Indian Auto Industry Update July 21, 2009

 

INDIAN AUTOMOBILE INDUSTRY Daily Updates on: Insurance...Banking...Metal & Minerals...Infrastructure....Energy
INDUSTRY IPL, Nano win BS derby by several lengths Reva plans largest unit INTERVIEWS/FEATURES CARS, SUVs, MUVs GM India offers buy back scheme for Astra, Corsa Fiat India to raise $510 mn loan COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY 2/3 WHEELERS BMW looks to re-enter India's luxe bike market with Motorrad COMPONENTS Component suppliers follow vehicle makers to Pantnagar Rane Brake posts sharp increase in profit SKF India net slumps 52%	ALLIED INDUSTRIES IRGA questions move to add 3 more Govt nominees to Rubber Board FINANCE & INSURANCE Shriram transport bond issue opens 27 July OIL, LUBRICANTS & ALTERNATIVE FUELS Oil rises above USD 64 per barrel INTERNATIONAL NEWS General Motors gets three offers for Opel Nissan to invest $700 mn in electric car venture ECONOMY & FINANCE Rupee gains on capital inflows Sensex up 446, buoyed by corporate earnings
INDUSTRY                                                                                                                                  Go To Top IPL, NANO WIN BS DERBY BY SEVERAL LENGTHS Business Standard (Web & Print Edition)   New Delhi: A small car that redefined frugal engineering and a carnival that promises to evergreen the gentlemans game have won Business Standards 13th annual Brand Derby. The Nano and Indian Premier League have been voted the biggest brand launches of 2008 by top marketers of the country.   The results of the Derby have been published in The Strategist, Business Standards weekly management and marketing section.   Eighty-seven per cent of the respondents 90 senior marketing professionals from top metros said IPL was very successful, the best rating amongst the 26 brands that were shown to them. The Nano came second, with 76 per cent calling it very successful. But when separately asked to rank the very successful brands, the Nano emerged on top with 27 per cent votes, followed by IPL (24 per cent).   The verdict is clear: Marketers have recognised the resounding commercial success of IPL (two sell-out editions, one in India and the other in South Africa) and the sheer achievement of Tata Motors in coming out with the Nano. The company handed over the first Nano in Mumbai late last week. The evaluation of its commercial success will take place over the next few quarters.   On the third spot is the Maruti Suzuki Swift Dzire, the sedan that replaced the Esteem. It might be under-promoted, but the car with the big boot did better than heavily-advertised and -hyped rivals like Apple iPhone 3G and Viacom18s Colors general entertainment channel.   The import of the Derby result is that companies need to create mega-brands like the Nano and IPL to make a mark in the future. The success of the two brands has raised the bar several notches higher. Mere excellent will not be enough in the next Derby.   Also, brands in product categories that consumers can touch and feel automobiles, mobile communication devices etc connect better with consumers and experts alike. Thus, there are five automobiles (the Nano, Swift Dzire, Hyundais i20, Tata Motors Sumo Grande and Maruti Suzukis A-star) and three mobile phones (Blackberry Storm, Nokia 5800 Xpressmusic and Apple iPhone 3G) on the Derby list.   Several fast-moving consumer products, too, have featured on the list: Mother Dairys Nutrifit fermented probiotic milk, Maggi Cuppa noodles, ITCs Vivel soaps, Hindustan Unilevers Aviaance Mens Solutions, Garnier Fructis hairspray and Maggi Bhuna Masala cooking paste. The brand that came out the best was Nutrifit, a clear indication that any brand talking of health and wellness will do well.   Entertainment had a strong presence in the Derby with IPL, two films (Ghajini and Singh is Kinng), two direct-to-home television services (Big and Airtel) and one general entertainment channel (Colors). In the previous Derbies, too, this sector has done well for itself.   The study was carried out by Ipsos Indica Research in Mumbai, Delhi, Kolkata, Chennai, Bangalore, Ahmedabad and Hyderabad in June and July. http://www.business-standard.com/india/news/ipl-nano-win-bsderby-by-several-lengths/364487/ Go To Top     REVA PLANS LARGEST UNIT Anshul Dhamija The Times of India (Web & Print Edition)   Bangalore: Reva Electric Car Company (RECC), Indias leading electric car manufacturer, is planning to build a second manufacturing plant, which some say will be the largest electric car facility globally. The new facility is expected to be over five times the size of its existing facility in the Bommasandra Industrial Area. According to multiple sources, the new facility would have an installed capacity of around 30,000 units to begin with. The facility is expected to be operational in the next two years. There has been a number of research findings that indicate that by 2015, around 5% of the total car sales in the country would be of electric vehicles. Hence, we need to scale up in order to ride the growth wave, said a company source. Globally too, climate change concerns have sharply increased the appeal of electric cars. The Tamil Nadu government recently allotted 100 acres of land to Bavina Cars India, to set up a Rs 300 crore electric car manufacturing facility, with a capacity of 25,000 units. http://timesofindia.indiatimes.com/NEWS-Business-India-Business-Reva-plans-largest-unit/articleshow/4800693.cms Go To Top
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CARS, SUVs, MUVs                                                                                                                Go To Top GM INDIA OFFERS BUY BACK SCHEME FOR ASTRA, CORSA PTI See this story in: The Hindu Business Line (Web Edition), Asian Age (Web & Print Edition), The Indian Express (Web Edition), The Statesman (Web Edition), mint (Web Edition), Business Standard (Delhi Print Edition)   New Delhi: Car maker General Motors (GM) India on Monday said it has offered a new scheme under which customers can exchange their Opel cars for Chevrolet brands. Under the buy back scheme all the existing Opel owners can get a new Chevrolet model for their Astra or Corsa cars, General Motors (GM) India said in a statement.   With the buy back scheme, we are giving an opportunity to our customers to enjoy the Chevrolet experience. Our goal is to continue to reach out to our customers both new and old, and provide them best and the latest cars, GM India Vice President, Mr P Balendran said.   As part of the scheme customers will be offered a market price based on the physical condition and model-year of their car for a limited period the company said. In addition, customers will also be offered free accessories worth Rs 10,000 by the dealer under the Opel exchange programme, the statement added. http://www.thehindubusinessline.com/blnus/19201410.htm http://www.asianage.com/presentation/leftnavigation/news/business/gm-india-offers-buy-back-plans.aspx http://www.indianexpress.com/news/gm-india-offers-buy-back-scheme-for-astra-and-corsa/491736/ http://www.thestatesman.net/page.news.php?clid=12&theme=&usrsess=1&id=261470 http://www.livemint.com/2009/07/20141127/GM-India-offers-buy-back-schem.html  Go To Top     FIAT INDIA TO RAISE $510 MN LOAN George Smith Alexander & Lijee Philip The Economic Times (Web & Print Edition) See similar story in: The Financial Express (Web & Print Edition) Mumbai: Fiat India Automobiles, a joint venture between Tata Motors and Fiat, is close to finalising a loan of $510 million about Rs 2,458 crore at current exchange rates for its capex and working capital programmes. The loans include a rupee term loan, a working capital loan and an export credit agency (ECA)-backed overseas loan, according to people close to the development. Fiat India Automobiles, a 50:50 joint venture formed in 2007, manufactures Fiat and Tata cars and also produces transmission sets and engines. The term loan of Rs 1,000 crore has a door-to-door maturity of six years while the ECA loan of euro 130 million (around Rs 900 crore) has a door-to-door maturity of eight years. The working capital loan of Rs 600 crore has a tenure of one year, said people familiar with the matter. Citi was the sole arranger for the loans. The rupee term loan and the working capital loan were given by State Bank of India, IDBI Bank, Punjab National Bank and Union Bank of India. When contacted, a Fiat India spokesperson said: The company is discussing and finalising financing proposals with bankers to fund the companys originally planned operations. There is no change in production capacity. The original funding plan of 1:1 between rupee loan and ECA was subsequently revised to 2:1 on the back of rupee liquidity, said sources.   The benefit of an ECA-led loan is that because of the guarantee that typically comes in such a case, the interest cost on the loan comes down drastically and the borrower is able to get a longer tenure loan. However, the interest costs on these loans are not known. The Tata-Fiat JV plans to invest close to Rs 4,020 crore in its Ranjangaon facility near Pune. By 2012, the capacity of the Ranjangaon plant would be expanded to two lakh cars, three lakh diesel engines, and three lakh spare parts and accessories per annum. At present, the plant, which makes the Fiat Palio, the Grande Punto and the Linea in the B and C segments, has the capacity to produce one lakh cars and two lakh engines. The plant also has a production capacity of 1.3-litre multi-jet diesel engines, 1.2-litre and 1.4-litre fire gasoline engines and transmissions. Fiats 1.3-litre multi-jet diesel engines, 1.2-litre & 1.4-litre fire gasoline engines and C549 transmission machinery which powers the current range of cars. Apart from Fiat cars, the Pune facility rolls out Tata passenger next generation cars. The JV has an equal representation of five members from the two partners. While Tata MD Ravi Kant will be the JV chairman, the vice-chairman will be Alfredo Altavilla, the CEO of Fiat Powertrain Technologies and senior V-P (business development) of Fiat Group Automobiles. Rajeev Kapoor, brought in from Hero Honda, has been appointed the president and chief executive officer of the JV and is in-charge of the operations of the new entity and reports to the board of directors of the joint venture. The distribution and service of Fiat-branded cars in India will continue to be managed by Tata Motors, in line with the agreement signed in March 2006. http://economictimes.indiatimes.com/Fiat-India-to-raise-510-million-loan/articleshow/4800742.cms 0 http://www.financialexpress.com/news/fiat-india-mops-up-rs-2-448cr-loan/491837/ Go To Top
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2/3 WHEELERS                                                                                                                      Go To Top BMW LOOKS TO RE-ENTER INDIA'S LUXE BIKE MARKET WITH MOTORRAD Sumit Chaturvedi The Economic Times   Almost 13 years after its abortive attempt to enter the Indian market through a joint venture with the Hero Group, German luxury carmaker BMW is planning another foray into the countrys minuscule high-end motorcycle market. The company is studying Indias high-end and premium motorcycle market to introduce its Motorrad range of super bikes in India, said a top BMW India official. Our people from BMW Motorcycle are having a look at the market. They are also in discussion with us for feedback on the matter. As soon as we see potential for a viable market entry for sustainable growth, we would take that into consideration, said Peter Kronschnabl, president, BMW India. The bikes of the Motorrad range will cost more than Rs 10 lakh in India, said another BMW India official.   The premium bike market in India is very small less than 500 units a year but both in terms of growth prospects as well as branding opportunity, it is an attractive segment. Although its earlier outing in India was not successful BMW launched its F650 model in collaboration with Hero but the venture did not take off this time round the German company may be able to sell more bikes. Auto analysts say the presence of top superbike models such as the Suzuki Hayabusa or the Honda 1000RR Fireblade and CBR 1000R and Yamahas MT01 and R1 has grown the market and increased the appetite for Rs 10 lakh-plus bikes. Bajaj is also planning to introduce big bikes from KTM and Kawasaki stables in the near future. BMW officials, however, clarified that the plans are not for the short-term and it could take 1-2 years before anything is finalised. BMW Motorrad is a brand used by the German company for its motorcycles, which are in production since 1923. BMW Motorrads G series, F series, R series and K series are available around the world. These bikes range from 450 cc capacity to 1300 cc capacity and are designed for off road, sport and touring purposes. Although the total market for high-end bikes is still very small, the consumer interest in motorcycles as a lifestyle product is picking up. Suzuki, for instance, sold 93 bikes in the last six months alone while Yamaha sold 94 units of the R1 and MT 01 in the Jan-Dec 2008 period. We are regularly importing containers of our high-end bike Hayabusa and Intruder. Each container has up to 15 bikes and we are ordering new containers of bikes ever 1-2 months, said Suzuki Motorcycle India vice-president, marketing and sales, Atul Gupta.he company hopes to sell 100 more high-end bikes costing up to Rs 12.5 lakh by the end of current fiscal, he added. Copyright 2008, Bennett, Coleman & Co. Ltd. All Rights Reserved" http://economictimes.indiatimes.com/BMW-to-re-enter-Indias-luxe-bike-market-with-Motorrad/articleshow/4800970.cms Go To Top
COMPONENTS                                                                                                                      Go To Top COMPONENT SUPPLIERS FOLLOW VEHICLE MAKERS TO PANTNAGAR Shishir Prashant Business Standard Dehra Dun: Tata Motors rolled out the first Nano from Pantnagar, a small town in Uttarakhands Kumaon region, in a time span of less than five months, with the strong logistical support its ancillaries provided.   An official of a Tata Motors vendor said, When the project came to us soon after the Singur episode, it became a big challenge to meet the deadline. But ancillaries provided strong logistical support.   A Tata Motors spokesman agreed that the existing ancillaries played a big role in making the production of the Nano from Pantnagar possible.   Tata Motors, which initially established its manufacturing facility for Ace trucks at Pantnagar with an investment of Rs 1,000 crores, is now being supported by 60-65 ancillaries, which have also set up shop with a total investment of over Rs 900-1,000 crore at the 1,000-acre plot where Tata has its commercial vehicles plant.   These ancillaries not only helped Tata Motors but played a role in companies such as Bajaj Auto and Ashok Leyland setting up shop in Pantnagar, which has emerged as a big auto component hub.   Among the ancillaries that are setting up new units are RSB Transmission, which is investing Rs 65 crore; Bajaj Motors Ltd (Rs 35 crore); Delphi TVS Diesel System (Rs 38 crore); New Allenberst Works Ltd (Rs 47 crore); and Rojee-Tasha, which heads the list with an investment of Rs 89 crore.   According to the State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL), the state government enterprise, the ancillaries of Tata Motors have so far provided employment to 7,199 persons.   Ashok Leyland, the flagship company of the Hinduja Group, is doubling its investment at Pantnagar to Rs 2,000 crore. The company will manufacture 40,000 vehicles a year. Its Chief Financial Officer, J Sridharan, said that five ancillaries of the company have set up shop in Pantnagar.   The Pantnagar industrial estate has also attracted an investment of Rs 500-600 crore from Bajaj Auto, which has established a plant for manufacturing motorcycles.   In the Haridwar industrial estate, two-wheeler market leader Hero Honda, which has set up a new manufacturing facility with an investment of Rs 600 crore, has attracted eight ancillaries. These eight ancillaries have invested a total of Rs 320 crore.   Rockman Industries Ltd, which manufactures auto components, has invested Rs 150 crore at Haridwar to support Hero Honda. A G Industries, another ancillary of Hero Honda, has invested 45.74 crore.   Its an ancillary deluge in Uttarakhand. I think other auto companies can also benefit from the tax holiday scheme just like these ancillaries, said Sudhir Nautiyal, additional director at the department of industries in Uttarakhand. http://www.business-standard.com/india/news/component-suppliers-follow-vehicle-makers-to-pantnagar/364425/  Go To Top      RANE BRAKE POSTS SHARP INCREASE IN PROFIT The Hindu   Chennai: Rane Brake Linings has reported a sharp rise in its net profit in the three months ended June 30, 2009 at Rs. 2.66 crore against Rs. 80 lakhs in the corresponding period in the previous year. Total revenue has increased to Rs. 52.94 crore from Rs. 49.93 crore. The new plant at Tiruchirapalli, Tamil Nadu, has commenced production and reached 90 per cent of its phase I capacity. http://www.hindu.com/2009/07/21/stories/2009072156141300.htm  Go To Top     SKF INDIA NET SLUMPS 52% The Hindu Business Line Mumbai: SKF India, which makes bearing and seals, has reported a 52 per cent fall in net profit at Rs 17.67 crore for the quarter ended June 30, 2009 from Rs 36.65 crore int eh same period last year. The economic downturn and the one-time restructuring cost of Rs 16.8 crore due to downsizing of workforce at the companys Pune plant have been cited as the major reasons for this decline. Go To Top
ALLIED INDUSTRY                                                                                                               Go To Top IRGA QUESTIONS MOVE TO ADD 3 MORE GOVT NOMINEES TO RUBBER BOARD M Sarita Varma The Financial Express   Thiruvananthapuram: All stakeholders in rubber supply chain- processing industry, tyre manufacturers, plantation owners, small holding farmers, dealers and other stakeholders are wary about Centre's move to expand the steering panel of Rubber Board with three more Government officials. Indian Rubber Growers Association (IRGA) has been the first to voice protest against what it calls "diluting the autonomy of the Board."   After the Cabinet's vetting, the proposal to add three more Government officials as directors to 26-member Rubber Board has been put forward for Parliament's clearance. Including the Chairman, there are now 10 directors to represent Government interests. If the proposal -which is part of the amendment on Rubber Act- is okayed, the strength of Board of Directors would swell to 29.   "Expanding the Board of Directors is against democratic spirit and also the recommendations made by Prabhu Committee," IRGA points out in a letter to Union Commerce Minister Anand Sharma on Monday.   Prabhu Committee, set up in 2000, to review the functioning of Commodity Boards, prescribes that the strength of Board of Directors should be tightbelted to 20. In practically all boards there are a large number of government nominees. In Clause 28, Prabhu Committee report specifically draws flak at "the system and practice of Government departments sending observers to participate in the meetings of boards, even at the expense of the Boards."   Major consumer industries like tyre makers too are also disturbed by the proposed higher regulatory interests in the Board of Directors. ATMA (Automotive Tyre Manufacturers Association) feels that consumer, producer and regulatory interests should be equally represented. "With just two directors now, the Board is overtly tilted against the consuming industry," an ATMA spokesman told FE. Tyre industry is also coming out with a detailed response on this soon.   "If country has notched phenomenal growth in rubber production in last 50 years, this has been because of the much-lauded stakeholders' say in Rubber Board. Adding more bureacratic control would clamp brakes on efficiency, tampering with optimal stakeholder participation and also go against the new development perspective of PPP (public-private participation) spirit," Sibi J Monipally (IRGA general secretary and Rubber Board Vice-Chairman) said, in New Delhi, after meeting the Union Commerce Minister.   In an issue that threatens to brew up to a regulator intervention storm, the farmers' outfit is also seeking support from senior ministers like AK Antony and Vayalar Ravi. At a critical juncture, when Rubber Board has undertaken a herculean task of rubber replantation mission, this divisive controversy is a diversion that the commodity board could do without. http://www.financialexpress.com/news/irga-questions-move-to-add-3-more-govt-nominees-to-rubber-board/491917/2 Go To Top
FINANCE & INSURANCE                                                                                                   Go To Top SHRIRAM TRANSPORT BOND ISSUE OPENS 27 JULY Reuters See this story in: Mint   Commercial vehicles financier Shriram Transport Finance Co Ltd  will open a 10-billion-rupee retail bond issue on July 27, two sources with knowledge of the deal, said on Monday.   It would sell secured three-year bonds carrying a coupon rate of 10.75 percent, and five-year bonds, which have not yet been priced, they added.   Market sources said the five-year bonds are likely to be priced at around 11.25 percent, depending on whether the coupon payment would be on a half-yearly, annual or cumulative basis.   The issue has a core size of 5 billion rupees with a greenshoe option to retain extra bids of up to another 5 billion rupees. No closing date has yet been fixed, two sources said.   The merchant bankers to the issue are ICICI Securities, ENAM Securities Private Ltd, Kotak Mahindra Bank and AK Capital, one source said.   This source added the lead arrangers include Karvy Investor Services, Reliance Capital, Bajaj Capital and Tata Capital. (Reporting by Jeanette Rodrigues and Anurag Joshi; Editing by Prem Udayabhanu) Go To Top
OIL, LUBRICANTS & ALTERNATIVE FUELS                                                         Go To Top OIL RISES ABOVE USD 64 PER BARREL Reuters See this story in: The Indian Express   Perth: Oil rose above $64 a barrel on Monday, extending last session's 2.5 per cent gains, bolstered by a rally in Asian stocks and fall in the dollar on hopes of a global economic recovery.  Oil gained 6.1 per cent last week -- its first weekly gain in a month -- thanks to a series of positive economic data and a rally in the equities markets, which came on the back of better-than-expected US corporate earnings.   The slide in risk appetite also knocked the dollar, with the euro rising to a three-week high.  US crude oil for August delivery rose 54 cents to $64.10 a barrel by 0300 GMT, after settling up $1.54 at $63.56 on Friday. London Brent crude for September rose 55 cents to $65.93.   "Gains in the stock markets are lifting risk appetite, which is helping to push oil prices higher," Ben Westmore, a commodities analyst at the National Bank of Australia. The MSCI index of Asia Pacific stocks outside Japan climbed for a fifth session to the highest since late September 2008 on Monday, with hopes for corporate earnings lifting sentiment across the board.   News that CIT Group Inc's board approved a deal with bondholders for $3 billion in rescue financing to the lender late on Sunday also lifted risk appetite.   Oil's gains on Friday were boosted by a government report that showed construction of new homes and the issue of building permits in the United States rose more than expected in June, signaling a potential economic recovery.   Tensions in Iran, the world's fifth-largest crude exporter, as well as worries about a tropical wave in the Central Atlantic, which has a small chance of developing into a tropical cyclone -- also helped buoy oil prices.   Iran's President Mahmoud Ahmadinejad has come under fire from leading hardliners for naming as his top deputy a man who said Iran was friends with everyone, including arch-foe Israel, local media said on Sunday.   But with oil prices having rebounded by nearly $4 last week, some analysts are cautioning against excessive optimism as the latest inventory data in the United States was still painting a bearish picture for energy demand.   "As was the case with the March-June upward trend and the subsequent correction, price action in recent days has been, in our view, driven by non-fundamentals," Michael Wittner, global head of oil research at Societe Generale, said in a report. "When prices are being driven by non-fundamentals, we are cautious, and doubly so when trying to call a turn," Wittner said, adding that technical analysis indicates that another downward move on oil prices should be expected this week.   In a sign that investors were now more bullish on oil prices, crude oil speculators on the New York Mercantile Exchange increased their net long positions in the week to July 14, according to data from the Commodity Futures Trading Commission released on Friday. Open interest was concentrated at the $65 and $70 September call crude oil option and at the $60 put option, according to Reuters data on Friday. http://www.indianexpress.com/news/oil-rises-above-usd-64-per-barrel/491662/2 Go To Top
INTERNATIONAL NEWS                                                                                               Go To Top GENERAL MOTORS GETS THREE OFFERS FOR OPEL Reuters See this story in: The Economic Times   Frankfurt: General Motors (GM) said on Monday that it had received three binding takeover offers for Opel that it would consider together with the European countries that would be affected by the deal. In a surprise move, the once heavily favoured consortium of Magna and Sberbank changed its plans at the last minute and agreed that they would evenly split a stake in Opel, in a concession to critics, a source with knowledge of the matter told Reuters. "The final bids as well as GM's preliminary findings will then be reviewed with the German and other impacted governments, the EU Commission and the Opel/Vauxhall Trust Board," GM Europe said in a statement released after the deadline for submissions, without naming the bidders. Berlin is expected to have a large say in the decision, since it would provide the bulk of up to 4.5 billion euros ($6.4 billion) in expected loan guarantees for Opel. Earlier, Magna and Brussels-based private equity firm RHJ International said they would submit final bids, while a source familiar with the matter told Reuters that China's Beijing Automotive (BAIC) also delivered a binding offer for Opel and its UK sister brand Vauxhall. Magna and Russian partner Sberbank now aim to each take a 27.5 percent stake in Opel. Magna, a auto parts maker from Aurora, Canada, originally planned to take just 20 percent, with the Kremlin-backed lender holding the remaining 35 percent. "It's a compromise to those people that wanted more Magna in the consortium," the person with knowledge of the matter said. The change could help soothe concerns in Germany over the the potential influence of the Russian bank, which weeks ago began to talk about selling the possible stakeholding in Opel to a domestic carmaker. A debilitating stalemate between GM and Germany could be emerging over their differing preferences for the two competing bids, in which RHJ foresees shrinking Opel's production footprint to a more manageable level while Magna targets growth in the dynamic, but volatile, Russian market. "Then (if there is disagreement between GM and Germany) we naturally have a problem and it becomes really complicated," said a source familiar with the thinking of Opel's trustees. The trustees must formally approve any sale, and Germany and GM are evenly represented in the group. Magna wants to convince the German federal and state governments that its plan best guarantees Opel its long-term independence from GM and ensures the European carmaker can decide for itself on issues including where it would develop new vehicle architectures or key modules and components. http://economictimes.indiatimes.com/News/International-Business/General-Motors-gets-three-offers-for-Opel/articleshow/4800887.cms  Go To Top     NISSAN TO INVEST $700 MN IN ELECTRIC CAR VENTURE Reuters See this story in: The Economic Times, Hindustan Times, mint   London/Lisbon: Car manufacturer Nissan said on Monday it will invest almost $700 million in two plants to make batteries for electric cars in Britain and Portugal after securing financial support from their governments. Automakers around the world are exploring plans for mass electric car production as the industry seeks to haul itself out a devastating downturn. The Nissan news comes less than a week after Toyota said it would produce its first European-built hybrid car in Britain from 2010. Nissan will invest more than 200 million ($328.6 million) in the plant near Sunderland, north east England. The two governments (UK and Portugal) have offered to extend financial assistance and other support to ensure that Nissan locates the proposed plants within their respective countries, Nissan said in a statement. http://economictimes.indiatimes.com/News/News-By-Industry/Auto/Nissan-to-invest-700-mn-in-electric-car-venture/articleshow/4800945.cms http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=NLetter&id=d7dcae00-7185-43c6-a5e3-c777fd4bd401&Headline=Nissan+to+make+electric+car+batteries+in+UK http://www.livemint.com/2009/07/20154957/Nissan-to-invest-200-mn-pounds.html Go To Top
ECONOMY & FINANCE                                                                                                   Go To Top RUPEE GAINS ON CAPITAL INFLOWS The Hindu Business Line   Mumbai: The rupee gained by around 55 paise against the dollar on Monday, buoyed by the capital inflows into the country. The domestic currency opened with a positive gap at 48.54 and strengthened to touch an intra-day high of 48.19. It closed at 48.20, as against the previous close of 48.75. The rupee gained tracking the huge gains in the domestic equity indices, despite persistent dollar demand from oil companies, said a dealer with a public sector bank. In the overseas markets, the dollar weakened against other major currencies. In the forward premia market, the six-month ended marginally higher at 2.34 per cent (2.29 per cent) and the one-year was at 2.22 per cent (2.17 per cent). http://www.thehindubusinessline.com/2009/07/21/stories/2009072151530600.htm  Go To Top     SENSEX UP 446, BUOYED BY CORPORATE EARNINGS The Hindu Business Line   Mumbai: Better than expected corporate earnings, at home and abroad, , pushed the Sensex up 446 points on Monday, 3 per cent above Fridays close.   This is the fourth 300-plus-point rise for the Sensex in the last five trading sessions. The benchmark index closed at 15,191, breaching the 15000-mark for the first time in a month.   The Nifty closed up 2.91 per cent at 4,502.25.  It is completely an emerging market phenomenon. Global asset allocation is seeing funds flow into emerging markets and that is how India is getting investments, Mr Raamdeo Agrawal, Co-founder and Director, Motilal Oswal Financial Services Ltd, said.   FIIs net buyers Foreign institutional investors were net buyers of Rs 563 crore. The other reading was that market participants have slowly reconciled themselves to the Budget, with some clarity emerging on the Governments disinvestment plans. Domestic institutions were net buyers for Rs 152 crore, while retail investors were net sellers for Rs 199 crore. Many retail investors took this opportunity to book profits as the markets are at such high levels, said a broker who had just received a sell order from one of his clients for 50 Tech Mahindra shares.   The odd investor still bought, led by broker advice.  I bought some shares of a real estate company with a long-term view, said Mr Akshay Shah, a retail investor.   IT stocks lead rally Mondays rally was led by IT stocks, as TCS posted a 22 per cent increase in its quarterly profits, said market-men. The IT index gained more than seven per cent, making it the best performing sectoral index on the BSE.   TCS, Wipro and Infosys were among the top gainers of the day. TCS was up 15.34 per cent. Realty and Teck too gained on Monday and the FMCG index was the only sectoral index on the BSE that ended the day in the red. http://www.thehindubusinessline.com/2009/07/21/stories/2009072151980100.htm  Go To Top      Last Financial closing   Sensex 15,191.01 US$ spot Rs.48.69 US$ Y.93.744 US$ 6 months Rs.49.29 Yen Rs.0.52 Euro spot Rs.68.63 LIBOR 6 months % Call % GOI sec. 10 years - - - -     Aluminium (per kg) Rs. Aluminium Ingot Rs. Copper (per kg) Rs. Gold (10gm) Rs.14,940 Lead (per kg) Rs. Mild Steel Ingots (Mumbai) Rs. Nickel (per kg) Rs. Nickel Cathode Rs. Silver (1kg) Rs.22350 Sponge Iron (per tonne) Rs.13130.00 Steel Flat (per tonne ) Rs.30160.00 Steel Long GVD (per tonne) Rs. Steel Long BVN (per tonne) Rs.21390.00 Tin (per kg) Rs. Zinc (per kg) Rs. Zinc Ingot Rs.- - - -     Crude Oil (WTI) $- - - - Crude Oil (Brent) $65.41     Automobile Scip on BSE Face Value (Rs) Last traded Value (Rs) Apollo Tyres 1 35.05 Asahi Ind 1 56.90 Amara Raja B 2 103.25 Ashok Leyland 1 33.80 Bajaj Auto 10 1184.80 Bharat Forge 2 149.70 Denso 10 55.20 Eicher Ltd 10 - - - - Eicher Motor 10 330.55 Escorts 10 61.90 Exide Ind 1 77.25 Force Motors 10 115.60 Gabriel India 1 12.55 Hero Honda 2 1651.95 Hind Motors 10 19.35 Hi-Tech Gear 10 56.90 Jay. Bh. Maruti 5 43 Jamna Auto 10 30.60 JK Tyres & Inds 10 85.95 Kinetic Motors 10 12.15 Kinetic Engg 10 41.75 KOEL 2 88.40 Kirloskar Br: 2 180.50 LML Ltd 10 9 L&T 2 1458 Lumax Ind 10 99.90 Lumax Tech 10 27.25 M&M 10 796.85 Maruti Suzuki 5 1208.30 Motherson SS 1 78.65 Minda Inds 10 158.15 MRF 10 3379.30 MICO 10 - - - - Omax Auto 10 30.80 Perfect Circle - - - - - - - - - - Rico Auto 1 17.05 Sona Koyo St 2 9.90 SKF Bearing 10 - - - - SRF 10 109.75 Swaraj Mazda 10 210 Tata Motors 10 327.95 TVS Motor 1 50.15 Metals Scrip on BSE Face Value(Rs) Last traded Value (Rs) Bhushan Steel 10 679.30 Essar Steel 10 - - - - Hindalco 1 88.45 Hind Zinc 10 671.25 Ispat Inds 10 20.90 Jindal Iron 10 - - - - Jindal Stain 2 - - - - Jindal Steel 5 2666.70 National Aluminium 10 292.80 SAIL 10 168.60 TISCO 10 391.10 Visa Steel 1 26.75