NRK Sandesham

Fresh News

noreply@blogger.com (Pradeep Nair) — Thu, 23 Apr 2009 11:55:00 +0530

Smart City Kochi IT park suffered a setback after Smart City Dubai, which has signed a pact with the state government to develop the project, said it wanted the freehold land issue resolved.

Saving bank account will now earn interest on daily balances against the old practice of interest on minimum balance between 10th to last day of the month for whole month.

The dos and don'ts of official correspondence on e-mail

noreply@blogger.com (Pradeep Nair) — Wed, 22 Apr 2009 10:31:00 +0530

The other day I received the following e-mail from a client’s office in response to a request I had made for some information:

WE WILL SEND THE INFO BY 2MRW EVE

FYI

NXT MEET PREPONED ON 12

HOPE U R FREE 2 ATTND

RGDS

XYZ

Looking at it, I realised that our young and “with it” population, one of our greatest assets, need to polish their e-mail etiquette.

My guess is that several readers of this e-mail will find nothing wrong with it. There probably would not be anything very wrong had it been sent as a casual communication between friends. But in a business scenario, it is all wrong.

Capital mistakes

First things first. Look at the font. The entire message is typed in capital letters. In the world of e-mails, that amounts to shouting. A Westerner receiving such a mail would jump to the conclusion that the sender is very angry or irritated with him/her, and is not bothering to hide the fact.

James, one of my newer clients, took offence when my colleague, Sharada, wrote in the subject line “RESENDING” in caps. He told her politely that she needed to stay cool! Needless to say, the Indian correspondent was not being rude but was merely using the All Caps option for ease of typing.

So please take care to press the Shift key when you want to put in capital letters where grammar requires you to, but otherwise stick to the lower case.

No short forms pls

To get back to our sample e-mail: You will notice several abbreviations. So what, you might ask. I don’t even recommend this for SMS communication. In an e-mail, abbreviations such as 2mrw and U R are totally unprofessional and unacceptable. Treat e-mails just as you would any other business correspondence.

Remember you are making a lasting impression on people you may never meet in today’s virtual world. This attention to detail is as important as a live meeting where women business managers would not want to appear with lipstick smudges on their teeth, or men with spinach stuck in them!

Punctuation points

There are also no punctuation marks in the e-mail I have quoted. Perhaps the sender thought they were not necessary, considering it was “only” an e-mail. There are others who simply strew their e-mails with exclamation marks, question marks and even emoticons. Take this one, for example:

Hello!!

We have received the communication yesterday!!!!!!! Thanks!!!!!! Boss was happy. But one of the rods was bent in transit. What to do????

Both extremes are unprofessional and create a bad impression not only about you but also about the company you represent.

Grammar matters too. In the first e-mail that I quoted, there are a couple of grammatical and semantic mistakes. See if you can spot them.

Whether you are dealing with expats or Indian colleagues, ensure that your communication is framed in correct, official language. A well-written e-mail earns you plus points in your readers’ minds. Here are some general tips to follow while sending e-mails:

· If you are unsure of how to address a person, stick to being formal. Dear Mr/Ms X can’t be wrong. If you don’t know the gender, address the person by the full name, Eg. Dear Yasoshui Hanegawa or Dear Jeanne Ranay.

· Be crisp, concise and clear in your communication. Aside from an occasional friendly enquiry once you have established a level of comfort, keep to the point.

· Format your e-mail so that the lines are well-spaced and if you have to set down points, use bullets or even numbers.

· Do not put read or delivery receipts giving the reader the task of pressing the button; instead, you could request them to acknowledge receipt of the e-mail.

· Limit attachments. They clog the in-box and generally only serve to irritate recipients. Avoid them where possible.

· Where relevant, preserve the e-mail thread so that the readers can follow the sequence of developments.

· Don’t hit the Reply All button as a matter of course. Think whether your reply to an e-mail merits being sent to everyone who has been copied on it.

· Use the CC button judiciously. The other day, a colleague had to tell a co-worker that I need not be copied on every e-mail communication between them, as it would only clutter up my in-box and add unnecessarily to my load.

· Read your e-mail carefully for mistakes, check that you have put what you want to convey in the clearest possible way, and only then press the Send button.

· And finally, be prompt with your correspondence. The e-mail is sent in the expectation of a quick response. Make sure that the expectation is met. Even if you cannot sort out the problem, acknowledge the e-mail and let the sender know roughly when he or she should expect a response.

The drive and enthusiasm of the brave new generation is something the West envies. We also have the trump card of English knowledge which even China doesn’t possess. With a little polishing in e-etiquette, we could make the most of these advantages.

PS: “Preponed” is not accepted English usage. The correct word is “Advanced”. Also, the e-mail should have read “advanced to 12th” instead of “preponed on 12”.

Fresh News

noreply@blogger.com (Pradeep Nair) — Mon, 20 Apr 2009 17:07:00 +0530

Gold sales drop by 60% in Dubai in 2009.

Remittances from NRIs may decline 20 per cent -Planning Commision

Mahindra Holidays and Resorts India, part of the Mahindra Group, is planning major expansion in Kerala.

As many 19 Indian co-operative banks collapsed for the 12 months ended March 2009 against 44 American entities failing during the same period.

A hoax email is circulating among NRIs which claims that Government of India has imposed income tax of 5% on foreign income of NRIs. This is completely false and baseless.

A good number of rubber farmers and dealers in Kerala are tracking the prices of the commodity real time, helped by a service by the Rubber Board which through SMSes updates the farmers with rates in the global as well as domestic markets.

The World Investors’ Meet-Focus Kerala will be held here on July 24, 25 to propagate the concept of responsible investment in the state.

Almost 10,000 Indian and other non-European Union professionals will be eligible to claim compensation for hardship caused by the 2006 changes to immigration rules that were struck down by the London High Court.

NRIs hare finding it difficult to access the Right to Information with complaints about the cumbersome process of fee payment that includes a deposit fee of Rs 10 from abroad to the public authority.

Britain's Home Secretary Jacqui Smith announced a new visa regime for Indians and non-European Union students, as part of the Tier 4 points based rules that will make the visa process simpler, more objective and transparent for applicants and importantly prevent abuse of the immigration system.

Fun

noreply@blogger.com (Pradeep Nair) — Fri, 3 Apr 2009 11:09:00 +0530

Worried Employees

Employees of a Company are all worried. Some are roaming around. Some are in loud discussions during office time.....

Some Trainees, who had just joined, notice this and enquire about what happened to a senior employee, they ask, "What's going on?"

"Terrorists have kidnapped our Boss.

They're asking for Rs.1 Crores ransom, otherwise they're going to douse him with petrol and set him on fire.

We're going from desk to desk, taking up a collection."

One Trainee asks, "How much is everyone contributing, on average?

"About 1 litre."

Secret of Success

A young man asked an old rich man how he made his money.

The old guy fingered his worsted wool vest and said, "Well, son, it was 1932, the depth of the Great Depression. I was down to my last nickel. I invested that nickel in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold the apple for ten cents.

The next morning, I invested those ten cents in two apples. I spent the entire day polishing them and sold them at 5:00 pm for 20 cents. I continued this system for a month, by the end of which I'd accumulated a fortune of $1.37.”

“Then what happened”, the young man became excited.

Old man replied “Then my wife's father died and left us two million dollars."

Top News

noreply@blogger.com (Pradeep Nair) — Fri, 3 Apr 2009 11:06:00 +0530

India's software exports slowed down, those from Kerala grew 43 percent.

Kerala is planning three schools for children of NRKs (Trivandrum, Kochi, Malappuram ).

Kerala to set up a welfare fund for people settled here from other states.

The coconut productivity in Kerala is expected to go up. Central Government sanctioned a huge amount for the same.

Malappuram district has the highest number of emigrants from Kerala followed by Trivandrum - Centre for Development Studies.

Kerala is set to have a Lok Sabha polls on April 16 two days after Vishu.

India ranks second in the world in medical tourism after Thailand.

Indians have formed 15 percent of America's foreign student population, the largest, since 2001.

US NRIs are wealthiest among all communities in USA and face least violent crime as per a new study.

NRIs remitted a record US$ 45 billion in 2008 to India, highest in the world and expected to slow down - World Bank.

The Reserve Bank of India said the global financial crisis has not resulted in reverse migration from the Arabian Gulf.

France introduces new visa rules for Indian professionals.

A London School of Curry is being proposed by leaders of the 3.5 billion pound restaurant industry to overcome shortage of Indian cooks.

Some 100,000 Indians will return to India from US in the next three to five years, a move that will undermine tech innovation in America - one study.

Kerala is setting up the country's first Aqua Technology Park (ATP) at Aluva.

Alappuzha will soon get a "floating market" that will sell provisions to people living on the banks of the Vembanad Lake.

Kerala is aiming to double its power generation capacity.

America will need over 50,000 nurses to meet shortage. Kerala worried after Obama says no to foreign nurses.

Indian Institute of Architects has recommended that the State should increase the floor area ratio.

Investments

noreply@blogger.com (Pradeep Nair) — Fri, 3 Apr 2009 11:06:00 +0530

Stock Market

Global markets recovered on expectation that worst fears are already factored into the prices. There are some nascent signs of economic recovery as well. Market is the midst of a very strong bear market rally. Economic deterioration may have slowed down but it is still in declining phase and this may cause rally to suddenly reverse if bounceback runs ahead of fundamentals.

FII are again started purchasing Indian stocks on net basis which is positive. Valuations are attractive and downside risk is limited from these levels. Markets are showing considerable strength inspite of bad news. Negatives include - Possibility of major US auto companies going bankrupt, declining economic indicators especially from Europe and Japan & uncertainty over next government.

Insurance

SBI Life is now offering SBI Smart ULIP. A unit linked (stock market related) insurance plan. Here the scheme tries to give certain protection to the invested amount. This scheme offers NAV guarantee – Investors are guaranteed highest NAV (net asset value) of 168 months. Maturity is at 10th year and proceeds are tax free. Age bracket is 8 to 60 years. Minimum investment Rs.50,000/-. Premium Payment period is 3 or 5 years. Charges are lower.

Please contact your SBI branch or us for more details.

Mutual Fund

SBI Mutual Fund launched Gold Exchange Traded Scheme (GETS). It is very convenient way of investing in Gold. All you need is a valid Demat Account. Each unit of GETS will be roughly equal to 1 gram of Gold. It will be listed at stock exchange and after listing investors can buy and sell units of GETS at stock exchange freely. The advantage over physical gold is security, liquidity and convenience. Investors need not worry about purity of gold and can invest with minimum Rs 5000/-.

Please contact your SBI branch or us for more details.

Bank Deposits

As inflation is dropped below one percent - real rate of interest (interest rate minus inflation) is at high levels during recent times. If inflation remains below 1 percent chances of interest rates coming down substantially is higher. Going for fixed deposits quickly is advisable in such scenario.

How to Start Business in India

noreply@blogger.com (Pradeep Nair) — Fri, 3 Apr 2009 11:06:00 +0530

NRIs and PIOs (Person of Indian Origin) find it difficult to start business in India and those who start often fail in the venture. Here are some basic steps required by NRIs for this -

1. If you are a foreign citizen then get an OCI (Overseas Citizenship of India) Card that puts you on par with an Indian as far as business and tax matters are concerned. NRIs (Indian Citizens) do not require this card.

2. Get a PAN or Permanent Account Number card issued by the income-tax department. Since you plan to go into business in India, you will eventually file your income-tax returns annually.

3. Choose a Business Partner in India. It makes things much easier for you if you are not planning to stay back in India for doing business. You will identify and select your partners on the basis of their track record, honesty and other personal attributes. The reason of failure for most NRI businesses is choosing a relative or close friend as business partner for emotional reasons. When the business collapses, you have lost not only your money but also a priceless relationship.

4. Choose a Proper Business Entity. A simple partnership is a viable takeoff for your venture although it has some pitfalls. All it takes is to draw up the agreement between you and your partner(s) and register on a legal, stamp paper and it takes just a few days to complete this simple formality. When your turnover exceeds four million rupees, you need the services of a qualified accountant to audit your accounts and file your tax returns. Limited liability companies take a lot of time to get off the ground and it is very expensive/troublesome to maintain. You can also consider new form of entity – Limited Liability Partnership.

5. Once you take all these steps, you are - at last! - ready to launch into business. Of course, you have decided the area in which you are going to engage in business. So your firm should become a member of the different business organizations looking after this sector in addition to the local chamber of commerce.

6. Many NRIs have ventured into exports from India as they help in marketing through their contacts. All export/import business must be registered with the Director General of Foreign Trade. The application form requires a bank account number and a letter from the bank plus various details of partners/directors. The registration takes about two to three weeks.

7. Getting proper legal/accounting guidance is very important. Check whether your business require other approvals (like environment/pollution).

8. Control expenses at all levels – if possible start business in your own premises, hire minimum workers, use outsourcing judicially.

9. Establish & maintain good relationship with government officials, political leaders, chartered accountants, bankers etc.

10. Visit following websites for Kerala specific information –

http://www.pppinindia.com/states_kerala.asp

http://www.kerala.gov.in/

Fraud with Stolen Mobile Phone

noreply@blogger.com (Pradeep Nair) — Thu, 2 Apr 2009 12:03:00 +0530

A lady has changed her habit of how she lists her names in her cell phone directory after her handbag was stolen. Her handbag, which contained her cell phone, credit card, purse, etc.., was stolen.

Twenty minutes later she called her husband, from a pay telephone telling him what had happened. Her husband said, 'I have just received your text message asking about our pin number and I have replied a little while ago.'

When they rushed down to the bank, the staff told them all the money was already withdrawn. The thief had actually used the stolen cell phone to text her husband listed in the directory and got hold of their pin number.

Within twenty minutes he had withdrawn all the money from their bank account.

So whenever sensitive information is being asked for through text messages, confirm by calling back.

Fresh News

noreply@blogger.com (Pradeep Nair) — Wed, 1 Apr 2009 12:45:00 +0530

Kerala is mulling establishment of three schools in the state, at Thiruvananthapuram, Kochi and Malappuram to cater to children of non-residents.

Asian Lite, a newspaper for the British-Asian community is short-listed for the 'How-Do Media Awards', one of the largest industry accolades in Britain.

India ranks second in the world in medical tourism after Thailand, even though it spends less than 1.2 percent of GDP on its health sector.

Indians have formed 15 percent of America's foreign student population, the largest, since 2001.

Vikram Sunderam executive chef at Rasika, an Indian cuisine restaurant in Washington DC, is one of the nominees in the 'Best Chefs of America' category for the biggest US food awards.

US NRIs are wealthiest among all communities in USA and face least violent crime as per a new study.

NRIs remitted a record US$ 45 billion in 2008 to India, highest in the world and expected to slow down - World Bank.

The Reserve Bank of India said the global financial crisis has not resulted in reverse migration from the Arabian Gulf nor is there a slower flow of funds from NRIs in the Mid East or North America.

France introduces new visa rules for Indian professionals.

A London School of Curry is being proposed by leaders of the 3.5 billion pound restaurant industry to overcome shortage of Indian cooks.

Some 100,000 Indians will return to India from US in the next three to five years, a move that will undermine tech innovation in America - one study.

India's election to cost more than US presidential poll.

The Indian Cabinet approved the establishment of the Overseas Indian Centre in Abu Dhabi.

Fresh News

noreply@blogger.com (Pradeep Nair) — Tue, 31 Mar 2009 12:54:00 +0530

While India's overall software exports have slowed down on account of the global slowdown, those from Kerala grew 43.41 percent.

The Supreme Court today upheld Kerala government's decision to allot 28000 acres of forest land to tribals for cultivation.

Actress Asin plans to unwind and re-energize herself during a week-long break in the hills of Kerala.

Indian Institute of Architects has recommended that the State increase the floor area ratio, as in Singapore and New York.

Security strengthened at 3 international airports in Kerala after information regarding a possible LTTE terrorist attack.

Kerala is targeting Russian and Swedish tourists to beat the downturn feared this year, the government said.

How to Start Business in India for NRIs/PIOs

noreply@blogger.com (Pradeep Nair) — Sat, 28 Mar 2009 11:44:00 +0530

Many NRI's will tell you that it is in fact a nightmare for NRI's to do business in India. Many NRI's have burnt their fingers in their ventures in India. Doing Business in India is tough for an NRI or a PIO who is used to smooth ride in developed world, where it is relatively easy to do business. The problem becomes compounded when an NRI does not find seek proper legal help before venturing into a business in India.

However, if an NRI ventures in a planned and methodical manner, under proper legal guidance, he or she can succeed. The following are some of the points an NRI should keep in mind before starting any business in India:

First, get a PIO or Person of Indian Origin Card (if you are a PIO, NRI do not require a PIO card) that puts you on a par with an Indian as far as business and tax matters are concerned. Among other benefits, a PIO has visa-free entry for 15 years and allows you to engage in business and own property, like any Indian.

Second, get a PAN or Permanent Account Number card issued by the income-tax department. Any person - NRI or Indian - making an investment of over Rs.50,000 is required to quote his/her PAN number. This also applies to purchases of over Rs.50,000. Since you plan to go into business in India, you will eventually file your income-tax returns annually. So you need a PAN card that is also a very useful identification document because it has your photo on it and you can show it in many places where you wish to be identified as an Indian - and not overcharged as an NRI!

Third, Choose a Business Partner in India. Obviously, it is impossible for you to go into business on your own unless you want to move to India. If not, you need partners for your proposed venture. You will identify and select your partners on the basis of their track record, integrity and other personal attributes. Be careful of the single and most common pitfall of going into business with your relatives and close friends on the basis of your family relations or friendship. A great majority of NRI business ventures have come to grief because of this 'emotional' alliance. When the business collapses, you have lost not only your money but also a precious relationship.

Four, Choose a Proper Business Entity. A simple partnership is a viable takeoff for your venture although it has some pitfalls. All it takes is a lawyer to draw up the agreement between you and your partner(s) and register on a legal, stamp paper of Rs.100 and it takes just a few days to complete this simple formality. When your turnover exceeds four million rupees, you need the services of a qualified accountant to audit your accounts and file your tax returns. Limited liability companies take a lot of time to get off the ground. You need a lawyer to register the name of your company called a 'private limited company'. This involves paying a small fee and suggesting at least three proposed names. It takes about a week for the Registrar of Companies to inform you which of the three proposed names is available. On deciding its name, the lawyer prepares its memorandum and articles of association and files them with the appropriate fees depending on value of the share capital. It takes at least one month to carry out all these registration of company formalities. These 'private limited companies' are regulated under a host of 'company laws' that cover most organizational and accounting matters from writing the minutes of every board meeting to filing of its annual returns to the working of company directors to the format of their balance sheets. There are rules and regulations all the way during the operations of this company and if you want to close down this limited liability company, you must again go to the lawyer/accountant and it can take up to eight or ten years to obtain the permission of the High Court for winding up the company. In addition to the court fees, there are lawyers' fees to be borne by the directors. No wonder NRIs shy away from getting into business in India, especially in private limited liability companies.

Five, once you take all these steps, you are - at last! - ready to launch into business. Of course, you have decided the area in which you are going to engage in business. So your company should become a member of the different business organizations looking after this sector in addition to the local chamber of commerce.

Many NRIs have ventured into exports from India as they help in marketing through their contacts. All export/impost business must be registered with the Director General of Foreign Trade. The application form requires a bank account number and a letter from the bank plus various details of partners/directors. The registration takes about two to three weeks.

Seven, getting roper legal guidance is very important. In starting a business once should not be 'penny wise and pound fool.'

India tops remittances in 2008, fall predicted in 2009: World Bank

noreply@blogger.com (Pradeep Nair) — Wed, 25 Mar 2009 13:59:00 +0530

With migrant workers facing job losses, anti-migrant sentiment and even violence in the deepening global financial crisis, World Bank researchers predict remittances will fall to $290 billion in 2009, from last year's high of $305 billion.

Remittances flowing to developing countries from Russia, South Africa, Malaysia and India are "especially vulnerable to the rolling economic crisis", says the Bank's revised Migration and Development Brief.

With a total of $45 billion, India was the top recipient of remittances in 2008. China came next with $34 billion followed by Mexico ($26 billion), Philippines ($18 billion) and Poland ($11 billion).

But even with a drop of between five and eight percent, remittances will still outstrip private capital flows, expected to fall by half in 2009, and official development aid, typically around $100 billion, the bank said.

Remittance flows will stay "resilient" because many countries have a well-established "stock" of migrants who are unlikely to leave their adopted countries.

They will continue to send money home, even if they have to reduce the amount they send, says economist Dilip Ratha, who leads the World Bank's Migration and Remittances team.

Although newspapers are reporting a large number of migrants returning home, migrant workers are still moving to destination countries, although at a slower pace. They, too, will add to the flow of remittances, says Ratha.

Ratha's team predicts remittances will amount to about 1.8 percent of GDP for developing countries in 2009, a slight drop from 1.9 percent of GDP in 2008.

However, considering that officially recorded remittances registered double-digit annual growth in the past few years, the expected fall will cause hardships in many poor countries, says the Bank's Brief.

Ratha says employment of foreign-born workers in the US is holding steady in wholesale and retail and going up in the restaurant and hotel sector, though their employment in construction has fallen faster than that of native born workers, based on new US Bureau of Labour Statistics data.

"Migrant workers are more flexible. They are cheaper. They work harder and they don't insist on all the right employment conditions. They don't ask for too much. And I think there is an additional reason - a lot of workers that have dropped out of the payroll officially continue working off the books."

Fresh News

noreply@blogger.com (Pradeep Nair) — Wed, 18 Mar 2009 11:23:00 +0530

Kerala, known for its marine products, is setting up the country's first Aqua Technology Park (ATP) at Aluva this year.

Alappuzha will soon get a "floating market" that will sell provisions to people living on the banks of the Vembanad lake.

The State Government has set a vision to free the state from the menace of rabies by 2015.

More than 25 lakh women descended on the Kerala capital for the annual 'pongala' ritual at Attukala Devi Temple.

Kerala is aiming to double its power generation capacity.

A hi-tech astronomical gallery will soon come up at the Regional Science Centre and Planetarium Calicut, the first of its kind in the country.

Around 2000 housewives in Kerala have come together to demand from the government a fixed salary and old-age pension for domestic chores.

World Bank predicts the global economy and global trade would both shrink this year for the first time since World War II.

America will need over 50,000 nurses to meet the shortage. Kerala worried after Obama says no to foreign nurses.

Kerala's annual elephant race which was held in Guruvayur drew in huge crowds again.

Fresh News

noreply@blogger.com (Pradeep Nair) — Thu, 5 Mar 2009 13:09:00 +0530

Government in Kerala would set up a welfare fund for people settled here from other states, making it the first such state.

Kerala Government has decided to seek national pilgrim centre status for the famous Attukal Bhagavathi temple Trivandrum.

The coconut productivity in Kerala is expected to go up substantially with the Centre sanctioning an amount of Rs 2275 crore for three years for cutting diseased and senile coconut palms and for replanting new palms.

Malappuram district has the highest number of emigrants from Kerala followed by Trivandrum - Centre for Development Studies.

Kerala will showcase its IT infrastructure, primarily its IT parks, at the CeBIT 2009 event in Germany from March 3.

Kerala govt. will gift mobile phones to 40000 police officers in the state.

Kerala is set to have a single phase Lok Sabha polls on April 16 two days after Vishu.

Indian rupee has breached the 52 mark

noreply@blogger.com (Pradeep Nair) — Wed, 4 Mar 2009 10:11:00 +0530

The Indian rupee has breached the 52 mark versus the dollar. Today, the rupee had opened at 51.9 per dollar. It is now currently trading at 52.16 per dollar.

The rupee did make an initial recovery to hit an intraday high of 51.53 against dollar showing signs of strength. However, the rally was short-lived and it surpassed the 52 mark versus dollar for the first time ever. The recovery in the early trade was in conjuction with Asian peers. However, a steep fall in equity markets in the late trade brought dollar buyers back in the market. Also, Non Deliverable Forward market turned into buying mode. The dealers say there are no dollar sellers in the market and the market is looking forward to RBI.

Pradeep Khanna, Director & Head – FX Trading, HSBC India feels that he is little surprised by the timing of the move on the rupee. He adds that emerging economies especially India where growth stories don’t look to be extremely exciting in the near future will face pressure on its domestic currency & one can see 53-54 levels going ahead.

Sharmila Whelan, Senior Economist, CLSA says that the downside risk for rupee has increased since all the bad fiscal news has come out. A huge rally in dollar across the board is seen as investor’s eye safety into the dollar. She expects rupee to touch 54 this month.

INDIAN RUPEE SEEN AT 51.25 PER DOLLAR BY END-JUNE

noreply@blogger.com (Pradeep Nair) — Tue, 3 Mar 2009 16:07:00 +0530

INDIAN RUPEE SEEN AT 51.25 PER DOLLAR BY END-JUNE, FIRMING TO 50 BY END-SEPT (FROM 51.72 NOW) - REUTERS POLL POLL-Indian rupee seen slowly recovering from record lows

* Indian rupee seen firming to 51.25/dlr end June; 50 by Sept

* Eight of 10 analysts see rupee off record lows by Sept

* Narrowing trade and current account deficits to help rupee

MUMBAI, March 3 (Reuters) - The Indian rupee may fall to fresh record lows beyond 52 per dollar in coming months, but is expected to steady by mid-2009 and recover to 50 by the end of September, a Reuters poll showed.

The partially convertible rupee has slumped to life lows as buyers desert it due to a falling stock market, foreign fund outflows and a deteriorating economic outlook as Asian exports collapse and domestic demand weakens.

The currency hit a record low of 52 on Monday, taking its losses so far in 2009 to more than 6 percent after falling 19.1 percent in 2008. By 0830 GMT on Tuesday, it was trading at

51.72/73 per dollar.

The median forecast was for it to be at 51.25 per dollar by mid-2009, firming back to 50 by end-September.

Only three of the 10 economists polled by Reuters see the rupee falling to new lows by the end of June, and only two see it weaker than 52 by end-September.

"We expect the rupee to recover from current levels due to a lower trade deficit and improving capital flows, especially from foreign direct investments and non-resident Indian remittances,"

said Shubhada Rao, chief economist at Yes Bank.

India's exports fell in annual terms for a fourth straight month in January as the global slowdown slashed demand for Asian goods, although the value of imports have also fallen sharply as commodity and energy prices drop.

January's trade deficit narrowed to $6.1 billion from $7.6 billion in December as imports dropped 18.2 percent.

For a graphic of India's and the rupee, please see https://customers.reuters.com/d/graphics/IN_RUP0209.jpg

Foreign flows have been a key driver of the rupee in recent years. Foreign funds sold a net $1.7 billon worth of shares in the first two months of 2009 as the global economic outlooked soured, after selling more than $13 billion in 2008.

In 2007, when the rupee rallied more than 12 percent, inflows were a record net $17.4 billion.

Analysts expecting further losses for the rupee said the extent of the economic slowdown will be key to currency moves.

The government estimates growth will slow to a six-year low of 7.1 percent in its 2008/09 fiscal year ending this month, and cool further in 2009/10, after three years of growth at or above

9 percent.

But many economists believe those forecasts are too optimistic, especially if global economic conditions continue to deteriorate.

"Our growth forecast is much lower than what the market is expecting. Our GDP forecast for next year is 4 percent, and so that has a profound impact on the capital flows into the stock market," said Sailesh Jha, Singapore-based senior regional economist at Barclays Capital.

Following are the forecasts for the dollar/rupee by end June and end September.

----------------------------------------------------------------

RESPONDENTS END-JUNE END-SEPT

----------------------------------------------------------------

BARCLAYS CAPITAL 56.00 56.00

BANK OF BARODA 53.00 50.00

UBS 52.50 50.00

HSBC 52.00 53.00

ABN AMRO BANK 51.50 51.00

DBS 51.00 50.00

YES BANK 49.50 48.00

NOMURA 49.00 48.00

STANDARD CHARTERED 48.25 47.00

AXIS BANK 48.00 47.00

----------------------------------------------------------------

MEDIAN 51.25 50.00

AVERAGE 51.08 50.00

----------------------------------------------------------------

Investment Option - Gold

noreply@blogger.com (Pradeep Nair) — Tue, 3 Mar 2009 15:07:00 +0530

• Historically gold is one of the most popular investment options.

• People normally do not invest in gold for returns as it does not provide interest, dividend etc. People generally buy gold as a hedge/protection against crisis & uncertainties.

• Crisis/uncertainty mainly includes economic ones like stock market crash, inflation, bank failures, low interest rates etc. Crisis can also be political/social - like war, social unrest.

• Apart from these - gold prices are also decided by demand & supply, sale/purchase of gold reserves by various governments, strength of US Dollar

• Since 1968 the price of gold on the open market has ranged widely, from a high of $850/oz in 1980, to a low of $253/oz in 1999. Present price is around $975/oz while some analysts predicting $1030 level.

• Gold prices can move in both direction and it is not generally bought to gain from value appreciation. For example gold fell from 850 Dollars to 253 Dollars from the year 1980 to 1999. It again crossed 850 $ in the year 2008 only. That means those who invested in Gold (in Dollars) in the year 1980 could recover their principal only in 2008.

• Investment in Gold can be made in physical form or in paper format. Gold Exchange Traded Fund (ETF) is now a days more popular among investors. Gold can also be purchased from select branches of SBI.

• During the times of economic stability price of gold will be about one half of that of platinum and during recession/crisis/uncertainties gold prices go above platinum prices. Recently we have seen the later situation.

• Acute power shortage in South Africa (major producer of Gold) is causing supply shortage and Governments are reluctant to sell their gold reserves.

• Current global recession, bank failures and uncertainty on economic outlook caused a new bull run in gold prices. Further movement of Gold will depend on success or failure of various government stimulus/bailout packages. Demand of gold from consumers is declining due to high prices and many consumers are selling gold to benefit from high prices.

Top News

noreply@blogger.com (Pradeep Nair) — Tue, 3 Mar 2009 15:07:00 +0530

• SBI is offering Home Loan at 8% for the first year of loan and then normal rates (8.5 to 9.25%) for remaining years of loan – SBI Happy Home offer.

• Citigroup, one of the largest banks in the world, with assets worth $1.95 trillion now values less than the State Bank of India (SBI), India's largest Bank.

• Britain will implement new immigration restrictions so existing vacancies can first be offered to local workers.

• NRI investments in India-based properties dropped by over 50% this season - Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm.

• Canada will admit more foreign students and fewer foreign workers this year.

• 95 percent of Gulf NRIs do not save money and return to India empty handed -one survey by the Pravasi Bandhu Welfare Trust Dubai

• US will restrict firms receiving government bailouts from hiring foreign workers including Indians, if they are replacing American workers.

• A PAN centre was inaugurated in Oman that will enable NRIs in Gulf to procure a Permanent Account Number as well as tax-related services.

• Many banks in Switzerland may be forced to reveal their traditional secret accounts.

• The number of failed American banks is climbing, with eight banks going belly up in February alone, pushing the total bank failures in this year (2009) to 14.

• Kerala Government announces package for NRKs who lost jobs - loans at lower interest rates and Rs 100-crore for starting business ventures.

• Dubai Smartcity Company has informed that their Kochi project is on track.

• The Kerala government plans to invest Rs.10000 crore in the IT sector in the near future. Kerala to have 10 IT parks by 2011

• Shri O.P. Bhatt, Chairman, State Bank of India, has been conferred the “Best Executive 2008” award by financial magazine Asiamoney.

• SBI launches biometric ATM machines & Mobile Banking in domestic mobile phones. Mobile banking offers money transfer, bill payments etc.

• Kerala will face a severe drought this summer due to drop in rainfall.

• SBI now has 4 branches and 7 ATMs in Singapore and they offer full retail banking facilities to customers.

Investments

noreply@blogger.com (Pradeep Nair) — Tue, 3 Mar 2009 15:07:00 +0530

Stock Market

Stock market is again showing declining trend after 2 months of relative stability. Global situation especially in USA is turning from bad to worse. Risk aversion is on increase again as FIIs are selling on net basis continuously for last 10 days. Domestic insurance companies get lot of funds during these ‘tax saving’ months (Feb/March) and they are net buyers for last many days but it is not enough to arrest the fall in stock prices.

General elections will be held in April/May and the next trigger will be the new government formation. Until then stock market direction will depend on US market which is expected to be subdued.

Real Estate

Real estate market is expected to correct slowly over next few years and is certainly not suited for short term speculators and persons with high debt levels. Real estate is a highly illiquid market and correction in prices will be a very slow process unlike share market where prices gets adjusted to the reality very quickly.

Dollar

The Indian rupee is at a record low of almost Rs 51.90 per dollar on the back of dollar buying by oil companies & FII selling in stock market. Many experts are now predicting further fall in coming days as FII selling is continuing unabated. UAE Dirham also touched important Rs 14 mark. NRIs who were waiting for better dollar rates can start sending money.

Insurance/Mutual Fund

March is the time when investors normally buy tax saving mutual fund and life insurance schemes. Here investors can opt for SBI Mutual Fund’s SBI Taxgain scheme as tax saving cum investment option. This scheme has a decent track record and is good even for those persons who need not save any tax.

Bank Deposits

SBI has increase NRI Deposit rates while NRO deposit rates will be reduced from 9th of this month by almost half percentage. NRIs are again advised to opt for fixed deposits as quickly as possible as interest rates are expected to go down from here.

MONEY QUOTES

noreply@blogger.com (Pradeep Nair) — Tue, 3 Mar 2009 15:07:00 +0530

· We live by the Golden Rule. Those who have the gold make the rules. ~Buzzie Bavasi

· Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair. ~Sam Ewing

· The waste of money cures itself, for soon there is no more to waste. ~M.W. Harrison

· There's no money in poetry, but then there's no poetry in money, either. ~Robert Graves

· The safe way to double your money is to fold it over once and put it in your pocket. ~Frank Hubbard

· A bank is a place that will lend you money if you can prove that you don't need it. ~Bob Hope

· The economy depends about as much on economists as the weather does on weather forecasters. ~Jean-Paul Kauffmann

· Money often costs too much. ~Ralph Waldo Emerson

· A dollar picked up in the road is more satisfaction to us than the 99 which we had to work for, and the money won in the stock market snuggles into our hearts in the same way. ~Mark Twain

· A rich man is nothing but a poor man with money. ~W.C. Fields

· Inflation is taxation without legislation. ~Milton Friedman

· Business is the art of extracting money from another man's pocket without resorting to violence. ~Max Amsterdam

· “Treasury Secretary has resigned. He didn't want to resign, but there wasn't any money left in the treasury so he's got nothing to do." -Jay Leno

· "The FBI has issued a warning that terrorists may be planning a spectacular attack intended to damage our economy. Well I have news for them; they are a little too late " -Jay Leno

Indian Rupee is at Record Lows

noreply@blogger.com (Pradeep Nair) — Mon, 2 Mar 2009 17:15:00 +0530

The Indian rupee is at a record low of Rs 51.80 per dollar on the back of dollar buying by oil companies. Most other Asian currencies fell too on global risk aversion.

Citi has said the rupee may touch touch Rs 54 per dollar levels in the next two to four weeks. “Customers are still on the short side,” it said. “The rupee will move along with other Asian currencies as risk aversion is still there. Any RBI intervention will smooth the movement but cannot stop the rupee slide.”

Standard Chartered said it expects rate cuts to happen soon.

“There is little fresh supply coming from the market and with global equity markets weakening outflows, it is likely to put pressure on the rupee,” said HDFC.

Fresh News

noreply@blogger.com (Pradeep Nair) — Thu, 26 Feb 2009 13:07:00 +0530

Some 10,000 Indians have been laid off in Gulf, especially workers from Kerala and other South Indian states, most of whom worked on construction projects.

The US financial crisis has hit the valuation of its banks. Citigroup, one of the largest banks in the world, with assets worth $1.95 trillion or Rs 9,72,075 crore, now values less than the State Bank of India (SBI), India's largest Bank.

From April on, Britain will implement new immigration restrictions on professionals from India and other non-EU countries so existing vacancies can first be offered to local workers.

Kerala bagged 11 National Tourism Awards for 2007-08 instituted by the Union Government.

NRI investments in India-based properties dropped by over 50% this season, with the four metro cities and “NRI-heavy” mirco markets in states like Gujarat and Kerala being among the worst hit- Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm.

The Kerala Government on Wednesday asked the Centre not to sign the Asean agreement, holding that many conditions in it will have adverse impact on the agriculture sector in the State.

Canadian immigration minister Jason Kenney, on a visit to India last month, said Canada will admit more foreign students and fewer foreign workers this year.

Nikkitasha Marwaha 19, of Chicago USA, a communications student, was chosen Miss India Worldwide at a pageant in Durban South Africa.

A survey by the Pravasi Bandhu Welfare Trust, a Dubai based non governmental organisation, working to better the lives of Indian workers in the GCC shows that 95 percent do not save money and return to India empty handed even after working abroad for a decade. Just 5 percent of the Indian labour force including white collar workers bring back enough money to live comfortably back home.

The American Recovery and Reinvestment Act, better known as the stimulus bill that has been passed by the US Congress includes restricting firms receiving government bailouts from hiring foreign workers including Indians, through the skilled worker H1B visa programme, if they are replacing American workers.

Immigration citizenship minister Jason Kenney, at a meeting of an all-party parliamentary committee on citizenship in Toronto, hinted at the possibility of reducing the number of immigrants admitted to the country this year because of the economic crisis.

A PAN centre was inaugurated by India's Ambassador to Oman, Anil Wadhawa that will enable NRIs and PIOs living in Gulf countries to procure a Permanent Account Number as well as tax-related services.

According to statistics of the Non Resident Keralites Affairs Department, in 2007 over 800,000 Keralites returned to India and 2008 figures are expected to be more disappointing.

A US NRI group of professionals has introduced the India Health Card, a prepaid, reloadable card that lets NRIs fund healthcare needs of family and friends back home, instead of wiring them money for doctor's bills.

NRI realty investments drop by over 50%

noreply@blogger.com (Pradeep Nair) — Thu, 26 Feb 2009 11:06:00 +0530

The result: NRI investments in India-based properties dropped by over 50% this season, with the four metro cities and “NRI-heavy” mirco markets in states like Gujarat and Kerala being among the worst hit.

“Compared to last year, the drop in NRI interest in India-based properties has been almost 50% in all sectors. The metros showed a sharp drop in demand, largely owing to the steep prices”, says Sanjay Dutt, CEO - business, Jones Lang LaSalle Meghraj (JLLM), a global real-estate consultancy firm. “Very few luxury homes have been sold as compared to last year”, he adds.

At a time when the domestic demand in micro-markets in Tier-I, II and III cities began to slump in the third quarter of this financial year, the developers were hopeful that the demand from the NRIs will pep up the sentiments in the realty markets.

However, the global slowdown and the resulting slump froze the bullish sentiments among NRIs. “Though a far-from-spectacular number of transactions have indeed taken place this season, generalised job insecurity and a desire to conserve available cash among IT employees abroad has curbed investment demand for high-end properties, Mr Dutt said adding that the response was “significantly muted” from the NRI community this season.

The sharp corrections seen in some larger cities has also led to an “acute wait-and-watch attitude among NRIs who - just like everyone else - are now very price sensitive”, he explained. - ET

Fresh News

noreply@blogger.com (Pradeep Nair) — Tue, 24 Feb 2009 12:11:00 +0530

Switzerland's unprecedented decision to let UBS AG hand US tax authorities clients' details risks damaging a banking industry that relies on a pledge of confidentiality to win business, legal scholars said.

A Group of UK-based NRIs, urged Punjab state government to appoint a caretaker to supervise properties owned by NRIs in the state. NRIs find certain miscreants trying to grab their properties by using illegal means.

The number of failed American banks are climbing, with eight entities going belly up in February alone, pushing the total bank failures in this year (2009) to 14.

Kerala Government will ensure disbursal of loans at lower interest rates by the Kerala Financial Corporation to returning NRIs.

Inkel, a company set up to develop infrastructure in the State through public-private partnership, has drawn up a proposal to set up “construction solutions and services parks” in four cities – Thiruvananthapuram, Kochi, Kozhikode and Thrissur.

Kerala's three international airports at Kochi, Kozhikode and Thiruvananthapuram were put on high alert after an anonymous bomb threat call.

State Bank of India has now come out with yet another rate cut for all categories of home loans. For a period of one year from now, the interest rate will be fixed at 8 per cent irrespective of the loan amount and after one year rate will be reset to the card rate at time of sanction.

Fresh News

noreply@blogger.com (Pradeep Nair) — Sat, 21 Feb 2009 11:47:00 +0530

Usually, gold is inversely related to the dollar and inflation. However, despite inflation falling across the globe and dollar strengthening against the Euro, gold is scaling new highs. Gold surged close to the $1,000 mark .

Moody’s Economy.com today said the Reserve Bank of India (RBI) could cut interest rates next week as the high fiscal deficit was limiting the Centre’s ability to step up spending and boost economic activity.

UBS, the Swiss banking behemoth, will pay a $780 million penalty to the US Justice Department and disclose the names of many secret account holders as part of an agreement to avoid prosecution, in a major change from traditional client secrecy.

Kerala will help Malayalees returning from the Gulf due to recession with a Rs 100-crore package for starting business ventures.

Kerala provided for Rs 10 crore for the non-resident department to help those returning after working for two years in the Gulf.

The government today said there is no milk shortage in country except Kerala, but assured that the deficit would be met.

Kerala budget made regional allocations include a massive Rs 1,500-crore package for the development of the Malabar region in North Kerala.