Doubt and hope cloud Ajay Piramal and Rahul Bajaj's expectations of India's 26/11-preparedness

 
The trauma is receding, but India's industry leaders still feel a lack of confidence on the fifth anniversary of November 26. Frontline leaders feel that while the government has taken some steps, a lot still needs to be done before confidence comes back.

Five years since the attack, memories of the incident in which over 160 people were killed does not instil confidence among business leaders that such an act will not happen again.

"No significant measures to restore confidence come to mind. I am not confident that it won't take place, again," says Ajay Piramal, chairman, Piramal Group.

In 2008, when Business Today asked the question: will this be enough to kick-start a reversal in confidence and in activity? Industry leaders responded with hope, and expectation. "I feel the entire issue of security and governance will, in fact, be revisited and hopefully we will see improvements," Adi Godrej, Chairman, Godrej Group had said then. Ness Wadia, Joint MD, Bombay Dyeing had said, "This is a long-awaited wake-up call."

Today, Rahul Bajaj, chairman, Bajaj Group, says he is still not confident enough. "I can only hope that my government has taken steps and will continue to ensure that such an event will not happen again on Indian soil".

On November 26, 2008, at around 9.30 pm, Mumbai came under siege by 10 gunmen who launched simultaneous attacks on key business and tourist locations. These included five-star hotels The Taj, Oberoi and Trident hotels, Leopold Cafe, a restaurant in the shopping district of Colaba famous for being a haunt of foreign tourists, the crowded Chatrapati Shivaji Terminus, Nariman House, and Cama Hospital.

Mumbai's businesses were hit right in their nerve centre in the event. Ashok Kapur, then chairman of YES Bank was one of the victims. His funeral at Baanganga in South Bombay was attended by CEOs from all over the country, including those from the Tata Group and elsewhere. Anand Bhatt, a senior partner of Wadia, Ghandy & Company, a leading legal firm, lost his life as well.

While the hotels lost close to a year of business due to renovation (actual losses of which still remain unknown), business sentiment towards India had also taken a beating. Media reports suggest while Taj incurred a loss of around Rs 400 crore, Oberoi Group spent close to $40 million (Rs 170 crore then) in renovating the two properties overlooking the Arabian Sea. The 60 hours of terror spread over four days, had resulted in a loss of roughly Rs 4,000 crore to Mumbai, industry body Assocham estimated in 2008 after talking to companies and industries in the city.

Even today, the Taj Mahal palace has a barricade all around it. Most large office complexes are gated and have high, electronically monitored walls. Private security firms have proliferated, and metal detectors and frisking is mandatory, even at shopping malls and theatres.

Terrorist have struck in India after 26/11. People have died in bakeries and on trains. Questions are being asked, and inevitable comparisons are coming out. "It has been thirteen years since 9/11. Since then in the US, no major incident has occurred. But terrorist attacks have happened here," says Piramal.

BSE Sensex trades in red as investors book profits

 
The BSE Sensex fell over 66 points in early trade as investors booked profits after on Monday's strong rally amid a mixed trend on other Asian bourses.

The 30-share index of the Bombay Stock Exchange fell by 66.06 points, or 0.32 per cent, to 20,539.02, led by losses in stocks of FMCG, IT, banking, realty and oil and gas sectors.

The Sensex had gained nearly 388 points in the previous session.

Similarly, the wide-based National Stock Exchange index Nifty shed 17.15 points, or 0.28 per cent, to 6,098.20.

In the Asian region, Japan's Nikkei Index was down by 0.69 per cent, while Hong Kong's Hang Seng index gained 0.09 per cent in early trade on Tuesday.

The US Dow Jones Industrial Average ended 0.05 per cent higher on Monday.

BSE Sensex snaps 3-day losing streak on fund buying

 
The BSE Sensex snapped its three-day losing streak, recovering over 223 points in early trade on Monday, on emergence of buying by funds.

Brokers said a firming trend in other Asian bourses, after US markets hit another record high on Friday, also buoyed the trading sentiment on Dalal Street.

Besides, expectations of a drop in import bill after crude oil prices fell in the overseas markets, following a key deal between world powers and Iran on its controversial nuclear programme, also triggered buying activity, they said.

The 30-share index of the Bombay Stock Exchange, which had lost nearly 674 points in the previous three sessions, recovered 223.26 points, or 1.10 per cent, to 20,440.65.

The 50-share National Stock Exchange Nifty moved up by 68.75 points, or 1.15 per cent, to 6,064.20.

Stocks of banking, realty, oil and gas and FMCG sectors led the recovery.

Stocks of state-run oil marketing companies too rose. Indian Oil shares gained 1.99 per cent to Rs 204.70. Hindustan Petroleum rose 4.25 per cent to Rs 211 and Bharat Petroleum gained 2.68 per cent to Rs 341.60.

Reliance Industries shares also gained 1.27 per cent to Rs 854.65.

In other Asian markets, Japan's Nikkei index rose by 1.36 per cent while Hong Kong's Hang Seng gained 0.56 per cent in early trade on Monday.

The US Dow Jones Industrial Average had surged to yet another high by gaining 0.34 per cent on Friday.

ONGC Videsh eyes Chevron gas block in Vietnam

State-owned Oil and Natural Gas Corporation's (ONGC) overseas arm ONGC Videsh (OVL) plans to buy a stake in US super major Chevron's $4.3-billion Block B gas project in Vietnam.

Chevron has called for expression of interests from international firms willing to farm in (or buy stake), said sources adding that OVL is keen to take part or whole of the stake in the block, which has 4 trillion cubic feet of inplace reserves, of which 63 per cent can be recovered or produced.

Chevron holds 42.38-per cent stake in Blocks B and 48/95 in Malay-Tho Chu Basin of Vietnam. It can produce up to 490 million cubic feet of gas and 6,000-7,000 barrel of condensate per day.

Others who are reported to be interested in picking up the stake include Gazprom of Russia. Hanoi is seeking to involve Russia and India to counter the influence of China, with whom it has a territorial dispute. It has offered OVL five offshore oil and gas exploration areas in South China Sea and its Kossor block in Uzbekistan without bidding.

Sources said that OVL feels Vietnam will support its bid for Chevron stake by giving necessary approval and waiving its first right of refusal. OVL already has 45-per cent stake in Block 06.1, which produces about 12.8 million standard cubic metres per day of gas and 1,896 barrels per day of condensate.

OVL feels it can get the Chevron stake as it has an experience in operating at the offshore Vietnam.

Sources said that Chevron has prepared a development plan to produce gas from the block but hasn't started work over a dispute with Vietnam's national oil firm PetroVietnam about the price of gas.

In association with Mail Today

Rupee, FIIs to set the trend for stock markets this week

 
The monthly derivatives contract would expire on Thursday followed by announcement of GDP data for the second quarter on Friday.

The movement of the rupee, which has been under pressure in the last few days, and action of foreign institutional investors (FIIs), who seem to have turned cautious last week, would be the main drivers this week.

Besides, hints by the US Federal Reserve on timing of the stimulus tapering would also affect the market.

Key levels for this week will be 19,910 and 20,625 on the Sensex and 5,915 and 6,145 on the Nifty.

Markets rallied on the first two days and lost on the next two while remaining flat on the fifth day. Markets tested important levels when the Sensex turned just before the low of November 13 while the Nifty took support at the same level. This technical set-up could trigger a rally. The October series futures had expired at 6,164.35 points. The current market is lower by 169 points, or 2.74 per cent.

The bulls are having an upper hand and unlikely to give way so easily. This week will be volatile with sharp intra-day moves but an upward bias.

Investment by FIIs in the last three trading days of the last week was virtually flat. This could be attributed to them turning cautious post the Federal Open Market Committee meeting, minutes of which indicate that tapering may happen earlier than expected. FIIs were net buyers of equity worth Rs 1,924 crore while domestic institutions were net sellers of Rs 813 crore.

The special window for foreign currency non-resident deposits opened by the Reserve Bank of India will close on November 30. It has has attracted remittance of $22.7 billion so far.

Dow Jones continued to rally and closed at 16,064 points, a gain of 103 points, or 0.64 per cent. Gold prices have been falling internationally and closed at $1,243 an ounce, quite close to the low made in June, $1,211.

In India, the price of gold is Rs 31,000 - courtesy the periodical import duty, which has been levied, and the depreciating rupee, which has fallen from 55-56 to 63.

National Hydroelectric Power Corporation (NHPC) will buy back up to 10 per cent of fully paid-up equity capital, which works out to 123 crore equity shares at Rs 19.25 apiece payable in cash, for an aggregate amount of Rs 2,367.89 crore through tender offer.

These shares were issued at Rs 36 in August 2009.