Prakash S Korati has taken over charge of Axis Private Equity as the acting CEO
Axis Private Equity Ltd, a 100% subsidiary of Axis Bank, announced that Arun Prakash S Korati has taken over charge of the company as the acting CEO. Mr Korati replaces Alok Gupta, managing director and CEO, who resigned for personal reasons. Mr Gupta’s resignation has been accepted by the Board of Axis Private Equity.
Mr Korati joined Axis Private Equity in June, 2007 and is currently an executive director of the company. He has been actively involved in the strategic and investment decisions of the company. Axis Private Equity will continue to leverage opportunities available in the infrastructure space.
Signs of the turmoil in Libya spreading to other countries in the Middle East led global markets lower
While the Indian bourses are closed today on account of a local holiday, here is a brief view of the global markets. Markets in the US were pulled down on Tuesday by higher oil prices which are expected to spike consumer price inflation. Markets in Asia were weighed down by concerns about increasing energy costs and were in the red in early trade on Wednesday.
The domestic market opened with decent gains on Tuesday, as investors cheered the budget proposals. Reacting to these proposals, buying by institutional investors was on the rise. Besides, positive economic indicators and firm Asian markets also supported the rally.
The Sensex opened with a gap up of 159 points at 17,982 and the Nifty opened at 5,382, a gap up of 49 points. The market never looked back and kept rising throughout the day. Eventually, the Sensex ended up 623 points (3.5%) at 18,447 and the Nifty up 189 points (3.54%) points at 5,522. Tuesday’s gain is the biggest since 28 May 2009. The gain from the three-day rally (starting 25 February 2011) has completely covered up the loss of three days of fall from 22 to 24 February 2011.
In the past three days, both the Sensex and Nifty made higher highs and higher lows, finally leading to a massive burst today. This shows that the market rally is a strong one.
Wall Street settled lower as an increase in crude prices led to the markets closing at their lowest levels in a month. Federal Reserve chairman Ben Bernanke cautioned investors that the rise in commodity prices could lead to a ‘temporary and modest increase’ in consumer price inflation. Besides, International Energy Agency chief economist Fatih Birol said that if the price of oil averages $100 a barrel this year, the US would have to spend $385 billion on oil imports—nearly $80 billion more than it did last year. Concerns of the turmoil in Libya spreading to other countries in the region renewed worries about the pace of economic growth.
The Dow tanked 169.38 points (1.39%) at 12,056.96. The S&P 500 declined 21.04 points (1.59%) to 1,306.18 and the Nasdaq fell 44.86 points (1.61%) to 2,737.41.
Markets in Asia were in the red in early trade on Wednesday on concerns that the increase in oil prices could threaten growth in the export-oriented nations in the region. Besides, signs of the political turmoil in Libya spreading to other Middle East countries also kept investors guarded.
The Shanghai Composite declined 0.50%, the Hang Seng tumbled 1.71%, the Jakarta Composite fell 0.72%, the KLSE Composite was down 0.45%, the Nikkei 225 tanked 1.58%, the Straits Times shaved off 0.99%, the Seoul Composite fell 0.47% and the Taiwan Weighted was 0.59% lower in early trade.
Oil advanced for a second day in New York amid speculation that turmoil in the Middle East may spread from Libya to Iran, the second-largest producer in the Organization of Petroleum Exporting Countries. Crude for April delivery rose to $100.69 on Tuesday before settling $2.66, or 2.7%, higher at $99.63. Prices are up 26% from a year ago.
Brent crude for April settlement advanced $3.62, or 3.2%, to $115.42 a barrel on the London-based ICE Futures Europe exchange yesterday, the highest since 27 August 2008.
Back home, finance minister Pranab Mukherjee on Tuesday exuded confidence that the fiscal deficit target of 4.6% of the GDP for 2011-12 would be achieved. He said the government spent Rs50,000 crore on social projects during the current fiscal as it received revenues from sale of spectrum.
In his Budget presentation for 2011-12, Mr Mukherjee had proposed to reduce the fiscal deficit to 4.6% in the next fiscal from 5.3% of the gross domestic product (GDP) this year.
In a panel discussion on the Union Budget, organised by Moneylife Foundation at Mumbai, prominent speakers felt that this year’s Budget is a precursor of many changes that would take place from April 2012 onwards
The Union Budget 2011 has some good features, but on overall analysis it appears to have done more lip service than anything specific to tighten the country's loose governance systems, improve economic competitiveness, or hold out hope of effectively tapping its anticipated demographic dividend. This was the overall sentiment expressed by speakers at a Budget Discussion hosted by Moneylife Foundation in Mumbai on Tuesday.
Ameet Patel, chartered accountant and tax partner at SKP Group said, "The Union Budget 2011, is dry and has very less tax proposals as the government is trying to pave the way for the Direct Tax Code (DTC), which will determine taxation issues for the next 40-50 years, and the Goods and Services Tax (GST)."
He pointed out that the thrust of the Budget was undoubtedly on the infrastructure sector, which accounts for 48.5% of the planned expenditure. On the growth front, the finance minister (FM) expects the economy to grow at 9% in the next fiscal and he did not dare to completely roll back the fiscal stimulus announced in 2008. The rates of service tax and excise duty have remained intact, Mr Patel said. "Another reason not to change the tax rates was the comfortable position of fiscal deficit, mainly due to revenue collections from auctioning of 3G spectrum."
Speaking on the impact of the Budget on the stock markets, leading investment expert and prominent market analyst, Gul Tekchandani, said, "I think, for the Nifty the bottom would be 5,000 and by the year-end it may go up to 6,000 levels." Mr Tekchandani also shared his experiences on the global markets, the persistent inflation threat across the world and its possible effect on Indian markets.
The FM has allowed foreign investors to invest in SEBI-registered mutual funds after fulfilling Know Your Customer (KYC) requirements. However, Debashis Basu, editor and publisher, Moneylife, cited various studies by many institutions over the years, and said, "Although foreign investment is a good thing, many investors are home biased when it comes to investment." For example, he said, people tend to invest only in their home country, rather than invest in a country that they know little about where they may earn more.
The panellists analysed, debated several aspects of the Budget, and presented a detailed analysis of the implications of the proposals for the common man and corporates. There was an interesting and enlightening exchange of opinions between the panellists and the participants.
Earlier, Sucheta Dalal, managing editor, Moneylife, and founder trustee of Moneylife Foundation, introduced the panellists.