Layman's Newz.....

DUBAI CRISIS: WHAT AILS DUBAI? AND WHY SHOULD WE CARE?

2009-11-28T23:05:00.000-08:00

In order to transform its economy as a major tourist and financial hub, Dubai borrowed US$80bn. However, it suffered a massive property slump in last year’s credit crisis. Now, it is not able to repay its liabilities, and asking borrowers to postpone repayments. There were 53 lakh Indians in the Gulf, of which 31% were in the UAE, mostly employed by construction sector for Dubai’s real estate boom. The Gulf region accounts for over half the total inward remittances worth over USD 25 billion annually from expatriate Indians, out of which 10% of overall remittances to India could be from construction workers. If Dubai were to default, there would be repercussion in other parts of world, where banking would take a hit from lending to Dubai. Though the overall size of the liabilities are not very big compared to US banking problems, this could be a taken as an excuse for the markets to correct at lower levels.

Financial panel for gradual opening up of sector to foreign banks

2009-04-01T23:10:00.000-07:00

Courtsey: Business Standard, Mumbai

Rural focus excites Microfinance Sector

2009-02-18T00:21:00.000-08:00

Altough the Interim budget might be disappointing for India Inc. but the article clearly speaks that it will augur well for Microfinance sector.

TATA Capital Secured Non-Convertible Debentures (NCDs)

2009-02-10T21:03:00.000-08:00

Issue details

No income tax is deductible at source as per the provisions of Section 193 of the I.T Act on interest on debentures issued by a company in a dematerialized form listed on recognized stock exchange in India
The NCDs will be issued in Demat mode only.

Finally, Mahindra XYLO Launched

2009-01-14T00:09:00.000-08:00

Mahindra and Mahindra inforemd the market that it launched the much hyped and much expected new vehicle Mahindra Xylo in four variants and 8 shades and the booking is almost open in all the Mhaindra dealership , the starting prioce is 6.25 lacs, My first impression after seeing XYLO why the heck they want to release a vehicle like this , but you never know.

Image source:autos maxabout.
Read more details here.

Rupee appreciates against dollar

2009-01-14T00:08:00.000-08:00

The Indian rupee appreciated 22 paise against the US currency today in early trade after ending at a five-week low of 49.12/14 yesterday.

Infosys Q3 net up 33% at Rs 1,641 cr, beats expectations

2009-01-12T21:49:00.000-08:00

Software major Infosys Technologies on Tuesday announced a 33.31 per cent growth in consolidated net profit at Rs 1,641 crore for the third quarter ended December 31, over the corresponding period a year ago.

Wipro, Megasoft barred from World Bank contracts; Stock down by 10%

2009-01-12T21:48:00.000-08:00

The World Bank on Monday said it has decided to debar Indian software vendors Wipro and Megasoft from directly doing business with the bank group under its corporate procurement programme, taking the number of large vendors debarred by it to three.

Slumdog Millionaire sweeps all the 4 nominated Golden Globe Award

2009-01-12T21:47:00.000-08:00

I could not resist putting this post on the blog. We will forever remember the 66th annual Golden Globes as the ceremony that pushed Indian cinema over the top, albeit indirectly. Majority the movie has been shot in the Slums of Mumbai.

Best Motion Picture (Drama) - Slumdog Millionaire - Fox Searchlight Pictures and Warner Bros.; Fox Searchlight Pictures and Warner Bros.
Best Director (Motion Picture) - Danny Boyle – Slumdog Millionaire
Best Screenplay (Motion Picture) - Slumdog Millionaire - Written by Simon Beaufoy
Best Original Score (Motion Picture) - Slumdog Millionaire - Composed by A. R. Rahman

Statement from Satyam Interim CEO to Employees

2009-01-09T18:43:00.000-08:00

The following letter has been issued to Satyam management and staff by Ram Mynampati, Interim CEO of Satyam.

Dear colleagues

I write this mail to update you on some critical Board and Leadership level changes in our company, effective immediately. A series of extremely unfortunate events led to this, which I am sure you have seen covered in the media over the past few hours.

A SWAT team consisting of senior leaders has been formed. Many of them are Satyam veterans with a minimum of ten years experience in our company and more than twenty years in the industry. I have been requested to play the role of an Interim CEO and this team will support me, as we steer Satyam through this challenging phase. These are the leaders on the ground and have always had the final call on most customer and associate related matters in the company, so far. This team has committed to work together, to make it happen. The SWAT team represents all Customer Facing units, key Horizontal Competency Units and critical Support Units.

Over the past twenty one years, with your passion and commitment we have built significant customer assets, formidable service offerings, excellent delivery processes and scalable support systems. Satyam has been consistently acknowledged for our leadership bandwidth and has a demonstrated reputation for collaborative functioning. Our renowned Full Life Cycle (FLC) model encouraged ‘Distributed and Empowered’ leadership and prepared us for all situations. This is the time when we have to apply it in real life. What we have been trained for, we will now put to work. Let us continue to handle our respective areas with total autonomy, freedom and control. This is as good a time, as any, to remind ourselves that we have been acknowledged as being amongst the top three Best Employers in India by Hewitt and Mercer in independent surveys in 2007 and American Society of Training & Development (ASTD) named us as the best globally, for our Learning practices - the first company outside USA to be ever awarded this honor. Satyam continues to have everything that is fundamentally required for its success - a strong customer base and a committed universe of approx 53,000 associates.

What we are confronted with is the challenge of continuing our business operations, seamlessly. We will need your involvement and ideas to make it happen. This might involve even more effort at every level, in the near term. This is the time to prove to the world that we are united and will succeed in overcoming the challenges.

This quarter will be tumultuous for us. Rumors will abound and it would be fair to assume that competition will try and leverage it to their advantage. As a proactive measure, we have formed fully empowered Cross Functional Teams, headed by seasoned leaders in the respective areas, to address pan-organizational issues like Delivery Excellence, Customer & Associate Retention, Pipeline Management, Cost Controls, Collections etc. You have helped to build Satyam to be what it is today - and we believe that this cannot be allowed to fail, at any cost. I am confident that I can count on your continued support as I commit to our customers that we will ensure deliverables and commitments are serviced.

On behalf of our new leadership team, I apologize to you for the uncertainty and inconvenience that this incident has caused to you and your families. I assure you that we will emerge stronger, because of this. Increased focus on transparency at all levels, integrity and ethical functioning will be ensured. I want you to stand confidently in front of your families and friends and say that we will now be a better company and that we shall soon be a successful case study of how organizations have turned over a new leaf.

We will be conducting “U Speak” (our Meet-the-Leadership sessions) in each city in India starting next week and will have numerous Webinars to address associates in various countries. We will be meeting many of our customers in person over the next two weeks and will meet those of you onsite, at that time. In these sessions, we will explain to you what happened and articulate the actions that are being taken to retain your confidence in our company.

Let us fight this battle together. I am confident that we will emerge stronger, TOGETHER.

Ram Mynampati

Inflation for week ending December 27 2008 at 5.91 percent

2009-01-09T18:37:00.000-08:00

The whole-sale price Index has come for the week-ended December 27 2008 just came in and its at 5.91 % compared to 6.38% week over week of december 27 2008. So good news for India.

Fiscal Package Part - II - Key Factors

2009-01-05T03:15:00.000-08:00

1. IIFCL allowed to raise Rs 30,000 crores via tax free bonds.

It was one month before that the government approved that IIFCL can borrow up to 10000 Crore in Tax free bonds which will be lend to infrastructure projects that are public and private partnership , As these projects are having high time getting long term loan from banks , Because Banks are also in need of money IIFCL might recapitalise banks through this .So they did not even fully get the 10000 Crore now Indian Government has approved for the second stimulus package that India Infrastructure Finance Company Ltd (IIFCL) to raise Rs 30,000 Crore for refinancing projects mainly in the highway and port sectors.

This will really help in financing big projects in turn will help the industry grow and also bring very good number of Job openings.

2. Govt eases ceiling on ECB borrowings as part of the second stimulus package.

3. Recapitalize PSU banks by Rs 20,000 cr in two years.

4. Custom exemption on zinc and ferro alloys has been withdrawn

5. NBFCs in infrastructure sector can access ECBs.

6. FII investment limit in corporate bonds raised from 6 billion to 15 billion dollars.

7. Govt extends tax incentive scheme for exporters up to Dec 31.

8. State governmnet allowed to market borrowing of 0.5 per cent of GDP.

ICICI Bank to lower interest rates as New Year gift

2009-01-01T01:36:00.000-08:00

New Delhi: The customers of ICICI Bank will get their New Year gift in the form of cut in interest rates, its CEO and Managing Director K V Kamath said today. "We are looking at cutting interest rates very early in January for our housing and other loan customers," Kamath said.

He said that the extent of the rate cut is being calibrated and would be announced soon. Earlier this month, ICICI had reduced home loan rates for new customers by up to 1.5 percentage point. Currently the Prime Lending Rate of the bank stands at 17.25 per cent.

SBI, the largest bank, has cut its prime lending rate by 75 basis points to 12.25 per cent with effect from January 1.Along with this, HDFC has also cut its prime lending rate by 50 basis points. Earlier in the day, Punjab National Bank and Bank of Baroda, leading public sector lenders said they would reduce their prime lending rates by 50 and 75 basis points respectively, with effect from January 1.

Indian Economy Slowing down: The figures Speak Loud

2008-12-30T02:48:00.000-08:00

Leading sector sales figure are showing that the demand is slowing down. I hope thats the reason why their is Fear Factor in Corporate sector.

Source: CMA, SIAM, CEA, Trai, RBI, JPC, ICICIdirect.com

Punj Lloyd receives order worth 304 crore from Delhi Commonwealth games

2008-12-27T21:47:00.000-08:00

Punj Lloyd Ltd has informed the market on wednesday that they have received a contract from Municipal Corporation of Delhi for a value of Rs 303.95 Crores for development of parking facility near Jawaharlal Nehru Stadium for the forthcoming Commonwealth Games 2010.

FAQ on Priority Sector Lending

2008-12-27T01:56:00.000-08:00

To meet the credit needs of large sections of the Indian poplulation who had no access to institutional finance, RBI has created an elaborate framework of Priority Sector Lending with mandated targets. Lets look at some of the Frequently Asked Question about the Priority Sector lending (taken from RBI website):

1. What are the targets under priority sector lending ?
Ans : The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are furnished below :

{note : NBC denotes net bank credit}
2. What constitutes net bank credit ?

The net bank credit should tally with the figure reported in the fortnightly return submitted under section 42(2) of the Reserve Bank of India Act, 1934. However, outstanding deposits under the FCNR(B) and NRNR Schemes are excluded from net bank credit for computation of priority sector lending target/ sub-targets.

3. What does the priority sector comprise ?

Ans : Broadly, the priority sector comprises the following :

1. Agriculture

2. Small scale industries (including setting up of industrial estates)

3. Small road and water transport operators (owning upto 10 vehicles).

4. Small business (Original cost of equipment used for business not to exceed Rs 20 lakh)

5. Retail trade (advances to private retail traders upto Rs.10 lakh)

6. Professional and self-employed persons (borrowing limit not exceeding Rs.10 lakh of which not more than Rs.2 lakh for working capital; in the case of qualified medical practitioners setting up practice in rural areas, the limits are Rs 15 lakh and Rs 3 lakh respectively and purchase of one motor vehicle within these limits can be included under priority sector)

7. State sponsored organisations for Scheduled Castes/Scheduled Tribes

8. Education (educational loans granted to individuals by banks)
9. Housing [both direct and indirect – loans upto Rs.5 lakhs (direct loans upto Rs 10 lakh in urban/ metropolitan areas), Loans upto Rs 1 lakh and Rs 2 lakh for repairing of houses in rural/ semi-urban and urban areas respectively].

10. Consumption loans (under the consumption credit scheme for weaker sections)

11. Micro-credit provided by banks either directly or through any intermediaty; Loans to self help groups(SHGs) / Non Governmental Organisations (NGOs) for onlending to SHGs

12. Loans to the software industry (having credit limit not exceeding Rs 1 crore from the banking system)

13. Loans to specified industries in the food and agro-processing sector having investment in plant and machinery up to Rs 5 crore.

14. Investment by banks in venture capital (venture capital funds/ companies registered with SEBI)

4. What constitutes ‘Direct Finance’ for Agricultural Purposes ?

Ans : Direct Agricultural advances denote advances given by banks directly to farmers for agricultural purposes. These include short-term loans for raising crops i.e. for crop loans. In addition, advances upto Rs. 5 lakh to farmers against pledge/hypothecation of agricultural produce (including warehouse receipts) for a period not exceeding 12 months, where the farmers were given crop loans for raising the produce, provided the borrowers draw credit from one bank.

Direct finance also includes medium and long-term loans (Provided directly to farmers for financing production and development needs) such as Purchase of agricultural implements and machinery, Development of irrigation potential, Reclamation and Land Development Schemes, Construction of farm buildings and structures, etc. Other types of direct finance to farmers includes loans to plantations, development of allied activities such as fishery, poultry etc and also establishment of bio-gas plants, purchase of land for agricultural purposes by small and marginal farmers and loans to agri-clinics and agri-business centres.

5. What constitutes ‘Indirect Finance’ to Agriculture ?

Indirect finance denotes to finance provided by banks to farmers indirectly, i.e., through other agencies. Important items included under indirect finance to agriculture are as under :

(i) Credit for financing the distribution of fertilisers, pesticides, seeds, etc.

(ii) Loans upto Rs. 25 lakhs granted for financing distribution of inputs for the allied activities such as, cattle feed, poultry feed, etc.

(iii) Loans to Electricity Boards for reimbursing the expenditure already incurred by them for providing low tension connection from step-down point to individual farmers for energising their wells.

(iv) Loans to State Electricity Boards for Systems Improvement Scheme under Special Project Agriculture (SI-SPA).

(v) Deposits held by the banks in Rural Infrastructure Development Fund (RIDF) maintained with NABARD.

(vi) Subscription to bonds issued by Rural Electrification Corporation (REC) exclusively for financing pump-set energisation programme in rural and semi-urban areas and also for financing System Improvement Programme (SI-SPA).

(vii) Subscriptions to bonds issued by NABARD with the objective of financing agriculture/allied activities.

(viii)Finance extended to dealers in drip irrigation/sprinkler irrigation system/agricultural machinery, subject to the following conditions:

(a) The dealer should be located in the rural/semi-urban areas.

(b) He should be dealing exclusively in such items or if dealing in other products, should be maintaining separate and distinct records in respect of such items.
(c) A ceiling of upto Rs. 20 lakhs per dealer should be observed.

(ix) Loans to Arthias (commission agents in rural/semi-urban areas) for meeting their working capital requirements on account of credit extended to farmers for supply of inputs.

(x) Lending to Non Banking Financial Companies (NBFCs) for on-lending to agriculture.

6. What is the definition of ‘Small Scale Industries’ (SSI) ?

Small scale industrial units are those engaged in the manufacture, processing or preservation of goods and whose investment in plant and machinery (original cost) does not exceed Rs. 1 crore. These would, inter alia, include units engaged in mining or quarrying, servicing and repairing of machinery. In the case of ancillary units, the investment in plant and machinery (original cost) should also not exceed Rs. 1 crore to be classified under small-scale industry.

The investment limit of Rs.1 crore for classification as SSI has been enhanced to Rs.5 crore in respect of certain specified items under hosiery and hand tools by the Government of India.

7. What is the definition of ‘Tiny Enterprises’ ?

The status of ‘Tiny Enterprises’ is given to all small scale units whose investment in plant & machinery is upto Rs. 25 lakhs, irrespective of the location of the unit.

8. What are ‘Small Scale Service & Business Enterprises’ (SSSBE’s) ?

9. What does indirect finance in the small-scale industrial sector include?

Indirect finance to SSI includes the following important items:

Financing of agencies involved in assisting the decentralised sector in the supply of inputs and marketing of outputs of artisans, village and cottage industries.
Finance extended to Government sponsored Corporation/organisations providing funds to the weaker sections in the priority sector.
Advances to handloom co-operatives.
Term finance/loans in the form of lines of credit made available to State Industrial Development Corporation/State Financial Corporations for financing SSIs.
Funds provided by banks to SIDBI/SFCs by way of rediscounting of bills.
Subscription to bonds floated by SIDBI, SFCS, SIDCS and NSIC exclusively for financing SSI units.
Subscription to bonds issued by NABARD with the objective of financing exclusively non-farm sector.
Financing of NBFCS or other intermediaries for on-lending to the tiny sector.
Deposits placed with SIDBI by Foreign Banks in fulfilment of shortfall in attaining priority sector targets.
Bank finance to HUDCO either as a line of credit or by way of investment in special bonds issued by HUDCO for on-lending to artisans, handloom weavers, etc. under tiny sector may be treated as indirect lending to SSI (Tiny) Sector.

10. What type of investments made by banks are reckoned under priority sector ?

Investments made by the banks in special bonds issued by the specified institutions could be reckoned as part of priority sector advances, subject to the following conditions:

State Financial Corporations (SFCs)/State Industrial Development Corporations (SIDCs)

Subscription to bonds exclusively floated by SFCs & SIDCs for financing SSI units will be eligible for inclusion under priority sector as indirect finance to SSI.

Rural Electrification Corporation (REC)

Subscription to special bonds issued by REC exclusively for financing pump-set energisation programme in rural and semi-urban areas and the System Improvement Programme under its Special Projects Agriculture (SI-SPA) will be eligible for inclusion under priority sector lending as indirect finance to agriculture.

NABARD

Subscription to bonds issued by NABARD with the objective of financing exclusively agriculture/allied activities and the non-farm sector will be eligible for inclusion under the priority sector as indirect finance to agriculture/ SSI, as the case may be.

Small Industries Development Bank of India (SIDBI)

Subscriptions to bonds exclusively floated by SIDBI for financing of SSI units will be eligible for inclusion under priority sector as indirect finance to SSIs.

The National Small Industries Corporation Ltd. (NSIC)

Subscription to bonds issued by NSIC exclusively for financing of SSI units will be eligible for inclusion under priority sector as indirect finance to SSIs.

National Housing Bank (NHB)

Subscription to bonds issued by NHB exclusively for financing of housing, irrespective of the loan size per dwelling unit, will be eligible for inclusion under priority sector advances as indirect housing finance.

Housing & Urban Development Corporation (HUDCO)

Subscription to bonds issued by HUDCO exclusively for financing of housing, irrespective of the loan size per dwelling unit, will be eligible for inclusion under priority sector advances as indirect housing finance.

Investment in special bonds issued by HUDCO for on-lending to artisans, handloom weavers, etc. under tiny sector will be classified as indirect lending to SSI (Tiny) sector.

11. What are the weaker sections within the priority sector ?

The weaker sections under priority sector include the following:

Small and marginal farmers with land holding of 5 acres and less and landless labourers, tenant farmers and share croppers.
Artisans, village and cottage industries where individual credit limits do not exceed Rs. 50,000/-
Beneficiaries of Swarnjayanti Gram Swarojgar Yojana (SGSY)
Scheduled Castes and Scheduled Tribes
Beneficiaries of Differential Rate of Interest (DRI) scheme
Beneficiaries under Swarna Jayanti Shahari Rojgar Yojana (SJSRY)
Beneficiaries under the Scheme for Liberation and Rehabilitation of Scavangers (SLRS)
Self Help Groups (SHGs)

12. What action is taken in the case of non-achievement of priority sector lending target by a bank ?

Domestic scheduled commercial banks having shortfall in lending to priority sector / agriculture are allocated amounts for contribution to the Rural Infrastructure Development Fund (RIDF) established in NABARD. Details regarding operationalisation of the RIDF such as the amounts to be deposited by banks, interest rates on deposits, period of deposits etc., are decided every year after announcement in the Union Budget about setting up of RIDF.
In the case of foreign banks operating in India which fail to achieve the priority sector lending target or sub-targets, an amount equivalent to the shortfall is required to be deposited with SIDBI for one year at the interest rate of 8 percent per annum.

13. Whether there is any time limit for disposal of loan applications ?

All loan applications upto a credit limit of Rs. 25,000/- should be disposed of within a fortnight and those for over Rs. 25,000/- within 8 to 9 weeks.

14. What is the rate of interest for loans under priority sector ?

As per the current interest rate policy, in the case of loans upto Rs 2 lakh, the interest rate should not exceed the prime lending rate (PLR) of the bank, while in the case of loans above Rs 2 lakh, banks are free to determine the interest rate.

15. How is priority sector lending monitored by the Reserve Bank ?

Priority sector lending by commercial banks is monitored by Reserve Bank of India through periodical Returns received from them. Performance of banks is also reviewed in the various fora set up under the Lead Bank Scheme (at State, District and Block levels).

Global Markets this week

2008-12-26T03:00:00.000-08:00

The markets has been extremelly volatile this week. The Indian SENSEX shed approximately 700 points and shed 239 points on Friday.

The Crude which was once soaring at $120/barrel, is now hovering at $36/barrel.

Inflation at 6.61%, going lower

2008-12-26T02:37:00.000-08:00

Inflation has now reached 6.61% for the week ended Dec 6. It is likely to go lower, from reduced petrol prices, interest rate cuts and drop in global crude prices ($36 and not quite counting). Here's the inflation chart - the current WPI index.

British economy shrinks 0.6 pct in 3rd quarter

2008-12-24T21:06:00.000-08:00

Britain's economy contracts 0.6 percent in 3rd quarter, heading for official recession

LONDON (AP) -- The British economy contracted by more than previously thought during the third quarter of 2008, revised official figures showed Tuesday, stoking market expectations that the Bank of England may cut interest rates to near zero percent in the new year.

US GDP shrank 0.5 percent in third quarter as forecast

2008-12-24T21:04:00.000-08:00

WASHINGTON (Reuters) - The economy shrank at a 0.5 percent annual pace in the third quarter as expected after consumers and businesses cut spending and the country's recession gathered steam, government data showed on Tuesday.

Jaiprakash Associates merges its companies into a Single Entitiy

2008-12-23T21:08:00.000-08:00

Jaiprakash Associates informed the market that on December 22nd 2008 they have approved the amalgamation of Jaypee Cement Ltd (JCL), Gujarat Anjan Cement Ltd (GACL), Jaypee Hotels Ltd (JHL) and Jaiprakash Enterprises Ltd (JEL), (the Transferor Companies) with Jaiprakash Associates Ltd (the Transferee Company).

...............................................................................................................................................................................
Record Date will be fixed soon and the stocks will be trasfered in the following ratio:

If you have 10 JCL you will get 1 Jaiprakash Associates of Rs. 2 each.
If you have 11 GACL you will get 1 Jaiprakash Associates of Rs. 2 each.
If you have 1 JHL you will get 1 Jaiprakash Associates of Rs. 2 each.
If you have 1 JEL you will get 1 Jaiprakash Associates of Rs. 2 each.

Satyam Computer Services barred from doing business with World Bank

2008-12-23T21:03:00.001-08:00

Satyam Computer Services is barred from doing business with World Bank for the next 8 years this is kind of blow to satyam which is like trying to get out of the acquisition mess of Maytas Infra and Maytas Properties.There is some confirmed news in FOX new service that is saying this that st least in the earlier case of acquisition there is not direct impact in the revenue but this is big and it impacts the projects that they would have got from world bank and also this will impact the Clients Confidence of any Banks that they might get project from .The reason for barring i heard is that they provided improper benefits to bank staff and failed to maintain documentation to support fees charged for its subcontractors.
This came into effect from February and from that moment to September think it was temporary barring and now they have may be come out with the verdict after September.So today there was some rumor also that the President Ramalinga Raju is resigning and not sure if it was true the stock saw some pressure and closed at 140 , tomorrow will be more interesting to see.Already the stock got down by 13 to 15 percent today in ADR.

Major Terrorist attacks in India since 2003

2008-12-05T05:47:00.000-08:00

Scores of tourists are being held hostage in two of the Mumbai's top hotels officials said on Thursday, after at least 101 people were killed in a wave of armed attacks in the Indian financial capital.

Mumbai has been repeatedly hit by deadly militant attacks over the past 15 years, the worst of which targeted its suburban rail network and killed more than 180 people in July 2006.

Following is a chronology of some of the major attacks in India in the past five years:

March 13, 2003 - Bomb attack on a commuter train in Mumbai kills 11 people.

Aug. 25, 2003 - Two car bombs kill about 60 in Mumbai.

Aug. 15, 2004 - A bomb explodes in the northeastern state of Assam, killing 16 people, mostly schoolchildren, and wounding dozens.

Oct. 29, 2005 - Sixty-six people are killed when three blasts rip through markets in New Delhi.

March 7, 2006 - At least 15 people are killed and 60 wounded in three blasts in the northern Hindu pilgrimage city of Varanasi.

July 11, 2006 - More than 180 people are killed in seven bomb explosions at railway stations and on trains in Mumbai that are blamed on Islamist militants.

Sept. 8, 2006 - At least 32 people are killed in a series of explosions, including one near a mosque, in Malegaon town, 260 km northeast of Mumbai.

Feb. 19, 2007 - Two bombs explode aboard a train heading from India to Pakistan; at least 66 passengers, most of them Pakistanis, burn to death.

May 18, 2007 - A bomb explodes during Friday prayers at a historic mosque in the southern city of Hyderabad, killing 11 worshippers. Police later shoot dead five people in clashes with hundreds of enraged Muslims who protest against the attack.

Aug. 25, 2007 - Three coordinated explosions at an amusement park and a street stall in Hyderabad kill at least 40 people.

May 13, 2008 - Seven bombs rip through the crowded streets of the western city of Jaipur, killing at least 63 people in markets and outside Hindu temples.

July 25 - Eight small bombs hit the IT city of Bangalore, killing at least one woman and wounding at least 15.

July 26 - At least 16 small bombs explode in Ahmedabad in the state of Gujarat, killing 45 people and wounding 161. A little-known group called the "Indian Mujahideen" claims responsibility for the attack and the May 13 attack in Jaipur.

Sept 13 - At least five bombs explode in crowded markets and streets in the heart of New Delhi, killing at least 18 people and injuring scores more. The Indian Mujahideen again claim responsibility.

Oct 30 - Eleven bomb blasts rip through Guwahati, the main city of northeastern Assam state. Detonated in quick succession, they kill at least 68 people and wound 335.

Nov 26 - At least 101 people are killed in Mumbai as an unidentified number of armed attackers shoot at and toss grenades into crowds at landmark hotels and buildings.

Nov 27 - Scores of guests and workers remain trapped by gunmen inside the Trident-Oberoi and Taj Mahal hotels.

Dow crashes by 680 points after recession news

2008-12-01T21:07:00.000-08:00

Dow jones today crashed by almost 680 points, This is the 4th biggest single day loss in the history.The decline was almost 7.7 percent which is like 12th worst percentage drop on a single day.It all started when the US investors went through the Holiday sales report and also industrial growth which had already crashed the market but the whole market crash happened after the recession data came in from NBER which i have talked about it in the last post.

Market movers

U.S. manufacturing contracts more-than-expected in November
U.S. credit card industry may cut credit lines by over $2 trillion
Black Friday sales up 3.0%, according to ShopperTrak
NBER officially declares U.S. recession started in Dec. 2007

Chidambaram is Home Minister after Shivraj Patil Quits

2008-12-01T01:28:00.000-08:00

After the Mumbai terror attack everything was clear that Mr.Home Minister dint do his homework which has led to this big loophole.Im just thinking if we are given a job like this we will be like traveling to every state not just the metros but to every state make sure law and order is under control and see if all the state is safe from all the side , I’m not saying we will do this all the time at least when we know that there is terror attack happening anyway he dint do the job so he had quit now.
Dr.Manmohan Singh has forwarded the resignation to the president and also then recommended the former finance minister Chidambaram as the new home minister and the finance ministry would be directly controlled by Prime minister himself.

Dabur India buys into Fem Care Pharma

2008-11-22T02:15:00.001-08:00

Dabur India informed the market that they had bought 72.15% stake in Fem Care Pharma for Rs 203.7 crore ,which will be paid in full cash , They want to use this as the platform to enter into skin care market.They still have to buy an addtional 20 percent stake in Fem care which is required by takeover regulations act of india.Fem care Pharma closed the market yesterday at 656 or so up by 13 rs.

Japan enters recession: official data

2008-11-19T07:46:00.000-08:00

Japan's economy, the second largest in the world, slipped into recession in the third quarter as companies slashed investment to weather the financial crisis, official data showed Monday.
Japan's economy contracted by 0.1 percent in the three months to September, after shrinking 0.9 percent in the second quarter of the year, according to a preliminary estimate released by the Cabinet Office.
A recession is usually defined as two or more consecutive quarters of negative economic growth.

Germany Officially in a Recession

2008-11-19T07:40:00.000-08:00

German gross domestic product (GDP) contracted by 0.5 percent in the third quarter, putting Europe's largest economy in recession for the first time in five years, Federal Statistics Office figures showed on Thursday.

The bigger than expected quarter-on-quarter drop in growth, adjusted for seasonal, calendar and price effects, was marked by a negative contribution from foreign trade as exports weakened. This more than offset a rise in private and public consumption.

The Office also revised up the second-quarter GDP figure to show a contraction of 0.4 percent, compared with 0.5 percent previously reported. The last time the economy shrank for two quarters was in the first half of 2003, the Office said.

The mid-range forecast of 40 economists polled by Reuters last week was for a quarterly contraction of 0.2 percent in the third quarter.

"A negative effect on gross domestic product came from foreign trade, with a strong increase in imports and weakening exports," the Office said.

On the year, German GDP increased by 1.3 percent in the third quarter after annual growth of 3.3 percent in the April-June period, the figures showed.

Adjusted for working days, GDP expanded by 0.8 percent on the year. There was one more working day in the third quarter of 2008 than in the same period in 2007.

The Office is due to publish a breakdown of the third-quarter GDP figures on Nov. 25.

Maruti Suzuki Launches A-Star

2008-11-19T07:31:00.000-08:00

Maruti Suzuki Launches A-star today. November and December is normally tough time for Auto industry. Maruti Suzuki has released A-Star in order to win some customers in a slowing down market.
Maruti A-Star goes head to head with Huyindai’s i-10. First impression is the interior is kind of good in Hyundai i-10 but the exterior is kind of good in Maruti A-Star, let it run on the road we can see more about it.

Tata Consultancy Services buys Citigroup Global Services for 505 Million Dollar

2008-10-08T22:40:00.000-07:00

Tata Consultancy Services informed the market that it has entered into a agreement with Citigroup for acquiring all of Citi’s stake in Citigroup Global Services,CGSL is india based BPO arm of Citi.This is for a cash dealing of 505 million dollar.First when i heard that they have bought the BPO arm of CITI for a half a billion i was thinking why would TCS do that , but now when i heard more info like there was also a deal made that TCS would process outsourcing services to Citi and its affiliates in an aggregate amount of US$ 2.5 billion over a period of 9.5 years. So this might be also extra reason behind buying into the BPO arm of CITI.

FII Norms Reviewed

2008-10-08T22:26:00.000-07:00

SEBI has taken a wise step by reviewing the P-Note restrictions and FII structure. This positive move will restor confidence in FII and as a result the capital inflow will commence in India. These norms have been announced by SEBI considering the heavy FII sale as seen yesterday where FIIs sold $9.4 billionworth of equity. It is heartening that to restore confidence in Indian stock market CB Bhave, SEBI chairman stated that FII structure is being reviewed and unnecessary curbs on these FII will be removed. Additionally restrictions on ODI's in derivatives have been removed and restrictions also on only 40% ODI in cash investments are to be removed.He further stated that 40% limit on P-notes will also be removed. SEBI as a watchdog of Dallal street is keeping tab on global situation and only thereafter further norms will be reviewed.

Fed Boosts Cash Auctions to $900 Billion, May Do More

2008-10-08T22:20:00.000-07:00

The Federal Reserve will double its auctions of cash to banks to as much as $900 billion and is considering further steps to unfreeze short-term lending markets as the credit crunch deepens.

"The Federal Reserve stands ready to take additional measures as necessary to foster liquid money-market conditions,'' the central bank said in a statement released in Washington today. Fed and Treasury officials are ``consulting with market participants on ways to provide additional support for term unsecured funding markets,'' the statement said.

Today's steps follow a hoarding of cash by banks that sent the premium on the three-month London interbank offered rate over the Fed's benchmark interest rate to a record. Industrial companies are also finding it harder to raise cash after the market for commercial paper shrank to a three-year low as investors flee even borrowers with few links to mortgages.

``It is pretty much all out war,'' said Christopher Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ Ltd., New York. ``They are pulling out all the stops to try and get borrowers and lenders to meet and do transactions once again.''

Implementing part of last week's emergency legislation to shore up the financial industry, the Fed said today it will begin paying interest on the cash reserves banks hold at the central bank. The step should give Fed officials greater power to inject cash into banks without interfering with their benchmark interest rate, which stands at 2 percent.

Indian rupee slides to weakest close since June '03

2008-10-08T22:15:00.000-07:00

India's rupee closed above 48 per dollar for the first time since June 2003 on Tuesday.
* Weak stocks, stronger dollar overseas weigh
* Dollar demand from oil companies hurts
* Dollar sales by corporates help recover some losses (Updates to close)

Stocks giving high Dividend

2008-10-08T00:47:00.000-07:00

The recent volatilty on the stock markets is posing challenges to investors looking for safe returns. Highdividend-yield stocks offer a safe haven to investors where safety is more of a priority than high returns. So even if the market remains volatile, going ahead, an investor can still get a decent return on investment, thanks to good dividend yielding stocks.

High dividend yield companies

The dividends are paid no matter what direction the stocks move and can provide a higher yield on investment in a weak market.

Modified Market Timings

2008-10-07T12:40:00.000-07:00

The Exchange has decided to change the market timings due to SUN OUTAGE from September 24, 2008 to October 08, 2008.
For Future & Options:

For Equit/Stocks: