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Datacom and Unitech move HC over seniority issue
10 Mar, 2008, 1915 hrs IST................................

NEW DELHI: Videocon-owned Datacom and realty firm Unitech on Monday approached the Delhi High Court seeking vacation of its order which would affect their priority in getting radio frequency waves.

The court on February 13, while hearing Parsvnath's petition, had ordered that seniority of the petitioner would be not be affected if it proved that the Centre's action was illegal in rejecting its application for Unified Access Service Licence (UASL) on the ground that the company's main objective did not include telecom as its business.

It further said that anything done by the Centre with those persons who had applied for grant of UAS licence made after the petitioner (Parsvnath) and had been granted LoIs would be subject to the final outcome of the petition.

Unitech had got eight licences and Datacom got one on applications made after Parsvnath's.

Senior advocate Ashok Desai, appearing for Unitech and Datacom, before Justice Gita Mittal submitted that this order should be vacated as it affects our seniority and the order was passed without giving an opportunity to be heard.

Desai further contended that the order negated the seniority of both applicants in terms of DoT press release dated January 10, 2008 which says that seniority would be counted from the date of compliance of terms of LoI and not from the date of applications made in respect of grant of LoI as was interpreted by Parsvnath.

CRISIL IPO grade 1/5 for Sejal Architectural Glass
10 Mar, 2008, 1755 hrs IST............................

MUMBAI: CRISIL has assigned a CRISIL IPO Grade "1/5" to the proposed initial public offering of Sejal Architectural Glass Ltd, which indicates that the fundamentals of the issue are poor relative to other listed securities.

However, the grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals.

CRISIL's grading reflects the challenges that Sejal Architectural is likely to face as a glass processor in setting up a largely debt-funded float glass project (float glass project cost is about Rs 4.8 billion with debt funding of about Rs 3.2 billion).

The float glass industry, apart from being capital-intensive, is dominated by a few large global players and is characterised by profit cyclicality. Sejal Architectural has done well to become one of the five leading glass-processing companies in India. However, its ability to stabilise and operate a float glass plant, as well as sell about six times its current volume of glass, remains to be seen.

The grading also reflects Sejal Architectural's below-average corporate governance structure

Sobha announces villa project near new international airport
8 Mar, 2008, 1629 hrs IST....................

BANGALORE: Ahead of the opening of Bangalore International Airport at Devanahalli, leading real estate firm Sobha Developers on Saturday announced the launch of their largest single location project, Sobha Lifestyle, in the vicinity of the airport area.

Sobha Lifestyle is also the largest villa project by the company in the city, J C Sharma, Managing Director, Shobha Developers Limited (SDL) told reporters.

Spread over 55 acres with 165 villas measuring 5000, 7000 and 10,000 square feet, the project is located around seven kms away from the airport.

The project cost is estimated to be around Rs 250-260 crore and is expected to be completed by end of 2010. The land owned by Rennaissance Developers is being jointly developed by Rennaissance and Sobha, he said.

"In keeping with world class international airport, we also plan to offer world class residential space", he said.

Some airline companies have evinced interest in purchasing houses for housing their pilots, since the housing project was in close vicinity to the airport, said Raghav Menon, Director, Sobha Developers said.

The villas, ranging from price points of Rs three crore to Rs 5.1 crore, would have state-of-the-art club house, gymnasium with sauna and jacuzzi, swimming pool, multipurpose party hall, table tennis room, reading, card and carrom room.

Other amenities include amphitheatre, tennis court, jogging track and CCTV for security. "The urban development project complies with environmental policies and conserving natural resources", he said adding, that the green component of the project includes usage of solar panels, rain harvesting and recharge of pits to replenish ground water.

TVS King fails to cheer investors
10 Mar, 2008, 1206 hrs IST....................

MUMBAI: Foray of TVS Motor Company into three-wheeler market with the launch of TVS King didn’t evoke any positive response from the investors.

The stock plunged 4.65 per cent to Rs 37.90 on Monday on volume of 1,24,254 shares against two-week average of 9,24,182 shares.

The scrip has been in a downtrend as it shed 11.14 per cent in the past one week.

TVS King is 200 cc two stroke autorickshaw. The vehicle would come in both LPG and petrol versions

L&T hedging losses hit shares; BSE Capital Goods down 8%
10 Mar, 2008, 1159 hrs IST.........................

MUMBAI: The BSE Capital Goods sector was beaten down Monday hit by losses in Larsen & Toubro shares after the firm's full owned subsidiary reported hedging losses in the range of Rs 150-200 crore for FY08.

Brokerage Motilal Oswal Securities said L&T International FZE, a wholly owned subsidiary, was expected to incur "marked-to-market losses on commodity hedging transactions during FY08", in a client note on Monday.

Motilal Oswal, which maintained a 'neutral' rating on L&T stock, said it had downgraded its earnings forecast for L&T FZE and expected it to now report a net loss of Rs 92.4 crore in the 2007-08 fiscal year ending March 31, compared to a profit of Rs 85.1 crore a year earlier.

The brokerage said it had also revised downward its consolidated net profit estimates for L&T to Rs 24 billion in 2007-08 from a previous estimate of Rs 25.9 billion.

Investment banker Morgan Stanley has also downgraded the stock by 22 per cent to Rs 3433.

The sectoral index slumped over 8 per cent with L&T shares tumbling 11.25 per cent. The other losers in the pack comprised Crompton Greaves (down 9.35%), BHEL (8.18%), Crompton Greaves (9.35%), Elecon Engineering (7.85%), Alstom Projects (6.48%) and Areva (6.93%).

Meanwhile, Bombay Stock Exchange's key index was down 3.13 per cent or 500 points at 15,476.06 and National Stock Exchange's index slipped 2.46 per cent or 117 points.

Oil hits record USD 107

London, March 10: Oil hit a record high of USD 107 a barrel on Monday, reversing earlier losses as investors sought oil as a hedge against a depressed dollar and inflation.

A rush by financial funds into commodities and political tensions are the prime drivers of a rally that has lifted oil`s average to above USD 95 for the year.

US crude jumped USD 1.85 to USD 107 a barrel. It had sunk to USD 104.08 in earlier trading and by 1451 was up USD 1.50 at USD 106.65. London Brent crude was up 40 cents at USD 102.78.

Fears of recession, following the biggest US job losses in five years and strains in the credit market, have depressed equities and the dollar while prompting many investors to seek safety in commodities including oil.

"The disconnect between slowing US growth and a soaring commodity/energy complex has truly been quite remarkable," said Edward Meir of MF Global.

The effect of the slowdown in top consumer the United States could start to have an impact on demand.

"What you have seen over the last few months is fantastic strength in a whole range of commodities, all of which together significantly add to inflation and erode real incomes and profits," said Michael Saunders of Citigroup.

"If it were just oil it would be more manageable, but it`s not ... What you are seeing now is far more widespread and therefore more damaging."

A sharp drop in US crude oil inventories [EIA/S] and OPEC`s decision last week to hold supplies steady have also boosted oil prices.

OPEC President Chakib Khelil was quoted on Monday as saying that speculation and political tension would keep prices at triple digits through the year.

Some analysts think oil could go higher still, possibly breaking through USD 110, although there are expected to be dips below the USD 100 mark too.

"We certainly do see the balance for the rest of the year averaging USD 100," said Paul Horsnell of Barclay`s Capital.

"But we are not going to say that it`s going to stay above USD 100 for every single minute of every trading day for the rest of the year."

Khelil, also Algeria`s oil minister, said prices could retreat in 2009 with a recovery of the US dollar following the election of a new US President, and as fundamentals reassert themselves.

The Organization of the Petroleum Exporting Countries, supplier of more than a third of the world`s oil, has argued high prices do not reflect fundamentals and are driven by speculation.

OPEC will next meet in September, although ministers could confer informally at a conference between consumers and producers in Rome on April 20-22.

Nalco to become Navratna soon; no dilution of govt stake: Ola

New Delhi, March 10: The government on Monday ruled out any talks on divesting stake from National Aluminium Company (NALCO) as it will soon become a Navratna company.

Expressing happiness at the state-run aluminium giant`s increasing profits, Mines Minister Sis Ram Ola asserted that NALCO would continue to remain as a PSU and hoped that it would continue to achieve increasing profits and pay richer dividends to the government, according to an official release.

Nalco today announced an interim dividend of 45 percent on a paid-up capital of Rs 644.31 crore, amounting to Rs 289.94 crore for the fiscal 2007-08.

The PSU`s CMD C R Pradhan paid the dividend cheque for Rs 252.67 crore on 87.15 percent shares held by government to OLA here in the presence of J P Singh, ministry secretary.

The balance amount of Rs 37.27 crore has been disbursed to other shareholders of the company like banks, financial institutions and individual shareholders, according to the release.

NALCO announces interim dividend of Rs 289.94 cr

New Delhi, March 10: National Aluminium Company Ltd today announced an interim dividend of Rs 289.94 crore for fiscal 2007-08.

The dividend announced is 45 per cent on a paid-up capital of Rs 644.31 crore, a government statement said here.

A dividend cheque of Rs 252.67 crore on the 87.15 per cent shares held by the government was handed over to the Minister of Mines Sis Ram Ola. The balance amount of Rs 37.27 crore has been disbursed to other shareholders of the company like banks, financial institutions and individuals, it said.

Oil roars to record over $108 on weak dollar

New York, March 11: Oil shot to a record over $108 a barrel, extending a rally led by investors seeking a hedge against the tumbling dollar and inflation.

US crude settled up $2.75 at $107.90 a barrel, off a record $108.21 hit earlier in the session. London Brent crude jumped $1.78 to settle at $104.16 a barrel.

Fears of a US recession following the biggest US job losses in five years and strains in the credit market have sunk the dollar and raised expectations the Federal Reserve could cut interest rates again to prop up the economy.

Speculators have rushed into commodities to hedge against the weaker dollar as well as prospects that further Fed rate cuts could fuel inflation, helping to lift oil to average over $95 so far this year despite signs the faltering U.S. economy is crimping energy demand.

"It's the same thing that has been going on, it's a shark-like feeding frenzy on commodities. A lot of people feel the latest numbers on employment were bearish on the economy," said Peter Beutel, president of Cameron Hanover.

"The bottom line is people believe that as long as we see bearish numbers it will lead to another Fed cut."

The dollar tumbled against the yen on Monday as fears of a US recession hit stock prices.

A fall in US crude oil inventories reported in government data released last week and OPEC's decision on Wednesday to hold supplies steady have also boosted prices.

OPEC President Chakib Khelil was quoted on Monday as saying speculation and political tension would keep prices at triple digits through the year, and some analysts are adjusting their forecasts higher.

"We certainly do see the balance for the rest of the year averaging $100," said Paul Horsnell of Barclay's Capital.

"But we are not going to say that it's going to stay above $100 for every single minute of every trading day for the rest of the year."

Cartel officials insist that speculators are driving up oil prices and that supply and demand fundamentals do not support current levels.

Khelil said prices could retreat in 2009 with a recovery of the U.S. dollar following the election of a new U.S. president and as fundamentals reassert themselves.

OPEC will next meet in September, although ministers could confer informally at a conference between consumers and producersin in Rome on April 20-22

Car sales up 2% in Feb, bike sales dip 18%

New Delhi, March 10: Domestic passenger car sales rose by 2.31% in February to 94,756 units from 92,618 units in the same month last year.

According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country during the month was down by 17.68% at 4,25,089 units, against 5,16,410 units a year ago.

Total two-wheeler sales in February also slipped by 14.25% at 5,42,578 units, compared to 6,32,712 units in the same month last year.

Commercial vehicle sales during the month increased by 1.69% to 45,059 units from 44,308 units for the year-ago period, SIAM said.