Logging its first fall in nine days, the benchmark BSE Sensex on Wednesday slipped by 75 points to 27,729.67 as market sentiment took a hit in last half hour on news that the creditors have rejected Greece?s new proposal. Profit-booking ahead of tomorrow's futures and options (F&O) June contract expiry also weighed to some extent. After trading in positive zone for most part of the day, the index plunged over 200 from a high of 27,948.24 at the fag-end tracking losses in European stocks. "The news that the creditors rejected Greece?s new proposal for a deal took a toll on the market movements," said Alex Mathews, Head Research at Geojit BNP Paribas Financial. Greek Prime Minister Alexis Tsipras said some creditors haven't accepted the country's proposals for a deal. "The insistence of certain institutions of not accepting parametric measures has never happened before -- not in Ireland, nor in Portugal," he wrote in a Twitter post. The BSE Sensex after a positive start, hit a high of 27,948.24 on sustained buying largely in tune with above-normal progress in monsoon. However, it slipped towards the close on negative global cues and touched day's low of 27,647.29, before settling 74.70 points or 0.27 per cent down at 27,729.67. In previous eight sessions, BSE barometer had zoomed by 1,433.39 points or 5.4 per cent as better-than-forecasted monsoon raised hopes of a rate cut by RBI. The 50-share NSE Nifty after reclaiming the psychological 8,400-mark in early trade touched the session's high of 8,421.35 succumbed to profit-booking and settled 20.70 points or 0.25 per cent lower at 8,360.85. Meanwhile, foreign investors sold shares worth Rs 374.97 crore on Tuesday as per provisional data, while domestic institutional bought shares worth Rs 404.20 crore. In overseas markets, European stocks were trading lower. Key benchmark indices in France and Germany were lower in the range 0.05 to 0.30 per cent, while the UK's FTSE index was up by 0.43 per cent. Earlier in the day, Asian stocks ended higher. Key indices in China, Hong Kong, Japan, Taiwan, Singapore and South Korea firmed up between 0.21 and 2.48 per cent. Back home, 24 scrips out of the 30-share Sensex pack ended lower. Pramit Brahmbhatt, Veracity Group CEO said: "Indices traded higher initially, however, declined at the fag-end due to selling pressure as the news came that the Greece deal with the creditors did not materialised." Major losers were Hindalco (3.70 pc), Tata Steel (2.98 pc), M&M (2.27 pc), SBI (1.92 pc), NTPC (1.65 pc), Cipla (1.35 pc), Gail India (1.24 pc), Bharti Airtel (1.19 pc), and Tata Motors (0.89 pc). However, BHEL rose by 4.06 per cent followed by HUL 2.40 per cent, Lupin 1.83 per cent, Sun Pharma 1.54 per cent, Wipro 1.34 per cent and ICICI Bank 1.13 per cent. Among the BSE sectoral indices, metal dropped by 1.57 per cent followed by realty 0.93 per cent, oil&gas 0.90 per cent, auto 0.80 per cent, capital goods 0.57 per cent and teck by 0.53 per cent. The market breadth turned negative as 1,496 stocks ended in the red, 1,222 closed in the green and 134 ruled steady. Total turnover rose to Rs 2,629.33 crore from Rs 2,485.27 crore on Tuesday.(PTI)
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The localised design and cost structure will help UTC leverage its new integrated technology capabilities, writes C H Unnikrishnan US-engineering technology giant and maker of OTIS elevators and Carrier air conditioners United Technologies Corporation is eyeing the integrated building technology solutions as the next biggest growth opportunity in India. The multinational group, which is into building and industry systems and aerospace technology, is also focusing on creating a brand image of United Technology instead of the traditional model of promoting the individual product brands, many of which are household names in the country. The new focus is mainly based on its innovative technologies in the area of smart buildings and new generation industry campuses. "We wanted to introduce several new generation technologies in the smart building concept, an area that is fast emerging in India," said Ross B Shuster, President, Asia, UTC Building And Industrial Systems. According to Shuster, the localised design and cost structure will help leveraging its new integrated technology capabilities in the market, where it is already a leader in the building and industrial systems with individual products. UTC building and industrial systems is currently a leading provider of elevators, escalators, fire safety, security, building automation, air conditioning and refrigeration systems among others in India. The new services that it started focusing now in the market includes technology solutions that promote safer, smarter and sustainable buildings. "An increasing urbanisation in India and related new infrastructure projects including smart cities, metro rail, airport modernisation are some the key growth opportunities that makes India a key market for us," said Shuster in an exclusive interview with BW Businessworld on Wednesday. UTC had recently restructured its building and industrial systems business to make it more agile and nimble in India. The company, which has already started a new division for integrated building systems to work closely with their clients on enhancing communication between each building system – lighting, air-conditioning, security, elevators, to help optimise energy consumption. It has already provided such integrated solutions to some large projects including Lodha World One, T3 Airport Delhi, L&T Hyderabad Metro Rail, Delhi Metro Rail Corporation. "As part of the growth plan in India, we also consistently exploring opportunities to acquire better business and technologies that fits our strategy," Shuster added.
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New technologies have changed the rules of business, writes Arshad KhanAccording to a recent study, 96 per cent of global business leaders believe that new technologies will forever change the rules of business in the next decade. The study further highlighted that bout 93 per cent reported that recent technology advancements are resetting customer expectations, and nearly all say this will accelerate over the next decade.The study, The Information Generation: Transforming The Future, explores new expectations of the digital citizens and identifies the fundamental business attributes critical for organizations to successfully compete and thrive in the new landscape.Business leaders agree on top 5 “make-or-break” business attributes are essential for their business to thrive in an environment full of information. These attributes are spotting new opportunities in markets, demonstrate transparency and trust, innovate in agile ways, delivering unique and personalized experiences and operating in real time. The study was conducted over 3,600 business leaders across 18 countries by Institute for the Future and Vanson Bourne on behalf of EMC .In national fringe, 76 per cent of businesses think this mega trend will change consumer expectations. Around 200 respondents from India exhibit high importance toward information driven market but also admit that they are not ready for the future yet.A key finding of the study from India says that 86 per cent of domestic businesses are aware of the importance of predicatively spotting new opportunities. 88 per cent of business leaders admitted that they are demonstrating transparency and trust organization-wide. 89 per cent of organizations expressed a desire to innovate in an agile way. 79 per cent of Indian organizations understand the importance of delivering a unique and personalized experience organization wide while only 36 per cent of business leaders say their organisation can act in real time, and a further significant portion (48 per cent) say they can do so, but not always with the insights that they need.According to the study, in addition, by 2020 over 7 billion people on at least 30 billion devices will have created 44 zettabytes of data (or 44 trillion gigabytes).Amit Mehta, country manager, Isilon Storage Division, said that only 49 per cent globally admitted that they don’t know how to how to turn all of their data into actionable information. 70 per cent say they can gain insights from data but only 30 per cent are always on and able to act upon their information in real time. 52 per cent admitted that they do not use their data effectively and only 24 per cent consider themselves “very good” at turning data into useful information.Mehta said, “Understanding the psyche of a customer via real time data is the new norm of business. Information inbuilt with technology with can play a major role in achieving government’s dream like smart cities and it also had the potential to reform and redefine business.”He hinted that infrastructural problem such as slow internet speed is a major challenge in distributing information but overtime conditions will improve in India.
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A leading financial daily reported that the US headquartered Pepsico is planning to reduce the sugar and salt content in its products in India. It will do so by launching a new drink with less sugar content. The move comes in the backdrop of countrywide ban on Maggi and the fall in the brand value of Nestle’s products after the Food Safety & Standards Authority of India (FSSAI) found that the two minute noodle product of the company had high lead content. Is Pepsico really serious about the health of the people in the country that they have decided to listen to the voice of health critics, who have been criticising Coca Cola and Pepsico for using high level of sugar and salt in their products? The answer is no. The brand of a beverage company is built over the years by getting people used to a particular taste. These tastes were developed over a century ago (Both Pepsi and Coca Cola are over 100-years-old brands) with beverage companies launching new products over all these years. Over the years, Pepsico and Coca Cola, both companies have faced various charges from the food safety standard bodies of different countries for selling unhealthy levels of sugar to people through their drinks. If the Cola companies are so serious about the health of their consumers, they should either discontinue with their flagship products or reduce the sugar content in them. In the past, Pepsi and Coca-cola both have tried their hands at low calorie products with less sugar content. However their products did not do well in comparison to their regular carbonated drinks. Neeraj ThakurIn India, the debate is not just about Sugar and salt levels but also about high levels of Pesticides by these two beverage giants who are known for having different standards for different country (Read Pesticides in soft drinks) . But in the absence of uniform safety standards for soft drinks in India, these companies have continued to serve people what may not be possible in the US and Europe. In this backdrop, it is the duty of FSSAI to come with strong guidelines for all beverage makers in the country to define the level of various ingredients in their products. In deciding those standards, we must follow the international norms prescribed by the World Health Organization. The World Health Organization recommends "sugar should make up less than 10 per cent of total energy intake per day". The West is also struggling to set uniform standards for the carbonated drinks industry. India on the other is struggling with deadly content like lead in its food products. However, it is time that the Indian food authority raises its standards and put a benchmark on lesser evils like sugar, which may not be as harmful as lead but is dangerous nonetheless.
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The company is also planning to launch a sub-compact sedan, says Manish Kumar PathakVolkswagen, the German auto major, will launch 5 new cars in the Indian market in the next two years. This will also include the iconic Beetle, in order to bolster its presence in India. Currently the market share is at a meagre 2 per cent. The middle-class population of India is seeking for vehicles which are technology loaded, yet affordable. Lack of compact and costs that fosters healthy competition has relegated Volkswagen to a weak position in the India. The company has decided to develop a compact SUV, in lines with Renault’s Duster and also Eco Sport from Ford. Also, the auto major is deliberating on bringing the new and improved Volkswagen Beetle. This model did not ignite excitement, when it was introduced earlier. Similarly, because of the dismal response which the Passat received in India, Volkswagen revoked the car last year. However, the company is now mulling to launch the new-generation of the model again. In what can be viewed as a riposte to Swift Dzire (Maruti Suzuki), Xcent(Hyundai), Amaze(Honda) among others, the company is planning to launch a sub-compact sedan. Volkswagen has also confirmed that they will roll out the SUV, the Tiguan to India, which will debut at the 2016 Delhi Auto Expo.Keeping in mind the ‘Make in India’ push the German auto major has extensive plans to develop India into a low-cost manufacturing hub. Since exporting products features on top of the priority list for the company, this move will help it export India-made cars to emerging and developed markets. “Private equity firms are always on the lookout for startups that will grow very big so with with Sebi’s new listing norms, start-ups are definitely going to evince more investor interest,” said Vikram Hosangady, Partner and Head, Deal Advisory at KPMG
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A lot of investor money is stuck in companies at this point in time and there is pressure mounting on entrepreneurs to give them an exit option, says Paramita ChatterjeePrivate equity (PE) or venture capital (VC) firms, which invest in start-ups are breathing a sigh of relief with Sebi easing rules for listing on domestic exchanges for start-ups, saying it will provide them the much needed access to exits, which so far has been a cause of concern in the industry. A lot of investor money is stuck in companies at this point in time and there is pressure mounting on entrepreneurs to give an exit option to investors. So far this calendar year, in the January- June period, as many as 264 deals were sealed worth $6.6 billion, while the number of exits stood at 90 with PE firms encashing $4.5 mn, as per data available with Venture Intelligence. “Private equity works in tandem with the capital market and Sebi’s decision to ease listing norms for start ups is definitely a move in the right direction that will also facilitate investor exits besides giving promoters fund raising options,” said Bala Deshpande, Senior Managing Director at New Enterprise Associates, a venture capital firm with over $13 billion in committed capital. “Private equity firms are always on the lookout for startups that will grow very big so with with Sebi’s new listing norms, start-ups are definitely going to evince more investor interest,” said Vikram Hosangady, Partner and Head, Deal Advisory at KPMGUnder the new norms approved by the market watchdog on Tuesday (23 June), stock exchanges would have a separate institutional trading platform for start-ups to list on the bourses, while the minimum investment requirement would be Rs 10 lakh. Further, the regulator has also brought down the mandatory lock-in period for the promoters and other pre-listing investors to six months from three years to make it easy for those wanting to hit the bourses. Currently, there are over 3,100 start ups operating in the country. A single PE investment cycle usually lasts 3-5 years after which PE firms normally exit by way of trade sale, public listing, recapitalisation and secondary sale. Trade sale is the most common exit for private equity investments as trade buyers in the same industry are often more likely to realise synergies with the business and are therefore, the most natural buyers of the business. Typically, public listing takes place during positive market conditions as prevailing at present.
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Sentiments are high in the Indian real estate market after Indiabulls Real Estate stock emerged as the top-performing scrip in the BSE small-cap space on Monday, surging nearly 17 per cent boosted by reports that the company's promoter Sameer Gehlaut will be hiking his stake by 10 per cent to 37 per cent by infusing capital worth Rs 538 crore. On Tuesday, shares of DLF also rose 3.3 per cent intraday after India’s largest realty firm resolved its differences with Blackstone by deciding to exit from Bengaluru property market, is speculations are to be believed. These positive developments in the sector are in the wake when the real estate market had taken a setback when the country’s two largest firms DLF and Unitech are still reeling under cash deficit. Unitech on the other hand is cash strapped; the company’s projects are getting g delayed for many months now and employees are not being paid. Analysts attribute these developments to the NDA government who they think after assuming power, have seen substantially shifting focus on real estate and infrastructure sector through budget allocations, new policies, new initiatives, various investment avenues. “These steps are expected to improve image of the real estate sector in India and as a result, will attract higher attention of investors who were sitting on the fence waiting for the situation to improve.,” says Shobhit Agarwal, Managing Director,Capital Markets, JLL India. Agarwal said adding, that in terms of equity, the stocks have lost sizable share of market cap so the improved interest combined with lower base should attract good returns for the investors. However, the returns will be steady and will be aligned with progress from government she said.
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Executive Chairman of Eros International, Kishore Lulla, honoured with the Entertainment Visionary Award by Asia Society Southern California. He recognised for being a game changer and for his efforts in taking Bollywood global.Thomas McLain, Chairman of Asia Society Southern California & of McLain Partners LLC added, “Kishore Lulla is much more than a head of a successful film studio, who controls 40 per cent of the Hindi language film market in India; he’s also a philanthropist who is seeking to bring 250 million Indian children out of poverty through his educational initiatives and a visionary who is promoting equality for women in the workplace in India. His personal story of starting his business in Israel and Germany inspired all, and at the same time he kept the audience laughing with his great sense of humor. Kishore’s goals are synonymous with those of the Asia Society – we are both building bridges between the East and West through education, culture and business initiatives”.Asia Society is a leading educational organisation dedicated to promoting mutual understanding and strengthening partnerships among peoples, leaders and institutions of Asia and the United States in a global context. The only pan-Asian organisation in Los Angeles which organises public and private programme to foster dialogue between Asians and Americans.
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