Infosys plans restructuring HR policies

If you are a software professional and thought a single entrance test will secure a seat for you in Infosys campus, think again.

Be prepared to sit for a test every year at Infosys and not just for your engineering skills but also for what the company calls the 'soft skills' which will include how well spoken you are and how you deal with your colleagues.

A credit rating system requires you to appear for a test every year and you can accumulate these ratings over a period of time, so when your eligible for a promotion you can bank on them to climb up the corporate ladder.

This rating will hold for junior to mid management levels and what if you choose not to sit for these tests well, then you will simply will not be promoted despite being eligible.

But will this not deter people from joining Infosys, as the management says on the contrary it will help weed off the underperformers.

However, the management knows only raising the performance bar will not help but they will have to train employees at every level to increase the utilisation rates beyond the current 75 per cent levels.

Rupee down by 12 paise against dollar

Press Trust of India
Thursday, May 22, 2008 (Mumbai)

The rupee on Thursday fell by 12 paise to 42.95/96 a US dollar, recovering somewhat from below 43 level it reached during the day, on fears that erupted after crude oil rose to a record.

Global crude oil prices spiralled to a new record high of above $135 a barrel, raising worries of further upward pressure on inflation.

In a two-way trade at the Interbank Foreign Exchange (Forex), the local currency resumed sharply lower at 43.06/07 and dipped further to a low of 43.20, the level not seen since first week of April, 2007.

Month-end dollar demand from oil refiners and importers also weighed on the rupee sentiment.

But, it recovered later to end at 42.95/96 a dollar, still lower from overnight closing level of 42.83/84.

Dealers attributed late recovery in the rupee to some dollar selling by exporters, who took the opportunity to book profits at higher level.

Sluggish equity markets
Sluggish equity markets also pushed the rupee downward. The benchmark Sensex closed 336 points down. In Asia, barring the Nikkei, most other Asian indices remained distinctly weak following steep fall on Wall Street on Wednesday.

Worries over the possibility of worsening trade deficit that might forced the apex bank to further tighten monetary measures also put pressure on the rupee.

The Reserve Bank on Thursday fixed the reference rate for US dollar at Rs 43.15 and that for single European unit at Rs 68.10.

The rupee premiums on forward dollar continued to move upward and ended strong on sustained paying pressure from banks and corporates.

The benchmark six-month forward dollar premiums payable in October ended at 39-41 paise, higher from 34-35-1/2 paise on Wednesday and the far-forward maturing in April also improved further to 54-1/2 - 56-1/2 paise from 52-1/2 - 54-1/2 paise previously.

Cross currency trade
In cross currency trades, remained bearish and dipped further against the British sterling, the euro and the Japanese yen.

The rupee tumbled against against the pound sterling to end the day at Rs 85.22/24 per pound from last close of Rs 84.18/20 per pound and also eased against the single European currency to Rs 67.67/69 per euro from overnight close of Rs 67.50/52 per euro.

The Indian unit declined against the Japanese yen to close at Rs 41.60/62 per 100 yen from previous close of Rs 41.49/51 per 100 yen.

HSBC to acquire majority stake in IL&FS Investmart

Mumbai, May 17 (IANS) The Hong Kong and Shanghai Banking Corporation Ltd (HSBC) is set to acquire through its group subsidiaries a major stake in India’s leading retail brokerage house IL&FS Investsmart Ltd (IIL). The acquisition amounting to 73.21 percent of IIL is awaiting approval from regulatory bodies. HSBC will be making the acquisition through group subsidiaries,

Robot performs world?s first surgery to remove brain tumour

Toronto, May 18 (IANS) Canadian doctors have created history by performing the world’s first robotic surgery to remove brain tumour. In the landmark surgery, neurosurgeons at Calgary’s Foothills Medical Centre guided a newly developed robotic system - called NeuroArm - to remove an egg-shaped tumour from the brain of a woman. Twenty-one-year-old Paige Nickason was discharged from ...

Lenovo launches online auction of Olympic theme PCs

2008-05-18 14:12:00
Lenovo, Chinese manufacturer of PCs and partner of the Beijing Olympic torch relay, Saturday launched its second phase of three online auctions in India as part of the countdown to the games. The auction features notebook PCs inspired by the Olympic torch and is signed by Saif Ali Khan. Saif was one of the torchbearers who ran ...

Microsoft Windows to come on low-cost laptops

The One Laptop Per Child (OLPC) project will install Windows XP on its low-cost laptops for students in developing countries, according to a joint announcement Friday. The operating system will be offered as an alternative to the project’s home-grown Linux-based operating system. Microsoft is charging the non-profit group just $3 per installation. But hardware changes including ...

Planning an FD? It's time to rethink

The last few months have been quite hard on investors, with highly volatile stock markets and rising inflation working in tandem to erode their wealth. The steep fall in markets and continued volatility had lead to small investors considering shifting their funds to debt funds, and the traditional favourite fixed deposits. However, now that the rate of inflation has hit a 41-month high of 7.41%, thereby threatening to render the real rate of return on FDs unattractive, it is time to rethink.

While it often does not find favour with investment advisors, a sizeable number of small investors continue to repose faith in the ‘safe’ FD. At present, they also feel encouraged by the fact that interest rates are showing no signs of softening in the short-term.

Besides, RBI is expected to hike the cash reserve ratio (CRR) by end April, which could result in interest rates inching upwards, translating into higher returns on term deposits. At a time when investors are scouting for answers, it’s worthwhile to find out how people who manage others’ wealth the financial planners view FD as an investment avenue at this stage.

Says financial advisory firm Transcend director Kartik Jhaveri: “I wouldn’t recommend FDs to anyone at this point in time. The simple question to ask while making the investment decision is: Will the interest earned on FD be able to beat the combined effect of inflation and taxation? The answer is no, because for that, the FD will have to yield a return of more than 10%, which no bank offers at the moment.”

Most banks’ deposit rates today are in the range of 8-9% for 1-5 years. In case some bank is offering a rate of interest higher than other banks, it is essential to verify the credentials of that bank before locking-in your funds into its deposit scheme.

My Financial Advisor director Amar Pandit has a slightly different take on the subject: “In case of people who have already parked their funds in high interest FDs that offer an interest rate of over 9%, staying put would be advisable as they could lose out on the interest otherwise.

However, if they have invested in low-yielding FDs, offering a return of 5-7% and the FD’s maturity is some time away, they can look at exiting it after considering the penalty.” His advice for those who intend to renew the term deposits now or infuse fresh money into the same is to wait and watch. “If the expected CRR hike materialises, FDs can become attractive as the money will become dearer causing interest rates to go up. Therefore, loans as well as fixed deposits could command a higher rate of interest,” he adds.

However, Mr Jhaveri does not believe that the likely CRR hike would have any major impact on returns offered by FDs. “Even if the CRR — and consequently, the bank rate goes up, the increase will be marginal.” His recommendation includes fixed maturity plans (FMPs) and other near-term funds. One needn’t direct all the investment towards equity-oriented schemes, a major chunk can go into debt funds. “Other savings avenues may come with some degree of volatility, but they would at least maintain your wealth, if not grow it. On the other hand, if you invest in FDs in times of high inflation, it will act as a wealth destroyer,” he opines.

And what approach should senior citizens and risk-averse investors who are inclined towards investing in bank deposits adopt? Replies Mr Pandit: “f they must invest in FDs, it’ advisable to wait for some time to get better deals. They can also go for lucrative long-term double indexation FMPs. Senior citizens can opt for 9% Senior Citizens Savings Scheme, PPF (withdrawals) and well-managed monthly income plans, with an equity component of around 20-25%. Additionally, some exposure to debt funds can be taken if the CRR hike takes place.”

Thanks to inflation, you are losing money on FDs

10 May, 2008, 0118 hrs IST,Prabhakar Sinha, TNN

NEW DELHI: Inflation is no longer just eating into your pocket by way of higher grocery bills. It's also eroding the money you've safely put away in a fixed deposit in your bank or post office.

That's because at 7.61%, it is more than enough to offset your interest earnings, giving you negative real returns.

Most banks offer interest in the range of 8% to 8.75% on fixed deposits of tenures ranging from one year to 10 years.

The country's largest bank, SBI, for instance, offers 8.5% on deposits of two years or more, while for shorter duration deposits, it gives 8.75%.

That may seem like it still gives you some positive real return after accounting for inflation, but that's an illusion for most.

This is because the interest income is taxable, even if your deposit is covered by Section 80C of the Income Tax Act.

If your annual income is above Rs 5 lakh, the tax deduction would be at 30.9% (including education cess), which means the effective interest income comes down to 6.05% if the nominal rate is 8.75% and to 5.87% if the rate is 8.5%. In either case, the current level of inflation more than wipes out this return.

Even if your income is lower, between Rs 2.5 lakh and Rs 5 lakh per annum, where the tax rate applicable is 20.6%, the effective interest rate would be between 6.75% and 6.95%, again not enough to give you a positive real return on your deposit.

Real estate and gold, which typically appreciate fast in inflationary periods, are possible options that are relatively risk-free.

Equity could be another option, but that requires a different kind of risk appetite and more in-depth knowledge of the market.

With an annual income below Rs 2.5 lakh current levels of bank deposit rates and inflation give you a marginal positive real return.

With a tax rate of 10.3%, your effective interest earnings on deposits would be between 7.62% and 7.85%, barely allowing you to keep your nose above water.

Courtesy: timesofindia.com

10 money tips from Mom

Your mother may have taught you more about managing your finances than you realize. Here's a list of those lessons.

Think Mom didn't teach you anything about money? Maybe you simply weren't paying attention.

1. "Have a place for everything, and everything in its place."

Ever tried to balance your checkbook or pay the bills when you couldn't lay your hands on one all-important piece of paper? And when are those bills due, anyway?

Organization is "very important in your financial life," says Douglas Borkowski, the director of the Financial Counseling Clinic at Iowa State University. When he was growing up, "Mom and Grandma were the ones who kept things organized," he says.

2. "Don't be late."

Mom was probably talking about school, but the rule applies to money, too. "You'd better pay your bills on time," says Les Kotzer, an attorney and a co-author of "The Family War: Winning the Inheritance Battle." Otherwise, you face increased interest rates, late fees and all kinds of financial penalties, including a damaged credit rating.

3. "You can do anything if you set your mind to it."

It's a fact: Set a goal and write it down, and you're much more likely to attain it. (Think of it as jotting down directions to a place you've never visited.) It works the same for financial goals.

When it comes to income, debts and savings, "you have to know how the pieces fit," Borkowski says.

Tell us: What was the best money advice you got from Mom?

4. "Know your own value."

Financial adviser Kathleen Miller gave her daughter the same advice she gives her clients: Make a net-worth statement every year.

On one sheet of paper, tally what comes in and what goes out. Include what you own and what you owe.

It's a great way to take a yearly snapshot of your financial life, says Miller, the head of Miller Advisors, a fee-only financial-planning firm in Kirkland, Wash. And it doesn't require any special math know-how.

Save the sheets from year to year and you have a "financial diary," which is "a real good way to have a very, very quick review," Miller says.

Vodafone to sell Apple`s iPhone in India

BS Reporter / Mumbai May 7, 2008

Telecom major Vodafone will offer the much awaited iPhone in India. The firm has signed an agreement with Apple to sell the iPhone in 10 of its markets around the globe.

Later this year, Vodafone customers in India, Australia, the Czech Republic, Egypt, Greece, Italy, Portugal, New Zealand, South Africa and Turkey will be able to purchase the iPhone for use on the Vodafone network.

However, the company did not disclose the price of iPhone. Business Standard had on April 16, 2008 reported that the price would range between Rs 27,200 and Rs 28,000. It is expected that Vodafone would launch iPhone by the first week of September. Apple sources in Singapore, when contacted last month, had maintained that the India launch would happen in 2008, but did not disclose the exact date.

The Cupertino, California-based Apple said that initially it will launch the 8 GB version of the much-hyped touchscreen device — which combines Wi-Fi capabilities with a powerful email client, TV feeds, online music store and map-based location guide.

Based on buyer response, it will stagger the launch of the 16 GB version in the middle of 2009. Initial sales target for the iPhone in India or unit numbers at the time of launch are not yet available, with Apple wary of grey market sales in India.

"The carrier deal for India is being worked out with Vodafone," said an Apple source, adding: "Vodafone could also become the carrier for the Australian market, once iPhone is launched there, though more than one carrier is likely for Australia."

Reliance Power to quote cum-bonus upto May 29th 2008

Reliance Power clarifies eligibiltiy criterion for shareholders to recieve Bonus Share.

Reliance Power to quote cum-bonus upto May 29th 2008.

Book Closure from June 3- June 5th 2008.

Source: BSE - Reliance Power Ltd has informed BSE regarding a Media Release dated May 05, 2008 titled "Reliance Power clarifies eligibility criterion for Shareholders to receive Bonus Shares". Press Release : "Reliance Power Ltd, on May 05, 2008, clarified and reiterated the eligibility criterion for shareholders entitled to receive the Bonus shares to be issued by the Company. Reliance Power, the company with the worlds largest family of shareholders of 4.2 million, has made this announcement in response to several queries from investors and market participants, seeking clarification on the eligibility of shareholders for the purpose of issue of bonus shares. All shareholders of the Company's records hold shares as at the end of business hours on June 02, 2008, irrespective of whether such shares were subscribed by the shareholders in the Company's Initial Public Offering (IPO) or such shares were purchased from the secondary market or otherwise after the IPO, shall be eligible to receive the bonus Shares. As approved by the shareholders of the Company, Reliance Power will issue Bonus shares in the ratio of three new equity shares of Rs 10 each for every five existing equity shares of Rs 10 each held, to the public shareholders of the Company. On April 25, 2008, the Company had intimated, the period of book closure being June 03, 2008 to June 05, 2008 for the purpose of determining the eligibility of Shareholders to receive bonus shares of the Company as per the Company's records as at the end of business hours on June 02, 2008." Date: 2008-05-06

Don't enter in IT: Bagga

2008-04-24 18:22:11 Source : CNBC-TV18

Ajay Bagga of Lotus Asset Management is of the view that one should not enter in IT space.

Bagga told CNBC-TV18, "If you look at the regional IT stocks yesterday, Acer numbers also in Taiwan were very strong. We have seen even the US techs really giving out good numbers. But on the India story, which is largely the offshoring story, there is a lot of hope that offshoring will pickup, we have seen the NASSCOM statements. We are not that convinced. We think it is better to stay on the sidelines and not enter IT. At least give it two more quarters and get some more visibility. Right now the managements are giving a hockey stick with weak near quarters and going up in the last two quarters, a lot of it contingent on a US recovery, which we are not very convinced about. We think the real economy has to really reflect all the bad news that is going through."

Buy Reliance Industries, target of Rs 3344: Angel

2008-04-24 16:17:45 Source : moneycontrol.com

Angel Broking has maintained its buy rating on Reliance Industries with a target Price of Rs 3344 in its April 22, 2008 research report. "RIL reported a good performance for 4QFY2008 surpassing our expectations with Refining once again driving growth. Net Sales jumped 35.8% yoy to Rs 37,286 crore (Rs 27,448 crore) backed by higher sales from the Refining and Oil and Gas segments."

"We believe that the Exploration and Production initiative to bear fruits from 2HFY2009 onwards and is expected to be the future growth driver. RIL stock is available at 18.7x FY2010E FDEPS of Rs 139.1. We remain positive on the growth prospects of RIL and maintain a Buy on the stock with a Target Price of Rs 3344," says Angel's research report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

$25-an-hour Jobs

By Mary Lorenz, CareerBuilder.com writer

If you get paid a salary, you probably don't give much thought to what you make on an hourly basis. Either the thought is too depressing ("That's all I make per hour?"), produces too much guilt ("That's how much the company spends every time I take a 'little' break to watch YouTube videos?"), or simply doesn't occur to you. That said, $25 an hour may not sound like much, until you realize that the median household salary is $46,326 according to the 2005 U.S. Census Bureau, and that breaks down to about $22.27 per hour for a 40-hour work week.


So who's making more than the average American at $25 an hour?


1. Market analyst -- $27.18/hour
Market analysts work in government agencies, consulting firms, financial institutions or marketing research firms, where they research and predict the sales potential of a particular product or service. A bachelor's degree is the minimum requirement for many jobs; however, a master's degree in a field such as business administration, marketing, statistics or communications will provide more opportunities.
Average annual salary: $56,541*


2. Chemist -- $25.16/hour
Chemists search for and use knowledge about chemicals to discover and develop new and improved products, processes to save energy and reduce pollution, and advances in fields like medicine and agriculture. A bachelor's degree in chemistry or a related discipline is the minimum educational requirement; however, many research jobs require a master's degree or doctorate.
Average annual salary: $52,333


3. Civil engineer -- $25.29/hour
Civil engineers plan, design and oversee engineering for building projects like airports, bridges, buildings and irrigation systems. They often need a degree in civil engineering or certification as a registered civil engineer.
Average annual salary: $52,605

4. Social worker -- $25.06/hour
Social workers work for places like community centers, hospitals and penal institutions, where they develop programs to help individuals and groups enhance their personal relationships and social development. Social workers receive accreditation through a four-year college degree program in social work and on-the-job experience.
Average annual salary: $52,119


5. Human resources generalist -- $26.90/hour
Human resources generalists work to improve working conditions within an establishment by identifying, evaluating and resolving problems in employee relations and work performance. A combination of directly related training and experience is typically required for carrying out the responsibilities for this job.
Average annual salary: $55,959


6. Architect -- $26.41/hour
Architects apply their knowledge of design to plan and supervise the construction of building projects according to their clients' needs and financial resources. Architects need a degree from an approved school of architecture.
Average annual salary: $55,060


7. Speech pathologist -- $25.05/hour
Speech pathologists specialize in the diagnosis and treatment of speech and language disorders and study the science of human communication. Practice requires a four-year degree in the field of health sciences.
Average annual salary: $52,105


8. Budget analyst -- $26.71/hour
Budget analysts review financial plans and help institutions prepare budgets, improve efficiency and lower costs. Budget analysts typically have at least a bachelor's degree in accounting, finance, business, public administration, economics, statistics, political science or sociology.
Average annual salary: $55,579


9. Detective -- $27.02/hour
Detectives carry out investigations to prevent crimes or solve criminal cases. Detectives are appointed based on their eligibility under civil service regulations, their performance in competitive written exams and their previous education and experience.
Average annual salary: $56,197


10. Physical therapist -- $25.68/hour
Physical therapists plan and administer medically prescribed treatment for patients suffering from injuries or certain diseases to restore function, relieve pain and prevent disability. A combination of training and experience is typically required to practice, as well as compliance with state licensing requirements.
Average annual salary: $53,410

Sensex drops 650 points; banks, IT lead decline

31 Mar 2008, 1416 hrs IST,INDIATIMES NEWS NETWORK
MUMBAI: Weak global cues, concerns about the health of the US economy and rise in domestic inflation, saw traders book profits. With frontline shares of technology and banks leading declines, the benchmarks lost nearly 4 per cent halfway through the session.

At 1:15 pm, the Sensex was down 646 points or 3.95 per cent at 15,725.06. The index touched a low of 15,685.34.

ICICI Bank (up 7.09%), HDFC Bank (6.96%), Infosys Technologies (6.84%), Tata Consultancy Services (6.34%) and HDFC (6.26%) were the biggest index losers.

Cipla, up 1.36 per cent and Ranbaxy Laboratories, up 0.2 per cent, were the only Sensex gainers.

The Nifty was down 171 points or 3.47 per cent at 4770.75, making a low of 4750.30.

The guidelines instituted by ICAI on Forex Exchange Derivatives are likely to rake up the issue of forex related skeletons in the corporate cupboards. Though guidelines have been issued earlier, they were recommendatory in nature form 1st April, 2009 and compulsory form 1st April, 2011. At a meeting held between 27-29 March, the council of the institute has made it mandatory for corporates to provide for all losses in their forex derivative transactions and to mark to market their outstanding transactions in all accounting periods ending 31st March, 2008 or after.

On Friday, data showed inflation rose 6.68 per cent in the year to March 15, higher than the previous week’s 5.92 per cent and market expectations of 6 per cent. This level is significantly higher than the RBI’s comfort level of 5 per cent, and only worsens the case for an interest rate cut anytime soon.

Meanwhile, stocks fell in Europe and Asia, led by banks and telecommunications companies, as concern deepened that losses in the credit markets will hurt economic and profit growth.

Ancient Croc Discovered

RIO DE JANEIRO, Brazil (AP) — Pointy-nosed crocodiles may have joined sharks as the dominant predators in the world's oceans some 62 million years ago, according to Brazilian scientists who on Wednesday unveiled one of the most complete skeletons found yet of the prehistoric animals.

Scientists called it a new species, "Guarinisuchus munizi," and said it sheds new light on the evolutionary history of modern crocodiles.

The fossil includes a skull, jaw bone and vertebrae, making it one of the most complete examples of marine crocodylomorphs collected so far in South America, said Alexander Kellner of the National Museum of the Federal University of Rio de Janeiro. He and other scientists unveiled fossils and a model of the 10-foot-long crocodile at the museum.

"It's a very rare find and it gives rise to several new theories," said Kellner, who co-authored an article on the find that was published Tuesday in Proceedings of The Royal Society B, a London-based peer-reviewed journal.

Guarinisuchus appears to be closely related to marine crocodylomorphs found in Africa, which supports the hypothesis that the group originated in Africa and migrated to South America before spreading into the waters off the North American coast, Kellner said.

The find also suggests that marine crocodylomorphs replaced marine lizards during the early Paleocene era, about 65 million years ago — the same time marine lizards became extinct. They believe it's a new species based on anatomical differences in the skull that are unique to this creature.

Philip Currie, a paleontology professor at the University of Alberta, Canada who was not involved with the discovery, said it was an important find.

"There are a lot of unknowns with this group in terms of evolution. Clearly the discovery of a specimen as nice as this one will help sort things out," Currie said in telephone interview.

The bones were found in the northeastern state of Pernambuco. Scientists named the species Guarinisuchus after the Tupi Indian word "Guarani," which means warrior and "munizi," in honor of Brazilian paleontologist Deraldo da Costa Barros Muniz, who has discovered many dinosaur fossils off Brazil's northeastern coast. Muniz didn't participate in this find.

Scientists have discovered a wealth of crocodile ancestors around Brazil in recent years.

In January, they announced the discovery of an 80 million-year-old land-bound reptile described as a possible link between prehistoric and modern-day crocodiles.

Two years ago, paleontologists from the Federal University of Rio de Janeiro announced the discovery of a 70-million-year-old crocodile fossil that they called Uberabasuchus Terrificus, or "Terrible Crocodile of Uberaba."

— Michael Astor, The Associated Press, 27th March 2008

Arbitrage Funds - Smart way to improve your returns

ource : moneycontrol.com

Investing money for short-term, say up to 1-11/2 years has generally been an issue. As it is the interest rates / returns are quite low. On top of this, there could be taxation issues, which will further reduce the effective returns.

Equity/equity funds may not be a prudent option for short-term. Therefore, we need to consider mainly the interest-based investment options.

What do we usually do?
Since it is quite convenient, very often the money keeps lying in the Savings A/c itself (also, maybe it is psychologically satisfying to see a big balance in one’s account). But don’t forget - this earns you just 3.5% p.a. interest and that too taxable. Hence, it is not good to keep too much money in the Savings A/c.

The next common thing to do is to make a Fixed Deposit (FD). This may earn you 6-9% interest depending on the tenure. But this too is taxable (if you are in the highest tax bracket, even a 9% FD will fetch you just 6.3% post-tax returns). So, given the fact that there are better alternatives, this too may not be a very intelligent choice.

What are the Alternatives?
Certain debt MFs offer an attractive alternative to Bank FDs. In case you are sure about your investment horizon, you can opt to invest in Fixed Maturity Plans. Else, if you want quick liquidity, liquid plus/floating rate funds could be considered.

Why FMPs are more lucrative than Bank FDs?
The pre-tax returns from these funds will be more or less in line with the returns from the Bank FDs. However, it is the difference in tax treatment on interest from bank FDs and returns from MFs, which enables MFs to give much better post-tax returns.

Interest from Bank FDs is fully taxable as per one’s slab rate. As against this, returns from Debt MFs will be taxed as either Dividend (@14.1625%) or Capital Gains (LT – @11.33% and ST – as per one’s slab rate).

Let’s assume that both FD and MFs give 8% returns. Then if you are in the 30% tax bracket, your post-tax return from Bank FD will be 5.60%. But, if you invest in MFs, you will earn either 7.01% (dividend if period is less than 1 year) or 7.09% (LTCG if period is more than 1 year).

Besides this, there is lot of convenience with MFs. MFs will deduct this Dividend Distribution Tax and pay you the net amount. You don't have to do anything. But in case of interest earning you will have to show it in your returns and pay tax, including advance tax. Also banks will deduct TDS on interest income. So at the year-end you will also have to get the TDS certificate from them.

How Arbitrage Funds fit in?Before we see how arbitrage funds can be useful, let’s first understand the concept of such funds.

Though, arbitrage funds invest in equity and derivatives such as futures & options, they are essentially debt funds. This is because when they invest in equity, they also take an exactly opposite position in futures. The objective is to capitalize on the difference in the prices in the cash market and the futures market (and hence the term arbitrage) rather than making money on equity or derivatives.

For example, say they buy Infosys shares @ Rs.1800/share in cash market on Aug 1. At the same time, they will sell Infosys shares in the futures market, which would be quoting for say about Rs.1815 (the difference in financial parlance is called the ‘cost of carry’).

Let’s say the price of Infosys on the expiry date of the futures contract (last Thursday of the month) is Rs.1900. Thus, the fund will make a profit of Rs.100 in the cash market [Rs.1900 – Rs.1800] and loss of Rs.85 [Rs.1815 – Rs.1900] in the futures market. (On the expiry date the cash and future prices are same). The net gain is Rs.15.

Or suppose the price of Infosys drops to Rs.1700. Thus, the fund will make a loss of Rs.100 in the cash market [Rs.1700 – Rs.1800] and profit of Rs.115 [Rs.1815 – Rs.1700] in the futures market. Again, the net gain is Rs.15

This way, the market movement does not affect them. They earn Rs.15, whatever may be the final price, which in this case works out to about 10% p.a. assured returns (@Rs.15 on Rs.1800 in one month).

In nutshell, arbitrage funds will yield returns more or less in line with liquid funds / floating rate funds or FMPs; and, more importantly, with practically very little risk.

For example, in last 6-12 months’ arbitrage funds have given about 9.25% p.a. average returns, while floating rate funds have given around 7.5% returns, liquid plus funds around 7.9% returns and FMPs around 8.5% returns.

Now, the key point – for tax purposes arbitrage funds are treated as equity funds. Hence, they enjoy lower tax vis-à-vis debt funds (see table below).

Particulars Arbitrage Funds Debt Funds

Dividend Distribution Tax Nil 14.16%

Long Term Capital Gains Tax Nil 11.33%

Short Term Capital Gains Tax 11.33% As per slab

Securities Transaction Tax 0.25% Nil

Thus they could give even better post-tax returns than debt MFs.
If the period is less than 1 year, both Debt Funds and Arbitrage Funds will give almost the same returns. At 8% pre-tax returns, the post-tax return works out to about 7%. But, if the period were 1 year, then post-tax yield would be 7.09% in debt funds and 7.73% in arbitrage funds.
Are Arbitrage Funds OK to invest in?There are no major risks associated with arbitrage funds unlike market-risk in equity funds or interest-rate risk in normal debt funds.

However, there could some minor risks. There may not be any arbitrage opportunities available, especially in bearish markets. In such cases, the arbitrage funds will work like liquid funds. Or on the expiry, the rates in cash and futures markets may not match exactly. This could marginally affect the returns. Or there could be some problems in executing the deals due to low liquidity.
Apart from this, one must keep certain points in mind:

Arbitrage funds usually have an exit load for investment period less than 3 months. So make sure that you won’t need this money for at least 3 months.

The returns are linked to expiry of contracts (which happens on the last Thursday of the month). So you need to be a bit careful about your redemption dates.

Concluding, therefore, one can say that arbitrage funds can be a good alternative to invest our short-term money, where we can earn high post-tax returns – with reasonable degree of safety and surety.

- Sanjay Matai

The author is an investment advisor and can be reached at sanjay.matai@moneycontrol.com.

Seven ways to survive a Stock Market Correction!

Source : moneycontrol.com

Global markets all have corrected lately. Irrespective of which market you are investing in, you would have been affected by the recent volatility. You could be an investor in America, India, China, Korea or anywhere else in the world- your situation would be pretty much the same. Many of you who are new investors might have entered panic mode, where you are unable to relax and have lots of stress and depression. I understand how it must be for somebody who just started investing in either stocks or mutual funds two months ago to see a notional loss of 30% or more now.

I remember the first time several years ago when I witnessed a stock market correction, my portfolio was down by over 50% and I too had entered panic mode. But thankfully after reading books on investing and listening to more experienced investors, I decided not to panic and hold my quality stocks. I am a much happier person today thanks to that decision.

Here are seven simple ways to survive a stock market correction as an investor:

1. Stop Listening To Analysts

Most analysts in the media instead of providing you with a solution will just confuse you. Somebody will say everything is doomed while others will say things are great in the long term. Forget listening to analysts- most of them won’t be of any help. The reason people listen to analysts is because they are looking for peace and hope. Trust me you will get none of that by listening to somebody else. Peace and hope are all within you.

2. Stop Staring At Your Portfolio Every Thirty Minutes

Another mistake people make is that they get up every morning and wait for the markets to open. Once markets open they start staring at their stock prices. A fall makes you feel worse and small rise makes you feel a little better. This won’t help either. Instead keep track of the fundamentals of your company every time the results are out. If your company is profitable and growing - be happy. If it isn’t, find out if you need to exit. The stock price will catch up in the near future if business is growing. Do you stare at your money kept in a bank FD everyday? Most probably not. Use the same principle when you invest in stocks or mutual funds.

3. Be Patient

Many of you might not have a lot of cash to buy cheap now; however please be patient with whatever you have bought. Even the youngest billionaire on Earth today is 23 years old. It took him 23 years to be a billionaire and he didn’t do it in few days or weeks. The youngest billionaire probably in history is 23-year-old Mark Zuckerberg - the founder of the social networking site-Facebook.

4. Speak To Actual Investors With Experience

Instead of interacting with analysts or your broker, speak with people who are actual investors and who have been in the market for longer periods of time than you. They will tell you how they have survived various stock market corrections and what has made them richer. Read and learn more about people who have actually created wealth and sustained it over a long period of time.

5. Stop Following Crazy Tips

Please for heaven’s sake stop following ‘hot’ tips which promise to make you a millionaire in a matter of months. Maybe the ‘hot’ tip is only meant for billionaires who would end up as millionaires in case they do follow the tip. If it seems to good to be true, it is probably just a scam, which hopes to take money away from retail investors and put them in the hands of greedy manipulators. Similarly stop following rumours about how fundamentally strong companies are going to be shut down and go bankrupt in the next few months. Use your own head and trust yourself.

6. Understand Market Cycles

Every asset class has a cycle. Stock markets, mutual funds, real estate all move in cycles. Please realize that nothing can keep going up forever in a single direction. There will be phases when prices will come down and again move up. If you go back into history you will see several instances when stock prices came down, however over a period of time quality companies always reward investors. Understand market cycles, and don’t become a slave to them.

7. Follow The Guru

Today the richest man on earth, Warren Buffett, is an investor who has created wealth because he has stayed away from what everybody else is doing and has simply invested in quality companies for the long term. He invested in Gillette, for the simple reason that he believed that men won’t stop shaving. It makes sense to follow, as I call him, “The Guru” and think long term and remember people who create wealth do things that others don’t.

I’m sure if you follow the simple techniques above you will be a much happier and a calmer investor. Investing is about controlling your emotions and being disciplined about what you do.

Happy Wealth Creation!

Yogesh Chabria

The author is an investor and bestselling author. His latest book Invest The Happionaire Way should hit bookshops near you within a few months. You can connect with him by visiting his blog at www.blog.happionaire.com and don’t forget to subscribe to his free newsletter. You can write to him at yogesh.chabria@moneycontrol.com

World's 10 biggest banks

March 27, 2008

A bank is a place that will lend you money if you can prove you don't need it, said US actor Bob Hope. But on a serious note, there is no denying the fact that banks are to economies what souls are to human beings.

The Bankersalmanac.com ranks the world's largest banks by total assets in US dolalrs. By the way, according to Bankersalmanac.com, Citibank NA is the world's 16th largest bank. So which are the top 10? Read on to find out:

UBS AG , Zurich, Switzerland

UBS AG is the world's biggest manager of other people's money. The bank's asset stood at $1,963.227 billion as in January 2008.

Present in major financial centres worldwide, UBS has offices in 50 countries. The bank had 81,557 employees on June 30, 2007. It originated in 1747, with its maiden branch coming up in the Swiss region of Valposchiavo.

The new UBS evolved out of a merger of the Union Bank of Switzerland and the Swiss Bank Corporation in June 1998. The merged bank's new name was originally supposed to be the United Bank of Switzerland. But it had to be named UBS as the proposed name clashed with United Bank Switzerland.

Marcel Opel is the bank's chairman of the board of directors, its executive vice chairman is Marco Suter, and the group CEO is Marcel Rohner. The bank's main competitors are Deutsche Bank, Citigroup, Morgan Stanley, Credit Suisse etc.

Rare View + GPS = Hit Hit Combo

Rare View is a common word for anyone who drives or owns a car or a two wheeler. It is the mirror used to keep an eye on the vehicles coming behind our vehicle to drive better.

GPS is the Global Positioning System.

It is a freely available space-based radio navigation system, which is reasonably reliable to get the information such as positioning, navigation and timing services. It can be used by any civilian to get the accurate information and time information in all weather, day and night, anywhere in the world.

Now DSUS DS-400GB splits rear-view with GPS, This is a service which splits your rare view off a third and displays a 4-inch GPS navigation unit. This helps you to know when will the next turn comes, whether condition in the place you are going and so on....

This is not yet released in India and shall take some time.... As the old saying "Good Things Take Time"

Companies & Industry

Boeing logs ambitious business plan for India

Company eyeing commercial aircraft orders worth $40 bn in next 20 years. ...Read

MNCs have a healthy share of cancer drug patent claims

358 of 413 drug patent applications for the disease in India are from top multinationals. ...Read

NMDC in talks with Canadian firm for mega-iron ore project

Bid to be submitted by mid-April. ...Read

Maruti to invest Rs 9,000 cr more

Plans world class R&D, design facility, regional distribution centres and logistics support. ...Read

Steel price hurts component makers

Rising steel price is becoming a major cause of concern for the $15 billion auto components sector that is already in trouble due to a lower demand in the domestic market, while exports have also ...Read

Indiabulls banks on realty skills to run Trumart

Barely four months after it acquired an 84 per cent stake in Piramyd Retail, Indiabulls is going in for a major restructuring of the Trumart business model. ...Read

L'Oreal India's beauty grows with time

A company known for consistently launching new products every few years, French cosmetics major L'Orial recorded a turnover of Rs 600 crore, and a growth of nearly 40 per cent, in India in 2007. ...Read

With level playing field you can't compete with NTPC, says C

Taking a dig at private sector competitors to whom it lost the bids for Ultra Mega Power Projects, state-owned NTPC has said it is an ethical company and can overcome any competitor on a level playing ...Read

Thermax to go slow but steady in power segment: CEO

Chooses not to undertake big contracts that carry a bigger risk. ...Read

Intas setting up plasma fractionation facility

Celestial Biological, a subsidiary of Intas Biopharmaceuticals Limited, is in the process of setting up the country's first plasma fractionation facility near Ahmedabad. ...Read

It's KMFvs Gujarat milk body for ice cream

When the mercury level soars in Karnataka, cooperative majors ' the Karnataka Cooperative Milk Producers' Federation (KMF) and Gujarat Cooperative Milk Marketing Federation (GCMMF) ' will fight it out ...Read

JSW Energy for 1,320Mw plant in MP

MP to get 37 per cent of the power produced at the plant. ...Read

Vakil Housing forays into Tamil Nadu

Bangalore-based Vakil Housing Development Corporation (VHDC) has forayed into the Tamil Nadu realty market by launching its project at Hosur. ...Read

Agarbathi maker to peddle room freshners

After diversifying from agarbathies to its allied branches like fragrances, personal care products and, natural and essential oils, the Mysore-based N R Group is now targeting customers through retail ...Read

Monsanto, Greenpeace clash over GM brinjal safety in India

The MNC's seed partner doesn't want details of its safety test in the public domain. ...Read

BMW to source chassis and engines from India

German luxury carmaker BMW is evaluating over 100 component manufacturers in India to outsource engines and chassis for its global manufacturing operations, according to a board member. ...Read

GHIAL to get less revenue from ground-handling firms

GMR Hyderabad International Airport Ltd (GHIAL), the public-private consortium operating the first new airport to start commercial operations, has reduced the revenue stream from the two mandated ...Read

BHEL to spend Rs 5,000 cr on JVs

Power equipment manufacturer Bharat Heavy Electricals Ltd (BHEL) is likely to spend nearly Rs 5,000 crore over the next three years in its yet-to-be-formed joint venture companies with power utility ...Read

'Our company is in a recession-proof sector'

Indo Asian Fusegear, a manufacturer of electrical products like circuit breakers, switches, fuses and compact fluorescent lamps (CFLs), has recently made a foray into services by bagging the power ...Read

Non-Sensex cos to beat the biggies

Housing, infrastructure, pharmaceutical and IT companies are all set to get on the scoresheet. ...Read

Blue Dart to increase warehousing capacity

Indian express-courier and distribution company Blue Dart, in which global logistics major DHL holds a majority stake, is to double its warehousing capacity to 2 million square feet in the next two ...Read

Samsonite targets small towns to widen reach

Samsonite, the premium travel gear brand, is tapping the smaller cities to widen its reach in India. The company expects footwear and other travel accessories to contribute 20 per cent of the business ...Read

The niche player: Mahindras driving into defence

On a chilly November morning last year, an army Rakshak jeep crawled slowly along a side road near Sopore in J&K. The six Rashtriya Rifles jawans inside were on alert; in that area danger is ...Read

Rajasthan stops work on Cairn pipeline

Cairn India's efforts to raise the nation's crude oil output has hit another roadblock with the Rajasthan government stopping work on a pipeline needed to transport the precious commodity to refiners, ...Read

Centre objects to construction near BPCL refinery in Mumbai

Constructions in the vicinity of Bharat Petroleum Corporation Ltd's (BPCL) refinery in Eastern Mumbai have left both the company as well as the home ministry worried because of the potential security ...Read

GSHL signs iron ore, coal mining leases in 3 countries

Ispat Industries' promoter Pramod Mittal-owned Global Steel Holdings Limited has signed up mining leases for iron ore and coal reserves in Brazil, Colombia and Mozambique. ...Read

Setback for Ranbaxy in Lipitor case against Pfizer in Canada

World's biggest drugmaker Pfizer today said a Canadian court had ruled in its favour, upholding patent for a molecule of its cholesterol-lowering drug Lipitor, thereby preventing Indian rival Ranbaxy ...Read

'Steel price hike may cause acute unemployment'

Expressing concern over the steep hike in the steel prices, which was of about 35 per cent in the current financial year, Punjab Chamber of Small Exporters, Federation of Jalandhar Industrial & ...Read

Jolly Grant to start operations from March 30

The modernising and upgrading work at the Jolly Grant airport in Dehra Dun is complete. ...Read

US-based Outline systems plans expansion in India

Plans to infuse $4-5 million into its India operations this year. ...Read

Unsafe, yet holi colour industry growing at 15%

The multi-crore holi colour industry in Uttar Pradesh continues to grow almost 15 per cent year-on-year, even as safer variants such as herbal gulal are consolidating their market pie. ...Read

Uttar Pradesh industry in 'renaissance' phase

Industry in Uttar Pradesh is passing through a 'renaissance' phase. While some industries are decreasing operations in the state, many are making inroads to set up their ventures in the state. ...Read

Biotech firms to float body for R&D

Stray efforts by Gujarat-based companies in biotechnology research and development (R&D) notwithstanding, the state is lagging behind in making its mark in the biotechnology space in the country. ...Read

Country Club acquires A'bad's Goyal Water Park

Earmarks Rs 150 cr for Gujarat. ...Read

Plans afoot to address staff shortage

Business and trade associations in Gujarat are now focusing on tackling the growing manpower crunch in the state. ...Read

Audi plans to open 15 dealerships by 2009

Luxury car-maker Audi plans to reach all the big cities in India by the year 2009. ...Read

Bangalore's real estate scene turns sour after 4 years

Real estate prices in Bangalore, one of the fastest growing metros in the country, have peaked and in some cases have come down in the present year, after riding high for four years. ...Read

Brigade's M'lore SEZ to have hospitality

Brigade Group, Bangalore-based property developers, which has received the final approval for its IT/ITeS Special Economic Zone (SEZ) at Mangalore, plans to introduce hospitality to make the project ...Read

Tata team seeks ways to keep Nano at Rs 1 lakh

Tata Motors has set up a separate team at its plant in Pune to examine ways to cut manufacturing costs on the Nano, the small car scheduled for an October launch, to bring the ex-showroom price down ...Read

Roche in talks with Actis Biologicals

F. Hoffmann-La Roche, the Switzerland-based global pharmaceutical major, is in talks with biotech drug research company Actis Biologics, to form a research and marketing alliance to access rights of ...Read

Larsen & Toubro flexes its engineering might

On January 26, 2007, when the sleek, indigenously developed Nag Missile Carrier (NAMICA) rolled down Rajpath in the Republic Day parade, Larsen & Toubro (L&T) executives and workers watched ...Read

India Inc set to slump further in FY09

Majority of the Sensex firms have already witnessed fall in sales, net profit growth in 9 months ended Dec '07. ...Read

Spurt in gold prices hurts retail plans of family jewellers

Soaring gold prices may derail the retail expansion plans of family jewellers who account for a chunk of the trade in India. ...Read

Hind Latex to set up cheap hospital facilities

Hindustan Latex, the mini ratna company based in Thiruvananthapuram, has floated a joint venture with US-based Acumen Fund to set up a chain of small hospitals that will provide affordable maternity ...Read

Kingfisher is IPL umpire partner

The DLF Indian Premier League ' the twenty20 tournament promoted by Board of Control for Cricket in India ' today announced that Kingfisher Airlines will be the official umpire partner and will ...Read

Demand for services boosts Genpact's net 109%

The New York Stock exchange listed Genpact reported positive results for the fourth quarter and year ended December 31, 2007, spurred by the rising interest from existing clients and demand for ...Read

Asia Heart plans hospitals in Bengal

Asia Heart Foundation is planning to set up hospitals in 19 districts of West Bengal. ...Read

Essar in race to buy ArcelorMittal's US mill

Essar Steel has emerged as one of the potential suitors for Sparrows Point mill of ArcelorMittal, with leading Russian steelmakers, according to a report. ...Read

Kaashyap Tech to acquire US company

Chennai-based training and SAP implementation company, Kaashyap Technologies Limited (KTL), is in the process of acquiring a logistics solutions company in the US. It is also scouting for a joint ...Read

Blue Food charts Rs 25cr plan for Bangalore

Blue Foods Hospitality, the Mumbai-based restaurant chain which owns nine brands and 12 sub-brands of restaurants, plans to expand in Bangalore with more of its restaurants. The company has so far ...Read

Godrej ropes in Hrithik to lather Cinthol sales

Godrej Consumer Products Ltd (GCPL), aiming to expand and double sales of its flagship brand Cinthol, has recently roped in actor Hrithik Roshan as brand ambassador. ...Read

8 banks may join SBI to fund Jaguar bid

Atleast four public sector banks and four foreign lenders are likely to join the State Bank of India-led consortium to raise $3 billion to fund Tata Motors' foreign acquisitions including the $2 ...Read

PSUs emerge unscathed by market plunge

Delay in investing Rs 72,000 crore in mutual funds saves government-owned companies from losses. ...Read

Bajaj Cap plans $50 mn mop-up for expansion

Bajaj Capital, a four-decade old investment advisory and financial planning firm owned by K K Bajaj, is planning to raise $50 million to expand its network despite turbulent global market conditions. ...Read

Onsite IT staff feel the heat of sub-prime crisis

Faced with imminent recession in the US, Indian IT services companies with major exposure to the North American markets are likely to cut the onsite allowances of employees deployed at clients' ...Read

'Open source drug discovery will lower costs'

The Council of Scientific and Industrial Research (CSIR) links 37 constituent laboratories with diverse research portfolios as varied as drug discovery to oceanography. The agency, which had a ...Read

Banking & Finance

SBH plans to raise Rs 900 crore

State Bank of Hyderabad (SBH) will raise Rs 900 crore to meet Basel-II compliance requirements for Accounting Standards 15 (AS15) as well as for the next year's expansion plans. ...Read

Dena may raise Rs 350 cr in FY09

Dena Bank is likely to raise Rs 300-350 crore capital in the next financial year to maintain a 24 per cent credit growth, according to P L Gairola, the chairman and managing director of the bank. ...Read

Govt expenditure, mutual funds may boost liquidity

Liquidity: May ease
Liquidity is likely to improve this week with the end of the outflow towards advance taxes. Banks could easily lend once again as the pressure on them would go off, said ...Read

8 banks may join SBI to fund Jaguar bid

Atleast four public sector banks and four foreign lenders are likely to join the State Bank of India-led consortium to raise $3 billion to fund Tata Motors' foreign acquisitions including the $2 ...Read

Merge PSU insurance firms: AIIEA

Contrary to the bank unions' demands to halt the merger of state-run banks, the All India Insurance Employees' Union (AIIEA) wants the four public sector insurance companies'United India Insurance, ...Read

Life insurers get flexibility in fixing premium

With a view to provide flexibility to insurance companies, the Insurance Regulatory and Development Authority (IRDA) has said that life insurers will be allowed to change the premium quotes from ...Read

Caring for your parents will be rewarded now

HEALTH INSURANCE: Total deduction under Section 80D doubles to Rs 30,000. ...Read

More burden on Ulip holders

INSURANCE: Ulip might get more expensive because of a service tax on asset management companies. ...Read

Punjab National Bank to raise Rs 500cr

BS Reporter / New Delhi March 24, 2008

Punjab National Bank will be raising Rs 500 crore as PNB Upper Tier II Bonds Series IV, with option to retain oversubscription, through private placement.

The proposed date for the issue is from March 25 to March 26, according to a release issued by the bank to the BSE.

World's 2nd largest wireless network by Apr

BS Reporter / New Delhi March 24, 2008
India is all set to become the second largest wireless network in the world ousting the US to the third slot by April this year. According to data available China tops the list with over 540 million wireless customers in February 2008, followed by the US with 260.50 million and India at 250.93 million.

However according to the Telecom Regulatory Authority of India (TRAI), the US is adding about 2-3 million subscribers in a month whereas China is adding around 6-7 million subscribers in a month. Compared to this India’s monthly wireless subscriber addition is highest in the range of 8-9 million a month. As a result the regulator points out India’s wireless subscriber base during the first half of April 2008 will surpass that of the US and will become second largest wireless network in the world.

In April TRAI also projects that India will meet another landmark it will hit the 300 million subscriber base mark - which would include both wireless as well as wire line subscribers.

TRAI states that a total of 8.49 million telephone connections have been added during February 2008 as compared to 8.74 million connections added in January 2008 thereby taking the total number of telephone connections to 290 million at the end of February 2008.

Meanwhile in the wireless segment, 8.53 million subscribers have been added in the month of February 2008 taking the total wireless subscribers base including GSM, CDMA and fixed wireless and local loop (WLLF) to 250 million at the end of February 2008.

Singer's Husband Found Death

The husband of British soul singer Corinne Bailey Rae (who achieved fame with her self-titled debut album)has been found dead.

The body of saxophonist Jason Rae, 31, was found in a flat in Leeds on Saturday, said West Yorkshire Police.

A police spokesman said officers arrested a 32-year-old man on suspicion of supplying controlled drugs. He has since been released on police bail.

A post-mortem examination on the body of Mr Rae - originally from Aberdeen - was inconclusive and police said they were awaiting toxicology reports.

A spokesman for West Yorkshire Police said officers were called to a flat in the Hyde Park area of the city on Saturday afternoon where they found the body of a 31-year-old man.

"As a result of inquiries a 32-year-old man was arrested on suspicion of supplying controlled drugs," the spokesman said.

"He has now been released on police bail pending further inquiries."

'Funk extravaganza'

Jason Rae, a saxophonist in the band The Haggis Horns, had been due to play a gig at the HiFi Club in Leeds on Sunday night.

The club confirmed that the gig had been cancelled.

The Haggis Horns are described on their MySpace page as "an eight-piece live funk extravaganza."

The group had previously performed and recorded with Bailey Rae as well as Amy Winehouse and Mark Ronson.

They released their debut album last September.

Number one

Leeds-born Bailey Rae, 29, met her husband when she worked as a cloakroom attendant in a Leeds jazz club when she was a student in the city.

The pair married in 2001 when she was 22.

Bailey Rae's record label said in a statement on Sunday: "EMI Records would like to offer its sincere condolences to Corinne Bailey Rae and the Rae family at this tragic time.

"We ask that the media respects Corinne's privacy and that of her entire family."

The singer was last month recognised at the Grammy awards for her contribution to the record that won the album of the year, Herbie Hancock's River: The Joni Letters.

She achieved fame with her self-titled debut album which went to number one in the UK charts and sold more than a million copies in the US.

The singer-songwriter was named best newcomer in the Mojo and Q Awards and picked up two Mobos.

According to reports, she recently spent a week working on her new album at Warren House Farm studio near Scarborough in north Yorkshire.

Tata working on cheaper Nano

Mumbai: Will the Rs 1 lakh car be available for less? Tata Motors has set up a new team in its Pune plant to cut the Nano’s cost further.

The Nano, unveiled at the Delhi Auto Expo 2008, is close to production and is expected to be available in October. It will be made at the Tata Motors plant in Singur, West Bengal, which will be commissioned in June, according to company sources.

“There is a team of people in Pune who are right now working on bringing the costs of the Nano down further,” Tata Motors Managing Director Ravi Kant said on Wednesday night. He was talking at a seminar on innovation sponsored by Marico Industries in Mumbai.

The basic, stripped-down version of the Nano could cost Rs 1.3 lakh on road. Other versions, including those to be sold in the West, will cost much more. These cars will have optional power steering, power windows and air-conditioning, apart from CD players and cigarette lighters.

This would mean a bigger engine, and therefore subtle changes in design, said a source on condition of anonymity. However, the basic structure of the car would remain unaltered, he added.

The cost-cutting team comprises a set of people who were not part of the team led by Girish Wagh, lead designer of the Nano and Tata’s mini truck Ace. The Nano has coined a new phrase in global circles – frugal engineering.

The car, which uses extensive amounts of steel in a semi-monocoque design, is able to withstand stress without an extensive frame. This brings costs down.

© Copyright 2008 HT Media Ltd. All rights reserved.

20 More TV channels

The Reliance Dhirubhai Ambani Group is set to launch 20 TV channels in the country as part of its plans to expand the reach in the fast-growing broadcast entertainment business, top company officials said.

The group, which has Reliance Entertainment as a subsidiary, is foraying into the broadcast business through two companies Reliance Big TV Entertainment and Reliance Big TV News, the officials added.

"We are at the planning stage. So we are not revealing the details of the media project right now. At the appropriate time - very shortly perhaps - we will make a formal announcement," a spokesperson for the group told IANS.

"The first of these channels will go on air probably in July-August this year. We have already applied for approval of these channels from the information and broadcasting ministry," the spokesperson added.

Two separate companies are being floated since the government imposes restrictions on foreign direct investment in the news media sector and the group is proposing two general news and two business news channels in Hindi and English.

The group wants to remain open to the idea of roping in an international player in the entertainment TV segment, officials explained.

Although the other 16 channels have not yet been finalised, the idea is for two TV channels catering to Hindi entertainment and regional movies. Besides, plans also include channels for children and on lifestyle and leisure.

The Rs.130-billion Reliance Entertainment Ltd has interests in the production, distribution and exhibition of films, besides foraying into FM radio, Internet and television content.

The Reliance Anil Dhirubhai Ambani Group, through its subsidiaries, also has equity stakes in a number of media and entertainment companies. The group also markets music and movies under the labels of Big Music and Big Flicks.

In 2005, the group had also acquired Adlabs Films, which is among the largest entertainment companies in India with interests in film processing, production, exhibition and digital cinema. Through it, the company has forayed into FM radio under the Big 927 FM banner and has licences for 45 stations. It already runs 12 stations across the country with more planned in the ensuing months.

Girl punished even after rescuing 40 kids

Sunday, 16 March , 2008, 19:50

Seaside: A 15-year-old girl who stopped an out-of-control school bus she was riding on was handed a Saturday detention instead because she was skipping school.


Marina High School student Amanda Rouse was on a bus with 40 elementary school students on Wednesday morning when the driver fell out of her seat after a turn and hit her head.

Rouse jumped up and applied the brakes, bringing the bus to a halt after striking two parked cars. No one was injured.

She said had asked the bus driver for a ride because she felt sick at school.

"She is in trouble with school because she made the wrong decision," said Rouse's grandmother, Sally Correll. "But I can't help but believe that she was where God wanted her to be."

Taslima Nasreen plans to leave India

Kolkata: Controversial Bangladeshi author Taslima Nasreen on Monday told Indian officials she was leaving India, her home for several years.

"I could not endure it anymore," Nasreen told IANS from an undisclosed location where the government has sheltered her after violent protests against her in Kolkata last year.

"I am leaving because there is no other option left for me," she said after meeting foreign ministry officials.

While she did not specify where she was planning to go, Nasreen said: "There are many countries ready to welcome me."

5 injured in explosion on train in Mumbai

Saturday, 15 March , 2008, 17:44

Mumbai: Five persons were injured in an accidental explosion on a suburban train at central Mumbai's Sion station on Saturday afternoon.

A gas bottle carried by one of the passengers exploded inside CST-bound local train standing on the platform number two of the Sion station at around 12:55 pm.

The nature of the gas in the bottle was not immediately known, Railway sources said.

The injured have been identified as Shahabuddin Ansari (20), Neelesh Patil (28), Santosh Shinde (32), Layak Nasimullah (28) and Paresh Mhatre (27).

There was a similar explosion at Harbour Line's Cotton Green station a few weeks' ago in which two persons were injured.

Man forgets to wear pants at drive-through

Friday, 14 March , 2008, 08:29

Yorktown: Careful with that coffee! Police say a man placing an order in a suburban New York doughnut shop's drive-through lane didn't have any pants on.

They say a Dunkin' Donuts worker saw John Greco's exposed genitals in the February 27stunt and then noted the make of his car and his license plate number.

Police say the 46-year-old Croton-on-Hudson resident was arrested last week and has been charged with misdemeanour public lewdness. He's due in court March 27.

Police released a statement on Thursday saying it was "unknown how Mr. Greco took his coffee that day."

Greco says by telephone from his home that he has no comment on the police report.

5 ways to make money in a bears market

Every time a bears market comes around people panic. They panic because the stocks they bought that made money when the markets were bullish are losing money when the markets are bearish. They don’t know that if you want to make money during a bears market you should trade bearishly. When the markets go down many market professionals make a killer by implementing bearish strategies. Today I will teach you 5 bearish strategies used to make money while the market is heading down. So get ready to ride the market crash all the way to the bottom with us.

1. Shorting stocks. Your broker has many long term stocks which they hold. They do not care what happens to them as long as they make a profit in the long run. Let’s say it is trading at $100 you can borrow their stock and sell it. This makes you an instant $130. Then if the stock drops to say $90 you can buy it back at $90 and give it back to your broker. In this example you made $40 per share.

2. Buying puts. When you buy a put for a stock you buy the right to sell a stock at a given strike price. That way if the stock’s price drops our puts price goes up. If we bought a put with a strike price of $130 on the same stock for $6 we could have made money while the stock goes down as well. The difference between the puts strike price and the stock is $40, so your put would be worth at least $40. Buying puts is a highly leveraged way of trading and will eventually expire worthless if not sold by its expiration date.

3. Selling calls. A call is the opposite of a put. When you buy a call you buy the right to buy a stock at a certain price. So, if you sold a $135 call on that stock for $4 you automatically take home $3. Now as long as the stock stays below $135 by the time the call expire you make $4. This means the stock can do nothing, even go up a little and you still make money. Just be careful this is one of the riskiest things you can do. If that stock goes up to $1000 you will have to buy it at $1000 and sell it at $135, which hurt. Your max loss is infinite.

4. Doing a spread. This is similar to the sell a call strategy, but it limits our risk. Here we would sell the $135 call for $4 and buy the $140 call for $3. Now you only made $1. However our risk is a lot lower. We still make money if the stock stays below $135 just like you would if you sold a call. Its advantage is if the stock goes up to $1000 you can buy the stock at $140 and sell it at $135 Your max loss is only $5(difference in spreads) - $1(you made) or $4.

5. Buying a leap. This a compromise between high leveraged puts and low leveraged shorting. Here you buy a put. Unlike our previous example however were it will expire in a few months a leap will expire in 1 or 2 year. For this extra time you will have to pay more than a regular put. If $130 put cost $6 a $100 leap might cost $18.

HSBC closes US sub-prime division

Banking giant HSBC is to close part of its US sub-prime mortgage business, cutting 750 jobs in the process.

HSBC says it will continue to offer some sub-prime loans

US subsidiary HSBC Finance is shutting its Decision One unit at a cost of $945m (£468m), as it becomes the latest firm hit by the crisis in the sector. Despite the move, HSBC said it would continue to offer some sub-prime mortgages through its US branches.

Back in February, HSBC was one of the first lenders to warn of rising default levels in the US sub-prime sector.

'Tough decisions'

The 750 job losses will be spread across Decision One's two offices in Phoenix, Arizona, and Charlotte, North Carolina.

"It's no longer sustainable and not the right place to allocate capital in the future," said HSBC chief executive Michael Geoghegan.

"We said we would make tough decisions and we have done exactly that."

In March HSBC stopped buying mortgage loans from other financial bodies to reduce its exposure to potential defaults.

Stock markets fall on US worries

European and Asian stock markets have fallen as investors continue to worry about a possible US recession.

The weak US economy is taking its toll in Japan

All the main markets fell, with London's benchmark FTSE 100 index down 0.8% at 5,835.2. Germany's Dax and France's Cac indexes dropped 1.3%.

Earlier, Tokyo's Nikkei index tumbled 4.5%, while India's Sensex index shed as much as 5%.
A raft of gloomy US economic data on Friday sent Wall Street's Dow Jones down 2.5% and prompted the falls.

Weak US consumer spending figures, gloomy comments from Federal Reserve chairman Ben Bernanke and disastrous results at insurer American International Group (AIG) helped to unnerve investors.

HSBC, the last of the UK's "big five" banks to report annual results, warned that its future looked uncertain, despite reporting that profit rose 10% to $24.2bn in 2007.

Banks and financial firms were the biggest fallers across Europe, with UK's HBOS falling more than 5%, and hedge fund group Man down 4%.

"The medium term is very difficult to predict as there are a lot of unanswered questions around banks' balance sheets," said Thierry Lacraz, strategist at Swiss bank Pictet.

Market moves

The UK's FTSE 100 index shed 88.9 points, or 1.5%, to 5,795.4.

Germany's Dax fell 1.4% to 6654.7, and France's Cac index was down 1.3% at 4,726.1.

Earlier, shares fell across Asia on concerns that flagging US consumer demand would hurt profits at the region's exporters, which are some of the region's biggest employers.

Shares were also hurt by a weakening dollar, amid fears that it will cut the value of exporters' foreign earnings.

The dollar fell to its lowest level against the yen for three years. In early trading in Tokyo it was as low as 102.90 yen, before recovering to 103.20 yen.

Japan's main Nikkei 225 index closed down 610.84 points at 12,992.18, its lowest level for six weeks, with carmakers Toyota and Honda bearing the brunt of the sell-off.

"What you have seen in Japan reflects in part the strength of the currency. When the currency goes up sharply in an exporting nation, that is pretty bad for the shares," Charlie Morris from HSBC Investments told the BBC.

Shares in car maker Honda fell 5.8% to 3,070 yen, and rival Toyota's shares were 3.3% down at 5,560 yen.

"Investor fears of a US recession have strengthened. There is even a growing view that the US economy has already entered into a recession," said Ryohei Muramatsu of Commerzbank in Tokyo.

In Hong Kong, the benchmark Hang Seng index ended the day down 3.1% at 23,584.97, while India's benchmark Sensex dropped 939 points to 16,639.54.

HSBC in $17bn credit crisis loss

HSBC, the UK's largest bank, has said it has made a $17.2bn (£8.7bn) loss after the decline in the US housing market hit the value of its loans.

But its annual profits still rose 10% to $24.2bn (£12.2bn), up from $22.08bn the year before.

The write-down is the largest of the big-five UK banks because HSBC has large operations in the US.

The bank said the global financial system had come under "extraordinary strain" in 2007.
"The outlook for the rest of 2008 is uncertain," said HSBC chairman Stephen Green.

"The economic slowdown and the credit outlook in the US may well get worse before they get better," he added.

Whilst the credit crisis, caused by problems in the US housing market, hit HSBC's US operations, the bank enjoyed strong growth in Asia, Middle-East and Latin America.

"For HSBC to achieve another new high in earnings despite these conditions... underscores the value of the strategic focus... to drive sustainable growth by concentrating on the fast growing markets of the world," Mr Green said.

HSBC said the banking group was fundamentally strong and it increased the dividend it pays to shareholders by 11% to 90 cents per share.

UK BANKS' WRITE-DOWNS
HSBC £8.7bn
RBS £2.5bn
Barclays £1.6bn
Lloyds TSB £280m
HBOS £227m
Source: Company reports

Its results were better than many in the City had predicted.

"HSBC is guiding us to underlying profit growth of 5% and that is better than we were expecting," analyst Leigh Goodwin at Fox-Pitt, Kelton told the BBC.

"There don't seem to be as many negatives in the US at this stage as we were expecting," he said.

US restructuring

HSBC has a branch network in the US, where business, it says, is "challenging". Profitability is declining because of the decline in the housing market and increasing unemployment.

The bank said it was actively trying to mitigate losses in the US, where defaults on mortgages and credit card payments are increasing.

It has restructured its US operation, closing about 400 branches, and has reduced the amount of credit it extends.

HSBC shares rose in early trading - one of the few companies to see its shares rise in a falling market. By 0945 GMT its shares were up 1p at 767p.

"HSBC has fared better than many of its competitors in shedding just 14% of its share price in the last year," said Richard Hunter from stockbrokers Hargreaves Lansdown.

"However, it continues to be held back by the spectre of potential further write-downs with, in particular, its exposure to the US market having unnerved many investors," he said.