Today’s match would provide the Bangalore the ideal opportunity to come back in the tournament. A win would take them to third position in the points tally, just behind Delhi Daredevils and Kolkata Knight Riders.

The Chinnaswamy stadium offers a flat batting track; it would be ideally suited for the Royal Challenger Bangalore team.  On the other hand, Kings XI Punjab team, have staged many upsets in away matches. They have defeated some of the big-wigs of the tournament on their home soil.

Kings XI Punjab could breathe a sigh of relief as they are expecting their Captain, batsmen, wicket keeper, coach, mentor to be back in the playing XI. Adam Gilchrist lost out on previous four matches due to hamstring injuries. They could also have Ryan Harris, the Australia fast bowler who was an ever-present in their campaign last season, back in the squad after the West Indies Test series.

Azhar  Mahmood would be the key player of the match. After getting his visa issue resolved, he would be looking to entertain the Bangalore crowd with his display of bat and bowl.

His superb knock of 33 runs on 14 deliveries against the Bangalore team provided some crucial confidence boost to the ailing Kings XI Punjab.

His performance with the ball in the match against Chennai Super Kings was instrumental in the win for Kings XI Punjab.

Stats and trivia

•Royal Challengers have won five of their last six matches against Kings XI, after losing their first three. At home, they have a 2-1 record, winning in 2010 and 2011, and losing in 2008.

•Shaun Marsh is the leading run-scorer in matches between these two teams, with 224 runs in six innings at an average of 56 and a strike rate of 133.33. Gayle has played three innings against Kings XI, with scores of 107 (49 balls), 0 (7) and 87 (56).

•Piyush Chawla has taken 14 wickets against Royal Challengers at an average of 15.92 and an economy rate of 6.75. Only three bowlers have taken more wickets against an opposition team in the IPL.

Teams:

Royal Challengers Bangalore squad

 C Gayle, M Agarwal, V Kohli, AB de Villiers, S Tiwary, A McDonald, D Vettori, V Kumar, A Pathan, Z Khan, KP Appanna

Kings XI Punjab squad

N Saini, M Singh, S Marsh, D Hussey, A Mahmood, P Dogra, A Nayar, R Harris, P Chawla, P Kumar, P Awana

"Though we have been able to limit the adverse impact of the slowdown in our economy, this year's performance has been disappointing. But it is also a fact that in any cross-country comparison, India still remains among the front-runners in economic growth."

At the same time, Mukherjee also said the Indian economy was at the cusp of a revival, as agriculture and services have continued to grow at a decent pace. It was industrial performance that was acting as a drag.

"While we do not have the aggregate figures for the last quarter of 2011-12, numerous indicators pertaining to this period suggest that the economy is now turning around. There are signs of recovery in coal, fertiliser, cement and electricity sectors."

Among the proposals, the finance minister assured that he would cut subsidies to no more that 2 percent of GDP, and that the policy now would to directly transfer such doles to farmers, based on the recommendations of the Nandan Nilekani report.

He also assured that a network necessary for a uniform pan-India goods and services tax (GST), covering federal and state levies, would be ready by August this year and that the process will be expedited to introduce it as soon as possible.

He said the government was also examining the recommendations of a parliament panel on the Direct Tax Code and that this regime will be introduced soon.

The finance minister said it was the government's objective to reform and simplify norms governing capital markets, in a bid to enthuse and improve the investment climate in the country.

Mukherjee said as India enters the 12th Five Year Plan, beginning April 1, the focus of his government would be on five key areas:

-Framing policies that trigger domestic demand recovery

-Ensuring rapid rise in private investment

-Removing bottlenecks in agriculture, energy, transport, coal, power and national highways

-Addressing malnutrition

-Finding ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption

1) Modernization of Railways: Most of Indian railway infrastructure was built during the British rule in the country and has outlived its utility to say the least. India now needs complete up-gradation of railway’s communication system and centralized train motoring system. Sam Pitroda has pegged the total expenses for railway modernization roadmap at Rs.8 lakh crore, over the next 5 years. The big question – how will government arrange for such a huge sum, though gradually?

2) Implementation of Tax Reforms: The top-most priority at the Centre should be fast implementation of the two main tax reforms – Direct Tax Code (DTC) and the Goods and Service Tax (GST) – that has been on the back-burner since last two years.

In fact, prompt implementation of GST in itself is likely to add around 1%-1.5% to GDP growth. It would also result in moderation of rates, simplification of laws and better compliance.

3) Start Fiscal Consolidation: With the election season come to a draw, its high time that the government withdraw some of the highly populist measures played as a part of its vote bank politics.

The gross fiscal deficit in the 2011-12 at 5.5% of GDP is unlikely to meet the government’s fiscal projection of 4.6%, in the back drop of faltering economic growth and skewed tax revenue collection. The only possibility of a bailout in the new fiscal year could be windfall gains from auction of 2G or 4G telecom licenses.

4) Align Personal Tax slabs to DTC thresholds: Common man automatically comes under the radar when we speak about personal tax slabs; it goes without saying that the expectations of an aam-aadmiis almost always skewed towards increase in tax exemption limits, as a relief from high inflation eating into their wealth.

This year should be no different – Pranab Mukherjee is expected to align the personal tax slabs in this budget to proposed DTC thresholds, to narrow down the differences in the structure and swift carry over to the new direct tax law. We can expect the minimum income limit not subject to tax to be raised to Rs.2 lakh from the prevailing Rs.1.9 lakh threshold.

5) Deregulation of Diesel prices: The government has de-regulated petrol prices in the past, but it still provides subsidies on other fuel products such as diesel and kerosene oil to enable the common man to have access to these basic necessities at affordable prices.

The under-recoveries on the sale of price-controlled fuels for FY12 has left a hole in the exchequer’s pocket to the tune of almost Rs.97,313 crore up to December 2011, as per a report. Moreover, under-recoveries from subsidized diesel sales has ballooned to more than Rs.56,700 crore in the first nine months of FY12.

Sam Pitroda has pegged the total expenses for railway modernization roadmap at Rs. 8 lakh crore, over the next 5 years. The big question – how will government arrange for such a huge sum, though gradually?

Expectedly, the Union Minister of Railways started off his budget speech by saying that he is not satisfied with the railway safety standards at the moment; and wants to target zero deaths due to railway accidents. In order to promote enhanced safety standards, the Minister has proposed to set up an independent safety authority functioning in line with international standards.

Key Highlights of the Railways Budget 2012:

1) Railways seek Rs.2.5 lakh crore as budgetary support from government.

2) A huge sum of Rs.14 lakh crore required in next 10 years.

3) Annual Plan Outlay for FY13 at Rs.60,100 crore.

4) Bring down Operating Ratio from 95% to 84.9% in FY13.

5) All level crossings to be eliminated in the next 5 years.

6) Modernization of 19000 km tracks over next 5 years.

7) Allocation of Rs.39110 crore to modernize signaling system.

8) Speed of passenger trains to increase to 160 km/hour.

9) Proposal for 725 km new lines and 800 km gauge conversion.

10) To develop 100 stations via PPP route in next 5 years.

11) Proposes 1100 km of railway lines to be electrified.

12) Installation of 321 escalators at important stations.

13) Book a meal, SMS facilities for e-tickets.

14) Introduction of alternate train accommodation for waitlisted passengers.

15) Disabled-friendly designed coaches with 2 attendants.

16) To introduce 75 new express trains, 21 passenger trains.

17) Proposed 137 services new sub-urban services in Mumbai, Chennai & Kolkata.

18) Platform ticket would now cost Rs.5.

19) Hike in Passenger fares:

Nevertheless, this is a classic case of ancient Indian laws directly affecting the cost of higher education. Although an educational institution accredited by the Association to Advance Collegiate Schools of Business (AACSB) and offering a degree, ISB is not exempt from service tax because the one-year MBA — which is its primary offering — is not recognised by All India Council of Technical Education (AICTE) or any other government body. As a result, paying fees to ISB is considered a commercial transaction chargeable with service tax.

The Indian Institutes of Management (IIMs) have in he freedom to not charge service tax for their two-year and one-year programmes. Now yesterday’s budget has put all recognised higher education out of the purview of service tax by placing it in the negative list of items exempt from service tax. That leaves only the unrecognised programmes, which will either have to wrest an exemption out of the government or charge students the additional tax.

Only 8% of India's households have invested in equities, directly or indirectly through mutual funds, as opposed to 42% in the US and 14% in China.

The details of the scheme, which the government hopes will seed equity culture in India and reduce volatility, will be announced later. The scheme could allow investors to book profit even when the initial investment is locked for three years. For instance, if after one year 50,000 worth of shares bought by an investor appreciates to Rs 80,000, he will have the option to sell shares worth 30,000 and pocket the gain after paying the appropriate capital gains tax.

In his speech in Lok Sabha that started promptly at 11 am, the finance minister said the growth of the Indian economy, estimated at 6.9 per cent during the current fiscal year was disappointing but that the road ahead appeared reassuring.

At the same time, Mukherjee also said the Indian economy was at the cusp of a revival, as agriculture and services have continued to grow at a decent pace. It was industrial performance that was acting as a drag.

"While we do not have the aggregate figures for the last quarter of 2011-12, numerous indicators pertaining to this period suggest that the economy is now turning around. There are signs of recovery in coal, fertiliser, cement and electricity sectors."

Among the proposals, the finance minister assured that he would cut subsidies to no more that 2 percent of GDP, and that the policy now would to directly transfer such doles to farmers, based on the recommendations of the Nandan Nilekani report.

He also assured that a network necessary for a uniform pan-India goods and services tax (GST), covering federal and state levies, would be ready by August this year and that the process will be expedited to introduce it as soon as possible.

He said the government was also examining the recommendations of a parliament panel on the Direct Tax Code and that this regime will be introduced soon.

The finance minister said it was the government's objective to reform and simplify norms governing capital markets, in a bid to enthuse and improve the investment climate in the country.

Mukherjee said as India enters the 12th Five Year Plan, beginning April 1, the focus of his government would be on five key areas:

• -Framing policies that trigger domestic demand recovery
• -Ensuring rapid rise in private investment
• -Removing bottlenecks in agriculture, energy, transport, coal, power and national highways
• -Addressing malnutrition

-Finding ways to expedite implementation of decision, prompt delivery and good governance with transparency, while curbing black money and corruption

Typically, financial planners recommend setting aside an amount equal to six months' expenses in a fixed deposit or a liquid mutual fund. "Now, however, there is a reason to direct these funds to savings bank account instead," says Prerana Salaskar-Apte, chartered accountant and certified financial planner, The Tipping Point. For, the Budget proposes to leave savings bank interest up to Rs 10,000 per year out of the tax net.

"This, combined with the post-deregulation savings rate of 6-7% offered by some banks, makes savings bank account a good avenue for parking short-term funds meant for contingency needs," Prerana adds.

"There is a separate list of exemptions apart from the negative list of services that is completely out of the tax ambit. The government can issue a notification later to keep any service in or out of the exemption list," a finance ministry official said.

The most direct way by which the union budget affects the common man is through changes in taxations - both direct and indirect. Direct taxation impact involves changes in income tax exemption and deduction. For instance, in this year's budget the finance minister may raise the income tax exemption limit to Rs. 3 L from the existing Rs.1.8 L.

This could have a long-term impact on the spending and saving patterns of individuals. Another proposal that is expected is an increased tax deduction on housing loans. This is eagerly expected by both the builder community as well as people looking to purchase their homes as this would be an added incentive to look forward to.

Apart from such direct benefits, there are many indirect ways in which the budget affects the common man. A hike in duties of consumer goods can affect the budget planning of every middle class household. Similarly changes in subsidies of cooking gas and other fuels will decrease the disposable income of middle class families.

An increase in service tax and sales tax would increase a plethora of expenses ranging from mobile bills, insurance premium, property purchase, courier expenses, credit card bills etc. These are awaited with a certain degree of anticipation as the budget draws closer. Changes in excise duties and sales tax can make a product dearer or cheaper. The budget forecast suggests that duties on diesel cars as well as gadgets like laptop will increase which can eventually lead to impact in purchase decisions.

IMPACT ON BUSINESS

The business classes in the society are the top groups who have much to look forward in the budget. It is a practice among top business houses to release a ‘wish list' in the pre-budget weeks stating the things they want to see in the forthcoming budget proposals.

The list may revolve around a variety of duty cuts, which they believe will boost their investment and demand. As of now, high on the wish list are various boosters to investment and the implementation of direct tax code, goods and services tax. The biggest fear is an expected increase in the rate of corporate tax or surcharges. An easing in direct taxation slabs will create surplus in the hands of businessmen, which may encourage them in further investments and thereby leading to more employment and betterment of the society. As governments increase or decrease allocations for certain sectors, businesses in those sectors will be affected.

For instance, an increased spending in infrastructure is expected, which will be a gain for the companies in that segment. Budget is eagerly looked upon by investors as well to review the tax rates on trading transactions in the stock market as well as foreign investments. Investor's budget expectation is the cutting down of security transaction tax - the tax applied to all transactions in the cash segment of the market which would make trading less expensive and there by boost the market.

Last year's budget proposal to allow foreign investors to invest in equity mutual funds was warmly welcomed in the markets as more foreign investments will make the market buoyant. But unfortunately the buoyancy did not last long due to the global economic slowdown. Many foreign investors became net sellers in the market.

DIRECT TAXES CODE

A direct tax code is expected to be finalised to come into effect by this year's budget which would have a direct impact on the salaried individual. There could be a reduction in the tax exemptions from Rs. 1,00,000 to Rs. 50,000 which will de-incentivize the salaried to invest more, though tax saving is not the only target while planning an investment. However whatever the outcome, we have to deal with it with a proper plan in place and as of now prep our wish lists and wait for the budget to unfold.

Steven Smith, however, was in no mood to give up without a fight and stuck a few lusty shots before perishing in the 17th over, caught by Duminy off Theron.

Mithun Manhas played a 22-run cameo towards the end but it proved to be too little too late.

Earlier, opting to bat, openers Parthiv Patel (24) and Shikhar Dhawan (16) ensured a quick start to Deccan innings, smashing Ashish Nehra for three fours to pick up 16 runs off the first over.

They duo stitched 39 runs off four overs for the opening stand before losing Dhawan.

Deccan received another blow 11 runs later when Patel was caught by Mithun Manhas at deep square-leg off Kumar.

White and Sangakkara shared 33 runs for the fourth wicket before the later was cleaned up by Sharma.

White, however, seemed in ominous form as he went about his business in style, notching up his first half century of the tournament in just 35 balls with the help of five boundaries and two huge sixes.

In Duminy, White got an able partner as the duo added massive 75 runs off just 38 deliveries for the fifth wicket to help Deccan post a decent total on the board.

White was the aggressor among the two and clobbered Sharma for a four and two consecutive sixes to pick up 19 runs off the 16th over.

After settling down, it was Duminy's turn to open up his arms and he did that perfectly, hitting Samules straight back over his head for a towering six.

But a ball later, Samuels got the prized scalp of White, caught by Alfonso Thomas at deep cover boundary as the batsman went for another huge one.

Ishant Jaggi remained unbeaten 10 along with Duminy.

However, the budget has failed to make any such major announcement. What the budget has done is some minor tweaks here are there.

Here are some changes from the budget that would impact you as an investor.

No Direct Tax Code for this year

Although the finance minister has said that DTC would be introduced as soon as possible, he was clear that it would not come into effect from FY 2013. Therefore, you can invest peacefully without worrying about whether the Securities Transaction Tax (STT) would be abolished, whether long term capital gains (LTCG) would be taxed, etc.

Income Tax

The budget has brought about some revisions to the income tax slabs for FY 2012-2013. Now no tax applicable upto Rs 2 lakh, Rs 2-5 lakh - 10 percent, Rs 5-10 lakh - 20 percent and above Rs 10 lakh - 30 percent Interest from saving accounts has also been made deductible upto Rs. 10,000. However, these are just minor changes and are much below expectations. In any case, this would put more money in your pocket, which means you can invest more!

Rajiv Gandhi Equity Savings Scheme

The budget has tried to encourage participation in equities by small investors by introducing a new tax break. A scheme called "Rajiv Gandhi Equity Savings Scheme" would be introduced, which would give 50% deduction in the tax on capital gain earned from investment of upto Rs. 50,000 in equities. Basically, you would need to pay a tax of 7.5% instead of 15% on short term capital gain for investment upto Rs. 50,000 made directly in equities. However, this benefit is available only if your income is less than Rs. 10 Lakhs per year.

Securities Transaction Tax (STT) Reduced

For delivery based transactions, the STT has been reduced from 0.125% to 0.100%. This would mean slightly lower transaction costs for you.

Disinvestment

The budget has set a target of raising Rs. 30,000 crores from the disinvestment in public sector undertakings. This is a large amount, so you can expect public issues of many PSUs in the market in the year 2012-2013.

IPO in Electronic Form

To encourage participation of people staying in rural and remote areas, it has been proposed that all Initial Public Offerings (IPOs) of more than Rs. 10 Crores would be done in electronic form. If you live outside of the large cities, you would benefit from this.

Tax Free Infrastructure Bonds

The total limit of tax free infrastructure bonds that can be issued by various financial institutions has been doubled to Rs. 60,000 Crores. This means you would have more opportunity to earn income that is tax free!

Increase in Service Tax and Excise Duty Rates

The rates for service tax and excise duty have been increased from 10% to 12%. So you can expect almost everything to cost slightly more - from small things like your electricity bill to large purchases like a refrigerator or a car.

The Punjab quicks bowled a tight spell. Praveen Kumar gave away just eight runs in four overs. Even Chris Gayle had laboured to just 21 off 19 balls.

Finally, the real Gayle showed up in the 10th over as he tore apart Piyush Chawla, Parvinder Awana and Abhishek Nayar.

Azhar Mahmood got rid of Gayle, this time Miller made no mistake as he judged the catch at mid-wicket. RCB could add just 32 off the next 28 balls.

Considering the pitches in the sub-continent are condemned as slow and batsmen-friendly with quality bowlers running for cover and fielders on a leather hunt, this is no mean achievement.

On Wednesday night, Pakistani all-rounder Azhar Mahmood, now a naturalised Briton, bowled Kings’s XI Punjab to victory over Royal Challengers Bangalore with his superb death-overs spell. His 4-0-20-3 fetched him the MOM award, his 17th in Twenty20 cricket. His teammate, India seamer Praveen Kumar, returned with best economy figures (4-0-8-0).

Hot, humid conditions are not ideal for bowlers and yet they have manfully soldiered on and turned in some outstanding performances to return with magical figures.

The most memorable spell came from South African fast bowler Dale Steyn (4-0-10-2) for Deccan Chargers against Mumbai Indians and he turned the match from a no-contest to a nail-biter, even though his side lost.

Bowling miserly and taking wickets at regular intervals, West Indian Sunil Narine of Kolkata Knight Riders has bamboozled the batsmen with a mystery ball. His spin mesmerised Kings XI Punjab and he had amazing figures of five for 19 in four overs. With 12 wickets from seven matches at an economy rate of 5.53, he has become a real match-winner.

Delhi's stand-out pacer, South African Morne Morkel, has been hustling batsmen on the flat Indian pitches with his pace, line and length to stay at the top of the bowling chart. Unrelenting to give away his purple cap, he has 19 wickets from 10 matches with an MOM award (4-0-19-2) against Chennai Super Kings.

IPL-V has been a paradise for left-arm spinners, who have won five MOM awards. Pawan Negi of the Delhi Daredevils has been the latest to impress after taking a four-wicket haul against the Rajasthan Royals Tuesday.

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"I cannot say anything. Congress party has already announced their opinion... He belongs to the Congress party. Congress party will decide. How can I say whether it is or not. I respect all political parties. I know my limitations. I don't cross limits," she said.

• on Friday on the Presidential election, said: "They
• (Congress) have their own choice. So I don't want to interfere."

Earlier, Congress spokesperson Renuka Chowdhury told reporters that "it will never be easy to leave Pranab da. He is such a valuable person for us in the party. His contribution to the party cannot be even measured. For him it will not seem to be fair...but he has such an active political mind. He is too involved and knows politics so well.

"So, well in a way if his name is doing the rounds, I have no authority to say that his name is also being discussed. If his candidature is being talked about, then he is very respected and valued guide for us."

Asked if she does not want to see Mukherjee as President, she said: "I want to see him in many posts. I am personally a big fan of him."

As her remarks created a flutter in political circles, Renuka sought to clarify saying her remarks have been completely misunderstood and decisions about Presidential candidature are not taken at her level.

Choudhury said it was unfortunate that her "genuine admiration" for a senior leader of the party has been distorted.

She said she had categorically said she was personally a "great fan" of Mukherjee and wished him that he grows from strength to strength.

Mamata Banerjee..?

Pranab Mukharji

your question goes here..?

your answer goes here...

"It (Presidential candidate) is not a decision that can be taken at my level," she said, clarifying her remarks.

With inputs from Onkar Singh

The BSE India Sensitive Index (SENSEX), or Sensex, slid 0.2 percent to 17,139.83 at 9:17 a.m. in Mumbai.
Prime Minister Manmohan Singh’s Congress Party failed to gain ground in Uttar Pradesh, India’s most-populous state, and will not play a role in forming its next administration. It was also behind in Punjab. Europe’s economy shrank 0.3 percent last quarter, the European Union’s statistics office said yesterday, and the central bank’s balance sheet surged to a record 3.02 trillion euros ($3.96 trillion) last week amid efforts to contain the region’s debt crisis.

“The upside in the markets is capped,” Ambareesh Baliga, chief operating officer at Way2Wealth Brokers Pvt., “Apart from the global cues, investors would now look ahead for the RBI’s policy and the budget.”
The Reserve Bank of India reviews interest rates on March 15, a day before Finance Minister Pranab Mukherjee presents the budget. The central bank cut on Jan. 24 the amount of deposits lenders need to set aside as reserves for the first time since 2009, seeking to ease a cash squeeze, and indicated it may cut interest rates if inflation continues to slow.

Positive state-poll results would have improved support for Singh, whose government is facing corruption charges and has failed to boost economic growth. Among Singh’s plans are opening the retail industry to companies such as Wal-Mart Stores Inc. (WMT), an initiative halted in December amid protests over likely job losses. The Supreme Court last month scrapped 122 cell-phone permits, whose sale in 2008 sparked India’s biggest corruption probe, and Singh failed to win passage in December of an anti- corruption bill.
The Sensex has risen 11 percent this year as foreign funds bought stocks after inflation eased to the slowest rate in two years and the rupee rallied from a record low, even as company profit-growth slowed and the outlook for economic growth dimmed. The gauge trades at 15.1 times estimated earnings, compared with 19.4 times at the end of 2010. The MSCI Emerging Markets (EEM) Index trades at 10.4 times.

Overseas investors bought a net 1.97 billion rupees ($39.5 million) of Indian equities on March 5, raising total investments this year to 373 billion rupees, according to the Securities & Exchange Board of India, the market regulator.
The S&P CNX Nifty (NIFTY) Index on the National Stock Exchange lost 0.3 percent to 5,204.70. The BSE 200 Index (BSE200) retreated 0.3 percent to 2,120.48.

India’s demand in December quarter (Q4) was 173 tonne down 44% from 298.6 in Q4 of 2010. Against this China’s Q4 demand was stagnant in Q4 at 190.9 against 190.3 in Q4FY10. This means fall in India’s demand mostly due to high prices has lead China to surpass India in the gold demand. 

India’s gold demand and imports took a further dipped in quarter ended December 2011 with total fourth quarter demand falling below China’s demand for gold. Hence china becomes top gold consumer for the first time. This was stated by the World Gold Council in its demand trend report released here today.

India’s demand in December quarter (Q4) was 173 tonne down 44% from 298.6 in Q4 of 2010. Against this China’s Q4 demand was stagnant in Q4 at 190.9 against 190.3 in Q4FY10. This means fall in India’s demand mostly due to high prices has lead China to surpass India in the gold demand. 

The government has postponed the budget in view of the Assembly elections in five states of Uttar Pradesh, Punjab, Uttarakhand, Goa and Manipur between January 30 and March 3.

The counting would take place on March 4 and the code of conduct will end on March 9. As March 10 and March 11 are
Saturday and Sunday, the Budget is likely to be presented in week beginning March 12.

The general budget is usually presented on the last day of February every year.

Mukherjee will hold discussions with various stakeholders during his annual pre-budget meetings beginning January 11.
The first meeting would be held with agriculturalists, followed by a series of interactions with sectoral experts, representatives, industry captains and economists over the next ten days to get their feedback and inputs for incorporating them in Budget 2012-13.

Mukherjee is slated to meet captains of industry on January 13, followed by trade union leaders on January 16.

Recalling the country's financial crisis in the 1990s, he added: "This is important to ensure that our growth process is not jeopardised and, equally important, our national sovereignty and self respect are not endangered."

He said the government "must ensure that the country does not go down that road once again", referring to the 1991 bailout of the country by the International Monetary Fund.

The Indian economy has hit headwinds in the last six months, with high inflation coupled with sharply lower growth forecast to be 7.0 percent by economists for this financial year -- low by recent standards.

The rupee has also fallen sharply this year and is at record lows against the dollar.

Singh also stressed the importance of the expensive task of modernising India's defence forces, something he described as "my most important task as prime minister.

"India's economic and energy security require this," he said.

 [RELATED-STORIES]

Vipin Sondhi, MD & CEO at JCB India said, “There are headwinds, there is no doubt there are headwinds. Commodity prices are at their highest levels. Interest rates have been raised 13 or 14 times. This is certainly affecting our projects.”

“Funding is available but not to the same extent as it was earlier. All this will cause headwinds. We expect growth for the next year to be 10 to 15 per cent, may be half of what is it in the current year.”

The $3.3-billion earthmoving and construction industry reported 30 per cent growth in 2010. But the figure is expected to fall to 15 per cent this year. Equipment finance companies say the key for the industry to recover is the execution of government projects.

[RELATED-STORIES]

Pratap Paode, CEO of Shriram Equipment Finance said, “We are very bullish on the infrastructure growth. It will definitely happen in the next 3 to 4 years and we may restore back to our growth rate of 25 to 30 per cent. If this does not happen, then we may again see industry stagnating, may be by up to Rs 20,000 crores.”

Industry experts say the interest rates are likely to decline by 2-3 per cent and the government is finally moving fast on large infrastructure projects. According to reports, the industry expects to grow 6-7 times in the next nine years to touch $23 billion.

Experts have always talked about the implementation of GST adding two per cent to the gross domestic product. Yet, states are bickering to arrive at a consensus on implementation.

Retail shares surged to new highs on Thursday and Friday in anticipation of the move. Swift reactions from the likes of Reliance Industries, Bharti and others suggest that some movement is better than no movement at all. Many retailers in India seem to be interested in a foreign partner to gain access to the technology and supply-chain processes. Hence, the enthusiasm is high.

However, if states do not agree on opening up the sector simultaneously, it could cause distress to existing companies in the space. For example, if a foreign company buys 51 per cent in Pantaloon Retail, which is one of the largest multi-brand retailer, it would put the company in a spot. This is because some states may quickly allow FDI and some may stall it completely. So most of these companies would have to split their operation between FDI-compliant states and non-compliant. This could just make things difficult to say the least for existing companies. So shareholders and investors need to hold on to their exuberance.  

It is true that benefits far outweigh costs of organised retail. Over the years, wholesale prices go down like in US, the biggest market for organised retail.

The best ally the government has at this juncture on the issue is the Reserve Bank of India. RBI governor D Subbarao made a statement in favour of the policy and said that it would help bring down inflation and improve the supply chain infrastructure in the country.

If any debate happens in the Parliament, expect the government to use inflation as a shield to justify opening up the sector. The dramatic fall in the value of the rupee is also pushing the government to act swiftly. Inflation is a far bigger enemy of a politician than anything else. With elections in key states next year, the government appears keen to taken on inflation. For now, it makes sense to fight inflation than resist reforms.

Worries about Europe's debt crisis flared up again Friday after Italy was forced to pay 7.8 per cent to borrow for two years at a debt auction. It's another sign that investors are growing increasingly hesitant to lend to Europe's third-largest economy.

The Dow Jones industrial average rose 84 points, or 0.8 per cent, to 11,337 as of 10 a.m. Eastern. Bank of America Corp led the way, up 2.9 per cent. JPMorgan Chase & Co rose 2.6 per cent.

The Dow remains down 3.7 per cent for the week, putting the average on track for its worst week since late September.

The S&P 500 index is up 8 points, or 0.8 per cent, to 1,170. The Nasdaq composite index rose 13 points, or 0.5 per cent, to 2,473.

The euro slipped to $1.32 and is now down 2 per cent this week against the dollar. The drop puts the euro at its lowest level since Oct. 6.

Higher interest rates on government debt backed by Italy, Spain and other European countries have rattled stock markets in recent weeks. When borrowing costs climb above the 7 per cent threshold, it deepens fears about a government's ability to manage its debts. Greece, Ireland and Portugal were forced to seek financial lifelines when their interest rates crossed the same mark.

Markets have been battered this week as governments in Europe and the U.S. struggle to tackle their debts. The Dow lost 248 points on Monday as a Congressional committee failed to reach a deal to cut federal budget deficits. It plunged another 236 points Wednesday after investors balked at buying German government debt.

In morning trading, AT&T's stock was up half of 1 per cent. The company said Thursday that it's budgeting to pay $4 billion in break-up fees if its attempted $39 billion takeover of T-Mobile USA from Deutsche Telekom falls apart.

The Friday after Thanksgiving marks the start of the holiday shopping season and is busiest day of the year for retailers. A record number of people are expected to show up at stores this weekend to take advantage of deep discounts. The National Retail Federation estimates that 152 million people will go shopping over the three days starting on Friday. That would be an increase of 10 per cent from last year.

Trading will end at 1 p.m. Eastern time. U.S. markets were closed on Thursday for the Thanksgiving holiday.

Internet major Softbank may initially buy up to 5 per cent stake in Bharti Airtel. The sale will lead to an infusion of around $1.5 billion into the company. It may increase stake in the Indian firm later.

The deal may also include a separate joint venture between the two companies, which could see Bharti hiving off all its broadband operations including 3G services.

However, both companies have denied any talks on the deal.

The deal will be beneficial to Bharti in two ways: It will bring in Softbank's expertise in the brodband space and fresh infusion of equity will help Bharti in paring its debt, which it took for the Zain acquistion.

Bharti’s debts stand at around $12 billion. The weakening of the rupee has made dollar debts more expensive. Interestingly, Bharti at the group level has already started a joint venture with Softbank for internet gaming and other applications.

The JV will be headed by chairman Sunil Mittal's son Kavin. However, soon the partnership between the two companies may grow bigger.

The European single currency plunged to $1.3226, the lowest point since October 4. It later stood at $1.3270, down from $1.3347 in New York late Thursday.

"As confidence that a solution to this crisis might be forthcoming and that the euro will survive has evaporated, (it is) no surprise that international investors have chosen to ditch the euro in favour of more safe-haven currencies," said Howard Wheeldon, strategist at brokers BGC Capital.

"The reality is that as those charged with leading the eurozone out of this crisis appear to have moved further apart, it seems to me that short of a miracle the euro will just keep heading south."

In midday trade, London's FTSE 100 index slid 0.39 per cent to 5,107.68 points, Frankfurt's DAX 30 lost 0.35 per cent to 5,411.35 points and in Paris the CAC 40 shed 0.47 per cent to 2,809.12.

The Milan stock market plunged 1.91 per cent after Italy paid record rates in a 10-billion euro ($13.2-billion) bond sale and as the EU kept up pressure over the country's debt on Friday.

The rate on bonds due in six months soared to 6.504 per cent and the two-year rate hit 7.814 per cent, levels considered dangerously high for the long term given Italy's massive 1.9 trillion euros public debt mountain.

Traders remained nervous at the end of a week that saw investors shun a bond sale in Germany, the eurozone's paymaster and strongest economy, stoking fears the whole euro project is unravelling.

Asian equity markets meanwhile mostly closed lower on Friday as Thursday's meeting between the eurozone's three biggest economies -- France, Germany and Italy -- only highlighted their differences on finding a solution to the region's debt problems.

New York markets were closed for Thanksgiving on Thursday, when Germany and France promised to reform EU governing treaties even though Chancellor Angela Merkel stood by her refusal to back eurobonds or widen the ECB's role.

France had urged Berlin to allow the European Central Bank to become a lender of last resort, with the firepower to protect debt-ridden eurozone members from falling victim to the bond markets.

After the crisis talks, French President Nicolas Sarkozy, Merkel and Italy's new Prime Minister Mario Monti said they would move to reform EU governing treaties but insisted that all agreed that there would be no wider ECB role.

Sentiment was also hit after Moody's ratings agency slashed Hungary's sovereign rating to junk status, one day after rival Fitch had cut Portugal's credit standing to junk.

In addition, dealers speculated that China was scaling back its purchases of euros.

"Large euro purchases by the Chinese have been supporting the troubled currency this year, although this may have been scaled back somewhat," said Spreadex trader Jordan Lambert.

"This, coinciding with more sovereign downgrades, poor German debt demand and limited communication from EU ministers, is causing risk averse sentiment towards the euro," Lambert added.

[RELATED-STORIES]

Predictably, government owned banks got the short-shrift as the finance minister did not allocate a single penny, for their recapitalization, saying funds in this fiscal will be made available only for BASEL3 requirements.
 
''We do have certain budgetary provision of Rs 6,000 crore. So as is required, it shall be made available, the finance minister has said the capitalization requirement of banks as per BASEL-3 norms will be met fully," RS Gujral, Finance Secretary had told NDTV Profit earlier.
 
A (net) additional tab of over Rs 56,000 crore translates into almost 0.50 per cent of the GDP. However, top finance ministry officials say it’s premature to work out the exact impact on the fiscal deficit target.

That assessment will be done towards the end of January, when the government will tally its expenditure and savings, to arrive at the revised deficit target.

The auction results are another sign that the country's new technocratic government, faces a big battle to convince that it has a strategy to get a grip on the country's massive debts.

The country had to pay an average yield of 7.814 per cent to raise euro 2 billion in two-year bills. That rate was sharply higher on the 4.628 per cent it had to pay in the previous auction and represented a new high since the creation of the euro in 1999.

And even raising euro 8 billion for six months proved exorbitantly expensive. The yield for this auction spiked to 6.504 per cent, nearly double the 3.535 per cent rate in the last equivalent auction.

Following the grim news on the auction front, the country's borrowing rates in the markets sky-rocketed, with the ten-year yield spiking 0.34 percentage point to 7.30 per cent — above the 7 per cent threshold that is widely-considered unsustainable in the long-run and eventually proved the point at which Greece, Ireland and Portugal had to seek financial bailouts.

The renewed rise is likely to renew tensions over Italy's debts, which stand at euro 1.9 trillion ($2.6 trillion), or a huge 120 per cent of economic output. Europe's current anti-crisis measures are too not big enough to deal with Italy's debt mountain.

"..certainly it (FDI in multi brand retail) would help improve supply chain and we hope it should also contribute to reducing inflation," Reserve Bank of India (RBI) Governor D Subbarao told reporters here.

The Union Cabinet had yesterday approved 51 per cent FDI in multi-brand retail, paving the way for global giants like Walmart to open mega stores in Indian cities.

Subbarao said that 51 per cent FDI in multi-brand retail would attract foreign capital into the country. "It is a visible measure (taken by the Centre) that will bring in right capital in the country," he said.

Earlier in the day Subbarao had said the decision of the Cabinet allowing 51 per cent FDI in multi-brand retail would improve logistics, contain inflation and improve quality of life of over 50 per cent of country's population.

In his speech Subbarao described rising inflation as a "problem of success" and made a strong case for raising farm productivity to address the root cause of food inflation, which has been hovering around 10 per cent.

"The supply-demand gap in the food sector is, in part, a problem of success -- a consequence of a shift in dietary habits from cereal to protein-based foods reflecting rising income, especially rural incomes," he said.

While the food inflation marginally came down to 9.16 per cent for the week ended November 12, the headline inflation was 9.73 per cent in October.

To achieve stable macroeconomic environment, RBI chief said it would be necessary to bring down inflation to 5 per cent and reduce fiscal deficit at the centre as well as states.

Europe's biggest economy and the main financier of the eurozone's three bailouts has argued against allowing the ECB to use its firepower to ease a debt crisis that's shown alarming signs recently of spreading to big economies, like Italy.

Instead of using the ECB's cash-printing power, the eurozone's richest countries decided to use political tools to dig their way out of the crisis: Germany and France agreed on Thursday to push for changes to EU treaties to bring the eurozone's economic policies more in line with each other.

"In the treaty changes, we are dealing with the question of a fiscal union, a deeper political cooperation ... there will be proposals on this, but they have nothing to do with the ECB," German Chancellor Angela Merkel said Thursday in Strasbourg, France after meeting with French President Nicolas Sarkozy and Italy's new premier Mario Monti.

Many think the ECB is the only institution capable of calming frayed market nerves and Merkel's continued dismissal of a greater ECB role knocked market sentiment and stocks all round Europe fell again after a morning rebound.

Potentially, the ECB has unlimited financial firepower through its ability to print money. However, Germany finds the idea of monetizing debts unappealing, warning that it lets the more profligate countries off the hook for their bad practices. In addition, it conjures up bad memories of hyperinflation in Germany in the 1920s.

For now, all the three leaders agreed on with that current rules were not stringent enough and needed beefing up to prevent a repeat of the debt crisis that's rocked the eurozone for nearly two years.

Sarkozy said "propositions for the modification of treaties" would be presented in the coming days.

He wouldn't elaborate on what these changes may be but said they would be ready in time for the next EU leaders summit on December 9. Treaty changes are, more often than not, a notoriously laborious endeavor.

Merkel said the treaty changes would "make clear that we must take steps toward a fiscal union to express the conviction that we know policies must be more closely coordinated if you have a common, stable currency."

"It is political confidence in Europe that has been lost — we can only win it back politically," Merkel said.

This was the first meeting of the three leaders since Monti took over last week following mounting market concerns over Italy's huge debt, which stand at euro1.9 trillion ($2.6 trillion), or a huge 120 per cent of economic output. Europe's current anti-crisis measures are too not big enough to deal with Italy's debt mountain.

Sarkozy said the three leaders had agreed to meet again "very soon" in Rome at Monti's invitation to continue their three-way dialogue.

The meeting comes amid signs that even Germany and France — the eurozone's two biggest economies — are not immune from the crisis that's already seen three relatively small countries bailed out.

All three leaders said they would do what it takes to stabilize the situation and save the euro.

"We want the euro, we want a strong, stable euro ... we will do everything to defend it," Merkel said.

France has been reluctant to resort to changes to EU treaties to improve the way the eurozone countries work together and set policies and prevent future crises. Germany had pushed for such changes, saying voluntary pledges by national governments are no longer enough to boost market confidence.

Merkel also maintained her opposition to the European Commission's new drive for eurobonds.

Germany has opposed the use of eurobonds and has long called on fiscally wayward member states to clean up their own houses with as little outside intervention as possible. A big worry for Germany is that its low borrowing costs would get diluted if eurobonds came into issue and it would then be forced to pay higher rates to tap bond markets.

"It would be completely the wrong signal to lose sight entirely now of these differing interest rates, because they are a pointer to where something still needs to be done and where we need to go further," she said.

Monti, meanwhile, reiterated his pledge to balance Italy's budget by 2013 though he sidestepped the question on whether achieving that aim would require more austerity measures, and if so, whether it risked triggering a recession in the eurozone's third largest economy.

The auction results are another sign that Italy's new technocratic government faces a big battle to convince the markets it has a strategy to get a grip on the country's massive debts. It also served as a reminder that Europe's debt crisis has clearly spread from its relatively small economies to big countries such as Italy and Spain.

Italy had to pay an average yield of 7.814 per cent to raise euro2 billion ($2.67 billion) in two-year bills. That rate was sharply higher on the 4.628 per cent it had to pay in the previous auction in October. And even raising euro8 billion ($10.7 billion) for six months proved exorbitantly expensive. The yield for this auction spiked to 6.504 per cent, nearly double the 3.535 per cent rate in the last equivalent auction last month.

Following the grim news on the auction front, Italy's borrowing rates in the markets skyrocketed, with the ten-year yield spiking 0.34 percentage point to 7.30 per cent — above the 7 per cent threshold that is widely considered unsustainable in the long-run and eventually forced Greece, Ireland and Portugal had to seek financial bailouts.

The renewed rise is likely to renew tensions over Italy's debts, which stand at euro1.9 trillion ($2.6 trillion), or a huge 120 per cent of its economic output. Europe's current anti-crisis measures are too not big enough to deal with Italy's debt mountain

Against this backdrop, markets in Europe continued their long losing streak. Germany's DAX was down 0.6 per cent at 5,396 while the CAC-40 in France fell 0.7 per cent to 2,802. Britain's FTSE 100 index of leading British shares was 0.5 per cent lower at 5,101 but Italy's main FTSE MIB index underperformed them all, trading 1.8 per cent lower.

The euro also took a hit, trading 0.7 per cent lower at $1.3234, a fresh seven-week low.

Wall Street was poised for a lower opening too though trading is expected to be fairly light as many traders will remainaway for a long Thanksgiving holiday weekend. Dow futures were 0.7 per cent lower at 11,160 while the broader Standard & Poor's 500 futures fell 0.8 per cent to 1,151.

Aside from Europe's debt crisis, traders in the U.S. were bracing for a crucial test of the world's No. 1 economy — so-called Black Friday, the day that kicks off the holiday shopping season. How well retailers do will have consequences for the still-fragile U.S. economic recovery, as well as for the global economy.

Adding to the negative sentiment was Moody's downgrading of Hungary's credit rating to junk status late Thursday.

Hungary, which last week asked the International Monetary Fund and the European Union for possible financial help, is feeling the fallout from the debt crisis in the 17-country eurozone, even though it does not use the euro. Its economy has not grown as much as hoped and its debt burden remains relatively high.

"While not really a market-moving event, the downgrading of Hungarian bonds to junk status still served to highlight that the same old European debt problems remain - and many traders feel there is still the same old lack of urgency from politicians," said David Jones, chief market strategist at IG Index.

Earlier in Asia, trading was sluggish. Japan's Nikkei 225 index closed marginally down at 8,160.01 while Hong Kong's Hang Seng dropped 1.4 per cent to 17,689.48.

In mainland China, the benchmark Shanghai Composite Index lost 0.7 per cent to 2,380.22, its lowest closing level in a month.

Benchmark crude for January delivery was down 2 cents at $96.11 a barrel in electronic trading on the New York Mercantile Exchange. The contract last settled on Wednesday in New York at $96.17, down $1.84.

The company will develop 3.5 million square feet to 4 million square feet of retail space as it expects heightened activity with the government yesterday approving 51 per cent foreign direct investment in multi-brand retail and 100 per cent in single brand.

"I welcome the opening of the retail sector. In the next three to five years, the sector will grow and consumers will benefit. The supply chain issue will also be addressed by the industry adequately. From our side we will invest Rs 2,000 crore to Rs 3,000 crore in the next five years," DLF Vice Chairman Rajiv Singh told PTI on the sidelines of CREDAI (Confederation of Real Estate Developers’ Associations of India) summit here.

He said most of the new retail malls will come up in cities, including the Capital, NCR, Jalandhar, Lucknow, Kolkata, Chennai, Kochi and Indore.

Asked about the funding of the investments, he said it would be through internal accruals.

Commenting on the company's plans to tap the retail sector, Singh said: "We are already present in malls business and have many international brands. After yesterday's decision on FDI, we will step up our mall activity through our sister firm DLF Brands and hope to get better tenants in future."

While DLF Brands manages malls, another division of DLF Limited constructs the malls. The company currently has about 10 operational malls across India.

On the overall investments in core real estate, he said: Usually we invest Rs 1,200 crore to Rs 1,500 crore every year in purchasing new land and rental activities. Our capex for 2012-2013 will also be in this range."

Singh said the company does not foresee real estate prices coming down.

When asked about the company's plans to sell its hospitality venture Aman Resorts, Singh said: "We are likely to close the deal by next quarter. We have got bids from many players and all of them are international firms."

He did not comment on the valuation of the deal that would include 29 properties of the hospitality chain that DLF Ltd had acquired in in 2007 for $400 million.

Sources in the know of the development, however, said the company is expecting about Rs 2000 crore to Rs 2,500 crore from the deal.

It is also understood that DLF will retain the Delhi property of the Aman Resorts.

Prime Minister Manmohan Singh will meet officials from domestic private carriers on Saturday, Civil Aviation Minister Vayalar Ravi said today. The meeting assumes importance because most domestic carriers are facing financial crisis. Domestic airlines like Kingfisher, Jet Airways and Spicejet have all reported losses due to high costs of operation and rising crude prices.

While the agenda of the meeting is not known, a discussion on the proposal to allow foreign direct investment (FDI) by foreign airlines in Indian carriers might take place.

Shares of leading aviation companies surged. Kingfisher Airlines rose 7.7 per cent while Jet Airways surges 12.6 per cent. Spicejet shares surged 8.1 per cent. The BSE Sensex fell more than one per cent on Friday. 

A draft Cabinet note by the Department of Industrial Policy and Promotion (DIPP) under the Commerce Ministry has recommended 26 percent foreign direct investment (FDI) by foreign airlines in domestic carriers. Anything below 26 per cent would not attract strategic investment from foreign airlines because in that case they will not have any powers to block a special resolution in a board meeting under the Indian company laws.

Current rules allow 49 per cent FDI in Indian aviation companies, but do not allow foreign airlines to own stake in India’s carriers.

Some airlines in India have opposed FDI because they worry that foreign partners will eventually take over the airlines they invest in.

Vijay Mallya, whose Kingfisher Airlines is in dire financial straits, has been urging the government to allow foreign airlines to invest in domestic carriers

Banks are finding it hard to extend more loans to India’s airlines – foreign investment could provide the assistance needed.

Earlier, the Prime Minister had backed a financial assistance to debt laden Kingfisher Airlines. "Private sector companies have to be managed efficiently but if they get into difficulties we have to find ways and means to get them out of the process," he had said.

The rupee resumed lower at Rs 52.15/16 per dollar on the Interbank Foreign Exchange, as against its previous close of Rs 52.06/07 per dollar, and dropped further to Rs 52.26 per dollar before quoting at Rs 52.08/09 per dollar at 1100 hours.

The domestic currency moved in a range between Rs 52.06 and Rs 52.26 per dollar during morning deals.

Good dollar demand from banks and importers, mainly oil refiners, on the back of a higher dollar in overseas markets mainly affected the rupee value against the dollar, a forex dealer said.

In Singapore, the euro dipped to a fresh seven-week low against the dollar in early trade, with markets seeing no end in sight to the euro zone debt crisis.

"The singular act of opening the multi-brand retail sector to foreign direct investment will significantly benefit the Indian consumer by spurring the modernization of India's vast agri-retail marketplace," said Ron Somers, the President of the US India Business Council.

"Investments will now flow into India's farm-to-market supply chain, which will usher in expertise and bring efficiencies to India's supply chain infrastructure. Food price rise and inflation will now effectively be tamed," he said.

"Opening the retail sector will create a larger market opportunity for Indian farmers, increasing quality and choice for India's sophisticated consumers," Somers said.

The United States India Business Council (USIBC), a body that represents the views of Corporate America hailed India's steady progress in advancing major economic reforms in a statement following Cabinet approval for opening up India's vast multi-brand retail sector to foreign direct investment (FDI) and removing the FDI cap in single-brand retail.

"This change in policy is a good start to a win-win decision for all stakeholders, including customers, farmers and the government of India," said Dough McMillion, the President and CEO of Walmart International, adding that the decision to allow 51 per cent FDI in multi-brand retail gave his company the opportunity to serve Indian customers directly.

These bold reforms have heartened investors from the United States and elsewhere, the USIBC said.

The government's opening of the multi-brand retail sector will benefit Indian consumers by bringing efficiencies and productivity to the farm-to-fork supply chain, while tamping down rising food prices and inflation, the USIBC said, adding that the overall effect of these actions will propel India on the path to becoming the world's third-largest economy, which was earlier predicted to occur by mid-century.

"The government's bold resolve to move on these complex reforms serves as an assurance to investors that its economic liberalization agenda begun in the early 1990s is very much on track, even in the face of the global economic downturn," the USIBC said.

McMillion said through participation in front-end retail, WalMart looks forward to playing a key role in India's success story by contributing to the country's economy and helping citizens save money so they can live better.

"We will create thousands of jobs through inclusive growth, increase farm productivity and income and help small and medium industries prosper and grow with us," McMillion said.

"We're confident that the government, after seeing the value we bring to India and its people, will view this opening as a first step in further liberalizing FDI

Till now, the country has only allowed 51 per cent FDI in single-brand retail and 100 per cent FDI in the cash-and-carry format of the business.

New York's main contract, light sweet crude for delivery in January gained 30 cents to $96.47 a barrel.

Brent North Sea crude for January delivery slipped 40 cents to $107.38.

Crude markets were indecisive coming off data from the US Department of Energy (DoE) showing a sharper than expected fall in US stockpiles against weaker global economic diagnoses, Barclays Capital said in a report.

"Oil prices remain largely range-bound with the tug-of-war between solid fundamentals and faltering macroeconomic picture continuing," it stated.

"The latest DoE data shows a sharp fall in crude inventories (but) the pressure from uncertainty concerning the euro area, China and global growth in general is likely to weigh on prices," Barclay's report added.

Data issued yesterday showed US crude reserves falling 6.2 million barrels last week against market expectations of a gain of 300,000, according to analysts polled by Dow Jones Newswires, indicating strengthening demand.

But global economic concerns cast a pall over crude markets, with a poor German bond sale pushing Europe's debt crisis to new depths and figures showed slumping manufacturing activity in top global energy consumer China.

At a broader level, this perhaps signals that the government’s ‘policy paralysis’ may well be easing with at least such decisions that don’t need full parliament approval being cleared.

The draft proposal had laid out some riders.

1) It mandated a minimum investment of $100 million with at least half of it being invested in back end infrastructure (land and rentals excluded).
2) 30 per cent of sourcing needs to be from small and medium enterprises with a strict definition on what businesses get classified under this head
3) Retailers with foreign investments will be limited to operating in cities with at least 1million people (currently ~45 such cities in India)

We will watch for any changes in the investment requirement, cities covered and approvals required (particularly if states’ approvals are involved).

Positive for retail stocks, details to determine implications:

We expect a near term up move in retail stocks on the back of this. However, the fine print and riders will determine how quickly deals can happen.

1) Pantaloon is most geared to this development as it has publicly stated that it is in discussions with potential partners and also has imminent funding needs. However, the company would need to restructure its subsidiaries to create an FDI ready entity to bring a foreign partner into. Given its wider geographic footprint, the need for such restructuring is likely to be higher for Pantaloon.

2) Trent is already aligned with Tesco in its hypermarket format, which could lead to an equity partnership as FDI rules allow this.
3) Bharti is aligned with WalMart.
4) Carrefour is reportedly keen to get a foothold
5) Spencers, which is owned by CESC, could potentially seek a partner, as could Shoppers Stop for its Hypermarket businesses (the company is open to the idea)
6) Ikea may also look to enter India, although it will likely not seek a partner

This will likely increase demand for quality retail properties and may benefit property developers like Phoenix Mills, DLF and Unitech. We retain our cautious view on the sector given softening demand and mounting cost pressures (underperform on Pantaloon, sell on Titan and Shoppers Stop). However, we may revisit this once clarity emerges on the contours of the FDI regulation.

India Inc has hailed the government's decision to allow 51 per cent foreign direct investment in multi-brand retail, saying the move will help bring in the much needed capital for the sector. Kishore Biyani has led his Future group to foray into allied businesses across the consumption space. In an exclusive interview with NDTV Profit Mr Biyani describes the move as a win-win situation for all stake holders.

Your first thoughts on the relaxation of foreign direct investment norms in retail sector, especially regarding the riders that ensure the entry of quality players?

I personally believe it’s a win-win for everyone. It’s a win for the country men, as he gets choices and better prices; a win for the government because in 5-10 years, investment of around $10 billion can come in due to the opening up; it’s a win-win for small industries because they can become suppliers to the 30 per cent of small industries; it’s also a win for agriculture and infrastructure, because 50 per cent of investment has to be made for infrastructure because that will go into agriculture infrastructure of the country, which is required after 62 years of independence. We need to rebuild agriculture structure. I think the policy will be a win-win for everyone.
 

What is the impact seen especially for farmers in the terms of the pricing they command post these norms?

I think the investment of 50 per cent in the back end will entail a lot of consolidation which will turn into farming and consolidation of buying. The difference between the farm price and the retail price will see a lot of shrinkage that can give more benefit to the farmer. I think the investment in agriculture alone can make the income of the farmers rise by as much as 60 per cent. With one stroke many constituents of the country will benefit.

How will this have an impact on your company in terms of transfer of technology, supply chain efficiencies?

I think the policy has just unfolded and we will see lots of interested parties showing interest in India because India is a huge country and lots of other markets are not growing as India is growing and modern retail will bring about better prices , better consistency of product , better quality and can improve lifestyle.

When do you expect to see a visible impact on customers post these norms? Any timeframe?

Obviously, there is a choice, there are better prices. Modern retailer can ensure food safety for the consumer. I think that can go long way in reducing the health care cost in the country.

Can you quantify the positive impact? What is your expansion plans post this move?

We have many options because we are in many phases of hyper market, super market, departmental stores, fashion stores, home electronics, sports and retail. So, we have many options. As our company will fit and we will explore various opportunities which are in front of us and see how do we go about it.

Walmart, which has been waiting in line with other global retailers like Carrefour and TESCO to tap the growing and
lucrative Indian market with a 1.2 billion-strong population, said it was "grateful" that the Indian government realised and
appreciated the value that foreign retailers like itself will bring to strengthen the country's economy.

"We believe that allowing 51 per cent FDI in multi-brand retail is a first important, step. However, we will need to study the conditions and the finer details of the new policy and the impact that it will have on our ability to do business in India," Bharti-Walmart MD and CEO Raj Jain said in an emailed statement to PTI.

Bharti Walmart is a wholesale joint venture between the US retail giant and India's Bharti Enterprises. Jain said Walmart is "willing and able" to invest in back-end infrastructure that will help reduce wastage of farm produce, improve the livelihood of farmers, lower prices of products and ease supply-side inflation.

The new policy will positively impact the Indian market and its people and will also contribute toward India's image
as one of the world's fastest growing economies and a welcoming destination for international businesses, Jain said.
After a long wait, India also cleared 100 per cent FDI in single-brand retail yesterday.

Till now, the country has only allowed 51 per cent FDI in single-brand retail and 100 per cent FDI in the cash-and-carry
format of the business.

Fitch ratings agency said on Thursday it was cutting its rating on bailed-out Portugal by one notch to 'BB+' because of its high level of debt and weak economic outlook.

Fitch said the rating has a negative outlook, meaning it could be lowered again, citing Portugal's "large fiscal imbalances, high indebtedness across all sectors and adverse macroeconomic outlook" for the downgrade.

Fitch said Portugal -- bailed out by the EU and International Monetary Fund to the tune of 78 billion euros -- would see its economy shrink 3.0 per cent next year, making government efforts to stabilise the public finances even more difficult.

It said the government's commitment to the reforms laid down in the bailout programme was strong and it should meet this year's public deficit target of 5.9 per cent of Gross Domestic Product.

The 2012 budget drawn up by the new conservative government elected in June "contains significant expenditure reductions, mainly on pensions and civil service pay.

"The budget is well-designed and is based on reasonable GDP assumptions.

Fitch therefore expects the 4.5 per cent deficit target for 2012 to be met," it said, while warning of large risks of slippage.

It said it expected total accumulated government debt to increase from 93.3 per cent of GDP at end-2010 to around 110 per cent at end-2011 and peak at around 116 per cent at end-2013.

"The sovereign crisis poses significant risks to the banking system, which lends to one of the most indebted private sectors in Europe," Fitch said, waring that the banks will need fresh help from the European Central Bank.

Portugal was bailed out after fellow eurozone strugglers Greece and Ireland needed rescues in 2010 to save them from default, with the debt crisis since spreading steadily to snare Italy and Spain.

S&P said Thursday it cut Egypt's long-term foreign and local currency sovereign ratings to B+ from BB-, with a negative outlook.

The agency says the cuts reflect its opinion that Egypt's "weak political and economic profile" had deteriorated further.

The cut comes after days of clashes between protesters and security forces in central Cairo — battles that raised questions about the country's political situation days before the scheduled Nov. 28 parliamentary elections.

The vote is the first since former President Hosni Mubarak was ousted from power in February.

"Global suppliers have agreed to cut fertilizer prices by around five per cent. DAP will now be cheaper by $35 per tonne and NPK (Nitrogen Phosphate and Potassium) fertilizers by $25 per tonne," Indian Farmers Fertilizer Co-operative Ltd (IFFCO) Managing Director U S Awasthi told PTI.

Indian fertilizer companies on Tuesday had asked global suppliers to bring down prices of DAP by $ 50 per tonne, MoP (Muriate of Potash) by $36 per tonne and NPK fertilizers by $45 per tonne on account of rising import costs due to falling rupee. They had said they would have to increase retail prices if global rates did not come down.

With the reduction in prices, there will be no increase in the maximum retail price (MRP) of DAP and NPK fertilizers sold by IFFCO till March 2012, Awasthi added.

"We are contracting DAP at USD 677 per tonne and NPK fertilizers at $617 per tonne and with the cut there will not be increase in MRP by IFFCO till March 2012 as the contracts are for that period," he said.

Meanwhile, the rupee today strengthened by 21 paise to 52.14 against the US dollar in early trade. Yesterday, it ended at 52.35/36 its all-time closing low against the US dollar.

India imports 90 per cent of its DAP demand and the entire requirement of MoP.

The country is estimated to have imported 5.6 million tonne of urea, 3.81 million tonne of DAP, 2.6 million tonne of MoP and 2.17 million tonne of complex fertilizers during the Rabi (winter) season 2011-12.

The inbound shipments of urea DAP and MOP stood at 6.61 million tonne, 7.41 million tonne and 4.5 million tonne, respectively during the whole of 2010-2011 fiscal.

Benchmark oil fell below $97 a barrel while the dollar strengthened against the euro and held steady against the yen.
European shares sank in early trading. Britain's FTSE 100 fell 0.3 per cent to 5,191.94 and Germany's DAX lost 0.4 per cent to 5513.08. France's CAC-40 was down 1 per cent to 2,844.49.

Futures augured a lower open on Wall Street. Dow Jones industrial futures lost 0.7 per cent to 11,362 while S&P 500 futures slipped 0.8 per cent to 1,173.10.

Asian stock markets posted broad losses earlier in the day, hit by the signs of weakness in the world's two biggest economies. The U.S., a major market for Asia's exporters, grew at a 2 per cent annual rate from July through September, down from an initial estimate of 2.5 per cent. China, meanwhile, suffered a fall in manufacturing activity in November, according to a preliminary survey.

Hong Kong's Hang Seng slid 2.1 per cent to 17,864.43. South Korea's Kospi lost 2.4 per cent to 1,783.10 and Australia's S&P/ASX 200 shed 2 per cent to 4,051. Mainland China's Shanghai Composite Index fell 0.7 per cent to 2,395.07, posting its sixth straight session of losses. Japanese stock markets were closed for a public holiday.

Jackson Wong, vice president of Tanrich Securities in Hong Kong, said already weak market sentiment was further dampened by HSBC's China manufacturing index showing a contraction in activity.

The manufacturing gauge fell to 48 in November from 51 in October — its sharpest fall since March 2009. A reading below 50 indicates contraction from the previous month, but the index often undergoes significant revision from its preliminary level.

"The market is still waiting for some kind of price catalyst to bound back. Otherwise, we still trend down bit by bit until something happens," Wong said.

Higher borrowing costs for Spain, meanwhile, renewed worries about Europe's debt crisis. The higher rates suggest that investors are still skeptical that the country will get its budget under control despite a new government coming to power this week.

Investors have been worried that Spain could become the next country to need financial support from its European neighbors if its borrowing rates climb to unsustainable levels.

Greece was forced to seek relief from its lenders after its long-term borrowing rates rose above 7 per cent. The rate on Spain's own benchmark 10-year bond is dangerously close to that level, 6.58 per cent.

Underscoring jitters was the lack of market reaction to an announcement by the International Monetary Fund that it will provide quick cash on flexible terms to countries facing sudden financial stress.

"Failure of this news to result in significant gains across markets shows just how cautious investors are," Stan Shamu of IG Markets in Melbourne said in a report.

Concerns remain that Europe's debt crisis is pushing the region toward recession, which would slow industrial activity in countries around the world that export to Europe.

Australian resource shares took a big hit after the country's House of Representatives approved a law imposing a windfall profits tax on big mining companies. The Senate is expected to endorse the measure in early 2012.
BHP Billiton, the world's largest mining company, fell 3.1 per cent. Rival Rio Tinto lost 3.4 per cent and Energy Resources of Australia plummeted 5.9 per cent.

In Seoul, auto parts maker Mando rose 2.6 per cent on hopes that a free trade pact between South Korea and Washington would boost its earnings, Yonhap News Agency reported.

On Tuesday, the Dow Jones industrial average lost 0.5 per cent to close at 11,493.72. The Standard & Poor's 500 fell 0.4 per cent to 1,188.04. The Nasdaq composite fell 0.1 per cent to 2,521.28.

Benchmark oil for January delivery was down $1.04 to $96.97 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose $1.09 to finish at $98.01 per barrel on the Nymex on Tuesday.

In currencies, the euro fell to $1.3457 from $1.3509 late Tuesday in New York. The dollar was little changed at 76.98 yen.

The agreement will increase annual gas deliveries by 25 billion cubic meters a year, bringing the total to 65 billion cubic meters annually. That's equivalent to more than half of China's entire natural gas consumption last year.

China, the world's No. 2 economy, has been courting Turkmenistan and other former Soviet Central Asian republics to diversify and expand access to energy needed to power its fast-growing economy and reduce its reliance on heavily polluting coal.

The gas agreement was one of 14 signed following talks Wednesday between Turkmen President Gurbanguli Berdymukhamedov and Chinese President Hu Jintao. Others cover loans for the purchase of oil and gas drilling equipment, police training, and counterterrorism.

During their meeting, Hu pledged to deepen energy cooperation with Turkmenistan following the success of a pipeline that the two countries opened in December 2009 that links to northwest China, state-run Xinhua News Agency reported.

On Thursday, Berdymukhamedov will attend the ceremonial opening of a $22 billion pipeline that will carry Turkmen gas to southern China. The 5,370-mile (8,700-kilometer) natural gas pipeline began operating in June, helping boost supplies to the country's booming industrial zones. It is slated to provide up to 30 billion cubic meters of natural gas a year.

Berdymukhamedov is in China for a four-day visit, during which he will also meet with China's second most powerful official, Wu Bangguo, and Premier Wen Jiabao. He will also travel to the southern export powerhouse of Shenzhen and semiautonomous Hong Kong.

The company reported a 48 per cent fall in consolidated net profit at Rs 21.45 crore for the fiscal ended September 30, 2011, mainly due to higher interest outgo.

The company paid Rs 550.72 crore as interest in 2010-11 fiscal against Rs 368.12 crore in the previous year.

The company follows October-September as fiscal year in line with the sugar marketing year.

Reacting to the muted numbers, the stock opened on a sluggish note and then dipped 3.81 per cent to touch an early low of Rs 26.50 on the BSE.

Similar movement was witnessed on the National Stock Exchange as well where the stock opened at Rs 27.25 and plunged further ts an early low of Rs 26.45.

The stock, however, recovered some lost ground and was trading at Rs 26.65, down 3.27 per cent both on BSE and NSE at 1137 hours.

The company's total income rose to Rs 5,081.89 crore during last fiscal from Rs 3,320.48 crore in the previous year.
Bajaj has 14 sugar plants in Uttar Pradesh with cane crushing capacity of 1.36 lakh TCD (tonnes crushed per day).

"Suzuki is on the commencing arbitration proceedings in London with the ICC, International Court of Arbitration, in order to compel Volkswagen AG to dispose of its Suzuki shares to Suzuki or Suzuki's designated third party," the company said in a statement.

The Japanese automaker said last week that it had ended its alliance with the German auto giant and demanded it sell back its stake in the Japanese carmaker by November 2012. It also warned that it would seek arbitration if Volkswagen refused to sell the 112.21 million shares, or 19.89per cent of Suzuki, to the Japanese small-car maker or a third party it designates.  

"The arbitration proceedings follow Suzuki's termination of its alliance and Volkswagen AG's lack of response to Suzuki's requests for the disposition of its shares," it said.

The two firms formed a 1.7 billion euro ($2.3 billion) tie-up in 2009. Suzuki planned to seek support from Volkswagen in hybrid technologies and other eco-friendly areas, while the German firm hoped to jointly develop small cars for emerging markets by taking advantage of Suzuki's know-how.  

But they made little progress and halted their joint projects. The Japanese automaker in September said it wanted to end the alliance, citing a deep disagreement over collaboration and complained that its partner failed to provide promised access to technologies.

Ahead of Suzuki's move towards ending the tie-up, relations had become frayed as Volkswagen served notice of an alleged infringement relating to the supply of diesel engines to Suzuki from Italian carmaker. Fiat. Volkswagen has refused to accept Suzuki's repeated demands to sell back the shares, saying it "categorically" rejected having "broken or not lived up to, in any way, the cooperation agreement".

However, the government's decision to allow exports of 1 million tonne and good demand from bulk consumers in the spot market, capped the losses.

At the National Commodity and Derivatives Exchange, sugar for delivery in December fell by Rs 21, or 0.70 per cent, to Rs 2,991 per quintal, with an open interest for 37,720 lots.

Similarly, sugar for delivery in January fell by Rs 10 or 0.33 per cent to Rs 3,000 per quintal, with an open interest for 12,380 lots.

Analysts said the fall in sugar futures prices was mostly attributed to profit-booking by speculators after recent gains, but government's decision allowing exports of 1 million tonne and strong demand for the sweetener in the spot market from bulk consumers for the marriage season, restricted the losses.

Meanwhile, in Kolhapur spot market in the country's top producing Maharashtra, sugar jumped 3.4 per cent to Rs 3,050 per quintal.

Food inflation fell sharply to single digit at 9.01 per cent for the week ended November 12 even as prices of most agricultural items, barring potatoes, onions and wheat, continued to rise, on an annual basis.

Food inflation, as measured by the Wholesale Price Index (WPI), was 10.63 per cent in the previous week.

The rate of price rise in food items stood at 11.38 per cent in the corresponding week of the previous year.

According to the data released by the government today, onions became cheaper by 32.85 per cent year-on-year, while potato prices were down by 7.23. Price of wheat also fell by 3.09 per cent.

However, all other food items became expensive on an annual basis during the week under review.

Vegetables became 17.66 per cent costlier, while pulses grew dearer by 14.28 per cent, milk by 10.46 per cent and eggs, meat and fish by 11.98 per cent.

Fruits also became 4.59 per cent more expensive on an annual basis, while cereal prices were up 2.86 per cent.

Inflation in the overall primary articles category stood at 9.08 per cent during the week ended November 12, as against 10.39 per cent in the previous week. Primary articles have over 20 per cent weight in the wholesale price index.

Inflation in non-food articles, including fibres, oilseeds and minerals, was recorded at 4.05 per cent during the week under review, as against 5.33 per cent in the week ended November 5.

Fuel and power inflation stood at 15.49 per cent during the week ended November 12, the same as in the previous week.

The decline in the rate of rise in food prices is likely to bring some relief to the government and the Reserve Bank, which have been facing flak from all quarters for persisting high prices.

The government had said steps were being taken to remove supply bottlenecks and expected prices to ease from December.

Yesterday, Finance Minister Pranab Mukherjee had said that the government's immediate priority is to contain price rise.

"High inflation and also some of the effort to control liquidity has a detrimental effect on short-run growth. The immediate priority is to control inflation so that long-term growth prospects are not affected," Mukherjee had said in a written reply in Rajya Sabha yesterday.

Earlier this week, he had said in Parliament that inflation is likely to moderate to around 6-7 per cent by March 2012.
Headline inflation, which also factors in manufactured items, has been above the 9 per cent-mark since December, 2010. It stood at 9.73 per cent in October this year.

The RBI has hiked interest rates 13 times since March, 2010, to tame demand and curb inflation.

In its second quarterly review of the monetary policy last month, the central bank had said it expected inflation to remain elevated till December on account of the demand-supply mismatch, before moderating to 7 per cent by March, 2012.

Idea Cellular announced on Wednesday the launch of two Smartphones, priced at Rs 5,850 ($112) and Rs 7,992 (US$ 153) with the intention of making 3G smartphones more affordable to help 3G uptake.

The touch-screen smartphones would be based on the Android 2.2 operating system, sourced from Chinese firms Huawei and ZTE. 

Himanshu Kapania, MD, Idea Cellular said, "we are the launching the Idea 3G smartphone range. We plan to expand our 3G presence in tier 2 and tier 3 cities, in all targetting 10 thousand towns."

He expects that reasonable pricing would be the key for acceptance, as it broke the price barrier of Rs 5,850.

The Company, which has made Rs 10,000 crore investment in the 3G space, intends to bundle data services worth Rs 3,500 as an introductory offer with a Rs 259 pack. 

It also said that it is ascertaining if it can enter the tablet PC market.

Similarly, companies like Rallis, Indian Hotels, Tata Chemicals, Tata Elxi, Tata Global Beverages and Tata Investment Corp also opened higher, but could not sustain their opening gains and were trading with modest losses in the early morning trade.

A few like Tata Motors opened on a weak note, but some value buying was seen at lower levels. The stock was down 1.3 per cent while Tata Steel was down 3.5 per cent. Tata Power was flat at Rs 91.30 after erasing its early gains; Tata Communications was down 2.3 per cent at Rs 176.60.

There are about 30 listed firms in the Tata group, which comprises of close to 100 operating companies. Together, these listed companies commanded a market value of about Rs 3, 50,000 crore ($77.44 billion) as on November 17, 2011, as per the information available on the Tata group website.

The Tata group announced that Cyrus Mistry would become Chairman of the group's holding company, Tata Sons, in December 2012, after Ratan Tata retires from the position.

Mistry, managing Director of the construction and infrastructure major Shapoorji Pallonji group that holds over 18 per cent stake in Tata Sons as its single largest shareholder, would disassociate himself from his family businesses.

US retailers awaiting the arrival of Black Friday are on the edge. How well they do during the biggest shopping season of the year will have lasting consequences not just on them, but the still-fragile economic recovery.

This weekend, many stores will for the first time use midnight openings along with the usual bevy of deals as they try to lure consumers, whose appetite for good-buys has been increasing since the Great Recession.

Economists and business executives will be watching closely.

"A bad holiday season would raise recession fears again, whereas a strong one would start to dispel those fears," said Scott Hoyt, senior director of consumer economics for Moody's Analytics.

That would give companies more impetus to step up hiring, he added.

As usual, success will depend largely on consumer spending, which accounts for about 70 per cent of U.S. economic activity. Their spending can impact stores' expansion plans and inventory decisions into the new year.

And that trickles through the rest of the economy, from suppliers to jobs.

The November-December period accounts for 25-40 per cent of annual sales. For 2011, that's almost half a trillion dollars in revenue from spending on everything from tablets to toys. About a quarter of jobs in the U.S. are directly or indirectly supported by the retail industry.

As the critical sales time begins, economists and merchants are wondering whether shoppers will stick to their lists or pick up some extras for themselves not only on Black Friday but over the rest of the season.

Or will shoppers do what they've been doing for several years now — jump on the deals and retreat until the season's final days when they think the bargains will be better? And how much discounting will be necessary to draw them in?

Just as in the past few years, merchants have tried discounts on holiday merchandise as early as October.

And those 4 a.m. openings on Black Friday are now outdated. The new trend is midnight openings, with many stores like Target, Best Buy and Kohl's embracing them as they try to be the first to pull in shoppers.

Given this year's challenging environment, online jewelry site Blue Nile is making a bigger push in marketing, launching its first online sale on Black Friday to snag more female customers.

"It's going to be competitive. I want to get our brand out there in the mix," said CEO Vijay Talwar, who estimates that 30-35 per cent of annual sales come from the November and December period.

Earlier openings and a dramatic increase in early morning specials have helped make the day after Thanksgiving the biggest day of the year for the past six years in a row. It's predicted to keep that crown again this year, according to ShopperTrak, a research firm.

Just because stores have a decent start doesn't mean the overall holiday period will be good. Merchants had a good Black Friday in 2008, as shoppers showed up for the enticing deals, but the season was a bust.

The impact of that period still lingers, from shrunken orders to the demise of some suppliers, experts say.

That was when spending plunged so much that many retailers were caught with too much product in the pipeline. As a result, they slashed prices up to 80 per cent to draw shoppers and raise cash.

Even Saks Fifth Avenue had a fire sale of designer clothes. Others sold jewelry and clothing to liquidators for pennies on the dollar. Some, such as Circuit City, went out of business. And the woes still linger.

Retail hiring for the season hasn't rebounded to its 2005 pre-recession peak of 642,000 workers, according to the National Retail Federation, the nation's largest trade group. About 480,000 to 500,000 workers are expected to be hired this season, about even with the 496,000 workers hired in 2010. However, the 2011 forecast is still well above the recessionary low of 239,000 in 2008, according to the trade group.

Stores, scared they'll be stuck again with too much holiday leftovers, have also kept their inventories lean. And they're still being forced to push big discounts as shoppers contend with a 9 per cent jobless rate and gloomy confidence.

The NRF expects total holiday sales to be up 2.8 per cent to $465.6 billion, less than the 5.2 per cent increase a year ago but slightly more than the 2.6 per cent average increase over the past decade.

Among those watching nervously is Pamela Kebe, a partner at Piccolo Piggies of Georgetown, an upscale children's clothing store in Washington, D.C., that derives 40 per cent of its annual sales from November and December.

Her business is down from 40-50 per cent from its 2007 peak. At one point, she liked the challenge of getting shoppers with discounts. But it's not fun anymore.

Kebe said if she doesn't have a good holiday season, she'll have to cut inventory for next year and work with vendors to negotiate more flexible payment terms.

"I am very nervous," she said. "This is the first time I feel like that."

Oil prices hovered above $96 a barrel Thursday in Asia amid light trading volume ahead of a U.S. holiday.

Benchmark crude for January delivery was up 1 cent at $96.18 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $1.84 to settle at $96.17 in New York on Wednesday.

Brent crude for January delivery was steady at $106.70 a barrel on the ICE Futures Exchange in London.

Markets in the U.S. are closed Thursday for the Thanksgiving holiday.

Crude has fallen from above $103 last week amid investor concern the Europe debt crisis will undermine global economic growth and oil demand.

However, crude inventories have dropped in recent months in the U.S. and Europe. Crude supplies fell by 6.2 million barrels last week and are about 8 per cent below year-ago levels, the Energy Department's Energy Information Administration said Wednesday.

"The low inventory situation has prevented oil prices from falling sharply," Bank of America Merrill Lynch said in a report. "But eventually, deteriorating financial conditions could start to impact economic activity and bring oil prices somewhat lower."

Bank of America said it expects Brent crude to average $104 in the first quarter of next year.

In other Nymex trading, heating oil rose 1 cent to $2.98 per gallon and gasoline futures gained 1.2 cents to $2.53 per gallon. Natural gas was steady at $3.61 per 1,000 cubic feet.

The Union Cabinet is likely to take up the Companies Bill today.  The bill introduces Corporate Social Responsibility (CSR), class action suits and fixed term for independent directors.

The finance ministry and SEBI had sought review of provisions, which conflicted with the SEBI Act. However, differences over SEBI's jurisdictions have been ironed out. In a step that would perhaps provide some teeth to the capital market watchdog Securities and Exchange Board of India,  the finance ministry and the market regulator have agreed to uphold Sebi’s views in cases where jurisdictions conflict.

The Bill that has already been vetted by the Parliamentary Standing Committee. It envisages contribution of 2 per cent of average profit of the preceding three years for Corporate Social Responsibility (CSR) related activities. It also proposes to tighten laws for raising money from the public and prohibit any insider trading by company directors.

Cyrus Mistry, board member of Tata Sons, will succeed Ratan Tata next year. The board of Tata Sons appointed Mistry as deputy chairman on Wednesday.

The board unanimously took a decision on the basis of the recommendation made by the selection committee set up to find a successor for Ratan Tata. The committee is said to have met 18 times before announcing the succession plan.

The government today said it has received suggestions from several investors from countries like the US, France and Germany to further open up the single-brand retail sector.

"Suggestions in this regard have been received from stakeholders and potential investors from a number of countries, including the USA, France, Sweden and Germany," Minister of State for Commerce and Industry Jyotiraditya Scindia said in a written reply to the Rajya Sabha.

Scindia said since opening up of this sector in February, 2006, 60 investment proposals have been approved.

The existing policy allows for 51 per cent foreign direct investment in the single-brand retail trade.

Several of the big global retail chains are keenly waiting to make an entry into India's retail sector, which is estimated to be worth USD 590 billion.

In another reply, the minister said that India and Pakistan have agreed to jointly work to more than double bilateral trade within three years from the current level of USD 2.7 billion per annum to about USD 6 billion.

In another reply, he said exports to some countries (11) with low or nominal tax rates increased to USD 251.13 billion in 2010-11 from USD 83.53 billion in 2004-05.

India's exports to countries like the Bahamas, Mauritius, Panama and Switzerland went up to USD 2.17 billion, USD 801.56 million, USD 117.84 million and USD 677.56 million, respectively, in 2010-11 from USD 5.55 million, USD 258.2 million, USD 55.95 million, USD 540.89 million in 2004-05.

“Maharashtra wants global CEOs and investing community to discover the investment opportunities available in the state through this event,” added Chavan.

Below are the excerpts of the interview.

How does it feel to be the host state for an event like WEF, which is happening for the first time in Mumbai?

WEF has been hosting the India Economic Summit for the last 26 years in the national capital (New Delhi). It is a very important event as many global CEOs are attending this event. It is a great networking and marke
ting event for the country as a whole. We have adequately marketed India as a whole to the rest of the world. Now the challenge is to market the state.

For example, if you see the state of Maharashtra, it has largest population after a country like Mexico and we are larger than any state in Europe, so why can’t Maharashtra have global aspirations? We want the global investing community, the global CEO s and the MNCs to discover the investment opportunities in Maharashtra.

The decision to host the WEF Indian economic summit in Mumbai signals that the financial capital of India is right here and if they want to discover India in a much more detailed way, it is not necessary that you connect with central leadership in Delhi, but you go to the regions where you are actually going to put your companies, your factories, businesses here.

NDTV: So would this also be a huge opportunity for the state because the state is fighting stiff competition from the other states of India as well so is this a right opportunity for showcasing and getting FDIs and take Maharashtra to the next league?

Chavan: Maharashtra already gets highest investment and highest FDIs as it is the most industrialized state. However, there is competition, which is healthy. India is the sum of all the states. Now we are marketing Maharashtra as a destination for businesses, for financial sector entities and manufacturing multinationals.

We are already showcasing what people who have come before them have done, how they expanded fast and whether they are satisfied or not. This ‘word of mouth’ publicity of those who are already based here is very important for us to market ourselves and offer ourselves as a destination. It gives a good opportunity to compare ourselves as against other states.

NDTV: Are you from here on looking at having a new policy because one of the industrial policies is being spoken for a while? What do you want Maharashtra to be in the coming years?

Chavan: We had some financial incentives for large industries; we call them mega project policies. These policies are extremely successful. Around 60 per cent of businesses were located in the backward regions of Maharashtra. One of the objectives of the state is to make sure that the development happens in a more uniform way and goes to other regions also.

So, the new policy will give more attention to SME sectors, which did not get adequately covered in the previous policy. We are concerned about creating jobs and about developing backward regions. We are interested in creating value chain for businesses.

There is a new textile policy on the anvil and we are also promoting Maharashtra as a tourism destination.  Tourism has a large potential for employment creation. We are offering Maharashtra as an educational hub for medical tourism, for recreation, for hard core business and for IT as well. These are the sunrise areas in the industry.

As an innovation hub, Maharashtra has a lot of research institutions, which any global entity can combine, collaborate and create a vibrant research atmosphere out of because of the talent pool we have here.

NDTV: Where do the investment figures stand? How many MoUs have been converted into real projects that are on ground because there seems to be a perception that some of the MoUs have been signed, but at the end of the day, there are many projects that don’t take off because of various reasons?

Chavan: Our record of converting MoUs into projects is one of the highest and states like Tamil Nadu and Gujarat are much behind us. The state has a well-developed infrastructure. People just need to move into the areas, which are earmarked, or industrial parks or MIDC parks. There is a connectivity that is being improved every day.

The state that has got four international airports operating right now and two more international airports are likely to come up in Pune and Navi Mumbai. So road connectivity and second tier to airports, metro and mono rail infrastructure in large cities and other such activities are happening.  The urban infrastructure in large cities is improving. Improvement in the soft infrastructure of education; hospitals, cultural facilities, recreational facilities is likely to lead the whole country.

NDTV: How much investment should have come this fiscal, how do you expect the year to be closed?

Chavan: We have huge investment of Rs 2.46 lakh crore lined up. Some of the MoUs don’t materialize because of the local conditions. Hence, some of the companies may not invest depending on their own concerns and difficulties they have here.

But we have created a very user-friendly environment. All applications are issued online; decisions are faster the entire infrastructure. Land, water, residential accommodation, all are being given to new investors and new areas are being opened up.

NDTV: Do you see some big ticket MoUs on the sideline? The Maharashtra government is really working hard to try for some new big investments.

Chavan: Nobody can claim that the entire investment that is happening in India should happen in one state. Some states will get it depending on their comparative advantage and I have nothing against that but we are getting investments like GE, Foton Motors, which are the largest truck manufacturers in the world.

We are getting biotech sector investments, medical equipments, power plants are coming up. Our investment will be fulfilled in a very short time and we have a very good track record of the same. We are monitoring and facilitating every potential investor to make sure that he gets off the ground very quickly.

NDTV: What will be the challenges for you to attract FDIs as everyone is monitoring how Maharashtra will perform since there is huge deficit and there are some taxation issues, which still need a certain clarity so how do you plan to tackle those aspects?

Chavan: There are some issues about SEZs. When the Union government changed the direct tax code and they had certain taxations, which eliminated the advantage that SEZs had. We are still negotiating and discussing with the Union government; those direct tax code changes could be relooked at.

The Goods and Services Tax (GST) will come in next year, which will really convert India into a true common market and the transaction cost will reduce and add to the GDP in a substantial way.  We are looking at our own taxation systems so that users find it very convenient to work out.

I’m looking at a scenario, where only private sector can create a large number of jobs, government cannot. Therefore, the government has to create an enabling environment, where private sector can win not only in India but globally, but we have to be partners in this investment

NDTV: When you speak to foreign investors on the sidelines, acquisition of land becomes a matter of concern  because that is one area where lot of agitations have happened like many SEZs have not taken off in the state, do you think once the new bill is set in place, the situation will improve?  

Chavan: As far as medium level of land requirements are concerned, the industrial parks like MIDC already address that concern. We have differential tax SOPs for various areas, backward areas get more tax concessions and hence, medium levels of land requirements face problems.

When land requirement is huge and the industry wants to locate in a particular district for their reasons, then sometimes land acquisition has to be resorted to, but there are many difficulties. Many land acquisition happen in a negotiated manner, where we discuss with the farmers and give appropriate rate for the land. The land acquisition law that is happening in Delhi will strike a right balance between giving profits to people, who will lose their livelihoods and their land, so that they get some kind of an annuity payment throughout. These people should get their share in the profits.

They happily give their lands because they stand to gain much more than what they would have got. Also there is a potential of jobs being created and the land being developed. The land which are not acquired, are acquiring more value. It’s a win-win situation that needs to be created.

NDTV: What is the USP of Maharashtra that you are going to showcase?

Chavan: Maharashtra is the second largest state in the country; we have one of the largest populations in the world compared to any other country. We have the highest per capita income and the highest state GDP.

We have a huge talent pool of man power, highest number of universities, research pools. We have got a very diverse land and we have opportunities for tourism, medical cultural growth, so we have got something for everybody, who was looking for a composite kind of state.

So with the cosmopolitan nature of the state, a large number of people have come here. Many foreign companies come here and settle and become corporate citizens of the state. We offer an advantage which perhaps no other state in the country can offer.

We have already developed the largest number of international airports and a good rail infrastructure. So take any aspect from infrastructure, educational facilities, hospitals cultural facilities, sports and Maharashtra is leading there. We have very vibrant agriculture and huge purchasing power in the hands of the people.

 What is the USP of Maharashtra that you are going to showcase?

We have a huge talent pool of man power, highest number of universities, research pools. We have got a very diverse land and we have opportunities for tourism, medical cultural growth, so we have got something for everybody, who was looking for a composite kind of state.

So with the cosmopolitan nature of the state, a large number of people have come here. Many foreign companies come here and settle and become corporate citizens of the state. We offer an advantage which perhaps no other state in the country can offer.

We have already developed the largest number of international airports and a good rail infrastructure. So take any aspect from infrastructure, educational facilities, hospitals cultural facilities, sports and Maharashtra is leading there. We have very vibrant agriculture and huge purchasing power in the hands of the people....

your question goes here..?

your answer goes here...

With retail giants Wal-Mart Stores Inc and Carrefour circling India in anticipation of a rule change that would allow foreign investment in supermarkets, Asia's richest man is scrambling to capitalise on his early mover advantage.

Over the past few months, Reliance has accelerated store openings, brought in a management team from Wal-Mart China and launched wholesale operations that serve the small mom-and-pop players dominating the $450 billion Indian retail sector.

It has also rolled out its first large-format hypermarket outlets selling everything from food to furniture.

"In retail they are still a long way off," said Michiel van Voorst, portfolio manager for Asia-Pacific equities at Robeco Hong Kong, which is considering buying into the stock it sold off three years ago, tempted by its 22% decline in 2011.

"The business will still require a lot of investments, and there is no synergy to any of other activities of the company," said van Voorst, whose firm manages USD 2 billion in Asia.

Reliance battles the same problems that have thwarted faster growth for organised retail in Asia's third-largest economy, including expensive real estate and opposition from politically powerful small shop-owners, farmers and middlemen.

At the launch of the retail arm in 2006, the energy-focused conglomerate set out to build a USD 20 billion-revenue business by 2011.

For fiscal 2011 ended March 31, however, retail sales were just Rs 5,677 billion (USD 1.1 billion), according to two analysts' estimates, an increase of 27%, but a tiny share of the group's total haul of USD 53 billion.

Net loss in the business is estimated to have doubled to Rs 446 billion. The company acknowledges its retail business is loss-making but declined to verify those figures.

Tough Market
Reliance is the country's second-largest retailer by sales behind Future Group's Pantaloon Retail, but its overall market share is small in a country where more than 90% of the industry is made up of mom-and-pop stores.

After launching operations in November 2006, it grew to about 1,000 stores within three years, but soon found it did not have the systems and infrastructure to support that expansion.

Staff attrition, poor locations, supply-chain issues and infrastructure problems prompted it to shut nearly 50 stores within two years of the launch. Since then, the company has standardised its operations and increased centralisation of its supply chain.

"During the 2008 slowdown, we thought we were insulated but we have learnt a lot from what we did ," Bijou Kurien, chief executive of Reliance Retail's lifestyle arm, told Reuters.

Reliance's supermarket push hit major hurdles in 2007 and 2008, when it was chased out of the states of West Bengal, Jharkhand and Uttar Pradesh, India's most populous region, after protests by small-shop owners and farmers.

Reliance still does not have supermarkets in Uttar Pradesh, which was supposed to generate 15% of its retail revenue by 2011. It also lacks a major store presence in eastern India.

The standalone "kirana" shops, or neighbourhood mom-and-pop stores, and street-side vendors where most Indians buy groceries are popular because they are convenient and give credit.

They also operate with little overheads, forcing chains to compete on razor-thin margins.

Still, some of Reliance's local rivals including Pantaloons and Shopper's Stop have managed to make a profit, helped by a compact network of stores.

"The idea is to expand and make money in every store that we set up, and that would be the way in which we scale the business," Kurien said.

New faces, big boxes
To jumpstart its retail business, Reliance recently brought in Wal-Mart China's former chief operating officer Rob Cissell to head its supermarkets, along with his ex-colleague Shawn Gray, making up the retailer's third management team since 2006.

Its original management was replaced in 2009 with a team of expatriates led by Gwyn Sundhagul from Tesco Lotus in Thailand. He now works in another Reliance business.

"We are now going into a phase of execution," a senior executive at Reliance Retail said on condition of anonymity as he is not authorised to speak to the media.

"Our hypermarket initiative is now being driven by someone who has done this earlier in China, which is a similar market."

The changes at the top coincide with an expansion push that saw it open 60 stores in the last quarter, including its first two hypermarkets, which opened last month. That brought its overall store count to about 1,050.

The large-format stores are between 60,000 and 100,000 square feet and by next year will be supported by distribution centres in Delhi, Bangalore and Pune.

"The quality and efficiencies are much higher. The margin mix improves considerably. Small stores bring you visibility, but you need the big boxes for balance," the executive said.

Reliance also last month opened its first cash-and-carry, or wholesale, store in Ahmedabad, entering a format which Wal-Mart already tried with six such outlets in India through a joint venture with the parent of telecoms firm Bharti Airtel.

"We have also realised that 'kirana' stores will continue to coexist, so why not supply to them? It is an opportunity and we will not leave any opportunity," the Reliance official said.

Supermarkets account for 65% of Reliance's retail business, while specialty shops including local tie-up with global brands like Marks & Spencer, and Diesel make up the rest.

"Their big gap is how to stabilise and run the operations. They have to stick to one plan and move, and that is their biggest challenge," said Pinakiranjan Mishra, head for consumer products and retail at advisory firm Ernst & Young. "If you change the model every one-and-a-half, two years and if you change the team, everything has to be reset," he said.

Financia Muscle
The advantage Reliance holds over its Indian rivals is its financial muscle.
While local chains, many of them loss-making and cash-constrained, look to hook up with the global players keen to enter India once rules allow, Reliance has the wherewithal and the intention to go it alone.

"The area which is of concern for other retailers is finding capital. That is not so much a challenge for us," said Kurien. Reliance, which owns the world's biggest oil refinery, boasted USD 12.6 billion of cash at the end of September.

Reliance also has the advantage of time, as a politically weakened leadership in New Delhi drags its feet on allowing foreign investment into multi-brand retail, which is opposed by sections of the ruling Congress party as well as the main opposition Bharatiya Janata Party.

Wal-Mart and others are expected to take years to build scale in a challenging Indian market.

"There will certainly be competition, possibly price wars," said Anish Sarkar, head of consulting at Capgemini India. "But the battle for the next few years will not be for market share but for expanding the market itself."
But not everyone is convinced that retail is the best use of Reliance's formidable resources.
"I can understand if they want to invest in organised retail, but they should be investing in that outside of the main company, from separate capital," Robeco's van Voorst said. "Otherwise there is concern that capital that yielded high returns is now deployed in assets that are not yielding much value," he said.

With growth in its core energy business below expectations over the past year, Reliance has been keen to diversify and has ventured into areas such as telecoms and financial services.

Reliance is hopeful that the new management would exceed the 20 percent same-store sales growth that it is on track for this fiscal year, gradually giving the business higher visibility. "We have big plans for this business," Kurien said. "We want to be the largest retail company in the country, as no one really remembers who came second."

You've been highlighting lately that you are not seeing stress in asset quality despite echoes across the street over loans given to SEBs. How do you see the situation panning out going forward? You see regular payments coming from SEBs or you'll also resort to restructuring at some point if not soon?

As far as state undertaking is concerned, there is no default by any of the discoms in the state public sector company. The fuel is the major issue. Moreover, the companies that are coming out with power generation are also facing clearance problems like forest clearance, environment clearance and land. The government has appointed a new committee under VK Chaturvedi, who is a member of the planning commission; the committee suggests that the state regulator should fill the tariff every year and the discount should be submitted.

Tariff hikes if taken by SEBs, by how much they will improve your financials; for instance if there is a tariff hike of 20-30 per cent?

At present, the average tariff of the discoms is at Rs. 3. The overall losses are around 20 per cent. As far as the losses are concerned, if we take the losses excluding subsidy element, then the losses will be Rs. 40-50 thousand crore. If they increase tariffs, then they can meet all the obligations of payment that will improve their financial health also.

Have you become cautious now in terms of more lending to SEBs?

We are cautious on lending. We are improving conditions while giving short term loans. They have submitted tele-petition to the regulator following the provisions of 2003, and they are not providing loans through the general revenue flow.