cmyk
PAGE 13
HYDERABAD
MONDAY 10 | SEPTEMBER 2012
QUOTE OF THE DAY
I’m confident
that we will be
able to
overcome the
difficulties
— Pranab Mukherjee
President
biz briefs
AGRICULTURE SHARE
IN GDP DECLINES
New Delhi: Share of agricul-
ture in the GDP has dropped
by five per cent in the last
eight years to 14 per cent,
due to higher growth in other
sectors. Agriculture and
allied sectors which used to
contribute 19 per cent of
GDP in 2004-05 has come
down to 14 per cent in 2011-
12 at 2004-05 prices, accord-
ing to government data. The
percentage has been declin-
ing gradually with the pass-
ing of years.
BOSCH TO SUSPEND
WORK AT 2 UNITS
New Delhi: Auto component
maker Bosch is suspending
production at its Jaipur and
Bangalore plants on specific
days in September with an
aim to prevent inventory pile
up due to slowdown in
domestic commercial vehicle
segment. “For the last three-
four months, the commercial
vehicle segment is not good.
We are suspending produc-
tion for a short period of
time as stocks were going
up. We don’t want inventory
to pile up,” Bosch Ltd MD
V.K. Viswanathan said.
at a glance
ANDHRA BANK
CUTS RATES ON
CAR, HOME LOANS
DC CORRESPONDENT
HYDERABAD, SEPT. 9
In the backdrop of various
banks cutting interest rates
on loans, state-run Andhra
Bank has followed suit by
slashing interest rates on
home, vehicle, mortgage
and gold loans.
After the rate cut, the
interest rate on housing
loans is 10.5 per cent for
loans up to `30 lakh and
10.75 per cent for loans over
`30 lakh.
The maximum repayment
term is extended from 20 to
30 years to offer lower EMI
amount to borrowers.
The new rates will come
into effect from September
10, 2012 to up the festive fer-
vour, the bank said in a
statement.
Car loans will now be
cheaper at an interest rate
of 11.50 per cent for repay-
ment tenure up to 36
months and 11.75 per cent
for those repayable beyond
36 months.
The rate of interest on
gold loans has been
reduced to 13 per cent.
Interest rate on mortgage
loans is cut by 50 basis
points at 15.50 per cent.
PANTALOON DEAL
GETS PETER
ENGLAND’S NOD
New Delhi: Aditya Birla
group firm Peter England
Fashions & Retail’s board
on Sunday approved the
demerger of Pantaloon for-
mat business and fixed the
share swap ratio at 1:5 —
meaning for every five
shares of Pantaloon, the
shareholders will get one
Peter England share.
These developments mark
a step closer towards
Aditya Birla Group’s pro-
posed acquisition of majori-
ty stake in Kishore Biyani-
led group’s flagship
Pantaloon format apparel
retail business unit.
“The board of directors of
Peter England Fashions
and Retail Ltd (PEFRL), a
wholly-owned subsidiary of
Aditya Birla Nuvo Ltd, at
its meeting, approved the
scheme of arrangement for
the demerger of
‘Pantaloons Format’ busi-
ness into PEFRL,” Aditya
Birla group said in a state-
ment.” — PTI
Talks are on with Posco for set-
ting up a joint venture in Bokaro,
says SAIL chairman C.S. Verma
■ Indians are among the 10 lowest paying employers in IT
Indian IT pays less
New Delhi, Sept. 9:
Indian companies are
among the world’s 10 low-
est paying employers in
the IT space, with their
mid-to-senior level staff
getting an average salary
of $38,767 (about `21.5
lakh) per annum — less
than one-fourth of the IT
pay package at globally
top-paying Swiss firms.
Salaries in the IT sector
of Switzerland are the
highest in the world at an
average of $168,211 (about
`93 lakh) per annum, as
per a study titled ‘World
wide IT Salary 2012’.
The study, conducted by
global recruitment service
provider MyHiringClub
.com, has ranked India at
eighth spot among 10
worst IT paymasters glob-
ally.
PSUs SEEK NOD
FOR BUY BACK
OF SHARES
New Delhi, Sept. 9:
Sitting on cash reserv-
es of over `1 lakh crore,
four state-owned firms
— NTPC, Coal India,
SAIL and NMDC —
have sought sharehold-
ers’ nod for buying
back shares, a move
that would help the
government meet the
disinvestment target
by selling its stakes in
them.
The government, whi-
ch has set an ambitious
disinvestment target of
`30,000 crore for 2012-13
and contain the fiscal
deficit, has not been
able to kick off share
sale plan of any of the
PSUs due to volatile
market conditions. The
PSUs according to their
annual reports had
cash and cash equiva-
lents of `1,01,027 crore
as on March 2012.
Coal India had cash
balance of `58,202 crore
in 2011-12,
NMDC, NTPC and
while
SAIL had `20,264 crore,
`16,146 crore and `6,415
crore respectively as
cash and cash equiva-
lents.
In the notices to the
shareholders for their
annual general meet-
ings, all the four firms
have put forth resolu-
tions to amend their
Article(s) of Associa-
tion to enable them in
buying back their own
shares. In March, the
department of public
enterprises had direct-
ed all PSUs to amend
their Articles of
Association to provide
for buyback of shares,
if such provisions did
not exist.
Session washout a dampener
BUOYED BY the ann-
ouncement of the Euro-
pean Central Bank’s
bond buying program
and hopes of a third
quantitative easing
from the US Fed, nearly
all the equity markets
across the globe posted
their biggest gains
since early June.
Both the benchmark
indices the Sensex and
the Nifty gained more
than 1.5 per cent to
close at 17,684 and 5,359
during the week ended.
Positive news of the
possible postponement
of the implementation
of retrospective tax leg-
islation General Anti-
Avoidance Rules was
offset by negative sug-
gestions to do away
with capital gains tax
and hike the securities
transaction tax.
After the ‘disastrous’
Parliament Session,
analysts are concerned
over a possible rating
downgrade.
In the coming week,
watch out for the US
Federal Open Market
Committee meeting,
unemployment and the
index of industrial pro-
duction (IIP) data from
the euro zone and WPI
inflation and IIP data
on the home front.
For the week ahead
chartists predict a trad-
ing range of 17,350 to
18,100 for the Sensex
and 5,250 to 5,475 for the
Nifty. Immediate sup-
ports for the indices are
at 17,450 and 17,250 and
5,285 and 5,220.
AVERAGE SALARY PER ANNUM
■ Switzerland $1,68,211
■ Belgium $1,44,980
■ Denmark $1,36,542
■ The US $1,28,632 are highly sought-after in
■ The UK $1,27,890 India and there is strong
INDIA CHINA
$38,767 $38,624
The study, which was
conducted in August 2012,
took into account the aver-
age salaries for people
with four and more years
of experience for the
Indian and other compa-
nies. The report compared
the total annual cash com-
pensation and total remu-
SEBI PROBES BROKERS FOR MONEY LAUNDERING
FM tells other ministries
not to ask for more funds
New Delhi, Sept. 9: Faced
with high fiscal deficit, the
finance ministry has asked
other ministries not to seek
additional funds over and
above the budgetary alloca-
tions.
In view of the financial
position of the central gov-
ernment, finance minister
P. Chidambaram in his
recent meeting with finan-
cial advisers of different
ministries has said that
they should not “expect any
sizeable increase” in the
allocations during the
course of this fiscal.
In the usual course, the
finance ministry, on the
basis of inputs it gets from
other ministries, seeks
approval of Parliament for
raising the budgetary allo-
C. Kutumba Rao
Market Khabar
FUTURES AND OPTIONS
Barring the spike on
Friday, volumes were
lacklustre in derivative
segment during the week
ended.
Sentiment indicators
like open interest,
implied volatility, Put-
Call Ratio (PCR) and VIX
suggest some skepticism
over the ongoing rally.
However, savvy punters
tip strong rally in Nifty to
5,600 level in next few
weeks.
In the option market the
highest concentration of
Nifty puts and calls is at
5200 and 5400-strikes
respectively.
■ Renewed buying inter-
est was seen in IT, Auto
and Realty stocks.
■ Use corrections to buy
TCS, Infosys, HCL Tech
and Hexaware.
■ Bajaj Auto and Maruti
look good for some more
gains.
■ Pullback rally in realty
stocks may not last long.
Use bulges to exit from
(C. Kutumba Rao is a Hyderabad-based stock market
analyst. The views expressed and the recommendations
made are those of the author. Readers are advised to
approach their consultants before making any investment
decisions. This newspaper is not liable for decisions made
on the basis of this column.)
Pepsico is expanding its Kurkure
range of products with an aim
to stay ahead of rivals
Experienced IT managers
competition to attract
and retain skilled employ-
ees. — Worldwide IT
Salary 2012 report
neration information for
IT staff in more than 6,000
companies across 40 differ-
ent countries and found
that employers in western
Europe are the best pay-
masters.
It also found that com-
pensation in developed
countries focus more on
I 35 stock brokers have been probed by capital
market regulator Sebi for possible lapses in con-
trols related to money laundering and terror
financing, and further action may be taken soon in
these cases.
I The brokers have been probed for their compli-
ance to know your client rules, their due diligence
procedures and their compliance to various anti-
money laundering and combating financing of ter-
rorism (AML and CFT) related regulations.
I Without naming the individual entities where dis-
crepancies were observed under the prevention of
money laundering rules, Sebi in its annual report
2011-12 informed that actions with regards to these
entities are in progress.
I While the stock exchanges and depositories have
issued directions to 300 entities for their non-
compliance with relevant provisions, another 45
entities have been slapped with monetary penal-
ties amounting to `2,48,850.
SHOESTRING BUDGET
Chidambaram, according to
sources, has also asked the
ministries not to formulate
new centrally sponsored
schemes (CSS) as they were
“unlikely to find acceptabili-
ty in the ministry of
finance.”
cations through supple-
mentary demands for
weak counters.
■ Banks and capital
goods counters continued
the trade range bound
with downward bias.
■ Global liquidity may
trigger minor rally in
metals. Stay invested.
■ With several large cap
and midcap pharma sto-
cks scaling 52-week highs,
some irrational exuber-
ance may have started
warn industry watchers.
Tread carefully.
■ Stock futures looking
good are Aurobindo Pha-
rma, Biocon, Cipla, Dish
TV, Dabur, Exide Indus-
tries, HCL Tech, IRB
Infra, Reliance Indust-
ries, SAIL, Tata Motor-
DVR and Welspun Corp.
The true art of trading
lies in the ability to juggle
conflicting pieces of evi-
dence and come up with a
balanced judgment, supe-
rior on average to the col-
lective judgment already
rendered in the market-
place.
variable factors, such as
bonus schemes, to attract
staff. At the same time, the
emphasis remains on cash
compensation in
lower-paying countries.
the
“Although pay in Asia
and Eastern Europe tends
to be much lower, it would
be difficult for firms to
outsource the IT manager
role to these regions. Inste-
ad, we may see a migra-
tion of IT skills from lower
paying nations to places in
Western Europe and Nor-
th America,” MyHiring
Club.com CEO Rajesh
Kumar said.
Interestingly, IT man-
agers in India fare better
than their Chinese coun-
terparts, where the aver-
age annual compensation
package were lower at
$38,624. — PTI
grants.
The finance minister has
advised the ministries not
to seek additional funds at
the meeting that was called
to review the progress of
plan and non-plan expendi-
ture.
The directive is aimed at
containing the fiscal deficit
which, in the first four
months of 2012-13, stood at
51.5 per cent (`2.64 lakh
crore) of the budget esti-
mates.
Mr Chidambaram,
according to sources, has
also asked the ministries
not to formulate new cen-
trally sponsored schemes
(CSS) as they were “unlike-
ly to find acceptability in
the ministry of finance.”
— PTI
STOCK SCAN
■ Soyabean farmers and
solvent extraction compa-
nies of this crop are reap-
ing twin benefits of a
bumper crop and super
remunerative margins due
to a devastating drought in
the USA. Sanwaria Agro
Oils is one of the largest
companies in soya bean
processing with a crushing
capacity of 1000 TPD and
refining capacity of 150
TPD. The company has
recently also set up rice
processing capacity of 200
TPD. Excellent first quar-
ter results (a 350 per cent
increase in net profits) and
benefits of sharp jump in
global soya oil meal prices
spell good times for the
company. Buy at current
levels for a target price of
`75 in the next few months.
■ Claris Lifesciences is one
of the largest sterile
injectables pharma firms
in India with a market
presence in 91 countries
worldwide. Products of the
company range across var-
ious therapeutic segments,
including anesthesia, criti-
cal care, anti-infectives,
renal care, infusion thera-
py, enteral and parenteral
nutrition and oncology.
After falling sharply from
its IPO offering price dur-
ing the course of last year,
the stock has been consis-
tently moving up on sus-
tained buying from FIIs in
the past few months. Buy
on declines for a target
price of `350 in the medi-
um-term.
Carmakers dole out
offers to push sales
New Delhi, Sept. 9: Car
makers, including Honda
Siel Cars, Tata Motors,
Ford India and Maruti
Suzuki, are offering dis-
counts worth up to around
`60,000 in a bid to cash in
on the festive season amid
a sluggish market.
The companies are offer-
ing customers various
goodies in the form of cash
discounts, free insurance,
loyalty exchange bonus
and accessories during
the forthcoming festive
season.
“We are offering special
schemes for our cus-
tomers during the festival
season. A `1 insurance
programme has been
offered at Brio, City, Civic
and Accord,” Honda Siel
Cars India senior vice-
president (sales and mar-
keting) Jnaneswar Sen
said. Depending upon the
model, benefits and loca-
tions, the amount of dis-
counts may go up to
`60,000, he added.
Likewise, Ford India is
also offering huge dis-
counts to come out of the
slowdown impact. “We
are offering gift vouchers
and loyalty exchange bon-
us to our customers. We
started these offers during
Onam in Kerala and we
received very good respo-
nse,” Ford India vice-pres-
‘Twitter traffic
can’t be blocked’
New Delhi, Sept. 9: Citing
technical problems, tele-
com operators have refused
to adhere to an order of
home ministry for blocking
Twitter traffic from specif-
ic states including Gujarat,
Kerala, Assam and UP in
the backdrop of social
media being used to fan
communal trouble.
The department of tele-
com was requested to con-
sider technical feasibility
of a request from the home
ministry for monitoring
Twitter traffic.
“Twitter Inc may be
directed to all traffic ema-
nating from addresses in
the states assessed by the
central intelligence agen-
cies to be sensitive in the
current prevailing situa-
tion in Kerala, Assam,
Tamil Nadu, Andhra
Pradesh, Maharashtra,
BUSINESS
MARUTI SUZUKI
■ Discounts on the Alto,
WagonR and Estilo between
`30,000 and
`35,000 in the
form of free
accessories or
cash vouchers
TATA MOTORS
■ Discounts on passenger
vehicles range between
`10,000 and `50,000
depending on the model
ident (marketing) Anurag
Mehrotra said.
“If any customer comes
to buy a new vehicle from
us by exchanging his old
Ford car, we are giving
loyalty bonus of up to
`20,000,” he said. Besides,
the company is also pro-
viding free insurance,
along with some other
benefits, of up to `28,000 to
the customers of its small
car Figo, he added.
Homegrown auto major
Tata Motors is also offer-
ing various discounts and
schemes for its passenger
vehicles. “At present the
discounts on our passen-
ger vehicle range between
`10,000 and `50,000 depen-
ding on the model,” a com-
pany spokesperson said.
Similarly, market leader
Maruti Suzuki India is
Karnataka, Gujarat and
Uttar Pradesh,” official
documents said.
This was conveyed to
BSNL, Tata Communica-
tions, Bharti Airtel, Idea
Cellular, Reliance Comm-
unications as well as the
Internet Service Providers
Association of India
(ISPAI).
In its reply, Tata Commu-
nications said it does not
allocate internet protocol
addresses to its customers
on a state-wise basis.
“Specific area wise/state
wise blocking of website is
technically not feasible,” it
said. BSNL also said it is
not possible to block web-
site on circle basis and
Reliance Communications
said the blocking has to be
at the gateway locations
and can’t be made specific
to area. — PTI
cmyk
FORD MOTORS
■ Free insurance, along
with some other
benefits, of up to
`28,000 to the
customers of its
small car Figo
■ Accessories worth
`52,000 to buyers of
its sports utility
vehicle Endeavour
■ A loyalty bonus of up
to `20,000 for the
exchange of old Ford
cars
also offering discounts on
models like Alto, WagonR
and Estilo between `30,000
and `35,000 in the form of
free accessories or cash
vouchers or a combina-
tion of both.
Even luxury car makers
are also giving various
offers to sell their prod-
ucts. Mercedes-Benz India
launched its festival cam-
paign on September 1 and
it will go on till October
15. “During this period
Mercedes-Benz India will
gift customers, who pur-
chase the three pointed
star, a unique opportunity
to meet the Star of the rac-
ing world — Michael
Schumacher along with
an all-expenses paid trip
to watch the Formula 1
race,” the company said.
— PTI
TELCOS TOLD TO
PROVIDE INFO ON
ROAMING PACTS
DC CORRESPONDENT
NEW DELHI, SEPT. 9
Telecom department (DoT)
has asked mobile operators
to provide their intra-circle
roaming agreements to the
security agencies in one
month to allow them to
effectively intercept mobile
communication.
Telecom Enforcement,
Resource and Monitoring
(TERM) cells will also have
to be informed about intra-
circle roaming arrangem-
ent (I-CR) entered by the
service providers either as
an ICR seeker or as an ICR
provider.
“Starting October 1, half-
yearly updated details reg-
arding ICR arrangements
are to be provided to secu-
rity agencies and respec-
tive Term cells on April 1
and October 1, every year,”
a DoT communique said.