BSE Sensex surges over 400 points in early trade, Rupee hits 1-month high

 
The BSE Sensex crossed the psychological 21,000 level by surging over 400 points in early trade on Thursday following heavy fund inflows amidst exit polls forecasting good show by the BJP in state assembly elections.

At 10.13 am, Sensex was up 389.57 points at  21098.28. Similarly, Nifty was up 117.45 points at 6278.40 duriing the same time.

Brokers said a flurry of buying by funds as well as retail investors, triggered by exit polls predicting good show by the main Opposition party in state assembly elections, buoyed the trading sentiments.

The rupee on Thursday rose by 30 paise to trade at fresh one-month high of 61.75 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters, amid sustained foreign capital inflows.

The 30-share index, which had lost 189.30 points in the previous two sessions, rebounded by 439.55 points, or 2.12 per cent, to trade above 21,000 level at 21,148.26 in early trade.

All the sectoral indices, led by banking, capital goods and realty, were trading in positive zone with gains up to 4.02 per cent.

The wide-based National Stock Exchange index Nifty spurted by 121.90, or 1.98 per cent, to 6,282.85.

Major gainers are ICICI Bank, SBI, HDFC Bank, RIL, Infosys, TCS, ITC, Bharti Airtel, Bajaj Auto, Larsen and Toubro and BHEL.

In the Asian region, Japan's Nikkei fell 0.35 per cent, while Hong Kong's Hang Seng was down 0.40 per cent in early trade on Thursday.

The US Dow Jones Industrial Average closed 0.16 per cent lower in Wednesday's trade.

HTC One Mini faces UK ban after court ruling on patent infringement

 
HTC Corp will have to stop selling its One Mini smartphone in Britain from Dec 6 after a British court ruled the Taiwanese company had infringed patents owned by Finnish rival Nokia.

Justice Richard Arnold of the England and Wales High Court on Tuesday granted Nokia a final injunction to stop HTC from continuing to infringe upon a European Patent held by Nokia related to mobile phone microchips. The judge had ruled in October that HTC's One phone contained the microchips.

HTC, responding to the lawsuit, said on Wednesday it would appeal the ruling. "We have filed urgent application to appeal. In the meantime, we are working with our chip suppliers to explore alternative solutions," it said in a statement.

Analysts said the ban would have limited impact on HTC's sales as the One Mini is also not its flagship model. Europe accounts for around 20 percent of the company's overall sales, they added.

Shares in HTC slid 3.6 per cent in early trading on Wednesday, underperforming a 0.2 per cent gain in the broader Taiwan market.

Pending appeal
The British judge had allowed HTC a partial stay on the ruling, so that it can continue selling its flagship One model pending an appeal, because a ban would cause "considerable damage" to HTC's UK business.

But for the smaller One Mini, the judge said the balance came down in favour of refusing a stay because HTC had designed and launched it when it knew it was facing a claim for infringement of the patent.

Nokia in a statement said "pending the appeal, HTC has undertaken not to ship any more of the infringing products into the UK, except the HTC One, which it may continue to sell until the conclusion of any appeal."

"If HTC does not succeed on appeal, the injunction will take effect on all infringing products. Nokia is also claiming financial compensation for the infringement of this patent."

HTC started selling the One series in March.

NSEL crisis: Over 30 brokers under regulatory scanner

 
As the NSEL crisis deepens, role of at least 32 brokerage firms has come under the scanner for allegedly charging high transaction charges and providing portfolio management and margin funding services to their clients in violation of regulations.

These brokers were apparently working as Carrying and Forward (C&F) agents as well for National Spot Exchange Ltd (NSEL) without checking the veracity of commodities lying in the warehouses, and kept investors in the dark about non-availability of commodities on which their clients were taking positions.

Margin funding is when brokers arrange to finance investors' purchases and charge money for such loans.

According to sources, various regulators including Sebi and FMC are looking into the role of these brokers, who were registered in both stocks and commodities markets.

Among the 32 brokers, 14 are from Gujarat, seven from Rajasthan and others are from states like Maharashtra, Delhi, Andhra Pradesh and Punjab.

These brokers, with a large outstanding on NSEL, were charging Rs 25 per lakh of transaction from their clients.

The regulators have received complaints that margin funding happened with the broking firms and their associates financing 80-90 per cent of exposure on NSEL, while balance was paid by high networth clients (HNIs), sources said.

The brokers were apparently charging Rs 100 per lakh as brokerage and additional commission for providing margin funding.

These stock brokers have come under regulatory scanner for inducing HNIs and other investors to trade on the spot market commodity exchange with promise of high returns.

They allegedly mis-sold the commodities forward contracts on NSEL to to their investors as lucrative investment products garnering fully secure returns of up to 18 per cent under portfolio management services.

The spot commodity bourse, promoted by Jignesh Shah-led Financial Technologies (FTIL), has been facing problems in settling Rs 5,600 crore dues of 148 member brokers, representing 13,000 investor clients, after it suspended trading on July 31 after government directions.

NSEL has so far settled about Rs 244 crore against about Rs 5,600 crore dues to 13,000 investors.

Earlier this week, police had attached properties of Shah, also a Director of NSEL and three others.

Besides Shah, properties of Joseph Massey, also a Director at the now defunct spot Exchange, and two others were attached by Mumbai Police's Economic Offences Wing (EOW) which is investigating the scam that came to light in late July.

Wipro to log out of PC manufacturing business

 
After HCL Infosystems, another IT firm Wipro has decided to shut down its manufacturing of computers and servers due to the changing market scenario and consumer preferences.

Azim Premji-led Wipro, the country's third largest software services player, said it will re-deploy all the affected employees in the company.

However, the company will continue to have a presence in the hardware business offering solutions in large integrated deals.

"After evaluating the changing market scenario and customer needs, Wipro has decided to strengthen its position as system integrator (SI) and increase its focus on IT solutions and services," Wipro said in a statement.

As a consequence, the company will discontinue manufacturing of Wipro branded desktops, laptops and servers, it added.

Last month, HCL Infosystems said it will phase-off its manufacturing business in the next few years to improve margins and increase organisational efficiency.

Instead, HCL Infosystems will instead focus on strengthening its services and distribution verticals.

Revenues for PC makers have been under pressure for some time now as newer devices like tablets and phablets are finding more takers.

Also, over the last few years, most PC makers in the country have incurred losses due to the rupee's fluctuation against other currencies, especially the US dollar.

This has hurt the PC business in India as it is low-margin and almost 90-95 per cent of the components are imported.

Wipro will, however, be present in the PC market by providing suitable brands as a part of its solutions offerings in large integrated deals, it said.

"Our vision is to strengthen our position as a leading SI. Manufacturing our own PCs was not giving us a competitive differentiation in our SI solution offering," Wipro Infotech Senior VP and Head Soumitro Ghosh said.

Vodafone to invest $3 billion over 2 years in India

 
Notwithstanding its nearly Rs 12,000 crore tax dispute with the government, Vodafone plans to invest $3 billion in the next two years that will be deployed for network expansion in rural areas.

Vodafone global CEO Vittorio Colao, however, declined to go into the details of the "positive" meeting he had with Finance Minister P Chidambaram on Tuesday on the tax issue.

"I am grateful to the Finance Minister for giving me time to meet him. It is good to have a dialogue between an enterprise and the policy maker. It is positive," Colao said, but he parried a question whether Vodafone would be willing to pay up around Rs 11,200 crore income tax demand.

He said Vodafone was incredibly positive about India not only from the business point of view but otherwise too.

Colao said in the next two years, Vodafone will invest $3 billion in India.

"Our organic or real investment into the country is a significant $3 billion in two years... is the right decision," he said making it clear that the tax dispute with the government is in no way upsetting their plans for India.

He said he believed in India and also the data in it.

After Germany, India is a priority market for Vodafone for long-term investments in technology and data, he added.

He said the proposed $3 billion investment excludes spectrum fee the company has to pay.

"First, India has an opportunity for growth because of population and other factors. We will be long-term players. I am happy we are here for long-term investment. I am not here for 4 years but for 20 years and more," Colao said.

To a question, he said the tax issue will not affect Vodafone's hiring plans and investment and developing network in India.

The British telecom major is facing a tax liability of over Rs 11,200 crore, along with interest, on its 2007 acquisition of Honk Kong-based Hutchison Whampoa's stake in India's telecom major, Hutchison Essar.