Markets end tad higher led by IT

Markets ended marginally higher, amid a volatile trading session on Monday, led by IT majors amid a weakening rupee. However, profit booking was seen at higher levels as higher-than-expected headline inflation in September continued to weigh on market sentiment.

The 30-share Sensex ended up 79 points at 20,608 and the 50-share Nifty gained 17 points to close at 6,113.

Headline inflation for September continued to be above 6% as onions continued to weigh, according to data released by Ministry of Commerce and Industry today. The Wholesale Price Index (WPI) based inflation stood at a seven-month high of 6.46% in September against 6% in August. This is well above various analysts' prediction of 6%.

The weakness in the rupee continued in afternoon trades amid dollar demand by importers.

At 3:55pm the rupee was trading at Rs 61.37 compared with previous close of Rs 61.08 per dollar. Currency dealers see the rupee trading in the range of Rs 61.00 to Rs 62.00 per dollar for the rest of the day. According to them the bias will be towards weakening due to dollar demand.

Asian benchmark share indices ended mixed on Monday. The Shanghai COmposite ended up 0.4%. Straits Times ended 0.5% lower. Stock markets in Hong Kong and Japan were closed today.

The BSE IT index was the top gainer among the sectoral indices up 2.3% followed by Bankex, Oil & Gas and Auto indices.

Gains in shares of software exporters such as Infosys, Wipro and TCS, up 1.5-4.3% each, contributed the most to the Sensex. TCS was up 4.3% ahead of its second quarter earnings later today. most of the analyst expects TCS to post best revenue growth amongst peers at 5.8% quarter-on-quarter in dollar terms.

Index Reliance Industries ended up 0.8% ahead of its Jul-Sep results later today. Analyts said that the company is expected to post net profit numbers in the Range Rs 5,400 - 5,500 crore. Last quarter, the company had posted a net profit of Rs 5,353 crore, up 18.9% on year-on-year basis.

Other Sensex gainers include, Tata Motors, HDFC Bank, Dr Reddy's Labs and Hero MotoCorp.

FMCG shares, ITC and Hindustan Unilever were the top Sensex losers along with HDFC and Hindalco.

Among other shares, Shares of mid-and-small sized banks such has Karnataka Bank, Lakshmi Vilas Bank, South Indian Bank, Dhanlaxmi Bank, Development Credit Bank and Karur Vysya Bank gained sharply today after the RBI governor said that foreign banks to enter India and also be allowed to takeover domestic banks.

MindTree gained 5.3% after FIIs increased stake to 45.18% in September quarter compared with 39.44% holding at the end of June quarter.

Shares of Wockhardt ended down 5% after UK’s medicines regulator withdrew its certification to its unit, which generated annual revenues of GBP 12 million (about Rs 117 crore).

TTK Prestige ended down 2.5% after reporting a flat net profit of Rs 30.30 crore for the second quarter of financial year 2013-14 compared with Rs 30.28 crore in the same period last year.

In the broader market, the BSE Mid-cap and Small-cap indices ended up 0.5-0.6% each.

Suzlon wins first Uruguay order

Suzlon will be responsible for full EPC delivery for the project, scheduled for completion in September 2014.

Suzlon Group, the world’s fifth largest wind energy company, announced a new contract win in Uruguay with a 65 MW project.
The project, located in the southern Department of Colonia in Uruguay, is developed by Rouar S.A., a unique joint venture between UTE – Uruguay’s state-owned utility, and Brazilian utility Eletrobras – the largest in Latin America.
The wind farm will be supplied with 31 units of the S95 – 2.1 MW wind turbine with a hub height of 90 meters, part of Suzlon’s S9X portfolio optimized for medium to low wind regimes.
Suzlon will be responsible for full EPC delivery for the project, scheduled for completion in September 2014.
Gonzalo Casaravilla, President – UTE, underlined the strategic importance of starting the partnership with Eletrobras in a generation plant, and welcomed the fact that it is in a wind energy project, a resource proven to be one of the most important natural
energy resources of the region, adding “We hope this first experience with Suzlon will be successful, and accomplish with our demanding project deadlines and quality standards”.
Speaking on the order, Tulsi Tanti, Chairman – Suzlon Group, said: “This is a major order for the company and a big step forward in our push into South America. We are very pleased to deliver our first project in Uruguay, and to partner with both UTE and
Eletrobras through Rouar S.A., and look forward to a long and constructive relationship.”“This order not only underscores our technology focus on medium-and-low wind regimes,but also our emerging markets strategy. We believe South America will drive major growth in wind energy, which provides sustainable solutions that balance the region’s growing need for power to drive development, against the need to protect a diverse and fragile environment.”

IndusInd Bank net up 32% at Rs 330 cr

Private sector lender IndusInd Bank has reported a 32 per cent growth in net profit at Rs 330.23 crore for the quarter ended September 30, 2013.

The net profit stood at Rs 250.25 crore during the July-September 2012 quarter.

The bank’s total income increased to Rs 2,435.30 crore during the second quarter of the current fiscal from Rs 2,048.42 crore in the same period a year ago, IndusIndia Bank today said in a BSE filing.

Net NPAs (non-performing assets) declined to 0.22 per cent in the second quarter from 0.29 per cent in the same period last year.

Shares of the bank were trading up 2.42 per cent at Rs 438.30 a piece on the BSE.

Sensex up 69 points; IT, TECk stocks major gainers

The Sensex and Nifty were trading marginally in the green in the afternoon session on Monday led by IT, TECk, bank and realty sector stocks amid weak global cues.

At 1.00 p.m., the 30-share BSE index Sensex was up 69.20 points (0.34 per cent) at 20,597.79 and the 50-share NSE index Nifty was up 13.5 points (0.22 per cent) at 6,109.70.

All major indices were in the green. Volatility index, India Vix was near flat at 23.5.

Among BSE sectoral indices, IT was up 1.84 per cent, followed by TECk 1.52 per cent, Bankex 0.55 per cent and Auto 0.29 per cent.

FMCG, Consumer Durables and Power indices lost investors' support and were down 0.43 per cent, 0.3 per cent and 0.13 per cent, respectively.

TCS, Wipro, SSLT, Dr Reddy's and Hero MotoCorp were the top five Sensex gainers, while the top five losers were BHEL, Hindalco, Tata Steel, GAIL and Cipla.

The Nifty and the Sensex opened flat due to profit-booking by speculators coupled with industrial output for August.

Domestic sentiment was also dampened as global markets were still uncertain as to when the US Congress would raise the country’s borrowing capacity.

The Nifty opened at 6,093, down three points, while the Sensex opened at 20,535, up six points.

Both European and Asian markets were down as US lawmakers were yet to reach an accord on raising the nation's debt ceiling and restoring the government operations.

Stoxx 50 was down 15.06 points or 0.51 per cent at 2,959.22, FTSE 100 fell 19.69 points or 0.3 per cent to 6,467.50 and DAX shed 46.08 points or 0.53 per cent to 8,678.75.

US Treasury Secretary Jacob J. Lew pointed out that brinkmanship could have potentially catastrophic impact of default, possibility of a significant loss in the value of the dollar and markedly elevated US interest rates and negative spillover effects to the global economy, and real risk of a financial crisis and recession that could echo the events of 2008 or worse.

In his testimony last week to the US Senate Finance Committee on debt limit, he said: “If interest rates rose, it would have a real impact on American households. The stock market, including investments in retirement accounts, could tumble, and it could become more expensive for Americans to buy a car, own a home, and open a small business. These additional costs of borrowing could not easily be undone and our actions would impact Americans for generations to come. Failing to raise the debt ceiling will impact everyday Americans beyond its impact on financial markets. For example, doctors receiving reimbursements under Medicare would likely continue to provide services on a timely basis, but they would be operating with significant uncertainty about when they would be paid by the Government for their services. The bottom line is that failing to raise the debt ceiling creates a very difficult and unfair situation, and one that is completely avoidable if Congress acts.''

September WPI inflation at 6.46%

September WPI inflation stood at 6.46% v/s 6.1% in August

The annual rate of inflation, based on monthly WPI, stood at 6.46% (provisional) for the month of September, 2013 (over September, 2012) as compared to 6.10% (provisional) for the previous month and 8.07% during the corresponding month of the previous year. Build up inflation rate in the financial year so far was 5.64% compared to a build up rate of 4.84% in the corresponding period of the previous year.

Inflation for important commodities / commodity groups is indicated in Annex-1 and Annex-II.
The movement of the index for the various commodity groups is summarized below:-

PRIMARY ARTICLES (Weight 20.12%)

The index for this major group rose by 1.5 percent to 251.6 (provisional) from 247.8 (provisional) for the previous month. The groups and items which showed variations during the month are as follows:-

The index for `Food Articles`  group rose by 0.8 percent to 252.3 (provisional) from 250.3 (provisional) for the previous month due to higher price of egg (5%), moong (4%), wheat, gram, maize, barley and mutton (2% each) and condiments & spices, tea, milk, rice, fruits & vegetables, fish-inland, arhar, pork and beef & buffalo meat (1% each). However, the price of poultry chicken (9%), fish-marine (3%) and ragi (2%) declined.

The index for `Non-Food Articles` group rose by 2.0 percent to 213.7 (provisional) from 209.6  (provisional) for the previous month due to higher price of guar seed (29%), raw silk (14%), copra (coconut) (7%), cotton seed (6%), gingelly seed, soyabean, raw cotton and coir fibre (4% each), sunflower and niger seed (3% each), rape & mustard seed and linseed (2% each) and castor seed (1%).  However, the price of raw rubber (6%), logs & timber and safflower (kardi seed) (5% each), groundnut seed (4%) and flowers (1%) declined.

The index for `Minerals` group rose by 6.4 percent to 352.1 (provisional) from 330.9  (provisional) for the previous month due to higher price of copper ore (9%), crude petroleum (8%), dolomite (6%), iron ore (5%), steatite (2%) and limestone and zinc concentrate (1% each).  However, the price of barytes (9%), sillimanite (7%) and chromite and manganese ore (1% each) declined.

FUEL & POWER (Weight 14.91%)

The index for this major group rose by  2.6 percent to 207.5 (provisional) from 202.3 (provisional) for the previous month due to higher price of light diesel oil (11%), furnace oil (8%), aviation turbine fuel (7%), naphtha (7%),      petrol (6%), lubricants (3%), kerosene and bitumen (3% each), high speed diesel (2%) and lpg (1%).

MANUFACTURED PRODUCTS (Weight 64.97%)

The index for this major group rose by 0.7 percent to 151.0 (provisional) from 150.0 (provisional) for the previous month. The groups and items for which the index showed variations during the month are as follows:-

The index for `Food Products` group rose by 1.4 percent to 170.0 (provisional) from 167.7 (provisional) for the previous month due to higher price of tea leaf (blended) (20%), processed prawn (14%), copra oil, cotton seed oil and tea leaf (unblended) (4% each), palm oil (3%),  groundnut oil, sunflower oil, gingelly oil and tea dust (blended)  (2% each) and rice bran oil, soyabean oil,  mixed spices, ghee, khandsari, maida, wheat flour (atta),  oil cakes,     gram powder (besan), tea dust (unblended) and gola (cattle feed) (1% each).  However, the price of bakery products and sugar (1% each) declined.

The index for `Beverages, Tobacco & Tobacco Products ` group declined by 0.2 percent to 181.2 (provisional) from 181.6 (provisional) for the previous month due to lower price of zarda (6%) and dried tobacco (4%).  However, the price of soft drinks & carbonated water (1%) moved up.

The index for ` Textiles ` group rose by 0.7 percent to 138.3 (provisional) from 137.3 (provisional) for the previous month due to higher price of cotton yarn (2%) and woollen textiles, man made fabric, man made fibre and gunny and hessian cloth (1% each).

The index for `Wood & Wood Products` group rose by 0.7 percent to 178.4 (provisional) from 177.2 (provisional) for the previous month due to higher price of timber / wooden planks (2%) and processed wood (1%).

The index for `Paper & Paper Products` group rose by 0.4 percent to 140.8 (provisional) from 140.3 (provisional) for the previous month due to higher price of books/ periodicals/ journals (2%) and corrugated sheet boxes,  laminated paper, cream  laid woven paper, computer stationery and kraft  paper & bags (1% each). However, the price of      card board (5%) and maplitho paper (2%) declined.

The index for `Leather & Leather Products` group rose by 2.0 percent to 145.1 (provisional) from 142.3 (provisional) for the previous month due to higher price of leather footwear (4%).  However, the price of leather garments & jackets (2%) declined.

The index for `Rubber & Plastic Products` group rose by 1.0 percent to 145.8 (provisional) from 144.4 (provisional) for the previous month due to higher price of plastic products (2%) and tubes (1%).

The index for `Chemicals & Chemical Products` group rose by 0.7 percent to 148.7 (provisional) from 147.6 (provisional) for the previous month due to higher price of non-cyclic compound (5%), ammonium sulphate (4%), synthetic resin (3%), polymers and pesticides (2% each) and adhesive &  gum, safety  matches/ match box, hair / body oils, dye & dye intermediates, photographic goods, thermocol, basic inorganic chemicals and pigment & pigment intermediates (1% each).  However, the price of  vitamins (3%) and washing powder, distemper, washing soap and organic manure (1% each) declined.

The index for `Non-Metallic Mineral Products` group rose by 0.2 percent to 164.7 (provisional) from 164.3 (provisional) for the previous month due to higher price of marbles (5%).  However, the price of white cement (1%) declined.

The index for `Basic Metals, Alloys & Metal Products` group rose by 0.2 percent to 163.1 (provisional) from 162.7 (provisional) for the previous month due to higher price of ferro silicon (4%), silver, metal containers and gold & gold ornaments (3% each), sheets (2%) and steel: pipes & tubes,  aluminium and iron & steel wire (1% each).  However, the price of ferro chrome (2%) and steel rods, rounds, sponge iron and steel castings (1% each) declined.

The index for `Machinery & Machine Tools` group rose by 0.2 percent to 131.1 (provisional) from 130.8 (provisional) for the previous month due to higher price of battery dry cells (5%), t.v. accessories (5%), lamps,     compressors, electronic pcb /micro circuit and fibre optic cable (2% each) and capacitors, batteries, control equipments, computers, machine tools and air conditioner & refrigerators (1% each).  However, the price of  loader (3%), ball/roller bearing (2%) and plastic machinery, washing / laundry machines and electric motors  (1%) declined.

The index for `Transport, Equipment & Parts` group rose by 0.3 percent to 134.1 (provisional) from 133.7 (provisional) for the previous month due to higher price of motor cycle / scooter / moped and shafts (all kinds) (1 % each).

FINAL INDEX FOR THE MONTH OF JULY, 2013 (BASE YEAR: 2004-05=100)
 
For the month of July, 2013, the final Wholesale Price Index for ‘All Commodities’ (Base: 2004-05=100) stood at 175.5 as compared to 175.4 (provisional) and annual rate of inflation based on final index stood at 5.85 percent as compared to 5.79 percent respectively  as reported on 14.08.2013. 

Mid and small-sized private sector banks in demand

Karnataka Bank, Lakshmi Vilas Bank, South Indian Bank, Dhanlaxmi Bank, Development Credit Bank and Karur Vysya Bank are up 8-20% on BSE.

Shares of mid-and-small sized banks such has Karnataka Bank, Lakshmi Vilas Bank, South Indian Bank, Dhanlaxmi Bank, Development Credit Bank and Karur Vysya Bank have rallied up to 20% on back of heavy volumes on the bourses.

At 1045 hours, the Bombay Stock Exchange (BSE) benchmark index was up 0.18%, while banking index was gain less than 1%.

Most of these banks were underperformed the market by falling more than 30% in past three months in wake of Reserve Bank of India measures.

Lakshmi Vilkas Bank is locked in upper limit of 20% at Rs 77.85 on BSE. A combined 826,036 shares have changed hands on the counter and there are pending buy orders for 157,628 shares on the BSE and NSE.

Karnataka Bank has rallied 17% to Rs 109 on back of heavy volumes on BSE. A combined nearly 15 million shares already changed hands on the counter so far against an average less than 2 million shares that were traded daily in past two weeks on BSE and NSE.

Last week, the private sector bank had launched a special campaign for home and car loans, which is valid up to January 31, 2014.

Among the other individual stocks, Dhanlaxmi Bank has surged 11% to Rs 47, followed by South Indian Bank and Development Credit Bank ( up 9% each at Rs 21.65 and Rs 53.40 respectively) and Karur Vysya Bank and City Union Bank ( up 8% each at Rs 352 and Rs 49.25 respectively).

Coal to surpass oil as top global fuel by 2020: Woodmac

Global coal consumption is expected to rise by 25% by the end of the decade

Coal, propelled by rising use in China and India, will surpass oil as the key fuel for the global economy by 2020 despite government efforts to reduce carbon emissions, energy consultancy firm Wood Mackenzie said on Monday.

Global coal consumption is expected to rise by 25% by the end of the decade to 4,500 million tonne of oil equivalent, overtaking oil at 4,400 million tonne, according to Woodmac in a presentation at the World Energy Congress.

The two Asian powerhouses will need the comparatively cheaper fuel to power their economies, while demand in the United States, Europe and the rest of Asia will hold steady.

"China's demand for coal will almost single-handedly propel the growth of coal as the dominant global fuel," said William Durbin, president of global markets at Woodmac. "Unlike alternatives, it is plentiful and affordable."

China - already the top consumer - will drive two-thirds of the growth in global coal use this decade. Half of China's power generation capacity to be built between 2012 and 2020 will be coal-fired, said Woodmac.

China has no alternative to coal, with its domestic gas output limited and liquefied natural gas (LNG) imports more costly than coal, Durbin said.

"Renewables cannot provide base load power. This leaves coal as the primary energy source," he said.

Excess supply and faltering demand growth have depressed global coal prices. European coal futures have tumbled more than 20% this year, while Australian coal prices have plummeted from the record $130 per tonne hit in 2011 to around $80 per tonne as demand from China grew slower than expected.

"If you take China and India out of the equation, what is more surprising is that under current regulations, coal demand in the rest of the world will remain at current levels," Durbin said.

High fuel import costs and nuclear issues will support coal use throughout Northeast Asia, while in North America coal is still competitive in many locations despite abundant low-cost shale gas.

"The struggling economy and low coal prices has rendered the European Union (EU) Emissions Trading Scheme (ETS) ineffective," Durbin said. "The carbon price will need to reach 40 euros per tonne to encourage fuel switching, which is unlikely before 2020."

In Southeast Asia, coal will be the biggest winner in the region's energy mix. Coal will generate nearly half of Southeast Asia's electricity by 2035, up from less than a third now, the International Energy Agency said in early October.

This will contribute to a doubling of the region's energy-related carbon dioxide emissions to 2.3 gigatonnes by 2035, according to the IEA.

Wipro trades in green on BSE

Wipro is currently trading at Rs. 506.05, up by 17.75 points or 3.64% from its previous closing of Rs. 488.30 on the BSE.

The scrip opened at Rs. 488.50 and has touched a high and low of Rs. 507.70 and Rs. 488.50 respectively. So far 1, 72,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 507.70 on 03-Sep-2013 and a 52 week low of Rs. 315.30 on 31-May-2013.

Last one week high and low of the scrip stood at Rs. 499.00 and Rs. 475.25 respectively. The current market cap of the company is Rs. 1, 24,749 crore.

The promoters holding in the company stood at 73.54% while Institutions and Non-Institutions held 11.87% and 12.67% respectively.

Wipro, a leading global Information Technology, Consulting and Outsourcing company, has been included as a member of the global Dow Jones Sustainability Index (DJSI) for the fourth year in succession. Wipro is the only Indian company to be included in both the DJSI World and Emerging Markets Indices.

A total of 1831 companies were assessed from around the world of which 333 have been chosen as the DJSI constituents for the year 2013-14, the IT services sector saw 65 companies participating globally of which 7 have been selected for the World Index.

Wipro is a leading Information Technology, Consulting and Outsourcing company that delivers solutions to enable its clients do business better.

Suzlon Group wins first 65 MW project in Uruguay

Suzlon Group, the world’s fifth largest wind energy company, has bagged a new contract in Uruguay with a 65 MW project. The project, located in the southern Department of Colonia in Uruguay, is developed by Rouar S.A., a unique joint venture between UTE - Uruguay’s state-owned utility, and Brazilian utility Eletrobras - the largest in Latin America.

The wind farm will be supplied with 31 units of the S95 - 2.1 MW wind turbine with a hub height of 90 meters, part of Suzlon’s S9X portfolio optimized for medium to low wind regimes. Suzlon will be responsible for full EPC delivery for the project, scheduled for completion in September 2014.

Suzlon Group comprises of Suzlon Energy and its subsidiaries, including Repower Systems SE. Suzlon Energy is leader in wind energy in the India, which is world’s fifth largest wind energy market. Its business model has range of services that include development, manufacturing, marketing, EPC project delivery and operations and maintenance of wind turbine generators around the world.

Tech Mahindra surges on getting RBI’s approval to raise FIIs limit to 45%

Reserve Bank of India (RBI) has raised the limit for foreign institutional investors (FIIs) to buy equity shares and convertible debentures in Tech Mahindra up to 45% through primary market and stock exchanges. Earlier the limit was 35% of the paid up capital of the company under Portfolio Investment Scheme. FIIs, NRIs and persons of India origin (PIOs) are allowed to invest in the primary and secondary capital markets in India through the PIS.

As on June 30, 2013, the promoters holding in the company stood at 36.46% while institutions and non-institutions held 47.72% and 15.81% stake in the company, respectively.Tech Mahindra is a leading provider of solutions and services to the telecommunications industry with a majority stake owned by Mahindra & Mahindra. The company, since 2002 has operations in China with offices in Beijing, Shanghai, Nanjing and Guangzhou.

ICICI Bank inaugurates new branch at Indore

The branch will offer the entire gamut of ICICI Bank products including a comprehensive range of deposits, loans and NRI services.

ICICI Bank Ltd, India's largest private sector bank, today launched a new branch at ‘O‘ Friend’s Colony, Bengali Square on Kanadia Road in Indore.
The new branch was inaugurated by Dr Anil Bandi MD & CEO of Greater Kailash Hospital, Indore.
The branch will remain open for customer transactions from 9:00 am to 6:00 pm on Monday to Friday and 9.00 am to 2.00 pm on Saturday. The branch will offer the entire gamut of ICICI Bank products including a comprehensive range of deposits, loans and NRI services. It will also have Privilege banking as well as locker facilities to cater to different customer profiles and needs.

Speaking on the occasion, Dr Anil Bandi said, “I congratulate ICICI Bank on the inauguration of their new branch in Indore. It is very encouraging to see ICICI Bank increase its presence in the city. The people of Indore will benefit greatly from the Bank’s pioneering products and excellent customer service and I am confident of ICICI Bank scaling greater heights in the region.”

Crude continues its weak trade, as US lawmakers continue to wrangle on debt issue

Crude oil futures continue to trade lower for the second straight day on Monday in early Asian deals, as US lawmakers were yet to negotiate an accord to raise the government’s debt limit amid concerns of a potential default. Traders have ignored the report that China imported a record 25.61 million metric tons of crude last month, equivalent to an average 6.26 million barrels a day, 25 percent more than in August.

Benchmark crude oil futures for November delivery was down by 81 cents to $101.21 a barrel in electronic trading on the New York Mercantile Exchange. In London, Brent for November settlement fell 52 cents or 0.5 percent to $110.76 a barrel on the ICE.

Policy on oil and gas survey data sale likely by October-end

Proposal on 10-year rights for geological information, albeit to be shared with government, based on models elsewhere

Opening an entirely new business stream in the oil and gas exploration and production sector, the government plans to grant 10-year exclusivity rights for geological data mined through a speculative survey.

"A comprehensive speculative survey policy would come out by the end of this month," Petroleum Secretary Vivek Rae told Business Standard. The policy is aimed at attracting global companies for data acquisition. They would get 10-year exclusive rights for selling the data to Indian and foreign oil and gas companies. The government will also get access to the data once it is ready.

This policy, along with the national data repository (NDR), would be a precursor to a new system of a continuous bidding process for oil and gas blocks, called an Open Acreage Licensing Policy (OALP) regime. Here, companies would get the freedom to select any block on offer any time, compared to the existing New Exploration Licensing Policy (Nelp), where the government puts a particular area up for bidding.

Petroleum Minister M Veerappa Moily had, in August, given his nod to the formation of a National Data Depository on hydrocarbon assets. It would be controlled by the directorate general of hydrocarbons (DGH). Engineers India Ltd, on behalf of DGH, has already invited a tender for the NDR, on which the bid due date is this Tuesday. According to officials, four or five global companies are interested.

Under the speculative survey policy, India would follow a revenue sharing model. Currently during the roadshows for Nelp, data is sold by the government. Under the new model, an application fee would be charged, either as a fixed amount or depending on the area to be surveyed.

The new policy is based on seismic survey policies in Norway, the US and Britain. While the NDR cost is estimated to be at least Rs 50 crore, a seismic survey can be done by any interested company, on a fee, though it would have to provide this to the government, too.

DGH, the technical arm of the petroleum ministry, initiated a bidding process a few years earlier, inviting tenders from international players for a speculative survey. The process ran into legal trouble. The Central Bureau of Investigation had filed a case against V K Sibal, the then DGH, for allegedly favouring a US-based firm in carrying out a seismic exploration of oil and gas along Indian coasts.

Though companies such as Oil and Natural Gas Corporation, Oil India, Reliance Industries and Cairn India have their own data bank, measures such as a speculative survey and NDR would make it accesible for global firms, making it easier to find a viable asset.

The government is set to usher the OALP regime within two years. Till now, nine rounds of Nelp have taken place. The ministry is planning to hardsell the 10th round during PETROTECH 2014 in January, a flagship event of the Indian hydrocarbon industry, with 68 blocks identified for bidding.

NSE finishes probe into Prime's Gitanjali share trades

The National Stock Exchange has completed its investigation of Prime Broking's trades in the shares of Gitanjali Gems earlier this year.

The exchange has communicated its findings to the stock market regulator, according to a person familiar with the matter. Details of the probe could not be ascertained. "An order can be expected soon," said the person.

NSE had announced the probe on June 28. It also said it had halted payout or settlement of the deals being probed. It subsequently came out with a circular dated July 18, barring 26 entities in relation to the same case by deactivating their Unique Client Code, used to identify market participants. The Securities and Exchange Board of India was part to the decision.

Among those whose client code was suspended were Mehul Choksi, promoter of Gitanjali Gems. He'd maintained he had nothing to do with Prime. An exchange spokesperson declined to comment. An email sent to the regulator did not receive a reply.

Gems and jewellery giant Gitanjali had total revenue of Rs 10381 crore for the financial year ended March 2013. It had a net profit of Rs 265 crore, according to exchange data. Since then, its profits have dived. It was down 76 per cent in the June quarter over the same one last year, according to unaudited results. The net profit fell from Rs 149 crore to Rs 35 crore. A company spokesperson had pegged the fall on business problems in the wake of the recent curbs on gold imports and liquidity issues.

IMF, World Bank seek new legitimacy

There have been questions about their legitimacy as bulwarks of the global economy

The IMF and the World Bank held annual meetings this week in Washington under a cloud of financial constraints and questions about their legitimacy as bulwarks of the global economy.

The 188-nation sibling institutions will turn 70 next year in a global economy less and less dominated by the United States and Europe, as Brazil, China, India and other emerging-market economies muscle their way onto center stage.

With all eyes fixed this week on the US budget crisis, the grand reception of the world's finance leaders in the US capital spared the International Monetary Fund another uncomfortable debate on the damaging effects of the austerity it imposes, particularly in the eurozone.

But the IMF's imbalanced representation once again was glaringly clear: the emerging economies have complained for years that their relatively small voting rights in the institution insufficiently reflect their real power in the world economy.

China, the world's second-largest economy, has only slightly more weight than Italy at the IMF, which has been headed by a European since its creation in 1944.

A governance reform has been in the works for three years but its implementation has been blocked by the effective veto of the US.

IMF Managing Director Christine Lagarde could only display her impotence in deploring once again that a "major member" had not yet approved the 2010 reform.

But on Friday, she hammered home the point -- saying "we must be even more representative and mirror these shifts" -- while still having no way to twist the arm of the IMF's largest stakeholder.

"That is clearly a longstanding problem," said Jacob Kirkegaard of the Peterson Institute for International Economics in Washington.

The IMF "is out of date," he said. "It's basically a credibility problem and it's going to get worse over time."

The big emerging BRICS economies -- Brazil, Russia, India, China and South Africa -- brimming with impatience, have launched their counter-offensive: the creation of their own monetary fund.

The BRICS fund is expected to be finalized in 2014, Brazilian central bank chief Alexandre Tombini said Friday.

Sebi working on guidelines for social media use in capital mkt

Move is a part of efforts to curb manipulative practices in the market through the use of social media

Sebi is looking to frame guidelines to check the possible misuse of social media in capital markets so as to protect investor interest.

The move is a part of efforts to curb manipulative practices in the market through the use of social media.

That apart, with increasing popularity of platforms like Twitter and Facebook, capital market regulators worldwide are also looking to tap such tools to understand overall trends and also gather market intelligence.

A senior Sebi (Securities and Exchange Board of India) official said it would take some time before the regulator finalises guidelines related to social media use.

"It will take quite sometime to get our acts together... We are starting something in a very very preliminary level," the official said.

The International Organisation of Securities Commissions (IOSCO), the global grouping of capital market regulators that includes Sebi, recently resolved to focus on the social media, which could also serve as a tool for gathering market intelligence and identifying trends.

Issues related to behavioural economics and the social media in the context of securities market were discussed by the board members of IOSCO during their meeting held in June.

The influence of the social media on capital market is on the rise with more people becoming dependent on such platforms for getting news and information. Besides, increasing number of companies are taking to the social media to reach out to people.

In an instance of how the social media can influence the share market, recently a fake message on microblogging site Twitter had led to a sharp sell off in the American stock market. In April, a fake tweet saying that US President Barack Obama was injured in an explosion at the White House resulted in panic selling of US stocks that wiped off about $130 billion of market capitalisation.

IOSCO, whose members regulate over 95% of the world's securities markets, is focusing on the social media as a vehicle to influence investors' behaviour, gather market intelligence and identify trends.

BSE plans currency futures launch by November end

Launch of current futures platform will also mark the implementation of advanced technology for trading by the exchange

Leading bourse BSE plans to launch the currency futures platform, which will utilise new advanced trading technology, by end of November.

The country's oldest stock exchange has received approval from the Securities and Exchange Board of India (Sebi) to start trading in currency futures.

"We are likely to start currency futures by November end," a senior official from the bourse said.

The launch of current futures platform would also mark the implementation of advanced technology for trading by the exchange.

The new technology is acquired from Germany's Deutsche Borse. It has the potential to increase BSE's trading capacity by at least about five times from present 20,000 orders per second to more than 1,00,000 orders per second, the official said.

According to the official, the technology would be utilised first for currency futures and then gradually would get implemented for other segments.

BSE would be the fourth exchange in the country to launch currency futures. National Stock Exchange (NSE), MCX-SX and United Stock Exchange (USE) are already present in this segment.

At present, rival NSE has the largest share in currency futures market, followed by MCX-SX.

A lucrative segment, current futures market is estimated to be worth tens of thousands of crores of rupees.

Meanwhile, Reserve Bank of India would look at easing restrictions on the forex futures market once stability improves in the foreign exchange market.

RBI is also in talks with Securities and Exchange Board of India (Sebi) on making the dollar-rupee OTC and futures market trades possibly on a delivery basis.

Amid global uncertainties, rupee had touched record low of 68.85 against the American dollar on August 28.