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Thursday, November 29, 2012
Sensex at 19-mth high on positive FDI buzz
Posted by Unknown at 9:26 PM 0 comments
Monday, November 26, 2012
GSK to invest 5,215cr in Indian arm
Will Raise Stake To 75% In One Of Largest Share Buybacks By An MNC
This is among the largest MNC share buybacks in the recent past, and also signals GSK's bullish sentiments in a key growth market. Swiss engineering giant ABB had showed up with a $965-million buyback offer two years ago in another instance of an MNC parent boosting its economic interest in the India unit.
GSK, which currently holds 43.2% in GlaxoSmith-Kline Consumer Healthcare (GSKCH), will pick up 31.8% of the total outstanding shares of the publicly listed Indian company at a price of Rs 3,900 per share. This represents a premium of approximately 28% to the NSE closing share price on Friday and 22% to the 12-month high on the Bombay Stock Exchange.
The announcement sent the GSKCH stock to a record high of Rs 3,652 on the BSE on Monday, up 20% or Rs 609 over the previous close of Rs 3,043.
"GSK Consumer Healthcare is a well established business in India and its leading product, Horlicks, is an iconic household brand. This transaction represents a further step in GSK's strategy to invest in the world's fastest growing markets and, we believe, offers a liquidity opportunity at an attractive premium for existing shareholders," David Redfern, chief strategy officer, GSK, said in a media release.
GSK's consumer healthcare business in India generated over Rs 2,800 crore (approximately £380 million at 2011 average exchange rates) turnover with 19% compound annual growth rate over the past five years. GSK had committed more than $2.5 billion earlier this year to buy back shares in its emerging market units.
"It reflects the confidence that the parent company has in emerging markets as well as in GSKCH, which is growing at a healthy rate. There is no doubt the parent would be looking at further entrenching itself in this market and could even launch more products from its stable going forward," said an analyst from an Indian brokerage.
Besides Horlicks and Boost, which are growing at a healthy pace, the company also manufactures and markets Viva and Maltova apart from other brands in diverse categories, such as Eno, Crocin, Iodex, BreatheRight and Sensodyne. GSKCH has a strong marketing and distribution network in India comprising over 600 distributors and a direct coverage of over 7.5 lakh retail outlets.
Among other multinationals operating in India, GSKCH was the only one where the parent holding was below 51%. Post the offer, GSKCH would change from being an associate company to a subsidiary of GSK.
BETTING ON GROWTH
• GSK's Indian business clocked a Rs 2,800-crore turnover in the 12 months till Dec, 2011
• Product range includes iconic brands like Horlicks & Boost, along with other well-known ones like Eno, Crocin & Iodex
• It has over 600 distributors and has a direct presence in over 7.5 lakh retail outlets in India
Posted by Unknown at 9:43 PM 0 comments
Etihad set to pick 24% stake in Jet Airways
UAE Co Expected To Shell Out 2,200Cr Valuing Indian Carrier At Over 9,000Cr
Dayananidhi Maran's low-cost carrier SpiceJet has also admitted "that a few foreign airlines/investors have evinced interest" in it for picking up a stake. Three nonairline companies and two airlines are learnt to be in talks with SpiceJet at present but "a deal is not on the horizon". "It will be very premature to comment on the possibilities of any fresh equity issuance to such interested parties," an airline statement said. The scrips of both Jet and SpiceJet hit 52-week highs on BSE on Monday. Jet closed 10.8% higher at Rs 560 and SpiceJet closed almost 13% up at Rs 46.9.
"Jet Airways is in a massive expansion mode and needs capitalization. They are in advanced stage of talks with Etihad (an airline Goyal helped build by providing friendly technical expertise in its initial years as he has solid ties with Gulf carriers). This deal is expected to be clinched shortly unless Goyal or Etihad set up some impossible demand," said a top aviation source.
Jet is 80% owned by Goyal through the Isle of Man-registered Tailwinds.
UPA-II recently allowed foreign airlines to pick up to 49% stake in Indian carriers. Asked how Jet will offload stake to a foreign carrier in such a situation, the source said: "We have not been informed those details. Maybe Goyal dilutes his existing 80% by 15-20%. Anyway, the deal has to be routed through the foreign investment promotion board and they will look at that."
The Rs 2,200-crore for a 24% stake in Jet values Goyal's carrier at $1.7 billion (Rs 9,438 crore), a substantial premium from the current market capitalization of Rs 4,366 crore. A team of top Jet officials like chief commercial officer Sudheer Raghavan and chief operating officer Hamid Ali are learnt to be in Abu Dhabi to clinch the deal under Goyal's overall guidance.
Posted by Unknown at 9:40 PM 0 comments
Sunday, November 25, 2012
Sebi Talks Tough on Public Holding Rule
Tells cos deadline won't be extended this time
Sebi Chairman UK Sinha has reiterated his intention of enforcing the 25% norm on a number of occasions. But last week's exercise became necessary as many companies had not even taken preliminary steps to bring down their promoter holding. By firmly staving off attempts to push back the deadline again, the regulator and government reckon that the capital markets could receive a boost with a large number of public offerings through 2013.
The possible legal consequences of not complying with the public shareholding norms could include barring promoters and companies from tapping the capital markets, except for dilution of stake; shifting their stocks to the trade-fortrade segment (removing scrips from the derivative segment); compulsory delisting and even adjudication and prosecution proceedings. "We have served a clear warning last week. The companies that were called in were told that they would have a problem if they failed to raise the public holding," said the person on condition of anonymity.
Many of India's state-owned companies also have low public holding, as low as 1% in a few cases. More Leeway for State-run Cos
However, they have more breathing time to meet the deadline, which is August 2013, and need to reduce state ownership to 90% as opposed to 75% for private companies. Some state-run firms are looking to offer shares to the public to help a government struggling on the fiscal front to raise much-needed cash,
"I see no movement towards it. The companies and their advisors are perhaps thinking that this time limit will be extended. But let me tell you that I am going to make it difficult. This is a very important requirement. Three years had been given, more than one-anda-half years are over, but there is absolutely no movement towards it," Sinha had said in April at an industry event. "This is something whether you like it or not will have to be treated as sacrosanct. If there are any requests for making this process simpler, we will meet that," he had said then. In June 2010, the Securities Contracts Regulation Rules were amended to raise the minimum public holding requirement to a uniform 25% for all companies. Listed companies with a higher promoter holding were to raise public shareholding by at least 5% every year till such time they met the norms. However, within a month, the rules were amended again to provide an exemption to state-owned companies, with the rules stating that these firms could achieve a minimum public holding of 10% instead of 25% within a period of three years.
The regulator's internal analysis, based according to the shareholding pattern filed by listed companies for the quarter ended June 2012, showed there were a total of 216 companies (16 PSU and 200 non-PSU) with public shareholding of less than 10% and 25%, respectively.
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MINISTRY OBJECTS TO EIL, OIL SALE
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Wednesday, November 21, 2012
High Spectrum Reserve Price a Mistake: Montek
Plan panel deputy chief hints at a review of the auction policy after the current round is over
"I want to mention here that one or two newspapers criticised that as if by lowering the reserve price we are going to reduce the outcome. I had argued very strongly that a healthy auction process will discover the prices whether you fix it at one or two or seven hundred," he said. He hinted at a review of the auction policy after the current round of auction is over. "…once the auction is done, the issue of refarming can be looked at afresh...we should get the auction over and done and then what future policy should be, should be thought out much more clearly," he said.
Posted by Unknown at 7:35 PM 0 comments
Cipla Set to Pop S Africa’s Medpro in $220-M Deal
Indian co picks up 51% stake, valuing South Africa's third-largest drugmaker at $440 m
The acquisition will be a relief for Cipla Medpro and its shareholders, coming just months after its CEO Jerome Smith was suspended in August. Smith founded the company in 1993 and later forged a relationship with India's Cipla, which changed the fortunes of the South African company. Medpro used to source 80% of its products from Cipla, and the companies agreed Medpro would use the brand name of Cipla for selling products in Africa. Smith's abrupt departure led to uncertainty over the firm's future, but on Wednesday the shares rose after the Cipla announcement. Cipla is offering ZAR 8.55 per share (payable ex the final dividend for the 2012 financial year, which will be capped at a maximum of ZAR 0.10 per share). Medpro shares rose 7% to ZAR 8.29 from 7.10 ZAR at the Johannesburg stock exchange. Cipla shares rose 2% to end at . 389.70 on Wednesday after the announcement.
Cipla has been consolidating its position as India's second-biggest drugmaker. In the past three years, its revenues have grown 41.53%, while the Indian drug market, estimated at about . 60,000 crore, has been growing at about 15%. Medpro is South Africa's third-biggest drugmaker with annual sales of . 1,000 crore. The South African market is estimated at about $4 billion, and comprises about 35% of the total African market. Cipla to Get Access to New Segments
The acquisition will give Cipla a presence in respiratory drugs and those needed to combat illnesses of the central nervous system. "Till date, Cipla only had a profit-sharing agreement with Medpro, as the company would source all its products from Cipla, so this deal is a valid extension of that partnership," said Surjit Pal, analyst with Elara Capital.
Cipla announced after its last quarter financial results that the company's future will be the international markets, a reflection of this is the contribution of international business to its revenues. In the last quarter, it was 56% of the total business. Hamied said the company wanted to expand in all regions and categories such as malnutrition and pediatric products.
Posted by Unknown at 7:18 PM 0 comments
FM Asks Banks to Bail Out Builders
Tells bankers to fund residential projects stuck for want of funds
"The minister asked banks to fund those residential projects that are stuck for want of funds. This, according to him, will help kickstart the economy," said a bank chief who attended the meeting. In August, after returning to the ministry, the finance minister asked banks to put pressure on builders to lower prices in order to reduce a growing inventory of unsold apartments.
During the meeting, Chidambaram reviewed a report prepared by Ajai Kumar, CMD of Corporation Bank, on unsold stock in the real estate market and the way ahead.
The report highlighted the need for builders to arrange their own resource for equity. It also stressed the need for builders to open an escrow account with banks.
As of now, many builders show advances collected from purchasers of property as their equity contribution. The report, according to people at the meeting who described its contents, said this should end. Credit to Real Estate Sector Slows Down
This is because the builder does not have any stake in completing the project. In its edition dated November 17, this paper had reported that half of the 3,23,000 apartments due for delivery in 2013 were likely to be delayed on account of problems faced by builders, including lack of financing and delayed clearances. Further, onefourth of apartments due for delivery in 2014 were likely to be delayed, according to the report from real estate research firm Liases Foras.
Credit from commercial banks to the real estate sector rose only 4% for the year ended September 30, 2012, compared with a double-digit rise in 2010-11, a possible indication of the diminishing attraction of the sector.
In August, the finance minister had told banks to put pressure on builders to cut prices. "Builders are sitting on huge inventories (unsold apartments) they are neither able to sell at the prevailing prices nor are they allowing others to buy by lowering prices." He further questioned banks as to why they were not putting pressure on builders to lower prices since they had funded both the builder and the retail home loan borrower.
It's unclear what impact the minister's exhortation will have.
At least half-a-dozen bankers that ET spoke to after the meeting in August said they did not discuss the subject of reducing prices with builders. "Even as we agree that real estate prices are at elevated levels, builders won't really care for our views," said a bank chief when asked if the bank has sent out any communiqué to builders to lower prices.
"Back then (in August) the idea was to kickstart the economy and he is attempting it again. This time he has changed the approach," said a bank chief attending both meetings.
Posted by Unknown at 7:13 PM 0 comments
Tuesday, November 20, 2012
Sensex may Top 23000 by Dec 2013: Morgan Stanley
Monetary easing, pick-up in infra spending and stable crude prices likely to drive stock market growth
It said steady monetary easing at home and abroad, a pick-up in infrastructure spending and stability in crude oil prices will drive growth in the stock market. It also said cyclical sectors such as financials, industrials and energy will lead the growth as opposed to the defensive sectors.
"Action from global central banks has reduced India's tail risks from macro stability tribulations, including high external deficit, and this is now evidenced by declining correlations in the equity market," analysts led by India strategist Ridham Desai said in a note on Tuesday.
"The correlation of stocks with the Sensex is approaching lows, warranting wider sector positions. Cyclicals look ultra cheap versus defensives, supported by a likely trough in earnings growth… Small- and mid-caps look very attractive," the note said.
While poor domestic liquidity, slowdown in policymaking and higher inflation could go against the growth thesis, broad market earnings growth may have bottomed out and will "accelerate" from here Morgan Stanley said. However, earnings face a risk of falling investment rates and margins may not improve from here, it said.
"Macro conditions could worsen due to high twin deficits. Our proprietary leading indicator for broad market earnings suggests that growth will likely rise to average in the double-digits in the second half 2013 and further to around 20% in 2014," the note added.
While Morgan Stanley assigned a 60% probability to the scenario where Sensex grows by 26%, it said that there are chances that it could also surge 53% to 28,137 on recovery in global growth, strong policy action and interest rate cuts. On the other hand, the benchmark could fall to 17,918 on weak policy action, continuing tight monetary policy and oil price shocks, it added.
On tuesday, the benchmark Sensex fell 0.05%, or 9.68 points, to end at 18329.32 points, falling for the seventh day in the last eight sessions. The broader Nifty ended flat at 5571.55 points. A cautious market ahead of the winter session of Parliament, which starts on Thursday, also tracked lower European shares after a credit rating agency stripped France of its top-notch rating.
Posted by Unknown at 7:57 PM 0 comments
FIPB clears IKEA’s 10k cr plan for India
Largest Foreign Investment Proposal In Single-Brand Retail Now Goes To CCEA
Economic affairs secretary Arvind Mayaram told reporters after an FIPB meeting that the board had approved IKEA's proposal. The Cabinet Committee on Economic Affairs (CCEA) will now examine the proposal and is likely to approve the investment, which will be the largest one in the singlebrand retail sector so far.
IKEA's plans to invest in the country is seen by the government as an approval of the attractiveness of the India growth story by foreign investors. The proposal comes at a time when the government is trying to woo foreign investment to revive growth, provide jobs and boost sentiment.
Last month, IKEA had filed final documents to start its retail venture after the government amended the policy on single-brand retail. The furniture major plans to invest over Rs 10,000 crore in a phased manner. In the first phase, it plans to start 25 stores and invest in India through a 100% subsidiary.
In September, the government unveiled the rules for single-brand retail, diluting the sourcing norms to enable IKEA to set shop in the country. The government has allowed 100% FDI in singlebrand retail, and 51% in multi-brand retail.
The FIPB approval comes against the backdrop of stiff opposition to the government move to open up the multibrand retail sector to global firms. Opposition parties are expected to give a tough time to the government on the issue of allowing FDI in multibrand retail when Parliament convenes for the winter session on Thursday.
Earlier, the FIPB had approved three proposals in the single-brand retail sector, which included British footwear maker Pavers England's plan to start fully-owned stores, US luxury clothing Brooks Brothers' proposal for a 51% joint venture and Italian jewellery manufacturer Damiani's move to start a joint venture.
IKEA had earlier said that it viewed the recent developments related to FDI in singlebrand retail positively. The Swedish firm views India as an important market and has been sourcing from the country for the past several years. IKEA has said it will develop a "solid plan" for setting up stores once its application is approved. It has also said that it will continue to increase its sourcing in India from both existing and new suppliers, building on long-term relations.
SETTING SHOP
• Govt is keen on IKEA's investment, seeing it as an approval by foreign cos of the continuing India growth story
• The Swedish furniture maker's plan also coincides with the govt's efforts to revive growth and boost business sentiment
• The first phase of IKEA's plan will involve setting up 25 stores in India and investing through a fully-owned subsidiary
Posted by Unknown at 7:35 PM 0 comments
U-TURN? Oil ministry recalls note against RIL gas price hike
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Posted by Unknown at 7:35 PM 0 comments
Monday, November 19, 2012
Irda, Finmin Lock Horns Over LIC’s Stake Ceiling
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Posted by Unknown at 6:08 PM 0 comments
Govt will try to rein in fisc deficit close to 5.3%
New Delhi:The government will strive to rein in the fiscal deficit within the revised target of 5.3% of GDP for 2012-13, C Rangarajan, chairman of Prime Minister's Economic Advisory Council, said on Monday.
The UPA coalition is struggling to meet its fiscal deficit target due to sluggish revenues, delayed stake sales in state-run firms, rising subsidies and lower-thanexpected cash from the auction of second generation (2G) spectrum. "I think the attempt will be to see that we remain as close as possible to revised fiscal deficit that has been indicated by the finance ministry. All efforts will be made to get that number," Rangarajan told reporters on the sidelines of a function. Faced with a challenging situation, the finance ministry recently revised the fiscal deficit target to 5.3% of GDP from the earlier projection of 5.1% of GDP.
The government has unveiled a fiscal consolidation plan and has said it is committed to tackle the yawning deficit, which the central bank has said is a stumbling block before easing monetary policy. The finance ministry has also undertaken an austerity drive to tame wasteful spending but economists estimate that the deficit would still be close to 5.8% of GDP.
Efforts to sell stakes in state-run firms are yet to take off significantly despite government's commitment to fast-track the process. The government expects to raise Rs 30,000 crore from stake sales in state-run firms in the current fiscal but analysts say it would be an uphill task to meet the target.
"I think still there are about four to five months for the end of the year. There are many actions that are possible," Rangarajan said, when asked whether the government would be able to meet its fiscal deficit target.
During April-September, the fiscal deficit stood at Rs 3.37 lakh crore, or 65.6% of the full year-target set for 2012-13 compared to 68% in the same year-ago period, government data showed. The former central bank governor also said the Reserve Bank of India will consider several factors into consideration before deciding on interest rates.
"We need to watch the behaviour of prices of course, the Reserve Bank will take all factors into consideration. But there is still some time for Reserve Bank to take a decision."
Posted by Unknown at 6:06 PM 0 comments
MHADA PROPERTIES AT MIRA ROAD Lack of papers shut the doors on 718 home lottery winners
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I questioned giving 2G at 2001 rate, says RBI guv
Subbarao's appearance in the court as a prosecution witness is significant in view of the CBI's argument that the government had sold 2G spectrum cheap by sticking to 2001 rates while granting licences in 2008 that the agency chargesheet says led to a loss of around Rs 31,000 crore. The RBI governor said that any loss figure needs to be seen in the context of a policy decision. Subbarao stated that there was a sacrifice of revenue, but a policy sometimes needs to strike a balance between a welfare objective and revenue maximization.
He said the finance ministry's view on spectrum pricing was that the price must be "rediscovered" as it would be inappropriate to give licences at the price fixed in 2001-02.
SC warns govt on auction S eeking an affidavit from the telecom secretary on the recent spectrum auction, the SC on Monday said, "Even if 0.1% of spectrum is kept back, it will not be acceptable. The Centre was required to auction all that had been cancelled. In the 1,800 MHz bandwidth, nothing could have been kept back." P 9 RBI guv: Can't say govt suffered loss
New Delhi: RBI governor D Subbaraosaid the finance ministry's "endeavour" was to maximize the government's revenues, but "since the DoThad already issued letters of intent on January 10, 2008, the effort of the ministry was to see if the price for spectrum could be enhanced to reflect the current market prices". "We also negotiated an increase in spectrum usage charges," he added.
Subbarao had told the JPC much the same recently, but his deposition in the court has an evidentiary value that can help the CBI make a case of illegal gain. The RBI governor told the court that he had written a letter on November 22, 2007 to then telecom secretary D S Mathur. "I wrote this letter to confirm if proper procedure was followed with regard to due financial diligence. I also questioned as to how the rate of Rs 1,600 crore, determined as far back as 2001, could be applied for licence given in 2007 without any indexation, let alone current valuation," he said. Finance secretary from April 2007 to September 2008, he said by June 2008, it was agreed between the telecom department and the finance ministry that only spectrum beyond startup range would be priced.
Later, during his cross-examination, Subbarao said in a meeting held on July 4, 2008, the then finance minister P Chidambaram and Raja had conveyed to the PM about the agreement between DoT and the finance ministry on pricing. On being asked whether the government had suffered any loss , Subbarao said, "There was certainly sacrifice of revenue." He later said, "It is correct that while determining policy, the government has to make a balance between welfare maximization and revenue maximization. In this case, if there was a sacrifice of some revenue, it cannot be said that the government suffered a loss."
Posted by Unknown at 5:45 PM 0 comments
Saturday, November 17, 2012
Saffron Loses Its Senapati:Bal Thackeray Called The Shots In Mumbai Like No One Has In Decades.
Jan 23, 1927- Nov 17, 2012
End Comes At 3.33pm After Long Ailment With His Brand Of Marathi Manoos-Hindutva-Rough & Ready Politics, Both Feared And Loved, One Of India's Most Colourful, Charismatic & Controversial Leaders Leaves Behind A Divided Family And An Uncertain Legacy
TEAM TOI
Mumbai: Bal Keshav Thackeray, founder of Shiv Sena and one of Maharashtra's most iconic and divisive figures, died on Saturday after weeks of ill-health. Thackeray, 85, was seriously ill since Wednesday when his blood pressure plunged and he lost consciousness.
"He suffered a cardio-respiratory arrest today. We could not revive him despite
our best efforts. He breathed his last at 3.33 pm," said pulmonologist Dr Jalil Parkar, who was the Sena chief's doctor for the last five years and was by his bedside till the end. In his last days, Thackeray received round-the-clock attention from a battery of Mumbai's best doctors.
Thackeray's body, wrapped in saffron and with his trademark dark glasses on, has been kept in a glass casket in a hall on the second floor of 'Matoshree', his residence in Bandra. It will be taken at 7 am on Sunday to Shivaji Park, where legions of supporters are expected to pay their last respects between 10am and 5pm. A large stage is being erected on the sprawling grounds under the statue of Chhatrapati Shivaji. Party leaders announced that the final rites will be held at 6pm at the Shivaji Park crematorium.
Thackeray is survived by sons Jaidev and Uddhav, who is executive president of the party. News of his demise was followed by an appeal from Uddhav to restive cadres, requesting them to maintain calm. However, the city of Mumbai and its suburbs had already begun shutting down in anticipation of trouble.
The post-Thackeray phase marks a new era in Maharashtra's politics and heightens speculation about the strategies the Sena would need to adopt in the absence of its principal crowd-puller. For over four decades, Thackeray had dominated the stage, courting controversy with a blend of regional chauvinism and cultural aggression, and punctuating it with biting, if often crude, humour through editorials in his mouthpiece Saamna. On the demolition of the Babri Masjid, Thackeray famously said, "If Shiv Sainiks have done it, I am proud of them." Thackeray ran Sena govt on remote control
Thackeray was the eldest son of writer-crusader K S Thackeray, also known as Prabodhankar, for he edited a periodical called Prabodhan (Renaissance). Beginning his career as a cartoonist in the 1950s, he plunged into a nascent statehood movement for Maharashtra.
The Sena, which began as an outfit that fought to secure employment opportunities for Maharashtrians in the 1960s, gradually turned into a mainstream party that tasted power for the first time when it swept Mumbai's local body polls in 1985. The use and threat of mob violence became a calling card. There were even whispers about a culture of extortion taking root.
But it was Thackeray's sons-of-thesoil agenda that altered the state's political culture and eroded the Congress base. Using aggression to demand job quotas for the working class Mumbaikar Marathi, he built a loyal constituency and acquired near-mythical stature.
The Sena acquired prominence on the national stage when it embraced Hindutva and aligned with the BJP, eventually winning the Maharashtra assembly polls in the charged atmosphere of the mid-90s. Thackeray's stature grew when he spurned public office and installed Manohar Joshi as CM, although he made it known that he would be the one in charge running the government on "remote control". From film-makers to businessmen, Thackeray's approval was considered a must.
His predilection for rough-andready methods showed in the manner in which his government dealt with the Mumbai underworld. During the Sena-BJP regime, nearly 100 gangsters were gunned down in 'encounters' that were described by then home minister Gopinath Munde as 'necessary' to tackle the deteriorating law and order situation.
However, cases for hate speech registered against him in the wake of the 1992 Mumbai riots continued to dog him. He escaped prosecution due to the reluctance shown by successive governments, including the ones headed by the Congress, to grant sanction. But he was banned in 1999 by the EC from voting or contesting in any election for six years for violating the code by seeking votes in the name of religion and caste in a bypoll in Mumbai in 1987.
Leaders to attend funeral G ujarat CM Narendra Modi, MP CM Shivraj Chauhan, BJP's LK Advani, Sushma Swaraj, Nitin Gadkari and Arun Jaitley will be present for the funeral as will be NCP leader Sharad Pawar. They will be taken from Veer Sawarkar Marg, which will remain closed to traffic. TNN
Posted by Unknown at 9:26 PM 0 comments
Friday, November 16, 2012
HARD DAYS Rupee, Shares Plunge on Fears of Fiscal Slippage
Rupee falls to 55.17 against dollar as tensions in the Middle East too affect market sentiment
The rupee and the shares were pummeled on Friday as investors grew sceptical about the government's ability to deliver on the fiscal promise and the conflict in the Middle East escalated, which could push up oil prices, India's Achilles' heel. Falling exports and a steady rise in imports are not helping the Indian currency either, with the demand for the US dollar remaining high.
"It's all negative for the rupee on both the internal and external fronts," said KN Dey, director at Basix Forex, which advises companies on exchange rate movement. "Given the underlying pessimism all around, the currency could see a new low," he said. The local currency fell for a third straight week to end at 55.17 to the US dollar, losing 7.5% since its October peak of 51.32. The demand from oil companies, which is averaging around $750 million a day, could rise if crude oil prices were to increase due to the rising tensions between Israel and Palestinians. Nifty closed 1% down at 5574.05 while the Sensex ended 0.88% lower at 18309.37.
"The market depth was quite low and there was some selling by FIIs in index stocks around the last half an hour, which pushed markets into the red," said Motilal Oswal, chairman, Motilal Oswal Financial Services. "The focus now will be on the Parliamentary session commencing next week (Thursday). My guess is markets will tread in positive territory."
There could be dollar outflows in December if FIIs take away profit from local investments where the benchmark indices have gained the most in Asia this year. "The outlook on rupee has a weakening bias in the near term," SBI chief economist Brinda Jagirdar said. "The economic environment is very challenging as trade deficit is worrisome and first-half economic growth is expected to be soft." Investors worry that the government may not be able to meet its upwardly revised fiscal deficit target of 5.3% of the GDP after the 2G spectrum auction failed to get even a fourth of the forecast amount.
"The Rupee may remain in the range between 54 and 56 in the near term," Jagirdar said. She expects the currency to gain when the reform measures start getting implemented and inflation eases.
But for the moment, no one is ready to put a bet on the rupee. Any rise in crude prices will further put pressure on India's huge current account deficit. Trade deficit stood at a record $20.96 billion in October as exports fell 1.63% year-onyear. Current account deficit was 3.9% of
Posted by Unknown at 8:40 PM 0 comments
Labels: Rupee
Walmart paid bribes in India? Retail giant probing allegation
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Labels: Retail
Govt pushes for docs’ bulletins on Thackerayhealth
City Calm After Uddhav Spoke On Thursday
Uddhav's announcement had the desired effect on Friday as Mumbai crept back to normalcy. Autorickshaws and taxis returned to the roads, buses ran as normal and no incidents of violence were reported. All importantly, there was little of the uncertainty and anxiety that had permeated Mumbai on Thursday, impelling joint commissioner of police (crime) Himanshu Roy to speak to Uddhav to defuse the tension in the city.
The state government, it is learnt, believes the Thackerays should allow a medical doctor to issue regular health bulletins instead of having visitors make pronouncements on leaving Matoshree. On Friday, it was party members again—not doctors—who gave out news on Thackeray's condition.
Posted by Unknown at 7:26 PM 0 comments
Thursday, November 15, 2012
Mumbai on edge as Bal Thackeray’s health see-saws
Like the ailing Sena chief's reported condition, the situation in Mumbai has swung from precarious to stable since Wednesday night. Here is a round-up
POLICE MOBILISED
The Mumbai police began mobilising forces around 8.30 pm on Wednesday, after CommissionerSatyapalSinghandothertopofficialsmet with Chief Minister Prithviraj Chavan.
"We were informed that the Sena chief's health was critical and we anticipated a huge crowd at Matoshree. We also anticipated problems elsewhere and hence deployed forces all over the city," a senior police officer said.
The main control room, located at the Police Commissionerate at Crawford Market, sent an emergency wireless message asking all police station heads and officers above the rank of assistant police commissioner to report to their stations by 10 pm.
Meanwhile, police stations in western region (from Bandra to Andheri on either side of the Western Expressway) were asked to deploy two-thirdsoftheirforcesatvantagepointsinthe area. Fortunately, barring incidents of violence outsideMatoshree,whereSenasupportersdamaged a TV broadcast van, there was no violence reported on Wednesday night.
Orders to remain present at their stations continued till early Thursday morning, till reports of the Sena chief's improving condition began to emerge.
In the morning, many shops and establishments remained closed on their own accord. While some be forced to shut, no violence was reported.AtMahim,atensesituationdeveloped when Sena workers tried to forcibly close an eatery. They came face to face with a crowd of people who insisted that it remain open, and there was a confrontation before the police intervened and dispersed both mobs.
AT MATOSHREE
Among the first to arrive at Matoshree on Wednesday evening, around 8.30 pm, was his nephew and MNS chief Raj Thackeray. Soon after, Diwali celebration lights in and around Matoshree were turned off and taken down as the Sena chief was put on life support by Dr Jalil Parkar, who remained at Matoshree till 5.30 am.
Suryakant Mahadik, head of the Bharatiya Kamgar Sena, the Shiv Sena's trade union, who was there with MLC Ramdas Kadam, appealed for the crowd to disperse after leading a chant of "Balasaheb zindabad".
Inside Matoshree, Raj was spotted conversing with his MLAs, while Uddhav was with his wife, his personal assistant Ravindra Mhatre and Sena aide Ravi Dodi.
When Amitabh Bachchan arrived around 1 am, the main gate had been locked and the actor had to be hoisted over it to enter Matoshree. He later tweeted that both him and son Abhishek had sustained minor cuts and wounds at Matoshree and were treated by doctors there.
AndwhilethesteamofvisitorsarrivedatMatoshree all through Thursday, Thackeray is believed to have personally met only four: Chief Minister Prithviraj Chavan, Nationalist Congress Party chief Sharad Pawar, BJP leader Gopinath Munde and actor Nana Patekar.
According to a source, Pawar is believed to haveaskedUddhaviftherewasanyneedforhim to come and visit the Sena chief, to which Uddhavrespondedintheaffirmative.Atitspeak,the crowd outside Thackeray's heavily-guarded Bandra (E) residence swelled to over 7,000 on Wednesday night, and sporadic incidents of violence against journalists were reported.
'LET US PRAY FOR HIM'
Late on Thursday night, Uddhav Thackeray stepped outside Matoshree with his wife and son and told Sena supporters that Bal Thackeray's health was stable, and that they should not lose hope. "You have forgotten your hunger and thirst, and you have been here since yesterday (Wednesday). Your prayers will pull Balasaheb out of this crisis," he said to hundreds of supporters around 11 pm.
Wearing a light blue kurta, he added, "I have not lost hope; you should also not lose hope. We are soldiers of a leader who is known to be a fighter. Let us pray for him together." GHOST TOWN
Thursday morning began on a cautious note for Mumbaikars. Shops were shut in several Sena strongholds despite bhau-beej celebrations. Dadar, Matunga and Bandra (East) were all but deserted - only a few medical stores remained open.
There were fewer rickshaws and taxis available, with many anticipating trouble and choosing to stay off the roads.
"It was very difficult to get auto. I needed to travel from Kandivali to Bandra to visit my brother but not a single auto driver was ready to ply. Finally I took a bus and was surpised by howlittletraffictherewas,"saidNisha Sinha , a resident of Kandivali.
Dadar's Plaza cinema downed its shutters and cancelled all its shows; eventhepetrolpumpacrossfromSena Bhavan remained shut.
There were policemen at almost every junction across the city. After 7 pm on Thursday though, with several top Sena leaders claiming that the condition Thackeray's condition was stable, tension eased across the city, barring pockets around Sena Bhavan, Shivaji Park and Kalanagar.
CHIEF MINISTER'S MEETING
Meanwhile, antipating huge crowds outside Matoshree and at Shivaji Park, Chief Minister Prithviraj Chavan calledanemergencymeetingofsenior officials on Wednesday night to discuss matters such as crowd control, preventingthespreadofrumours,and arrangementsforanypossibleeventuality.
Police Commissioner Satyapal Singh, Director-General of Police S S Dayal, senior officers of the state government and Chief Decretary Jayant Banthia were present at the meeting.
The police and its intelligence units told the chief minister that they anticipate a crowds of up to 20 lakh over the coming day. Following this, a message was sent to all reserve police police units to beef up their manpower; the Rapid Action Force was also sounded out.
Every policeman on leave in Maharashtra was told to report back to work.
The traffic police have been told to keep basic connectivity working, while Railway Police Commissioner Prabhat Kumar has been instructed to keep Mumbai's lifeline on track.
AseniorIPSofficersaid,"Therewas a farmer agitation in western Maharashtra and most of the reserve forces were tackling the law and order situation there. We needed some time to prepare and by morning we were able to gather enough forces." Sources in the chief minister's office said that the Lt General Sanjay Kapoor, in charge of Maharashtra,GujaratandGoa,wasalsoalertedandtoldtobereadyincaseof an emergency.
The local army unit was also asked to be on alert. Soon after the meeting, the CM apprised Prime Minister Manmohan Singh and President Pranab Mukherjee of the situation in Mumbai, following which the President decided to cancel his scheduled visit to the city.
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