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CCP meet postponed on differences over prices

New Delhi, April 15: Amid sharp differences between the ministries of Commerce and Finance over measures to control spiralling steel prices, the government today postponed the meeting of Cabinet Committee on Prices (CCP). The CCP was scheduled to meet on Tuesday t o delve on measures including imposing an export duty and lowering excise on steel to check prices.

According to sources, the meeting has been postponed as the Finance Ministry is not in favour of reducing excise duty on steel fearing loss of revenue. The Finance Ministry, sources said, is of the view that duty alone will not be able to check rising pr ices of steel as domestic prices are largely influenced by the international prices.

There was a proposal from the steel makers to ban export of iron ores to ensure cheaper raw material for domestic production and future expansion. While pressure is mounting from certain quarters for either increasing the export duty or banning the iron ore shipments, the commerce ministry is against any such move, sources said. The Commerce and Industry Minister Mr Kamal Nath had said last week that the iron ore variety, which is being exported, is not of use to domestic steelmakers and a ban would ser ve no purpose to contain inflation.

The iron ore prices have seen a sharp rise in the global markets, leading to the revision of rate by the domestic miners. The CCP was scheduled to meet in the backdrop of inflation rate touching a 40-month high of 7.41 per cent, much above the Reserve Ba nk`s target of five per cent.

L&T bags Rs 2,000-cr contract from Bombay Dyeing

Mumbai, April 15: Engineering major Larsen & Toubro on Tuesday said it has secured a Rs 2,000-crore order from the Wadia Group flagship firm Bombay Dyeing for construction related works at its city-based complexes.

Larsen & Toubro's construction division has bagged the order for developments at the textile mills and spring mills complexes at Worli and Wadala regions of Mumbai, the company said in a filing to the Bombay Stock Exchange.

The turnkey project involves construction of mixed-use developments of around 4 million sq ft at the textile mills in Worli and 5 million sq ft at the spring mills development in Wadala scheduled to be completed within the next 46 months or by the end of December 2011.

Shares of the company were trading at Rs 2,785, up 0.40 per cent in morning on the BSE.

Iran, India ink MoU on rail cooperation

Dubai, April 15: In an effort to boost bilateral ties, India and Iran have inked an MoU for cooperation in the field of railways and start work on the India-Iran-Russia railway line.

The agreement apart from initiating the work on the proposed rail line involving India, Iran and Russia will also 'promote a joint effort to increase cooperation with International Union of Railways', a media report said on Tuesday.

Iran also sought India's partnership and cooperation for a new track which will connect the free trade zone of south eastern Chabahar and the city of Fahrej situated in central part of the country, Tehran times said, adding the agreement will incorporate investment plans for the track.

Iran is also keen to cooperate with Indian railways in its port connectivity plan and will accept the offer after examining the financial viability of the proposed projects in Iran, it said.

The MoU was signed by Indian Railway Board Chairman K C Jena and Hassan Ziari, the Managing Director of Iran's railway company on Sunday.

It seems to be a good opportunity for Iran to work with India which is an independent country in producing equipments and tools necessary for building locomotives, Ziari said.

A team of Indian experts will travel to Iran in mid may to discuss the agreements, he added.

The agreement also deals with issues of technical training of the personnel, railroad signaling projects, supplying locomotives and spare parts, as well as setting up a joint working group between the two countries.

Ceat plans to set up 2 new plants in India: Official
15 Apr, 2008, 1607 hrs IST.....................

MUMBAI: Tyremaker Ceat Ltd plans to invest 9 billion rupees in two new plants in India, a top official said on Tuesday.

The company plans to raise the money through debt, sale of land and internal accruals, Paras Chowdhary, managing director told reporters.

Ceat expects revenue to grow 20 percent on year to 26 billion rupees.

China Gas, Gail to tie-up for Coal Bed Methane blocks
15 Apr, 2008, 1409 hrs IST.............

NEW DELHI: China Gas Holdings Limited has offered state-run Gail India Limited a partnership in its Coal Bed Methane (CBM) blocks in China.

China Gas Holdings Limited Managing Director Liu Ming Hui said the company has some CBM blocks in China, the data for which is evaluating.

Upon evaluation a three-way partnership between China Gas, Gail India and Arrow Energy of Australia may be formed.

Zee entertainment Q4 profit jumps 34 % at Rs 79.46 cr

Mumbai, April 15: Zee Entertainment on Tuesday announced a net profit of Rs 79.46 crore for the fourth quarter ended March 31, 2008, a 34.18 per cent growth over the corresponding period a year ago.

The firm had a net profit of Rs 59.22 crore in the fourth quarter last financial year, it said in a filling to the Bombay Stock Exchange.

The total income shot up 57.62 per cent to Rs 341.34 crore in the latest quarter as compared to Rs 216.56 crore in the corresponding period a year-ago.

Meanwhile, the net profit stood at Rs 294.92 crore for the year ended March 31, 2008, a jump of 77.44 per cent over the year-ago period. It had a net profit of Rs 166.21 crore in the same period a year ago.

The total income soared 22.69 per cent to Rs 1,139.98 crore for the year ended March 31, 2008 as compared to Rs 929.13 crore in the corresponding year ago period.

On the other hand, the group's profit stood at Rs 104.42 crore for the fourth quarter ended March 31, 2008, an increase of 49.34 per cent over the same period a year ago.

The group had posted a profit of Rs 69.92 crore in the fourth quarter last financial year.

Further, the total income of the group grew 41.64 per cent to rs 569.48 crore for the year ended March 31, 2008 as compared to Rs 402.05 crore in the same period a year ago.

The group's profit for the year ended March 31, 2008 rose to Rs 396.25 crore, a 62.84 per cent growth over the year ago period. The group had recorded a profit of Rs 243.33 crore for the corresponding period a year ago.

In addition, the group's total income grew 27.88 per cent to Rs 1,945.38 crore for the year ended March 31, 2008 as compared to Rs 1,521.16 crore in the year ago period.

In late afternoon trade, shares of the company were trading at Rs 230, down 4.07 per cent on the BSE.

Ranbaxy to sell ulcer drug, Nexium, in US

New Delhi, April 15: Ranbaxy Pharmaceuticals Inc, a wholly-owned subsidiary of Ranbaxy Laboratories Ltd, has announced that it has reached an agreement with pharma major Astrazeneca that would allow Ranbaxy to start exclusive sales of a generic version of ulcer drug Nexium in 2014 in the US.

Nexium is brand name used by Astrazeneca and is the second largest selling drug in the us. Ranbaxy would be able to start sales from May 27, 2014 under license from Astrazeneca. During the 180 period following that date, Ranbaxy will distribute the only generic esomeprazole magnesium product in the US market.

"We are happy with the agreement which will provide certainty as to the launch of a generic formulation of the second largest selling product in the US, Ranbaxy Laboratories CEO and Managing Director Malvinder M Singh said.

The agreement settles the patent infringement litigation filed by Astrazeneca following Ranbaxy's submission to the United States Food & Drug Administration of an abbreviated new drug application for esomeprazole magnesium's generic version.

Under the settlement agreement, Ranbaxy conceded that all six patents asserted by astrazeneca in the patent litigation are valid and enforceable.

In another pact signed by the two companies, Ranbaxy will formulate a significant portion of astrazenecas US supply of nexium from May 2010. Ranbaxy will also start supplying raw material for manufacture of esomeprazole magnesium to astrazeneca from 2009.

"The revenues will flow in for Ranbaxy every year from next year due to these agreements," Singh said.

In two separate agreements, astrazeneca has designated Ranbaxy as the US distributor for the authorised generic versions of hypertension drug felodipine and acid-related diseases drug omeprazole 40 mg.

Ranbaxy, Astrazeneca settle Nexium suit, launch in US by 2014

New Delhi, April 15: Pharmaceutical major Ranbaxy Laboratories on Tuesday said it has settled a patent litigation with Anglo-Swedish firm Astrazeneca over ulcer drug Nexium, which would allow it to launch its generic version in the US by 2014.

Besides settling the patent litigation, Ranbaxy also entered into manufacturing agreement for Astrazeneca's US supply of Nexium from 2010 and a distribution agreement with the Anglo-Swedish firm for hypertension drug Felodipine and acidity drug remedy Omeprazole.

Nexium, the branded product of Astrazeneca, is the second largest selling drug in the US. The agreement settles the patent infringement litigation filed by Astrazeneca following Ranbaxy's submission to the United States Food & Drug Administration of an abbreviated new drug application for Esomeprazole magnesium's generic version.

Under the agreement, Ranbaxy would start selling the generic version from may 27, 2014 under license from Astrazeneca and during the 180 day exclusive marketing period, it will distribute the only generic Esomeprazole Magnesium product in the US market.

"We are happy with the agreement which will provide certainty as to the launch of a generic formulation of the second largest selling product in the US," Ranbaxy Laboratories CEO and Managing Director Malvinder M Singh said.

TheStreet.com
Seven Reasons to Welcome a Recession
Thursday April 15, 10:34 am ET
Special byTheStreet.com

Recessions breed fear.
It's only natural. A slowdown in production at companies can result in layoffs and restructuring. People fret about their jobs and worry that it will be much more difficult to find new employment if they are let go. These are understandable concerns.

But for contrarians and bargain hunters, recessions provide a world of opportunities.

Here are seven ways that a recession can actually benefit your personal finances:


Affordable Homes
Those who bought homes looking to flip them for a quick profit and those who took out huge loans that they couldn't afford to pay will look at a recession with fear, but a recession should have little meaning for those who bought a home with the purpose of living in it for a long time.

Recessions are usually short-lived, and the housing market should recover long before most people are planning to sell their house.

For those who had been unable to afford a house because of soaring prices in the past few years, a recession is a golden opportunity. It brings housing prices down to more affordable levels. That means that many people who wanted to buy a house will be able to purchase one.

Recessions are also a good time to look for investment properties or vacation homes if either had been in consideration.

A recession gives anyone looking for quality housing a lot more bang for their buck than when the economy is flying high. Being able to purchase a quality house at an affordable price can greatly increase a person's net worth in the long run.


Low Mortgage Rates
In the attempt to ward off a recession, the Federal Reserve has made interest rates extremely low, resulting in more affordable loans for those who are in the market to purchase a house.

While these rates may not be available throughout the entire recession if inflation continues to rise, the rates will be around as long as the Fed can use them to ease the recession. Taking advantage of these low rates along with lower housing prices can truly make housing a deal.


Great Consumer Deals
As the economy sours and people buy less and less, stores need to provide better deals and discounts to attract consumers to their doors. This can mean steep discounts through sales and promotions, as well as financing that allows consumers to pay no interest over long periods of time.

These deals are not limited to the retail stores. It also means that there are great deals in the second-hand markets, since there are more people trying to sell and fewer people looking to buy. If you are an investor in collectibles and know them well, you can often buy collectibles at steep discounts during a recession that can be turned into a healthy profit when the economy recovers. For those who have saved money waiting for good deals, a recession is a great time to find those deals.


Inexpensive Stocks
While everyone is taking their money out of the market, hard economic times can be a great time to pick up stocks on the cheap when you look at them as long-term investments. Consumer stocks for large, stable companies such as Proctor & Gamble that provide necessities such as soap and toilet paper will do well no matter what the economic conditions.

Recessions can be a great time to pick up undervalued stocks if you know what you're doing. That can greatly improve your net worth when the stock market recovers.


Great Travel Deals
During times of recession, most people don't think about traveling. For this exact reason, traveling can be a great deal when the economy is shaky. Lack of demand results in excess inventory, which forces hotels and other related travel industries to lower their prices. It also means a greater inventory to choose from and the ability to bargain for upgrades and other perks. That dream vacation that you have always wanted to take can be a lot more affordable during a recession, when travel related industries are begging for your business.


Streamline Your Finances
When things look like they are going to get a bit tougher, people begin to look at their personal finances a bit more closely and start to trim some of the fat. They look at ways that their money can be better spent and how they can get more for each dollar that they do spend. They pad their emergency fund a bit more and don't spend quite as freely as they do during times of rapid growth. This trimming of the fat is a good exercise that can help you see the important financial goals that you want to achieve and, by doing so, help you reach them more quickly.


Lower Credit-Card Rates
If you have a good credit rating, you are in a position to get extra perks from your credit-card company. Credit-card companies see higher delinquency payment rates during a recession, and it becomes even more important for them to keep their best customers. That gives you extra leverage to ask favors from them, such as having your interest rates lowered and annual fees waived.

While most people will look at a recession with fear and uneasiness, it's important to also realize that it's an opportunity to get some great deals and improve your personal finances. Taking advantage will allow you to reap greater benefits from all those dollars you have saved.

'It's consolidation time, we may not see a further slide'
15 Apr, 2008, 2130 hrs IST.......................


The overweight position on India has been reduced, and from a net flow perspective, in emerging markets, the beneficiaries have been Thailand, Taiwan and Pakistan, says Stuart Smythe, ED, head-equities, Macquarie Capital Securities. In conversation with ET, Mr Smythe spoke of how a volatile currency, inflation, the possibility of political change plus the changing regulatory landscape in a de-risking environment all add up to a reasonably benign outlook on India.

Where do you think the market is right now and where is it headed?

I think, you will see the market remain relatively benign. There is a confluence of upcoming factors that is likely to impact direction. One, very high inflation, which looks like it’s going to get close to double digit, and two, without question a GDP growth scenario which is going to slow. Now, the mechanisms by which you control inflation and GDP don’t always work in tandem. Emerging markets typically dislike three things — volatile currency, inflation risks and possibility of a changing political landscape. The only three markets, which are close to positive in the entire region, are Pakistan, Thailand and Taiwan. So, while India has these things in the pipeline for the next 9-12 months, I don’t think you are going to see any huge level of out performance coming to play.


So, does that mean we are in a bear market?

No, I don’t think we are in a bear market. I think we are in a consolidation phase which is good. If the economy slows down by 100 bps, everyone gets space to breathe. So, I am not particularly concerned. We are still talking 7-8% growth. In Europe and the US, you barely have 1-2% growth, so you are still talking very strong growth. It’s just the capital market that is seeing a realignment of funds. You are seeing a derating or derisking of flow.


Are there continuing concerns about India. What’s the sense you get from institutional investors? Are they still not happy here?

India has, since the last election, put in place a stable framework that coincided with a belief that India was going to become equivalent to China or was the next China. So, the socio-political environment and the tremendous reforms in the financial markets helped India remain in the sweet spot for emerging market inflows. Nothing has changed fundamentally within India in the current climate from a market’s perspective with the exception of change in the P-note structure and changing regulatory environment. The people who believed in the India story are still there, but just may not be coming in with more flow. Currently, on a historical basis, we are revisiting 12-month lows. So, we may not see further downside. If there are nasty surprises or disappointments as we have seen with BHEL, we will see another leg down in 5% range. You have extremely strong support for the Nifty at 4,200 level and below 15,000 on the Sensex.


How are markets dealing with inflation and your stance on interest rate-sensitive sectors?

On inflation, we haven’t seen a top out yet, it will go higher possibly, double digit. There is not going to be a moderation in food price inflation. You are going to see food price inflation continue to kick through. As such ‘ag-flation’ is here for the foreseeable future. That is a major contributor to the WPI here. Markets essentially will de-risk. Anything that is speculative or overweight will be reduced. We also haven’t seen the shorts on global financials come off yet. You have seen short-covering here definitely on Indian financials because you are in a rising interest rate environment. This is good for banks whose profitability will be stronger. They are going to outperform but selectively. We are positive on Axis and HDFC.


When do you see a recovery in risk appetite and when do you see the comeback happening?

You will start to see it in the fourth quarter of this calendar year. By which time most of the noise regarding currency and inflation will be out of the way. We would also know by then whether the global credit crisis is in for its second leg down. If it goes to a trillion (as is being said), it will have follow on implications for the next level of credit. Once there is complete transparency on the credit crisis, we expect to see a recovery. If the US manages to extract a soft landing, this is the best case scenario. If, however, it’s in for a hard landing, then the fourth quarter recovery will be delayed.