CAD likely to remain at 4% in Q4 FY13: Raghuram Rajan

As per the Chief Economic Advisor Raghuram Rajan, the country’s Current Account Deficit (CAD) is likely to be around 4 percent of the gross domestic product (GDP) for the fourth quarter of FY13. The CAD, which represents the difference between the export and import of goods, services and transfers, widened to a record high of 6.7 percent in the third quarter of FY13 on the back of rising oil and gold imports and is expected to be around 5 percent for the previous financial year. Meanwhile, the high CAD is impacting the rupee value, which has hit 58.50/$ level recently.

   India’s gold imports touched 162 tonnes in May, while in April, it were around 100-120 tonnes, higher than the average monthly import level of 70-80 tonnes. Further, the recently released World Gold Council (WGC) report highlighted that India’s gold imports in April-June quarter of 2013 may increase by 200 percent y-o-y to around 300-400 tonnes, which would be almost half the imports of whole of 2012. However, to curb the gold import, the government has been taking steps regularly, including raising import duty. Further, the RBI too had put in place regulations under which gold can only be imported on a consignment basis to meet the genuine demands of Jewellery exporters. It has also increased margin money to 100 Percent. 

TV18 Shines on launching a 24 hrs Television News channel 'News18 India' in UK

TV18 Broadcast India's Premier news and entertainment network has launched 'News18 India' a 24hrs television news channel is designed to give global audiences a window into the world's largest democracy.
News18 India will be distributed in the UK and other International markets bu Indiacast, a strategic joint venture bbetween TV18 and Viacom18 and one of India's largest  multi platform content aggregators,

Following the entry in the UK, News India will be launching across the globe including key diaspora markets such as the us,canada, middle east and Australia.
 The promoters holding in the company stood at 57.04% while institutions and non-institutions held 10.24% and 32.72%  
Last one week high and low stood at Rs.25.60 and Rs.24.05 respectively.the scrip is currently trading at Rs.24.65 up by 1.23% from yesterday's closing.

Mahindra Satyam gains on entering into strategic alliance agreement with CollabNet

Mahindra satyam, a leading global consulting and IT service provider, has entered into a strategic alliance agreement with collabNet, the leader for enterprises cloud development , to jointly develop and deliver Enterprise cloud development, Agile and DevOps solutions in the cloud services space. Mahindra satyam and Tech mahindra will work together with CollabNet under this agreement.
 
collabNet's Teamforge ALM platform aligns with Mahindra satyam and Tech mahindra's vision to drive value for enterprise IT organisations via cloud based approaches. Both the companies will resell collabNet's Teamforge and Cloudforge products and services, as well as its Agile training services throughout Asia.

   Satyam is currently trading at Rs.112.60 up by 0.76% fro its previous closing Rs.111.75 on the BSE. 

Jet airways flies higher on the bourses

Naresh Goyal-run Jet airways (India) low cost commercial carrier Indigo both have launched a novel sales strategy of allowing customers to buy air tickets through credit cards with payment stretched out over equated monthly installments (EMI's) of  two months.
 
   With jet fuel prices shooting through the roof and fierce competition in the aviation market, the two airlines have taken a leaf out of the book of mobile phone companies,which have tied up with banks to offer handsets on EMI's through credit card purchases.
 Both Jet Airways and IndiGo have tied up with HDFC and citibank and ICICI bank to offer their passengers an option to pay fares in two installments.
  Today the scrip opened at Rs.402.90 and made a high of  Rs.442.35  up by 6.24%

Former Coal Secretary HC Gupta resigns..

Competition commission member H C Gupta,the former coal secretary who is set to be questioned by  CBI, has submitted his resignation to the government.
 The resignation came after the corporate affairs ministry gave its nod to CBI to question Gupta in connection with the coal blocks allocation scam.

Gupta submitted his resignation yesterday and the same will be processed by the government.
During the 2006-09 period, 68 coal blocks were alloted  to 151 companies and files of some of them had gone missing.
CBI, which is probing  the coal block allocation scam, has registered 12 FIR's related to alleged irregularities in the allotment coal blocks between 2006-2009.  

Fitch upgrades India's outlook to stable

Fitch Ratings today scaled up the outlook on India's sovereign ratings from negative to stable owing to the government's efforts to contain the fiscal deficit and address structural issues to perk up investment and growth.
    The rating agency affirmed its long term foreign and local currency issuer default rating at BBB.It also affirmed the country ceiling at BBB and the short foreign currency IDR at 'F3'.

The agency said the stable outlook was a result of the governments action to boost the economic activities. It reflects the measures taken by the govenment to contain the budget deficit,including the commitments made in the FY14 budget and progress in addressing structural impedients to investment and economic growth.  

Titan stock slips to fresh 52 week low.

 Titan industries Ltd stock sank to 52 week low today before making a mild recovery after the company   indicated yesterday that the RBI was firm in its stand that importers of gold would have to fork 100 % cash margin for their gold import.

  Titan had stated in its discussion with RBI officials, it was clarified that any import of gold for domestic use whether through banks or nominated agencies or directly could be done only with 100 percent cash margin.
 The stock had fallen to fresh 52 week low of Rs.201.20, At one time, the stock had shed more than 10% for the second day running before pulling back a bit. The trading volume within 15 minutes of trading was about 40 lakh shares in the counter.The scrip closed at Rs.205.30 in BSE.

April stands at a worrying 2%

The Index of Industrial production  (IIP) grew less than expected at 2% in April from a year earlier.
Manufacturing which constitutes about 76% of IIP, grew 2.8% from a year earlier.
 Capital goods production, a barometer for investments in the economy grew an annual 1% percent, whereas intermediate goods grew 2.4%, and consumer goods rose by 2.8%.
  In March, the IIP recovered to 2.5% growth after a sluggish growth of 0.06% in february. The IIP stood at a decade low of 1% in 2012-13

Jewellry stocks under hammer...

Shares of frontline jewellery companies are under hammer and trading lower by up to 12% on concerns that a frequent rises in gold import duty and the sustained depreciation of the Rupee against the dollar may dampen the growth of the sector.

Tara jewels,TBZ,Gitanjali are down in the range of  2-17% on the BSE. The Government increased duty on gold from 6% to 8%, this was the second time in six months that the duty was raised. In january,the government has raised the duty to 6% from 4%.
Tara jewels has dipped by 3.35%,TBZ is down by 4%,Gitanjali has tanked 3.79%.

Elder Pharma surges on Promoter stake sale.

Elder Pharmaceuticals locked in upper circuit of 4.98% at Rs.358.85 on reports that the promoter is looking for Buyer for the company.
      The Mumbai based pharmaceutical company has mandated multinational consultancy firm Ernst & young and Japanese investment banking firm Nomura Securities to manage a formal process to find a buyer through a negotiation transaction.
 The stock opened at Rs.350 and hit a low of Rs. 348 on NSE.