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ICICI Bank allots equity shares
Saturday, March 08, 2008 (New Delhi)
ICICI Bank has allotted 12,495 equity shares of face value of Rs 10 each under ESOS 2000.

Jet hopes to expand European operations

Berlin, March 08: Jet Airways, India`s largest private airline, hopes to expand its European operations by adding Berlin, Lyon and Barcelona in its international network through a code-sharing agreement with Brussels Airlines, possibly by the end of this month.

Jet Airways also wants to build an "India brand" in international aviation and to become one of the world`s five top airlines.

The new services, would provide Jet Airways passengers travelling from Delhi, Mumbai and Chennai seamless connections from Brussels to Berlin, Lyon and Barcelona and vice-versa on Brussels Airlines flights, Jet Airways chairman Naresh Goyal has said at the current 42nd International Tourism Exchange, the world`s largest tourism fair in Berlin.

If approved by the respective governments, the services could take off as early as on March 30, and sale of tickets would begin on March 10, Goyal told agencies.

The services to Templehof airport in Berlin would be the first by an Indian airline.

Goyal said the airlines intended to use its seven-month old European hub in Brussels to build up its international operations by connecting other Indian cities like Hyderabad, Bangalore, Ahmedabad and Kolkata to the US and Canada, besides taking up new European cities like Munich and Milan.

The chairman said there has been a 12 percent growth since the airline began its services in August, 2007.

Jet has a target of one million passengers to use its Brussels hub annually by 2010.

On his plans to build a India brand in the international aviation sector, he said: "we are committed to create an India brand and high standard of quality will be of utmost importance for our services."

Jet Airways wants to match the services of the world`s top airlines such as the German Airline Lufthansa or Cathay Pacific, he said.

The Brussels hub of jet, the first by an Indian airline outside Asia, is a joint project between Jet Airways, Brussels Airline and the Brussels airport.

Jet said the Brussels hub would continue to grow as new flights linking Indian cities such as Bangalore, Ahmedabad, Hyderabad and Kolkata to Chicago, Los Angeles and Vancouver are introduced. The number of international destinations will double in June, this year from 10 in November, 2007.

StanChart sells Indian asset mgmt arm for USD 205 mn

London, March 07: Asia-focused bank Standard Chartered said it had sold its Indian asset management business to Infrastructure Development Finance Co. for USD 205 million in cash.

The bank said the sale included Standard Chartered Trustee Co. Private Ltd and Standard Chartered Asset Management Co. Private Ltd, including minorities, which represent its mutual fund manufacturing business in India.

The deal, which does not include Standard Chartered's mutual fund distribution business, is expected to complete in the second quarter.

Rupee hits six month low against dollar

Mumbai, March 07: Continuing its weakness after a brief pause, the Indian Rupee hit a nearly six-month low of 40.52/53 against the greenback on Friday on good dollar demand from banks and oil companies amidst the softening of US currency and sluggish stock markets.

The Indian unit has not seen this level since September 17, 2007 after resuming weak at 40.37/39 a dollar compared to its last close of 40.29/30 a dollar. Earlier last month, the rupee had breached the 40-mark level against the dollar for the first time in five months.

The domestic currency has depreciated after gaining by about eight paise in the last two sessions.

Forex dealers said banks and oil refiners bought dollars even as Asian stocks fell to their recent lows after global oil prices held near record highs keeping overall pressure on dollar.

Meanwhile, the Indian benchmark Sensex tumbled by more than 560 points, or 3.42 per cent while Asian indices dipped by about 1.0 to 3.0 per cent in early trade.

Saturday March 8, 04:56 PM Honda says Indian bike sales to revive next year ...............................
MUMBAI (Reuters) - Two-wheeler sales in India, the world's biggest market after China, will revive during the next fiscal year helped by price cuts and a strong economy, a senior official at the Indian unit of Honda Motor Co said.

Funding options could also ease as banks control defaults, leading to growth of at least 5 percent, N.K. Rattan, divisional head of sales and marketing at Honda Motorcycle & Scooter India said on Saturday.

"Whatever correction had to happen has happened," he said on the sidelines of an event to launch a new scooter model. "Some growth will definitely come next year."

Two-wheeler sales fell 8 percent in April-January 2008, hit by tighter credit norms and interest rates at a five-year-high, data with the Society of Indian Automobile Manufacturers showed.

Sales rose 11.4 percent in 2006/07.

"With tighter lending, defaults are falling and financiers are getting comfortable," Rattan said.

Two-wheeler makers have cut prices by 500 rupee ($12.3) to 2,500 rupees a unit after the union finance minister proposed cutting excide duty on two and three-wheelers to 12 percent from 16 percent in the annual budget for 2008/09.

Honda, which is spending about $75 million to expand its Indian plant a million units, hopes to grow 2007/08 sales by a third in India to nearly 900,000 units, Rattan said.

However, India's second and third-biggest motorcycle makers Bajaj Auto and TVS Motor Co have seen their sales fall by 10 and 16 percent respectively in April-February.

India's top two-wheeler firm Hero Honda Motors, 26 percent owned by Honda, has posted near flat sales and delayed the start of a new plant in north India till the start of the next financial year starting April.

Market wipes off over $20 bn from 10 richest Indians' groups
9 Mar, 2008, 1215 hrs IST......................MUMBAI: Indians' new-found dominance in the world's richie-rich club does not seem to have impressed the bourses, with the market value of companies led by ten richest from the country dipping by over $20 billion ever since the salutation came from the US business magazine Forbes.

In its annual list of world's billionaires, Forbes said last week on March five that Indians account for the maximum number of four billionaires among ten richest in the world - up from just one a year ago.

The magazine identified a total of 53 billionaires from India with a combined net worth of $340.9 billion, which included a hefty share of nearly two-third or $228.6 billion with the ten richest Indians.

GSS America closes at 25% premium
7 Mar, 2008, 1656 hrs IST.................

MUMBAI: Undaunted by the volatility in the stock market, shares of GSS America Friday closed at Rs 500.80 on NSE, a premium of Rs 100.80 or 25.20 per cent to the issue price of Rs 400.

The stock listed at Rs 380. It touched a high of Rs 540, and the low was Rs 370. Around 1,06,21,014 shares were traded in the NSE counter.

On BSE, the stock closed at Rs 500.65 after opening flat at Rs 400, also the low during the day. The high was Rs 508.35. Around 1,39,80,284 shares has been traded so far.

Investors missing on some top equity funds
3 Mar, 2008, 0200 hrs IST.........................

When the decision to rate mutual fund (MF) schemes was taken nine years ago, it raised hackles in the industry. Some even warned of a blood bath. After all, the performance of fund managers was to be placed under thorough scrutiny.

However, almost a decade later, it seems things aren’t all that bad. Investors continue to trust well-known brands or a friend’s tip over a fund’s performance, while investing in MFs.

But to what extent can investors continue to do this? Take a look at largesized equity funds and their ratings to figure this out. Many of these funds are new with no track record. Others have obtained lower ratings and have failed to make it to the list of top-rated funds. Yet, ironically, investors continue to plough their savings into them.

BIG DEAL!

Sticking to well-known names in the financial industry may not be a bad idea. After all, MF ratings analyse only past performance. And what matters is future performance.

So, the logical thing to do is stick to big names in the financial world, which offer a level of comfort, and expect them to deliver. But are things that simple ? Not really. The performance of funds keeps vacillating, making constant tracking of ratings a must.

For instance, the schemes of one-time best performers in the equity domain — Franklin Templeton and HDFC — are slipping on the ratings chart. While for some funds, it may be time to exit, for others, you have to be alert to recent developments.

INVESTMENT STRATEGY

During the quarter, MF ratings have witnessed several changes. HDFC Tax Saver has moved down one notch from gold to silver. Sundaram Leadership has moved up from gold to platinum, thanks to its one-year return of 70%. ICICI Pru Power has moved down from platinum to gold, yet it remains an above-average performer.

Franklin India Bluechip and Templeton India Growth have moved from silver to bronze — the dud category.

Investors are advised to track ratings of the funds in their portfolio and prune the underperformers.


THE STAR SYSTEM

Ratings are perhaps the best thing that could have happened for MF investors. After all, the system of rating MF schemes ensures that an investor gets an unbiased opinion on different funds based purely on past track record. The latter has its limitations, yet, it helps an investor to take an informed decision. In contrast, have you ever imagined how much tougher it is to choose an insurer or a bank?

THE MEN BEHIND THE METHOD

The problem with MF ratings is that they blindly look at movement in net asset value (NAV). The fund manager responsible for the MF’s performance is seldom taken into consideration. Often, schemes with highest ratings have multiple fund managers during the given tenure.

But this isn’t the case for DSP ML and Sundaram. In an era of job-hopping fund managers, the equity head honchos of DSP ML — Anup Maheshwari and S Nagnath — have remained associated to their fund houses for a long time. Also, Sundaram’s CIO, N Prasad, has been with the fund for a long time.

Some of his fund managers have quit, but the man on top has remained put — a good enough reason to be bullish on the fund.

SMALL WONDERS

However, what is striking is that some of the top funds have been ignored by the market. Two fund houses worth mentioning here are DSP Merrill Lynch (ML) and Sundaram BNP Paribas.

Many of their equity funds have consistently been top performers, yet, their assets have hardly seen substantial absolute growth. In fact, to a large extent, their own returns have been propping their asset figures.

DSP Equity, Sundaram Leadership, Sundaram Growth, Principal Tax Savings, Birla Equity, ICICI Power and Birla Advantage are the underdogs. Yet, they have consistently been rated among the toppers. So, investors should consider these funds.

Wipro launches 'WoW' initiative on International Women's Day
8 Mar, 2008, 1300 hrs IST, AGENCIES

BANGALORE: Its time for yet another "WoW", from Wipro, through its launch of its Women of Wipro (WoW) initiative, coinciding with the international Women's Day.

Wipro honoured its women workforce with the title of 'Green Ambassadors' besides felicitating women achievers.

The WoW initiative has been launched as a chapter of the Wipro's Diversity Council, as the company's Green Ambassadors will influence a change in the environment by undertaking various projects that emphasize on the aspect of 'Green'.

The initiative will be driven by the Green Ambassadors at a personal level.

WoW will also work towards creating visibility for its female leadership, both internally and externally. Building sustainable and growing networks that contribute to the success of business, the community and self-development would be the other highlight of initiative.

Rekesh Jee
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