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Showing posts from September, 2013
SENSEX DOWN 167 POINTS The benchmark S&P BSE Sensex dropped almost 167 points to a three-week low today after RBI Governor Raghuram Rajan's comments on inflation raised concerns about interest rates. Banking and realty sector stocks, which are sensitive to interest rates, declined along with metal and capital goods counters. Sensex heavyweights that fell included ICICI Bank, HDFC Bank, BHEL and Tata Steel. The 30-share index resumed on a positive note and touched a high of 19,981.57 on an initial rally in Asian stocks. Profit-booking in select counters led the index lower to settle at 19,727.27, a fall of 166.58 points or 0.84 per cent -- the lowest level since closing at 19,270.06 on September 6. The Sensex lost 536.44 points, or 2.65 per cent over the past five trading sessions, the first weekly drop in five. The 50-share CNX Nifty index on the NSE dropped 49.05 points, or 0.83 per cent, to 5,833.20. The SX40 index on the MCX Stock Exchange closed at 11,740.84, down 38.32 poi…
POWER SHORTAGES COST INDIA $ 68 BILLION
India loses USD 68 billion, or about Rs 4,14,800 crore of its Gross Domestic Product due to electricity shortage.
"There is strong correlation between power consumption and the GDP of the country. Power shortages currently cost India a GDP loss of USD 68 billion (0.4 per cent of total GDP)," said a Ficci report on Power Transmission.
Transmission bottlenecks are an important reason for these shortages. Since demand and generation capacity are both expected to increase in the future, transmission constraints need to be addressed urgently, said the report released today.
The transmission sector is already lacking in investments made so far. Although 50 per cent of the amount invested in power generation should be invested in transmission, in India this figure stands at a mere 30 per cent.
The report said that one of the important reasons for the lagging transmission capacity in the country is the Aggregate Technical and Commercial losses…
COMPANIES CAN DIRECTLY LIST ABROAD Faced with high current account deficit (CAD), the government today allowed unlisted companies to directly list on stock exchanges abroad to raise funds for acquisitions or retiring debts. As of now, unlisted companies are not allowed to directly list in overseas markets without prior or simultaneous listing in Indian markets.
"It has now been decided with the approval of the Union Finance Minister that unlisted companies may be allowed to raise capital abroad without the requirement of prior or subsequent listing in India," the Finance Ministry said in a statement. The such companies would be permitted to list abroad only on exchanges in International Organization of Securities Commissions (IOSCO)/ Financial Action Task Force (FATF) compliant jurisdictions or countries with which SEBI has signed bilateral agreements;
This scheme, it said, will be implemented on a pilot basis for a period of two years from the date of notification and then t…
BANKS TO BEAR CARD FRAUD COST
Refusing to give further extension to banks for complying with security norms, the RBI today said that banks will have to bear the cost of fraudulent card transaction through point of sales that do not have prescribed security features.
"It has been decided not to grant any further extension of time. Accordingly, banks not complying with the requirements shall compensate loss, if any, incurred by the card holder using card at POS (points of sale) terminals not adhering to the mandated standards," RBI said in a notification.
In this context, it said, since the card holder would be approaching the card issuing bank for any fraudulent POS transaction in India which have occurred after September 30, 2013), the bank should claim the amount paid by it to the customer from the respective bank which have acquired the POS transaction in question. The card issuing bank would ascertain, within three working days from the date of card holder approaching the …

FUEL ECONOMY DRIVE FROM OCT 1

LEAD CAMPIGNERS VIRAT KOHLI, SAINA NEHWAL
The Oil Ministry is taking up the mega conservation drive from October 1, which will propagate the need for fuel conservation. Cricketer Virat Kohli and shuttler Saina Nehwal will be lead icons in the campaign. The campaign would encourage proper driving habits, better maintenance of vehicles, use of carpooling for going to offices and schools, switching off engines at traffic lights and driver training to minimise the wastage of fuel. The activities planned in the campaign include direct interaction with consumers to encourage them in adopting conservation measures while using TV, print and electronic media to generate awareness on the issue.
EVERY WEDNESDAY BUS DAY
Leading by example, Oil Minister M Veerappa Moily today said he will travel by public transport every Wednesday, starting October 9, as part of the fuel conservation drive to save USD 5 billion in oil import bill. Moily said he and all officials in his ministry as well as in oil PSUs…
MAHARASTRA HOT SPOT FOR FORIEGN TOURISTS
The country's foreign exchange earnings from the tourism sector are likely to grow at 13 per cent per annum and touch USD 26 billion by 2015 from the current level of USD 20 billion annually, industry body Assocham today said. "Growing at a compounded annual growth rate (CAGR) of 13 per cent, India's foreign exchange earnings from the tourism sector are likely to reach USD 26 billion by 2015 from the current level of USD 20 billion," the chamber said in a statement. Besides, the arrival of foreign tourists in India is likely to cross 80 lakh mark by 2015 from 70 lakh at present, with a CAGR of seven per cent, according to an analysis conducted by Assocham, ahead of the World Tourism Day tomorrow. The state-wise analysis revealed that Maharashtra, Tamil Nadu, Delhi, Uttar Pradesh and Rajasthan are the top five destinations for foreign tourists and comprise 70 per cent of the total number of foreign tourists visiting India. Mahar…
ASIA NEW HOT FAVOURITE FOR INDIANS
Asian destinations like Singapore, Dubai and Thailand are fast emerging as the favourite destinations for Indian travelers, pushing the US, Australia and Mauritius to the back-burner as expenses are spiraling with fall in rupee's exchange value, says a survey. "Singapore, Dubai and Thailand are replacing the US, Australia and Mauritius as top three choices due to rising costs," according to ICICI-Lombard survey. As per the survey, factors like a sharp fall in the rupee, expensive overseas travel and rising air travel have contributed towards this change of preference among travelers. The survey covered Mumbai, Delhi, Bangalore, Ahmedabad and Indore, with inputs coming in from 1,043 participants. The survey further said that while beaches, landscapes, historical and heritage sites seem to be the top consideration for overseas travel, safety and security are also gaining importance. Interestingly, while the US is considered the safest coun…
NOKIA LUMIA WITH 41 MEGAPIXEL CAMERA
Targetting camera aficionados, Nokia India today unveiled its much-anticipated 41 megapixel camera phone Lumia 1020, which will hit shelves on October 11. The price of the device will be disclosed on October 10 but as per estimates, it will be available in the range of Rs 47,000-Rs 48,000. It is currently selling in other markets for USD 800. The dual-capture feature of the phone allows to take a high resolution 38 megapixel image and also creates a 5 megapixel picture that can be shared on social networking sites.The device has an application called Nokia Pro Camera, which makes it easy for anybody to take professional quality images. The application allows users to click pictures first and then zoom later to get their desired shot. The company now has 13 devices in the Lumia portfolio in India.
Lumia 1020 runs on Windows 8 and has 32 GB on board storage. The company has also tied up with Vodafone wherein the customers will get free 2GB of 3G data u…
BEER CAFE TO EXPAND MORE CITIES
Eyeing a share of the growing quick service restaurant (QSR) business in the country, food and beer lounge 'The Beer Cafe' today said it would add 30 outlets over 18 months and take the total number of outlets to 100 by the end of 2015. "We want to be the neighbourhood place where friends get together to share a drink and catch up. We serve 54 kinds of beer. We have five outlets in the Delhi-NCR region. "By November, we will add 10 more outlets across Mumbai, Thane and Punjab. By the end of 2014, we would have 35 outlets," The Beer Cafe CEO Rahul Singh told PTI at the India Retail Forum here today. The company, which is also looking at cities like Bangalore, Chennai and Hyderabad to set up shop, has already commenced work on some stores and is awaiting necessary approvals to start operations, he said. The Beer Cafe had received a funding of about Rs 25 crore in May from Mayfield. "Funds we raised will go into the expansion acr…
SUPPLY CONSTRAINTS...A BIG PROBLEM
Uncomfortably high inflation coupled with supply constraints is impacting India's growth that has slowed to 4.4 per cent in the April-June quarter this year, global credit rating agency Moody's has said.
Over the past two years, India's GDP growth rate has halved from a peak of 9.2 per cent (year-on-year) in the first quarter of 2011, to 4.4 per cent in the second quarter of 2013. While inflation has fallen during this period, it still remains "uncomfortably high", it said. The wholesale prices increased 6.1 per cent y-o-y in August. Indian economy is bumping up against supply constraints...This may explain why Raghuram Rajan's first monetary policy decision was to raise the benchmark repo rate by 25 basis points to 7.5 per cent," it said. Rajan's move is "reminiscent of Paul Volcker's term" at the US Federal Reserve, "when he tightened monetary policy to the point of sending the U S economy into a…
BLACKBERRY Z10 RATES SLASHEDStruggling handset-maker BlackBerry today said it will offer its Z10 handset for Rs 29,990, slashing the price by about Rs 13,500 or 31 per cent, as a limited period offer ahead of upcoming festive season. The handset was launched in January and available for Rs 43,490. It was retailing for about Rs 30,000 on e-commerce stores. "In keeping with the festive season kicking off, we are making a limited period festive offer. Customers can now purchase BlackBerry Z10 smartphone at just Rs 29,990. "This lucrative scheme is in line with our commitment towards this market and will help the brand to reach out to more," BlackBerry said in a statement. BlackBerry had launched Z10 and a Qwerty device Q5, powered by its latest BB10 operating system, with a lot of fanfare. However, it failed to elicit much response from users. "We continue to leverage festive season with relevant product and services promotions. BlackBerry 10 platfo…
RBI BANS ZERO % INTEREST SCHEME
The RBI today banned zero per cent interest rate scheme for purchase of consumer goods, a move intended to protect customers but may dampen the festive spirit. The central bank has also said that no additional charges can be levied on payment through debit cards. "...in principle, banks should not resort to any practice that would distort the interest rate structure of a product as this vitiates the transparency in pricing mechanism which is very important for the customer to take informed decision," RBI said in a notification. The very concept of zero per cent interest is non-existent and fair practice demands that the processing charge and interest charged should be kept uniform product or segment wise, irrespective of the sourcing channel, such schemes only serve the purpose of alluring and exploiting the vulnerable customers, it said. In the zero per cent EMI schemes offered on credit card outstandings, the interest element is often camoufl…
INDIA MOST VULNERABLE TO OUTFLOWS India is among the countries that are most vulnerable to capital outflows as it relies heavily on external funding, global credit rating agency Moody's cautioned today. "India and Indonesia are the most vulnerable to capital outflows because of high reliance on external funding," Moody's Analytics said in its report - 'How US Monetary Tightening Affects Asian Markets'.
It said the impact of recent Fed announcements on bond yields have exposed structural flaws in Asian economies, particularly in India and Indonesia. Moody's said the US Fed's talk earlier of a likely tapering of monetary stimulus depreciated the rupee by 15 per cent, making it the worst performing currency in Asia. The US Federal Reserve last week surprised the markets by saying it will continue with its monthly USD 85 billion bond buying programme and wait for more evidence of growth recovery before thinking of unwinding the stimulus.
Expectations that…
IRCTC WEBSITE NEEDS TO BE REVAMPED

The apex consumer forum has directed Indian Railway Catering and Tourism Corporation (IRCTC) to make its website more consumer friendly, observing that it is "inaccessible" most of the time and needs "drastic improvement". "The IRCTC website should be fool proof and needs drastic improvement. Most of the consumers/passengers suffer from the IRCTC website... Most of the time the website of the opposite party (IRCTC) is inaccessible for hours together," the National Consumer Disputes Redressal Commission (NCDRC) said.
"Therefore, we feel it necessary to issue certain directions as the opposite party should take necessary steps to improve their website which should be user/consumer friendly, fast and perfect in all aspects. It is the need of hour for consumers at large in our country," a bench headed by Justice J M Malik said. It also observed that "rules of IRCTC for refund of e-ticket (if passenger has not …
SHOPPING MALLS STALLED


Three shopping malls became operational and 13 got deferred in the top eight cities of the country during the first six months of 2013 as developers are either cautious or facing cash crunch, property consultant Cushman & Wakefield said today. "The top eight major cities witnessed a total mall supply of 2.94 million square feet (3 malls) during the first half of 2013 with over 64 per cent (13 malls) of the total expected supply deferred," C&W said in a statement. The national capital region (NCR) witnessed the deferment of five malls, followed by two in Pune, Hyderabad, Chennai and one each in Kolkata and Bangalore. "There is considerable demand for quality retail spaces in both shopping malls as well as main streets in most cities. However retailers, though optimistic about their expansion plans, are showing caution prior to launching new stores, which has resulted in the deferment of malls where occupancies have been low and where develop…
ANOTHER HIKE ON CARDS
Having been surprised by the repo rate increase on inflation concern, analysts expect new Reserve Bank Governor Raghuram Rajan to hike the key rate by another 0.50 percentage points this fiscal.
The repo rate hike "indicates that the new Governor is focusing more on inflation than growth. We now expect RBI to increase repo rate by 0.25 per cent each at the next two policy meetings to 8 per cent by end of 2013," house economists at British lender Standard Chartered said. Stating that the Reserve Bank has shifted to an "inflation targeting framework" without explicitly saying so, Japanese brokerage Nomura said it expects a 0.50 per cent hike in repo rate this fiscal. "We are changing our policy call because of this sudden regime shift. Our baseline view has been a continuation of the status quo on policy rates in FY14, followed by a 0.75 per cent repo rate cuts in FY15. We now expect repo rates to be hiked by 50 bps to 8 pe…
FREE MOBILE APP DOWNLOADS GAINING MOMENTUM
The number of free mobile app downloads is expected to hit 239.95 billion by 2017, while paid-for app downloads will touch 14.78 billion mark during the same period, research firm Gartner has said. According to the data available with Gartner, free mobile app downloads stood at 57.33 billion in 2012, while 6.65 billion paid-for downloads were made during the same year. A mobile application (or mobile app) is a software application that runs on smartphones, tablets among others. "Free apps currently account for about 60 per cent and 80 per cent of the total available apps in Apple's App Store and Google Play, respectively," said Gartner Research Director Brian Blau. The research firm expects free app downloads to touch 92.88 billion in 2013, 127.70 billion by 2014, 167.10 billion by 2015 and 211.31 billion by 2016. While, the paid-for mobile app downloads are projected to touch 9.19 billion in 2013, it would be 11.11 billion by 2…
HOUSE INVESTMENT LOOSING SHEEN
The deepening economic slowdown, rising cost of living and low wage revisions, coupled with higher interest rares, are forcing salaried professionals who had earlier invested in properties to put them up for sale, say industry experts. People who had invested in properties some 10-15 years ago are now finding it difficult to service their home loans which have become too expensive now due to the rising interest rates and falling rental yields. According to a survey, resale inventory has increased nearly 30 per cent over the last six months. "Economic slowdown has hit the real estate industry. Salaried professionals who had invested in properties five-six years ago to cash in on the boom, are now looking to sell them as they are finding it difficult to cope with the high cost of living," property portal Housing.co.in co-founder and marketing head Advitiya Sharma told PTI. He said the resale market is currently dominated by young professionals and…

RBI HAWKISH STANCE

REPO UP BY 25 BASIS POINTS
RBI today unexpectedly raised the policy rate by 0.25 per cent as it kept its focus on controlling inflation, which it felt would be above the expected levels in the current fiscal. RBI Governor Raghuram Rajan in his maiden policy review, however, eased liquidity though a reduction in the marginal standing facility rate, at which banks borrow from the central bank, by 0.75 per cent to 9.5 per cent. The repo rate or the short term lending rate has been increased by 25 basis points to 7.5 per cent from 7.25 per cent with immediate effect. He kept the cash reserve ratio (CRR), the portion of deposits that banks are required to maintain with the RBI in cash, unchanged at 4 per cent. At the same time, the RBI reduced the minimum daily maintenance of CRR from 99 per cent of the requirement to 95 per cent effective from September 21, a move aimed at inducing liquidity into the system.
INFLATION MAIN CONCERN"The need to anchor inflation and inflation expectation…
EMERGING MARKETS LEAD THE RALLY
Emerging markets led a worldwide equity rally today as investors welcomed the US Federal Reserve's surprise decision to keep its vast stimulus policy unchanged. Stock markets across the globe jumped following the Fed's yesterday announcement that it would hold off tapering its USD 85-billion-a-month bond-buying scheme. The news was especially welcome in under-pressure developing economies, which breathed a sigh of relief after suffering a heavy sell-off in August as investors bet on the Fed winding down its quantitative easing (QE) policy. "Ben Bernanke had threatened to take away the punchbowl and bring the QE-party to an end. But he's changed his mind... and told us all to party on," said Societe Generale fixed income strategist Kit Juckes. "Emerging Markets is the asset class which suffered most from the 'taper talk' and is the one which is bouncing most as the removal of stimulus is delayed." …

CHATTISGARH EMERGED AS LOWEST UNEMPLOYED STATE

SIKKIM ON TOP IN UNEMPLOYMENTWith country's unemployment rate estimated to be at 4.7 per cent, Sikkim found to be having maximum unemployment rate while Chhattisgarh had the lowest unemployment rate across the country. In its latest Annual Employment & Unemployment Survey report for 2012-13 released by Labour Bureau under Union Ministry of Labour and Employment here today, Sikkim state had the maximum unemployed people in the country. The unemployment rate per 1000 persons aged more than 15 years was highest in Sikkim at 136, followed by Arunachal Pradesh at 130, Tripura at 126, Goa at 107 and Kerala at 104, said Labour Bureau Director General, Daljeet Singh told reporters here today. As per the report, the unemployment rate of the country is estimated to be 4.7 per cent at All India level, he said. In the northern region, maximum unemployment rate was witnessed in Jammu and Kashmir at 88, followed by Himachal Pradesh at 63, Delhi at 57, UT Chandigarh at 56 and Punjab and Hary…

SENSEX TURNED EXTREMELY BULLISH

SOARES BY 684 POINTS TO 20647
The Sensex today soared 684 points to an almost three-year high after the US Federal Reserve unexpectedly left its stimulus programme unchanged, easing fears of capital outflows and giving RBI Governor Raghuram Rajan some leeway before his first monetary policy review. The US Federal Reserve yesterday surprised the market by saying it will continue with its monthly USD 85 billion bond buying programme and wait for more signs of growth recovery. The decision may attract investments in most emerging markets, including India, this year. The rupee also got a boost and traded at 61.80 against the dollar, up over 150 paise, when the stock markets closed for the day. Gains on the BSE were led by banking, realty and capital goods shares, with 12 of the 13 sectoral indices rising. State Bank of India, Tata Steel and ICICI Bank were the major winners on the Sensex. The 30-share index opened more than 390 points higher and climbed to a peak of 20,739.69 before settli…

NIFTY YEAR TARGET 5700

GOLD MAN STAYS UNDERWEIGHT ON INDIAN SHARES
Notwithstanding a sharp rebound in equities, Goldman Sachs today said it stays "underweight" on Indian shares and has a Nifty 12 month target of 5,700 as the country's macro fundamentals are still "challenged". According to the global financial services major, the domestic growth outlook for the Indian economy remains challenged, which coupled with tighter financial conditions may lead to lower valuations. In late July, Goldman Sachs had downgraded Indian equities to 'underweight' saying domestic growth outlook looked weak. "Since then, the overall micro outlook has not changed much", it said.
"We expect earnings to grow 8 per cent in CY14 expected, 5 percentage points below consensus estimate of 13 per cent," Goldman Sachs said adding that "we stay UW (underweight) on India with NIFTY 12month target at 5700".
After correcting 13 per cent from its July highs, the wide based Nationa…
POLICY LEADERSHIP AWARD TO BADAL
Punjab Chief Minister Parkash Singh Badal would be honoured with the 'Policy Leadership Award' in agriculture during the Agriculture Leadership Summit-2013 organised by a magazine at New Delhi tomorrow. The 6th Agriculture Leadership Award Committee -2013 headed by eminent agriculture scientist and Parliamentarian M S Swaminathan had selected Badal for 'Policy Leadership Award' for the year 2013. The Committee has recommended this award in recognition of Punjab's leading role in national agriculture and food security besides promoting the concept of comprehensive agriculture diversification plan under the leadership of Badal.

AMRITSAR-DELHI-KOLKATA CORRIDOR

CONNECTS 20 CITIES...7 STATES
The Inter-Ministerial Group (IMG) to undertake preparatory work for setting up a Amritsar-Delhi-Kolkata Corridor (ADKIC) has suggested connecting the project to 20 cities in seven states with a budgetary support of Rs 5700 crore spread over 15 years. After a series of meetings, the IMG has completed its work and has submitted its report. The IMG, in its recommendations, has said the ADKIC be aligned to the EDFC and it pass through 20 cities in the seven States of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.
The ADKIC also proposes to leverage the existing Highway system on this route and the Inland Water System being developed along National Waterway-1. In the first Phase of the project, every State could promote at least one cluster of about 10 sq. km. area to be called Integrated Manufacturing Cluster (IMC), in which 40 per cent area would be earmarked permanently for manufacturing and processing activities. ADKIC may us…
MORE EXPERTS IN HEALTHCARE & RETAIL NEEDED
Domain specialists in sectors like healthcare and retail will be the growth drivers for India's business process outsourcing (BPO) services industry, according to industry body NASSCOM. "Re-branding it (BPOs) as business process management (BPM) industry is the first step in building a stronger image, which will further enhance its identity as a full-service value provider that specialises in providing performance-based services," NASSCOM President Som Mittal said here. Today, the BPM industry has changed its pricing models and it offers tailored pricing models, suiting the needs of the clients based on their geographical and other requirements, he added. India's BPO services industry accounts for 38 per cent of the global market. Speaking at the NASSCOM BPM Strategy Summit 2013, Mittal added that access to skills will be a key growth driver for the industry with more requirements in vertical domains like…
ONION BLASTS IN INDIA...VICTIMS 110 CRORE PEOPLE...CULPRIT GOVERNMENT

FORIEGNERS CAN CARRY Rs.10000/-  BEYOND IMMIGRATION DESK
RBI today permitted foreigners to carry up to Rs 10,000 beyond immigration desk to the duty free area in airports for miscellaneous expenditures, but they will have to dispose the Indian currency before boarding plane. Earlier, foreigners were allowed to carry Indian currency up to the Customs Desk or the Immigration Desk at international airports in the country. 
"On a review, it has been decided to allow non-residents to carry Indian currency upto a maximum of Rs 10,000 beyond Immigration/Customs desk to the Duty Free Area/Security Hold Area (SHA) in the departure hall in international airports in India for meeting miscellaneous expenditures...," RBI said.
The permission, however, is subject to the condition that they will "not be allowed to carry any Indian Rupee beyond SHA and that they should dispose of Indian currency before boarding the plane," the RBI added. In order to provide money …
ONE BIKE EVERY QUARTER TVS STRATEGY
Eyeing a larger share in the two wheeler market, TVS Motor Company would launch "a new bike every quarter" going forward, a top official said today. The city-based company today rolled out its latest offering -- a 110cc scooterette -- Jupiter, aimed at strengthening its presence in scooter segment. Currently, TVS Motor retails Scooty Pep, Scooty Streak and Wego models. "Every quarter from now, you can expect there will be a new bike from TVS (Motor Company) going forward," TVS Motor Company Chairman and Managing Director Venu Srinivasan said, after launching the latest 110cc Jupiter here. The company also plans to launch an upgraded version of its highly popular scooterette Scooty -- 'Scooty Zest' in January 2014, he said. Today's launch of Jupiter comes after unveiling of a 125cc motorcycle "Phoenix" which according to Srinivasan would cross sales of 10,000 units this month. "I think w…
LPG DIRECT SUBSIDY NOT PAID TO OIL COMPANIES
As the government claims success of direct subsidy transfer on cooking gas (LPG), Indian Oil Corp (IOC) has said oil firms have not been reimbursed cash they have been transferring to consumers since launch of the scheme on June 1. IOC and other oil firms have been paying LPG consumers in 54 districts up to Rs 500 to help them buy a 14.2-kg cooking gas refill at market price, which is more than double of Rs 410 per bottle rate in Delhi. But as the government extends the scheme to 289 districts from January 1, IOC said oil firms have not been paid for the subsidy they extend to consumers on the government's behalf. "So far, OMCs (oil marketing companies) have already spent almost Rs 188 crore towards cash transfer under the DBTL (Direct Benefit Transfer of LPG) scheme," IOC Executive Director (LPG) A N Jha wrote to the Oil Ministry on August 21. Since then, the amount disbursed has risen to Rs 222 crore, none of which has been c…
HOTEL MARGINS HIT TO RECORD LOWS
Indian hotel ind Q2 margins may hit 5-yr low of 8%: ICRA Mumbai, Sept 16 (PTI) Rating agency ICRA today said it expects the Indian hotel industry's margins to slide to a 5-year low of up to 8 per cent in the second quarter of this fiscal due to decline in revenue per available room, weak July-September and inflation in consumable costs. "We expect industry-wide margins for the current quarter (Q2FY14) to ebb down to a 5-year low of 7-8 per cent on the back of decline in RevPAR, seasonally weak July-September quarter and inflation in consumable costs," ICRA said in a release. With uncertain demand conditions and further supply additions, the outlook for the Indian hotel industry during 2013-14 remains negative, according to ICRA.
The down-cycle in the Indian hotel industry has stretched to five years (barring a brief pick-up in 2010-11), compared to past hotel industry cycles globally, which has 1-2 years of lows, preceded by 5-6 years of h…

ONION BLAST

INFLATION AGAIN @ 6 MONTHS HIGH
Inflation again shooted up to 6 months high of 6.1 percent in August leaving little room for the new RBI Governor Raghuram Rajan to rate cut in his maiden  monitor policy. He is scheduled to announce mid quarter Monitor Policy Review on Friday...
Wholesale price index (WPI) based inflation rose for the third straight month, driven by a whopping 244.62 per cent jump in onion prices on annual basis. WPI inflation was 5.79 per cent in July. Inflation in the vegetable basket as a whole was 77.81 per cent and in the fruit segment it was 8.17 per cent in August. The food segment as a whole became costlier by 18.8 per cent during the month.
On the positive side, potato prices fell by about 15 per cent, followed by pulses which became cheaper by 14 per cent. In the case of manufactured items, sugar and edible oils became cheaper by 4.2 per cent and 3.86 per cent, respectively. Overall, manufactured items showed a moderate increase of 1.9 per cent during the mont…
KERALA THRILLED WITH FUND FLOWS
At a time when the country is reeling under the pressure of a weak rupee, non-resident Keralites are laughing their way to the banks with remittance inflows crossing the year-end target of Rs 75,000 crore in just six months of 2013. Kerala has set a new record in remittances this year by already reporting a whopping 36 per cent year-on-year spike in inflows as of June-end at Rs 75,883 crore. This is a net incremental addition of Rs 20,220 crore over Rs 55,663 crore in June 2012, according to data provided by the State Level Bankers Committee (SLBC), which is 32.8 per cent of the total bank deposit in the state. The over 2.5 million Keralites living outside the country contribute over 35 per cent of the GDP of Kerala, where companies hawking premium products and luxe cars are reporting brisk sales during the ongoing Onam season, the largest festival of the state, while elsewhere in the country, barring Punjab, which is another NRI bastion…