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Tata Motors Feb vehicle sales up nearly 1 pc
7 Mar, 2008, 1814 hrs .............................

MUMBAI: Tata Motors Ltd said on Friday vehicle sales rose nearly 1 per cent in February to 54,181 units from 53,707 units a year earlier.

Tata Motors, the top bus and truck maker, said sales of commercial vehicles rose 12 per cent to 31,318 units from 27,859 units, while sales of cars and utility vehicles fell 12 per cent to 18,766 units from 21,322 units.

Tata Motors, which is in talks to buy Ford Motor Co's Jaguar and Land Rover luxury brands, said exports fell 9.5 per cent to 4,097 units from 4,526 units

Nestle India Q4 jumps 49% QoQ
4 Mar, 2008, 1503 hrs IST..................................

MUMBAI: Nestle India’s net profit rose 49.87 per cent to Rs 93.61 crore for the quarter ended Dec 31, 2007 against Rs 62.46 crore in the same quarter of previous year. Total income increased 21.75 per cent to Rs 905.30 crore for the October-December quarter from Rs 743.59 crore in the same period of earlier year.

The company’s net profit has reported a growth of 31.33 per cent to Rs 413.81 crore, for the financial year ended December 2007 compared with Rs 315.10 crore for the last year. Total income has improved by 24.43 per cent to Rs 3,529.79 crore from Rs 2836.67 crore a year ago.

The company has declared a final dividend at Rs 2.50 per share, for the financial year 2007.

At 2:36 pm, Nestle India shares were up 0.74 per cent at Rs 1410 on BSE

MFs should adopt self-regulation to avoid 'misselling': Bhave
9 Mar, 2008, 1218 hr..................................

MUMBAI: The mutual funds industry should adopt self-regulation and safeguard against misselling of products to investors, market regulator SEBI said.

"I am sure the mutual funds industry will take sufficient steps of self-regulation and to see that SEBI does not have to step in," SEBI's newly-appointed Chairman C B Bhave said while speaking at a function here.

Selling of products without explaining the details, including the likely return, is referred as misselling.

The mutual funds industry should be able to regulate its distributors in a manner that investors do not have to complain that the products were mis-sold to them, Bhave said.


With the derivatives markets taking off, complaints are being heard from investors that derivative products have been offered without the complexity of these products being explained to them properly, he said.

"As India integrates more and more with the world, and with our markets getting more sophisticated, we will see more complex products for investment available," he said, adding understanding the risks inherent in these products will become increasingly important.

Bhave asked the mutual funds industry to tap the market not only in the metros but also in the hinterlands

"There is a market out there, which is untapped. This is a challenge for all of us as to how to reach this market. We have to see that the message is delivered in a language the investor understands," Bhave said.

MF industry body AMFI's chief A P Kurian, who also spoke at the function, said there was a need to change the mindset of the people and make them more aware of the opportunities available in MFs.

RCom to issue 1.75 crore shares under ESOP
9 Mar, 2008, 1844 hrs................................

NEW DELHI: Anil Ambani-promoted Reliance Communications on Sunday said it would issue 1.75 crore shares under Employees Stock Options to 20,000 staff members of the company and its subsidiaries.

If one goes by Reliance Communications' closing share price of Rs 543.35 on the Bombay Stock Exchange on March 7, the issue of ESOPs would amount to about Rs 950 crore.

Claiming that it is the largest ESOP rollout by any Indian Telecom Service Provider, Reliance Communications said in a release that the initiative is in line with the groups' policy to create value for stakeholders, external and internal.

The company said each option would be exercisable into equal number of fully paid-up equity shares of Reliance Communications.

The options would be vested at the end of one year from the date of grant and shall be eligible for exercise up to a period of nine years from the date of vesting," the company said.

The Employee Stock Option Scheme recognizes the efforts of our employees and aims to reward them for contributing towards the transformation of Reliance Communications as the most profitable Indian Telecom Enterprise, and among Asias Top 5 Most Valuable companies within a short span of two years, Reliance Communications Chairman Anil Ambani said.

The Company has undergone extensive research based on intricate scientific models to formulate an innovative 3-Tier Model that would consider multiple parameters including number of years in the company, role, contribution, experience amongst others.

The Shareholders of Reliance Communications had passed the resolution of grant of securities under the ESOP scheme last year.

GPIL announces IPO of 1.65 crore equity shares
7 Mar, 2008, 1920 hrs IST...........................

CHENNAI: With an aim to fund some of its major projects in India, Gammon Infrastructure Projects Limited (GPIL) on Friday announced an initial public offering of 1.65 crore equity shares of par value Rs 10 each for a cash price to be determined through a 100 per cent book-building process (Issue).

The price band has been fixed between Rs 167 and Rs 200 pewr equity share.

Pervez Umrigar, Managing Director, GPIL, told reporters here today that the Issue's proceeds would be utilised in the design, construction and maintenance of projects including the four-laning of the 99.5 km of Vadape-Gonde section between Mumbai and Nasik on NH-3, being developed and maintained by the special purpose vehicle (SPV), the Mumbai Nasik Expressway Limted (MNEL).

"We currently have 14 infrastructure projects, including the Vishakaptanam port project in Andhra Pradesh and Mattanchery bridge project in Kerala among others in the operation phase, with respective special purpose vehicles (SPVs) in place to develop and maintain them," Umrigar said.

The Rangit-II hydroelectric power project on River Nimbi in Sikkim, and the MNEL among others were in the development phase, he added.

According to a company release, the Issue comprises a net issue of 1.49 crore equity shares to the public (Net Issue) and a reservation of 16.55 lakh equity shares for employees.

While at least 60 percent of the Net Issue will be allocated on a proporationate basis to Qualified Institutional Buyers (QIB), at least 10 percent of the same would be available for non-institutional bidders and 30 percent of the Net Issue for retail investors on proportionate basis.

The issue opens on March 10 and closes on March 13, 2008

India fails to qualify for Olympics; coach, support staff resign

India suffered a never before inflicted pain in its glorious past of hockey participation on Monday as it was ousted from even partaking in the Beijing Olympics 2008 hockey competition. Following this, the coach and the entire support staff of the hockey team also resigned from their posts.

SBI considering Malaysian ringgit bonds

Puduvayal, March 09: State Bank of India, India's largest bank, is considering raising USD 200 million to USD 500 million in bonds denominated in Malaysian ringgits to broaden its resources for international operations, its chairman said on Sunday.

SBI chairman O P Bhatt told agencies in an interview the state-run bank had no direct US subprime exposure and the plan to raise money in Malaysia was in part due to tough conditions in regular debt markets.

"We are looking at it actively," Bhatt said of the bond plan, speaking in Tamil Nadu after the opening of the bank's 10,000th branch.

Bhatt said SBI was growing its international business aggressively and needed more resources.

"This is required partly because of the growth we have in international business and partly because of the difficulties which are there currently in international markets to raise hard currency resources," he said.

The tenure and interest rate of the bond would be determined by the market, he said, adding that borrowing a smaller amount would not be cost effective, while raising more may not be feasible as the Indian bank was entering that market for the first time.

SBI would also consider raising resources in other countries.

"So as a prudent bank we are looking at other avenues which are available and acceptable to us," he said.

Subprime exposure

Last week, ICICI Bank, India's largest private lender, said investment losses caused by market turmoil in the wake of the subprime crisis could wipe up to 9 percent off this year's profit.

SBI's total investment portfolio was about USD 80 billion, of which investment abroad totalled USD 1.4 billion, Bhatt said.

"We have no direct exposure to subprime," he said.

"Zero loss as of now. But marking down, marked to market, could be around USD 10 million," he said, adding this was "peanuts" compared with the bank's total investment portfolio.

Most of the USD 1.4 billion was in credit derivatives of Indian companies. Indirectly, however SBI might have some exposure, he said.

"There are two to three instruments we have bought where somewhere down the line in that mix of instruments that we have there is something which can be classified as subprime," he said, without elaborating.

Lending rate

SBI cut its prime lending rate, which a bank offers to its most favoured customers, by 50 basis points last month to 12.25 percent.

Bhatt said the bank would not cut the prime lending rate this month but may consider reducing it in April.

"We keep on looking at it. My sense is not March, maybe April when annual closing is over. Because liquidity is tight," he said, adding that influencing factors kept changing.

Finance Minister Palaniappan Chidambaram has asked banks to cut lending and deposit rates by 50 basis points to boost growth.

Bhatt said the bank's credit growth this year ranged between 25-26 percent, matching the central bank's target for the banking sector.

Credit growth generally has slowed to an annual 21.8 percent in mid-February from about 30 percent at the start of 2007 after the central bank made a series of interest rates increases.

The central bank's key short-term lending rate has stood at 7.75 percent since the end of March 2007.

India`s economy losing its lustre

New Delhi, March 10: Booming India is reeling from a flurry of bad financial headlines, suggesting the outlook for the world`s second fastest-growing major economy is not as rosy as it was, analysts say.

Economic growth is losing pace and inflation is on the rise, meaning India`s central bank -- which has hiked interest rates nine times since 2004 to tame prices -- has little room to loosen monetary policy to spur activity, they say.

"The picture of very strong growth and low inflation in India is starting to give way to one of slowing growth and rising inflation," said Robert Prior-Wandesforde, an economist at HSBC in Singapore.

Last Friday, inflation in Asia`s third-largest economy hit a nearly 10-month high of 5.02 per cent, pushing through the central bank`s ceiling of five per cent for this fiscal year.

Adding to the gloom has been a 25 per cent slide since January 10 in India`s benchmark Sensex share index -- whose 47 per cent jump last year made it one of the world`s top performers -- as foreign investors have bailed out.

"With the (global) economic turbulence, you`re seeing a lot of risk aversion," said Amitabh Chakraborty, equities president of Mumbai`s Religare Securities.

Also, the Congress-led government, which faces general elections in little over a year, is storing up fiscal trouble with its 15-billion-dollar loan bailout for farmers, big civil service pay hikes and tax cuts announced late last month in its populist, poll-geared budget, economists say.

"We think the fiscal deficit will increase due to the spending pressures," said Goldman Sachs economist Tushar Poddar.

Economic growth is forecast by the government to slow to 8.8 per cent in this fiscal year to March 31, 2008 from 9.6 per cent last year -- the first deceleration in three years.

Some economists project growth could fall to as low as seven percent next year due to the US-led global slowdown, aggressive monetary tightening and a sharp rise in the rupee`s value against the dollar, which has hit exports.

Seven per cent growth would still be enviable by anaemic Western levels but is too low for India, where analysts say double-digit expansion is needed to help hundreds of millions escape a grim poverty trap.

The stock market`s slide has also cast a cloud over plans by firms to raise a projected 15 billion dollars in IPOs this year -- nearly double the record 8.3 billion raised in 2007.

Already, two high-profile firms have pulled their IPOs, including Emaar MGF -- a joint venture of Dubai`s Emaar, the world`s biggest property developer --- which abandoned its bid to raise 1.6 billion dollars, citing "indications of a US recession and global meltdown."

The IPOs are key to expansion as much of the funds raised would be invested in plant and machinery, and improvements in India`s dilapidated infrastructure such as its potholed roads, shabby ports and unreliable power.

Lengthy blackouts even in big metropolitan centres such as New Delhi are routinely cited by economists as major growth constraints.

While India`s economy is better insulated than many other Asian nations from the global slowdown because it is not so heavily dependent on exports, it is not immune to the chill financial headwinds, analysts say.

A lot of economic growth has been driven by risk capital, especially from the United States, which is slowing as foreign investors repatriate funds amid fears of a US recession, said Religare`s Chakraborty.

For the time being, the government and central bank are making checking inflation their priority.

The central bank and the government are "signalling the risk to inflation is a bigger worry than the risk to growth," said JP Morgan analyst Rajeev Malik.

Soaring world commodity and crude oil prices have alarmed the central bank while the government sees cutting inflation as crucial to its political fate, analysts say.

Inflation has been blamed as a key factor in several state poll drubbings for Congress, which owes its 2004 general election win to support from India`s poor masses -- hardest hit by price rises.

Prime Minister Manmohan Singh last month called inflation "the cruellest tax" as it hits the poor the hardest.

Bureau Report

Tata offers `2nd career` for women professionals

Mumbai, March 09: Tata group Sunday announced the `second career internship programme` for women professionals, who opt to resume their careers after a break.

The programme is open to women with qualifications in management, accountancy, law or engineering and having a minimum four years experience in their respective field, the group said in a press release issued here today.

Applicants, who have taken a career break of less than 8 years are eligible to seek career opportunities in various functions such as human resources, marketing, finance, legal and manufacturing sectors, the release said.

Under the programme, the selected candidates will be able to work on a 5-6 months long live business project of the company, it said.

After the completion of the project, the candidates will have the option of transitioning into a full time employment, the company said.

Initially, the programme will be open to professionals in Mumbai and Pune.

european stock market recovring. sensex following europea market.