Business

US stocks edged lower Thursday as the latest string of weak economic data overshadowed better-than-expected corporate earnings.

The US Labor Department said that the number of people applying for jobless benefits declined 2,000 to a seasonally adjusted 386,000, Xinhua reported.

Investors felt disappointed not only because the initial claims was much higher than analysts had expected but also because the slight improvement was the previous week’s number revised higher than originally reported.

Acknowledging that economic reforms in India have slowed down and may remain that way till the next general elections in 2014, Chief Economic Advisor Kaushik Basu said they will gather pace thereafter and from 2015 India will be among the world’s fastest growing economies.

Relatively less important bills might go through Parliament but major economic reforms would hit the road block, Basu said, adding that they are unlikely to happen before the next Parliamentary elections.

India’s exports exceeded the government’s aim in the year through March as demand from new markets drove shipments higher.

But the trade deficit widened to a record high following a surge in crude oil and gold imports, Commerce Secretary Rahul Khullar said on Thursday.

India’s merchandise exports rose 21 percent from the previous year to USD 303.7 billion, a tad higher than the targeted USD 300 billion, Khullar said at a news conference.

India’s Essar Group is looking at selling its business process outsourcing arm Aegis after getting some offers from global private equity players, a daily newspaper reported on Thursday.

Bain Capital and Kohlberg Kravis Roberts & Co, among others, have been in discussions with the founding Ruia family and have made non-binding offers, the report cited a source as saying.

The Essar group has appointed Standard Chartered Bank as adviser to the possible sale.

IDBI Bank on Wednesday cut its lending and deposit rates by 25 basis points, making it the first lender to lower rates barely 24 hours after the Reserve Bank of India lowered its policy lending rate.

The state-run lender cut its Base Rate, or minimum lending rate, to 10.50%, effective from April 20.

This is lower than 10.75% base rate of Punjab National Bank, Bank of India, Bank of Baroda and Canara Bank. However, it is little higher than the base rate of 10% of State Bank of India.

Turtle, a leading manufacturer and retailer of men’s apparel and accessories, registered a growth of 50 percent in revenue during 2011-12 and expects the same level of growth during the current year.

The Kolkata-based firm had revenues of Rs.122 crore during 2011-12 and has set a target of Rs.175 crore this year.

Turtle has 55 stores across the country and is adding three stores a month, said Shitanshu Jhunjhunwalla, director, Turtle, at the opening of its second exclusive store in Hyderabad.

UK-based Camellia Plc, which owns a 74 percent stake in tea major Goodricke Group, Wednesday said it was ‘very interested’ in buying out tea gardens in Assam to expand its business of the brew in India.

“We are interested in expansion. If we can acquire more gardens in Assam, we would be doing so,” Camellia Plc joint managing director Peter J. Field told mediapersons here.

Field was speaking on the sidelines of the Annual General Meeting (AGM) of Kolkata-based Goodricke Group.

“Our particular interest is the acquisition of gardens is Assam. We are very interested in Assam,” he said.

BSE Auto was the TOP gainer up by 1.52 per cent, the other sectoral gainers were HC by 1.07 percent, Oil and Gas by 0.77 percent, Metal by 0.75 percent, CD by 0.46 percent, Power by 0.46 percent, IT by 0.30 percent, Psu by 0.10 percent and Teck by 0.07 percent BSE Realty was the top sectoral loser, down by 0.97 percent, followed by 0.53 percent, CG by 0.27 per cent, Bankex by 0.10 percent Index heavyweight Reliance Industries (RIL) logged small gain in volatile trade.

PUBLIC sector oil firms have requested the government to declare petrol as a regulated product like diesel and LPG so that they can claim compensation for the revenue they are losing on selling the fuel below market price.

Indian Oil, Bharat Petroleum and Hindustan Petroleum claim that they are losing ` 8.04 a litre on petrol sales and have requested the government to provide “ 100 per cent cash compensation” for the loss since they have not been allowed to increase prices.

Canadian mobile handset manufacturer Research In Motion (RIM) on Wednesday launched here a new smart phone, BlackBerry Curve 9220, for the Indian and global markets.

The handset is priced at Rs10,990 and will be available in the market from this Thursday.

The phone has a raft of features, including a dedicated Black Berry messenger key, and is loaded with the company’s latest operating system (OS) 7.1 OS. The smart phone also has a built in FM radio.

Silver prices strengthened by Rs 425 to Rs 56,600 per kg in the national capital on Wednesday on increased offtake by industrial units and jewellers for the ongoing marriage season amid firming global trend.

However, gold lacked necessary buying support at prevailing higher levels and ended flat at Rs 28,890 per 10 gm.

Traders said increased offtake of silver by industrial units and jewellers for the ongoing wedding season amid firming trend in overseas markets further supported the silver prices.

Silver advanced 0.4 per cent to USD 31.81 an ounce in Singapore.

Retail inflation spurted to 9.47 percent in March because of higher prices of milk, vegetables, protein-based items and edible oil products.

Retail inflation, based on the Consumer Price Index (CPI), was 8.83 percent in February, as per the government data release here today.

Among other items, prices of cereal and its products saw a rise of 2.78 percent over the March 2011 level.

The prices of milk and products rose by 15.22 percent, while oils and fats turned costlier by 14.20 per cent during the month, year-on-year basis.

Issues related to global economy and international financial architecture are expected to be the focus of Finance Minister Pranab Mukherjee during his 4-day visit here starting today to attend the annual spring meeting of the International Monetary Fund and World Bank.

Mukherjee has a hectic schedule which includes not only attending the meetings of the IMF and the World Bank, but also those of other important groupings such as G-20, G-24 and BRICS, besides holding a series of bilateral meetings.

HDFC Bank Ltd on Wednesday reported a more than 30 percent jump in fiscal fourth-quarter net profit, aided by higher interest income and a drop in provisions.

Net profit for the January-March quarter rose to Rs 14.53 billion from Rs 11.15 billion a year earlier, the lender said in a filing with stock exchanges.

The bank’s interest income rose to Rs 73.88 billion from Rs 54.69 billion a year earlier, while its other income–from fees, commissions and foreign-exchange and treasury transactions–increased nearly 19 percent to Rs 14.92 billion.

Andhra Pradesh Gas Distribution Corporation Limited (APGDC), a company jointly promoted by GAIT., Gas Limited (GGL) and Andhra Pradesh Gas Infrastructure Corporation Private Limited (APGIC), has today signed a Project Framework Agreement (PF A) with GDF Suez LNG UK Ltd. for jointly setting up a Floating Storage and Regasification Unit (FSRU)in offshore Andhra Pradesh.

Stating that a stage for cheaper lending has been set with the RBI cutting short-term lending rate, India Inc on Tuesday welcomed the move saying it would boost investments in the country.

“The repo rate cut will provide the boost to investment as well as send a strong signal that turning around growth is of pivotal importance,” Confederation of Indian Industry Director General Chandrajit Banerjee said.

The cut in repo rate by 50 basis points was much needed given that the GDP growth is moderating, he added.

Reduction of 50 basis points in repurchase (repo) rate by the Reserve Bank of India (RBI) would stimulate growth and put the economy back on rail, Planning Commission Deputy Chairman Montek Singh Ahluwalia said Tuesday.

“By lowering the repo rate, the (RBI) governor has given a signal that the economy is ready to be given a stimulus for growth without danger on the inflation front,” Ahluwalia told reporters on the margins of an event here.

Policymakers face the dilemma of how best to respond to the challenges of slackening global activity and continued financial volatility as many countries remain vulnerable to unexpected shocks, the International Monetary Fund (IMF) said Wednesday.

Although debt ratios are expected to begin stabilising by 2015 in the large majority of countries, the risk of a setback is high, constraining policy options, it said in the Fiscal Monitor report released ahead of this week’s World Bank-IMF spring meetings.

Washington: US nominee Jim Yong Kim was Monday chosen as the next president of the World Bank, an appointment that continues the longstanding tradition of an American leading the Washington-based institution.

“Dr Jim Young Kim of the United States would be the next President of the World Bank,” an official announcement said Monday.

Kim, 52, will take over at the beginning of July, after the current president, Robert B Zoellick, steps down at the end of his five-year term. Seoul-born Kim is currently president of Dartmouth College.

Is Infosys’ weak revenues the result of company-related issues or sector specific?

The tech company’s shares lost 1.5 percent to Rs 2,365 today, extending losses from a 13 percent plunge on Friday after a slew of analysts downgraded the stock following its lower-than-expected revenue growth outlook on Friday.

The tech company’s shares lost 1.5 percent to Rs 2,365 today, extending losses from a 13 percent plunge on Friday. AFP

Milk prices in the national capital and adjoining areas will rise by up to Rs 2 per litre from Monday with two leading suppliers hiking rates, but largest seller Mother Dairy is not increasing rates just yet.

Amul and Quality Dairy will increase milk prices from today. Mother Dairy and Paras are the other two major milk suppliers in the national capital and its adjoining areas which consume over 115 lakh litres milk a day.

Union Rural Development Minister Jairam Ramesh has called for bringing women’s self-help groups (SHGs) under the priority sector lending (PSL) norms and increasing the credit flow to them.

“I want women’s SHGs to get bank funds at the priority sector lending rates,” Mr. Ramesh said here.

“I don’t want to put a percentage number to bank funding for SHGs, because that won’t make any tangible difference. What we need is ensuring availability of credit at affordable rates and that too at a time when they need it,” he said.

He also called for expanding the reach of SHGs.

Cutting short two weeks of modest gains, both the key indices, Sensex and Nifty, tumbled by over 2 percent due to a host of negative factors.

The market resumed on a weak note on investor concerns over slow growth in US jobs and global economic recovery.

Besides, investors have been cautious ahead of the fourth quarter corporate earnings, industrial growth data and the apex bank’s annual monetary policy next week.

Urging the states to cut the taxes on aviation turbine fuel, Civil Aviation Minister Ajit Singh today said that airlines themselves will have to decide whether to increase fares in view of the soaring fuel prices.

“ATF costs have risen 8 to 9 per cent in March, and it would impact the air fares,” Ajit told reporters, after inaugurating integrated airport terminal, built at the cost of Rs 135 crore, here.

Airlines would have to decide the fares based on commercial calculations, factoring in ATF costs, etc, he said.

Eminent economist and former governor of State Bank of Pakistan Ishrat Husain said Friday he saw huge prospects for bilateral trade with India with both the countries taking steps to allow larger flow of goods.

Speaking to reporters here, Husain said he hoped that by December Pakistan would remove 1,200 items from the negative list to ensure that all items are traded between the two countries.