INDIA INTELLIGENCE REPORT

 

Large-cap stocks most attractive for FIIs

What is India News Service,  Sunday, May 8, 2005, 2200 hrs IST

Foreign Institutional Investors seem to prefer large-cap stocks. The proportion of such holdings in FII portfolios has nearly doubled since 2003 (more). 
 

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Refineries to share kerosene, LPG under-recovery burden
The petroleum ministry is all set to distribute the under-recovery burden of oil marketing companies on cooking gas and kerosene in a 1:1:1 proportion among upstream companies, OMCs and both public and private refineries

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India to become new KPO hub: CII
India is all set to graduate from most preferred business process outsourcing (BPO) destination to a knowledge process outsourcing (KPO) destination.

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Not persuasive enough
Going purely by the record of evidence presented, the Comptroller and Auditor General of Indiadoes not quite make out a persuasive case of financial wrong-doing in the sale of Centaur Hotel properties belonging to the Government, as the CAG report strongly hints at.

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Power producers: Winds of change impart volatility
THE momentum seen in profit growth of power producers in 2003-04 has slackened. Changes such as the revamp of the legal framework, securitisation of dues and progress towards open access in distribution had contributed to the momentum leading to even an increase in investment interest in the sector.

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The tax is a burden on competitiveness
The fringe benefits tax (FBT) imposed on the employer, on the value of benefits provided to employees, has stirred a hornet\92s nest and caused consternation and resentment amongst corporates. India Inc is today on the path of globalisation and the world has recognised India as an emerging economic superpower. FBT, at 33.66%, would adversely affect the competitiveness of the corporate sector, burdened as it is with a direct disability of 13% vis-a-vis imports and a massive added disability by way of transaction cost of doing business. In the era of acute competition, companies can hardly afford to be extravagant in providing fringe benefits.

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China claims to be ahead of India in IT
China, whose software exports surged to $2.8 billion, has claimed that the scale of its software industry has surpassed that of India and South Korea. The scale of China's software industry in 2004 reached 230 billion yuan ($27.84 billion), up 2.8 times when compared to that of five years ago, surpassing India and South Korea, a senior official from the Chinese Ministry of Information Industry (MII) said.


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Low grain export prices cost Rs 1,608 cr in subsidy
By setting the export price of wheat at a level lower than the central issue price, the ministry of consumer affairs had disregarded a decision of a group of ministers set up for the purpose. This resulted in an additional subsidy burden of Rs 1,608.63 crore during November 2000 to February 2004, the Comptroller -and Auditor-General of India (CAG) said in a report tabled in Parliament last week.