Sensex closes 102 points up

Mumbai, Feb 6 (PTI): The Bombay Stock Exchange benchmark sensex today registered gains for the fifth straight session, rising over 102 points as realty and capital goods stocks led the rally on continued buying by funds, amid firm trend in the Asian region.

 Sensex, which had gained over 741 points in last four sessions, rose another 102.35 points, 0.58%, to 17,707.31 after touching the day's high of 17,829.72 - a level last seen on October 28, last year.

 Similarly, the National Stock Exchange index, Nifty rose 35.80 points, or 0.67% to 5,361.65 after shuttling between 5,390.05 and 5,327.25.

Among the realty stocks, DLF Ltd shot up by 2%, DB Realty by 12.03%, Unitech by 13.08% and HDIL by 4.34%.

 Brokers said positive cues from other Asia bourses, which were up following encouraging US jobs data, and continued capital inflows by FIIs boosted trading sentiments.

 However, there was profit-booking in select counters, which trimmed early gains.

 They also said that the dismissal of a petition by the special court to investigate home minister P Chidambaram in the 2G spectrum allocation scam supported positive sentiment.

 Major gainers included Larsen and Toubro, BHEL, Siemens Ltd, SBI, ICICI Bank, HDFC Bank, Bajaj Auto, Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hindalco, Sterlite Industries and Cipla India.

Budget FY12-13 likely to increase tax exemption limit to Rs 2 lakh

New Delhi, Feb 6 (PTI): The government is likely to provide some relief to individual income tax payers in the forthcoming Budget by raising the exemption limit to Rs 2 lakh, as provided in the Direct Taxes Code (DTC), and hiking the slabs for different tax brackets.

The possibility of lowering the tax rates, however, is remote in view of the fiscal constraints being faced by the government, sources said, adding that the government will take on board some of the key recommendations of the DTC.

DTC, which is currently being scrutinised by the Parliamentary Standing Committee, has suggested that the income tax exemption limit be hiked to Rs 2 lakh from Rs 1.8 lakh at present. It also proposes that the highest personal income tax rate of 30 per cent should apply to annual income above Rs 10 lakh, as against Rs 8 lakh.

Finance Minister Pranab Mukherjee will be unveiling the Budget proposals for 2012-13 sometime around mid-March. The industry too is demanding that in view of high inflation, the income tax slab should be increased although the government may retain the existing tax rates.

CII Director General Chandrajit Banerjee suggested that basic exemption limit should be increased from Rs 1.8 lakh to Rs 2.5 lakh for individuals. "We have suggested that the income in the range of Rs 2.5 lakh to Rs 6 lakh should be taxed at the rate of 10 per cent, whereas that in the next slab up to Rs 10 lakh can be taxed at the rate of 20 per cent. Above Rs 10 lakh, it should be taxed at 30 per cent," Banerjee said.

FICCI Secretary General Rajiv Kumar said the government should incentivise people to come into tax bracket.

"Given the revenue constraints, the income tax rates for individuals may not be reduced. It is, however, imperative that the peak rate of 30 per cent for such assesses be made applicable over an income of Rs 10 lakh, against Rs 8 lakh at present," Kumar said.

Assocham President Dilip Modi said the Budget should provide basic exemption limit of Rs 2 lakh and the tax rate of 10 per cent should apply to persons having income above Rs 2 lakh and up to Rs 5 lakh. Calling for raising the tax exemption limit, PHD Chamber Secretary General Sushmita Shekhar argued that it is necessary to increase disposable income and boost demand in the economy.

"India is a consumption led economy. Role of private sector consumption in boosting the overall economic growth is immense," she said.

RBI relaxes cap on banks' forex positions

New Delhi, Feb 6 (PTI): The Reserve Bank on Monday said it has relaxed the limits on foreign exchange positions of banks imposed in the aftermath of a steep fall of the rupee in December.

"Some limits based on their (banks') merchant positions have been relaxed. If they have a requirement, they can come and approach us through the Fedai (Foreign Exchange Dealer's Association of India)," RBI Deputy Governor HR Khan told reporters.

Some banks were reportedly finding it difficult to meet client demands due to the restrictions and sought to run higher net overnight open positions in foreign exchange.

Khan said banks will have to approach RBI with permission from their chairmen and managing directors and explain why, and by how much, do they need the relaxations.

Amidst concerns that the rupee may be sliding due to speculative play, RBI had imposed conditions under which overnight limits were capped at Rs 50 crore for banks.

The rupee, which was the worst performer among the leading Asian currencies in 2011, went down by nearly 20 per cent to an all time low of Rs 54.30 against the dollar in the year. However, it has been gaining in the past few weeks and is now trading at Rs 48.70-48.90 levels.

Chamber presents wish list on tax reforms to FM

New Delhi, Feb 6 (PTI): Tamilnadu Chamber of Commerce and Industry has appealed to the Centre to undertake tax reforms including increase of individual income tax slabs and annual turnover limit for mandatory tax audit for non-corporate entities.

In a memorandum submitted to Union Finance Minister Pranab Mukherjee, chamber President N Jegatheesan sought increasing the I-T rates to Rs.2.5 lakh for men and Rs 3 lakh for women and Rs 4 lakh for senior citizens.

The memorandum said tax reforms would substantially bring out tax evasion,and avert a setback to the economy due to sustained generation of unaccounted money and proliferate investments in trade and Industry there by ensuirng considerable flow of tax revenue.

The chamber urged enhancing the annual turnover limit for mandatory tax audit for non-corporate entities under Sec44AB of Income tax from the present Rs 60 lakh to Rs 2 crore. The annual turnover exemption limit for central excise levy for small scale industries sector should be increased from Rs 1.5 crore to Rs 3 crore.

He also urged concession for semi-mechanised match units as they provided jobs for many people unlike fully mechanised units. The chambers also wanted exemption from paying service tax for the service provided by them.

Government asks ONGC, OIL to pay Rs 36,900 cr in fuel subsidy

New Delhi, Feb 6 (PTI): The government has asked upstream oil firms like Oil and Natural Gas Corp (ONGC) to give about Rs 36,900 crore in fuel subsidy during April to December 2011, an official said on Monday.

Fuel retailers Indian Oil Corp (IOC), Hindustan Petroleum (HPCL) and Bharat Petroleum (BPCL) lost Rs 97,300 crore in revenue on selling diesel, LPG and kerosene at government controlled rates during the first nine months of current fiscal.

"Of this, the upstream companies have been asked to make good 37.91 per cent or Rs 36,894 crore," the official said.

The government regulates rates of diesel, domestic LPG and kerosene to keep inflation under check. The revenue loss incurred by retailers on selling fuel below cost is split between the government and the oil companies.

The government has so far provided Rs 30,000 crore in cash subsidy to make up for more than half of the revenues that IOC, BPCL and HPCL lost on fuel sales during first half.

Upstream firms made good one-third of the revenue loss. While the government has not yet provided subsidy for the third quarter, upstream firms are to consider their third quarter numbers this week.

ONGC, Oil India and GAIL India had in first six months paid fuel subsidy at the rate of 33.33 per cent of the revenue loss on fuel sales. And so, they will pay extra in the third quarter to average the payout at 37.91 per cent for the April-December period.

The official said ONGC will pay Rs 30,296 crore in the nine month period, up 42.3 per cent over Rs 21,291 crore payout in the same period a year ago.

The company had in the first six months shelled out Rs 17,760 crore and so it will provide an additional Rs 12,536 crore in the third quarter when it considers Q3 earnings this week.

OIL will pay Rs 4,478 crore in fuel subsidy in the April-December period as opposed to Rs 1,596.68 crore payout in the corresponding period of last year.

It had in first half paid Rs 2,625.09 crore in fuel subsidy and would give a further Rs 1,852.91 crore in the third quarter when it considers financial results on Saturday.

GAIL's share has been fixed at Rs 2,120 crore for the first nine months of current fiscal, the official said.

While the government had in June 2010 freed pricing of petrol from its control, it continues to regulate retail rates of diesel, domestic LPG and kerosene.

Gold futures rise on global cues

New Delhi, Feb 6 (PTI):  Buoyed by a firming global trend, gold prices rose by Rs 124 to Rs 28,347 per ten grams in futures trade on Monday.

 At the Multi Commodity Exchange, gold for delivery in June month rose by Rs 124, or 0.44 per cent to Rs 28,347 per ten grams in business turnover of 136 lots.

 In a similar fashion, the metal for delivery in April contract moved up by Rs 107, or 0.38 per cent to Rs 27,998 per ten grams in 3704 lots.

Analysts said apart from a firming trend in overseas markets, fresh buying by speculators for the marriage season mainly led to rise in gold futures.

 Meanwhile, gold climbed 0.6 per cent to 1,737.15 dollar an ounce in Singapore.

 SpiceJet posts Rs 39.26 cr Q3 loss due to ATF, dollar rise

New Delhi, Feb 6 (PTI):  Budget airline SpiceJet posted a loss of Rs 39.26 crore for the quarter ended December 31, 2011, due to escalating ATF prices and increase in the US dollar rates.

The air carrier had a profit of Rs 94.44 crore for the comparable period last fiscal, it said in a filing to the BSE.

"... During the quarter ended December 31, 2011, we were able to realize major gains in market share, improve the revenue mix and achieve significant cost savings aided by a relentless drive to boost operational efficiencies".

"Accordingly, our losses at the Profit Before Tax (PBT) level fell by more than Rs 200 crore as compared to the immediately preceding quarter. But for escalating ATF prices and abnormal increase in the US Dollar rates the financial performance could have been much better this quarter," SpiceJet Chief Executive Officer Neil Mills said.

The December quarters loss has narrowed from Rs 240 crore that the Kalanithi Maran-led airline had reported during the second quarter ended September 30, 2011.

Further, during the third quarter, the company's revenue increased by 41 per cent to Rs 1,175 crore from Rs 831 crore of the corresponding quarter a year ago.

The company said aircraft fuel expenses were 90 per cent higher than the same period last year and fuel cost as a proportion constituted 50 per cent of the total revenue in the current quarter compared to 37 per cent in the same quarter of the previous year.

"Increased cost of crude oil plus 24 per cent tax on ATF is continuing to impact the Indian civil aviation sector very adversely," the company said.

It, however, added the outlook for the industry is considerably better now with recent media reports indicating that a liberalization of FDI in the sector may be on the cards.

Preity Zinta's KPH Dream Cricket posts Rs 35.26 cr loss in FY11

New Delhi, Feb 6 (PTI): As franchisees gear up for the next IPL season, Bollywood actress Preity Zinta co-owned KPH Dream Cricket Private Ltd continues to be a loss making venture, with accumulated losses of Rs 68.08 crore in 2010-11 from three IPLs already held.

KPH Dream, which owns IPL franchisee outfit Kings XI Punjab, recorded accumulated losses of Rs 32.82 crore in 2009-10.

In financial statements filed with Registrars of Companies here, KPH Dream has reported a net loss of Rs 35.26 crore for the year 2010-11, highest loss suffered by the company since the commencement of IPL in 2008.

Kings XI Punjab was reportedly looking at reaching break- even by March, 2011.

Besides, the company's expenses were much higher than the income it generated. It reported total income of Rs 49.88 crore against the total expenditure of Rs 85.14 crore in 2010-11.

The company's total income dipped to Rs 49.88 crore in 2010-11 against Rs 94.38 crore earned in 2009-10, as per the details submitted.

Kings XI Punjab's major source of income has been from franchise rights and sponsorship fee which stood at Rs 27.33 crore and Rs 14.94 crore, respectively, although company's income from ticket sales was just Rs 5.74 crore in 2010-11.

The company's maximum expenditure has been on depreciation and players cost, including players' fee at Rs 30.62 crore and Rs 15.93 crore, respectively in 2010-11, as per company's financial statement.

KPH Dream had committed $76 million as franchise cost for over 10 years.

According to the shareholding pattern in the company, actress Preity Zinta and industrialist Ness Wadia have stakes of 23 per cent each, while rest is owned by Mohit Burman another industrialist, Karan Paul Chairman of Apeejay-Surrendra Group, Colway Investment and Root Investment.

Godrej Industries Q3 net up 39.34% at Rs 85 crore

Mumbai, Feb 6 (PTI): Godrej Industries Ltd on Monday said that its consolidated net profit rose by 39.34 per cent to Rs 85 crore in the quarter ended December 31, 2011, driven by robust growth across all business segments.

The company had posted a net profit of Rs 61 crore for the corresponding period last fiscal, Godrej Industries said in a statement.

Total income of the company rose to Rs 1,520 crore in the quarter ended December 31, 2011, from Rs 1,076 crore in the corresponding period of the previous fiscal.

Commenting on the results, Godrej Industries Ltd Chairman A B Godrej said, "Q3, FY2012, has been a period of strong performance delivered across all our businesses, resulting in a healthy overall growth."

The company said its board, which met today, has also approved a revised capital expenditure of Rs 296 crore.

"The capital expenditure is being incurred over a two-year period," the company said.

The increased capital expenditure is mainly on account of the increased scope of plants, additional activities, expenses on account of creating facilities in low-lying land areas and inflation in material costs related to construction, it added.

During the quarter under review, the company's chemicals business grew by 23 per cent vis-a-vis the corresponding period of the previous fiscal.

Sales of the company's agri-business arm, Godrej Agrovet Limited (GAVL), increased by 27 per cent in the third quarter, vis-a-vis the same period last fiscal.

Shares of Godrej Industries closed at Rs 212.80 on the BSE today, up 2.60 per cent from their previous close.

Himadri Chemicals to invest Rs 1,900 cr for capacity expansion

New Delhi, Feb 6 (PTI): The integrated specialty carbon corporation and the coal tar pitch producer Himadri Chemicals on Monday said that it is planning to invest Rs 1,900 crore for coal tar capacity expansion and foraying into new by-products like pitch coke, a senior company executive has said.

"We have lined up to invest Rs 1,200 crore for expanding our coal tar capacity to one million tonne by 2015, from the present 2.5 lakh tonne in phases. We are also looking to invest Rs 700 crore to add new by-products to our current portfolio," Himadri Chemicals and Industries CEO Anurag Choudhary said.

This funding will be done in a phased manner, partly through internal accrual and partly through debt, he added.

"In the first phase, the capacity will be increased to four lakh tonne by December this year," he said.

At present, the West Bengal-based company manufactures eight by-products, with different applications used in aluminium, rubber, dye and intermediaries, batteries and pipelines among others.

The company is planning to set up a green field manufacturing unit to produce pitch coke in Hoogly in West Bengal in next three years with an investment of Rs 700 crore with a capacity of 50,000 tonne, he said adding that the funding will be done through internal accrual and debt.

Pitch coke is used as a basic raw material for electrode industry.

The company, he said, is setting up an advanced carbon material unit in Falta in West Bengal with a 10,000 tonne capacity by 2015.

"We are expecting to produce 300 tonne of advanced carbon material from our Falta unit by December this year and expand it to 10,000 tonne by 2015," he added.

Himadri Chemicals is also working on setting up a green field plant to produce carbon fibre, which is used in high technology aircraft, etc.

"We are still mulling over it and will soon take a decision on it," he added.

Adani Ports Q3 net up 36% to Rs 310.59 cr

New Delhi, Feb 6 (PTI): Adani Ports and SEZ on 6 February reported a 35.95 per cent growth in net profit to Rs 310.59 crore for the quarter ended 31 December, 2011.

The company, formerly known as Mundra Ports and SEZ, had reported a net profit of Rs 228.47 crore during the corresponding quarter a year ago.

Net sales For October-December 2011 rose by 55.71 per cent to Rs 655.37 crore, from Rs 420.68 crore in the year-ago period, the company said in a filing to the Bombay Stock Exchange.

The company added that it will pay an interim dividend of Rs 0.30 per equity share of Rs 2 each for the current fiscal.

However, the firm’s net finance cost increased by about six times to Rs 78.31 crore in the quarter, largely due to losses incurred on derivative contracts.

The filing to the exchange added that the company paid Rs 25.15 crore, which is net of minimum alternate tax (MAT), although it has filed a public interest litigation (PIL) against the levy of MAT on a special economic zone (SEZ) developer.

The MAT on SEZ developers was introduced in this fiscal’s budget by Finance Minister Pranab Mukherjee.

The Adani group company, which changed its name on 6 January, also said that Abbot Point Coal Terminal of Australia has been incorporated as its step down subsidiary on December 6, 2011. The company acquired Abbot Coal Terminal for about Rs 9,000 crore (AUD 1.8 billion) in May, 2011.

Shares of the company were trading at Rs 148.05 on the BSE at 245 p.m, down from the previous close of Rs 149.90.