SEBI modifies F&O Trading

The Securities and Exchange Board of India (SEBI) will come up with significant twists in the arena of Derivatives trading. The regulator has taken such decision as it has witnessed that the F&O segment is overtraded. Investors have taken the derivative market more as a speculative medium rather than for hedging purpose. Thus, it may happen that investors for trading in the derivatives segment in the future would require a stipulated amount of net worth. Further the investors could also be asked for furnishing a net worth certificate approved by a chartered accountant.

New owner for Jaguar and Land Rover

The spell of NANO was not fully over, when Tata Motors again proved its significant presence in the Indian automobile sector by the acquisition of the luxury brands of Jaguar and Land Rover. The landmark has been achieved after a long drawn negotiation between Tata and Ford Motors. The former has acquired the above mentioned brands for US$ 2.3 billion in cash. The Company will raise this amount through a bridge loan from a group of banks, which includes SBI, JP Morgan, Citi Group and others. Subject to different regulatory norms the deal is ought to get closed by June 2008. This is one of the largest deals ever made by an Indian automobile company in the automobile business. The price that Tata has paid is less than half of what Ford motor paid in acquiring the two brands previously. The latter had paid around US$ 2.5 billion each for Jaguar and Ford.

Booming Commodities Market

Compared to the Indian equity market, the commodity market has succeeded in alluring several investors. The ongoing sluggish performance of the equity market has made investors dissatisfied. Commodities like crude, platinum, silver, gold, palm oil and others have witnessed a fluctuation ranging from 13 to 33% from the very beginning of this year. Though the fluctuation persits in the commodities market, there is considerable uptrend present in this market. This particular uptrend has taken its inception since 2004 following the surge in Global economy. Investments have thus taken a major position since then.
Currently, it can be seen that a significant rise has taken place in the commodities market and the major reason behind such rise is the US recession , which has been further aggravated by the subprime crisis.

Report of Sixth Pay Commission

The Sixth Pay Commission finally brought smiles at the faces of the Central Government employees. On Monday, the 24th of March the Sixth Pay Commission recommended pay hikes within the range of 20% to 40% for the employees of the Central Government. The revision of salaries will be effective from 1st January, 2006 and therefore the arrears will be given in installments. The Commission, this time has given an all round efforts. Along with the pay hikes, it has also urged in introducing more liberal pension scheme and a medical insurance scheme as well. This medical scheme will be optional for the present employees and pensioners but will be mandatory for the new recruits. The recommendations in the report will take atleast three months to become effective.

Rent Control will be modified

The conventional rent control rules are in a way to get modified by the Central Government. Jaipal Reddy, Minister for Urban Development, urged that such type of modification will soon be made and implemented too with immediate effect. In this maThe conventional rent control rules are in a way to get modified by the Central Government. Jaipal Reddy, Minister for Urban Development, urged that such type of modification will soon be made and implemented too with immediate effect. In this matter the Government is taking a very cautious step as the issue of rent control is very sensitive and also a tricky issue. The modification will be friendlier towards the owners and they will be empowered to increase rents from time to time. Under the new canon, tenants who have subletting their properties previous cannot do it further, with the implementation of the new provisions. The new regulation will be out by the next monsoon session of the Parliament.

Investors moving towards Commodity

Gradually, investors are moving towards commodity market due to the ongoing downturn equity market. More over the fall of US dollar below 100 yen in 12 years for the first time has forced also forced investors to shift money out of dollar assets. It has been observed by few that while some of the retail investors are still in the equity market, High Networth Individuals have already started flocking to the commodities if not at a greater pace but definitely in a moderate tone. As the situation stands by now, one having plans of investing for the next 10 years should look at commodities rather than equities.

Unexpected IIP

The Industrial production growth in January registered 5.3 per cent against 11.6 per cent same month last fiscal and it was declared on 12th March, 2008. This huge fall in the Industrial output level has taken investors, analysts and others in grave concern. Due to such disheartening declaration the Indian stock market on 12th March ended with marginal gains while it opened pretty strong. This data undoubtedly is an unexpected figure as the expectation was around 8 per cent. The fall is mainly due to the underperformance of the capital goods and ongoing negative trend of the consumer durables too. Manufacturing sector do have a major portion in the Index of Industrial Production (IIP), which accounts to be 80 per cent, however, this has fallen down to 50 per cent. The performance of consumer durables was at below level as usual. It showed a production growth moving down to 3.1 per cent as compared to 5.3 per cent last January. This fall is a corollary of less consumer demand due to increase in high interest rates.