Inflation at 13-month high of 9.8%; big challenge for RBI 14th-Sep-2011

Driven by expensive food and manufactured items, inflation climbed to 13-month high of 9.78% in August suggesting that frequent interest hikes by Reserve Bank of India since March 2010 has proved ineffective to contain price rise.t hikes by Reserve Bank of India since March 2010 has proved ineffective to contain price rise.
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August inflation at 9.78%, rate hike imminent, say experts 14th-Sep-2011

India's WPI rose 9.78% in August on year-on-year basis. With this there seems to be a higher probability for another rate hike on Friday even as economic growth slows and global outlook weakens. But will the Reserve Bank surpass market expectations of
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Govt, RBI to tackle rising inflation: Finance Minister 14th-Sep-2011

Just a couple of days ahead of the Reserve Bank's monetary policy, Finance Minister Pranab Mukherjee on Wednesday said the government and RBI together will be able to tackle soaring inflation, which he attributed to global price pressures.
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ADB trims India growth forecast 14th-Sep-2011

Asia's emerging economies will grow robustly into 2012, led once again by China, although troubles in the United States, Europe and Japan will clip their momentum, the Asian Development Bank said in an updated economic outlook released on Wednesday.
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Fall in rupee to hit revenue from US market: Essel Propack 14th-Sep-2011

The Indian rupee has hit a fresh two-year low as it fell to 48 against the dollar in early deals on Wednesday. In an interview to CNBC-TV18, R Chandrasekar, president, Essel Propack spoke about the impact of rupee's decline on Indian companies.
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Buy Asian Paints; target of Rs 3717: Firstcall Research 14th-Sep-2011

Firstcall Research is bullish on Asian Paints and has recommended buy rating on the stock with a target of Rs 3717 in its September 05, 2011 research report.
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Ind Swift restructures, growth seen at 30%: Management 14th-Sep-2011

Dr.Gopal Munjal, chairman of pharma player, Ind Swift, joins CNBC-TV18 to give an outlook to his business and the industry. Ind Swift is restructuring and the management is confident of maintaining growth at 30% at year-end.
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Govt can't do much about weakening rupee now: Basu 14th-Sep-2011

There is not much the government can do right now to stem the weakening of the Indian rupee, chief economic adviser to the finance ministry Kaushik Basu told reporters on Wednesday.
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Re's fall to impact a bit if it rises in 3-4 days: MindTree 14th-Sep-2011

The rupee has seen a huge decline in the past 72 hours and the obvious beneficiaries have been the IT companies. Chief financial officer (CFO) of MindTree Consulting, Rostow Ravanan told CNBC-TV18 that 1% change in the rupee would impact the company’s
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RBI seen delivering last hike on Friday 14th-Sep-2011

India's economy is slowing amid global weakness and as the cumulative effects of steady rate increases exact a toll, but high inflation means the Reserve Bank of India (RBI) is expected to deliver one last rate increase on Friday before pausing in its
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Expert committee on Food Security Bill submits its report 14th-Sep-2011

The expert committee on Food Security Bill has submitted its report. The committee has said that the National Advisory Council (NAC) recommendations had large subsidy implications and could also lead to distortion of food prices.
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Oil secy is not considering change in diesel prices 14th-Sep-2011

The government is not considering a change in diesel prices, the Oil Secretary GC Chaturvedi said on Wednesday, ahead of a meeting of the Empowered Group of Ministers (EGOM) on Thursday.
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Refrain from knee-jerk policies to curb inflation: Expert 14th-Sep-2011

Renowned agri-scientist M S Swaminathan today advised the government to refrain from "knee-jerk" policies to deal with food inflation.
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High interest plays spoilsport for Indian mfg: UNIDO 14th-Sep-2011

Frequent increases in interest rates for taming inflation have led to slowdown in India's manufacturing growth, dampening business confidence, a UNIDO report said today.
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Bankers sees RBI hiking rates by 25bps on Friday 14th-Sep-2011

With inflation moving closer to the double-digit mark, bankers expect the Reserve Bank of India to increase its key policy rates by 25 basis points in the upcoming policy review on Friday.
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Under recoveries increase, but no hike in petrol price: IOC 14-sept-2011

Reports suggesting another petrol price hike by oil marketing companies came in today, however, PK Goyal, director-finance of Indian Oil Corporation (IOC) denies these reports. “As of today, there is no such move on part of oil marketing companies to increase their prices” he stated to CNBC-TV18 in an exclusive interview. Under recoveries of oil marketing companies currently stand at Rs 0.41 and Rs 3 for the second fortnight of this month, he adds.

Goyal goes on to say that oil marketing companies have not made any proposal to limit the number of subsidized LPG cylinders. “We became aware of this meeting from your channel,” he said.

Another factor that is working against companies such as IOC is the depreciation in the rupee. According to Goyal, this fall has increased under recoveries by Rs 9000 crore.
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1% change in rupee impacts margin by 30 bps: HCL Tech 14-sept-2011

After all the bad news coming in from Europe and US, IT companies finally have something going their way. The sudden depreciation in the rupee will positively impact the revenues of the IT sector. Anil Chanana, chief financial officer of HCL Technologies tells CNBC-TV18 that every 1% change in the dollar-rupee rate impacts their margin by 30 basis points. “However, we don’t take advantage of this because we don’t trade in currencies, we run our business” he added.
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Rupee depreciation to aid export margins, says Biocon 14-sept-2011

Here is one sector that is happy about the rupee depreciation. Indian pharmaceutical companies that have huge base in the western markets are poised to make good of the widening differential in exchange rates of the currencies between the two markets. CNBC-TV18 caught up with Biocon chairperson and managing director, Kiran Mazumdar-Shaw, to figure what is happening with the company and the industry.

Speaking to the channel in an exclusive interview, Mazumdar says that the research division is set to benefit from the fall in the value of rupee. "That apart, Biocon will see margin improvement in exports due to the rate differential," she says.
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1% rupee depreciation hits operating margins by 0.4%: Wipro 14-sept-2011

Last week, the rupee touched a fresh one-year low as a result of euro’s losses and domestic oil refiners’ demand for strong dollar. Experts feel that positive cues from the equity market may support the rupee and the currency is likely to pause today after its sharp fall against the dollar yesterday.

Jatin Dalal, chief financial officer - IT Business, Wipro, in a chat with CNBC-TV18’s Udayan Mukherjee and Mitali Mukherjee, gives his view on how a sharp depreciation in the rupee can impact IT companies.

“Every 1% of rupee depreciation impacts our operating margins by 0.4%,” said Dalal.
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Tariff hike impact to be seen over 1 year: Idea Cellular 9th-Sep-2011

The telecom sector recently underwent a tariff hike, a complete opposite of the tariff war that was brewing in the sector a few months back. But have customers accepted this hike? According to Himanshu Kapania, managing director of Idea Cellular, the rate hike will impact customers over a one year period, not immediately. “Most of the existing subscribers continue to be at the existing tariff rates” he said to CNBC-TV18 in an exclusive interview. He adds that the overall impact of the tariff won’t be higher than 4-5%.

Kapania goes on to say that any further hike in tariff depends on the long term revenue growth. “The key performance indicator that we measure as a company is absolute revenue growth. If we continue to have unabated growth, then there may be a little tweaking of rate possible” he said. However, if any of these factors gets affected, the company will be wary to make any further experimentation.


In terms of the company’s penetration in the 3G space, Kapania said that they currently service 95 million customers. “But we should be able to cover close to about 250 to 300 million customers by the end of the year” he added.back