Sensex surge on better growth concerns, higher export

    Mumbai, Sept 1 (PTI) The Bombay Stock Exchange benchmark Sensex gained 235 points to a one-month high today on heavy buying by funds influenced by strong GDP growth of the Indian economy and rising exports amid firming global cues.  The Sensex shot up by 234.75 points, or 1.31 per cent, to 18,205.87, translating into its highest gain in 10 weeks to a level last seen on August 4, led by a rise in stocks of raw material producers as investors speculated that economic expansion will boost profitability and demand.The Sensex had lost 60.99 points yesterday. Similarly, the broad-based National Stock Exhange index Nifty rose by 69.45 points, or 1.29 per cent, to 5,471.85.  Renewed buying by foreign funds, a rise in exports for the ninth straight month in July, strong auto sales, impressive 8.8 per cent GDP growth, a rebound in China's manufacturing activity and smart growth in Australia's economy in Q2 also helped the Sensex post impressive gains.  Index heavyweight Reliance Industries snapped its seven-day losing streak and gained Rs 17.60 to Rs 936.45, while the second most valuable scrip on the BSE, Infosys Technologies, rose by Rs 68.65 to Rs 2,775.75. The metal sector index gained the most, rising 3.02 per cent to 15,429.53 after Sterlite Industries, the largest copper producer, gained Rs 5.40 to Rs 156.55 on the back of a surge in metal prices in international markets. Similarly, Tata Steel rose by Rs 15.35 to Rs 537.75, its highest close since August 10.  From the BSE-30 component, 27 counters ended with gains while only three finished with losses.All the sectoral indices ended in the green, higher by between 3.02 per cent and 0.28 per cent.  Among the major gainers, RCom spurted by 4.94 per cent, Hindalco by 4.48 per cent, Bharti Airtel by 3.10 per cent, DLF by 2.57 per cent and R-Infra by 2.10 per cent. Amongst sectoral indices, the BSE-Realty index jumped by 99.15 points, or 2.98 per cent, the BSE-Tech index by 75.93 points, or 2.25 per cent, and the BSE-IT index by 107.72 points, or 2.00 per cent.Auto stocks initially were in keen demand on higher sales growth, a major part of the gains were pared on late profit-booking.  Barring China which finished down by 0.50 per cent, other Asian stocks ended higher today. Key indices from Hong Kong, Japan, Singapore, South Korea and Taiwan closed up by about 0.43 per cent and 1.26 per cent.  European markets were trading higher in their late morning deals. The CAC was up by 1.50 per cent, the DAX by 0.43 per cent and the FTSE by 1.09 per cent. US stock index futures, too, indicated a firm opening on Wall Street today.

Crucial Middle East talks begins on today 

Europe, Sept 01: The US will play an active and sustained role in the crucial direct talks on Middle-East peace process on Thursday, with participating leaders arriving here and US Secretary of State, Hillary Clinton holding a first round of talks with some of themThe key officials, responsible for the talks, hoped that the direct dialogue could be concluded in one year time frame."The United States will play an active and sustained role in the process. That does not mean that the US must be physically represented in every single meeting."We recognize the value of direct, bilateral discussion between the parties and, in fact, will encourage that between the two leaders on a regular basis," said George Mitchell, the Special US Envoy for the Middle East Peace. "On the other hand, it does not mean that the US will simply stand aside and not participate actively. We will operate in a manner that is reasonable and sensible in the circumstances which exist, but the guiding principle will be an active and sustained United States presence," Mitchell told reporters at a special White House briefing as the leaders started arriving for the direct talks, which is considered to be crucial to bring peace in the region.Last week Clinton invited President Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu to Washington on 2nd September to resume direct negotiations to resolve all final status issues."We believe these negotiations can be completed within one year," he said.Today(Wednesday) they will have bilateral meetings with the US President Barack Obama as will President Hosni Mubarak of Egypt and King Abdullah of Jordan. The four leaders then will join Obama for dinner at the White House to help launch these discussions.  On Thursday, Clinton will convene a meeting at the Foggy Bottom headquarters of the State Department between Netanyahu and Abbas and their delegations.

Oil creeps above USD 72  after big fall on weak demand

    Singapore, Sep 1 (AP) Oil prices rose slightly to above USD 72 a barrel today in Asia after a steep drop the previous day amid evidence that US crude supplies remain high and demand weak. Benchmark crude for October delivery was up 34 cents to USD 72.26 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract lost USD 2.78 to settle at USD 71.92 yesterday.Crude inventories jumped 4.7 million barrels last week, the American Petroleum Institute said late yesterday. Analysts surveyed by Platts, the energy information arm of McGraw-Hill Cos, had forecast an increase of 1.9 million barrels. Inventories of gasoline and distillates fell, the API said.The Energy Department's Energy Information Administration reports its weekly supply data later today.Oil has traded mostly in the USD 70s for the past year amid investor concerns the economic recovery from last year's recession in developed countries may peter out once massive stimulus spending fades.  High crude inventories in the US suggest consumer demand remains sluggish."The fundamentals are dreadful to the point of being historically among the worst supply and demand factors ever seen," Cameron Hanover said in a report.  In other Nymex trading in September contracts, heating oil rose 1.33 cents to USD 2.005 a gallon and gasoline gained 0.96 cent to USD 1.867 a gallon. Natural gas for October delivery fell 3.3 cents to USD 3.783 per 1,000 cubic feet.Brent crude was up 46 cents at USD 75.10 a barrel on the ICE futures exchange

Valley business losses mount to Rs 21,000 cr in 85 days

  Srinagar, Sep 1 (PTI) The 80-day period of shutdowns and curfews in the valley has dented the economy of Jammu and Kashmir by a whopping Rs 21,000-crore as the separatist sponsored agitation has affected every sector including tourism, handicrafts and the nascent industries. Several established and upstarting manufacturing companies, hotels and restaurants have laid off staff due to prolonged agitation which is showing no signs of ending."We do not have the exact data but lay offs have taken place mostly in the hotel and restaurant sector and the travel trade," President of Kashmir Chamber of Commerce and Industry (KCCI) Nazir Ahmad Dar told PTI.  Dar said although reducing the number of employees in the hotel industry was a common practice during the winters due to lean tourist arrivals, this year the lay offs have started at the peak of the tourism season in July.Asked about the estimated losses suffered by the business community in Kashmir, the KCCI president said on an average the losses were to the tune of Rs 100 crore.  "Even on the limited days of normalcy we have had since June 11, there has been disturbance in some part or the other of the valley ... it will be safe to put the cumulated losses so far at Rs 8,000 crore," he added. Dar said business in the state will flourish only after permanent peace is established, which was only possible when "Government of India takes concrete steps to break the impasse".Mushtaq Ahmad Chaya, the leading hotelier of Kashmir, said he was incurring a recurring loss of Rs 30 lakh per month due to the ongoing agitation. "My salary bill per month is close to Rs 15 lakh while another Rs 15 lakh are incurred on overheads like maintaining the hotel properties, electricity bills, etc," he said.  "I was lucky that my staff, who were mostly from states like UP, Bihar and Orissa, fled at the early stages of agitation due to fear. Otherwise, I would have to pay them salaries without getting any work done," Aijaz Ahmad Wani, who had last year set up a plastic  manufacturing unit at an Industrial Estate said. But there were others who had to take the "unpleasant decision" of sacking the entire work force. "I had around 230 workers, most of  them skilled workers, on my pay rolls. I could not afford to pay them without any revenues," Bashir Ahmad, another unit holder, said.The strikes and curfew are also costing the state government very dearly as they stand to lose Rs 161 crore for every day of shutdown in terms of sales tax, income tax and other levies."We can broadly calculate the loss to economy per day on pay bill; General State Domestic Product is Rs 35,000 crore per annum and trading and bank credit Rs 17,000 crore per annum. The figure approximately works up to Rs 161 crore per day," an official of the finance  department said.During the current year, the valley has witnessed either a shut down or curfew for nearly 85 days which translates into loss of over Rs 13,000-crore so far.  The turmoil in the valley has also severely affected big businesses in Jammu region. "Most of the supplies to Kashmir valley come from C&F agents based in Jammu. Since they are not able to despatch goods to Kashmir, they are suffering heavy losses," an official of the sales  tax department said.

Gold, silver scale  new peaks at opening

    Mumbai, Sep 1 (PTI) Both the precious metals, gold and silver, glittered on the bullion market during morning deals, touching their historic peak on the back of heavy stockists buying ahead of forthcoming festive season amid firm global cues. Fresh industrial buying supported the white metal.Good jewellers demand for the fast approaching festive season too boosted the sentiment. According to dealers, investors once again turned their attention to these safe-haven metals rather than going for riskier assets like stocks on worries over the faltering global economic recovery.Standard gold (99.5 purity) resumed at an all-time high of Rs 19,125 per ten grams, the level not seen since June 8, 2010, as against overnight close of Rs 18,945 while pure gold (99.9 purity) also logged its new peak to open at Rs 19,215 per ten grams from its last close of Rs 19,030.Silver ready (.999 fineness) too started at a fresh historic highs of Rs 31,245 per kilo from Rs 30,755 previously. Gold for December delivery shot up by USD 11.10, or 0.9 per cent, to USD 1,250.30 an ounce on the Comex division of the New York Mercantile Exchange yesterday, highest since late June and just below record settlement high of USD 1,258.30 an ounce on June 18.  Silver for December delivery rose 36 cents, or 1.9 per cent to USD 19.43 an ounceGold sets new record level at Rs 19,405 on brisk buying  New Delhi, Sep 1 (PTI) Gold today climbed to an all-time of Rs 19,405 per ten grams in the bullion market here after frantic buying stockists to meet the rising demand during the ongoing festival season.The precious metal mirrored the gains in global markets, the trend setter on the domestic front, marketmen said. Gold rose to two-month high levels in the global markets following a fall in the dollar.  Gold prices spurted by Rs 215 to trade at a record high of Rs 19,405 per ten grams, surpassing the previous recordlevel of Rs 19,220 set on June 8. Silver ready recorded a handsome gain of Rs 525 to trade at Rs 30,950 per kg on increased offtake by industrial units and jewellery fabricators. Marketmen said that a sharp rise in demand from jewellers and stockists to meet the ensuing festival season demand boosted the uptrendThe gold of 99.5 per cent purity shot up by Rs 215 to Rs 19,305 per ten grams. Sovereigns also rose by Rs 100 to all- time high of Rs 15,000 per piece of eight grams.     Silver ready gained Rs 525 to trade at Rs 30,950 per kg and weekly-based delivery spurted by Rs 625 to Rs 30,920 per kg. Silver coins were also gained Rs 200 to Rs 34,900 for buying and Rs 35,000 for selling of 100 pieces

Select copra spurts on rising demand, low supplies

    Mumbai, Sep 1 (PTI) Copra Rajapur and copra edible prices rallied further at the spices market here today due to persistent demand from stockists and retailers amid restricted arrivals from key producing belts. Copra Rajapur Mumbai jumped by another Rs 200 per quintal to Rs 6,600 from Tuesday's closing level of Rs 6,400 and copra edible Mumbai rose by Rs 100 per quintal to Rs 5,200, as against Rs 5,100 yesterday.Meanwhile, other spices maintained a steady trend in the absence of any major buying support.  Following are today's closing rates in rupees, with the previous rates in brackets: Black Pepper (per kilo) 215/225 (215/225), ginger bleached (per kilo) 240 (240), ginger unbleached (per kilo) 255 (255), copra office Alapuzha (per quintal) 4,075 (4,075), copra office Kozhikode (per quintal) 3,950 (3,950), copra Rajapur Mumbai (per quintal) 6,600 (6,400) and copra edible Mumbai (per quintal) 5,200 (5,100).

Exports grow by 13.2 pc to USD 16.24 bn in July

Hyderabad, Sept 01: Exports grew by 13.2 per cent to USD 16.24 billion in July compared to the same period last fiscal, posting growth for the ninth month in a row. Imports too jumped by 34.3 per cent to USD 29.17 billion in July compared to the same month last fiscal, according to the official data released on Wednesday.During April-July this fiscal, exports posted a growth rate of 30 per cent to USD 68.62 billion on year-on-year basis. Imports during the April-July period grew by 33.3 per cent to USD 112.2 billion.Oil imports in July grew by 4.4 per cent to USD 7.6 billion, while non-oil imports jumped by 49.6 per cent to USD 21.5 billionThe country's trade deficit widened to USD 12.93 billion in July compared to the year-ago period.

Sugar rises on heavy buying

  Mumbai, Sep 1 (PTI) Sugar prices rose sharply at the Vashi wholesale market here today on emergence of fresh buying from stockists and traders to meet brisk consumer demand ahead of the festive season. Medium sugar quality (M-30) surged by Rs 65/80 per quintal to Rs 2,650/2,760 from overnight closing level of Rs 2,585/2,680. Small sugar quality (S-30) also spurted by Rs 55/85 per quintal to Rs 2,610/2,710, as against Rs 2,555/2,625 yesterday. Following are today's closing rates per quintal, with previous rates in brackets: Small sugar (S-30) quality Rs 2,610/2,710 (Rs 2,555/ 2,625) and Medium sugar (M-30) quality Rs 2,650/2,760 (Rs 2,585/2,680).

Base metals rebound on global cues

Mumbai, Sep 1 (PTI) Base metals prices rebounded at the non-ferrous metal market here today on emergence of fresh buying from stockists and traders following a uptrend in the London Metal Exchange (LME). Meanwhile, brass utensils scrap moved down marginally owing to lack of buying supportNickel strengthened by Rs 10 per kilo to Rs 1,090 from yesterday's closing level of Rs 1,080 and copper scrap heavy rose by Rs 5 per kilo to Rs 380, as against Rs 375 previously.  Copper cable scrap and copper wire bar both firmed up by Rs 4 per kilo to Rs 387 and Rs 411.Copper armiture, cupper utensils scrap and copper sheets cutting moved up by Rs 3 per kilo each to Rs 367, Rs 351 and Rs 363, respectively.Brass sheets cutting edged up by Rs 2 per kilo to Rs 267.Zinc and lead inched up by a rupee per kilo each to Rs 122 and Rs 111However, Brass utensils scrap softened by a rupee per kilo to Rs 258.

All stops removed for 3G mobile service launch

    New Delhi, Sep 1 (PTI) Decks were cleared today for launching 3G mobile and broadband services in the country, with the government allocating air waves to private operators after making certain amends to the licence terms.The operators are authorised to use the spectrum for a period of 20 years from today, according to the amended licence conditions that allows companies to offer 3G services till the validity of the spectrum even if their telecom licences expire prior to that. The government has imposed a roll-out obligation, under which the service providers would have to cover at least 90 per cent of the service areas in the metros within the next five years. Bharti Airtel, Vodafone, RCom, Tatas, Idea Cellular, Aircel and S Tel were the operators who had bagged 3G spectrum in the auction in May that fetched the government over Rs 51,000 crore apart from about Rs 16,000 crore from the two telecom PSUs -- BSNL and MTNL.  BSNL and MTNL were awarded spectrum more than a year ago in view of their obligation to procure equipments through cumbersome process of inviting tenders. BSNL offers services throughout the country, except Delhi and Mumbai where MTNL is the operator. The operators have been awarded 5 Mhz of spectrum in each circle they won in the auction.In the two metros of Delhi and Mumbai, three operators -- Bharti Airtel, Vodafone and Reliance Communication had emerged the winners while no operator could bag pan-India spectrum in the auction that was conducted between April 9 and May 18 this year. The government had auctioned three 3G slots throughout the nation, while four slots were offered in five circles.  3G allows high-speed mobile broadband access enabling users to download full length movies, make video calls and watch live television programmes.According to the amendment, if the operators fail to achieve the roll-out obligations, they would be given extension for one more year after paying 2.5 per cent of the spectrum acquisition charge per quarter.Also, in case of two companies merging, only one slot of spectrum can be retained, according to the amended rulesThe operators will have to pay the upward revised spectrum usage charges ranging between 3-8 per cent depending upon the quantum of spectrum held by them.