Global cues indicate a soft-to-flat opening for the Indian market today. Markets in the US ended in the red on Monday on a decline in factory orders and the lingering debt crisis in Europe. Rating cuts of corporates by analysts ahead of the earnings season also weighed on the sentiments. The Asian pack reacted to the US rating cuts and was trading mostly lower. The SGX Nifty was down 10.50 points at 6,166.50 against its previous close of 6,177.
Profit booking took away most of the gains accrued in the early session yesterday. While the Indian market had a fairly decent opening, selling pressure in heavyweights led the indices near their opening levels at the end of the session. The negative opening of the influential European bourses added to the woes, ensuring that the Indian market ended flat albeit with a positive bias.
The Sensex shut at 20,475, up 30.69 points (0.15%), after attaining a 33-month high of 20,706 and a low of 20,437 towards the end of the session. The Nifty rose 16.05 points (0.26%) at 6,159. The benchmark swung between a high-low of 6,222 and 6,144, respectively.
Wall Street ended lower overnight on a decline in factory orders and the lingering debt crisis in Europe. Manufacturing orders in the US declined 0.5% in August, following a revised 0.5% increase a month earlier. While there was no single trigger for the decline, worries over European banks and speculations of further stimulus from the Federal Reserve kept investors on the sidelines. This apart, rating cuts of corporates ahead of the earnings season also weighed on the sentiments.
The Dow declined 78.41 points (0.72%) at 10,751. The S&P 500 shed 9.21 points (0.80%) at 1,137. The Nasdaq fell 26.23 points (1.11%) at 2,344.
Reacting to the rating cuts of US corporates by analysts ahead of the earnings season, the Asian pack was mostly in the red in early trade this morning. Cautiousness existed ahead of the Bank of Japan’s announcement of its monetary policies due later today.
The Hang Seng was down 0.15%, Jakarta Composite was down 0.05%, Straits Times was down 0.32%, Seoul Composite was down 0.25% and Taiwan Weighted was down 0.71%. On the other hand, KLSE Composite gained 0.54% and the Nikkei 225 was up 0.02%. The SGX Nifty was down 10.50 points at 6,166.50 against its previous close of 6,177.
The government on Monday asked firms which have been allotted captive coal blocks to submit status report of such reserves for July-September period by 15th October, as part of its drive to weed out "non-serious" companies sitting idle on the allotted blocks.
Treating the matter as "most urgent", the coal ministry said "you being a captive coal block allotee, are requested to send the detailed information for the quarter ended September 2010, positively by 15th October ".
Rajinikanth creates hysteria with Robot; Hindi-speaking territories to offer more shows
Forget Dabangg or 3Idiots, Rajinikanth-starrer Robot is set to rule Indian cinema with its whopping collections in the opening weekend. According to trade pundits, the film has collected Rs95 crore from the combined ticket sales of all three versions in the opening weekend. If you add the ticket sales from overseas, it rises to a record Rs100 crore.
"In the opening weekend, all the three versions of Robot have together collected Rs95 crore, which is the highest-ever in India. If you add the overseas figures, the total collections will increase probably by another Rs7 crore-Rs8 crore," said Komal Nahta, founder-editor of Koimoi.com.
The film is expected to generate at least about Rs120 crore-Rs130 crore more from ticket sales, Mr Nahta added. Just a month ago, Dabangg, with gross collections of Rs48.25 crore at the opening weekend, surpassed
3Idiots who raked in approximately Rs41 crore in the same period. But all this is history now. Robot has remade the box-office record in its own inimitable style.
The USP of the film is "everything", including the special effects and Rajni Sir, according to Mr Nahta. Even those who haven't watched the film are gung-ho about the movie and plan to watch it in the days to come.
Piyush Pandey, executive chairman and national creative director of Ogilvy India, said, "Though I don't want to comment on something I haven't seen, but I can tell you a very dear friend of mine who is the chairman of Lowe, R Balki (director of Paa), met me a day before yesterday. He has seen it in Tamil and said it's fantastic. So, I would like to test his judgement. I will definitely watch it. Such a phenomenon should be seen. The person second to Mr Bachchan is only Mr Rajinikanth. They are the actual fathers of (the) movie (industry) in the country. So, I will definitely see it."
Though Robot was released with a record 2,250 prints and has created hysteria in south India and all over the world including Dubai and Malaysia, in Hindi speaking territories, the shows were few, less than one-third of the shows given to its competitive-release Anjaana Anjaani. But the rave reviews and positive publicity Robot has generated is set to change the trend, Mr Nahta said. "Rajinikanth doesn't run other than in South India. But now hall owners have realised that the movie is a hit and will get more shows in the second week."
Even Mr Pandey agreed with this. He said, "We are not a country but a continent. Regional differences will be there. Mr Rajinikanth will not be what Mr Bachchan is in the Hindi-speaking belt. So Mr Bachchan will not be what Mr Rajinikanth is in those areas."
So is the new record going to change the landscape of Indian cinema and set a new precedent? Mr Pandey differs. He told Moneylife, "These things (box-office collections) are very difficult to evaluate (in the context of) one film against the other. Because of the differences in the ticket rate and circumstances in the days of Sholay or DDLJ compared to now. But, obviously it is hugely successful. I can't compare one against the other. It's like comparing Sachin Tendulkar with Don Bradman."
Robot is the most expensive Indian film ever made with a price tag of Rs150 crore. The robots used in the movie cost around Rs4.8 crore each, according to a press release from the Sun Network. About Rs60 crore has been spent on special effects. The climax has been shot on a set that cost Rs5 crore where Rajinikanth fights with 100 robots that are similar to him.
Kochi: India should open interest free banking windows in conventional banks as a pilot project, reports PTI quoting Muddassir Siddqui, a leading authority on interest free banking.
Making a strong plea for launching Islamic banking in India, Mr Siddqui, partner and head of Islamic Finance, Middle East, SNR Denton and Company, told reporters here that there was lot of 'misunderstandings' regarding Islamic banking in India. 'We are just asking for level playing field. We want it in conventional system. We do not want any favours', he said.
On issues relating to recovery in cases of loan defaults, he said it is done the same way as conventional banking.
When pointed that the Union government had in a counter affidavit filed in the Kerala High Court on 9th Sept stated that 'it was not legally feasible for banks in India or its branches abroad to undertake Islamic banking activities', he said discussions had been held with Union finance ministry officials and Reserve Bank of India (RBI) regarding Islamic banking. Recently, some documents were submitted to RBI. Several round of discussions have also been held with RBI officials, he said.
'We held close interactions with finance ministry and RBI officials. We hope the ice is breaking', he said.
There was no time frame for setting up Islamic banking.
'We are hopeful permission would be granted very soon'
Currently, close to $1 trillion is being managed by about 400-500 Islamic banks worldwide and by 2020, it is expected to touch $4 million.
The adoption of interest free banking system in the country offers a great opportunity to attract substantial investments from countries in the West Asian region to India, he said adding institutions and high net worth individuals from these countries are looking forward to investment opportunities in India.
According to projections by global consultant McKenzie, investment surplus in the west Asian region is expected to be around $9 trillion by 2020. Currently the investment surplus is around $1.5 trillion. India can attract a good portion of this huge investment potential by developing the appropriate regulatory framework, Abdur Raqeeb, ICIF said.
Regulatory framework suitable for interest free banking will not have any impact on the existing financial system in the country, he said.
A two day conference on Islamic Finance in India is being held from tomorrow to create awareness about the banking system.
The Kerala High Court had in April this year directed the state government and its institutions not to participate financially or otherwise in the financial company modelled on the lines of Islamic bank.