GDP growth of 8% achievable in 2-3 years following path of fiscal prudence: Chidambaram

GDP growth of 8% achievable in 2-3 years following path of fiscal prudence: Chidambaram

Sep 24,2014   10:30 Hrs IST

Former Finance Minister P Chidambaram said that India could achieve 8% growth in the next 2-3 years if it followed the path of fiscal prudence, which could be financed by domestic savings and some foreign direct investment. However, he underscored that growth beyond 8% would bring its own set of problems as it is bound to become inflationary, which will exacerbate fiscal deficit. It would lead to additional borrowing, which in turn would enlarge twin deficits, i.e. fiscal deficit and Current Account Deficit (CAD). Further, Chidambaram emphasized that if the government continued to remain on the path of fiscal prudence, promotes savings and investments, and be more diligent in implementing projects, it would be possible to get back to 8% growth. The Indian economy grew by 4.9% in 2013-14 fiscal. However, in the April-June quarter, the growth picked up to 5.7%. Notably, the country clocked an enviable 9% growth during pre- global financial crisis in 2008. Also, he highlighted that the key to control inflation was to contain fiscal deficit, which the government aims to bring down to 4.1% in the current fiscal from 4.5% in 2013-14. The minister pressed upon the need for financial sector reforms to achieve 8% growth. It added that FSLRC (Financial Sector Legislative Reforms Commission) had made far reaching recommendations, some are legislative, some are non-legislative in nature and the Non-legislative recommendations should be carried out over a period of next 2-3 years. The minister also lauded the Modi government's decision to do away with the Planning Commission and suggested to put in place a small body of not more than 100 people in its place, who could do prospective planning, and lay out the future roadmap.

Thermax soars as JV bags export order worth Rs 339 crore

Thermax soars as JV bags export order worth Rs 339 crore

Sep 24,2014   09:27 Hrs IST

Thermax is currently trading at Rs. 937.05, up by 48.40 points or 5.45% from its previous closing of Rs. 888.65 on the BSE. The scrip opened at Rs. 935.00 and has touched a high and low of Rs. 950.00 and Rs. 929.20 respectively. So far 6,069 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 989.70 on 02-Jul-2014 and a 52 week low of Rs. 578.00 on 01-Oct-2013. Last one week high and low of the scrip stood at Rs. 950.00 and Rs. 843.45 respectively. The current market cap of the company is Rs. 11,165.00 crore. The promoters holding in the company stood at 61.98% while Institutions and Non-Institutions held 22.99% and 15.03% respectively. Thermax’s joint venture (JV) - TBWES has received an export order from B&W PGG for detailed engineering, manufacturing and supply of selective items for two pulverized coal-fired boilers for an international project. The contract value is approximately Rs 339 crore. Thermax Babcock & Wilcox Energy Solutions (TBWES) is a JV between Thermax and US based Babcock & Wilcox Power Generation Group, Inc. (B&W PGG). The contract, booked in the second quarter of 2014, involves detailed engineering, manufacturing and supply of boiler pressure parts, critical piping, pulverisers, plate work for casing, ducts and hoppers. The contract also includes the supply of ancillary items, including valves, dampers, expansion joints and instrumentation items. Detailed engineering and supply of material are scheduled to be completed within 21 months for the first unit and 24 months for the second unit. Thermax, a leading energy and environment solutions provider, is one of the few companies in the world that offers integrated innovative solutions in the areas of heating, cooling, power, water and waste management, air pollution control and chemicals.

TCS gains on featuring as 'Front Runner' in Digital Transformation Services

TCS gains on featuring as 'Front Runner' in Digital Transformation Services

Sep 23,2014   10:10 Hrs IST

Tata Consultancy Services (TCS) is currently trading at Rs. 2759.00, up by 38.40 points or 1.41% from its previous closing of Rs. 2720.60 on the BSE. The scrip opened at Rs. 2726.00 and has touched a high and low of Rs. 2780.00 and Rs. 2725.00 respectively. So far 15868 shares were traded on the counter. The BSE group 'A' stock of face value Re. 1 has touched a 52 week high of Rs. 2735.00 on 22-Sep-2014 and a 52 week low of Rs. 1911.10 on 01-Oct-2013. Last one week high and low of the scrip stood at Rs. 2735.00 and Rs. 2548.30 respectively. The current market cap of the company is Rs. 540853.76 crore. The promoters holding in the company stood at 73.90 % while Institutions and Non-Institutions held 21.63 % and 4.47 % respectively. Tata Consultancy Services (TCS), a leading IT services, consulting and business solutions organization, has been recognized as a ‘Front Runner’ by analyst firm HfS Research in its ‘Digital Transformation Services: An HfS Blueprint Primer’, authored by Ned May, Senior Vice President, Digital Transformation Services & Solutions, HfS Research. The report analyzed more than 2,500 data points with 11 leading global IT Service providers in mobility, analytics and cloud, who were ranked in HfS’ annual enterprise buyer survey. Interviews were conducted and data was collected during Q4 2013 through Q2 2014, covering buyers, providers, advisors, and influencers of digital transformation services. Ratings were based on the evaluation of service provider’s offerings, structure and strategy in innovation and execution. TCS is an IT services, consulting and business solutions organization 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.

Reliance Industries’ telecom arm inks MSA with Indus Towers

Reliance Industries’ telecom arm inks MSA with Indus Towers

Sep 23,2014   09:13 Hrs IST

Reliance Industries’ (RIL) telecom arm - Reliance Jio Infocomm (RJio), the only pan India operator with BWA spectrum preparing to launch 4G services has inked a Master Services Agreement (MSA) with Indus Towers, for tower infrastructure sharing. Under the agreement, Reliance Jio would utilize the telecom tower infrastructure services being provided by Indus Towers to launch its services across the country. As per the agreement, the pricing would be based on prevailing market rates. The agreement will help in avoiding duplication of infrastructure and preserving the environment. It will also ensure seamless services to Reliance Jio customers through Indus’ world class tower infrastructure.

Tata Motors trades in green on BSE

Tata Motors trades in green on BSE

Sep 22,2014   11:59 Hrs IST

Tata Motors is currently trading at Rs. 530.10, up by 11.10 points or 2.14% from its previous closing of Rs. 519.00 on the BSE. The scrip opened at Rs. 514.00 and has touched a high and low of Rs. 531.00 and Rs. 514.00 respectively. So far 134643 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 531.00 on 28-Aug-2014 and a 52 week low of Rs. 330.25 on 01-Oct-2013. Last one week high and low of the scrip stood at Rs. 528.95 and Rs. 491.05 respectively. The current market cap of the company is Rs. 144512.14 crore. The promoters holding in the company stood at 34.33 % while Institutions and Non-Institutions held 37.16% and 7.25% respectively. Tata Motors’ British-based arm Jaguar and Land Rover (JLR) has launched locally manufactured Jaguar XJ 2.0L. The petrol-powered sedan carries a price tag of Rs 93.24 lakh at Mumbai showroom. This new luxury saloon, which is being made at the company' Pune plant, comes after the successful launch of locally produced diesel-powered Jaguar XJ 3.0L earlier this year. This new car comes with various luxury features including electrically adjustable rear seats with massage function in three intensity settings, increased rear headroom and rear seat entertainment. Tata Motors is India's largest automobile company, is the leader in commercial vehicles in each segment, and among the top in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is also the world's fourth largest truck and bus manufacturer.

Forex reserves stood at $315.697 billion for the week ended September 12, 2014

Forex reserves stood at $315.697 billion for the week ended September 12, 2014

Sep 20,2014   10:56 Hrs IST

According to the latest press release from the Reserve Bank of India (RBI), the country’s forex reserves decreased by $1615.40 million to $315.697 billion during the week ended September 12, 2014. The decrease in valuation of Foreign Currency Assets in the IMF pulled the forex kitty lower during the reporting week. Valuation of foreign currency assets decreased by $1599.60 million in the week and stood at $288.764 billion, while the value of gold in the reserves remained unchanged to $20.933 billion during the week. SDRs’ (Special Drawing Rights) valuation decreased by $11.40 million and stood at $4.333 billion in the week. This valuation is inclusive of SDR 3,082.5 million (equivalent to $4,883 million) allocated under general allocation and SDR 214.6 million (equivalent to $340 million) allocated under special allocation by International Monetary Fund (IMF) done on August 28, 2009 and September 9, 2009, respectively. The country’s reserve position in the IMF further witnessed a drop of $4.40 million during the week ended September 12, 2014 to $1.666 billion. Reserve position in the IMF, i.e., Reserve Tranche Position (RTP) which was shown as a memo item from May 23, 2003 to March 26, 2004 has been included in the reserves from the week ended April 2, 2004 in keeping with the international best practice.

South Indian Bank gains on plan to raise Rs 500 crore through QIP

South Indian Bank gains on plan to raise Rs 500 crore through QIP

Sep 22,2014   10:55 Hrs IST

The South Indian Bank is currently trading at Rs. 27.75, up by 0.15 points or 0.54% from its previous closing of Rs. 27.60 on the BSE. The scrip opened at Rs. 27.60 and has touched a high and low of Rs. 27.75 and Rs. 27.50 respectively. So far 45741 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 35.05 on 07-Jul-2014 and a 52 week low of Rs. 19.65 on 04-Feb-2014. Last one week high and low of the scrip stood at Rs. 28.60 and Rs. 27.20 respectively. The current market cap of the company is Rs. 3733.77 crore. The institutions and non-institutions held 52.69% and 47.31% stake in the company, respectively. South Indian Bank is planning to raise up to Rs 500 crore through qualified institutional placements (QIP). The bank has already received approval from its board for the proposed QIP, which will mostly be for meeting its capital requirement. Meanwhile, the bank is also planning to add around 50 branches this financial year to its 835 branches. The bank’s net profit for the quarter ended June 30, 2014 rose by 10.28% at Rs 126.65 crore as compared to Rs 114.84 crore for the quarter ended June 30, 2013. Its total Income increased by 9.15% to Rs 1465.84 crore for the quarter under review from Rs 1342.88 crore for the corresponding quarter of the previous year.

Shree Cement rises on entering into BTA for acquisition of 1.5 MTPA Cement Grinding Unit

Shree Cement rises on entering into BTA for acquisition of 1.5 MTPA Cement Grinding Unit

Sep 22,2014   09:48 Hrs IST

Shree Cement is currently trading at Rs. 8628.25, up by 53.30 points or 0.62% from its previous closing of Rs. 8574.95 on the BSE. The scrip opened at Rs. 8628.25 and has touched a high and low of Rs. 8628.25 and Rs. 8628.25 respectively. So far 1 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 8810.00 on 12-Sep-2014 and a 52 week low of Rs. 3965.00 on 27-Sep-2013. Last one week high and low of the scrip stood at Rs. 8765.35 and Rs. 8444.15 respectively. The current market cap of the company is Rs. 29872.75 crore. The promoters holding in the company stood at 64.79% while institutions and non-institutions held 15.88% and 19.33% respectively. Shree Cement has entered into a Business Transaction Agreement (BTA) with Jaiprakash Associates for acquisition of its 1.5 MTPA Cement Grinding Unit situated at Panipat, Haryana for a tentative consideration of around Rs 360 crore. The transaction is subject to necessary regulatory approvals. The company had already received board of directors approval for the same at their meeting held on August 25, 2014. Shree Cement (SCL), belonging to B G Bangur - H M Bangur faction of Bangur family of Kolkata, is engaged in manufacturing of cement and power generation. SCL’s eight cement plants in Rajasthan and one grinding unit in Uttrakhand have an aggregate capacity of 13.5 mn tonnes p.a.

Sep 22,2014   09:48 Hrs IST

Shree Cement is currently trading at Rs. 8628.25, up by 53.30 points or 0.62% from its previous closing of Rs. 8574.95 on the BSE. The scrip opened at Rs. 8628.25 and has touched a high and low of Rs. 8628.25 and Rs. 8628.25 respectively. So far 1 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 8810.00 on 12-Sep-2014 and a 52 week low of Rs. 3965.00 on 27-Sep-2013. Last one week high and low of the scrip stood at Rs. 8765.35 and Rs. 8444.15 respectively. The current market cap of the company is Rs. 29872.75 crore. The promoters holding in the company stood at 64.79% while institutions and non-institutions held 15.88% and 19.33% respectively. Shree Cement has entered into a Business Transaction Agreement (BTA) with Jaiprakash Associates for acquisition of its 1.5 MTPA Cement Grinding Unit situated at Panipat, Haryana for a tentative consideration of around Rs 360 crore. The transaction is subject to necessary regulatory approvals. The company had already received board of directors approval for the same at their meeting held on August 25, 2014. Shree Cement (SCL), belonging to B G Bangur - H M Bangur faction of Bangur family of Kolkata, is engaged in manufacturing of cement and power generation. SCL’s eight cement plants in Rajasthan and one grinding unit in Uttrakhand have an aggregate capacity of 13.5 mn tonnes p.a.

RBI should hike interest rates to bring down inflation: IMF

RBI should hike interest rates to bring down inflation: IMF

Sep 19,2014   10:22 Hrs IST

Little ahead of the Reserve Bank of India (RBI)'s monetary policy review on September 30, the International Monetary Fund (IMF) has suggested the central bank should increase its guard to fight against stubbornly high inflation by hiking its key policy rates so that inflation remains lower on sustainable basis. In a note released ahead of the G20 meeting of Finance Ministers and central bank governors at Cairns in Australia, IMF underscored that India needs to take more steps to reduce the large fiscal deficit and fight against stubbornly high inflation, which would warrant a hike in interest rates and a simpler monetary framework with clear objectives and operational autonomy for the central bank. Notably, right after the release of five year low August WPI data, Reserve Bank of India’s governor, Raghuram Rajan clearly had ruled out the chances of rate cut at the month-end monetary policy announcement, citing that Inflation in Asia's third-largest economy, India, was still high and hence there was no point in slashing interest rates since this would further build on to inflationary pressures. He then had underscored that Reserve Bank of India would bring down interest rates as and when it is “feasible”. Helped by slower annual rises in prices of fuel and clothes, retail inflation edged down marginally to 7.8% in August from 7.96% a month earlier. Meanwhile, extending its easing trend, India's main inflation gauge, based on monthly WPI, softened more than expected at 3.74% for the month of August, as compared to 5.19% (Provisional) for the previous month of July. Street widely was expecting a number above 4% for the month under review. Further, the international agency which also called for higher public spending on infrastructure to ease supply bottlenecks and support economic development, asserted that removing supply bottlenecks would lead to more sustainable growth. Separately, IMF, though acknowledging government’s stand on fiscal consolidation, flagged concerns over its quality and durability. The government has proposed to bring down the fiscal deficit to 4.1% of GDP in current year from 4.5% last fiscal and also has put up in place a fiscal consolidation roadmap as per which the fiscal deficit has to be brought down to 3% of the GDP by 2016-17.

Tata Steel opens new automotive finishing line

Sep 19,2014   10:10 Hrs IST

Tata Steel has opened a new finishing line at its IJmuiden steelworks in the Netherlands to strengthen the supply of high-value steels to the automotive sector and other markets. The company has invested 12 million euros in Finishing Line 32, which will process up to 400,000 tonnes of galvanised (corrosion resistant) steel coil a year. The finishing line’s location at the end of the company’s three hot-dip galvanising lines in IJmuiden will increase processing speed and delivery reliability for customers, while also reducing on-site steel movements. Finishing Line 32 enables inspection, cutting to width and length, laser welding, slitting, two sided oiling, marking, coiling and binding of galvanised steel. After the finishing, coils are wrapped and loaded onto trucks or trains for direct delivery to customers. Tata Steel, the flagship company of the Tata group is the first integrated steel plant in Asia and is now the world’s second most geographically diversified steel producer and a Fortune 500 Company.