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THE ECONOMIC TIMES NEWS
1ST NOV- 5TH NOV
GLOBAL LUXURY BRANDS LIGHT UP FOR
INDIA
 China, so far, has been the lodestar for luxe labels looking east
 With western markets still to recover, they have now realised that
putting all their eggs in China basket can be shattering if there are
any future shocks
 LAP OF LUXURY
 Louis Vuitton has readied a worldwide Diwali-themed splash for its stores
starting from November Swiss watchmaker
 Bugatti Veyron 16.4 Grand Sport, with a price tag of over 16 cr, has also
made its India debut
 Audemars Piguet recently unveiled a 2.1-cr watch
BIG IT MOVES MORE WORK, JOBS TO CHINA-
INDIA’S RISING GEOPOLITICAL RISKS ARE A
CONCERN
SUBBARAO GOES FOR THE KILL TO TAME
PRICE DEVIL
 Raises Repo,Reverse Repo Rates 25 Bps Each In Likely Last Hike
 THE RATE HIKE
 End of ‘Teaser Rate’ Home Loans?
RBI has made it tougher for banks to extend such loans, where the interest rate is fixed at 7.75-
9% for 2-3 years. It fears, like subprime loans, they are risky for banks, as borrowers may
default when rates surge. Banks disagree. They call it ‘special home loan schemes’
 Is it bad news for new borrowers?
Yes, because many borrowers are opting for teaser loans. They will also get to borrow less as
RBI has capped loans at 80% of property value, which is currently 85-90%. Besides, rates will
rise for loans above 75 lakh
 What will RBI achieve by raising repo and reverse repo rates?
Nothing dramatic, and banks will not raise rates immediately. But since inflation continues to
be a concern, not raising the rates would have been a missed opportunity. RBI has, however,
hinted that there may not be more rate hikes in the ‘immediate future’
 Will property prices correct in cities like Mumbai?
Not because of RBI’s measures. While RBI has expressed concern about high home prices, for
the first time, it will not force builders to lower prices. Till now, the regulator has been
tightening rules on loans to commercial property market High-value loans to get costlier
UK RACES PAST US IN GOVT
OFFSHORING
FORTIS TO INVEST . 650 CR, OPEN 8
HOSPITALS
 Delhi-Based Company Posts Net Profit Of . 75 Crore, Revenue Rises
88% to . 357 Crore
 FORTIS Healthcare plans to invest around . 650 crore in the next 18
months to open 7-8 hospitals and is scouting for acquisition
opportunities in India and abroad to bridge the gap with the country’s
largest healthcare firm Apollo Hospitals.
 The company said it booked . 342.6 crore as gain on the sale of its
investment & related transactions under ‘other income’ and . 174.3 crore
as ‘other expenditure’ for the quarter incurred for legal & professional
charges, structuring fee paid to the merchant bankers & lawyers and
exchange loss related to the Parkway transaction.
 The Delhi-based company’s revenue during the quarter rose 88% to .
357 crore, from the corresponding period last fiscal.
COAL INDIA LIGHTS UP STREET WITH 40%
GAINS ON DEBUT
 Coal India Ltd soared 40% to 342.35 on debut, creating many records—the biggest
initial public offering, biggest coal producer in the world, and top trading on debut.
 GOLDEN LISTING
 Overflowing Coffers
Finance minister Pranab Mukherjee may surpass his disinvestment target of Rs 40,000 crore for this year.
Along with the 3G/BWA auction bonanza, this would help him narrow fiscal deficit
 Wealth Creator
Coal India's sterling debut means that Reliance Industries has made a paper profit of Rs 106.9 crore, Wipro
chairman Azim Premji Rs 13.36 crore, and Hero Honda Rs 4.45 crore,
 Glad Tidings
Coal India's show likely to reflect positively on other forthcoming offers. PowerGrid's $1.9-billion sale
opens on Monday. Those of steelmaker SAIL, refiner IndianOil, explorer Oil & Natural Gas, Shipping
Corporation, Hindustan Copper and Manganese Ore will follow
 LEAPING Ahead
With the listing gains, Coal India becomes the fourth most-valuable company on the Indian stock exchanges
behind Reliance Industries, ONGC and State Bank of India. Speculation is that FTSE, which manages
indices like FTSE 100, is likely to include Coal India in two of its global indices effective November
5 Stock may gain further
Eco times 1st 5th

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Eco times 1st 5th

  • 1. THE ECONOMIC TIMES NEWS 1ST NOV- 5TH NOV
  • 2. GLOBAL LUXURY BRANDS LIGHT UP FOR INDIA  China, so far, has been the lodestar for luxe labels looking east  With western markets still to recover, they have now realised that putting all their eggs in China basket can be shattering if there are any future shocks  LAP OF LUXURY  Louis Vuitton has readied a worldwide Diwali-themed splash for its stores starting from November Swiss watchmaker  Bugatti Veyron 16.4 Grand Sport, with a price tag of over 16 cr, has also made its India debut  Audemars Piguet recently unveiled a 2.1-cr watch
  • 3. BIG IT MOVES MORE WORK, JOBS TO CHINA- INDIA’S RISING GEOPOLITICAL RISKS ARE A CONCERN
  • 4. SUBBARAO GOES FOR THE KILL TO TAME PRICE DEVIL  Raises Repo,Reverse Repo Rates 25 Bps Each In Likely Last Hike  THE RATE HIKE  End of ‘Teaser Rate’ Home Loans? RBI has made it tougher for banks to extend such loans, where the interest rate is fixed at 7.75- 9% for 2-3 years. It fears, like subprime loans, they are risky for banks, as borrowers may default when rates surge. Banks disagree. They call it ‘special home loan schemes’  Is it bad news for new borrowers? Yes, because many borrowers are opting for teaser loans. They will also get to borrow less as RBI has capped loans at 80% of property value, which is currently 85-90%. Besides, rates will rise for loans above 75 lakh  What will RBI achieve by raising repo and reverse repo rates? Nothing dramatic, and banks will not raise rates immediately. But since inflation continues to be a concern, not raising the rates would have been a missed opportunity. RBI has, however, hinted that there may not be more rate hikes in the ‘immediate future’  Will property prices correct in cities like Mumbai? Not because of RBI’s measures. While RBI has expressed concern about high home prices, for the first time, it will not force builders to lower prices. Till now, the regulator has been tightening rules on loans to commercial property market High-value loans to get costlier
  • 5. UK RACES PAST US IN GOVT OFFSHORING
  • 6. FORTIS TO INVEST . 650 CR, OPEN 8 HOSPITALS  Delhi-Based Company Posts Net Profit Of . 75 Crore, Revenue Rises 88% to . 357 Crore  FORTIS Healthcare plans to invest around . 650 crore in the next 18 months to open 7-8 hospitals and is scouting for acquisition opportunities in India and abroad to bridge the gap with the country’s largest healthcare firm Apollo Hospitals.  The company said it booked . 342.6 crore as gain on the sale of its investment & related transactions under ‘other income’ and . 174.3 crore as ‘other expenditure’ for the quarter incurred for legal & professional charges, structuring fee paid to the merchant bankers & lawyers and exchange loss related to the Parkway transaction.  The Delhi-based company’s revenue during the quarter rose 88% to . 357 crore, from the corresponding period last fiscal.
  • 7. COAL INDIA LIGHTS UP STREET WITH 40% GAINS ON DEBUT  Coal India Ltd soared 40% to 342.35 on debut, creating many records—the biggest initial public offering, biggest coal producer in the world, and top trading on debut.  GOLDEN LISTING  Overflowing Coffers Finance minister Pranab Mukherjee may surpass his disinvestment target of Rs 40,000 crore for this year. Along with the 3G/BWA auction bonanza, this would help him narrow fiscal deficit  Wealth Creator Coal India's sterling debut means that Reliance Industries has made a paper profit of Rs 106.9 crore, Wipro chairman Azim Premji Rs 13.36 crore, and Hero Honda Rs 4.45 crore,  Glad Tidings Coal India's show likely to reflect positively on other forthcoming offers. PowerGrid's $1.9-billion sale opens on Monday. Those of steelmaker SAIL, refiner IndianOil, explorer Oil & Natural Gas, Shipping Corporation, Hindustan Copper and Manganese Ore will follow  LEAPING Ahead With the listing gains, Coal India becomes the fourth most-valuable company on the Indian stock exchanges behind Reliance Industries, ONGC and State Bank of India. Speculation is that FTSE, which manages indices like FTSE 100, is likely to include Coal India in two of its global indices effective November 5 Stock may gain further