Indian Economy

India set to be world’s fastest wealth creator by 2010: Study
India is shining bright on the world wealth map with the country set to emerge as the world’s fastest wealth creator and home to a growing number of millionaires in the years to come, a latest study shows.
After emerging as the world’s second fastest wealth creator after China between 2000-2005, India is all geared up for the top spot with a growth rate of 13.3 per cent through 2010, as against a global average of 5.6 per cent, US-based consultancy and research firm Boston Consultancy Group said in its 2006 Global Wealth report.
It is strong growth in sectors like information technology, textiles and pharmaceuticals that would propel above-average wealth growth in the country, the report said.
India and China have also registered the highest growth in the number of millionaire households across the world, with a surge of more than 15 per cent per year between 2000 and 2005.
India has become home to the world’s 18th largest population of millionaires with the number likely to further surge ahead in the years to come, the study shows.
“The BRIC (Brazil, Russia, India and China) countries have made substantial gains in the number of millionaires. The growth rates of millionaire households in India and China have been among the highest in the world, averaging more than 15 per cent per year between 2000 and 2005,” the report said.

P-notes not directly connected to full CAC: Finance Minister
For the first time, the Finance Minister has criticised a report on full Capital Account Convertibility, which recommended that P-notes be abolished. In an exclusive interview with CNBC on the sidelines of the IMF meeting in Singapore, he said that in his view, P-notes were not directly connected to fuller Capital Account Convertibility.
“In my view, this was an issue peripheral to the mandate of the fuller CAC panel. I don’t think allowing participatory notes or banning them has any direct connection with convertibility. I think while reporting on convertibility, they have taken an opportunity to slip in a chapter on participatory notes. But I think it’s peripheral to the main mandate,” said P Chidambaram, Finance Minister.

NHAI to embark on huge data collection exercise
To develop per kilometer basis navigational systemSept 25: Aiming to develop a per kilometer basis navigational system for the highways, the National Highways Authority of India (NHAI) plans to embark on a huge data collection exercise along the Golden Quadrilateral and the North South East West stretches
Data would be collected on various parameters such as traffic growth, road quality, and location of wayside amenities, among others.

Inflation declines to 4.61 per cent

New Delhi September 23, 2006
Inflation declined to 4.61 per cent for the week ended September 9, down from 4.78 per cent in the previous week. This was mainly due to lower prices of manufactured products, cheaper chemicals, cement and some non-food items, government data said.
The wholesale price index (WPI) for all commodities was up by 0.3 per cent to 206.6 points from 197.5 points a year ago. Wholesale price-based inflation stood at 4.11 per cent during the corresponding week last year.

EXPORTS IN AUG UP 41% TO $ 10.3BN

Country’s merchandise exports continued to move on a high-growth track in August 2006, registering an increase of 41.14% to $ 10.3 billion compared to $ 7.35 billion in August 2005

Increase in imports was lower at 32.16% with the country importing merchandise worth $ 13.86 billion in August 2006 against $ 10.49 billion in the same month of the previous fiscal.

RBI TO CLEAR $ 1BN FOREIGN VC FUNDS IN REALTY SPACE

Foreign venture capital investment in the real estate sector may finally see the light of day. The funds had been blocked due to differences between regulators. The government has asked the banking regulator – the Reserve Bank of India – to approve proposals submitted over seven months ago by dozen foreign venture capital firms to invest in the Indian realty sector. These firms had lined up plans to invest over $ 1bn in real estate projects here.

IDBI TO ENTER VENTURE CAPITAL SPACE

Leading financial institution IDBI, which has converted itself into a bank, will soon become a venture capitalist – a role not many public sector institutions have so far tried to take on.

“The IDBI board recently cleared a proposal to set up a venture capital fund with an initial corpus of Rs 100 crore. The proposal, however, is subject to approval from the RBI.” Said S Muhnot, MD & CEO, IDBI Capital Market Services.

Questions

1)Name the country which emerged as the World’s second largest wealth creator between the year 2000-2005?

a)Singapore
b)Uk
c)India
d)China

2)Expand BRIC?

a)Bangladesh,Romania,India,Cuba
b)Brazil,Russia,India,China
c)Bangladesh,Russia,Ireland,Cuba
d)Brazil,Romania,Ireland,Canada

3)Which Indian Bank is going to enter into the Venture capital Market?

a)ICICI
b)IDBI
c)ENB
d)HDFC

4)Expand NHAI?

a)National Highway Authority of India
b)National Association Of Home Inspector
c)National Human Advancement Institute
d)National Human Association of India

5)Where is the Head Quarters of IMF(International Monitory Fund) located?

a)Washington D.C
b)Paris
c)Sydney
d)New Delhi

6)Name the online investment portal of IDBI Capital Market Service Ltd?

a)Idbi money builder.in
b)Idbi value builder.in
c)idbi resource builder.in
d)idbi paisa builder.in

Answers:

1)c
2)b
3)b
4)a
5)a
6)d

Stock Market

Sensex Visits Mount 12K
Bulls were Unstoppable for the third successive session on Thursday. After a sedate start equities gained momentum, with the bench mark BSE Sensex crossing the psycological12000 mark intra-day. Bears retaliated towards the close of the session and can take solace from the fact that they did not allow the index to close above the 12000 mark. The sensex ended up 79 points at 11973,while the NSE Nifty rose 17 points to a at 3472 in another choppy session.

It will be for the market to sustain the 12000 level in the near future.” We believe the correction in the Market is not yet over”,said Pawan Agarwal,manager,equity sales,Sharekhan securities.

Dealers say the main reason for the volatility in the recent day has been the low volume in the market. Due to this, any small amount of shares sold or bought leads to an exaggerated response in the indices. Volumes in the cash segments were the highest in
Recent times, though volumes in FZO market were below average on Thursday.Traded Turnover in the cash segment on both exchanges combined was Rs 12492 crore-the highest for the week so far.

Market participants cheered sebi’s decision to widen the scope of entities eligible to register as an FII in India. On Wednesday,sebi introduced amendments to the Sebi Foreign Institutional Investors Regulation ’06 to treat overseas registered or incorporated pension funds,mutual funds,investment trutsts,insurance companies,reinsurance companies,forgein central banks as FII.

The market breadth which was positive in the first half of the trading session turned Negative as selling in small-cap sand multi-caps began. For 1116 shares that advanced on BSE,1380declined and 72 shares were unchanged. The BSE mid-cap and small-cap funds were up by half and quarterbacked on BSE,1380declined and 72 shares were unchanged. The BSE mid-cap and small-cap funds were up by half and quarter cent respectively, at the end of the day.

Forex reserves dip $1,3 billion on strong $ demand

Foreign exchange reserves dipped $ 1,3 billion in the week to September 8 as the RBI intervened amid strong dollar demand cording to the figures released by the RBi in the weekly statistical supplement(WSS),total foreign exchange reserves including gold and SDR fell $ 1,3bn during the week to touch $ 165.13bn.While foreign currency assets dipped $ 1317 million, the reserve Tranche position with the IMF dipped $3 million. The value of the gold and SDR in reserves remained unchanged.

Banks have continued to record a robust business growth in the latest fortnight. Aggregate deposits mobilized by scheduled commercial banks amounted to Rs 2251701cro, on September 01,up to Rs 15510 crore over the previous fortnight. While demand deposits rose to Rs 2513 crore,term deposits went up to Rs 12,942 crore.Investment in government securities went up to Rs 8515crore,that in the other approved securities went up to Rs 8515 crore,that in the approved securities dipped by Rs 1,813 crore.

Southern Ispat gains on Kerala investment plan

Southern Ispat gained 4.78 per cent to close at a high of Rs. 17.55. Nearly 1.16 lakh shares were traded on the BSE. The stock has gained 3.4 per cent in the last one month. The company has declared that it plans to set up an integrated steelplant at kannur in Kerala at an investment of Rs. 500 crore. This plant will produce 1, 000 metric tonne of sponge iron, 800 metric tonne of steel billet, 50 Mw power through waste recovery and one structural and TMT rolling mill. While, 40 per cent of the funds required for the same will be raised through a public issue, 38 per cent would be through financial institutions. The production is supposed to start in stages from April 2008. The company posted a net profit growth of 33.3 per cent to Rs. 8 lakh for Q1 FY07 from Rs. 6 lakh in the corresponding prvios quarter. Net sales declined 13.6 per cent to Rs. 4.69 crore from Rs. 5.43 crore during the same period.

Financial Tech gains ground on MCX foreign deals

The stock gained 4.6 per cent on Monday to close at Rs. 1, 632.45, after touching a high of Rs. 1, 652. Over 33, 000 shares were traded on the BSE. The stock has gained 11 per cent in the past week and by 30 per cent over the past month. The company’s subsidiary – MCX – has signed an MoU with Zhengzhou Commodity Exchange for mutual cooperation. Earlier in March, MCX had signed a MoU with Bursa Malaysia Derivatives Berhad for similar cooperation. Financial Technologies posted a net profit growth of 170 per cent for FY07 to Rs. 27.23 crore compared with Rs. 10.26 crore in the corresponding previous quarter. During the same period, net sales rose to 212 per cent to Rs.70.43 crore from Rs. 22.59 crore. The company has declared a final dividend of 260 per cent for FY06, which took the total dividend declared during the year to 300 per cent. The company develops software solutions for online trading terminals.

Traded volumes hold the key to uptrend

The markets opened on a steady note and proceeded to trade higher through the day. The benchmark indices gained approx. 0.5 per cent at close as bulls managed to prevail over the bears.
Traded volumes were lower than the previous session as the rally was greeted with skepticism by retail traders who were conspicuous by their absence. The market breadth was marginally positive as the BSE and NSE combined figures were 1778:1585 and the capitalization of the breadth was negative as the figures on a BSE and NSE combined basis were Rs. 3366 crore : Rs. 5537 crore. The derivatives data show a build-up of short positions at higher levels as bears have been pressing sales in the Nifty segment.