BLACKBERRY PLAN @ 129 PER GB

Smartphone maker BlackBerry today launched a plan offering all its services for Rs 129 per GB in 15 mid- and low-revenue generating circles, including Uttar Pradesh, Tamil Nadu and Rajasthan, targetting a deeper penetration in these regions. The monthly plan would be available on the network of Aircel, Idea Cellular and VodafoneI. However, in metros and top four telecom circles of Gujarat, Andhra Pradesh, Maharashtra and Karnataka, the plan is limited to use of BlackBerry Messenger only.The company will offer all BlackBerry services like to email, BlackBerry Messenger, instant messaging, social networking, Internet browsing, as well as access to the BlackBerry World application store. The plan is for BlackBerry OS 7 smartphones in the country which include BlackBerry Curve 9220, BlackBerry Curve 9320, BlackBerry Bold™ 9990, BlackBerry Bold 9 smartphone models.
For Corporate users, in addition to the above services, they can also deploy BES Express at zero cost of Software license to enable corporate email access even on employee owned BlackBerry devices West Bengal (excluding Kolkata), Assam, Bihar, Haryana, Himachal Pradesh, Jammu & Kashmir, Kerala, Madhya Pradesh, North East, Orissa, Punjab, Rajasthan, Tamil Nadu (excluding Chennai), Uttar Pradesh West and Uttar Pradesh East.

BIZ CLIMATE PICKS UP

Business climate has improved in April on factors such as rising production of intermediate goods, including aluminium and iron, and the government's reform initiatives, according to a report. The BluFin Business Cycle Indicator (BCI), which reflects various macroeconomic trends on a monthly basis, stood at 165.9 points in April, 5.1 per cent higher compared to the same month last year, suggesting that the Indian economy is growing at a faster rate than the previous year.
Historically, the BCI has grown by an average of seven per cent year-on-year, financial information provider BluFin said today. Moreover, BCI has been indicating a reversal in the economic slowdown since July 2012 and expects that economic growth in India to gather momentum by the second quarter of financial year 2013-14. The report pointed out some of the components with a "positive influence on the overall composite include falling international prices of crude, gold and copper and rising domestic production of intermediate goods such as aluminium and iron.

Car saler Sabri Carkan and his wife Saliha stand behind a Daimler DB 18 Drophead Coupe in their showroom in Enger, Germany, Monday, April 29, 2013. Experts believe the vintage Daimler DB 18 Drophead Coupe is the only one of its kind left. Only eight of these cars were produced since 1939. The rare car was used by Britain’s wartime leader Winston Churchill between 1944 and 1949 is being sold on auction site eBay.

ETIHAD LINKEDIN

Abu Dhabi-based Etihad Airways has launched an innovative online mapping tool developed in cooperation with professional network LinkedIn to make it easier to message new contacts, arrange meetings and be more productive while travelling. The airline said its 'Etihad Mapped-Out' tool offers professionals on LinkedIn the ability to search their connections by geographical location and see them displayed on a map making it easier for business travelers to connect with their global network of contacts as they travel. According to the airline, LinkedIn members can enter search parameters based on geographical area, industries of interest; and first- and/or second-degree connections. The result of the search is a personalised map of the member's LinkedIn connections, with a listing of business contacts within the region. Members can also reach their contacts instantly by sending messages directly from the contact list, the airline said. "As a global airline, Etihad Airways connects points and people from across the globe, so our Etihad Mapped-Out tool which taps into LinkedIn's global audience of over 200 million is an extension of that mission," Peter Baumgartner, Etihad Airways Chief Commercial Officer, said. Baumgartner said that this tool is particularly useful for guests travelling for business and can use this tool to see immediate contacts in the region as well as second-degree contacts, ahead of a trip. "This fosters more effective networking and greater opportunity to create connections across international boundaries. We are always looking for ways to enable our guests to get more out of their travel experience. For business travellers, the world just got a bit smaller," he said. Fredrik Bernsel, Sales Director for EMEA and LATAM Partners at LinkedIn, said: "A good network of contacts is essential for business success and this innovative initiative from Etihad Airways using LinkedIn's APIs enables Etihad's customers to easily connect with their LinkedIn network while travelling, making it even simpler to get business done and be productive." The Etihad Mapped-Out tool is available exclusively to members of LinkedIn. The tool also allows users to superimpose an Etihad Airways' route map, displaying all passenger destinations served by the airline.

NOW RASNA READY TO DRINK BEVERAGES

Fruit drink concentrate maker Rasna today entered the ready-to-drink beverage segment in the country with launching four variants of juices and said it expects Rs 500 crore revenues from the category in the next three years. "We would be happy if it (beverage segment) becomes a Rs 500 crore entity in the next 2-3 years," Rasna Chairman and Managing Director Piruz Khambatta told reporters here. The juice segment in the country is estimated to be around Rs 5,000 crore per annum, he added. The company also plans to come up with its own manufacturing plant to come out with ready to drink beverages. "Currently, we have contract manufacturing arrangement for juices. In the next six months, we plan to come up with our own plant at an investment of around 50-60 crore," Khambatta said. At present, the company has seven facilities across the country to make powder concentrates. Khambatta said that the company would be adding around five more flavours in juice category and would also look at launching other beverage products in the near future. The company, which currently has more than 80 per cent market share in the powder concentrates market, has come up with a separate entity--Rasna Beverages Division--to spearhead ready to drink vertical.
Rasna has launched juices under the brand name 'Rasna Ju-C' in four flavours -- mango, apple, orange and mixed -- across the country. The juices would be available 1 litre and 250 ml PET bottles.

A Pakistani model presents a creation of a designer Ali Xeeshan during Lahore Fashion Week, Monday, April 29, 2013, in Lahore, Pakistan. Dozens of designers, brands and textile houses will presents their collections in the four-day Lahore Fashion Week sponsored by the Pakistan Fashion Design Council.

MONSTER LAUNCHES SALARY INDEX

A leading online career and recruitment solutions provider Monster India today said it has launched a salary index that provides employees understanding of the level of remuneration they deserve. The Monster salary index was launched in association with www.paycheck.in and IIM Ahmedabad (IIM-A) as research partners. "Our customer research and market studies over the years indicate a strong need for a benchmark that provides both employers and job seekers with comprehensive information pertaining to labour market and salary trends from a single source," Monster.com (India, Middle East, South East Asia) Managing Director Sanjay Modi said. The Monster Salary Index provides job seekers complete information on salaries, labour market data and relevant content concerning labour law and careers.
"How much I am worth in the job market is a question in every job-seeker's mind," IIM-A's Biju Varkkey said, adding that "Collaboration with Monster is expected to improve data intake as well as produce more robust output, in terms of salary information and deeper insights into labour market trends". Commenting on the development, Wage Indicator Foundation that manages Paycheck.in, Director, Pauline Osse, said: "It is the perfect example of how a systematic research and dissemination approach on salaries and labor law is benefiting many people in need for a good benchmark in order to take a wise decision."

TRAINEE OFFICER'S RAREST ACHIEVEMENT

With seven gold medals under his belt, trainee IRS officer Amar Gehlot came in for special appreciation from President Pranab Mukherjee during the valedictory function of Income Tax department officers today. Gehlot, a resident of Meerut in Uttar Pradesh, joined the National Academy of Direct Taxes (NADT) as part of the 65th IRS (I-T) batch. They had come to the elite institution after clearing the civil services exam in 2011. Gehlot was adjudged the 'best trainee officer' of the batch during the event held here. With six academic gold medals, he left only three medals for his batch mates to excel in. He was given the seventh medal by the President, the Finance Ministers gold medal, for his excellent record at academics and other streams of taxation at the institution. The President not only congratulated the young officer and patted him, but also applauded the feat. The achievement was also lauded by his instructors at the academy. Gehlot, alongwith 111 of his batchmates, will join the I-T department as an Assistant Commissioner soon.

WTC GETTING READY

One World Trade Center already is New York's tallest building. When the last pieces of its spire eventually rise to the roof, the 104-floor skyscraper will be feet from becoming the highest in the Western Hemisphere. Officials had hoped that would happen today, but the weather did not cooperate. The Port Authority of New York and New Jersey says the spire pieces plus a steel beacon will instead be lifted at a later date from the rooftop to cap the building at 541.32 metres. The new high-rise replaces the twin towers destroyed on September 11, 2001. The 408-foot spire will serve as a world-class broadcast antenna. The new tower is at the northwest corner of the World Trade Center site, which is well on its way to reconstruction with the 72-story Four World Trade Center and other buildings.

HSBC HOLIDAY BONANZA

HSBC has continued its endeavor of offering great value to its credit card holders around the world with the launch of this season's home&Away privilege programme. The onset of the holiday season brings with it new expectations, and the prospect of new experiences. Between 12 April and 30 June, 2013, HSBC credit cardholders are being provided an opportunity to embrace closer connections with their families and friends with a variety of leisure, travel, dinning and experiential-based activities from 12 countries including Brunei, mainland China, Indonesia, India, Hong Kong, Malaysia, Philippines, Singapore, Sri Lanka, Taiwan, Vietnam and UK. Customers travelling across Asia and looking for a relaxed holiday in Singapore, Philippines, Malaysia, Hong Kong and Vietnam, can enjoy hotel offers of upto 50% off from Regent Hotel Singapore and F1 Hotel in Manila. Aboard the Emeraude Cruises Ha Long Bay in Vietnam a 20% discount on cabin public rate is extended to all HSBC cardholders. They can also choose from over 99 properties of the Carlson Rezidor group of hotels, namely, Radisson, Radisson Blu, Park Inn, Park Plaza, Country Inn & Suites across Australia, Bangladesh, Brunei, mainland China, Fiji, India, Philippines, Thailand, French Polynesia, Japan & Nepal and enjoy 15% off on Best available rates. Cardholders who love exciting outdoor activities or water sports can join the courses run by Active Days Out in UK which provides courses on paragliding, segway riding and snowboarding or Bangalore Mountaineering Club in India which gives out 10% discount on weekend trekking tours, while BEQ Equestrian Centre Sdn Bhd in Brunei provides professional training for horse riding course at 20% discount. For families with kids, they can enjoy free Snowalk from iCity in Malaysia on purchasing Water World ticket. Customers who appreciate art and craft, music and dancing can try out traditional belly dancing, tabla, origami and puppetry courses conducted by SkillKindle in India at 10% discount. Gannesh Bharadwaj, Head Retail Banking and Wealth Management, HSBC India, said, "home&Away is a global privilege programme that provides tangible credit card benefits for all HSBC cardholders. This time HSBC credit cardholders are being provided an opportunity to embrace closer connections with their families and friends with the tangible offers mentioned above. In health and beauty, travel and experiences that inspire them to try something new, broaden their horizons, discover a hidden talent or simply reinvent themselves at home or when they travel. We will continue to enhance the programme to bring new rewards that suit our customers' international lifestyle."

HSBC's network of branches is located at Ahmedabad, Bangalore, Chandigarh, Chennai, Coimbatore, Gurgaon, Guwahati, Hyderabad, Indore, Jaipur, Jodhpur, Kochi, Kolkata, Ludhiana, Lucknow, Mumbai, Mysore, Nagpur, Noida, New Delhi, Nasik, Patna, Pune, Raipur, Surat, Trivandrum, Thane, Vadodara and Visakhapatnam. The Bank is the founding and a principal member of the HSBC Group which, with an international network covering 6600 offices in over 81 countries and territories and assets of US$2,693bn at 31 December 2012, is one of the world's largest banking and financial services organisations.

PREFERRED SEATS @ EXTRA COST IN AIRLINES

In a move that would raise the cost of air travel, the government today said it has allowed airlines to charge passengers for preferred seats on a flight, check-in baggages and meals, among other things. "Civil Aviation Minister Ajit Singh has decided to permit scheduled airlines to unbundle certain services and to charge fees for these services separately," an official release said. The services for which the airlines would be free to charge passengers include preferential seating, meals, snacks, drinks (barring drinking water), check-in baggages, use of airline lounges, carriage of sports equipment and musical instruments and valuable baggages which have higher carrier liability. The practice was launched in 2008 by some US carriers which were facing financial crunch. Their decision to charge for even the first checked baggage had then received flak from air travellers, but the practice still continues with the airlines generating revenue worth millions of dollars. The release said the Minister's decision was based on recommendations of an independent consultant, which said, "Unbundling of services ... has become a necessary aspect of exercising more control over operational costs and running a successful airline". "The objective of the decision is to facilitate airlines to offer low base fare for price sensitive travellers, while at the same time offer choice to service seekers at a price," it said. The decision would "allow the passengers to benefit from lower base fares and to customise the product to better suit their requirements and budget while allowing airlines to develop more sustainable operations in an environment of wafer-thin margins," the release said.

NEW IDENTITY FOR ICELAND

Iceland may soon be known as 'Let's Get Lost Land' or 'Isle of Awe Land' after the two monikers were shortlisted in an online contest to search for a name that best describes the country. The competition "Inspired by Iceland" launched by the country called for suggestions on a new "name" for the country. Two finalists have now been chosen from the 25,000 entries that flooded in - 'Let's Get Lost Land' and 'Isle of Awe Land'. Jon Gnarr, mayor of the capital Reykjavik, said while it won't replace Iceland's official name, it will provide inspiration in how it's marketed, News.com.au reported. "A country's name is its identity but that doesn't mean it describes it in the right way," Gnarr said. Other names submitted included 'Best Place to Grow a Beard Land', 'Niceland', 'Pureland', 'Enchantedland' etc.

TRAVELLERS TO INCREASE BUDGETS

Global cross-border tourism is thriving and travellers intend to increase budgets for their next trip by an average of five per cent with some holiday makers even suggesting that they would more than double what they spent on their previous trip, says a new report. According to Visa's latest 'Global Travel Intentions Study 2013', its regular barometer of travel trends indicates budgets are no longer among the top three reasons behind why travellers choose their next holiday destination. The pull of attractions, scenery and rich culture are instead stronger reasons for travel. According to the study, which surveyed 12,631 travellers from 25 countries, the average global travel budget of USD 2,390 per trip is set to increase to USD 2,501. Top spenders abroad are the Saudi Arabians, spending an average of USD 6,666 per trip, while Australian (USD 4,118) and Chinese travellers (USD 3,824) were not far behind. Future travel budget increases are especially high amongst Asian markets with a predicted increase of 46 per cent - travellers from Singapore, Thailand and Hong Kong all plan to at least double the budget of their last trip in the future, said the report. "Global economic woes have been well-documented over the past few years but our Visa Global Travel Intentions Study 2013 hints at a change in both the financial landscape and consumer mindset, suggesting either economic recovery or a growing appetite for larger travel budgets. Both provide excellent news for everyone involved in the global travel and tourism industry," said Ross Jackson, head of cross-Border in Asia Pacific, Central Europe, Middle East and Africa at Visa. "We have been running the Travel Intentions study since 2006 as our contribution to increasing the collective level of information the industry can use to make intelligent decisions to benefit the traveller and the industry at large. Attractions, scenery, and culture were cited as the key drivers for a future trip regardless of destination. This desire to explore new horizons was evidenced by the latest UNWTO World Tourism Barometer, which revealed that international tourist arrivals grew by four per cent in 2012 to reach 1.035 billion. Visa's study revealed the United States ranked as the most popular destination choice for global travellers, both for trips taken in the past two years (17 per cent) and for intended travel in 2013 (10 per cent). Other top destinations in 2011 and 2012 included the United Kingdom (12 per cent), France (12 per cent) and China, Singapore, Thailand and Hong Kong (all 10 per cent). Looking ahead, regional travel is set to increase with Egypt, Turkey and France emerging on the latest list of most preferred destinations for future travel for residents in Middle East & Africa.

Dzire MILEAGE DRIVE

 












Amid intensifying competition from Honda's Amaze, country's largest car maker Maruti Suzuki India has responded by conducting "mileage drive rally" for its entry level sedan Dzire across 31 cities today. "Competition is in all segment of the cars we sell. We welcome all competition. Our cars speak for themselves by their performance. We are celebrating the 5th year of the Dzire and so we thought of conducting such a mileage rally to connect with our customers," Maruti Suzuki India Vice President (Marketing) Manohar Bhat told. The mileage rally is the second in the series of what MSI described as "celebrations to mark the 5th anniversary of the launch of Swift Dzire". "Dzire remains the most economical model in its class in terms of overall cost of ownership. What we offer is luxury, mileage and value for money," Bhat said.
MSI said over 2,100 participants took part in the Dzire mileage rally held across 31 cities to contest how economically they could drive their cars. In Delhi, 105 people took part and the average mileage in diesel option was 30.9 kmpl, while in petrol it was 26.63 kmpl. In Mumbai the average mileage of 62 participants in diesel was 32.4 kmpl and in petrol it was 30.6 kmpl.

MORE DEMAND FOR INDIAN BONDS

The demand for Indian bonds is likely to pick up in the coming days in the wake of declining commodity prices and rationalised debt limits for foreign investors, according to a Barclays report. While the foreign demand for Indian government bonds has been subdued in the past few weeks, the demand is likely to pick up in the run up to the RBI's May 3 policy meeting, Barclays said. Moreover, the auction results on April 22, also indicate that the improving macro fundamentals (in particular in the wake of declining commodity prices) and rationalised debt limits have been welcomed by foreign investors, Barclays said.
On April 22, Rs 291.08 billion worth of government debt was auctioned to foreign investors. This was the first auction after market regulator SEBI simplified the FII rules."Recent developments – the downside surprise in March WPI inflation, the decline in commodity prices and its positive impact on inflation and India's twin deficits, and the sharp decline in March trade deficit – should help to extend the rally in Indian Government bonds," Barclays said.
In addition, the weakening of the Japanese Yen and the "portfolio effect" of the Bank of Japan's monetary stimulus are also likely to result in inflows into emerging market assets.
Barclays further noted that most of the inflows are likely to go to high-yielding Eastern Europe, Middle East, and Africa and Latin America local currency bonds, while Asian assets are likely to witness a marginal increase in flows.Out of the Asian assets, flows are likely to go into high-yielding Indian and Indonesia bonds, strengthening the case for extension of Indian government bonds rally, Barclays said.
On April 26, the Government securities (G-Sec) rose on good buying support from banks and corporates. The 8.15 per cent G-Sec maturing in 2022 surged to Rs 102.60 from Rs 102.42 on Friday, while its yield went down to 7.74 per cent from 7.77 per cent.

BANKS UNDER RBI SCANNER

The Reserve Bank is looking into sale of gold coins and gold-related investment products by about 30 banks to find out whether their employees are mis- selling such products to customers. The RBI move follows complaints of customers being induced by bank employees and non-staff members within bank premises for purchase of gold coins, gold-related investment products and other wealth management schemes. The central bank is studying the business practices of 30 banks to ascertain any mis-selling of these products and to find whether such products are being sold as a pre-condition for offering the regular banking services, sources said. RBI is also looking into complaints that bank staff are being pressurised by their senior officers to sell gold coins and other gold-related products in lieu of incentives. Earlier last month, RBI had ordered an investigation into three private sector banks, ICICI Bank, HDFC Bank and Axis Bank, for alleged violation of money-laundering norms after a sting operation by a news portal claimed major lapses on this front at these banks. Along with the announcement of this probe, RBI had also said that it has "undertaken a thematic study in respect of banks that are active in selling gold coins, wealth management products to examine whether there are systemic issues and to plug deficiencies and legal loopholes, if any". Now, RBI has widened the scope of its probe to include any systemic issues in sale of gold-related investment products by the banks while the study has been widened to as many as 30 banks, sources said. Earlier there have been talks about RBI looking to ban sale of gold coins at banks, while the central bank's Deputy Governor K C Chakrabarty recently said that the successive Financial Stability Reports of the RBI have highlighted the serious concerns over bank branches selling gold coins, mutual funds and insurance products. An RBI Working Group has already proposed a slew of measures like mandatory quoting of PAN numbers for high-value gold purchases, restriction on gold loans and check on NBFC branches dealing with gold loans.

INDIAN LEADERS MORE CONFIDENT

Compared to their Chinese counterparts, Indian managers have more self-confidence, says a recent report. "Leaders in India were significantly more confident with 41 per cent confident from the start itself. Overall, 81 per cent of leaders in India and 63 per cent of leaders in China felt confident to lead within the first six months," according to talent management expert DDI's report titled 'Finding the Global First Rung Research'. Development Dimensions International (DDI) surveyed 1,373 front-line leaders in China and India. However, the study found there is definitely a disconnect, particularly in India, between self-evaluation and assessment. 38 per cent of Indian leaders feel they are strong in empowerment or delegation, but in reality 76 per cent of them have development needs in this competency. About 80 per cent managers in China are learning their leadership skills through trial and error, while managers in India place a much higher emphasis on outside learning, with a heavy reliance on MBA programmes. The study also found that mentors appeared to be the most effective method of acquiring leadership skills in both the countries. In India, new leaders struggle in the first year as 69 per cent feel their manager has the knowledge and tools to support their development, and 62 per cent feel their manager is committed to supporting them, it said. However, these new leaders are frustrated with the amount of feedback they receive and the quality of their development assignments, it said.

PRODUCT INFO THROUGH MOBILES

Indian shoppers are increasingly using their mobiles to look for information regarding products, with almost 40 per cent preferring their handheld devices to a sales assistant in a store, a study by global market insight and information group TNS has revealed. According to TNS's 2013 annual Mobile Life study, 42 per cent consumers in India seek advice from friends and family while shopping, while checking product reviews on social media stands at a mere 2.4 per cent.
Mobile Life is a global study, which draws on behaviours, motivations and priorities of 38,000 mobile users. The study was conducted across 43 countries between November 20, 2012 and February 4, 2013. "Having knowledgeable sales staff on hand is no guarantee of success, with two-fifth (39.7 per cent) consumers in India preferring to access information on their phone than speak to a sales assistant in store, compared to almost a third of people globally," the study said. However, the study added that reading reviews or checking social media while in a store to inform their decision making by consumers stands at 2.4 per cent in India compared to 16 per cent globally. "42 per cent Indian consumers prefer asking friends and family what they would recommend buying. This is in line with 49 per cent in emerging Asian markets and much higher when compared to such consumers globally (25 per cent)," it added. Another interesting point which the study revealed is that mobiles can play a valuable role in reducing the risk that 'showrooming' poses to retailers.
Showrooming refers to a phenomenon where consumers visit stores only to test products, but buy them later elsewhere.
Showrooming has emerged as a significant threat to the high street in recent years, with one-third of mobile users globally admitting to such a behaviour, it added. "Among those who showroom, two-thirds use their phone whilst doing so, providing a major opportunity for brands to interact with consumers via mobile and turn browsers into buyers," the study said. The study shows that people are open to engaging with brands while in a store, with 11 per cent of smartphone owners in India keen to receive mobile coupons while shopping and 14 per cent interested in apps that help them navigate the store they are in compared to one-fifth globally. 10 per cent of consumers in India are interested in a 'virtual sales assistant', compared to 13 per cent consumers globally, who will help answer their questions in-store about a particular product. "This openness to interacting does present a real opportunity for brands that get their mobile strategy right, to engage meaningfully with people at the point when they are considering a purchase," the study added.

SMALL BUSINESSES IN FIX

Small businesses lose more than USD 24 billion in productivity every year when non-technical employees, referred to as involuntary IT managers (IITMs), are tasked with managing their company's IT solutions, a study commissioned by software giant Microsoft said today. This loss is a direct result of the IITMs taking time away from their primary business activities, the AMI-Partners small-business study, commissioned by Microsoft, said. The 'Involuntary IT Manager' study focussed on the adverse business productivity impact of IITMs in small business in Australia, Brazil, Chile, India and the US. Surveying 538 IITMs across nationally representative samples of small businesses with 100 employees or less in the five countries, the AMI-Partners research study determined that about 3.8-million small businesses managed internal IT by IITMs. Although such small businesses spent USD 83 billion on IT and communications, they lost USD 24 billion in productivity trying to manage their internal IT, the study said.
On average, IITMs lose six hours per week (around 300 hours per year) of business productivity while managing IT, it added. About 30 per cent of the surveyed IITMs said they felt IT management is a nuisance, while 26 per cent indicated they do not feel qualified to manage IT. Six out of 10 IITMs said they wanted to simplify their company's technology solutions to alleviate the difficulty of managing day-to-day IT.

In India, the study found small businesses lost USD 2.67 billion in productivity, while spending USD 6.67 billion on IT/Telecom. IITMs in India lose 7.6 hours of productivity per week managing IT, the highest productivity loss of all countries surveyed, it said.

INDIAN INVESTORS ARE MOST BULLISH

Domestic investors are optimistic about the stock markets though they plan to adopt a more conservative strategy for near future, according to a global investor survey by Franklin Templeton. "Indian investors (83 per cent of respondents) are optimistic about their home country stock markets. However, similar to the global trend, majority of the Indian investors are planning to adopt a more conservative strategy in 2013," the company said in a statement. Franklin Templeton polled 9,518 investors in 19 countries across Asia Pacific, the Americas and the Europe. Respondents in India have the highest return expectations amongst all countries surveyed –- 15 per cent in 2013 and 22 per cent over the next 10 years. However, high inflation is clearly the top factor making investors reluctant to invest in the stock markets in India, followed by the state of the global economy as another factor.
"It is very clear that the industry needs to do a better job of increasing awareness and acceptance of equities and fixed income as core asset classes. There continues to be a strong preference for physical assets such as gold and real estate, and an investing-at-home bias that needs to change," Franklin Templeton India President Harshendu Bindal said.According to the survey, purchasing new home is the top investment goal for investors in India for 2013, followed by precious metals. "Financial savings need to be encouraged through a mix of policy incentives and increased awareness. This will not only benefit the average investor, but also create long-term, productive savings pool essential for economic growth," according to Bindal.

LIC REDUCES SHARE IN SENSEX COMPANIES

State-run insurance giant LIC has lowered its exposure in 17 blue-chip firms, with sale of shares worth an estimated amount of over Rs 8,800 crore, in the quarter ended March 31, 2013. Life Insurance Corporation of India's holding increased in nine Sensex companies during the January-March 2013 quarter, showed an analysis of the shareholding pattern of Sensex constituents. Individually, LIC reduced its stake in Reliance Industries, Infosys, ONGC, State Bank of India, HDFC Bank, ICICI, Tata Steel, Tata Motors, among others during three months ended March 31, 2013. At current share prices, LIC offloaded shares worth Rs 8,865 crore in a total of 17 Sensex constituents. The Sensex fell by 591 points or three per cent during the March quarter. Besides, LIC also trimmed holdings in auto companies --Bajaj Auto, Mahindra & Mahindra and Maruti Suzuki--, drug firms --Sun Pharma and Cipla--, Hindustan Unilever and Larsen & Toubro. Infosys, Sun Pharma and Tata Motors saw LIC reducing its exposure by over 1 percentage point, while the state-run insurer's stake in NTPC, Hero MotoCorp and Coal India increased by at least one percentage point. LIC is estimated to have purchased shares worth about Rs 6,200 crore in nine blue-chip companies, resulting in a net outflow of over Rs 2,665 crore in all the Sensex firms together. It ramped up its stake in Bharti Airtel, Hero MotoCorp, Wipro, Hindalco, NTPC, GAIL, Coal India, ITC and HDFC. LIC's stake in two companies -BHEL and Sterlite- remained unchanged during January-March period from the level seen in the preceding quarter. The insurer did not hold any stake in Jindal Power Steel in the last two quarters and data for one company was not available.

DISNEY THEMED HOUSING PROJECT BY SUPERTECH

Realty firm Supertech Ltd today announced tie-up with Disney India to develop a Disney-themed housing project in Greater Noida at an investment of about Rs 500 crore. The partnership with Disney India comes close on the heel of its tie-up with Italian fashion brand Armani group for interior designing of 100 super-luxury flats in one of the mixed-use project at Noida. The tie-up with Disney India is for developing 800-1000 flats, with Disney inspired exterior and interiors, in the 7.5 acre housing project 'Fable Castle', which is part of the 100-acre township located on Yamuna Expressway. The project will have Disney inspired rooms consisting of Disney-branded furnishing, home decor products and colour palettes among others. The landscape, club, gym and other exteriors would also be based on this concept. "This is our third such project in India. We have already tied up in Mumbai and Kolkata. Consumers in Mumbai have reacted positively for Disney-themed homes and feedback is very good in Kolkata as well". Disney India has tied up with Sunteck Realty in Mumbai, while in Kolkata, it has partnered Team Taurus, she said, adding that the company is looking for more such projects. "We will not do profit sharing with Supertech. There is certain fee," she added. Noting that Disney has different brands for different age group, Bakshi said the concept will differ according to the customer requirement.

USA's Mini Melts Ice Cream in India

USA's Mini Melts Inc launched its ice cream in India today and said it aims to make it available in 1,200 outlets in the next three years across India. It is priced at Rs 40 for an 82 grams cup. Two other packs come in at Rs 60 and Rs 85 with higher quantity. Mini Melts ice cream is produced at a temperature of about minus 190 degrees. Unlike traditional ice cream, it is flash-frozen to lock in its flavour and has no air whipped into it. In order to keep its shape and flavour, Mini Melts is stored at -45C, in specially designed and imported freezers, making it the world's coldest ice cream.

TATA HOUSING GETS OVERWHELMING RESPONSE ON PROJECT

Tata Housing, which adopted the initial public offering strategy to sell apartments, said it has received subscription worth Rs 450 crore in a single day for its newly launched project in Gurgaon. The realty firm had introduced a strategy of selling its housing units through an IPO-styled concept by floating a range of basic sales price between Rs 9,000-11,000 per sq ft. The project, 'Gateway Capital', was oversubscribed 20 times at the pre-launch stage and generated order bookings worth Rs 450 crore in a single day, Tata Housing said in a statement here. "This overwhelming response for Gateway Capital assures us there is a demand for quality homes in the market, despite contradictory speculation. "The sale, held through our innovative IPO-styled strategy, witnessed interest from a wide base of customers from across India and abroad," Tata Housing Managing Director and Chief Executive Brotin Banerjee said. The company had started accepting Expressions of Interest (EoIs), along with a booking amount of Rs 10 lakh, for the first phase consisting of 200 units between February 11 and February 28. It had received 2,200 forms during the period. Tata Housing further said to maintain transparency, the allotments will be made through a software generated, externally audited, random selection process. Post-allotment, customers will be given a choice to select an apartment of their preference.

NOW, BACTERIA TO PRODUCE DIESEL

In a breakthrough, researchers claim to have discovered a method to make bacteria produce diesel on demand. While the technology developed by the University of Exeter, with support from Shell, still faces many significant commercialisation challenges, the diesel, produced by special strains of E coli bacteria is almost identical to conventional diesel fuel. Thus it does not need to be blended with petroleum products as is often required by bio-diesels derived from plant oils, researchers said. This also means that the diesel can be used with current supplies in existing infrastructure because engines, pipelines and tankers do not need to be modified. Bio-fuels with these characteristics are being termed 'drop-ins'. "Producing a commercial bio-fuel that can be used without needing to modify vehicles has been the goal of this project from the outset," Professor John Love from Biosciences at the University of Exeter said. "Replacing conventional diesel with a carbon neutral bio-fuel in commercial volumes would be a tremendous step towards meeting our target of an 80 per cent reduction in greenhouse gas emissions by 2050. "Global demand for energy is rising and a fuel that is independent of both global oil price fluctuations and political instability is an increasingly attractive prospect," Love said. E coli bacteria naturally turn sugars into fat to build their cell membranes. Synthetic fuel oil molecules can be created by harnessing this natural oil production process. Large scale manufacturing using E coli as the catalyst is already commonplace in the pharmaceutical industry and, although the bio-diesel is currently produced in tiny quantities in the laboratory, work will continue to see if this may be a viable commercial pathway to 'drop in' fuels. "We are proud of the work being done by Exeter in using advanced biotechnologies to create the specific hydrocarbon molecules that we know will continue to be in high demand in the future," Rob Lee from Shell Projects & Technology said.

GREECE OFFERS RESIDENCE TO FORIEGN INVESTORS

Greece will be offering residence to non-EU investors purchasing or renting property over 250,000 euros (USD 326,000), in a bid to revive its moribund real estate industry, officials said today. The initiative, voted into law by parliament last week, comes in response to strong demand from Arab, Chinese and Russian investors, the officials from the interior ministry and property groups told a news conference. Valid for five years and open to renewal, the residence plan follows similar measures adopted by Hungary, Spain and Portugal in the past. "Finally, the property market can move out of its paralysis a little," Stratos Paradias, head of the confederation of Greek home owners, told AFP. The permits will enable the holders, their spouses and children under the age of 18 to freely travel -- though not work -- in the Schengen area for three consecutive months at a time. The recession gripping Greece for a sixth straight year and heavy taxation has crippled the country's construction industry that was previously one of pillars of the economy. The Greek crisis has put half a million sector staff out of work and sidelined 12,000 companies, Dimitris Kapsimalis, chairman of the confederation of construction firms, told journalists. Under the terms of the multi-billion EU-IMF bailout that saved its economy from bankruptcy, the Greek state itself must raise 2.6 billion euros through asset sales this year. In addition to controlling stakes in state entreprises, a large number of state real estate has been put up for lease or sale, including ministry buildings and consulate buildings abroad.

MORE SOPS FOR SAVINGS

Expressing concerns over the lukewarm response to Rajiv Gandhi Equity Savings Scheme (RGESS), a Parliamentary panel today asked the Finance Ministry to review the scheme and formulate alternative proposals to encourage savings. The Standing Committee on Finance in its report said RGESS has not found "much favour" with investors, as the amount invested through this scheme was only Rs 51.78 crore involving about 21,000 accounts at the end of March 2013. "The Committee would thus like the (Finance) Ministry to review the scheme in its practical utility and accordingly formulate alternative proposals to encourage savings through measures such as raising the exemption limit of Rs 1 lakh under Section 80 C of the I-T Act," the report tabled in Parliament said. RGESS was notified in November, 2012 as tax saving scheme. Under the scheme to encourage investments in capital market, a new investor with annual income up to Rs 12 lakh would get tax benefits on investments up to Rs 50,000. The panel, which is headed by Yashwant Sinha, further suggested that the TDS limit on Term Deposits with banks may be enhanced to make them an attractive instrument, as a declining trend has been noticed in recent years in these deposits. On the proposal with regard to Securities Transaction Tax (STT) and Commodities Transaction Tax (CTT), the Committee reiterated its earlier recommendation for phasing out of STT and suggested the Finance Ministry to conduct a study on the impact of CTT, especially on food inflation.

NO IMPACT ON GOLD LOAN PORTFOLIOS

Association Of Gold Loan Companies (AGLOC, India) today said a 15-20 per cent price fluctuation in gold prices would not have any significant impact on the gold loan portfolios of member companies as they have already factored such fluctuations in the business model. AGLOC had taken feedback from its members on current development of falling gold prices and its impact on their loan portfolios. "Though gold price is an important factor in gold loan business, the business model should not be misunderstood as a business of financing of gold bullion or shares wherein mark to market valuation could affect the repayment behaviour of the borrower", AGLOC President George Alexander Muthoot said. "The gold loan companies are majorly lending against household jewellery where the impact of such temporary fluctuations on the business model are minimum. These loans are of short duration of 3-6 months. Compared to the disbursements, NPA levels are low," he said. Most of the companies have majority of their branches in semi-urban and rural areas and their loan book consists primarily of loans of ticket size below Rs 1 lakh. Hence probabilities of defaults are low inspite of fall in gold price. The gold loans companies have a system of regularly calling up their borrowers and reminding them about the dues on the loan, Muthoot said in a statement here. The companies extend a monthly interest collection target every month to all its branches which ensures in maintaining regular interface with customers and promotes prompt repayment habit among the borrowers, he said. “AGLOC has asked member companies to review their existing collection mechanism and further strengthen it. There should be regular monitoring of overdues and high loan to value loan accounts. Companies should auction defaulted and abandoned loan accounts with due compliance to fair practice code stipulated by RBI, he said. AGLOC has reduced the maximum lending rate in the light of fall in gold price. Members confirmed that loan demand continues to be robust inspite of reduction in amount lent per gram of gold. It is also noticed that there is regular redemption of earlier loans sanctioned at higher amount per gram of gold. AGLOC was closely monitoring the gold price movements and would advise its members of any further change in the maximum rate of loan per gram of gold, he added.

INDIAN IT CASH RICH

The country's four top IT firms -- TCS, Infosys, Wipro and HCL Technologies -- have seen their combined cash chest swell to a whopping USD 8 billion (Rs 43,200 crore), even as the overall business trends remain sluggish for the entire sector. While TCS and HCL Tech managed to post strong financial numbers for the quarter ended March 31, 2013, the results were mostly disappointing from Infosys and Wipro. However, all the four companies have maintained a strong cash balance as on March 31, 2013.
Tata group's IT arm, N Chandrasekaran-led TCS (Tata Consultancy Services) closed the latest fiscal with total cash and cash equivalents of USD 1.24 billion with an increase of USD 100 million during the year ended March 31, 2013.
Its closest rival, S D Shibulal-led Infosys also saw its cash balance soar by USD 300 million to a humongous USD 4.34 billion at the end of fiscal year 2012-13. Azim Premji-led Wipro, which posted slowest sequential growth in revenues in the quarter ended March 31 among the four companies, also managed to end the fiscal with cash and cash equivalents of USD 1.56 billion. HCL Technologies, the country's fourth largest IT firm, ended January-March quarter with cash and cash equivalents, (including deposits) of USD 762 million, a sharp rise from USD 398 million at the end of March, 2012. TCS has posted annual revenue of more than Rs 50,000 crore for 2012-13, as against about Rs 39,000 crore of Infosys and Wipro's Rs 34,500 crore. HCL Tech follows a financial year of July-June and its total income in the last fiscal ended July 30, 2012 stood at about Rs 9,000 crore. In the quarter ended March 31, 2013 -- the third quarter of the current fiscal 2012-13, it posted total income of over Rs 3,000 crore.

SME STOCKS POST ROBUST GAINS

Investors seem to be reaping rich returns from the stocks that got listed on the leading bourse BSE's SME platform, as 18 out of a total of 22 such stocks are trading above their public issue prices. BSE launched its SME platform for small and medium enterprises in March last year and since then 22 companies have got listed in this segment, while six more are in the pipeline. The SME platform of BSE's larger rival NSE also became operational in September 2012, but only three companies have got listed on it. The shares of two of these three companies are trading almost near their respective issue prices, while the third is trading with a considerable discount. On the other hand, the shares are trading near the levels of their issue prices in the case of three companies listed on the BSE's SME platform and one is trading with a discount to the offer price.
Among BSE's SME platform shares, scrips of Bronze Infra Tech is trading nearly 30 per cent below its issue price, stocks of Sangam Advisors, Lakhotia Polyesters (India) Ltd and Kavita Fabrics Ltd are trading at almost unchanged levels. The stocks trading with significant gains include cosmetic Looks Health Services (532 per cent), Max Alert Systems (380 per cent) GCM Securities (314 per cent), Comfort Commotrade (147 per cent) and Esteem Bio Organic Food Processing (118 per cent). Besides, Eco Friendly Food Processing Park and SRG Housing Finance and Sunstar Reality Development are trading with gains of 74 per cent, 61 per cent and 48 per cent, respectively. Market analysts said the performance of these public issues after they got listed have been very encouraging for investors because of sensible pricing issue. These performance would encourage other companies to launch their public issue on the SME platform, they said. BSE has approved the listing of two companies-- Subh Tex (India) Ltd and RJ Bio-Tech while four firms Finshore Management Services, India Finsec, Kushal Tradelink and Onesource Techmedia have submitted their initial papers with the bourse.

NSE TOP BOURSE

National Stock Exchange of India (NSE) has maintained its slot as the world's largest bourse in terms of volumes in equity segment for the first quarter of 2013, while two bourses from China have replaced NYSE and Nasdaq of the US at second and third rank respectively. NSE logged in a total of 36.6 crore trades in equity segment, during January-March 2013, making it the world's largest exchange in terms of number of equity trades, as per latest data compiled by World Federation of Exchanges (WFE). However, NSE showed a month-on-month decline in terms of the number of equity trades. From 13.8 crore in January, the number of trades dipped to 11.6 crore in February and fell further to 11 crore in March. BSE, another major Indian bourse, which recorded a total of 7.7 crore equity trades in January-March 2013, is placed at the seventh spot. However, like NSE, monthly equity trades on BSE fell to two crore in March from three crore in January. While the total number of listed companies is much larger in case of the BSE, the exchange lags behind NSE significantly in terms of volume and value of trades. NSE is followed by China's Shenzhen SE and Shanghai SE in the second and third position respectively with nearly 30 crore equity trades each. Chinese bourses have replaced the US-based stock exchanges -- NYSE Euronext (US) and Nasdaq OMX. In January-March quarter 2012, NYSE Euronext held the second rank but has now slipped two spots to 4th rank, in the same period this year. Meanwhile, Nasdaq OMX also moved down to the 6th place from the third rank it held in January-March quarter a year-ago. Shanghai SE and Shenzhen SE held 5th and 6th rank respectively in the the first three months of 2012. Other bourses that made their way to top-10 list were Korea Exchange (5th), Japan Exchange Group (7th), TMX Group (9th) and London SE Group (10th).

FII's BULLISH ON TATA GROUP

Foreign Institutional Investors (FIIs) raised their exposure in eight companies of the salt-to -software Tata group that included TCS and Tata Communications during the quarter ended March 31, 2013. At the same time, they trimmed holdings in five other companies of the group such as Tata Steel, Tata Motors and Tata Power.
An analysis of 13 listed firms of the Tata conglomerate which declared their shareholding pattern during January-March shows that FIIs have increased stakes in eight entities.
The USD 100-billion Tata group garners over 58 per cent of its revenue from overseas operations. IT major TCS saw FII holding increasing by about 8 per cent from 14.96 per cent to 16.14 per cent during the quarter. TCS had on Wednesday reported a 22.1 per cent jump in net profit at Rs 3,596.9 crore for January-March quarter and expressed confidence of beating Nasscom estimate of 12-14 per cent industry growth in 2013-14.
Other Tata companies that saw FII stake going up include Tata Chemicals (from 17.24 per cent to 18.04 per cent), Tata Communications (2.77 to 3.74 pc), Titan Industries (18.3 to 19.08 pc), Indian Hotels (14.43 to 15.56 pc), Trent (13.94 to 14.18 pc), Tata Elxsi (1.78 to 1.83 pc), Tata Motors DVR (45.35 to 49.16 pc). In contrast, foreign holding in Tata Steel went down to 13.87 per cent from 14.79 per cent, while Tata Motors saw FII stake going down to 28.38 per cent from 29.01 per cent. FII stake in Tata Power fell from 24.95 per cent to 24.54 per cent, Voltas (21.65 to 18.55 pc), Tata Global (19.13 to 17.77 pc).The BSE 30-stock index, Sensex, had lost nearly 4 per cent during January-March period.

INDIAN MARKETERS BULLISH ON BRAND PERFORMANCE

 Indian marketers seem to be optimistic about their brand performance in 2013 as 85 per cent of them surveyed expect their sales to be higher than last year's, says a study.
According to the Ipsos Asia Pacific Marketers Outlook 2013 study, 43 per cent of Indian marketers surveyed said their companies had performed better than expected in 2012, in terms of sales. Around 33 per cent said that it was the same as the previous year and about 24 per cent believed it was worse than excepted.
The study said Indian marketers plan to focus more on building greater brand loyalty, return on investments (ROI) of their campaigns with better quality and insights from agency partners.
The survey has three fundamental objectives - to gauge business performance for 2012, to understand the outlook for this year in terms of business performance and marketing investment and to evaluate current trends in marketing actions and strategies.
"Understanding target audience and working on a shared strategy were top performing capabilities in 2012 but are less prioritised in 2013, while measuring campaign effectiveness and creative marketing solutions are the top priorities this year for Indian marketers," Ipsos India Head (Marketing Communications) Biswarup Banerjee said.
The study noted that 68 per cent of respondent believe that the key challenge of Indian marketers in 2013 would be improving overall marketing effectiveness and enhancing ROI measurements. This is followed by building greater brand loyalty (61 per cent), developing more integrated marketing strategy (60 per cent) and to further develop the potential of digital media platforms like social networking sites, blogs, mobile (57 per cent).
They expect better quality insights and creative thinking from their agency partners. Indian marketers think social media would take up a higher role in marketing communication plan.
The report said that 70 per cent of Indian marketers and 59 per cent Chinese marketers' have plans to shore-up their overall budget for marketing investments in 2013. For 2013, one-third of the marketers would be working on a budget between USD 1-5 million. Moreover, consumer product companies are likely to have a much larger budget.
The study was conducted among 372 marketing professionals belonging to different industries in the Asia Pacific region, out of which 30 per cent respondents were from China and 19 per cent were from India. In India, a majority of respondents were from consumer products, finance and healthcare industries.

PAYU INDIA ONLINE PAYMENT SERVICE

Ibibo Group company PayU India today launched an online payment solution -- PayUPaisa-- wherein any individual or seller can create their own business page on its website and start selling the products. In order to safeguard buyers' interests, the company has various checkpoints to make online buying safe. "The product (PayUPaisa) is free for sellers and provides tools like webstore, storefront and email invoicing to them, while it has a dispute resolution centre to safeguard buyers and keep their money safe even when they have paid for a product," PayU India CEO and co-founder Nitin Gupta told reporters here. Gupta added when a buyer purchases some product from its webstore, the money is not released to the seller instantly but is kept at nodal bank account, which is mandated by RBI, for three days and after the seller sends a proof of delivery, the money is released into its account. The sellers don't have pay any upfront payment for the service and they are charged 3.2 per cent and Rs 3 only for successful transactions. "We allow the sellers to make a webstore in few minutes. They just need to give their PAN number and bank account details and the verification process is over," Gupta said. As the company is providing free space to sellers, it has set up data centres in Mumbai and Gurgaon. "Our objective is to enable one million sellers and 20 million buyers on PayUPaise platform in the next three years," Gupta said.

INDIA CAN ACHIEVE 7% GROWTH

India should be able to achieve an ambitious growth rate of over 7 per cent in 2014-15 and headwinds like elevated inflation and oil and gold prices are becoming 'tailwinds', Citigroup said today after hosting an investor roadshow of Finance Minister P Chidambaram in the US.
"The groundwork has been done (and) next blocks are in place. It's not going to be easy, but we think economy should get back on track and markets would likely follow," Citi Research said in a report after Chidambaram's address to institutional investors in Boston in the US last night.
"The direct communication with institutional investors builds on ongoing government reforms and follows similar meetings in Hong Kong in January. Strong attendance (almost 100 investors) highlights investor interest in India policy issues," the report said about the roadshow.
India is aiming for a material acceleration in growth, with targets of 6.1-6.7 per cent in the current fiscal 2013-14, over seven per cent in FY 2015 and then more than 8 per cent in FY 2016, Citi said.
"These are ambitious, well above market expectations, and require significant amount of reform and policy support. While the groundwork has been laid over the past seven months, there appears clear intent on accelerating ahead. India has been there before, and could well get there again," it added.Observing that some headwinds are becoming tailwinds for India, Citi said: "Some of India’s major headwinds – high inflation, high oil & gold prices – are seeing significant swings to the positive. "While largely driven by market moves, policy efforts (fuel price reforms, hikes in gold import duty) have also played their part. These swings should ease the fiscal and forex pressures and provide leeway for further monetary easing, especially in the backdrop of benign core inflation," the report said. Citi report said that Chidambaram promised to investors a lot more steps going ahead -- regulator for road/coal, resolution of coal supply issues (in next few weeks), and likelihood of another round of power tariff hikes.
"There’s a longer list, but more importantly, there’s commitment on delivery, and confidence that upcoming elections are not a hitch," it said.
"The FM’s words and his visits abroad underscore the importance of foreign investors to India. The government’s recent actions reaffirm this – abolishment of FII sub-limits in corporate and government bonds, lower withholding tax for long-term infra bonds, simpler KYC norms & fast track registrations," the report said. Citi Research said that the government has been in high gear, which was reflected in economic and market pickup.

INVESTOR WEALTH ZOOMS BY 1 LAKH CRORES

Investor wealth today soared by over Rs 1 lakh crore helped by the BSE benchmark Sensex's nearly 390-point surge on hopes of a aggressive rate cut by RBI and expectations of a lower fiscal deficit on falling prices of crude oil and gold. The Sensex ended the day 387.13 points higher at 18,744.93 and the NSE's 50-share Nifty closed with a gain of 120.55 points at 5,688.95. Led by the rally in the stock market, the investor wealth soared by over Rs one lakh crore to Rs 64.24 lakh crore. Among the Sensex constituents, 27 ended up, with Maruti emerging as the biggest gainer with 4.23 per cent rise. Overall market breadth remained positive as 1,338 scrips finished higher while 1,022 counters ended lower. Among the BSE 13 sectoral indices, 11 settled with gains led by banking index. In the market 1,338 stocks advanced. "Markets have taken cheer from better than anticipated WPI inflation. Inflation is a keystone parameter and improvement in the same can have cascading positives for the economy, leading to upsurge in cyclical and rate sensitive stocks. It has also raised expectations of a rate cut in the RBI's next policy meet," said Lalit Thakkar, Managing Director Institution, Angel Broking. The recent deceleration of gold and crude prices is also constructive for macros and a correction is likely to lend a favorable bias to the current account deficit, which is one of our key concern areas, he said adding decline in crude prices is also a big positive for the markets, as it will help in narrowing the fiscal deficit and keeping inflationary pressures in check. ICICI Bank, HDFC, HDFC Bank, SBI, Maruti Suzuki and Tata Motors saw good buying on rate cut hopes. Investors are hoping that the central bank would ease monetary policy next month to boost growth, experts said. There is an 80 per cent probability that the Reserve Bank will cut repo rate by 0.25 per cent in its monetary policy review on May 3, but it is "not a done deal", leading global brokerage firm Nomura said in a research note today. Oil marketing companies such as BPCL gained for a second day on hopes that fall in crude prices would lower the cost of under-recoveries.

DEVELOPERS ON THE PILE OF UNSOLD PROPERTIES

More than one-fourth of the total 5.2 lakh housing stocks being constructed in the national capital region (NCR) are unsold due to weak demand, according to property consultant Knight Frank. The NCR market witnessed about 31 per cent decline in the new home launches at 33,500 units during the second half of 2012-13 fiscal compared with the year-ago period, while sales fell by 12 per cent to 33,200 units in the review period. On housing prices, Knight Frank's latest report on the NCR residential market said that there has been a steady price appreciation in most of the micro-markets even though demand remained subdued in the NCR market. It attributed the rise in prices to increase in construction cost and investor demand. "Nearly 5,20,000 residential units are under various stages of construction in the NCR market...The NCR residential market has an estimated 1,40,000 units of unsold inventory which is approximately 27 per cent of the units under construction," Knight Frank said in its report. About 66 per cent of the unsold units are concentrated in Noida and Greater Noida due to the start of a number of big projects in these locations. "Even though it is quite high, there is an improvement compared to early 2012 where both these markets (Noida and Greater Noida) together constituted nearly 78% of the unsold units," it added. The report also revealed that almost 50 per cent of housing stocks being constructed is expected to be ready for possession by the end of 2014. "Quite a number of projects that were launched in 2010 have seen execution delays pushing the completion dates to 2014 and early 2015." The developers continue to cope with execution pressures as construction costs have risen, in turn requiring more funds to be diverted towards existing projects, the consultant observed. "Overall the NCR residential market remained subdued with sluggish demand and lower project launches. Nearly 33,500 residential units were launched in H2 FY13, showing a dip of almost 31 per cent compared to H2 (second half) of FY 2012," the report said. On sales, the consultant said that the "NCR residential market observed total absorption of 33,200 units in H2 FY13 showing a dip of about 12 per cent compared to H2 FY12". Nearly 65 per cent of the absorption has been in the affordable and mid-segment housing. On the outlook, Knight Frank said that NCR residential market shows a cautious outlook owing to the slowdown in both project launches and absorption. "Developers are also facing a liquidity crunch due to limited access to both domestic and international funds leading to a slowdown in construction activity and project delays," it said.

INVESTMENT THROUGH P NOTES Rs. 1.64 LAKH CRORES

Foreign investments into Indian markets through participatory notes (P-Notes), a preferred route for HNIs and hedge funds, rose moderately to Rs 1.64 lakh crore (over USD 30 billion) in February. According to the latest data released by the Securities and Exchange Board of India (Sebi), the cumulative value of P-Note investments in Indian markets (equity, debt and derivatives) was at Rs 1,64,271 crore at the end of February. In January, P-Note investments in Indian markets was at Rs 1.62 lakh crore. P-Notes, mostly used by overseas HNIs (High Networth Individuals), hedge funds and other foreign institutions, allow them to invest in Indian markets through registered Foreign Institutional Investors (FIIs), while saving on time and costs associated with direct registrations. Notably, investments into Indian shares through P-Notes was at Rs 1.77 lakh crore in November and Rs 1.75 lakh crore in October on policy reform measures taken by the government and its initiatives to address tax-related issues.

Besides, the value of P-Notes issued with derivatives as underlying, was at Rs 1.05 lakh crore at February-end.
The quantum of FIIs investments through P-Notes increased to a six-month hight at 12.33 per cent in February from 11.83 per cent in the previous month. This was the highest figure since August last year, when FIIs investment via P-Notes stood at 12.7 per cent.
Till a few year-ago, the P-Notes used to account for more than 50 per cent of total FII investments, but their share has fallen after Sebi tightened its disclosure and other regulations for such investments.
The PNs have been accounting for mostly 15-20 per cent of total FII holdings in India since 2009, while it used to be much higher, in the range of 25-40 per cent in 2008. However, it was as high as over 50 per cent at the peak of Indian stock market bull run during a few months in 2007.
FIIs, the key driver of Indian markets, poured in Rs 24,439 crore (USD 4.57 billion) into the country's equities in February. Additionally, FIIs also infused Rs 4,001 crore (USD 743 million) in debt market during the period under review.

GOLDL REBOUNDS IN FUTURES TRADE

After hitting over 21-month low, gold prices rose over 1 per cent to Rs 25,906 per ten grams in futures trade today as speculators covered their short positions after it recovered partially in the global market. At the Multi Commodity Exchange, the most-active delivery in June contracts traded Rs 272, or 1.06 per cent higher at Rs 25,906 per ten gram after touching a low of Rs 25,270 in early trade, a level last seen in August 2011. It clocked a turnover of 42,553 lots. On similar lines, the metal for delivery in far-month August reversed initial losses to trade Rs 229, or 0.88 per cent, to Rs 26,330 per 10 gm in 1,245 lots. Market analysts said recovery in the global markets, as investors feel the fall was overdone and covering-up of short positions by speculators at prevailing levels, helped gold recover from 21-month low at futures trade here. Globally, gold recovered by USD 29.80, or 2.20 per cent to USD 1,382.40 per ounce in early trade in London. Meanwhile, the metal had lost 14 per cent in the previous two days.

ANALYSTS VIEW ON GOLD PRICE MOVEMENT

బంగారం ధరల కదలికలపై అనలిస్ట్ ల కథనాలు

ASTRO PREDICTION ON GOLD

GOLD ETFs MAY FACE REDEMPTIONS

Amid liquidation of gold Exchange Traded Funds (ETF) in the global markets due to the ongoing fall in gold prices, fund houses today said redemption pressure will certainly rise if the price fall continues. They, however, argued that it would not be the end of the road for gold as an asset class and that the yellow metal is crucial for asset diverisification purpose, apart from the fact that nothing fundamentally has changed better for the global economy. "Gold ETFs have seen redemption pressure in the last fiscal in comparison to the 2007-2011 period. With a steep fall in gold prices, this presure may continue. However, there is less possibility of huge redemption as gold as an asset class remains important for portfolio diversification," senior vice-president and head of products and communication at ICICI Prudential M F Himanshu Pandya told PTI today. Gold prices hit a near 15-month low today in the country following reports of Cyprus being forced to sell its gold holding reserves. Other troubled EU nations like Italy, which has the fourth largest gold reserve holding, was also being forced to sell gold to bring its finances back to sails. Gold prices have fallen to Rs 26,850 per 10 grams today from a high of over Rs 33,000 crore per 10 gram mid last year. He also said investors should not expect super-normal profits from the gold ETF space as there is renewed faith in the dollar due to the recovery of the US economy. On the possible rise in redemption pressures in the gold ETF space, IDBI MF chief executive Debasish Mallick said, "if gold continues to fall, there is a likelihood that investors will exit."

He, however, said nothing has fundamentally changed in the global markets for justifying such fall in the gold prices. A fund manger from Quantum Mutual Fund said despite the falling prices, gold will remain crucial as an asset class for diversification. "Gold ETFs comprise a very small amount out of the total pie of investment by domestic investors. So, there may not be high redemptions as investors with long-term outlook will stay invested in this asset class," fund manager (commodities) at Quantum MF Chirag Mehta said. Mehta also said the recent fall is a correction and may not continue as fundamentals have not changed significantly in the global economy.

 

INDIA's GOLD IMPORTS FALL BY 25 PERCENT

Gold imports are likely to go down by about 25 per cent this month to around 53.25 tonnes compared to the same period last year due to the declining gold prices, a bullion trade body today said. "The imports of the yellow metal is likely to be 25 per cent less than the corresponding month last year as the gold prices are declining steadily. Usually, when the prices drop traders hold back in anticipation of further decline, while they buy when prices rise with the fear of additional increase in rates," Bombay Bullion Association president Mohit Kamboj told PTI here. In April 2012, India had imported about 71 tonne gold. When the price stabilises, which is likely to be in a few days, imports of the precious metals will again pick up, he said. "We expect the gold prices to stabilise in next few days. After this, there might be a pick up in imports," he added. India imported about 250 tonnes in the first quarter of this year amid decline in international prices and rise in demand. The country had imported 207 tonnes of gold in January-March 2012. India's gold imports had dipped by 12 per cent in 2012, to 864.2 tonnes compared to 986.3 tonnes in 2011, mainly on account of jewellers' strike over certain budgetary measures and sharp rise in domestic price, according to the World Gold Council Demand Trends Report.