TRADE 2.INFO

Mumbai, July 3 (PTI) Expectations ran high on the bourses in early trade today as the key indices went up on investors buying power and capital goods stocks.

The Bombay Stock Exchange benchmark Sensex, which had lost 158 points in opening trade, rebounded to quote higher by 55.13 points at 14,713.62 at 1100 hrs.

Similarly, the 50-share National Stock Exchange index Nifty rose by 15.55 points at 4,364.40 at the same time. The Nifty had lost nearly 50 points in the opening session.

Marketmen said investors and funds are expecting some favourable budetary proposals such as cuts in freight rates and fares.

New Delhi, July 2 (PTI) Amid expectations of improvement in railway amenities and food served in trains, Railway Minister Mamata Banerjee would present a “pro-people” budget in Parliament tomorrow.

“It will be a pro-people budget, a simple budget, people’s budget,” Banerjee said.

According to sources close to her, the budget in a way would reflect Mamata’s vision for the Railways in the coming years and means of generating resources for key projects.

High on her agenda would be completion of Kashmir rail link project and putting the dedicated freight corridor project on fast track.

As she has gone on record saying that Railways should always have a humane side to it, she is expected to carry out some revision in passenger fares and waive off superfast charges that has come in for flak.

She might also announce changes in the Tatkal scheme to make it more passenger friendly.

Source : PTI

NEW DELHI: Fifteen years after it first hatched plans to convert to a bank, IFCI is now looking at forming a holding company which will apply for
a banking licence by April, a senior official of the company said.

The country’s oldest development finance institution will soon start looking for a partner for its banking business as it wants to remain a non-deposit-taking finance company, the official said on condition of anonymity.

However, IFCI managing director & CEO Atul Kumar Rai said it is too early to comment on the development. “Applying for a banking licence through a holding company rather than converting IFCI into a bank is an issue before us. We will conduct internal consultations on this. But I am not commenting on this till clarity emerges on the regulatory front,” said Mr Rai.

The institution has expanded its loan portfolio by Rs 3,000 crore in 10 years ended March 31, 2009. IFCI is also planning to expand its asset base by around 20% from the present level of Rs 15,000 crore.

Almost no net non-performing assets, a capital adequacy ratio of over 20% and profits for three straight years have encouraged the 60-year-old institution to look at raising money towards the end of the year. “Now that we have good credit ratings, we should be looking at raising resources. A big-bang resource-raising exercise should happen later this year,” Mr Rai added.

Source : ET

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Merchandise exports contracted for the eighth consecutive month as continued economic recession in developed economies affected overseas demand for Indian goods. While exports are expected to pick up in the later part of the quarter ending by September this year, imports could swing into the positive territory, if the domestic demand revives and crude oil prices increase.

Data released by the commerce ministry today revealed that merchandise exports dipped 29.2 per cent in May 2009 and stood at $11 billion, as against $15.5 billion in the year-ago period.

Imports also dipped for the sixth month in the running, pointing towards weak appetite for goods in the domestic economy. It contracted by 39.2 per cent to $ 16.21 billion in May.

The trade deficit — difference between exports and imports value — shrunk by 53.3 per cent in the month under consideration and stood at $5.2 billion. With oil imports contracting due to weak international prices, the trade deficit has been dipping in the last five months. Weakening trade deficit and stronger foreign direct investment (FDI) inflows led to the India’s current account become surplus for the first time in two years in the three months ended March 2008.

According to sources, the finance ministry has recognised that the three stimulus packages have not led to desired results in the exports and the manufacturing sector. the commerce ministry had recommended slashing of fringe benefit tax for exporters as well as enhancing the level of interest subsidy for export-related loans, among others, in its Budget wish list. Finance Minister Pranab Mukherjee is scheduled to present the Union Budget for 2009-10 on July 6.

The latest data are broadly in line with expectations of experts. “The need of the hour is to improve the current account position by boosting exports. On the other hand, the policy makers should build the robust foreign investment pipeline which would strengthen the capital account balance,” said Soumendra K Dash, chief economist, CARE Ratings.

The fall in imports has been attributed to the decline in the crude oil Bill of the country. In the month under consideration, India’s oil imports stood at $4.13 billion, a dip of 60 per cent over $10.5 billion in May 2008.

Non-oil imports which comprise capital goods as well as raw material used by India Inc. also contracted by almost a fourth and stood at $12 billion, as against $16.18 billion in the year-ago month. This shows the weak domestic demand in the Indian economy, in the backdrop of the global economic recession.

Source : business Standard

Reuters
New Delhi: Nandan Nilekani, co-chairman of Infosys Technologies Ltd, India’s No 2 outsourcer, has resigned from the company’s board to join the government, the company said on Thursday.

Nilekani, one of the founders of Infosys, has been invited by Prime Minister Manmohan Singh to head government agency Unique Identification Authority of India in the rank of a cabinet minister, Infosys said in a statement.

Nilekani, a former chief executive of the company, was not involved in active management since becoming co-chairman in 2007.

Shares in Infosys, which has a market value of about $21 billion, were up 0.7 percent at 1,771.25 rupees at 0849 GMT in a Mumbai market down 0.5 per cent.