Lower inflation, in-line GDP boosts market sentiment

After lying low for the entire week, Indian stock market benchmarks surged on Friday to close over 3 per cent higher backed by host of positive cues from domestic and global markets.

Market opened with a gap-up reacting to drop in inflation to 12.40 per cent against expectation of 12.83 per cent, on moderation in prices of vegetables, meat, cement and a few non-administered petroleum products.

Directionless till Thursday, investors took this opportunity to build positions in recently beaten down banking and realty stocks as fears of Reserve Bank of India raising interest rates eased.

Market also got a lift from a rally in Asia and the US earlier on the back of a surprise 3.3 per cent first quarter GDP growth in US. Retreating oil prices as traders discounted threat of hurricane Gustav to US installations boosted sentiments further. However, oil climbed back up to $117 in Friday’s trade as threat from Gustav continued to loom.

Back home, data showed the Indian economy grew at 7.9 per cent in the April-June quarter against previous quarter's 8.8 per cent. The numbers were also disappointing compared with previous year’s 9.2 per cent growth.

This is the first time in last thirteen quarters that GDP growth has fallen below 8 per cent, but India is still expected to clock an annual growth of 8 per cent.

“Moderation will continue for at least for two more quarters (factoring the further tightening by RBI). However, we do not expect GDP to fall below 8 per cent in 2008-09. The consumption demand (both from consumer and government) is still strong which should support the manufacturing sector. Investment and savings are also satisfactory and is reflected in growth of construction sector in this quarter (11.4% against 7.7% a year ago),” said Krupresh Thakkar, research analyst, India Capital Markets.

“Growth in agriculture holds the key, as a good season would increase demand for other products from industrial and service sectors boosting the economy. The slight slowdown in service sector is an area of concern but we would like to watch the figures for one more quarter,” he added.

Bombay’s Stock Exchange’s Sensex closed at 14,564.53, up 516.19 points or 3.67 per cent. The 30-share index touched a high of 14,586.16 and low of 14,279.02.
National Stock Exchange’s Nifty ended at 4,360, up 3.46 per cent or 146 points. It touched a high of 4,368.80 and low of 4,230.60.
Hitendra Nayee, institutional-head, dealing, India Capital Markets, said, “domestic funds and foreign institutions both turned buyers. After months, we saw inflation climbing down and GDP numbers were also in line with expectations. The good thing is volumes were high, that shows interest returning back into the market. Now, the NSG meet will be keenly watched. We are expecting short-term uptrend in the market.”

However, second rung stocks were behind in the race as compared with heavyweights. BSE Midcap Index closed 2.38 per cent higher at 5,742.29 and BSE Smallcap Index gained 1.61 per cent to close at 6,891.64.
State Bank of India (7.19%), Reliance Infrastructure (5.97%), ICICI Bank (5.93%) Tata Motors (5.44%) and DLF (5.35%) were the major Sensex gainers. There were no losers in the index.
Shares of Tata Steel surged nearly 5 per cent after the company posted 60.5 per cent rise in April-June consolidated net profit late on Thursday. The company's shares ended up 4.99 per cent at Rs 600.35 with volume traded at 22,11,323 against two-week average of 14,78,472 shares. The steel maker is in talks to raise at least $1 billion from a stake sale to private equity firms or a private placement of shares, according to media reports.

Gammon Infrastructure Projects ended up 1.17 per cent at Rs 94.95 on BSE after it got an order for a bridge project worth Rs 8 billion.

Jai Corp ended up 5 per cent at Rs 324.30 on market talk that Mukesh Ambani's Reliance Industries may grant it a gas distribution contract.

On BSE , advances were 1,851 and declines 790.

According to NSE website, total turnover was Rs 10,626.94 crore (provisional), up from Rs 8,769 crore Wednesday—a prior to settlement day. Avdhoot Investment

IDFC MF launches IDFC Strategic Sector (50-50) Equity Fund

IDFC MF has launched of IDFC Strategic Sector (50-50) Equity Fund, an open ended equity fund that will invest up to 50 per cent of the assets in a chosen sector that is positioned for high returns while the balance amount may be invested in companies across market capitalisations and sectors.
The scheme opened on Thursday and will close on September 18. The investment objective of the scheme is to generate long term capital appreciation from a portfolio of predominantly equity and equity related instruments. The portfolio would acquire small and medium size companies with good long term potential.

This scheme may also invest in debt and money market instruments. This fund is benchmarked against the Nifty and will be managed by Kenneth Andrade, VP - Equities, IDFC MF.
The fund plans to invest 50 per cent of its AUM in sectors like auto, real estate, metals, energy, capital goods and telecom, while the balance will be invested in companies that attempt to give returns in line with the market.
Units of the scheme can be subscribed / redeemed at the applicable NAV, subject to applicable load, on all business days during the continuous offer.
Entry load will be charged as follows: amount to be invested being less than Rs. 5 crore -- 2.25 per cent, Rs. 5 crore or more – Nil.
Exit load will be nil in case of purchase of Rs. 5 crore or more. In case of purchase of less than Rs. 5 crore (if redeemed within 1 year) the entry load is 1.00 per cent.
Naval Bir Kumar, managing director, IDFC MF said, “to create wealth you need to identify growth sectors, invest early and have conviction to hold for the longer term and most importantly create the right structure for these investments to blossom. The launch of this fund underlines our commitment to this objective.Avdhoot Investment

Systematic investing pays when markets correct

For those expecting the Sensex to touch 16,000 in the near term, last week's market trend came as a jolt. With inflation continuing its upward trend, there wasn't much good news and as a result, on Thursday, the Sensex lost over 400 points. It has once again brought back the fears of corrections at regular intervals and consensus is growing in favour of a weak market in the near term.


While the earlier sore points of high inflation and resulting higher interest rate regime continue to exist, the bad news during the week came in the form of higher crude oil prices. The mild surge in oil prices has strengthened the case for bears who are once again back in action. With traders too taking comfort in going short, one cannot expect a huge recovery in the stock prices in the coming days. Much of the uptrend would be triggered by short covering than value buying.

But the good news for long-term investors is that the market has begun to show resilience and the current weakness has factored in most of the bad news. The intermittent selling pressures , largely driven by foreign financial institutions, needs to lose momentum for the local investors to commit larger cash. The local institutional investors like insurance companies and mutual funds, have been sitting on a larger components of cash and have preferred to play the wait and watch game. For More click here

Savings bonds can be collateral: FM

NEW DELHI: Indian savings bonds could now be used as collateral for obtaining loans from banks, the finance ministry said late on Tuesday.
The scheme is applicable for 7 percent Savings Bonds issued in 2002, 6.5 percent Savings Bonds issued 2003 and for 8 percent Savings Bonds issued in 2003, it said.
Savings bonds were issued by the government in those years as a saving avenue for officials who took voluntary retirement or retired at the time. for full story click

Loan growth better than 2007: RBI

BANGALORE: Growth in advances by Indian banks was better than last year, Reserve Bank of India deputy governor V Leeladhar said on Tuesday when asked whether high interest rates were hurting loan growth.
The central bank raised its key lending rate to a seven-year high of 9 percent in July to rein in double-digit inflation.
Loans by Indian banks as at Aug 1 were 25.8 percent higher than a year earlier, RBI data showed.

SBI life plans overseas foray

Riding high on the strong brand identity of State Bank of India, SBI Life Insurance is now looking to foray into overseas market next year by targeting Indian expatriates in the Middle East countries for selling insurance products.
"We have plans to enter Middle East countries as there is a huge potential for life insurance business here because of the large presence of the Indian expatriates. Moreover, SBI has a strong brand identity which will also help us.(to penetrate there)," SBI Life Insurance Managing Director and CEO US Roy told reporters here on Tuesday.
Stating that the company is still in negotiation with concerned authorities for overseas foray, he said it hopes to start operations in 2009-10. However, he said the company has still not decided on the distribution model for marketing products in the overseas market.
SBI Life Insurance, a 74:26 joint venture between SBI and BNP Paribas Assurance, has targeted to achieve over 70 per cent growth in new premium income at Rs 8,500 crore in 2008-09 against collection of Rs 4,800 crore in last fiscal. The company is also looking to achieve over Rs 10,000 crore of total premium income in this fiscal against Rs 5,622 crore in 2007-08.
The company has plans to open 250 new branches this year, besides doubling the headcount of insurance advisors in 2008-09. Presently it has 180 branches and 43,000 agents.
However, he said the company would not go for any fresh capital infusion this year because of healthy solvency ratio of 2.2 per cent with paid up capital of Rs 1,000 crore. Last year, it invested Rs 600 crore on expansion purposes.

US stocks fall on inflation data, financial worries

NEW YORK: Stocks fell sharply on Tuesday after a hefty jump in wholesale inflation and a drop in new home construction gave investors more reasons to believe the economy won't rebound anytime soon. The Dow Jones industrial average dropped by more than 100 points.
The Labor Department said its Producer Price Index rose by 1.2 percent in July, more than double the expected rate. The increase means prices have risen in the past 12 months at the fastest pace in 27 years.
The data also showed that core wholesale inflation, which excludes food and energy prices, rose 0.7 percent — the biggest increase since November 2006 and more than triple the 0.2 percent rise in core prices that had been expected.
"Maybe investors were hoping to shrug off the challenges of high commodity prices and inflation," said Jack A. Ablin, chief investment officer at Harris Private Bank. "But now we find out that perhaps the inflation situation is worse than we thought."
A weak report on new home construction did little to quell investors' worries. The Commerce Department said July housing starts fell to an annual rate of 965,000 units — higher than analysts predicted, but the lowest level in more than 17 years nonetheless.
Tuesday's pair of economic reports indicated not only that the financial sector is struggling to right itself after billions of dollars in credit losses, but also that the rest of the economy is still showing significant signs of stress.

Anil Ambani eyes big pie in DTH space

 Anil Ambani's Reliance Big TV forays into the growing Direct to Home (DTH) services and draws up an ambitious plan to capture 40 per cent of the market share within 12 months.

Reliance Big TV, a subsidiary of Reliance Communications, will offer 202 channels initially and increase the bouque to 330-350 over a period of time, company CEO Arun Kapoor said here on Tuesday.

Against 120 million TV homes in India, world's second largest, only six million are connected to DTH services being provided by four players namely, Tata Sky, Dish TV, Sun TV and DD Direct.



"The number of DTH TV homes is likely to grow by an additional 11-12 million in a year from now and we aim to have 40 per cent market share of that," Kapoor said.



The DTH subscriber base is likely to go up to 60 million by 2015, he added.



The service will be available in over one lakh outlets across country's 6,500 towns including over 2,000 exclusive Reliance branded stores. By March next year, the reach would be extended to 10,000 towns, he said.
"We are ready to provide the service to five million homes," Kapoor said adding that STBs would be outsourced from various vendors including Hyundai and ZTB.
He, however, did not rule out the possibility of setting up a Group-owned STB manufactruing facility in the distant future, saying," As of now, we don't have any plan. We will see that in future".

To facilitate the service roll out, Reliance Big TV has set up a call centre which would operate from two locations and capable of handling over 50,000 calls a day.

"An army capable of installing over 15,000 daily connections with specially trained installers would ensure fulfilment of every customer order within 48-72 hours," Kapoor said.

Apart from the existing four players, Bharti and Videocon are also planning to launch DTH service in the next few months.
Kapoor, however, is optimistic of being emerge as the leading player in the field through its 'superior product' and ruled out roping in any celebrity to endorse the brand.
"Big TV will mark the shift of TV content control from broadcaster to customer hands and define the future of TV viewing in India. We believe our product is superior and thus we don't need a big celebrity to endorse it. Our product is itself a big hero," Kapoor said.

Life Insurance

Life Insurance : Top things to know
1. All policies fall into one of two camps.
There are term policies, or pure insurance coverage. And there are the many variants of whole life, which combine an investment product with pure term insurance and build cash value.
2. Insurance is sold, not bought.
Agents sell the vast majority of life policies written in the U.S. because the life insurance industry has a vested interest in pushing high-commission (and high-profit) whole-life policies.
3. Whole life is expensive.
Policies with an investment component cost many times more than term policies. As a result, many people who buy whole life often can't afford an adequate face value, leaving themselves underinsured.
4. Whole-life policies are built on assumptions.
The returns quoted by the agent are simply guesses - not reality. And some companies keep these guesses of future returns on the high side to attract more buyers.
5. Keep your investing and insurance strictly separate.
There are better places to invest - and without the high commissions of whole-life policies.
6. Buy enough term coverage to fill your needs.
Life insurance is no place to skimp, especially with rates at historic lows.
7. Match the term of the policy to your needs.
You want the policy to last as long as it takes for your dependents to leave the nest - or for your retirement income to kick in.
8. Buy when you're healthy.
Older people and those not in the best of health pay steeply higher rates for life insurance - so buy as early as you can, but don't buy until you have dependents.
9. Tell the truth.
There's no sense in shading the facts on your application to get a lower rate. Be assured that if a large claim is made, the insurance company will investigate before paying.
10. Use the Web to shop.
Buying life insurance has never been easier, thanks to the Internet. You can get tons of quotes - and avoid the pushy salespeople. for more detail visit Avdhoot Investment

Auto Insurance

Auto Insurance: Top things to know

1. You're a statistic.
To an insurer, you're not a person, you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including some things that may seem unrelated to driving a car, including your occupation, who you are, and how you live.
2. Insurers differ.
As with anything else you buy, what seems to be the same product can have different prices, depending on the company. You can save money by comparison shopping.
3. Don't just look at price.
A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.
4. Go beyond the basics.
Most states require only a minimum of auto-insurance liability coverage, but you should look for more coverage than that.
5. Demand discounts.
Do not ask for any Discount it will affect u after sales services
6. Ask for the real thing.
Insurers cut costs by paying only for car parts made by companies other than the car's manufacturer. These parts can be inferior. Demand parts by the original equipment manufacturers (OEMs).
7. At claims time, your insurer isn't necessarily your friend.
Your idea of fair compensation may not match your insurer's. Your insurer's job is to restore you financially. Your job is to prove your losses so you get what you need.
8. Prepare before you have to file a claim.
Keep your policy updated, and re-read it before you file a claim so there are no surprises. For more detail visit Avdhoot Investment

Will Mediclaim reimburse my expenses related to the disease which I am already suffering before the inception of the plan?

Insurance company will not cover any illness/ailment which already existed at the time of first obtaining the insurance cover. However, some companies cover such conditions after, two or four continuous renewals; they start covering the pre-existing illness after that.

Comparision of Health Insurance Premium

Features ICICI LombardLombard Bajaj-Allianz IFFCO-Tokio Royal Sundram TATA-AIG Reliance General


Age-Limit 3 months to 65 years(renewal upto 75 years) 3 months to 70 years(renewal upto 75 years) 3 months to 70 years 3 months to 60 years(renewal upto 70years) 6 months to 50 years 3 months to 75 years

Pre & Post Hospitalization Expenses 30 days Prior & 60 days Post Hospitalization Expenses 60 days Prior & 90 days Post Hospitalization Expenses 60 days Prior & 60 days Post Hospitalization Expenses 30 days Prior & 60 days Post Hospitalization Expenses No 60 days Prior & 90 days Post Hospitaliazation Expenses

Pre-existing diseases (coverage after No of years) Covered After 2 claim-free years Covered After 4 claim-free years Covered After 3 claim-free years Covered after 5 claim-free years Not covered Covered after 2 claim free years

Cashless facility & Network Hospitals Yes list of Hospitals

Yes Yes Yes No Yes

Family Discount 10% 10% 10% 10% Yes Yes upto Rs. 1000

No Claim Discount 5% for Claim-free year with a maximum of 50% No No No No 5% for Claim-free year with a maximum of 50%

No Claim Bonus No 5% for Claim-free year with a maximum of 50% No 5% for Claim-free year with a maximum of 50% 5% No

Maternity Benefits No No No No No No

Ambulance Charges Covered Upto Rs. 1000 only in emergency Upto Rs. 1000 only Subject to a limit of Rs. 1000/- per claim in emergency Covered No

Room & Boarding Expenses Yes, No limit Yes, No limit Yes, No limit Subject to a limit of 1.5% of Sum assured per day Yes Yes, No limit

Specified diseases excluded for First two years First two years First year First year All diseases are covered First two years

Income Tax benefit under Sec 80D Yes Yes Yes Yes Yes Yes

Accidental Cover Yes Yes Yes Yes Yes Yes

Inflation soars to fresh 13-yr high of 12.44%

Showing no sign of reversing its rising graph, inflation soared to a fresh 13-year high of 12.44 per cent for the week ended August 2, on the back of rising food and fuel prices.
While the index for fuel items, for instance, rose by 0.9 per cent, the index for food items was also up by 0.9 per cent. Raw rubber rose by 5 per cent and maize 4 per cent. WPI for all commodities was up by 0.3 per cent.
Earlier during the day a strong wave of selling towards end of session saw the Sensex end at day’s lows. The market was abuzz that inflation numbers would be above 12.4 per cent against media expectations of 12.16 per cent. Traders also squared off positions ahead of an extended weekend.
Annual inflation based on wholesale prices crossed the 12 per cent mark during the week ended July 26, fuelled by costlier manufactured products, fuel and food items other than vegetables. Vegetable prices showed a decline of 8 per cent from the year-ago period. However food products rose by 0.1 per cent, non-food articles 0.4 per cent and textiles by 0.4 per cent. Similarly, primary articles were up 0.1 per cent and chemical and chemical products 0.5 per cent. Fuel and petroleum remained unchanged. For more
Avdhoot Investment

World's tallest woman dies in US

WASHINGTON: Sandy Allen, the tallest woman in the world according to the Guinness Book of World Records, died in the US state of Indiana.
The 2.31-metre tall woman died at the age of 53 at a nursing home in Shelbyville, Indiana, said a publication Wednesday.

Allen had been ill for a few months, a friend was quoted as saying in the Indianapolis Star.

The cause of death was not known, but she suffered from blood infections, respiratory problems and diabetes.
At age 10 she was already taller than 1.90 metres. A tumour that was removed in 1977 reportedly caused her unusual growth.

"She accepted the title of 'Tallest Woman' with pride, and became an international figure, appearing as Angelina the Giantess in the Oscar-winning Fellini movie Casanova, and was the subject of countless TV documentaries," said Guinness Book editor-in-chief Craig Glenday.

Glenday defined the woman as a "gentle giant" and recalled that Allen "often made her own clothes and wore hand-me-down sneakers donated by baseball stars."

Idea defers open offer to Spice shareholders

MUMBAI: Idea Cellular, India's fifth largest private telecom operator, has deferred its open offer for an additional 20 percent stake in Spice Communications in which the Aditya Birla Firm has already picked up 41 percent stake through open market and block trade transactions in July.

In a statement to the Bombay Stock Exchange Thursday, the company said: "The revised schedule of activities in respect of the offer pertaining to acquisition of the equity shares of Spice will be announced separately on receipt of observations from SEBI in terms of the regulations."

The open offer was earlier scheduled to open Aug 22 and close on Sep 11.

Idea Cellular has acquired 2 million equity shares, representing 0.29 percent in Spice Communications, at an average market price of Rs.74.81 each through open market transactions on July 9.

Further, Idea Cellular through a block trade had acquired over 281.4 million equity shares, representing 40.8 percent at a price of Rs.77.30 per share.

According to the market regulation, Idea has to make an open offer to the Spice shareholders to acquire up to 137,985,050 equity shares of face value Rs.10 each representing in aggregate 20 percent of the paid-up equity share capital of Spice at a price of Rs.77.30 per share.

In the afternoon trade, the stock of Idea cellular was trading at Rs.87, down 0.45 percent from its previous close, and that of Spice Communication at Rs.74.40, losing 0.75 percent.

Avdhoot Investment

Abhinav Bindra returns to a hero's welcome

NEW DELHI: India's first individual Olympic gold medal winner Abhinav Bindra returned from Beijing on Thursday to be immediately engulfed by an adoring crowd, followed by a series of meeting with dignitaries.


President Pratibha Patil invited the ace shooter to Rashtrapati Bhavan within hours of his arrival. Similar meetings with Prime Minister Manmohan Singh and chairperson of the ruling United Progressive Alliance Sonia Gandhi were scheduled later Thursday.

Before his meeting with the president late Thursday morning, the winner in the 10-metre Air Rifle competition went with his parents Babli and AS Bindra to meet sports minister MS Gill amid huge media presence.

"I am overwhelmed and honoured that I have got a chance to meet these people. It is a proud moment for me," Bindra told reporters after meeting the sports minister.

"It is a grand welcome and I am very happy."

Bindra returned in the early hours of Thursday, to be greeted by a huge gathering at Delhi's Indira Gandhi International airport that was present to receive the star shooter.

A band played and people danced the Bhangra as Bindra stepped out of the airport looking surprised by the grand reception.

A large number of sports buffs and officials of Indian Olympic Association (IOA) and National Rifle Association of India (NRAI) were present.

"It's a huge honour. I never expected such a welcome," Bindra told the media at the airport after arriving by an Air China flight from Beijing three days after his medal win.

Asked what he would do for sports, now that he is an icon in India, Bindra replied: "I will do something".

Policemen were deployed at the airport in strength and the shooter was whisked away in a small motorcade of three cars.

The country's latest sports icon was received by his parents, relatives and friends, as some in the crowd kept shouting his praise.

"Jab tak chand aur suraj rahega, Bindra tera naam desh yaad rakhega (as long the sun and the moon are there, the nation will remember you, Bindra)," shouted some youths.

June 2008 Industrial Growth figure pull the market down

June industrial growth figure came out today and it stands at 5.4% versus 8.9% (YoY) versus 4.1% in May so when compared to may this year it was increase of 1 percent or so . While infrastructure output number stands at 3.4% versus 5.2% (YoY).
Sector Growth Figure
Capital goods growth has come out at 5.6 percent (YoY).
Manufacturing growth is at 5.9 percent versus 9.7 percent (YoY).
Consumer goods growth is at 10 percent
while mining growth is at 2.9 percent (YoY).
Electricity growth is at 2.6 percent (YoY).
Avdhoot Investment

Nokia braces itself for iPhone challenge

Nokia India is planning to launch a series of new offerings over the next six months to take on competition from Apple’s iPhone and maintain its lead.

The company will launch new mobile games, an online music store and a sophisticated lifestyle mobile brand Supernova as a foil for Apple’s iPhone when it is launched in India.
Nokia India also unveiled on Monday its Nokia 6210 Navigator phone, which is the company’s first GPS-enabled mobile device. It has an integrated in-map compass for guidance.

The device also features a 3.2 megapixel camera, MP3 player and stereo FM radio. The phone has been priced at Rs 18,000.

Nokia now has 10 devices in the market that have the personal navigation feature including the Nokia N78, Nokia 6110 Navigator and Nokia E90 amongst others.

Devinder Kishore, marketing director, Nokia India, said Nokia 6210 Navigator comes with pre-installed maps of eight cities including Delhi and NCR, Jaipur, Ahmedabad, Pune, Mumbai, Chennai, Bangalore and Hyderabad.

“Maps of additional cities will be added later,” he said. Kishore also said Nokia India is all set for the 3G rollout. He also dismissed the buzz about 3G compatible phones being unaffordable.

“The costs of these phones would be around Rs 7,000-Rs 35,000. The company currently markets around 30 3G compatible devices in India,” he said.

Can I apply for a Health insurance policy when I am already diagnosed with some disease or ailment?

Yes, you can apply for a Health Insurance policy. But the policy will be issued excluding the diagnosed disease and other diseases pre-existing at the time
of inception of the cover.

Why is it important to disclose health details when I buy a policy?

You must disclose every detail about any disease or illness you have or any treatment you are undergoing while taking the policy. An insurance contract works
on the principal of “utmost good faith”, so not disclosing your health details will not be correct. Furthermore, non-disclosure can also lead to rejection of
your claim.

How is premium determined in Health Insurance?

Premium depends on several factors:
• Your age: Age is the most important factor for determining the premium since health risk increases with age and premium as well.
• Amount of coverage required.
• Number of family members covered.
• Your income \ earning.
• Other additional benefits.

Why do I need Health Insurance?

Illness is unforeseen, and cannot be predicted so Health Insurance comes to your rescue and finances your medical expenses. Moreover the Healthcare expenditure in our country is expensive which, vast majority of people can’t afford, and So Health Insurance is a tool to finance your sudden healthcare expenses. For more Click here

What is Health Insurance?

Health Insurance is an insurance policy which covers you and your family against any medical contingency. In short Health Insurance is a protection against medical costs. It is a contract between an insurer and an individual /group in which the insurer agrees to provide specified health insurance cover at a particular premium. The health insurer usually provides either direct payment or reimburses the expenses associated with illnesses and injuries.

Forex reserves decline $1.2 billion to $306 billion

Foreign exchange (forex) reserves dipped $1.2 billion to $305.5 billion during the week ended August 1, largely on account of revaluation of non-dollar assets in reserves against the dollar. The Bank of India (RBI) also sold some amount of dollars during the week. Commercial banks have still to see any pick-up in loan demand though deposits continued to grow steadily.

Jeevan Anmol LIC plan Features

Jeevan Anmol Life Insurance by LIC is a best policy for higher class this kind of term insurance policy never get returns but can make high risk cover & Tax benefits only Minimu sum Assure is 5 Lakhs. Give your Feedback here or Contact us for free quotes

Children Insurance needs? LIC Komal Jeevan

Children Insurance: LIC's Children Insurance is the best option for your child future, Child Career & Study Abroad This plan can be purchased by any of the parent or grand parent for a child aged 0 to 10 years. The best option is LIC's Komal Jeevan Money Back Insurance Policy. Contact us for free quotes.

Insurance Plans by LIC

Insurance Plan LIC: As individuals it is inherent to differ. Each individuals insurance needs and requirements are different from that of the others. LIC's Insurance Plans are policies that talk to you individually and give you the most suitable options that can fit your requirement. Match your requirement at choose your appropriate Policy.

Nazrein Milaana Nazrein Churaana-Jaane Tu Ya Jaane Na (Full)

Life insurance firms hit speed breaker

Growth is set to drop to 40-60% this year from 75%

KOLKATA: Private life insurers players are expected to grow their new business premium by 40-60% in the current financial year, down from a 75% growth registered in the previous year.



The slump in equity markets since January (the Sensex has fallen 27% from its peak on January 8, 2008) has dented the popularity of unit linked investment plans (Ulips), which form the chunk of life insurance policies sold in India.



Punit Srivastava and Sumit Agarwal of Enam India Research said in a recent report: “There are some key risks as most policies are unit linked with high equity component. Sustained bearishness in capital markets can further reduce persistency ratios, thereby putting pressure on profitability. We estimate private players to grow at a lower 27% over the next couple of years vs~100% for the past 5 years”.



A Motilal Oswal Research report also has a cautious take on the life insurance sector. “We estimate 35-45% growth in annualised premium over the next two years for large and medium private players, lower than half of their historical growth rates”, the report said.

08.08.08, lucky or unlucky?

You do not need to be a numerologist to find the date - 08.08.08 interesting.

Although astrologers, numerologists and Feng Shui experts differ on the 'auspiciousness' of the date, yet they agree it is a special one. Even the Chinese are kicking off the Olympics on 08.08.08.

"In India, we believe that the number 8 is an unlucky number. However, the Chinese believe it to be a very lucky number. It has also proved to be lucky for them," says Bejan Daruwalla, famous astrologer.

Numerologist Swetta Jhumani believes, "The date is special. Although the number 8 is not a very auspicious number in numerology, yet the presence of three 8 takes the total to 24 (8+8+8=24), which is considered a good number in numerology."

Mumbai-based numerologist Niraj Mancchanda agrees, "Three 8's together offset the negative vibes of the number 8 as the total is 24. Otherwise, disasters could have happened. Many disasters have occurred on the 8th or on a date, the total of which comes to 8.

The number 8 is not a very auspicious number. It brings hardship and bad luck."

But Feng Shui experts says that the number 8 is a very auspicious number.

"It is a very auspicious number. The number 8 brings us fortune and wealth. This is the reason why the Chinese are kicking off the Olympics on 08.08.2008," says Charuhas Naik, a well-known Feng Shui expert.

However, Jhumani says, "Most of the earthquakes in China have happened on the 8th. Even though, they are orgainsing the biggest sporting extravaganza in the world on 08.08.2008."

The date is not a good one for organising marriage and other auspicious ceremonies, believes numerolgists.

"The number - 8 is a karmic number, which brings success only when you struggle and work hard. It is either very good or very bad," adds Mancchanda.

Borrow Rs25 lakh home loan, repay Rs1 crore

If the current interest rates stay, you might end up shelling out more than Rs1 crore to pay off a Rs25 lakh home loan. How? Read on.
Six months is a long time, especially if you happened to take a home loan back then.
Banks were charging a floating interest rate of 11% on their home loans. The equated monthly instalment (EMI) on a 20-year loan (or 240 months) of Rs25 lakh would have worked out to Rs25,805 a month.

Around one-month back, banks raised the interest rate on floating rate home loans to 11.5% and have now raised it by another 0.75% to 12.25%.

Last time, hike in interest rates were not accompanied by an increase in EMI. Banks did the smarter thing and increased the tenure of the loan. The remaining tenure of the loan went up from 240 to 269 months.

If banks were to follow the same strategy now and increase the tenure of the loan, instead of increasing the EMI, the remaining tenure of the loan would go up to 394 months. Add to this the six months of EMI you have already paid, and you are looking at a total tenure of 400 months. If you keep paying an EMI of Rs25,805 for a period of 400 months, you would have paid Rs1.03 crore (Rs25,805 x 400 months) by the end of it.

However, the bigger question is will banks allow tenures to shoot up to 400 months? crore

How it will hurt you

Principal Rs 25 lakh

Initial rate 11%

Tenure 240 months

Initial EMI Rs 25,804

Principal repaid Rs 14,707

in first 5 months

Principal left Rs 24.85 lakh

Rate after 5 months 11.5%

Remaining tenure if 269 months

EMI remains same

Increase in tenure 35 months

at the same EMI

Principal repaid in Rs 4,027

the 6th month

Principal repaid in Rs 1,8734

first six months

Principal left Rs 24.81 lakh

Rate after 6 months 12.25%

Remaining tenure if 393.5 months

EMI remains same

Increase in tenure 159 months

Extra money paid to Rs41 lakh

service the loan (Rs 25,804 x 159)

Total EMI to Rs1.01

be paid crore

Avdhoot Investment

The first show of 'Singh is Kinng' was disrupted at a cinema hall here after protests by Sikh activists

Beijing Olympic Games declared open

BEIJING: Chinese President Hu Jinta officially declared open the 29th Olympic Games as triple gold medallist gymnast Li Ning lit the Olympic cauldron at the National Stadium, popularly known as the "Bird's Nest" here on Friday.


Jintao made the announcement in front of the capacity crowd of 91,000 at the National Stadium which staged a spectacular ceremony marking the start of the fortnight-long biggest sporting extravaganza on the earth.

India is fielding a 56-member contingent, including Athens silver medallist shooter Rajvardhan Singh Rathod, and would be seen in action in various disciplines such as shooting, swimming, tennis, archery and boxing.

However, India's eight-time champion hockey team would be missing the event for the first time in 80 years.

More than 10,500 athletes in 302 medal events would compete for next 16 days.

Delegations from 205 national and regional Olympic committees would participate in the quadrennial event.

Airtel iphone - iphone 3g in india from August 22 2008

Bharti Airtel has informed the market today that from August 22nd 2008 airtel will launch the iphone 3g in india , they have also informed that the pricing for the same will be announced later .Not sure if vodafone has given any info but this is first info from airtel ,not sure if vodafone will introduce it before itself .It can be got from any of the Airtel relation ship center.Im sure bharti would try to make profit by selling phone im not sure who and all are going to buy the phone but im sure that i will be standing in line to get hold of one .I have never craze about phones but for sure im craze about iphone .Will post more info of where you can get in your locality.

Finally inflation is above 12 percent

Inflation for the week ending july 26th has come to 12.01 percent for the past 4 or 3 weeks inflation was sticking below 12 and finally it has passed 12 percent , i just saw someone was looking for inflation data sorry this is late for the day .
Avdhoot Investment

Oil prices rebound above 119 dollars

World oil prices rebounded on Thursday, as it was announced that a key pipeline carrying crude from Asia to the West would remain shut for about 15 days following a recent explosion. Pricess had dropped on Wednesday owing to news of a surprise jump in US crude reserves, traders said.

New York's main contract, light sweet crude for September delivery gained 98 cents to 119.56 dollars a barrel in electronic deals today.

Brent North Sea crude for September rallied 1.03 dollars to 118.03 dollars a barrel.
It was announced today that the Baku-Tbilisi-Ceyhan oil pipeline would remain shut for about 15 days after a blast had occurred in a pump at a section in eastern Turkey.

The fire that had started today was likely to continue burning for another two days until the oil remaining in the pipe ran out, an official from Turkey's state-run oil and gas company BOTAS told Anatolia news agency.
Local authorities ruled out the possibility of sabotage, saying a fault in the system had been detected before the blast.

Separatist Kurdish rebels, who are active in eastern and southeastern Turkey, have sabotaged gas and oil pipelines as part of their 24-year armed campaign for self-rule in the region.

The BTC pipeline was inaugurated in 2006, carrying oil from the Caspian Sea fields to Turkey's Mediterranean port of Ceyhan, from where tankers transport the crude to Western markets.

Avdhoot Investment

Right Time to Invest in LIC’s ULIP starts now.

Right time comes to invest in LIC's Unit Linked Insurance Plans Like Market Plus-I, Money Plus, Future Plus, Profit Plus, Fortune Plus etc. Due to Stock Market is in correction zone U will get more Unit's in ULIP now. Lot's of NAV is is in negative Zone.Dont miss the opportunity contact us earliest for invest in Life Insurance. for more detail visit our site http://www.avdhootinvestment.com/

LIC Agent for Life Insurance is now online in Ahmedabad Gujarat INDIA

LIC: Life Insurance Corporation of India Agent is now available online in Ahmedabad, Gujarat, INDIA. LIC of India Authorized Agent. Contact us for Purchasing of LIC New Insurance Policy & Compare LIC Life Insurance with other Private Insurance Companies. For more detail visit http://www.avdhootinvestment.com/

New payment system for IPOs by Aug 10

A new payment system for Initial Public Offers that is aimed at not blocking investors' money till share are actually allotted will be launched as a pilot by August 10, stock market regulator SEBI said on Tuesday. "Hopefully by end of August, we will start the pilot project," SEBI Chairman C B Bhave told reporters on the sidelines of a seminar on financial planning. Initially, both the existing system of payment for public issues and the new alternate system will co-exist. "We really don't know how the system works. We need to get used to it. We have to sort out glitches if there are any in the beginning," Bhave said
Avdhoot Investment

India to remain economic powerhouse: CEO, HSBC worldwide

Despite warnings that the momentum of growth in emerging markets is slowing down, Michael Geoghegan, CEO of HSBC worldwide, is still betting on India as a high growth story. "Let's face it, many other countries would love to have growth in the high single digits. Yes, stock markets have fallen, so growth may slow down a bit, because if people don't have confidence they stand back. But India and China are economic powerhouses, and that is not changing," he says. HSBC's first half results and warnings about the future hit Asian markets earlier on Tuesday. HSBC just turned in first half results where its emerging markets performance, especially in the Middle East and Asia, to some extent offset the dismal showing in North America - and Mr Geoghegan believes the bank will stay 'very focused on emerging markets'. Emerging markets contributed to about 78% of HSBC's first half profits this year, given the losses in North America. Speaking to ET just before taking off on his annual 68,000 mile pilgrimage to meet up with employees wordwide, Mr Geoghegan said that the current credit crisis is likely to leave Asia largely untouched. "What is happening in the developed world, you may say it needed to happen, a slowdown was necessary, because poor quality of credit had spread through the market.
In Asia, and India, the quality of credit is better. Asia is far more conservative in giving and taking credit. We see, in India, even more conservatism creeping in, in consumer finance, for instance. We see the quality of credit in Asia improving," he says. HSBC, which calls itself the world's largest emerging markets global bank, is targeting to ensure that 60% of its business comes from emerging markets; and not only because America is making losses. Global banking and cross border presence is a focus area for the bank: "We're able to give our customers the benefit of being present in multiple markets." Mr Geoghegan, who's due for a 'routine' visit to India soon, is looking for significant growth in all areas. "We have a strong presence on the ground, we employ about 30,000 people in India. We're now in all sectors including insurance, and we believe we'll be doing a lot more business in all income streams," he says.
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Hello World!

Avdhoot Investment's Life & Non Life Insurance official Blog

Toyota to launch hybrid sedan in India

Global auto major Toyota Motor Corp plans to introduce its hybrid sedan Prius in India as an answer to soaring fuel prices and growing concerns over emissions, a top official at its Indian joint venture said.

"We are preparing to bring Prius into the Indian market though we have not set any timeline yet," Toyota Kirloskar Motor Ltd vice-chairman Vikram Kirloskar told in an interview.

"In the run-up, we have to develop skills to service it and make spare parts available across the country," he added.

The 2008 version of Prius has been adjudged the most fuel-efficient midsize car in the US. Sold in over 40 countries across regions, the hybrid variant has also been rated as the third least carbon dioxide emitting vehicle in Britain.

Kirloskar described Prius as a "great car" but admitted it was "expensive upfront".

Insurers will get options to invest in infra bonds

Changes in investment norms will ensure better returns for policyholders, says IRDA chief Hari Narayan.
J Hari Narayan, the new chairman of Insurance Regulatory and Development Authority (IRDA), takes charge at a challenging phase, when the government is keen on pushing a legislation to increase the Foreign Direct Investment (FDI) in the insurance sector. Given the impressive growth in the life industry, the stage is all set for the next phase of reforms. The non-life industry is also set for a take-off. In his first interview after taking over, Mr Narayan dwelt on a range of issues in the insurance sector and the road ahead.
Do you expect several new entrants in the sector when the cap on FDI in insurance is hiked from 26% to 49%?
A large number of private players are already operating life and general insurance sectors. Had the size of investment been an inhibiting factor, they would not have come in. I do not expect several new players to rush for joint venture tie-ups if the cap on FDI in insurance is raised. But existing players may increase their stake, which, in turn, will enhance FDI inflows. Capital has so far not been a major constraint for the insurance industry, given the way they have been expanding their business.
Some Indian promoters have restructured their joint ventures to expand their relative shareholding in the company. This is, perhaps, reflective of their relative strength. But insurers need capital to meet unexpected claims, expense over-runs and investment losses. And we do see some strain among Indian partners in raising capital whenever there is a call for greater shareholder funds. A hike in the FDI cap would help then. Also, comprehensive changes in the insurance legislation will give IRDA flexibility to respond to emerging market developments.
Promoters of private insurance companies were expected to dilute their shareholding through an initial public offering within 10 years of operations. Is this timeline being reviewed?
The dilution of equity stake would hinge on the final decision on the FDI cap. As the market matures, the insurance sector would also witness churning in the form of mergers and acquisitions (M&As). A realistic valuation of companies would be crucial. We need to do some homework on these issues and are looking at setting up an expert group.
Avdhoot Investment

Profit booking sets in; Sensex down 130 points

Weak opening of European markets triggered selling in index heavyweights like HDFC, Reliance and ONGC. However, midcaps and smallcap indices held on their fort.
At 12:45 pm, Bombay Stock Exchange’s Sensex was at 14,526.71, down 130 points or 0.89 per cent. The index touched a high of 14725.94 and low of 14503.51.
National Stock Exchange’s Nifty at 4,370.65, down 42 points or 0.97 per cent. It touched a high of 4436.15 and low of 4362.90.
BSE Midcap index was up 1.17 per cent at 5,708.63 and BSE Smallcap index was up 1.15 per cent at 7,060.53.
TCS (down 3.07%), HDFC (2.80%), BHEL (2.29%), Reliance (2.20%), ONGC (1.97%) were amongst the major Sensex losers.
Maruti Suzuki (up 1.45%), SCS (1.06%), Grasim Industries (0.91%) and Tata Power (0.52%) were the few Sensex gainers.
Market breadth was positive on the BSE with 1650 advances and 808 declines.
European market opened weak as oil prices began to rise. FTSE was down 0.29 per cent, CAC 40 declined 0.42 per cent and DAX was lower by 0.59 per cent.
Crude oil prices climbed to $126.35 per barrel on supply disruption fears on account of storm in Gulf of Mexico and US’s stand on Iran’s nuclear power plans. Avdhoot Investment

China Rongsheng plans $2 bn-plus IPO abroad

Chinese shipbuilder Jiangsu Rongsheng Heavy Industries Co Ltd aims to raise more than $2 bn through an initial public offering overseas, a company source familiar with the matter said on Monday.
The timing of the listing will depend on market conditions but the company is proceeding quickly with preparations, the source added.
Goldman Sachs Group Inc is helping the private-sector Chinese firm with the share offering, the source said. The company is considering the Hong Kong stock market as one option for its IPO, sources familiar with the situation have said.
An investment unit of Goldman Sachs, private investment fund DE Shaw and another Chinese private equity fund paid $250 mn for a minority stake in Rongsheng last year, the source said. Avdhoot Investment

Bank of Rajasthan to issue bonus shares

Bank of Rajasthan will issue over 26.8 million bonus shares in the ratio of one bonus share for every five shares held, the company announced on Monday.
In a regulatory statement, the bank also said it has posted a net profit of Rs.309 billion in the first quarter of the current fiscal.
Additionally, it has declared a dividend of 5 percent for the year ended March 31.

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80 killed in stampede at the Naina Devi temple

Around 80 pilgrims were feared killed and over 30 others injured today in a stampede at the Naina Devi temple in Bilaspur district in Himachal Pradesh.
"About 80 people have died and about 30 are injured as per latest reports from Bilaspur district," Himachal Pradesh government's Principal Secretary P C Kapoor said. The temple is located about 160 kms from Shimla.
However, Chief Minister P K Dhumal, who was in Chamba, said the toll was 68. He said he was trying to reach the spot but was stuck due to heavy rain.
Rumours of a landslide and rolling down of stones from a nearby hilltop led to a commotion which apparently caused the stampede as a large number of pilgrims tried to push their way causing collapse of a railing along the four-km trek to the temple. The pilgrims had gathered to offer prayers on the occasion of 'Navratra'. The incident that took place around 1000 hrs, Additional District Magistrate C P Verma told reporters from the spot, about 50 kms from district headquarters of Bilaspur.
Officials said the stampede took place as there was sudden rush at a point along the temple trek caused by people returning from the hilltop shrine and those going up.
"The stampede happened after a railing fell. People started running here and there," Kapoor said.
"It is presumed that most of the people there are from neighbouring Punjab and Himachal Pradesh," he said.
Superintendent of Police K K Indoria and other senior civil and police officials were at the spot to supervise the relief work which was hampered due to rain. The temple of under government control.
A temple functionary said devotees with minor injuries have been sent to a hospital in nearby Dawar Chowk while those with serious injuries were being sent to hospitals in Punjab's Anandpur Sahib.
Inspector General of Police (Law and Order) S R Mardi has rushed to the incident site from Shimla. BJP MLA Randhir Sharma from Kot Kahloor, under which the Naina Devi temple of Goddess Durga falls, has also rushed to the spot. Avdhoot Investment

Happy Friendship Day to all Readers

Dear All.
Avdhoot Investment wishes Happy Friendship Day to all it's Visitors..........
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Reliance Infra, Globalcom IPOs after markets stabilise: Anil Ambani

Reliance ADAG Chairman Anil Ambani on Thursday said inital public offering of two group companies Rel Infra, Globalcom would commence only after the volatility in global and domestic market subsides. "We have received the approvals on the Red Herring Prospectus... The volatility in global and Indian capital markets is what we are watching," he said, adding that a decision would be taken at an appropriate time. Replying to queries on the IPO of Reliance Infratel in India and listing of Globalcom in London, he told market analyst, "When we find an appropriate time, I am sure that we will proceed both with Globalcom and Reliance Infratel. "We are using this time to complete the roll out on Infratel and also in our negotiations with our prospective customers for Globalcom", he said in his post financial result conference.
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Weak dollar caused 30 pc of oil price rise: Iran

COLOMBO: The falling value of the dollar is to blame for around a third of the rise in the price of oil, Iran's Foreign Minister Manouchehr Mottaki said on Saturday. "Thirty percent of the increase (in the price) of oil is because of the decrease in the value of the dollar," he said on the sidelines of the South Asia Association for Regional Cooperation (SAARC) summit in the Sri Lankan capital Colombo. He did not say what time period he was referring to. The dollar has dropped 33.8 per cent against a basket of six currencies since US President George W Bush took office on January 20, 2001, according to the New York Board of Trade's dollar index. Oil has seen a heavy selloff since hitting a record high above $147 on July 11, but US crude futures ended higher on Friday on concerns about Nigerian supply snags and the West's dispute with Tehran over Iran's nuclear programme. The West suspects Iran is pursuing nuclear technology in order to build weapons, a charge Iran denies. On Saturday its President Mahmoud Ahmadinejad said the country would not retreat "one iota" from its nuclear rights. His comments were an apparent rebuff to Western powers who had set Saturday as an informal deadline for Iran to respond to their offer to hold off from imposing more UN sanctions on Iran if it froze any expansion of its nuclear work. Mottaki also said unspecified behind-the-scenes actions had played a role in oil price increase, and that Iran supported "the stability of the oil price in the market".
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Gold precious, but silver shines more for investors

Silver has always been the second choice for consumers after the glitter of gold, but when it comes to investors the yellow metal is giving just about half the return compared to its whitish-grey cousin. After outpacing gold's return of just about 14 per cent with over 30 per cent appreciation in 2007, silver is still maintaining a significant lead this year. The average return from investment in silver has grown by about 18 per cent since January this year, as against about 12 per cent for gold in the same period, the experts said. "Buoyed by industrial demand, silver prices are rising significantly in line with gold. In fact, volatility in white metal have been much higher than gold this year both in global as well as domestic market," brokerage firm Karvy Comtrade's Research Head Harish G said. Spot silver prices in the country, which were ruling at Rs 19,000 per kg level in January, have touched up to 27,000 per kg level. In the same time, gold rallied from Rs 10,800 per 10 grams to over 13,700 per 10 grams in the recent months. In the coming months also, the analysts expect silver to maintain a lead over gold in terms of return appreciation. "The size and depth of the market is a prime force behind the rise of prices. "Further, silver is presumed to be the cousin of copper and when the mining cost of base metals, especially copper goes northward, the cash cost on silver automatically pushes upwards. As a precious metal, factors contributing to gold keep this metal also afloat," said another brokerage firm Kotak Commodities Vice-President Si Kannan. Silver metal is not only used for a currency hedge, but also in industrial and technology sectors.
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Edible oil prices to remain firm in 3-4 months: CMIE

Domestic edible oil prices are likely to remain firm for the next three-four months, Centre for Monitoring Indian Economy (CMIE) has said.
Domestic edible oil prices rose in June 2008, mirroring the upward trend in international prices of edible oils. International prices were rising because of short supply of edible oils and diversion of oilseeds to the manufacture of bio-diesel.
"We expect international prices of edible oils to remain firm as the Solvent Extractors Association (SEA) expects the world demand-supply situation to stay tight this year," CMIE said in its monthly report here.
Meanwhile, edible oil imports have started declining. SEA, in its early estimates, depicts a 38.8 per cent fall in edible oil imports in May 2008.
SEA has attributed the fall in imports to restriction on stockpiling of edible oils imposed by some state governments.
CMIE expects edible oil imports to remain weak in the coming months and the rise in cumulative imports to come down to 7.2 per cent at 49.3 lakh tonnes by end-October 2008.
Edible oil production is also expected to rise by 13 per cent to 68.5 lakh tonnes in oil year 2007-08.
A further improvement in production to 73.2 lakh tonnes during November-October 2008-09 is expected to dampen imports by 15.4 per cent to 41.7 lakh tonnes, CMIE said.

BSNL board clears $10-b IPO plan

The BSNL board has cleared the company’s proposed $10-billion listing, a top Department of Telcom (DoT) official told ET on Friday. This will bring the company in direct conflict with its employee unions, which have threatened to go on an indefinite strike if the PSU goes ahead with the IPO.

When contacted, a top BSNL executive said: “The BSNL board has recommended the IPO and asked the government to facilitate the listing of the company.” The executive also added that the company has already begun the process of appointing merchant bankers.

On July 24, ET had reported that the government had initiated steps to put state-owned telecom major BSNL’s proposed $10-billion listing back on track. The report also said the finance ministry had asked BSNL to start preparing for the country’s largest-ever listing.

The unions are against the BSNL management’s contention that listing is necessary for expansion and grant of navaratna status. “It is also decided that if the government moves with the IPO proposal, the entire BSNL workforce of three lakh will get into direct action, including indefinite strike. Other PSUs, including HAL, have been granted navaratna status without listing. As such, the arguments put forth for IPO in BSNL are a ploy to disinvest BSNL and gradually privatise it like Videsh Sanchar Nigam (VSNL),” the employee unions of the PSU said in a statement late Thursday night.

Faced with opposition from its unions and the Left parties, the government had shelved BSNL’s IPO twice.

The DoT official said the government would try and bridge “differences between the BSNL management and its employee unions, to ensure that talks between the two sides continue and all outstanding issues are addressed”. BSNL sources also added that the PSU was planning to offer ESOPs and other packages to employees to win their support for the IPO.

It also plans to deploy a portion of the proceeds for a new pension package and for training and redeployment of its employees.

If BSNL does manage to raise Rs 40,000 crore by selling a 10% stake, the telco would be valued at Rs 4,00,000 crore (around $100 billion). This will catapult BSNL into the league of top telcos in the world in terms of market cap. Incidentally, the market valuation of Bharti Airtel is just around $37 billion.
Avdhoot Investment

Govt starts download of 3G bids, number switch

NEW DELHI: India's 300-million mobile subscribers have reasons to cheer. From mid-2009 they will be able to access third-generation (3G) services such as high-speed internet, interactive gaming, and instant downloads of movies, video clips and music on their mobile phones. And that’s not all. They will also have the option of changing their telecom operator without having to change their mobile numbers.

After nearly two years of debate and controversy, the government on Friday finally announced its plans for a global auction of third-generation (3G) radio frequencies, a move that could bring in billions of dollars for the government. The government also announced the introduction of mobile number portability (MNP) as well as a separate auction for broadband wireless access (BWA) services spectrum, popularly called WiMAX.

All this will of course come at a price for the consumer. Monthly phone bills went up by as much as 50% for subscribers in some countries when they switched from the normal 2G services to 3G services. Moreover, many subscribers may have to upgrade their handsets to avail 3G services.

The starting price for a 3G-enabled handset is about Rs 6,000 compared to an entry level phone of Rs 700. Finally, India is primarily a ‘voice’ market and it remains to be seen how many subscribers take to 3G-driven data services. It took nearly eight to ten years for customers in Europe to adopt 3G services in a big way.

3G rollout in India may be impacted by a parallel WiMax rollout. WiMax, an evolving technology is considered a threat to 3G as it offers data download speeds that are 10-30 times faster than 3G. And so while consumers can choose between opting for the two services, telcos would probably want to offer both services
Avdhoot Investment

Austral Coke IPO to open on August 7 in Rs 164-196/share price band

MUMBAI: Austral Coke & Projects Ltd’s 72,60,000 equity share offering will open for public subscription on August 7. The IPO will also have a green shoe option of 10,89,000 Shares. The company has priced the Rs 10 shares in the band of Rs 164 to Rs 196. The issue closes on Aug 13.

Austral Coke is mainly manufactures low ash metallurgical coke. It is also in the business of equipment rental, refractory and textile trading. The company plans to use the IPO proceeds to finance its expansion. It is planning a 150,000 tonne per annum LAM coke unit and an 8 mw captive power plant through waste heat recovery. The project is coming up at Sindhudurg in Maharashtra.

The company also plans to utilize the funds for acquiring coal mines either in Indian or abroad and retire high cost debt.

Austral Coke has concluded pre-IPO placement of 27,40,000 shares to Somerset India Fund at Rs 196 per share, aggregating to Rs 53.70 crore.

CARE has assigned IPO Grade 2 to the issue, which is being lead managed by Allbank Finance.
Avdhoot Investment

Reliance Capital Results - Announces Qtr Ending June 2008-2009 results

Reliance Capital rose 8.07% to Rs 326.85 crore in Qtr ending June 2008 for the financial year 2008-2009 compared to Rs 302.43 crore in qtr ending june2007. Sales rose 52.28% to Rs 780.40 crore in Qtr ending June 2008 for the financial year 2008-2009 compared to Rs 512.47 crore in qtr ending june2007.Avdhoot Investment

Voice of India Ishmeet Singh drowns in Maldives

E'Voice of India' singing contest winner Ishmeet Singh Tuesday died under mysterious circumstances by "drowning" in a swimming pool in Male, the capital of the Maldives.

The 19-year-old singer hailing from a middle-class of this industrial city of Punjab had gone to Maldives for a promotional event with the music company with which he had a contract.

Relatives at his residence here said the family was informed telephonically by the music company officials that Ishmeet died while swimming in a hotel pool in the Maldives.

"We are too shocked to react. We have no other information so far," a shocked relative told IANS here while confirming the tragic news.

Relatives, friends and admirers of the singer made a beeline to his house even as his shocked parents tried to come to terms with the untimely tragedy. A pall of gloom descended on the locality.

The singer left here Tuesday morning for Maldives from Mumbai.

Ishmeet had Nov 26 last year won the 'Voice of India' singing contest, pipping his closest rival Harshit from Uttar Pradesh in a keen contest. He was given the winner's trophy by melody queen Lata Mangeshkar.

Supporters of the singer voted heavily for him from Punjab during the finals of the contest. Even though Harshit led the votes tally in most regions of the country, the final count went in Ishmeet's favour due to heavy voting from Punjab.

"He was like a brother to me. I cannot even comment on what has happened. I cannot believe that he is no longer with us," fellow contestant Harshit told a TV news channel. Avdhoot Investment

Home loans get costlier; repayment to rise by over 12%

New Delhi: Home loans just got costlier with the lending institutions on Thursday announcing a hike in their interest rates by an average of 0.75 per cent a move that would increase repayments by a minimum of about Rs 2.5 lakh for a Rs 20-lakh loan.

Consumers would have to fork out over Rs 1,000 more every month as EMI for a loan of Rs 20 lakh, whose repayment is spread over 20 years.

Market leader HDFC today announced a hike of 0.75 per cent in its retail prime lending rate, on which its adjustable home loans are benchmarked, with effect from August 1.

While a few banks already announced rate hikes yesterday, others are expected to soon follow suit.

HDFC said that for new home loan customers, the adjustable rate loans would now be priced at a minimum of 11.75 per cent. Fixed rate remains unchanged at 14 per cent.

On a 11.75 per cent floating rate, the EMI is estimated to work out to around Rs 21,675 per month, up Rs 1,031 from Rs 20,644 at a rate of 11 per cent.

This would result in an overall additional burden of close to Rs 2,50,000 over the 20-year period.

The rates are being revised in the wake of tight monetary measures announced by RBI on Tuesday, when it asked the banks to maintain higher mandatory cash reserves with it and also increased its short-term key lending rates for them. Avdhoot Investment or read more on Housing Loan here

Simplex Infra net up 94%

Simplex Infrastructures has recorded a 94% increase in net profit for the first quarter ended June 30, 2008 at Rs 38.3 crore compared to Rs 19.7 crore in the corresponding period of the previous fiscal. Turnover increased to Rs 1,017 crore (Rs 594 crore).
Avdhoot Investment

Govt to give Rs 1,000 cr more to LIC for Aam Admi Bima Yojana

NEW DELHI: The government on Thursday decided to provide an additional Rs 1,000 crore to Life Insurance Corporation to cover another one crore rural landless households under the social security scheme 'Aam Admi Bima Yojana'. The scheme will cover an additional one crore landless households by September 30, 2009 under the AABY to provide death and disability benefits to the head of the family or earning members of the family, Information and Broadcasting Minister P R Dasmunsi told reporters after the Cabinet meeting.

The scheme, which is being implemented through the LIC, was launched on October 2 last year. The union government bears 50 per cent of the premium of Rs 200 per year per person and the state governments pays the rest of the premium on behalf of the beneficiaries.

Besides, the Cabinet also approved giving Rs 500 crore towards Social Security Fund maintained by LIC to provide 50 per cent share of premium Janshree Bima Yojana for all women self help groups credit linked to banks. Dasmunsi said the decision will facilitate providing life and permanent disability cover to 2.5 lakh women SHGs under the scheme by March 31, 2009.

Janshree Bima Yojana was launched in August 2000 to provide life insurance protection to the rural and urban poor under various vocational groups. The premium under the scheme is Rs 200 per member per annum, of which 50 per cent premium is paid by beneficiaries of the scheme and the rest pitched in by the government through the fund maintained by LIC. At present, there are 45 vocational or occupational groups covered under the scheme. Avdhoot Investment