[Grapevine] For Jan 8, 1999

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___Headlines___
(Details below)

News:
 Renaming stayed
 5 hurt in blaze at Matunga camp
 Kotla episode not to affect BJP-Sena ties, says Mahajan - PTI
 Cong flays Sena leaders' applauding of pitch-digging - PTI
 Thackeray thanks sainiks for digging Kotla pitch
 Shiv Sena threatens to disrupt Delhi-Lahore bus service
 Three gangsters shot dead in police encounters
 Bankmen to strike on Jan 12, banks refuse wage rise over 8 pc
 VSNL, MTNL join hands to explore business abroad
 Cricket: Aussie cricket stars' evidence goes before Pak inquiry
 Volleyball: India beat Pakistan in five set thriller 


Markets:
 Bull run continues; ends just below 3400                        

Metals, Forex (Now featuring the Euro!) and Weather below.


______News_______
(From various agencies)

 Renaming stayed
   The Aurangabad bench of the Mumbai High Court has stayed the renaming
   of the Osmanabad city as Dharashiv till January 12. Acting on a
   public interest litigation, Justice S B Mhase of the high court
   issued notices to various state departments. The petitioner Syed
   Khalil Saif contended before the court that the state government had
   no powers to change the name with the Gazetter of 1972.
  
 5 hurt in blaze at Matunga camp
   Five people were injured in a blaze which erupted after a gas
   cylinder exploded in the late afternoon at Matunga labour camp. The
   accident took place in the Milind cooperative housing society area,
   according to fire-brigade sources.
  

 Kotla episode not to affect BJP-Sena ties, says Mahajan
      
  New Delhi, Jan 8 (PTI) The pitch digging episode at the Ferozeshah
  Kotla stadium here would not lead to breaking up of alliance between
  BJP and Shiv Sena in Maharashtra, Information and Broadcasting
  minister Pramod Mahajan said today.

  'The alliance is 14 years old and we have fought five Lok Sabha
  elections together,' he said, adding 'such episodes do not result in
  breaking of alliances'.

  Admitting that the BJP differed with its alliance partner on several
  issues, he said the understanding between the party was on two major
  issues 'philosophy of Hindutva and anti-Congressism'.

  'I feel the best way to deal with Pakistan is to defeat them, whether
  at war or in sports', he told reporters after opening the 'World Press
  Photo Exhibition' here.

  Mahajan, however, said politics must not be brought into sports. 
  about Gujarat violence, the minister asked 'What is there to say? The
  prime minister is going to visit (the affected areas)'.

  Asked about Congress President Sonia Gandhi's visit to Dangs district
  today, he said 'the opposition has to be there first'.

  The minister said a final decision on Direct-To-Home (DTH) telecast
  would be taken within a month.


 Cong flays Sena leaders' applauding of pitch-digging
      
  New Delhi, Jan 8 (PTI) Congress today criticised Shiv Sena leaders for
  applauding the digging of pitch at Ferozeshah Kotla grounds, venue of
  the first cricket test between India and Pakistan, and demanded that
  the government bring to book those responsible for the incident.

  Party spokesman Ajit Jogi told reporters here that the incident was
  ''sheer vandalism'' and expressed the hope that the government would
  provide necessary protection to the players, the ground as well as
  sports-loving people of the country.

  Stating that sports and politics should not be mixed, he said even
  if Shiv Sena chief Bal Thackeray was found violating the law, action
  should be taken against him.


 Thackeray thanks sainiks for digging Kotla pitch
      
  Mumbai, Jan 8 (PTI) Shiv Sena chief Bal Thackeray has 'thanked' four
  sainiks for their 'patriotism' shown by digging the Ferozeshah Kotla
  pitch in Delhi, venue of the first cricket test match between India
  and Pakistan, and warned the authorities not to take any action
  against them.

  In a statement to Sena mouthpiece 'Saamna' today about Wednesday
  night's incident, Thackeray said, 'this is the kind of patriotism and
  courage that will stand us in good stead while tackling calamities
  faced by the nation.'

  The Sena chief, who returned home from hospital here yesterday, also
  cautioned the police against taking any measures to punish the
  'patriotic' band of sainiks who dug up the Kotla pitch.

  'In this country terrorists are going unpunished and, therefore,
  patriotic Shiv Sainiks should not be touched. Police are free to
  provide security to those whom they want, but sainiks should not be
  treated on par with Pakistan-sponsored terrorists,' he said.


 Shiv Sena threatens to disrupt Delhi-Lahore bus service
      
  New Delhi, Jan 8 (PTI) After disrupting the screening of the
  controversial film 'Fire' and digging the cricket pitch at the
  Ferozeshah Kotla stadium here, Shiv Sena today trained its guns on the
  proposed bus service between Delhi and Lahore saying it will resort to
  all means to stop it.

  'We will not allow any regular bus service between India and Pakistan
  till the latter stops aiding and abetting terrorist activities in the
  country,' the party's Delhi unit chief Jai Bhagwan Goel told PTI after
  a 'dry run' of the bus was flagged off from the capital this morning.

  Goel said sainiks will resort to 'all possible means' including
  violence to prevent the bus service from taking off.

  'We will welcome the Pakistani cricket team with open arms and will
  not oppose the bus service if Pakistan stops its undesirable
  activities against India forthwith,' Goel said.

  The bus service scheduled to start 'anytime after January 20', would
  traverse the 650-km journey between Delhi and Lahore in 14 hours at a
  fare of about Rs 600.

  Shiv sainiks on wednesday night extensively damaged the cricket pitch
  at Feroze shah Kotla stadium here, venue of the upcoming test match
  between India and Pakistan, protesting the government's decision to go
  ahead with the matches despite warnings against it by their supremo
  Balasaheb Thackeray.

  Sena activists had earlier attacked regal theatre here screening
  'Fire', Deepa Mehta's controversial film on lesbian relationship,
  forcing the government to refer the film back to the censor board
  for re-assessment.


 Three gangsters shot dead in police encounters
      
  Mumbai, Jan 8 (PTI) Three gangsters were shot dead and two constables
  injured in two separate police encounters in the metropolis since last
  night.

  According to police, a gangster, owing allegiance to the Manchekar
  gang, was shot dead at Pantnagar at Ghatkopar in north-east Mumbai
  early today.

  Acting on a tip-off that the gangster, Jaywant Ajit Rathod would be
  arriving there, the police laid a trap and on spotting the gangster
  ordered him to surrender.

  Rathod, however, fired five rounds at the police, injuring two
  constables, Dattaram Atsul, who received a bullet injury on his
  stomach and Vishnu Pavaskar who was injured on the arm after a bullet
  grazed him. The police immediately retaliated by opening fire at the
  accused, police said.

  While Rathod, who was rushed to the Rajawadi hospital, was declared
  dead before admission, the two constables were admitted to Sion
  hospital, where the condition of Atsul was stated to be serious,
  police added.

  In a separate incident, two gangsters of the Chhota Shakeel gang were
  killed in a police encounter at Andheri in north-west Mumbai
  yesterday.

  The accused, Javed Sheikh (24) and Hassan Lala (24) who had arrived on
  the scene to extort money were ordered to surrender by the police. The
  duo, however, opened fire forcing the police to retaliate. The injured
  gangsters were rushed to the Cooper hospital, where they were declared
  dead before admission.


 Bankmen to strike on Jan 12, banks refuse wage rise over 8 pc
      
  Mumbai, Jan 8 (PTI) Nearly a million bank workers and officers across
  the country would resort to a strike on January 12 as scheduled as the
  Indian Banks' Association (IBA) today remained firm that the banking
  industry cannot afford a wage increase of more than eight per cent.

  Another round of the seventh bipartite wage negotiations between bank
  unions unsuccessful in breaking the stalement as the association made
  it clear that banks cannot set aside more than Rs 1,000 crore required
  to meet an eight per cent wage increase.

  United forum of bank unions, representing officers and employees in
  public, private and foreign banks, said they stuck to their strike
  call as IBA remained adamant on their final offer of overall wage rise
  equivalent to eight per cent increase in establishment expenses as on
  March 31, 1997 with prospective effect.

  The forum, in a statement here, said IBA attached to its final offer,
  made in November 1998, unacceptable issues like retrenchment,
  voluntary retirement scheme and wage freeze.

  Both the workmen and officers' organisations have rejected the IBA's
  offer, the forum, which is demanding a 20 per cent wage increase with
  effect from November 1997, said.

  IBA told representatives of bank unions that there was actually a need
  for wage freeze if not a symbolic wage cut in the context of the grim
  Indian economic scenario and the downturn.


 VSNL, MTNL join hands to explore business abroad
      
  New Delhi, Jan 8 (PTI) Blue chip public sector companies Mahanagar
  Telecom Nigam Ltd. (MTNL) and Videsh Sanchar Nigam Ltd. (VSNL) today
  joined hands to collectively explore business opportunities in India
  and abroad, but ruled out any cross holding of equity.

  Signing a memorandum of understanding, VSNL chief Amitab Kumar and
  MTNL chief S Rajagopalan said they planned to leverage from each
  other's strengths and jointly look for opportunities in India and
  abroad as well as diversify into new ventures.

  Ruling out any cross holding of equity Rajagoplan said the MoU marked
  the beginning of a new era of cooperation between the two navaratna
  companies and would give a new synergy in the ability to deliver value
  to customers.

  Chief executives of both the companies said they were 'actively
  considering' proposals to buy back their shares in the larger interest
  of investors, but scotched reports that there was any move to buy
  shares of other organisation for the purpose of cross holding of
  equity.

  Kumar said the time was ripe for strong Indian companies to enter the
  regional and global markets since telecom sector was being thrown open
  all over the world.

  ToU would be a landmark in the efforts to create powerful vehicles for
  competing in new situation, especially with convergence
  telecommunications, information technology and broadcasting, he said.


 Aussie cricket stars' evidence goes before Pak inquiry
       
  Melbourne, Jan 8 AFP: Australian test cricketers Mark Waugh and Shane
  Warne denied here today that they fabricated claims former Pakistani
  captain Salim Malik had offered them 200,000 U.S. Dollars to throw a
  match.

  Both also told a Pakistani judicial inquiry into match-rigging
  allegations how they sold information to an Indian bookmaker about
  pitch and weather information and Waugh confessed the relationship has
  lasted longer than he previously admitted.

  In a statement to the inquiry, Waugh said he had told a news
  conference in the Australian city of Adelaide last month that he spoke
  to the bookmaker he knew only as 'John' on 'a handful' of occasions.

  'However, after giving this more thought I now believe that I spoke to
  John on approximately 10 occasions,' Waugh said in a statement in
  which he admitted he had been in contact with John for about five
  months until February, 1995.

  Waugh, currently ranked the world's fifth top-scoring batsman, and
  Warne, the world's most successful spin bowler, were subjected to
  streneous cross-examination by lawyers for the Pakistan cricket board
  and Malik.

  The inquiry, running in Pakistan for several months, convened here
  following revelations the pair had been fined by Australian cricket
  board after admitting they had accepted money from the bookmaker
  during the 1994 Singer Cup series in Sri Lanka.

 The fines were hushed up until last month.


  India beat Pakistan in five set thriller 
 
       Dubai, Jan 8 PTI: Defending champions India beat Pakistan in a
thrilling five setter to storm into the finals of the fourth Rashid
International Volleyball championships at the Al Shabab stadium here
late last night. 

India won 15-6, 8-15, 10-15, 15-3, 15-13 but not before facing some
anxious moments in the final and deciding set when the two sides fought
neck and neck in a do or die battle. 

India, who won on all three previous occasions, will meet Ukraine in the
finals of the fourth edition tonight. 

Ukraine, by far the best team in the tournament winning all their
matches so far, beat Sweden in the other semifinal in straight sets
15-8, 15-7, 15-11. 

Skipper Surjit Singh, who was given the man of the match award, played a
captain's game hit powerful smashes time and again to the delight of the
mainly Indian spectators. 

The 18-year-old Subba Rao, the tallest player in the Indian team, and
Sanker Ganesh teamed up very well to back their skipper and played an
excellent game to turn the match in India's favour.

India had beaten Pakistan in straight sets at the Bangkok Asian games
but Pakistan played a inspired game last night. 

There was a hush in the stadium after India lost the second and third
games. The Indians, who won the first set easily at 15-6, however, came
back strongly to level the games to take the match into the decider
before clinching the nail-biting affair to their supporters' relief.


___________________________________________________________
               This is the Mumbai Grapevine 
___________________________________________________________


______Market_______

 To get today's complete NIFTY (the NSE index) listing send an e-mail to
                    get-nse@mumbai-central.com


 Bull run continues; ends just below 3400 
         
    Mumbai--Jan 8--The bull run in Indian stocks continued today with
the Bombay Stock Exchange's (BSE) key Sensex topping the key 3400 mark,
dealers said.
    However, some of its gains were trimmed by late profit-taking, they
added.

    The Sensex ended at 3397.84, up 98.75 points, or 2.99%, from its
previous close. The Sensex had touched a high of 3400.97 points during
the day.
    The Sensex rose 192.16 points, or 6%, during the last 2 trading days
while it rose nearly 11% since Jan 1.
    The National Stock Exchange's S&P CNX Nifty ended at 984.65, up
29.95 points, or 3.13%.
    The rise in shares today was mainly on speculative buying prompted
by continued foreign fund buying in select blue chips.
    Dealers said foreign funds had been on the sidelines since the
beginning of the new year, but seeing the continuous bull run they
entered the market to buy blue chips as they did not want to miss good
price levels.
    Buying was mainly concentrated in big blue chips like Reliance and
State Bank, which ended sharply higher today.
    Other Sensex heavyweights too, like Hindustan Lever, Telco, Tata Tea
and Mahindra & Mahindra, gained momentum.
    ITC was up but below its day's high as the stock reacted to the
company's denial of market rumors that the cigarette major would
increase its product prices in the near term .
    Dealers said that high interest charges were likely to be paid over 
the weekend to carry forward long positions to the next trading account,
which begins Monday.
    "The trend is definitely bullish because, despite today being the
last day of the trading account on the BSE, the indices have ended
sharply higher," a dealer said.
    The last trading account day on the BSE usually witnesses unwinding
of long positions.
    Dealers said the market is now banking on continued demand from
foreign funds.

    Below is a summary of market moves today:
    * Foreign funds were said to have been buyers in most blue chips
    * BFL Software ended sharply higher after it said its net profit in
      Oct-Dec, the third quarter of fiscal 1998-99, was up 122% from a
      year earlier 
    * Software shares like Satyam Computer, Pentafour Software were back 
      on the traders list as they ended higher.

CLOSES
Bombay Stock Exchange:           : National Stock Exchange:
Sensex: 3397.84, up 98.75 (2.99%): NSE50 (Nifty): 984.65, up 29.95
(3.13%)
VITAL STATISTICS
BSE Sensitive Index closings     : NSE50 closings
High: 4630.54 (Sep 12, 1994)     : High: 1292.95 (Aug 6, 1997)
Jan 1, 1998 close: 3694.62       : Jan 1, 1998 close: 1081.20
Dec 31, 1998 close: 3055.41      : Dec 31, 1998 close: 884.25
1998 High: 4280.96 (Apr 21)      : 1998 High: 1212.75 (Apr 21)
1998 Low : 2764.16 (Oct 20)      : 1998 Low : 808.70 (Oct 20)

--  Shankar Ramakrishnan, Bridge News
        


______Metals_______

  GOLD (Rs 10 gm)   
    Mumbai     4360     (+10)   
    London ($/Oz.)     289.7     (+2.4)   
   
  SILVER (Rs Kg)   
    Mumbai     7675     (+90)   
    London ($/Oz.)     5.33     (+0.19)   
 

___________________________________________________________
               This is the Mumbai Grapevine 
___________________________________________________________


______Forex_______

  1 DMark  = 25.31427    INR    
  1 FFranc  = 7.547606    INR    
  1 U.K. Pound  = 69.84506    INR    
  1 US $  = 42.490    INR    
  1 Yen  = 0.379748    INR    
  1 Singapore $ = 25.35 INR
  1 UAE Dirham = 11.57 INR
  1 Euro = 50.22 INR


______Weather_______
(From CNN)

Current weather conditions   8 p.m. (local), Jan. 8          
smoky      
Temp: 23 C, 75 F      
Rel. Humidity: 60%               
Wind: W at 14 kph(9 mph)        


 Four-day forecast             

Fri.        sunny        HIGH    26 C  79 F        LOW    18 C  66 F
Sat.        sunny        HIGH    29 C  85 F        LOW    15 C  59 F
Sun.        sunny        HIGH    31 C  88 F        LOW    15 C  59 F
Mon.        sunny        HIGH    31 C  88 F        LOW    15 C  59
F      

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               This is the Mumbai Grapevine 
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