New York: Gold prices extended gains to set a new record high level of over 1,278 dollar an ounce in overseas markets o Thursday as investors looked for a store of value amid uncertainty over the global economic growth.
The metal surged by 10.25 dollars to 1,278.30 dollars an ounce in London and New York as investors sought protection against turmoil in the global economy and financial markets.
The metal, which had been on a record setting journey this week, surged on rising demand among investors as a safe haven and hedge against inflation.
A weak trend in equity markets and dollar falling to five-week low against the euro, forced investors to park their funds in bullion.
Bullion has gained as the MSCI World equities Index fell 0.9 per cent this year. The silver prices also remained on bull run and reached a level last seen on March 2008.
Likewise, silver prices added 0.9 percent to 20.76 dollars an ounce, the highest price since March 2008
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Alcatel Lucent sees India, China 4G coming soon
Telecoms equipment maker Alcatel Lucent said some telecoms carriers
in China and India could put out bids for building of 4G trial
networks as early as year-end, as they rush to upgrade existing
networks or get into the wireless business.
China Mobile, the world's largest carrier by subscribers,
has been letting some of the world's top equipment sellers,
including the French-US firm, show off their 4G capabilities at
the Shanghai Expo that began in May and runs through the end of October.
"The calendar is we hope by year-end the trial networks will be announced,
and partners selected and trials will start," Rajeev Singh-Morales,
Asia Pacific president of Alcatel Lucent, told Reuters in an interview
at the World Economic Forum on Monday.
"It's fair to say they've been in discussions with us.
Everyone knows this trial is coming," he said.
At least two carriers in India, which only recently awarded licenses for 4G,
also known as LTE, were also moving aggressively in the 4G space, he added.
One of those, Mukesh Ambani's Reliance Industries, is eager to get into the
industry to compete with established players, including Reliance Communications,
headed by his brother, Anil.
"Initially, (4G) trials could start in India much faster, possibly by year end,"
Singh-Morales said.
He added a number of carriers lookin at 4G are seriously considering
TD-LTE, one of several variants of 4G being developed and promoted by China Mobile.
In particular, he said, companies that operate networks based on a high-speed
wireless technology called WiMax would be most suitable for the Chinese
homegrown standard, which China is actively promoting as it tries to
gain a place alongside more widely accepted standards developed in the
United States and Europe."(The Indian carriers) are certainly actively considering
TD-LTE," he said. "Anyone that has deployed WiMax and wants to go
to LTE would consider that ... a number of customers in Japan, Indonesia and even the U.S."
Separately, Singh-Morales said India was currently in public consultation with
telecoms equipment makers over draft new rules designed to ease Delhi's concerns
over network security. The equipment makers worry that the rules as first
introduced would be difficult for them to implement, and are hoping to reach
a middle ground with the government.
"There's a two-month consultation period, and then they will issue revised
regulations," he said. "I'm confident we'll find a reasonable compromise."
in China and India could put out bids for building of 4G trial
networks as early as year-end, as they rush to upgrade existing
networks or get into the wireless business.
China Mobile, the world's largest carrier by subscribers,
has been letting some of the world's top equipment sellers,
including the French-US firm, show off their 4G capabilities at
the Shanghai Expo that began in May and runs through the end of October.
 |
and partners selected and trials will start," Rajeev Singh-Morales,
Asia Pacific president of Alcatel Lucent, told Reuters in an interview
at the World Economic Forum on Monday.
"It's fair to say they've been in discussions with us.
Everyone knows this trial is coming," he said.
At least two carriers in India, which only recently awarded licenses for 4G,
also known as LTE, were also moving aggressively in the 4G space, he added.
One of those, Mukesh Ambani's Reliance Industries, is eager to get into the
industry to compete with established players, including Reliance Communications,
headed by his brother, Anil.
"Initially, (4G) trials could start in India much faster, possibly by year end,"
Singh-Morales said.
He added a number of carriers lookin at 4G are seriously considering
TD-LTE, one of several variants of 4G being developed and promoted by China Mobile.
In particular, he said, companies that operate networks based on a high-speed
wireless technology called WiMax would be most suitable for the Chinese
homegrown standard, which China is actively promoting as it tries to
gain a place alongside more widely accepted standards developed in the
United States and Europe."(The Indian carriers) are certainly actively considering
TD-LTE," he said. "Anyone that has deployed WiMax and wants to go
to LTE would consider that ... a number of customers in Japan, Indonesia and even the U.S."
Separately, Singh-Morales said India was currently in public consultation with
telecoms equipment makers over draft new rules designed to ease Delhi's concerns
over network security. The equipment makers worry that the rules as first
introduced would be difficult for them to implement, and are hoping to reach
a middle ground with the government.
"There's a two-month consultation period, and then they will issue revised
regulations," he said. "I'm confident we'll find a reasonable compromise."
GSKCH to invest over Rs 300 cr on 'Horlicks' relaunch
New Delhi: GlaxoSmithKline Consumer Healthcare today said it is looking at investing over Rs 300 crore on a major brand building exercise to position 'Horlicks' as an umbrella brand of the company.
As part of the exercise, the FMCG firm is relaunching 'Horlicks' in a new look and promote the brand across media particularly focused on digital and mobile marketing space.
Besides, the company, which is aiming to achieve a sales of Rs 300 crore within the next two years from its foods business, is looking at foraying into other categories like breakfast and mid-meals.
"There is a fundamental shift towards synergising all our marketing activities on 'Horlicks' and bring under one platform. The idea is to position it as a range of health foods and beverage brand rather than just a health drinks brand," GSK Consumers Healthcare Executive Vice President (Marketing) Subhajit Sen told reporter here.
Under Horlicks, the company currently sells various health drinks like Lite Horlicks, Women's Horlicks, Junior Horlicks apart from biscuits and cereal bars. It has also recently entered into the noodles market through 'Foodles'.
"We will be spending around Rs one crore every day on various advertising and promotional activities. This is an increased adspend by around 15-20 percent over last year," Sen said.
The company had last time relaunched Horlicks in 2005 and since then achieved a volume sales of 12 percent. Sen said the company hopes to maintain similar growth rate of 12-14 percent on the back of the relaunch.
"We will be engaging in a lot of above the line and below the line activities. We will go for sponsorships deals as a single brand rather than in a segmented way that we have been doing," Sen said.
Besides, the company said it is also planning to expand the product portfolio of the estimated Rs 1700-crore Horlicks brand, particularly into the foods segment.
"Foods segment is a major focused area for us. At present around 10-15 percent comes from food division. In the next 18-24 months, we expect a sales of Rs 300 crore from our food business," he said.
At present, GSKCH sells biscuits, noodles and cereal bars under the food category and accounts up to Rs 200 crore to the company's overall sales.
"We are focusing on expanding the brand into non-lunch and non-dinner like for breakfast, lunch box for kids, travelers and other mid-meals. We are evaluating every category," he said.
While he did not specify the time frame that the company is looking at launching the products, he said some of the new products will be introduced this year.
As part of the exercise, the FMCG firm is relaunching 'Horlicks' in a new look and promote the brand across media particularly focused on digital and mobile marketing space.
Besides, the company, which is aiming to achieve a sales of Rs 300 crore within the next two years from its foods business, is looking at foraying into other categories like breakfast and mid-meals.
"There is a fundamental shift towards synergising all our marketing activities on 'Horlicks' and bring under one platform. The idea is to position it as a range of health foods and beverage brand rather than just a health drinks brand," GSK Consumers Healthcare Executive Vice President (Marketing) Subhajit Sen told reporter here.
Under Horlicks, the company currently sells various health drinks like Lite Horlicks, Women's Horlicks, Junior Horlicks apart from biscuits and cereal bars. It has also recently entered into the noodles market through 'Foodles'.
"We will be spending around Rs one crore every day on various advertising and promotional activities. This is an increased adspend by around 15-20 percent over last year," Sen said.
The company had last time relaunched Horlicks in 2005 and since then achieved a volume sales of 12 percent. Sen said the company hopes to maintain similar growth rate of 12-14 percent on the back of the relaunch.
"We will be engaging in a lot of above the line and below the line activities. We will go for sponsorships deals as a single brand rather than in a segmented way that we have been doing," Sen said.
Besides, the company said it is also planning to expand the product portfolio of the estimated Rs 1700-crore Horlicks brand, particularly into the foods segment.
"Foods segment is a major focused area for us. At present around 10-15 percent comes from food division. In the next 18-24 months, we expect a sales of Rs 300 crore from our food business," he said.
At present, GSKCH sells biscuits, noodles and cereal bars under the food category and accounts up to Rs 200 crore to the company's overall sales.
"We are focusing on expanding the brand into non-lunch and non-dinner like for breakfast, lunch box for kids, travelers and other mid-meals. We are evaluating every category," he said.
While he did not specify the time frame that the company is looking at launching the products, he said some of the new products will be introduced this year.
Sensex zooms 409 pts; regains 19,000 level after 32 months
Mumbai: The BSE benchmark Sensex Monday zoomed by more than 408 points to cross the 19,000-level for the first time in 32 months on aggressive buying across banking, energy and realty sectors, sparked by robust factory output in July.
Extending its gains for the fifth successive session, the 30-share benchmark of the Bombay Stock Exchange surged by 408.67 points, or 2.17 percent, to 19,208.33 -- its best close since January 17, 2008, when the Sensex closed at 19,700.
Stretching last week's solid gains, the National Stock Exchange's wide-based 50-share Nifty index ended 2.13 percent higher at 5,760.
Analysts said that markets will scale new heights in the coming days on sustained inflows of overseas funds.
"The Indian equities would continue to be sweet spot and continue to gradually move upwards," Angel Broking CMD Dinesh Thakkar said.
Monday's rally was led by SBI, Reliance Industries, ICICI Bank, HDFC, Hindalco and R-Infra, which attracted hectic buying. Led by banking, oil & gas, realty and metal stocks, all the sectoral indices of the BSE ended with gains.
"Strong index of industrial production (IIP) numbers fired the Sensex, which inched up to cross the 19,000-mark, its highest (close) in almost last three years," Thakkar said.
Industrial growth accelerated to 13.8 percent in July from 7.2 percent in the corresponding month last year on the back of a 63 percent jump in capital goods production. Among the main industry segments, manufacturing activity expanded by 15 percent from 7.4 percent a year ago.
Reliance Industries Ltd, which holds the maximum weight in the Sensex, bounced back smartly and ended with a net gain of 3.58 percent at Rs 992.20. In the previous session, the scrip had ended 0.22 percent lower.
State Bank of India stole the show and was the top gainer in the Sensex pack. The scrip ended 5.5 percent higher. Other financial stocks were also in high demand.
HDFC zoomed 5.32 percent, ICICI Bank 4.43 percent and HDFC Bank 1.86 percent.
"Banks led from the front on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL vice-president (research) Amar Ambani said.
DLF climbed 3.42 percent, Hindalco 4.5 per cent, R-Infra 4.47 percent and Jaiprakash Associates 2.35 percent.
Other major gainers of the day included Infosys, which rose by 1.5 per cent, Tata Steel (up 1.34 percent) and L&T (up 1.12 percent).
Fuelled by the company's plans to make a joint bid with Petrovietnam for British Petroleum's (BP) Vietnam assets, ONGC ended 1.5 percent higher.
In the BSE-30 pack, 26 stocks ended with gains, while 4 scrips lagged behind and settled in the red.
Wipro led the losers pack and ended 1.27 percent lower, while RCom was down by 0.43 percent, Hero Honda by 0.28 percent and Bharti Airtel by 0.17 percent.
Extending its gains for the fifth successive session, the 30-share benchmark of the Bombay Stock Exchange surged by 408.67 points, or 2.17 percent, to 19,208.33 -- its best close since January 17, 2008, when the Sensex closed at 19,700.
Stretching last week's solid gains, the National Stock Exchange's wide-based 50-share Nifty index ended 2.13 percent higher at 5,760.
Analysts said that markets will scale new heights in the coming days on sustained inflows of overseas funds.
"The Indian equities would continue to be sweet spot and continue to gradually move upwards," Angel Broking CMD Dinesh Thakkar said.
Monday's rally was led by SBI, Reliance Industries, ICICI Bank, HDFC, Hindalco and R-Infra, which attracted hectic buying. Led by banking, oil & gas, realty and metal stocks, all the sectoral indices of the BSE ended with gains.
"Strong index of industrial production (IIP) numbers fired the Sensex, which inched up to cross the 19,000-mark, its highest (close) in almost last three years," Thakkar said.
Industrial growth accelerated to 13.8 percent in July from 7.2 percent in the corresponding month last year on the back of a 63 percent jump in capital goods production. Among the main industry segments, manufacturing activity expanded by 15 percent from 7.4 percent a year ago.
Reliance Industries Ltd, which holds the maximum weight in the Sensex, bounced back smartly and ended with a net gain of 3.58 percent at Rs 992.20. In the previous session, the scrip had ended 0.22 percent lower.
State Bank of India stole the show and was the top gainer in the Sensex pack. The scrip ended 5.5 percent higher. Other financial stocks were also in high demand.
HDFC zoomed 5.32 percent, ICICI Bank 4.43 percent and HDFC Bank 1.86 percent.
"Banks led from the front on optimism that lending will pick up in a fast-growing Indian economy and that they are well capitalised," IIFL vice-president (research) Amar Ambani said.
DLF climbed 3.42 percent, Hindalco 4.5 per cent, R-Infra 4.47 percent and Jaiprakash Associates 2.35 percent.
Other major gainers of the day included Infosys, which rose by 1.5 per cent, Tata Steel (up 1.34 percent) and L&T (up 1.12 percent).
Fuelled by the company's plans to make a joint bid with Petrovietnam for British Petroleum's (BP) Vietnam assets, ONGC ended 1.5 percent higher.
In the BSE-30 pack, 26 stocks ended with gains, while 4 scrips lagged behind and settled in the red.
Wipro led the losers pack and ended 1.27 percent lower, while RCom was down by 0.43 percent, Hero Honda by 0.28 percent and Bharti Airtel by 0.17 percent.
What EIH stake buy means for Reliance group
Reliance Industries Ltd (RIL) announced on Monday that it has acquired a 14.12% stake in EIH Ltd, through its wholly owned subsidiary Reliance Industries Investment and Holding Pvt. Ltd, from Oberoi Hotels Pvt. Ltd and certain other promoters of EIH. The deal is valued at Rs1,021 crore, valuing the hotel company at Rs7,230.87 crore.
With the acquisition valuing each EIH share at Rs184, substantially higher than its closing price of Rs135.20 on Friday, it’s no wonder that the scrip rose 11.5% on Monday in an otherwise tepid market. With the stock closing at around Rs150, it’s still some way off the price at which the deal has been done.
The Reliance management has said that it will support the EIH management. But if the deal is purely for investment, the question is: why should the Reliance group pay a premium for a company without getting control? It’s not as if the business is greatly undervalued—in a research note after EIH’s rather disappointing June quarter results, analysts from Edelweiss Securities Ltd maintained their target price of Rs120 a share.
This is not the first time that the EIH management has tried to find a white knight. With ITC holding 14.98% in the company and breathing down its neck, one can’t blame the EIH management. Earlier, it had tried to bring in Analjit Singh, but that deal fell through, reportedly on differences in valuation. This time, there was an additional reason for worry—when the new takeover code comes into effect, the threshold for an open offer would rise to 25%, and ITC could have taken the opportunity to increase its stake.
The EIH stock will now be in play on hopes that ITC will rise to the occasion and make an open offer. But with the kind of deep pockets that Reliance has, that is unlikely. Another trigger would be a possible increase in stake by the Reliance group. But even if we were to take the Reliance statement of the deal being merely for investment purposes at face value, the fact of the matter is that EIH’s promoters now have the cash to expand the business. After this deal, the EIH promoters’ stake will drop to 32.3%. But, if the EIH management acquires another 5%, as it can do through the creeping acquisition route, then collectively Reliance and EIH would own over 50%, a decisive majority. RIL’s acquisition of a stake in EIH at a substantial premium is a vote of confidence in the company and will impact the stock accordingly.
What about ITC’s shareholders? If ITC keeps its stake in the company, its shareholders will benefit from the fact that the stake is worth much more now and ITC could sell it at a later date. So, while ITC may have lost an opportunity to make a significant acquisition, it may on the whole be marginally positive.
The big question, though, is what it means to the Reliance group.
RIL’s entry into the hotel business is a completely unrelated diversification, although Rs1,021 crore is loose change for the company. It’s getting into telecom and has made known its intentions to get into power. But while the power business may not be difficult, given RIL’s project management skills, the hotels business is completely different. It would be a good thing, therefore, for RIL to allow the Oberois to manage the business, rather than take it over.
Clearly, RIL has an enviable problem of not knowing what to do with its excess cash. Handing it over to its shareholders may be a good idea, but it’s unlikely to happen.
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