The Week That Was

Corporate Satyam probe widens; new chairman, CEO
THE government has appointed former Nasscom chief Kiran Karnik as the chairman of the new six-member Satyam board and insider AS Murty as the new CEO. Mr Karnik will now be the firm's public face and speak on board-related issues while Homi Khusrokhan and Partho Datta will be special advisors. The investigation into the Rs 7,800-crore fraud at Satyam Computer Services has widened with Serious Fraud Investigation Office (SFIO) deciding to probe 325 companies and 25 individuals connected with disgraced Satyam promoter B Ramalinga Raju. SEBI on Friday completed questioning Mr Raju and his brother Rama Raju in Hyderabad. The SFIO will also look into the sale of over 3.6 lakh Satyam shares by senior company executives ahead of founder B Ramalinga Raju's January 7 confession.
RELIANCE EXITS CASH & CARRY BIZ
Reliance Retail has shelved its cash-&-carry business, or wholesale trading plans, with the entire operational management headed for an exit. The move to defer cash-&-carry operations, at least for the time being, is part of the firm's strategy to conserve cash in a deteriorating market, company sources said.India's cash-&-carry market has attracted global retail behemoths such as Wal-Mart, Tesco and Metro. The global giants see it as an opportunity to enter India where foreign direct investment (FDI) is barred in direct-to-consumer retail. Multiple sources said the 36-member cash-&-carry team headed by Harsh Bahadur, who joined the company in 2007 from German giant Metro's cash-&-carry, was on the way out.
GENPOST PICKS UP 60% IN INDIAN FIRM
In what could set a precedent, GenPost the French government-owned postal services company, has got the government's nod to pick up a 60% stake in the privately-held express parcel delivery firm Continental Air Express for an undisclosed amount, following the intervention of the French envoy to India. The proposal has been cleared with some riders following a letter from Ambassador Jerome Bonnafont to the then finance minister P Chidambaram asking him to reconsider the proposal that was rejected by Indian authorities more than once. economy Budget may be big on stimulus
THE forthcoming interim budget could hold some pleasant surprises. Policymakers are examining all options, including tax cuts, aimed at giving a boost to the slowing economy and relief to the industry to prevent job cuts. The Constitution does not restrain an outgoing government from announcing tax measures in an interim budget, ahead of general elections. "Constitutionally, there is no bar," Union home minister P Chidambaram told reporters in response to a query on the issue. In any case, the government can, without much of a problem, effect extensions of existing policies (tax concessions for Software Technology Parks) or clarifications (restoration of tax benefit to hydrocarbon exploration leading to gas finds on par with oil finds). "Wait till February 16. There may be one (package), there may not be one," he told reporters after the Cabinet meeting on Thursday. ""A very calibrated policy prescription ... is in the process of being formulated. You will see some indications in the vote-on-account, in the interim budget," minister of state for industry Ashwani Kumar said at a Ficci function.
INFLATION DROPS TO 5.07%
After two weeks of increase, inflation fell sharply again, dropping to 5.07% for the week ended January 24 from 5.64% in the
previous week, as prices of metal products, fruits and vegetables fell considerably.The wholesale price index-based annual rate of inflation was 4.78% in the corresponding week last year, data released by the government showed. Chances of a rate cut are now high as inflation softens. Several government-owned banks have hinted at rate cuts up to 200 basis points in the coming days.
CABINET NOD FOR I-T CENTRE AT B'LORE
The Union Cabinet on Thursday paved the way for centralised processing of e-filed income-tax returns at Bangalore. The CPC, that entails an estimated expenditure of Rs 255.46 crore over five years, would make processing returns and issue of refunds expeditious. The CPU will also process paper income-tax returns from Karnataka in initial stages and other states of the region subsequently. It also approved the National Policy on safety, health and environment at work place. technology IT biggies may lag industry growth
FOR the first time in the past five years, big IT companies will grow less than the industry, going by the growth estimates put out by India's main software lobby, Nasscom, as new orders slow down due to the recession in US. Also, the captives of multinational companies operating in India would drive a significant chunk of growth rather than the top Indian IT companies. National Association of Software Services and Companies (Nasscom) on Wednesday said it expected the software and services export revenues to grow over 16-17% to reach $47 billion this fiscal. But guidance numbers put out by Infosys and analyst estimate of the other major player TCS suggests that these companies will grow below Nasscom's estimate this year.
GOOGLE LAUNCHES TRACKING SOFTWARE
US Internet search company Google Inc released software on Wednesday that allows users of mobile phones and other wireless devices to automatically share their whereabouts with family and friends. Users in 27 countries will be able to broadcast their location to others constantly, using Google Latitude. Controls allow users to select who receives the information or to go offline at any time, Google said on its Web site. "Fun aside, we recognize the sensitivity of location data, so we've built finegrained privacy controls right into the application," Google said in a blog post announcing the service. "You not only control exactly who gets to see your location, but you also decide the location that they see."
MINDTREE TO SPIN OFF UNIT FOR TESTING
MindTree Consulting, an IT services and consulting firm will create a new business unit focussed on testing, as it sees good uptick in this area, a top company official said. Mr Ramachandran Narayanaswamy, the company's vice president and head of Chennai operations, said that revenues would continue to flow from this area, despite concerns about a possible slow down in new software development and sales. As of 31 December 2008, midsized company MindTree gets almost a fifth of its revenues from independent testing. markets Sensex falls 123 pts on sustained FII selling
IN A narrow but volatile movements during the week under review, the benchmark Sensex fell by over 123 points on sustained selling by foreign funds and concerns over the deepening US economic crisis. Heavy selling was seen in realty and consumer durable counters, while some buying in refinery and FMCG shares cushioned the Sensex fall, otherwise the fall was much more pronounced. At the weekend, the BSE 30-share barometer resumed lower and moved down further to a low of 9,017.08 before bouncing back to settle for the week at 9,300.86, a fall of 123.38 points, or 1.31%, over the preceding week. The broad-based 50-issue Nifty of the National Stock Exchange also reacted downwards by 31.70 points, or 1.10%, to settle the week at 2,843.10 from last weekend. Foreign institutional investors (FIIs) continued to be the net sellers as they pulled out nearly Rs 29 crore in the week, while domestic institutional investors (DIIs) sold shares to the tune of Rs 609 crore in the same period, including provisional figures of February 6. The market resumed the week on weak note on the back of concerns over the deteriorating condition of the US economy and continued capital outflows, but regained some lost ground on the last day of the week. Brokers attributed the last day recovery to expectations of some tax sops in the forthcoming interim budget to be announced on February 16 to boost the sagging economy and relief to the industry to prevent job cuts. Inflation eased to 5.07% for the weekend January 24 as against the preceding weekend's level of 5.64, raising hopes of further cuts in policy rates by the apex bank. Expectations of the passage of the stimulus package by U.S. administration to revival of the deepening financial sector also gave much needed support to the market. Among Sensex-based counters, DLF dropped by 22.04%, followed by Hindalco 10.09%, Jaipra Asso 9.57%, M&M 8.80%, HDFC 8.07%, Tata Motors 8.05%, L&T by 7.33%, Reliance Infra 7.15%, NTPC 4.85% and REL Com 4.52%. The BSE-100 index declined by 70.52 points or 1.47% to end the week at 4,719.80 from 4,790.32. On the NSE, the S&P CNX Defty fell by 10.55 points or 0.52% to 2,022.90 from the previous weekend's close of 2,033.45. The CNX Nifty Junior also dropped by 92.00 points or 2.17% to 4,138.15 from 4,230.15. politics
UN must make Pak keep
    terror promise: India
IN AN effort to build up diplomatic pressure on Pakistan, India has asked the United Nations to ensure that Pakistan fulfills all the commitments given to India and the international community on terrorism. External affairs minister Pranab Mukherjee said he held extensive talks with United Nation secretary general Ban Ki-Moon on Thursday and discussed the Pakistani links in the Mumbai attacks. "I requested the UN secretary general to look into those aspects and ensure that Pakistan fully implements its own commitments which it has given to India and the international community several times," Mr Mukherjee said.He also shared details of the material that India had shared with Pakistan and the international community on the Pakistani links that have been uncovered in the Mumbai attacks.
CHIDAMBARAM URGES SL, LTTE TO END HOSTILITIES
With Tamil Nadu parties putting pressure on the central government to intervene in the Sri Lankan crisis, home minister P Chidambaram on Thursday asked the Lankan government and LTTE to stop hostilities and come to the negotiating table. The home minister, who expressed concern for Tamil civilians caught in the hostilities, expressed unhappiness with the Lankan government decision to continue with the offensive. "We are deeply anguished at the loss of lives. We are not happy that the Sri Lankan government has resumed hostilities. It is for both sides to cease hostilities," he said. He expressed disappointment that the LTTE failed to respond to the ceasefire by the Lankan government.