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10 July 2012 Current Events India to get its third stock exchange in MCX-SX


Sebi has granted permission to MCX-SX to begin operation as a full-fledged stock exchange like NSE and BSE. This comes after a four years of wait and tussle which went up to the Supreme Court. This new development may mean a threat to NSE’s virtual monopoly and would initiate more competition in market. MCX-SX at present is involved in trading of foreign currency derivatives the permission to which it got in September 2008.

There are some conditions though specified by Sebi like the promoters will need to bring down the shareholding in MCX-SX to 5% in 18 months, reduction in entitlement to equity or rights over equity in 3 years to shareholding limit of 5%. Also the two promoters’ right to vote cannot be beyond 5% of MCX-SX's equity capital. 


India Inc seeks stimulus package from the government


India Inc has, once again requested the government for an “economic revival package”. But any relief in the lines of the stimulus offered in 2008-09 is not possible that was stated by C Rangarajan, Prime Minister’s Economic Advisory Council (PMEAC) chairman.  He specified that monetary action will depend on easing out of inflationary pressures. He also stated that situation in India is unique from other countries as we have a high growth rate as well as high level of inflation. 

Some of the proposals put forward by India Inc. comprising CII, Assocham PHD Chamber of Commerce includes speeding up of pending reforms, the Goods and Services Tax (GST) implementation from April 1, 2013, deduction of 100 base points in the repo rate and cash reserve ratio and floating of infrastructure bonds for NRIs and people of Indian origin. Whereas Rangarajan has specified that for the RBI to adopt a mild stance the non-food manufacturing inflation has to show a dip. In 2008-09 government had given a Rs 1.86 lakh crore stimulus package. 


India to get its third stock exchange in MCX-SX

Sebi has granted permission to MCX-SX to begin operation as a full-fledged stock exchange like NSE and BSE. This comes after a four years of wait and tussle which went up to the Supreme Court. This new development may mean a threat to NSE’s virtual monopoly and would initiate more competition in market. MCX-SX at present is involved in trading of foreign currency derivatives the permission to which it got in September 2008.

There are some conditions though specified by Sebi like the promoters will need to bring down the shareholding in MCX-SX to 5% in 18 months, reduction in entitlement to equity or rights over equity in 3 years to shareholding limit of 5%. Also the two promoters’ right to vote cannot be beyond 5% of MCX-SX's equity capital. 

India Inc seeks stimulus package from the government

India Inc has, once again requested the government for an “economic revival package”. But any relief in the lines of the stimulus offered in 2008-09 is not possible that was stated by C Rangarajan, Prime Minister’s Economic Advisory Council (PMEAC) chairman.  He specified that monetary action will depend on easing out of inflationary pressures. He also stated that situation in India is unique from other countries as we have a high growth rate as well as high level of inflation. 

Some of the proposals put forward by India Inc. comprising CII, Assocham PHD Chamber of Commerce includes speeding up of pending reforms, the Goods and Services Tax (GST) implementation from April 1, 2013, deduction of 100 base points in the repo rate and cash reserve ratio and floating of infrastructure bonds for NRIs and people of Indian origin. Whereas Rangarajan has specified that for the RBI to adopt a mild stance the non-food manufacturing inflation has to show a dip. In 2008-09 government had given a Rs 1.86 lakh crore stimulus package. 

Eight Indian companies in Fortune's top 500, IOC and RIL in top 100

Eight Indian companies have made it to the coveted list by Fortune magazine of world's 500 largest companies.  Indian Oil with 83rd spot(98th last year), and Reliance Industries with 99th position ( last year 134th) make it to the top 100.

Out of these eight companies five are state-run. The others who figure in the top 500 are Tata Steel, Tata Motors, Bharat Petroleum, Hindustan Petroleum and Oil & Natural Gas and State Bank of India. The list also includes Citigroup, ArcelorMittal, which are headed by people of Indian origin.

Rupee will stick to 50 mark : Kaushik Basu

The rupee will stick to the 50-mark in the coming months, that is what Kaushik Basu, chief economic adviser to the Union finance ministry, expects. He specified that the present status of the rupee that of 55-56 to the dollar is not desirable but we should not expect it to come down to 47-48 mark as it is not realistic. 

The rupee will hover around 50 mark in next few months. Even though there were lot of changes it is not possible to sell dollars to control the sharp dip as there is this fear that it may lead to reduction in foreign exchange reserves. 

Declining rupee stops Indian firms from benefiting global prices fall

The fall in global commodity prices has not benefited the Indian companies much due to declining rupee. In some of the cases even if there is a substantial dip in prices here in India the companies could reap only marginal benefit. In fact the declining rupee in some cases has resulted in rise of prices though the global price may have fallen. 

Global prices have plunged in case of industrial raw materials but decline in rupee term is marginal. Import duties and freight rates further add up to the cost of imports.

Facebook will turn recruiter soon

Facebook will turn recruiter soon by collaborating with the present job-posting companies and would launch a job-posting board. It is believed that BranchOut, Jobvite and Work4Labs will be some of the companies which will team up with Facebook.

The popular social networking site  intends to build a centralized engine for job posting. Keeping in mind LinkedIn’s success in recruitment and job posting market being a lucrative one, Facebook’s entry is more obvious in this domain. 

72 per cent plunge in M&A deals in the 2nd quarter: Ernst & Young
There has been a sharp dip in the value of merger and acquisition (M&A) deals in the country during Q2 of this year over Q1 as per Ernst & Young report.The plunge was of 72 per cent from $10.5 billion in first quarter of 2012 to $3 billion in the second quarter.
Domestic factors as well as global uncertainties have adversely affected the expansion plans of companies. In fact the number of M&As including domestic entities has also dropped from 230 deals in the January-March quarter to 168 deals in April-June quarter.
9% growth out of question, 8 % growth not 'God given right' : Montek
The global economic environment has started pinching country’s growth projection and there will be a dip, is now official. Planning Commission Deputy Chairman Montek Singh Ahluwalia admitted that it would require major efforts on part of the government to achieve a GDP expansion of 8 per cent and it should not be termed as “God given right”.
As mentioned in the in the XII Plan Approach Paper achieving an average of 9 per cent during 2012-17 was not feasible. It can be between 8-8.5 per cent and that too would require major effort. He also specified that there will be an internal discussion in the Planning Commission for scaling down of the growth target for the five year period. Ahluwalia also added there is only change in the numbers, the work on the plan is on track. 
Sensex up by 76 points to a three month high

The positive trend was there in the stock market for the third consecutive day as the Sensex rose to 76 points or 0.43 per cent  to close at 17,538.67. This was the highest in three months. 

FMCG, banking and capital goods scrips gained in the day. Out of the 21 gainers in the 30-share index were Cipla, ICICI Bank, Tata Motors and ITC. 

The BSE benchmark index though opened on a higher point but soon slumped to the day's low of 17,423.45 due to rupee falling below 55-level a US dollar.

The 50-share National Stock Exchange index Nifty rose by 24.75 points or 0.47 per cent to 5,327.30.

Kingfisher gets time, Vijay Mallya's villa to be sold

Kingfisher Airlines has got some more time to come up with a plan for its turnaround. Its bankers will be selling off its two properties to recover a small percentage of what the airlines is supposed to pay them. 

The airlines' domestic market share dipped from second to last when most of its fleet was grounded. It was in debt of $1.4 billion at the end of March. Its loans were declared in default by most of its banks, majority of which are state-run. 

The lenders were thinking of options  to recover their money. The airlines had already got a warning from the government that its flying licence will be canceled in the absence of adherence to safety norms, which included financial viability.

 

 

RBI will watch over monsoon for policy review

In the upcoming first quarter review of monetary policy 2012-13 on July 31, RBI will watch over the progress of monsoons.  As the progress had a direct effect on inflation in the last 2-3 days the RBI Deputy Governor Subir Gokarn stated RBI will put close watch on this aspect.

Monsoon has a direct bearing on the Indian economy as 60 per cent of the cultivable land in the country is not irrigated.

RBI had kept its rate unchanged in the mid quarter policy review on June 18 for various reasons which included inflationary concerns and deteriorating global situation.

US 'bring jobs home' attitude, a cause of concern for Indian IT: Experts

Indian IT industry which depends heavily on foreign contracts has a new reason for worry. The US government has decided to stick by the onshore model for two new projects. There has been a shift to anti-offshoring model in the US and the US  government has lately included a mandatory clause for no offshoring in contracts.

President of NASSCOM Som Mittal has opined that this does not mean that business will be denied. Further since there is shortage of highly skilled resources in the US anti-offshoring will be restrictive. The Presidential elections is believed to be the cause for ‘bring jobs home’ attitude in the US. This is going to affect the Indian companies, that is the buzz in the Indian IT space. 

Telecom stocks up in morning trade on BSE

Shares of telecom firms went up to four per cent after reports came in that the existing players may not have to dole out the auctioned arrived price for the additional spectrum.Bharti Airtel opened on a bullish note and went up 4.09 per cent over its earlier closing price.  Shares of  Idea Cellular spiked 4.56 per cent over its last closing price to Rs. 81.25.

Reliance Communications performed 2.49 per cent increase over its previous closing price and reached an early high of Rs. 65.75. The mood was upbeat with the likelihood of the Cabinet discussing the contentious issue of DoT’s proposal. 

Foreign, domestic tourism rises in India

For the 3rd consecutive year number of foreign tourists increased in 2011 while the domestic tourism witnessed a double digit growth as stated by the tourism ministry.

The number of Foreign Tourist Visits (FTVs) visiting India in 2011 was 19.5 million; it was 17.9 million in 2010 and 14.4 million in 2009. There was a growth of 8.85% over 2010 figures whereas in 2010 there was growth of 24.6% over 2009.

Domestic tourism grew at a double digit rate in 2011.

851 million domestic tourist visits happened during 2011 compared to 748 million in 2010 and 669 million in 2009. There was increase at a rate of 13.8% over 2010 in comparison to 11.8 percent in 2010 over 2009.




FAQs and Answers on Indian History and Geography
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