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| INDUSTRY INTERVIEWS/FEATURES Toyota expects to sell 3,500 cars in Gujarat COMMERCIAL VEHICLES CONSTRUCTION & AGRI MACHINERY COMPONENTS
| ALLIED INDUSTRIES OIL, LUBRICANTS & ALTERNATIVE FUELS GM to restore salaried worker pay cuts GM, SAIC may join hands for mini-vehicles in India | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| INDUSTRY Go To Top Nandini Sen Gupta The Economic Times (Delhi Print Edition)
General Motors India, the wholly-owned subsidiary of American carmaker General Motors Corporation, is in advanced talks with the worlds leading electric car manufacturing company, Bangalore-based Reva Electric Car Company, for a technical collaboration and a joint venture, executives close to the development said. GM India will source electric vehicle technology from Reva to roll out electric variants of its Chevrolet Spark small car in India and select overseas markets. We have been pursuing opportunities for commercial application of alternative fuel options, including bio-diesel, jatropha arrangement with CSMCRI (Central Salt and Marine Chemicals Research Institute), electric, fuel cell, hydrogen etc, with many parties for quite some time, said GM Indias vice-president of corporate affairs, P Balendran. Our efforts are ongoing and we have nothing to announce as of now. As soon as we finalise our plans for introduction of any alternative fuel solutions, we will announce the same, he added. The two companies will enter into a 50:50 joint venture (JV), which is currently awaiting the green signal from GMs Detroit headquarters. If the JV goes through, it will be GMs first deal since it filed for Chapter 11 bankruptcy. The new alliance is another indicator of how much the Indian market means to the Chevy (Chevrolet) brand and the significance of electric vehicles in GMs growth plans. GM has already indicated that it will introduce the Volt electric vehicle in India in a completely-imported form. GM has already indicated that e-vehicles are its chosen technology of the future. And its not the only one. Ford and Chrysler as well as Japanese auto majors Toyota, Nissan and Honda are all queuing up. Reva has just announced that it will unveil two new models at the upcoming 63rd Frankfurt International Motor Show. The Reva NXR (next revolution), a sporty twoseater with a targa roof, will go into production in 2011 and the REVA NXG (next generation) will be available from next year. Copyright 2009, Bennett, Coleman & Co. Ltd. All Rights Reserved"
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| CARS, SUVs, MUVs Go To Top N. Ramakrishnan The Hindu Business Line (Web & Print Edition)
Chennai: Hyundai Motor Indias premium hatchback i20 will be on the roads in Australia and New Zealand before the year-end as the company begins expanding its export base. I hope we can ship around November (to Australia and New Zealand), then they can start to sell as Year 2010 model, says Mr H.S. Lheem, Managing Director, Hyundai Motor India Ltd (HMIL).
Hyundai Motor India will use the distributor network built by its parent Hyundai Motor Company of Korea to sell its products in the newer markets that it plans to tap for exporting the i20 and the i10.
The premium hatchback is a significant segment in Australia and New Zealand, according to Mr Lheem, who hopes that the two countries together will account for 10,000-15,000 cars a year.
Information available on Hyundai Motor Companys Web site shows that the company sells the Getz (the predecessor of the i20) in Australia, with the basic variant costing Australian $13,990 and the top-end variant A$ 18,340. The Getz competes with Holden Barina (starting at A$14,790 and going up to A$18,290), Ford Fiesta (A$ 16,450 A$ 18,690) and Toyota Yaris (A$15,890 A$ 20,140).
Hyundai Motor Companys subsidiary Kia Motors too is present in Australia. According to Mr Lheem, the company is looking at Vietnam, Taiwan and a host of non-European countries to export the i20.
According to Mr Lheem, Europe still accounts for the bulk of HMILs exports, taking up 60 per cent of the cars shipped from its Irungattukottai factory, 45 km to the west of Chennai.
He said that the i10 would be shipped to Mexico, for which country Hyundai had an agreement with Chrysler. HMIL was selling the Santro in Mexico badged as Dodge Atos. South America was a large export market for Hyundai, with the Santro (called the Atos Prime) being sold in Colombia, Peru and Ecuador too. In the Colombian taxi segment, the Santro held a more than 50 per cent market share, Mr Lheem said.
He said the company benefited from the scrapping incentives offered by a number of European countries, as part of a stimulus package to revive their economies. Most countries had withdrawn these incentives, despite which Mr Lheem was confident that the companys export volumes would not go down drastically. The UK still offered the incentive, he added.
Hyundai would shift some production of the i20 from next year to its plant in Turkey. This move, Mr Lheem said, would help Hyundai save on freight costs and import duty. Initially, the Turkey would produce a maximum of 30,000 units, mainly the three-door and the left-hand drive versions, sold in Continental Europe. Hyundai Motor India would continue to produce the i20 for other export markets, including the UK. It would export body parts, engine and transmission to Turkey, and train technicians for the Turkey plant.
Hyundai and IPL This year, when the Indian Premier League was played in South Africa, Hyundai had joint advertisements with local distributors. And, we provided all the transportation to the Shahrukh Khan team, Mr Lheem said.
Shahrukh Khan, owner of the Kolkata Knight Riders, an IPL franchisee, is HMILs brand ambassador, initially for the Santro and now for the i10. http://www.thehindubusinessline.com/2009/09/12/stories/2009091251920100.htm
TOYOTA EXPECTS TO SELL 3,500 CARS IN GUJARAT Business Standard (Web Edition)
Mumbai/ Ahmedabad: Following on the path of its competitors, Toyota Kirloskar Motor Pvt. Ltd. (TKM) is also planning to up its footprint in Gujarat. By the end of calendar 2010, the car maker expects to set up 3-4 more outlets, other than the existing six outlets in Gujarat.
According to Ajit Mehta, chairman of Infinium Toyota, one of TKM's dealers in Gujarat, "Currently, the company has six outlets in cities at Ahmedabad, Rajkot, Surat, Vadodara and Himmatnagar. Once more outlets are added, the company is expecting to sell about 3,500 units. By end of 2010, TKM will have 9-10 outlets," said Mehta.
In Gujarat, the company would market its six car brands including Corolla, Innova, Altis, Land Cruiser, Prado and Fortuner through its outlets.
"Toyota is very keen on the Indian market and we expect to sell around 52,000 units in India by end of 2009," said Hiroshi Nakagawa, managing director of TKM.
For TKM, Gujarat contributes around seven per cent, of which Ahmedabad forms four per cent. http://www.business-standard.com/india/news/toyota-expects-to-sell-3500-cars-in-gujarat/369828/
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| COMMERCIAL VEHICLES Go To Top Manu P. Toms The Hindu Business Line (Web & Print Edition)
Mumbai: The commercial vehicle industry, which has had a rough run over the last year, could see a spurt in sales thanks to the new emission norms which will be effective April 1, 2010. This is because the process of upgrading technology will make buses and trucks dearer and, therefore, prompt end-users to opt for the existing range which will be around till March 31.
The new clean-air norms will see at least 11 cities move to Bharat Stage IV (from BS III) while the rest of the country graduates from BS II to BS III.
In the process, engines will need to be upgraded which will translate into a three to seven per cent hike in costs, say sources at Tata Motors, the countrys largest commercial vehicle maker.
The final price tag for a truck or bus operating on Indian roads could be anywhere higher by Rs 10,000 to Rs 4 lakh depending on the vehicle and the manufacturer. Industry representatives say that this will lead to a buying spree in the next few months leading up to April 2010.
Commercial vehicle buyers are value-conscious. We expect a sales increase going in line with what occurred during the last two rounds of emission norm changes, Mr Ravi Pisharody, President, Commercial Vehicles, Tata Motors, told Business Line.
Norms implementation India began implementing emission standards from 2000 with BS II for the National Capital Region and BS I elsewhere. In 2005, BS III was enforced for select cities while other parts of the country moved to BS II.
At this stage, it is difficult to predict any numbers as we are just coming out of the downturn but there will be more sales since this is the historical trend.
Costing is still under way and prices could increase Rs 30,00060,000, depending on the vehicle, added Mr Somnath Bhattacharjee, Executive Vice-President, VE Commercial Vehicles, Sales, Marketing and Aftermarket.
During this transition, the company will phase out 10-15 BS II models by end-March. With BS IV, the pollutant level for commercial vehicles, including greenhouse gases, should be down to 4.3 gm per kilowatt hour (kWhr) against 7.86 gm/kWhr for BS III. http://www.thehindubusinessline.com/2009/09/12/stories/2009091250820200.htm
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| HERO HONDA AIMS TO SELL 6 LAKH UNITS THIS FESTIVAL SEASON Neha Rishi Daily News & Analysis
Hero Honda Motors Ltd, India's biggest two-wheeler company by sales, is gearing up for the upcoming festival season. The company took several cost-cutting initiatives over the last one-and-a-half years, which, it says, are showing results now. The vehicle maker expects its Haridwar plant with its tax benefits help in increasing profits. DNA's Neha Rishi caught up with Anil Dua, senior vice-president (marketing & sales), Hero Honda, to get an industry overview and low down on company's plans. Excerpts from the interview:
Urban market is reviving--what are the pockets of growth for you in the segment? About 60% of our sales are in the urban market, and our domestic market share has been going up, which would not have been possible without a strong growth from the urban market. In the first quarter, the industry grew by 12% whereas Hero Honda grew by 25%. In the premium segment, which is 150cc and above, we grew 37-38% against the industry growth of 30%. Majority of the 150cc and above vehicles sell in urban areas. In scooters we have 100cc Pleasure with most of its clientele in cities. This brand has been growing over 60%. In the last two-and-a-half years we have doubled volumes and market share in the premium segment, and in scooters we are selling 15,000 units a month from 9,000 units earlier. Urban markets may have grown slower than rural ones but by strengthening portfolio and expanding dealership network we have been able to gain market share.
What was the decline in the urban market? Hero Honda never declined in the urban market. In 2007-08 the industry declined overall by 5%, but we managed to stay in the positive territory, in 08-09 the industry grew 5% and Hero Honda grew 12%. Around 50% of the market is with us and we have grown by 25% whereas the total industry growth is 12%. So you can see that the rest of the industry growth has been flat. That's because some large players had flat or very low growth and it's some of the smaller players that are pulling it up. The overall industry growth without Hero Honda would be 2-3% in the first quarter. Also, the rural market share increased from 38% to 40%, because they did not face financing issues as the urban markets did.
Do you see Hero Honda crossing the 6,00,000 mark in the festive season? Last year Dusshera and Diwali were in the same month--October. This year Dusshera is in September and Diwali falls in October. We don't look at growth as month over month, but festival period over festival period. Last festival period we sold 6,00,000 vehicles and this time we hope to do better than that.
Premium bike segment is getting aggressive. Would Hero Honda launch more models in that segment? We never look at what competition is doing, but what customers want and give them that before anyone else at maximum value. With 59% domestic market share, we cannot afford to look at just one part of the market. By this multi focal approach, we have created brands like CD Deluxe, Splendor and Passion. We expect growth to come from all areas, whether urban or rural, bikes or scooters as there is room to grow everywhere. Hero Honda being the market leader will not ignore any set of customers and will launch bikes across the segments.
Raw material prices are rising again; do you see any impact during the rest of the year? Our raw material cost was 72% of our sales last year, and it had come down to 64% during the first quarter, so there is some room there. One has to see if these are long-term trends or short-term movements. Apart from lower material costs, there have been several reasons for good profits in the first quarter. We took several cost-cutting initiatives over the last one-and-a-half year, which are showing results now. Our Haridwar plant can avail many tax benefits, and as we get more output from there we can increase our profits.
Hero Honda hasn't been offering discounts since two years. Now with the competition heating up, would we see discounts coming back? For us competition never cooled down. There have been launches by our competitors, some successful, some not. I don't see competition dying down, and we stay true to our strategy -- no discounting of products. A consumer's primary consideration is the brand, which is the biggest differentiator. They will not pay attention to smaller considerations like Rs 1,000 off or a better interest rate etc.
Interest rates may inch up in the second half of the year. What impact do you see on your sales? In financing there are two aspects, one is interest rates and the other is liquidity, and also there is the aspect of willingness to lend. Though interest rates came down, our financing reduced to less than 20% from 60%, and that happened because the banks and the entire financial system became risk averse. So, for us the actual liquidity, actual willingness and risk aversion has played a role against the lower interest rates help increase financing. Therefore, a small movement in interest rates, up or down, will not make any difference. If the financing system opens up then you will see retail finance go up despite rates rising a little.
Any plans of staring a finance company? We always had plans for our financing arm and we have looked at the possibility several times. But over the last couple of years we thought it was not the right time to get into it because when established players are struggling we thought a new player like us would face tough times. But the proposal is there and at the right time we will look into it again. http://www.dnaindia.com/money/interview_hero-honda-aims-to-sell-6-lakh-units-this-festival-season_1289471
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| COMPONENTS Go To Top The Hindu Business Line
Mumbai: Auto parts maker Amtek Auto Ltd said on Friday it raised $65 million by issuing foreign currency convertible bonds (FCCBs) which bear a coupon of 5.625 per cent payable semi-annually.
The FCCBs will have a maturity of 5 years and 1 day and will be convertible at an initial conversion price of Rs 148.40 a share. The firm intends use the proceeds to pay off existing debt, Amtek Auto informed the BSE http://www.thehindubusinessline.com/blnus/02111102.htm
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| FINANCE & INSURANCE Go To Top See this story in: The Indian Express New Delhi: Hyundai Motor India Ltd (HMIL), the second largest car manufacturer and the largest passenger car exporter signed a Memorandum of Understanding (MOU) with Bank of Rajasthan, a leading private sector bank with a nationwide presence, for facilitating car loan financing for its range of vehicles.
With a stronghold in the state of Rajasthan, the bank boasts of a presence of 463 branches across India. Bank of Rajasthan is committed to a high level of customer satisfaction through efficient and personalized services.
This association with HMIL will help both the partners reach out to wider market base by making auto loans convenient and easy for prospective consumers.
Speaking on the occasion, Arvind Saxena, Sr. Vice President, Marketing & Sales, HMIL, said, We are extremely pleased to partner with Bank of Rajasthan, as it will add to the financing options for our products and give our customers more choice and competitive financing options. It will also help us penetrate in to new areas and markets like Rajasthan where Bank of Rajasthan has a strong presence and we are confident that it will be a mutually beneficial partnership. "
This MOU with the Hyundai Motor India Ltd. will facilitate additional retail finance options for passenger vehicles. Given the vast network of Banks branches and HMIL dealerships, the MOU is of benefit to both, allowing the Bank to further strengthen its presence in retail assets segment and HMIL to tap rural and semi urban markets, said Mr. K. K. Sharma, Executive Director, The Bank of Rajasthan Ltd. http://www.indianexpress.com/news/hyundai-motor-inks-mou-with-bor-for-car-loans/515828/
PTI
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| OIL, LUBRICANTS & ALTERNATIVE FUELS Go To Top Udayan Mukherjee and Mitali Mukherjee mint
Mumbai: Exploration firms may have to bear most of the losses from auto fuel subsidy, expected at around Rs15,000-16,000 crore in fiscal 2010, till global crude prices are at $70 a barrel, oil secretary R.S. Pandey said in an interview on Friday. But oil marketing companies (OMCs) also may have to bear some of the subsidy.
Edited excerpts:
You have just finished many road shows for the New Exploration Licensing Policy-8 (Nelp-8). What was the response?
The response has been good in terms of attendance and interest. The attendance at Bombay, Houston, Kalahari and London have been better than last time. The US government, in particular, has been very helpful and they organized a good meeting with all the major companies in the US.
But the bids are yet to be received; the date is early October, rather mid-October, and let us see how the response comes. But because of the prospectivity of India, the Krishna-Godavari (KG) basin gas, the Cairn Energy (find), while on the western part of our country, the response so far has been good, but there is also downturn in the global economy... So let us see how the final bids go.
Would the auto fuel losses or subsidies be borne at all by the OMCs or would it be fully borne by a combination of the government and the upstream companies?
This years situation is very different from what it was last year; last year it has been volatility of an extreme kind, it was really very bad. The overall extent of subsidy was Rs1.03 trillion; it was a very difficult year.
This time, the situation is somewhat different. But this time also, the consumers interest has to be taken on board; its a difficult situation.
The estimates are that the overall under recovery when we close the year will be to the extent of Rs45,000-50,000 crore. Of this, about Rs17,000 crore will be on account of kerosene, about Rs12,000-13,000 crore will be on account of liquefied petroleum gas (LPG), and the remaining Rs15,000-16,000 crore will be on account of petrol and diesel. As for kerosene and LPG, assuming that crude stays more or less at the current level, which is around $70 per barrel, that will be contributed entirely by government.
As far as the subsidy on auto fuel is concerned, which is estimated to be around Rs15,000-16,000 crore, most of it will come from upstream companies, but some sharing could be done by downstream companies also.
Are you saying that the under-recovery will be split between upstream and downstream companies? In what proportion?
The government has decided that the under-recovery on LPG and kerosene will be borne entirely by the government. Now the question of under recovery for petrol and diesel is estimated to be about Rs15,000-16,000 crore. A bulk of it would be borne by the upstream companies and to some extent, it could be borne by the downstream companies also. The government is not going to subsidize this Rs15,000-16,000 crore.
Would 80% of it come from upstream companies, or more?
I wont hazard a guess in terms of percentages. We will look at the profitability of upstream companies on the nominated blocks and also look at the profitability of the oil marketing companies and take a call.
Will compensation in any form be given to OMCs through bonds?
Yes. On account of kerosene and LPG, the total under recovery would be compensated by the government. Most likely, the form would be bonds but let us see how it goes.
We understand that there is a cabinet note on natural gas pricing ready.
The tariff commission has recommended that the administered pricing mechanism of gas prices require a revision and that is under process. When it will be decided and in what form, it is premature to say at this stage.
Will there be a comprehensive overhaul of policy along the lines of the documents lying with you from various committees, including the Rangarajan Committee, which would be a big policy shift rather than a quarter-to-quarter movement on these decisions?
Quarter-to-quarter, the extent of subsidy and the sharing among the companies is decided in the ministry. But about the long-term policy resolution of the whole issue, recently in pursuance of the announcement in the budget by the finance minister, the petroleum ministry has constituted a committee headed by Kirit Parikh. There are two more economists, the secretaries in the ministry of petroleum and finance are also members, and in three months time, it is expected that this committee will come out with some kind of a recommendation for consideration of the government about the long-term view, about retail prices of essential petroleum products. So let us wait and see.
Any timeline for fuel pricing reforms?
The committee has been given three months timeline and lets see after the report comes then how the government accepts or modifies it. http://www.livemint.com/2009/09/11225333/Marketing-cos-may-have-to-bear.html
OIL EASES BELOW $72 ON DEMAND DOUBTS
See this story in: The Times of India
London: US crude oil slipped below $72 a barrel on Friday, after three days of gains, as investors questioned whether the pace of demand recovery justified current prices.
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| INTERNATIONAL NEWS Go To Top Reuters See this story in: The Economic Times
Frankfurt: Auto parts supplier Magna is discovering that its customers like BMW are concerned that it may become a competitor as well as a vendor if it acquires a controlling stake in German carmaker Opel.
PTI See this story in: The Tribune, The Times of India, Deccan Chronicle, Rediff India
New York: In an all-out effort to restore confidence in its products, General Motors will offer a 60-day money-back guarantee on all its vehicles beginning Monday, says a media report.
In its first major marketing campaign since emerging from bankruptcy, GM is putting its new chairman Edward E Whitacre Jr in the spotlight as the spokesman for the offer to give customers a full refund within 60 days on any GM car or truck, The New York Times said.
The campaign, called "May the Best Car Win," is part of GM's effort to change its image as a financially struggling company with substandard products. The first television ads featuring Whitacre would begin Sunday.
Whitacre is hoping to restore confidence in GM just as Iacocca did with his ads for Chrysler in the 1980s, the report noted.
I'm happy to do it, I wanted to do it, and I think it is important to do it," quoting Whitacre the report said. http://www.tribuneindia.com/2009/20090912/biz.htm#11 http://www.deccanchronicle.com/business/general-motors-offer-money-back-guarantee-840
GM TO RESTORE SALARIED WORKER PAY CUTS Agencies See this story in: The Economic Times
Detroit: A person familiar with the matter says General Motors Co is telling employees in an e-mail that it will restore white-collar pay cuts made earlier this year, as of Sept. 1. The person requested anonymity because no official announcement has been made.
AFP See this story in: Hindustan Times Berlin: Relief in Europe that General Motors has found a buyer for Opel turned on Friday to worries about job cuts and plant closures, and over whether "New Opel" can survive. Further concerns focused on the involvement of the Russian government in the loss-making new firm, and over whether the deal may yet fall apart over what GM has called "several key issues" still to be dealt with.
Under the deal unveiled on Thursday, GM has agreed to sell a 55-per cent stake in Opel to Canadian auto parts maker Magna and to state-owned Russian lender Sberbank. GM will retain 35 per cent and employees the rest.
The agreement covers all GM's European operations except Swedish unit Saab which is likely to be bought by a Swedish company with support from Chinese interests.
The breakthrough was seen as a coup for Germany, where the government under Chancellor Angela Merkel had pressed hard for GM to choose Magna and Sberbank, offering 4.5 billion euros in financial sweeteners.
Half of Opel's 50,000 employees work in Germany, and in a boost for Merkel's chances of winning a second term in elections on September 27, Opel's new owners have pledged to keep open its four main plants in the country.
"I am exceptionally happy about this decision, which is along the lines of what the government wanted," a visibly relieved Merkel said in Berlin on Thursday, as she rushed to unveil the news even before GM.
But with Magna expected to cut 10,000 jobs, elsewhere in Europe there were worries about where Opel's new owners would make the major cuts that analysts say are crucial for long-term survival.
Opel has about 7,000 employees in Spain, 4,700 at Vauxhall in Britain, 5,500 in Belgium, 1,800 in Italy, 1,600 in Austria and 1,500 in France, according to GM Europe's website. GM vice-president John Smith said in Berlin on Thursday that Opel's new owners were "contemplating" winding down a plant at Antwerp, Belgium, and shifting some production from Spain to Germany.
Unions in Belgium expressed hope that a decision to close Antwerp had not yet been taken, and the head of the Flemish government called on the European Commission to probe Germany's state aid.
In Britain, Vauxhall workers were worried, with one saying: "I'm absolutely devastated, for the simple reason it doesn't secure the long-term future for this place. The morale is low."
Merkel's government also has tricky talks ahead with other European governments over contributions to Germany's state aid package.
It is also far from certain that Magna and Sberbank will be able to carve out a place for "New Opel" in a still struggling global auto industry where in Europe and North America too many cars are being made for too few customers.
"The winner could be the loser tomorrow," analyst Juergen Pieper from Metzler Bank told AFP. "Everyone knows there is enormous over capacity in the market ... and Opel is by far the weakest player in Europe."
"Magna cannot be a big help in industrial terms," he said. "They haven't constructed any cars of their own, they don't have volume they don't have anything to combine Opel's products with, they cannot deliver special expertise."
German mass circulation daily Bild was also sceptical: "Who is going to pay? The German taxpayer ... Germany is carrying all the risk. Opel is not rescued yet by a long shot."
"German politicians may breathe a sigh of relief ... Voters should be more worried. They will pay a high price -- fiscally, economically and politically -- for short-term peace of mind," the Financial Times said.
Newspapers also raised concerns about the Kremlin's involvement, with Germany's Frankfurter Allgemeine saying that "no one knows what the Russians are really planning, what extra demands they will have."
Magna and Sberbank want Russian carmaker GAZ, owned by billionaire oligarch Oleg Deripaska, to use its plant in the city of Nizhny Novgorod to make Opels for the depressed Russian market.
Belgian media were also unimpressed, with La Libre Belgique crying simply: "Merkel wins!"
GM, SAIC MAY JOIN HANDS FOR MINI-VEHICLES IN INDIA Bloomberg See this story in: mint
Shanghai: US automaker General Motors Co. and Chinese partner SAIC Motor Corp. are considering making mini vehicles together in India because of demand for low cost automobiles, according to two people familiar with the discussions.
The automakers may draw on Wuling mini vehicle technology, said the people, who declined to be identified because the discussions are confidential. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ECONOMY & FINANCE Go To Top The Hindu Business Line
Mumbai: The countrys foreign exchange reserves rose by $1.28 billion to touch $277.64 billion for the week ended September 4, according to the figures released in the Reserve Bank of Indias Weekly Statistical Supplement.
This is the third consecutive week that forex exchange reserves have increased.
Currency revaluation The rise in reserves was mainly on account of currency revaluation, said a forex dealer. In the week ended August 28, forex reserves had increased by $4.4 billion to $276.3 billion. In the week under consideration, foreign currency assets increased by $1.13 billion to touch $261.65 billion. Gold increased by $157 million to touch $9.828 billion. SDRs went down by $3 million to $4.818 billion.
The countrys reserve position in the IMF fell by $1 million to $1.346 million Next week the rupee could see levels of 48.20, but ultimately it will depreciate. The factors to watch out for are the euro, which is due for a correction and the domestic stock market which has gained substantially, said the dealer. http://www.thehindubusinessline.com/2009/09/12/stories/2009091251050600.htm
PTI See this story in: The Hindu Business Line
Mumbai: The benchmark Sensex which rose by 121 points in opening trade on Friday gave up most of the gains later. The Sensex ranged between a high of 16,337 and 16,130 during the day before closing at 16,264.30, up 47.44 points over yesterdays close. The index rose initially by 121.12 points to 16,337.98 points in opening trade following buying by foreign funds and retail investors driven by firm global markets. Decliners The wide-based National Stock Exchange index Nifty closed at 4,829.55, up by 10.15 points.
Brokers said firm trend on other Asian markets after a strong Chinese economic data for August boosted buying on the domestic front initially. The US' Dow Jones Industrial Average closed 0.84 per cent higher in yesterday's trade. http://www.thehindubusinessline.com/blnus/05111901.htm
INDIA SET TO ACHIEVE 6% GROWTH: RBI PTI See this story in: The Hindu Business Line
Hyderabad: The Reserve Bank of India on Friday said the country is unlikely to return to a high growth rate till the global economy comes out of the recessionary phase, but maintained GDP rate of 6 per cent is on course.
The economy is unlikely to revert back to trend growth soon, as recession in the advanced economies would persist with global growth projected to contract by 1.4 per cent by the IMF with a more sizeable fall in world trade by 12 per cent, RBI deputy go vernor Ms Usha Thorat said at a seminar here.
The Indian economy is expected to grow by 6 per cent as per the latest assessment made by the RBI. GDP growth in the first quarter of 2009-10 (6.1 per cent) is broadly consistent with that, she added.
The global economic crisis, she said, has lowered India's growth rate from 9 per cent in 2007-08 to 6.7 per cent in 2008-09, mainly due to falling exports and shrinking foreign liquidity. The current focus is to bring back the economy to the high growth path as a key means to ensure higher living standard for all, Ms Thorat said.
RBI in its monetary policy forecasts the economy would grow at 6 per cent with an upward bias this fiscal, a rate that's in tandem with the Prime Minister's Economic Advisory Council chairman Dr C Rangarajan's projection of 6 to 6.5 per cent. http://www.thehindubusinessline.com/blnus/01111720.htm
Last Financial closing
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Monday, September 14, 2009
Indian Auto Industry Update September 12, 2009
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