The Mumbai Grapevine
Connecting Mumbaikars with Mumbai
(Published by Mumbai-Central.com)
Please feel free to forward this message to your friends and co-workers
who might be interested in it. The instructions to join the Mumbai
Grapevine are at the end of the message.
Markets suffer bloodbath ahead of Diwali; sheds 1,071 pts
Mumbai, Oct 24 (PTI) The stock market bled heavily as investors today hammered banking, realty and oil and gas stocks, pushing the benchmark Sensex down by about 1,100 points to 8,701.07 points.
The markets which opened weak had a free fall soon after the Reserve Bank unveiled its mid-term review of the annual credit policy, without any changes in key policy rates.
The 1,071-points plunge in Sensex today is the steepest in any single trading session after a 1,408 points drop on January 21, this year and has pushed the index to its lowest in about three years despite the continuing pep talk from Finance Minister P Chidambaram and host of measures by RBI to prop up the markets. PTI
92.6 pc of bank deposits fully protected: Govt
New Delhi, Oct 24 (PTI) Government today said that 92.6 per cent bank deposits are fully protected under the Deposit and Insurance and Credit Guarantee scheme.
"As at the end of March 2008, fully protected deposits accounts constituted 92.6 per cent of total number of deposit accounts," Minister of State for Finance Pawan Kumar Bansal said in a written reply in the Lok Sabha.
He, however, ruled out the possibility of formulating any special law to protect the interests of depositors in the financial institutions. He added that the Deposit and Insurance and Credit Gurantee Corporation (DICGC) extends insurance cover to small investors in the banking system of the country.
Deposit insurance is compulsory for all banks in the country and the Deposit Insurance Scheme covers all commercial banks including local area banks, regional rural banks, co-operative banks and private banks across the country, he said.
He said that in the event of liquidation, reconstruction, amalgamation of an insured bank, every depositor is entitled to repayment of his deposit up to Rs one lakh. PTI
Governor issues notification for assembly polls in J&K
Srinagar, Oct 24 (PTI) Jammu and Kashmir Governor N N Vohra today issued notification for holding elections in 10 of the 87 assembly constituencies in the border state in the first phase of the seven-stage poll on November 17.
The Governor, in exercise of powers vested in him under Jammu and Kashmir Representation of People Act, 1957 and as recommended by the Election Commission, has issued the notification for holding the elections in 10 constituencies of in the first phase, an official spokesman said here.
The constituencies going to polls on November 17 are Gurez, Sonawari and Bandipora in north Kashmir, Nobra, Leh, Kargil and Zanskar in Ladakh region and Surankote, Mendhar and Poonch-Haveli in Poonch district.
While October 31 will be the last date for filing of nominations, scrutiny of the papers will be held on November one and the last date for withdrawal of candidature is November 10. The electorate comprises over 4.10 lakh, including 2.53 lakh women.
As many as 1,066 polling stations would be set up in the 10 assembly constituencies.
Although the campaigning has not fully picked up as yet with People's Democratic Party (PDP) maintaining a studied silence on the poll process, other parties, including National Conference and Congress, are expected to shortly start focussing on these 10 constituencies. PTI
Indian cricket fraternity hits back at Gilchrist
New Delhi, Oct 24 (PTI) Indian cricket establishment today hit back at Gilchrist for questioning Sachin Tendulkar's honesty during the 'Monkeygate' scandal earlier this year, saying the former Australian vice-captain's uncharitable remarks were only a marketing gimmick to sell his book.
While Tendulkar himself refused to comment on Gilchrist's observations in his autobiography, former players and administrators sprung to the defense of the champion batsman by terming the remarks as "unfortunate and uncalled for".
In his autobiography 'True Colours' to be released next week, Gilchrist has hinted that Tendulkar was a sore loser and questioned his honesty in the racial row involving Harbhajan Singh and Andrew Symonds that threatened to go out of hand during India's tour Down Under.
Gilchrist said Tendulkar had initially told the hearing that he could not hear what was said because he was "a fair way away". But during the appeal which followed, Tendulkar said that Harbhajan used a Hindi term that sounded like "monkey" to Australian ears.
Former Indian Chief Selector Dilip Vengsarkar described Gilchrist's remarks as just a "marketing strategy".
"You have to write something sensational to sell a book. I think it's a marketing strategy that Adam Gilchrist has adopted. Very unfortunate, but a fact," Vengsarkar told a private TV Channel.
Tendulkar, however, refused to comment on the issue when his reaction was sought at a function to inaugurate Vengarkar's academy at Pimprichinwad, an industrial suburb of Pune. PTI
Ponting, Haddin visit Meerut to buy cricket bat
Meerut, Oct 24 (PTI) Having failed to put up a good show in the Mohali Test, Australian captain Ricky Ponting was in the town to buy "Meerut bats" from a factory which he visited in 1987.
Ponting and teammate Brad Haddin bought seven bats from S G Factory at Partapur here yesterday and spent four hours while selecting the bats.
Ponting bought two bats for himself and five more for Shane Watson and Mike Hussey, who could not accompany them here.
The duo later ate at a local restaurant, Mukut Mahal, and had Indian dishes of chicken tandoori, dal makhani, butter paneer, biryani and chapatti. PTI
Ponting denies tiff with Lee, says he feared of suspension
Melbourne, Oct 24 (PTI) Crying hoarse in denying he had a tiff with Brett Lee, Australia captain Ricky Ponting said the fear of suspension, following the team's slow over-rate, was behind his decision not to bowl the speedster in the morning session on day four of the Mohali Test.
In a column headlined "Truth about my 'tiff' with Binga" in 'The Australian', Ponting sought to project that everything was well between him and Lee.
"Whatever may have been said and written in recent days, I can assure everyone there is absolutely no problem between Brett Lee and me," Ponting said at the outset.
Insisting the slow over-rate had become a concern for him and hence he could not afford bowling with Lee, Ponting said, "Our discussion just before lunch on the fourth day of the second Test was all about over rates and our struggle to maintain them, particularly when India was scoring so freely." "What Brett couldn't understand is that Mitchell Johnson and Peter Siddle had the chance to bowl before him. But by the time I wanted to bowl Brett, we were five overs behind on our over rate.
"If he were to come on and we went six or seven overs down then I could be suspended under the ICC playing conditions for slow over rates," Ponting explained.
Besides this, Ponting said he was trying to take the pace off the ball to restrict India's free-scoring batsmen.
"Brett was obviously disappointed he didn't bowl in the first session and didn't know the reason until I told him late in the session. He knew he wasn't going to be opening up in the morning because we wanted to take the pace off the ball and try to limit India's batting early on," he argued. PTI
New York Times endorses Obama, tongues him a "cool head"
New York, Oct 24 (PTI) US Presidential hopeful Barack Obama, already leading Republican rival John McCain in opinion polls, got a major boost to his campaign with the influential New York Times newspaper lending its endorsement to the Democrat, commending him for possessing "a cool head" and "sound judgement".
Contending that the Afro-African was better placed to deal with deteriorating economy and sensitive world problems, including wars in Iraq and Afghanistan, the newspaper said he was also likely to engineer sound alliances at international and national levels.
"He has shown a cool head and sound judgement. We believe he has the will and the ability to forge the broad political consensus that is essential to finding solutions to this nation's problems," the Times editorial board said in an 1800-word endorsement.
In contrast, the paper said McCain has retreated farther and farther to the fringe of American politics, running a "campaign on partisan division, class warfare and even hints of racism." Claiming that McCain's policies and worldview were mired in the past, the paper also termed his running mate Alaska Governor Sarah Palin as "unfit for the office".
"His choice of a running mate so evidently unfit for the office was a final act of opportunism and bad judgement that eclipsed the accomplishments of 26 years in Congress." McCain, the paper said, offers more of the Republican every-man-for-himself ideology, now lying in shards on Wall Street and in Americans' bank accounts.
Obama, on the other hand, has another vision of government's role and responsibilities, it added. PTI
Lawmaker objects to China helping Pak build nuclear reactors
Sridhar Krishnaswami
Washington, Oct 24 (PTI) A critic of the Indo-US nuclear deal has raised objections over China helping Pakistan in building two new atomic reactors, saying that the agreement flouts the norms established by the NSG and would further "destabilise" South Asia.
"The Peoples' Republic of China has had a long history of nuclear cooperation with Pakistan. This history made China and Pakistan likely candidates for future nuclear cooperation in violation of NSG guidelines, which was always a concern for those of us who opposed Indo-US nuclear deal," Massachussetts Democratic Congressman Edward Markey said in his October 23 letter to the Secretary of State Condoleezza Rice.
Markey said, "Unfortunately, our concerns appear to be borne out in the events that are unfolding right now, which must be considered a direct consequence of the US-India nuclear deal." "I strongly opposed the US-India nuclear cooperation deal on the grounds that it would gravely damage the vitally important nonproliferation regime. A key concern raised by this agreement was that waiving the international rules for India would set a precedent for other nations to flout international nuclear nonproliferation export controls for their allies or trading partners," he said.
China has built one nuclear reactor 'Chashma I' in Pakistan and is currently nearing completion of 'Chashma II'. The contracts for these reactors existed before China received membership in the NSG in 2004 and because of this China was allowed to complete work on them. PTI
China reduces fertility rate from 5.8 to 1.8
Beijing, Oct 24 (PTI) China's one-child per family planning policy has not only led to higher standards of living but has drastically reduced the fertility rate which has slumped to 1.8 children per woman in 2008 from 5.8 children three decades ago, an official said today.
China's family planning campaign which began about 30 years ago, has benefited the world's most populous nation and the world at large, said Li Bin, director of the National Population and Family Planning Commission.
In broad terms, the policy limits one child per family, especially in cities. Li said it has helped control population growth and reduce fertility rate to 1.8 children per woman in 2008 from 5.8 children three decades ago.
"China's per capita GDP reached USD 2,400 in 2007," Li said. "Without the policy, that figure, according to official calculations, would have been USD 1,800." Besides, if not for the population control, the country's resources and environment would face even heavier pressure, as its per capita arable land, grain, forest, water and energy would decrease by 20 per cent, she was quoted as saying by Xinhua news agency.
Family planning also helped improve the standard of living in China.
The country's average life expectancy has risen from 68 three decades ago to 73 today. That's the same level in moderately developed countries.PTI
Rich should remain committed to development assistance: India
Dharam Shourie
United Nations, Oct 23 (PTI) India has asked rich nations of the world to ensure that the ongoing financial crisis does not adversely affect their commitments to poverty eradication programmes in the developing nations.
Contending that the world is not on track to achieve the Millennium Development Goals (MGDs) especially on poverty eradication front, India asked the industrial nations to show greater enthusiasm in fulfilling their pledges to Official Development Assistance and debt relief for poor nations, besides market access and technology transfer.
"It is important that poverty eradication, which is the greatest global challenge facing the world today, should continue to receive the highest attention of the UN and the international community," Indian delegate Vishvjit P Singh told the Economic and Financial Committee of the UN General Assembly.
India, he said, considers industrial development to be a fundamental requirement for achieving high economic growth, without which the eradication of poverty and the achievement of the development objectives would not be possible.
Therefore, greater international support is required to assist the efforts of developing countries towards industrialisation, he said, adding, "we urge greater focus in industrial development cooperation on the crucial objectives of promoting the expansion, diversification and modernisation of productive capacities in developing countries." Referring to the "crucial question" of how to integrate pro-poor growth strategies with appropriate industrial policies, Singh said industrialisation must include support to small and medium enterprises, which leads to large employment generation. PTI
Meltdown in metal prices on global recession fears
Mumbai, Oct 24 (PTI) Metal prices continued to fall sharply on the non-ferrous metal market here today on heavy stockists offerings fearing a global economic recession will reduce demand for industrial metals.
Nickel dropped by Rs 30 per kilo to Rs 660, brass utensils scrap by Rs 17 per kilo to Rs 179, copper utensils scrap by Rs 17 per kilo to Rs 248, tin by Rs 15 per kilo to Rs 760, copper cable scrap by Rs 14 per kilo to Rs 273, copper wire bar by Rs 14 per kilo to Rs 301, copper scrap heavy by Rs 13 per kilo to Rs 269, copper sheets cutting by Rs 13 per kilo to Rs 265, copper armiture by Rs 12 per kilo to Rs 268 and brass sheets cutting by Rs 10 per kilo to Rs 191.
Lead also declined by Rs 5 per kilo to Rs 85, aluminium utensils scrap by Rs 5 per kilo to Rs 98 and aluminium ingots by Rs 3 per kilo to Rs 121. PTI
Banks suffered modest MTM losses; financial system stable: RBI
Mumbai, Oct 24 (PTI) After his first review of monetary policy, Reserve Bank Governor D Subbarao today asserted that Indian financial system is stable and healthy and said domestic banks have suffered some mark-to-market losses on account of exposure in foreign assets.
"Indian banks do not have direct financial exposure to the US sub-prime assets. Foreign subsidiary and foreign branches of Indian banks have suffered some mark-to-market (MTM) losses on financial instruments due to the widening of credit spreads," he told reporters after the mid-term review of the annual monetary policy here.
Pointing out that the Indian financial system is stable and healthy, Subbarao said "these (MTM) losses are modest relative to the size of their business and adequate provisioning has been made for these".
"The overall Capital Adequacy Ratio(CAR) of the commercial banks is 12.7 per cent, well above the regulatory minimum of 9 per cent and Basel requirement of 8 per cent," he said, adding, mandatory Statutory Liquidity Ratio (SLR) of 25 per cent and Cash Reserve Ratio (CRR) of 6.5 per cent provide inherent strength to the Indian banks.
Under the regulatory norms, all banks are required to park 25 per cent of their funds in government securities (SLR) and keep 6.5 per cent with the RBI to meet CRR requirements.
As regards the impact of global financial meltdown, Subbarao said, the developments are having an indirect impact on the domestic financial and money markets resulting in tightening of liquidity conditions. PTI
Market crash pulls 350 stocks to their all-time lows
Mumbai, Oct 24 (PTI) Signalling what could be a dark Diwali on Dalal Street, as many as 350 securities today hit their all-time lows as Sensex crashed by about 1,100 points and dipped below 9,000-mark for the first time in about three years.
Making the things worse, those hitting their record low share prices included big names like Reliance Power, Cipla, Ranbaxy, Ambuja Cement, Hindalco, Indian Hotels, Jaiprakash Associates, Jet Airways, Suzlon Energy and Idea Cellular.
Realty majors DLF Ltd, Unitech, Parsvnath, Sobha Developers, Omaxe and Puravankara also plunged to their all- time lows.
There were also new listings such as REC, Gammon Infra, Titagarh Wagon, V-Guard, Anu's Lab, KSK Energy, 20 Microns, Birla Cotsyn, OnMobile, IRB Infra, Aishwarya Telecom, Kiri Dyes and 20 Microns in this category.
Other big names plunging to their record lows included Central Bank, Power Grid, PFC, Edelweiss Capital, Future Capital, Biocon and Patni Computer, GMR Infra, Tech Mahindra, Mahindra Forging and Lanco Infra.
The Sensex today settled 1,070.63 points down at 8,771.70 points -- registering its biggest single-day fall. There were as many as 2,322 stocks ending in the red, accounting for close to 90 per cent of all the actively traded stocks.
Besides, as many as 640 stocks hit their lower circuit filters -- signalling there were no buyers for these stocks. PTI
ASEM summit opens in Chinese capital; Singh among attendees
Anil K Joseph
Beijing, Oct 24 (PTI) Leaders from 45 Asian and European nations, including Prime Minister Manmohan Singh, today kicked off a summit here to explore ways to restore confidence in global financial markets and avert a possible recession.
Chinese Premier Wen Jiabao presided over the opening ceremony of the biennial Asia-Europe Meeting (ASEM) held at the Great Hall of the People here.
Wen welcomed six new members of ASEM -- Bulgaria, India, Mongolia, Pakistan, Romania and the Secretariat of the Association of Southeast Asian Nations (ASEAN).
Singh, who arrived here yesterday after a three-day visit to Japan, and Wen warmly shook hands and posed for photographers.
Chinese President Hu Jintao, in his key-note speech, emphasised that the world can overcome the current crisis through concerted efforts.
"Only with strong confidence and concerted efforts can we weather the crisis," Hu said, referring to the ongoing financial crisis triggered by the US credit crunch.
Hu, also General Secretary of the ruling Communist Party of China, said Beijing appreciated and supported the positive measures taken by several countries in response to the financial crisis. "We hope those measures will produce the desired results soon." On China's part, Hu said the country had made active efforts to the best of its ability.
"We have adopted a range of important measures, including those on maintaining the stability of our domestic financial system, increasing liquidity in the financial markets and institutions, enhancing coordination and cooperation with other countries on macro-economic policies among others." PTI
Paramount delaying films an impact of fin crisis: report
New York, Oct 20 (PTI) Paramount Pictures' decision to delay two major holiday films -- including one with an Oscar aspirations -- may be a sign of Hollywood's retrenchment amid the US economic crisis, a media report speculates.
Paramount late last week announced that it would delay the release of 'The Soloist' -- a Los Angeles drama about a homeless violin player and a newspaper columnist who intervenes in his life -- until next March, the Wall Street Journal said.
The movie comes from DreamWorks, the Paramount unit whose principals, Steven Spielberg and Stacey Snider, recently left to start a new film venture.
The decision to delay the movie came barely a month before its planned November 21 debut, resulting in "Soloist" star Robert Downey Jr's consideration for the Academy Awards to be put off till next year.
The limited release of "Defiance" -- a war picture with Daniel Craig from the studio's Paramount Vantage specialty unit -- has also been delayed until the end of 2008, meaning the film won't be in wide release until January, the paper said.
Paramount, a unit of Viacom Inc, announced the delays as part of a new business strategy under which it is cutting costs by reducing the number of films released each year from around 25 to 20.
To start cutting back in 2008, the studio delayed a couple of films, which puts off most of the cost of marketing and distributing the movies until next year, the Journal said. PTI
Craze for career in Bollywood brings Pak boy to Indian jail
Islamabad, Oct 20 (PTI) A Pakistani teenager's craze for a career in Bollywood has landed him in an Indian jail and his worried parents appeal for his release on humanitarian grounds.
Nasir Sultan, a Class 10 student and a diehard fan of the Bollywood superstar Shahrukh Khan, crossed over to India illegally to try and join the film industry.
After reaching Punjab in India, he called his parents in the North West Frontier Province to say he was in the neighbouring country.
Fifteen minutes later his parents got another call to say that their son had been arrested. Sultan's parents, who hail from Chukiatan, a small town of Dir district in NWFP, are now running from pillar to post to secure his release.
Like most Pakistani boys of his age, Sultan was an avid Bollywood fan and was fascinated by the many stunts in Hindi films that he hoped to excel at too. On August 16, Sultan left home for school wearing his uniform and carrying his schoolbag but instead crossed the border.
Two days later, his father Sultan Zareen, who works at a petrol pump, got a call from Sultan, who said he was on his way to Mumbai. This was followed soon after by the news of his arrest.
Sultan is being held in Faridkot Jail for the past two months. "I don't know what to do to secure his release as he is in another country where I have no influence or resources to use for winning his release," Zareen told The News daily.
Zareen said his wife was depressed and the Indian government should release his son on humanitarian ground. PTI
Indian film-maker selects Coventry as location for next project
London, October 20 (PTI) India's noted film company Rajshri Productions has chosen the east Midlands city of Coventry as the location for shooting of their next untitled film.
"The story looks at the acceptance of cultures in the western world. If we choose Coventry, half of the film will be set here. It's just a fantastic place and meets our requirements," film director Sooraj Barjatya told media here.
Barjatya and producer Ashwani Chopra visited the town this week. They said that the locations, particularly around Coventry University, met their expectations and they were interested in shooting at those sites.
"We wanted to find a university that would be the most helpful and Coventry University did that. It is an ideal location - I like the classic architecture with the cathedral by the side of the modern architecture," Chopra said, adding the characters will study courses (fashion design and automotive design) that the university offers here.
University officials are thrilled that the locations will showcase the university to the large Bollywood audience across the globe.
"It's brilliant and great exposure for us and Coventry as a whole. And it's not just in this city where there is a vast audience of Bollywood movies, it's world wide," said Alison Bushnell, media relations officer at the university, who accompanied the film-makers around the campus.
The popularity of Bollywood films such as "Dilwale Dulhaniya Le Jayenge", "Mohabbatein", and "Namaste London", filmed at various tourist destinations in Britain, has led Britain's tourism authorities to bring out a "Bollywood Map of Britain" to help the tourists find their way around the locations. PTI
Are Indians spending too much on laundry?
Aditya Rangroo
New Delhi, Oct 24 (PTI) It may not be laundering the way the taxman would salivate to read about increasing number of Indians are spending money on laundry but thanks to the hectic city life and efficient services offered by chains that are opening shops.
Laundry services across the country are becoming popular with working people and bachelors.
'Four Seasons,' a dry cleaning company in the capital says it continues to make profits despite charging high rates for its services.
Rates for shirts range between Rs 60 and Rs 80, trousers are charged Rs 110 per pair and charges for dry-cleaning one panel of curtain costs Rs 160.
"Many people come to our shop for laundry and dry cleaning and most of them are working couples. We also have home delivery facilities at nominal rates," says a staff member.
Market Research company A C Nielson pegs the country's dry-cleaning and laundry industry approximately between Rs 3,000 and Rs 3,500 crores.
The latest to open a chain in the capital is 'Wardrobe,' a chain in collaboration between Australian dry-cleaning and laundry major Brown Gouge and Delhi-based Diamond Fabcare.
According to B L Bajaj, Director of Wardrobe, the daily demand for laundry is expected to rise at 20-25 per cent annually.
Laundry care in India, he says has grown 8 per cent in current value terms in 2007 to reach Rs 84 billion.PTI
Medical negligence cases grow so do ambulance chasing lawyers
Anurag Sharma
New Delhi, Oct 22 (PTI) Growing awareness amongst public about their consumer rights in events of medical negligence and increasing tribe of 'ambulance chasing lawyers' have contributed to rise in court cases against hospitals, feel experts.
"There are two reasons why the number of medical negligence cases are increasing. First, the awareness among people about their rights against medical negligence. And also in some cases, it is 'ambulance chasing lawyers'. Lawyers encourage patients to file case against the doctor or the hospital in civil or consumer court to earn compensation. Lawyers take a share in return," says Dr Ajay Kumar, former president, Indian Medical Association (IMA).
Lawyers who resort to ambulance-chasing tactics to extract hefty fees from patients has also resulted in rulings on several health-care centres in the country, he adds.
In one of its recent verdicts, the Delhi State Consumer Commission directed a hospital to pay a compensation of Rs one lakh each to families of two patients for carrying out 'unnecessary tests.' The commission said a patient was kept in the hospital for 10 days although the hospital did not have infrastructure to treat the disease.
In another case, a hospital was fined Rs 25,000 for detaining a patient for several hours over non-payment of medical bills. PTI
___________________________________________________________
This is the Mumbai Grapevine
___________________________________________________________
______Market_______
To get regularly updated NIFTY (NSE) quotes by email, join the NSEData
mailing list by sending an email to NSEData-subscribe@yahoogroups.com
To get regularly updated BSE quotes by email, join the BSEData mailing
list by sending an email to BSEData-subscribe@yahoogroups.com
Sensex: 8701.07, -1070.63
The sensex closed at 8701.07, down 1070.63
___________________________________________________________
This is the Mumbai Grapevine
___________________________________________________________
______Forex_______
1 U.S. $ = 49.800 INR
1 Japanese Yen = 0.5387 INR
1 British Pound = 77.708 INR
1 Canadian $ = 39.139 INR
1 Singapore $ = 32.937 INR
1 UAE Dirham = 13.558 INR
1 Saudi Arabian Riyal = 13.298 INR
1 Euro = 62.726 INR
1 Qatar Rial = 13.674 INR
___________________________________________________________
This is the Mumbai Grapevine
___________________________________________________________