NEW DELHI: The recent rise in income levels has helped the middle class cope with higher prices, but the poor have been adversely affected. What also helped the middle class and the upper middle class was the lower spend on food as a proportion of their total income. In some segments, such as consumer durables, there has been a decrease in prices.
"The middle class population spends a bulk of their income on discretionary items like TV, oven etc and therefore benefit from the price decline across these categories... Given that poor households spend (a) higher proportion of their income on food related articles, WPI inflation understates inflation faced by poor households," a study by rating agency Crisil said.
And, the evidence is before us. Several poor households had to give up on consuming dal, when prices rose, and have had to cut down on milk purchases given the rise in prices.
"It suggests that the government is pro-rich and anti-poor," said a top government economist.
Economists, however, did not agree with the report completely. "I would be skeptical about these numbers. We would have to see how these have been modeled. Savings-consumption trade-off depends on a variety of factors," said Pronab Sen, senior advisor in the Planning Commission and the former Chief Statistician of India.
Tuesday, June 28, 2011
Monday, June 27, 2011
Larsen May Seek Partner for Electrical Business to Add Products
By Ganesh Nagarajan - Jun 27, 2011
Larsen & Toubro Ltd. (LT), India’s biggest engineering company, may seek a partner for its electrical and automation business to expand its portfolio of switchgears, energy meters and control systems.
“By entering into a joint venture with a foreign company, we enhance our product range,” K.V. Rangaswami, a director on Larsen’s board, said in a June 24 interview in the southern Indian city of Chennai. “A lot can happen once there is a successful partnership.” Some companies have made initial contact, he said without naming them.
Shareholders of the Mumbai-based company last month approved a plan to spin off the division making electrical meters, switchgears and industrial automation products into a separate entity. A foreign partner will be able to tap Larsen’s existing customers, said Rupesh Kumar, an analyst at KR Choksey Shares & Securities Pvt. in Mumbai.
“Demand for electrical equipment in India is very high,” said Kumar, who has a “buy” rating on the stock. “So finding a technology partner is very easy. They can get anybody.”
Chairman A.M. Naik on April 19 denied Larsen had plans to sell its electrical business. The company is in talks to sell its electrical and electronics unit for $3 billion, Reuters reported, citing two people with knowledge of the matter, in April.
Schneider Electric SA and Eaton Corp. were among the possible buyers, Reuters reported.
Plan to Decentralize
Larsen, which has 64 businesses including finance and computer software, plans to split itself into nine units and five subsidiaries to speed decisions and boost growth. This step will help the company focus on each business and simplify its structure, Kumar said.
Negotiations with possible partners may take time, said Rangaswami, who also is president of Larsen’s construction business and is due to retire this month.
Larsen gained 2.7 percent to 1,786.5 rupees at the 3:30 p.m. close in Mumbai yesterday. The stock has declined 9.7 percent this year, compared with a 10.2 percent fall in the benchmark Sensitive Index of the Bombay Stock Exchange.
The electrical and automation business posted a profit before interest and tax of 3.9 billion rupees ($86 million) on revenue of 36.8 billion rupees in the year ended March 31, 2010, according to a company statement on April 6.
To contact the reporter on this story: Ganesh Nagarajan in Chennai at gnagarajan1@bloomberg.net
To contact the editor responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Larsen & Toubro Ltd. (LT), India’s biggest engineering company, may seek a partner for its electrical and automation business to expand its portfolio of switchgears, energy meters and control systems.
“By entering into a joint venture with a foreign company, we enhance our product range,” K.V. Rangaswami, a director on Larsen’s board, said in a June 24 interview in the southern Indian city of Chennai. “A lot can happen once there is a successful partnership.” Some companies have made initial contact, he said without naming them.
Shareholders of the Mumbai-based company last month approved a plan to spin off the division making electrical meters, switchgears and industrial automation products into a separate entity. A foreign partner will be able to tap Larsen’s existing customers, said Rupesh Kumar, an analyst at KR Choksey Shares & Securities Pvt. in Mumbai.
“Demand for electrical equipment in India is very high,” said Kumar, who has a “buy” rating on the stock. “So finding a technology partner is very easy. They can get anybody.”
Chairman A.M. Naik on April 19 denied Larsen had plans to sell its electrical business. The company is in talks to sell its electrical and electronics unit for $3 billion, Reuters reported, citing two people with knowledge of the matter, in April.
Schneider Electric SA and Eaton Corp. were among the possible buyers, Reuters reported.
Plan to Decentralize
Larsen, which has 64 businesses including finance and computer software, plans to split itself into nine units and five subsidiaries to speed decisions and boost growth. This step will help the company focus on each business and simplify its structure, Kumar said.
Negotiations with possible partners may take time, said Rangaswami, who also is president of Larsen’s construction business and is due to retire this month.
Larsen gained 2.7 percent to 1,786.5 rupees at the 3:30 p.m. close in Mumbai yesterday. The stock has declined 9.7 percent this year, compared with a 10.2 percent fall in the benchmark Sensitive Index of the Bombay Stock Exchange.
The electrical and automation business posted a profit before interest and tax of 3.9 billion rupees ($86 million) on revenue of 36.8 billion rupees in the year ended March 31, 2010, according to a company statement on April 6.
To contact the reporter on this story: Ganesh Nagarajan in Chennai at gnagarajan1@bloomberg.net
To contact the editor responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Sunday, June 26, 2011
Bank of America Sees Overseas Takeovers by India Companies Curbed by Rates
By George Smith Alexander and Ruth David - Jun 26, 2011
Overseas acquisitions by Indian companies may stay subdued in 2011 as the highest interest rates in more than two years deter chief executives from borrowing for expansion, Bank of America Corp. (BAC) said.
At the same time, inbound deals are likely to rise as foreign companies seize on low interest rates in Europe and the U.S. to buy assets in Asia’s second-fastest growing major economy, said Bala Swaminathan, vice chairman of corporate and investment banking at Bank of America’s Indian unit.
Foreign acquisitions of Indian companies are outpacing outbound transactions this year for the first time in at least a decade, after the central bank raised interest rates 10 times since the start of 2010, data compiled by Bloomberg show. The difference in yields between India’s AAA-rated corporate bonds and similar-maturity U.S. notes touched the highest in at least six years earlier this month, according to the data.
“Why would an Indian company want to borrow at a very high interest rate to buy into markets which are not growing?” Swaminathan said in a June 21 interview in Mumbai. “The way interest rates are poised, international companies can borrow at one or two percent and use that money to come and buy into India.”
While India’s economy grew about four times the pace of the U.S. in the quarter through March, the local benchmark stock index has slumped 11 percent this year, narrowing the valuation gap with the Standard & Poor’s 500 Index. That’s providing added incentive for foreign companies to attempt acquisitions in the nation of 1.2 billion people.
Valuations Fall
Companies on the Bombay Stock Exchange Sensitive Index trade at 14.8 times estimated full-year earnings, the lowest level in more than two years, data compiled by Bloomberg show. That compares with 13 times projected profit for the S&P 500.
The value of mergers involving Indian companies has slumped 32 percent this year to $25 billion, according to Bloomberg data. Inbound deals accounted for 62 percent of the total, up from 27 percent in the same period a year earlier, the data show.
Indian corporate owners’ limited ability to reduce their controlling stakes further may deter multibillion-dollar takeovers abroad, Swaminathan said. He predicted most deals could be in the $50 million to $500 million range.
“Expansionary capital, more than anything else, is sentiment-driven and right now the sentiment in corporate India is not very buoyant,” said Swaminathan, who joined Bank of America from Standard Chartered Plc in August last year.
“Discretionary expenditure on expansion is being deferred until such time as there is clarity.”
Reliance Industries Ltd. (RIL), controlled by billionaire Mukesh Ambani, sold stakes in 23 oil and gas areas in India to London- based BP Plc in February for $7.2 billion, the biggest inbound transaction in more than four years.
TPG Capital and Carlyle Group are among private equity companies in talks for buying a stake in Reliance Communications Ltd.’s mobile-phone towers unit, three people with knowledge of the matter said earlier this month. Reliance Communications is controlled by Anil Ambani, Mukesh Ambani’s brother.
Financing Support
Indian companies seeking acquisitions are increasingly asking banks to help finance the deals, according to Swaminathan.
“Wherever we are doing a transaction on the buy side, it’s reasonable to expect that if there is leverage in the transaction we will part of the leverage,” he said. Bank of America has “significantly” expanded its balance sheet in India since 2010, Swaminathan added without providing details.
The Charlotte, North Carolina-based lender is boosting staff in investment and corporate banking in India, the executive said, declining to give figures for hiring.
More Indian companies may sell divisions to free up cash for expansion, Swaminathan said. J.B. Chemicals & Pharmaceuticals Ltd., based in Mumbai, sold its over-the-counter cough and cold medicine brand in Russia, Doktor Mom, to a unit of Johnson & Johnson in May.
To contact the reporter on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net Ruth David in Mumbai at rdavid9@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Overseas acquisitions by Indian companies may stay subdued in 2011 as the highest interest rates in more than two years deter chief executives from borrowing for expansion, Bank of America Corp. (BAC) said.
At the same time, inbound deals are likely to rise as foreign companies seize on low interest rates in Europe and the U.S. to buy assets in Asia’s second-fastest growing major economy, said Bala Swaminathan, vice chairman of corporate and investment banking at Bank of America’s Indian unit.
Foreign acquisitions of Indian companies are outpacing outbound transactions this year for the first time in at least a decade, after the central bank raised interest rates 10 times since the start of 2010, data compiled by Bloomberg show. The difference in yields between India’s AAA-rated corporate bonds and similar-maturity U.S. notes touched the highest in at least six years earlier this month, according to the data.
“Why would an Indian company want to borrow at a very high interest rate to buy into markets which are not growing?” Swaminathan said in a June 21 interview in Mumbai. “The way interest rates are poised, international companies can borrow at one or two percent and use that money to come and buy into India.”
While India’s economy grew about four times the pace of the U.S. in the quarter through March, the local benchmark stock index has slumped 11 percent this year, narrowing the valuation gap with the Standard & Poor’s 500 Index. That’s providing added incentive for foreign companies to attempt acquisitions in the nation of 1.2 billion people.
Valuations Fall
Companies on the Bombay Stock Exchange Sensitive Index trade at 14.8 times estimated full-year earnings, the lowest level in more than two years, data compiled by Bloomberg show. That compares with 13 times projected profit for the S&P 500.
The value of mergers involving Indian companies has slumped 32 percent this year to $25 billion, according to Bloomberg data. Inbound deals accounted for 62 percent of the total, up from 27 percent in the same period a year earlier, the data show.
Indian corporate owners’ limited ability to reduce their controlling stakes further may deter multibillion-dollar takeovers abroad, Swaminathan said. He predicted most deals could be in the $50 million to $500 million range.
“Expansionary capital, more than anything else, is sentiment-driven and right now the sentiment in corporate India is not very buoyant,” said Swaminathan, who joined Bank of America from Standard Chartered Plc in August last year.
“Discretionary expenditure on expansion is being deferred until such time as there is clarity.”
Reliance Industries Ltd. (RIL), controlled by billionaire Mukesh Ambani, sold stakes in 23 oil and gas areas in India to London- based BP Plc in February for $7.2 billion, the biggest inbound transaction in more than four years.
TPG Capital and Carlyle Group are among private equity companies in talks for buying a stake in Reliance Communications Ltd.’s mobile-phone towers unit, three people with knowledge of the matter said earlier this month. Reliance Communications is controlled by Anil Ambani, Mukesh Ambani’s brother.
Financing Support
Indian companies seeking acquisitions are increasingly asking banks to help finance the deals, according to Swaminathan.
“Wherever we are doing a transaction on the buy side, it’s reasonable to expect that if there is leverage in the transaction we will part of the leverage,” he said. Bank of America has “significantly” expanded its balance sheet in India since 2010, Swaminathan added without providing details.
The Charlotte, North Carolina-based lender is boosting staff in investment and corporate banking in India, the executive said, declining to give figures for hiring.
More Indian companies may sell divisions to free up cash for expansion, Swaminathan said. J.B. Chemicals & Pharmaceuticals Ltd., based in Mumbai, sold its over-the-counter cough and cold medicine brand in Russia, Doktor Mom, to a unit of Johnson & Johnson in May.
To contact the reporter on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net Ruth David in Mumbai at rdavid9@bloomberg.net
To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Saturday, June 25, 2011
India Raises Diesel Prices First Time in a Year to Cut Subsidies, Deficit
By Rakteem Katakey and Anto Antony - Jun 24, 2011
India raised diesel and cooking gas prices for the first time in a year to reduce losses at state- owned refiners and narrow its budget deficit to a four-year low.
A panel of Indian ministers, led by Finance Minister Pranab Mukherjee, allowed refiners including Indian Oil Corp., the nation’s biggest, to increase diesel prices by 3 rupees (7 cents) a liter, kerosene by 2 rupees a liter and cooking gas by 50 rupees for every 14.2 kilogram bottle, Oil Minister S. Jaipal Reddy said in New Delhi yesterday. The tariffs don’t take into account the taxes imposed by state governments, he said.
Higher fuel costs will accelerate inflation in Asia’s second-largest energy consumer, where diesel and cooking-fuel prices are capped to protect the livelihoods of 75 percent of the population the World Bank says survives on less than $2 a day. Inflation in India is already more than twice the rate in the U.S. and almost four times Germany’s.
“I am sandwiched between economists on one side and populists on the other,” Reddy said. “We have to watch crude prices, we have to look at other devices” to compensate the refiners for the remaining revenue loss, estimated to reach 1.2 trillion rupees in the current year ending March 31.
Reddy said the government also removed the 5 percent customs duty on crude oil, cut the levy on diesel and gasoline by 5 percentage points, and lowered the excise duty on diesel to 2 rupees a liter from 4.6 rupees a liter. The tax cuts will cost the government 490 billion rupees, he estimated.
Duty Cuts
“I have taken the risk of reducing the duties so that relief can be given to consumers,” Mukherjee told reporters in New Delhi yesterday.
Shares of state refiners rose in Mumbai trading yesterday. Indian Oil gained 2.5 percent to 336.90 rupees, compared with a 2.9 percent gain in the benchmark Sensitive Index. Bharat Petroleum Corp. increased 2.8 percent to 634.70 rupees, while Hindustan Petroleum Corp. advanced 6.1 percent to 392.60 rupees. State-run Oil & Natural Gas Corp., which bears part of the refiners’ subsidy burden, rose 3.1 percent to 272.80 rupees.
India last raised prices of diesel, kerosene and cooking gas on June 26 last year. High food prices and provincial elections prevented Prime Minister Manmohan Singh’s government from boosting prices of the fuel that is used to run everything from trucks and water pumps to electricity-generator sets.
Rising Prices
India’s inflation accelerated to 9.06 percent in May. An index measuring wholesale prices of agricultural products rose to a two-month high of 9.13 percent in the week ended June 11 from a year earlier, the commerce ministry said June 23.
Diesel has a 4.7 percent weighting in India’s benchmark wholesale-price index and gasoline 1.1 percent.
Oil for August delivery rose 14 cents to $91.16 a barrel on the New York Mercantile Exchange yesterday. The August contract is down 2.4 percent this week. Crude oil in New York trading increased 17 percent since June 28, 2010.
China, the world’s fastest-growing major economy, raised diesel prices by 400 yuan ($62) a metric ton, or 0.34 yuan a liter, on April 7, the fourth increase since Oct. 26 last year, according to data on the National Development and Reform Commission website.
On May 15, Indian Oil boosted the price of gasoline by 5 rupees a liter to 63.37 rupees, the biggest increase since June 2008.
State refiners were losing 4.6 billion rupees a day by selling diesel, kerosene and liquefied petroleum gas below cost, the petroleum ministry said before yesterday’s announcement. The government gives the refiners cash to compensate part of the losses.
Mukherjee, in his Feb. 28 budget, estimated a spending of 236.4 billion rupees on fuel subsidies in the year to March 31, less than the 383.8 billion rupees spent in the previous 12 months.
India aims to narrow the budget deficit to 4.6 percent of gross domestic product in the current fiscal year through March, from 4.7 percent of gross domestic product in the previous 12 months.
To contact the reporters on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net; Anto Antony in New Delhi at aantony1@bloomberg.net
To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
India raised diesel and cooking gas prices for the first time in a year to reduce losses at state- owned refiners and narrow its budget deficit to a four-year low.
A panel of Indian ministers, led by Finance Minister Pranab Mukherjee, allowed refiners including Indian Oil Corp., the nation’s biggest, to increase diesel prices by 3 rupees (7 cents) a liter, kerosene by 2 rupees a liter and cooking gas by 50 rupees for every 14.2 kilogram bottle, Oil Minister S. Jaipal Reddy said in New Delhi yesterday. The tariffs don’t take into account the taxes imposed by state governments, he said.
Higher fuel costs will accelerate inflation in Asia’s second-largest energy consumer, where diesel and cooking-fuel prices are capped to protect the livelihoods of 75 percent of the population the World Bank says survives on less than $2 a day. Inflation in India is already more than twice the rate in the U.S. and almost four times Germany’s.
“I am sandwiched between economists on one side and populists on the other,” Reddy said. “We have to watch crude prices, we have to look at other devices” to compensate the refiners for the remaining revenue loss, estimated to reach 1.2 trillion rupees in the current year ending March 31.
Reddy said the government also removed the 5 percent customs duty on crude oil, cut the levy on diesel and gasoline by 5 percentage points, and lowered the excise duty on diesel to 2 rupees a liter from 4.6 rupees a liter. The tax cuts will cost the government 490 billion rupees, he estimated.
Duty Cuts
“I have taken the risk of reducing the duties so that relief can be given to consumers,” Mukherjee told reporters in New Delhi yesterday.
Shares of state refiners rose in Mumbai trading yesterday. Indian Oil gained 2.5 percent to 336.90 rupees, compared with a 2.9 percent gain in the benchmark Sensitive Index. Bharat Petroleum Corp. increased 2.8 percent to 634.70 rupees, while Hindustan Petroleum Corp. advanced 6.1 percent to 392.60 rupees. State-run Oil & Natural Gas Corp., which bears part of the refiners’ subsidy burden, rose 3.1 percent to 272.80 rupees.
India last raised prices of diesel, kerosene and cooking gas on June 26 last year. High food prices and provincial elections prevented Prime Minister Manmohan Singh’s government from boosting prices of the fuel that is used to run everything from trucks and water pumps to electricity-generator sets.
Rising Prices
India’s inflation accelerated to 9.06 percent in May. An index measuring wholesale prices of agricultural products rose to a two-month high of 9.13 percent in the week ended June 11 from a year earlier, the commerce ministry said June 23.
Diesel has a 4.7 percent weighting in India’s benchmark wholesale-price index and gasoline 1.1 percent.
Oil for August delivery rose 14 cents to $91.16 a barrel on the New York Mercantile Exchange yesterday. The August contract is down 2.4 percent this week. Crude oil in New York trading increased 17 percent since June 28, 2010.
China, the world’s fastest-growing major economy, raised diesel prices by 400 yuan ($62) a metric ton, or 0.34 yuan a liter, on April 7, the fourth increase since Oct. 26 last year, according to data on the National Development and Reform Commission website.
On May 15, Indian Oil boosted the price of gasoline by 5 rupees a liter to 63.37 rupees, the biggest increase since June 2008.
State refiners were losing 4.6 billion rupees a day by selling diesel, kerosene and liquefied petroleum gas below cost, the petroleum ministry said before yesterday’s announcement. The government gives the refiners cash to compensate part of the losses.
Mukherjee, in his Feb. 28 budget, estimated a spending of 236.4 billion rupees on fuel subsidies in the year to March 31, less than the 383.8 billion rupees spent in the previous 12 months.
India aims to narrow the budget deficit to 4.6 percent of gross domestic product in the current fiscal year through March, from 4.7 percent of gross domestic product in the previous 12 months.
To contact the reporters on this story: Rakteem Katakey in New Delhi at rkatakey@bloomberg.net; Anto Antony in New Delhi at aantony1@bloomberg.net
To contact the editor responsible for this story: Amit Prakash at aprakash1@bloomberg.net
®2011 BLOOMBERG L.P. ALL RIGHTS RESERVED.
Friday, June 24, 2011
Indian groups double overseas investments
By James Lamont in New Delhi
Investments by Indian companies overseas have more than doubled in the past year, highlighting their widespread expansion outside of their fast-growing but corruption-stricken home market.
The Reserve Bank of India on Thursday released data showing that foreign direct investment by Indian multinationals surged to $43.9bn in the 2010-11 fiscal year, compared with $18bn in the previous year.
The latest figures represent a big shift in outward investment. In the 2007-08 fiscal year, outward investment totalled $21bn.
The central bank said that the rise reflected regulatory liberalisation – such as greater freedom to invest overseas – to allow leading Indian companies to globalise. It also reflected the drive by many Indian companies to raise capital more cheaply overseas at a time when rupee borrowing costs in India are rising.
“Indian overseas investment policies have been progressively liberalised and simplified to meet the changing needs of a growing economy in a globalised environment,” the RBI said in a statement.
“The policy which was evolved as one of the strategies for export promotion and strengthening economic linkages with other countries has been streamlined significantly in scope and size,” the RBI said.
The heightened outward investment comes as concern deepens that Indian companies are not investing sufficiently in their domestic market.
The RBI has highlighted the need for measures to increase output through investment to help reduce inflation, which at 9.1 per cent in May is the highest in any of the main emerging markets. By comparison, foreign direct investment into India has been falling. Gross FDI inflows in India declined by 32 per cent to $24.2bn in 2010 compared with the previous year. India is one of the few emerging markets where FDI declined last year.
Some Indian business leaders have complained that doing business in India has become more difficult in the wake of a series of high-profile corruption scandals. They are seeking greater opportunities in better regulated and more predictable markets.
Sahara India Pariwar’s £470m ($753m) purchase of the Grosvenor House hotel in central London was one of the highest-profile international acquisitions since the Tata Group snapped up Land Rover and Jaguar, the British car marques, three years ago.
Venkateshwara Hatcheries, a poultry company, bought Blackburn Rovers, an English premiership football club, and Reliance Industries, owned by Mukesh Ambani, has embarked on what is likely to be a sustained buying spree of shale gas assets to build its business in the US.
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Investments by Indian companies overseas have more than doubled in the past year, highlighting their widespread expansion outside of their fast-growing but corruption-stricken home market.
The Reserve Bank of India on Thursday released data showing that foreign direct investment by Indian multinationals surged to $43.9bn in the 2010-11 fiscal year, compared with $18bn in the previous year.
The latest figures represent a big shift in outward investment. In the 2007-08 fiscal year, outward investment totalled $21bn.
The central bank said that the rise reflected regulatory liberalisation – such as greater freedom to invest overseas – to allow leading Indian companies to globalise. It also reflected the drive by many Indian companies to raise capital more cheaply overseas at a time when rupee borrowing costs in India are rising.
“Indian overseas investment policies have been progressively liberalised and simplified to meet the changing needs of a growing economy in a globalised environment,” the RBI said in a statement.
“The policy which was evolved as one of the strategies for export promotion and strengthening economic linkages with other countries has been streamlined significantly in scope and size,” the RBI said.
The heightened outward investment comes as concern deepens that Indian companies are not investing sufficiently in their domestic market.
The RBI has highlighted the need for measures to increase output through investment to help reduce inflation, which at 9.1 per cent in May is the highest in any of the main emerging markets. By comparison, foreign direct investment into India has been falling. Gross FDI inflows in India declined by 32 per cent to $24.2bn in 2010 compared with the previous year. India is one of the few emerging markets where FDI declined last year.
Some Indian business leaders have complained that doing business in India has become more difficult in the wake of a series of high-profile corruption scandals. They are seeking greater opportunities in better regulated and more predictable markets.
Sahara India Pariwar’s £470m ($753m) purchase of the Grosvenor House hotel in central London was one of the highest-profile international acquisitions since the Tata Group snapped up Land Rover and Jaguar, the British car marques, three years ago.
Venkateshwara Hatcheries, a poultry company, bought Blackburn Rovers, an English premiership football club, and Reliance Industries, owned by Mukesh Ambani, has embarked on what is likely to be a sustained buying spree of shale gas assets to build its business in the US.
Printed from: http://www.ft.com/cms/s/0/802e5a08-9d6f-11e0-9a70-00144feabdc0.html
Print a single copy of this article for personal use. Contact us if you wish to print more to distribute to others.
© The Financial Times Ltd 2011 FT and ‘Financial Times’ are trademarks of The Financial Times Ltd. Privacy policy | Terms | Copyright
Thursday, June 23, 2011
Sensex gains 172 points on firm Asian cues
The Bombay Stock Exchange benchmark Sensex gained over 170 points in the morning session today on continued buying by funds and retail investors in IT, PSU, bank and teck sector stocks amid a firming trend in the Asian markets.
At 9.35 a.m., the 30-share BSE index Sensex was up 172.26 points or 0.97 per cent at 17,899.75 and the 50-share NSE index Nifty up 58.6 points or 1.1 per cent at 5,378.60.
Volume toppers during the session were SBI, RIL, ICICI Bank, Tata Motors and Tata Steel. Major Sensex gainers were Infosys, ICICI Bank, SBI, ONGC, TCS, HDFC, HDFC Bank and L&T. ITC and RIL were the major losers.
Among the sectoral indices, IT was up 1.66 per cent, PSU 1.63 per cent, bankex 1.61 per cent and teck 1.49 per cent. Only consumer durables was down 0.48 per cent. Of the total 1,552 stocks traded, 1,088 advanced, 409 declined and 55 remained unchanged.
PTI reports:
During the opening session, the Sensex, which gained 176.86 points in yesterday’s trade, moved up further by 184.83 points to 17,912.32. Similarly, the broad-based National Stock Exchange Nifty index spurted by 55.95 points to 5,375.95.
Brokers attributed the rise in stock prices to increased buying by funds and retail investors, triggered by a firming trend in other Asian bourses.
In addition, covering-up of short positions in view of approaching monthly expiry in the derivatives segment on the NSE also influenced the market sentiment.
Meanwhile, Japan’s Nikkei index gained 0.36 per cent and Hong Kong’s Hang Seng index rose 1.48 per cent in the early trade.
At 9.35 a.m., the 30-share BSE index Sensex was up 172.26 points or 0.97 per cent at 17,899.75 and the 50-share NSE index Nifty up 58.6 points or 1.1 per cent at 5,378.60.
Volume toppers during the session were SBI, RIL, ICICI Bank, Tata Motors and Tata Steel. Major Sensex gainers were Infosys, ICICI Bank, SBI, ONGC, TCS, HDFC, HDFC Bank and L&T. ITC and RIL were the major losers.
Among the sectoral indices, IT was up 1.66 per cent, PSU 1.63 per cent, bankex 1.61 per cent and teck 1.49 per cent. Only consumer durables was down 0.48 per cent. Of the total 1,552 stocks traded, 1,088 advanced, 409 declined and 55 remained unchanged.
PTI reports:
During the opening session, the Sensex, which gained 176.86 points in yesterday’s trade, moved up further by 184.83 points to 17,912.32. Similarly, the broad-based National Stock Exchange Nifty index spurted by 55.95 points to 5,375.95.
Brokers attributed the rise in stock prices to increased buying by funds and retail investors, triggered by a firming trend in other Asian bourses.
In addition, covering-up of short positions in view of approaching monthly expiry in the derivatives segment on the NSE also influenced the market sentiment.
Meanwhile, Japan’s Nikkei index gained 0.36 per cent and Hong Kong’s Hang Seng index rose 1.48 per cent in the early trade.
Markets open strong
The markets started the last trading session of the week on a strong note with the Sensex up 123 points at 17,743 while the Nifty gained 31 points to begin the day at 5351. The broader markets too had a fair opening. The smallcap and the midcap indices are up 0.6% each underperforming the Sensex which gained 0.7% in the opening trades.
Currently the BSE benchmark index has gained 239 points at 17,962 and the Nifty added 69 points at 5,389.
All the sectoral indices started in the positive. Consumer Durables, IT, PSU and Oil & Gas indices gaining 1% are leading the opening gains. Power index had a muted opening with a moderate 0.2% gain.
However in the US markets, stocks closed way off session lows on Thursday on news Greece agreed to a five-year austerity plan, but lingering economic uncertainty ultimately drove the S&P 500 lower, keeping a downward trend in place. The Dow Jones industrial average dropped 0.49% to end at 12,050. The Standard & Poor's 500 lost 0.28% to 1,283.50. But the Nasdaq Composite gained 0.66% to close at 2,686.75.
Meanwhile, the Asian markets largely opened positive with Hang Seng and Seoul Composite indices leading the gains up 1% each. The gains were mostly lead by the airlines stocks after a sharp drop in oil prices and exporters also gaining ground.The Nikkei marginally picked up 0.3% on reports that European Union leaders promised more money to help Greece stave off looming bankruptcy, provided its parliament enacts an austerity plan finalised in fraught last-minute talks with international lenders.
The top Sensex gainers are ONGC and TCS up nearly 2% followed by SBI, Hero Honda,Maruti Suzuki,Infosys,HDFC,ICICI Bank and Reliance Communications gaining 1% each. The sugar stocks rallied as an empowered group of ministers (EGoM) gave a nod for 5 lakh tonnes of sweetener exports.
Market heavyweight, Reliance Industries is the only Sensex scrip which started in the negative, down 1% at Rs 861.
The market breadth is positive. Of the total 1455 stocks traded on the BSE, 995 stocks have advanced while 407 declined.
Currently the BSE benchmark index has gained 239 points at 17,962 and the Nifty added 69 points at 5,389.
All the sectoral indices started in the positive. Consumer Durables, IT, PSU and Oil & Gas indices gaining 1% are leading the opening gains. Power index had a muted opening with a moderate 0.2% gain.
However in the US markets, stocks closed way off session lows on Thursday on news Greece agreed to a five-year austerity plan, but lingering economic uncertainty ultimately drove the S&P 500 lower, keeping a downward trend in place. The Dow Jones industrial average dropped 0.49% to end at 12,050. The Standard & Poor's 500 lost 0.28% to 1,283.50. But the Nasdaq Composite gained 0.66% to close at 2,686.75.
Meanwhile, the Asian markets largely opened positive with Hang Seng and Seoul Composite indices leading the gains up 1% each. The gains were mostly lead by the airlines stocks after a sharp drop in oil prices and exporters also gaining ground.The Nikkei marginally picked up 0.3% on reports that European Union leaders promised more money to help Greece stave off looming bankruptcy, provided its parliament enacts an austerity plan finalised in fraught last-minute talks with international lenders.
The top Sensex gainers are ONGC and TCS up nearly 2% followed by SBI, Hero Honda,Maruti Suzuki,Infosys,HDFC,ICICI Bank and Reliance Communications gaining 1% each. The sugar stocks rallied as an empowered group of ministers (EGoM) gave a nod for 5 lakh tonnes of sweetener exports.
Market heavyweight, Reliance Industries is the only Sensex scrip which started in the negative, down 1% at Rs 861.
The market breadth is positive. Of the total 1455 stocks traded on the BSE, 995 stocks have advanced while 407 declined.
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