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May 30-31, 1999


Sinha says border heat won't melt economy
Eventually, the stock markets and exchange markets will be able to discount the event and are likely to move up, the finance minister told financial writers.

Pallone decries linking Kargil and easing of nuke-related sanctions
''What the sanctions have accomplished is to cause American businesses to lose trade and investment opportunities with both India and Pakistan,'' the Democrat Congressman said.


Foreign investors salivate over consensus on economic liberalism
Since 1991, successive Union governments have sworn by liberalisation and deregulation. This signals a gradual shift in the tectonic plates beneath the Indian economy, strengthening its foundations. Hence the bullish fervour in the stock exchanges in the pre-Kargil days, says Dilip Thakore.


France eyes Himachal for business ventures
Acintec Paris-France would make available the latest technology for food processing industries, hydel power and waste treatment projects in the state.

Foreign equity in insurance will be capped at 26 pc, reassures IRA chief
The revised draft of the IRA Bill has extended the time period for the Indian promoter to offload upto 48 per cent stake in favour of the public from six to ten years.

BSE and NSE Weekly Review: FIIs remain buyers despite indices' nosedive; Sensex down 6 pc, Nifty down 5.75 pc

May 29, 1999


Speculators take positions for the kill; investors turn cautious
The FIIs may perceive the Kargil crisis as a passing phenomenon and go in for fresh buying. This is expected to push up prices, which in turn might help them to find suitable exit levels later.

Biz world wants Indo-Pak tensions to ease; IFC to invest $25 million in Moser Baer
IFC's investment in India would be back to the past average of $ 150 to 200 million, provided the region remains free from border clashes, said IFC's director Rashad Kaldany.

CII, Assocham chiefs make different sounds on Kargil impact
''There is no need for alarm and the industrial recovery which has begun would continue,'' CII president and Bajaj Auto chairman Rahul Bajaj said.

Kargil clashes irk Brownback, plan to ease sanctions to be withdrawn
'I hope to revisit this issue in the near future,' Brownback said. 'I won't feel comfortable doing so until there is a serious de-escalation of tension in the subcontinent.'


Maruti seeks registration of 3 models in NCR; sales likely to rise in May
The Supreme Court order and the resultant non-registration of cars in the NCR have had no effect on sales. Maruti had diverted vehicles to meet the growing demand in other parts of India.

RBI removes ceiling on bank credit to NBFCs
Banks may now assess and provide need-based finance to NBFCs, as per the loan policy laid down by them with the approval of their boards. Markets
BSE: Sensex 3773.32; down 89 points
NSE: Nifty 1081.50; sheds 10 points
Rs 42.93 vs US dollar
Rs 44.96 vs euro
Rs 68.71 vs pound
Rs 35.52 vs yen (100)

May 28, 1999

As Indian jets crash near LoC, financial markets nosedive
If the Indo-Pak face-off continues in the Kashmir region, the foreign institutional investors may find it difficult to pump in fresh money into the stock markets, negating the recent rally, say dealers.


Leaking Reliance pipeline forces Indian Oil to buy more gas oil
The problem has prevented two vessels carrying Nigerial crude from offloading to Reliance's Jamnagar refinery. This has adversely affected the RIL-IOC tie-up's target for July.

HPCL profit up by 28.5 per cent, announces 110 per cent dividend
The capacity expansion of the corporation's Visakhapatnam refinery from 4.5 to 7.5 million tonnes per annum is expected to be ready by September 1999.

Exports of made-in-India cars surge 142 pc in April
However, the two-wheeler industry, the star performers in the domestic market, failed to impress in the markets abroad. Its exports dropped by 44.7 per cent.

BSE: Sensex 3862.45; down 110 points
NSE: Nifty 1091.45; sheds 44 points
Rs 43.10 vs US dollar
Rs 44.96 vs euro
Rs 68.60 vs pound
Rs 35.18 vs yen (100)

May 27, 1999

Downswing on May 26 is being seen as a healthy correctionDownswing on May 26 is being seen as a healthy correction

Kargil air-strikes send shockwaves through financial markets
The BSE, the NSE, the forex and GDR markets suffered major losses as Indo-Pak tensions affected the sentiment.

FIPB moots changes in Tata joint venture's plan to trade in second-hand cars
The Foreign Investment Promotion Board is not averse to Concorde's plans to hike the equity base and set up service stations and workshops for Telco vehicles across India.


Ford to launch mid-size Ikon and small car in India
"The Indian automotive market is poised to become one of the largest markets in the world and Ikon will be there at the forefront," Phil Spender, MD of Ford India Limited said.

Indian hope disappears as US links lifting of sanctions to nuke NPT
Assistant Secretary of State for South Asian Affairs, Karl Inderfurth, said the US wanted ''flexibility'', not an outright ''suspension'' of sanctions. ''We believe India can take certain steps,'' he told a Senate Foreign Affairs Committee panel.

Britannia net profit surges 37 pc to Rs 396 million; 1:2 bonus issue announced
Sales in 1998-99 were at Rs 1.03 billion, up 21.6 per cent. The company proposes to pay its shareholders a dividend of Rs 5.50 for every Rs 10 face value share held.

Falling yield in eastern states may force India to import rice
Techniques to increase the yield in rain-fed and even drought-prone areas are needed to meet the shortfall arising from the shift from rice to cash crops, scientists said.
BSE: Sensex 3973.30; down 86 points
NSE: Nifty 1135.50; sheds 25 points
Forex: Rs 42.83 vs US dollar

May 26, 1999

Foreign car-makers want Euro-III norms in IndiaForeign car-makers want Euro-III norms in India

Kochi airport project model worthy of emulation elsewhere, says President
The successful completion of the project indicates prospects for NRIs' participation in building bridges, ports, roads and other infrastructure projects, K R Narayanan said.

Enron-promoted Dabhol power project opens, finally
The Union power minister hinted that Enron would soon face competition in power and gas sectors from other multinational companies.


Hyundai allowed to register Santro in the NCR
Since Santro Standard and Santro GLS comply with the India Year 2000 norms, the Delhi government has allowed their unrestricted registration as private non-commercial vehicles.

Anti-globalisation Indian farmers' caravan reaches Germany, eyes Europe
The rural Indian groups that back the caravan follow the pacifist philosophy of Mahatma Gandhi: all their actions would be governed by the principle of non-violence.


ITC net profit up 18 pc to Rs 6.23 billion; 55 pc dividend for 1998-99
ITC has strengthened its leadership position in the cigarette business; a similar growth in the company's hotel business was also being maintained

Indian Hotels net profit dips 14 pc to Rs 1.19 billion; 85 pc pay-out announced
The company's sales during the year stood at Rs 5.89 billion, down 1.17 per cent from Rs 5.96 billion the previous year.

BSE: Sensex 4060.08; up 31 points
NSE: Nifty 1160.20; up 8.6 points
Rs 42.75 vs US dollar
Rs 45.42 vs euro
Rs 68.45 vs pound
Rs 34.89 vs yen (100)

May 25, 1999

Kochi gets India's first public-funded airport
IDBI's net profit dips 16 pc to Rs 12.59 billion; 45 pc pay-out to continue
IDBI has lent Rs 92.81 billion -- more than a third of the approvals -- to infrastructure in 1998-99. The new lending plan may allocate 15 per cent of disbursals to project finance.

Pay hiked for 360,000 employees of PSUs
The Cabinet decision would involve a pay-out of Rs 20.7 billion per year, which will borne by the public sector enterprises.


Fearsome four months ahead
Companies are cutting out all flab and have gone on a diet. But there is a limit to how much fat you can cut, and when the knife reaches the bone, you are in trouble, writes Jay Dubashi.


FIPB nods to Toyota, Enron plans; Swatch arm not considered; 28 proposals okayed
Toyota will infuse Rs 740 million to hike its holding from 74 per cent to 87 per cent in Toyota Kirloskar Motors Private Limited. The 28 proposals entail Rs 6 billion foreign direct investment.

UP offers sops for cinemas to prop up film industry
Setting up of multiplexes would be promoted. Multiplex cinemas, which have invested more than Rs 15 million in the state, would be provided cent per cent enterainment tax exemption for three years.

Radico Khaitan to set up distilleries in Kyrgyzstan, other countries
Besides going global, RKL is introducing premium liquor brands in India and phasing out its economy brands.

LG to foray into financial services, insurance
A liaison office has already been established in India and the company is presently in the process of finalising a partner for its insurance venture.

Audi shelves plan to set up production unit in India
The German car-maker has not got the concessions it sought regarding the indigenisation level in India. Czech car major Skoda has also decided to adopt a go-slow approach for its project.

BSE: Sensex 4028.98; up 13 points
NSE: Nifty 1147.40; up 6 points
Rs 42.74 vs US dollar
Rs 45.21 vs euro
Rs 68.39 vs pound
Rs 34.50 vs yen (100)

May 16-24, 1999