The Hindu Business Line : News round-up for the week

After ICICI Bank, which got hit in credit derivatives, another Indian company Larsen & Toubro, similarly, made big losses. However, it is in commodities trading.

Larsen and Toubro has suffered a loss of about Rs 200 crore in commodity hedging in the current fiscal.

The losses were on account of hedging contracts in metals entered into by its UAE subsidiary, L&T International FZE.

The company said that the actual number will be known on finalisation of accounts.

Capital goods production growth rate slumps

The latest data on Index of Industrial Production has shown a sharp decline in the growth rate of the capital goods sector. The capital goods sector growth dropped to just 2.1 per cent.

The industrial data for January 2008 showed that the overall index grew by 5.3 per cent against a 11.6 per cent growth in January 2007.

This was because of the decline in all the major segments like mining, manufacturing, and electricity generation.

Indian crude basket crosses $100 mark

With continued volatility in the global crude prices, the Indian crude basket crossed $100 mark on March 10. The Indian basket hovered above $100.17 a barrel, 29 cents up from previous on March 8.

The Indian basket has averaged $98.46 a barrel in March as against the February average of $92.37 per barrel.

The current year average of the Indian basket was at $77.98 per barrel.

Sensex down 770; dollar dive against yen impacts markets

News of unfavourable global currency movements and weak January data on domestic industrial output sent the Sensex plunging 770 points, to its lowest level so far this year, to close at 15357.35. This was also its six-month low.

Foreign institutional investors were net sellers for Rs 108.5 crore, while domestic institutions were net buyers for only Rs 56.44 crore.

Farm debt waiver: Banks to get two thirds in cash

The Union Finance Minister, Mr P. Chidambaram, has said that about two-thirds of the Rs 60,000 crore farm loan waiver announced in Budget 2008-09 would be reimbursed to lending institutions in cash by August 2009. This is within 14 months of the 36-month period over which the lenders are to be compensated.

As much as Rs 25,000 crore will be disbursed to lending institutions in July-August 2008 and another Rs 15,000 crore in June-July 2009.

REC debuts at a premium

Rural Electrification Corporation Ltd made its debut at a premium of 23.7 per cent against the issue price of Rs 105 on the NSE last Wednesday.

TCS enters joint venture with Thailand co

Tata Consultancy Services has formed a venture with the Bangkok-based Thai Re-Insurance Public Corporation or Thai Re to set up a company called Firstech Solutions.

TCS will hold 20 per cent stake in Firstech, while the remaining 80 per cent will be with Thai Re.

Airports union calls off protest

The employees union of the Airports Authority of India called off its non-cooperation movement on March 13 after the Government assured the workers that it was willing to re-examine the concession agreement signed for the opening of the new airport in Hyderabad.

The Government has also decided that the new airport in Bangalore will start operations after May 10.

Highest salary offer Rs 1.44 cr at IIM-A

Despite economic slowdown, most students of post-graduate programme-general at the Indian Institute of Management-Ahmedabad have raced ahead with offers of fat pay-packets in this year's placement process.

The highest international acceptances this summer ranged from nearly Rs 1.12 crore to Rs 1.44 crore, although the actuals are expected to be 20 per cent higher.

The IIM-A Director, Prof S.K. Barua, told a press conference here that the highest domestic acceptance was in the range of Rs 50 lakh-70 lakh.

RIL to surrender 3 blocks in Kerala-Konkan basin

Reliance Industries is set to surrender three blocks in the Kerala-Konkan basin. The company has plans to surrender the basin, as the Government deciding against granting special status to these blocks.

Both Reliance Industries and ONGC had sought special R&D status for their blocks in the region. The special status would have given them five additional years for undertaking exploration and production activities.

Compliled by New Media Team