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Indian stocks plunged, following a region-wide trend, as investors lightened their positions anticipating non-farm payroll numbers from the U.S. Increased activity would indicate an early increase in interest rates by the U.S Federal Reserve. The BSE Sensex index plunged 547 points to 25,217 around mid-day after falling as much as 608 points. Commodity stocks Tata Steel, Vedanta, and Hindalco led the decline. Other top losers included Axis Bank, Dr Reddy’s Tata Motors, ICICI Bank and State Bank of India. The Power index fell 3.45 per cent, Bankex fell 2.83 per cent, Auto 2.4 per cent, consumer durable 2.7 per cent, and metals index 2.4 per cent, Information technology 2.1 per cent. And capital goods 2.3 per cent. The mid cap index declined 2.3 per cent. Sensex has steadily declined over the past three weeks, declining almost 3,000 points from a level of 28067 on August 14.
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Lloyd’s City Risk Index 2015-2025 presents the first ever analysis of economic output at risk (GDP at risk) in 301 major cities over a ten-year period While natural catastrophes such as extreme weather, pandemics and plant epidemics are going to put $98.1 billion of GDP at risk in ten Indian cities, manmade risks will account another $81.7 billion loss in the next decade, says a new study - the Lloyd’s City Risk Index. In total India’s ten largest centres of economic growth have $179.8 billion of GDP at risk from a series of threats over the next decade, according to new research for Lloyd’s, the specialist insurance market. The Lloyd’s City Risk Index, presents the first ever analysis of economic output at risk (GDP at risk) in 301 major cities from 18 manmade and natural threats over a ten-year period. Across the ten cities combined, the largest economic exposure is to pandemic risk, which could put $39.65 billion of GDP at risk, followed by flood at $33.84 billion, market crash at $21.13 billion, oil price spike at $20.81 billion and terrorism at $16.07 billion. The immense density of populations in urban areas, large numbers of people commuting and access to health services are significant contributing factors in the vulnerability to a pandemic. In India, the Index found the cities of Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kanpur, Kolkata, Mumbai, Pune and Surat together will generate an average annual GDP of $1.4 trillion in the coming decade. However, 12.6 per cent of this economic growth is at risk from the combination of 18 manmade and natural threats. Based on original research by the Cambridge Centre for Risk Studies at the University of Cambridge Judge Business School, the Index finds that a total of $4.6 trillion of projected GDP is at risk from manmade and natural disasters in these cities around the world. Lloyd’s has produced this Index to help increase the understanding of, and shape the world’s response to, the shifting risk landscape. The Index, which will be updated every two years, is aimed at stimulating further discussions between insurers, governments and businesses on the need to improve resilience mitigate risk and protect infrastructure. Mumbai has the largest total GDP at risk with a $47.38 billion risk exposure. Almost one quarter of the city’s potential losses are related to pandemic risk, followed by terrorism at 16.77 per cent, market crash at 12.94 per cent and flood at 12.89 per cent. Globally, Mumbai has the largest GDP exposure to terrorism in the Index at almost $8bn and the second highest exposure to power outage with $1.92 billion of GDP at risk. Globally, the Index identifies three important emerging trends in the global risk landscape:Emerging economies will shoulder two-thirds of risk related financial losses as a result of their accelerating economic growth, with their cities often highly exposed to single natural catastrophes.Manmade risks such as market crash, power outages and nuclear accidents are becoming increasingly significant, associated with almost half the total GDP at risk. A market crash is the greatest economic vulnerability – representing nearly a quarter of all cities’ potential losses. New or emerging risks, such as cyber-attack, are also increasingly significant. Together, they account for more than a third of the total GDP at risk with just four – cyber-attack, human pandemic, plant epidemic and solar storm – representing more than a fifth of the total GDP at risk. The findings show the need for governments and businesses to work together to build more resilient infrastructure and institutions. How quickly a city recovers after a catastrophe is a key component of the total risk, and the impact of events is mitigated by rapid access to capital to help restore the economy. Vincent Vandendael, Director of Global Markets, Lloyd’s said: “Lloyd’s City Risk Index highlights the economic exposure of 301 major cities across the world. Governments and businesses, together with insurers, must work together to ensure that this exposure – and the potential for losses – is reduced. Insurers, governments, businesses and communities need to think about how they can improve the resilience of infrastructure and institutions. Insurance is part of the solution. Insurers must continue to innovate; ensure their products are relevant in this rapidly changing risk landscape, offer customers the protection they need and, as a result, contribute to a more resilient international community.”
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Bangalore-based lingerie e-tailer Zivame.com has raised $40 million from a clutch of investors including Zodius Technology Fund and Malaysian sovereign wealth fund Khazanah. This is the third round of investment for the e-commerce firm that is run by Actoserba Active Wholesale Pvt Ltd. It’s existing investors Unilazer, IDG Ventures and Kalaari Capital also participated in the current round of funding. The capital raised will be used for expansion purposes in categories like marketing and merchandise facilities. Besides, it will also help increase consumer touch points and strengthen technology infrastructure. Zivame was founded by Richa Kar in the latter part of 2011. It currently showcases and sells over 5,000 lingerie styles online. Women can browse through styles and the orders placed care delivered at doorsetep. The firm was recently in news for launching its mobile app. In fact, it currently has between 10,000-50,000 downloads on Android and as per reports, almost 60 per cent of its traffic comes from mobile today. Apart from lingerie, the company also sells loungewear, swimwear and nightwear. Zivame’s private labels include Penny and Coucou. Other investments in the lingerie segment includes IvyCap Ventures’ investment in Delhi-based Purple Panda Fashions and Orios Venture Partners’s funding in online lingerie shop PrettySecrets.
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Investors in India expect the government push on infrastructure to be key to growth and also provide impetus to private investment. Corporate profitability and capital expenditure is expected to pick up only in FY17, says rating agency India Ratings and Research (Ind-Ra). According to the survey conducted by Ind-Ra, 69 per cent respondents are of the view that Reserve Bank of India (RBI) should cut the policy rate to stimulate investments in the economy. The RBI will review its monetary policy on September 29, but traders are betting on a rate cut before the scheduled policy. On Thursday (03 September), real estate stocks saw huge buying interest, with the sub-index of realty stocks rising nearly 5 per cent on the Bombay Stock Exchange. DLF, the country's biggest realty firm, jumped as much as 10 per cent, while HDIL traded 8 per cent higher. Unitech and Jaiprakash Associates also saw buying interest. Traders attributed the rebound in realty stocks to rising hopes of a rate cut. Indian growth slowed by more than expected in the quarter to June, a setback for Prime Minister Narendra Modi that will prompt more urgent calls from his aides for interest rate cuts. The latest data showed gross domestic product (GDP) expanded at an annual 7 per cent rate in the April-June quarter, matching China, but slower than provisional growth of 7.5 per cent in the previous quarter. The data will also strengthen the calls from Modi's government for a rate cut. According to media reports, some bureaucrats are already arguing for an immediate cut of as much as 50 basis points in the RBI's main 7.25 per cent policy rate. Many in the government are worried that growth could slip below the official target of 8 to 8.5 per cent for the year to March, and see the central bank's caution as worsening the situation. "Ind-Ra expects the rupee decline is likely to be contained at 67/US dollar, with 52 per cent investors expecting the rupee to range between 64/$-67/$ in the next one year," the agency said in a statement. India is in a much better place compared with FY13 and likely to achieve its potential growth rate. However, the downside risks to growth are lack of sufficient investments into infrastructure and weak global growth. Nearly 52 per cent of investors expect infra and 32 per cent see global factors as a downside risk to growth, the survey said. Ind-Ra's Fixed-Income Investor Survey shows a large chunk of respondents believe that corporate performance will not improve in this fiscal, but were optimistic of a recovery in profitability and capex in FY17. However, they expect an improvement in credit conditions over the next 12 months. Ind-Ra said the key drivers of aggregate corporate profitability suggests capital spending, according to FY16 budget estimates, is likely to boost aggregate corporate earnings with a lag of three-to-six months post the actual spending of the amount. However, other key drivers of corporate profitability namely investment, household consumption and corporate dividend/spending are unlikely to boost corporate earnings. The recent economic developments in China are concerns for the Indian economy. China being the second-largest economy in the world, an economic slowdown in the country will have larger implications for global and Indian economies. Although Indian exports could be affected due to slower global growth, lower commodity prices can provide some support. Indian exporters can see a window of opportunity to cater to global demand; however, it will not be easy to match the size and scale of China as a supplier to global demand, the survey says. "The withdrawal of the Federal Reserve's accommodative monetary policy will not have a significant impact on India's macroeconomic stability," the report said.
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Singapore-based sovereign wealth fund GIC has entered into a joint venture (JV) with DLF Home Developers Ltd (DHDL), a subsidiary of India’s biggest builder DLF Ltd (DLF), the company said in a statement. GIC has invested Rs 1,990 crore ($300 million) across two projects of the real estate firm which are located in Central Delhi. The projects are based in Moti Nagar where DLF had acquired two separate parcels of land in 2007 from DCM Shriram Consolidated and Lohia Group. Both DLF and GIC will set up two separate JVs for the two plots of land where the investor will put in the capital in project development arms directly. “We hope that this investment is a beginning of a new relationship with GIC at the project level,” said Saurabh Chawla, senior executive director – finance, DLF Ltd. Going forward, such project level investments shall lead to unlocking of embedded value in many of DLF’s development projects, he added. Loh Wai Keong, managing director and co-head Asia, GIC Real Estate, said, “GIC is confident in India’s long-term growth potential and we look forward to partnering DLF, a leading real estate developer in India, to tap into the attractive opportunities of India’s real estate sector.” GIC has been upbeat about India and has invested in the country’s real estate projects in the past as well. It has entered into a Rs 1,500-crore JV with Brigade Enterprises to develop properties in southern parts of the country in 2014. Other pension and sovereign funds which have invested in the real estate sector include CPPIB Credit Investments’ tie up with Piramal Enterprises. DLF, the country’s largest builder, reported a five per cent decline in its consolidated net profit to Rs 121.55 crore for the quarter ended June. In fact, as of June 30, 2015, it had total net debt of Rs 21,598 crore across its development and rental arm.
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The one-day strike called by trade unions against what they consider to be anti-labour policies of the government affected daily life across the country. Banking operations were hit the worst — bank counters, especially at state-run banks, wore a desolate look; and inter-branch cash remittances were in disarray as more than 10 lakh bank employees joined the strike. Clearing house operations as expected ground to a standstill and nearly Rs 10 lakh crore of transactions were affected. “We hope the government sees reason and changes their policies”, says Vishwas Utagi, vice-president of the All India Bank Employees Association. Utagi’s peeve is that while the government is keen to press ahead with anti-labour policies, nothing’s been done to stem the loot at state-run banks; and points to defaulters and bad-loans. As on end-March 2015, there were 7,035 cases of wilful defaulters that involved bad loans of Rs 58,792 crores. At the systemic level, bad loans (at the end of the said period) had risen to Rs 2,97,000 crores plus another Rs 4,03,004 crores of bad loans of 530 borrowers were shown as rescheduled and restructured loans under the Corporate Debt Restructuring scheme. Bad loans stuck in the top 30 borrowal accounts of state-run banks was Rs 1,21,162 crore. Says Utagi: “Unless stringent recovery loans are implemented to recover this loan the health of state-run banks will not improve. We want wilful loan defaulters to be punished”. Adds S Nagarajan Nagarajan, general secretary of the All India Bank Officer’s Association: “Let me make it clear that we are not going to back off on what the government intends to do with state-run banks”. That’s a reference to the two-day ‘Gyan Sangam’ held on 2nd and 3rd January in Pune this year attended by Prime Minister Narendra Modi, Finance Minister Arun Jaitley, and RBI governor Raghuram Rajan. Jaitely mentioned the intent to bring down the government’s stake in state-run banks to 52 per cent over the next few years; it will fetch Rs 90,000 crore (in the 24 state-run banks with a headroom). “The idea is to finally privatise state-run banks. Even the children of the reform process, private bank — their employees that is — agree that things are getting out of hand. That’s why on 17th August, we launched the Private Sector Bank Officer' Forum at Bengaluru”, says Nagarajan. An indefinite strike call is also on the cards to coincide with the winter session of Parliament, but for now the strategy is to reach out to all members of Parliament, and sensitise them that their constituencies will be hit badly. It is a move that the government can ill afford to ignore given the Opposition’s drum-beat over its “suited-booted” nature and pre-occupations. Meanwhile, the Associated Chambers of Commerce and Industry of India (Assocham) has estimated a loss of Rs 25,000 crore to the economy due to the all-India strike. "Financial impact of the disruption of essential services might lead to an estimated loss of over Rs 25,000 crore to the economy thereby taking into account the numerous direct and indirect losses," Assocham secretary general DS. Rawat told IANS. The strike impacted normal life in various parts of the country with coal production, banking operations and transport services being hit the most, while violent clashes erupted in West Bengal resulting in arrest of over 200 persons. Union leaders claimed that over 15 crore organised sector workers went on the strike, call for which was given by 10 central trade unions against changes in labour laws and PSU privatisation along with their other demands.The BJP-backed BMS and NFITU however stayed away from the strike. The impact was most visible in West Bengal, Tripura, Kerala, Karnataka, Puducherry and Odisha among other places, while partial impact was seen in Delhi, Punjab, Haryana, Tamil Nadu, Goa, Gujarat, Bihar and Jharkhand. Normal life was affected in Assam, Andhra Pradesh, Telangana and Rajasthan as well, but there was not much impact in the country's financial capital Mumbai except for the banking operations. State-run Coal India saw nearly half of its 1.7 million tonne daily production getting hit by the strike, as a majority of around four lakh coal workers across the country joined the strike. Union leaders, however, said the impact could be 90 per cent at Coal India, which accounts for 80 per cent of the country's total coal production. Power generation and other utilities were largely normal. Coal and Power Minister Piyush Goyal said the strike would not have much impact as there was sufficient coal stock to meet any eventualities, while there was no problem at all with the electricity generation. Oil Minister Dharmendra Pradhan, who was part of the group of ministers that held talks with the trade unions, said that the strike "by and large has not had any major impact".In West Bengal, nearly 200 persons were arrested from different parts after clashes occurred at some places between Left and Trinamool workers including in Murshidabad district. Train services of South Eastern Railway and Eastern Railway were partially affected, but Metro Rail services in Kolkata remained normal. In the National Capital, commuters faced problems as a large number of autos and taxis remained off the roads. In Kerala, public and private bus services, taxis and autorickshaws were off the roads. Only few private cars and two wheelers were seen on the roads. Shops, hotels and even small tea stalls were closed in the state. The strike affected normal life in Bengaluru and other parts of Karnataka even as the state government warned against forceful imposition of the strike. Government transport workers joined the strike objecting to the proposed motor bill as buses and autorickshaws kept off the roads causing inconvenience to office-goers and those travelling to far-off places. The strike affecting normal life has been reported from several parts of the state including Dharwad, Raichur, Davangere, Bellary and Hassan. Transport services in Mumbai remained unaffected as suburban train services, autorickshaws and BEST city buses were operating normally despite thestrike called by central trade unions. In Bihar, workers of trade unions belonging to the Congress and the Left parties blocked national and state highways and at some places stopped passenger and long-distance trains. (PTI also contributed to this story)
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Epicor Software Corporation, a leader in business software solutions for manufacturing, distribution, retail and services organizations, announced that Joe Cowan, president and CEO of Epicor, has been selected as a Gold Stevie Award recipient in the category of Executive of the Year in the 2015 International Business Awards.Cowan joined Epicor in 2013 and introduced a strategy centered around transforming the customer experience by streamlining business processes with a targeted focus on delivering the highest quality products, services and support to drive customer satisfaction. By cultivating a ‘customer-first’ culture, Cowan has lead the more than 3,900 Epicor employees in various initiatives that enable the company to capitalize on industry experience, knowledge, skills and technology innovation to deliver best-in-class solutions that support customers in the achievement of profitable growth.“The International Business Awards grow in stature every year, and with that, the number and quality of entries increases,” said Michael Gallagher, president and founder of the Stevie Awards. “This year’s judges were treated to more than 3,700 stories of success from around the world. We congratulate the Gold, Silver and Bronze Stevie winners whom we’ll celebrate in Toronto in October.”The International Business Awards are the world’s premier business awards programme. All individuals and organizations worldwide -- public and private, for-profit and non-profit, large and small -- are eligible to submit nominations. The 2015 International Business Awards received entries from more than 60 nations and territories. More than 3,700 nominations from organizations of all sizes and in virtually every industry were submitted for consideration in a wide range of categories, including Company of the Year, Best New Product or Service of the Year, and Executive of the Year, among others.“I am honored to receive this recognition from the International Business Awards as Executive of the Year,” said Cowan. “This is an award I share with our employees,whose commitment to delivering innovative software and services, with an absolute focus on the customer experience every day, empower our customers to grow business and achieve success.”
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German luxury car manufacturer Audi on Wednesday (2 September) introduced the new Audi A3 40 TFSI Premium sedan with enhanced features at price of Rs 25,50,000.The car is equipped with new and exciting features spread across interiors, exteriors and the infotainment systems. Joe King, Head, Audi India, said, “A petrol customer is a unique customer who wants power and also efficiency at the same time. With the Audi A3 we are effectively offering the best of both. The Audi A3 40 TFSI offers 180 hp power and fuel efficiency of 16.6 kmpl. The Audi A3 Cabriolet - India’s largest selling Cabriolet is a petrol car. We are surprised with the demand for the A3 Cabriolet (which is available only in petrol). Having already exhausted the yearly allocation we have requested for higher allocation and expect the new Audi A3 40 TFSI Premium to follow this trend".The car's new features in exterior including the 40.64 cm cast aluminum alloy with 15-Spoke ‘’Y’’ design wheels. The car gets electrically adjustable exterior mirrors, in addition to the Halogen lamps and Light/ Rain Sensor. The High Gloss Package is also available on the model now.The new features in interiors add to the style quotient with multifunctional leather steering wheel in four-spoke design, new ambient transparent inlays in 3D look, floor mats at front and rear and Regatta Leatherette - Fabric upholstery. The new Audi A3 40 TFSI Premium also gets lighting package plus, electronically adjustable driver seat and a chrome package.The customers can choose between the option of Black, Chestnut Brown and Pashmina Beige for interior upholstery in the new Audi A3 40 TFSI Premium.(BW Online Bureau)
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Banking operations across the country came to a standstill on Wednesday (2 September) as trade unions went on a strike over what they claim are the “anti-labour policies” of the government. Operations in state-run banks were the worst hit, and this had a ripple effect in private and foreign banks as well as clearing house operations. Vishwas Utagi, vice-president of the All India Bank Employees Association said that the during the recent 46th Session of the Indian Labour Conference held in Delhi, Prime Minister Narendra Modi attended the meeting but did not offer any concrete solution to the important demands raised by the trade unions. “The Government is totally non-committal on the charter of demands raised by the trade unions. On the other hand, it is clear that the Government would like to proceed on its agenda to amend the labour laws without any proper consultation with the trade unions. Hence it is necessary and imperative to join the general trade union movement and register our protest against these anti-worker policies of the Government”. What should be a cause of worry for the government is that the feeling has now spread to private banks as well. On 17th August, the All India Bank Officers Association (AIBOA),the second largest union of bank officers' launched the Private Sector Bank Officer' Forum (PSBOF) at Bengaluru. “The growing concern of the existing workforce is hovering round host of issues like contractualisation of permanent jobs, compulsory conversion of Scale III officers under C2C (cost to company) concept, outsourcing of the banking functions, discrimination in performance-linked bonus, and non-recruitment of staff against permanent vacancies”, says S Nagarajan, general secretary-AIBOA. Unions contend that in the banking industry, there are continuous attempts to push through the reforms agenda aimed at privatisation of banks, consolidation and merger of banks. “More and more private capital and FDI are being encouraged. Private sector companies are being allowed license to start banking business. Regional rural banks are sought to be privatised and the Bill has been passed by the Government in the Parliament despite protests by our Unions. Primary Agricultural Co-operative Societies (PACs) are under threat of winding up. Urban Co-operative Banks are under threat of delicensing, says Utagi. The recent move by the Centre to foster private sector executives as chief executive of state-run banks is another sore point. Worse, the Dhan Jan Yojana which seeks to improve financial inclusion is now as a “harassment” on bank staffers. “Schemes are being imposed on banks without proper infrastructure and manpower resulting harassment and problems faced by the bank staff”, points out Utagi. What’s the strike trigger? · Amending all labour laws to empower the employers with unfettered rights to “hire and fire”· Stripping the workers and trade unions of their rights· Unlimited FDI in strategic sectors like Railways, Defence and Financial Sector.· Sweeping changes in the existing Land Acquisition Act,· Farmers’ right to land and agri-workers’ right to livelihood are being sought to be drastically curbed and curtailed.· EPF and ESI schemes are proposed to be made optional· Attempts to dismantle the basic social security structures available to the organized sector.· The Govt. has not taken any step to curb price rise of essential commodities· Failure to generate adequate employment· Weakening public distribution system and trying to scuttle it through Direct Benefit Transfer resulting further squeeze on the common people.· Various State governments have brought about drastic anti-workers changes in basic labour laws viz. Industrial Disputes Act, Contract Labour (Regulation & Abolition) Act, Factories Act and Apprenticeship Act, Trade Unions Act etc.· Proposals for new Small Factories (Regulations of Service conditions) Bill which prescribes that major 14 labour laws will not apply to factories employing upto 40 workers.· Labour Code on Wages Bill and Labour Code on Industrial Relations Bill which under the cover of amalgamation seek to make registration of unions almost impossible,· Making retrenchment of workers and closures of factories easy.· Amendment Bills have been put in public domain without consulting the trade unions thereby violating the provisions of ILO Convention 144 on Tripartite Consultation.· Inaction in implementing the consensus recommendations of 43rd, 44th and 45th Indian Labour Conferences on formulation of minimum wages, same wage and benefits as regular workers for the contract workers and granting status of workers with attendant benefits to those employed in various central govt. schemes like anganwadi, mid-day-meal, ASHA, para-teachers etc.· Curtailed budget allocations to all centrally sponsored schemes meant for poor peoples’ welfare.· Refusal to ensure minimum wages of not less than Rs. 15,000 per month with indexation and universal· Denial of Pension for all including the unorganized sector workers· Reluctance on compulsory registration of Trade Unions within 45 days and ratification of ILO Conventions 87 and 98.· Denial of Bonus for all and removing the ceiling under the Bonus Act· Refusal to improve the ceiling under Gratuity Act
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Realty firm Unishire on Tuesday (01 September) said it has raised Rs 126 crore from issuing debentures and the funds would be utilised to repay debt and meet construction cost of the ongoing projects. The company said in a statement that it has "raised Rs 126 crore through issue of non-convertible debentures. Reliance Yield Maximiser Alternative Investment Fund (RYMAIF) is the investor for the debt issue". "We are delighted by the confidence shown by Reliance Yeild Maximiser Alternative Investment Fund towards our issue. It stands testimony to the trust industry has on our growth story. At Unishire, we promise to build communities that offer global living experience at a strong value proposition. All our projects are delivering value and strong return-on-investment as on date and we are optimistic that this new partnership will also witness upward trajectory to its investment. I would also like to thank JLL for their expertise that resulted in this strategic action," Unishire MD, Pratik K Mehta, said. RYMAIF is a real estate fund launched by the Reliance Capital Asset Management's subsidiary, Reliance AIF Management Company Ltd. The transaction was arranged by property consultation firm JLL India. The funds raised will be utilised for clearing high cost debt, on-going projects construction and expansion, Unishire said. It will be released in two tranches of Rs 90 crore and Rs 36 crore, with maturity periods of 45 months. With the fresh debt, the company's total debt portfolio stands at Rs 176 crore. Unishire has 5.6 million sq ft under construction and another 6.4 million sq ft planned for development in the next 3-5 years. It has 17 projects, with one completed, eight on-going and the rest at pre-launch stages. Recently one of Unishire's project, Belvedere Premia was awarded with "Best Architectural Design Project of the Year" organised by Silicon India, one of the leading media houses. The project was acclaimed for its German design that aesthetically in-corporate green initiatives.
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