Thought for the day
“Achievers can almost literally taste success because they imagine their goals in such vivid detail. Setbacks only seem to add spice and favor to the final taste of victory.” –Denis Waitley
1)THE Indian tsunami early warning system performed well meeting the international standards giving a sense of relief to the Indian monitoring agencies when the models and data were tallied with the international agencies.
2)Chief Economic Advisor Kaushik Basu expects inflation to decline in the coming months and reach a “comfortable level” of below 5 per cent next financial year.
3)In a bid to reduce the burden on officials, the Income Tax Department is planning to outsource record management to private entities. Under the proposal, a private party will handle the department’s records, including income tax returns and those pertaining to tax disputes.
CORPORATE / INDUSTRY
4)The $29-billion Aditya Birla Group is set to join the race to buy Australian coal mining company White-haven Coal. Three independent people with knowledge of the talks said the group had been selected in the first round and was now likely to make a formal bid.
5)NOTHING worries the steel manufacturer more than being unable to pass on the rising input costs fully, and putting margins under pressure. This is expected to be the case for steel players in the next quarter, which would see coking coal prices hit a record high due to supply woes, and Indian steel players anticipate a cost push of 15-20%, sequentially.
6)If you are looking for the best deal to buy a car, it could be now. Carmakers including market leader Maruti Suzuki, Hyundai and Honda are now offering even better discounts and incentives than in December to get rid of huge inventories at dealerships.
MONEY / BANKING
7)A sluggish industrial output growth and the feared fallout of the political turmoil in the Middle East and North Africa and a monster earthquake in Japan are likely to play on the Reserve Bank of India’s mind while it continues with its “struggle” to combat inflation through hiking policy rates and curbing demand. The country’s central bank would most likely hike repo rate by 25 basis points in its forthcoming mid-quarter monetary policy review on March 17, a poll of economists, bankers, and bond dealers conducted by ET showed.
8)ICICI Bank has secured a trademark registration for its corporate jingle, which goes “Dhin Chik Dhin Chik”. The Trademark Registry in India has granted registration to ICICI Bank Ltd for its second mark by registering the very notes that form the jingle. ICICI Bank is the first Indian entity to obtain sound mark registration.
9)The outcome of the RBI’s monetary policy review meeting, inflation reading for February and the status of the political conflict in the Gulf and North Africa will determine the stock market direction this week. Analysts said while the market has factored in the possibility of policy-rate increases by the central bank on Thursday, investors are closely watching the Indian monetary authority’s comments on inflation expectations.
10)SMC Global Securities today said the stock market this year is likely to give an annual return of 15% to 20%. It has advised investors to retain faith in the capital market as Budget proposals would push the growth momentum.
11)If Sebi has its way, wealth managers will have a tough time going forward as the Sebi is in the process of coming out with stern measures to regulate the relationship managers in particular and wealth management firms in general.
12)India Inc mopped up a whopping $8.3 billion through initial public offers in 2010, the fourth largest in the world, according to Ernst & Young. E&Y’s data show the amount is more than double the amount mopped up in 2009. In 2009, the figure stood at $4.1 billion. The entities were helped by a robust stock market.
13)PTC India Financial Services, a unit of PTC India, will launch its initial share sale offer on March 16. PTC India Financial Services (PFS) is coming up with an offer to sell 15.7 crore shares, consisting of 12.8 crore fresh shares, according to the draft offer document filed with Sebi.ET COMMODITIES 14)Natural calamity – earthquake and tsunami in Japan – has now been added to the already uncertain conditions in the global commodities markets caused by a host of factors including on-going geopolitical concerns, volatile currency movements, creeping slowdown apprehensions and inflation fears. No wonder, the price trajectory reflects divergent paths as fundamentals have somewhat receded into the background and non-fundamentals factors dominate. Crude market continues to remain firm on supply concerns, especially following outage of Libyan oil. Gold has stayed above $1,400 an ounce consolidating its gains, while silver prices hit a three-decade high. Base metals are under pressure.
15)Forward Markets Commission (FMC) has approved an increase in member level open interest (OI) levels for 19 non-agri products including gold, silver, platinum, base metals and crude oil. Aggregate OI, or the outstanding position of a member across all contracts, has been increased to five times the client limit from three times earlier, to facilitate greater participation by actual users. For instance, in gold, the aggregate member limit now stands at 12.5 tonne and the client limit at 2.5 tonne. Similarly, in silver, the member OI stands at 300 tonne and the client limit at 60 tonne. Late last month, the FMC approved an increase in member level position limits in agri products by the same extent.
16)New Delhi-based entrepreneur Robert Vadra, married into the country’s most powerful family, has made a quiet and relatively unheralded entry into the real estate business, including a partnership with DLF, India’s largest realty firm. Vadra, the son-in-law of the ruling United Progressive chairperson Sonia Gandhi, has stayed away from electoral politics, maintaining that he wants to be known as a businessman.
17)The ongoing political unrest in West Asia is all set to have a short to medium term impact on the expansion plans of top tier Indian IT companies in the region. Industry experts feel the development could also drag the profitability of software firms, especially in the current quarter.
18)Japan fought on Sunday to avert a meltdown at two earthquake crippled nuclear reactors, describing the massive quake and tsunami, which may have killed more than 10,000 people, as the nation’s biggest crisis since World War Two. The world’s third-largest economy is struggling to respond to a disaster of epic proportions, with more than 1 million without water or power and whole towns wiped off the map.
19)The Bank of Japan may inject more short-term cash into the banking system on Monday after the nation’s most powerful earthquake on record, while keeping its asset-purchase plans unchanged as officials gauge the longer-term effect on the world’s third-largest economy.