State loan sale cutoffs likely in 9.7-9.8% band: Poll

Cut-off yields for state loan sale of Rs 85.30 billion ($1.37 billion) later in the day are expected to fall within a 9.70-9.80 per cent band, according to a Reuters poll of 10 market participants. 

The lowest cutoff was 9.60 per cent, while the highest was 9.85 per cent, as per the poll. 

A proposed rule change by RBI has raised concerns on how state loans will be valued, which seeks to change pricing from a fixed 25 bps spread over government securities to one based on the spread from the previous two state loan auctions. 

"These bonds also provide comfort against depreciation in government bonds. So no one is interested in buying if the new valuation rule becomes effective," said a senior bond dealer with a state-run bank. 

State-run banks are the main buyers of these bonds. The last state loan auction saw cutoffs in the 9.48-9.72 band with Andhra Pradesh state seeing less than full acceptance. 

Yields on government bonds up 16 bps since Feb. 11, the last state loan sale. 

TCS ranks as No1 manufacturing industry IT service provider in Europe

Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organization, has been ranked the best for overall capabilities in EMEA for its manufacturing-specific outsourcing services. The study, conducted by leading analyst firm IDC, praised TCS for its ability to provide holistic support for large and diverse IT initiatives. The report recognized the company’s proven track record for designing and implementing systems for some of the region’s leading companies.

TCS partners with manufacturers from a range of industries to help transform their existing business models and implement technology solutions. These solutions improve operations by reducing operational expenditure, utilizing existing capacity optimally, improving operating efficiencies across the value chain and improving the time-to-market for new product releases. Each solution is tailored to the partner company, ensuring each business can meet its objectives within the usual safety and regulatory parameters.

Tata Consultancy Services is an IT services, consulting and business solutions organisation that delivers real results to global business, ensuring a level of certainty no other firm can match. TCS offers a consulting-led, integrated portfolio of IT, BPO, infrastructure, engineering and assurance services.

Business Confidence Index rose by about 22 percent in January 2014: NCAER

In its latest survey National Council of Applied Economic Research (NCAER) has reported that the Business Confidence Index (BCI) rose by about 21.8 percent in January 2014 to 122.3 points from 100.4 in July-September quarter survey. NCAER said that higher exports, enhanced farm produce and moderation in inflation improved business confidence during the October-December period. The survey noted that there was a continued slide in business sentiment through 2012-13 on concerns of slower growth coupled with high inflation. The survey revealed that manufacturing sector firms were more optimistic than services sector during the quarter, while the highest growth was recorded in intermediate goods sector followed by consumer goods non-durables. The survey further stated that both input cost and ex-factory prices are likely to increase in the next six months and within input cost, only cost of electricity per unit of output is likely to moderate. It also said employment of all types of labour is also likely to improve in the short run along with wage rates.    The survey conducted during Assembly elections in five states has also taken into account influence of the election process on business sentiments besides business and financial data and said that Political Confidence Index (PCI) -- a measure of related business sector perceptions -- increased for the successive quarter, showing an improvement of 9.8 percent to 112.9 points.