Petrol price cut by Rs 2 per litre, excluding local taxes

 

Mar 15, 2013, 07.11PM IST PTI

The new price would be effective midnight.

NEW DELHI: Petrol price was today cut by Rs 2 per litre with effect from midnight tonight, the steepest reduction in rates in nine months.

While petrol price has been cut by Rs 2 per litre, excluding local sales tax or VAT, there will be no change in diesel rates.

After including VAT, the reduction in price of petrol in Delhi comes to Rs 2.40 per litre and the fuel will from midnight tonight cost Rs 68.34 per litre as against Rs 70.74 currently.

It was expected that oil firms will also effect the monthly hike of 40-50 paise per litre in diesel rates but they deferred the decision apparently to save the government from trouble in Parliament.

When oil firms had last hiked petrol price on March 2, the opposition parties had disrupted one full day's proceedings.

The cut in petrol price follows two rounds of hike in rates since February. Petrol price was hiked by Rs 1.50 a litre on February 16 and then by Rs 1.40 per litre from March 2. Both the increases were excluding local VAT.

The reduction in rates was possible as international oil prices have eased. While the slide in international prices of crude oil from $112.73 per barrel to $107.41 enabled reduction in petrol prices, it also helped lower losses on diesel sales.

Losses on diesel have come down to Rs 8.64 per litre from Rs 11.26 at the beginning of the month, according to Indian Oil Corp (IOC) which announced the price revision.

Oil firms calculate the desired retail price on 1st and 16th of every month based on average imported oil price on the previous fortnight.

Petrol price had last been cut by over Rs 2 per litre in June 2012 when prices were reduced from Rs 70.24 to Rs 67.78 per litre.

IOC, the nation's largest oil firm, said rupee had depreciated marginally. "Following this trend, it has been decided to pass on the benefit to the customers," the company said in a statement.

Though petrol price had been deregulated in June 2010, they have rarely moved in tandem with cost. This resulted in Rs 500 crore loss to IOC (Rs 1,130 crore loss to state fuel retailers) during current financial year.

However, since January, when the government decided to cut subsidises by asking oil firms to moderate prices in step with cost, petrol prices have moved in sink with cost.

Diesel prices continue to be regulated but the government had in January authorised oil firms to hike their rates by 40-50 paise per litre every month till such time that the entire revenue loss on the fuel is completely wiped off.

Oil firms raised diesel prices by 50-51 paise per litre on two occasions and today was the third opportunity but they decided not to revise rates.

IOC said in addition to losses on sale of petrol, oil firms are suffering under-recovery (revenue loss) on sale of diesel of Rs 8.64, kerosene of Rs 33.43 per litre and domestic LPG of Rs 439.00 per cylinder.

The company would end the fiscal with a revenue loss of fuel sale of around Rs Rs 86,500 crore, the statement said. The industry (IOC plus two other fuel retailers) would report a revenue loss of Rs 163,000 crore during current year.

"The movement in international oil prices and Rupee-USD exchange rate is being monitored and decision on future price changes shall be taken accordingly," the statement added.

Following are the revised prices of petrol in four metros after oil firms cut rates:

State	Current price	Revised price	Decrease
Delhi	70.74	68.34	2.40
Kolkata	78.34	75.84	2.50
Mumbai	77.66	75.14	2.52
Chennai	73.95	71.41	2.54

(All rates in Rs/litre)

India's IT exports resilient despite difficult times

India's IT exporters have demonstrated resilience by surviving the difficult market conditions of recent times, a senior industry official has said. Kamal Vachani, Hon. Regional Director of Electronics and Computer Software Export Promotion Council (ESC) for the Middle East, said India's export of computer software and services during 2012-13 is estimated to have registered a growth of 10.26% over 2011-12. "In value terms, export of computer software and services during 2012-13 is estimated to be USD 75 billion, up from USD 68 billion estimated in 2011-12", said Vachani. With an objective to give a visible momentum to enhancing IT & ITES exports from the country, ESC has created a unique brand for Indian software and services companies in 2001 INDIASOFT International IT Exhibition & Conferences, Vachani said in a statement. According to him, the main focus of INDIASOFT events has been to enhance the opportunities for Indian software companies in emerging and established IT markets across the world. ESC has organised 12 editions so far. NEI develops fuel efficient bearing for two-wheelers * Jaipur: Leading bearings manufacturer and exporter National Engineering Industries Ltd. (NEI) has said it has developed a fuel efficient bearing for two-wheelers. The bearing is capable of improving fuel efficiency by 2 to 3% in two wheeler segments, a top official said. "By understanding various torque contributors to the bearing such as grease, seal and internal bearing geometry, we have developed the low torque bearing technology to improve fuel efficiency," Rohit Saboo, President & CEO of the company told PTI. He said such bearings have also been developed for other automotive segments and the company has also supplied the latest bearings to a two-wheeler manufacturing company. "As part of growth plans, our focus has been on building Research and Development capabilities through research, partnerships, patents etc. The technological advancement will boost the confidence among key customers in India as well as abroad," he said.

Nifty may test 5,700 mark; ECB, RBI policies eyed

 

28-04-2013 AM 02:34:02

A fall and close below 5,650 would mean that traders should ideally initiate short positions on the index for significantly lower targets.

Sensex snaps gaining trend, falls 120 points; RIL, ICICI decline

26 Apr, 2013, 1653 hrs IST, PTI

Jindal Steel fell by 4.29 pc to Rs 314.70 after the company's consolidated net profit fell by nearly 35 pc for the quarter ended March 31.

MUMBAI: Snapping a four-day rally, the BSE benchmark Sensex today fell from six-week high by losing 120 points dragged down by RIL, ICICI Bank and TCS amid a weak global trend.

The Sensex declined by 120.23 points, or 0.62 per cent, to 19,286.72. The gauge had climbed to a level last seen on March 15 yesterday. It had gained 676 points in last four sessions.

Similarly, the wide-based National Stock Exchange index Nifty fell by 44.85 points, or 0.76 per cent, to 5,871.45 led by two most heavy weight Reliance Industries and Infosys.

Brokers said besides investors booking profits at higher levels, a weak earning by JSPL triggered selling.

Jindal Steel fell by 4.29 per cent to Rs 314.70 after the company's consolidated net profit fell by nearly 35 per cent for the quarter ended March 31.

Traders said a weakening trend in the Asian region and lower opening in Europe on earning concerns also shadowed the domestic markets here.

Among the lenders, ICICI Bank led the fall dropping 2.82 per cent to Rs 1,144.30, State Bank of India fell by 1.78 per cent to Rs 2,289.55, after the recent upsurge on hopes the Reserve Bank might cut interest rate in its policy meeting on May 3.

ICICI bank today reported 21 per cent jump in net profit at Rs 2,304.07 crore for the fourth quarter ended March 31.

In 30-BSE index components, 19 stocks declined led by two most heaviest RIL and Infosys, with their nearly 16 per cent weightage, dropping 3.19 per cent to Rs 793.15 and by 0.66 per cent to Rs 2,212.30, respectively.

However, auto stocks gained as Maruti Suzuki rose by 5.57 per cent to Rs 1,673.45 on higher earnings and saved the market from any major fall.

The realty sector suffered the most by losing 2.20 per cent to 1,892.92 followed by oil and gas index by 1.61 per cent to 8,691.77. IT index fell by 1.51 per cent to 5,614.92 and banking index by 1.39 per cent to 14,343.35.

Hold on to Maruti Suzuki at current levels: Analysts

26 Apr, 2013, 1612 hrs IST

 

Investors should hold on the stock at current levels and wait for management comments on growth outlook and foreign exchange rates, say analysts.

MUMBAI: Shares of auto major Maruti Suzuki surged higher in trade and hit 52-week high after the company beat estimates by reporting better-than-expected results on Friday.

Investors should hold on the stock at current levels and wait for management comments on growth outlook and foreign exchange rates, say analysts.

The company reported a net profit at Rs 1,150 crore for the quarter ended March 2013, up 79.6 per cent, against a net profit of Rs 640 crore in the corresponding quarter last fiscal. Net sales for the fourth quarter increased to Rs 13,056 crore, up 13.62 pe rcent, from Rs 11,490 crore in the same period last fiscal.

According the company, increase in net profit during the quarter was on account of higher sales of new models such as Ertiga, DZire and Swift, cost reduction and localization efforts and the benefit of a favourable exchange rate.

"Maruti's high revenue is driven by better pricing from an improved product mix. Strong contribution from diesel vehicle sales also contributed to growth as well as profitability. The OPM at 10.6 per cent vs. expectation of 9.4 per cent is a positive surprise driven by better pricing and Yen depreciation. Maruti is one of our top picks for FY14 and we have a target price of Rs 2,130," said Gautam Sinha Roy, VP - Equities, Motilal Oswal Securities.

The fourth quarter results include the effect of the merger of subsidiary Suzuki Powertrain India for the full year.

Analysts say the numbers are above expectations and investors should hold on to the stock.

"We would like to wait for the management commentary and then visit our estimates post the commentary. What we would like to see is what is the outlook for the volumes going forward. Definitely as of now, the stock is going to perform and we would like to visit our target price after that, but it is good to hold the stock at current levels," said Silky Jain, Research Analyst - Equity Research, Nirmal Bang Securities.

The company posted double digit margins after eight quarters, its best margins performance in 2 years, on the back of a weak Yen and cost cutting.

"We were expecting an improvement in margin because of the deprecation of yen which is major factor in contributing towards the margin. Moreover, richer product mix and rising contribution from diesel models are also a big boost for the company margins," Jain added.

She is of view that second half would be much better than the first half because of pick up in growth. Technical Check:

"Maruti has seen decent upmove in April series with built up of long positions. Open interest increased by around 10 per cent with price gain of 24 per cent. It is the best performing stock in Nifty 50 in percentage gain terms. It has seen rollover of 77 per cent with the roll cost of 0.50 per cent," said Chandan Taparia, Derivative Analyst, Anand Rathi.

"Rolls are decent and rising roll cost indicates that momentum may continue in the stock. It is trading at four-year high and near to life-time high zone of Rs 1,737 levels. If it manages to hold above Rs 1,630, then it may rally towards Rs 1,700-1,735 levels," he added.

The stock ended at Rs 1,673.45, up 5.26 per cent, on the BSE. It touched a high of Rs 1,690.40 and a low of Rs 1,567.65 in trade today.

Rupee ends lower on month-end dollar demand; US GDP awaited

26 Apr, 2013, 1725 hrs IST, Reuters

The rupee ended down, falling 0.8 percent for the week, dragged by month-end dollar demand from importers and weak equities.

MUMBAI: The Indian rupee ended down on Friday, falling 0.8 percent for the week, dragged by month-end dollar demand from importers and weak equities.

Weakness in local stocks, which snapped a four-day winning streak, to end 0.62 percent lower hurt the currency, dealers said.

Continued month-end dollar demand from importers, particularly crude oil importers, had also been a drag on the rupee, they said.

The focus now shifts to the central bank's rate setting meeting next week which is widely expected to lower policy rates by 25 basis points.

A Reuters poll on Thursday showed that bullish bets returned on the Indian rupee for the first time in over a month.

Global currency markets are awaiting the release of U.S. GDP, and a strong number will be able to lift the risk sentiment.

"The fall in the rupee is basically on account of the month-end dollar buying and squaring-off of positions," said Satyajit Kanjilal, chief executive at ForexServe.

"If the U.S. GDP numbers are good, it will give a boost to risk-on and the rupee."

The partially convertible rupee closed at 54.375/385 per dollar, weaker than its Thursday's close of 54.21/22.

Broadly, sentiment still favoured the rupee with the government likely to take more steps to revive growth in the next two-four months.

The Indian government pitched for a rating upgrade on Thursday at a meeting with ratings agency Standard & Poor's, a top finance ministry official said, citing steps taken by it to control a high fiscal deficit and revive investments.

In the offshore non-deliverable forwards, the one-month contract was at 54.61, while three-month was at 55.19.

In the currency futures market, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed around 54.56, with a total traded volume of $4.6 billion.

Investors resort to profit booking in ICICI Bank post Q4 results

26 Apr, 2013, 1510 hrs IST, ECONOMICTIMES.COM

The bank posted a net profit of Rs 2,304.07 crore against Rs 1,902 crore in the same quarter of previous fiscal.

NEW DELHI: ICICI Bank Ltd came under selling pressure in afternoon trade on Friday, even though the country's second largest lender posted a 21 percent rise in fourth-quarter net profit, in line with estimates, led by higher loan growth.

At 03:00 pm; ICICI Bank was trading 2.3 per cent lower at Rs 1150. It hit a low of Rs 1125.30 and a high of Rs 1188 in trade today.

The bank posted a net profit of Rs 2,304.07 crore against Rs 1,902 crore in the same quarter of previous fiscal.

According to analysts, even thought the private sector lender reported results which were in line with estimates, the stock came under selling pressure as investor resort to profit booking after 12 per cent rally in the month of April.

ICICI Bank has been a mark outperformer for the month of April, up over 12 per cent so far in the month as compared to 11 per cent gain in the S&P BSE Banking Index and 3 per cent rise in the S&P BSE Sensex for the same period, as per data collected on April 25.

Net interest income, or the difference between income earned and interest expended, rose 22.5 percent to nearly Rs 38 billion.

"The number appears in line with our estimates and the NII which has come in at Rs 3800 crore is 2 percentage points above our estimates. So NII appears slightly better than our estimate while the net profit is in line," said Nitin Kumar, Research Analyst Quant Broking Pvt. Ltd in an interview with ET Now.

"If you look at whole lot of private banks who have reported numbers so far, nearly all of them have delivered a positive surprise especially at the margins front, ex IndusInd, Axis Bank, HDFC Bank and even Yes Bank," he added.

Kumar is of the view that since the number is largely in line for ICICI, there is some sort of profit booking which is taking place.

Net non-performing loans at the bank stood at 0.77 percent of its total assets compared with 0.73 percent a year earlier.

Net interest margin stood at 3.11 percent for the year-ended March compared with 2.73 percent a year ago, the private sector lender said in a statement.

India's 1-year swap rates up on cash squeeze, profit-taking in bonds

26 Apr, 2013, 1506 hrs IST, Reuters

India's one-year overnight interest swap (OIS) heading for a sixth week of fall, but up 1 basis point (bp) at 7.23 per cent from its previous close.

The five-year swap rate on path for its fifth weekly fall. It is 2 bps lower at 6.95 per cent. Paying in the near-end tailing the cash squeeze in the banking system which jumped above Rs 1 trillion on Friday.

Profit-taking after the recent rally in bonds and the rebound in global commodity prices also weighing on 1-year swaps.

Receivings in five-year swaps follow expectations the Reserve Bank of India will cut interest rates next week for a third time this year, drawing comfort from a fall in inflation, a Reuters poll showed.

Monsoon seen satisfactory except in some parts of South: K V Thomas

26 Apr, 2013, 1217 hrs IST, PTI

"South-west monsoon rains are expected to be "satisfactory" barring some states in South India," K V Thomas told reporters.

NEW DELHI: South-west monsoon rains are expected to be "satisfactory" barring some states in South India, Food Minister K V Thomas today said ahead of an official forecast later in the day.

"We have an assessment of monsoon. Monsoon will be quite satisfactory in India except the southern tip -- Kerala, Karnataka and Tamil Nadu," Food Minister K V Thomas told reporters on the sidelines of an event here.

Monsoon rains in these southern states may be delayed or could be less than the normal level, he said.

Last week, Agriculture Minister Sharad Pawar had said India Meteorological Department was expecting normal monsoon. Even forecast from private firm Skymet noted normal rains.

The first monsoon forecast for the June-September period of this year will be officially released later in the day.

South-west monsoon begins from June, when sowing of Kharif (summer) crops like paddy are undertaken.

Noting that normal monsoon rains augurs well for the country's agri-sector, Thomas said: "Our food production will be comfortably good in the coming year. Wheat production will be as it was in the last year and not less than that."

Food production in 2012-13 crop year (July-June) is estimated to touch 250.14 million tonnes, of which wheat is expected to be 92.30 million tonnes.

On foodgrains storage situation, Thomas said all arrangement for procurement of wheat and even storage has been made ahead of monsoon rains.

This year's monsoon is crucial for Maharasthra, Karnataka and Gujarat, which are facing worst drought.

Monsoon rains are crucial for the agriculture sector, which contributes about 15 per cent to the country's GDP, as only 40 per cent of the total cultivable area is under irrigation.

US regulators have issued a formal "air worthiness" directive allowing revamped Boeing 787 Dreamliners to fly again.

The directive from the US Federal Aviation Administration (FAA) means US airlines can begin using the planes again, provided their battery systems are replaced.
The FAA gave Boeing the go-ahead to replace battery systems with a new design last week.
Concerns over their safety forced the grounding of all 787s in January.
The directive only applies to US airlines, but other regulators are now expected to follow suit.
In the US only United Airlines currently has 787s in its fleet, but there are a total of 50 owned by airlines around the world, and 840 are on the order books.
Boeing is working to replace battery systems that are believed to have been behind fires on two 787s run by Japanese airlines in January.
It said it expected the repairs to be completed by the middle of May.
It is unclear how much the whole 787 saga will cost Boeing.
The FAA said the cost of repairing the six planes operated by United Airlines alone would be about $2.8m (£1.8m).

Samsung Electronics has posted a record quarterly profit, boosted mainly by growing sales of its smartphones.

It made a net profit of 7.15tn won ($6.4bn; £4.2bn) during the period, up from 5.05tn won a year ago. Profits also rose from the previous quarter.
The Korean firm's results are in sharp contrast with rival Apple, which this week reported a drop in quarterly profits for the first time in a decade.
Samsung displaced Apple as the world's biggest smartphone maker last year.
Bryan Ma of research firm IDC said that the South Korean firm was doing "very very well right now".
"They have a lot of momentum behind what they are doing around phones, and clearly from a consumer perspective, they have a lot of excitement around their devices.
"They have a lot of their competitors wondering what they are going to do."

'Great strategy'

Samsung has enjoyed great success with its smartphone division.
According to the latest figures, profits there rose more than 55% to 6.51tn won during the first three months of the year, from a year earlier.

With everything that we have seen from Samsung in the past few months, and more importantly going forward, they are the competitor to beat

Bryan Ma, IDC

Analysts said that a key factor behind Samsung's success is that it offers a much broader range of models than its rival, Apple, which sells only the iPhone.
"It has a great strategy of targeting its devices to multiple consumer at multiple price points," Andrew Milroy of Frost & Sullivan told the BBC.
Mr Milroy explained that by offering a cheaper range of smartphones Samsung had been able to tap into a bigger share of consumers, especially in the emerging markets.
"The hardware Samsung is offering is as good as Apple in the eyes of many," he said.
However, Samsung warned that growth in the lower-end smartphone market may slow in the coming months, not least because other manufacturers are also looking to enter the sector.
"We may experience stiffer competition in the mobile business due to expansion of the mid-to-low end smartphone market," said Robert Yi, head of investor relations at Samsung Electronics.