Bond Prices Rise Marginally - April 03, 2009

The bond prices on Wednesday shot up after the announcement by the Reserve Bank of India for the buyback of Rs 6,000 crore worth Government securities and the Market Stabilisation Scheme unwinding of Rs 33,000 crore. However, the volumes were low in the bond market because of the auctions lined up, said a dealer with a private bank. The total traded volumes on the order matching system were at Rs 8,640 crore.

The 6.05 per cent-2019-10-year benchmark paper closed at Rs 93.57 (6.96 per cent YTM) against Tuesday''s close of Rs 93.24 (7.01 per cent YTM). Moreover, the 7.46 per cent- 2017- eight-year paper opened at Rs 101.8 (7.17 per cent YTM) and closed at Rs 102.4 (7.07 per cent YTM).

Inflation Rises Marginally To 0.31% - April 03, 2009

The inflation grew marginally to 0.31 per cent for the week ended March 21 as the prices of certain food items like tea, gur, aerated water and imported edible oil shot up. The inflation was 0.27 per cent for the week ended March 14 and 7.8 per cent in the corresponding period a year ago.

The price of blended tea went up by 48 per cent while that of packaged tea and aerated water grew by 22 and 10 per cent, respectively. However, the items that became dearer were soft drinks as well as oil cake, bajra, condiments and spices while among non-food items cement, rubber, plastic products and PVC fittings became expensive.

On the other hand, fruit and vegetables, barley, jowar, raw silk, khandsari, salt, mustard and coconut oil became cheaper. Meanwhile, the inflation for the week ended January 24 has been revised downwards to 4.7 per cent from 5.07 per cent.

Rupee Rallies By 36 Paise To 50.34 - April 03, 2009

The rupee on Thursday strengthened further by 36 paise to close at 50.34/35 against the greenback due to the sharp rise in the equity markets and expectations of more capital inflows. At the Interbank Foreign Exchange (Forex) market, the rupee opened higher at 50.30/32 a dollar against its previous close of 50.70/71 and closed at 50.34/35.

The rupee moved in a range of 50.24 and 50.42 a dollar. Mainly the continued rally at the equity markets supported the rupee as the Sensex on Thursday closed with handsome gains of 447 points or 4.51 per cent.

The fresh capital inflows on April 1 as per provisional figures, also boosted the market sentiment. A weak dollar in Asian trade on Thursday against its major rivals also helped the rupee rally.

However, the Reserve Bank of India fixed the reference rate for the dollar at Rs 50.30 and the euro at Rs 66.90. The benchmark six-month forward dollar premium payable in September closed lower at 68-70 paise from 77-79 paise on Wednesday and far-forwards maturing in March also closed down at 107-109 paise from 119-121 paise previously.

Trade Deficit Up To $115 B In April-Feb - April 02, 2009

New Delhi: The country''s exports have suffered a serious jolt with a sharp fall by 22 per cent at $11.9 billion in February 2009 as compared to $15.2 billion in the corresponding month last year. With imports too declining by 23.3 per cent at $16.8 billion, ($21.9 billion), India''s foreign trade front groans under the declining exports and imports with cumulative massive trade deficit of $115 billion in the first 11 months of the current fiscal as against $82.2 billion for the whole of 2007-08.

The cumulative exports in the first 11 months of 2008-09 have come to a grinding halt slowing down to 7.3 per cent at $156.6 billion as against $145.87 billion in the corresponding months of 2007-08. But the depreciation of the Indian rupee vis-À-vis the US dollar gives a bit of relaxation, in which a major portion of the export receipts is received, the export growth in rupee terms has swollen substantially to a growth of 20.3 per cent. India''s exports during April-February 2008-09 registered a growth of 19.1% in dollar terms at $271.7 billion ($228 billion) and 33.4 per cent growth in rupee terms at Rs 12,23,213 crore (Rs 9,17,179 crore).

Increase In Tax Collection Of 19.4 Per Cent - April 02, 2009

Kerala has registered a record tax collection with a total estimated mop-up of Rs.14,789 crore as on March 31. According to tentative estimates of the Finance Department, the total revenue earned by way of VAT and non-VAT levy was Rs.11,565 crore as on March 31 and this was Rs.1,880 crore (19.4 per cent) more than the collection last year. The 19.4 per cent increase in tax collection has been estimated with reference to the department''s figures pertaining to 2007-08 which stood at Rs.9,685 crore.

The Excise Department also chipped in well with a total excise duty collection of Rs.1,359 crore, which is 15 per cent more than the total excise duty collection during 2007-08.

Past one year had seen stringent measures on the Finance Department part to plug the loopholes as well as widen the tax net with attractive incentives for the tax payer and intensified intelligence initiatives to unearth evasion. Moreover the computerisation of all offices of the Taxes Department, have helped the government to take its tax effort to newer levels.

Gold Remains Steady On Lack Of Support - April 02, 2009

The gold prices on Wednesday held steady at Rs 15,260 per ten gram on the bullion market due to lack of buying support following bank closure for public dealings on the first day of the fiscal year. However, on the other hand, the silver gained Rs 100 at Rs 21,800 per kg on fresh buying by industrial units and silver coins manufacturers.

The buying activity in the bullion was also restricted as some investors preferred shifting their funds in rising equity market for quick gains. The Standard gold and ornaments held steady at Rs 15,260 and Rs 15,110 per ten gram respectively. The sovereign also traded around Rs 12,200 per piece of eight gram.

On the other hand, the silver ready recovered by Rs 100 to Rs 21,800 per kg on retailers buying. It had lost by Rs 470 per kg in the previous session. However, the silver weekly-based delivery fell further by Rs 310 to Rs 21,670 per kg. Its coins held unchanged at Rs 28,200 for buying while Rs 28,300 for selling of 100 pieces.

Exports May Grow By Merely 3% This Year - April 01, 2009

The growth of India''s export could be as low as 3 per cent in 2009-10, the Planning Commission said in its report to the Prime Minister Manmohan Singh. "If we assume that India''s exports depend on (the) growth rate of advanced economies rather than on the growth rate of the world economy, our export growth rate in 2009 can be only 3 per cent", said a report on the prospects of the Indian economy in 2009-10.

The report said that in the best-case scenario the exports would register a growth rate of 6 per cent in the next fiscal. This, however, would be much lower than the average export growth rate of 21 per cent during 2006-07 and 2007-08. The report further said that one per cent fall in the global output results in 4.4 per cent decline in exports. According to the assessment, with global output falling by 0.9 per cent in 2009, India''s exports could further dip by four percentage points during the year.

RBI Wants To Regulate NBFC Holding Companies - April 01, 2009

The Reserve Bank of India (RBI) has decided regulate domain holding companies floated by business groups and also the companies that own non-banking finance companies (NBFC). The move was a consequence of the fact that NBFCs had regularly complained about the acute shortage of funds and some had received liquidity support from the government in consultation with RBI as a result, said sources close to the development.

But the central bank’s own inspection and tax reports from the income tax department and registrar of companies have shown that many of these NBFCs have transferred surplus funds earned in good times to their holding companies, at present which are regulated under the Companies Act, in the form of loans or dividends.

Therefore, this mechanism acts as a tax haven for the income of the entire business group. Dividend is taxed as dividend distribution tax at 15 per cent in the hands of the company offering the dividend. If the same company retains the amount as profit, it will have to pay tax at 30 per cent.

India Inc Thinking Beyond Balance Sheets - April 01, 2009

The economic slowdown that is taking its toll on all the industries has forced India Inc to think beyond balance sheets. The fall in earnings along with consumer holdings on to their wallets and not so encouraging customer confidence, India Inc needs more than just great financial results in order to stay alive.

This deadly combination has forced India Inc to think beyond balance sheets and instead shows case their non-business initiatives. One such example is Wipro, which has published its first sustainability report. Anurag Behar, Corporate VP of Social & Community Initiative at Wipro, said, "It''s simply this-you see the financial and economic crisis in your line of sight here and now. But this issue of sustainability is an issue threatening the very survival of humanity over the next 50-70-100 years-whether it''s climate change, water scarcity or increasing inequality in society."

In fact, ITC has expanded its social as well as environmental activity in the slowdown. On the other hand, the pharma companies have come out with an ecological report because it wanted to get enlisted on the NYSE. The IT sector came out with such reports because of pressure from the clients. In the recession hit market, where most clients are looking at link benefits of reporting to balance sheet, that''s why want to shift from brand value to cost savings.