Thursday,8 October 2009
Nagpur, Oct 8: 17 policemen were killed in a gunfight with Naxalites in Maharashtra's Gadchiroli district Thursday, barely hours after Maoists set ablaze a gram panchyat office in the area.
The shootout, which lasted for over three hours, took place in a forest in Lehari in Bhamragarh taluka, police said.
A group of 200 Naxalites opened fire on a police party which was promptly returned, sources said, adding the exact condition of the injured policemen was not immediately known.
Earlier, Maoists had set ablaze a gram panchyat office in Gadchiroli district. The incident comes two days after the beheading of Jharkhand police officer Francis Induwar.
Home Minister P Chidambaram had Wednesday said the security forces will engage the Maoists till they abjure violence and the air force will take steps to protect itself from any Naxal attacks.
"As long as the CPI-Maoists believe in an armed liberation struggle, we have no option but to ask our security forces to engage them, we will arrest them, we will apprehend them," Chidambaram had said in Mumbai.
Thursday, October 8, 2009
RBI set to tighten policy early-2010: Moody's
8 Oct 2009, ET Bureau
MUMBAI: Ever since Australia's central bank raised its cash rate on Tuesday markets have been on the lookout for the next candidate. In Asia, the central bank deemed most likely to tighten next is either the Bank of Korea or the Reserve Bank of India.
Korea's central bank is facing a property price bubble; India's is facing inflationary pressures. “Inflationary pressures in India are elevated because of drought conditions in key agricultural areas, exacerbated by the weakest monsoon season in decades. Inflation has also been stoked by government measures, such as "minimum support prices" to maintain agricultural prices and protect farmers. This is partly why food prices are soaring; vegetable prices are up 50% relative to a year ago,” Alistair Chan, economist at Moody’s Economy.com said.
Given these pressures, markets are betting that the RBI will withdraw monetary stimulus soon. Market expectations for higher interest rates have seen the rupee trade at its highest level against the dollar in over a year. In the past week the rupee has appreciated 3.5% against the dollar. A deputy governor of the RBI has stated that the RBI seeks low volatility, rather than a low value, of the rupee. This suggests that the bank will not intervene to prevent the rupee from strengthening further. Indeed, a stronger rupee would lower import prices, especially for fuel, a Moody’s Economy.com report added.
According to Chan, the RBI could begin raising its repo and reverse repo rates before the end of the year, although it is likely to wait until the start of 2010. It is also likely to take a gradual approach, which may involve increasing banks' cash reserve ratios first. The RBI will walk a fine line between dampening inflation while keeping growth robust, but to its credit it has successfully navigated similar situations before.
MUMBAI: Ever since Australia's central bank raised its cash rate on Tuesday markets have been on the lookout for the next candidate. In Asia, the central bank deemed most likely to tighten next is either the Bank of Korea or the Reserve Bank of India.
Korea's central bank is facing a property price bubble; India's is facing inflationary pressures. “Inflationary pressures in India are elevated because of drought conditions in key agricultural areas, exacerbated by the weakest monsoon season in decades. Inflation has also been stoked by government measures, such as "minimum support prices" to maintain agricultural prices and protect farmers. This is partly why food prices are soaring; vegetable prices are up 50% relative to a year ago,” Alistair Chan, economist at Moody’s Economy.com said.
Given these pressures, markets are betting that the RBI will withdraw monetary stimulus soon. Market expectations for higher interest rates have seen the rupee trade at its highest level against the dollar in over a year. In the past week the rupee has appreciated 3.5% against the dollar. A deputy governor of the RBI has stated that the RBI seeks low volatility, rather than a low value, of the rupee. This suggests that the bank will not intervene to prevent the rupee from strengthening further. Indeed, a stronger rupee would lower import prices, especially for fuel, a Moody’s Economy.com report added.
According to Chan, the RBI could begin raising its repo and reverse repo rates before the end of the year, although it is likely to wait until the start of 2010. It is also likely to take a gradual approach, which may involve increasing banks' cash reserve ratios first. The RBI will walk a fine line between dampening inflation while keeping growth robust, but to its credit it has successfully navigated similar situations before.
RBI set to tighten policy early-2010: Moody's
8 Oct 2009, ET Bureau
MUMBAI: Ever since Australia's central bank raised its cash rate on Tuesday markets have been on the lookout for the next candidate. In Asia, the central bank deemed most likely to tighten next is either the Bank of Korea or the Reserve Bank of India.
Korea's central bank is facing a property price bubble; India's is facing inflationary pressures. “Inflationary pressures in India are elevated because of drought conditions in key agricultural areas, exacerbated by the weakest monsoon season in decades. Inflation has also been stoked by government measures, such as "minimum support prices" to maintain agricultural prices and protect farmers. This is partly why food prices are soaring; vegetable prices are up 50% relative to a year ago,” Alistair Chan, economist at Moody’s Economy.com said.
Given these pressures, markets are betting that the RBI will withdraw monetary stimulus soon. Market expectations for higher interest rates have seen the rupee trade at its highest level against the dollar in over a year. In the past week the rupee has appreciated 3.5% against the dollar. A deputy governor of the RBI has stated that the RBI seeks low volatility, rather than a low value, of the rupee. This suggests that the bank will not intervene to prevent the rupee from strengthening further. Indeed, a stronger rupee would lower import prices, especially for fuel, a Moody’s Economy.com report added.
According to Chan, the RBI could begin raising its repo and reverse repo rates before the end of the year, although it is likely to wait until the start of 2010. It is also likely to take a gradual approach, which may involve increasing banks' cash reserve ratios first. The RBI will walk a fine line between dampening inflation while keeping growth robust, but to its credit it has successfully navigated similar situations before.
MUMBAI: Ever since Australia's central bank raised its cash rate on Tuesday markets have been on the lookout for the next candidate. In Asia, the central bank deemed most likely to tighten next is either the Bank of Korea or the Reserve Bank of India.
Korea's central bank is facing a property price bubble; India's is facing inflationary pressures. “Inflationary pressures in India are elevated because of drought conditions in key agricultural areas, exacerbated by the weakest monsoon season in decades. Inflation has also been stoked by government measures, such as "minimum support prices" to maintain agricultural prices and protect farmers. This is partly why food prices are soaring; vegetable prices are up 50% relative to a year ago,” Alistair Chan, economist at Moody’s Economy.com said.
Given these pressures, markets are betting that the RBI will withdraw monetary stimulus soon. Market expectations for higher interest rates have seen the rupee trade at its highest level against the dollar in over a year. In the past week the rupee has appreciated 3.5% against the dollar. A deputy governor of the RBI has stated that the RBI seeks low volatility, rather than a low value, of the rupee. This suggests that the bank will not intervene to prevent the rupee from strengthening further. Indeed, a stronger rupee would lower import prices, especially for fuel, a Moody’s Economy.com report added.
According to Chan, the RBI could begin raising its repo and reverse repo rates before the end of the year, although it is likely to wait until the start of 2010. It is also likely to take a gradual approach, which may involve increasing banks' cash reserve ratios first. The RBI will walk a fine line between dampening inflation while keeping growth robust, but to its credit it has successfully navigated similar situations before.
RIL board approves 1:1 bonus issue
Press Trust of India / Mumbai October 07, 2009
Mukesh Ambani group firm Reliance Industries (RIL) today said it will issue one bonus share for every share held in the company.
The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange (BSE).
The issue of bonus shares is subject to the shareholders' approval, it added.
The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.
Shares of RIL today closed down 1.57 per cent at Rs 2,099 on the Bombay Stock Exchange.
Mukesh Ambani group firm Reliance Industries (RIL) today said it will issue one bonus share for every share held in the company.
The board of directors of the company at its meeting held today, recommended issuance of bonus shares in the ratio of one equity share of Rs 10 each for each share held, RIL said in a filing to the Bombay Stock Exchange (BSE).
The issue of bonus shares is subject to the shareholders' approval, it added.
The board has also declared a dividend of Rs 13 per fully paid-up equity share of Rs 10 of the company to the shareholders, the company said.
Shares of RIL today closed down 1.57 per cent at Rs 2,099 on the Bombay Stock Exchange.
Per second billing to be one of the options: TRAI
New Delhi, Oct 8 (PTI) Telecom regulator TRAI today said that operators will have to provide an optional tariff of per second call along with other packages or plans.
"Per second billing will be one of the options that (telecom) service providers have to provide," Telecom Regulatory Authority of India Chairman J S Sarma told reporters when asked about the reactions from operators on the suggestions for per second billing.
"Currently we are preparing a consultation paper on this, which will be out in one to one and a half months," he added.
Sarma said the idea behind the move is to bring in a plan for consumers which offers per second billing.
He said, "Operators can offer it along with other plans.
It does not mean we will fix the tariff. When we make recommendation on this issue, we will keep in view the interest of operators as well as consumers
"Per second billing will be one of the options that (telecom) service providers have to provide," Telecom Regulatory Authority of India Chairman J S Sarma told reporters when asked about the reactions from operators on the suggestions for per second billing.
"Currently we are preparing a consultation paper on this, which will be out in one to one and a half months," he added.
Sarma said the idea behind the move is to bring in a plan for consumers which offers per second billing.
He said, "Operators can offer it along with other plans.
It does not mean we will fix the tariff. When we make recommendation on this issue, we will keep in view the interest of operators as well as consumers
Telecom stocks go for a toss on tariff pressure
7 Oct 2009, ET Bureau
MUMBAI: The mobile phone sector, long the darling of the markets, saw itself facing the uncomfortable prospect of investors hanging up on it on tuesday on fears that a renewed tariff war may bring its dream run of profit growth to an end and could force smaller players to sell out or shut shop.
Shares in mobile firms were pummelled for the second straight day, leaving analysts wondering if the sector was seeing a fundamental re-rating as investors increasingly worry about the impact of the bruising price war on its profit and revenue outlook.
Bharti Airtel, the country's largest wireless service provider, slumped 10% to close at Rs 359.40, taking losses in just two trading sessions to 17%, the steepest two-day fall in almost a year. Reliance Communications tumbled 11% and Idea, the country's fourth-largest mobile operator, fell 8%.
Mobile tariffs in India are already the lowest in the world thanks to fierce competition, but the intensity of the bloodletting looks set to increase as operators come up with price plans to rival those unveiled by Reliance Communications (RCOM). The Anil Ambani-controlled firm on Monday announced the slashing of tariffs across the board for local, roaming and long-distance calls to 50 paise per minute.
Apart from the RCOM tariff cut, suggestions from the Telecom Regulatory Authority of India on Monday that companies shift to charging customers for usage in seconds instead of minutes now, has compounded the woes for a sector that was not so long ago viewed as the safest of safe havens for investors.
But with the bottom slipping under telecom stocks, the regulator appeared to dilute his earlier position, saying the proposal on per-second billing was at an initial stage and too much was being read into the issue.
TRAI chairman JS Sarma also said that mobile operators were free to oppose the scheme and the regulator would consider their opinion during the consultation process.
The chief of Bharti Airtel said tariffs were best left to market forces. "We had a system for forbearance for years now. The regulators and the government should let it remain like that and let market forces decide. Everyday, you have some other operator or announcing some new plans, so we are at it to provide the best for our customers," Bharti chairman Sunil Mittal told ET NOW.
"The telecom sector in India has done very well and therefore, if you ask me, I strongly think the regulator should continue with the existing policy and not interfere."
MUMBAI: The mobile phone sector, long the darling of the markets, saw itself facing the uncomfortable prospect of investors hanging up on it on tuesday on fears that a renewed tariff war may bring its dream run of profit growth to an end and could force smaller players to sell out or shut shop.
Shares in mobile firms were pummelled for the second straight day, leaving analysts wondering if the sector was seeing a fundamental re-rating as investors increasingly worry about the impact of the bruising price war on its profit and revenue outlook.
Bharti Airtel, the country's largest wireless service provider, slumped 10% to close at Rs 359.40, taking losses in just two trading sessions to 17%, the steepest two-day fall in almost a year. Reliance Communications tumbled 11% and Idea, the country's fourth-largest mobile operator, fell 8%.
Mobile tariffs in India are already the lowest in the world thanks to fierce competition, but the intensity of the bloodletting looks set to increase as operators come up with price plans to rival those unveiled by Reliance Communications (RCOM). The Anil Ambani-controlled firm on Monday announced the slashing of tariffs across the board for local, roaming and long-distance calls to 50 paise per minute.
Apart from the RCOM tariff cut, suggestions from the Telecom Regulatory Authority of India on Monday that companies shift to charging customers for usage in seconds instead of minutes now, has compounded the woes for a sector that was not so long ago viewed as the safest of safe havens for investors.
But with the bottom slipping under telecom stocks, the regulator appeared to dilute his earlier position, saying the proposal on per-second billing was at an initial stage and too much was being read into the issue.
TRAI chairman JS Sarma also said that mobile operators were free to oppose the scheme and the regulator would consider their opinion during the consultation process.
The chief of Bharti Airtel said tariffs were best left to market forces. "We had a system for forbearance for years now. The regulators and the government should let it remain like that and let market forces decide. Everyday, you have some other operator or announcing some new plans, so we are at it to provide the best for our customers," Bharti chairman Sunil Mittal told ET NOW.
"The telecom sector in India has done very well and therefore, if you ask me, I strongly think the regulator should continue with the existing policy and not interfere."
Sunday, October 4, 2009
Pilot, cabin crew member scuffles on Air India flight, injured
New Delhi, Oct 3 (PTI) A pilot and the member of a cabin crew were injured when they rpt they scuffled with each other mid-air on Air India's flight from Sharjah to Lucknow this morning.
"A pilot and a cabin crew of Air India's IC-884 Sharjah-Lucknow-Delhi flight were injured after they had a scuffle over some issues mid-air," an airline official told PTI.
The incident took place at around 0430 hours when the flight was over Pakistan, he said adding the flight with 106 passengers and seven crew member had left for Lucknow at 0035 hours Sharjah time.
The flight reached Lucknow at 0600 hours where the matter was reported.
The airline management has derostered the pilot and the cabin crew member till the investigation into the incident was over.
"A pilot and a cabin crew of Air India's IC-884 Sharjah-Lucknow-Delhi flight were injured after they had a scuffle over some issues mid-air," an airline official told PTI.
The incident took place at around 0430 hours when the flight was over Pakistan, he said adding the flight with 106 passengers and seven crew member had left for Lucknow at 0035 hours Sharjah time.
The flight reached Lucknow at 0600 hours where the matter was reported.
The airline management has derostered the pilot and the cabin crew member till the investigation into the incident was over.
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