Spain Threatens Deficit-Troubled Regions, Offers Help

Spain’s government threatened regions that are having trouble meeting deficit goals while offering to help them regain access to bond markets at a time when the nation is trying to restore investor confidence.

Several Spanish regions risk missing their budget-deficit target of 1.5 percent of

RBI may hold on policy stance amid high inflation: Experts

R

eserve Bank is unlikely to soften its monetary stance in its policy review later this month due to high inflation even though sluggishness in industrial output growth for May calls for cut in policy rates, say experts.

The Reserve Bank of India (RBI) is guided by inflationary expectations. Inflation is expected to remain high, HDFC Bank chief economist Abheek Barua said.

"I do not think there will be either infusion of liquidity or cut in policy rates by the RBI in its quarterly policy review," he said.

Crisil chief economist Deepak Joshi said, "Monetary policy is not going to be changed. I think RBI will keep it on hold. Going by the assessment of the economy, I think there will not be any rate cut."

The index of industrial production (IIP)-- gauge of industrial activity in terms of production -- showed a just 2.4% growth in May. It was much below than 6.2% growth during the same month a year earlier.

However, IIP numbers for May are better than the previous month's 0.9% contraction.

HSBC Global Research said though IIP picked up on an improved sequential momentum and last year's low base, inflation is still high.

"Growth remains moderate and will remain constrained going ahead, but high

TCS rubs salt in Infosys' wounds with strong Q1 earnings

India's top software services provider Tata Consultancy Servicesreported slightly better-than-expected results for April-June, a stark contrast to its rival and number two Infosys , which had earlier in the day disappointed the street with a lower-than-expected quarterly profit and cut its full year US dollar revenue guidance sharply.

TCS first quarter net profit rose 38% year-on-year (14.6% sequentially) to Rs 3,280.5 crore,

India can grow by 8-9% with reforms: Singapore PM

I

ndia has the potential to grow at 8-9% over the next 5-10 years by focusing on its intrinsic strengths and taking the Opposition on board to push economic reforms, said Singapore Prime Minister Lee Hsien Loong today.

 

"India would be able to grow not just at seven per cent, but 8-9% for another 5-10 years easily,

Moody's downgrades Italy, warns of further cut

(Reuters) - Moody's on Friday surprised markets by downgrading Italy's government bond rating by two notches to Baa2 and warned it could cut it further, piling on pressure just hours before the country launches its latest bond sale.

Infosys, HCL and Wipro among World’s top 10 outsourcing companies

Infosys, HCL Technologies and Wipro Technologies are among the top 10 outsourcing companies, says a survey on world’s 100 largest such firms.

In the latest ’20012 Global Outsourcing 100′, compiled by the International

Indirect tax collection below target, up 13.8% in April-June

Indirect tax collections during the April-June period rose by 13.8 percent to over Rs 1.07 lakh crore, much slower than the targeted 27 percent  growth for this fiscal.

“The overall indirect tax figure for April-June 2012 stood at Rs 1,07,959 crore,

Govt should restrict exercising ownership rights in banks: RB

The Reserve bank  expressed concern over the government “occasionally exercising” its ownership rights in banks and financial institutions through channels outside of their boards, and asked it to show exemplary corporate governance.

“There are questions about how the government will play out its ownership role.

IIP OK, but forget about a rate cut

The Index of Industrial Production (IIP) number for May shows a 2.4 percent growth, against a contraction of 0.9 percent in the previous month. This is above what the Street expected—around 1.8 percent—but a closer look at the figures suggests there are still several pressure points which continue to plague the India growth story. Those hoping for another round of monetary easing by the Reserve Bank of India (RBI) will have to wait longer as a rate cut on 31 July, when RBI meets again for its quarterly review.

On a sectoral basis, mining was broadly unchanged, down—0.9 percent, manufacturing rose 2.5 percent, led

EU Trials New Crisis Model In Spain Trading Budget Cuts For Time

European leaders are testing the latest version of their debt crisis strategy in Spain, granting Prime Minister Mariano Rajoy more time to reduce the budget deficit in exchange for deeper spending cuts.

Rajoy yesterday announced 65 billion euros ($80 billion) of austerity measures in a

Will TCS steal a march over Infy yet again?

India's top IT services provider Tata Consultancy Services  is expected to put up a better first quarter performance than rival Infosys which will announce its first quarter results early Thursday. The two companies have had a contrasting performance over the last few quarters, and the Tata Group company is expected to continue to outperform its Bangalore-based rival.

Infosys has guided for 8-10% US-dollar revenue growth this year, and

This Diwali, MCX-SX all-set to give BSE, NSE run for money

Come Diwali, India will have a third equity trading platform. After a two-year long battle that saw MCX-SX go all the way to the Supreme Court, SEBI has finally given the exchange conditional approval. MCX-SX is now gearing up for the next step and it's not going to be easy, reports Sajeet Manghat and Animesh Das of CNBC-TV18.


 

Jignesh Shah, vice-chairman, MCX-SX, says that we will do in toto what the regulator said.

A pithy end to a two-year long regulatory battle that was fought on multiple battle-fields, including the Supreme Court, MCX-SX has finally received the go-ahead to deal in interest rate derivatives, equity, equity derivatives and the wholesale debt segment and it will now take on established players like BSE and NSE. But the conditional SEBI nod means that the exchange's promoters FT, and MCX have 18 months to reduce their combined stake to under 5%.

"FT hold 5%, MCX the commodity exchange will also hold 5%, now the combined stake will be 5% or cut down to 5%," says Shah.

MCX has to reduce its entitlement to warrants via divestment within three years. Starting September 2012, it also has to submit, a quarterly status report on the divestment of equity and warrants. Operationally, it will have to raise capital, either via equity, internal accruals, or other options, for future funding set-up a clearing corporation and a depository.

However, for now, its current net worth of Rs 250 crore is enough to start operationing in new segments. The more immediate problem will be enrolling members to its segments.

Joseph Massey, MD & CEO, MCX-SX, says that there will be part, it will be a strategic call, partly it will be nuts and bolts issue, while the infrastructure continues to be state of readiness there are things that are time consuming. One of them happens to be getting members enrolled, registered and registration process happens to be for every segments. This is a finite time and I can say it will take couple of months before we launch other segments.

But MCX-SX is confident it will be able to change the dynamics of the equity markets, just like it did for gold futures.

"95% of the gold which was imported in India was 995, and hedgers require that perfect co-relation and that was the difference and we launched 995, others launched 999 within three months liquidity was here, then it got copied including the spelling mistakes," says Shah.

The board of MCX-SX will soon meet to take its business plan forward and while MCX-SX will have to share these with the regulator as part of its monthly development report, the exchange is confident it will give BSE and NSE a run for their money. (curtsey : money control)

Rupesh Yatesh Dalal
Head Research Department

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Mahindra Satyam in talks to buy European aerospace engineering firm

IT services provider Mahindra Satyam is in discussions to acquire an aerospace engineering firm in Europe. The acquisition is part of a larger plan by the company to improve its offerings in engineering services, and in the healthcare and financial services verticals. 

 

Satyam is likely to finalise the transaction in a couple of months, said two senior

Investors hope Infosys results may throw light on cash pile mystery

A few months ago iconic tech firm Apple broke away from its philosophy, and that of its iconic co-founder Steve Jobs, by announcing dividends and a share buyback programme for $45 billion.

Wall Street greeted Apple's move to distribute part of its $100-billion hoard with cheers. Now,

Air India Boeing Dreamliners grounded by bureaucracy

(Reuters) - Three of Boeing's(BA.N) cutting-edge 787 Dreamliners painted in Air India colours are parked in South Carolina, waiting for the ailing state carrier to pay for them and take possession.

The 787, which promises to help modernise Air India's ageing fleet, has instead

Little Q1 growth seen for TCS, Infosys

(Reuters) - Uncertainty about spending by U.S. and European clients in a weak global economy will likely weigh on the earnings of Indian outsourcers, dampening hopes that demand will pick up in the second half of the year.

India's $100 billion-a-year information technology and back-office outsourcing industry

Govt mishandled GAAR, scaring foreign investors: Sinha

Amid controversies over Vodafone tax matter and GAAR, BJP hit out at the government saying it has mishandled these issues creating scare and uncertainty among the foreign investors.

The main Opposition party suggested that Prime Minister Manmohan Singh 

Why you should be worried about EU unemployment

Unemployment in the eurozone is a problem that will need to be addressed soon. According to a report by Kotak Securities, the unemployment rate hit 11.1 percent in May (17.56 million), the highest on record for the bloc. And, going by the look of things, it does not seem like it will get any better soon with the International Labor Organization warning that unemployment will rise to almost 22 million in the next four years across the 17 countries sharing the euro, unless more is done to help small firms and youth.

Kotak says that the steps being taken by the ECB and governments

No, Mr Chidambaram, there’s no such thing as ‘good inflation’

With a ‘to let’ sign hanging outside the office of the Finance Minister, a succession of UPA leaders and technocrats have injected themselves into the public domain with their prescriptions on economic policymaking. From Manmohan Singh to Jairam Ramesh to Anand Sharma to Montek Singh Ahluwalia to C Rangarajan, everyone appears to have suddenly woken up to the precise policy action that is necessary to revive the economy.

To that chorus, Home Minister P Chidambaram, who has signalled often

Fitch affirms US AAA credit rating, outlook still negative

Fitch Ratings on Tuesday affirmed its AAA credit rating on the United States and maintained a negative outlook, citing a diversified and wealthy economy that is undermined by the government's inability to agree on deficit reduction measures.

"The uncertainty over tax and spending policies associated with the so-called 'fiscal cliff' weighs on the near-term economic outlook," Fitch said in a statement. (curtsey : money control)

Rupesh Yatesh Dalal
Head Research Department

Website : www.marketcalls.net
Facebook : www.facebook.com/marketcalls.net
Twitter : @marketcallsnet
Yahoo Messenger : rupeshydalal@yahoo.com
Email : info@marketcalls.net