SENSEX AGAIN REACH 19000

Indian markets were on fire today with Sensex zooming by 520 points, its biggest gain in 22 months, with energy firms RIL and ONGC leading the surge fuelled by steep hike in gas price amid hopes US Fed will not begin tapering monetary stimulus soon. Buying across the spectrum saw all 13 sectoral indices closing with gains as FIIs were seen buying stocks after a flurry of reforms in the energy space. Overall, 1535 stocks gained out of 2512 traded, helping investor wealth soar by Rs 1.52 lakh crore today. The Bombay Stock Exchange 30-share barometer resumed up and stayed in the positive zone throughout to end at 3-week high of 19,395.81, a spurt of 519.86 points or 2.75 per cent. Previously, it had gained 567.50 points on August 29, 2011. The NSE 50-issue Nifty flared up by 159.85 points, or 2.81 per cent, to end at two-week high of 5,842.20. Also, SX40 index, the flagship index of MCX-SX, ended 275.16 points, or 2.45 per cent higher at 11,494.35.
Tracking stocks, rupee rebounded to 59-levels after touching historic low of 60.76 earlier this week. Government had yesterday approved near doubling of natural gas prices to USD 8.4 from April 1 next year and okayed setting up of a coal regulator. Last week, it allowed power producers to pass through higher imported coal prices.
INVESTOR WEALTH UP BY 1.5 LAKH CRORES
Total investor wealth in domestic stock markets today soared by Rs 1.53 lakh crore as investors cheered energy reforms, including hike in natural gas prices. Overall, 1538 stocks ended as winners among the 2,500-odd trade on the BSE today. The Sensex ended 519.86 points or 2.75 per cent higher at 19,395.81, the biggest single day gain since August 29, 2011. The NSE Nifty shot up by 159.85 points or 2.81 per cent to close at 5,842.20. "Market sentiment was boosted by positive global cues and a hike in natural gas by CCEA on Thursday. Also, many stocks were in oversold region, which attracted buying from lower levels," said Rakesh Goyal, Senior Vice President, Bonanza Portfolio Limited. Among the Sensex blue-chips, 29 ended higher with Jindal Steel & Power emerging as the biggest gainer. All the BSE 13 sectoral indices also ended the day higher, where the metal sector hogged the limelight. The rupee recovered against the dollar, staging a comeback from an all-time low of 60.76 to 59.19 today. Oil and gas stocks today settled with as much as 4 per cent gains after the government approved near doubling of natural gas prices, a move seen positive for upstream companies. Shares of RIL were up 3.78 per cent to Rs 861.85, while ONGC rose by 2.98 per cent to Rs 330.10 on the BSE. 

GOLD @ 34 MONTHS LOW

Gold today traded near a 34- month low as the worst quarterly slump in at least nine decades following the Federal Reserve’s comments on tapering stimulus may spur more physical demand. Gold added 0.2 per cent to USD 1,202.70 an ounce, after reaching 1,180.50 dollar, a lowest since August 3, 2010. Silver rose 1.9 per cent to 18.84 dollar an ounce, after reaching USD 18.22, the lowest since August 2010. It's down 33 per cent this quarter, the most since 1980. Gold dropped 25 per cent this quarter, its biggest loss since at least 1920. Fed Chairman Ben S Bernanke said that the Fed may begin tapering its bond-buying programme this year. U.S. data may show today that consumer sentiment improved and business activity expanded, economists said. Bullion slid 28 per cent this year, the biggest annual drop since 1981, after rallying the past 12 years. About USD 62.4 billion was wiped from the value of precious metals exchange-traded product holdings this year as some investors lost faith in them as a store of value. A lack of accelerating inflation and mounting concern about the strength of the global economy is hurting silver, platinum and palladium, which are used more in industry than gold. Gold entered a bear market in April, extending the retreat from its all-time high of 1,921.15 dollar in September 2011. Price declines accelerated this year as US bond yields increased and the dollar strengthened. Analysts from Morgan Stanley to Credit Suisse Group AG to Goldman Sachs Group Inc cut gold forecasts this month on prospects for reduced asset purchases.

RUPEE FALL IN JUNE

GOLD RECORDS BIGGEST LOSS AFTER 1920

Gold today plunged to a 34-month low, its record quarterly drop. Gold fell 4.2 per cent to USD 1,224.18 an ounce, the lowest since August 24, 201. Gold dropped 23 per cent this quarter, heading for its biggest loss since 1920. Fed Chairman Ben S Bernanke said last week the central bank may slow its asset-purchase program this year if the economy continues to improve. US durable-goods orders rose more than expected, home sales advanced to the highest in almost five years and consumer confidence climbed, data showed yesterday. About USD 60 billion was wiped from the value of precious metals exchange-traded product holdings this year as some investors lost faith in them as a store of value and speculation grew that the Fed will taper debt-buying that helped gold cap a 12-year bull run last year.

UNDER BEAR GRIP FROM APRIL

Gold entered a bear market in April, extending the retreat from its all-time high of USD 1,921.15 in September 2011. Analysts from Morgan Stanley to Credit Suisse Group and Goldman Sachs trimmed gold forecasts this week, with Morgan Stanley saying that waning investor interest has turned more serious amid a clearer outlook for when the Fed may withdraw stimulus. Silver is 34 per cent lower this quarter, set for the biggest such drop since the start of 1980. It’s the worst performer this year on the Standard and Poor GSCI gauge of 24 commodities. The index is down 5.8 per cent this year, partly on concern that growth may slow in China. Assets in the SPDR Gold Trust, the largest bullion-backed ETP, fell 16.2 tonnes to 969.5 tonnes yesterday, the lowest since February 2009. Global holdings are at their lowest since June 2010. 

IN INDIA...
Gold prices today plunged to one- month low by losing Rs 620 to Rs 26,680 per 10 grams on hectic selling by stockists, triggered by a steep fall in the precious metal's prices overseas. The current fall in the yellow metal prices placed it to a level last seen on May 28. Silver followed suit and plunged by Rs 1,000 to Rs 40,500 per kg on poor offtake by industrial units and coin makers. Traders said selling pressure gathered momentum after gold plunged to a 33-month low in overseas markets as weak US economic data strengthening the case for reduced stimulus from the Federal Reserve as the dollar climbed. Silver sank to its lowest level since August, 2010. Gold in Singapore, which normally sets the price trend on the domestic front, dropped by 2.6 per cent to USD 1,244 an ounce, the lowest level since September 13, 2010 and silver retreated 4.5 per cent to USD 18.76 an ounce. On the domestic front, gold of 99.9 and 99.5 per cent purity suffered a setback of Rs 620 each to Rs 26,680 and Rs 26,480 per 10 grams, respectively, a level last seen on May 28. Sovereigns followed suit and lost Rs 200 to Rs 24,000 per piece of eight grams. In a similar fashion, silver ready nosedived by Rs 1,000 to Rs 40,500 per kg and weekly-based delivery by Rs 1,025 to Rs 39,590 per kg. Silver coins plunged by Rs 2000 to Rs 76,000 for buying and Rs 77,000 for selling of 100 pieces.

MAHINDRA SATYAM MERGES INTO TECH MAHINDRA

IT services firm Tech Mahindra today announced completion of Mahindra Satyam's merger with itself to create nation's fifth largest software services company with a turnover of USD 2.7 billion. The merged entity will be called Tech Mahindra which will aim to almost double the turnover to USD 5 billion by 2015 with focus on telecom, manufacturing, BFSI among others. Anand Mahindra will be the chairman of the combined entity. Today we have fulfilled the commitment made in 2009, when we acquired Satyam, to jointly become one-of-the largest, diversified players leveraging technology for business solutions, Mahindra said in a statement. "Over the past 4 years we worked through the statutory and legal issues, our teams worked closely on the ground to integrate processes, eliminate overlaps, leverage best practices and deliver enhanced value to all our shareholders," Tech Mahindra Executive Vice Chairman Vineet Nayyar said at a press conference here. The USD 16.2 billion Mahindra Group had in 2009 taken over Satyam Computers after a multi-billion dollar scam by its founding chairman B Ramalinga Raju was unearthed. Boards of Tech Mahindra and Mahindra Satyam approved the merger on March 21, 2012. After an approval from the Mumbai High Court, the merger had been awaiting clearances from Andhra Pradesh High Court, which gave nod on June 11, 2013. Nayyar announced that Milind Kulkarni will be the CFO of the combined entity. On the path ahead, Tech Mahindra Managing Director CP Gurnani said: "We will continue to focus on telecom and manufacturing. And we strongly believe that by 2015 we will be a USD 5 billion company." On being asked about Andhra Pradesh High Court's order to continue investigations into the alleged fraud by B Ramalinga Raju, Nayyar said: "There is no investigation pending against the company. We will fully cooperate on the continuing investigation." On share swap, Gurnani said the swap will take place on July 5 in the ratio of 8.5 shares of Satyam for every share of Tech Mahindra held. The combined firm, which will have its headquarters in Mumbai, now has an employee strength of 84,000 serving 540 clients across 46 nations. It has 11 locations in India and 15 overseas for BPO operations and software development. On combined entity's investment plan, Tech Mahindra Chief Marketing Officer and Global Head (Business Consulting) T Hari said it has been investing in platforms to make it more competitive. On acquisitions, he said: "We can go for acquisition this year too, but it should enhance our competitiveness and services potential and at the same time create a niche service portfolio." It has cash & cash equivalent of USD 650 million. On developing more delivery centres, Hari said the company is already expanding centres in Vizag, Bhubneswar and Chandigarh. It is also looking at developing centres in tier-II cities. Shares of both Tech Mahindra and Mahindra Satyam closed 1 per cent higher on the BSE.

SHAME SHAME...

Shame on his part...Union Agricultural Minister says that India is a key player in controling world food prices...Domestic Food Inflation reaching record highs and could not be controlled by the Government due to supply constraints...But the same people at the helm of affairs nod themselves that we are the key players in controlling world food prices...What a pity...See the news...

India has emerged as a strong player in helping cool down global food prices by exporting major farm commodities like rice and wheat, Agriculture Minister Sharad Pawar said today.
"While feeding 17 per cent of world's population we have emerged as strong player in international market helping to cool down the world food prices," Pawar said at the 16th Indian Cooperative Congress organised by NCUI here. Last year, the country exported agriculture produce worth Rs 1.87 lakh crore, while this year till February itself exports have already crossed Rs 2.1 lakh crore, he said.
The minister said that the country has harvested record foodgrains year after year. Agriculture is the only sector in the country which has almost achieved its 11 Plan target of 4 per cent growth rate. The sector has performed well also because of the presence of large number of primary cooperatives handling supply of agriculture inputs, credit, and marketing and storage activities, he added. The minister said that the cooperatives are more relevant in the the present era than any other time because it is the most potent tool for inclusive growth.
"It creates job opportunities, sustainable livelihood for millions of people in the farm sector and also has the capacity to reverse the rural to urban migration," he said.Both short-term and long-term cooperative credit sector and urban cooperative banking sector has the capability to promote financial inclusion, which is necessary for inclusive growth in the rural and semi-rural areas, he said. According to official data, foodgrains production in 2011-12 was record at 259.32 million tonnes. It is expected to be high at 255.36 million tonnes this year.

INVESTORS PULLOUT 3 B ILLION USD IN A WEEK

Investors globally pulled out more than USD 3 billion from equity funds focused on emerging markets including India in a week amid concerns over the US Federal Reserve's plan of curtailing its stimulus drive starting later this year, says a report. According to funds tracking company EPFR Global, over USD 3 billion has flown out of emerging markets equity funds during the week ending June 19. Explaining the outflow, the report said "investors expected the outcome of the US Federal Reserve's latest meeting to be relatively benign". However, equity funds attracted net inflows to the tune of USD 4.81 billion during the third week of June. "While investors are distancing themselves from most of the top tier emerging markets such as China, Brazil, Russia and South Africa, they have retained their appetite for the smaller, riskier, faster growing ones," the report noted. The US Federal Reserve's decision to curtail its liquidity measures with a goal of ending it in mid-2014 has been weighing on emerging market funds. The EPFR did not disclose India-specific fund outflow data. But, according to information available with the Securities and Exchange Board of India (Sebi), the foreign institutional investors (FIIs) pulled out USD 580 million from the Indian market during the week under review. Most of emerging market focused equity funds invest in India as FIIs and the capital flows through this route are a key factor in the stock market trends here. At the country level, Japan equity posted inflows for the straight 21 week, while Germany and Korea also attracted fresh money. However, equity funds dedicated to China extended their losing run as a report from ratings agency Fitch raised new questions about the country's shadow banking system, EPFR said.

CONNAUGHT PLACE 5th MOST EXPENSIVE PLACE

Connaught Place, located in the heart of the national capital, has been ranked fifth in the list of world's most expensive office market owing to strong demand amid limited supply, property consultant CBRE said today. Hong Kong (Central) with annual occupancy costs of USD 235.23 per sq ft topped the "most expensive" list for the third consecutive time, followed by London's West End, Beijing's Finance Street and Beijing's Jianguomen. "India continued to feature in the list of World's most expensive office markets, with New Delhi (Connaught Place – CBD) ranking at the 5th position (with an overall occupancy cost of USD 178.96 per sq ft per annum)," CBRE said in a statement today. In its semi-annual Prime Office Occupancy Costs survey, CBRE has tracked occupancy costs for prime office space in 127 markets around the globe. Mumbai's Bandra Kurla Complex (BKC) and Narima Point is at 11th and 26th positions, respectively. Commenting on the report, CBRE South Asia Chairman and Managing Director Anshuman Magazine said, "Despite a softening in the commercial office space segment in key cities in India, occupancy costs continue to remain high in prime locations such as of Connaught Place in New Delhi" "This is primarily due to low supply of space with very limited new supply expected in the near future. This is especially true for quality office space which has led to occupancy cost remaining high," he added. Strong demand coupled with Connaught Place's central location, excellent access to key regional markets and limited availability of prime office space, has fuelled the area's rising occupancy costs, the report said. CBRE also noted that the gap in office occupancy cost between the CBDs such as Connaught Place and suburbs such as Gurgaon is enormous. "Connaught Place finds mention in the top 5 list, while Gurgaon is at the 72nd spot in the same list. This is one of the foremost reasons why most corporate occupiers (particularly in the IT and allied services) continue to opt for cost effective office spaces in suburbs," CBRE said. Other Asia-Pacific markets in the top 10 include Hong Kong-West Kowloon (6th) and Tokyo (Marunouchi/Otemachi) (8th). New York's Midtown Manhattan (10th) returned to the top ten markets for the first time since early 2012, joined by Moscow (7th) and London's City (9th). "Globally, occupancy costs rose by a scant 1.4 per cent on a year-over-year basis as modest growth in the Americas and Asia Pacific was partly offset by a slight decrease in recessionary Europe," the statement said.

INDIAN MONEY IN SWISS BANKS DECLINES TO 9000 CRORES

Indians' money in Swiss banks has fallen to a record low level of about Rs 9,000 crore (1.42 billion Swiss francs), as a global clampdown against the famed secrecy wall of Switzerland banking system made it unattractive for their global clients. The total funds held by Indian individuals and entities included 1.34 billion Swiss francs held directly by Indian individuals and entities, and another 77 million Swiss francs through 'fiduciaries' or wealth managers at the end of 2012, as per the latest figures released by the Swiss National Bank (SNB) in Zurich today. The official data, which forms part of SNB's annual report on Swiss banks, further showed that Indians' money there fell by about 35 per cent or Rs 4,900 crore in 2012. This was much steeper than a 9.1 per cent fall in the funds held by entities from across the world in Swiss banks, which also hit an all-time low of 1.4 trillion Swiss francs (USD 1.5 trillion) at the end of 2012.While the Swiss banks had close to Rs 14,000 crore (2.18 billion Swiss francs) of Indians' money at the beginning of 2012, the equivalent figure for entities from across the world stood at 1.5 trillion Swiss francs (USD 1.65 trillion). The data has been released at a time when Switzerland is facing growing pressure from the US and other countries to share the foreign client details, while its own lawmakers are resisting such measures. The funds, described by SNB as 'liabilities' of Swiss banks towards their clients from India, are the official figures disclosed by the Swiss authorities and do not indicate towards the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland. SNB's official figures do not include the money that Indians or others might have in Swiss banks in the names of others. 

The sharp decline in Indian money in Swiss banks during 2012 followed a significant increase in the previous year, when such funds had risen for the first time in five years. The quantum of funds held by Indians in Swiss banks stood at a record high level of 6.5 billion Swiss francs (over Rs 41,000 crore) at the end of 2006, but has declined by over five billion Swiss francs (over Rs 32,000 crore) since then. For clients across the world, total funds in Swiss banks stood at a record high level of USD 2.6 trillion at the end of 2007, but has fallen by over USD one trillion since then. In a White Paper on black money tabled in Parliament last year, the Indian government said that the total liabilities of Swiss banks towards Indians have been coming down since 2006 and fell by more than Rs 14,000 crore during 2006-2010 period. Amid allegations of Indians stashing huge amounts of illicit wealth abroad, including in Swiss banks, the government has said it is making various efforts to bring back the unaccounted money. While a new treaty has been put in place for sharing of information on issues related to tax crimes on a prospective basis, Switzerland has also agreed to a limited retrospective clause for such information exchange in case of India. As per SNB data, funds held by Indians directly in the Swiss banks declined sharply by about 700 million Swiss francs in 2012 to 1.34 billion Swiss francs (Rs 8,500 crore) in 2012. On the other hand, the funds held through 'fiduciaries' nearly halved to 77.4 million Swiss francs (about Rs 500 crore) in 2011 -- marking the sixth straight year of decline. Fiduciaries are essentially wealth fund managers who hold the money of Indian private holders and families in the so-called numbered accounts. The Swiss banks' direct liabilities towards clients from India include funds held in savings and deposit accounts by Indian individuals, financial institutions and corporates. 
The size of Swiss banks' assets in India also fell by about two billion Swiss francs to 4.3 billion Swiss francs in 2012. Prior to this, these assets had been continuously increasing since 2006 and had more than doubled by 2011. The experts have been saying that there has been a "perceptible flight of funds" of Indian holders from Swiss banks to other places in the recent years. At the same time, the global pressure has been rising on Switzerland to ask its banks to share information about their clients with foreign governments. It is being suspected now that Indians having illicit wealth in Swiss banks may be moving their funds in fear of being exposed due to growing scrutiny. At the same time, even those having legitimate funds in Swiss banks may be moving away, due to a growing level of negativity attached to them. Top financial regulators Sebi and RBI have already stepped up their vigil over Indian entities routing their funds from secretly held Swiss bank accounts to India through other locations. It is feared that the money might be routed back to India, either into the stock market through FIIs or even via the FDI route. Indians' direct exposure to Swiss banks stood at a record high level of about five billion Swiss francs in 2006, while the amount held through fiduciaries at that time was close to 1.5 billion Swiss francs. Globally, all the foreign clients of Swiss banks had a direct exposure of over two trillion Swiss francs in 2007, while their funds held through fiduciaries were about 365 billion Swiss francs. 

CHAOS IN INDIAN MARKETS

There is a big chaos in INDIAN MARKETS on 20th June, 2013...Stock Market, Forex market and Bullion Market reacted sharply on the Federal Reserve Chairman Bernanke's comments on withdrawal of Stimulus...SENSEX plunged by 520 points and Indian Currency Rupee recorded Liketime low....

The US Fed's monetary stimulus exit plan spooked markets today with S&P BSE Sensex plunging over 526 points, its biggest single-day fall in nearly two years, on massive offloading of shares by investors across the spectrum, amid the rupee hitting a lifetime low of 59.93. After Fed Chairman Ben Bernanke last night said central bank will likely slow its bond-buying programme this year and end it in 2014, global markets went into a tizzy as USD 85 billion-a-month scheme offered easy money, said traders. The Sensex opened with a sharp downside gap and continued to decline further amid rupee falling like a stone to hit record low of 59.93 against the dollar. Sensex kept falling even as finance ministry officials tried to sooth frayed nerves. It ended down 526.41 points, or 2.74 per cent, at over 2-month low of 18,719.29. The 526-point drop is the biggest since 704-point crash in September 2011. 28 out of 30 Sensex scrips closed down. With overall 1,650 stocks ending as losers, investor wealth worth Rs 1.57 lakh crore vanished in today's session. "It was absolute bedlam in financial markets triggered by comments from the Federal Reserve overnight...there was nothing new in Fed statement but huge build up of leveraged positions led to the cascading fall across asset classes," said Amar Ambani, Head of Research, India Infoline. Sustained outflows, weakness in European markets and tepid Chinese manufacturing activity also affected markets. 

Market saw across-the-board sell-off as all 13 indices closed with losses of up to 5.1 per cent. Concerns over withdrawal of funds by FIIs and consequent impact on rupee as well as financing of CAD, hit sentiments further, said Dipen Shah, Head-PCG Research, Kotak Securities. The National Stock Exchange index Nifty dipped below 5,700 level by losing 166.35, or 2.86 per cent to close at 5,655.90. Also, SX40, the flagship index of MCX-SX, closed 308.22 points, or 2.70 per cent, down at 11,118.85. Globally, benchmark indices in China, Hong Kong, Japan, Singapore, Taiwan and South Korea fell by 1.35-2.88 per cent. Euorpean markets were also trading lower in early trade as indices in France, Germany and the UK fell by 2 per cent.

AN INDIAN HEADS SINGAPORE B SCHOOL

Ravi Kumar, an IIT alumnus, was today appointed dean of the Nanyang Technological University's business school here, with the prestigious institution describing him as an academic heavyweight with a good blend of East-West experience. Singapore's Nanyang Technological University (NTU) appointed Professor Kumar as dean of its Nanyang Business School, a statement by the institution said. Kumar did his mechanical engineering from IIT-Madras in 1974. 61-year-old Kumar comes from the University of Southern California's Marshall Business School where he held several key leadership positions, including that of Vice-Dean for international programmes and Vice-Dean for graduate programmes. His academic experience in the East comes from his two years as Dean of the College of Business at the Korea Advanced Institute of Science and Technology while on a leave of absence from University of Southern California. There he introduced reforms that saw the Korean college break into the top 100 of the Financial Times global MBA rankings, the statement said. The statement described Kumar as, "An academic heavyweight with a good blend of East-West experience. A passionate professor who believes in embedding ethics in his curriculum". Commenting on his big move to NTU, Kumar said, "NTU has an ambitious leadership that has been consistently building its brand worldwide. As one of the pillars of the university, the Nanyang Business School has a great reputation for thought leadership." NTU Provost Prof Freddy Boey said, "It has taken two years, as the person chosen as Dean of Business must have accomplishments that commensurate with the school's reputation as one of the world's finest business schools. Prof Kumar was a clear and compelling choice."

KARVY LAUNCHES FIRST HEDGE FUND

Karvy Capital, the asset management arm of financial services provider Karvy Group, today launched first hedge fund named 'systematic edge fund'. According to the company, this fund is an open-ended category-III AIF (alternate investment fund), under the AIF guidelines issued by market regulator Sebi. "The systematic edge fund is a multi-strategy absolute-returns hedge fund and targets delivering positive returns across all equity market scenarios. We hope to garner around Rs 100 crore in next two months from HNIs and select institutions," Hrishikesh Parandekar, Chief Executive and Group Head for Broking, Wealth Management and Asset Management, told reporters here. He claimed that the initial response to the new fund from investors has been sound. In May last year, Sebi had issued regulations for AIFs and opened the way for local hedge funds. Before these regulations, while foreign hedge funds were allowed to invest in domestic equities, domestic firms were not permitted to launch such funds. However, after these norms, many domestic asset management companies have applied for launching hedge funds. On its investment strategy, Karvy said the hedge fund will invest in futures and options of equity stocks and indices.

RUPEE @ RECORD LOWS

The Rupee today sank by a whopping 90 paise to all-time closing low of 58.77 on massive dollar buying by banks and importers as forex markets became jittery ahead of Fed's decision on continuing monetary stimulus. Capital outflows also affected the market sentiment with FIIs offloading shares worth over Rs 750 crore in two days, amid talks of continuing sell-off in debt as well. Since May-end, FIIs have sold around USD 5 billion debt securities. "Forex markets were nervous ahead of the Fed meeting. More than demand and supply, the sentiment was very poor. The decision of whether Fed will taper bond-buying will only be known on Wednesday...Its not right time for RBI to intervene as the trend is bearish," said Mohan Shenoi, President - Group Treasury & Global Markets, Kotak Mahindra Bank. Rupee resumed lower at 58.25 per dollar as against the last closing level of 57.87 per dollar at the Interbank Foreign Exchange Market. It dropped further to a low of 58.81 on concern that US Federal Reserve will indicate a reduction in asset purchases that boosted inflows to emerging markets. Rupee finally ended at 58.77 per dollar, showing a loss of 90 paise or 1.56 per cent. On June 11, the rupee hit its all-time low of 58.98/99 intra-day but closed at 58.39. Local factors like poor trade data also affected rupee today. "Depreciation is mainly due to concerns of high CAD. Also, widening trade deficit data for May had also impacted the local currency today," said Corporation Bank General Manager P Paramasivam, who looks after treasury operations. In global market, dollar gained against major rivals on prospects of a cut in the country's interest rate. In London, dollar rose in early trade and was trading above recent two-month lows against the yen, with further gains dependent on US Fed guidance monetary stimulus to prop up the economy. Participants were cautious as global markets keenly awaited decisions from the US Fed, whose two-day policy meeting starts today. Investors are looking for signals if Fed will taper USD 85 billion in monthly bond purchases after US economy showed some recovery in recent weeks.

SMALL CITIES DRIVE GROWTH OF SMART PHONES

About 70 per cent students today own smart phones with a larger user base in smaller cities than the metropolitan cities, according to a survey by software services firm TCS. Nearly six out of 10 post-millennial respondents own a smart phone, but what is remarkable is that the difference in ownership patterns between metros (58.50 per cent) and mini metros (59.36 per cent) is not much with the smaller cities scoring over the larger ones, TCS said in a statement. The survey was conducted on nearly 17,500 high school students across 14 Indian cities, which revealed that smart devices and unprecedented levels of online access are making this generation the most connected yet. This is changing the way they communicate with each other and transforming both their academic and social lives, it said. Samsung emerged as the most popular brand with 48.28 per cent respondents agreeing, while Nokia and Apple followed with 46.46 per cent and 39.56 per cent respondents saying they owned electronics products of these brands. While nearly seven out of 10 high school students said they own mobile phones, about 20 per cent said they use mobile phones to access internet (compared to just 12 pc in 2009). Mobile phones also emerged as fastest growing mediums for accessing internet among post-millennials (18.17 percent). About 62 per cent said they bought movie tickets online, while 47 per cent purchased books, DVDs and music. Facebook is the most popular social networking site with 83.38 per cent saying they are registered it, while 91.54 per cent said this was also their most preferred portal. "The survey shows the increasing comfort levels that the Post-Millennial generation exhibit with digital technology, social networking, smart phones and gaming, which helps us create conditions to unleash their creativity and innovativeness," TCS Executive Vice President and Global Head HR Ajoy Mukherjee said. This can help us not just attract the best of talent but also aid in keeping them engaged and energised, he added. Facebook /Twitter also emerged as the preferred mode of communication over SMS with 73.68 per cent opting for the former compared to 53.84 per cent agreeing in favour of messaging.

RARE HONOUR FOR AN INDIAN

A 29-year-old Indian-origin journalist was today named the editor of The Independent, becoming the first non-white editorial head of a UK national paper. Amol Rajan will replace Chris Blackhurst, becoming Fleet Street's first non-white newspaper editor. He was previously the paper's comment editor. Rajan was born in Kolkata before moving to London as a three-year-old. He grew up in Tooting, south London, and went on to read English literature at Cambridge University, the Guardian reported. After graduating, Rajan worked briefly for the Evening Standard and Channel 5, before moving to the Independent where he rose through the ranks from news reporter. It was also announced this morning that Oly Duff, the executive editor of the Independent, has been made editor of sister title, i. Duff, 29, replaces Stefano Hatfield, who is in charge of overseeing the Evening Standard's London Live TV project. Lisa Markwell has also been appointed editor of The Independent on Sunday, having previously been executive editor, The Independent reported. Evgeny Lebedev is the owner of The Independent, The Independent on Sunday, i and The London Evening Standard. The announcement was made by Levedev on Twitter this morning. "Our businesses are at a critical stage and a bold approach is needed for our industry. Today I am continuing this approach by appointing as editors two highly talented young journalists. Their energy, creativity and resourcefulness will invigorate both The Independent and i," Lebedev said.

GOOGLE DOMINATES MOBILE ADS

Google captured more than half of the USD 8.8 billion spent on mobile Internet advertising worldwide last year and is expected to boost its share in 2013, a market watchers said today. Google also took in one-third of all digital ad dollars spent globally, according to eMarketer, in its first figures on worldwide digital and mobile advertising at major Internet companies. The eMarketer figures showed Google had USD 4.6 billion in mobile ad revenues, a figure expected to rise to USD 8.85 billion in 2013. That would bring its market share from 52 per cent in 2012 to 56 per cent this year. Facebook, meanwhile, which had no mobile revenue in 2011, took in USD 470 million and is expected to increase mobile revenues by more than 333 per cent to over USD 2 billion in 2013. That would account for a 12.9 per cent share of the global online mobile advertising market, eMarketer said. Among the others in the mobile ad sector is online music group Pandora, which is expected to see revenues jump to USD 400 million this year, but with its market share slipping slightly to 2.5 per cent. Twitter meanwhile is expected to increase its share to nearly two per cent this year with USD 310 million in revenues. For the overall online advertising market, Google is expected to boost its share to 33.2 per cent from 31.5 per cent last year. Facebook is expected to hold second place and increase its share to five per cent, followed by Yahoo! (3.1 per cent) and Microsoft (1.8 per cent). EU anti-trust authorities have been investigating Google's dominance of online search advertising platforms.

EGGLESS CHACOLATES FROM MARS

Keeping in mind the number of vegetarians, chocolate and confectionery maker Mars International today launched chocolate brand snickers in an eggless variant. Mars has set-up a new assembly line to manufacture the new vegetarian snickers to cater to the increased demand for eggless chocolates, the company said in a statement. "Our endeavour is to bring quality chocolates that will satisfy the Indian palate. The launch is in line with our business objective of growing our snickers range. With snickers green dot we wish to cater to our growing vegetarian consumers," Mars International MD for chocolate business MV Natrajan said. Snickers vegetarian chocolate will be available in two pack sizes –- 25gms and 54gms priced at Rs 15 and Rs 30, respectively. The non-vegetarian stock keeping units will however continue to be available in the market as well, the company added.

FACE LAUNCHES "HASHTAG"

Social networking giant Facebook is now adopting the "hashtag," a distinctive feature of rival Twitter, to help members keep track of popular topics being discussed on the social network. "Starting today, hashtags will be clickable on Facebook. Similar to other services like Instagram, Twitter, Tumblr, or Pinterest, hashtags on Facebook allow you to add context to a post or indicate that it is part of a larger discussion. "When you click on a hashtag in Facebook, you'll see a feed of what other people and pages are saying about that event or topic," Facebook said in a statement. Hashtags have helped social networking users to participate in online conversations as real-time events like political debates and sports events unfold. It has also helped advertisers reach out to a particular set of audience.
"Hashtags on Facebook are just a first step. We'll be rolling out more features in the coming weeks and months that make it even easier to discover and participate in conversations about shared interests on Facebook," it added. Facebook also said it looks forward to working with media partners, broadcasters, and journalists on how best to leverage these new tools.

NORMS MADE SIMPLE FOR FORIEGN INVESTORS

To attract more capital inflows, a panel appointed by Sebi today suggested a slew of measures including simplified registration process for foreign investors and classifying them into a single category. Besides, the committee headed by former Cabinet Secretary K M Chandrasekhar, also suggested that Know Your Client (KYC) rules should be based on the risk profile of investors. The recommendations from the panel come at a time when the government is exploring ways to lure more foreign capital into the country and strengthen the falling rupee. According to the committee, single overseas investments of more than 10 per cent in a company should be considered as Foreign Direct Investment while those less than 10 per cent should be classified as foreign portfolio investment. Existing FIIs, Sub Accounts and Qualified Foreign Investors (QFI) should be merged into a new investor class called 'Foreign Portfolio Investor' (FPI). "In a significant move to make the procedure much simpler, the Committee recommended that prior direct registration of FIIs and Sub Accounts with Sebi should be done away with," Sebi said in a release today. Instead, the new class of investors (FPIs) should be allowed to register themselves with Designated Depository Participants (DDPs). The committee on 'rationalisation of investment routes and monitoring of foreign portfolio investments' said that KYC norms for investors should be based on their risk profiles. 
"With the simplification of procedures in KYC/account opening and onboarding etc., the committee believes it will make the experience for FPI of entering into India more pleasuresome and smooth, resulting in increasing inflows into India," the release said. Besides Chandrasekhar, other committee members include representatives from the government, RBI and market participants. As per the committee, the aggregate investment limit for FPI should be at 24 per cent and the limit can be relaxed depending on individual sectoral caps. Meanwhile, investments from Non Resident Indians (NRIs) and Foreign Venture Capital Investors (FVCIs) should remain as separate classes. The panel has suggested that the "present list of nine sectors should be considerably expanded" for FVCIs. "Alternately a negative list may be announced by Government of India so that rest of the sectors are opened for VCF activity," it added. According to the panel, the risk profile of overseas investors should be classified into three types -- low risk, moderate risk and high risk. Government and its related entities such as foreign central banks, sovereign wealth funds and multi-lateral organisations, among others, should be considered as low risk investors. In the 'moderate risk' category, banks, asset management companies, mutual funds, pension funds, investment funds and others should be included. All other entities should be categorised as 'high risk'. "The approach to KYC will be risk based. The documents needed for registration and onboarding would be the simplest for Category I (low risk) and the most stringent for Category III (high risk)," the release said. Further, the panel has said that submission of personal identification documents should be done away with for investors coming under low and moderate risk categories. With regard to issuance of Offshore Derivative Instruments (ODIs)/Participatory Notes (PN), which are -- popular among foreign investors, the panel said that high risk entities should not be allowed to issue such instruments. "Further, the ODI/ PN issuer FPIs will continue to report directly to Sebi, as prescribed by Sebi," the release said. In October 2012, the Sebi Board had decided to prepare a draft guideline based on the guidance of the Working Group on Foreign Investment in India (WGFI), for consideration of the Government of India (GoI) and to implement the same had set up the committee. 

SEBI WILL HAVE ACCESS TO CALL RECORDS

Capital market regulator SEBI will soon get powers to summon phone call records, emails and SMSes of persons it is probing for insider trading and other market manipulations. With these powers, the Securities and Exchange Board of India (SEBI) aims to prevent black money coming into the market as well as to keep an eye on insider trading. SEBI's plea for such powers has been endorsed by the Finance Ministry which late last month wrote to the Ministry of Home Affairs for designating the capital market regulator as agency authorised to receive call data records (CDR). Sources said Economic Affairs Secretary Arvind Mayaram late last month wrote to Home Secretary seeking designating SEBI as agency authorised to be a recipient of CDR information related to calls, emails and SMSes under the Indian Telegraph Act, 1885. This followed a meeting Finance Minister P Chidambaram took on May 15 to discuss how SEBI can be enabled to requisition and receive CDRs of calls, SMSes and emails available with telecom/other service providers. Sources said Section 11C of the SEBI Act empowers the regulator to call for information and records from any intermediary or person in respect of any transaction in securities which it is investigating. SEBI, as per this section, is an investigation agency for offences related to market fraud and insider trading and can thus summon CDRs. Sources said the ministry asked MHA to operationalise an arrangement for SEBI being designated as an agency which can requisition and receive CDR information related to calls, emails and SMSes under the Indian Telegraph Act, 1885. The market regulator has been seeking government's help in getting call data records and e-mail records from the service providers of persons being probed by Sebi in cases of insider trading and other market manipulations. However, the regulator is not asking for powers to snoop on telephonic conversations. CDRs generally list out the number of conversations between two or more entities and are different from phone-tapping, wherein an agency can snoop on or record the telephonic conversations of those suspected to be engaged in some wrongdoings. Regulators in the US and some other countries have often used tapped phone conversations to prove insider trading and other charges, including in the famous Rajat Gupta case. Currently, the phone-tapping powers are restricted to only a few agencies in India, including the CBI and the tax department. Sources said the finance ministry is separately considering amendments to the SEBI Act, SCRA and the Depositories Act to strengthen the regulator's powers.

CONSUMPTION IN INDIA ON INCREASE

Despite rising short-term economic uncertainty and GDP projections cut to 5-6 per cent, the consumption in India is expected to touch USD 3,600 billion in 2020 from USD 900 billion in 2010, says the CII and Boston Consulting Group (BCG) report on Retail and FMCG. "Organised retail in India is at an inflection point. There is healthy revenue growth of 25 per cent CAGR over the last 5 years, however, organised retail contributes to less than 10 per cent of overall sales across multiple categories". "This gap in sales forms the biggest growth opportunity for organised retail, especially with consumption expected to touch USD 3.6 trillion by 2020 from the 2010 figure of USD 900 billion," the report titled 'Winning with Uncertainty' by CII and BCG said. Hence, it is imperative that FMCG and retail organisations balance caution due to short-term uncertainty with investment required to drive long-term growth, it said. "Businesses are capital constrained (due to a global slowdown), facing volatile commodity prices and seeing a cautious consumer sentiment". "The Indian consumer however, is still willing to spend and trade up for the right value proposition, differentiation and innovation. Hence consumer businesses in India, need to constantly walk the tight rope balancing growth and efficiency," Titan Industries Managing Director Bhaskar Bhat said. The report highlights the need for FMCG and retail companies in India to prepare for an increasingly uncertain future and proactively take measures to leverage market volatility to create competitive advantage. The report said that uncertainty in business environment in India was primarily being driven by six structural factors, namely, changing macroeconomic scenarios in the country; heightened volatility in commodity prices; uncertainty in policy making; rapidly evolving consumer base and behaviour; emergence of new breeds of competitors within industries and development of game-changing technology.

SLEEP COST 293 MILLION DOLLARS

Not a matter to sleep over! A German bank employee fell asleep on the keyboard of his computer and accidentally transfered USD 293 million which lead to the sacking of a colleague, a court has heard. A German labour court ruled yesterday that a bank supervisor was unfairly sacked for missing a multi-million- euro error by a colleague who fell asleep during a financial transaction. The clerk was transferring 64.20 euros when he dozed off with his finger on the keyboard, resulting in a transfer of 222,222,222.22 euros (USD 293 million). His supervisor was fired for allegedly failing to check the transaction. But judges in the state of Hesse said she should have only been reprimanded. The incident took place in April last year when the tired bank clerk fell asleep at his computer with his finger pressed on the number two key, the BBC reported. His 48-year-old supervisor, an employee at the bank since 1986, told the court she had not noticed the error and approved the transaction. Another colleague spotted the mistake later and corrected it. The bank accused the supervisor of not even verifying the clerk's work. But the court heard that on the day of the erroneous transaction, she had checked 812 documents for mistakes, with most taking just over a second of scrutiny. The judges ruled that there had been no malicious intent on her behalf, and that she should have received a warning. As a result, they ordered the bank to reinstate the supervisor, saying her work contract could not be terminated.

SLEEP COST 293 MILLION DOLLARS

Not a matter to sleep over! A German bank employee fell asleep on the keyboard of his computer and accidentally transfered USD 293 million which lead to the sacking of a colleague, a court has heard. A German labour court ruled yesterday that a bank supervisor was unfairly sacked for missing a multi-million- euro error by a colleague who fell asleep during a financial transaction. The clerk was transferring 64.20 euros when he dozed off with his finger on the keyboard, resulting in a transfer of 222,222,222.22 euros (USD 293 million). His supervisor was fired for allegedly failing to check the transaction. But judges in the state of Hesse said she should have only been reprimanded. The incident took place in April last year when the tired bank clerk fell asleep at his computer with his finger pressed on the number two key, the BBC reported. His 48-year-old supervisor, an employee at the bank since 1986, told the court she had not noticed the error and approved the transaction. Another colleague spotted the mistake later and corrected it. The bank accused the supervisor of not even verifying the clerk's work. But the court heard that on the day of the erroneous transaction, she had checked 812 documents for mistakes, with most taking just over a second of scrutiny. The judges ruled that there had been no malicious intent on her behalf, and that she should have received a warning. As a result, they ordered the bank to reinstate the supervisor, saying her work contract could not be terminated.

ONLINE ADS PENETRATES RURAL MARKETS

Black 'Murrah' buffalo with short and tightly curled horns for Rs 80,000 and herd of 10 'Holstein Friesians' cows at Rs 6 lakh on the click of the mouse -- the Indian online classifieds are moving beyond usual items such as mobiles, cars and real estate with increasing internet penetration in smaller towns. Online classifieds players Quikr and Olx are finding good traction for their business from semi urban and rural areas in states like West Bengal, Tamil Nadu, Karnataka, Maharashtra, Orissa, Assam and Uttar Pradesh.
"While the main metros continue to be top contributors to our site, the rapidly increasing internet usage in Tier 2 and Tier 3 towns has also boosted our growth tremendously...Today Tier 2 and 3 cities account for over 50 per cent of our traffic," Quikr CEO Pranay Chulet told PTI.
Olx, which has a majority of users mainly from metros, is also finding that small town traffic on its site is growing. "We do notice positive trends from Tier – 2 cities as well. These include cities like Jaipur, Surat, Cochin," Olx CEO Amarjit Batra said.
With these sites offering platform to users to buy and sell a wide range of products, it is not surprising that enterprising farmers are using them to sell their pets and animals as well.
"...people are now witnessing responses to ads even for pets and animals like cows and buffaloes, which have been listed for sale on OLX from rural or semi urban areas," Batra said, adding such trends were prevalent globally. Buying and selling of such dairy animals is already a practice in rural India and the availability of this platform has further catalysed the trading of dairy farming animals ensuring better reach and responses compared to other traditional platforms, he added. Expressing similar views, Chulet said:"People are very passionate about their pets and that reflects in the kinds of ads/replies we find for adoption of various pets on our site. We also have rural users putting up their animals for sale even though we have never actively promoted it." With a variety of users across different sections, these online classified sites are witnessing a range of products being sold and purchased. 
"Users have listed exceptional and unique products for sale that are not available anywhere. People have been posting ads for their Bombardier jets, Bhagwad Gita lockets as well as antique Rolls Royce on OLX," Batra said. On the rapid pace of growth of online classifieds in India, he said: "All of it is due to the increasing internet penetration and awareness of this space due to heavy marketing spends by most companies". Chulet is also expecting to increase the number of transactions as internet penetration rise. "We believe our platform will continue to see a lot of traction in the years to come as more and more Indians get comfortable with online buying and selling," he said. Still at a nascent stage, the sites are currently working on a hybrid model that includes paid listings and advertising on the website to generate revenue. 

CONSUMER CONFIDENCE IMPROVES

Indian consumers' confidence level rose in the month of May owing to improved spending behaviour coupled with easing inflation, says a study by financial services provider BluFin. BluFin's Consumer Confidence Index (CCI) rose to 41.4 points in May, an increase of 3.4 points since the beginning of the year. The index is a key 'aggregate' indicator that assesses the pulse of urban Indian consumers with regard to the economy, spending behaviour and employment. The index reflects pessimism at below 50 score and optimism above that. The two key components of the CCI indicated improvement in the consumer sentiment.
A sub index, which rates inflation sentiment, rose from 23.9 points in January to 26.8 points in May, while the spending sentiment improved from 28.3 points to 30.5 points in the same period.
However, pessimistic views on employment, continue to be a small drag on the the consumer confidence index. The employment sentiment declined to 50.2 points in May from 51.4 points at the beginning of the year. Nonetheless, the score itself is encouraging as it is above the benchmark level of 50.
Another sub-index, which measures future expectations was at 40 points, indicating consumers were still pessimistic about the economy's prospects. However, consumers were more comfortable about their present situation with a score of 46.
In terms of region, consumer confidence in North India registered a rise of about two points to 39 points in May, after a steady decline since January 2013.
"North Indian consumers, who have been the most sensitive to economic vagaries in the recent past, have been showing increased propensity to spend. This makes the North India numbers a lead indicator of an impending turnaround in overall consumer sentiment in India," BluFin CEO Rashid Bilimoria said.
"A key driver for this improvement is declining pessimism about inflation among consumers leading to a rising expectation of a rate cut," he added. The survey has shown consumers in the eastern region of India to be the most pessimistic while those in the southern states to be the most optimistic, with cities such as Bangalore generally scoring above the benchmark level of 50.
The index is based on nation-wide monthly surveys of 4,000 respondents across 18 cities conducted by custom market research company TNS.

OPEN OFFERS WORTH 7000 CRORES IN APRIL

Public shareholders received open offers worth a whopping Rs 7,003 crore by listed companies in April -- the second highest level in the year so far. A total of 10 open offers for shares worth Rs 7,003 crore were made by the companies in April to buy shares from public shareholders, as per the latest data compiled by the market regulator Sebi. This is the second highest value of offers made in a month since January 2013 when companies had made 11 open offers for Rs 8,308 crore. Besides, the amount is significantly higher compared to the four offers amounting to Rs 135 crore in March, this year. According to Sebi regulations, pursuant to substantial acquisition of shares or change in control in a listed firm, an acquirer has to make an offer to the public shareholders, known as open offers, so as to give them a fair opportunity to exit the company if they so wish to. Open offers are made with the objective of change in control of management, consolidation of holdings or substantial acquisition in a company.
"Out of the 10 public takeover offers during April 2013, nine offers worth Rs 6,977 crore were for consolidation of holdings while there was one offer worth Rs 26 crore for change in control of management and none for substantial acquisition," Sebi said. As per the regulator's latest monthly bulletin, six firms closed their offers in April, including one offer related to acqusition of 4.8 crore shares of United Spirits by Relay B V. United Spirits shares were offered at a price of Rs 1,440 apiece, amounting to Rs 6935.57 crore. The other companies for which offers closed were -- Orient Refractories, Mapro Industries, Shree Surgovind Tradelink, Archana Software and Hind Syntex.

GOOD IDEA

A Dubai-based NRI doctor-cum- entrepreneur has initiated a campaign in his native state to promote preservation of water using a cheap rain harvesting device made by a local Keralite, amid acute drinking water crisis in Kerala during summers. Azad Moopen, who heads the DM Healthcare, a leading healthcare conglomerate in the Middle East, believes that the current water shortage in Kerala can easily be solved even if a small section of the population preserves the rain water that goes into the Arabian Sea due to the peculiar slanting topography of the state, the Khaleej Times report said. Moopen decided to test it out in his home village of Kalpakanchery, where the wells and ponds dry by January every year. People in the village have been sourcing water from far off places in tankers paying Rs 600 for 2,000 litres. Moopen found a cheaper solution in an indigenous rain harvesting device, developed by Perumalparampil Jaleel, that seeks to harvest rain water from rooftops. Under the system, rain water from the roof is sourced to a plastic drum through PVC pipes. The drum acts as a filter as it is filled with pure river sand, charcoal and baby metal. After filtering, the harvested rain water is driven to the well through another PVC pipe. In most cases, the water stored in the well is enough to meet the dry season demand. Moopen's campaign to propagate the device has evoked massive response from the villagers, who are now queueing up to install the device in their homes, the report said, adding that 4-5 well recharging filters were being installed on a daily basis now. Kerala's acute drinking water crisis is surprising to many because the state, with 50,000 million cubic metres of fresh water in 44 rivulets, 19 lakes, more than 900 ponds, and 300cm rainfall for 120 days in a year in normal conditions, is considered as the wettest state in the country.

QATAR HAS HIGHEST DENSITY OF MILLIONAIRES

Qatar has the highest density of millionaires in the world, with 14.3 per cent of the oil-rich Gulf nation's population holding private wealth of at least USD 1 million, according to a report. The figure shows 143 out of every 1,000 households in Qatar holding private wealth of at least USD 1 million, much higher than the global average. Kuwait ranks third with 11.5 per cent, while Bahrain (4.9 per cent) and the UAE (4.0 per cent) rank seventh and ninth, respectively, the Boston Consulting Group's (BCG) 13th annual global wealth management report says. Wealth in the Middle East and Africa (MEA) saw near double-digit growth at 9.1 per cent in 2012, the study says. The report asserts that private wealth in MEA will grow to an estimated USD 6.5 trillion by the end of 2017, with a projected CAGR (Compounded Annual Growth rate) of 6.2 per cent. This increase will largely be driven by new wealth creation linked to strong GDP expansion in oil-rich countries. "The growth of private wealth in the region has been largely driven by a buoyant GCC equity market and an improvement in the global equity markets overall. Additionally, the recovery of the local real estate markets has helped to free up additional liquidity for financial investments. Wealth held in equities saw strong growth in 2012, although individual markets in the GCC region posted sharply different results," said Markus Massi, Partner and Managing Director at BCG Middle East. The Middle East also ranks highly by ultra-high-net-worth (UHNW) households, defined as households with more than USD 100 million in private wealth. Qatar ranks fourth in the world, with 8 out of 100,000 households falling into this category. Kuwait ranks seventh and UAE comes in fifteenth with 7 and 3 households per 100,000 in this segment, respectively. The Dubai Financial Market (DFM) Index enjoyed growth of 19.9 per cent and the Abu Dhabi Exchange (ADX) improved by 9.5 per cent, while other GCC (Gulf Cooperation Council) exchanges have seen moderate growth (6 per cent for Tadawul) or as low as 2 per cent in the case of the Kuwait Stock Exchange (KSE). On a regional level, the report shows that private financial wealth in the Middle East and Africa grew to USD 4.8 trillion in 2012, an increase of 9.1 per cent from USD 4.4 trillion in 2011. Wealth held in equities in the MEA region grew by 18.3 per cent in 2012, as compared to increases of 9.2 per cent in bonds and 5.2 per cent in cash and deposits. Globally, private financial wealth grew by 7.8 per cent in 2012 to a total of USD 135.5 trillion. The rise was stronger than in 2011 and 2010, when global wealth grew by 3.6 per cent and 7.3 per cent respectively. BCG is a global management consulting firm and a leading advisor on business strategy.

ASSOTECH PLAN SERVICE APPTS IN SHIRDI

Assotech Realty today said it will invest about Rs 100 crore to develop a service apartment project at Shirdi in Maharashtra. The company would develop 125 serviced apartments in the 2.5-acre project 'Sandal Suites'. In a statement, Assotech Realty said it has launched premier service residences at Shirdi "at an approximate cost of Rs 100 crore." These apartment would cater to the needs of pilgrims travelling to Shirdi and expecting comfort and luxury at affordable cost. Just walking distance from Shirdi Shrine, the project will have a small Sai Temple and Satsang Hall along with Pooja area and meditation centres, it added. "This is an opportunity to not only own a home in the spiritual town but also make it earn valuable income from the asset so created. The investment is meant to bring recurring returns to the tune of 18–20 per cent Y-o-Y basis with expected daily rental between 5-6 thousand approximately," Assotech Realty Managing Director Neeraj Gulati said. The NCR-based company plans to launch service residences in three segments -- business, leisure and pilgrimage. A serviced apartment is a type of furnished apartment available for short-term or long-term stays, which provides amenities for daily use. Under business segment, so far the targeted cities are Bangalore, Mumbai, Hyderabad, Gurgaon, Noida (under construction), Lucknow and Indore. The religious segment includes Tirupati Balaji, Shirdi (Maharashtra) and Katra (Jammu). Goa and Kochi falls under the leisure segment.

ECONOMIC GROWTH SLUGGISH

Economic growth in emerging market economies remained sluggish in May, but India expanded at a better rate than the three BRIC peers China, Russia and Brazil, an HSBC survey said today. During May, the HSBC composite index for India, which maps both manufacturing and services sectors, stood at 52, whereas for China it was 50.9, Brazil (51.2) and Russia (51).
An index measure of above 50 indicates expansion.
"India has been the bright spot among the largest EM countries, while a combination of external headwinds and domestic issues has led to weakening growth in Brazil, China and Russia," Andre Loes HSBC Chief Economist, LATAM said. Meanwhile, the HSBC Emerging Markets Index (EMI), a monthly indicator derived from the PMI surveys, was unchanged from April at 51.4 in May, indicating a muted rise in global emerging market output.
Growth slowed in China, Brazil and Russia, but accelerated slightly in India on the back of a stronger service sector performance. However,manufacturing production declined in India, as well as in Taiwan and Vietnam. Chinese production rose only marginally. New business growth in emerging markets slowed in May, and was the second-weakest in four years. Manufacturing new orders were virtually unchanged since April, weighed down by a second successive drop in new export orders. Employment rose marginally in May, having been broadly flat in April. This was despite goods producers registering a fractional cut in staffing, HSBC added. Meanwhile, the HSBC Emerging Markets Future Output Index that tracks firms' expectations for activity in 12 months time rose for the first time in three months in May. Improved sentiment was driven by the service sector, as manufacturing output expectations were the weakest in five months, HSBC said.

FUND RISING THROUGH PRIMARY MARKET DIPS

Fund-raising by Indian companies through the primary market route plunged by 90 per cent to Rs 134 crore in April, over the previous month, owing to volatility in equities. As per latest data available with the market regulator Securities and Exchange Board of India (Sebi), firms have garnered a total of Rs 134 crore in April, lower than Rs 1,368 crore raked in the preceding month. In April, the funds were raised through debt market. However, companies had not tapped the equity market route. During March, a total of Rs 1,072 crore was garnered through equities, while Rs 296 crore were mopped-up via debt segment. Market experts said fund-raising through primary market has slowed down in April due to volatility in equities. "Fund raising through primary market has tumbled in the month of April because of volatility in the market conditions. Another reason for decline could be the huge number of share-sale offered by companies to comply with Sebi's minimum public shareholding guidelines," an analyst said. Meanwhile, the BSE's benchmark Sensex surged 668 points or 3.5 per cent during April. "During April 2013, Rs 134 crore were mobilised in the primary market by way of one issue as compared to Rs 1,368.4 crore mobilised through 14 issues in March 2013, showing a decrease of 90.2 percent over the previous month," Sebi said. In the full financial year 2012-13, companies had mopped up Rs 32,455 crore via primary market -- the lowest since 2008-09 when they had garnered Rs 16,220 crore.

UNUSUAL TRADING PRACTICES ATTRACT PENALTY

Stock exchanges today warned brokers and traders of strong penal action if they fail to contain unusual or abnormal trading activities, even after issuance of "caution letters" to them. The bourses had started the process of issuing caution letters last year, wherein the brokers and traders were alerted about abnormal or unusual trading activities in the account of their clients. The latest warning comes in the wake of recurrence of such activities even by those brokers who have been issued such caution letters. "The trading members are once again advised to take adequate measures to ensure that similar (abnormal and unusual) trading activity is not continued by/through them post issuance of observation/caution letters by exchange," BSE and National Stock Exchange said in separate circulars. "Continuance of unusual/abnormal activity by the member/clients may attract appropriate disciplinary/regulatory action against the trading member/ client in co-ordination with Sebi,"they added. The decision is aimed at identifying and alerting the market participants, including brokers and their clients, at an early stage about the unusual or abnormal activities. The bourses have also asked the brokers to inform their clients about the latest move.

IMPORT CURBS FUEL GREY MARKET

World Gold Council today said that curbing gold import may have short-term benefit in containing demand, but cautioned that consumers appetite for yellow metal will ultimately be fulfilled by the unauthorised grey market. It suggested that the government should treat gold as strategic assets, while advocating monetisation of country's huge gold stock to support economic growth. "We understand that part of the rationale for seeking to curb gold imports is to reduce the current account deficit and we recognise that a large current account deficit is unsustainable and needs to be checked," WGC India Managing Director Somasundaram PR said in a statement. However, he said that there are number of factors which influence the current account deficit and gold is one factor. Noting that people buy gold as a long term investment to protect their wealth, he said: "Addressing this demand by curbing supply may have a short term benefit but this demand will be met by the unauthorised grey market and this will not be positive for either the economy or for society". Somasundaram was reacting to the government's measures to curb gold imports, which have risen significantly in last two months. The Reserve Bank today extended the restrictions on gold import to other agencies in addition to banks, a moved aimed at curtailing demand for the precious metal for domestic use amid widening current account deficit. The import of the yellow metal during the first two months of the current fiscal are estimated at USD 15 billion. Gold imports by India, the world's largest consumer, stood at 860 tonnes in 2012. "While recognising the immediate imperative, incremental, short term measures that do not address the underlying issues will result in negative unintended consequences," Somasundaram said. India is a significant stakeholder in the gold market with over 20,000 tonnes in the hands of millions of people, WGC India chief said. "Policy direction should view gold as a strategic asset for India and its citizens and we support the objective to monetise the nation’s gold stock to support economic growth," Somasundaram said.

BIZ CLIMATE IMPROVES IN MAY

Business climate in the country improved last month buoyed by rising output of intermediate goods as well as tourist earnings 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 166.3 points in May, 5.8 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. The year-on-year growth rate noted in the previous month was at 5.1 per cent.
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 Indian economy would grow at 5.3 per cent in the first quarter of financial year 2013-14. "The growth has been aided by improved production of intermediate commodities like pig iron and aluminium, rising tourist earnings, easing liquidity conditions and strengthening capital markets," the report said.
It further said that government has been instrumental in boosting infrastructure investments, generating a consistent improvement in the production of intermediate commodities such as pig iron and aluminium, along with prudent management of non-plan expenditures.
"Also, timely regulatory reforms are ensuring a steady increase in foreign direct investment in the country," it added. However, foreign exchange and international trade continue to be a concern despite a slowdown in gold and oil prices and a decline in domestic inflation. A surge in domestic gold demand is hindering effective management of the Current Account Deficit.
"The continued uptrend in the BCI is consistent with the just released GDP numbers. If fiscal policy stays restrained, and monetary easing continues at an accelerated pace, a genuine economic recovery is very much possible," BluFin Senior Advisor Surjit Bhalla said.
The index is based on components in four broad categories: capital market, foreign trade, policy and the real economy.

MANUFACTURING ACTIVITIES DIP

) Manufacturing sector output fell in the month of May, its first decline since March 2009, as order flow weakened and power outages affected the sector, a survey said today. As per HSBC Purchasing Managers' Index, the economic activities in manufacturing sector continued to remain sluggish last month with output falling for the first time in about four years.
The index, an indicator measuring changes in output, new orders, employment, supplier delivery times and stocks of purchases, fell from 51.0 in April to 50.1 and hit a 50-month low.
"Economic activity in the manufacturing sector slowed further in May as output contracted in response to softer domestic orders. In addition, power outages hampered output and led to a jump in backlogs of work as businesses struggled to meet orders," said Leif Eskesen, Chief Economist for India & ASEAN at HSBC.
The rise in input costs was, nonetheless, slight and the slowest in the current 50-month inflationary period. However, growth in export business was solid and the fastest since January.
Order book volumes rose for the 50th consecutive month, the survey said. The rate of expansion was, however, marginal and the slowest in that sequence.
Meanwhile, unfinished business levels increased, amid evidence of power and water shortages. Backlogs of work rose "solidly" and at the quickest pace in five months, it said.
India's Economic growth rate slipped to a decade low of 5 per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors. "Inflation gauges also eased, and output prices even fell in sequential terms on the back of tougher competition and receding raw material prices. These numbers have heightened the probability that the RBI will fire another salvo at its June policy meeting," Eskesen added.
A divergence was seen with regard to input and output prices. Whereas purchase prices rose, output charges were lower for the first time in four years. Companies operating in the Indian goods-producing sector signalled higher staffing levels during May, taking the current sequence of job creation to 15 months. The overall rate of increase remained slight. Hiring was mainly linked to increased levels of orders placed, but firms also commented on labour shortages.
Buying activity in the Indian manufacturing sector rose during May. The rate of expansion, however, was moderate and the slowest recorded since September 2011.
Suppliers’ delivery times in the domestic manufacturing sector lengthened during May, amid reports of power cuts and strikes.

SBI, ICICI, HDFC DEBT RATING UNDER WATCH

Global credit rating agency Moody's today said it has placed some debt ratings of 11 banks, including SBI, ICICI, HDFC Bank and Axis Bank, under review because of the updating of its methodology. The subordinated and junior subordinated debt ratings of these banks have been placed under review in the wake of the methodology update, said Moody's Investors Services. Other banks are Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas Bank, Syndicate Bank and Union Bank of India. "The review takes place in the context of a methodology update that has changed the way Moody's looks at the probability of support, which has led to several subdebt ratings in multiple banking systems being reviewed simultaneously," the rating agency said. The agency also noted debts of those banks were placed under review that had benefited from an uplift linked to Moody's prior assessment of systemic support in the country. However, the agency noted that the reviews of these banks' sub-debt ratings were not indication of any change in the affected banks' fundamental credit quality. "The reviews of the banks' subdebt ratings are not in any way related to any deterioration in the affected banks' fundamental credit quality," it said, but added that it needs to assess whether the government's likely behaviour in times of stress has changed compared to previous assumptions. Moody's also noted that its preliminary conclusion points to reasonable doubt over whether the status quo would survive test cases where governments provide significant financial support to banks, particularly in a systemic crisis that puts stress on the government's own balance sheet. Moody's expects to conclude its review within the next three months. The market did not react badly to the report and the Bankex was down just 50 bps against the broader market which was down nearly double the Bankex.

MF INVESTMENTS IN SOFTWARE DOWN

The mutual fund investments in software stocks fell to Rs 16,557 crore in April, the lowest in four months, as heavyweight Infosys disappointed with its financial results and concerns related to the US immigration bill weighed down on the sector. The April figure also marks the first monthly decline in mutual funds allocation to the software stocks since the beginning of calendar year 2013. According to latest data available with the market regulator Sebi, mutual funds deployed 8.95 per cent of their total equity assets under management (AUM) of Rs 1.85 lakh crore in software sector in April. This was the lowest since December 2012, when equity funds had invested Rs 16,467 crore (7.98 per cent of total funds) in software sector. In March, MFs held software stocks worth Rs 19,196 crore, which was 10.73 per cent of their total AUM. This was the highest level in 44 months. Among other major sectors, pharmaceuticals' exposure was Rs 14,352 crore or 7.76 per cent of AUM, consumer non-durables Rs 13,183 crore (7.13 per cent), finance Rs 10,313 crore (5.57 per cent) and petroleum products Rs 9,637 crore (5.21 per cent). Commenting on the declined in MFs investment in the software sector, ICICI Prudential AMC Fund Manager Mrinal Singh said," IT heavyweight Infosys with 42.25 per cent weightage on BSE IT index let down market expectations in its Q4FY13 result announced in April, resulting in a sharp drop in its share price (fell by about 20 per cent." "Also lack in clarity of proposed immigration bill in US has kept investors at bay," Singh added. Infosys reported a consolidated net profit of Rs 2,394 crore for the January-March quarter of 2012-13 fiscal and posted 18.09 per cent rise in revenues at Rs 10,454 crore. The IT major pegged a revenue guidance of 6-10 per cent, which is lower than that of IT body Nasscom, which expects industry to grow by 12-14 percent in the current fiscal. On the other hand, MFs rose their holding in banks to 20.84 per cent in April from 20.11 per cent in the previous month. Besides, the mutual funds industry allocation to the banking stocks increased from Rs 35,967 crore in March to Rs 38,572 crore in April. However, this was still way below the level seen in January, when mutual fund houses had invested Rs 42,760 crore (21.40 of the total funds) in the software sector.

DIVIDEND BONANZA

Stock markets may have turned topsy-turvy, but shareholders of the 30 Sensex stocks are in for over Rs 36,000-crore bonanza in terms of dividend payouts by these companies. While promoters of these top blue-chip companies will get around Rs 15,500 crore as their share in this dividend bonanza, the non-promoters, including retail investors and institutions, would also get over Rs 20,000 crore. These dividends have been approved by the boards of the respective companies for the fiscal year 2012-13 and would be paid to the shareholders in the coming weeks. They include special or interim dividend payments in some cases. Companies like ITC, ICICI Bank, HDFC and L&T have no promoter entities and therefore the dividend payouts by these companies would entirely go to non-promoter shareholders. Leading the dividend charts, ITC is expected to pay more than Rs 4,000 crore, followed by RIL (over Rs 3,000 crore), SBI (nearly Rs 2,900 crore), Coal India (Rs 2,700 crore), TCS (Rs 2,500 crore) and ICICI Bank ( Rs 2,300 crore). Among others, mortgage major HDFC is expected to dole out nearly Rs 1,900 crore as dividend, power utility NTPC about Rs 1,650 crore, IT giant Infosys Rs 1,550 crore, private lender HDFC Bank Rs 1,300 crore, two-wheeler major Bajaj Auto Rs 1,300 crore and FMCG behemoth HUL close to Rs 1,300 crore. Sensex constituents like L&T, Wipro and Hero MotoCorp are also expected to pay total dividend of over Rs 1,000 crore each, while other bluechips like Sun Pharma, Gail Tata Steel and Tata Motors could pay over Rs 500 crore in dividends.

NEW INDICES IN FORIEGN LAND

Premier stock exchange BSE and S&P Dow Jones, which are in joint venture S&P BSE Sensex, plan to launch more indices in the country and abroad. BSE has joined hands with S&P Dow Jones Indices for the joint venture 'S&P BSE Sensex'. Under the collaboration, the S&P brand would be used for Sensex and other indices such as BSE 200 and BSE 100. In response to a query on whether the JV would come out with new stock indices in India and abroad, BSE Managing Director and CEO Ashishkumar Chauhan replied in the affirmative. "Yes of course. Not only new indices but how do we market the current indices well in India and abroad," he said recently. S&P Dow Jones Indices LLC, a subsidiary of The McGraw-Hill Companies is the world's largest, global resource for index-based concepts, data and research. Recently, the joint venture had launched the S&P BSE 500 Shariah index, comprising the largest 500 companies in the Indian index. This new index has been designed to represent all Shariah-compliant stocks of the broad-based S&P BSE 500 index. Shariah, an Islamic canonical law, has certain structures regarding finance and commercial activities permitted for Muslims. According to Chauhan, the joint venture would look for trading the indices in various South Asian markets. "For marketing effectively, it would be places where there is a need for investment in India from those countries such as the US, Europe and Gulf countries," he said. From February onwards, S&P has started running all the BSE indices. "They are also trying to additional back office work from S&P worldwide for this joint venture company. South Asian indices will also be coming into this joint venture," Chauhan said. Meanwhile, the partnership with BSE would allow S&P Dow Jones Indices to implement its South Asia growth strategy and also permit S&P Dow Jones Indices to have a fourth major operational hub by which to support clients globally after operations in Hong Kong, London and New York.