ndia is key to connect billions across the world to the Internet: Mark Zuckerberg

Reliance Communications announced a ground-breaking partnership with Facebook to offer free data access to useful websites to Reliance customers through Internet.org.

India is the key to connect billions across the world to the Internet, Facebook Chief Executive Officer Mark Zuckerberg reportedly said.

 "One day, we will connect everyone, and the power of the Internet will serve every community across India and the world. That day is coming," Zuckerberg wrote in a Facebook post.

 Reliance Communications announced a ground-breaking partnership with Facebook to offer free data access to useful websites to Reliance customers through Internet.org.

 Internet.org provides access to popular websites and services with zero data charges in order to make it easier for people to access the Internet, across both the 2G & 3G platforms.

SpiceJet announces 'flash sale', tickets starting from Rs. 599

The booking period is 11 February to 13 February while travel period is from 1 July to 24 October, 2015. 

Budget carrier SpiceJet is currently offering flash sale, giving deep discount to people who are planning to travel during the second half of this year.

In its fourth sale in less than a month, tickets for SpiceJet's domestic flight starts at Rs. 599 all-inclusive, while at Rs. 3,499 for international destinations.

The booking period is 11 February to 13 February while travel period is from 1 July to 24 October, 2015.

“The sale is valid only for travel on direct and onward connections in our network. Select international sectors feature in this sale with starting fare in Indian National Rupee currency. Limited seats available on first-come-first-served basis,” the airline said on its website.

Every major airlines are luring customers with their big discounts on ticket prices. GoAir has started Valentine's Day discount scheme for select destinations. This scheme offers one-way fares as low as Rs 1,499 and is valid for travel till April 15.

Similarly, IndiGo on Thursday had announced all-inclusive fares starting Rs 1,499, Jet Airways announced a low-fare offer with tickets starting from Rs 1,599.

Mirach calls off Sahara loan deal, returns fees

New York: Engaged in a war of words with Sahara over a failed syndicate loan deal, US-based Mirach today said it has returned the entire due diligence fees of USD 2.625 million to the Indian group but is willing to make a USD 2.05 billion offer for full buyout of their three iconic hotels.

Mirach Capital, run by Indian origin businessman Saransh Sharma, who had emerged as a white-knight in Sahara's efforts to secure release of its jailed chief Subrata Roy till its USD 2.05 billion financing deal got embroiled in an alleged "forged letter" controversy, maintained that the Indian group remains an "unwilling seller".

In a statement, Mirach said it has remitted USD 2.625 million to the Sebi-Sahara Fund, while ending the proposed loan to Sahara Group, which involved transfer of loans taken by Saharas from Bank of China for its three overseas hotels - The Plaza and Dream Downtown in New York and the Grosvenor House in London - to a new syndicate of investors.

"Under a December 10, 2014 agreement with Sahara, Mirach Capital Group was entitled to fees related to legal, accounting and transaction related costs to be paid by Sahara," it said, adding that it has returned the money to "wipe the slate clean" in the wake of "unfounded allegations" levelled against it.

"Though incurring expenses to date of USD 1,075,000 in related closing costs, Mirach has remitted the full amount back to Sahara, in an effort to show the Supreme Court of India the group stands willing to incur costs while waiting for a fair ruling on February 20," Mirach added.

The US-based group further said that its CEO Saransh Sharma has also written to Sebi, the Amicus Curiae in the case and Sahara representatives about the remittance.
Sharma also told them "that a notable bank would be contacting all applicable parties within the week confirming that blocked and earmarked funds are available for the purposes of completing the previously contemplated loan transaction, which will now be applicable towards a sale of Sahara's assets.

"Mirach stands ready, willing and able to close this transaction in an expedited manner should the Apex court and Sebi wish to see a swift resolution in favour of the creditors who have waited several years for some form of solace," Mirach quoted Sharma as having written in the letter.

Mirach further said that the group and its "syndicate of investors" continue to stand ready, willing and able to execute a purchase of Sahara's assets, while it asked the Supreme Court to intervene in the matter.

The Court had given time till February 20 for the Sahara-Mirach deal, but the deal fell apart after Bank of America came out with a disclosure that it was not involved in the deal as was being claimed. Sahara later said that its own due diligence found a letter to be "forged", which was purportedly from Bank of America and claimed to provide guarantees worth USD 1.05 billion for the Mirach-Sahara deal.

Mirach denied the forgery allegations, while both the groups have warned each other of legal action.
In today's statement, Mirach said it has "made an offer on all of the assets previously involved in the loan package, which could provide Roy and his creditors relief in the form of USD 2.05 billion."

Roy and his two colleagues are in jail for almost one year in a case related to repayment of investors' money, totalling Rs 20,000 crore.

Lower oil prices to spur economic growth in India: Moody's

Chennai: Global credit rating agency Moody`s Investors Service Wednesday said the lower oil prices is expected to alleviate India`s high inflation and spur economic growth.

Its research report "Global Macro Outlook 2015-16: Lower oil price fails to spur global growth" said India and the US stand out amongst some of the beneficiaries of lower oil prices.

"For India, high inflation has been one factor constraining growth in recent years, which the fall in oil prices will alleviate. This will provide tailwinds to already positive conditions," Moody`s said.

According to Moody`s lower oil prices, which is expected to be sustained would in principle provide a significant boost to global growth.

Lower oil prices will weigh on net oil exporters` growth. Among some net oil importers, a number of factors will offset the windfall income gains from the lower oil price, Moody`s said.

"There are some beneficiaries of lower oil prices; among the G20, the US and India stand out," the report states.

Moody`s forecasts US GDP growth of 3.2 percent and 2.8 percent in 2015 and 2016 respectively, as the prevailing favourable economic environment will encourage consumers and companies to spend part of the gains in real incomes stemming from lower energy prices.

Technical Comment For The Day: Gold

Technical Comment For The Day: Gold

Gold prices got underpinned during session ending Tuesday The prices ended the day at Rs 26944 per 10 grams against Rs 27902 per 10 grams.

 Meanwhile a correction below Rs 26700 and Rs 26500 can be a active trigger for further declines.

 The prices are below resistance of Rs 27000 per 10 grams. Gold prices tested a high of Rs 26985 per 10 grams and a low of Rs 26811 per 10 grams.

  Volumes for April contract was at 11170 on Tuesday against 10080 on Monday

Why lower oil prices won't boost global growth in next 2 years?

Among the G20 countries, India is one of the main beneficiaries of cheaper oil. In 2013, the country's oil imports amounted to 8.5% of GDP.

Lower oil prices will fail to give a significant boost to global growth in the next two years as the gradual slowdown in China and headwinds from Japan and the euro area hold back economic activity, says Moody's Investors Service in its quarterly Global Macro Outlook report.
 
"Lower oil prices should, in principle, give a significant boost to global growth," says Marie Diron, a Moody's Senior Vice President and author of the report. "However, we are not raising our G20 forecast. A range of factors will offset the windfall income gains from cheaper energy. In China, lower energy costs won't stop the ongoing and gradual slowdown in economic activity."
 
Despite lower oil prices, Moody's has maintained its GDP growth forecast for the G20 countries at just under 3% in both 2015 and 2016, broadly unchanged from 2014.
 
For China, Moody's expects higher energy taxes and government-controlled prices in some sectors to dampen the impact of lower oil prices.
 
"While we don't expect cheaper energy to reverse China's economic slowdown, we believe it will reduce the need for stimulus to prevent a sharper deceleration," Ms Diron adds.
 
Moody's forecasts that China's GDP growth will fall below 7% in 2015, before slipping further to 6.5% in 2016, compared to 7.4% in 2014.
 
In Japan, lower oil prices will hamper the central bank's attempts to raise inflation expectations. Moody's also expects wage growth to remain low in the next two years, dampening consumer spending. Moody's forecasts GDP growth below 1% in Japan in 2015, rising just above 1% in 2016.
 
Moody's global growth outlook is based on the assumption that oil prices will average $55 a barrel (Brent) in 2015, rising to $65 on average in 2016. The report assumes that oil prices will stay near current levels in 2015 because demand and supply conditions are unlikely to change markedly in the near future.
 
Among the G20 countries, India is one of the main beneficiaries of cheaper oil. In 2013, the country's oil imports amounted to 8.5% of GDP. Falling oil prices have helped to reduce high inflation, a factor that has constrained economic growth in recent years.
 
"Lower inflation will increase demand in India, encouraging consumers to spend and companies to invest," Ms Diron adds.
 
Lower oil prices will give the US economy a boost over the next two years through higher consumer and corporate spending, but will fail to lift global GDP growth. Moody's has raised its 2015 US GDP growth forecast to 3.2% from 3% in the last quarterly report and expects growth to remain strong at 2.8% in 2016.
 
In the euro area, the benefits of lower oil prices are likely to be small. Moody's forecasts euro area GDP growth of just below 1% in 2015, broadly unchanged from 2014, before rising to 1.3% in 2016. The report says the European Central Bank's quantitative easing programme will have a positive but small impact on the euro area economy, mainly through a further weakening of the euro.
 
Lower oil prices will hit the G20's major oil producing countries, including Russia and Saudi Arabia.
 
 
Moody's forecasts a sharp recession in Russia that will last until 2017. In Saudi Arabia, higher fiscal spending will maintain positive growth and offset the negative effects of lower oil prices.
 
The report highlights multiple factors that could lead to lower growth in individual countries, but emphasises that few of these risks would, on their own, have a large global impact. These risks include a disorderly financial market response to US monetary policy tightening, a longer than forecast fall in China's property market and heightened political uncertainty and deflation or prolonged low inflation in the euro area.

Top corporate news of the day - February 11, 2015

Eros International to release 'Uttama Villain', upcoming movie of Kamal Haasan. The company announced its association with N Linguamy's Thirrupathi Brothers Media Pvt Ltd to release the movie.

ICICI Bank has initiated the process of repatriating capital from its Canadian arm for the second time in as many years. The bank is also planning to optimize the capital invested in its United Kingdom subsidiary.
 
Natco Pharma announced that it had filed Abbreviated New Drug Applications (ANDAs) for Fingolimod, 0.5 mg capsules and Cabazitaxel, 60 mg/1.5ml injection, with the US Federal Drug Administration (USFDA) through its respective marketing partners in the USA. 
 
DLF plans to raise over Rs30bn through divestment or joint ventures in certain projects, aiming to reduce its debt. It is also looking to set up two Real Estate Investment Trusts (REITs) in the next fiscal.
 
Eros International to release 'Uttama Villain', upcoming movie of Kamal Haasan. The company announced its association with N Linguamy's Thirrupathi Brothers Media Pvt Ltd to release the movie.
 
Idria Limited, an affiliate of Creador II LLC has invested Rs1bn for a minority stake in publicly listed Ashiana Housing (Ashiana). Ashiana is focussed on developing mid-income housing segment in North India 
 
Reliance Communications and Facebook announced a tie-up to provide free access to 33 Web sites, an initiative that aims to encourage more people to use the Internet. 
 
Dairy products giant Amul does not have any plans to raise milk prices for next 4-5 months but it would review the price situation during the monsoon season. 
 
A day after ordering a probe against DLF, the Competition Commission of India (CCI) ordered a second probe against the company, for allegedly abusing its dominant position in "provisioning of services for development and sale of residential units in Gurgaon.
 
Oriental Bank of Commerce has raised Rs5bn through bonds that are compliant with the global capital adequacy norms, Basel III. 
 
State-owned United Bank of India proposed a Rs10bn preferential issue to the government to meet its capital requirement and growth needs. 
 
Shoppers Stop is planning to invest Rs1.4bn for expansion of its stores and online sale infrastructure within next one year while Walmart is looking at opening 50 stores over next five years.