Indian Prime Minister Manmohan Singh and Congress party chief Sonia Gandhi will meet the nation’s president later today to stake a claim to forming the next government, buoyed by the support of regional parties.
Singh’s Congress-led alliance scored the biggest election win in two decades on May 16, capturing about 260 lower-house seats, leaving it needing just a dozen more for a majority. Several parties have submitted letters of support to President Pratibha Patil’s office, taking backing for the ruling United Progressive Alliance above 300 lawmakers.
The two leaders will meet Patil at 5 p.m. local time, Congress party spokesman Janardan Dwivedi told reporters in New Delhi today after a meeting of the governing coalition. Gandhi was endorsed as the head of the ruling alliance, said Mamata Banerjee of the All India Trinamool Congress, a key ally, while Singh was backed as prime minister in the incoming government.
Singh is expected to name his ministerial team this week, with Pranab Mukherjee favorite to retain the finance portfolio as the new government plots a way out of the economic downturn. Rahul Gandhi, Sonia’s son and the Congress party’s star campaigner during the election, may join the cabinet.
Singh, 76, will enjoy greater stability in his second term as premier, no longer having to depend on the support of communist parties for survival. Still, the constituents of the next government will only be known after the existing alliance decides on the additional backing it will take on board.
The Communists, whose support was key to propping up the outgoing government for most of its five-year term, stalled a bill to raise the foreign investment ceiling for insurers to 49 percent from 26 percent. Singh also failed to pass a bill aimed at removing a 10 percent cap on the voting rights of foreign investors in non-state banks. His plan to permit global retailers into India also foundered.
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Wednesday, May 20, 2009
Tuesday, May 19, 2009
Can India's Congress Party Deliver for Business?
It took less than a minute for exuberant investors to weigh in on the results of India's elections. Buoyed by the weekend news of the surprisingly strong win by the ruling coalition, India's stock market soared on May 18, the first business day after the tally was announced. When the market opened at 9:55 a.m., it quickly hit the upside barrier limiting the amount of one-session movement, and traders had to pause for two hours. Trading briefly resumed at 11:55, and again, stocks soared before hitting their upward limit. By noon, the market was already closed for the day, with the benchmark Sensex index rising a record 17% in just 55 seconds of trading.
Investors have good reason to be thrilled. The Congress Party-led coalition scored a decisive victory on May 16, allowing India a stable government unencumbered by the demands of allies from the leftist parties that had fought major economic liberalization in the past five years. The returning Prime Minister, Manmohan Singh, is an economist by training and has shown a tendency to embrace economic reforms in the past. This is the "strongest government platform in India over the last two decades, and the opportunities could be substantial," wrote Citigroup (C) analyst Aditya Narain in a note to clients May 18. "The big question: Is it a 'game changer'? Can India get back to the high growth-high valuation of recent years? This event probably does open up meaningful possibilities."
The thumping approval the stock market delivered on Monday may be premature. India's market is relatively volatile and has been a poor leading indicator in the past. Until Friday, the market was up 26% for the year, even though the broader Indian economy has shown few signs of a solid recovery. Indeed, exports were down 33% for the last quarter. With the Indian rupee advancing the most in two decades on the back of Monday's rally, exports will get more expensive. "The elections are certainly good news from the perspective of economic reforms," says HSBC (HBC) senior Asian economist Robert Prior-Wandesforde. "Whether it is worth 17% is debatable."
To Read More CLICK HERE
Investors have good reason to be thrilled. The Congress Party-led coalition scored a decisive victory on May 16, allowing India a stable government unencumbered by the demands of allies from the leftist parties that had fought major economic liberalization in the past five years. The returning Prime Minister, Manmohan Singh, is an economist by training and has shown a tendency to embrace economic reforms in the past. This is the "strongest government platform in India over the last two decades, and the opportunities could be substantial," wrote Citigroup (C) analyst Aditya Narain in a note to clients May 18. "The big question: Is it a 'game changer'? Can India get back to the high growth-high valuation of recent years? This event probably does open up meaningful possibilities."
The thumping approval the stock market delivered on Monday may be premature. India's market is relatively volatile and has been a poor leading indicator in the past. Until Friday, the market was up 26% for the year, even though the broader Indian economy has shown few signs of a solid recovery. Indeed, exports were down 33% for the last quarter. With the Indian rupee advancing the most in two decades on the back of Monday's rally, exports will get more expensive. "The elections are certainly good news from the perspective of economic reforms," says HSBC (HBC) senior Asian economist Robert Prior-Wandesforde. "Whether it is worth 17% is debatable."
To Read More CLICK HERE
Sunday, May 17, 2009
"We Are Taking Online Social Network Offline In India": MySpace
MySpace launched its operations in India in May last year. About one year after the establishment of its India office, News Corp’s social networking site claims to have attained over 2 million users in India. The number is certainly small when compared to other established social networks such as Facebook or Orkut which are expanding the user base in the country by launching in regional languages. MySpace's latest initiative in India is that they are taking their online users offline by engaging them in different meetups like movie screenings, music shows etc.
VCCircle spoke to the Country Manager of MySpace India, Hari V Krishnan. Krishnan, who has an MBA from INSEAD in France and a Masters of Science degree in Telecommunications from the University of Colorado, has worked in the areas of corporate planning, strategic alliances, product management & marketing with companies like Cisco Systems and Yahoo!.
To Read More from The Interview CLICK HERE
VCCircle spoke to the Country Manager of MySpace India, Hari V Krishnan. Krishnan, who has an MBA from INSEAD in France and a Masters of Science degree in Telecommunications from the University of Colorado, has worked in the areas of corporate planning, strategic alliances, product management & marketing with companies like Cisco Systems and Yahoo!.
To Read More from The Interview CLICK HERE
Friday, May 15, 2009
New Symbol For India's Rupee
It has a venerable culture. It has growing economic might. But what India doesn't have is a currency symbol that reflects those things, according to its government, which has launched a public competition to find one.
Unlike other major currencies such as the U.S. dollar, the British pound, the euro and the Japanese yen, the Indian rupee lacks an easily recognizable identification symbol -- a logo to set beside the $, the £, the € and the ¥. It is currently depicted around the world as either "Rs" or "INR" and is designated differently in various Indian languages.
In March, the Finance Ministry called for suggestions for a logo in a nationwide contest. It attracted about 3,000 entries before it closed April 15.
"The Indian economy is growing at a fast rate, and it will get more integrated with the global economy with the passage of time," Govind Mohan, a ministry official, said in an e-mail response to questions about the purpose of the contest. "The symbol would standardise the expression for Indian Rupee in different languages, within and outside the country. It will better distinguish the Indian currency from those countries whose currencies are also designated as Rupee or Rupiah, such as Pakistan, Sri Lanka and Indonesia."
A seven-member jury, including representatives from the government, the central bank and two fine arts colleges, is expected to meet soon to examine the submissions. Mohan said it should take a year to select the symbol. There have been no considerations yet about when it might be adopted or how much that will cost.
The winning entrant will receive $5,000 and five runners-up will each get $500.
To read More CLICK HERE
Unlike other major currencies such as the U.S. dollar, the British pound, the euro and the Japanese yen, the Indian rupee lacks an easily recognizable identification symbol -- a logo to set beside the $, the £, the € and the ¥. It is currently depicted around the world as either "Rs" or "INR" and is designated differently in various Indian languages.
In March, the Finance Ministry called for suggestions for a logo in a nationwide contest. It attracted about 3,000 entries before it closed April 15.
"The Indian economy is growing at a fast rate, and it will get more integrated with the global economy with the passage of time," Govind Mohan, a ministry official, said in an e-mail response to questions about the purpose of the contest. "The symbol would standardise the expression for Indian Rupee in different languages, within and outside the country. It will better distinguish the Indian currency from those countries whose currencies are also designated as Rupee or Rupiah, such as Pakistan, Sri Lanka and Indonesia."
A seven-member jury, including representatives from the government, the central bank and two fine arts colleges, is expected to meet soon to examine the submissions. Mohan said it should take a year to select the symbol. There have been no considerations yet about when it might be adopted or how much that will cost.
The winning entrant will receive $5,000 and five runners-up will each get $500.
To read More CLICK HERE
India Sugar Prices Will Gain 8% Next Year, Says Bajaj
Sugar prices in India, the world’s biggest user, may be 8 percent higher on average next year as a decline in output squeezes supplies, Bajaj Hindusthan Ltd., country’s biggest producer, said.
Prices may average 26,000 rupees ($525) a metric ton in the year from Oct. 1, compared with 24,000 rupees likely this year, Bajaj told investors in a note. Sugar has averaged 20,060 rupees this season on the National Commodity & Derivatives Exchange Ltd.
Raw sugar in New York reached a three-year high this week on speculation a decline in India’s production may worsen the first global supply deficit in three years. Demand worldwide may top output by 7.8 million tons in the year to Sept. 30, compared with a previous estimate of 4.3 million tons, the International Sugar Organization has said.
“The sugar industry has passed through difficult times in the past two years and all indicators suggest that the situation should correct in sugar season 2009-10 and 2010-11,” Bajaj said.
India’s cane output declined after the government raised the minimum price for competing crops such as wheat in a bid to bolster grain output, according to Czarnikow Group Ltd. Growers also switched acreage as cash-strapped mills delayed or withheld payments for cane supplies, Czarnikow said.
Sugar futures for July delivery rose 0.1 percent to 15.49 cents a pound at 2:44 p.m. in Mumbai in after-hours trading on ICE Futures U.S. in New York. On May 12, the price reached 16.03 cents, the highest since July 2006. Refined, or white, sugar for August delivery in London was little changed at $437.50 a ton.
Vashi Price
Prices on the National Commodity & Derivatives Exchange Ltd. in Mumbai reached a record May 6, while rates at Vashi, India’s biggest market for the commodity, have gained 57 percent in the past year amid forecasts of lower output.
June-delivery futures fell as much as much as 0.4 percent to 2,344 rupees per 100 kilograms. Prices reached 2,430 rupees this month, the highest since trading began in 2004.
Production may rebound to 18 million tons and imports will climb 50 percent to 3 million tons, Bajaj said. Domestic demand will total 22.9 million tons in 2009-10 even as end-of-season stocks halve to 2.5 million tons, the company said.
The stocks-to-use ratio, or stockpiles relative to demand, will decline to 10.9 percent next year from 19.6 percent this season, supporting prices, the company said.
To Read More CLICK HERE
Prices may average 26,000 rupees ($525) a metric ton in the year from Oct. 1, compared with 24,000 rupees likely this year, Bajaj told investors in a note. Sugar has averaged 20,060 rupees this season on the National Commodity & Derivatives Exchange Ltd.
Raw sugar in New York reached a three-year high this week on speculation a decline in India’s production may worsen the first global supply deficit in three years. Demand worldwide may top output by 7.8 million tons in the year to Sept. 30, compared with a previous estimate of 4.3 million tons, the International Sugar Organization has said.
“The sugar industry has passed through difficult times in the past two years and all indicators suggest that the situation should correct in sugar season 2009-10 and 2010-11,” Bajaj said.
India’s cane output declined after the government raised the minimum price for competing crops such as wheat in a bid to bolster grain output, according to Czarnikow Group Ltd. Growers also switched acreage as cash-strapped mills delayed or withheld payments for cane supplies, Czarnikow said.
Sugar futures for July delivery rose 0.1 percent to 15.49 cents a pound at 2:44 p.m. in Mumbai in after-hours trading on ICE Futures U.S. in New York. On May 12, the price reached 16.03 cents, the highest since July 2006. Refined, or white, sugar for August delivery in London was little changed at $437.50 a ton.
Vashi Price
Prices on the National Commodity & Derivatives Exchange Ltd. in Mumbai reached a record May 6, while rates at Vashi, India’s biggest market for the commodity, have gained 57 percent in the past year amid forecasts of lower output.
June-delivery futures fell as much as much as 0.4 percent to 2,344 rupees per 100 kilograms. Prices reached 2,430 rupees this month, the highest since trading began in 2004.
Production may rebound to 18 million tons and imports will climb 50 percent to 3 million tons, Bajaj said. Domestic demand will total 22.9 million tons in 2009-10 even as end-of-season stocks halve to 2.5 million tons, the company said.
The stocks-to-use ratio, or stockpiles relative to demand, will decline to 10.9 percent next year from 19.6 percent this season, supporting prices, the company said.
To Read More CLICK HERE
India’s National Election Spreads Billions Around
India’s monthlong nationwide election is often called the world’s largest exercise in democracy. It could also be regarded as a big economic stimulus engine.
Candidates and parties spent $3 billion on everything, including transportation, advertising, celebrity endorsements and cash bribes over the course of the campaign, according to economists and political analysts. In comparison, the last United States presidential campaign cost an estimated $2.4 billion.
The campaign, which will wrap up Saturday with a final tally of the votes, is trickling through the economy and plumping earnings at television stations, advertising agencies, florists, airlines, car companies and gas stations. It is adding to the business for sweets manufacturers, priests and astrologers.
The programs are so extensive that the amount of money spent in India will give a 0.5 percent boost to the country’s gross domestic product for two quarters of this year, says Kotak Securities, a brokerage firm.
“Every candidate spent money on pujas and rituals,” said K. N. Somayaji, an astrologer and Brahman priest in Bangalore. He says more than 200 candidates called him for his services, which include invoking Kali, the goddess of victory. The most elaborate ritual he performed during this election involved 350 priests from Kerala and cost more than $300,000, he said.
The staid industries actually sop up most of the campaign spending. Air travel and advertising make up the biggest expenses, said Amitabh Sinha, the national convenor (a sort of campaign manager) for the Bhartiya Janta Party.
Air time for television ads in particular has risen nearly 1,500 percent since the last election, according to Tam Media Research, as a result of the proliferation of televisions into the rural hinterlands. “Television is one of the best ways to communicate with the masses in an easy way,” Mr. Sinha said.
Candidates are also relying on newer technology to get in touch with the 700 million eligible voters. Many of the 400 million cellphone owners in India could hardly go a day without receiving several text messages like “I Jagat Singh Chauhan promise you to fulfill all commitment of better society and development!”
Text message volume is up 20 to 25 percent at Tata Teleservices, said Rohit Gupta, an associate vice president for the company. Revenue has increased several million rupees a month, he said. Political candidates buy messages in bulk, paying lower rates than individual consumers do, either through the phone company or a third-party broker.
“The move to digital media is increasing day by day,” Mr. Gupta said, because “you are connecting directly with the customer.”
Printing companies have been suffering this year. The country’s election commission has banned the hanging of posters and election materials in public places without permission, so candidates are ordering less.
To Read More CLICK HERE
Candidates and parties spent $3 billion on everything, including transportation, advertising, celebrity endorsements and cash bribes over the course of the campaign, according to economists and political analysts. In comparison, the last United States presidential campaign cost an estimated $2.4 billion.
The campaign, which will wrap up Saturday with a final tally of the votes, is trickling through the economy and plumping earnings at television stations, advertising agencies, florists, airlines, car companies and gas stations. It is adding to the business for sweets manufacturers, priests and astrologers.
The programs are so extensive that the amount of money spent in India will give a 0.5 percent boost to the country’s gross domestic product for two quarters of this year, says Kotak Securities, a brokerage firm.
“Every candidate spent money on pujas and rituals,” said K. N. Somayaji, an astrologer and Brahman priest in Bangalore. He says more than 200 candidates called him for his services, which include invoking Kali, the goddess of victory. The most elaborate ritual he performed during this election involved 350 priests from Kerala and cost more than $300,000, he said.
The staid industries actually sop up most of the campaign spending. Air travel and advertising make up the biggest expenses, said Amitabh Sinha, the national convenor (a sort of campaign manager) for the Bhartiya Janta Party.
Air time for television ads in particular has risen nearly 1,500 percent since the last election, according to Tam Media Research, as a result of the proliferation of televisions into the rural hinterlands. “Television is one of the best ways to communicate with the masses in an easy way,” Mr. Sinha said.
Candidates are also relying on newer technology to get in touch with the 700 million eligible voters. Many of the 400 million cellphone owners in India could hardly go a day without receiving several text messages like “I Jagat Singh Chauhan promise you to fulfill all commitment of better society and development!”
Text message volume is up 20 to 25 percent at Tata Teleservices, said Rohit Gupta, an associate vice president for the company. Revenue has increased several million rupees a month, he said. Political candidates buy messages in bulk, paying lower rates than individual consumers do, either through the phone company or a third-party broker.
“The move to digital media is increasing day by day,” Mr. Gupta said, because “you are connecting directly with the customer.”
Printing companies have been suffering this year. The country’s election commission has banned the hanging of posters and election materials in public places without permission, so candidates are ordering less.
To Read More CLICK HERE
Thursday, May 14, 2009
India’s Congress Can Retain Power Without Communists
India’s Congress party is confident it can retain power without needing to mend ties with the Communists, who want to limit foreign investment and almost brought down the government last year over a nuclear energy deal with the U.S.
“We can form the government without the Left,” Trade Minister Kamal Nath said in an interview yesterday in New Delhi. “We’re not looking at the Communists at the moment.”
Congress may need to woo former allies or find new partners to form a majority in parliament after elections that concluded May 13, exit polls showed. Prime Minister Manmohan Singh and the communists, or Left-wing parties, parted ways in July after four years of wrangling on issues ranging from allowing retailers including Wal-Mart Stores Inc. into the country to increased foreign ownership of insurers.
“I don’t think Congress will make the mistake of wanting to form a government with the Left again unless all other strategies have been exhausted,” said Prem Shankar Jha, an independent political analyst and former aide to former prime minister Vishwanath Pratap Singh.
The benchmark Sensitive Index has fallen 2.4 percent on the Bombay Stock Exchange since exit polls showed prospects of a hung parliament. Election results will be announced tomorrow.
India’s four Communist parties currently hold 61 of 543 lower-house seats, making them the third-largest bloc in parliament after groups led by Congress and the opposition Bharatiya Janata Party. Exit polls indicated the Communists may lose almost half of those seats and Congress has already forged an alliance with the Trinamool Congress Party in the Communist stronghold of West Bengal.
To Read More CLICK HERE
“We can form the government without the Left,” Trade Minister Kamal Nath said in an interview yesterday in New Delhi. “We’re not looking at the Communists at the moment.”
Congress may need to woo former allies or find new partners to form a majority in parliament after elections that concluded May 13, exit polls showed. Prime Minister Manmohan Singh and the communists, or Left-wing parties, parted ways in July after four years of wrangling on issues ranging from allowing retailers including Wal-Mart Stores Inc. into the country to increased foreign ownership of insurers.
“I don’t think Congress will make the mistake of wanting to form a government with the Left again unless all other strategies have been exhausted,” said Prem Shankar Jha, an independent political analyst and former aide to former prime minister Vishwanath Pratap Singh.
The benchmark Sensitive Index has fallen 2.4 percent on the Bombay Stock Exchange since exit polls showed prospects of a hung parliament. Election results will be announced tomorrow.
India’s four Communist parties currently hold 61 of 543 lower-house seats, making them the third-largest bloc in parliament after groups led by Congress and the opposition Bharatiya Janata Party. Exit polls indicated the Communists may lose almost half of those seats and Congress has already forged an alliance with the Trinamool Congress Party in the Communist stronghold of West Bengal.
To Read More CLICK HERE
Wednesday, May 13, 2009
India Stocks May Suffer Election ‘Blip,’ Says HDFC
Indian stocks may halt their second- quarter rally unless the next government attracts foreign investment to revive the economy, said HDFC Standard Life Insurance Co., the country’s sixth-largest private insurer.
The ruling Congress party-led coalition may have won the most seats without securing enough votes to form a government, based on exit polls after a five-week election that ended yesterday. SGX CNX Nifty Index futures slumped the most in two weeks in Singapore while Indian stocks traded in the U.S. sank.
“The election outcome will only be a blip,” Prasun Gajri, chief investment officer at HDFC Standard Life, which manages $1 billion in equities, said in an interview in Mumbai yesterday. “It isn’t the only determinant for the market. It may impact the markets for a month or two but nothing beyond that.”
The Bombay Stock Exchange Sensitive Index, or Sensex, was the worst performer in the first quarter among the so-called BRIC markets that also include Brazil, Russia and China. The gauge rebounded 24 percent in the second quarter, beating benchmark indexes in Brazil and China.
“The rally has been too fast, too soon,” Gajri, 37, said. While the economy has shown signs of an improvement, investors will need to watch for more data, he said.
To Read More Click Here
The ruling Congress party-led coalition may have won the most seats without securing enough votes to form a government, based on exit polls after a five-week election that ended yesterday. SGX CNX Nifty Index futures slumped the most in two weeks in Singapore while Indian stocks traded in the U.S. sank.
“The election outcome will only be a blip,” Prasun Gajri, chief investment officer at HDFC Standard Life, which manages $1 billion in equities, said in an interview in Mumbai yesterday. “It isn’t the only determinant for the market. It may impact the markets for a month or two but nothing beyond that.”
The Bombay Stock Exchange Sensitive Index, or Sensex, was the worst performer in the first quarter among the so-called BRIC markets that also include Brazil, Russia and China. The gauge rebounded 24 percent in the second quarter, beating benchmark indexes in Brazil and China.
“The rally has been too fast, too soon,” Gajri, 37, said. While the economy has shown signs of an improvement, investors will need to watch for more data, he said.
To Read More Click Here
Tuesday, May 12, 2009
Nortel Sets up Network Operations Center in India
Nortel Networks said Tuesday that it has set up a Global Network Operations Center (GNOC) in Bangalore, to help remotely manage and support the networks of its carrier and enterprise customers in Asia, Europe, North and South America.
The Bangalore GNOC provides round-the-clock network surveillance and performance monitoring for voice and data networks, Nortel said.
The new center in Bangalore is Nortel's fifth network operations center worldwide. Nortel's other network operation centers are located in North America, Europe, China and in Gurgaon in north India.
The Gurgaon center services customers both in India and abroad including Indian telecommunications service provider, Bharti Airtel, said Suresh Kumar, vice president for Managed Service Delivery at Nortel Asia Pacific.
The company decided not to expand in Gurgaon but to instead set up another network operations center in Bangalore to provide disaster recovery to its customers, Kumar said.
The Bangalore center, which began operations about four months ago, already supports more than 50 customers worldwide, Kumar said.
For More News Click Here
The Bangalore GNOC provides round-the-clock network surveillance and performance monitoring for voice and data networks, Nortel said.
The new center in Bangalore is Nortel's fifth network operations center worldwide. Nortel's other network operation centers are located in North America, Europe, China and in Gurgaon in north India.
The Gurgaon center services customers both in India and abroad including Indian telecommunications service provider, Bharti Airtel, said Suresh Kumar, vice president for Managed Service Delivery at Nortel Asia Pacific.
The company decided not to expand in Gurgaon but to instead set up another network operations center in Bangalore to provide disaster recovery to its customers, Kumar said.
The Bangalore center, which began operations about four months ago, already supports more than 50 customers worldwide, Kumar said.
For More News Click Here
Cops raid Jaya Prada's hotel in Rampur
Even as the spat between Samajwadi Party leaders Amar Singh and Azam Khan escalates by the hour, Uttar Pradesh cops on Monday night added a new twist to the controversy by carrying out a raid in the hotel being used as a temporary home by actor-turned-SP nominee Jaya Prada.
The local police attributed the raid to reports about distribution of money to voters from the hotel.
"We got tip off about some money transaction taking place at the hotel. Therefore, we carried out a raid, but eventually it turned out to be a false alarm," Rampur superintendent of police Jyoti Narain told rediff.com.
He claimed that the purpose of the raid was also to ensure that outsiders involved in election campaign had moved out of Rampur as per the directives of the Election Commission.
"Therefore, there was nothing unusual or special about the raid, yet Samajwadi Party activists took serious offence to the raid for no rhyme or reason, and staged unnecessary protests until about 2 am," he added.
Read More >>
The local police attributed the raid to reports about distribution of money to voters from the hotel.
"We got tip off about some money transaction taking place at the hotel. Therefore, we carried out a raid, but eventually it turned out to be a false alarm," Rampur superintendent of police Jyoti Narain told rediff.com.
He claimed that the purpose of the raid was also to ensure that outsiders involved in election campaign had moved out of Rampur as per the directives of the Election Commission.
"Therefore, there was nothing unusual or special about the raid, yet Samajwadi Party activists took serious offence to the raid for no rhyme or reason, and staged unnecessary protests until about 2 am," he added.
Read More >>
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