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MUMBAI MIRROR T U E S DAY, O C TO B E R 1 4 , 2 0 0 8 24

business
PRECIOUS METALS TUMBLE ON LOWER GLOBAL CUES
Standard gold (99.5 purity), on Monday, fell by Rs 685 per 10 grams
to Rs 13,420 from Rs 14,105 earlier, while pure gold (99.9 purity)
slipped to Rs 13,485 from Rs 14,160. Silver (.999 fineness) dropped
by Rs 1,570 per kilo to Rs 18,960 from previous close of Rs 20,530

briefs
OIL REBOUNDS ON EU
BANK RESCUE PLAN
Sensex sees biggest
S : Oil prices regained
INGAPORE
from a 13-month low to rise
above $80 a barrel Monday
in Asia on expectations that
a pledge by European coun-
tries to keep banks from
collapsing may stabilise a tumultuous global
financial system. Light, sweet crude for November
jump in four years
delivery was up $2.76 to $80.46 a barrel. The bellwether index registers the biggest percentage increase in the last four years
CAR SALES UP 2.84 PC , on reassurances from governments worldwide to contain the global financial crisis...
AP

BIKE JUMPS 15.22 PC MUMBAI: The BSE Sensex rose 7.42 per cent on
Monday, snapping a five-day losing run with
N D : Domestic car sales
EW ELHI their biggest rise in more than four years, as the
jumped by 2.84 per cent in government reassured investors it was working
September to 1,08,823 units, to shield India from the global crisis.
from 1,05,822 units in the Finance Minister P Chidambaram said on
same month last year. Ac- Monday that the government, the central bank
cording to the figures re- and the stock market regulator were coordinating
leased by the Society of Indian Automobile Manu- on an hourly basis regarding the fallout of the
facturers (SIAM), motorcycle sales in the country global financial crisis on the Indian market.
during the month was up by 15.22 per cent at Earlier, Chidambaram had said the govern-
6,32,369 units as against 5,48,816 units in the cor- ment was working to improve liquidity in the
responding month, a year ago. Total two-wheeler banking system, thereby increasing the confi-
sales in September also soared by 14.51 per cent dence of depositors and investors.
at 7,78,424 units, SIAM said. The gains were led by a surge in ICICI Bank
and helped by rallies in overseas markets after

FII NORMS FOR BANKS, policy makers around the world took new and
drastic steps to rescue banks and prevent the

TELECOS MAY RELAX global economy from sinking into recession.


The 30-share BSE index rose by 781.24 points,
NEW DELHI: Government is to close at 11,309.09 – its biggest percentage rise
considering relaxing norms since May 18, 2004, as it pared some of the pre-
for foreign investment in vious week’s fall of nearly 16 per cent. A broker smiles while trading at a stock brokerage firm in Mumbai on Monday. The Bombay
sectors like banking and The 50-share NSE index also rose 6.43 per cent Stock Exchange’s benchmark Sensex surged 781 points to close at 11,309 levels
telecom.At present, there is to end at 3,490.70
a foreign investment cap in pledging to prevent the collapse of any systemi- “The turmoil in the global credit markets is still
sectors like banking, credit POSITIVE GLOBAL CUES cally important bank. far from over, and it’s possible that FIIs would
information companies, broadcasting, commodity European governments attacked the financial In fact, the British government on Monday continue to stay away from emerging markets for
exchanges and telecom. But, with RBI allowing FIIs crisis on several fronts on Monday, buying into said it planned to invest up to 37 billion pounds some time to come,” it said, referring to foreign
to acquire shares in companies under the portfo- banks and giving huge new loans in a campaign ($64 billion) in ailing British banks Royal Bank institutional investors.
lio investment scheme (PIS), the government is that brought relief to shell-shocked share markets. of Scotland, HBOS and Lloyds TSB. “One should not get carried away if there is
likely to mandate that sectoral caps would hence- Stock markets in Europe and Asia rose strongly any kind of a bounce back, as further selling is
forth be for foreign direct investment only, official after a summit of European leaders agreed hun- TRADERS DOUBT THE UPSWING expected.”
sources said. dreds of billions of dollars of measures to guar- Traders here however were not convinced with Foreign funds have sold a net $10.3 billion in
antee inter-bank lending and make state funds the correction on Monday. Indian stocks in 2008, and the index is down
available to buy banking stocks. Mumbai brokerage India Infoline said it was more than 44 per cent this year.
GOVT TO LOOK INTO On Friday, the Group of Seven – the United not convinced the correction in India’s markets In comparison, they bought a record net
States, Britain, Canada, France, Germany, Italy had ended and advised investors to stay on the $17.4 billion in 2007, helping lift the benchmark
2G-3G REVENUE SPLIT and Japan – agreed a five-point action plan, sidelines till global markets stabilised. 47 per cent. AGENCIES
N D : The government has
EW ELHI
set up a committee to look into
the possibility of 2G-3G revenue
split in view of finance ministry’s
opposition to it, saying it could
Mallya, Goyal meet; possible alliance? IPOs of 2007 witness
erosion of over $3 bn
create revenue losses. The Min- MUMBAI: Reeling under a financial crisis, both Jet Air-
istry of Finance was irked by the ways, as well as Kingfisher Airlines – on Monday – NEW DELHI: The total value of initial pub-
proposal of DoT to split 2G and 3G revenues, broached a possible alliance to overcome their prob- lic offering of 2007 has witnessed an
as the segregation of revenues, would lead to lems, largely generated by mounting fuel bills. erosion of about $3.43 billion, so far
operators camouflaging revenue from 2G to avoid Kingfisher chief Vijay Mallya walked into the head this year – with the media space being
paying the revenue share. office of Jet at S M Centre in Andheri to discuss the worst hit, a latest report says.
issues of common interest with Naresh Goyal, as The bullish trend in the capital mar-
both the airlines are losing close to Rs 20 crore a day. ket was seen in the IPO volume of 2007,
RBI DIRECTS BANKS TO When contacted, a Jet spokesperson said: “Yes, wherein a record volume of $8.18 bil-
Dr Mallya and Mr Goyal have met today.” lion was raised.
MEET CORPORATE NEED Asked if the two sides are working towards an However, rough market conditions
M : The Reserve Bank of
UMBAI alliance, she said: “I would not like to comment on have resulted in a negative return of
India (RBI) on Monday direct- anything at this juncture.” Jet Airways has also stared undertaking a route about 42 per cent, or a value erosion of
ed banks to allow corporate The two airlines are facing pressure from oil rationalisation exercise for its international operations. $3.43 billion in absolute terms till
clients to draw loans against companies for payment of fuel bills – an issue on It recently announced discontinuation of its Mumbai- October 10, according to a report by
sanctioned limits approved to which, both, Goyal and Mallya, met Aviation Min- San Francisco flight from January 13 next year. merchant banker Nexgen Capitals.
them. In a notification posted ister Praful Patel last week. Sources said that the two airlines were looking at “In a bear market, fund-raising activ-
on its Web site, the RBI said, The meeting between the two on Monday was synergies in operation to overcome the financial ity becomes very difficult. Excess of
in view of the current financial crisis, some banks possibly to work out a joint strategy, particularly on pressures they were facing. bull market last year has resulted in the
have been averse to disbursing working capital clearing the fuel bills, before approaching the gov- Industry sources said the synergies, for which the bear market this year.
and term loans to their clients even when the ernment for support. two sides are talking, could include code share, “In a bull market, takers for every
borrower has followed the terms associated with Neither Mallya nor Kingfisher spokesperson ground handling, sales, frequent flier programme issue at every level can be found but
the sanction of the loan. It has also directed banks could be contacted for comments. and rationalising domestic and international routes. today’s market is a buyers market,”
to consider restructuring the dues of small and Kingfisher had recently laid off 300 jobs, while Jet A formal announcement, however, is expected Nexgen Capitals Equity Head Jagan-
medium enterprises. – together with JetLite – has also cut 687 jobs. very soon, sources added. PTI nadham Thunuguntla said. PTI