power deficit in April-July last year stood at 13.4 percent.
While the power supply situation was unlikely to improve because of constraints on the generation side, Indian Inc's
minimum production loss would be at around 35 per cent. The power utilities are unable to meet demand for electricity by industries, which is growing at around 20-25 per cent, the chamber said.
"The states in which power supply to industrial locations would be most hit are Delhi, Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and Gujarat," Dhoot said.
In the union territory and the nine states mentioned, the captive power plants put up by industrial units are operating
at less than 50 per cent of their capacities on the back of
costlier fuel, Dhoot added.
Maharashtra is facing an acute shortage of power with
energy deficit touching about 20 per cent, Assocham said.While Madhya Pradesh is facing a deficit of around 1,100 MW, the situation is no better in Gujarat, it said. The southern part of the country was likely to suffer energy shortage of 2,000 MW, particularly in Andhra Pradesh, Karnataka and Tamil Nadu.
NEWS UPDATES
The Videocon group intends to acquire Motorola`s mobile handset business, which is being split into a separate company. The company has appointed one of the world`s top three investment bankers who will convey its interest to buy out the mobile handset business of telecom giant.
Cairn India plans to raise USD 250 mn loan and has approached International Finance Corp. The company seeks loan for funding the development of its oil and gas block in Rajasthan, and to build a 600 km crude oil pipeline.
Subhash Projects & Marketing bagged order worth Rs 3.29 billion for execution of Main Plant, CW & Offsite Civil Works package for Bongaigaon Thermal Power Project (3X 250 MW) from NTPC.
The IT space looks good if one has atleast 6 months perspective..Infosys can be a good buy at 1,480-1,490 for a target of Rs 1,750
Tata Motors intends to raise around USD 983 million in Japan for acquisitions.
Cairn India plans to raise USD 250 mn loan and has approached International Finance Corp. The company seeks loan for funding the development of its oil and gas block in Rajasthan, and to build a 600 km crude oil pipeline.
Subhash Projects & Marketing bagged order worth Rs 3.29 billion for execution of Main Plant, CW & Offsite Civil Works package for Bongaigaon Thermal Power Project (3X 250 MW) from NTPC.
The IT space looks good if one has atleast 6 months perspective..Infosys can be a good buy at 1,480-1,490 for a target of Rs 1,750
Tata Motors intends to raise around USD 983 million in Japan for acquisitions.
Microcredit raises hopes for farm widows
Savita Jiddewar is a rare success story on the cotton fields of Maharashtra, the epicentre of an agrarian crisis that has seen 150,000 farmers commit suicide since 1997 because they could not pay back loans.
Her home stands out strikingly in this small village of dirt lanes and pale blue brick houses. She has a television set, a DVD player and a comfortable sofa. A mobile phone rings intermittently and the aroma of cooking wafts from the kitchen.
Clearly, she is well off in a farming village where most people struggle to make ends meet and where at least four people have killed themselves unable to repay crop loans.
While her neighbours borrowed heavily, entangling themselves in a never-ending cycle of debts, Jiddewar, a widow whose husband and daughter died in a road accident, made her moves smartly.
She joined a microcredit programme last year, saving tiny amounts that she ploughed back into her cotton fields, and earning a life of relative comfort.
After the agrarian crisis broke out in the early 1990s when India began privatising its economy, several voluntary organisations and banks in the region began microcredit schemes for women.
But women are only now joining in large numbers and the benefits are showing.
"Initially I wasn't sure what this is all about but then I saw other women who were doing well," Jiddewar said as she walked around her village, the air heavy with the smell of cow dung and animal feed.
BUSINESS ACUMEN
Jiddewar then joined the Annapurna women's self help group, one of around 60,000 such groups in Vidarbha. Here, the microcredit model is benefiting some 500,000 women and widows of farmers.
A farmers' lobby in the area estimates there are about 20,000 widows in Vidarbha whose husbands committed suicide after crops failed and they could not pay moneylenders and banks.
The women form groups of 10 or 12 to start a business and approach a bank for tiny credits. The banks encourage the women to save with them, with each member depositing amounts starting from $1 every month.
The next loan to the group depends on how fast they repay the initial credit after making a saving.
There are a variety of banks offering microcredit and the women are careful not to choose the wrong option.
Jiddewar's group chose the one that gave them $2,500 for community farming. Within months of borrowing her group had managed to pay back half the amount. Now the group is considering setting up a stationery shop.
Once left without hope after their sons and husbands died, many windows are picking up the pieces again.
"There was a time when we didn't know where the next meal was going to come from," said Mirabai Shyamrao Martawar, whose husband killed himself by jumping into a river after moneylenders pestered him for payment.
"Now I save fifty rupees (a little over $1) every month after providing for 10 members in the family."
The women are into a variety of businesses such as goat farming, community farming, running corner shops, bamboo handicrafts and glue making.
Without an income, life for these women and their children was a constant struggle for survival. Young widows were particularly vulnerable.
"This is a revolution," said Manoj Bhoir, whose voluntary group Village Development and Education Society facilitates microcredit for 650 self help groups.
"These women are determined to repay not only the debts of their families but also provide a better life for their children."
In many cases widows were thrown out by their in-laws. Only a small number were given $2,500 in compensation by the government after proving their husbands committed suicide.
But there is criticism as well of the microcredit model in Vidarbha. Although defaults are almost nil, many women are repeat borrowers and have become dependent on loans for household expenditures rather than capital investments.
But for tens of thousands of women in Vidarbha, microcredit seems their best chance of breaking from a life of debt.
"In a group we are safe," said Martawar. "When one is in trouble the others will come forward to help."
Her home stands out strikingly in this small village of dirt lanes and pale blue brick houses. She has a television set, a DVD player and a comfortable sofa. A mobile phone rings intermittently and the aroma of cooking wafts from the kitchen.
Clearly, she is well off in a farming village where most people struggle to make ends meet and where at least four people have killed themselves unable to repay crop loans.
While her neighbours borrowed heavily, entangling themselves in a never-ending cycle of debts, Jiddewar, a widow whose husband and daughter died in a road accident, made her moves smartly.
She joined a microcredit programme last year, saving tiny amounts that she ploughed back into her cotton fields, and earning a life of relative comfort.
After the agrarian crisis broke out in the early 1990s when India began privatising its economy, several voluntary organisations and banks in the region began microcredit schemes for women.
But women are only now joining in large numbers and the benefits are showing.
"Initially I wasn't sure what this is all about but then I saw other women who were doing well," Jiddewar said as she walked around her village, the air heavy with the smell of cow dung and animal feed.
BUSINESS ACUMEN
Jiddewar then joined the Annapurna women's self help group, one of around 60,000 such groups in Vidarbha. Here, the microcredit model is benefiting some 500,000 women and widows of farmers.
A farmers' lobby in the area estimates there are about 20,000 widows in Vidarbha whose husbands committed suicide after crops failed and they could not pay moneylenders and banks.
The women form groups of 10 or 12 to start a business and approach a bank for tiny credits. The banks encourage the women to save with them, with each member depositing amounts starting from $1 every month.
The next loan to the group depends on how fast they repay the initial credit after making a saving.
There are a variety of banks offering microcredit and the women are careful not to choose the wrong option.
Jiddewar's group chose the one that gave them $2,500 for community farming. Within months of borrowing her group had managed to pay back half the amount. Now the group is considering setting up a stationery shop.
Once left without hope after their sons and husbands died, many windows are picking up the pieces again.
"There was a time when we didn't know where the next meal was going to come from," said Mirabai Shyamrao Martawar, whose husband killed himself by jumping into a river after moneylenders pestered him for payment.
"Now I save fifty rupees (a little over $1) every month after providing for 10 members in the family."
The women are into a variety of businesses such as goat farming, community farming, running corner shops, bamboo handicrafts and glue making.
Without an income, life for these women and their children was a constant struggle for survival. Young widows were particularly vulnerable.
"This is a revolution," said Manoj Bhoir, whose voluntary group Village Development and Education Society facilitates microcredit for 650 self help groups.
"These women are determined to repay not only the debts of their families but also provide a better life for their children."
In many cases widows were thrown out by their in-laws. Only a small number were given $2,500 in compensation by the government after proving their husbands committed suicide.
But there is criticism as well of the microcredit model in Vidarbha. Although defaults are almost nil, many women are repeat borrowers and have become dependent on loans for household expenditures rather than capital investments.
But for tens of thousands of women in Vidarbha, microcredit seems their best chance of breaking from a life of debt.
"In a group we are safe," said Martawar. "When one is in trouble the others will come forward to help."
MARKET PREDICTION
GLOBAL MARKETS ARE IN GREEN AFTER USB AND DEUTSCH BANK WRITEDOWN NEWS AND Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
INDIAN MARKET WOULD EXPECT TO OPEN IN GAP UP.
LEVEL OF NIFTY 4800-4850-4910-5050.IF MARKET SUSTAIN ABOVE 4950 THEN WE CAN EXPECT LONG WITH SL 4850 .
SECTOR TO BE WATCHED OUT OIL&GAS AND FMCG.
TOTAL MARKET OI IS 52K CR
PUTCALL RATIO IS 1.25%.
HAVE A NICE TRADING DAY....
-MR.SAM
INDIAN MARKET WOULD EXPECT TO OPEN IN GAP UP.
LEVEL OF NIFTY 4800-4850-4910-5050.IF MARKET SUSTAIN ABOVE 4950 THEN WE CAN EXPECT LONG WITH SL 4850 .
SECTOR TO BE WATCHED OUT OIL&GAS AND FMCG.
TOTAL MARKET OI IS 52K CR
PUTCALL RATIO IS 1.25%.
HAVE A NICE TRADING DAY....
-MR.SAM
Wall Street Surges on UBS and Lehman Brothers Stock News, Better-Than-Expected Economic Data
Wall Street began the second quarter with a big rally Tuesday as investors rushed back into stocks, optimistic that the worst of the credit crisis has passed and that the economy is faring better than expected. The Dow Jones industrials surged nearly 400 points, and all the major indexes were up more than 3 percent.
ADVERTISEMENT
Financial stocks were among the big winners after Lehman Brothers Holdings Inc. and Switzerland's UBS AG issued new shares to help bolster their balance sheets. With that upbeat news and a fresh quarter ahead of them, investors appear quite willing to make some bets that the worst of the damage from the nation's credit struggles has been felt. Moreover, the banks' moves buttressed the view that financial services companies are taking aggressive action to improve their capital bases and stave off the potential of a collapse similar to Bear Stearns Cos.
Analysts believe there must be a recovery in bank and brokerages to lead major stock indexes higher. Some of the biggest financial players had their sharpest moves of the year Tuesday -- Citigroup Inc. shot up 11 percent, JPMorgan Chase & Co. rose 9 percent, and Lehman surged 18 percent.
"Investors have a difficult time making decisions about the stock market if they don't have confidence in major financial institutions, so there's been a lot of sideline cash," said Richard Cripps, chief market strategist for Stifel Nicolaus. "The extreme conditions that we've seen here over the past few months has been missing that confidence ... but that appears to be changing, and we're seeing the response."
Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
The Dow rose 391.47, or 3.19 percent, to 12,654.36. It marked the eighth-biggest point gain ever for the Dow, and the third time in two weeks it came close to or surpassed 400 points.
Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 47.48, or 3.59 percent, to 1,370.18 -- the index's best start to a second quarter since 1938. And, the Nasdaq composite index rose 83.65, or 3.67 percent, to 2,362.75.
The advance was in contrast to a lackluster session on Monday, where stocks managed a moderate gain in the final session of a dismal first quarter. Major indexes ended the first three months of 2008 with massive losses, marking the worst period since the third quarter of 2002 when Wall Street was approaching the lowest point of a protracted bear market.
Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.55 percent from 3.43 percent late Monday. The yield edged up to 3.56 percent in after-hours trading.
In addition to hopes about the financial sector, Wall Street was relieved to see the feeble dollar regain some strength against the euro. The euro fell to $1.5596 from $1.5785 late Monday in New York.
And there was also optimism that commodities prices, which have hit historic highs in recent months, have begun to retreat. Crude fell 60 cents to settle at $100.98 on the New York Mercantile Exchange after earlier falling below $100. Meanwhile, gold dropped back below $900 an ounce.
"This is a nice way to begin the second quarter," said Todd Leone, managing director of equity trading at Cowen & Co. "All the financials are up big, and there's a sense that things are turning. We definitely have not seen the last of the credit crisis, but we're getting closer."
The stock rally was underpinned by the announcements from UBS and Lehman Brothers that they are boosting capital by issuing new stock. Shares of banks and brokerages hovered near multiyear lows in recent months as investors feared heavy losses from investments tied to subprime mortgages would be overwhelming.
Earlier this month, widespread concerns about Bear Stearns' financial position forced the investment bank to sell itself to JPMorgan in a deal engineered by the Federal Reserve -- and that stoked fears that other investment houses might follow.
JPMorgan rose $4.05, or 9.4 percent, to $47; while Bear Stearns was up 36 cents, or 3.4 percent, to $10.85 -- slightly above the $10 per share acquisition price.
UBS, one of Europe's biggest banks, said it will issue up to $15 billion in new stock and that its chairman, Marcel Ospel, had quit. Investors chose to look past the bank's announcement that it will take a fresh $19 billion write-down due to additional declines in the value of its mortgage assets and other credit instruments, following an $18 billion write-down last year. Its shares surged $4.21, or 14.6 percent, to $33.01 in trading on the New York Stock Exchange.
Lehman Brothers, dogged by speculation it might reveal losses big enough to cripple the company, on Tuesday raised $4 billion of capital to stymie questions about its financial stability. Lehman rose $6.70, or 17.8 percent, to $44.34.
The Russell 2000 index of smaller companies rose 22.68, or 3.30 percent, to 710.65.
Advancing issues outnumbered decliners by about 4 to 1 on the New York Stock Exchange, where consolidated volume came to a heavy 4.65 billion shares, compared to 4.02 billion on Monday.
In overseas trade, Tokyo's Nikkei closed up 1.04 percent. There were gains in Europe too, with London's FTSE rising 2.64 percent, Frankfurt's DAX gaining 2.84 percent and Paris' CAC 40 advancing 3.38 percent.
ADVERTISEMENT
Financial stocks were among the big winners after Lehman Brothers Holdings Inc. and Switzerland's UBS AG issued new shares to help bolster their balance sheets. With that upbeat news and a fresh quarter ahead of them, investors appear quite willing to make some bets that the worst of the damage from the nation's credit struggles has been felt. Moreover, the banks' moves buttressed the view that financial services companies are taking aggressive action to improve their capital bases and stave off the potential of a collapse similar to Bear Stearns Cos.
Analysts believe there must be a recovery in bank and brokerages to lead major stock indexes higher. Some of the biggest financial players had their sharpest moves of the year Tuesday -- Citigroup Inc. shot up 11 percent, JPMorgan Chase & Co. rose 9 percent, and Lehman surged 18 percent.
"Investors have a difficult time making decisions about the stock market if they don't have confidence in major financial institutions, so there's been a lot of sideline cash," said Richard Cripps, chief market strategist for Stifel Nicolaus. "The extreme conditions that we've seen here over the past few months has been missing that confidence ... but that appears to be changing, and we're seeing the response."
Meanwhile, Wall Street got another boost when the Institute for Supply Management said its March index of national manufacturing activity rose to a reading of 48.6 -- indicating a contraction, but a slower one than in February and tamer than many analysts had predicted. Government data on construction spending for February also came in better than expected.
The Dow rose 391.47, or 3.19 percent, to 12,654.36. It marked the eighth-biggest point gain ever for the Dow, and the third time in two weeks it came close to or surpassed 400 points.
Broader stock indicators also gained sharply. The Standard & Poor's 500 index rose 47.48, or 3.59 percent, to 1,370.18 -- the index's best start to a second quarter since 1938. And, the Nasdaq composite index rose 83.65, or 3.67 percent, to 2,362.75.
The advance was in contrast to a lackluster session on Monday, where stocks managed a moderate gain in the final session of a dismal first quarter. Major indexes ended the first three months of 2008 with massive losses, marking the worst period since the third quarter of 2002 when Wall Street was approaching the lowest point of a protracted bear market.
Renewed enthusiasm that the credit crisis might be waning was also felt in the Treasury market, where government securities fell as investors withdrew money to take bets on stocks. The 10-year Treasury note's yield, which moves opposite its price, rose to 3.55 percent from 3.43 percent late Monday. The yield edged up to 3.56 percent in after-hours trading.
In addition to hopes about the financial sector, Wall Street was relieved to see the feeble dollar regain some strength against the euro. The euro fell to $1.5596 from $1.5785 late Monday in New York.
And there was also optimism that commodities prices, which have hit historic highs in recent months, have begun to retreat. Crude fell 60 cents to settle at $100.98 on the New York Mercantile Exchange after earlier falling below $100. Meanwhile, gold dropped back below $900 an ounce.
"This is a nice way to begin the second quarter," said Todd Leone, managing director of equity trading at Cowen & Co. "All the financials are up big, and there's a sense that things are turning. We definitely have not seen the last of the credit crisis, but we're getting closer."
The stock rally was underpinned by the announcements from UBS and Lehman Brothers that they are boosting capital by issuing new stock. Shares of banks and brokerages hovered near multiyear lows in recent months as investors feared heavy losses from investments tied to subprime mortgages would be overwhelming.
Earlier this month, widespread concerns about Bear Stearns' financial position forced the investment bank to sell itself to JPMorgan in a deal engineered by the Federal Reserve -- and that stoked fears that other investment houses might follow.
JPMorgan rose $4.05, or 9.4 percent, to $47; while Bear Stearns was up 36 cents, or 3.4 percent, to $10.85 -- slightly above the $10 per share acquisition price.
UBS, one of Europe's biggest banks, said it will issue up to $15 billion in new stock and that its chairman, Marcel Ospel, had quit. Investors chose to look past the bank's announcement that it will take a fresh $19 billion write-down due to additional declines in the value of its mortgage assets and other credit instruments, following an $18 billion write-down last year. Its shares surged $4.21, or 14.6 percent, to $33.01 in trading on the New York Stock Exchange.
Lehman Brothers, dogged by speculation it might reveal losses big enough to cripple the company, on Tuesday raised $4 billion of capital to stymie questions about its financial stability. Lehman rose $6.70, or 17.8 percent, to $44.34.
The Russell 2000 index of smaller companies rose 22.68, or 3.30 percent, to 710.65.
Advancing issues outnumbered decliners by about 4 to 1 on the New York Stock Exchange, where consolidated volume came to a heavy 4.65 billion shares, compared to 4.02 billion on Monday.
In overseas trade, Tokyo's Nikkei closed up 1.04 percent. There were gains in Europe too, with London's FTSE rising 2.64 percent, Frankfurt's DAX gaining 2.84 percent and Paris' CAC 40 advancing 3.38 percent.
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